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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 8, 2008
CITY COMMISSION CHAMBERS@ 5:30 P.M.
AGENDA
• CALL TO ORDER:
• PRAYER:
• PLEDGE OF ALLEGIANCE:
• ROLL CALL:
• HONORS AND AWARDS:
• INTRODUCTIONS/PRESENTATION:
• CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Pere Marquette Park Vendor Proposals. PUBLIC WORKS
C. Aggregates, Highway Maintenance Materials and Concrete. PUBLIC
WORKS
D. Surf Muskegon. PUBLIC WORKS
E. Transfer of Sewage Lift Station to County of Muskegon (Wastewater).
PUBLIC WORKS
F. Land Purchase - 1845 Creston Street. PUBLIC WORKS
G. City - MDOT Agreement for the Resurfacing of Quarterline, Apple to
McArthur. ENGINEERING
H. Set Public Hearing for Amendments to Brownfield Plan - Betten Auto
Dealerships Project. PLANNING & ECONOMIC DEVELOPMENT
I. Liquor License Transfer Request for Applebee's, 1825 E. Sherman. CITY
CLERK
J. Request to Fly the Norwegian Flag. CITY CLERK
• PUBLIC HEARINGS:
A. Lease with Option to Purchase Pilot Program. COMMUNITY &
NEIGHBORHOOD SERVICES
• COMMUNICATIONS:
• CITY MANAGER'S REPORT:
• UNFINISHED BUSINESS:
• NEW BUSINESS:
A. Approval of the 2008-2009 Action Plan. COMMUNITY & NEIGHBORHOOD
SERVICES
• ANY OTHER BUSINESS:
• PUBLIC PARTICIPATION:
• Reminder: Individuals who would like to address the City Commission shall do the foflowing:
• Fil! out a request to speak form attached to the agenda or located in the back of the room.
• Submit the form lo !he 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 l Ominutes if previously registered with City Clerk.)
• ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT ANN
MARIE BECl<ER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD:
(231) 724-4172.
Date: AprilB,2008
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the Regular
th
Commission Meeting that was held on Tuesday, March 25 .
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 8, 2008
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, April 8, 2008.
Mayor Warmington opened the meeting with a prayer from George Monroe
from the Evanston Avenue Baptist Church after which the Commission and
public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Clara Shepherd, Lawrence Spataro, Sue Wierengo, Steve
Wisneski, and Chris Carter, Finance Director Tim Paul, City Attorney John Schrier,
and City Clerk Ann Marie Becker.
2008-33 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, March 25 th .
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Pere Marquette Park Vendor Proposals. PUBLIC WORKS
SUMMARY OF REQUEST: Permission to enter into vendor contracts with Dan
Ellerman (Sandy Bottoms Snack Shop) and Steve Negen (MACkite Kiteboarding
School and Shop).
FINANCIAL IMPACT: Both vendors bring value added activities to Pere
Marquette Park. In addition, each vendor offers a percentage of gross
revenues or pay for needed park items.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
C. Aggregates, Highway Maintenance Materials and Concrete. PUBLIC
WORKS
SUMMARY OF REQUEST:
Award bid to supply Hl and H2 limestone chip blend to Verplank Trucking
Company, PO Box 8, Ferrysburg, Ml 49409
Award bid to supply road slag to Verplank Trucking Company, PO Box 8,
Ferrysburg, Ml 49409
Award bid to supply Sylvax patching material (CP-6 alternative) to Rieth-Riley
Construction Co., PO Box 278, Ada, Ml 49301
Award bid for crack sealant to ASI Manufacturing, LLC, 1805 Industrial Park Dr.,
Grand Haven, Ml 49417
Award bid to supply bituminous asphalt product to Asphalt Paving, Inc., 1000 E.
Sherman Boulevard, Muskegon Ml 49444-0190
Award bid to supply Calcium Chloride 38% (road brine) and 32% (winter salting)
to Liquid Dustlayer, Inc., P.O. Box 188, Manistee, Ml 49660
Award bid to supply screened top soil to Felco Contractors, Inc., 965 Pulaski
Ave., Muskegon, Ml 49441
Award bid to supply 2NS sand to Verplank Trucking Company, PO Box 8,
Ferrysburg, Ml 49409
Award bid to supply 7-sack mix concrete to Consumers Concrete, 4400 E.
Evanston, Muskegon, Ml 49442; contingent upon product availability, timely
deliveries, and prices as quoted.
FINANCIAL IMPACT: $136,378 based on 2007 quantities at 2008 quotes.
BUDGET ACTION REQUIRED: None; funds appropriated in several budgets.
D. Surf Muskegon. PUBLIC WORKS
SUMMARY OF REQUEST: To authorize use of the Water Filtration Plant as the site
to host equipment to enable the creation of a "Surf Muskegon" internet website
by Masana, LLC.
FINANCIAL IMP ACT: Use of electricity to power the camera, weather
equipment, and cable modem located at the Water Filtration Plant.
BUDGET ACTION REQUIRED: There is no budget action required.
STAFF RECOMMENDATION: Staff recommends approval for use of the Water
Filtration Plant to house the equipment to enable creation of the Surf Muskegon
internet website by Masana, LLC.
E. Transfer of Sewage Lift Station to County of Muskegon (Wastewater).
PUBLIC WORKS
SUMMARY OF REQUEST: The City of Muskegon wishes to transfer maintenance
responsibilities of the Keating Avenue Sewage Lift Station to Muskegon County
(Wastewater). The County is taking over the maintenance of the major lift
stations in the collection system.
FINANCIAL IMPACT: The City should see some savings in its maintenance
budget with a slight increase in the treatment budget as these maintenance
costs will be charged by the County as part of its collections budget.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
F. Land Purchase - 1845 Creston Street. PUBLIC WORKS
SUMMARY OF REQUEST: The property to the north of the Public Works storage
area is available for purchase. Additional storage area is needed, and this
allows an alternate direct access to Laketon Avenue at a signalized intersection.
FINANCIAL IMPACT: $25,000 for purchase. Demolition of structure to be done by
City forces.
BUDGET ACTION REQUIRED: Cost will be absorbed by the Equipment Fund.
STAFF RECOMMENDATION: Approval.
G. City - MDOT Agreement for the Resurfacing of Quarterline, Apple to
McArthur. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with MOOT for the milling and
resurfacing of Quarterline between Apple and McArthur and to 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
$663,400 and state funds of $165,800 from the local jobs today funds for a total
grant of $829,200. The estimated total construction cost of the project is
$872,100.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize
the Mayor and Clerk to sign both.
H. Set Public Hearing for Amendments to Brownfield Plan - Betten Auto
Dealerships Project. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for
amendments to the City of Muskegon Brownfield Plan, and notifying taxing
jurisdictions, Michigan Department of Environmental Quality, and Michigan
Economic Growth Authority of the Brownfield Plan Amendments, including the
opportunity to express their views and recommendations regarding the
proposed amendments at the public hearing. The amendments are for the
inclusion of the Betten Auto Dealerships Project in the Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax Increment Financing would be used to
reimburse the developer and the City for Act 381 "eligible expense" incurred in
association with development of the Betten properties, starting in 2008. The
developers/owners estimate that full development of the Betten properties will
involve over $13 million in private investment (in addition to property
acquisition), resulting in a substantial increase in the city income, and local and
school property taxes generated by the property.
"Eligible expenses" would be reimbursed to Betten starting in 2008, commencing
for either 15 years, or up to $3 million, whichever occurs first. After
reimbursement of "eligible expenses" to Betten, tax capture would continue to
reimburse the City for its infrastructure costs involved in resurfacing Henry Street
between Sherman and Hackley, which will enhance the Betten project. The
estimated tax capture schedule is included as Attachment S-3 in the proposed
Brownfield Plan Amendment. The City is also authorized by law to capture up to
$75,000/year to pay for "reasonable and actual administrative and operating
costs" of the Brownfield Redevelopment Authority. As such, $10,000/year of the
local tax increment will be captured to reimburse the Brownfield Authority.
After all eligible costs incurred by the parties are reimbursed, the BRA is
authorized to continue to capture local taxes for five more years for deposit into
a Local Site Remediation Revolving Fund. Current tax capture estimates
indicate that approximately $998,500 could be captured from the taxes on the
Betten properties for deposit into this local fund.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority
(BRA) met on April l, 2008, and approved the Brownfield Plan Amendment
adding the Betten Auto Dealership properties to the Brownfield Plan. The BRA
requests that the Muskegon City Commission set a public hearing on the Plan
Amendments, and requests notification of the taxing jurisdictions, MDEQ, and
MEGA of the proposed amendment and its financial impact on each
jurisdiction.
I. Liquor License Transfer Request for Applebee's, 1825 E. Sherman. CITY
CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from Applebee's of Michigan, Inc. to transfer
ownership of the 2007 Class C Resort licensed business located at 1825 E.
Sherman to Applebee's Restaurants Mid-Atlantic LLC.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
J. Request to Fly the Norwegian Flag. CITY CLERK
SUMMARY OF REQUEST: The Sons of Norway is requesting permission to fly the
Norwegian Flag at City Hall on Friday, May 16 th to Monday, May 19 th to
celebrate Norway's Constitution Day.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the request.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the consent agenda as read.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
and Gawron
Nays: None
MOTION PASSES
2008-34 NEW BUSINESS:
A. Lease with Option to Purchase Pilot Program. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To have the Commission approve the pilot program
developed by the Community and Neighborhood Services office for a Lease
with Option to Purchase Pilot Program for the houses owned by CNS.
The lessee will have a three-year period (36 months) to obtain a mortgage. If
the lessee is able to obtain a mortgage after the first year, the purchaser will be
able to receive a nine-percent decrease in the purchase price. If it takes two
years to qualify for a mortgage, the property will be sold at a five-percent
decrease from the original asking price. If it takes the three-year period for the
lessee to obtain the mortgage, the sale price would be the original price. The
lessee would be responsible for all the utilities and upkeep of the property.
Because of the current economic environment, as it relates to housing, the
department feels we can assist the market by implementing this program.
Two homes are eligible for this pilot program: 435 Monroe and 867 Williams.
FINANCIAL IMPACT: This will eliminate some of the overhead costs the City has
because of the length of time these houses have been on the market. Costs
include utilities, alarm system, grass cutting, snow removal, etc.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The program has been reviewed by the
Citizen's District Council.
Comments were heard from Leland Davis, 1148 Terrace; Bob Carr, 24 Morrall;
and Jim Burgess, 6336 S. Walker Rd., Fruitport.
Motion by Commissioner Spataro, second by Commissioner Wisneski to approve
the request to initiate the lease to purchase program as recommended by the
Citizen's District Council.
ROLL VOTE: Ayes: Spataro, Warmington, Wierenqo, Wisneski, Carter, Gawron,
and Shepherd
Nays: None
MOTION PASSES
B. Approval of the 2008-2009 Action Plan. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the 2008-2009 Action Plan for the City of
Muskegon Community Development Block Grant/HOME Partnership Program
activity. If the Action Plan is approved, the Community and Neighborhood
Services office will continue the comment period of the Action Plan as
amended, if needed, until April 17, 2008.
On or after April 17, 2008, the Community and Neighborhood Services office will
deliver the Action Plan to the United States Department of Housing and Urban
Development as required in order to request the Release of Funds for the 2008-
2009 fiscal year.
FINANCIAL IMPACT: Action Plan establishes the 2008-2009 Community
Development and HOME budgets.
BUDGET ACTION REQUIRED: None at this time. Budget established by Action
Plan.
STAFF RECOMMENDATION: To approve the Action Plan as is or as amended.
COMMITTEE RECOMMENDATION: The Commission received both the Citizen
District Council and the Administration recommendations.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
Action Plan as recommended by administration for the 2008-2009 Community
Development Block Grant and accept the HOME Fund recommendation as
outlined by Commissioner Carter at a previous meeting to take $10,000 from
Neighborhood Investment Corporation and $10,000 from Habitat for Humanity
and transfer that $20,000 to the City's Home Infill program.
ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Shepherd, and Spataro
Nays: Warmington and Wierengo
MOTION PASSES
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:24 p.m.
Respectfully submitted,
~ ' \ ~ ~&-
Ann Marie Becker, MMC
City Clerk
Date: April 8, 2008
To: Mayor and City Commission
From: Robert H. Kuhn, Director of Public Works
Re: Pere Marquette Park Vendor Proposals
SUMMARY OF REQUEST:
Permission to enter in vendor contracts with Dan Etterman (Sandy Bottoms Snack
Shop) and Steve Negen (MACkite Kiteboarding School and Shop).
FINANCIAL IMPACT:
Both vendors bring value added activities to Pere Marquette Park. In addition, each
vendor offers a percentage of gross revenues or pay for needed park items.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Recommend approval.
COMMITTEE RECOMMENDATION:
MEMORANDUM
TO: Mayor and City Commission
FROM: Robert H. Kuhn, Director of Public Works
DATE: March 20, 2008
RE: Pere Marquette Vendor Proposals
Responding to our RFP, we received three proposals.
1. Dan Etterman - Sandy Bottoms Snack Shop. (See attached proposal.) I 0.25% of
gross receipts.
2. Steve Negen - MACKite Kiteboarding School and Shop. (See attached proposal.)
• $2500/year for 3-year lease.
• One Porta Jon, May I
st
- October I 5
th
-
• Install last 600' of snow fence in order to encourage a longer beach season.
• Install all kiteboarding safety equipment and signage.
• Establish a retail shop in City's building.
• Provide kiteboarding school
• Host kitesurfing competition event.
• Five days of instruction time for local programs.
• Advertise City of Muskegon beaches at MACkite website.
• Lifeguard and Coast Guard rescue training for injured kiteboarders.
• Make jet skis available for any rescue events.
3. Robert Villate (Kiteboarding Instruction)
• Sell instruction, kite equipment.
• In lieu of payments, offers services (See attached proposal.)
• Proposal previously criticized existing school.
• Very little specifics on what he would be bringing to the beach.
RHK/rsh
MACkite Rental Proposal 0
RFP Submission: Pere Marquette Beach Building
Doug Sayles
City of Muskegon's City Clerks Office
933 Terrace Street
Muskegon, Michigan 49443
Dear Doug Sayles
MACkite Kiteboarding School and Shop is very excited about working with tne City of Muskegon in the coming
years. Enclosed is our proposal for tne Pere Marquette Beach building.
Muskegon is having tremendous success witn their wrrent programs of making themselves a premier tourist
destination on the West Coast of Michigan.
MACkite is a long established (27yeors) tourist destination store that is tnrilled with the opportunity to add
to Muskegon's growing base.
Kiteboarding is the world's fastest growing water sport as well as one of the most visib~ attractive
sports anywhere.
We look forward to combining the 3 venues to generate the sustoined and healthy growtn of Muskegon, MACkite
and kiteboording over the next 20 years.
Thank you for considering our proposal.
Sincerely,
·~t~
Steve Negen
President
106 Washington / Grand Haven, Ml 49417 / p 616.846.7501 / f 616.846.0106 / toll free 800.622.4655 / www.MACkite.com
MACkite Rental Proposal
Rent
> $2,500.00 per year
Term of Lease
> 3 year lease with on option for 3 more years
Grounds
>September 15 to encourage o longer season
> Pay for one Porto John by building May lst- October 15
> Be responsible for (hire contractor or put in ourselves) the lost 600 feet of snow fence in front of the
building. This will be complete by November 1 each year.
> Pay for all signage and ropes to mark of a kiteboarding area (See mops page 2)
> Develop rules for kiteboording on beach - receive City approval. (Initial thought see page 3)
Shop
>Operate store hours 11 :00 AM -5:00 PM doily all summer long, building excitement for
Pere Marquette
Beach
> Provide City of Muskegon with full insurance for the kiteboording school
Events
> Host King of the Great Lakes Kitesurfing Competition in early October
> Host a Kiteboord Swap Meet l st week of May
Promotion
> Provide Summer Celebration and Shoreline Spectacular with demonstrations and information
>Provide the City of Muskegon 5 days of instructor time to be used in local programs. This could include
kite flying or kite building programs.
>Continue web presence of Muskegon on MACkite website
Safety
> Provide Life Guards with rescue training
· >Provide Coast Guard with rescue and recovery training
> Rescue Jet Ski on beach for all students participating in water lessons
>All MACkite instructors will be certified by appropriate organizations
Exclusivity
> Muskegon will allow MACkite to be the only kiteboarding school on Pere Marquette Beach.
106 Washington / Grand Haven, Ml 49417 / p 616.846.7501 / f 616.846.0106 / toll free 800.622.4655 / www.MACkite.com
KITE ZONE§
NORTH WIND KITE LAUNCH ZONES
All experienced riders launch on the north side of the
red rope between the green and red ropes.
All srudents will be based between the 2 red ropes.
School kites will have streamers so riders will know to
give them space.
SOUTH WIND KITE LAUNCH ZONES
All experienced riders launch on the south side of the
red rope between the green and red ropes.
All srudents will be based between the 2 red ropes.
School kites will hove streamers so riders will know to
give them space.
106 Washington / Grand Haven, Ml 49417 / p 616.846.7501 / f 616.846.0106 / toll free 800.622.4655 / www.MACkirn.com
Kit:eboarding Rules: Initial Thoughts
Basic Riding Etiquette ot Pier Marquette Beach
Students:
All students will be based between the 2 red ropes. School kites will have streamers so rtders will know to give
them space.
New riders:
Please check in with the MA(kite kiteboarding building on the beach for information.
Also we ask new riders (can't stay upwind) to get their free streamer from the MACkite building.
Rider Setup
South wind:
All experienced riders launch on the south side of the red rope between the green and red ropes.
Please use assisted launches and landings when the beach is crowded.
North Wind:
All experienced riders launch on the north side of the red rope between the green and red ropes.
Please use assisted launches and landings when the beach is crowded.
MACkite will set ropes on days of ontic~oted crowds.
NO RIDING inside swim buoys:
All Rider must keep their KITE one line length from oil swim buoys.
This rule should be followed for all of the Great lakes Region
Jumping Zone:
All jumps must be 3 line lengths (approx 200 feet) from the beach or swim buoys
Please use common sense and core. Violators of these simple rules will be asked to leave the beach. The dty of
Muskegon is otremendous host and we need to keep it that way.
106 Washington / Grand Hoven, Ml 49417 / p 616.846.7501 / f 616.846.0106 / toll free 800.622.4655 / www.MACkite.com
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AGENDA ITEM NO. _ _ __
CITY COMMISSION MEETING _ _ _ _ __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DA TE: April 8, 2008
SUBJECT: Aggregates, Highway Maintenance Materials and Concrete
SUMMARY OF REQUEST:
Award bid to supply HI and H2 limestone chip blend to Verplank Trucking Company, PO Box 8,
Ferrysburg, MI 49409
Award bid to supply road slag to Verplank Trucking Company, PO Box 8, Ferrysburg, MI 49409
Award bid to supply Sylvax patching material (CP-6 alternative) to Rieth-Riley Construction Co.,
PO Box 278, Ada, MI 49301
Award bid for crack sealant to AST Manufacturing, LLC, 1805 Industrial Park Dr., Grand Haven,
MI 49417
Award bid to supply bituminous asphalt product to Asphalt Paving, Inc., I 000 E. Sherman
Boulevard, Muskegon MI 49444-0190
Award bid to supply Calcium Chloride 38% (road brine) and 32% (winter salting) to Liquid
Dustlayer, Inc., P.O. Box 188, Manistee, MI 49660
Award bid to supply screened top soil to Felco Contractors, Inc., 965 Pulaski Ave., Muskegon, Ml
49441
Award bid to supply 2NS sand to Verplank Trucking Company, PO Box 8, Ferrysburg, MI 49409
Award bid to supply 7-sack mix concrete to Consumers Concrete, 4400 E. Evanston
Muskegon, MI 49442; contingent upon product availability, timely deliveries, and prices as
quoted.
FINANCIAL IMPACT:
$136,378 based on 2007 quantities at 2008 quotes.
BUDGET ACTION REQUIRED:
None; funds appropriated in several budgets.
STAFF RECOMMENDATION:
To: The City Commission Through The City Manager
From: Robert H. Kuhn, Director of Public Works
Date: April 8, 2008
Subject: 2008 Aggregates, Highway Maintenance Materials, and Concrete
Requests for bids to provide road maintenance materials were solicited in The Chronicle and from vendors
on file. It is recommended that the vendor in bold print supply Public Works with product as needed in
2008. Funds have been appropriated for these purchases.
500 ton Hl & H2 Limestone Chip Blend ($20.00 in 2007; $1,084.30)
Verplank Trucking Co. PO Box 8, Ferrysburg, MI 49409 $17.50 per ton, delivered
9,000 ton Road Slag 22-A Natural ($10.15 in 2007; $23,782.39)
Verplank Trucking Co. PO Box 8, Ferrysburg, MI 49409 $11.25 per ton, delivered
Yellow Rose Transport 3531 Busch Dr., Grandville, MI 49418 $11.50 per ton, delivered
500 tons Sylvax Patching Materials - UPM-CP-7, or ASTM Specification C-136 #9 or Statite CP-6,
or similar product ($83.00 in 2007; $15,888.32)
Rieth-Riley Construction Co. 867 Egypt Valley, Ada MI 49301 $82.00 per ton, delivered
Asphalt Paving, Inc. I000 E. Sherman Boulevard, Muskegon MI 49444-0190 $85.00 per ton, delivered
50,000 pounds Crack Sealant {block form) ($0.35 in 2007; $15,463.80)
ASI Manufacturing, LLC 1805 Industrial Park Dr., Grand Haven, MI 49417 $0.36 per pound, delivered
NHMS Ltd, LLC P.O. Box 5315, Akron, OH 44334 $0.42 per pound, delivered
Lakeshore PLM Services 6818 Harvey St., Spring Lake, MI 49456 $0 .46 per pound, delivered
NHMS Ltd, LLC P.O. Box 5315, Akron, OH 44334 $0.51 per pound, delivered
Note: Bid award is for product we have not tried before. Will use on a trial basis. ffproduct does
not meet our requirements, then bid goes to next lowest bidder.
200 ton Bituminous Asphalt 4:12, Base ($49.00 in 2007; $2,403.45)
Asphalt Paving, Inc. 1000 E. Sherman Boulevard, Muskegon MI 49444-0190 $49.00 per ton, picked up
Rieth-Riley Construction Co. 867 Egypt Valley, Ada MI 49301 $42.00 per ton, picked up
Note: Bid award based upon location. Requires approximately 2 hours travel time, keeping
one/two employees unavailable during this time. Also do not have the equipment needed to keep
the asphalt hot from Ada to Muskegon.
2008 Aggregates, Highway Maintenance Materials, and Concrete
Page2
April 8, 2007
1,000 ton Bituminous Asphalt 4:12, Top ($50.00 in 2007; $37,405.00)
Asphalt Paving, Inc. 1000 E. Sherman Boulevard, Muskegon MI 49444-0190 $50.00 per ton, picked up
Rieth-Riley Construction Co. 867 Egypt Valley, Ada MI 49301 $42.00 per ton, picked up
85,000 gallons Calcium Chloride 38% (road brine) ($0.42 in 2007; $20,103.30)
Liquid Dustlayer, Inc. P.O. Box 188, Manistee, MI 49660 $0.42 per gallon, spread
15,000 gallons Calcium Chloride 32% (winter salting) ($0.35 in 2007; $0.00)
Liquid Dustlayer Inc. P.O. Box I 88, Manistee, MI 49660 $0.35 per gallon, stored
ASI Manufacturing, LLC 1805 Industrial Park Dr., Grand Haven, MI 49417 $0.85 per gallon, delivered
500 yards Screened Top Soil ($12.00 in 2007; $1,940.00)
Felco Contractors, Inc. 856 Pulaski Ave., Muskegon, MI 49441 $10.00 per cubic yard, delivered
Verplank Trucking Co. PO Box 8, Ferrysburg, Ml 49409 $12.00 per cubic yard, delivered
Yellow Rose Transport 353 I Busch Dr., Grandville, Ml 49418 $13.50 per ton, delivered
500 ton 2NS Sand ($5.50 in 2007; $693.25)
Verplank Trucking Co. PO Box 8, Ferrysburg, MI 49409 $6.45 per ton, delivered
Yellow Rose Transport 3531 Busch Dr., Grandville, MI 49418 $7 .50 per ton, delivered
Concrete mix as needed (7 Sack Mix $83.00* in 2007, $17,613.75)
Consumers Concrete $81.00 per cubic yard, 7 Sack Mix, delivered
4400 E. Evanston Avenue, Muskegon MI 49442
Port City Redi-Mix $90.00 per cubic yard, 7 Sack Mix, delivered
I 780 Sheridan Road, Muskegon, MI 49442
*The 7-sack mix is the most commonly used product. It should be noted that concrete purchases may
include several miscellaneous charges, including, but not limited to, hot water, chloride, small loads,
second drops, winter price, and extra unload time. Purchases will be made from recommended bidder,
contingent upon product availability, timely deliveries, and prices as quoted
LAA (UDocs/Bids/2008 Agg ... Comm Ltr}
Date: April 1, 2009
To: Honorable Mayor and City Commission
From: Public Works
RE: Surf Muskegon
SUMMARY OF REQUEST:
To authorize use of the Water Filtration Plant as the site to host
equipment to enable the creation of a "Surf Muskegon" internet website
by Masana, LLC.
FINANCIAL IMPACT:
Use of electricity to power the camera, weather equipment, and cable
modem located at the Water Filtration Plant.
BUDGET ACTION REQUIRED:
There is no budget action required.
STAFF RECOMMENDATION:
Staff recommends approval for use of the Water Filtration Plant to house
the equipment to enable creation of the Surf Muskegon internet website
by Masana, LLC.
MEMORANDUM
3/31/08
TO: R. KUHN, PUBLIC WORKS DIRECTOR
FROM: R. VENEKLASEN, WATER FILTRATION
RE: SURF MUSKEGON
The City of Muskegon Public Works Department was approached by Mr. Mitch
Dennison, Masana LLC, about the possibility of installing an internet webcam and
weather equipment at the Water Filtration Plant to be utilized to create a "Surf
Muskegon" website. This effort is to mimic that of the successful "Surf Grand Haven"
site that has been in service since July of 2007.
HISTORY -SURF GRAND HAVEN
The Surf Grand Haven website was borne from the local surfing community that
routinely telephoned Will Beaton - a meteorologist for the national weather service,
lakefront resident, and fellow surfer to determine if Lake Michigan was favorable for
surfing. Following retirement Will continued to predict the weather and lake conditions
for area enthusiasts and his accuracy became the standard. This led to a desire to
report to a greater segment of the recreational community; from which the website was
created. The Surf Grand Haven site is approaching the 700,000 mark in website "hits"
or visits in nine months.
MUSKEGON - SURF MUSKEGON
The proposal for Muskegon is to create a website similar to the Grand Haven site but
tailored to the Muskegon waterfront activities. This will likely cater to the ever increasing
sport of kiteboarding at Pere Marquette Park as the original site did to the surfers.
In addition the website will likely include local event notices, local services, and a photo
gallery of the Muskegon community. It will promote the City and its award winning Pere
Marquette Park. The site will also include free classified advertisement, business
listings, and links to other media services.
WATER PLANT SITE
Masana will install the web camera and weather equipment on the upper roof of the
Water Filtration Plant. This will provide a one-hundred eighty degree view of the Lake
Michigan waterfront in Muskegon. The weather equipment will provide information for
Will Beaton to make weather predictions specifically for the Muskegon area.
The City will provide electricity to power the personal computer, weather equipment,
camera, and cable modem to enable the exchange of data. The City will receive the
cable television signal at the Water Plant - a service discontinued this past year as
result of the deregulation of cable television franchises. It is anticipated the Water Plant
will be able to access the raw weather data to incorporate into the SCADA system
enabling the plant operator direct access to pertinent weather information. Most
importantly the City will receive international exposure displaying the attractive qualities
the area has to offer.
;21708- J J (d.)
LICENSE AGREEMENT
THIS AGREEMENT made A~r,'/ cf , 2008, between the City of Muskegon, a
Michigan municipal corporation, of 9 3 Terrace Street, Muskegon, Michigan 49440 ("City") and
Masana, LLC, a Michigan limited liability company of 1600 Kooiman Avenue, Grand Haven,
Michigan 49417 ("Licensee"). In consideration of the mutual promises herein contained, the
parties agree:
1. Grant of License. City grants to Licensee a non-exclusive license to occupy and
use, subject to the terms of this license, the rooftop area of the Muskegon Water Filtration Plant
("Premises") for weather data and video collection purposes.
2.? ~Term. The term of this license shall commence ~ /}?. , 2008 and shall
terminate ~~ ii.
2008.
3. Renewal. This License shall automatically renew upon the anniversary of the
Commencement Date for -pi(/; (?) additional terms of one (1) year each, unless written
notice of termination is given by Licensee. Licensee shall cancel, if at all, by written notice to
City 60 days before this License expires. The renewal shall be on the same terms and conditions
as stated in this agreement.
4. Termination. Either party shall have the option to terminate this License by
delivering to the other party a written notice of termination. The notice shall provide that the
License will terminate 60 days from the date of the notice.
5. Use of the Premises. The Premises shall be used and restricted as follows:
a. Operating of EarthCam video equipment, weather equipment and
network to access the data feed. The Licensee is permitted to install weather equipment,
a hi-speed cable and cable modem, and an EarthCam on the Premises. Additionally,
Licensee may install and operate a small computer in the attic area of the Muskegon
Water Filtration Plant to collect the camera images and weather data collected via cable
and cable modem. Ownership of said equipment shall remain with the Licensee.
b. Positive Promotion oft/1e Muskegon Lakeshore. The Licensee shall use
the equipment and data collected to promote the Muskegon Lakeshore in a positive
manner. Any negative advertising shall render this license immediately revocable at the
option of the City.
c. Inconsistent Uses. Any use for purposes other than specified above,
without written permission, shall render this license immediately revocable at the option
of City.
C:\DOCUME-1\Mitch\LOCALS~I\Temp\E09865~Masana agreement~ surf Muskeg.DOC 1
6. Utilities. City shall provide a dedicated circuit (or circuits as required) to be
installed by Licensee or a City approved contractor for the Licensee's equipment, at Licensee's
cost. City shall provide electrical utility service in exchange for cable television service to be
paid for by Licensee (see paragraph 7). City shall have the right to enter upon the Premises at
any time for the purpose of repairing municipal utilities involved.
7. Cable. Licensee shall be responsible for the installation of cable and cable
modem. Licensee shall provide to City cable television equipment and basic cable service in
exchange for City providing Licensee with a dedicated electrical circuit.
8. Taxes and Assessments. Licensee shall pay all lawful fees, taxes and
assessments during the term of this License which may be levied by any authority. Said taxes
and assessments may include taxes on fixtures, equipment and property owned by Licensee or
situated on the Premises.
9. Signs. Licensee shall not place any signs on the Premises. Licensee is a sub-
tenant of a building owned by the City and within the area described as the Premises.
10. Condition of the Premises. Licensee shall exercise its best efforts to insure that
the equipment does no damage to the Premises upon installation of said equipment. Licensee
shall keep and maintain the Premises, and every part thereof, including improvements located
upon the Premises, in good condition and repair, and shall be responsible for all maintenance to
any equipment installed on the Premises.
11. Alterations and Additions. No alterations or additions to the Premises shall be
made unless City consents in writing.
12. Liens. Licensee shall pay promptly for all labor or materials and shall keep the
Premises free of all liens or encumbrances of any kind.
13. Indemnification. To the fullest extent permitted by law, Licensee agrees to
defend, pay on behalf of, indemnify, and hold harmless the City, its elected and appointed
officials, employees and volunteers and others working on behalf of the City 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 the City, by reason of personal
injury, including bodily injury and death and/or property damage, including loss of use thereof,
which arises out of or is in any way connected or associated with this agreement.
14. Default. If Licensee defaults in any terms hereof, City may declare this license
forfeited only if Licensee fails to cure such Default within 10 days after Licensee receives
written notice from City of the Default. If Licensee fails to cure a Default within such 10-day
period, City may exercise a right of reentry on the Premises after declaring forfeiture.
15. Surrender of Premises on Termination of License. At termination, Licensee
shall surrender the Premises. All equipment installed on the Premises shall be removed at the
sole expense of the Licensee. Licensee shall deliver the Premises back to City at the expiration of
the Term in as good a condition as when received, except for reasonable use and wear thereof.
C:\DOCUME~ I\Mitch\LOCALS~ I\Temp\E09865-Masana agreement - surf Muskeg.DOC 2
16. Insurance. The Licensee shall not commence occupancy until it has obtained the
insurance required under this paragraph. All coverage shall be with insurance carriers acceptable
to City.
a. Commercial General Liability Insurance. The Licensee shall procure
and maintain during the life of this contract, Commercial General Liability Insurance on
an "Occurrence Basis" with limits of liability not less than $1,000,000 per occurrence
and/or aggregate combined single limit, Personal Injury, Bodily Injury and Property
Damage. Coverage shall include the following extensions: (i) Contractual Liability; (ii)
Products and Completed Operations; (iii) Independent Licensees Coverage; (iv) Broad
Form General Liability Extensions or equivalent; (v) Deletion of all Explosion, Collapse
and Underground (XCU) Exclusions, if applicable.
b. Additional Insured. Commercial General Liability, as described above,
shall include an endorsement stating the following shall be "Additional Insureds": The
City, all elected and appointed officials, all employees and volunteers, all boards,
commissions and/or authorities and board members, including employees and volunteers
thereof.
c. Cancellation Notice. Workers' Compensation Insurance, Commercial
General Liability Insurance and Motor Vehicle Liability Insurance, as described above,
shall include an endorsement stating the following: "It is understood and agreed that
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
Muskegon, Michigan 49440
d. Proof of Insurance Coverage. The Licensee shall provide the City at the
time the contracts are returned by him for execution, certificates and policies as listed
below:
i. Two (2) copies of Certificate oflnsurance for Commercial General
Liability Insurance;
ii. Original Policy, or original Binder pending issuance of policy, for
Owner's and Licensee's Protective Liability Insurance.
iii. If so requested, Certified Copies of all policies mentioned above
will be furnished.
e. Notice of Termination. If any of the above coverages expire during the
term of this contract, the Licensee shall deliver renewal certificates and/or policies to City
at least ten (10) days prior to the expiration date.
C:\IX)ClJME~ 1\Mitch\LOCALC:,~ 1\Temp\E09865-Masana agreement - surf Muskeg.DOC 3
17. Non-Waiver. The failure of City to enforce any of its rights hereunder shall not
be deemed a waiver of subsequent enforcement.
18. Time of the Essence. Time is expressly declared to be of the essence of this
license.
19. Cumulative Rights and Remedies. Every right and remedy given to the City by
this License is cumulative and no right or remedy shall be exclusive of any other provided by
law. The exercise of one right or remedy by City shall not impair the right of City to exercise
any other.
20. Non-Assignment. This License may not be assigned at any time by Licensee.
21. Inspection of Premises. City reserves the right to enter the Premises at any
reasonable time for the purpose of inspection and exercise of any and all rights hereunder.
22. Benefit. This License Agreement shall be binding upon and inure to the benefit
of the respective parties, their successors and personal representatives.
23. No Interest in Land Created. Licensee agrees that this agreement is a license
and not a lease, and that no interest or estate in real property or the improvements thereon is
created by this agreement.
24. No Third Party Beneficiary Clause. This Agreement shall benefit only the
parties to this Agreement, and not a third party.
25. Notices. Notices under this agreement shall be mailed first class mail as follows:
CITY OF MUSKEGON
Attn: City Manger
933 Terrace Street
Muskegon, Michigan 49440
MASANA,LLC
Attn: Mitch Dennison
1600 Kooiman A venue
Grand Haven, MI 49417
26. Entire Agreement. The terms contained and referenced in the Agreement
constitute the ENTIRE AGREEMENT between City and Licensee. All prior or
contemporaneous communications, negotiations, and representations are deemed to have been
merged into these written documents.
C:\DOCUME~I\Mitch\LOCALS~l\Temp\E09865vMasana agreement surf Muskeg.DOC
v 4
IN WITNESS WHEREOF, the parties hereto have executed this agreement the day and
year frrst above written.
/0 , 2008
\ . . ) ii
and: ,\ \\ , ~J ~\, \ \. 1 1:., \. LJ\.. L"
Name: Ann Marie Becker
Title: Clerk
Date: /1-0(1/I
ID , 2008
LICENSEE - MASANA, LLC
By:
,,
(,f-,;J?...::-•
\,,.:,
Name: Mitch Dennison
Title: Member .• /
Date: ) / ;;i 6LQ '? , 2008
I I
C:\IX)CUME~ I\Mitch\WCALS~ l \Temp\E09865-Masana agreement - surf Muskeg.OOC 5
UJ/ ZO/UO O'/: 08 FAX 2Jl 7227866 PARMENTER O'TOOLE li/i 002
AMENDMENT TO LICENSE
The License agreement between the City of Muskegon, a Michigan municipal
corporation ("City") and Masaua, LLC, a Michigan limited liability company ("Licensee")
dated ~ /,!.. , 2008 ("License") is amended as follows:
I. Address. The address for M ~ L C is 1119 Washington Avenue, Grand
Haven, Ml 49417 effective · ' /Z 2008. ,
2. Notices. Notices under this agreement shall be mailed first class mail as follows:
CITY OF MUSKEGON
Attn: City Manger
933 Terrace Street
Muskegon, Michigan 49440
MASANA,LLC
Attn: Mitch Dennison
1119 Washington Avenue
Grand Haven, Ml 49417
3. In all other respects, the License shall remain in full force and effect.
CITY: LICENSEE:
MASANA,LLC
By: ,./ 4' 4 ??----
Name: Mitch Dennison
Title: Memb er , /
0
__,/f'-'.,l'-Q'--'(lw l_~Jc.eO_ ____c,2008 Dated: J~:J(/
/
7 I
, 2008
G:\EDSJ\FILES\00100\206S\AMtND\E3 I 146,DOC
ID=616 842 HM~
ACORD CERTIFICATE OF INSURANCE ISSUE DAYE (MM/00/YY)
3/24/08
PRODUCER
TtilS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND
CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE
Cameron M. Wi son & Associates DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE
POLICIES BELOW. · '
5988 Venture P irk Drive
Kalamazoo, Ml i9009 COMPANIES AFFORDING COVERAGE
COMPANY
LETTER A Colony Insurance Company ..
COMPANY
, LETTER B
INSURl::O
Masana. LLC COMPANY
C
1600 Kooiman Ave
LETTER .-
Grand Haven, Ml 49,. 17 COMPAl<N
D
LETTER
COMPANY E
LETTER
.
COVERAGES
THIS IS TO CERTIFY T i AT THE •OLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED ND1WITH l TANDIH•, ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAV Bl ISSUED ~R MAY PERTAIN TO INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CC NDITION:; OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
co
-
POl\CV £f'FECTIVE POUC'I" 6:PIAATION
""' TYPE OF INSU~
•NCE POL,.ICY t.lUUBER O,'\.TE (r.1MfDOIYY) OATE {MMtoO/YV) u1.i11rs
A GE~E'lAL LIA01LITY GL3232615 11101/2007 111011200& GENER.AL AG-GAE.GA.H '2.000.000.
181 COMMERCIAL GEi- ! RAL UAI) UTY PROOVCT$-COMP/OP AGG. S 1,000.000.
D CLAIMS MAO i (81 OCCUR, f"~RSONAL S. ADV. IN'JVA°Y :S I ,QQQ,QQQ_
OWNER'S,&, CONTI. A CTOFI' S- t'ROT EACJ-1 OCCURAE.NCU , 1.000.000.
hRE DAMAG'f (Any oMI fi1t1) $ 50,QQQ_
AUTOMOBILE LIADtLlT'{
ANY AUTO
- •
MED. EXPENSE {Any on• 1)9'tcii) 1
Au'to Only
Each Acc.idonf
'
J, QQQ,
ALL OWNCO AUTO ; 0\hQr U'\l:lrt "'Aulo'" ()nly
scHeou1.eo "ura s E.eioh Ac.c.idon,
'
~IA€0 AUTOS AQ'(Jf&Oe1 • ..G:,r:.Qfl 0PG(9tiOI':;~
NON,O~EO AUT{ 6 Oth~t th&n "A\Jlo" 01,ly '
GAFI.AGE LIA81Lrn
EXCESS UABILITV
UMBR£ltA FORM
- EACH OCCURRENCE
AGGREGATE
'
'
'
OT~ER. TH.4..N UMe
-
~ eLl.Al=NM
WOR.l(ER'S COMP : 5.ATIQ~J
"
STA'TVl'OAY LIMITS
l:.ACH ACCIDENT
'
••o 016EASE:-POUCY l1MIT
'
OTHEA. -'
EMPl.OVERS' L "- lLrTV
OISE.ASE-EACH EMPLOYEE~
- _ _.._..._.,,
Addi tonal Insured e:ttec~ive 3/ L.4-JuB ...
D11:SCRIPTION OJ: OP!::Ml 0 NS/LOCJTIONSNE:HICLES/Sf'EClAL ITEMS
.. ,.,_;;1 F----,c,, It. __ ..::;i ,nrc,
installatj 0 n of Web cam: "additional Insured": The City,all
elected ar. d ap·?ointed officals,all employees and ,,., volunteers, all
}..__....,..._,.::i_s;
N, m ~~Qn~ gn2£2i Q.£:t hQ.t;i.ti~§ iiJ,nd board m~mbers,
:lll!!!J,,§.
including, e mpl::iyees and volunteers therof.
CERTIFICATE HO ,R CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE me
EXPIRATION DATE THEREOF, THE ISSUING COMPANY \/l/ll\,,thH• I OR TO
MAILI0 OAVS 'NRITIEN NOTICE TO THE CER1'!FICATE HOLDER NAMED THE ro
City of Muskegon LEFT BUI.fAJ.l:itEl:&TQ>tAU GYGIII 371°EGIIM:.llMMGEN3ORIIGOll9'~6R
L I A a l ~ ~ IS:ltilC I1eo~ !1:iE CQMBAf>JV, ITS AGENTS OR REPRESENTATIVES.
Attn: City Manager
"-UTHORIZEO AEPRESEl'l'r"-TIVE'.
933 Terrace s,reoi
Muskegon. Ml 494' -0
tf.._~.ui___
ACORD 25-S (7/90)
- C AC~RO CORPORATION 1990
83-?.6-88 14:81 KIEFT AGENCY ID~515 842 1040 P03/03
MM:ANA LLC
Insured:
Policy Numb ir: GL:; 232 615
SCHEDULE OF FORMS AND ENDORSEMENTS
Forms and Endorsements applying to and made part of this policy at the time of issuance:
NUMBEF TITLE
FORMS APPLICABlE - POLICY COMMON FORMS
PJCG ( 0 6 - ( 5) COMMON POLICY JACKET
DCJ6550 (0 7-05) COMMON POLICY DECLARATIONS
UOOl (10-( 4) SCHEDULE OF FORMS AND ENDORSEMENTS
U002 MINIMUM POLICY PREMIUM
U094 !09-04l
07-02 SERVICE OF SUIT
Ul.73 07-02 CANCELLATION
UCG2175 (09-04) EXCL-CERT. ACTS OF TERRORISM AND OTHER ACTS OF TERRORISM
IL0017 (ll-98l COMMON POLICY CONDITIONS
IL0021 (04-98 NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT
FORMS APPLICABLE - COMMERCIAL GENERAL LIABILITY
DCJ6553 (07-02) COMMERCIAL GENERAL LIABILITY COVERAGE PART DECLARATIONS
U003 HAZARDOUS MATERIALS EXCLUSION
U004 t07-02l
07-07 MISCELLANEOUS EXCLUSIONS ENDORSEMENT
U006 07-07 ASSAULTL BATTERY OR ASSAULT AND BATI'ERY EXCLUSION
UOOSR (07-07) CONTRAC"ORS COVERAGE LIMITATIONS
U048 (09-04l EMPLOYMENT-RELATED PRACTICES EXCLUSION
Ul.59 (07-02 LIMITATION OF COVERAGE TO BUSINESS DESCRIPTION
CGOOOl 1.2-04 COMMERCIAL GENERAL LIABILITY COVERAGE FORM
CG0067 03-05 EXCLUSION - VIOLATION OF STATUTES THAT GOVERN E-MAILS, F
CG2139 10-93 CONTRACTUAL LIABILITY LIMITATION
CG2146 07-98 ABUSE OR MOLESTATION EXCLUSION
CG2167 12-04 FUNGI OR BACTERIA EXCLUSION
CG2299 12-04 PROFESSIONAL LIABILITY EXCLUSION - WEB-SITE DESIGNERS
Import: nt notice: See the actual policy forms attached for the full title, terms and conditions.
U001 (10/04 Page 1 of 1
Retell Agent
Date: April 8, 2008
To: Mayor and City Commission
\.
From: Robert H. Kuhn, Director of Public Works
Re: Transfer of Sewage Lift Station to County of
Muskegon (Wastewater)
SUMMARY OF REQUEST:
The City of Muskegon J,Vishes to transfer maintenance responsibilities of the Keating
Avenue Sewage Lift Station to Muskegon County (Wastewater). The County is
taking over the maintenance of the major lift stations in the collection system.
FINANCIAL IMPACT:
The City should see some savings in its maintenance budget with a slight increase
in the treatment budget as these maintenance costs will be charged by the County
as part of its collections budget.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Recommend approval.
COMMITTEE RECOMMENDATION:
2008-33(e)
AGREEMENT: TRANSFER OF SEWER LIFT STATION
AND SEWER LINE
\.
This Agreement·.i$ made on April 15, 2008, between the City of Muskegon, a
Michigan municipal corporation, with offices located at 933 Terrace Street, Muskegon,
Michigan, 49442 (City) and the Muskegon County Public Works Board, of990
Terrace Street, Muskegon, Michigan, 49442 (Board).
Recitals
A. The Muskegon County Public Works Board is responsible for the
Muskegon County Wastewater Management System (System) for the County of
Muskegon and for the local townships and cities that use the System; and
B. As part of the original organization of the System, there were major sewage
lift stations and connecting force mains previously owned by local townships and cities
that became the responsibility of the System; and
C. The Keating Avenue Sewage Lift Station located at 895 East Keating
Avenue in the City of Muskegon is a major station and should be owned and maintained
by the System; and
D. The 755-foot 16-inch diameter force main from the Keating Avenue
Sewage Lift Station to the System Q to C force main should also be owned and
maintained by the System.
Agreement
NOW TIIBREFORE, TIIB CITY AND BOARD AGREE AS FOLLOWS:
1. The City shall agree to perform the following:
Ll. Maintain the lawn_and premises around said lift station.
1.2. Grant the County all necessary access for maintenance to the above-
referenced lift station and force main.
2. The Board shall:
2.1. Accept ownership of the above-referenced lift station and force
main.
2.2. Pay all future operations, maintenance, and upgrade costs for said
lift station and force main.
1
3. Abandonment. If the lift station and/or the force main described above are
no longer needed by the System or the City, the County shall demolish,
remove, and abandon the lift station and/or force main according to the
\.
standard pi;_actices used iri. other parts of the System.
4. General Provisions.
4.1. Entire Agreement. This agreement shall constitute the entire
agreement, and shall supersede any other agreements, written or
oral, that may have been made or entered into, by and between the
parties with respect to the subject matter of this agreement and shall
not be modified or~amended except iri a subsequent .writing signed
by the party against whom enforcement is sought. All
contemporaneous or prior negotiations and representations have
been merged into this agreement
4.2. Binding Effect.- This agreement shall be binding upon, and inure to
the benefit of and be enforceable by, the parties and their respective
legal representatives, permitted successors, and assigns.
4.3. Non-Waiver. No waiver by any party of any provision of this
agreement shall constitute a waiver by such party of such provision
on any other occasion or a waiver by such party of any other
provision of this agreement.
4.4. Severability. Should any one or more of the provisions of this
agreement be determined to be invalid, unlawful, or unenforceable in
any respect, the validity, legality, and enforceability of the remaining
provisions of this agreement shall not in any way be impaired or
affected. ·
4.5. Assignment or Delegation. Except as otherwise specifically set forth
in this agreement, neither party shall assign all or any portion of its
rights or obligations contained in this agreement without the express
prior written approval of the other party, which approval may be
withheld in the other party's sole discretion.
Board - Muskegon County Board City- City of. Muskegon
of Public Works r=.-F'··.'-c----...
By:ro ~'- ~\_
Nam~LouisA. McMurray
~
Warmington
Title: Chairman
2
Date: April 8, 2008
To: Mayor and City Commission
·•.,,
From: Robert H. Kuhn, Director of Public Works
Re: Land Purchase - 1845 Creston Street
SUMMARY OF REQUEST:
The property to the north of the Public Works storage area is available for purchase.
Additional storage area is need, and this.allows an alternate direct access to
Laketon Avenue at a signalized intersection.
FINANCIAL IMPACT:
$25,000 for purchase. Demolition of structure to be done by City forces.
BUDGET ACTION REQUIRED:
Cost will be absorbed by the Equipment Fund.
STAFF RECOMMENDATION:
Recommend approval.
COMMITTEE RECOMMENDATION:
MEMORANDUM
TO: Honorable Mayor and City Commissioners
FROM: Robert H. Kuhn, Director of Public Works
DATE: March 19, 2008
RE: Land Purchase - 1845 Creston Street
The Department of Public Works has been approached by the executor of the estate of
1845 Creston Street to purchase that property. The Public Works Department has need
for additional secured storage space as additional departmental consolidations take place.
In addition, the acquisition of this property allows for future access directly to the
Creston Street at Laketon Avenue signalized intersection.
Although the property is appraised at $30,000, the house will need to be razed as it is not
salvageable.
The offer is for $25,000 which takes into account the need to raze the building.
The funds will come from the Equipment Fund since this additional area will be used
primarily for equipment purchased.
RHK/rsh
,,.
•. · . kis A7JJJ ,
~1'-~jl:i\1 . . ,;:,«:;:;
A
Date: January 22, 2008
To: Honorable Mayor and City Commissioners
From: Engineering
RE: City - MDOT Agreement for the resurfacing of:
Quarterline, Apple to McArthur
SUMMARY OF REQUEST:
To approve the attached contract with MOOT for the milling & resurfacing of
Quarterline between Apple & McArthur and to approve the attached resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT:
MDOT's participation is limited to the federal funds of $663,400 & state funds of
$165,800 from the local jobs today funds for a total grant of $829,200. The estimated
total construction cost of the project is $872,100.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
Approve the attached contract and resolution and authorize the mayor & clerk to sign
both.
COMMITTEE RECOMMENDATION:
RESOLUTION #2008-33(9)
RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE
MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF
MUSKEGON FOR THE MILLING & RESURFACING OF QUARTERLINE
BETWEEN APPLE AVE. (M-46) & MCARTHUR TOGETHER WITH OTHER
NECESSARY RELATED WORK AND AUTHORIZATION FOR MAYOR, STEPHEN
J. WARMINGTON, AND CITY CLERK, ANN BECKER, TO EXECUTE SAID
CONTRACT
Moved by Commissioner Carter and supported by Commissioner Spataro that the
following Resolution be adopted:
WHEREAS, entry by the City of Muskegon into Contract no. 08-5123 between the
Michigan Department of Transportation and the City of Muskegon for the Milling &
Resurfacing of Quarterline between Apple Ave. & McArthur within the City &
Muskegon TWP is in the best interests of the City of Muskegon.
RESOLVED, that entry by the City into Contract Agreement Number 0S-5123 be and
the same is hereby authorized and approved and the Mayor and Clerk are
authorized to execute said contract for and on behalf of the City of Muskegon.
Adopted this 8th day of April, 2008.
c-:-,
By "-
c: tep en
---,_
Attest~ ~\ ,,.,,\
1 >'---JL,~
Ann Becker, City Clerk
CERTIFICATION
This resolution was adopted at a meeting of the City Commission, held on April
8, 2008. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
STATE OFMIClllGAN
KIRK T. STEUDLE
JENNIFER M. GRANHOLM DEPARTMENT OF TRANSPORTATION D IRECTOR
GOVERNOR
LANSING
May 9, 2008
RECEIVED ·-1
Ms. Anne M. Becker
MAY 1 ') 2008
Clerk City Clerks Office
City of Muskegon
933 Terrace Street, P.O. Box 536
Muskegon,MI 49443-0536
Dear Ms. Becker:
RE: MDOT Contract No.: 08-5123
Control Section: HPSL 61407
Job Number: 102538
Enclosed is a fully executed copy of the above noted agreement.
Sincerely,
Jackie Burch
Contract Processing Specialist
Design Support Area
Enclosure
cc: Project Accounting
M. Harbison, Design Support Area
Grand
c: ~
MURRAY D. VAN WAGONER BUILDING • P.O. BOX 30050 • LANSING, MICHIGAN 48909
www.michigan.gov • (517) 373-2090
LH-LAN-0 (01/03)
CAB
HPSL&LJT Control Section HPSL61407
Job Number 102538
Project HPSL 0861(383)
Federal Item No. RR6325
CFDANo. 20.205 (Highway
Research Planning &
Construction)
Contract No. 08-5123
PART I
THIS CONTRACT, consisting of PART I and PART II (Standard Agreement
Provisions), is made and entered into this date of MAY O'1 2008 , by and between the
MICHIGAN DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the
"DEPARTMENT"; and the CITY OF MUSKEGON, a Michigan municipal corporation,
hereinafter referred to as the "REQUESTING PARTY"; for the purpose of fixing the rights and
obligations of the parties in agreeing to the following improvements, in the City of Muskegon,
Michigan, hereinafter referred to as the "PROJECT" and estimated in detail on EXHIBIT "I",
dated March 4, 2008, attached hereto and made a part hereof:
PART A-FEDERAL AND STATE PARTICIPATION
Reconstruction work along Quarterline Road from Apple Avenue (Highway M-46) to
McArthur Road; including concrete curb and gutter, drainage structure adjustments,
concrete sidewalk, sidewalk ramps, hot mix asphalt paving, and pavement marking work;
and all together with necessary related work.
PART B -NO FEDERAL OR STATE PARTICIPATION
Watermain work along Quarterline Road from Apple Avenue (Highway M-46) to
McArthur Road; and all together with necessary related work.
WITNESSETH:
WHEREAS, pursuant to Federal and State law, monies have been provided for the
· performance of certain improvements on public roads; and
WHEREAS, the PROJECT has been approved for financing in part with State Local Jobs
Today Program Funds; and
WHEREAS, the reference "FHWA" in PART I and PART II refers to the United States
Department of Transportation, Federal Highway Administration; and
12/01/05 HPSL&LJT.FOR 3/4/08 1
WHEREAS, the PROJECT, or portions of the PROJECT, at the request of the
REQUESTING PARTY, are being programmed with the FHWA, for implementation with the
use of Federal Funds under the following Federal program(s) or funding:
HIGH PRIORITY PROJECTS PROGRAM - SAFETEA LU
WHEREAS, the parties hereto have reached an understanding with each other regarding
the performance of the PROJECT work and desire to set forth this understanding in the form of a
written contract.
NOW, THEREFORE, in consideration of the premises and of the mutual undertakings of
the parties and in conformity with applicable law, it is agreed:
1. The parties hereto shall undertake and complete the PROJECT in accordance with
the terms of this contract.
2. The term "PROJECT COST", as herein used, is hereby defined as the cost of the
physical construction necessary for the completion of the PROJECT, including costs incurred by
the DEPARTMENT and the REQUESTING PARTY for construction engineering, construction
materials testing, and inspection for the PART A portion of the PROJECT and any other costs
incurred by the DEPARTMENT as a result of this contract.
Costs for construction engineering, construction materials testing, and inspection incurred
by the REQUESTING PARTY for the PART A portion of the PROJECT shall be limited to the
lesser of: (1) 100 percent of the actual costs for construction engineering, construction materials
testing, and inspection for the PART A portion of the PROJECT, or (2) 15 percent of the actual
contracted physical construction costs for the PART A portion of the PROJECT.
The costs incurred by the REQUESTING PARTY for construction engineering,
construction materials testing, and inspection for the PART B portion of the PROJECT,
preliminary engineering, and right-of-way are excluded from the PROJECT COST as defined by
this contract.
3. The DEPARTMENT is authorized by the REQUESTING PARTY to administer
on behalf of the REQUESTING PARTY all phases of the PROJECT including advertising and
awarding the construction contract for the PROJECT or portions of the PROJECT. Such
administration shall be in accordance with PART II, Section II of this contract.
Any items of the PROJECT COST incurred by the DEPARTMENT may be charged to
the PROJECT.
4. The REQUESTING PARTY, under the terms of this contract, shall:
12/01/05 HPSL&LJT.FOR 3/4/08 2
A. Appoint a project engineer who shall be in responsible charge of the
PROJECT and ensure that the plans and specifications are followed.
B. At PROJECT COST, perform or cause to be performed the construction
engineering, construction material testing, and inspection necessary for the
completion of the PART A portion of the PROJECT.
C. At no cost to the PROJECT
(!) Design or cause to be designed the plans for the PROJECT.
(2) Perform or cause to be performed the construction engineering,
construction materials testing, and inspection services necessary
for the completion of the PART B portion of the PROJECT.
The REQUESTING PARTY will furnish the DEPARTMENT proposed timing
sequences for trunkline signals that, if any, are being made part of the improvement. No timing
adjustments shall be made by the REQUESTING PARTY at any trunkline intersection, without
prior issuances by the DEPARTMENT of Standard Traffic Signal Timing Permits.
The method of performing the work will be indicated on the work authorization. The
REQUESTING PARTY will comply with PART II, Section IIF, when applicable.
5. The PROJECT COST shall be met in accordance with the following:
PART A
The PART A portion of the PROJECT COST shall be met in part by contributions
from the Federal High Priority Project Program - SAFETEA LU and the State
Local Jobs Today Program.
The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users (SAFETEA-LU), Subtitle G - High Priority Projects, authorizes Federal
High Priority Project funding and establishes the maximum amount of funding for
the PART A portion of the PROJECT and associated phases under SAFETEA-LU
Number 2959 to be $2,800,000. It is understood that this amount is subject to
obligational authority limitation and after applying that estimated limitation only
$2,436,000 may be available for the PART A portion of the PROJECT and
associated phases. It is further understood that according to SAFETEA-LU, funds
for the PART A portion of the PROJECT and associated phases are to be
allocated over a period of 5 years.
Federal High Priority Project - SAFETEA LU Funds shall be applied to the
eligible items of the PART A portion of the PROJECT COST up to the lesser of:
(1) $720,000 subject to obligational authority limitation, or (2) an amount such
12/01/05 HPSL&LJT.FOR 3/4/08 3
that 80 percent, the normal Federal participation ratio for such funds, is not
exceeded at the time of the award of the construction contract. State Local Jobs
Today Grant Funds shall be applied to the eligible items of the PART A portion
of the PROJECT COST up to the lesser of: (1) $180,000, or (2) an amount such
that 20 percent is not exceeded at the time of the award of the construction
contract. The balance of the PART A portion of the PROJECT COST, after
deduction of Federal Funds and State Funds, shall be charged to and paid by the
REQUESTING PARTY in the manner and at the times hereinafter set forth.
PARTB
The PART B portion of the PROJECT COST is not eligible for Federal or State
participation and shall be charged to and paid 100 percent by the REQUESTING
PARTY in the manner and at the times hereinafter set fmth.
Any items of PROJECT COST not reimbursed by Federal Funds or State Funds shall be
the sole responsibility of the REQUESTING PARTY.
6. No working capital deposit will be required from the REQUESTING PARTY for
this PROJECT.
In order to fulfill the obligations assumed by the REQUESTING PARTY under the
provisions of this contract, the REQUESTING PARTY shall make prompt payments of its share
of the PROJECT COST upon receipt of progress billings from the DEPARTMENT as herein
provided. All payments will be made within 30 days of receipt of billings from the
DEPARTMENT. Billings to the REQUESTING PARTY will be based upon the REQUESTING
PARTY'S share of the actual costs incurred less available Federal Funds and State Local Jobs
Today Grant Funds as the PROJECT progresses.
Failure to make such payments within 30 days of receipt of billings from the
DEPARTMENT, the DEPARTMENT is hereby authorized to withhold without further notice an
equal amount from the REQUESTING PARTY'S share of any future Act 51 monthly
allocations.
In the event of any discrepancies between PART I and PART II of this contract, the
provisions of PART I shall prevail.
7. Upon completion of construction of the PROJECT, the REQUESTING PARTY
will promptly cause to be enacted and enforced such ordinances or regulations as may be
necessary to prohibit parking in the roadway right-of-way throughout the limits of the
PROJECT.
8. The performance of the entire PROJECT under this contract, whether Federally
funded or not, will be subject to the provisions and requirements of PART II that are applicable
to a Federally funded project.
12/01/05 HPSL&LJT.FOR 3/4/08 4
9. The REQUESTING PARTY certifies that a) it is a person under 1995 PA 71 and
is not aware of and has no reason to believe that the property is a facility as defined in MSA
13A.20101(1)(1); b) the REQUESTING PARTY further certifies that it has completed the tasks
required by MCL 324.20126 (3)(h); MSA 13A.20126(3)(h); c) it conducted a visual inspection
of property within the existing right of way on which construction is to be performed to
determine if any hazardous substances were present; and at sites on which historically were
located businesses that involved hazardous substances, it performed a reasonable investigation to
determine whether hazardous substances exist. This reasonable investigation should include, at a
minimum, contact with local, state and federal enviromnental agencies to determine if the site
has been identified as, or potentially as, a site containing hazardous substances; d) it did not
cause or contribute to the release or threat of release of any hazardous substance found within the
PROJECT limits.
The REQUESTING PARTY also certifies that, in addition to reporting the presence of
any hazardous substances to the Department of Enviromnental Quality, it has advised the
DEPARTMENT of the presence of any and all hazardous substances which the REQUESTING
PARTY found within the PROJECT limits, as a result of performing the investigation and visual
inspection required herein. The REQUESTING PARTY also certifies that it has been unable to
identify any entity who may be liable for the cost of remediation. As a result, the
REQUESTING PARTY has included all estimated costs of remediation of such hazardous
substances in its estimated cost of construction of the PROJECT.
10. If, subsequent to execution of this contract, previously unknown hazardous
substances are discovered within the PROJECT limits, which require enviromnental remediation
pursuant to either state or federal law, the REQUESTING PARTY, in addition to reporting that
fact to the Depa1tment ofEnviromnental Quality, shall immediately notify the DEPARTMENT,
both orally and in writing of such discovery. The DEPARTMENT shall consult with the
REQUESTING PARTY to detem1ine if it is willing to pay for the cost of remediation and, with
the FHWA, to determine the eligibility, for reimbursement, of the remediation costs. The
REQUESTING PARTY shall be charged for and shall pay all costs associated with such
remediation, including all delay costs of the contractor for the PROJECT, in the event that
remediation and delay costs are not deemed eligible by the FHWA. If the REQUESTING
PARTY refuses to participate in the cost of remediation, the DEPARTMENT shall terminate the
PROJECT. The parties agree that any costs or damages that the DEPARTMENT incurs as a
result of such termination shall be considered a PROJECT COST.
11. If federal and/or state funds administered by the DEPARTMENT are used to pay
the cost of remediating any hazardous substances discovered after the execution of this contract
and if there is a reasonable likelihood of recovery, the REQUESTING PARTY, in cooperation
with the Department of Enviromnental Quality and the DEPARTMENT, shall make a diligent
effort to recover such costs from all other possible entities. If recovery is made, the
DEPARTMENT shall be reimbursed from such recovery for the proportionate share of the
amount paid by the FHWA and/or the DEPARTMENT and the DEPARTMENT shall credit
such sums to the appropriate funding source.
12/01/05 HPSL&LJT.FOR 3/4/08 5
12. The DEPARTMENT'S sole reason for entering into this contract is to enable the
REQUESTING PARTY to obtain and use funds provided by the Federal Highway
Administration pursuant to Title 23 of the United States Code.
Any and all approvals of, reviews of, and recommendations regarding contracts,
agreements, permits, plans, specifications, or documents, of any nature, or any inspections of
work by the DEPARTMENT and its agents pursuant to the terms of this contract are done to
assist the REQUESTING PARTY in meeting program guidelines in order to qualify for available
funds. Such approvals, reviews, inspections and recommendations by the DEPARTMENT and
its agents shall not relieve the REQUESTING PARTY and the local agencies, as applicable, of
their ultimate control and shall not be construed as a warranty of their propriety or that the
DEPARTMENT and its agents is assuming any liability, control or jurisdiction.
The providing of recommendations or advice by the DEPARTMENT and its agents does
not relieve the REQUESTING PARTY and the local agencies, as applicable of their exclusive
jurisdiction of the highway and responsibility under MCL 691.1402, MSA 3.996(102).
When providing approvals, reviews and recommendations under this contract, the
DEPARTMENT and its agents is performing a goverrunental function, as that term is defined in
MCL 691.1401; MSA 3.996(101), which is incidental to the completion of the PROJECT.
13. The DEPARTMENT, by executing this contract, and rendering services pursuant
to this contract, has not and does not assume jurisdiction of the highway, described as the
PROJECT for purposes of MCL 691.1402; MSA 3.996(102). Exclusive jurisdiction of such
highway for the purposes of MCL 691.1402; MSA 3.996(102) rest with the REQUESTING
PARTY and other local agencies having respective jurisdiction.
14. The REQUESTING PARTY shall approve all of the plans and specifications to
be used on the PROJECT and shall be deemed to have approved all changes to the plans and
specifications when put into effect. It is agreed that ultimate responsibility and control over the
PROJECT rests with the REQUESTING PARTY and local agencies, as applicable.
15. The REQUESTING PARTY agrees that the costs reported to the DEPARTMENT
for this contract will represent only those items that are properly chargeable in accordance with
this contract. The REQUESTING PARTY also certifies that it has read the contract terms and
has made itself aware of the applicable laws, regulations, and terms of this contract that apply to
the reporting of costs incurred under the terms of this contract.
16. The parties shall promptly provide comprehensive assistance and cooperation in
defending and resolving any claims brought against the DEPARTMENT by the contractor,
vendors or suppliers as a result of the DEPARTMENT'S award of the construction contract for
the PROJECT. Costs incurred by the DEPARTMENT in defending or resolving such claims
shall be considered PROJECT COSTS.
12/01/05 HPSL&LJT.FOR 3/4/08 6
17. The DEPARTMENT shall require the contractor who is awarded the contract for
the construction of the PROJECT to provide insurance in the amounts specified and in
accordance with the DEPARTMENT'S current standard specifications for construction, and to:
A. Maintain bodily injury and property damage insurance for the duration of
the PROJECT.
B. Provide owner's protective liability insurance naming as insureds the State
of Michigan, the Michigan State Transportation Commission, the
DEPARTMENT and its officials, agents and employees, the
REQUESTING PARTY and any other county, county road commission,
or municipality in whose jurisdiction the PROJECT is located, and their
employees, for the duration of the PROJECT and to provide, upon request,
copies of certificates of insurance to the insureds. It is understood that the
DEPARTMENT does not assume jurisdiction of the highway described as
the PROJECT as a result of being named as an insured on the owner's
protective liability insurance policy.
C. Comply with the requirements of notice of cancellation and reduction of
insurance set forth in the current standard specifications for construction
and to provide, upon request, copies of notices and reports prepared to
those insured.
12/01/05 HPSL&LJT.FOR 3/4/08 7
18. This contract shall become binding on the parties hereto and of full force and
effect upon the signing thereof by the duly authorized officials for the parties hereto and upon
the adoption of the necessary resolution approving said contract and authorizing the signatures
thereto of the respective officials of the REQUESTING PARTY, a certified copy of which
resolution shall be attached to this contract.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the
day and year first above written.
CITY OF MUSK.EGON MICHIGAN DEPARTMENT
OF TRANSPORT ION
12/01/05 HPSL&LJT.FOR 3/4/08 8
March 4, 2008
EXHIBIT I
CONTROL SECTION HPSL 61407
JOB NUMBER 102538
PROJECT HPSL 0861(383)
ESTIMATED COST
CONTRACTED WORK
PART A PARTB TOTAL
Estimated Cost $721,100 $42,900 $764,000
CONSTRUCTION ENGINEERING, CONSTRUCTION $108,100 $ -0- $108,100
MATERIALS TESTING, AND INSPECTION
(REQUESTING PARTY)
GRAND TOTAL $829,200 $42,900 $872,100
COST PARTICIPATION
Grand Total Estimated Cost $829,200 $42,900 $872,100
Less Federal High Priority Project - SAFETEA LU Funds $663,400 $ -0- $663,400
Less State Local Jobs Today Grant Funds* $165,800 $ -0- $165,800
BALANCE (REQUESTING PARTY'S SHARE) $ -0- $42,900 $ 42,900
*State Local Jobs Today Grant Funds for the PART A portion of the PROJECT are limited to an
amount as described in Section 5.
**Federal High Priority Project-SAFETEA LU Funds for the PART A portion of the PROJECT
are limited to an amount as described in Section 5.
NO DEPOSIT
12/01/05 HPSL&LJT.FOR 3/4/08 9
DOT TYPEB
BUREAU OF HIGHWAYS
03-15-93
PART II
ST ANDARD AGREEMENT PROVISIONS
SECTION I COMPLIANCE WITH REGULATIONS AND DIRECTIVES
SECTION II PROJECT ADMINISTRATION AND SUPERVISION
SECTION III ACCOUNTING AND BILLING
SECTION IV MAINTENANCE AND OPERATION
SECTION V SPECIAL PROGRAM AND PROJECT CONDITIONS
SECTION I
COMPLIANCE WITH REGULATIONS AND DIRECTIVES
A To qualify for eligible cost, all work shall be documented in accordance with the require-
ments and procedures of the DEPARTMENT.
B. All work on projects for which reimbursement with Federal funds is requested shall be
performed in accordance with the requirements and guidelines set forth in the follo"ing
Directives of the Federal-Aid Policy Guide (FAPG) of the FHWA, as applicable, and as
referenced in pertinent sections of Title 23 and Title 49 of the Code of Federal Regulations
(CFR), and all supplements and amendments thereto.
1. Engineering
a. FAPG (6012.1): Preliminary Engineering
b. F APG (23 CFR 172): Administration of Engineering and Design Related
Service Contracts
c. FAPG (23 CFR 635A): Contract Procedures
d. F APG (49 CFR 18.22): Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments-Allowable Costs
2. Construction
a. FAPG (23 CFR 140E): Administrative Settlement Costs-Contract Claims
b. FAPG (23 CFR 140B): Construction Engineering Costs
C. FAPG (23 CFR 17): Recordkeeping and Retention Requirements for Federal-
Aid Highway Records of State Highway Agencies
d. F APG (23 CFR 635A): Contract Procedures
e. FAPG (23 CFR 635B): Force Account Construction
f. FAPG (23 CFR 645A): Utility Relocations, Adjustments and Reimbursement
g. F APG (23 CFR 645B): Accommodation of Utilities (PPM 30-4.1)
03-15-93 2
h. FAPG (23 CFR 655F): Traffic Control Devices on Federal-Aid and other
Streets and Highways
1. FAPG (49 CFR 18.22):Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments-Allowable Costs
3. Modification Or Construction Of Railroad Facilities
a. FAPG (23 CFR I 40I): Reimbursement for Railroad Work
b. FAPG (23 CFR 646B): Railroad Highway Projects
C. In conformance with FAPG (23 CFR 630C) Project Agreements, the political subdivisions
party to this contract, on those Federally funded projects which exceed a total cost of
$100,000.00 stipulate the following with respect to their specific jurisdictions:
I. That any facility to be utilized in performance under or to benefit from this contract
is not listed on the Environmental Protection Agency (EPA) List of Violating
Facilities issued pursuant to the requirements of the Federal Clean Air Act, as
amended, and the Federal Water Pollution Control Act, as amended.
2. That they each agree to comply with all of the requirements of Section 114 of the
Federal Clean Air Act and Section 308 of the Federal Water Pollution Control Act,
and all regulations and guidelines issued thereunder.
3. That as a condition of Federal aid pursuant to this contract they shall notify the
DEPARTMENT of the receipt of any advice indicating that a facility to be utilized
in performance under or to benefit from this contract is under consideration to be
listed on the EPA List of Violating Facilities.
D. Ensure that the PROJECT is constructed in accordance with and incorporates all committed
environmental impact mitigation measures listed in approved environmental documents
unless modified or deleted by approval of the FHWA.
E. All the requirements, guidelines, conditions and restrictions noted iri all· other pertinent
Directives and Instructional Memoranda of the FHWA will apply to this contract and v.,ill
be adhered to, as applicable, by the parties hereto.
03-15-93 3
SECTION II
PROJECT ADMINISTRATION AND SUPERVISION
A. The DEPARTMENT shall provide such administrative guidance as it determines is required
by the PROJECT in order to facilitate the obtaining of available federal and/or state funds.
B. The DEPARTMENT will advertise and award all contracted portions ofthe PROJECT work.
Prior to advertising of the PROJECT for receipt of bids, the REQUESTING PARTY may
delete any portion or all of the PROJECT work. After receipt of bids for the PROJECT, the
REQUESTING PARTY shall have the right to reject the amount bid for the PROJECT prior
to the award of the contract for the PROJECT only if such amount exceeds by twenty percent
(20%) the final engineer's estimate therefor. If such rejection of the bids is not received in
writing within two (2) weeks after letting, the DEPARTMENT will assume concurrence.
The DEPARTMENT may, upon request, readvertise the PROJECT. Should the REQUEST-
ING PARTY so request in writing within the aforesaid two (2) week period after letting, the
PROJECT will be cancelled and the DEPARTMENT will refund the unused balance of the
deposit less all costs incurred by the DEPARTMENT.
C. The DEPARTMENT will perform such inspection services on PROJECT work performed
by the REQUESTING PARTY with its own forces as is required to ensure compliance with
the approved plans & specifications.
D. On those projects funded with Federal monies, the DEPARTMENT shall as may be required
secure from the FHW A approval of plans and specifications, and such cost estimates for
FHW A participation in the PROJECT COST.
E. All work in connection with the PROJECT shall be performed in conformance with the
Michigan Department of Transportation Standard Specifications for Construction, and the
supplemental specifications, Special Provisions and plans pertaining to the PROJECT and
all materials furnished and used in the construction of the PROJECT shall conform to the
aforesaid specifications. No extra work shall be performed nor changes in plans and
specifications made until said work or changes are approved by the project engineer and
authorized by the DEPARTMENT.
03-15-93 4
F. Should it be necessary or desirable that portions of the work covered by this contract be
accomplished by a consulting firm, a railway company, or governmental agency, firm,
person, or corporation, under a subcontract with the REQUESTING PARTY at PROJECT
expense, such subcontracted arrangements will be covered by formal v.ritten agreement
between the REQUESTING PARTY and that party.
This formal written agreement shall: include a reference to the specific prime contract to
which it pertains; include provisions which clearly set forth the maximum reimbursable and
the basis of payment; provide for the maintenance of accounting records in accordance with
generally accepted accounting principles, which clearly document the actual cost of the
services provided; provide that costs eligible for reimbursement shall be in accordance with
clearly defined cost criteria such as 49 CFR Part 18, 48 CFR Part 31, 23 CFR Part 140, 0MB
Circular A-87, etc. as applicable; provide for access to the department or its representatives
to inspect and audit all data and records related to the agreement for a minimum of three
years after the department's final payment to the local unit.
All such agreements will be submitted for approval by the DEPARTMENT and, if
applicable, by the FHWA prior to execution thereof, except for agreements for amounts less
than $25,000 for preliminary engineering and testing services executed under and in accor-
dance with the provisions of the "Small Purchase Procedures" FAPG (23 CFR 172), which
do not require prior approval of the DEPARTMENT or the FHWA.
Any such approval by the DEPARTMENT shall in no way be construed as a warranty of the
subcontractor's qualifications, financial integrity, or ability to perform the work being
subcontracted.
G. The REQUESTING PARTY, atno costto the PROJECT or the DEPARTMENT, shall make
such arrangements with railway companies, utilities, etc., as may be necessary for the
performance of work required for the PROJECT but for which Federal or other
reimbursement will not be requested.
H. The REQUESTING PARTY, at no cost to the PROJECT, or the DEPARTMENT, shall
secure, as necessary, all agreements and approvals ofthe PROJECT with railway companies,
the Railroad Safety & Tariffs Division of the DEPARTMENT and other concerned
governmental agencies other than the FHWA, and wi11 forward same to the DEPARTMENT
for such reviews and approvals as may be required.
I. No PROJECT work for which reimbursement will be requested by the REQUESTING
PARTY is to be subcontracted or performed until the DEPARTMENT gives written
notification that such work may commence.
03-15-93 5
J. The REQUESTING PARTY shall be responsible for the payment cif all costs and expenses
incurred in the performance of the work it agrees to undertake and perform.
K. The REQUESTING PARTY shall pay directly to the party performing the work all billings
for the services performed on the PROJECT which are authorized by or through the
REQUESTING PARTY
L. The REQUESTING PARTY shall submit to the DEPARTMENT all paid billings for which
reimbursement is desired in accordance with DEPARTMENT procedures.
M. All work by a consulting firm will be performed in compliance with the applicable
provisions of 1980 PA 299, Subsection 2001, MCL 339.2001; MSA I 8.425(2001), as well
as in accordance with the provisions of all previously cited Directives of the FHWA.
N. The project engineer shall be subject to such administrativ_e guidance as may be deemed
necessary to ensure compliance with program requirement and, in those instances where a
consultant firm is retained to provide engineering and inspection services, the personnel
performing those services shall be subject to the same conditions.
0. The DEPARTMENT, in administering the PROJECT in accordance with applicable Federal
and State requirements and regulations, neither assumes nor becomes liable for any obliga-
tions undertaken or arising between the REQUESTING PARTY and any other party with
respect to the PROJECT.
P. In the event it is determined by the DEPARTMENT that there will be either insufficient
Federal funds or insufficient time to properly administer such funds for the entire PROJECT
or portions thereof, the DEPARTMENT, prior to advertising or issuing authorization for
work performance, may cancel the PROJECT, or any portion thereof, and upon ·written
notice to the parties this contract shall be void and of no effect with respect to that cancelled
portion of the PROJECT. Any PROJECT deposits previously made by the parties on the
cancelled portions of ihe PROJECT will be promptly refunded.
Q. Those projects funded with Federal monies will be subject to inspection at all times by the
DEPARTMENT and the FHWA.
03-15-93 6
SECTION Ill
ACCOUNTING AND BILLING
A. Procedures for billing for work undertaken by the REQUESTING PARTY:
I. The REQUESTING PARTY shall establish and maintain accurate records. in
accordance with generally accepted accounting principles, of all expenses incurred
for which payment is sought or made under this contract, said records to be
hereinafter referred to as the "RECORDS". Separate accounts shall be established ·
and maintained for all costs incurred under this contract.
The REQUESTING PARTY shall maintain the RECORDS for at least three (3) years
from the date of final payment of Federal Aid made by the DEPARTMENT under
this contract. In the event of a dispute with regard to the allowable expenses or any
other issue under this contract, the REQUESTING PARTY shall thereafter continue
to maintain the RECORDS at least until that dispute has been finally decided and the
time for all available challenges or appeals of that decision has expired.
The DEPARTMENT, or its representative, may inspect, copy, or audit the
RECORDS at any reasonable time after giving reasonable notice.
If any part of the work is subcontracted, the REQUESTING PARTY shall assure
compliance with the above for all subcontracted work.
In the event that an audit performed by or on behalf of the DEPARTMENT indicates
an adjustment to the costs reported under this contract, or questions the allowability
of an item of expense, the DEPARTMENT shall promptly submit to the
REQUESTING PARTY, a Notice of Audit Results and a copy of the audit report
which may supplement or modify any tentative findings verbally communicated to
the REQUESTING PARTY at the completion ofan audit.
Within sixty (60) days after the date of the Notice of Audit Results, the
REQUESTING PARTY shall: (a) respond in writing to the responsible Bureau or the
DEPARTMENT indicating whether or not it concurs with the audit report, (b) clearly
explain the nature and basis for any disagreement as to a disallowed item of expense
and, (c) submit to the DEPARTMENT a written explanation as to any questioned or
no opinion expressed item of expense, hereinafter referred to as the "RESPONSE".
The RESPONSE shall be clearly stated and provide any supporting documentation
necessary to resolve any disagreement or questioned or no opinion expressed item of
expense. Where the documentation is voluminous, the REQUESTING PARTY may
supply appropriate excerpts and make alternate arrangements to conveniently and
03-15-93 7
arrangements to conveniently and reasonably make that documentation available
for review by the DEPARTMENT. The RESPONSE shall refer to and apply the
language of the contract. The REQUESTING PARTY agrees that failure to
submit a RESPONSE within the sixty (60) day period constitutes agreement with
any disallowance of an item of expense and authorizes the DEPARTMENT to
finally disallow any items of questioned or no opinion expressed cost.
The DEPARTMENT shall make its decision with regard to any Notice of Audit
Results and RESPONSE within one hundred twenty (120) days after the date of
the Notice of Audit Results. If the DEPARTMENT determines that an
overpayment has been made to the REQUESTING PARTY, the REQUESTING
PARTY shall repay that amount to the DEPARTMENT or reach agreement with
the DEPARTMENT on a repayment schedule within thirty (30) days after the
date of an invoice from the DEPARTMENT. If the REQUESTING PARTY fails
to repay the overpayment or reach agreement with tl1e DEPARTMENT on a
repayment schedule within the thirty (30) day period, the REQUESTING PARTY
agrees that the DEPARTMENT shall deduct all or a portion of the overpayment
from any funds then or thereafter payable by the DEPARTMENT to the
REQUESTING PARTY under this contract or any other agreement, or payable to
the REQUESTING PARTY under the terms of 1951 PA 51, as applicable.
Interest will be assessed on any partial payments or repayment schedules based on
the unpaid balance at the end of each month until the balance is paid in full. The
assessment of interest will begin thirty (30) days from the date of the invoice.
The rate of interest will be based on the Michigan Department of Treasury
common cash funds interest earnings. The rate of interest will be reviewed
amrnally by the DEPARTMENT and adjusted as necessary based on the Michigan
Department of Treasury common cash funds interest earnings. The
REQUESTING PARTY expressly consents to this withholding or offsetting of
funds under those circumstances, reserving the right to file a lawsuit in the Court
of Claims to contest the DEPARTMENT'S decision only as to any item of
expense the disallowance of which was disputed by the REQUESTING PARTY
in a timely filed RESPONSE.
The REQUESTING PARTY shall comply with the Single Audit Act of 1984,
P.L. 98-502.
The REQUESTING PARTY shall adhere to the following requirements
associated with audits of accounts and records:
a. Agencies expending a total of $500,000 or more in federal funds, from one or
more funding sources in its fiscal year, shall comply with the requirements of the
federal Office of Management and Budget (0MB) Circular A-133, as revised or
amended.
03-15-93 8
,
'
The agency shall submit two copies of:
The Reporting Package
The Data Collection Form
The management letter to the agency, if one issued by the audit firm
The 0MB Circular A-133 audit must be submitted to the address below m
accordance with the time frame established in the circular, as revised or amended.
b. Agencies expending less than $300,000 in federal funds must submit a letter to
the Department advising that a circular audit was not required. The letter shall
indicate the applicable fiscal year, the amount offederal funds spent, the name(s) of
the Department federal programs, and the CFDA grant number(s). This information
must also be submitted to the address below.
c. Address: Michigan Department of Transportation
Bureau of Highways Technical Services
425 W. Ottawa, P.O. Box 30050
Lansing, MI 48909
d. Agencies must also comply with applicable State laws and regulations relative to
audit requirements.
e. Agencies shall not charge audit costs to Department's federal programs which are
not in accordance with the 0MB Circular A-133 requirements.
f. All agencies are subject to the federally required monitoring activities, which may
include limited scope reviews and other on-site monitoring.
2. Agreed Unit Prices Work - All billings for work undertaken by the REQUESTNG
PARTY on an agreed unit price basis will be submitted in accordance with the
Michigan Department ofTransportation Standard Specifications for Construction and
pertinent FAPG Directives and Guidelines of the FHWA.
~
.) . Force Account Work and Subcontracted Work - All billings submitted to the
DEPARTMENT for Federal reimbursement for items of work performed on a force
account basis or by any subcontract with a consulting firm, railway company,
governmental agency or other party, under the terms of this contract, shall be
prepared in accordance with the provisions of the pertinent FHPM Directives and the
procedures of the DEPARTMENT. Progress billings may be submitted monthly
during the time work is being performed provided, however, that no bill of a lesser
amount than $1,000.00 shall be submitted unless it is a final or end of fiscal year
billing. All billings shall be labeled either "Progress Bill Number _ _ _ ", or
"Final Billing".
03-15-93 9
4. Final billing under this contract shall be submitted in a timely manner but nor later
than six months after completion of the work. Billings for work submitted later than
six months after completion of the work will not be paid.
5. Upon receipt of billings for reimbursement for work undertaken by the
REQUESTING PARTY on projects funded with Federal monies. the
DEPARTMENT will act as billing agent for the REQUESTING PARTY.
consolidating said billings with those for its own force account work and presenting
these consolidated billings to the FHWA for payment. Upon receipt of
reimbursement from the FHWA, the DEPARTMENT will promptly forward to the
REQUESTING PARTY its share of said reimbursement.
6. Upon receipt of billings for reimbursement for work undertaken by the
REQUESTING PARTY on projects funded with non-Federal monies, the
DEPARTMENT will promptly forward to the REQUESTING PARTY
reimbursement of eligible costs.
B. Payment of Contracted and DEPARTMENT Costs:
1. As work on the PROJECT commences, the initial payments for contracted work
and/or costs incurred by the DEP ARTMENTwill be made from the working capital
deposit. Receipt of progress payments of Federal funds, and where applicable, State
Critical Bridge funds, will be used to replenish the working capital deposit. The
REQUESTING PARTY shall make prompt payments of its share of the contracted
and/or DEPARTMENT incurred portion of the PROJECT COST upon receipt of
progress billings from the DEPARTMENT. Progress billings will be based upon the
REQUESTING PARTY'S share of the actual costs incurred as work on the
PROJECT progresses and will be submitted, as required, until it is determined by
the DEPARTMENT that there is sufficient available working capital to meet the
remaining anticipated PROJECT COSTS. All progress payments will be made
within thirty (30) days of receipt of billings. No monthly billing of a lesser amount
than $1,000.00 will be made unless it is a final or end of fiscal year billing. Should
the DEPARTMENT determine that the available working capital exceeds the
remaining anticipated PROJECT COSTS, the DEPARTMENT may reimburse the
REQUESTING PARTY such excess. Upon completion of the PROJECT, payment
of all PROJECT COSTS, receipt of all applicable monies from the FHW A, and
completion of necessary audits, the REQUESTING PARTY will be reimbursed the
balance of its deposit.
03-15-93 10
2. In the event that the bid, plus contingencies, for the ·contracted. and/or the
DEPARTMENT incurred portion of the PROJECT work exceeds the estimated cost
therefor as established by this contract, the REQUESTING PARTY may be advised
and billed for the additional amount of its share.
C. General Conditions:
I. The DEPARTMENT, in accordance with its procedures in existence and covering
the time period involved, shall make payment for interest earned on the balance of
working capital deposits for all projects on account with the DEPARTMENT. The
REQUESTil'<G PARTY in accordance with DEPARTMENT procedures in existence
and covering the time period involved, shall make payment for interest owed on any
deficit balance of working capital deposits for all projects on account with the
DEPARTMENT. This payment or billing is processed on an annual basis
corresponding to the State of Michigan fiscal year. Upon receipt of billing for
interest incurred, the REQUESTING PARTY promises and shall promptly pay the
DEPARTMENT said amount.
2. Pursuant to the authority granted by law, the REQUESTING PARTY hereby
irrevocably pledges a sufficient amount of funds received by it from the Michigan
Transportation Fund to meet its obligations as specified in PART I and PART II. If
the REQUESTING PARTY shall fail to make any of its required payments when
due, as specified herein, the DEPARTMENT shall immediately notify the
REQUESTING PARTY and the State Treasurer of the State of Michigan or such
other state officer or agency having charge and control over disbursement of the
Michigan Transportation Fund, pursuant to law, of the fact of such default and the
amount thereof, and, if such default is not cured by payment within ten (I 0) days,
said State Treasurer or other state officer or agency is then authorized and directed
to withhold from the first of such monies thereafter allocated by law to the
REQUESTING PARTY from the Michigan Transportation Fund sufficient monies
to remove the default, and to credit the REQUESTING PARTY with payment
thereof, and to notify the REQUESTING PARTY in writing of such fact.
Upon completion of all work under this contract and final audit by the
DEPARTMENT or the FHWA, the REQUESTING PARTY promises to promptly
repay the DEPARTMENT for any disallowed items of costs previously disbursed by
the DEPARTMENT. The REQUESTING PARTY pledges its future receipts from
the Michigan Transportation Fund for repayment of all disallowed items and, upon
failure to make repayment for any disallowed items within ninety (90) days of
demand made by the DEPARTMENT, the DEPARTMENT is hereby authorized to
withhold an equal amount from the REQUESTING PARTY'S share of any future
distribution of Michigan Transportation Funds in settlement of said claim.
03-15-93 11
,
,
4. The DEPARTMENT shall maintain and keep accurate records and accounts relative
to the cost of the PROJECT and upon completion of the PROJECT, payment of all
items of PROJECT COST, receipt of all Federal Aid, if any, and completion of final
audit by the DEPARTMENT and if applicable, by the FHW A, shall make final
accounting to the REQUESTING PARTY. The final PROJECT accounting will not
include interest earned or charged on working capital deposited for the PROJECT
which will be accounted for separately at the close of the State of Michigan fiscal
year and as set forth in Section C(l).
5. The costs of engineering and other services performed on those projects involving
specific program funds and one hundred percent (100%) local funds will be appor-
tioned to the respective portions of that project in the same ratio as the actual direct
construction costs unless otherwise specified in PART I.
03-15-93 12
SECTION IV
MAINTENANCE AND OPERATION
A. Upon completion of construction of each part of the PROJECT, at no cost to the
DEPARTMENT or the PROJECT, each of the parties hereto, within their respective
jurisdictions, will make the following provisions for the maintenance and operation of the
completed PROJECT:
1. All Projects:
Properly maintain and operate each part of the project, making ample provisions each
year for the performance of such maintenance work as may be required, except as
qualified in paragraph 2b of this section.
2. Projects Financed in Part with Federal Monies:
a. Sign and mark each part of the PROJECT, in accordance with the current
Michigan Manual of Uniform Traffic control Devices, and will not install, or
permit to be installed, any signs, signals or markings not in conformance with
the standards approved by the FHWA, pursuant to 23 USC 109(d).
b. Remove, prior to completion of the PROJECT, all encroachments from the
roadway right-of-way within the limits of each part of the PROJECT.
With respect to new or existing utility installations within the right-of-way
of Federal Aid projects and pursuant to FAPG (23 CFR 645B): Occupancy
of non-limited access right-of-way may be allowed based on consideration for
traffic safety and necessary preservation of roadside space and aesthetic
quality. Longitudinal occupancy of non-limited access right-of-way by
private lines will require a finding of significant economic hardship, the
unavailability of practicable alternatives or other extenuating circumstances.
C. Cause to be enacted, maintained and enforced, ordinances and regulations for
proper traffic operations in accordance with the plans of the PROJECT.
d. Make no changes to ordinances or regulations enacted, or traffic controls
installed in conjunction with the PROJECT work without prior review by the
DEPARTMENT and approval of the FHWA, ifrequired.
03-15-93 13
.'
B. On projects for the removal of roadside obstacles, the parties', upon completion of
construction of each part of the PROJECT, at no cost to the PROJECT or the
DEPARTMENT, will, within their respective jurisdictions, take such action as is necessary
to assure that the roadway right-of-way, cleared as the PROJECT, will be maintained free
of such obstacles.
C. On projects for the construction of bikeways, the parties will enact no ordinances or
regulations prohibiting the use of bicycles on the facility hereinbefore described as the
PROJECT, and will amend any existing restrictive ordinances in this regard so as to allow
use of this facility by bicycles. No motorized vehicles shall be permitted on such bikeways
or walkways constructed as the PROJECT except those for maintenance purposes.
D. Failure of the parties hereto to fulfill their respective responsibilities as outlined herein may
disqualify that party from future Federal-aid participation in projects on roads or streets for
which it has maintenance responsibility. Federal Aid may be withheld until such time as
deficiencies in regulations have been corrected, and the improvements constructed as the
PROJECT are brought to a satisfactory condition of maintenance.
03-15-93 14
.,
SECTIONV
SPECIAL PROGRAM AND PROJECT CONDITIONS
A. Those projects for which the REQUESTING PARTY has been reimbursed with Federal
monies for the acquisition of right-of-way must be under construction by the close of the
twentieth (20th) fiscal year following the fiscal year in which the FHWA and the
DEPARTMENT projects agreement covering that work is executed, or the REQUESTf:\iG
PARTY may be required to repay to the DEPARTMENT, for forwarding to the FHW A, all
monies distributed as the FHWA'S contribution to that right-of-way.
B. Those projects for which the REQUESTING PARTY has been reimbursed with Federal
monies for the perfonnance of preliminary engineering must be under construction by the
close of the tenth (I 0th) fiscal year following the fiscal year in which the FHWA and the
DEPARTMENT projects agreement covering that work is executed, or the REQUESTING
PARTY may be required to repay to the DEPARTMENT, for forwarding to the FHWA, all
monies distributed as the FHWA'S contribution to that preliminary engineering.
C. On those projects funded with Federal monies, the REQUESTING PARTY, at no cost to the
PROJECT or the DEPARTMENT, will provide such accident infonnation as is available and
such other information as may be required under the program in order to make the proper
assessment of the safety benefits derived from the work performed as the PROJECT. The
REQUESTING PARTY will cooperate with the DEPARTMENT in the development of
reports and such analysis as may be required and will, when requested by the
DEPARTMENT, forward to the DEPARTMENT, in such fonn as is necessary, the required
information.
D. In connection with the performance of PROJECT work under this contract the parties hereto
(hereinafter in Appendix "A" referred to as the "contractor") agree to comply with the State
of Michigan provisions for "Prohibition of Discrimination in State Contracts", as set forth
in Appendix A, attached hereto and made a part hereof. The parties further covenant that
they will comply with the Civil Rights Acts of 1964, being P.L. 88-352, 78 Stat. 241, as
amended, being Title 42 U.S.C. Sections 1971, 1975a-1975d, and 2000a-2000h-6 and the
Regulations of the United States Department of Transportation (49 C.F.R. Part 21) issued
pursuant to said Act, including Appendix "B ", attached hereto and made a part hereof, and
will require similar covenants on the part of any contractor or subcontractor employed in the
performance of this contract.
E. The parties will carry out the applicable requirements of the DEPARTMENT'S
Disadvantaged Business Enterprise (DBE) program and 49 CFR, Part 26, including, but not
limited to, those requirements set forth in Appendix C.
03-15-93 15
APPENDIX A
PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS
in connection with the performance of work under this contract; the contractor agrees as foilows:
1. In accordance with Act No. 453, Public Acts of 1976, the contractor hereby agrees not to discriminate against an employee
or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or as a matter
directly or indirectly related to employment, because of race, color, religion, national origin, age. sex, height, weight, or
marital status. Further, in accordance with Act No. 220, Public Acts of 1976 as amended by Act l'io. 478, Public Acts of
1980 the contractor hereby agrees not to discriminate against an employee or applicant for employment with respect to
hire, tenure, terms, conditions, or privileges of employment, or a matter directly or indirectly related to employment,
because ofa disability that is unrelated to the individual's ability to perform the duties ofa particular job or position.
A b-reach of the above covenants shall be regarded as a material breach of this contract.
2. The contractor hereby agrees that any and all subcontracts to this contract, whereby a portion of the work set forth in
this contract is to be performed, shaH contain a covenant the same as hereinabove set forth in Section 1 of this Appendix.
3. The contractor will take affirmative action to insure that applicants for employment and employees are treated without
regard to their race, color, religion, national origin, age, sex, height, weight, marital status or a disability that is unrelated
to the individual's ability to perform the duties of a particular job or position. Such action shall include, but not be limited
to, the following: employment, upgrading, demotion or transfer, recruitment advertising; layoff or termination; rates of
pay or other forms of compensation; and selection for training, including apprenticeship.
4. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that
all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin 1
age, sex, height, weight, marital status or disability that is unrelated to the individual's ability to perform the duties of a
particular job or position.
5. The contractor or his collective bargaining representative will send to each labor union or representative of workers with
which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union
or workers' representative of the contractor's commitments under this appendix.
6. The contractor will comply with all relevant published rules, regulations, directives, and orders of the Michigan Civil
Rights Commission which may be in effect prior to the taking of bids for any individual state project.
7. The contractor will furnish and file compliance reports within such time and upon such forms as provided by the Michigan
Civil Rights Cpmmission, said forms may also el_icit information as to the practices, policies, program, and employment
statistics of each subcontractor as well as the contractor himself, and said contractor will permit access to his books,
records,and accounts bY the Michigan Civil Rights Commission and/or its agent, for purposes of investigation to ascertain
compliance with this contract and relevant with rules, regulations, and orders of the Michigan Civil Rights Commission.
8. In the event that the Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor has not
complied with the contractual obligations under this agreement, the Civil Rights Commission may, as part of its order
based upon such findings, certify said findings to the Administrative Board of the State of Michigan, which Administrative
Board may order the cancellation of the contract found to have been violated and/or declare the contractor ineligible for
future contracts with the state and its political and civil subdivisions, departments, and officers, and including the
governing boards of institutions of higher education, until the contractor complies with said order of the Civil Rights
Commission. Notice of said declaration of future ineligibility may be given to any or all of the persons with whom the
contractor is declared ineligible to contract as a contracting party in future contracts. In any case before the Civil Rights
Commission in which cancellation of an existing contract is a possibility, the contracting agency shall be notified of such
possible remedy and shall be given the option by the Civil Rights Commission to participate in such proceedings.
9. The contractor will include, or incorporate by reference, the provisions of the foregoing paragraphs (1) through (8) in
every subcontract or purchase order unless exempted by the rules, regulations or orders of the Michigan Civil Rights
Commission, and will provide in every subcontract or purchase order that said provisions will be binding upon each
subcontractor or seller. March. 1998
(ReY. 03/92)
APPENDIX B
During the performance of this contract, the contractor, for itself, its assignees, and successors in interest
(hereinafter referred to as the "contractor") agrees as follows:
1. Compliance with Regulations: The contractor shall comply with the Regulations relative to
nondiscrimination in Federally assisted programs of the Department of Transportation, Title 49, Code
of Federal Regulations, Part 27, as they may be amended from time to time (hereinafter referred to as
the Regulations), which are herein incorporated by reference and made a part of this contract.
2. Nondiscrimination: The contractor, with regard to the work performed by it during the contract, shall
not discriminate on the grounds of race, color, or natural origin in the selection and retention of
subcontractors, including procurements of materials and leases of equipment. The contractor shall not
participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the
Regulations, including employment practices when the contract covers a program set forth in Appendix
B of the Regulations.
3. Solicitations for Subcontracts. Including Procurements of Materials and Equipment: In all solicitations
either by competitive bidding or negotiation made by the contractor for work to be performed under a
subcontract, including procurements of materials or leases of equipment, each potential subcontractor
or supplier shall be notified by the contractor of the contractor 1s obligations under this contract and the
Regulations relative to nondiscrimination on the grounds of race, color, or national origin.
4. Information and Reports: The contractor shall provide all information and reports required by the
Regulations, or directives issued pursuant thereto,and shall permit access to its books, records, accounts,
other sources of information, and its facilities as may be determined by the Michigan Department of
Transportation or the Federal Highway Administration to be pertinentto ascertain compliance with such
Regulations or directives. Where any information required of a contractor is in the exclusive possession
ofanother who fails or refuses to furnish this information, the contractor shall so certify to the Michigan
Department of Transportation, or the Federal Highway Administration as appropriate, and shall set
forth what efforts it has made to obtain the information.
5. Sanctions for Noncompliance: In the event of the contractor's noncompliance with the
nondiscrimination provisions of this contract, the Michigan DepartmentofTransportation shall impose
such contract sanctions as it or the Federal Highway Administration may determine to be appropriate,
including, but not limited to:
(a) Withholding of payments to the contractor under the contract until the contractor complies,
and/or
(b) Cancellation, termination, or suspension of the contract, in whole o"r in "j:1art
6. Incorporation of Provisions: The contractor shall include the provisions of paragraphs 1 through 6 of
every subcontract, including procurements of materials and leases of equipment, unless exempt by the
Regulations, or directives issued pursuant thereto. The contractor shall take such action with respect
to any subcontract or procurement as the Michigan Department of Transportation or the Federal
Highway Administration may direct as a means of enforcing such provisions including sanctions for non-
compliance; provided, however, that in the event a contractor becomes involved in, or is threatened with,
litigation with a subcont.ractor or supplier as a result of such direction, the contractor may request the
Michigan Department of Transportation to enter into such litigation to protect the interests of the State,
and, in addition, the contractor may request the United States to enter into such litigation to protect the
interests of the United States.
APPENDIXC
TO BE INCLUDED IN ALL FINANCIAL ASSISTANCE
AGREEMENTS WITH LOCAL AGENCIES
Assurance that Recipients and Contractors Must Make
(Excerpts from US DOT Regulation 49 CFR 26.13)
A. Each financial assistance agreement signed with a DOT operating administration (or
a primary recipient) must include the following assurance:
The recipient shall not discriminate on the basis of race, color,
national origin, or sex in the award and performance of any US
DOT-assisted contract or in the administration of its DBE
program or the requirements of 49 CFR Part 26. The recipient
shall take all necessary and reasonable steps under 49 CFR Part
26 to ensure nondiscrimination in the award and administration
of US DOT-assisted contracts. The recipient's DBE program, as
required by 49 CFR Part 26 and as approved by US DOT, is
incorporated by reference in this agreement. Implementation of
this program is a legal obligation and failure to carry out its
terms shall be treated as a violation of this agreement. Upon
notification to the recipient of its failure to carry out its approved
program, the department may impose sanctions as provided for
under Part 26 and may, in appropriate cases, refer the matter for
enforcement under 18 U.S.C. 1001 and/or the Program Fraud
Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).
B. Each contract MDOT signs with a contractor (and each subcontract the prime
contractor signs with a subcontractor) must include the following assurance:
The contractor, sub recipient or subcontractor shall not
discriminate on the basis of race, color, national origin, or sex in
the performance of this contract. The contractor shall carry out
applicable requirements of 49 CFR Part 26 in the award and
administration of US DOT-assisted contracts. Failure by the
contractor to carry out these requirements is a material breach
of this contract, which may result in the termination of this
contract or such other remedy as the recipient deems
appropriate.
Commission Meeting Date: April 8, 2008
Date: April 1, 2008
To: Honorable Mayor & City Commission
From: Cathy Brubaker-Clarke, Director of Planning &
Economic Development
RE: Set Public Hearing for Amendments to Brownfield
Plan - Betten Auto Dealerships Project
SUMMARY OF REQUEST: To approve the attached resolution setting a public hearing
for amendments to the City of Muskegon Brownfield Plan, and notifying taxing
jurisdictions, Michigan Department of Environmental Quality, and Michigan Economic
Growth Authority of the Brownfield Plan Amendments, including the opportunity to
express their views and recommendations regarding the proposed amendments at the
public hearing. The amendments are for the inclusion of the Betten Auto Dealerships
Project in the Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax Increment Financing would be used to reimburse
the developer and the City for Act 381 "eligible expenses" incurred in association with
development of the Betten properties, starting in 2008. The developers/owners estimate
that full development of the Betten properties will involve over $13 million in private
investment (in addition to property acquisition), resulting in a substantial increase in the
city income, and local and school property taxes generated by the property.
"Eligible expenses" would be reimbursed to Betten starting in 2008, commencing for
either 15 years, or up to $3 million, whichever occurs first. After reimbursement of "eligible
expenses" to Betten, tax capture would continue to reimburse the City for its infrastructure
costs involved in resurfacing Henry Street between Sherman and Hackley, which will
enhance the Betten project. The estimated tax capture schedule is included as
Attachment S-3 in the proposed Brownfield Plan Amendment. The City is also authorized
by law to capture up to $75,000/year to pay for "reasonable and actual administrative
and operating costs of the Brownfield Redevelopment Authority. As such, $10,000/year
of the local tax increment will be captured to reimburse the Brownfield Authority.
After all eligible costs incurred by the parties are reimbursed, the BRA is authorized to
continue to capture local taxes for five more years for deposit into a Local Site
Remediation Revolving Fund. Current tax capture estimates indicate that approximately
$998,500 could be captured from the taxes on the Bellen properties for deposit into this
local fund.
STAFF RECOMMENDATION: To approve the attached resolution and authorize the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority (BRA)
met on April 1, 2008, and approved the Brownfield Plan Amendment adding the Bellen
Auto Dealership properties to the Brownfield Plan. The BRA requests that the Muskegon
City Commission set a public hearing on the Plan Amendments, and requests notification
of the taxing jurisdictions, MDEQ, and MEGA of the proposed amendment and its
financial impact on each jurisdiction.
2008-33(h)
RESOLUTION NOTIFYING TAXING UNITS,
MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY, &
MICHIGAN ECONOMIC GROWTH AUTHORITY;
AND CALLING PUBLIC HEARING REGARDING
APPROVAL OF AMENDMENTS TO THE BROWNFIELD PLAN OF THE
CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of Muskegon,
County of Muskegon, Michigan (the "City"), held in the City offices, on the 8th day of
April, 2008, at 5:30 p.m., prevailing Eastern Time.
PRESENT:
Members Gawron, Shepherd, Spataro, Warmington, Wierenga, Wisneski,
and Carter
ABSENT: Members
None
The following preamble and resolution were offered by Member
_ca_r_t_e_r_ _ _ _ and supported by Member_s~p_at_a_r_o_ _ __
WHEREAS, the City of Muskegon, County of Muskegon, Michigan (the "City") is
authorized by the provisions of Act 381, Public Acts of Michigan, 1996, as amended
("Act 381"), to create a brownfield redevelopment authority; and
WHEREAS, pursuant to Act 381, the City Commission of the City duly
established the City of Muskegon Brownfield Redevelopment Authority (the "Authority");
and
WHEREAS, in accordance with the provisions of Act 381, the Authority has
prepared and approved Brownfield Plan Amendments to include the Bellen Holdings,
LLC, BC Real Estate Holdings, LLC, Bellen Associates, and South Henry Street
Properties, LLC, site Auto Dealerships Project, and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendments to the
City Commission requesting its approval of the Brownfield Plan Amendments and
WHEREAS, prior to approval of the Brownfield Plan Amendments, the
Muskegon City Commission desires to hold a public hearing in connection with
consideration of the Brownfield Plan Amendments as required by Act 381; and
WHEREAS, prior to approval of the Brownfield Plan Amendments, the City
Commission is required to provide notice and a reasonable opportunity to the taxing
jurisdictions levying taxes subject to capture, the Michigan Department of
Environmental Quality (MDEQ), and the Michigan Economic Growth Authority (MEGA)
to express their views and recommendations regarding the Brownfield Plan
Amendments.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Commission hereby acknowledges receipt of the Brownfield
Plan Amendments from the Authority and directs the City Clerk to send a copy of the
proposed Brownfield Plan Amendments to the governing body of each taxing
jurisdiction in the City, MDEQ, and MEGA notifying them of the City Commission's
intention to consider approval of the Brownfield Plan Amendments [after the public
hearing described below].
2. A public hearing is hereby called on the 22nd of April, 2008 at 5:30 p.m.,
prevailing Eastern Time, in the City Hall Commission Chambers to consider adoption by
the City Commission of a resolution approving the Brownfield Plan Amendments.
3. The City Clerk shall cause notice of said public hearing to be published in
the Muskegon Chronicle, a newspaper of general circulation in the City, twice before
the public hearing. The first publication of the notice shall be not less than 20 days or
more than 40 days before the date set for the public hearing. The notice shall be
published as a display advertisement prominent in size.
4. The notice of the hearing shall be in substantially the following form:
CITY OF MUSKEGON
COUNTY OF MUSKEGON, STATE OF MICHIGAN
PUBLIC HEARING ON AN AMENDMENT TO THE MUSKEGON BROWNFIELD
PLAN, AS APPROVED BY THE CITY OF MUSKEGON BROWNFIELD
REDEVELOPMENT AUTHORITY
TO ALL INTERESTED PERSONS IN THE CITY OF MUSKEGON:
PLEASE TAKE NOTICE that the Muskegon City Commission of the City of
Muskegon, Michigan, will hold a public hearing on April 22, 2008, at 5:30 p.m.,
prevailing Eastern Time in the City Hall Commission Chambers located at 933 Terrace
Street, Muskegon, Michigan, to consider the adoption of a resolution approving a
Brownfield Plan Amendment for the City of Muskegon Brownfield Redevelopment
Authority pursuant to Act 381 of the Public Acts of Michigan of 1996, as amended.
The property to which the proposed Brownfield Plan Amendment applies is:
Betten Holdings, LLC, BC Real Estate Holdings, LLC, Betten
Associates, and South Henry Street Properties, LLC
Betten Auto Dealerships Project
2410, 2474, 2477, & 2501 South Henry Street
Muskegon, Michigan 49441
Copies of the proposed Brownfield Plan Amendment are on file at the office of the City
Clerk for inspection during regular business hours.
At the public hearing, all interested persons desiring to address the City
Commission shall be afforded an opportunity to be heard in regard to the approval of
the Brownfield Plan Amendments for the City of Muskegon Brownfield Redevelopment
Authority. All aspects of the Brownfield Plan Amendments will be open for discussion at
the public hearing.
FURTHER INFORMATION may be obtained from the City Clerk.
This notice is given by order of the City Commission of the City of Muskegon,
Michigan.
~ "'-i~\,"""v__,~, ~y__,0l~
Ann Marie Becker, City Clerk
5. All resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded .
AYES: Members
Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter, and Gawron
NAYS: Members
None
RESOLUTION DECLARED ADOPTED.
~ L
., ~ \ "ow\,;:.-' ,jLc...,
Ann Marie Becker, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon, State
of Michigan, at a regular meeting held on April 8, 2008, and that said meeting was
conducted and public notice of said meeting was given pursuant to and in full
compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976,
as amended, and that the minutes of said meeting were kept and will be or have been
made available as required by said Act.
Date: April 8, 2008
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Liquor License Transfer Request
Applebee's, 1825 E. Sherman
SUMMARY OF REQUEST: The Liquor Control Commission is seeking
local recommendation on a request from Applebee's of Michigan, Inc. to
transfer ownership of the 2007 Class C Resort licensed business
located at 1825 E. Sherman to Applebee's Restaurants Mid-Atlantic
LLC.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Muskegon Police Department
Anthony L. Kleibecker
Director of Public Safety
980 Jefferson www. muskegonpolice.com Phone:231-724-6750
Muskegon, Michigan FAX: 231-722-5140
49443-0536
March 19, 2008
To: City Commission through the City Manager
From: L - l~
ony L. Kleibecker, Director of Public Safety
Re: Liquor License Transfer - 1825 E. Sherman Ave.
Transfer of 2007 Class C Resort Licensed Business with Official Permit (Food
The Muskegon Police Depai1ment has received a request from the Michigan Liquor Control Commission
for an investigation from applicant Applebee' s Restaurants Mid-Atlantic, LLC (A Delaware Limited
Liability Company).
Applebee's Restaurants Mid-Atlantic, LLC is requesting to transfer ownership of 2007 Class C Resort
licensed business Issued under MCL436.1531 (4), Non-Transferable, with Official Pe1mit (Food) from
Applebee's of Michigan, Inc. located at 1825 E. Sherman, Muskegon, Ml. 49444.
The Muskegon Police Department finds no reason to deny this request.
ALK/kd
PLEASE COMPLETE ENCLOSED RESOLUTION AND RETURN
TO THE LIQUOR CONTROL COMMISSION AT ABOVE ADDRESS
Request ID #434546
2008-33(i) z - zc., -c, j"7ff4
RESOLUTION
Re_g=-u_l_a_r_ _ _ _ _ _ _ _ meeting of the
At a _ _ _ City Commission
(Regular or Special) (Township Board, City or Village Council)
called to order by Mayor Warmington on April 8, 2008 at __S_:3'--0__ P.M.
The following resolution was offered :
Moved by Commissioner Carter and supported by Commissioner Spataro
That the request for REQUEST TO TRANSFER OWNERSHIP 2007 CLASS C RESORT LICENSED BUSIN ESS,
ISSUED UNDER MCL436.1531(4), NON-TRANSFERABLE, LOCATED AT 1825 E SHERMAN, MUSKEGON
MICHIGAN, 49444, MUSKEGON COUNTY, FROM APPLEBEE'S OF MICHIGAN, INC. TO APPLEBEE' S
RESTAURANTS MID-ATLANTIC LLC (A DELAWARE LIMITED LIABILITY COMPANY)
be considered for Approval
(Approval or Disapproval)
APPROVAL DISAPPROVAL
Yeas: 7 Yeas:
Nays: 0 Nays:
Absent: 0 Absent:
It is the consensus of this legislative body that the application be:
_ _ _ _ _ _ _ _ _R:..:.e.::.c;::..o;c.:mm=e;c.:nc:..:d::..:e::.. ;d;;..__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ for issuance
(Recommended or Not Recommended)
State of Michigan _ __ __,
County of Muskegon
I hereby certify that the foregoing is a true and complete copy of a resolution offered and
adopted by the City Commission at a _ _ _=-:R.::.egu=l=-a=-r=----------
(Township Board , City or Village Council) (Regular or Special)
meeting held on April 8, 2008.
(Date)
(Signe~ ~ ~ ~ \,~\ ~ \.A,\L v,
(Township , City or Village Clerk)
SEAL Ann Marie Becker, City Clerk
933 Terrace, Muskegon, MI 49440
(Mailing address of Township, City or Village)
LC-1305 (Rev. 0812006) The Department of Labor & Economic Growth will not discriminale againsl any individual or group because of race, sex, religion, age,
Authority: MCL 436 1501 national origin, color, marilal status, disability, or political beliefs. If you need help with reading, writing, hearing, elc., unde r the Americans
Completion: Mandatory with Disabilities Acl, you may make your needs known to this agency.
PenaU : No License
Michigan uepartment of Labor & Economic Growth FOR MLCC USE ONLY
MICHIGAN LIQUOR CONTROL COMMISSION (MLCC)
7150 Harris Drive, P.O. Box 30005 Request ID# 434546
Lansing, Michigan 48909-7505
Business ID# 203813
POLICE INVESTIGATION REPORT
[Authorized by MCL 436.1217 and R 436.1105; MAC] .}-2'tv~
Please conduct your investigation as soon as possible, complete all four sections of this report and return the
completed report and fingerprint cards to the MLCC
LICENSEE/APPLICANT NAME, BUSINESS ADDRESS AND LICENSING REQUEST:
APPLEBEE' S RESTAURANTS MID-ATLANTIC LLC (A DELAWARE LIMITED LIABILITY COMPANY)
REQUESTING TO TRANSFER OWNERSHIP 2007 CLASS C RESORT LICENSED BUSINESS, ISSUED UNDER
MCL436. ! 531 (4), NON-TRANSFERABLE, WITH OFFICIAL PERMIT (FOOD), FROM APPLEBEE'S OF MICHIGAN,
INC.LOCATED AT 1825 E SHERMAN, MUSKEGON MICHIGAN, 49444, MUSKEGON COUNTY
I Section 1. APPLICANT INFORMATION I
APPLICANT #1: APPLEBEE'S ENTERPRISES, LLC APPLICANT #2:
(A DELAWARE LIMITED LIABILITY COMPANY)
2711 CENTERVILLE ROAD, SUITE 400
WILMINGTON, DE 19808
CONTACT: CARIN L. STUTZ
/8.P. 302-636-5401)
I DATE FINGERPRINTED: FINGERPRINTS NOT REQUIRED DATE FINGERPRINTED: I
DATE OF BIRTH: DATE OF BIRTH:
Is the applicant a U.S. Citizen: • Yes • No• Is the applicant a U.S. Citizen: • Yes • No•
'Does the applicant have permanent Resident Alien status? 'Does the applicant have permanent Resident Alien status?
D Yes No•• •
Yes D No•
'Does the applicant have a Visa? Enter status: 'Does the applicant have a Visa? Enter status:
I ..Attach the finqerprint card and $30.00 for each card and mail to the Michiqan Liquor Control Commission .. I
ARREST RECORD: • Felony • Misdemeanor ARREST RECORD: • Felony • Misdemeanor
Enter record of all arrests & convictions (attach a signed and dated Enter record of all arrests & convictions (attach a signed and dated
report if more space is needed) report if more space is needed)
I Section 2. INVESTIGATION OF BUSINESS AND ADDRESS TO BE LICENSED I
Does applicant intend to have dancing, entertainment, topless acttv1ty, or extended hours permit?
o •
Yes, complete LC-1636
Are gas pumps on the premises or directly adjacent? o D Yes, explain relationship:
I Section 3. LOCAL AND STATE CODES AND ORDINANCES, AND GENERAL RECOMMENDATIONS
Will the applicant's proposed location meet all appropriate state and local building, plumbing, zoning, fire, sanitation and health laws
and ordinances, if this license is granted? ID,,s No •
!f you are recommending approval subject to certain conditions, list the conditions: (attach a signed and dated report if more space is needed)
I Section 4. RECOMMENDATION
From your investigation:
1. Is this applicant qualified to conduct this business if licensed? ®-
Yes D No
2. Is the proposed location satisfactory for this business? aves • No
3. Should the Commission grant this request? ~es D No
4. If any of the above 3 questions were answered no, state your reasons: {Attach a signed and dated report if more space is needed)
l~L-1~
Signtre (-811eriff OF Chief of Police) Date
MUSKEGON POLICE DEPARTMENT
LC-1800 {Rev. 07/06) The Department of Labor & Economic Growth will not discriminate against any individual or group because of race, sex, religion, age,
Aulhonty: MCL 436.1217 and R 436.1105; MAC national origin, color, mari!al status, disability, or political beliefs. If you need help with reading, writing, hearing, etc., under the Americans
Completion: Mandatory with Disabilities Act, you may make your needs known to this agency.
Penally: No License
Michigan Department of Labor & Economic Growth FOR MLCC USE ONLY
MICHIGAN LIQUOR CONTROL COMMISSION (MLCC)
7150 Harris Drive, P.O. Box 30005 Request ID# 434546
Lansing, Michigan 48909-7505
Business ID# 203813
LAW ENFORCEMENT RECOMMENDATION 2 ·-2 q ,..or;:- 7kft1-
[Authorized by MCL 436.1916, R 436.11 05(2)(d) and R 436.1403]
TO: MUSKEGON POLICE DEPARTMENT
Re: APPLEBEE'S RESTAURANTS MID-ATLANTIC LLC
(A DELAWARE LIMITED LIABILITY COMPANY)
We have received a request from the above licensee for the type of permit indicated below. Please make an investigation
and submit your report and/or recommendation to the offices of the MLCC at the above address. Questions about this
request should be directed to the MLCC Licensing Division at (517) 322-1400.
~ OFFICIAL PERMIT FOR EXTENDED HOURS OF OPERATION FOR: (FOOD)
Weekdays A.M. to A.M./P.M.
Sundays 10:00 A.M. to NOON
D Recommended D Recommended, subject to final inspection D Not Recommended
NOTE: If the applicant is requesting two separate extended hours permits and the permits are for different hours you
must complete the box below. If additional space is needed please use reverse side of this form.
• OFFICIAL PERM IT FOR EXTENDED HOURS OF OPERATION FOR:
Weekdays A.M. to A.M./P.M.
Sundays AM. to A.M./P.M.
D Recommended D Recommended, subject to final inspection • Not Recommended
• DANCE PERMIT
D Recommended 0 Recommended, subject to final inspection 0 Not Recommended
• ENTERTAINMENT PERMIT
D Recommended D Recommended, subject to final inspection • Not Recommended
• TOPLESS ACTIVITY PERMIT
D Recommended D Recommended, subject to final inspection D Not Recommended
f3'-I -5-'-I;;
Law t':nforcement Recommendation (cont'd)
Page 2 z,-2-9-0'3
February 6, 2008
TU1&-
• OUTDOOR SERVICE
D Recommended D Recommended, subject to final inspection D Not Recommended
• PARTICIPATION PERMIT
D Recommended D Recommended, subject to final inspection D Not Recommended
• ADDITIONAL BAR PERMITS
D Recommended D Recommended, subject to final inspection D Not Recommended
• OTHER
D Recommended D Recommended, subject to final inspection D Not Recommended
Signed:
~ /\_ L 1 ~ C,.,..,t.::.-,o::
SignaWre an~ Title '
Muskegon Police Department
j'+M-r:-,.µ, wy L . I <... L c.::- 1 /13 /£ c:_t <.._C: "-
Print Name and Title C..u-, c.:::-,~ a,~ Po'-' ~c
Date: _ _~_-_1_ 9
_-_c..,_!?-
________
jr
LC-1636 (Rev. 08/2006) The Department of Labor & Economic Growth will not discriminate against any individual or group because of race, sex. religion, age,
Authority: MCL 436.1916, R 436.1105(2)(d) and national origin, color, marital status, disability, or political beliefs. If you need help with reading, writing, hearing, etc., under the Americans
R436.1403 with Dlsabilities Act, you may make your needs known lo this agency.
Completion: Mandatory
Penalty: No License and/or Permit
'1/31/sVG
Michigan Department of Labor & Economic Growth
MICHIGAN LIQUOR CONTROL COMMISSION (MLCC) 2 ,2 't --o 'i3'
7150 Harris Drive, P.O. Box 30005
Lansing, Michigan 48909-7505
•17f'!Ur
POLICE INVESTIGATION REQUEST
[Authorized by MCL 436.1201(4)]
February 8, 2008
800Z ~, G tl\J'V\J ·
Muskegon Police Department
Chief of Police
980 Jefferson Avenue, PO Box 536
Muskegon, Ml 49443-0536
Request ID #434546
Applicant: APPLEBEE'S RESTAURANTS MID-ATLANTIC LLC (A DELA WARE LIMITED LIABILITY
COMPANY) REQUESTING TO TRANSFER OWNERSHIP 2007 CLASS C RESORT LICENSED BUSINESS,
ISSUED UNDER MCL436.153 l (4), NON-TRANSFERABLE, WITH OFFICIAL PERMIT (FOOD), FROM
APPLEBEE'S 01-' MICHIGAN, INC. LOCATED AT 1825 E SHERMAN, MUSKEGON MICHIGAN, 49444,
MUSKEGON COUNTY
CONTACT: ATTORNEY SCOTT D. EDWARDS (248-816-3205) & PATRICK HOWE (248-816-3175) (BOTH)
(CARLIN, EDWARDS, BROWN & HOWE, PLLC) 2855 COOLIDGE HIGHWAY, SUITE 203
TROY Ml, 48084)
Please make an investigation of the application. If you do not believe that the applicants are qualified for licensing,
give your reasons in detail. Complete the Police Inspection Report on Liquor License Request, LC-1800, or for
Detroit Police, the Detroit Police Investigation of License Request, LC-1802. If there is not enough room on the
front of the form, you may use the back.
Forward your report, along with fingerprint cards (ifrequested) and $30.00 for each card to the Michigan Liquor Control
Commission.
lfyou have any questions, contact the appropriate unit (On Premises, Off Premises or Manufacturers & Wholesalers) at
(517) 322-1400.
JI"
LC-1972{Rev. 09/05) The Department of Labor & Economic Growth will not discriminate against any individual or group because of race, sex, religion, age,
Authori1y: MCL 436.1201(4) national origin, color, marital status, disability, or political beliefs. If you need help with reading, writing, hearing, etc., under the Americans
Completion: Mandatory with Disabilities Act, you may make your needs known to this agency.
Penalty: No License
Michigan Oepartment of Labor & Economic Growth
FOR MLCC USE ONLY
MICHIGAN LIQUOR CONTROL COMMISSION (MLCC)
7150 Harris Drive, P.O. Box 30005
Request ID# 434546
Lansing, Michigan 48909-7505
Business ID# 203813
LOCAL APPROVAL NOTICE 2..-Z.'1-og-- ~
[Authorized by MCL 436.1501]
February 8, 2008
TO: Muskegon City Council
Clerk
933 Terrace Street, PO Box 536
Muskegon, Ml 49443-0536
APPLICANT: APPLEBEE'S RESTAURANTS MID-ATLANTIC LLC
(A DELAWARE LIMITED LIABILITY COMPANY)
Home Address and Telephone No. or Contact Address and Telephone No:
MEMBER:
APPLEBEE'S ENTERPRISES, LLC (A DELAWARE LIMITED LIABILITY COMPANY)
2711 CENTERVILLE ROAD, SUITE 400, WILMINGTON, DE 19808
(CONTACT CARIN L. STUTZ 302-636-5401)
ATTORNEY SCOTT D. EDWARDS (248-816-3205) & PATRICK HOWE (248-816-3175) (BOTH)
(CARLIN, EDWARDS, BROWN & HOWE, PLLC) 2855 COOLIDGE HIGHWAY, SUITE 203,
TROY Ml, 48084)
The MLCC cannot consider the approval of an application for a new or transfer of an on-premises
license without the approval of the local legislative body pursuant to the provisions of MCL 436.1501
of the Liquor Control Code of 1998. For your information, local legislative body
approval is also required for DANCE, ENTERTAINMENT, DANCE-ENTERTAINMENT AND
TOPLESS ACTIVITY PERMITS AND FOR OFFICIAL PERMITS FOR EXTENDED HOURS FOR
DANCE AND/OR ENTERTAINMENT pursuant to the provisions of MCL 436.1916 of the Liquor
Control Code of 1998.
For your convenience a resolution form is enclosed that includes a description of the licensing
application requiring consideration of the local legislative body. The clerk should complete the
resolution certifying that your decision of approval or disapproval of the application was made at an
official meeting. Please return the completed resolution to the MLCC as soon as possible.
If you have any questions, please contact the On-Premises Section of the Licensing Division at
(517) 636-4634.
jr
J- 7- 0J'
D
LIQUOR LICENSE REVIE\V FORl\ 1
MAR l ti ?.008
Business Name: :1/o
77o. / e ,6 e c: '__s • , ~ .• I a·\Cr
·t 1h, Q( r L -
I , l(f> \ .
AKA Business Name (if applicable): _ _ _ _ _ _ _ _ _ _,_~
_"_1 _ _ __
M;,H I .
() ''U
Operator/Manager's Name.: _ _ _ _ _ _ _ _ _ _,..u.........,.._ _ _t._ 08_ _
I
( /,..; I
Business Address: E - .Shfr/ncz:7 11
I
f1Jus k'c7
e e_, o n ,
I
YJY YY
Reason for Review:
New License D Transfer of Ownership ~ Dance Permit D
Drop/Add Name on License D Transfer Location · •
Drop/Add Stockholder Name D New Entertainment Permit D
Other
--------------------- -----
Deadline fo r receipt of all information:
Public Safety Approved ~ - - - - - - - - - - - - --
Denied D No Action Needed D
Income Tax Approve/D . Owing D Amount:
Treasurer Approved D Owing D Amount:
Zoning Approved D Denied D Pending ZBA •
Clerk's Approved D Owing D Amount:
Fire/Inspections Approved D Denied D Remaining Defects D
J fJ n
Department Signature ~ (_ -
J ~ -! .. 1:L - 0 ~
Please return to the City Clerk's Office
J - 7-or?
LIQUOR LICENSE REVIE\V FOR.1,1
Business Name: 4o o/ j
7
e e c:, '_s
AKA Business Name (if applicable): _ _ _ _ _ _ _ _ _ _ _ _ _ __
Operator/Manager's Name_: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Business Address:
I
illus feC7e...on I, YJYYY >
Reason for Review:
New License D Transfer of Ownership _
{)a Dance Permit D
Drop/Add Name on License D Transfer Location - •
Drop/Add Stockholder Name D New Entertainment Permit D
Other
--------------------------
Deadline for receipt of all information: _ _ _ _ _ _ _ _ _ _ _ _ __
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved~ Owing D Amount:
Treasurer Approved D Owing D Amount:
Zoning Approved D Denied D Pending ZBA •
Clerk's Approved D Owing D Amount:
· Fire/Inspections Appr oved D Denied D Remaining Defects. •
Department Signature__~
~0._~"
A ')
_____. . i. . .; _~
--------------
Please return to the City Clerk's Office
J -7- o<f
LIQUOR LICENSE REVIE\V F'6ffl RECEIVED •
MAR - 7 2008
Business Name: ~/J O /
7
e j e c:, '.s 0 APPROVED POSlEI)
e,n OF MUSKEGON ~
AKA Business Name (if applicable): _ _ _ _ _ _ __ _ _ _ _ _ __
Operator/Manager's Name_: _ _ _ __ _ _ _ _ _ __ _ _ _ _ __
Business Address:
' b' l
YJ YYY
Reason for Review:
New License D Transfer of Ownership ~ Dance Permit D
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Name D New Entertainment Permit D
Other
-------------- -- - - -- -- -- --
Deadline for receipt of all information: _ __ _ _ _ _ __ _ __ __
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved D Owing D Amount:
Treasurer Approved~ Owing D Amount:
Zoning Approved D Denied D Pending ZBA •
Clerk's Approved D Owing D Amount:
Fire/Inspections Approved D Denied D Remaining Defects D
Department Signature_____ A_,.'. . ~.,.o:;;......-
· _ __ cJ_,
:J,_/_
r
0_7.,...~_
J
!)_8'_ _ __ __ _
Please return to the City Clerk's Office
3-7-oo'
LIQUOR LICENSE REVIE\V FORL,1
Business Name: 4/2 / t6 e e c:, '....s
AKA Business Name (if applicable): _ _ _ _ _ _ _ _ _ _ _ _ _ __
Operator/Manager's Name_: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Business Address:
IJJus f c7e tz_ o /J 7, 7ZYYY
Reason for Review:
New License D Transfer of Ownership ~ Dance Permit D
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Name D New Entertainment Permit D
Other
--------------------------
Deadline for receipt of all information: _ _ _ _ _ _ _ _ _ _ _ _ __
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved D Owing D Amount:
Treasurer Approved D Owing D Amount:
Zoning Approved p( Denied D Pending ZBA 0
Clerk's Approved D Owing D Amount:
Fire/Inspections Approved D Denied D Remaining Defects D
Department Signatur{ A
//;17~&~--
, . ~/ --------
Please return to the City Clerk's Office
J-7-0 J'
LIQUOR LICENSE REVIE\V FORJ,1
Business Name: 4rJ 7
o / e. j e c: '...s
AKA Business Name (if applicable): _ _ __ _ _ _ _ _ _ _ __ _ _
Operator/Manager's Name_: _ _ _ __ _ _ _ _ _ _ _ _ _ __ __
Business Address:
C7 J
7JYYY
Reason for Review:
New License D Transfer of Ownership ~ Dance Permit D
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Name D New Entertainment Permit D
Other
----------- ------------- --
Deadline for receipt of all information: _ _ _ _ _ _ _ _ _ _ __ _ _
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved D Owing D Amount:
Treasurer Approved D Owing D Amount:
Zoning Approved D Denied D Pending ZBA •
Clerk's Approved ~ i n g D Amount:
Fire/Inspections Approved Denied D Remaining Defects D
Department Signatur .._ _..__:1-+--1---- ~...::::;..--~ , - -- - ---
Please return to the City Clerk's 0
3 - 7-orY
LIQUOR LICENSE REVIE\V FOR1,1
Business Name: llt 7O
/ e /, e e '_,
AKA Business Name (if applicable): _ _ _ _ _ _ _ _ _ _ _ _ _ __
Operator/Manager's Name_: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Business Address:
7ZY YY
Reason for Review:
New License D Transfer of Ownership ~ Dance Permit D
Drop/Add Name on License D Transfer Location ·•
Drop/Add Stockholder Name D New Entertainment Permit D
Other
-------- ------------------
Deadline for receipt of all information: _ _ __ _ __ __ _ _ _ __
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved D Owing D Amount:
Treasurer Approved D Owing D Amount:
Zoning Approved D Denied D Pending ZBA •
Clerk's Approved D Owing D Amount:
Fire/Inspections Approved~ Denied D Remaining Defects.D
Department Signature_..........,...,,,_~;.._~- - - ~ -- - - - - - - - -
Please return to the City Clerk's Office
Affirmative Action
(23 I )n!.6703
FAX (23I)722.J2 1-l
, \SS ~SSOI'
(231 )72-1•6708
FAX (231 )726·5181
Cemetery
(2.3 1)72-1·6783
FAX (231 )726.56 17
City Mm1ager
West Michigan's Shoreline City
www.shorellneclty.com
(23 1)724•6724
FAX (231 )722• 1214
Civil Service
(231 )724·67 16
FAX (231 )724•4405
C lerk
(23 1)724•6705
FAX (231 )724•4178 April 11, 2008
Comm. & Neigh.
Services
(23 1)724•67 17
FAX (231)726·2501
Liquor Control Commission
Engineering
(23 1)724•6707 7150 Harris
FAX (231 )727•6904
PO Box 30005
Finance Lansing, MI 48909-7505
(23 1)724•67 13
FAX (231 )724.6768
REF: Req ID #434546
Fire Department
(23 1)724•6792 Applebee' s Restaurants Mid-Atlantic LLC
FAX (23 1)724·6985
1825 E. Sherman Avenue
Income Tax Muskegon, MI 49444
(231 )724•6770
FAX (23 1)724.6768
To Whom It May Concern:
Info. Technology
(23 1)724•4126
FAX (23 1)722·4301 Enclosed is Form LC-1800, LC-1636, and LC-1305 for Applebee's Restaurants.
Inspection Services This was recommended for approval by the City Commission at their April 8,
(231 )724•6715
FAX (231 )728.4371
2008, City Commission Meeting.
Leisure Services Please do not hesiti:ttP. tn r.:.i l l m p <it (')'l l'\ '1'lA C'7f\ C :c . . - . . '
(231 )724•6704
FAX (231 )724· 1196 .
SENDER: COMPLETE -T~l~,SE . U.S. Postal Service™
Sincerely, MAILm RECEIPT
;;g CERTIFIED
Mayor's Office
(23 1)724•670 I • Complete items 1, 2, and 3. Alsc (Domestic Mail Only; No Insurance Coverage P r ovlded)
FAX (231)722• 1214 item 4 if Restricted Delivery is dt Lf1
• Print your name and address on cO For delivery Information visit our website at www,usp -.com1>
Planning/Zoo ing so that we can return the card tc CJ i • •
• Attach this card to the back of tt
I
(23 1)724•6702 .::t'
FAX (231 )724·6790 Linda Potter or on the front If space permits.
_ _ _ _ _ __ __ _ _ _
rn
cO Postage 1-$_ _ _ _ _
Po lice Departme nt Deputy Clerk 1. Article Addressed to: •' \'1-1. 1
(23 1)724•6750
FAX (231 )722·5140
~ ~ CertlOed Foo 1-------,
Public Works
enc. CJ Return Receipt Fee
CJ (Endorsement Required) 1-------,
Liquor Control Comr CJ Restricted Delivery Foo
(231)724•4100
FAX (231 )722•4188 715 O Harris ~ (Endorsement Required) 1--------i
Treasurer
PO Box 30005 • TotalPostage&Fees L.:$:!:.,.....----~
(23 1)724•6720
FAX (231 )724·6768 Lansing, MI 48909-7 g .····················?.....( ..~.........({r.~
I"- -Sfroef. Apr. No.; )..
··•········
- -···················
Water Billing or PO 8-0K No. •••••••••••••••••••••••• •
(23 1)724•6718 ciry.·siiiie;z,p;.1·····
FAX (231)724·6768 2. Article Number
(Transfer from service label)
Water Filtration PS Form 381 1, February 2004
(23 1)724 •4106
FAX (23 1)755·5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
http://www.shorelinecity.com
Date: AprilB,2008
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Request to Fly the Norwegian Flag
SUMMARY OF REQUEST: The Sons of Norway is requesting
th
permission to fly the Norwegian Flag at City Hall on Friday, May 16 to
Monday, May 19th to celebrate Norway's Constitution Day.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
@,nus nf Nnrwau
Sognefjord Lodge No. 523
420 Harvey Street, Muskegon, Michigan 49442, (231) 777-1451
Muskegon City Council
I am requesting permission to have the Norwegian flag flown at city hall on Saturday
May 17. May 17 (Syttende Mai) is Norway's Constitution Day (independence day). If
the Saturday date is not possible, would Friday May 16 be OK?. The Sons of Norway
lodge will supply the flag.
Ifthere are any questions you can contact me at 744-9101. Thank you very much.
CL:!:--1}~
Sognefjord LodgeVice President.
Commission Meeting Date: April 8, 2008
Date: March 31, 2008
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Departm~nt
N1..vJ ~V..>~f\J.J:i'
RE: -Public Hearin• lease with Option to Purchase
Pilot Program
SUMMARY OF REQUEST: To have the Commission approve the pilot
program developed by the Community and Neighborhood Services office for a
Lease with Option to Purchase Pilot Program for the houses owned by CNS.
The lessee will have a three-year period (36 months) to obtain a mortgage. If
the lessee is able to obtain a mortgage after the first year, the purchaser will
be able to receive a nine percent decrease in the purchase price. If it takes
two years to qualify for a mortgage, the property will be sold at a five percent
decrease from the original asking price. If it takes the three-year period for the
lessee to obtain the mortgage, the sale price would be the original price. The
lessee would be responsible for all the utilities and upkeep of the property.
Because of the current economic environment, as it relates to housing, the
department feels we can assist the market by implementing this program.
Two homes are eligible for this pilot program: 435 Monroe and 867 Williams.
FUNDING IMPACT: This will eliminate some of the overhead costs the City
has because of the length of time these houses have been on the market.
Costs include utilities, alarm system, grass cutting, snow removal, etc.
BUDGET ACTION REQUIRED: None at this time
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The program has been reviewed by the
Citizen's District Council.
CITY OF MUSKEGON
LEASE WITH OPTION TO PURCHASE
PILOT PROGRAM
The City of Muskegon Community and Neighborhood Services department has developed
a pilot program to offer the opportunity to lease a designated rehabbed house from the City
of Muskegon with an option to purchase.
The lessee will have a three-year period to obtain a mortgage. If the lessee is able to
receive a mortgage within the first year, they will receive approximately a nine percent
decrease in the purchase price. For example, if the original asking price is $69,000, then
the purchase price would be $62,500. If it took the lessee two years to qualify for the
mortgage, the buyer would receive a five percent decrease in cost. In that same example,
the purchase price would be $65,500. If it takes the entire three-year period to get the
mortgage, then the buyer would be required to get a mortgage for the original price. In the
same example that would be $69,000.
The lessee would be responsible for all the utilities and upkeep of the property. Our staff
would inspect the structure twice a year.
Because of the current economic environment as it relates to housing, the department
feels we can jump start the market by implementing this program. We plan on charging
between $700 - &750 per month. The annual revenue brought in would be between $8,400
- $9,000.
Before the potential lessee will be eligible for the program, they would be required to meet
with the bank and go over their current credit situation. This will make them totally
knowledgeable of what they need to do to get a mortgage and how much time it should
take to meet the goal. It is hoped that the lessee would be able to obtain the mortgage
within the first two-year period.
In order to be eligible, first you must be refused a mortgage by a local bank. Second, we
would require that the bank develop a plan for the lessee to develop a strategy on how the
lessee can set themselves up in the position to obtain a mortgage.
This program will start with two houses eligible for the program: 827 William Street and
435 Monroe Avenue. Both structures are anticipated to bring in approximately $17,000 per
year, which should cover the insurance cost for these two homes and any other
unexpected expenses. The house at 451 East Isabella Avenue may be added later.
The department sees this pilot project as being positive for several reasons. First, it will
eliminate significant costs that we currently have at the homes; items like utilities, security
alarm, snow removal, grass cutting, etc. Second, by having someone in the house, it cuts
down on the staff time used to visit the properties. Third, the occupied structures are an
excellent mechanism to advertise our work. Lastly, the revenues brought in through the
lease will be needed Program Income and also an excellent way of getting long time
homebuyers from a market that is extremely fractured at this time.
Page 1 of 2
At the end of the three-year period and the lessee still does not have mortgage approval,
we would like to extend the period for an additional six months. If, after that extension the
lessee still does not have a mortgage, we will have to ask the lessee to vacate the
premises within thirty days. If they do not leave within thirty days, then we will have to start
eviction proceedings. It is our hope we will not have to do this as we are looking for people
who want to buy our homes and become a part of the community. Of course all this would
be covered in a very tight lease agreement so there will be no surprises to the lessee.
We would like to implement this program as soon as possible after it has been reviewed by
the Citizen's District Council and approved by the City Commission, if necessary. A copy
of this proposal was also sent to our HUD rep, Ellen Chung, for review.
Page 2 of 2
Commission Meeting Date: April 9, 2008
Date: March 31, 2008
To: Honorable Mayor and City Commission
From: Community and Neighborhood Services
Department
RE: Approval of the 2008-2009 Action Plan
SUMMARY OF REQUEST: To approve the 2008-2009 Action Plan for
the City of Muskegon Community Development Block Grant/HOME
Partnership Program activity. If the Action Plan is approved, the
Community and Neighborhood Services office will continue the
comment period of the Action Plan as amended, if needed, until April 17,
2008.
On or after April 17, 2008, the Community and Neighborhood Services
office will deliver the Action Plan to the United States Department of
Housing and Urban Development as required in order to request the
Release of Funds for the 2008-2009 fiscal year.
FINANCIAL IMPACT: Action Plan establishes the 2008-2009
Community Development and HOME budgets.
BUDGET ACTION REQUIRED: None at this time. Budget established
by Action Plan.
STAFF RECOMMENDATION: To approve the Action Plan as is or as
amended.
COMMITTEE RECOMMENDATION: The Commission received both
the Citizen District Council and the Administration recommendations.
THIRD PROGRAM YEAR ACTION PLAN
GENERAL
EXECUTIVE SUMMARY
The Executive Summary is required . Include the objectives and outcomes identified in
the plan and an evaluation of past performance.
The 2008 - 2009 fiscal year will be the fourth year of the City of Muskegon's activity
under the approved 2005 - 2010 Consolidated Plan. The City is attempting to continue
what we consider our program of multi-faceted community revitalization efforts. This
targets five specific areas: new construction, housing rehabilitation, infrastructure
replacement, blight flight and elimination and public service support.
Muskegon Entitlement Funding (01 -07)
$1,600,000 ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,
$ 1,200,000
$1,000,000
$800,000
$600,000
$400,000 ·
$200,000
$0
2001 2002 2003 2004 2005 2006 2007
• CDBG $1,383,000 $1,376,000 $ 1,217,000 $1,212,000 $1,137,297 $1,020,145 $1,018,704
• HOME $571,000 $571 ,000 $340,1 11 $337,937 $320,839 $301,767 $298,923
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The City has experienced a significant amount of success and satisfaction in its
Community Development Block Grand and HOME program. In addition, during this
current fiscal year, the City was awarded a Lead Reduction grant that will assist the
community in eliminating blight from the community.
The City has experienced many successes during the last few years, it as relates to its
CDBG and HOME activities. However, the City, like most other older core communities,
is wrestling with a continuous decrease in funding. In addition to the decreasing
entitlement funding, the City is also battling with the same issues that are attempting to
stagnate many other communities; not just in Michigan but throughout the entire
country. Some of those issues are an increasing, unemployed population, a
'mushrooming' number of foreclosed properties, not just in the low/moderate income
areas, but throughout the City and county. Other pertinent issues are an abandonment
of housing, severe infrastructure improvement needs and an overall feeling of
uncertainty by a significant portion of the community.
GENERAL QUESTIONS
1. Describe the geographic areas of the jurisdiction (including areas of low income
families and/or racial/minority concentration) in which assistance will be directed
during the nest year. Where appropriate, the jurisdiction should estimate the
percentage of funds the jurisdiction plans to dedicate to target areas.
Since 2000, the majority of the City has been declared a low/moderate income
eligible area, roughly 11 square miles of a City that is 18 square miles in total
dimension. The City is classified as a low/moderate income area. In other
words, these areas within the City of Muskegon have at least 51% low/moderate
income residents living in the specific neighborhoods of the City (see maps
below).
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G~Bgoo,Nrican ~ican Population
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MUSKEGON
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MUSKEGON ~GHTSifOOl!S 5.0%to10.0%
10.0%to 25.!J>/o
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\ 25.0% to 50.0%
I I 50,IJ>/oto 100.0%
() .6 1.2 1.8
Mies
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2. Describe the basis for allocating investments geographically within the
jurisdiction (or within the EMSA for HOPWA) (91.215(a)(1 )) during the next year
and the rational for assigning the priorities.
a. The distribution of funding in the City of Muskegon is not targeted to a
particular area or neighborhood. The funding is allocated on an availability basis
and need.
b. The anticipated CDBG funding for the 2008 - 2009 year is the following:
CDBG PROJECTS/ACTIVITIES - 2008
2008 - 2009 ACTIVITIES - By RANKING
REHABILITATION - HOUSING $ 432,500 42%
Emergency Repair
Vinyl Siding
Service Delivery
BOND REPAYMENT $ 128,169 13%
Fire Station
PUBLIC FACILITIES-ASSESSMENTS $ 53,500 5%
Street
Commercial Facade Improvement
GENERAL ADMINISTRATION $ 172,500 17%
General Administration
Affirmative Action
PUBLIC SERVICES $ 151,600 15%
Recreation Programs
Senior Transit
CBO Grants Program
CODE ENFORCEMENT - HOUSING $ 83,500 8%
Code Inspections
Residential Clearance
TOTAL $1,021,769
3. Describe actions that will take place during the next year to address obstacles to
meeting underserved needs.
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The City will continue to allocate funding to the underserved population of the
City through several different mechanisms. The first mechanism is the programs
that are offered inside the Community and Neighborhood Services office, which
include the Emergency Repair and Vinyl Siding programs. Both of these
activities address low/moderate income housing. The second mechanism or
component is the funding allocated to other City of Muskegon departments that
target the underserved population of the community. The departments are
Leisure Services, which offers recreational activities to low/moderate income
youngsters and their families; the Department of Public Works, which offers a
Senior Transit Program for low income seniors; Inspection Department, which
assists neighborhoods with the demolition and securing of blighted and
accessible structures; and the Engineering Department, in collaboration with the
CNS department offers special Assessment relief for low income residents who
are having street reconstruction done near their home and are being assessed
for their portion.
Lastly, the City of Muskegon allocates funding lo community-based
organizations, when funding is available, to address many of the obstacles that
the underserved in the community are in conflict with, many in the same areas
that were listed in the City's 2005 - 2010 Consolidated Plan. Those areas are
health awareness, senior services, legal assistance, employment assistance and
youth services.
4. Identify the federal, state and local resources expected to be made available to
address the needs identified in the plan. Federal resources should include
Section 8 funds made available to the jurisdiction, Low-Income Housing Tax
Credits, and competitive McKinney-Vento Homeless Assistance Act funds
expected to be available to address priority needs and specific objectives
identified in the strategic Plan.
CDBG 2008 - 2009 funding is $984,207 plus Expected Program Income of
$40,000, for a total of $1,024,207. The HOME 2008 - 2009 funding is $290,049
plus Expected Program Income of $100,000, for a total of $390,049. Other
expected federal funding is WEMET for $36,825; bullet Proof Vest for $8,893;
Lead Based Paint elimination for $666,690*; Emergency Shelter Funding for
$60,000.
* This is a three-year grant.
The City's Community and Neighborhood Services office is the Lead Office for
administering the 2005 - 2010 Consolidated Plan. During the development of
the Consolidated Plan, surveys were distributed to community agencies and
meetings were help to obtain information as well as two small town hall meetings
were held with residents.
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The City of Muskegon will continue to use the same process to coordinate
activities with other agencies and organizations as well as get input from the
public.
MANAGING THE PROCESS
1. Identify the lead agency, entity, and agencies responsible for administering
programs covered by the consolidated plan.
The City of Muskegon's Community and Neighborhood Services is the
administering entity of the City of Muskegon's CDBG/HOME program and, as of
November 1, 2007, the City's Healthy Homes Lead Abatement Grant.
2. Identify the significant aspects of the process by which the plan was developed,
and the agencies, groups, organizations, and others who participated in the
process.
The development of the initial plan consisted of town hall meetings, surveys,
neighborhood meetings and demographic research.
3. Describe actions that will take place during the next year to enhance coordination
between public and private housing, health, and social service agencies.
The City of Muskegon Community and Neighborhood Services office has
representatives on several different coalitions within the county. Those coalitions
include:
a. Continuum of Care
b. Call2-1-1
c. Housing Affordability Committee
d. Main Street Program Economic Restructure Committee
e. West Michigan Sustainability Committee
f. 21 Century
g. Operation R & R
It is the goal of the City to gather information and to coordinate services in
juxtaposition with community needs.
CITIZEN PARTICIPATION
1, Provide a summary of the citizen participation process.
The City of Muskegon citizen participation process begins in November of each
year, when the CNS department begins soliciting proposals for activities for the
next fiscal year. During the first week of January, the proposals are qualified and
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during late January and February, the proposals are reviewed by the Citizen's
District Council. This is a volunteer board made up of local citizens who
represent different sections of the City. In March, there is a public hearing to
gather comments from the public concerning the proposed activities for the
upcoming fiscal year. In August, the CNS office holds a public hearing to discuss
the activities and accomplishments of the past fiscal year, which ended May 31.
2. Provide a summary of citizen comments or views on the plan.
Need Summary.
3. Provide a summary of efforts made to broaden public participation in the
development of the consolidated plan, including outreach to minorities and non-
English speaking persons, as well as persons with disabilities.
The City of Muskegon attempts to outreach to the minority community through
several media outlets which include the local radio, local newspapers and
through different on-site workshops, open houses, housing and community fairs,
etc.
4. Provide a written explanation of comments not accepted and the reasons why
these comments were not accepted.
There were no comments that were not accepted.
INSTITUTIONAL STRUCTURE
1. Describe actions that will take place during the next year to develop institutional
structure.
The CNS office is continuing to develop its institutional structure by reviewing its
policies and procedures and revising them when needed and updating them in
order to assure quality service to the public and consistency in delivery of
services.
MONITORING
1. Describe actions that will take place during the next year to monitor its housing
and community development projects and ensure long-term compliance with
program requirements and comprehensive planning requirements.
All subrecipients are required to submit quarterly reports throughout the fiscal
year. If a serious occurrence is discovered, by reviewing the quarterly report,
then a telephone call is made immediately to the subrecipient to discuss the
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issue. If the issue/s cannot be corrected through a telephone call, a special
monitoring visit will be scheduled with the subrecipient to 'clear' the issue as
promptly as possible. If no issues arise during the fiscal year, a monitoring visit
is scheduled in April of each year for all subrecipients.
LEAD-BASED PAINT
1. Describe the actions that will take place during the next year to evaluate and
reduce the number of housing units containing lead-based paint hazards in order
to increase the inventory of lead-safe housing available to extremely low-income,
low-income and moderate-income families, and how the plan for the reduction of
lead-based hazards is related to the extent of lead poisoning and hazards.
In October 2007, it was announced that the City of Muskegon was the recipient
of a Safe Healthy Homes grant from the U.S. Department of Housing and urban
Development. Through the City's Lead S.A.F.E (Support Abatement Eamily
Education) program, the city anticipates completing 30 units for abatement of
lead, five (5) of the units will be vacant city-owned structures, 15 units will be
rental units and 1O will be owner-occupied structures.
HOUSING
SPECIFIC HOUSING OBJECTIVES
1. Describe the priorities and specific objectives the jurisdiction hopes to achieve
during the next year.
Objectives and Goals
Objectives 1: New construction - To either develop alone or in partnership
with Community Housing Development Organizations, members of the financial
community or private developers new single family affordable housing.
Goal: Ten new single family houses completed by May 31, 2010.
Objective 2: Total Rehabilitation of previously vacant, blighted single-family
housing - To either total rehabilitate alone or in partnership with Community
Housing Development Organizations, other social agencies and or a member or
members of the financial community.
Goal: Ten totally rehabilitated single family homes by May 31, 2010.
Objective 3: Emergency or Vinyl Siding Assistance - To assist eligible City of
Muskegon residents with emergency housing repairs and/or vinyl siding
installation.
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Goal: 250 houses assisted with either emergency repair and or vinyl siding (150
emergency repairs/100 vinyl siding by May 31, 201 0)
Objective 4: Rehabilitation of Rental Units - To assist rental units within the city
by rehabilitating rental housing in compliance with housing quality standards.
Goals: 16 rehabilitated rental units by May 31 , 2010.
Objectives 5: To use the City's available resources to eliminate blight in the
community. The City would allocate several different departments resources to
eliminate blight in the community.
Goals: To demolish 20 dangerous structures, remove rubbish and blight from
250 sites throughout the city and remove 50 blight-creating inoperable
automobiles from throughout the city.
Objective 6: To assist and promote public service community in attacking the
social ills of the community in a plethora of areas.
Goal: To assist 10,000 persons through the public service community by May
31, 2010.
Objective 7: To allocate available funding to replace and improve the city's
infrastructure.
Goal: To upgrade community infrastructure as required.
Objective 8: To use available funding to improve the city's overall economic
status, by creating a physical infrastructure to attract new businesses and by
creating a network to promote economic development.
Goal: To complete the redevelopment of the city's downtown area and to attract
400 new jobs by May 31, 2010.
2. Describe how Federal, State, and local public and private sector resources that
are reasonably expected to be available will be used to address identified needs
for the period covered by this Action Plan.
The majority of the expected funding will be directed in a variety of ways to attack
the issues of serious concern to the Muskegon community. The main areas that
will be targeted are areas that are in correlation with the established objectives
created by the assemblage of the 2005 - 2010 Consolidated Plan. The main
areas will be housing and housing maintenance, senior citizen services,
education related needs, health related needs, crime prevention and youth
services.
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NEEDS OF PUBLIC HOUSING
1. Describe the manner in which the plan of the jurisdiction will help address the
needs of the public housing and activities it will undertake during the next year to
encourage public housing residents to become more involved in management
and participate in homeownership.
The Muskegon Public Housing Agency is not on HUD's current 'Troubled' list.
2. If the public housing agency is designated as "troubled" by HUD or otherwise is
performing poorly, the jurisdiction shall describe the manner in which it will
provide financial or other assistance in improving its operations to remove such
designation during the year.
BARRIERS TO AFFORDABLE HOUSING
1. Describe the actions that will take place during the next year to remove barriers
to affordable housing.
The CNS office will continue to offer new housing and totally rehabilitated
housing ay significantly reduced prices. The department will also work with
several non-profits in the community to assist citizens in jeopardy of foreclosure.
In addition, as long as funding is available, we will assist low/medium income
residents with expensive housing repairs.
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