City Commission Packet Archive 07-24-2007

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Date:     July 24, 2007
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Becker, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes for the July 9th
Commission Worksession, and the July 1Qth Regular Commission
Meeting.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
      CITY OF MUSKEGON
        CITY COMMISSION MEETING
                            JULY 24, 2007
     CITY COMMISSION CHAMBERS@ 5:30 P.M.
                                    MINUTES

   The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, July 24, 2007.
   Mayor Warmington opened the meeting with a prayer from Vice Mayor
Stephen Gawron 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,
Commissioner Kevin Davis, Clara Shepherd, Lawrence Spataro, Sue Wierenga,
and Chris Carter, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Becker.
2007-60 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the July 9th Commission
Worksession, and the July l oth Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      C. FIRST READING:      Amendment to the Zoning Ordinance -               Clarify
         "Horizontal Plane". PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2331 (Landscaping, Fencing,
Walls, Screens, and Lighting, #20, d) of Article XXIII (General Provisions) clarifying
the "horizontal plane" of a light fixture.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:      Staff recommends amendment of the Zoning
Ordinance to amend the language regarding horizontal plane.
COMMITTEE RECOMMENDATION:              The Planning Commission recommended
approval of the request at their July l 2th meeting. The vote was unanimous with
T. Harryman and B. Smith absent.
       F. Urban Renewal Plan Project R-134.      COMMUNITY & NEIGHBORHOOD
          SERVICES
SUMMARY OF REQUEST: To request Commission to instruct Wilmern Griffin, City of
Muskegon Community and Neighborhood Services Director, to sign the affidavit
that to the best of his knowledge the U.S. Department of Housing and Urban
Renewal has signed off on the Urban Renewal Plan Project R-134. Therefore, the
redevelopment of the downtown site can continue without any title issues.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
       G. Lead Based Paint Abatement at 218 Catherine.             COMMUNITY &
          NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Specialty Builders of 2434
Annette, Muskegon, Michigan, for the lead base paint abatement of the city-
owned home at 218 Catherine for the cost of $21,750.
The City received two additional bids:
•   DeRose Builders, of 7786 Wiczer Drive, Whitehall, Michigan, for $24,550
•   Statewide Abatement of 1720 Creston Avenue, Muskegon, Michigan for
    $27,800
After the lead base paint abatement is complete the structure will be totally
rehabilitated and then sold to a qualified low to moderate-income homebuyer.
FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2007-2008
HOME budget.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve Community and Neighborhood Services
office to develop a contract with Specialty Builders of Muskegon, and direct the
Mayor and Clerk to sign the contract.
       H. Approval of Contractor for Rehabilitation of House at 218 Catherine.
          COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with J2 Development, 109
West Laketon, Muskegon, Michigan, for the completion of the rehabilitation to
be located at 218 Catherine, for the cost of $52,511.
After the total rehabilitation is completed the home will be sold to a qualified
first-time homebuyer, continuing the City's aggressive neighborhood
revitalization efforts in the Angell neighborhood area under the Operation: "A
Place you call Home".
The City received five additional bids:
•   DH Construction of 3680 Ryerson, Twin Lake, Michigan, for $54,003
•   Lewis Johnson of 16976 Bonita Court, Grand Haven, Michgan, for $58,800
•   Specialty Builders 2434 Annette Avenue, Muskegon, Michigan, for $63,207
•   Obenauf DePender Construction LLC of 4471 Thompkins Trail, Muskegon,
    Michigan, for $71 ,220
•   DeRose Builders of 7786 Wiczer Drive, Whitehall, Michigan, for $78,552
FINANCIAL IMPACT: The funding for the project will be taken from the City's
2007-2008 HOME funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve Community and Neighborhood Services
office to develop a contract with J2 Development, l 09 W. Laketon, and direct
the Mayor and Clerk to sign the contract.
       I.   Approval of Contractor for Construction of new House at 539 Orchard.
            COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST:        To approve the contract with Murphy Brothers
Construction, 2519 McArthur, Muskegon, Michigan for the construction of the
new home to be located at 539 Orchard for the cost of $110,994. After the
construction is completed, the new home will be sold to a qualified first-time
homebuyer continuing the City's aggressive neighborhood revitalization efforts
in the Angell Neighborhood under the Operation "Community Uprising".
The City received six other bids:
DeRose Builder, 7786 Wiczer Drive, Whitehall, Ml         $115,318.00
Beattie Brothers Builder, 2786 Holton, Whitehall, Ml     $120,222.17
Specialty Builders, 2434 Annette, Muskegon Ml            $131,043.65
Holden Construction, 601 Amity, Muskegon, Ml             $135,663.00
Lakeshore Construction, 8253 S. 116 th , Rothbury, Ml    $139,250.00
Rich Construction, 28 E. Main, Fremont, Ml               $137,674.09
FINANCIAL IMPACT: The funding for the project will be taken from the City's
2007-2008 HOME funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve Community and Neighborhood Services
office to develop a contact with Murphy Brothers Construction and direct the
Mayor and Clerk to sign the contract.
      K. Budgeted Meter Reading Equipment Replacement. PUBLIC WORKS
SUMMARY OF REQUEST: Approval to purchase two SSI AR 5000 Solid State
Interrogators - Hand Held Meter Reading Units. Currently the City owns four
hand held meter reading units. Two meter reading units are 14 years old and
two units were replaced last year. This proposal is intended to replace the two
14 year old units.
FINANCIAL IMPACT: Total cost $9,200.
BUDGET ACTION REQUIRED: None, included in 2007 Budget.
STAFF RECOMMENDATION: To approve purchase from Etna Supply.
      N. Request for an       Encroachment    Agreement     -    Lorin   Industries.
         ENGINEERING
SUMMARY OF REQUEST: Lorin Industries has filed the enclosed encroachment
agreement form to install three monitoring wells in the public right of way of
Keating A venue.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the encroachment agreement subject
to the supplemental conditions and compliance with the necessary insurance
requirements.
      O. Request for     an   Encroachment     Agreement        on   Third   Street.
         ENGINEERING
SUMMARY OF REQUEST: Muskegon Main Street has requested your permission to
place three open bottom planters along Third Street. The planters will be filled
with grade 6A gravel topped with landscape fabric, soil, and perennial flowers.
Muskegon Main Street and the businesses along the Third Street corridor will
jointly maintain the planters.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the encroachment agreement with the
supplemental conditions.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
Consent Agenda as presented minus items B, D, E, J, L, and M.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
           and Davis
            Nays: None
MOTION PASSES
2007-61 ITEMS REMOVED FROM THE CONSENT AGENDA:
      B. Approval of a Neighborhood Enterprise Zone Certificate. PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Kevin Eden to rehabilitate a home in
the Nelson neighborhood at 372 W. Muskegon A venue. The home is located in
a Neighborhood Enterprise Zone. The application states that the estimated cost
for rehabilitation will be $46,400. The addition of a new foundation (complete
basement), new front porch with steps, new sidewalks (from the front and side
doors to the sidewalk at the street), new rear porch steps, reconstruction of front
porch brick columns and stone work, new concrete parking slab, and a new
roof for the home. The applicant has met local and state requirements for the
issuance of the NEZ certificate. Approval or denial by the City Commission is
required within 60 days of the application date and must be forwarded to the
State Tax Commission.
FINANCIAL IMPACT: Taxation will be 50% of the State average for the next 11
years.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve issuance of the NEZ certificate.
Motion by Commissioner Davis, second by Commissioner Shepherd to approve
the Neighborhood Enterprise Zone for 372 W. Muskegon Avenue.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
           Wierengo
            Nays: None
MOTION PASSES
      D. FIRST READING: Rezoning Request for Property Located at 1024 Sophia
         Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 1024 Sophia
Street, from R-1, One Family Residential District to B-2, Convenience and
Comparison Business District.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their July 12 th meeting. The vote was unanimous, with
T. Harryman and B. Smith absent.
Motion by Commissioner Shepherd, second by Commissioner Spataro to
approve the rezoning request for property located at 1024 Sophia Street.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
           and Spataro
             Nays: None
MOTION PASSES
      E. Water Plant Reliability Study. WATER FILTRATION
SUMMARY OF REQUEST: To enter into contract with the engineering firm of
Fishbeck, Thompson, Carr & Huber for performance of the Water Filtration Plant
Reliability Study.
FINANCIAL IMPACT: The professional proposal cost is $46,238.
BUDGET ACTION REQUIRED: The study cost is to be paid by the capitol
improvements section of the water fund.
STAFF RECOMMENDATION: Staff recommends the Mayor and City Commission
enter into contract with Fishbeck, Thompson, Carr & Huber for performance of
the Water Filtration Plant Reliability Study at a cost of $46,238.
Motion by Commissioner Davis, second by Commissioner Carter to approve the
water plant reliability study contract with Fishbeck, Thompson, Carr & Huber.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
           and Gawron
            Nays: None
MOTION PASSES
      J. Well Installation. CEMETERY
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Brass-
Mar Water Wells Inc. out of 13427 Fruit Ridge, Kent City, since they were the
lowest responsible bidder with a bid price of $25,043.
FINANCIAL IMPACT: Cost of drill/installing one well of $25,043.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with Brass-
Mar Water Wells Inc.
Motion by Commissioner Davis, second by Vice Mayor Gawron to approve the
agreement with Brass-Mar Water Wells for the well installation.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Carter
            Nays: None
MOTION PASSES
      L. Service Agreement with Muskegon Heights. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize the Mayor and Clerk to sign the agreement
with Muskegon Heights to maintain their fleet.
FINANCIAL IMPACT: Potential revenue of $20,000 to $30,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the service agreement with Muskegon
Heights and authorize the Mayor and Clerk to sign the agreement.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the service agreement with Muskegon Heights.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
           Warmington
            Nays: None
MOTION PASSES
      M. Transfer Ownership of Sanitary Sewer. PUBLIC WORKS
SUMMARY OF REQUEST: For many years the City of Muskegon has owned and
maintained a sanitary sewer that is a collection sewer for three cities. This sewer
line was most likely overlooked when local lines were turned over to the County
of Muskegon during the original Wastewater Project. This line is used by both the
City of Norton Shores and the City of Roosevelt Park and no interagency
agreement for joint maintenance was ever executed.
FINANCIAL IMPACT: The potential of future maintenance expense will now be
shared by all users rather than just the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Recommend that the City of Muskegon transfer
ownership of this collection sanitary sewer to the Muskegon County Wastewater
System.
Motion by Commissioner Davis, second by Commissioner Carter to approve the
transfer of ownership of the sanitary sewer to the County of Muskegon.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
           Shepherd
            Nays: None
MOTION PASSES
2007-62 PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate - ADAC
         Plastics. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, ADAC
Plastics, 1801 E. Keating Avenue, has requested the issuance of an Industrial
Facilities Exemption Certificate for the property located at 1801 E. Keating,
Muskegon. The total capital investment is approximately $500,000 in personal
property and $2,775,000 in real property. This request qualifies ADAC Plastics for
a term of twelve years for real property and six years for personal property.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of twelve years for real property and
six years for personal property. In addition, the City's Affirmative Action Director
met with ADAC staff to discuss their affirmative action plan on Friday, July 20.
The Public Hearing opened to hear and consider any comments from the
public. Leland Davis, 1148 Terrace Manor, commented.
Motion by Commissioner Carter, second by Commissioner Shepherd to close the
Public Hearing and approve the request for an Industrial Facilities Exemption
Certificate for ADAC Plastics.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
           and Davis
             Nays: None
MOTION PASSES
2007-63 NEW BUSINESS:
      A. Extension of Time Period for Existing Renaissance Zone Parcels.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Last year, PA 440 (HB 5942) amended the Michigan
Renaissance Zone Act (PA 376 of 1996) to allow for the extension of time for one
or more portions of existing Renaissance subzones. In order for any extensions to
be approved by the State, the local municipality must first grant approval. In
addition, the development must be new to the zone and it must be shown that
the existing renaissance zone has not experienced significant development.
Staff if aware of a few projects that will be seeking Renaissance Zone extensions.
Therefore, City Commission is asked to approve the Policy for "Extension of Time
Period for Existing Renaissance Zone Parcels". Any and all requests for individual
extensions will require an Agreement between the property owner/developer
and the City, and will be presented to the City Commission for approval.
FINANCIAL IMPACT: None at this time, but approval of the Policy should
generate additional development within the Muskegon Renaissance Zones.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Policy.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the policy for extension of time period for existing Renaissance Zone parcels.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
           Wierengo
            Nays: None
MOTION PASSES
      B. Request to Purchase Office Furniture. PUBLIC SAFETY
SUMMARY OF REQUEST: Fire Department staff is requesting approval by the
Commission to allow for the procurement of office furniture for the new Central
Fire Station. The low bid, which meets all stated specifications, was submitted by
Lakeshore Office Furniture, 2615 Temple Street, Muskegon, Ml 49444. The bid
price submitted by Lakeshore is $6,504.20.
FINANCIAL IMPACT: Funds for this purchase are provided for in the building fund
for the new Central Fire Station.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Spataro, second by Commissioner Wierengo to
approve the request to purchase office furniture for the new Central Fire Station.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
           and Spataro
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Various comments were heard from the public.
2007-64 CLOSED SESSION:       Three items - property acquisition and discuss
attorney client privilege.
Motion by Commissioner Carter, second by Commissioner Spataro to go into
three separate Closed Sessions to discuss property acquisition and attorney
client privilege.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
           and Gawron
            Nays: None
MOTION PASSES
Motion by Vice Mayor Gawron, second by Commissioner Shepherd to come out
of Closed Session.
ROLL VOTE: Ayes:    Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Carter
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 8:10 p.m.


                                       Respectfully submitted,




                                       Ann Marie Becker, MMC
                                       City Clerk
                    Commission Meeting Date: July 24, 2007




Date:          July 13, 2007
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development ciJc
RE:            Amendment to the Zoning Ordinance - Clarify "horizontal
               plane"


SUMMARY OF REQUEST:

Request to amend Section 2331 (Landscaping, Fencing, Walls, Screens, and Lighting, #20, d) of
Article XXIII (General Provisions) clarifying the "horizontal plane" ofa light fixture ..

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends amendment of the Zoning Ordinance to amend the language regarding
horizontal plane.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the request at their 7/12 meeting. The
vote was unanimous with T. Harryman and B. Smith absent.




7/13/2007                                                                                1
                                  Staff Report (EXCERPT)
                                    CITY OF MUSKEGON
                                  PLANNING COMMISSION
                                    REGULAR MEETING

                                          July 12, 2007



Hearing: Case 2007-17: Staff initiated request to amend Section 2331 (Landscaping,
Fencing, Walls, Screens, and lighting, #20, d) of Section XXIII, clarifying the location of
the "horizontal plane".

BACKGROUND

The Zoning Ordinance requirements for outdoor lighting were amended in 1998. At that time
the present requirement for 100% cut-off lighting was put into place. The reasons behind this
requirement were two fold. It is best to keep the light concentrated in the areas where it is
needed for safety reasons, and also to protect the environment in several ways. Keeping
outdoor lighting directed downward helps eliminate sky glow, light trespass, glare, clutter and
confusion, energy waste and financial waste.

Recently, a variance was obtained to this section of the ordinance to allow lights shining up into
the sky to wash the wall of an office building on our lakeshore. One of the arguments made by
the applicant was that our zoning ordinance didn't designate where the "horizontal plane" was,
and the applicant interpreted it to be the top of the building. In order to further tighten this
language so it meets the intent under which it was written into the ordinance, staff recommends
the following addition:

NEW LANGUAGE

Deletions arc crossed   01c1t   and additions are in bold:


 d.     Lighting fixtures shall be a down-type having one hundred percent (100%) cut off.
        The light rays may not be emitted by the installed fixture at angles above the
        horizontal plane passing through the lowest point on the light fixture from which
        the light is omitted, as certified by the manufacturer's photometric test.


DELIBERATION

I move that the amendment to Section 2331(Landscaping, Fencing, Walls, Screens, and
Lighting, #20, d), of Article XXIII, General Provisions, of the City of Muskegon Zoning
Ordinance, be recommended to the City Commission for (approval/denial).




                                                                                                  2
                                 CITY OF MUSKEGON

                          MUSKEGON COUNTY, MICHJGAN

                               ORDINANCE NO. 2232

An ordinance to amend Section 2331 {Landscaping, Fencing, Walls, Screens, and
Lighting, #20, d) of Article XXIII (General Provisions) clarifying the horizontal plane of
a light fixture.

THE CITY CO!v!MISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

Section 2331 (Landscaping, Fencing, Walls, Screens, and Lighting, #20, d) of Article XXIII
(General Provisions) is amended clarifying "horizontal plane", as follows:


Changes to Section2331, (#20, d): General Provisions

d.     Lighting fixtures shall be a down-type having one hundred percent ( 100%) cut off.
       The light rays may not be emitted by the installed fixture at angles above the
       horizontal plane passing through the lowest point on the light fixture from which
       the light is emitted, as certified by the manufacturer's photometric test.


This ordinance adopted:

Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter, and Davis

Nayes: None

Adoption Date: July 24, 2007

Effective Date: August 9, 2007

First Reading: July 24, 2007

Second Reading: N/A

                                               CITY OF MUSKEGON


                                              By:\&,     '\.A;\\\( ,\ /\
                                                                      1,,  (11LJL L
                                                       Ann Marie Becker, MMC, City Clerk
            Commission Meeting Date: July 24, 2007 · Zoning Ordinance Amendment-Horizontal plane



                                             CERTIFICATE

        The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted
by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the
24th day of July, 2007, at which meeting a quorum was present and remained throughout, and that the
original of said ordinance is on file in the records of the City of Muskegon. I further certify that the
meeting was conducted and public notice was given pursuant to and in full compliance with Act No.
267, Public Acts of Michigan of 1976, as amended, and that minutes were kept and will be or have
been made available as required thereby.

DA TED: July 24, 2007.
                                                 Ann Marie Becker, MMC
                                                 Clerk, City of Muskegon



Publish:       Notice of Adoption to be published once within ten ( 10) days of final adoption.
                                                     CITY OF MUSKEGON
                                                     NOTICE OF ADOPTION

Please take notice that on July 24, 2007, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2331 (Landscaping, Fences, Walls, Screens, and Lighting, #20, d) of
Article XXIII (General Provisions) clarifying "horizontal plane".
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City
Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.

           This ordinance amendment is effective ten days from the date of this publication.

Published __,,'--'Ji,-«41-l#~____._3.,_,,_,o'-------'' 2007.    CITY OF MUSKEGON

                                                                By _ _ _ _ _ _ _ _ _ _ _ __
                                                                     Ann Marie Becker, MMC
                                                                     City Clerk



PUBLISH ONCE WITHIN TEN (10) DAYS OF FlNAL PASSAGE.

Account No. 101-80400-5354




                                                                                                   5
          Commission Meeting Date:              July 24, 2007




Date:       July 17, 2007
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Urban Renewal Plan Project R-134


SUMMARY OF REQUEST: To request Commission to instruct Wilmern
Griffin, City of Muskegon Community and Neighborhood Services
Director, to sign the following affidavit that to the best of his knowledge
the U.S. Department of Housing and Urban Renewal has signed off on
the Urban Renewal Plan Project R-134. Therefore, the redevelopment of
the downtown site can continue without any title issues.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None
                                 AFFIDAVIT OF WILLMERN GRIFFIN

           STATE OF MICHIGAN
- ~ - - _ _CQUl'ITY_DF MUSKEGON            _____ ~- ___ _

                  Willmem Griffin, being duly sworn, swears and confirms the following:

                  I.    I am the Director of Community and Neighborhood Services for the City
           of Muskegon.

                 2.      I am familiar with the United States Department of Housing and Urban
           Development ("HUD") Urban Renewal Plan Project R-134 in downtown Muskegon,
           Michigan as described in the instrument recorded on January 28, 1969 at liber 910, page
           542, Muskegon County Records (the "Plan").

                  3.     The City of Muskegon agrees with HUD that the Plan has been satisfied in
           accordance with the letter and attachments I received from Jeanette Harris, Director,
           Office of Community Planning and Development for HUD attached to this affi avit.


                                                               Name: Willmem Griffi
           STATE OF MICHIGAN                                   Date: July .JL 2007
           COUNTY OF MUSKEGON

                 The foregoing instrument was acknowledged before me on July :21___, 2007 by
           Willmem Griffin, an individual.           ~                    rJ/. c;l./a__~
                                                       /\II t>c~ ke..')oV\ Notary Public
                                                       Muskegon County, Michiga/.
                                                       My commission expires:0¼ 03 /DI/
                                                       Acting in Muskegon County, Michigan
           PREPARED BY AND WHEN
           RECORDED RETURN TO:                                           ARDYCE G. HAKEN
           Chris Kelly                                             NOTARY PUBLIC, MUSKEGON COUNTY, Ml
           Parmenter O'Toole                                        MY COMMISSION EXPIRES APRIL 3, 2011
           601 Terrace Street, Muskegon, Michigan 49440
           (231) 722-5414
          Commission Meeting Date:            July 24, 2007




Date:       July 17, 2007
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Lead Based Paint abatement at 218 Catherine


SUMMARY OF REQUEST: To approve the contract with Specialty
Builders of 2434 Annett~Muskegon, Michigan for the lead base paint
abatement of the city-owned home at 218 Catherine for the cost of
$21,750. (Twenty One Thousand Seven Fifty)

The City received two additional bids:

•   DeRose Builders~f.7786-Wicz~r Driv~, Whitehall, Michigan, for
    $24,550 (Twenty Fot:1r_J)J9uE>and Fifty dollars) :,

•   Statewide Abatement of 1720 Creston Avenue Muskegon, Michigan
    for $27,800 (Twenty Seven Thousand Eight Hundred)

After the lead base paint abatement is complete the structure will be
totally rehabilitated and then sold to a qualified low to moderate-income
homebuyer.

FINANCIAL IMPACT: Cost of the abatement will be allocated from the
2007-2008 HOME budget.

BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve Community and
Neighborhood Services office to develop a contract with Specialty
Builder of Muskegon, and direct Mayor and Clerk to sign the contract.

COMMITTEE RECOMMENDATION: None
24-205-252-0006-10   218 CATHERINE AVE   FRONT VIEW 08/06
         Commission Meeting Date:              July 24, 2007


Date:       July 17, 2007
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Approval of Contractor for Rehabilitation of House
            at 218 Catherine. \,) ,           G,

SUMMARY OF REQUEST: To approve the contract with J2
Development 109 West Laketon Muskegon, Michigan, for the
completion of the rehabilitation to be located at 218 Catherine, fpr the
cost of $52,511 (Fifty-two thousand five hundred eleven dollars).

After the total rehabilitation is COIT\pleted the home will be sold to a
qualified first-time homebuyer, continuing the City's aggressive
neighborhood revitalization efforts in the Angel neighborhood area under
the Operation: "A Place you call Home"

The City received Five (5) additional bids:

• DH Construction, of 3680 Ryerson             Twin Lake, Michigan, for
  $54,003 (Fifty Four Thousand Three)

•   L~wis Johnson , of 16976 Bonita Court Grand Haven, Michigan,
    for $58,800 (Fifty Eight Thousand Eight hundred dollars)

• Specialty Builders, 2434' Annett Avenue Muskegon, Michigan
  $63,207 (Sixty Three Thousand Two Hundred seven)

• Obenauf DePender Construction LLC, of 4471 Thompkins Trail
  Muskegon Michigan, for $ 71,220 (Bhtty~eight thousand five..hundred
  seventy-eight dollars) ..
•   DeRose Builders      7786 Wiczer Drive White Hall, Michigan
    $78,552 ( Seventy Eight Thousand Five Hundred Fifty Two)

FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2007-2008 HOME funds.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve for the Community and
Neighborhood Services office to develop a contract with J2
Development 109 W. Laketon and direct the Mayor and Clerk to sign
the contract.
COMMITTEE RECOMMENDATION: None needed.
24-205-252-0006-10   218 CATHERINE AVE   FRONT VIEW 08/06
         Commission Meeting Date:            July 24, 2007


Date:       July 17, 2007
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Approval of Contractor for Construction of new
            House at 539 Orchard


SUMMARY OF REQUEST: To approve the contract with Murphy
Brothers Construction 2519 McArthur Muskegon, Michigan. for the
construction of the new home to be located at 539 Orchard for the cost
of $110,994. After the construction is completed, the new home will be
sold to a qualified first-time homebuyer continuing the City's aggressive
neighborhood revitalization efforts in the Angell Neighborhood under the
Operation "Community Uprising"

The City received six other bids:

De Rose Builder 7786 Wiczer Drive Whitehall, Ml       $115,318

Beattie Brothers Builder2786 Holton Whitehall, Ml.    $120,222.17
Specialty Builders   4753 Jensen Fruitport, Ml        $131,043.65

Holden Costruction 601 Amity Muskegon, Ml             $135,663

Lakeshore Construction 8253 S. 116th Rothbury, Ml     $139,250

Rich Construction 28 E. Main Fremont, Ml              $137,674.09

FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2007-2008 HOME funds.
BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve for the CNS office to develop
a contract with Murphy Brothers Construction and direct the Mayor and
Clerk to sign the contract.

COMMITTEE RECOMMENDATION: None needed.
,.
i




      ···-··-·-·- .
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                                               0 - -..--wrl
Date:       07/16/07

To:          Honorable Mayor and City Commission

From:        Department of Public Works

RE:          Budgeted Meter Reading Equipment Replacement



SUMMARY OF REQUEST: Approval to purchase two SSI AR 5000
Solid State Interrogators - Hand Held Meter Reading Units. Currently the
City owns four hand held meter reading units. Two meter reading units are
14 years old and two units were replaced last year. This proposal is intended
to replace the two 14 year old units.


FINANCIAL IMPACT: Total Cost$ 9,200.00



BUDGET ACTION REQUIRED: None. Included in 2007 Budget.



STAFF RECOMMENDATION: To approve purchase from Etna Supply.
                                              July 17,2007


     Meter Reading Equipment Purchase Quote



SSI AR 5002 Meter Reading Handhelds (2)

ETNA SUPPLY   $ 4,600 ea x 2 =    $9,200.00

INVENSUS      $ 5,800 ea x 2 =   $11,600.00
Date:         July 24, 2007
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           Request for an Encroachment Agreement-Lorin Industries




SUMMARY OF REQUEST:
Lorin Industries has filed the enclosed encroachment agreement form to install three (3) monitoring
wells in the public right of way of Keating Ave. (see location map).



FINANCIAL IMPACT:
None



BUDGET ACTION REQUIRED:
None



STAFF RECOMMENDATION:
To approve the encroachment agreement subjects to the supplemental conditions and compliance
with the necessary insurance requirements.



COMMITTEE RECOMMENDATION:
            JUN.21.2007                 12:20PM               SHIPPING                                                                                            N0.557
                                                                                                                                                                                       ,)/007-        (o(n)
                                                                  City ofMuske!;on
                                           Groundwater Mo11itori11g Well Iustalla6on Application an<I Permit
                                                                                          {En,:n:1ni;hme11t r~rrnil Agn,1c;nct'tl)

      PcmUt NumlM-T:                                  DJ'.le is~ed:                                          ! Pcw.i.tl Fee:                              I Olh~t:

            If "1111llrnnt t1i'N!~ Jl C{lnH~etor to nrrfoni, l\'OCk1JJ01'U 9h..'ill ru;.s:1m1c: rc:-no11!lil1iti1\'0ftl1c l'r:riuittcc for fhc 711v'15fotw nfthl~ Au 1llc.1tlon mul Per1nlt


                                  APPLICANT - Please Prin1                                                                               CONTRACTOR - Please Print
     No,n,                                                                                                     Ndr:l'le
                 Lori.It hldtl:-irieF                                                                                      Mark \Vestm
     Str,ect                                                                                                   SU·ccl
                 l 960 South Ro\Jerb                                                                                     4J'.2S Tiwec Mifo Ro.id, N\V, Suite 200
     Cl!y                                                                                                      Cit}'                                    Stille                  Zir,
                  Mu!ikel.!mt                          Sl.:dc MlchiP_f.11                  li11 49442               ()r:mtl R.·miJ~                            Michil":in              4954-4-l 188
     Phon?
               231-727-V67S
                                                     IFax               m-12z.s794
                                                                                                               ~\Ullt
                                                                                                                          616-791-7100
                                                                                                                                                            I rn.."   6IG-791-92GJ
     [>enmttee 11roposcs to m5Uil1, reprur. or mnmlam grr,undwnte.r mom1..oru1g well{$) ("the cncroocbment' 1), ,nor abutting a meet, alley, s1dewa.lk 1 park,
     terr.11::~: or oilier propert)1 controlled or ownc:d by tbc: Cll)1 orMU!lli.e:gon. m; c:1.e:;CTibcd bc:\ow (\'enuittcc ~buU atto.cb n 1ite map to sci\le which
     sltows coch nwnitatia,g wcll loc'l.ltlon):
    ·~Su·CGt Nt1-mc & AddT(5~/G~ne.ta.1 De::;cription (1.:-i;_a! dci;cription 1n;1y llo rc~ircd):              Lo~!tlru1 (Cro~s s:ucl~ l11!1wcc~ which propcrtr i~ locaktl or neateM im:el'Sl!Ctio11):


     PJ'(ticct l)c1,.cripti01\.1Purposo;
                                               Gto\tnd   \1.-'"!lh.tr   monitnring


                                                                                                                                                                                                         !
     Pmpo1<td Stan Date·
                                              M~v 31. Z007
     1\1onflorim1/0l\1.en11tjoa \\1eU Informntton
                                                                              .
                                                                                     --                                                                                                                  i
     Dril~ns C01"pany (if different tllall Cont=wr):                                                           Pmpused Well Dcpili (ft.):                     Well name or#:

                       Best LLC.                                                                                          30 FE!oi                         200. 2001, and 2002
     Purpose of M"onitori~ Well lnsiallatio!I:                    ;:; Part 21 lnJJ Site            X Pait 2U l 8ile         lJ Port 111 Site    C Phase TI P.SAi A6-l o BE.II
             n Othcr(sru>ciM



               Rick De-Dir

    PERi\1IT AGREE MF.NI: This pc.rm.it i:i made and. entered into 1')' rtnd bdwei:n the Chy of Mnsh:!gon, a municipal coiporntion (City), and the
    Pcrmittee. (indicated abo,•c). Thcrcl'c,re, 1.he City dws hereby gra.nl unto Pcn11ittcc the. prisile'Je of co11.StructLrig, iusta.Hing, main.Ul.irting, repairing,
    ao.d perlbnnlng all necessirry furlJ,;ti(.lflS rclati11g to tile monitoring well instullation (encroachment), 11I1d for Umt purpos:c to cnier the propl!lty, for the
    term herein stated, 'l1ris pcnnit shall be effective on the date shown abo\'C,. and shall not occur before the dcJi\.'et)' to the City Of the required
    evidence of msurnnce cOverage and bonding infor1n:1tio11, and onti1 after upproval of th.is permit by the Citr Conunission. at '\Vhich t.irn.c tlw pcnnit
    shall bc.:.(lmc dfcctive, The nU11chcd Penn it Requirements & CnJ1.ditiot\S nrc incurpornted b~t-cin by reference an4 constUute at\ integral pa1't
    of this 1ermit.
    Titli:: pemiit is suhjecl to the follov.,ing spccia( condi~ions:



; Required Bond Amount:                 $_ _ _ _ _ _
                                                                                                                                                              •
i
    WiLnesse~:

     cin#,o /271/4                                                                                                --""'-'f<!:',-'-'t----'3'-="--'i'-'½.,.__,__"'--'-::c---· Mayor

                                                                                                                                                                  \?,,\..\(k~


                                                                                                                  CONTRACTOR:._ _~ - - - - - - - ~
                           SUPPLEMENTAL CONDITIONS


1-   The grantee shall be fully responsible for the maintenance of the wells and any relocation
     that becomes necessary to facilitate other improvements within the right of way.

2-   Grantee will be responsible to maintain and keep, for the duration of this agreement, a valid
     insurance coverage satisfactory to the City.

3-    Insurance. The Contractor shall at all times carry insurance in the following or greater
      amounts. The insurance shall be issued by companies acceptable to the City, licensed
      in the State of Michigan. The City shall be named as additional insured on policies of
      liability insurance. The Permittee shall file certificates or policies evidencing such
      insurance coverage annually with the City. Insurance policies or certificates shall
      provide that the City be given thirty (30) days written notice before a cancellation or
      change in coverage may occur. Valid insurance coverage, acceptable to the City, shall
      be maintained until such time as the monitoring well is properly abandoned.
     ~                                             Lim its
     Workers' Compensation                         Statutory
     Professional Errors and Omissions             $1,000,000/claim, $1,000,000/aggregate
     Liability (including pollution liability coverage)
     Commercial General Liability                  $1,000,000/occurrence, $1,000,000/aggregate
     (including blanket contractual liability coverage)
     Automotive Liability                          $500,000/person
     Bodily Injury                                 $500,000/occurrence

4.   Indemnification. The Permittee shall indemnify and hold harmless the City of and from
     any liability for claims, damages, costs, expenses, or fees, including any attorney fees,
     or fines or awards brought against or charged to the City by any person, firm, or
     corporation on account of or arising from the privilege hereby granted to the Permittee
     or the activities of the Permittee related to the installation, maintenance, repair, or
     abandonment of monitoring wells. This indemnification obligation shall include all
     liabilities for environmental damage or releases of hazardous substances subject to any
     governmental or third party action. "Hazardous substance" is defined as any chemical,
     substance or material constituting a prohibited or regulated substance under
     governmental law, rule, statute, or regulations in force at any time, or any substance
     with respect to which any present or future federal, state, or local environmental law or
     governmental agency requires environmental investigation, monitoring or remediation.
                                                 '- (..,_1_\· t._:,   i;:_   c-.: l.\                     .        ._ ,.,. ( \'\
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                                                                                                                                 \_·•~.:t l      _j


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                                                                                                                                                                                                                 LE0END
                                                                                                                                                                                                            ~   E.-.:!ST". HONiTOR VIELL Loc..:,nol-!

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                                                                               -···- "" - - - - ,wa----:--------~


                                                                                                                                                                                                                DRAFT COPY
                                                                                                                                                      51TE   PLAN         PROPOSED                P!EZOHETER                  HELL             LOCATIONS

                                                                                       sc~u:-         1- "'        so·                  · 11!1          !:'?W ROSE & WESTR/1 INC.                           R:>0 ~[11i5
                                                                                                                                                                                                                       LOF<JN INDUS~ES
                                                                                                                                                                                                                          s~r. Ml.'3-=:EC..:?N. H',C~IG•~~
                                                                                                                                                                                                                                                                0:,},10J,'i]J




                                                                                                                                                                ,<_,!I
                                                                                                                                                                                         """'
                                                                                                                                                                                                                PlEZOl-'ETER WELL J1'6fAllAT!CN
                                                                                                                                                                                                            t,/~/()/                      i1n: 11 _y.,.Jrw1us
                                                                                                                                                                                                                                                                     1


----------------------------------------------·-·--·-·-
                  /
                                                      •
             OOL o r 1 n                                                                 LA SALLE BANK MIDWEST, N.A.
                                                                                             TROY, MICHIGAN 48084
                                                                                                    9·80-720
                                                                                                                                              63118
                               Industries
                 P.O. BOX 766 • MUSKEGON, Ml 49443-0766


                                                                                                  DATE                                     AMOUNT

            150 Dollars and 00 Cents********************************************"***********   09/05/2007                                $150.00
 PAY
 TO THE
            CITY OF MUSKEGON
                                                                                                                                                        i
 ORDER
 OF
                                                                                                               LORIN INDUSTRIES                         I
                                                                                                                                                        1
                             u•ob :11• 1a11• 1:0? 2oooao s,:

LORIN INDUSTRIES P.O. BOX 766 MUSKEGON, MICHIGAN 49~is0766                                             CITY OF MUSKEGON

 Inv Date     Invoice#         Voucher#       Voucher Comments                                 Gross        Discount      Backup W/H           Net
 08/31/2007 ENCROACHMENT 94767                 ENCROACHMENT                                       150.00           0.00           0.00         150.00

                                                               Total Check Amount               $150.00           $0.00         $0.00         $150.00




LORIN INDUSTRIES P.O. BOX 766 MUSKEGON, MICHIGAN 49443-0766




                                                                                                                   •
                                                                                         LA SALLE BANK MIDWEST, N.A,
                                                      •
            ooL or1n
                                                                                           2600 W. BIG BEAVER ROAD
                                                                                          TROY, MICHIGAN 48007-33703
                                                                                                                                                62525
                               Industries
                   P.O. BOX 766 • MUSKEGON, Ml 49443-0766                                          9-80-720


                                                                                                  DATE                                       AMOUNT

 PAY        100 Dollars and 00 Cents********************************************************    06/21/2007                                 $100.00

 TO THE
 ORDER      CITY   OF MUSKEGON
 OF
                                                                                                                 LORIN INDUSTRIES




                             11•0b 2 5 2 5111 1:0 7 200080 51:

LORIN INDUSTRIES P.O. BOX 766 MUSKEGON, MICHl~N 494_Mt,CJ766                                           CITY OF MUSKEGON

 Inv Date     Invoice#         Voucher#       Voucher Comments                                 Gross          Discount      Backup W/H          Net
 06/21/2007 ENGINEERING          93463        ATTN:EVELYN                                        100.00              0.00           0.00         100.00

                                                               Total Check Amount               $100.00             $0.00         $0.00         $100.00




LORIN INDUSTRIES P.O. BOX 766 MUSKEGON, MICHIGAN 49443-0766




                                                                                                                    RECEIVED
                                                                                                               CITY OF MUSKEGON

                                                                                                          •        JUN 2 6 2007
                                                                                                          ENGINEERING DEPARTMENT
Date:        July 24, 2007
To:          Honorable Mayor and City Commissioners
From:        Engineering
RE:          Request for Encroachment Agreement on Third St.




SUMMARY OF REQUEST:
Muskegon Main Street has requested your permission to place three (3) open bottom
planters along Third St. The planters will be filled with grade 6A gravel topped with
landscape fabric, soil, and perennial flowers. Muskegon Main Street and the businesses
along the Third St. corridor will jointly maintain the planters



FINANCIAL IMPACT:
None



BUDGET ACTION REQUIRED:
None



STAFF RECOMMENDATION:
To approve the encroachment agreement with the supplemental conditions.




COMMITTEE RECOMMENDATION:
                                                                                                   .2.001-to{o)


                                              CITY OF MUSKEGON

                            ENCROACHMENT AGREEMENT AND PERMIT

         THIS AGREEMENT is made and entered into this                   cJYM    day of J;,,   /y
                                                                                              17
                                                                                                        2007, by

and between the CITY OF MUSKEGON, a municipal corporation (hereinafter called CITY), and

_ __,_\j--'-'~•c.cc,~(Lc9 1~0"'~~~-\=Gt,_h,.__$1~~r_t=t_(-_,____ (hereinafter called LICENSEE).

                                                     RECITALS

         I. LICENSEE proposes to install, repair or maintain improvements or facilities ("the

encroachment"), in or abutting a street, alley, sidewalk, park, terrace or other property controlled or

owned by the City of Muskegon, the encroachment being described as




        2, The City-owned or controlled property (herein "property") subject to the encroachment is

described as:

[please insert a general description, and ifrequired by the CITY, an accurate legal description]

                                      So~~b     o+ \h1'~ St bc}w<-c"                      ~o~>&6'1


        3, The CITY is willing to grant such privilege upon the terms and conditions herein, This

agreement shall constitute a permit under section 18-19 of the Code of Ordinances, but shall apply to

any encroachment on public ways or property.

        THEREFORE,

         L       CITY does hereby grant unto LICENSEE the privilege of _ _ _ constructing,

--A--   installing,   -----ff'--'-- maintaining,      )( ·
                                                      •
                                                                 repairing and performing all necessary functions

relating to the encroachment, and for that purpose to enter the property, for the term herein stated,




                                                             I
\\Muskdata\Data\ENGINEERING\COMMON\PERMIT FORMS\Encroachment Agreement and Permil.doc
This privilege shall be effective upon the issuance of an encroachment permit, which shall be issued

only after approval of this agreement by the City Commission and delivery to the CITY of the required

evidence of insurance coverages.

         This grant is subject to the following special conditions:        -~s.,.,,e'-"e,"'----_,a"-'-t,_f,,a_,c"'h-'-'e::..:rf=---




         2.      That LICENSEE shall pay to the CITY for the privilege hereby granted the sum of

_ _ _ _ _ _ _ _ _ _ _ _ Dollars ($ _ _ _ __,, such payment to be made upon the signing

of this agreement to be dated as of the _ _ day of _ _ _ _ _ _ _ _ 20_, to the City

Treasurer of the City of Muskegon, and the privilege hereby granted shall continue for a period to

terminate the first day of May, 2Q_____ unless sooner terminated as hereinafter provided.

         3. INDEMNIFICATION. The LICENSEE shall indemnify and save harmless said GRANTOR

of and from any liability for claims, damages, costs, expenses, or fees, including any attorney fees, or

fines or awards brought against or charged to the CITY by any person, firm or corporation on account

of or arising from the privilege hereby granted to LICENSEE or the activities of the LICENSEE

related to the encroachment or this privilege. This indemnification obligation shall include all liabilities

for environmental damage or releases of hazardous substances subject to any governmental or third

party action. "Hazardous substance" is defined as any material constituting a prohibited or regulated

substance under governmental law, rule, statute or regulation in force at any time, including future

times.

         4. INSURANCE. LICENSEE shall at all times carry liability insurance in such amounts as are

satisfactory to CITY, and issued by companies acceptable to the CITY, licensed in the State of

Michigan, naming CITY OF MUSKEGON as an additional insured on any such policy. LICENSEE

will file with


                                                            2
\\Muskdata\Data\ENGINEERING\COMMON\PERMIT FORMS\Encroachment Agreement and Pennit.doc
the CITY certificates or policies evidencing such insurance coverage. The insurance policies or

certificates shall provide that the CITY shall be given thirty days written notice before a cancellation or

change in coverage may occur. The types of coverage and coverage limits to be required shall be as

follows:




         5.       BONDING. Before this agreement/permit becomes valid, LICENSEE shall file with the

CITY a bond conforming with the requirements of any ordinance, and shall keep same in force during

the entire term of this agreement.

         6.      The privilege hereby granted may be canceled and revoked by the CITY at any time

upon giving said LICENSEE __ days of written notice of such cancellation and revocation.

         7.      LICENSEE may surrender up the privilege hereby granted at any time upon giving

notice in writing to the CITY - - - days prior to such surrender; provided, however, that upon the

voluntary relinquishment or abandonment of this privilege, or upon cancellation or revocation thereof

by the CITY, the LICENSEE shall remove any structure(s) erected upon, within or overhanging the

area of encroachment and restore the property at LICENSEE'S expense and in a manner satisfactory to

the CITY and in default thereof shall be liable to the CITY for any cost, damage or expense the CITY

may sustain in such restoration.

         8.      That should said LICENSEE fail or refuse to conform to any of the conditions on its

part to be performed hereunder, the privilege hereby granted shall immediately terminate and become

null and void.




                                                            3
\\Muskdata\Data\ENGfNEERING\COMMON\PERMIT FORMS\Encroachment Agreement and Pennit.doc
        9.       This agreement shall be binding upon the respective heirs, representatives, successors

and assigns of the parties hereto.




Witnesses:




                                                                      An~1:v~,.:'---\\'-l\.,I__J~-1 ~CL''lJ..,A_
                                                                           Ann f}Jar,e, i5eGA:.r. Clerk


                                                                      L.IC·····.E.J!'~


                                                                       /
                                                                        %  .   ;

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                                                                                         M,,s/<,,10"- )1a1._ ~Jr,-c}




                                                            4
\\Muskdata\Data\ENGINEERING\COMMON\PERMIT FORMS\Encroachmcnt Agreement and Pennit.doc
                           SUPPLEMENTAL CONDITIONS




1-   The grantee shall be fully responsible for the maintenance of the planters and any
     removal or relocation that becomes necessary to facilitate other public improvement
     projects within said right of way (s).

2-   Grantee will maintain, for the duration of this agreement, a valid insurance coverage
     of satisfactory to the City.

3-   The City and/or its agents are not responsible for any damage to the planters.

4-   The planters would be placed NO closer than two (2) feet from the back of the
     street's back of curb while maintaining a minimum of five (5) feet of clear pedestrian
     path in line with established sidewalk on Third St..
    - ·· - ··-··-··- ·· -· · - ·· - ··- ··- ·· - ·· -· ·-· · - ·
          ~ MUSKEGON MAIN STREET
    -    •·__ _
               •       e       -   •    •       -   •    •       -   •    •-
                                                                               900 T hird S t . Mus k e gon, Ml 49440 23 I .724 .3 1 80
                                                                               •    •       -   •    •   .   -       I       •       -       ••       -       •       •       -   •    •       -   •    •       -        •       •       -       •       •       - 1
                                                                                                                                                                                                                    May 25, 2007

        City of Muskegon
        933 Te1rnce St
        Muskegon,MI49440


        To whom it may concern:

        Muskegon Main Street desires to enter into an encroachment agreement with the City of
        Muskegon and payment of the $100 processing fee is enclosed.

        The plan is to install 3 open bottom planters at the locations indicated on the attached map.
        The planters will be filled 2/3 with grade 6A gravel, which will be topped with landscape
        fabric. Soil will then fill the top third and the planters will be planted with perennials and
        annuals. The planters will be maintained jointly by Muskegon Main Street and the
        businesses which they are located in front of.

        We truly hope this plan to beautify the Third St corridor will be accepted by the City of
        Muskegon.


        Sincerely,




    Dan Rinsema-Sybenga
    Muskegon Main Street Manager
    drinsema-sybenga@muskegon.org
    Direct Extension - 724-3180
    http://downtownmuskegon.org




-          •       •       -       ••       -       ••       -       ••   -    ••       -       ••       -       •       •       -       •   •    -       •       •       -       ••       -       ••       -        •       •       -       •       •       -
                                                                                                I                                  4512
                                                                                          COMMUNITY
                 MUSKEGON AREA FIRST                                                      SHOREy8~NR
                   900 THIRD STREET, SUITE 200
                       MUSKEGON, Ml 49440                                                    74-13941724
                         PH. (230724-3179
                                                                                                                      5/25/2007
                                                                                                                                            i
PAY TO THE                                                                                                                                  •~'
ORDER OF         City of Muskegon                                                                                $   **100.00               •

                                                                                                                                            j
  One Hundred and 00/100***************************************************************************************************"'     DOLLARS   J
             City of Muskegon
             Cathy Brubaker-Clarke
             933 Terrace Street P.O. Box 536
             Muskegon, Ml 49443-0536
MEMO:
        Encroachment Agreement
                        11 1 0 0 I, S l, 211 1   1: 0 7 2 I,   L :l 9 I, 21:   l, 0 0   0 0 0 I, :l S l, 11•




             (
                                    AGENDA ITEM No. - - - -

                        MUSKEGON CITY COMMISSION - July 24, 2007


TO:                      Honora9le Mayor & City Commissioners

FROM:                    Plannjhg Department C,ibG

DATE:                    Julyf, 2007

SUBJECT:                 Approval of a Neighborhood Enterprise Zone Certificate




SUMMARY OF REQUEST

An application for a Neighborhood Enterprise Zone (NEZ) ce1tificate has been received from
Kevin Eden to rehabilitate a home in the Nelson neighborhood at 372 W. Muskegon Avenue.
The home is located in a Neighborhood Enterprise Zone. The application states that the
estimated cost for rehabilitation will be $46,400. The addition of a new foundation (complete
basement), new front porch with steps, new sidewalks (from the front and side doors to the
sidewalk at the street; new rear porch steps, reconstruction of front porch brick columns and
stone work, new concrete parking slab, ,and a new roof for the home, The applicant has met local
and state requirements for the issuance of the NEZ certificate. Approval or denial by the City
Commission is required within 60 days of the application date and must be forwarded to the
State Tax Commission.

FINANCIAL IMPACT

Taxation will be 50% of the State average for the next 11 years.

BUDGET ACTION REQUIRED

None.

STAFF RECOMMENDATION

Approve issuance of the NEZ certificate.

COMMITTEE RECOMMENDATION

None.




O:\Planning\COMMON\NEZ\J72 W Muskegon\Agenda Item.doc
                                     Resolution No. 2007-61 (b)

                              MUSKEGON CITY COMMISSION

                     RESOLUTION TO APPROVE THE ISSUANCE
               OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE




WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Kevin Eden to rehabilitate a home at 372 W. Muskegon Avenue in the Nelson
neighborhood, and;

WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;

WHEREAS, the Neighborhood Enterprise Zone Certificate will be for 11 years;

NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Ce11ificate for the rehabilitation of a home by Kevin Eden be approved.

Adopted this, 24 th day of July, 2007.



Ayes:    Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
         Wierenga
Nays:    None

Absent: None


                                                     By:



                                                           ~            I'\.,        . Q . . i(
                                                     Attest.~,-.. \·"-\ '---\>./\A..,\ \;:V~-C\ A,..--,
                                                          Ann Marie Becker, MMC
                                                          City Clerk
                                         2007-6l(b)
                                       CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on July 24, 2007.

                                                                By~      ,"'J:\\
                                                                          "-\.0\ ..1     /lis:
                                                                                      .j"h_,,
                                                                   Ann Marie Becker, MMC
                                                                     City Clerk
                                                 RECEIVED
Michigan Department of Treasury
2704A (Rev. 3-07)
                                                      Of MUSKEGON
Application for Neig~1f!f'i~ise Zone
Certificate
Issued under authority of Public Act 147 of 1992, as amended.

Instructions: Read the instructions before completing the application. This application must be filed prior to building permit
issuance and start of construction. Initially file one original application (with legal description) and two additional copies of this
form with the clerk of the local governmental unit {three complete sets). The additional documents to complete the application process
will be required by the State of Michigan only after the original application is filed with the clerk of the local governmental unit (LGU).
This form is also used to file a request for the transfer of an existing NEZ certificate. Please see the instruction sheet.

                                 /TO !:IE COMPLl:TED BY CLERK OF LOCAL GOVERNMENT UNIT LGU
                                                                                 • Date received by LGU
                                                                                                                    .· 007

;Parf1: 'iOwiler/A              lii:a11t Information ,c6hf lete all fields.
  • Applicant Name ✓•                                                                                                   Amount of years requested for
                                                                                                                        exemption 1
                          f-.e·}11J


 Q!I.. City of
 D   Township of
 D   Village of
  • Application is                                                              School District where facility is        • School Code
 D   New                    Rehabilitation       D   Transfer 1 co
                                                                                located    //.1 t:f..,rJ_/( ,.vt        <c,/o/ o
ls the building owned or rented by the occupants?                               U'.Pe of Property
                                                                                129.._ House           D   Duplex                  D Condo
     Owned              D   Rented                                              D   Loft               D   Apartment - No. of Units
  ame of LGU that established district

Cit'-                                                                           Estimated Project Cost (per unit)

   Licensed Contractor      D Other                                                   $"4lo
Describe the general nature and extent of the rehabilitation or new construction to be underta en. Include Breakdown of Investment Cost (use
attachments if necessary)            0       .         _L.-"il.   \ ,.,_   \
                                     ..:..)ee_ Q.:\.,uc vt eo
Timetable for undertaking and completing the rehabilitation or construction of the facility.
 c:,,y,1.er       ,vu.,;! :~,Ay'_,,c/~' Cit:. ,,;<*'f-'lc·l,,. bf .Ji," j · - ;yn~1
:part 2::CA            licaritCertification
I certify the information contained herein and in the attachments are true and that all are truly descriptive of the residential real
property for which this application is being submitted.

I certify I am familiar with the provisions of Public Act 147 of 1992, as amended, (MCL 207.771 to 207.787) and to the best of my
knowledge, I have complied or will be able to comply with all of the requirements thereof which are prerequisite to the approval of the
a !ication b the LGU and the issuance of Nei hborhood Enter rise Zone Certificate b the State Tax Commission.
 • Contact Na      ~
                                                                               Contact Telephone Number
                  1
                 ~,,'tl'l                                                           2Z';I- &3 -.               /CJZ'i
Contact Fax Number                                                             Contact E-mail Address

                                                                                 I c /.t--        {!   Ac.c. cb,',-t,\
Owne~~plicant Name            L                                                Owner/Applicant Telephone Number
     f--t-v,rl ;;. ..[;,,.                                                      ;:?[51-
                                                                               Date



 • Owner/Applicant Mailing Address (Street No., City, State, ZIP Code)         Owner/Applicant E-mail Address

                                                                                 Le/!/.
 2704A, Paae 2
  ·,~l!i!.:}:;,'!-P9~!,::!3PYE~~l'll!;:t/:[l~~Jl9~?i.'.c;, ,, t ••.•.· · · · .., . /· . ,, . ·· . . ·. /< •..
  LGU Clerk must comolete this s~ctloif 6efoi'J>·ijubmitting t,nhe State Tax Commission ·
  Action taken by LGU:                                                        The State Tax Commission requires the following documents be filed for
                                                                              an administratively complete application:
  @ Abatement Approved for _iL Years (6-15)                                   0   1. Original Application
  D Abatement Approved for _ _ Years (11-17 historical credits)               0 2. Legal description of the real property with parcel code number
  D Denied (include Resolution Denying)                                       0  3. Resolution approving/denying application (include# of years)
                                                                              0   4. REHABILITATION APPLICATIONS ONLY. Statement by lhe
                                                                                   assessor showing the taxable value of the rehabilitated facility not
                                                                                   including the land, for the tax year immediately preceding the
                                                                                   effective date of the rehabilitation.
   • Date of Resolution Approving/Denying this application                    LGU Name

     Ju /y. c:? (, Joo 7
  Part .~:·•.·!,O(::ALc:;pvERNMENT.cERTIFlPAtJON f\:Cti.••·••••··,.,?.•·c,,?c•x·.•··; . ••··•· · · · ·,
  tsu  c1¢rk must coirioiete'itils sei:!ici'u lie'ti>re"s~bri,i!\1,io loili~siate·Jaic Cotiimisslon.
  I certify that l have reviewed this application for complete and accurate information and determined that the subject property is
  located within a qualified Neighborhood Enterprise Zone.

  I certify this application meets the requirements as outlined by Public Act 147 of 1992 and hereby request the State Tax Commission
  issue a Neiqhborhood Enterprise Zone Certificate.
  Print Clerk Name                                                           Clerk Telephone Number

    /11111       llhr1 C,                                                         (2:31)          7.2 y-t,         70.J_,,
 Clerk Fax Number                                                            Clerk E-mail Address
   (:231)                                                                     C,l//1,   6ec/,e;·@ /Josf-man, or,z
 Clerk's Mailing Address {Street, City, State, ZIP Code)
                                                                                                      .
  933        /CJ"l~Cict'           7,1us/feµo,,               7J1/
                                                                             Date




LGU mail original completed application and required documents to:

State Tax Commission
Michigan Department of Treasury
P.O. Box 30471
Lansing, Ml 48909-7971

Note: Additional documentation will be required for the issuance of the certificate of exemption. These documents should be sent
directly to the State of Michigan Q.!l!y after the original application is filed with the LGU clerk and approved by the LGU. See the
instruction sheet attached.

Any questions concerning the completion of this application should be directed to your LGU Clerk.
***Information herein deemed reliable but not guaranteed***
06/11/2007 02:29 PM            REAL ESTATE SUMMARY SHEET

Parcel: 61-24-205-336-0009-00          Owner's Name: CITY OF MUSKEGON

Property Address: 372 W MUSKEGON AVE                     MAP #: TlON Rl6W S 30 NE 1/4

Cur. Class : 707    Gov. Unit: 24 24.CITY OF MUSKEGON School: 61010     MUSKEGON SCHOOLS
Prev. Class: 707    Neighborhood: Rll. Rll.04 NELSON RES

Liber/Page: 00000000         Created:   / /       Split:   / /       Active
Public Impr.: Paved Road, Storm Sewer, Sidewalk, Water, Sewer, Electric, Gas,
Curb
Topography: Level, Landscaped

Legal Description:                                  Mailing Address:
CITY OF MUSKEGON                                    PO BOX 536
REVISED PLAT OF 1903                                933 TERRACE ST
SLY 38,85 FT LOT 10 &                               MUSKEGON MI 49443
NLY 41.25 FT LOT 9 BLK 336

                       Physical Property Characteristics
2008 S.E.V.:              Taxable:                Lot Dimen:
2007 S.E.V.:              Taxable:                Acreage: 0.24
Zoning: H                 Land Value: 10,000      Frontage: 80,0
PRE:   0.000%       Land Impr. Value:            Average Depth: 132.0
                                    {)Q15/Z:>£               £-)<f°E/l..5.E:5         /0'.Z:   /'ePln    Ebcn'5
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., , /!c:e,u /,,,,0:11 I -5//2, c',(,,,-21/K             o,✓r,~i   5,c/c       5,,,?«,tr/K'
    $ 0 .s....,ccJ
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    JJ; I (J(j
-       ~Cb//~h"u C ht}-'?             {}(f     4'cy'( l,,c:'c)/'cJ1 6/'l'r!K'    c/4,,uv1_5 /s 7fl/le   t(j(}r,i:..
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         f L--ilc,'~ L .
                   Commission Meeting Date: July 24, 2007




Date:             July 13, 2007
To:               Honorable Mayor and City Commissioners
From:             Planning & Economic Development                             (!)30
RE:               Rezoning request for property located at 1024 Sophia St.


SUMMARY OF REQUEST:

Request to rezone the property located at 1024 Sophia Street, from R-1, One Family
Residential District to B-2, Convenience and Comparison Business District.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends approval of the request.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the request at their 7/12
meeting. The vote was unanimous, with T. Harryman and B. Smith absent.




        O:\Planning\COMMON\Zoning\City Commission Items\rezone\Approve\2007 Approvals\! 024 Sophia.doc   1
                              CITY OF MUSKEGON

                          MUSKEGON COUNTY, MICHIGAN

                               ORDINANCE NO. 2 2 3 3

An ordinance to amend the zoning map of the City to provide for a zone change for
certain properties from R-1 "One Family Residential" district to B-2 " Convenience
                            and Comparison" district.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

The zoning map of the City of Muskegon is hereby amended to change the zoning of the
following described property from R-1, "One Family Residential" to B-2 "Convenience
and Comparison Business":

         CITY OF MUSKEGON REVISED PLAT OF 1903 N 35.5 FT OF LOT 2 BLK
                     234 SBJT TO ESMNT INGRESS/EGRESS

This ordinance adopted:

Ayes: Warmington, Wierenga, Carter, Davis, Gawron, Shepherd,
      and Spataro
Nayes:    None

Adoption Date:     July 24, 2007

Effective Date:    August 9, 2007

First Reading:     July 24, 2007

Second Reading:--=-N'-'-/--"A::....__ _ _ _ _ _ _ __

                                                       CITY OF MUSKEGON

                                                       By:   ~A'hn\ '"Marie
                                                                       u:::n'\C,\ ~ 2. (,1_,\
                                                                            ii ,,~   ,1
                                                                              Becker, MMC
                                                              City Clerk
             CERTIFICATE        (Rezoning of 1024 Sophia Street R-1 to B-2)

        The undersigned, being the duly qualified clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
                                                                   th
Muskegon, at a regular meeting of the City Commission on the 24 day of July, 2007, at
which meeting a quorum was present and remained throughout, and that the original of
said ordinance is on file in the records of the City of Muskegon. I further certify that the
meeting was conducted and public notice was given pursuant to and in full compliance
with Act No. 267, Public Acts of Michigan of 1976, as amended, and that minutes were
kept and will be or have been made availab e as required thereby.

DATED: _ _ _J~u~l~Y~2_4_ _ , 2007.                                  - (6 e
                                              Ann Marie Becker, MMC
                                              Clerk, City of Muskegon



Publish:       Notice of Adoption to be published once within ten (10) days of final
               adoption.
                                             CITY OF MUSKEGON
                                            NOTICE OF ADOPTION

      Please take notice that on July 24, 2007, the City Commission of the City of Muskegon
      adopted an ordinance amending the zoning map to provide for the change of zoning of
      the following property from R-1, "One Family Residential" to B-2 "Convenience and
      Comparison Business":

              CITY OF MUSKEGON REVISED PLAT OF 1903 N 35.5 FT OF LOT 2 BLK
                          234 SBJT TO ESMNT INGRESS/EGRESS

      Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
      the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular
      business hours.

             This ordinance amendment is effective ten days from the date of this publication.

      Published ~ili<--'4-{~~,,,_v_~3~0~_, 2007                       CITY OF MUSKEGON

                                                                      By _ _ _ _ _ _ _ _ _ __
                                                                           Ann Marie Becker, MMC
                                                                           City Clerk




PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.

Account No. IO 1-80400-5354




             O:\P!anning\COMMON\Zoning\City Commission Items\rezone\Approve\2007 Approva!s\1024 Sophia.doc   4
                                       Staff Report [EXCERPT]
                                        CITY OF MUSKEGON
                                      PLANNING COMMISSION
                                         REGULAR MEETING

                                                 July 12, 2007



Hearing; Case 2007-27: Request to rezone the property at 1024 Sophia Street, from R-1, One
Family Residential, to B-2, Convenience and Comparison Business, by Eric Anderson,
Apparelmaster-Muskegon, Inc.

Applicant:                       Eric Anderson, Apparelmaster-Muskegon, Inc.

Property Address/Location:        1024 Sophia Street

 Request:                        Rezone from R-1, One Family Residential District to B-2,
                                 Convenience and Comparison Business District

 Present Land Use:               Residential

 Zoning:                         R-1, One Family Residential District


 STAFF OBSERVATIONS
 I.   The site presently houses a single-family home on a lot that measures 35.5 x 135 feet
      (4,686 sq. ft total area). The property owner has entered into a purchase agreement with
      the applicant, contingent on the rezoning of the property.
 2.   The applicant is the owner of the Apparrelmaster-Muskegon shop, 341 E. Apple Avenue,
      located next door to the property under consideration for rezoning. This property is
      zoned B-2, Convenience and Comparison Business.
 3.   The property to the East is zoned B-2, to the South is zoned R-1, One Family Residential,
      and to the West is zoned B-4, General Business and is the location of Goodwill
      Industries.
 4.   The applicant is requesting the rezoning so he can expand the parking for his business
      onto the parcel at 1024 Sophia. He has several delivery trucks that at this time are
      parking across the street at Goodwill, with a special parking agreement.
 5.   The Master Land Use Plan indicates the property is located in the "Downtown/Lakeshore
       Redevelopment Area". Within that area, the property appears to be in the "Service
      Area". The Service Area is described as an area that "often acts as a gateway to the
      Downtown" and provides "a beneficial home for professional, government and
      commercial activities".
 6.    Staff has received no comments regarding this request.




               O:\Planning\COMMON\Zoning\City Commission ltems\rezone\Approve\2007 Approvals\1024 Sophia.doc   5
House located at I 024 Sophia Street.                           Side view of Apparrelmaster from Sophia.




               O:\Plann ing\COM MON\Zoning\City Commission ltems\rczone\Approve\2007 Approvals\ I024 Sophia.doc   6
                Front view of Apparelmaster from across Apple Avenue.




0:\Planning\COMMON\Zon ing\City Commission ltems\rezonc\Approve\2007 Approvals\ I024 Sophia.doc   7
     City of Muskegon
     Planning Commission
     Case# 2007 - 27
                                                                                                   *
                                                               u
                                                                                                         Se!ec1ed Property

                                                l                                                        Propertiesw/in 300 ft.




                                                               r                             R-1 gSir'glafamilyResk!ential
                                                                                             RT~ TI/\Ofam!yResldentlal
                                                                                             B-2 ~ Convenience& C<Jmpariron   ll!Jslooss
                                                                                             B-4 ~ Oooen1I Business




                                          B-2
                                                                            RT



                           B-4
                                            R.1
                                                    *                       IO]
                                                                      R·1




                                                                    Fl I/IQ
                                                                    1111I IIH

STAFF RECOMMENDATION
Staff recommends approval of the request to rezone the subject properties from R-1, One Family
Residential to B-2, Convenience and Comparison Shopping district, because the request
conforms to the goals and recommendation of the City's 1997 Master Plan.




DELIBERATION

Criteria-based questions typically asked during a rezoning include:

I.       What, if any, identifiable conditions related to the petition have changed which justify
         the petitioned change in zoning.

2.       What are the precedents and the possible effects of precedent that might result from the
         approval or denial of the petition?




                  O:\Planning\COMMON\Zoning\City Commission ltems\rezone\Approve\2007 Approvals\1024 Sophia.doc                            g
3.     What is the impact of the amendment on the ability of the city to provide adequate
       public services and facilities and/or programs that might reasonably be required in the
       future if the petition is approved?

4.     Does the petitioned zoning change adversely affect the environmental conditions or value
       of the surrounding property?

5.     Does the petitioned zoning change generally comply with the adopted Future Land
       Use Plan of the City?

6.     Are there any significant negative environmental impacts which would reasonably
       occur if the petitioned zoning change and resulting allowed stmctures were built such as:

       a.     Surface water drainage problems
       b.     Waste water disposal problems
       c.     Adverse effect on surface or subsurface water quality
       d.     The loss of valuable natural resources such as forest, wetland, historic sites,
              or wildlife areas.

7.     Is the proposed zoning change a "Spot Zone"?

       a.     Is the parcel small in size relative to its surroundings?
       b.     Would the zoning change allow uses that are inconsistent with those allowed in
              the vicinity?
       c.     Would the zoning change confer a benefit to the property owner that is not
              generally available to other properties in the area?
       d.     A spot zone is appropriate if it complies with the Master Plan.



DETERMINATION

The following motion is offered for consideration:

I move that the request to rezone the property located at 1024 Sophia Street from R-1, One
Family Residential district to B-2, Convenience and Comparison Business district, as described
in the public notice, be recommended for (approval/denial) to the City Commission pursuant to
the City of Muskegon Zoning Ordinance, and the determination of ( compliance/lack of
compliance) with the intent of the City Master Land Use and zoning district intent.




               O:\Planning\COMMON\Zoning\City Commission ltems\rezone\Approve\2007 Approvals\1024 Sophia.doc   9
Date:       July 24, 2007
To:         Honorable Mayor and City Commission
From:      Water Filtration
RE:        Water Plant Reliability Study



SUMMARY OF REQUEST:

To enter into contract with the engineering firm of Fishbeck, Thompson,
Carr & Huber for performance of the Water Filtration Plant Reliability
Study. .



FINANCIAL IMPACT:

The professional proposal cost is $46,238.00.



BUDGET ACTION REQUIRED:

The study cost is to be paid by the capitol improvements section of the
water fund.



STAFF RECOMMENDATION:

Staff recommends the Mayor and City Commission enter into contract
with Fishbeck, Thompson, Carr & Huber for performance of the Water
Filtration Plant Reliability Study at a cost of $46,238.00.
                                     MEMORANDUM

                                          7/17/07

TO:            M. AL-SHATEL, DEPUTY DPW

FROM:          R. VENEKLASEN, WATER FILTRATION

RE:            WATER PLANT RELIABILITY STUDY


BACKGROUND
The USEPA and Michigan Department of Environmental Quality require the City to
perform a reliability study of the water system every five years. This study is to identify
assets and necessary to ensure the water supply is viable and capable of meeting the
needs of the municipality and its customers. These studies also identify long-term
capitol improvements projects to meet these obligations.

The previous reliability study was performed in 2002 with many of the recommendations
incorporated into the recent water plant improvements project that upgraded the plant
and increased the treatment capacity to 40 million gallons per day.


SELECTION PROCESS
Requests for Qualifications were solicited from six engineering firms that have
experience with studies, design, and operation of water treatment plants. Those firms
solicited were:
    • Black & Veatch, Grand Rapids
    • Fishbeck, Thompson, Carr & Huber, Grand Rapids
    • Hubbell, Roth & Clark, Inc., Grand Rapids
    • Johnson & Anderson, Inc., Muskegon
    • Prein & Newhof, Grand Rapids
    • Tetra Tech, Lansing

The qualifications were reviewed by City staff and two firms were selected to be solicited
for cost proposals. Those firms are: Black & Veatch (B&V) and Fishbeck, Thompson,
Carr & Huber (FTC&H).


PROPOSALS
Requests for Proposals, including cost, were solicited from the two firms to perform the
reliability study of the water filtration plant. The request was based on three major
requirements; 1) to meet the requirements of MDEQ for a water supply system, 2)
development of planning recommendations for specific facility issues, 3) organizational
evaluation to support long-term efficiency of operations and optimizations of resources
and staffing.
The results of the proposal request are:
FIRM                                 CONTACT                              COST
Black & Veatch                       Mr. David Koch                       $88513.00
125 Ottawa Avenue, Suite 380
Grand Rapids, Ml 49503

Fishbeck, Thompson, Carr & Huber Mr. Michael Peters                       $46238.00
1515 Arboretum Drive, SE         Mr. Timothy McNamara
Grand Rapids, Ml 49546


RECOMMENDATION
Based on the proposals received, it is my recommendation that the City enter into
contract with Fishbeck, Thompson, Carr & Huber to perform the reliability study of the
water filtration plant.
City of Muskegon
Water Filtration Plant
1900 Beach Street
Muskegon, Ml 49441

                         REQUEST FOR PROPOSALS

The City of Muskegon is seeking a consultant to perform engineering services for
a Reliability Study at its Water Filtration Plant.

Included is a request for Proposals for engineering services to meet the
requirements of the Michigan Department of Environmental Quality (MDEQ) for
the water supply system, develop a capitol improvements project plan, and an
organizational evaluation.

If you have any questions regarding this request please contact Robert
Veneklasen at (231) 724-4104, or submit them in writing to the following address:

                                City of Muskegon
                              Water Filtration Plant
                               1900 Beach Street
                              Muskegon, Ml 49441
                                        or
                          bob.veneklasen@postman.org

Please have all questions submitted no later than June 12, 2007. In lieu of a
pre-proposal meeting a listing of the submitted questions and answers will be
provided one week prior to the proposal submittal date.

If you are interested in providing engineering services a cost proposal is
requested; to include any changes to the study participants as listed in the
previously submitted qualifications statement of January, 2007.

All cost proposals submitted pursuant to this request must be in the City Clerks
Office prior to 2:00 PM EST on Tuesday, June 26, 2007.

Please provide a minimum of three copies of all materials submitted for review
and evaluation.
City of Muskegon
Water Supply Reliability Study
Scope of Work


Background
The City of Muskegon is seeking costed proposals from pre-qualified consultants
for the execution of a water supply reliability study project to assess the water
supply system to meet the needs of its service area. For the purpose of this
study, the water supply system consists of the source water intake and water
filtration plant, through to the high service pumping system.

Objectives
Project objectives include:
   • Meeting the requirements of an MDEQ Reliability Study for the water
       supply system.
   • Development of planning recommendations for the specific facility issues
       identified herein.
   • Water Filtration Plant organizational evaluation to support long-term
       efficiency of operations and optimization of resources and staffing.

Project Requirements
Consultant's Scope of Work shall be developed to meet the objectives of the
project and to result in the delivery of the end product as described further below.
The Scope of Work shall be based on the following project requirements:

       Project Management
       Consultant shall provide monthly progress reports of project status,
       including notification of any critical issues affecting progress. Consultant
       shall attend meeting with City staff as appropriate for purposes of
       reviewing project activities, results, etc.; Scope of Work shall be based on
       up to four such general progress meetings throughout the course of the
       project.

      Existing System Data Availability and Collection
      The City will make available to the Consultant historical system operating
      data from the City of Muskegon SCADA system upon request. In addition,
      other relevant data, such as laboratory analyses, will be provided in paper
      and electronic format as available, and as required for the Consultant's
      work. Paper copies of recent reliability studies of the water supply system
      will be provided to the Consultant. Consultant shall include in its proposal
      a list of these and any other data required to execute the project. Any
      information necessary to perform the task and not available from the City
      will need to be collected by the Consultant.
Reliability Evaluation
The Consultant shall conduct a reliability study meeting the requirements
of the Michigan SDWA and MDEQ requirements for the Muskegon water
supply system. The reliability evaluation shall include, but not be limited
to:
    • Ability of the supply system to meet projected system demands.
       Consultant shall develop system demand projections in support of
       the reliability evaluation.
    • Adequacy of Water Filtration Plant storage and pumping facilities,
       and major equipment systems, including capacity and condition.
    • Adequacy of treatment processes to meet current and known future
       regulations.
    • Adequacy of power reliability.
    • Identification and evaluation of emergency supply capabilities.

Facility Evaluation and Planning
In addition to, and building on, the overall reliability evaluation, Consultant
shall develop a facility plan identifying recommendations for improvements
and enhancements to the existing facilities to address the reliability issues,
as well as addressing the following specific issues:
    • Pretreatment performance, including mixing efficiency, and
        potential for use of alternate coagulants.
    • Filtration performance (filter run times, efficiency of filtration in
        varying demand periods, air scout/backwash effectiveness, etc.)
    • CT requirements.
    • Filter to waste metering.
    • Carbon feed system.
    • Chemical feed cross-connection control.
    • Fluoride system overfeed protection
    • Residuals drying and handling.
    • Source water (intake) redundancy.

Water Filtration Plant Organizational Evaluation
Consultant shall review current state of the organization of the water
filtration plant management and staffing and prepare recommendations for
consideration to assure efficient operation, optimization of resources, and
sustainability of resources. Focusing on:
     • Organizational structure and job responsibilities and compensation.
     • Best practices.
     • Staff retention/recruitment/succession planning.
Deliverables
The project shall culminate in the preparation and delivery of the following:
   • Reliability Study Report, including a summary of the efforts, evaluations,
      results, and recommendations for capitol improvements to be
      implemented within five years, five-to-ten years, and ten years and
      beyond. The report shall be compiled with an executive summary for ease
      of reference. Provide 8 copies of the report in paper form and six copies
      in compact disk format (CD).
   • The draft report shall be completed and all materials submitted ninety
      (120) days after contract award.

Details To Be Identified
   • Services to be provided including any others that may be needed.
   • Project leader or contact person, and staff or sub-consultants to be used
      with related staff experience (not of that firm) including position or role on
       the project.
   • Cost estimate, including:
           o Projected man-hours by position for each task
           o Hourly rates for each position to identify direct labor costs for each
              task.
           o Indirect labor cost using your firms multiplier (as determined by
              most recent audit for a similar project) and subcontracts compiled in
              the same manner.
           o Fixed Fee (profit) and expenses anticipated to determine a cost
              "not to exceed" for services to be provided.

Equal Opportunity Employment
Consultant must submit their firms Equal Opportunity Employment (EOE) plan.

Evaluation
The owner will review the proposals and evaluate them based on the requested
information and the information provided. The City reserves the right to accept or
reject any, and all, proposals.

Pertinent Dates
Proposals will be received at the City Clerks Office, c/o Ann Marie Becker, City
Clerk, City Hall, 933 Terrace Street, PO Box 36, Muskegon Ml, 49443-0536, on,
or before, Tuesday, June 26, 2007, no later than 2:00 PM, and clearly marked,
"Water Plant Reliability Study.
Required Insurance
The consultant, if selected, shall furnish the City a certificate of insurance
evidencing the following coverages:

The Consultant will be required to comply with the following insurance and
indemnity requirements:

              1.    Hold Harmless Agreements: To the fullest extent permitted
                    by law, CONSULTANT agrees to defend, pay in behalf of,
                    indemnify, and hold harmless the CITY, its elected and
                    appointed officials, employees, volunteers and others working
                    on behalf of the CITY against any and all claims, demands,
                    suits, or loss, including any 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 on behalf
                    of the CITY, by reason of personal injury, including bodily
                    injury and death, property damage, including loss of use
                    thereof, and/or the effects of or release of toxic and/or
                    hazardous material which arises out of or is in any way
                    connected or associated with this contract. The obligation to
                    defend and hold harmless extends to CONSULTANT'S
                    employees, agents, subcontractors, assigns and successors.

              2.    Consultant Insurance Requirements: CONSUL TANT shall
              not commence work under this contract until obtaining the
              insurance required under this paragraph. All coverage shall be with
              insurance companies licensed and admitted to do business in the
              State of Michigan and Best Rated A VIII. All coverage shall be with
              insurance carriers acceptable to the CITY.

              3.    Workers' Compensation Insurance: The CONSUL TANT shall
              procure and maintain during the life of this contract, Workers'
              Compensation Insurance, including Employer's Liability coverage,
              in accordance with all applicable Statutes of the State of Michigan.

              4.      General Liability Insurance: The CONSUL TANT 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 $500,000 per occurrence and/or aggregate
              combined single limit, Personal Injury, Bodily Injury and Property
              Damage. Coverage shall include the following extensions: (a)
              Contractual Liability; (b) Products and Completed Operations; (c)
              Independent Contractor's Coverage; (d) Broad Form General
              Liability Extensions or equivalent.
5.      Motor Vehicle Liability: The CONSUL TANT shall procure and
maintain during the life of this contract Motor Vehicle Liability
Insurance, including Michigan no-fault coverage, with limits of
liability of not less than $500,000 per occurrence or combined
single limit Bodily Injury and Property Damage. Coverage shall
include all owned vehicles, all non-owned vehicles and all hired
vehicles.

6.    Professional Liability Insurance: The CONSUL TANT shall
procure and maintain during the life of this contract and during the
performance of all services Professional Liability Insurance
covering all performances from the beginning of the consultant's
services on a "claims made basis" and shall maintain coverage
from commencement of this contract until six (6) months following
completion of the consultant's work with limits of liability not less
than $500,000 per claim.

7.    Additional Insured: Commercial General Liability and Motor
Vehicle Liability Insurance, as described above, shall include an
endorsement stating the following shall be "Additional Insured":
The CITY OF MUSKEGON, all elected and appointed officials, all
employees and volunteers, all boards, commissions and/or
authorities and board members, including employees and
volunteers thereof.

8.    Cancellation Notice: Workers' Compensation Insurance,
General Liability Insurance, Motor Vehicle Liability Insurance, and
Professional 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 ENGINEERING DEPARTMENT.

9.    Proof of Insurance Coverage: The CONSUL TANT shall
provide the CITY at the time the contracts are returned by him for
execution, certificates and policies as listed below:

      a.     Two (2) copies of Certificate of Insurance for Workers'
             Compensation Insurance

      b.      Two (2) copies of Certificate of Insurance for Commercial
              General Liability Insurance

      c.      Two (2) copies of Certificate of Insurance for Vehicle
              Liability Insurance
      d.      Two (2) copies of Certificate of Insurance for Professional
              Liability Insurance

      e.      If so requested, certified copies of all policies mentioned
              above will be furnished.

If any of the above coverage expires during the term of this
contract, the CONSUL TANT shall deliver renewal certificates
and/or policies to the CITY at least ten (10) days prior to the
expiration date.
                           CITY OF MUSKEGON
                   CONSULTING ENGINEERING AGREEMENT


             WATER FILTRATION PLANT RELIABILITY STUDY
                          PROJECT NAME


       THIS AGREEMENT, made and entered into as of this /7t1 day of
~u,;;z..·.  2007, A.D., by and between Fishbeck, Thompson, Carr &
~ Consulting Engineers, of 1515 Arboretum Drive SE, Grand Rapids, MI
49546, hereinafter referred to as the "CONSULTANT", And the City of Muskegon, a
Public Body Corporation, hereinafter referred to as the CITY.

       WITNESS ETH:

      WHEREAS, the CITY desires to engage the professional services of the
CONSULTANT to perform certain engineering and other related services required in
connection with the project as defined by the Work Plan Outline referred to as the
"PROJECT".

      WHEREAS, the CONSULTANT is willing to render the services desired by the
CITY for the consideration hereinafter expressed; and

        WHEREAS, the parties hereto have reached an understanding regarding the
performance of the PROJECT work and desire to set forth this understanding in the form
of a written agreement.

        NOW THEREFORE, IT IS HEREBY AGREED by and between the parties
hereto that:

I. THE CONSULTANT SHALL, perform professional services in connection with the
       PROJECT as hereinafter stated.

        THE CONSULTANT SHALL, serve as the CITY'S Professional Representative
in all of the Phases of the PROJECT, and will give consultation and advice to the CITY
during the performance of his services as follows:

       WORK PLAN OUTLINE

       The work will consist of the following steps:
                                                       Statement of Understanding
0   0 0

     Background and Objectives
     The City of Muskegon owns, operates, and maintains a water treatment and delivery
     system that serves the City and four customer communities. The City wants to complete
     a water supply reliability study of the WTP, from the source water intake through the high
     service pumping system. The three major objectives are as follows:

     •    Meet the requirements of the Michigan Department of Environmental Quality
          (MDEQ) for a reliability study.

     •    Develop planning recommendations for specific facility issues as
          identified in the RFP.

     •    Conduct an organizational evaluation of WTP operations and staffing to support
          long-term efficiency, and optimize resources and staffing.

     Project Requirements
     The City is requesting engineering proposals to meet the objectives identified above.
     Based on FTC&H's knowledge of the WTP, review of the previous reliability study and
     sanitary survey, and discussions with the WTP superintendent, evaluations of the
     following elements are believed to be essential to performing a meaningful study for the
     City's use in planning the water system's future:

     •    The project management requirements include monthly progress reports and
          attendance at meetings with City staff. We anticipate there will be four general
          progress meetings during the course of the project.

     •    Background information will be made available and utilized for the study. The
          information required includes historical flow data, laboratory data, WTP drawings and
          specifications, and previous studies and reports.

     •    Accurate water use projections will serve as the basis for planning and implementing
          water system improvements - they are extremely important for planning purposes.
          Consequently, a methodology for determining future water demands must be
          implemented that can be updated easily and frequently. The methodology should
          incorporate more than one approach so comparisons can be made.

     •    Once demands have been identified, the supply system's ability to meet those
          demands will be evaluated. This will include an evaluation of all major unit processes,
          including the intake, low-lift pumping, flocculation and sedimentation, filtration, high-
          service pumping, and WTP storage. A structural and mechanical inspection of the
          1937 reservoir will be conducted as a part of these evaluations.

     •    Water quality data will be examined relative to meeting current and anticipated
          regulations. Parameters of particular interest include turbidity, halo-acetic acids, and
          trihalomethanes. Operational modifications to enhance treatment performance will be
          considered.

     •    Power supplies for the WTP will be evaluated relative to their capability to meet
          normal and emergency demands. We understand the WTP has a secondary power



                                                                                       frc&h
                                                      Statement of Understanding          page 2

000
      feed and a generator with automatic switchover. Use of the secondary power feed as
      a full standby power source (i.e. sufficient to provide 40-million gallons per day [MGD]
      capacity) may have cost ramifications due to the power company costs for
      maintaining it in full standby service mode. It is also noted that the reported
      capacities of the standby power water production capabilities appear to be
      projections that may not have been analyzed in any detail or fully tested. A detailed
      analysis of the WTP's power systems is needed to define the water production
      capacities while running off the secondary power source and while running off the
      generator source. These capacities can then be compared to the projected demands
      to determine the standby power system's sufficiency.

  •   Emergency supply capabilities will be examined. Interconnects with other systems
      also provide some redundant water supply capabilities. The need for additional
      sources will be considered.

  •   A pretreatment system performance evaluation will be made. Currently the WTP
      optimizes physical and chemical pretreatment, with the goal of enhancing settled
      water quality. Alternative chemicals, such as polyaluminum chlorides, will be
      considered for their effectiveness relative to turbidity reduction, color, taste and odor,
      and organic precursors; their cost effectiveness; and the impacts on sludge
      production and dewatering. Mixing power input, which can be varied, will also be
      considered.

  •   The filters are currently backwashed at a run time not exceeding 200 hours, and the
      backwash wastewater is recycled. The concept of increasing the run time to increase
      water production and power efficiencies will be evaluated. If it is deemed desirable, a
      testing protocol, which will likely utilize particle counters, will be developed. Filter to
      waste operations are also performed. The purpose of and need for adding flow
      meters to the filter to waste will be evaluated.

  •   The disinfection concentration time (CT} requirements are met for a capacity of up to
      28.5 MGD, but would not be met at the WTP capacity of 40 MGD. Baffling of the
      finished water storage tanks will increase CT by reducing short circuiting of the flows
      within the reservoirs.

  •   A chemical feed system evaluation will be conducted. The carbon feed system will be
      evaluated for any needed improvements. Corrections to eliminate a cross connection
      at the chlorine feed system (to separate raw water from finished water) and to
      provide a secondary overfeed protection for the fluoride system will be evaluated.

  •   The WTP residuals are currently dewatered in sludge drying beds. Although the beds
      have underdrains, they are not being used and the water is allowed to percolate
      through the soils. The sludge does not dewater as well as was hoped. Changes to
      the operations will be evaluated relative to the effectiveness of the dewatering
      operations. The impacts on sludge dewatering with changes to coagulants will also
      be considered as described above.

  •   A single intake is utilized for the raw water supply. The need for a second intake will
      be examined.


                                                                                     f1c&h
                                                       Statement of Understanding          page 3

000

  •   An organizational evaluation is desired that focuses on the recommendations for
      efficient operations and the optimization and sustainability of resources. The
      evaluation will consider organizational structure; position responsibilities;
      compensation; best practices; and staff retention, recruitment, and succession
      planning.

  •   Project deliverables include a report that summarizes the evaluations and provides
      prioritized recommendations for capital improvements. The report will be submitted in
      the form of eight hard copies and six compact discs (CDs). A draft copy of the report
      will be submitted within 90 days after the contract award. Allowing for 15 days of
      review by the City, the final version will be submitted within 120 days after contract
      award.

  FTC&H, and our sub-consultant EMA, understand the scope of work, are prepared to
  provide the City the highest level of service, and will deliver a reliability study report that
  will be of significant use to the City of Muskegon.




                                                                                       fICWl
                                  Project Approach - Water Treatment Plant
0   0 0                                                   Reliability Study


        Introduction
        In October 2002, a reliability study of the City's water system was completed.
        Subsequently, the WTP underwent design improvements and the expansion was
        completed in 2005. The MDEQ completed a sanitary survey of the WTP and distribution
        system in June 2006. The sanitary survey identified several areas of concern that have
        been included in the project requirements of the reliability study.

        Our statement of understanding defines the project's components. The following section
        presents the approaches and methods that will be used to accomplish the work. They
        have been broken up into two basic elements - Plant Reliability and Plant Organizational
        Evaluation.

        Plant Reliability
        Project Kickoff
        A kickoff meeting will be held to introduce the project team and discuss the project
        elements. FTC&H's team will consist of a project manager, water treatment process
        engineers, a structural engineer and an electrical engineer. FTC&H's subconsultant will
        not be physically present at the kickoff meeting, but will be introduced at a subsequent
        meeting.

        During the kickoff meeting, the project elements will be discussed, and a tour of the
        facilities will be conducted. A list of desired information will be developed.

        Flow Projections
        Historical water use trends will be used as one indication of potential future use. Trends
        and projections for population and percentage served for the various communities will
        also be examined. From this information, projections will be made for future average day,
        maximum day, and peak hour demands. Although State rules require only a 10-year
        projection, our analysis will be based on a period of at least 20 years.

        The methodologies used will be similar to those used in the October 2002 Reliability
        Study Update, taking into account the potential for new service areas in addition to
        expansion within existing service areas. It is anticipated the City will review and concur
        with the developed flow projections before the study can proceed any further.

        Reliability Evaluation
        The specific reliability requirements of the Part 12 Rules of the Michigan Safe Drinking
        Water Act, as they pertain to the water intake, the WTP, and the high service pumping
        system, will be addressed. These include the adequacy and capacity of the system
        components to meet the projected water demands, and to supply water with an
        interruption of power.

        Included in this evaluation is an inspection of the 1937 finished water storage tank by
    '   qualified structural and process engineers. It is assumed this tank can be drained for
        inspection.




                                                                                         frc&h
                                                Project Approach - Water Treatment Plant
                                                                        Reliability Study
000                                                                                      page2


  Also included is an evaluation of the power reliability and a determination of the water
  treatment and pumping capacity under various power conditions.

  Facility Evaluation and Planning
  Additional project components of interest to the City and the MDEQ will be evaluated.
  Many of these items were identified as potential deficiencies or items of concern in the
  MDEQ's sanitary survey. Several of the items will require onsite inspections reviewing
  existing conditions to determine corrective actions. Specifically, the following list of items
  will be evaluated:

  •   Pretreatment performance: Mixing and flocculation efficiencies will be evaluated with
      consideration given to the need to make power and speed adjustments. If deemed
      favorable, a protocol will be developed to systematically make changes and monitor
      the results by examining treatment performance using settled turbidity, particle
      counting, and filter run times to measure the efficacy. Alternative coagulant will also
      be evaluated. Research will be conducted on various products and their
      effectiveness at other plants with similar operating conditions.

  •   Filtration Performance: Optimization of the filtration operations is a major goal for the
      WTP. Operating data will be examined, and backwashing operations will be observed
      in order to gain an understanding of the conditions, as reported in the sanitary
      survey. Recommendations will be provided relative to optimizing air and water
      backwashing rates, durations, and procedures. Additionally, research will be
      conducted relative to filter run times and the cost savings of longer run times will be
      considered. If longer filter run times are deemed technically feasible and desirable, a
      pilot testing protocol will be developed likely using particle counting and turbidity
      profiling to support the longer runs. FTC&H has a very good record working with the
      MDEQ to develop testing protocols of this nature.

  •   CT Requirements: FTC&H will carefully check the MDEQ's CT calculations to verify
      their conclusions. One obvious improvement can be achieved by baffiing the finished
      water storage tank. FTC&H has successfully evaluated and implemented
      improvements of this type at other WTPs.

  •   Filter to Waste Metering: The need for metering filter to waste as identified in the
      sanitary survey will be evaluated and start with an interview of the MDEQ's district
      engineer. FTC&H has the mutual respect of, and a great working relationship with,
      the MDEQ's district office staff. FTC&H will consider the regulatory need and the
      operational benefits of filter to waste metering to develop recommendations in that
      regard. If filter to waste metering is deemed necessary, we will develop preliminary
      recommendations relative to the implement thereof.

  •   Carbon Feed System: An evaluation of the carbon feed system will be made to
      consider whether any improvements are necessary. The carbon feed system is only
      rarely used for taste and odor control.

  •   Chemical Feed System Cross Connection Control: At least one cross connection
      exists on the chlorination system piping where raw water feed points are connected


                                                                                      frc&h
                                               Project Approach - Water Treatment Plant
                                                                       Reliability Study
000                                                                               page 3


      on common piping to finished water feed points. Recommendations for the means to
      eliminate this cross connection will be made.

  •   Fluoride System Overfeed Protection: Redundant overfeed protection for fluoride
      feed systems is a common requirement of the MDEQ. The existing controls will be
      evaluated and a recommendation for the means to provide this redundant control will
      be made.
  •   Residuals Drying and Handling: Recent improvements were made to incorporate
      sludge drying beds, however the performance of these beds is not considered
      optimized and the sludge is not considered ideally dewatered. FTC&H will examine
      the design criteria and loadings, and develop recommendations for alternate
      operational procedures, or other capital improvements that will result in an optimal
      sludge dewatering operation.

  •   Source Water (Intake) Redundancy: The need for a redundant intake was presented
      in the sanitary survey. Very few plants have more than one intake, but the trend to
      have more than one is gaining. FTC&H will examine the existing design, and develop
      alternatives for an emergency or alternate supply.

  •   SCADA system will be evaluated to evaluate what information is collected, how that
      data is used, and what actions are taken inn response to variations in flows,
      turbidities, levels and concentrations.

  Water Filtration Plant Organizational Evaluation
  FTC&H will contract with EMA for this task, who has successfully partnered with FTC&H
  on other similar projects. The approach for this task is as follows:

  •   EMA will prepare a list of existing information needed, such as job titles, duties and
      salaries, staffing plan, treatment plant budgets, descriptions of plant O&M activities,
      list of process equipment to be maintained, list of analyses conducted, monthly
      operating reports, performance measures, SCADA and control system functionalities,
      maintenance activities, etc. The information received will be reviewed prior to a site
      assessment visit.
  •   FTC&H will introduce EMA to WTP staff and the Department of Public Works (DPW)
      at the beginning of their site assessment visit. Interviews will be conducted with
      various WTP staff, the superintendent, and the DPW Director or Assistant Director to
      learn more about the system and department operations. EMA will also determine
      which support services the WTP obtains from the DPW, and which services they
      perform themselves. Examples of these services could include procurement,
      financial, and asset management services.

  •   From the information gathered and on the basis of the site visit and interviews, EMA
      will develop recommendations for improving operations and maintaining them into the
      future. Much of this will be based on the best practices used at other similar facilities.
      This will include recommendations related to the organizational structure at the WTP;
      comprehensive maintenance management systems; job responsibilities and
      compensation; and staff retention, recruitment, and succession.

                                                                                    frc&h
                                              Project Approach - Water Treatment Plant
                                                                      Reliability Study
000                                                                              page4


  •   A Microsoft® PowerPoint presentation will be prepared to summarize this evaluation,
      and will be presented to the WTP Superintendent and DPW officials.

  A summary report will bring all of the project elements together. The report will provide
  capital improvement recommendations grouped into the following prioritization:
  immediate (less than five years), short term (five to ten years) and long term (more than
  ten years).

  A draft copy of the report will be issued for review by the plant and DPW staff. FTC&H will
  review any comments and incorporate revisions to the report based on the comments, as
  appropriate, into the final report.




                                                                                  frc&h
                                                                                                                                                                                          Page 1 of 1

Task Hour Budget Projections
                                                  Associate   Associate   Senior   Staff    Sr. Assoc.   Sr. Assoc.
                                                  Project     Process     Process Process Electrical     Structural   Typing/             Principal   FTC&H FTC&H   Outside       Total
                                                  Manager     Engineer    Engineer Engineer Engineer     Engineer     Clerical   Graphics QA/QC       Hours Expense Services      Cost
                                  Billing Rates      $138        $138       $104      $76       $151        $151        $59         $69      $175
Task#    Task Name
   1     Kickoff                                      4                       4                                                                          8      $100                $1,068
   2     Flow Projections                             3                       4       20                                  1                    1        29      $100                $2,684
   3     Reliability Evaluations                      4                      20                  12           8           1          2                  47      $100                $5,949
  4a     Pretreatment Performance                     2           8                                                       1                    1        12      $100                $1,714
  4b     Filtration Performance                       2           8                                                       1                    1        12      $100                $1,714
  4c     CT Requirements                              1                      8                                            1                             10      $100                $1,129
  4d     Filter to Waste Metering                     1                      4                                            1          2                   8      $100                  $851
  4e     Carbon Feed System                           1                      6                                            1          1                   9      $100                  $990
  4f     Chemical Feed Cross Connection               1                      6                                            1          2                  10      $100                $1,059
  4g     Fluoride Overfeed Protection                 1                      3                   3                        1          1                   9      $100                $1,131
  4h     Residuals Drying and Handling                2           8          8                                            1          2         1        22      $100                $2,684
   4i    Source Water Intake Redundancy               1                      4                                            1          2                   8      $100                  $851
   4j    SCADA System Evaluation                      1                      2                   5                        1                              9      $100                $1,260
   5     Organizational Evaluation                    4                                                                                        2         6      $100    $16,800    $17,8024-
   6     Summary Report                               4           4          8        12         4            2           8          4         2        48      $500                $5,352

         TOTALS                                       32          28         77       32         24          10          20         16         8       247     $1,900   $16,800    $46,238

Notes:   1.   FTC&H's standard billing rates are based on approximatetly 185% overhead and 15% profit.
         2.   Outside Service billed through FTC&H include a 5% contracting/processing fee.
         3.   EMA's standard billing rates are based on approximately 196% overhead and 15% profit.
         4.   EMA's services are based on the following projections:
                    Position                        Rate       Hours       Cost
                    Principal Consultant            $211          8        $1,688
                    Senior Project Manager          $183         64       $11,712
                    Office Support                   $55         10          $550
                    Expenses                                               $2,050
                    Total                                                 $16,000




                                                                                              f1c&h
GENERAL PROVISIONS

    The CONSULTANT shall:

     1.   Follow standard accounting practices and permit the CITY to inspect its
          PROJECT books and records at any reasonable time. Such records are to be
          kept available for three (3) years from the date of the final payment for
          work conducted under this Agreement.

    2.    Have in its employ a sufficient number of qualified employees available to
          complete the PROJECT in accordance with the schedule established upon
          the authorization of the services as outlined herein.

    3.    Show evidence of Workmen's Compensation Insurance, said insurance to be
          required by law. Maintain and show evidence of Professional Liability
          Insurance in the amount of $500,000, maintain General Liability Insurance
          with a limit ofliability not less than $500,000, and name the CITY OF
          MUSKEGON as additional insured with policy(ies) not being cancelled or
          materially altered without at least thirty (30) days notice to the CITY.

    4.    Commence work on the PROJECT as set forth in this Agreement only upon
          receipt of written notice from the CITY.

    5.    During the performance of the services herein provided for, be responsible
          for any loss or damage to the documents, hereinafter enumerated as
          belonging to the CITY, while they are in its possession. Restoration oflost
          or damaged documents shall be at the CONSULTANT'S expense.

    6.    The CONSULTANT will perform all work on this project with its own
          employees except as noted herein, or as approved by the CITY.

    7. CITY INCOME TAX WITHHOLDING. The CONSULTANT shall withhold
       Muskegon City income taxes from each and every employee who is subject to
       same, and shall pay the income tax due, if any. CONSULTANT shall further
       require the same of each subconsultant or other party with whom
       CONSULTANT works or from whom CONSULTANT obtains goods or
       services for the project. Payroll submissions required by this agreement shall
       include full information showing said withholding. The City may withhold
       payments otherwise due to the CONSULTANT to assure compliance with this
       agreement or cure noncompliance.

    8. The consultant recognizers that time is of the essences on this project and
       therefore accepts the responsibilities to ensure compliance with the attached
           schedule of tasks, failure by the consultant or any other parties he hires will
           result in the assessment ofliquidated damages equal to $300 per calendar day.




IL   THE CITY WILL:

     A.   Provide to CONSULTANT existing data as it is available from its files.

     B.   Pay for and in consideration of the services rendered by the CONSULTANT in
          carrying out the PROJECT on the basis of costs as outlined in the proposal
          under the sections entitled "ENGINEERING SERVICES WORK PLAN" and
          "CURRENT FEE SCHEDULE" shall not exceed $46,238.00. Any increase in
          the amount to be paid to the CONSULTANT shall be by amendment to this
          Agreement.

     C. Determine actual costs for the PROJECT work required and performed in
         accordance with the following terms:

          I.   Direct Salary Costs: Actual Direct Salary costs of members of the firm
               and staff personnel on the basis of salary, on an hourly basis (without
               markup) actually expended for said personnel for the time such personnel
               are directly utilized on the PROJECT.

          2.   Other Direct Costs: Actual cost of other material and services as may be
               required hereunder but which are not normally provided as part of the
               overhead of the CONSULTANT. All actual costs shall be itemized and
               certified as paid to specifically named firms or individuals, and shall be
               supported by proper receipts. Examples of items normally treated as
               direct costs are as follows.

               Computer services, travel, transportation, printing and telephone costs
               related to the PROJECT work performed. Engineering services (by
               others) such as surveys, professional engineering services, etc., and items
               other than engineering services related to the PROJECT.

          3.   Overhead, Indirect Costs and Profit: The overhead and indirect costs
               incurred by the CONSULTANT during performance of the PROJECT
               work. The amount of overhead, indirect costs and profit payment,
               including payroll overhead, will be calculated as a percentage of all direct
               salary costs related to staff personnel. Overhead and indirect costs shall
               include those costs which, because of the incurrence for common or joint
               objectives are not readily subject to treatment as a direct cost. The
               percentage rate, for Payroll Overhead (Direct Salary Costs), Firm
                      Overhead and Profit, which will be applied to direct labor costs for
                      progress payments, various for the different tasks (billing will be based
                      on the attached hourly schedule).

                      It is agreed that this rate is the final overhead rate and will be used for all
                      work related to the PROJECT.

       D.        Make payments to the CONSULTANT in accordance with the following
                 procedures:

                 1.   Progress payments shall be made for reimbursement of amount earned to
                      date and shall include direct salary costs, other direct costs, calculated
                      amounts for overhead, indirect costs and profit using the aforementioned
                      rate.

                 2.   Partial payments will be made upon the submissions by the
                      CONSULTANT of an Invoice Voucher, accompanied by properly
                      completed reporting forms and such other evidence of progress as may be
                      required by the CITY. Partial payments shall be made only once a month.


                 3.   Final billing under this contract shall be submitted in a timely manner but
                      not 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. Final payment will be made upon completion satisfactory to the
                      CITY.

       E.        If work on the Agreement is terminated before completion, pay the
                 CONSULTANT actual costs incurred for the work up to the time of
                 termination of this Agreement, compensate the CONSULTANT in full for all
                 overhead costs defined above and prorated profit on work completed. The
                 aforesaid payment shall be an amount which can be established by the
                 CONSULTANT from his accounts and records, and verified by the CITY. In
                 no case shall the amount paid to the CONSULTANT for partial completion of
                 work under this Agreement exceed the amount the CONSULTANT would
                 receive had all work be completed.

III.    IT IS FURTHER AGREED THAT:

            A.    Upon completion or termination of this Agreement, all documents prepared
                  by the CONSULTANT, including tracings, drawings, estimates,
                  specifications, field notes, investigations, studies, etc., as instruments of
                  service, shall become the property of the CITY. The CONSULTANT may
                  keep a copy of materials developed through this contract.
B.   No portion of the PROJECT work, hereto before defined, shall be sublet,
     assigned, or otherwise disposed of except as herein provided or with the prior
     written consent of the CITY. Consent to sublet, assign or otherwise dispose
     of any portion of said work shall not be construed to relieve the
     CONSULTANT of any responsibility for the fulfillment of this Agreement.

C.   All questions which may arise as to the quality and acceptability of work, the
     manner of performance and rate of progress of work, and the interpretation
     of plans and specifications shall be addressed by the CONSULTANT to the
     satisfaction of the CITY. All questions as to the satisfactory completion
     shall be decided by the CITY.

D. Any change in work to be performed by the CONSULTANT involving extra
   compensation must be authorized in writing by the CITY prior to the
   performance thereof by the CONSULTANT.

E.   The CONSULTANT warrants it has not employed or retained any company
     or person other than bona fide employees working solely for the
     CONSULTANT, to solicit or secure this Agreement, and that it has not paid
     or agreed to pay any company or person, other than bona fide employees
     working solely for the CONSULTANT, any fee, commission, percentage,
     brokerage fee, gifts, or any other consideration, contingent upon, or resulting
     from the award or making of the Agreement. For breach or violation of this
     warranty, the CITY shall have the right to annul this Agreement without
     liability or, at its discretion, to deduct from the contract price or
     consideration, or otherwise recover, the full amount of such fee, commission,
     percentage, brokerage fee, gift or contingent fee.

F.   The CONSULTANT specifically agrees that in the performance of
     engineering services herein enumerated, by him, or by an approved
     subcontractor, or anyone acting in its behalf, they will comply with any and
     all State, Federal, and Local statutes, ordinances and regulations and obtain
     all permits that are applicable to the entry into and the performance of this
     Agreement.

G. No charges or claims for damages shall be made by the CONSULTANT for
   delays or hindrances from any cause whatsoever during the progress of any
   portions of the services specified in this Agreement, except as hereinafter
   provided.

         In case of a substantial delay on the part of the CITY in providing to the
         CONSULTANT access to the site, necessary information or approval to
         proceed with the work, resulting, through no fault of the
         CONSULTANT, in delays of such extent as to require the
         CONSULTANT to perform his work under changed conditions not
          contemplated by the parties, the CITY will provide supplemental
          compensation limited to increased costs incurred as a direct result of
          such delays. Any claim of supplemental compensation must be in
          writing and accompanied by substantiating data. Authorization of such
          supplemental compensation shall be by an amendment to this
          Agreement. When delays are caused by circumstances or conditions
          beyond the control of the CONSULTANT, as determined by the CITY,
          the CONSULTANT shall be granted an extension of time for such
          reasonable period as may be mutually agreed upon between the parties,
          it being understood, however, that the permitting of the CONSULTANT
          to proceed to complete any services, or part of them, after the date to
          which the time of completion may have been extended, shall in no way
          operate as a waiver on the part of the CITY of any of its rights herein set
          forth.

H.   In case the CONSULTANT deems extra compensation will be due them for
     work or materials not clearly covered in this Agreement, or not ordered by
     the CITY as a change, or due to changed conditions, the CONSULTANT
     shall notify the CITY in writing of his intention to make claim for such extra
     compensation before they begin such work.

     Failure on the part of the CONSULTANT to give such notification will
     constitute a waiver of the claim for such extra compensation. The filing of
     such notice by the CONSULTANT shall not in any ways be construed to
     establish the validity of the claim. Such extra compensation shall be
     provided only by amendment to this Agreement.

I.   The CONSULTANT agrees to comply with the following insurance and
     indenmity requirements:

     I.   Hold Harmless Agreements: To the fullest extent permitted by law,
          CONSULTANT agrees to defend, pay in behalf of, indenmify, and hold
          harmless the CITY, its elected and appointed officials, employees,
          volunteers, and others working on behalf of the CITY against any and
          all claims, demands, suits, or loss, including any costs connected
          therewith, and for any damages which may be asserted, claimed or
          recovered against or form the CITY, its elected and appointed officials,
          employees, volunteers, or others working on behalf of the CITY, by
          reason of personal injury, including bodily injury and death, property
          damage, including loss of use thereof, and/or the effects of or release or
          toxic and/or hazardous material which arises out of the negligent acts
          and or omission of the engineer. The obligation to defend and hold
          harmless extends to CONSULTANT'S employees, agents,
          subcontractors, assigns and successors.
2.   Consultant Insurance Requirements: CONSULTANT shall not
     commence work under this contract until obtaining the insurance
     required under this paragraph. All coverages shall be with insurance
     companies licensed and admitted to do business in the State of
     Michigan and Best Rated A VIII. All coverage shall be with insurance
     carriers acceptable to the CITY.

3.   Workers' Compensation Insurance: The CONSULTANT shall procure
     and maintain during the life of this contract, Workers' Compensation
     Insurance, including Employer's Liability coverage, in accordance with
     all applicable Statutes of the State of Michigan.

4.   General Liability Insurance: The CONSULTANT 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
     $500.000 per occurrence and/or aggregate combined single limit,
     Personal Injury, Bodily Injury and Property Damage. Coverage shall
     include the following extensions: (a) Contractual Liability; (b) Products
     and Completed Operations; (c) Independent Contractor's Coverage; (d)
     Broad Form General Liability Extensions or equivalent.

5.   Motor Vehicle Liability: The CONSULTANT shall procure and
     maintain during the life of this contract Motor Vehicle Liability
     Insurance, including Michigan No-Fault Coverages, with limits of
     liability of not less than $500.000 per occurrence or combined single
     limit Bodily Injury and Property Damage. Coverage shall include all
     owned vehicles, all non-owned vehicles and all hired vehicles.

6.   Professional Liability Insurance: The CONSULTANT shall procure and
     maintain during the life of this contract and during the performance of
     all services, Professional Liability Insurance covering all performances
     from the beginning of the Consultant's services on a "claims made
     basis" and shall maintain coverage from commence of this contract until
     six (6) months following completion of the Consultant's work with
     limits ofliability not less than $500.000 per occurrence.

7.   Additional Insured: Commercial General Liability and Motor Vehicle
     Liability Insurance, as described above, shall include an endorsement
     stating the following shall be "Additional Insured": The CITY OF
     MUSKEGON, all elected and appointed officials, all employees and
     volunteers, all boards, commissions and/or authorities and board
     members, including employees and volunteers thereof.

8.   Cancellation Notice: Workers' Compensation Insurance, General
     Liability Insurance, Motor Vehicle Liability Insurance, and Professional
          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
          ENGINEERING DEPARTMENT.

     9.   Proof of Insurance Coverage: The CONSULTANT shall provide the
          CITY at the time of the contracts are returned by him for execution,
          certificates and policies as listed below:

              (a)   Two (2) copies of Certificate oflnsurance for Workers'
                    Compensation Insurance.

              (b)   Two (2) copies of Certificate of Insurance for Commercial
                    General Liability Insurance.

              (c)   Two (2) copies of Certificate of Insurance for Vehicle
                    Liability Insurance.

              (d)   Two (2) copies of Certificate of Insurance for Professional
                    Liability Insurance.

              (e)   If so requested, certified copies of all policies mentioned
                    above will be furnished.

             If any of the above coverages expire during the term of this contract,
             the CONSULTANT shall deliver renewal certificates and/or policies
             to the CITY at least ten (I 0) days prior to the expiration date.

J.   This Agreement shall be terminated upon advisement to the CONSULTANT
     by the CITY that the PROJECT work is completed and accepted, with the
     exception that the Professional Liability Insurance at the identified limits of
     coverage shall remain in effect for a period of six (6) months following the
     date of said advisement of termination.

K.   Upon execution of this Agreement by the parties hereto, the same shall
     become binding on the parties hereto and their successors and assigns.
        IN WITNESS WHEREOF, the parties hereto have set their hands and seals by
their duly authorized agents and representatives the day and year first above written.



                        FISHBECK, THOMPSON, CARR & HUBER, INC.



~~                                              2:t:i:!t4::1r                              7


Witness
                                                  -~ ?~     V:ce ;/zes;Dc-;vT


                                      CITY OF MUSKEGON



Witness l/ndt1        lot-t-rr



                                                Ann Marie Becker (Clerk)            Date
                                                                                                                                                              DATE(MMIDDNYYY)
    ACORD_                      CERTIFICATE OF LIABILITY INSURANCE                                                OPID .~
                                                                                                                FISHB-1       08/02/07
PRODUCER                                                                            THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATIO
                                                                                    ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
Professional Underwriters, Inc                                                      HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
39475 13 Mile Road, Suite 106                                                       ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW
Novi MI 48377
Phone:248-553-8300 Fax:248-553-8305                                               INSURERS AFFORDING COVERAGE                                                   NAIC#
INSURED                                                                           INSURER A       Charter Oak Fire Insurance Co.
                                                                                  INSURER B;      Travelers Property Casualty
                    Fishbeck, Thompson, Carr                                      INSURERC:       Phoenix Insurance Co.
                    & Huber, Inc.
                    1515 Arboretum Dr.  SE                                        INSURER D:      Continental Casualty Company                                   20443
                    Grand Rapids, MI 49546
                                                                                  INSURER E:

COVERAGES
 THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOlWITHSTANDING
 ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
 MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDfflONS OF SUCH
 POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

LTR   NSRr              TYPE OF INSURANCE                    POLICY NUMBER    poi~rJ~rJ8iW1E P8l!,&Y,~W,h~~qN                                     LIMITS

             -
                 GENERAL LIABILITY                                                                                        EACH OCCURRENCE                  , 1,000,000
A              X     COMMERCIAL GENERAL LIABILITY       630-4985B626              11/01/06             11/01/07 PRE'MIBEs /Ea occurmce\                    ,1,000,000
             -

             -     D     CLAIMS MADE      [i] OCCUR                                                                       MED EXP (Any one person)         , 10,000
                                                                                                                          PERSONAL & ADV INJURY            ,1,000,000
             -
                                                                                                                          GENERAL AGGREGATE                ,2,000.000
             -
                 GEN'LAGGREGATE LIMIT APPLIES PER:                                                                        PRODUCTS • COMP/OP AGG           ,2,000,000
             x7 POLICY neeo.
                         JECT               nLOC
                 AUTOMOBILE LIABILITY
             -                                                                                                            COMBINED SINGLE LIMIT
                                                                                                                          (Ea accident)                    , 1,000,000
A            -X      ANY AUTO                           810-4985B626              11/01/06             11/01/07
                     ALL OWNED AUTOS                                                                                      BOD!L Y INJURY
             -                                                                                                                                             $
                                                                                                                          (Par person)
                     SCHEDULED IVTOS
             -
                     HIREOAUT03                                                                                           BOOIL Y INJURY
             -                                                                                                                                             $
                                                                                                                          (Par accident)
                     NON.OWNED AUTOS
             -

             -                                                                                                            PROPERTY DAMAGE
                                                                                                                          (Per accident)
                                                                                                                                                           s
                 GARAGE LIABILITY                                                                                         AUTO ONLY· EA ACCIDENT           s
                                                                                                                                               EAACC       $
             1ANYAUTO                                                                                                     OTHER TH6.N
                                                                                                                          ALITOONLY:
                                                                                                                                                  AGG      $
                                                                                                                                                          s 5,000,000
B            ~OCCUR               •
                 EXCESS/UMBREUA LIABILITY

                                          CLAIMS MADE   CUP 4985B626              11/01/06             11/01/07
                                                                                                                          EACH OCCURRENCE

                                                                                                                          AGGREGA.TE                      15,000,000
                                                                                                                                                           $

             1       DEDUCTIBLE                                                                                                                           $

                     RETENTION        $                                                                                                                    $

      WORKERS CCt.'IPENSATION ANO                                                                                         x lrORY"LIM1'r'f I     l"'ei{
      EMPLOYERS' LIABILITY
C     ANY PROPR\ETOR/PARTNERIEXECUTWE
                                                        UB 4985B626               11/01/06             11/01/07           E.l. EACH ACCIDENT              1 500,000
      OFFICER/MEMBER EXCLUDED?                                                                                            E.l. DISEASE· EA EMPLOYEI       1 500,000
             5
      ~i~t~L ~~~s16~s   below                                                                                             E.l. DISEASE· POLICY LIMIT      I 500,000
      OTHER

D     ARCH/ENG PROF LIAB                                AEH 25-403-80-73          10/31/06             10/31/07                  1,000,000                     PER CLAIM
      SUBJ TO DEDUCTIBLE                                AS STATED ON POLICY                                                      1,000,000                     AGGREGATE
DESCRIPTION OF OPERATIONS/ LOCATIONS /VEHICLES/ EXCLUSIONS ADDEO BY ENDORSEMENT/ SPECIAL PROVISIONS
The City of Muskegon, all elected and appointed officials, all employees and
volunteers, all boards, commissions and/or authorities and board members,
including employees and volunteers thereof are named as additional insured
with respect to the General Liability as well as the Auto Liability or
Umbrella. City of Muskegon Water Filtration Plant Reliability Study.
CERTIFICATE HOLDER                                                                CANCELLATION
                                                                        CITOMUl    SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION

                                                                                   DATE THEREOF, THE ISSUING INSURER WILL RIISE          8RT8 MAIL        ;!Q_    DAYS WRITTEN
                    City of Muskegon                                               NOTICE TO THE CERTIFICATE HOLDER NAMED ID THE LEFT, li'IWT F•ll:<YRE "fQ D8 !ii8 !iilb1sll..
                    Engineering Department                                         M«POSF MO ORI 'GOTIOM CR! 1091' 'P( CF OIP{ KltJg b'POII TIit lll!ii!JRGR, rra • 6GIFFS 0R
                    1900 Beech Street
                    Muskegon MI 49441                                                  i;;,..1•"''"""'"-'li&>
                                                                                  .,~,.•<><Pn.,,aa,
                                                                                       ..


ACORD 25 (2001/08)                                                                                                                         © ACORD CORPORATION 1
Date:       07/24/07
To:         Honorable Mayor and City Commission

From:       Cemetery
RE:         Well installation




SUMMARY OF REQUEST:

Authorize staff to enter into an agreement with Brass-Mar Water Wells Inc. out
of 13427 Fruit Ridge, Kent City, since they were the lowest responsible bidder
with a bid price of $25,043.00.



FINANCIAL IMPACT:

Cost of drill/installing one well of $25,043.00



BUDGET ACTION REQUIRED:

None.



STAFF RECOMMENDATION:

Authorize staff to enter into an agreement with Brass-Mar Water Wells Inc.
Memorandum
To:     Honorable Mayor and City Commissioners
From: Cemetery
Date: 07/24/07
Re:     Well installation



    The Cemetery Department has been looking at the possibility of installing an
irrigation well to help lower the cost of watering Restlawn Cemetery. Over the last
two years, the cost to irrigate has risen to over $36,000.00. The cost to install the
well that meets our specifications is $25,043.00. We estimate the cost to operate this
system will be between $1,500.00 and $3,000.00 annually.

    We requested quotes from 9 area well drillers and received two responses.
Attached is a summary of the bids.

   In accordance with established policy, we are requesting pe1mission to authorize
Brass-Mar Water Wells Inc. to install a well to irrigate Restlawn Cemetery.




                                                                                         1
   Brass-Mar Water Wells            Leo Reigler
      134_27 Fruit Ridge          175.W Main St.
Kent Citl,' M_ichigan 49330   Walkerville.• Mi 49459

         $25,043.00                       $36,567.50


                                                       ··~
                                      CITY OF MUSKEGON

                     AGREEMENT FOR SERVICES OR CONSTRUCTION
                              Small and Limited Projects

THIS IS AN AGREEMENT between the CITY OF MUSKEGON ("City"), 933 Terrace Street,
Muskegon, Michigan, and Brass-Mar Wells ("Contractor''),
of Kent City , Michigan, for a small or limited project, and is made in the following terms:


Agreement and Performance


Contractor agrees to perform and supply all the services and materials set forth in the
Statement of Work attached t.o this agreement, ("Performance").       Contractor's performance
shall be accomplished in good and workmanlike manner, to the satisfaction of the City.


Price $25,043.00


Contractor will perform as set forth above for the complete contract price of $25,043.00


Conditions and Covenants


Contractor will comply with all laws, rules and regulations of the City, and any other local
government of the State of Michigan and the United States Government. Contractor will
supply insurance as required by separate written document, naming the City as an additional
insured, if appropriate, and shall carry such additional insurance coverage's as are required by
the City. Contractor shall hold the City harmless against any and all claims for damages or
costs made against the City arising from Contractor's performance, including all costs of
defense, attorneys' fees, expenses and the amount of any damage determined against the
City.


Contractor certifies that it is eligible for performance of government work and has not been
cited or listed for failure to comply with Wage and Hour or prevailing wage regulations of the


7/31/2007
CITY OF MUSKEGON                                                                        Page 2 of 3



State of Michigan or the Federal Government.


Termination and Cancellation


This contract may be terminated for failure to perform in accordance herewith, and Contractor
shall be liable for normal contractual remedies available to the City.


Nondiscrimination Compliance

Contractor agrees to comply with all nondiscrimination laws, rules and regulations and policies
of the City, State and Federal Governments including, but not limited to, the provisions of
Executive Order
11246, Affirmative Action Requirements for Disabled Veterans and Veterans of the Viet Nam
Era and
for Handicapped Workers. If required by the City and appropriate for the services in this
contract,
Contractor shall comply with City oversight procedures. The provisions of all said policies,
rules, executive orders and laws regarding nondiscrimination and affirmative action are
available from the City by contacting the Affirmative Action Director of the City, City Hall, 933
Terrace Street, Muskegon, Michigan, telephone 724-6703. The City may supply a copy with
this contract in its discretion.


The parties agree to performance of this contract by signing below. The effective date of this
agreement is July 31. 2007.


Witnesses:




                                                            CITY OF MUSKEGON


                                                       By

7/31/2007
CITY OF MUSKEGON                                                                Page 3 of3




Contract Between
City of Muskegon
And
Brass-Mar Wells




                                                               #
                                                          ,,;,-?(                .
STATEMENT OF WORK: Installation and set up of an 80' deep well capable of supplying 225

gpm at 85 to 95 ps; P" ProposalFoon '"bmitted 07110/07.



                                                                         j)i{;,,--
                                                          Contracto:.tj,~ /


                                                          c;ty   £   .£:26
                                                                 (Departm   t Head)




7/31/2007
  From: Scott Melton To: City of Muskegon/Larry DeCou                                          Date: 8/27/2007 Time: 3:19:42 PM                                                  Page 2 of2



                                                                                                                                                                      DATE (MM/00/YVVV)
     ACORDn                            CERTIFICATE OF LIABILITY INSURANCE                                                   OPID C~
                                                                                                                         BRASS-1        08/27/07
PRODUCER                                                                                    THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
                                                                                            ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
Melton-McFadden Agency                                                                      HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
P.O. Box 9                                                                                  ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Belding MI 48809-0009
Phnnp·~l~-714-n~,n                                                                       IN,SUl(cl(,S Al-nlKUIN(; CUVcl(A(jc                                              NAIC   ~

INSURED                                                                                  lhlfllllliin   n   n11t1••!!1• unlm • l   T•1m11•- • n,
                                                                                                                                                                           ,n,,,
                                                                                         INSURERS:
                                                                                         INSURER C
                    ~§t~~-~riiVaila ~ells. Inc.
                                                                                         INSURER D·
                    Kent City MI 49j30
                                                                                         INSURERE:
COVERAGES
  THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
  ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
  MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH


       ,~--
  POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

LTI<                        TYPE OF JNSURANCE                      POLICY NUMBER     DATE IMMfDDNV\           DATE IMM/00NV1                                 LIMITS

               GENERAL LIABILITY                                                                                                    EACH OCCURRENCE                   11000000
              1--                                                                                                                   C          ,v
A              X      COMMERCIAL GENER.Al.. LI.ABILITY        CPP9676546                 04/22/07               04/22/08            PREMISES (Ea occurenceJ           1100000
                           I CLAIMS MADE       [!] OCCUR                                                                            MED EXP (Any one person)          15000
                                                                                                                                    PERSONAL & AfJV INJURY            11000000
              -
                                                                                                                                    GENER.Al.. AGGREGAlE              12000000
              -
                  GEN'L AGGREGATE LIMIT APPLIES PER:                                                                                PRODUCTS - COMP/OP AGG            12000000
              i7 POLICY nPR~
                          JECT                   n,oc
                  AlJTOMOBILE LIABILnY                                                                                              COMBINED SINGLE LIMIT
              -                                                                                                                     (Ea accident)                     I 1000000
                                                              ACV9676547                 04/22/07               04/22/08
A             -X
                      ANY AUTO
                      N._L OWNED AUTOS
              -       SCHEDULED AUTOS
                                                                                                                                     BODILY INJURY
                                                                                                                                     (Per person)                     I
              -        HIRED AUTOS                                                                                                   BODILY INJURY
              ~
                                                                                                                                     (Per accident)                   I
                       NON-OWNED AUTOS
              ~


                                                                                                                                     PROPERTY DAMAGE
              f-
                                                                                                                                     (Per accident)                   I


                  i~ij~ii ,m11111T                                                                                                   ~rr~ rnn rnrn»mrr I
              QoccuR                   •       CLAIMS MA.DE                                                                          AGGREGATE
                                                                                                                                                                      I

                                                                                                                                                                      I

              H        DEDUCTIBLE
                       RElENTION           I
                                                                                                                                                                      I
                                                                                                                                                                      I
        WORKERS COMPENSATION ANO                                                                                                          !TORY LIMITS   I rER
        EMPLOYERS' LIABIUTV
 A                                                            WC9676548                  04/22/07                04/22/08            EL EACH ACCIDENT                 1500000
        MJY PROPRIETOR/PARTNER/EXECUTIVE
        OFFICER/MEMBER EXCLUDED?                                                                                                     EL DISEASE EA EMPLOYEE           I 500000
        If \IP<\. riPc;rrihP {10r1Pr                                                                                                                                  n rnnnnn
                                                                                                                                     r1   ninrrnr     nn1m1111111T
        OTHER




DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES/ EXCLUSIONS ADDEO BY ENDORSEMENT J SPECIAL PROVISIONS
 Additional Insured:                                 City of Muskegon, 1400 Kenneth st, Muskegon, MI 49442




CERTIFICATE HOLDER                                                                        CANCELLATION
                                                                                            SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
                                                                               CITYOFM
                                                                                            DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL                  10      DAYS WRITTEN

                                                                                            NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL
                      City of Muskegon                                                      IMPOSE NO OBLIGAllON OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
                      933 Terrace St
                                                                                           REPRESENTATIVES.
                      Muskegon MI 49441
                                                                                          A\m!ORIZED REPRESENTATIVE

                                                                                          Scott Melton
 ACORD 25 (2001/08)                                                                                                                                   ® ACORD CORPORATION 1988
    Ol<J/11   ,:>(.CU\\   1,,c"'-"'   ,v. uoo.::,;:,·,.1<,,




     ACORD.                              CERTIFICATE OF LIABILITY INSURANCE                                                                                  CSR LC
                                                                                                                                                       BRASS·l
                                                                                                                                                                         I       DATE {MM!OONYY'I)
                                                                                                                                                                                   08/06/07
PRODUCER                                                                                                THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
                                                                                                        ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
Melton-McFadden                                  Agency                                                 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
e.o. Box 9                                                                                              ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
 Belding MI 48809-0009
  Fhone:616·794-0620                                                                                  INSURERS AFFORDING COVERAGE                                                  NAIC#
il'iSUREO ---·-·     --·- ··--------- --- .                                                                                                                                              - ------
                                                                                                      INSURER A       Kuting, Mutual In1w:111ee C:o                                 14176
                                                                                                      INSURER 8
                                                                                                                        .                                                                            ·-
                          BLaas-Mar Wat~r Wells, :enc.                                                ltlSUREI'< C
                          13427 fruit Ridje                                                           lt.JSURERD
                          Kent City MI 49 30
                                                                                                      lt·ISURERE
COVERAGES
    THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
    ANY REQUIREMENT, TERM OR CONDITION OF /<NY CONTRACT OR OTHER DOCL.MENTWITH RESPECT TO WHICH THIS CERTIFICATE MAY SE ISSUED OR
    MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS ANO CONDITIONS OF SUCH
    POUC:ES. AGGREGATE LIMITS SHOW>J MA.YHAVE BEEN REDUCED BY PAID CLAIMS.
                                                                       ,:_OCICY"EffECT1~1'"0I.TC'YEXPflU
~~~fi                           rYPE OF 1MSURANCEPOLICY NUMBER                                     DATE /MPNOOtf'if    OATE-IMMJDDMY)''                            LIMITS

               .
                   GENERAL LIAB!LfTY
                   -
                                                                                                                                            EACH OCCLRREN•:E                 , 1000000
                                                                                                                                          t-uMiAC•E !Oh'ENIEO        -
A                  X       COMMERCl/ll GEN:CR.AL LIABILITY               CF!l9676546                04/22/07                04/22/08        PREMISES (E-a occuren~e)         , 100000
                   --     ----·7
                        ~ CLA.IMS !MDI::              ~OCCUR                                                                               MEOE:<P{M)1or1~ perwr)            $ 5000
               -                                                                                                                           PERSONAL & XJV IMJLR:v            , 1000000
               -- ·-·-----------                                                                                                          I--------
                                                                                                                                           GENEPAL AG-:.;REGP.TE             $ 2000000
               -GEN'L---·-
                      AGGf.'EGAH:C LIMlr ADPUES PER                                                                                        PfWL1LCfS · CQM:>/JP AGG          ,2000000
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                          ANY AUTO                                   ACV9676547                     04/22/07                04/22/08
                                                                                                                                           COMeJt-,(0 SIOOLE LIM1T
                                                                                                                                           {:Ca accidG<IO                    , 1000000
                          ALL QV\,NE(I AUTOS
     I         --                                                                                                                          flODil Y INJURY
     I         -
                          SD-lEDIJlED AIJTOS
                                                                                                                                           (:>pr ~9fS0fl)
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                          tJc,t,1-0VvNED .l\UTCS                     I                                                                     60Dll \" INJURY
                                                                                                                                           (='9r accidert)
                                                                                                                                                                     ·- -' - - · - - - - - -
               ·-          --                                                                                                              PROPERTY DAMAGE
                                                                                                                                           (='er aoodert)                    $

              1 GARAGE LIABILITY
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                                                                                                                                           ---                           -
                                                                                                                                                                             '
                                                                                                                                                                             $

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                                                     ClAIMS
                                                                                                                                                             ·--·-·-
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              ----
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                                                                                                                                                                             $
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         WORKERS COMPENSATlON AND                '                                                                                               h'::muM11s    I IVER
                                                                                                                                                                             •
         EMPLOYERS' LJ.ASl!TV
A        AN~· FR()PR!ETORiPARTI-ER/EXECLr1vE                         WC9676548                      04/22/07                04/22/08       EL !:II.CH ACCIDE~IT              $   500000
                                                                                                                                                                                                 ·-
         OFFICERl!,\E"'13ER E.'<0:LUC€[l?                                                                                                  E.L. DISEASE - E.t- EMPL0°1EE     I 500000
                                                                                                                                          ----------
     I~t& 1f~~2~\~f~~s be                  ;;w                                                                                             EL. DISEASE - POLICY L MIT        , 500000
     \ OTHEl:I



     I
DESCRIPTION OF OPERATIONS/ LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS




CERTIFICATE ~OLDER                                                                                   CANCELLATION
                                                                                                      SHOU.O AN'f OF iHE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
                                                                                       CITY0l!'M
                                                                                                      DATE TtEREOF, THE ISSUING INS~ER WILL iNDEA\IOR TO MAIL                10       DAYS WRITTEN
                                                                                                      NOTICE TO THE CERTIFICATE HO\.DER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL
                        city of Muskegon                                                              IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER. rrs AGENTS OR
                        933 Terrace St
                        Muskeqon MI 0441                                                              REPRESENTATIVES,
                                                                                                     AUn-.ORIZED REPRESENTATIVE

                                                                                                     Scott Mel ton
ACORD 25 (2001/08)                                                                                                                                           © ACORD CORPORATION 1988
Date:        July 24, 2007
To:          Honorable Mayor and City Commissioners
From:        DPW
RE:          Service Agreement with Muskegon Heights




SUMMARY OF REQUEST:
Authorize the mayor & Clerk to sign the attached agreement with Muskegon Heights
to maintain their fleet.

FINANCIAL IMPACT:
Potential revenue of $20,000 to $30,000



BUDGET ACTION REQUIRED:
None.



STAFF RECOMMENDATION:
Approve the service agreement with Muskegon Heights and authorize the Mayor &
Clerk to sign agreement.
                                              SERVICE AGREEMENT


       Effective March 1, 2007, the City of Muskegon, 933 Terrace Street, Muskegon, Michigan
49440 ("Muskegon") and the City of Muskegon Heights, 2724 Peck Street, Muskegon Heights,
Michigan 49444 ("Muskegon Heights") agree as follows:

                                                  BACKGROUND

        Muskegon Heights has police, fire and public works vehicles which have specific
performance requirements needing specialized service and maintenance work. Muskegon
Heights is seeking assistance to properly service and maintain its police, fire and public works
vehicles. Muskegon has a facility at its Department of Public Works building located at 1350
East Keating A venue, Muskegon, Michigan that houses the Muskegon Fleet Division. The
Muskegon Fleet Division maintains a vehicle repair facility which is able to properly repair and
maintain police, fire and public works vehicles. It is the desire of Muskegon County government
entities to seek opportunities for functional consolidation of services to the mutual benefit of all
parties involved.


        1.      TERM. Muskegon and Muskegon Heights acknowledge that performance under
this contract will commence immediately upon the full execution of this Agreement and shall
continue in full force and effect through December 31, 2007 unless terminated in accordance
with Paragraphs 5 through 8 of this Agreement.

         2.         MUSKEGON'S COMMITMENTS. Muskegon agrees as follows:

                    a.        To provide repair and maintenance services during regular business hours
                              from 7:30 a.m. until 3 :30 p.m. Monday through Friday;

                    b.        To provide a mechanic on call 24 hours a day, 7 days a week. The
                              mechanic can be reached at 231-737-2680; and 231-724-4100 during
                              regular hours.

                    c.        To use the highest standards for repairs to all police, fire and public works
                              vehicles and will not deviate from these standards even at the request of
                              Muskegon Heights; and

                    d..       That Muskegon will give priority to its own vehicles before servicing
                              Muskegon Heights' vehicles, but will make every effort to make timely
                              repairs for Muskegon Heights' vehicles.

        3.          MUSKEGON HEIGHTS' COIVIMITMENTS. Muskegon Heights agrees as
follows:



l:\Dpw\Equip Supervisor\DOCS\Mechaninc Agreement; Heights.DOC
                     a.        To pay compensation to Muskegon for the maintenance and repair
                               services of the Muskegon Fleet Division at the rate of $60. 00 per hour;
                               calculated on a flat rate basis where possible.

                    b.         To pay compensation to Muskegon for the maintenance and repair
                               services of the Muskegon Fleet Division at the rate of$75.00 per hour for
                               all services provided outside of regular business hours of7:30 a.m. until
                               3 :30 p.m. Monday through Friday;

                    c.        To pay the actual costs plus 15% of all parts and supplies used in the
                              repair and/or maintenance of police, fire and public works vehicles;

                    d.        To pay all invoices with thirty days;

                    e.        To pay 1% interest per month on all invoices unpaid after thirty days; and


                    f         If its account with Muskegon reaches a balance of $5,000 more than 30
                              days past due, all work must be paid for in advance. So long as there is a
                              balance of$5,000 more than 30 days past due, Muskegon may refuse to
                              perform any services pursuant to this Agreement.
                    g.        If Muskegon Heights has any concerns with the performance of the work
                              completed by the City of Muskegon, it shall promptly notify the
                               City of Muskegon so that both cities can address such concerns.
                                                                st
        4.       COST REVIEW. Before February 1 of each year, Muskegon shall review its
personnel costs, including mechanics' time, and any costs directly related to the ability of
Muskegon to provide services under this Agreement. If these costs have increased, Muskegon
shall notify Muskegon Heights in writing of the increase in cost and the justification for the
increase in costs under this Agreement. The increase in costs will be effective March 1st of each
year.
        5.      TERMINATION. This Agreement shall remain in effect until terminated by
either party. Muskegon and Muskegon Heights may terminate this Agreement for any reason,
including the convenience of either party, and without penalty. Termination notice shall be in
writing and comply with Paragraph 7 and/or 8 of this Agreement. Termination shall become
effective thirty days from the date of the Termination Notice.
        6.      TERMINATION BY MUSKEGON HEIGHTS. Upon receipt of the
Termination Notice from Muskegon Heights, Muskegon shall have thirty days to invoice
Muskegon Heights for any outstanding balances that have not previously been invoiced.
Muskegon Heights shall be responsible for all costs of services, maintenances and supplies either
invoiced prior to receiving the Termination Notice or performed or purchased by Muskegon
before receipt of the Termination Notice. Muskegon will attempt to return any parts and supplies
ordered for Muskegon Heights' vehicles that it is unable to use on non-Muskegon Heights'
vehicles. If Muskegon is unable to obtain full refunds or partial refunds, Muskegon will send
Muskegon Heights invoices for those non-refundable or partially refundable parts and supplies.



L:\Dpw\Equip Supervisor\DOCS\Mechaninc Agreement; Heights.DOC
If Muskegon Heights exercises its right to terminate this Agreement, it shall pay all outstanding
invoices within ten days from the date of termination. If Muskegon has vehicles belonging to
Muskegon Heights on its site, the Termination Notice shall state whether it is authorizing
Muskegon to complete any necessary work on those vehicles or immediately cease all work on
those vehicles. If the Termination Notice states that Muskegon is to cease work on all Muskegon
Heights vehicles on its property, Muskegon Heights shall remove these vehicles within five days
from the date of the Termination Notice. If the Termination Notice requests that Muskegon
complete all work on vehicles on its site, this work shall be completed and payment in
accordance with this Agreement.

       7.      TERMINATION BY MUSKEGON. Upon receipt of the Termination Notice
from Muskegon, Muskegon Heights shall have thirty days to pay for all work, services, parts and
materials provided or ordered pursuant to this Agreement, whether invoiced or not. Muskegon
Heights shall have five days to remove all its vehicles, parts and materials from Muskegon's
property.

        8.      NOTICES. Any notice that either party may give or is required to give under
this agreement shall be in writing and, if mailed, be effective three days after being sent by
certified or registered mail, postage prepaid, addressed to the City Clerk at the other party's
address set forth in this agreement or at any other address the other party provides in writing.

         9.         GENERAL PROVISIONS.

                 a.     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 in 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.

                 b.     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.

                 c.      Counterparts. The agreement may be executed in counterparts, and each
         set of duly delivered identical counterparts which includes all signatories shall be deemed
         to be one original document.

                 d.      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.

                 e.      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.



L:\Dpw\Equip Supervisor\DOCS\Mechaninc Agreemenl; Heights.DOC
                 f.     Assignment or Delegation. Except as otherwise specifically set forth in this
         agreement, neither party shall assign all or any portion of its rights and 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.

                 g.      Fax or Electronic Signatures. The parties have agreed that electronic or fax
         copies of the signed agreement shall constitute a valid, enforceable agreement. Each party will
         mail originals to the respective party upon their execution of this agreement.


CITY OF MUSKEGON                                        CITY OF MUSKEGON HEIGHTS


By:




By:~....._ (s,0         JC19                           By: -l-::+f1--!-@.1LL_<1~~~~=21L
    Ann Becker,                                                  ordilia Buckner,
    Its Clerk                                          Its Clerk


Date:   1/Jlu 5-r /, 2007




                                                                                                  4/24/2007
Date:       July 24, 2007

To:         Mayor and City Commissioners

From:       Department of Public Works

Re:         Transfer Ownership of Sanitary Sewer.




SUMMARY OF REQUEST: For many years the City of Muskegon
has owned and maintained a sanitary sewer that is a collection
sewer for three cities. This sewer line was most likely overlooked
when local lines were turned over to the County of Muskegon during
the original Wastewater Project. This line is used by both the City
of Norton Shores and the City of Roosevelt Park and no interagency
agreement for joint maintenance was ever executed.


FINANCIAL IMPACT: The potential of future maintenace
expense will now be shared by all users rather than just the City of
Muskegon.


BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION: Recommend that the City of
Muskegon transfer ownership of this collection sanitary sewer to
the Muskegon County Wastewater System.
                                   RESOLUTION
                                      2007-6l(m)


        The following preamble and resolution was offered by Commissioner _ _ _ __

_ _D_a_v_i_s_ _ _ _ and supported by Commissioner _ _c_a_r_t_e_r_ _ _ _ _ _ __

        WHEREAS, the City of Muskegon owns and maintains a gravity sewer system
consisting of 24-inch and 30-inch pipe conveys sewage from the comer of Sherman
Boulevard and McCracken Street to the Muskegon County Wastewater Management
System's Lift Station Don Shoreline Drive; and

       WHEREAS, this gravity sewer system transmits waste from the cities of
Roosevelt Park, Norton Shores, and Muskegon to the System and should be owned and
maintained by the Muskegon County Wastewater Management System; and

      WHEREAS, the Muskegon County Wastewater Management System is in
agreement with transferring the gravity sewer system described above from the City of
Muskegon to the County of Muskegon.

        WHEREAS, as a result of this transfer, the Muskegon County Wastewater
Management System would assume operation, maintenance, and repair of the line as well
as the responsibility for breaks; and

       WHEREAS, regardless of this transfer, the City of Muskegon will remain
responsible for operation, maintenance, and repair of all connections to this gravity sewer
system that are smaller than 18 inches in diameter.

        NOW, THEREFORE, BE IT RESOLVED, that the 24-inch and 30-inch gravity
sewer system described above and previously owned by the City of Muskegon is hereby
transferred to the Muskegon County Wastewater Management System.

AYES:     Spataro, Warmington, Wierenga, Carter, Davis, Gawron,
          and Shepherd


NAYS:     None
                                      CERTIFICATION
                                       2007-61(m)

        I hereby certify that the following constitutes a true and complete copy of a
resolution adopted by the City of Muskegon City Commission at a regular meeting held
on July 24, 2007, and that public notice of said meeting was given pursuant to and in full
compliance with Act No. 267 of the Public Acts of Michigan of 1967.




                                     Ann Marie Becker, City Clerk
                                                  30" SEWER PROPOSED
                                                  TRANSFER TO MCWW




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24" SEWER PROPOSED
TR A N,:Pvn T() Mrww
      A regular meeting of the Muskegon County Board of Public Works was held in the City
of Muskegon Heights, County of Muskegon on August 9, 2007, 3:30 PM in the Louis A.
McMurray Transportation & Conference Center located at 2624 Sixth Street.


PRESENT: Don Aley; Charles Buzzell; James Derezinski; Marvin Engle; Martin Hulka;
         Ken Mahoney; I. John Snider; Louis McMuPray.

ABSENT:           Lewis Collins (excused)



                                                      RESOLUTION

      The following preamble and resolution was offered by Commissioner
  Buzzell                   and supported by Commissioner---'D"-'e"-'r'-'e'-"z'-'i'-"n"'s"'k"'i_ _ _ __


      WHEREAS, the Public Works Board is responsible for the Muskegon County
Wastewater Management System for the County of Muskegon; and

      WHEREAS, as part of that System, there are gravity sewer lines previously owned by
communities that handle flows from multiple municipalities that became the responsibility of the
System; and

        WHEREAS, a gravity sewer system consisting of 24-inch and 30-inch pipe conveys
sewage from the comer of Sherman Boulevard and McCracken Stree(Jo the System's Lift
Station D on Shoreline Drive; and

       WHEREAS, this gravity sewer system transmits waste from the cities of Roosevelt Park,
Norton Shores, and Muskegon to the System and should be owned and maintained by the
System; and

       WHEREAS, the City of Muskegon is in agreement with transferring the gravity sewer
system described above to County ownership; and

       WHEREAS, as a result of this transfer, the System would assume the operation,
maintenance, and repair of the line as well as the responsibility for breaks; and

       WHEREAS, regardless of this transfer, the City of Muskegon will remain responsible for
operation, maintenance, and repair of all connections to this gravity sewer system that are
smaller than 18 inches in diameter. _




C:\Documents and Settings\kendrick\Desktop\wastewatennanagementsystem?-12-07 (3).doc                      1
        NOW, THEREFORE, BE IT RESOLVED, that the 24-inch and 30-inch gravity sewer
 system described above and previously owned by the City of Muskegon is hereby transferred to
 the Muskegon County Wastewater Management System.

 AYES:         Don Aley; Charles Buzzell; James Derezinski; Marvin Engle; Martin Hulka;
               Ken Mahoney; I. John Snider; Louis McMurray.


 NAYS:         None



           RESOLUTION DECLARED ADOPTED.



                                                                MartirPL. Hulka, Public Works Board Secretary


       I hereby certify that the following constitutes a true and complete copy of a resolution
adopted by the Muskegon County Board of Public Works at a regular meeting held on August 9,
2007, and that public notice of said meeting was given pursuant to and in full compliance with
Act No. 267 of the Public Acts of Michigan of 1967.




C:\Documents and Settings\kendrick\Desktop\wastewatcnnanagemen tsystem7 -1 2-07 (3 ).doc                        2
                     Commission Meeting Date: July 24, 2007




Date:         July 17, 2007

To:           Honorable Mayor and City Commissioners

From:         Planning & Economic Development

RE:           Public Hearing - Request for an Industrial Facilities Exemption
              Certificate - ADAC Plastics



SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, ADAC Plastics, 1801 E. Keating Avenue,
has requested the issuance of an Industrial Facilities Exemption Certificate for the property
located at 1801 E. Keating, Muskegon. The total capital investment is approximately
$500,000 in personal property and $2,775,000 in real property. This request qualifies ADAC
Plastics for a term of twelve (12) years for real property and sic (6) years for personal
property.



FINANCIAL IMPACT:

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

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for
a term of twelve (12) years for real property and six (6) years for personal property. In
addition, the City's Affirmative Action Director will be meeting with ADAC staff to discuss
their affirmative action plan on Friday, July 20.



COMMITTEE RECOMMENDATION:

None




7/17/2007
                                             ResolutionNo. 2007-62(a)

                                        MUSKEGON CITY COMMISSION

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

WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed pubic hearing held on February
     27, 1997, this Commission by resolution established an Industrial Development District as
     requested by ADAC Plastics, 1801 E. Keating Avenue, Muskegon, Michigan 49441; and

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

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on July 24,
     2007, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the applicant, the
     assessor and representatives of the affected taxing units were given written notice and were afforded
     an opportunity to be heard on said application; and

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

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

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

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

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

              CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER PART OF LOT 15 DESC AS COM
              AT NE COR OF SAID LOT FOR POB, TH S 01D 10M 38SW (RECORDED ASS 01D 12M 30S
              W) ALG E LINE OF SAID LOT A DIST OF 435 FT TH S 86D 57M 07S WA DIST OF 430.32 FT
              TH N 87D 40M 25S WA DIST OF 532.92 FT TO THEW LINE OF SAID LOT TH N 01 D 01 M 46S
              E(RECORDED AS N 01D 03M 06S E) A DIST OF 441.18 FTTO THEN LINE OF SAID LOT, TH
              S 89D 42M 20S E ALG SAID LINE A DIST OF 963.22 FT TO POB. CONTAINS 9.93 ACRES


          3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
             effect for a period of six (6) years on personal property and twelve (12) years on real property.




7/17/07
Adopted this 24th Day of June 2007.


Ayes: Gawron, Shepherd, Spataro, Warmington, Wierenga, Carter, and Davis

Nays: None

Absent:   None




                                                            Ann Marie Becker, MMC
                                                            Clerk




                                               CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a reg~la\meeting h;ld on July 24, 2007.,

                                                           ~\'"\---._\, "-lz)._,\ ~-'    (1/ cl.,,
                                                            Ann Marie Becker, MMC
                                                            Clerk




7/17/07
Michigan Department of Treasury
1012 {Rev. 7/05)

Application for Industrial Facilities Tax Exemption Certificate
 ssued under authority of PA 198 of 1974, as amended. Filing is mandato1y.

INSTRUCTIONS: File the original and two copies of this form and the required attachments (three complete sets) with the clerk of the
local government unit. The State Tax Commission {STC} requires two complete sets {one original and one copy). One copy is retained
by the clerk. If you have any questions regarding the completion of this form or would like to request an informational packet, call (517)
373-3272.
                               .·
                                                                                                                                                                           ·   .
                                                     .        To be completed by Clerk of Local Government Unit
 ~ u r e or Clerk                                                                                 Date received by Local Unit

       \ \ '-'-v-::'._\i'OV\,,~ ~~c.)I                              A

                                              .
                                                                                 .
                                                                                     .. STC Use Only           .
                                                                                                                                                ..
                                                                                                                                                                       .           .
Application Number                                                                                Date Received by STC



APPLICANT INFORMATION
All boxes must be completed.
1a. Company Name (Applicant must be the occupant/operator of the facility)                        1b. Standard Industrial Classification (SIC) Code - Sec. 2(10) (Four Digit Code)

  ADAC Plastics, Inc 1 Keatin~ Associates                                                            3089
                                                                                                  1d. Name of Clty/TownshipNillage              1e. County
1c. Address of Facility (real property or persona! property location)
                                                                                                  (Indicate which)
       1801 Keating Ave Muske~on- MI                                        49442                    Citv of Muske~on                                     -
2. Type of Approval Requested                                                                     3a, School District where facility is located 3b. School Code
   [K) New (Sec. 2(4})                                   D Transfer (1 copy to only)                 Orchard View                                      61010
   0 Speculative Building (Sec. 3(8))                    0 Rehabilitation (Sec. 3(1 ))            4. Amount of years requested for exemption (1-12 Years)
   O Research and Development (Sec. 2(9))                                                              Real l~years Personal ;£years
5. Thoroughly describe the project for which exemption is sought: Real Property {Type of Improvements to Land, Building, Size of Addition): Personal Property (Explain New,
Used, Transferred from Out-of-State, etc.) and Proposed Use of Facility. (Please attach additional page(s) if more room is needed).

  Adding 54,000 square foot addition foo, Warehouse Distribution and upgrading
  employee facilities. Also improved safety through enhanced chemical receiving
  and storage.


 6a. Cost of land and building improvements (excluding cost of land)                                                                            $2,775,000.00
       * Attach list of improvements and associated costs.                                                                                           Real Property Costs
       * Also attach a copy of building permit if project has already begun.
                                                                                                                                                $500,000.00
 6b. Cost of machinery, equipment. furniture and fixtures
       * Attach itemized listing with month, day and year of beginning of installation plus total costs                                              Persona! Property Costs
                                                                                                                                                $3,275,000.00
 6c. Total Project Costs
                                                                                                                                                     Total of Real & Personal Costs

7. Indicate the time schedule for start and finish of construction and equipment installation. Projects must be completed within a two year period of the effective date of the
certificate unless otherwise approved by the STC.

                                                    Begin Date (M/0/Y)                           End Date (M/0/Y)

  Real Property Improvements                             9/1/07                                    2/1/08                           [ ] Owned           D     Leased

  Personal Property Improvements                         1/1/08                                    3/1/08                           [ ) Owned           D     Leased


8. Are State Education Taxes reduced or abated by the Michigan Economic Development Corporation (MEDC)? If yes, applicant must attach a signed MEDC Letter of
Committment to receive this exemption.        D Yes             D No
9. Number of existing jobs at this facility that will be retained as a result of this project.   10. _Number of ~ew jobs at this facility expected to be created within two years of
                      5                                                                          proJect completcon.

11. Rehabilitation applications only: Complete a, band c of this section. You must attach the assessor's statement of valuation for the entire plant rehabi!itation district. The
SEV data below must be as of December 31 of the year prior to the rehabilitation.

  a. SEV of Real Property (excluding land)
  b. SEV of Personal Property (excluding inventory)
  c. Total SEV                                                                                                                          .


12a. Check the type of District the facility is located in:

                (K]    Industrial Development District                  0      Plant Rehabi!itation District

12b. Date district was established by local government unit (contact local unit)                 12c. Is this application for a speculative builiding (Sec. 3(8))7
      2/25/97 City of Muskegon                                                                             D Yes           I!]   No
 Form 1012, Page 2

 APPLICANT CERTIFICATION - complete all boxes.
 The undersigned, authorized officer of the company making this application certifies that, to the best of his/her knowledge, no information contained
 '1erein or in the attachments hereto is false in any way and that all are truly descriptive of the industrial property for which this application is being
 :,ubmitted.

 It is further certified that the undersigned is familiar with the provisions of P.A. 198 of 1974, as amended, being Sections 207.551 to 207.572, inclusive,
 of the Michigan Compiled Laws; and to the best of his/her knowledge and belief, (s)he has complied or will be able to comply with all of the
 requirements thereof which are prerequisite to the approval of the application by the local unit of government and the issuance of an Industrial Facilities
 Exemption Certificate by the State Tax Commission.
  13a. Preparer Name                           13b. Phone Number                        13c. Fax Number                                13d. E-mail Address
 William J Powers                               616        957-0520 Ext 51 1 (616) 957-5217                                             bpowers@adacautomoti
 14a. Name of Contact Person                   14b. Phone Number                        14c, Fax Number                                14d. E-mail Address
 William J Powers                               616        957-05200Ext 51 1 (616) 957-5217                                            bpowers@adacautomoti


                                                                                        15c. Fax Number
                                                                                       (616)               957-5217
                                                                                                                                       15d. Date   I,.(/.
                                                                                        15f. Phone Number                              15g. E-maif Address
                                                Grand Rapids, MI 495 2 (616) 975-6143
LOCAL GOVERNMENT ACTION & CERTIFICATION - complete all boxes.
This section must be completed by the clerk of the local governing unit before submitting application to the State Tax Commission. Check items on file
at the Local Unit and those included with the submittal.

 16. Action taken by local government unit      (,,   Jleqr-5 ;er-5ona/ / l~O/Crty     16b. The State Tax Commission Requires the following documents be filed for an
                                                                                       administratively complete application:
    J8f   Abatement Approved for             /cf<     Years (1-12)PGe/   !r"/1er-lJ'         Check or Indicate NIA if Not Applicable
              After Completion OYes ONo                                                      ~1        Original Application plus attachments, arid one complete copy
                                                                                                     2. Resolution establishing district
     D    Denied (Include Resolution Denying)

 16a. Documents Required to be on file with the Local Unit
   Check or Indicate NIA if Not Applicable
                                                                                             1:&.
                                                                                             -
                                                                                                     3. Resolution approving/denying application.
                                                                                                     4. Letter of Agreement (Signed by local unit and applicant)
                                                                                                     5. Affidavit of Fees (Signed by local unit and applicant}

   ~ 2.• Notice
                                                                                                     Q. Building Permit for real improvements if project has already begun
                 "" "°''°  ""' o of""'"-
                                                                                        ·•   ••c••


         ~"" ato taxing authorities      """'"'"'
                                    opportunity        a as=
                                                for a hearing.
                                                                                             ~
                                                                                                     7. Equipment List with dates of beginning of installation
                                                                                             -
        3. List of taxing authorities notified for district and application action.                  8. Form 3222 (if applicable)
                                                                                             ~

        4. Lease Agreement showing applicants tax liability.                                         9. Speculative building resolution and affidavits (if applicable)
                                                                                             ~




 17. Name of local Government Body                                                     18. Da!e of Resolution Approving/Denying this Application


Attached hereto is an original and one copy of the application and all documents listed in 16b. I also certify that all documents listed in 16a
are on file at the local unit for inspection at any time.

                                                                                                                         19c. E-mai! Address
                                                                                        be.c./(er                        ann,beclrer {J o.sfma,,, or


                                                                                       19f. Fax Number

                                                                                                      .J.3/        7c:? f- fl 7J'
State Tax Commission Rule Number 57: Complete applications approved by the local unit and received by the State Tax Commission by October 31
each year will be acted upon by December 31. Applications received after October 31 may be acted upon in the following year.

Local Unit: Mail one original and one copy of the completed application and all required attachments to:
State Tax Commission
Michigan Department of Treasury
P.O. Box 30471
Lansing, Ml 48909~7971




                                                                            STC USE ONLY
LUCI Code                                     Begin Date                               End Date                                       End Date2
JUL/11/2007/WED 04:39 PM                                                                      P. 003
      07-11-'07 13:54 FROM-City of Muskegon              2317246790                T-326 P002/002 F-645




                INDUSTRIAL FACILITIES EXEMPTION APPLICATION
                             AFFIDAVIT OF FEES

            We do swear and affirm by our signatures below that "no payment of any kind in
            excess of the fee allowed, by PA Act 198 of 1974, as amended by Public Act 323
            of 1996, has beeh made or promised in exchange for favorable consldera1ron of
            an exemption certificate application."

                                                                          •
                                                                      .,,··~
                                                                               •



            City of Muskegon, Michigan
            Signed _ _ _ _ _ _ __
            Print Name _ _ _ _ _ _ _ __
            Title _ _ _ _ _ _ _ __
            Dated _ _ _ _ _ _ _ __




              A l
            App . iPlc ~
                       ics :
            Signed .,,;
                    _         _~~+--~---
                       ;.:_,::ef.:.:.:·
            Print N ·e                  .   "'~
            Title .b~i,.c,n:,.e of t:v¾,wc:= S:ym•::A.-<... ~
            Dated            l
                        1 [ 11 1M1:
JUL/11/2007/WED 04:39 PM                                               P. 002




                                              ADAC Automotive
                                            IFT Equipment Listing
                                           Application Dated 6/27107


     Personal Property:
     Racking for Warehouse   $500,000.00

     Total                   $500,000.00
                                            City of Muskegon
                                            Industrial Facilities Exemption Application
                                            Summary Sheet
 \\'cst. ~lll'lll~<m's Slwrellne t:11.y


Project Summary:

         ADAC PLASTICS, INC., an existing manufacturing company located at 1801 Keating Avenue,
Muskegon, Michigan, is installing new machinery and equipment to expand its present operation. The
company is a manufacturer of engineered products, primarily for the automotive industry. Due to the fact
that the company is investing $2,775,000 in real property and $500,000 in personal property, it is eligible
for a 12 year exemption for real property and a nine (9) year exemption for personal property.

Employment Information:

             Racial Characteristics:
                            White                 169
                            Minority              90
                            Total                 259
                                                                                                          i
                                                                                                      .   '
             Gender Characteristics:
                           Male                   94                                            JUL t 3 2007
                           Female                 165
                           Total                  259

            Total No. of Anticipated New Jobs:          0

Investment Information:

            Real Property:                              $2,775,000
            Personal Property                           $500,000
            Total:                                      $3,275,000

Property Tax Information: (Annual)                      All   Jurisdictions         City Only
       Total New Taxes Generated                        $     936,496               $ 181,323
       Value of Abatement                               $     468,248               $ 90,662
       Total New Taxes Collected                        $     468,248               $ 90,662


Income Tax Information: (Annual)
       Total Additional Income Tax Generated:            $O

Company Requirements:

            Adopted Affirmative Action Policy                     .ti(   Yes       •     No
            Meeting w/ City Affirmative Action Director           11(    Yes       •     No
            Signed Tax Abatement Contract                         ,,,    Yes       •     No
            Taxes Paid In Full                                    ,l\l   Yes       •     No
            Zoning Conflicts                                       •     Yes       \>t   No


   -//~L                           ~         f( i/lv&f!i                 tf    \,ihfhJ41ll'd)
Mike Franzak                              ~_..,          wana Thompson
Planner II                                              Affirmative Action Director
            Commission Meeting Date: July 24, 2007




Date:       July 16, 2007
To:         Honorable Mayor & City Commission
From:       Planning & Economic Development Department Cf?j:.,
RE:         Extension of Time Period For Existing
            Renaissance Zone Parcels


SUMMARY OF REQUEST: Last year, PA 440 (HB 5942) amended the
Michigan Renaissance Zone Act (PA 376 of 1996) to allow for the
extension of time for one or more portions of existing Renaissance
subzones. In order for any extensions to be approved by the State, the
local municipality must first grant approval. In addition, the development
must be new to the zone and it must be shown that the existing
renaissance zone has not experienced significant development. Staff is
aware of a few projects that will be seeking Renaissance Zone
extensions. Therefore, City Commission is asked to approve the
attached Policy for "Extension of Time Period for Existing Renaissance
Zone Parcels". Any and all requests for individual extensions will require
an Agreement between the property owner/developer and the City, and
will be presented to the City Commission for approval.

FINANCIAL IMPACT: None at this time, but approval of the Policy
should generate additional development within the Muskegon
Renaissance Zones.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To approve the attached Policy.

COMMITTEE RECOMMENDATION: None.
                                 CITY COMMISSION POLICY

     EXTENSION OF TIME PERIOD FOR EXISTING RENAISSANCE ZONE PARCELS
                               (July 24, 2007)


POLICY:       The City will establish a program which allows individuals, businesses,
              developers and business areas to submit proposals for extending the timeline for
              properties in the City's Renaissance zone for significant new economic
              development projects. Applications will be accepted to extend the time period for
              individual parcels for specific economic development projects located within the
              existing Zones and will be evaluated on the basis of the criteria identified in this
              policy.

PURPOSE: To provide guidelines for evaluating and approving requests for extension of
         Renaissance Zone parcels for new development in zones that have not
         experienced significant development.


GOALS:        The City's goals in extending the time period for existing individual Renaissance
              Zone parcels are:
                    1.     To create jobs;
                    2.     To encourage investment; and
                    3.     To clean up and reutilize vacant and underutilized properties.


BACKGROUND

In 1999, the Cities of Muskegon and Muskegon Heights were jointly designated as a
Renaissance Zone. At that time, the City of Muskegon selected two areas of the city as sub-
zones. The City of Muskegon Heights designated four sub-zones. These sub-zones are
identified as development zones that are virtually tax free for fifteen years. In 2000, the State
of Michigan approved legislation, permitting the Muskegon/Muskegon Heights Renaissance
Zone to apply to the Michigan Economic Development Corporation to expand existing zones
contiguously and designate up to four new sub-zones. In 2002, four new sub-zones were
approved by the State for the City of Muskegon. The goal of the program has been to
encourage investment and create jobs by reutilizing vacant, contaminated, and underutilized
properties in blighted neighborhoods and industrial zones

In 2006, the State of Michigan approved legislation which allows communities to apply to the
Michigan Economic Development Corporation to extend the time period for existing
Renaissance Zone parcels when a major economic development opportunity is proposed.

PROGRAM

The City will establish a program which allows individuals, businesses, developers and
business areas to submit proposals for extending the timeline for properties in the City's
Renaissance Zone for significant new economic development projects. Applications will be
accepted to extend the time period for individual parcels for specific economic development
projects located within the existing Zones and will be evaluated on the basis of the criteria
identified in this policy.

REVIEW PROCESS

Proposal Content: All proposals must demonstrate that the project cannot reasonably be
facilitated in the existing Renaissance Zone time frame. They must identify the parcels being
proposed for extension of the Zone, the amount of real and personal property tax currently
assessed to the site(s), and verify that the property meets at least three of the threshold
criteria. Also, proposals should describe the type of use, amount of investment, jobs to be
created, and other pertinent information about the project. A proforma showing the difference
in return on investment with and without Renaissance Zone savings must be submitted with
the proposal.

The applicant will supply a statement of Renaissance Zone outcomes achieved since inclusion
of the property in the zone, which include the number of years that the property has been in
the Zone, the total investment in the property and building, the investment in personal property,
the employment at the start of the Zone and the current employment at the site. The applicant
will provide an estimate of the tax savings, to date, from the Renaissance Zone designation.

Applicants must pay a $5000 application fee and agree to pay all legal fees associated with the
preparation of a Development Agreement.

Review: A proposal must meet a minimum of three of the threshold requirements that will be
reviewed by City Staff based on the extent to which the project addresses the evaluating
factors cited in this policy.

A review of the capacity, if any, below the modified (see next paragraph) $500,000 cap of
property and income tax revenue the City may forego to support the Renaissance Zone
program will be made as each application is reviewed.

INVESTMENT CAP LIMITATION

•   The original City Renaissance Zone established an investment cap in 1999 at $50,000,
    focusing solely on lost City tax revenue.

•   This revised policy maintains the $50,000 cap, but will evaluate projects on a case-by-case
    basis to determine whether the project is cap neutral, adds cap capacity or reduces
    available cap capacity.

•   Cap Capacity will be determined by analyzing the annual value of income tax receipts from
    new jobs created within the City Renaissance Zones. The value will be used to calculate
    the available cap capacity as follows:

       $50,000              Base Cap Established 1999

       ($8,200)             Existing Cap Capacity Utilized

       $41,800              Existing Cap Capacity (before Income Tax Factor)
       $1,000               Total 1999 Job Value (from new jobs created in Ren. Zone)

       $42,800              Total Remaining Cap Capacity

       Where:

       Base Cap             = The Cap of $50,000 established by City
                                    Commission in 1999
       Utilized Cap Value     =    The estimated amount of actual property and income
                                    tax abated as of January 1999
       Existing Cap Capacity  =    The difference between the Base Cap and the Utilized
                                    Cap Value
       Job Value              =    The total number of jobs created by all projects
                                    in the City"s Renaissance Zone multiplied by
                                    an estimated income tax value of $300 per job
       Remaining Cap Capacity =     Amount of City public revenue remaining to be
                                    invested in Renaissance Program

•   A project"s cap capacity impact will be determined by calculating the difference between
    property tax loss and income tax to be generated by the proposal. Projects may be neutral.
    may add cap capacity or may reduce cap capacity.


DEVELOPMENT AGREEMENT

Successful applicants will be required to enter into a development agreement with the City
committing to the investment and/or job creation it has proposed and posting a performance
bond or other guarantee of performance acceptable to the City. The City Commission will
make a determination as to the number years each new or expanded area will be designated
as a zone on a case-by-case basis and in compliance with State law. In no case will the
designation be for more than fifteen years from the date of application to the Board of the
Michigan Strategic Fund.


THRESHOLD CRITERIA
Must meet "a" or "b" of the following criteria plus two others to be considered for a
Renaissance Zone Extension.

    a. Project will be a catalyst for a major development or for multiple redevelopment
       opportunities in the City.
    b. Project will add significant new City income tax from the creation of jobs new to
       Muskegon within three years of project completion. This income tax is to offset
       the loss of property taxes which are abated under the Renaissance Zone
       expansion.
    c. Property has been vacant or fifty percent of building(s) unoccupied, for at least one
       year.
    d. Project investment will be significant on a square foot basis.
   e. Property is a contaminated site or functionally obsolete, as defined by current Michigan
      law.
   f. Project shows other evidence of under-utilization or disinvestment.

EVALUATION FACTORS

Proposals for extending existing Zone areas which meet the appropriate threshold criteria will
be considered based on the extent to which a project addresses the following evaluation
factors:

   a. The amount of income tax to be generated by new jobs relative to the amount of local
       City taxes abated.
   b. The amount of investment in buildings and equipment.
   c. The project allows a business to expand in the City, retains a significant number of jobs
       in the City, and/or will add jobs.
   d. The project includes other investment in neighborhood revitalization or public
       infrastructure improvements or utilizes other public and private financing tools to
       maximize redevelopment benefits.
   e. In the case of residential property, the extent to which the project will work to
       deconcentrate poverty, create mixed use redevelopment or develop downtown housing.
   f. The amount of tax loss for the project does not exceed the amount the City Commission
       identifies for support of Renaissance Zones.
   g. The extent to which designation may adversely affect DOA or other City financial
       obligations.
    h. The project will enhance an area of the City and/or cause additional investment.
    i. The project is consistent with the City's Master Plan.
   j. Compliance with the following City ordinances and policies:
           1. All applicants must be current with all real and personal property taxes.
           2. All applicants must not be under written orders for violations of the zoning
               ordinance.
           3. All applicants must have a satisfactory record of compliance with regulations
               enforced by the City's Environmental Services Department.
    k. History of investment. What is the history of ownership of and investment in the
       property since it was designated as a Renaissance Zone? What are the reasons that
       the property is still blighted and underutilized?


OTHER CONDITIONS

The City reserves the right to not award Renaissance Zone status to any or all proposals, nor
is it obligated to abate taxes to the limit of capacity available. It may also decide to exceed the
cap, if it believes the benefits of a project to the City warrant doing so. Applications must be
filed by October 15, 2011, in order that they can be filed with the State by December 31, 2011.
New Renaissance Zone designations are subject to approval by the Michigan Economic
Development Corporation.
Adopted July 24, 2007
                                                        ~~~~½ 2,~~U-,
                                                         Ann Marie Becker, MMC
                                                         City Clerk
                              CITY COMMISSION MEETING
                                  Tuesday, July 24, 2007



TO:           Honorable Mayor and City Commissioners

FROM:         Mark Kincaid
              Deputy Director of Public Safety

DATE:         July 5, 2005

SUBJECT:      Request to Purchase Office Furniture


SUMMARY OF REQUEST:

Fire Department staff is requesting approval by the Commission to allow for the
procurement of office furniture for the new Central Fire Station. The low bid, which
meets all stated specifications, was submitted by Lakeshore Office Furniture, 2615
Temple St. Muskegon, MI 49444. The bid price submitted by Lakeshore is $6504.20. A
bid sheet is attached.

FINANCIAL IMPACT:

Funds for this purchase are provided for in the building fund for the new Central Fire
Station.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATIONS:

Approval
City of Muskegon
Office Furniture Bids                     6-12-07


Lakeshore Office Furniture   $6504.20
2615 Temple St.
Muskegon MI 49444

Interphase Inc.              $7276.64
3036 Eastern Ave. SE
Grand Rapids MI 49508

Modern Office Interiors      $9312.50
1354 W. Randall
Coopersville MI 49404

Kentwood Office Furniture    $12,943.18
3063 Breton Rd. SE
Grand Rapids MI 49512

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