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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 11,2006
CITY COMMISSION CHAMBERS@ 5:30P.M.
AGENDA
o CALL TO ORDER:
o PRAYER:
o PLEDGE OF ALLEGIANCE:
o ROLL CALL:
o HONORS AND AWARDS:
o INTRODUCTIONS/PRESENTATION:
o CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Coagulant Model. WATER FILTRATION
C. Defined Contribution Retirement Plan for New Hires CDPW 517M).
FINANCE
D. Signing of 2006-2007 Subrecipient and Community Housing
Development Organization Agreements. COMMUNITY &
NEIGHBORHOOD SERVICES.
o PUBLIC HEARINGS:
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o UNFINISHED BUSINESS:
o NEW BUSINESS:
A. Finance Division Reorganization. FINANCE
B. Liquor License Request - CSTS, Inc .. 2185 Henry (Pop-a-Top). CITY
CLERK
C. Sale of Clay Avenue Parking Ramp. CITY MANAGER
o ANY OTHER BUSINESS:
o PUBLIC PARTICIPATION:
)> Reminder: Individuals who would like to address the City Commission shall do the following:
)> FHI out a request to speak form attached to the agenda or located in the back of the room.
)> Submit the form to the City Clerk.
)> Be recognized by the Chair.
)> Step forward to the microphone.
)> State name and address.
)> Limit of 3 minutes to address the Commission.
)> {Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.}
o ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT GAIL A.
KUNDINGER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml49440 OR BY CALLING (231) 724-6705 OR TDD: (231)
724·4172.
Date: July 11, 2006
To: Honorable Mayor and City Commissioners
From: Gail A. Kundinger, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the Regular
Commission Meeting that was held on Tuesday, June 27, 2006.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: ·Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 11,2006
CITY COMMISSION CHAMBERS@ 5:30P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30p.m., Tuesday, July 11, 2006.
Mayor Warmington opened the meeting with a prayer from Elder George
Monroe from the Evanston Avenue Baptist Church after which the Commission
and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioner Kevin Davis, Clara Shepherd, Lawrence Spataro, and Chris Carter,
City Manager Bryon Mazade, City Attorney John Schrier, and Deputy City Clerk
Linda Potter.
Absent: Commissioner Sue Wierenga (excused)
2006-60 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, June 27, 2006.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Coagulant Model. WATER FILTRATION
SUMMARY OF REQUEST: To purchase a coagulant model to assist the Water
Filtration Plant operators in chemical coagulant dosage for proper water
treatment.
FINANCIAL IMPACT: Coagulant model cost is $9,000.
BUDGET ACTION REQUIRED: None. The coagulant model is budgeted at
$10,000.
STAFF RECOMMENDATION: Staff recommends purchasing the coagulant model
from A Y Consulting at a cost of $9,000.
C. Defined Contribution Retirement Plan for New Hires (DPW 517Ml.
FINANCE
SUMMARY OF REQUEST: The City Commission has previously approved a
contract with the 517M union that includes provision for new hires to be
members of a defined contribution retirement program in lieu of membership in
the defined benefit General Employees' retirement system. The new DC plan
calls for a City contribution of 3%/6% and an employee contribution of 0%/3% of
wages. Present employees may also join the DC plan on an elective basis
during a window period.
Documents for this plan are the same as for the previous plan set-ups for
Clerical, Fire and non-union employees and are currently under review by the
attorney's office. Because we are in the process of hiring several positions that
will be covered under the new plan, staff at this time is requesting authorization
to have the Mayor, Clerk and other required city officials sign the necessary
documents for implementation.
FINANCIAL IMPACT: Moving to a defined contribution plan will help stabilize and
better define the City's annual pension costs. We are negotiating similar
arrangements for other employee groups. At this time, new employees in the
Fire, Non-Union, Clerical and 517M groups are covered by a defined
contribution arrangement. The status of this issue with the other employee
groups is as follows: Police Patrol (in arbitration); Police Command (to be
negotiated).
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval
(ORDINANCE REQUIRES SECOND READING)
D. Signing of 2006-2007 Subrecipient and Community Housing
Development Organization Agreements. COMMUNITY &
NEIGHBORHOOD SERVICE
SUMMARY OF REQUEST: To direct staff to have the Subrecipient Agreements for
the following agencies signed by the Mayor and Clerk. The funding allocations
were approved by the Commission in April of this year.
l. American Red Cross $2,500
2. HealthCARE $2,500
3. Legal Aid of West Michigan $2,500
4. Love INC $2,500
5. Sacred Suds $2,500
6. West Michigan Veterans $2,500
Also to have the Community Housing Development Organization Agreements
signed for the following agencies:
1. Neighborhood Investment Corp. $70,000
2. Habitat for Humanity $35,000
FINANCIAL IMPACT: Funding will be allocated from the 2006-2007 Community
Development Block Grant/HOME Funds as directed by the City Commission.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To direct staff to have documents signed by the
Mayor and the Clerk.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
Consent Agenda as presented.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Carter, and Davis
Nays: None
MOTION PASSES
2006-61 NEW BUSINESS:
A. Finance Division Reorganization. FINANCE
SUMMARY OF REQUEST: Staff is recommending the reorganization of the
Finance Division. The main elements of this reorganization are: 1) elimination of
the Revenue Collections Administrator position, 2) upgrade of the Income Tax
Administrator position and, 3) physical swap of the locations of the Income Tax
and Finance Departments.
FINANCIAL IMPACT: The proposed reorganization will save between $41,000 and
$55,000 annually (depending on whether a part-time position is filled). There will
be some one-time moving costs estimated to be no more than $5,000.
BUDGET ACTION REQUIRED: We anticipate this reorganization to be
incorporated into the 2007 budget preparation process.
STAFF RECOMMENDATION: Staff recommends approval of the proposed
reorganization as described, including salary schedule adjustments.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the Finance Division reorganization including salary schedule adjustments.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, and Gawron
Nays: None
MOTION PASSES
B. Liquor License Request - CSTS, Inc., 2185 Henry (Pop-a-Top). CITY
CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from CSTS, Inc., (Pop-A-Top) for a new Outdoor
Service (1 Area) to be held in conjunction with their 2006 Class C-SDM licensed
business with Entertainment Permit.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED : No ne.
STAFF RECOMMENDATION: All departments are rec ommending approval
subjec t to final inspection.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the liquor licenser request from CSTS, Inc., 2185 Henry.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, and Shepherd
Nays: None
MOTION PASSES
C. Sale of Clay Avenue Parking Ramp. CITY MANAGER
SUMMARY OF REQUEST: To approve the sale o f the City's Clay Avenue parking
ramp to Press's Developme nt, LLC.
FINANCIAL IMPACT: $100,000 to the City, plus the property will be placed on the
tax rolls.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION : To approve th e purchase agreement b etween the
City and Press' s Development, LLC , and authorize th e Mayor and Clerk to sign it.
Motion by Vice Mayor Gawron, second by Commissioner Shepherd to approve
the purchase agreement between the City and Press's Development, LLC.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Shepherd, and Spataro
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: A Petitio n was given· to Commission, and various
comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:08 p .m.
Respectfully submitted,
Linda Potter, CMC
Deputy City Clerk
Date: July 11, 2006
To: Honorable Mayor and City Commissioners
From: Water Filtration Plant
RE: Coagulant model
SUMMARY OF REQUEST:
To purchase a coagulant model to assist the Water Filtration Plant operators in
chemical coagulant dosage for proper water treatment.
FINANCIAL IMPACT:
Coagulant model cost is $9000.00.
BUDGET ACTION REQUIRED:
None. The coagulant model is budgeted at $10,000.00.
STAFF RECOMMENDATION:
Staff recommends purchasing the coagulant model from A Y Consulting at a cost of
$9000.00.
MEMORANDUM
6/29/06
TO: M. AL-SHATEL, DEPUTY DIRECTOR- PUBLIC WORKS
FROM: R. VENEKLASEN, WATER FILTRATION SUPERVISOR
RE: COAGULANT MODEL PROPOSAL
HISTORY
The Water Filtration Plant uses Aluminum Sulfate (Alum) to coagulate, or clump
together, the suspended materials in the raw (Lake Michigan) water. This step of the
process is extremely critical as it is the initial step that sets the tone for the performance
of the remainder of the treatment process. The Plant has experimented with alternate
coagulants, Ferric Chloride and Hyper len, in the past but for a number of reasons has
returned to using alum as the coagulant of choice.
COAGULANT DOSE
The coagulant dose is based on a number of conditions presented by the raw water
quality- turbidity, alkalinity, pH, and color are the rnost prevalently used. Changes in
the levels of these constituents influence coagulant application rates and effectiveness.
Historically the coagulant dose has been determined by experience coupled with
reduction in turbidity. Periodic jar tests are used to mimic the treatment process but
seem to have limited success and are very time consuming.
STAFF INVOLVEMENT
The plant operators currently routinely perform the analysis previously indicated as part
of their routine activities. Additionally, they have monitored water quality with the use of
a particle counter in the past. The introduction of a coagulant model will require the
addition of UV 254 analysis. This is simple analysis that requires a short period of time
to perform.
OUTCOME
The anticipated results from the coagulant model are more timely and appropriate levels
of coagulant application. The model is a tool for the operator that will provide a
recommended coagulant application rate to the plant operator. In the event the raw
water quality changes, the operator can perform their routine analysis, input the results
and receive a coagulant dose recommendation in a timely manner. The operator can
then respond to the water quality change more quickly and make subsequent minor
adjustments to fine tune the application rate. This is in comparison to the approximate
three hours required for a jar test.
It is expected this tool will provide the operator information to make accurate and timely
adjustments in the treatment process resulting in improved water treatment and cost
effective chemical application.
Further, the model has been adopted at other plants for their trials of alternatives to the
use of alum as a coagulant. This is important as we begin to explore efficiencies and
costs associated with treatment residuals and disposal, filter performance (turbidity
removal), and the effect of the length of individual filter runs between washes on recycle
water volumes. Additionally over time the model can include optimization of rapid mix
and flocculator speeds for the treatment process.
MODEL USE
The coagulant model is tailored to each individual plant. It is currently being used
successfully at a number of plants using Lake Michigan as a source. The plants
currently using the model in West Michigan include: St. Joseph, Benton Harbor, South
Haven, Holland, and Grand Rapids.
RECOMMENDATION
It is rny recommendation the City purchase the coagulant model from AY Consultingat a
cost of $9,000.00 including one-year of technical support.
~
cY 1418 WoodoHff o,., G.a"d Rapids, Ml49506
Ph. (616) 975·0847 Fax (616) 975·2945
June 28, 2006
Proposal
ProposaiiD: muskOl 0606
Plant: Muskegon Water Filtration Plant, Muskegon, Michigan
Objectives: To develop coagulation computer model that will assist the plant
operators in controlling the coagulant feed rate at the Muskegon Water
Filtration Plant (WFP).
Scope of work:
~ We will develop a site-specific computer model to optimize the chemical
feed (coagulant) rate at the Muskegon WFP.
~ Using this model, we will develop a chemical feed control computer
program that will provide the plant operators with real-time advisement
of the recommended coagulant doses.
~ In addition, we will perform model and process analyses to determine if
monitoring of specific water and operating parameters could further
improve plant process control and performance.
Plant Information Needed:
~ Equipment description (type, size, quantity)
~ 4-5 years monthly operating reports (electronic files)
Expected completion:
Three months after project approval
Cost:
$9,000 (billed upon delivery of the chemical feed control program)
Technical Support:
Upon completion of the chemical feed control program, AY Consulting will
provide one year technical support at no additional cost, which will
include:
• Monthly analysis of plant process and model performance, and, if
necessary, model's fine-tuning.
• Model updates, if additional raw water quality monitoring techniques
(e.g., UV254) are implemented.
• Support with any emerging operational issues related to the plant's
coagulation process.
Confidentiality:
All data provided by the plant or generated by AY Consulting during the
course of this project will be kept strictly confidential. No information
pertaining to this work will be released in the form of publications,
outside presentations, etc. without plant's prior consent.
proposals/musk_0606
J
Date: July 11, 2006
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Defined Contribution Retirement Plan for New Hires (DPW 517M)
SUMMARY OF REQUEST: The city commission has previously approved a contract with
the 517M union that includes provision for new hires to be members of a defined contribution
retirement program in lieu of membership in the defined benefit General Employees' retirement
system. The new DC plan calls for a city contribution of 3%/6% and an employee contribution
of 0%/3% of wages. Present employees may also join the DC plan on an elective basis during a
window period.
Documents for this plan are the same as for the previous plan set-ups for Clerical, Fire and
Non-union employees and is currently under review by the attorney's office. Because were are
in process of hiring several positions that will be covered under the new plan, staff at this time is
requesting authorization to have the Mayor, Clerk and other required city officials sign the
necessary documents for implementation.
FINANCIAL IMPACT: Moving to a defined contribution plan will help stabilize and better
define the city's annual pension costs. We are negotiating similar arrangements for other
employee groups. At this time, new employees in the Fire, Non-Union, Clerical and 517M
groups are covered by a defined contribution arrangement. The status of this issue with the
other employee groups is as follows: Police Patrol (in arbitration); Police Command (to be
negotiated).
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval
COMMITTEE RECOMMENDATION: None
RESOLUTION# 2006-60 (c)
RESOLUTION TO ADOPT MERS DEFINED CONTRIBUTION PLAN
FOR LOCAL 517M UNION EMPLOYEES
WHEREAS, it has been discussed and negotiated with Local 517M, Unit 2 of the Service
Employees International Union ("Union") that a defined contribution money purchase plan
should be adopted for the union members in lieu of continuing the Defined Benefit Plan for new
hires effective January I, 2006; and,
WHEREAS, if has further been discussed and negotiated that current union members will be
given a one time, irrevocable opportunity to convert the greater of their employee contributions,
and the present value of their accrued benefit, disregarding vesting, in the City's Defined Benefit
Plan, and transfer the corresponding lump sum dollar present value to the defined contribution
plan to the credit of the transferring member, said election to be made within 90 days after
execution of the 2005-2007 collective bargaining agreement, and
WHEREAS, the City desires to adopt the defined contribution money purchase plan through
MERS (with ICMA being the current Third Party Administrator administering the plan);
NOW, THEREFORE, BE IT RESOLVED that the City Commission deems it in the best interest
of the City and the Union to adopt a defined contribution money purchase retirement plan
("Plan") in the form of the MERS and ICMA documents, effective January I, 2006. The Plan
shall be maintained for the exclusive benefit of eligible employees and their beneficiaries, those
eligible employees being members of the Union.
Relevant provisions related to the plan are as follows:
All Union employees hired on and after January I, 2006 are mandatory participants in the
Plan.
The City will contribute 3% of the eligible participant's Medicare taxable W-2
compensation each year.
In addition, when a participant first becomes eligible to participant in the plan, the
employee must elect whether or not to contribute 3% of his or her Medicare taxable W-2
compensation. If the employee elects to contribute 3% of his or her compensation, the
City will match that 3% contribution, dollar for dollar.
Employees will become vested in the City's 3% or 6% annual Plan contributions under a
five-year graded vesting schedule with credit given for all years of service since hire with
the City, i.e.,
Full Years of Service Vesting Percentage
<I year 0%
I year 20%
2 years 40%
3 years 60%
4 years 80%
5 years 100%
Additional relevant provisions related to the plan and transfers to the plan are as follows:
Existing Union employees may make a one time, irrevocable, election to transfer the
greater ofthe employee's contributions to the City of Muskegon's Defined Benefit Plan,
and the lump sum dollar present value, disregarding vesting, of the individual 's accrued
benefit in the City of Muskegon's Defined Benefit Plan (accrued benefit disregarding
vesting) payable at their normal retirement date as a life annuity, to the Plan prior to
November 15, 2006. If the defined benefit plan participant is eligible to receive an
immediate benefit, the transfer will be based upon the present value of the individual 's
accrued benefit payable immediately as a life annuity.
Defined benefit plan participants shall have until November 15, 2006 to elect, in writing,
to transfer. Fai lure to elect to transfer to the Plan constitutes a refusal to transfer. Upon
an election to transfer to the Plan, that employee's participation in the defined benefit
plan terminates effective November 30, 2006. Assets shall be transferred as soon as
possible with values, specified above, as ofNovember 30, 2006. Contributions will
commence in the Plan with the pay period commencing November , 2006 with the
first contribution occUlTing in December 2006. The Finance Director will work with
MERS to develop any additional, detailed procedures and deadline dates for the transfer
to the Plan.
BE IT FURTHER RESOLVED that the Mayor and Clerk are authorized to execute the MERS
Revised Uniform Defined Contribution Program Resolution and the MERS Uniform Defined
Contribution Program Adoption Agreement, copies of which are attached to this resolution along
with the approved Declaration of Trust.
BE IT FURTHER RESOLVED that the City has investment direction under the Plan only for
unvested employer contributions; each individual participant personally directs the investment
for his/her account balance, including all employer contributions, which vest in the patticipant
under the employer vesting schedule
Adopted this 11 th day of July 2006.
Ayes: Gawron , Shepherd, Spataro, Warmington, Carter, and Davis
Nays: None
Absent: Wierenga
Attest: ~
Gail-A. Kundm.ger,-MMC, City Clet*-
L/nda. /orfUj /)c (JII"t(;>t c,·-v C(rr)(
CERTIFICATION
(Adoption of defined contribution plan for Local 517M, Unit 2)
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 11 , 2006.
Linda Potter, CMC
Deputy City Clerk
MERS REVISED UNIFORM DEFINED CONTRIBUTION
PROGRAM RESOLUTION
WHEREAS, the MERS Plan Document of 1996, effective October I, 1996, authorized a
defined contribution option (Section 19A, Benefit Program DC) as a new benefit program that a
participating municipality or court may adopt for MERS members to be administered under the
discretion of the Municipal Employees' Retirement Board as trustee and fiduciary, directly by (or
through a combination of) MERS or MERS' duly-appointed third-party administrator.
WHEREAS, as a new provision, Section 19A, along with the remainder of the Plan, received
from the Internal Revenue Service a Letter of Favorable Determination (dated July 8, 1997) that the
Plan is a qualified Plan under Section 401 of the Internal Revenue Code, and an exempt trust under
Section 501.
WHEREAS, on May 5, 1997, the Municipal Employees' Retirement Board entered into an
Alliance Agreement with ICMA-RC (the International City Management Association Retirement
Corporation) as third-party administrator for the defined contribution plans under Plan Document
Section 19A.
WHEREAS, on November 14, 2001, following MERS' due diligence search and review, the
Retirement Board and ICMA-RC entered into the Amended and Restated Alliance Agreement (the
"2001 Alliance Agreement") (Attachment 1) for third-party administrator services. Participating
employees of MERS' municipalities and courts adopting Benefit Program DC receive enhanced
services and favorable decreased participant fees under the 200 I Agreement. Additionally, such
services and fees shall also be available where the participating municipality or court adopting Benefit
Program DC has in effect (or subsequently establishes) an IRC section 457 deferred compensation plan
or section 40 I (k) plan. Approval of this Revised Uniform Resolution by each MERS participating
municipality and court which adopts or has adopted MERS Benefit Program DC is necessary and
required in order that the benefits available under the 2001 Alliance Agreement may be extended to
covered participants.
WHEREAS, this Revised Uniform Resolution has been approved by the Board under the
authority of 1996 PA 220, Section 36(2)(a), MCL 38.1536(2)(a), declaring that the Retirement Board
"shall determine ... and establish" all provisions of the retirement system. Under this authority, the
Board authorized Section 19A, the Defined Contribution Benefit Program, which shall not be
implemented unless in strict compliance with the terms and conditions of this Revised Resolution.
• It is expressly agreed and understood as an integral and nonseverable part of this Revised
Resolution that Section 43B of the Plan Document shall not apply to this Revised Uniform
Resolution and its administration or interpretation.
• In the event any alteration of the terms or conditions stated in this Revised Uniform
Resolution is made or occurs, under Section 43B or other plan provision or other law, it is
expressly recognized that MERS and the Retirement Board, as sole trustee and fiduciary of
the MERS Plan and its trust reserves, and whose authority is nondelegable, shall have no
obligation or duty: to administer (or to have administered) the Defined Contribution Benefit
MERS DC Adoption Resolution 11/14/01 Page 1 of 6 pages
Program; to authorize the transfer of any defined benefit assets to the Defined Contribution
Benefit Program; or to continue administration by the third-party administrator or by MERS
directly.
WHEREAS, concurrent with this Revised Resolution, and as a continuing obligation, this
governing body has completed and approved, and submitted to MERS documents necessary for
adoption and implementation of the MERS Benefit Program DC. This obligation applies to any
documents deemed necessary to the operation of the defined contribution program by MERS' third-
party administrator.
NOW, THEREFORE, BE IT RESOLVED that the governing body adopts (or readopts)
MERS Benefit Program Defined Contribution as provided below.
I. NEW EMPLOYEES
Effective _..:.J..:.a...:.n...:.u..:.a_r.=.y_1_ _ _., 20~, (to be known as the ADOPTION DATE), the
_ _ __,c...,i_.t""y,__,o""f"---'MC!.u""'=s"'kS<e="'g"o""n'---:--::-,-----,---------hereby adopts Benefit Program
(MERS municipality/court)
DC (as set forth in the MERS Uniform Defined Contribution Program Adoption Agreement) for
T.ocal 5t 7ML Unit. 2L of the Sernce Employees
InternatJ oual !JDlQu
( .fy /d' . . #)
spec1 emp 1oyees !VISIOn s
first hired on and after the Adoption Date, and optional participation for any employee or officer of
this municipality otherwise eligible to participate in MERS under Sections 2B(3)(a) and 3(3) of the
Plan Document who has previously elected to not participate in MERS. ONLY THOSE
EMPLOYEES ELIGIBLE FOR MERS MEMBERSIDP (SECTIONS 2B(3) AND 3 OF THE
PLAN DOCUMENT) SHALL BE ELIGIBLE TO PARTICIPATE.
(A) CONTRIBUTIONS shall be as allowed and specified in the Adoption Agreement
(Attachment 2, completed and approved and a certified copy submitted to MERS
concurrent with and incorporated by reference in this Resolution) subject to the
provisions of MERS Plan Document: Section 19A(2) that employer contributions shall
be in any percentage of compensation from I% to the maximum allowed by the Internal
Revenue Code, in increments of 0.1 %; and Section 19A(3), under which an employee
member may voluntarily contribute additional amounts to the extent allowed by the Code.
(B) EARNINGS under the Adoption Agreement shall include items of "Compensation" under
Section 2A(6) of the MERS Plan Document, being the Medicare taxable wages reported on
the member's W-2 statement.
(C) VESTING shall be as allowed and specified under:
(I) Plan Section 19A(l2), whose text is set out m Section Il(G) of this Revised
Resolution: and
(2) the Adoption Agreement.
STOP If covering new employees only, skip II and go to III on page 5. STOP
MERS DC Adoption Resolution ll/14/01 Page 2 of 6 pages
II~ OPTIONAL PROVISION FOR CURRENT MERS MEMBERS WHERE DC
PROGRAM FOR NEW EMPLOYEES ESTABLISHED (PLAN SECTION 19A(8)-(ll))
THIS OPTIONAL PROVISION SHALL ONLY BE SELECTED
WHERE THE TOTAL FUNDED PERCENT OF AGGREGATE
ACCRUED LIABILITIES AND VALUATION ASSETS OF ALL
RESERVES SPECIFIED IN TABLE 11 (OR SUCCESSOR TABLE)
OF THE MOST RECENT MERS ANNUAL ACTUARIAL
VALUATION REPORT IS AT LEAST SIXTY PERCENT (60%).
IT IS ADDITIONALLY RESOLVED, as provided in each of the following paragraphs:
(A) Effective on the Adoption Date, pursuant to Plan Section 19A(8)(b) all current MERS
defined benefit members who are members of the same employee classification described
in Section I above on the Adoption Date shall:
THE GOVERNING BODY SHALL
SELECT ONLy 0 NE OF THE FOLLOWING
where vested under this municipality's MERS vesting program (10, 8, or 6 years)
where the employee has at least the following number of years of credited service for
this municipality on Adoption Date: (insert whole number less than
vesting program)
without regard to vesting
be offered the opportunity to irrevocably elect coverage under Benefit Program DC, under
the detailed procedures specified in Plan Section 19A(9)-( 11 ).
(B) For each eligible employee, an opportunity to irrevocably elect to participate in Benefit
Program DC shall be offered. Section 19A(9) specifies an employee's written election to
participate shall be filed with MERS: (a) not earlier than the last day of the third month
after this Resolution is adopted and received by MERS; and (b) not later than the first day
of the first calendar month that is at least six months after MERS receives this Resolution.
This means each eligible employee will have about 90 days to make the decision.
After MERS receives this Resolution, this governing body's authorized official and eligible
employees will be advised by MERS of the election window timelines and other
information to consider in making the irrevocable decision whether to participate in Benefit
Program DC.
(C) Participation for those electing coverage shall be effective the first day of the first calendar
month at least seven (7) months after MERS' receipt of the Resolution, here designated as
being the month of , 20__, (insert month and year) which shall
be known as the "CONVERSION DATE."
MERS DC Adoption Resolution ll/14/01 Page 3 of6 pages
(D) The opportunity for current employees on the Adoption Date to participate in the DC
Program shall:
THE GOVERNING BODY SHALL
SELECT ONLY ONE OF THE FOLLOWING
apply to all employees who separate from or terminate employment with
this municipality after the Adoption Date and before the Conversion
Date, so long as the employee does not receive a retirement allowance
from MERS based on service for this municipality.
_ _ not apply to any employee who separates from or terminates
employment with this municipality after the Adoption Date.
(E) CONTRIBUTIONS shall be as provided in Section I (A) above.
(F) EARNINGS shall be as provided in Section I (B) above.
(G) VESTING shall be as provided in Section I (C) above, and participants shall be credited,
on participant written request and MERS' verification of such service, with all eligible
service, if any, specified in Plan Section 19A(I2) which states:
Where a member has previously acquired in the employ of any participating municipality or
participating court:
(a) not less than I year of defined benefit service in force with a participating municipality
or participating court;
(b) eligible credited service where the participating municipality or participating court has
adopted the Reciprocal Retirement Act, 1961 PA 88;
(c) at least 12 months in which employer contributions by a participating municipality or
participating court have been made on behalf of the member under Benefit Program
DC,
such service shall on the member's written request to the employer and MERS' verification of
such service be applied toward satisfying the vesting schedule for employer contributions.
This requirement shall apply to all adoptions of Benefit Program DC on and after October 1,
2000; where previously adopted, the participating municipality or participating court may
adopt this subsection (12) with full effectiveness as of the original defined contribution
adoption date for the employer division involved.
(H) For each employee irrevocably electing to participate in Benefit Program DC, then under
Plan Section 19A(ll), MERS shall transfer to the member's credit (as adjusted through
MERS' records to the Conversion Date) the greater of:
(I) The member's accumulated contributions; or
(2) The actuarial present value (as determined in Paragraph (I) below).
The transfer shall be made approximately 30 calendar days after the Conversion Date, and
the transfer amount shall include pro-rated regular interest at the regular Board-established
MERS DC Adoption Resolution 11/14/0 I Page 4 of 6 pages
rate of (currently four percent (4%)) measured from the Conversion Date to the actual
transfer date.
(I) Per Plan Section 19A(Il)(b), the Retirement Board has established the assumptions for
calculation of the actuarial present value of a member's accrued benefit that may be
transferred. The assumptions are:
(1) The interest rate in effect as of the Adoption Date, to determine actuarial
present value, shall be the Board-established investment earnings rate
assumption (currently eight percent (8.00%)).
(2) The funded level for the member's specific MERS division (total funded
percentage of the present value of accrued benefits and valuation assets of all
reserves) as of the Adoption Date from the most recent MERS annual actuarial
valuation report data provided by MERS' actuary. In the APV calculation, the
funded level used shall be:
THE GOVERNING BODY SHALL
SELECT ONLY ONE OF THE FOLLOWING
_ _ Funded level for the division (not to exceed I 00% funded level).
If greater than the division's funded level but not more than 100% funded
level, then MERS is directed to compute the funded percentage for the
transfer calculation on % funded basis (insert number not less than
funded level percentage and not more than 100%). Where less than !00% funded
level exists, this governing body recognizes that such direction shall
increase its pension funding liability. MERS shall not implement such
direction unless the governing body forwards to MERS sufficient cash up to
the funded level selected for all members prior to the Conversion Date; if
sufficient cash is not forwarded, then the governing body expressly
covenants with MERS and directs, as a condition of this selection, to
MERS billing and the governing body remitting to MERS all contributions
necessary to fund the unfunded liability occasioned by the aggregate
transfer of the difference between the actual funded level for the division
and funded level directed above over a period of four (4) years.
III. IMPLEMENTATION DIRECTIONS FORMERS BENEFIT PROGRAM DC
THIRD-PARTY ADMINISTRATOR.
(A) The governing body of this MERS participating municipality or court as Employer desires
that MERS Benefit Program DC be administered by MERS' duly-designated third-party
administrator and that some or all of the funds held under such plan be invested in the
TPA's retirement trust established for the collective investment of funds held under the
Employer's retirement, defined contribution, and deferred compensation plans.
(B) The Employer hereby establishes MERS Benefit Program Defined Contribution as
authorized by Section 19A of the Municipal Employees' Retirement System of Michigan
Plan Document, in the form of the third-party administrator's IRS-qualified retirement
trust.
MERS DC Adoption Resolution ll/14/0 I Page 5 of 6 pages
(C) The Declaration of Trust (Attachment 2, Appendix A, approved and adopted concurrent
with and incorporated by reference in this Resolution) is operative and applies with respect
to any MERS Benefit Program DC plan or deferred compensation plan previously or
subsequently established by the Employer, if the assets are to be invested in the third-party
administrator's fetirement trust.
(D) Finance Direc tor (use title of official, not name) shall be the Employer's MERS
Benefit Program Defined Contribution Plan coordinator; shall receive necessary reports,
notices, etc., from the third-party administrator or its retirement trust; shall cast, on behalf
of the Employer, any required votes under the retirement trust; may delegate any
administrative duties relating to the defined contribution plan to appropriate departments.
(E) The Municipal Employees' Retirement Board retains full and unrestricted authority over
the administration of MERS Benefit Program Defined Contribution, including but riot
limited to the appointment and termination of the third-party administrator, or MERS' self-
administration of the defined contribution program in whole or in part.
IV. EFFECTIVENESS OF THIS REVISED RESOLUTION
BE IT FINALLY RESOLVED: This Resolution shall have no legal effect under the MERS
Plan Document until a certified copy of this adopting Resolution shall be filed with MERS, and MERS
determines that all necessary requirements under Plan Document Section 19A, the 2001 Alliance
Agreement, the Adoption Agreement, and this Resolution have been met. All dates for implementation
of Benefit Program DC under Section 19A shall be determined by MERS from the date of filing with
MERS of this Revised Resolution in proper form and content. Upon MERS determination that all
necessary documents have been submitted to MERS, MERS shall record its formal approval upon this
Resolution, and return a copy to the Employer's defmed contribution plan coordinator identified in
Section III (D) above.
In the event an amendatory Resolution or other action by the municipality is required, such
Resolution or action shall be deemed effective as of the date of the initial Resolution or action where
concurred in by this governing body and MERS (and the third-party administrator if necessary).
Section 54 of the Plan Document shall apply to this Resolution and all acts performed under its
authority. The terms and conditions of this Revised Resolution supersede and stand in place of any
prior resolution, and its terms are controlling.
I hereby certify that the above is a true copy of a Resolution adopted at the official meeting held
on _ __ J_u
~ lY
,.___l_l_ _ _ , 20QL. d~?~
(S ignature of authorized official)
Please send MERS fully executed copy of: this Revised Resolution; Part II (Administrative
Services Agreement) of the 2001 Alliance Agreement; Adoption Agreement with Declaration of
Trust and certified minutes stating governing body appt·oval, and/or union contract language.
Received and Approved by the Municipal Employees' Retirement System of Michigan
Dated: _ __ __ _ _ _ , 20Q_§_
(Authorized MERS signatory)
Att.
MERS DC Adoption Resolution 11114/01 Page 6 of 6 pages
MERS UNIFORM DEFINED CONTRIBUTION PROGRAM
ADOPTION AGREEMENT
The Employer, a participating municipality or participating court within the State of Michigan
that has adopted MERS coverage, hereby establishes a Section 19A, Benefit Program DC to
beknownas Local 517M. Unit 2 DC Retirement Plan
(the "MERS Plan") in the fonn of the ICMA Retirement Corporation Governmental Money
Purchase Plan and Trust and attached Declaration of Trust of VantageTrust, as amended and
as authorized by Section 19A of the Municipal Employc;es' Retirement System of Michigan
Plan Docwnent.
I. EMPLOYER: --~C~i~tLy~o~f_M~us~k~e~g~o
7n~~~------~-------------
(Narne of municipality or court)
II. The Effective Date of the Benefit Program DC shall be the first day of the Plan Year
during which the Employer adopts the Plan, unless an alternate Effective Date is
hereby specified: January 1, 2006
III. N onnal Retirement Age shall be age 55 (not to exceed age 65).
IV. ELIGIBILITY REQUIREMENTS
I. The following group or groups of Employees are eligible to participate in the
Program:
Local 517M, Unit 2, of the Service Employees
International Union
(Specify employee classification and division numbers)
2. Only those Employees eligible for MERS Membership (Section 3 of the
MERS Plan) shall be eligible to participate. (A copy of ALL employee
emollment.forms must be submitted to MERS as well as ICMA.)
V. CONTRIBUTION PROVISIONS
I. The Employer shall contribute on behalf of each Participant 3 % of
Earnings or 6 % g£rnings for the Plan Year (subject to the limitations of
sections 415(c) and (e) of the Internal Revenue Code). Each Participant is
required to contribute % of Earnings for the Plan Year to
receive 6% from the Employer. The participant must
elect to contribute 3% when first eligible to
participate and the election is irrevocable.
MERS Benefit Program DC Adoption Agreement I
2127/04
Attachment 2
If Employee contributions are required, an Employee shall not have the right to
discontinue or vary the rate of such contributions after becoming a Plan
Participant.
The Employer hereby elects to "pick up" the Mandatory/Required Employee
contribution. (Allows employee contributions to be made on a pre-tax basis)
Yes 0 No
[Note to Employer: Picked up contributions are excludable from the
Employee's gross income under Section 414(h)(2) of the Internal Revenue
Code of 1986 only if they meet the requirements of Rev. Rul. 81-35, 1981-1
C.B. 255. Those requirements are (1) that the Employer must specify that the
contributions, although designated as Employee contributions, are being paid
by the Employer in lieu of contributions by the Employee; and (2) the
Employee must not have the option of receiving the contributed amounts
directly instead of having them paid by the Employer to the Plan.
Neither an advisory opiuion letter issued by the Internal Revenue Service with
respect to the MERS Plan, nor a determination letter issued to an adopting
Employer, is a ruling by the Internal Revenue Service that Employee
contributions that are picked up by the Employer are not includible in the
Employee's gross income for federal income tax purposes. The Employer may
seek such a ruling.]
2. Each Employee may make a voluntary (unmatched), after-tax contribution,
subject to the limitations of Sections 415(c) and (e) of the Internal Revenue Code.
3. Employer contributions and Employee contributions shall be contributed to the
Trust in accordance with the following payment schedule:
Bi-weekly
VI. EARNINGS
Earuings shall be the Medicare taxable wages reported on the Employee's W-2
statement.
VII. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule:
****** SEE NEXT PAGE ******
MERS Benefit Program DC Adoption Agreement 2
2127104
Years of Specified
Service Vesting
Completed Requirements
Zero 0 %
One 20 %
Two 40 %
Three 60 %
Four 80 %
Five 100 %
Six %
Seven or more 100 %
VIII. Loans are permitted under the Program:
0 Yes No
IX. The Plan will accept an eligible rollover distribution from an eligible retirement plan
described in Section 40l(a)(including "40l(k)") or 403(a) of the Code, an armuity
contract described in Section 403(b) of the Code, an eligible deferred compensation
plan described in Section 457(b) of the Code maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state, or an individual retirement account or armuity described in
Section 408(a) or 408(b) of the Code, including after-tax employee contributions, as
applicable.
Yes 0 No
X. The Employer hereby agrees to the proVISions of the MERS Uniform Defined
Contribution Program and agrees that in the event of any conflict between Section
19A and the MERS Plan, the provisions of Section l9A shall control.
XI. The Employer hereby appoints the ICMA Retirement Corporation as the Plan
Administrator pursuant to the terms and conditions of the Plan.
The Employer hereby agrees to the provisions of the Plan.
XII. The Employer hereby acknowledges it understands that failure to properly fill out this
Adoption Agreement may result in the ineligibility of the Plan in the Benefit Program
DC.
MERS Benefit Program DC Adoption Agreement 3
2127/04
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this
11ih day of July , 20 06 .
Employer:
By:
Title:
Attest:
MERS Benefit Program DC Adoption Agreement 4
2127104
Appendix A
DECLARATION OF TRUST
This Declaration of Trust (the "Group Trust Agreement") is made as of the 19th day of
May 2001, by VantageTrust Company, which declares itself to be the sole Trustee of the
trust hereby created.
WHEREAS, the ICMA Retirement Trust was created as a vehicle for the
commingling of the assets of governmental plans and governmental units described in Section
818(a)(6) of the Internal Revenue Code of 1986, as amended, pursuant to a Declaration of
Trust dated October 4, 1982, as subsequently amended, a copy of which is attached hereto and
incorporated by reference as set out below (the "ICMA Declaration"); and
WHEREAS, the trust created hereunder (the "Group Trust") is intended to meet the
requirements of Revenue Ruling 81-100, 1981-1 C.B. 326, and is established as a common
trust fund within the meaning of Section 391:1 of Title 35 of the New Hampshire Revised
Statutes Annotated, to accept and hold for investment purposes the assets of the Deferred
Compensation and Qualified Plans held by and through the ICMA Retirement Trust.
NOW, THEREFORE, the Group Trust is created by the execution of this Declaration
of Trust by the Trustee and is established with respect to each Deferred Compensation and
Qualified Plan by the transfer to the Trustee of such Plan's assets in the ICMA Retirement
Trust, by the Trustees thereof, in accord with the following provisions:
I. Incorporation of ICMA Declaration by Reference; ICMA By-Laws. Except as
otherwise provided in this Group Trust Agreement, and to the extent not inconsistent
herewith, all provisions of the ICMA Declaration are incorporated herein by reference
and made a part hereof, to be read by substituting the Group Trust for the Retirement
Trust and the Trustee for the Board of Trustees referenced therein. In this respect,
unless the context clearly indicates otherwise, all capitalized terms used herein and
defined in the ICMA Declaration have the meanings assigned to them in the ICMA
Declaration. In addition, the By-Laws of the ICMA Retirement Trust, as the same
may be amended from time-to-time, are adopted as the By-Laws of the Group Trust to
the extent not inconsistent with the terms of this Group Trust Agreement.
Notwithstanding the foregoing, the terms of the ICMA Declaration and By-Laws are
further modified with respect to the Group Trust created hereunder, as follows:
(a) any reporting, distribution, or other obligation of the Group Trust vis-a-vis any
Deferred Compensation Plan, Qualified Plan, Public Employer, Public Employer
Trustee, or Employer Trust shall be deemed satisfied to the extent that such
MERS Benefit Program OC Adoption Agreement 5
2/27104
obligation is undertaken by the ICMA Retirement Trust (in which case the
obligation of the Group Trust shall run to the ICMA Retirement Trust); and
(b) all provisions dealing with the number, qualification, election, term and
nomination of Trustees shall not apply, and all other provisions relating to trustees
(including, but not limited to, resignation and removal) shall be interpreted in a
manner consistent with the appointment of a single corporate trustee.
2. Compliance with Revenue Procedure 81-100. The requirements of Revenue
Procedure 81-100 are applicable to the Group Trust as follows:
(a) Pursuant to the terms of this Group Trust Agreement and Article X of the By-
Laws, investment in the Group Trust is limited to assets of Deferred
Compensation and Qualified Plans, investing through the ICMA Retirement
Trust.
(b) Pursuant to the By-Laws, the Group Trust is adopted as a part of each
Qualified Plan that invests herein through the ICMA Retirement Trust.
(c) In accord with the By-Laws, that part of the Group Trust's corpus or income
which equitably belongs to any Deferred Compensation and Qualified Plan
may not be used for or diverted to any purposes other than for the exclusive
benefit of the Plan's employees or their beneficiaries who are entitled to
benefits under such Plan.
(d) In accord with the By-Laws, no Deferred Compensation Plan or Qualified Plan
may assign any or part of its equity or interest in the Group Trust, and any
purported assignment of such equity or interest shall be void.
3. Governing Law. Except as otherwise required by federal, state or local law, this
Declaration of Trust (including the ICMA Declaration to the extent incorporated
herein) and the Group Trust created hereunder shall be construed and determined in
accordance with applicable laws of the State of New Hampshire.
4. Judicial Proceedings. The Trustee may at any time initiate an action or proceeding in
the appropriate state or federal courts within or outside the state of New Hampshire for
the settlement of its accounts or for the determination of any question of construction
which may arise or for instructions.
MERS Benefit Program DC Adoption Agreement 6
2/27104
•
IN WITNESS WHEREOF, the Trustee has executed this Declaration of Trust as ofthe day
and year first above written.
V ANTAGETRUST COMPANY
By:
Name: Paul F. Gallagher
Title: Assistant Secretary
MERS Benefit Progrnm DC Adoption Agreement 7
2127/04
Commission Meeting Date: July 11, 2006
Date: July 3, 2006
To: Honorable Mayor and City Commission
From: Community & Neighborhood Services Department
Re: Signing of 2006-2007 Subrecipient and Community
Housing Development Organization Agreements
SUMMARY OF REQUEST: To direct staff to have the Subrecipient
Agreements for the following agencies by the Mayor and Clerk. The funding
allocations were approved by the Commission in April of this year.
1. American Red Cross $2,500
2. HealthCARE $2,500
3. Legal Aid of West Michigan $2,500
4. Love INC $2,500
5. Sacred Suds $2,500
6. West Michigan Veterans $2,500
Also to have the Community Housing Development Organization
Agreements signed for the following agencies:
1. Neighborhood Investment Corp $70,000
2. Habitat for Humanity $35,000
FINANCIAL IMPACT: Funding will be allocated from the 2006-2007
Community Development Block Grant/HOME Funds as directed by the City
Commission.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To direct staff to have documents signed by
the Mayor and the Clerk.
COMMITTEE RECOMMENDATION: All of the allocations were previously
approved by the Commission.
SUBRECIPIENT AGREEMENT I 2006-2007
This SUBRECIPIENT made this I st day of June, 2006, by and between the City of Muskegon,
Michigan, A Municipal Corporation, (hereinafter "Recipient") and
whose offices are located at , Muskegon, MI (hereinafter "Subrecipient"),
WITNESSETH:
WHEREAS, Subrecipient will receive Community Development Block Grant (CDBG)
funds from the Recipient, in the amount of$ , to be used for the following:
WHEREAS, the parties wish to set f01th the conditions on which the funds are to be
made available;
NOW THEREFORE, in consideration of the covenants herein contained, the parties do
mutually agree as follow:
I. GENERAL CONDITIONS
I. Services to be delivered are eligible activities as defined in Section
570.200 and 570.201 of the CDBG Administrative Regulations (CFR
570).
2. The Subrecipient certifies that the service is either:
a. a new service or
b. a quantifiable increase in the level of a service above the level which
has been provided by or in behalf of the applicant from local revenue
sources or State funds received by the applicant in the twelve (12)
calendar months prior to submission of the proposal, or
c. a continuation of a service that would otherwise be decreased due to
events beyond the control of the Subrecipient.
3. The Subrecipient is incorporated as a non-profit organization m good
standing under Michigan Law.
4. The Subrecipient warrants that a cmTent copy of its charter (if applicable),
Articles of Incorporation and By-Laws are on file with the Department of
Community and Neighborhood Services. The Subrecipient shall also keep
I
a current list of its board members, its officers and their addresses on file
with the Community & Neighborhood Services Department.
5. By resolution, the Subrecipient's Board of Directors shall certify to the
City a responsible contact person, who shall be considered their
representative in all matters relating to this Agreement for communication
and administrative purposes.
Until further written notice from the Subrecipient, said contact person shall be:
II. PERSONNEL
1. The Subrecipient shall maintain direct control of all personnel employed by it and
to provide the necessary training and supervision of its employees in carrying out
contracted programs. However, implementation of the "project" must meet the
requirement and approval of Community and Neighborhood Services.
2. In all work made possible by or resulting from this agreement, affirmative action
will be taken to insure that low income persons, particularly minorities and
women, are given maximum opportunity for training and employment; and that
minority business concerns located in the area, to the greatest extent feasible, are
awarded sub-contracts when permitted by this Agreement (Section 3, CDF 135).
3. Incorporated by reference are Title VI of the Civil Rights Act of 1964, Executive
Order 11246 and OMB Circular A-102, Attachment 0 which relates to equal
opportunity. Copies are available at the Community Development Office.
4. The Subrecipient (including its membership body, Board of Directors,
committees, and paid and other volunteer staff) agrees that it will comply with
City policies and procedures concerning equal opportunity, affirmative action,
and non-discrimination in employment practices because of age, religion, race,
color, national origin, sex, education association, marital status or physical
limitation.
III. SCOPE OF SERVICES
The Subrecipient shall provide the services specified in Attachment "A", Scope of
Services, in exchange for financial compensation detailed in Attachment "B".
2
IV. COMPENSATION AND METHOD OF PAYMENT
I. The maximum amount which the Subrecipient may receive pursuant to this
Agreement is _________
2. The Subrecipient warrants that its Board of Directors has approved a budget
request to , shall remain unchanged during the year unless
amended as permitted in this Agreement. The Subrecipient may not, without City
Commission approval, make transfer between categories not exceeding I 0% of
the overall budget total, or $2,000.00, or whichever is greater.
3. Upon approval of Subrecipient's request for payment, the Subrecipient shall be
reimbursed for expenses within a maximum of twenty (20 days.)
4. To receive payments, the Subrecipient must complete and submit the following:
a. Request for Payment
b. Detailed Invoice for Actual Expenditures
c. Quarterly Performance Reports
5. All program income, received by the Subrecipient, (if any) shall be disbursed by
the Subrecipient prior to request for payments from the Recipient. Program
income resulting from the project will be handled in accordance with the
requirements of24 CFR 570.503 applicable to CDBG Recipients.
6. If at the end of the term of this Agreement there are unexpended portions of the
contract amount set forth in this Agreement, the City may recapture said amount
for reallocation to other purposes.
7. If Subrecipient fails to comply with tem1s specified in this Agreement or refused
to accept and meet conditions imposed by the Department of Housing and Urban
Development (HUD), the Recipient may immediately terminate payments to the
Subrecipient and recover any funds it has advanced. In the event of the inability
of Subrecipient to perform or complete the project, or termination of the
Agreement by the City Commission, Recipient will pay only invoices for work
performed or satisfactorily completed.
8. The Recipient shall not be held liable for expenditures or obligations incurred in
excess of the authorized total budget, nor shall the City be held liable for
expenditures or obligations for ineligible cost pursuant to Section 570.200 and
570.201 of the Housing and Community Development Act.
3
IV. FINANCING AUDITS AND INSPECTIONS
I. The Subrecipient shall document the costs incurred with CDBG funds with the
support of properly executed payrolls, time records, invoices, contracts, vouchers,
receipts, or other official documentation that shows in proper detail the nature and
propriety of charges. All such documents must be clearly identifiable and readily
assessable during the term of the Agreement to City and HUD officials or their
authorized representative for audit and examination as often as the City may deem
necessary. Additionally, the Subrecipient agrees to securely maintain such
documents for a period of three (3) years after termination of this Agreement.
2. The Subrecipient is to act within thirty (30) days after the signing of this
Agreement to establish a procedure for its accounting operation that will not be
inconsistent with Federal Management Circular A-102, Attachment G, and can be
certified auditable by the Accountant for the Community and Neighborhood
Services Department. The auditable procedure shall insure that monies provided
by the Community Development Block Grant program can be separately traced
from other funds of the Subrecipient.
3. The Recipient shall provide the Subrecipient with a copy of any account
requirements established by HUD, and the Subrecipient shall thenceforth be
responsible for compliance with such requirements.
4. Program Income earned by the Service Agency during the grant period shall be
retained by the Subrecipient, and in accordance with OMB Circulars A-1 02, A-
ll 0 and A-122 shall be:
a. Added to funds committed to the project by the City and the Subrecipeint to
be used to further eligible program objectives as defined in the scope of
services of this Agreement (see Attachment A).
b. Deduct from the total project costs for the purposes of determining the net
costs on which the Federal (CDBG) share of the cost will be based.
5. No CDBG funds shall be disbursed under this Agreement by the Subrecipient or
any others contracted by the Subrecipient unless those contracted are in
compliance with City and HUD requirements with regard to fiscal matter and civil
rights to the extent such requirements are applicable. The Subrecipient shall
provide the Recipient with a copy of such contracts.
6. The Subrecipient shall provide proof of Bonding Insurance for all employees who
handle funds.
4
V. INSURANCE COVERAGE
The Subrecipient shall indemnify, defend, and hold the Recipient, its officers, and the
employees harmless with respect to any damage claim arising out of activities specified
by this Agreement. This Subrecipient shall maintain for the entire period of this
Agreement a valid policy of liability insurance naming the City of Muskegon (Recipient)
as an insured party with limits of not less than $300,000 per occurrence. The
Subrecipient shall also maintain coverage during the Agreement period for Workers'
Compensation as required by law. The Subrecipient shall submit proof of insurance and
amount of coverage to the Community and Neighborhood Services office prior to
receiving any funds.
VI. REPORTS, MONITORING AND EVALUATION
1. The Subrecipient agrees to cooperate fully with the Community and
Neighborhood Services office, City and HUD officials, Citizen Committees, or
any other individuals appointed by City Commission to evaluate and monitor the
requirements and performance of programs financed with CDBG funds. The
Subrecipient agrees to provide to the same parties listed information and reports,
oral or written, as may reasonably be required or requested during the term of this
Agreement on mattes relating to program activities, performance, or contract
compliance.
2. The Subrecipient agrees to complete and submit to the Community and
Neighborhood Services Office in a timely manner a Quarterly Performance
Report.
The repmi forms are to be provided by the City. The Subrecipient agrees to collect and make
available to the Community and Neighborhood Services Department the following information
on its clients or program participants:
a. Street (only) address of the client: (inside or outside City);
b. Month and year of initial services;
c. Number of services units rendered to each client served under this agreement;
d. Age and sex of the client or participant;
e. Whether the client or participant is the head of household;
f. Whether client or participant is a member of a minority group (which group);
g. Family income by family size (which will be indicated by checking an income
range category);
h. Whether client or participant head of household is handicapped;
The information is to be collected on a tabulation sheets provided by the City.
The form will state that the client/participant information being collected is
required in order for the Subrecipient to receive Community Development Block
5
Grant funds from the City of Muskegon. Client information will be submitted
quarterly with the Performance Reports.
Alternate systems of collecting data required in this section can be developed in
consultation with the Community and Neighborhood Services Office. The
Recipient retains the final right to approve any waiver of, or amendment to, this
reporting requirement.
VII. CONTRACT AMENDMENT
That except as expressly provided elsewhere in this Agreement, any modifications or
amendments to this Agreement may be made by mutual Agreement of the Subrecipient
and the City Commission. It is expressly understood that this Agreement is subject to
HUD Community Development Block Grant funding regulations. Should HUD act to
make changes in regulations or suspend or terminate funding, such actions shall
automatically amend this Agreement, if applicable.
VIII. ASSIGNABILTIY
The Subrecipient shall not assign or transfer any interest in this Agreement without
consent of the City Commission.
IX. POLITICAL ACTIVITIES
None of the funds, materials, property or services provided directly or indirectly under
this Agreement shall be used for any partisan political activities, or to further the election
or defeat of any candidate for office.
X. CONFLICT OF INTEREST
No employee, officer or agent of the Recipient shall participate in the award or
administration of this Agreement if a conflict of interest real or apparent, would be
involved or any type of benefit financially, politically or asset wise. (i.e. obtain housing,
illegal obtaining of contracts, etc.) See CPR 24.92.356 and CPR 570.611.
XI. CITY'S RIGHT TO ENFORCE
1. The Community and Neighborhood Services Department may unilaterally
suspend (on a temporary basis) or alter this Agreement, including the amount of
funds allocated, for failure to comply with the terms and conditions of this
Agreement or failure to comply with regulations for the U.S. Government, or
directives of the Muskegon City Commission, some examples of which follow:
a. Ineffective or improper use of the Community Development Block Grant
funds:
6
b. Failure to submit complete and correct performance or financial reports;
c. Failure to provide services called for in the Scope of Services section within
the time frame stated: and
d. If for any reason, the program cannot be completed.
2. The City Commission may unilaterally terminate this Contract for failure to
comply with the terms and conditions of the Agreement, the regulations of the
U.S. government, or directives of the Muskegon City Commission.
3. The Community and Neighborhood Services Department office shall provide
reasonable notice to the Subrecipient before action is taken to suspend, alter or
terminate this Agreement. Such notice shall include the reasons for the
contemplated action and the Subrecipient shall be give a right to protest.
4. In the event this Agreement is terminated by the City Commission, the Ownership
of all documents, equipment and properties acquired by CDBG or Program
Income funds shall revert to the Recipient with the decision for final disposition
being left to the City Commission. However, the Subrecipient shall receive just
compensation for any work satisfactorily completed prior to such termination.
XII. PURSUIT OF ADDITIONAL RESOURCES
The Subrecipient shall make bona fide efforts to secure funds and resources from other
sources. Further, the Subrecipient shall cooperate with the Community and
Neighborhood office, as requested, in its efforts to pursue additional or alternative
funding. The Subrecipient shall report these efforts as part of the required Quarterly
Performance Report.
XIII. TIME PERFORMANCE AGREEMENT TERM
All services rendered hereunder shall be completed by May 31, _ _ . This Agreement
automatically terminates at that time unless specifically extended by the City
Commission. All funds allocated which are unspent or encumbered for services under
this Agreement shall be repaid to the City within fifteen (15) days of this date.
XIV. OTHER
1. That it will comply with all requirements applicable to HUD Block Grant
Subrecipients set forth in the CDBG Program Requirements contained in 24 Code
of Federal Regulation Part 570. Such requirements pertain to, but are not limited
to, compliance with OMB Circular A-102, reports and information, audits and
inspection, unearned payment, non-discrimination, disposition of real property,
and miscellaneous grant administration requirements.
7
2. That should the Subrecipient utilize any portion of CDBG funds for acquisition of
property or relocation of individuals, families, or businesses as a result of a
project involving federal financial assistance from HUD, as defined in regulations
at 24CFR Part 42.79, all acquisition and/or relocation shall confotm to the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (P.L. 91.646), and the regulations which implement the Act (24 CFR Part
42).
3. That except with respect to the rehabilitation of residential use for less than eight
families, all contractors engaged under contracts in excess of $2000 for the
construction prosecution, completion or repair of any building or work financed in
whole or in part with assistance provided under this agreement, shall comply with
HUD requirements pertaining to such Contracts and the applicable requirements
of the regulations of the Department of Labor under 29 CFR Parts 2, 5, and Sa,
governing the payment of wages and the ratio of apprentices and trainees to
journeymen; provided, that if wage rates higher than those required under such
regulations are imposed by State or local law, nothing hereunder is intended to
relieve the Subrecipient of its obligations, if any, to require payment of the higher
rates. The Subrecipient shall require to be inserted in full in all such contracts
subject to such regulations, provisions meeting the requirements of 29 CFR 5.5
and for such contracts in excess of$10,000, 29n CFR 5a.3.
4. The Subrecipient agrees to abide by all other Federal requirements not highlighted
in this Agreement, but included in the Community Development Block Grant
regulations at the Community and Neighborhood Services Department, or other
regulations subsequently supplied to the Subrecipeint.
5. That should the Subrecipient funding involve construction work, the Subrecipient
contractors(s) agree to allow access to the City or its representative for inspection
purposes.
6. Should the Subrecipient acquire any real or personal property with funds provided
under this Agreement, it will not dispose of such property through sale or
otherwise without written permission of Recipient. If property is disposed of
without written permission, the proceeds shall be returned to the Recipient, and
Subrecipient may be required to reimburse the Recipient for the Federal portion of
participation in the project, subject to requirements in the Office of Management
and Budget Circular A-102, Attachment N, Property Management Stands.
XV. CONTRACT CLOSEOUT
All contracts will be closed out in accordance with the procedures specified in OMB
Circular A-102, Attachment L, and Portions of OMB Circulars A-110 and A-122
applicable to non-profit organizations.
8
In Witness Whereof, the parties hereto have caused this contract to be executed the day and year
above written.
Signed In the Presence Of: CITY OF MUSKEGON, MICHIGAN
A Municipal Corporation
Witness._ _ _ _ _ _ _ __ By:_--:c---:----c:-=::----:--~~-
Stephen J. Warmington, Mayor
Witness._ _ _ _ _ _ _ __ By:--.,-----------,---
Gail Kundinger, MMC City Clerk
Agency Name
Witness. _ _ _ _ _ _ _ _ __ By:_~-=---:-c--------
It's President
Witness. _ _ _ _ _ _ _ _ __ By: _ _ _ _ _ _ _ _ _ _ __
It's Secretary
9
ATTACHMENT "A"
SCOPE OF SERVICES
Subrecipient Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
SCOPE OF SERVICES
The Scope of Services section below lists the services to be provided under the terms of the
Subrecipient Agreement. This description shall establish the basis for the Community and
Neighborhood Services Office assessment of actual program accomplishments.
I. Location and Hours
The Service Agency shall provide the contracted services at the following locations(s):
II. Eligible Clients
The Subrecipient shall take affirmative action to insure that the primary beneficiaries of
services rendered under this Agreement are eligible CDBG clients. Eligible clients are
defined as those persons of household who:
a. Reside in the City of Muskegon and
b. Have household incomes less than or equal to 80 percent of the median of the City.
10
ATTACHMENT "A"
SCOPE OF SERVICES
III. Description and Quantity of Services to be provided
Describe and number each service to be provided separately. Include the job title of the person
(s) who will primarily render the service, the time span, which the service will be offered, ifless
than the total contract year, and how the service will be rendered.
Estimated quantity of service to be provided (number of persons to be served).
11
ATTACHMENT "B"
BUDGET
REVENUES
CDBGFUNDS $_ _ __
*Other (Specify Below)
Program Income
TOTAL REVENUES $_ _ __
Total Portion to be
Budgeted Funded by CDBG
EXPENDITURES
Salaries & Fringes $ $
Consultant & Contract Services $ $
Office Supplies $ $
Telephone $ $
Rent & Related Expenses $ $
Equipment $ $
Office Furniture $ $
Travel $ $
Specific Assistance to Individuals $ $
Miscellaneous (Specify)
$
$
$
TOTAL EXPENDITURES $ $
*LIST OTHER REVENURE SOURCES:
I. $
12
2. $_ __
3. $ _ _ __
4. $_ _ __
5. $. _ _ __
13
CHDO AGREEMENT- 2006- 2007
This CHDO AGREEMENT, made this I" day of June, 2005, by and between the City of Muskegon, Michigan, A
Municipal Corporation, (hereinafter "Recipient") whose office rs located at
_ _ _ _ _ _ _ _,(hereinafter "CHDO")
WITNESSETH:
WHEREAS, CHDO will receive Community Development Block Grant (CDBG/HOME) funds from the
Recipient, in the amount of$ , to be used for the following:
WHEREAS, the parties wish to set forth the conditions on which the funds are to be made available;
NOW THEREFORE, in consideration of the covenants herein contained, the parties do mutually agree as
follow:
I. GENERAL CONDITIONS
I. Services to be delivered are eligible activities as defined in Section 92.205 and 92.206 of
HOME Administrative Regulations (CFR 92)
2. The CHDO certifies that the service is either:
a. a new service or
b. a quantifiable increase in the level of a service above the level which has been
provided by or in behalf of the applicant from local revenue sources or State funds
received by the applicant in the twelve (12) calendar months prior to submission of
the proposal, or
c. a continuation of a service that would otherwise be decreased due to events beyond
the control of the CHDO.
3. The CHDO is incorporated as a non-profit organization in good standing under Michigan
Law.
4. The CHDO warrants that a current copy of its charter (if applicable), Articles of
Incorporation and By-Laws are on file with the department of Community and
Neighborhood Services. The CHDO shall also keep a current list of its board members,
its officers and their addresses on file with the Community and Neighborhood Services
department.
5. By resolution, the CHDO's Board of Directors shall certify to the City a responsible
contact person, who shall be considered their representative in all matters relating to this
Agreement for communication and administrative pmposes.
Until further written notice from the CHDO, said contact person shall be:
II. PERSONNEL
1
1. The CHDO shall maintain direct control of all personnel employed by it and to provide the
necessary training and supervision of its employees in canying out conh·acted programs.
However, implementation of the "project" must meet the requirement and approval of Connnunity
and Neighborhood Services.
2. In all work made possible by or resulting from this agreement, affirmative action will be taken to
insure that low income persons, pm1icularly minorities and women, are given maximum
opportunity for training and employment; and that minority business concerns located in the area,
to the greatest extent feasible, are awarded sub-contr·acts when permitted by this Agreement
(Section 3, CDF 135).
3. Incorporated by reference are Title VI of the Civil Rights Act of 1964, Executive Order 11246 and
OMB Circular A-102, Attachment 0 which relates to equal opportunity. Copies are available at
the Community Development Office.
4. The CHDO (including its membership body, Board of Directors, committees, and paid and other
volunteer staff) agrees that it will comply with City policies and procedures conceming equal
opportunity, affirmative action, and non-discrimination in employment practices because of age,
religion, race, color, national origin, sex, education association, marital status or physical
limitation.
III. SCOPE OF SERVICES
The CHDO shall provide the services specified in Attachment "A", Scope of Services, in exchange for
financial compensation detailed in Attachment "B".
IV. COMPENSATION AND METHOD OF PAYMENT
I. The maximum amount which the CHDO may receive pursuant to this Agreement is $, _ _ _ __
2. The CHDO warrants that its Board of Directors has approved a budget request to provide services
detailed in this Agreement (attachment "B"). The budget total of $ , shall remain
unchanged during the year unless amended as pemritted in this Agreement. The CHDO may not,
without City Commission approval, make transfer between categories not exceeding I 0% of the
overall budget total, or $2,000.00, or whichever is greater.
3. Upon approval of CHDO's request for payment, the CHDO shall be reimbursed for expenses
within a maximum of twenty (20 days.)
4. To receive payments, the CHDO must complete and submit the following:
a. Request for Payment
b. Detailed Invoice for Actual Expenditures
c. Quarterly Performance Reports
5. All program income, received by the CHDO, (if any) shall be disbursed by the CHDO prior to
request for payments from the Recipient. Program income resulting from the project will be
2
handled in accordance with the requirements of 24 CFR 570.503 applicable to CDBG Recipients
and 24 CFR 92.503 for HOME CHDO's. All program income derived from the HOME activities
by CHDO must be reinvested to the recipient (City) to the HOME Investment Trust Fund.
6. If at the end of the term of this Agreement there are unexpended portions of the contract amount
set forth in this Agreement, the City may recapture said amount for reallocation to other purposes.
7. If CHDO fails to comply with te1ms specified in this Agreement or refused to accept and meet
conditions imposed by the Department of Housing and Urban Development (HUD), the Recipient
may immediately terminate payments to the CHDO and recover any funds it has advanced. In the
event of the inability of CHDO to perform or complete the project, or termination of the
Agreement by the City Conunission, Recipient will pay only invoices for work performed or
satisfactorily completed.
8. The Recipient shall not be held liable for expenditures or obligations incuned in excess of the
authorized total budget, nor shall the City be held liable for expenditures or obligations for
ineligible cost pursuant to Section 570.200 and 570.201 of the Housing and Community
Development Act. And 92.206, 92.207 and 92.208 of National Affordable Housing Act of 1990.
IV. FINANCING AUDITS AND INSPECTIONS
I. The CHDO shall document the costs incuned with CDBG/HOME funds with the support of
properly executed payrolls, time records, invoices, contracts, vouchers, receipts, or other official
documentation that shows in proper detail the nature and propriety of charges. All such
documents must be clearly identifiable and readily assessable during the term of the Agreement to
City and HUD officials or their authorized representative for audit and examination as often as the
City may deem necessary. Additionally, the CHDO agrees to securely maintain such documents
for a period of three (3) years after termination of this Agreement.
2. The CHDO is to act within thirty (30) days after the signing of this Agreement to establish a
procedure for its accounting operation that will not be inconsistent with Federal Management
Circular A-102, Attachment G, and can be certified auditable by the Accountant for the
Community Development Department. The auditable procedure shall insure that monies provided
by the Community Development Block Grant HOME program can be separately traced from other
funds of the CHDO.
3. The Recipient shall provide the CHDO with a copy of any account requirements established by
HUD, and the CHDO shall thenceforth be responsible for compliance with such requirements.
4. Program Income eamed by the Service Agency during the grant period shall be retained by the
CHDO, and in accordance with OMB Circulars A-102, A-110 and A-122 shall be:
a. Added to funds committed to the project by the City and the CHDO to be used to further
eligible program objectives as defined in the scope of services of this Agreement (see
Attachment A).
b. Deduct from the total project costs for the purposes of detennining the net costs on which the
Federal (CDBG I HOME) share of the cost will be based.
5. No CDBG I CHDO funds shall be disbursed under this Agreement by the CHDO or any others
contracted by the CHDO unless those contracted are in compliance with City and HUD
requirements with regard to fiscal matter and civil rights to the extent such requirements are
applicable. The CHDO shall provide the Recipient with a copy of such contracts.
6. The CHDO shall provide proof of Bonding Insurance for all employees who handle funds.
3
V. INSURANCE COVERAGE
The CHDO shall indenmify, defend, and hold the Recipient, its officers, and the employees harmless with
respect to any damage claim arising out of activities specified by this Agreement. This CHDO shall
maintain for the entire period of this Agreement a valid policy of liability insurance naming the City of
Muskegon (Recipient) as an insured party with limits of not less than $300,000 per occurrence. The CHDO
shall also maintain coverage during the Agreement period for Workers' Compensation as required by law.
The CHDO shall submit proof of insurance and amount of coverage to the Community Development office
prior to receiving any funds.
VI. REPORTS, MONITORING AND EVALUATION
I. The CHDO agrees to cooperate fully with the Community and Neighborhood Services office, City
and HUD officials, Citizen Committees, or any other individuals appointed by City Commission
to evaluate and monitor the requirements and performance of programs financed with CDBG
HOME funds. The CHDO agrees to provide to the same parties listed information and reports,
oral or written, as may reasonably be required or requested during the term of this Agreement on
mattes relating to program activities, performance, or contract compliance.
2. The CHDO agrees to complete and submit to the Community and Neighborhood Services Office
in a timely manner a Quarterly Performance Report.
The report forms are to be provided by the City. The CHDO agrees to collect and make available to the Community
and Neighborhood Services Department the following information on its clients or program participants:
a. Street (only) address of the client: (inside or outside City);
b. Month and year of initial services;
c. Number of services units rendered to each client served under this agreement;
d. Age and sex of the client or participant;
e. Whether the client or participant is the head of household;
f. Whether client or participant is a member of a minority group (which group);
g. Family income by family size (which will be indicated by checking an income range
category);
h. Whether client or patticipant head of household is handicapped;
The information is to be collected on a "Client Card" or tabulation sheets provided by the City.
The form will state that the client/participant information being collected is required in order for
the CHDO to receive HOME funds from the City of Muskegon. Client information will be
submitted quarterly with the Performance Reports.
Alternate systems of collecting data required in this section can be developed in consultation with
the Community and Neighborhood Services Office. The Recipient retains the final right to
approve any waiver of, or amendment to, this reporting requirement.
4
VII. CONTRACT AMENDMENT
That except as expressly provided elsewhere in this Agreement, any modifications or amendments to this
Agreement may be made by mutual Agreement of the CHDO and the City Commission. It is expressly
understood that this Agreement is subject to HUD HOME funding regulations. Should HUD act to make
changes in regulations or suspend or tenninate funding, such actions shall automatically amend this
Agreement, if applicable.
VIII. ASSIGNABIL TIY
The CHDO shall not assign or transfer any interest in this Agreement without consent of the City
Conunission.
IX. POLITICAL ACTIVITIES
None of the funds, materials, property or services provided directly or indirectly under this Agreement shall
be used for any partisan political activities, or to further the election or defeat of any candidate for office.
X. CONFLICT OF INTEREST
No employee, officer or agent of the Recipient shall participate in the award or administration of this
Agreement if a conflict of interest real or apparent, would be involved, or any type of benefit financially,
politically or asset wise. (i.e. obtain housing, illegal obtaining of contracts, etc.) See CFR24.92.356 and
CFR 570.611.
XI. CITY'S RIGHT TO ENFORCE
I. The Community and Neighborhood Services Department may unilaterally suspend (on a
temporary basis) or alter this Agreement, including the amount of funds allocated, for failure to
comply with the terms and conditions of this Agreement or failure to comply with regulations for
the U.S. Government, or directives of the Muskegon City Commission, some examples of which
follow:
a. Ineffective or improper use of the HOME funds:
b. Failure to submit complete and conect performance or financial reports;
c. Failure to provide services called for in the Scope of Services section within the time frame
stated: and
d. If for any reason, the program cannot be completed.
2. The City Commission may unilaterally temrinate this Contract for failure to comply with the terms
and conditions of the Agreement, the regulations of the U.S. government, or directives of the
Muskegon City Commission.
3. The Community and Neighborhood Services Department office shall provide reasonable notice to
the CHDO before action is taken to suspend, alter or temrinate this Agreement. Such notice shall
include the reasons for the contemplated action and the CHDO shall be given a right to protest.
5
4. In the event this Agreement is terminated by the City Commission, the Ownership of all
documents, equipment and properties acquired by HOME or Program Income funds shall revert to
the Recipient with the decision for final disposition being left to the City Commission. However,
the CHDO shall receive just compensation for any work satisfactorily completed prior to such
termination.
XII. PURSUIT OF ADDITIONAL RESOURCES
The CHDO shall make bona fide efforts to secure funds and resources from other sources. Further, the
CHDO shall cooperate with the Community and Neighborhood office, as requested, in its efforts to pursue
additional or alternative funding. The CHDO shall report these efforts as part of the required Quarterly
Performance Report.
XIII. TIME PERFORMANCE AGREEMENT TERM
All services rendered hereunder shall be completed by May 31, 2006. This Agreement automatically
terminates at that time unless specifically extended by the City Commission. All funds allocated which are
unspent or encumbered for services under this Agreement shall be repaid to the City within fifteen (15)
days of this date.
XIV. OTHER
I. That it will comply with all requirements applicable to HUD Block Grant Subrecipients set forth
in the HOME Program Requirements contained in 24 Code of Federal Regulation Part 570. Such
requirements pertain to, but are not limited to, compliance with OMB Circular A-102, reports and
information, audits and inspection, unemned payment, non-discrimination, disposition of real
property, and miscellaneous grant administration requirements.
2. That should the CHDO utilize any portion of HOME funds for acquisition of property or
relocation of individuals, families, or businesses as a result of a project involving federal financial
assistance from HUD, as defined in regulations at 24CFR Part 42.79, all acquisition and/or
relocation shall conform to the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (P.L. 91.646), and the regulations which implement the Act (24 CFR Part
42).
3. That except with respect to the rehabilitation of residential use for less than eight families, all
contractors engaged under contracts in excess of $2000 for the constmction prosecution,
completion or repair of any building or work financed in whole or in part with assistance provided
under this agreement, shall comply with HUD requirements pertaining to such Contracts and the
applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 2, 5,
and Sa, governing the payment of wages and the ratio of apprentices and trainees to journeymen;
provided, that if wage rates higher tan those required under such regulations are imposed by State
or local law, nothing hereunder is intended to relieve the CHDO of its obligations, if any, to
require payment of the higher rates. The CHDO shall require to be inserted in full in all such
contracts subject to such regulations, provisions meeting the requirements of 29 CFR 5.5 and for
such contracts in excess of$10,000, 29n CFR 5a.3.
4. The CHDO agrees to abide by all other Federal requirements not highlighted in this Agreement,
but included in the regulations HOME Regulation available at the Community and Neighborhood
Services Department, or other regulations subsequently supplied to the Subrecipeint.
6
5. That should the CHDO funding involve construction work, the CHDO contractors(s) agree to
allow access to the City or its representative for inspection purposes.
6. Should the CHDO acquire any real or personal property with funds provided under this
Agreement, it will not dispose of such property through sale or otherwise without written
pemlission of Recipient. If property is disposed of without written pernlission, the proceeds shall
be returned to the Recipient, and CHDO may be required to reimburse the Recipient for the
Federal portion of participation in the project, subject to requirements in the Office of
Management and Budget Circular A-102, Attachment N, Propetty Management Stands.
XV. CONTRACT CLOSEOUT
All contracts will be closed out in accordance with the procedures specified in OMB Circular A-102,
Attachment L, and Pmtions ofOMB Circulars A-110 and A-122 applicable to non-profit organizations.
In Witness Whereof, the parties hereto have caused this contract to be executed the day and year above written.
Signed In the Presence Of: CITY OF MUSKEGON, MICHIGAN
A Municipal Corporation
Witness __________ By: _ _ _ _---=----=c--c-----c-c-
Steve Warnlington, Mayor
Witness __________ By: _ _ _ _-=-=:--cc---=----=
Gail Kundinger, City Clerk
Agency Name
Witness _ _ _ _ _ _ _ _ __ By:_ _ _ _-:-:---::---:-:-----
It's President
Witness ___________ By:_--:-:-:::---------
Ifs Secretary
ATTACHMENT"A"
SCOPE OF SERVICES
7
CHDO's Name _ _ _ _ _ _ _ _ _ _ _ _ _ __
SCOPE OF SERVICES
The Scope of Services section below lists the services to be provided under the tenns of the CHDO Agreement.
This description shall establish the basis for the Community and Neighborhood Services Office assessment of actual
program accomplishments.
I. Location and Hours
The Service Agency shall provide the conh·acted services at the following locations(s):
II. Eligible Clients
The CHDO shall take affirmative action to insure that the primary beneficiaries of services rendered under
this Agreement are eligible HOME clients. Eligible clients are defined as those persons of household who:
a. Reside in the City of Muskegon and
b. Have household incomes less than or equal to 80 percent of the median of the City.
ATTACHMENT "A"
SCOPE OF SERVICES
III. Description and Quantity of Services to be provided
Describe and number each service to be provided separately. Include the job title of the person (s) who will
primarily render the service, the time span, which the service will be offered, if less than the total contract year, and
how the service will be rendered.
8
Estimated quantity of service to be provided (number of persons to be served).
9
ATTACHEMENT "B"
BUDGET
REVENUES
HOME FUNDS $_ _ __
*Other (Specify Below)
Program Income
TOTAL REVENUES $
Total Portion to be
Budgeted Funded by HOME
EXPENDITURES
Salaries & Fringes $ $
Consultant & Contract Services $ $
Office Supplies $ $
Telephone $ $
Rent & Related Expenses $ $
Equipment $ $
Office Furniture $ $
Travel $ $
Specific Assistance to Individuals $ $
Miscellaneous (Specify)
$_ __
$_ __
$_ __
TOTAL EXPENDITURES $_ __ $_ __
*LIST OTHER REVENURE SOURCES:
I. $_ __
2. $_ __
3. $_ __
4. $_ _ _
5. $_ __
10
Date: July 3, 2006
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Finance Division Reorganization
SUMMARY OF REQUEST: As described in the attached memo, staff is
recommending the reorganization of the Finance Division. The main elements of this
reorganization are: 1) elimination of the Revenue Collections Administrator position, 2)
upgrade of the Income Tax Administrator position and, 3) physical swap of the locations of
the Income Tax and Finance departments.
FINANCIAL IMPACT: The proposed reorganization will save between $41,000 and
$55,000 annually (depending on whether a part-time position is filled). There will be some
one-time moving costs estimated to be no more than $5,000.
BUDGET ACTION REQUIRED: We anticipate this reorganization to be
incorporated into the 2007 budget preparation process.
STAFF RECOMMENDATION: Staff recommends approval of the proposed
reorganization as described, including salary schedule adjustments.
COMMITTEE RECOMMENDATION: None.
• Page3
Finance ,
Administration
Memo
To: City Commission City Manager
From: Finance Director
Date: July 3, 2006
Re: Finance Division Reorganization
The Finance Division team has considered various options for filling the void left by
the recent departure of the Revenues Collections Administrator (Roberto Robles).
We believe we have a plan to restructure the Finance Division in a fashion that will
both improve customer service and reduce overall costs.
The basic elements of this plan are as follows:
1. Eliminate the now vacant Revenue Collections Administrator position.
($60,000 annual savings)
2. Upgrade the Income Tax Administrator position to a new position titled
Income Tax Administrator/Deputy Treasurer. This will provide full
coordination of collection efforts, additional management capacity, and cross-
training opportunities between these key department head-level positions.
($5,000 annual cost)
3. Swap the physical locations of the Finance and Income Tax offices. This will
result in a combined pool of six Customer Service Rep II positions in one
location and enhance staff coverage, cross-training opportunities, and,
ultimately, customer service. ($5,000 one-time cost)
0:\FINANCE\PAUL\MyDocuments\AGENDAITEM 2006 Finance Div Reorganization.doc
4. Potentially create an additional p/t Customer Service Rep position if
determined necessary after implementing the first three steps. ($14,000
annual cost)
We would like to implement these changes in time for the 2007 budget process and
respectfully ask for the City Commission's approval of:
1. The overall reorganization plan as described and,
2. Creation of the new Income Tax Administrator/Deputy Treasurer position
within Range Ill ($55,370 - $73,678) of the Non-Represented Employees
Salary Schedule.
If you have any questions, please let me know.
Thank you.
Income Tax Administrator/Deputy Treasurer
SUMMARY: Oversees customer service and resolves customer complaints/concerns
where Customer Service Representatives are unable to reconcile the dispute. Will
follow up on delinquent income tax, property tax and utility accounts and make
every effort to collect debts, including but not limited to small claims court filings,
property tax liens, and working with outside collection agencies.
Implements and administers City's program for collection of municipal income tax,
including withholdings, filings and delinquent actions, as defined by the Michigan
Uniform Income Tax law.
ESSENTIAL DUTIES AND RESPONSIBLITIES:
1. Select, train, schedule, supervise and evaluate the work of professional,
technical and clerical employees.
2. Facilitate cross-training and coordination of Customer Service
Representatives.
3. Ensure strict adherence to federal, state, and local confidentially laws.
4. Ensure strict adherence to state and federal laws governing debt collection
and bankruptcy.
5. General accounts receivable collections management.
6. Personal property tax collections.
7. Oversee the preparation and processing of service orders for various City
services, including water turn-ons and turn-offs, new utility billing accounts,
and discontinuance of accounts. Approve extensions for utility customers.
8. Report delinquent accounts to credit reporting agencies/bureaus.
9. Prepare necessary reports in a timely fashion.
10. Property lien filing.
11. Confer with individuals and business representatives by telephone,
correspondence, or in person to determine amount of income tax or
delinquent taxes and enforce collection.
12. Select appropriate remedy for delinquent taxes when necessary, such as
payment agreements, offers of compromise, or seizure and sale of property.
13. Develop, implement and maintain computer system for processing income
tax data.
14. Direct service of legal documents, such as subpoenas, warrants, notices of
assessment, and garnishments.
15. Monitor federal and state legislation that affects city taxing regulations,
make recommendations for adoption, amendment, or repeal of the city
income tax ordinance and implement city income tax revisions.
16. Educate taxpayers through the development and revision of income tax
return forms and instruction booklets, dissemination of informational
materials, answering inquiries and conducting seminars for tax practitioners.
17. Disseminate and process income tax returns, supervise audits of these
returns and administer system of fines, payment schedules or extensions for
delinquency.
18. Performs other wor){ related duties as required.
Date: July 11, 2006
To: Honorable Mayor and City Commissioners
From: City Clerk
RE: Liquor License Request
CSTS, Inc., 2185 Henry
SUMMARY OF REQUEST: The Liquor Control Commission is seeking
local recommendation on a request from CSTS, Inc., (Pop-A-Top) for a
new Outdoor Service (1 Area) to be held in conjunction with their 2006
Class C-SDM licensed business with Entertainment Permit.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending
approval subject to final inspection.
C~'1 ;oot-~J(b) '/<.>/./// 5 ,py-o4
Michigan Department orconsumer & Industry Services
MICHIGA~ LIQUOR CONTROL COMMISSION (MLCC)
7150 Harris Drive, P.O. Box 30005 - Lansing, Michigan 48909-7505
LAW ENFORCEMENT RECOMMENDATION
(MCL 436.1501)
May 17, 2006
TO: Muskegon Police Department RE: CSTS, INC.
Chief of Police 2185 Henry
980 Jefferson Street PO Box 536 Muskegon MI 49441
Muskegon Ml 49443-0536 Muskegon County
REQ ID# 362322
We have received a request from the above licensee for the type of permit indicated below. Please make an investigation and
submit your report and/or recommendation, as req11ested below, to the offices of the Liquor Control Commission at the above
address. Questions about this request should be directed to the MLCC Licensing Division at (5 I 7) 322-1400.
D
OFFICIAL PERMIT FOR EXTENDED Two copies of Form LC 11 I2 will be left with you, the upper
HOURS OF OPERATION FOR portions already executed. Indicate your recommendation and
return one copy to the Commission, retaining the other.
(Authorized by MAC R436.1403)
D
LIVING QUARTERS Indicate your recommendation on the bottom of this Jetter and
return one copy to the Commission.
(Authorized by MCL 436.1217 and 436.1201)
0 XXXXX CSTS, INC. REQUESTS NEW OUTDOOR SERVICE (I AREA) to be held in
conjunction with 2006 Class C-SDM licensed business with Entertainment Permit located at the above
address in Muskegon County.
Recommendation: (Recommended I Not recommended) -"'Su"'b"'-'"j"'ec=t___,_to"-f"l='.n..,a"l=--cl.,_,·n...s"'p"'e""'c"'t""'i,_,o,_,n"'.'------------
Signed: --f-t-L
__ -_1_~
__-___·_.-~-·-----=---c=c---_D_i_r_e_c_to_r_o_f_P_ub_l_i_c_S_a_fe_t_:y_ _ _ _ __
Signature and Title
Date: 6-13-06
ljt
LC-1636 Rev. 10/99
4880-1934
AFfirmative Action
6161724-6703
Assessor
616/724-6708
Cemetery
6161724-6783
Civil Service
6161724-6716
July 6, 2006
Clel'k
6161724-6705
C. N. Services
Pop-A-Top Tavern
6161724-6717 Ms. Tammy Slater
2185 Henry Street
Engineering Muskegon,MI 49441
616/724-6707
Dear Tammy:
Finance
6161724-6713
This letter is to inform you that your request for a New Outdoor Service to be held
in conjunction with your 2006 Class C-SDM Licensed Business with
Fire Dept.
6161724-6792
Entertainment Permit will be presented to the City Commission on July II, 2006.
This meeting begins at 5:30p.m. and is located in the City Commission
Chambers, 933 Terrace, Muskegon, MI.
Income Tax
(i 16/724-6770
This request has also been sent to the Campbell Field Neighborhood Association
Inspections
for their comments. It is Commission practice to let the Neighborhood
6161724-6715 Association know of any liquor license requests that are located within their
boundaries. This allows for comments from the people who live there and not
Leisure Service just from the owners of the business' who are located there.
6161724-6704
Sincerely,
Manager's Office
616/724-6724
Mayor's Drflcc Linda Potter
61(:il72<1-6701
Deputy Clerk
Planning/Zoning
6161724-6702
Pulice Dept..
616/724-6750
Public Works
6!6/726-47fl6
Treasurer
616/724-6720
Water Dept.
6161724-6718
City of Muskegon. P.O. Box 536. 933 Terrace Street, Muskegon, Michigan 49443~0536
Affi.~malive Action
616/724-6703
Assessor
616/724-6708
Cemetery
tl161724-6783
Civil Service West Michigan's ShoreUne City
6161724-6716
Clerk July 6, 2006
616/724-6705
C. N. Services
616/724·6717 Mr. Harold Kiel, President
Campbell Field Neighborhood Assoc.
t~nglneerlng 2111 Dowd
616/724-6707
Muskegon,MI 49441
Finance
6161724-6713
Dear Mr. Kiel:
We have received a letter from the Liquor Control Commission reference a
Fire Dept.
6161724-6792 request from Pop-A-Top Tavem, 2185 Henry, for a New Outdoor Service to be
held in conjunction with their 2006 Class C-SDM licensed business with
Income Tax
Entertainment Permit. They would like to add a deck onto their building. On
616/724-6770 Tuesday, July 11, 2006, the City Commission will review this request and
determine whether or not it should be recommended for approval.
Inspections
6161724-6715 You are being sent this notice because the City Commission would like to know
how the Neighborhood Association feels and would appreciate any comments that
Leisure Service they may have. You may send these comments to 933 Terrace, Muskegon, MI
616/724-6704
49440 or attend the City Commission Meeting on July II, 2006, at 5:30p.m. in
the Commission Chambers.
Mnnager"s Office
616/724·6724
If you have any questions, please feel free to contact me at 724-6705.
Mayor's OfFice
6161724-6701 Sincerely,
l'lnnntng/Zonlng
616/724-6702
Linda Potter
Pollee Dept.
Deputy Clerk
616/724-6750
Public Works
6161726-4786
Treasurer
6161724-6720
Waler DepL
616/724·6718
City of Muskegon, P.O. Box 536, 933 Terrace Street, Muskegon, Michigan 49443-0536
LIQUOR LICENSE REVIE\V FORl\1
AKA Business Name (if applicable): ---'-~.:;;,o"-.o_-___:_d.L-----..:;T....:o::.,./~?------
Operator/Manager's N a m e : - - - - - - - - - - - - - - - - - - - - -
Business Address:
{/
Reason for Review:
.tJks.tfpwo,, z?J/
New License D Transfer of Ownership D Dance Permit 0
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Name 0 New Entertainment Permit 0
Deadline for receipt of all information:
Public Safety Approved D Denied D No Action Needed 0
Income Tax Approved~ Owing D Amount:
Treasurer Approved D Owing 0 Amount:
Zoning Approved D Denied D Pending ZBA 0
Clerk's Approved D Owing D Amount:
Fire/Inspections Approved D Denied 0 Remaining Defects 0
Department Signature__ ~..;.._-~
_ _CtJ_~-
- ----·-----------
Please return to the City Clerk's Office
Gail A. Kundinger,
Liquor License Coordinator
_·b_FAXED RECEIVED 0
LIQUOR LICENSE REVIE\V ~'ORl\1
. J\IN 1 G2006
AKA Business Name (if applicable): _---L,fi,-=:o-r-LJ_-___:.d..~.--_~_.:...T
=o7.,_1?;;..__ _ _ _ __
Operator/Manager's N a m e : - - - - - - - - - - - - - - - - - -
Business Address:
Reason for Review:
New License D Transfer of Ownership D Dance Permit 0
Drop/Add Name on License 0 Transfer Location 0
Drop/Add Stockholder Name 0 New Entertainment Permit D
Deadline for receipt of all information: - - - - - - - - - - - - - -
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved D Owing D Amount: ----
Treasurer ) Approved Er Owing D Amount: d: r .t..
~ c,....).v:e:/·
~'-1
~~~~ - ~ LM
(h- ...
fb- .:u~.~ _\-hh~ ·;;-·1---L-
a~ ~t~ hJ~ ~c...-1'
Zoning Approve Denied D Pending ZBA D .·
Clerk's Approved D Owing D Amount: _ _ __
Fire/Inspections Approved 0 Denied D Remaining Defects D
DepartmentSignatmt~~
·
·.·
City~
Please return to the
Gail A. Kundinger,
:::= -
Liquor License Coordinator
LIQUOR LICENSE REVIE\V FORl'f
Business Name: /,) t '
........
-~G :>~...._,~,_
rs 7 -r
,..:;;;.,?
_.... ;....:.....
·j /7 <..._...;;;;;C_ __ _ __ __ _ __
' ,:_ (r c N
"'""I ,l/lldfvlL Nl
AKA Business Name (if applicable): ----'-~-=..o~£}_----=-d..~.-,_._.:....J;=o7,r...e;..___ _ __ __
Operator/Manager's Name:-- -- - -- - - - -- -- - - - -
Business Address:
{/
Reason for Review:
l2;1.s ffs-~4· ;?7/
New License 0 Transfer of Ownership D Dance Permit 0
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Name D New Entertainment Permit 0
Deadline for receipt of all information:
Public Safety Approved D Denied D No Action Needed D
Income '(ax Approved D Owing D Amount: - - - -
Treasurer Approved D Owing D Amount:
- ---
Zoning Approve~ Denied D Pending ZBA 0
Clerk's Approved D Owing D Amount:
- ---
Fire/Inspections Approved D Denied D Remaining Defects D
Ji)/"> t! f'.z-,..,.,J/-.1 J'l'lr1 7' !S-c- (c.. 9vu''c(/ ('".?.--. /-,_ . .; l. tJr• ;=...c ... c.? J .
)
Department Signature_ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __
Please return to the City Clerk's Office
Gail A. Kundinger, ·
Liquor License Coordinator
LIQUOR LICENSE REVIE\V FOR1'1
/J ,.,-
Business Narne: _ ___.k......_.._.S____..L__,_.S~,-t-' _=-/7
_.J-.-
__ -- c
~--'--...L...-~----------
AKA Business Name (if applicable): _ _..~.;;.,o,:.(}_-____;_d~-_-_..:.T
. . .o: ~l'--?------
Operator/Manager's N a m e : - - - - - - - - - - - - - - - - - -
Business Address:
Reason for Review:
New License D Transfer of Ownership D Dance Permit 0
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Name D New Entertainment Permit D
Deadline for receipt of all information:
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved D Owing D Amount:
Treasurer Approved D Owing D Amount:
Zoning Approved D Denied D Pending ZBA 0
Clerk's Approved~ Owing D Amount:
Fire/Inspections Approved D Denied D Remaining Defects 0
· &~
Department Signature_ _ _ _ _ _ _ _ _ _ _ _ _ ___;__ _ _ __
Please return to the City Clerk's <?ffice
Gail A. Kundinger,
Liquor License Coordinator
LIQUOR LICENSE REVIE\V FORl\I
Business Na~e: ~~~~.~~~~~~~~~~~~~~c~~~~~~~~~~~
AKA Business Name (if applicable): ---'-/i.;;;.,o~J2_-___;,.d.J--..-_!....T=o7,c. ;.;O; . . .__ _ _ _ __
Operator/Manager's Name: - - - - - - - - - - - - - - - - - -
Business Address:
Reason for Review:
New License D Transfer of Ownership D Dance Permit 0
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Name D New Entertainment Permit D
Deadline for receipt of all information: - - - - - - - - - - - - - -
Public Safety Approved D Denied D No Action Needed D
Income Tax Approved D Owing D Amount: ---~
Treasurer Approved D Owing D Amount: ----
Zoning Approved D Denied D Pending ZBA 0
Clerk's Approved D Owing D Amount: ----
Fire/Inspections Approved ~Denied D
Department Signature____,_--+~1'--......._-----H=~--------
Piease return to tbe City Clerk's Offi
Gail A. Kundinger, · ·
Liquor License Coordinator
LIQUOR LICENSE REVIE\V FORl\1
BusinessNa~e: ~~~
~,5~~~~~~~~-~~~~~~~~~~~~~~~~~~~
AKA Business Name (if applicable): _ __,_8,..:::,o~{}_-___:..d
J._----.~.T
:. _:o::;./~?~-~-~-
Operator/Manager's Na~e: -~~~~~~~--~~-~~---
Business Address:
{7
.fZ?us.A£,eo~. ;?J/
Reason for Review:
New License D Transfer of Ownership D Dance Per~it 0
Drop/Add Name on License D Transfer Location D
Drop/Add Stockholder Na~e D New Entertain~ent Permit D
/
Other -----"-/?
~e- ~w
_ _ --.:...O~u..~....~t....::c::;.;.~=-o..;;;..o..:....r_ _. . ;Sc~
; eo.L...I--..~II~;:,__,c~e.,:;;:;.--_ __
Deadline for receipt of all information: -~~~~~~~-------
Public Safety Approved 0 Denied D No Action Needed D
Income Tax Approved D Owing D A~ount:
Treasurer Approved D Owing D A~ount:
Zoning Approved D Denied D Pending ZBA 0
Clerk's Approved~ Owing D A~ount:
Fire/Inspections Approved Denied D Re~aining Defects D
l
t:J 't/7JJ pf)j}- .2!12 r/ l d /
Aflt tJ /?711 t Illrl &1> Jb tt/
,, IV f<-(L f lf6
. Department Signature._~~~_;,.---1-~-----__:..._ _ _ __
Please return to the City Clerk's Office
Gail A. Kundinger, ·
Liquor License Coordinator
WEST SHORE
CONSULTING
Engineers • Scientists • Surveyors • Planners
MORTGAGE INSPECTION
FOR: COMMUNITY SHORES BANK RE: CHARLES SLATER, TAMMY SLATER
& THRASHER LEASING
FURNISHED DESCRIPTION: PARCEL 1: LOTS 26 AND 27, EXCEPT THE EAST 2.5 FEET THEREOF,
ORCHARD GROVE ADDITION TO THE CITY OF MUSKEGON, AS RECORDED
IN L/BER 6 OF PLATS, PAGE 40, MUSKEGON COUNTY RECORDS.
PARCEL 2: LOTS 28 AND 29, AND .30 ORCHARD GROVE ADDITION
TO TH£ CITY OF MUSKEGON, AS RECORDED IN L/B£R 6 OF PLATS,
PAGE 40, MUSKEGON COUNTY RECORDS. CITY OF MUSKEGON, COUNTY
OF MUSKEGON, STAT£ OF MICHIGAN.
D = 117.50' LOT 25:
LOT
1-
10
I~
lro
In
LOT
0
0
N ti
w
0
N LOT 28 0::
ASPHALT f-
(;:j II (f)
_j 0
_j 0 0 ;,;--
0
<( c:i o'
N
~
II
e"'
>-
0::
0 z
w
:r:
120.00'
(50' R.O.W. AVENUE
BRINEN AVE.)
I HEREBY DECLARE TO COMMUNITY SHORES BANK THAT mE PROPERTY AS DESCRIBED AND SHOWN HEREIN
HAS BEEN INSPECTED AND THAT TO TI-lE BEST OF MY PROFESSIONAL KNOWlEDGE AND 8£UEF. THE BUIWINGS AND
IMPROVEMENTS- ARE LOCATED AS SHOWN AND THERE EXISTS NO VISIBLE ENCROACHMENTS UPON SAID PROPERTY
UNLESS NOTED AND SHOWN. THIS INSPECTION WAS PREPARED FOR THE EXCLUSIVE USE OF COMMUN/1Y SHORES BANK
AND DOES NOT EXTEND TO ANY UNNAMED PERSON Win-lOUT AN EXPRESS REDACTION BY THE SURVEYOR NAMING
SAID PERSON. THIS INSPECTION IS NOT A LAND OR BOUNDARY SURVEY AND THE SnBACK DIMENSIONS AS SHOWN
BETWEEN STRUCTURES AND LOT liNES SHOULD NOT BE USED TO REESTABLISH PROPERTY liNES OR FOR THE ESTABLISHMENT
OR ANY IMPROVEMENTS. FURlliER, THAT NO MONUMENTS WERE SET AND THIS REPORT IS NOT INTENDED OR REPRESENTED
TO BE A BOUNDARY SURVEY.
LEGEND
,=, ,
......... ........
CHIMNEY
CONCRETE
FILE NO:
DATE:
WM-01-0010
1-11-01
R RECORD
0 DEED CK'D. BY:
-OH- OVERHEAD UTIUTY AM
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(23:j724-6703 '
·FAX (2'31)722'1214
0004 8340 6988
Assessor
(231)724-6708
FAX (231)726-5181
Cemetery
(231 )724-67 83
FAX (231)726-5617
City Manager West J\tiehigan)s Shore!
(231 )724-6724 www.shorellnecity.<
FAX (231)722-1214
Civil Service
(231)724-6716
FAX (231)724-4405
Clerk
(231)724-6705
FAX (231)724-4178 July 12, 2006 ~
Comm. & Neigh. ~~
Services •• •3
(231)724-6717
FAX (231)726-2501
"
Engineering Liquor Control Commission
(231)724-6707 7150 Harris
FAX (231)727-6904
PO Box 30005 0>/
~
~
DOD
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1rru OJ Pi
., =a.•
'' r--.,)
Finance Lansing, MI 48909-7505 OlJ!)l
~
(231)724-6713
FAX (231)724-6768 ~
9 ~ 1;1
p 3
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0
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0
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Fire Department
REF: Req ID #362322 ~. Yb 0>
~m p
(231)724-6792
FAX (231)724-6985
CSTS, Inc.
2185 Hemy il
~
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DO
0
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Income Tax Muskegon, MI 49441 iw ,.il s~ a ~6'
(231)724-6770
FAX (231)724-6768
To Whom It May Concern:
*
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~
0
•
0
~
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0
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-<
"- ro
"- ~ ~
ro
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Info. Technology
(231)724-4126
FAX (231)722-4301
Enclosed is the Law Enforcement Recommendation which was recommended for
Inspection Services approval subject to final inspection at the July 11, 2006, City Commission
(231)724-6715
FAX (231)728-4371 Meeting.
Leisure Services
(231 )724-6704 Please do not hesitate to call me at (231) 724-6705 if you have any questions.
FAX (231)724-1196
Mayor's Office Sincerely,
(231)724-6701
FAX (231)722-1214
Planning/Zoning
(231)724-6702
FAX (231)724-6790 Linda Potter
Police Department Deputy Clerk
(231)724-6750
FAX (231)722-5140
enc.
Public Works
(231 )724-41 00
FAX (231)722-4188
Treasurer
(231 )724-6720
FAX (231)724-6768
Water Billing
(231)724-6718
FAX (231)724-6768
Water Filtration
(231 )724-4106
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
http://www.shorelinecity.com
Michigan Department of Consumer & Industry Services
MICHIGAN LIQUOR CONTROL COMMISSION (MLCC)
7150 Harris Drive, P.O. Box 30005 - Lansing, Michigan 48909-7505
LAW ENFORCEMENT RECOMMENDATION
(MCL 436.1501)
May 17, 2006
TO: Muskegon Police Department RE: CSTS,INC.
Chief of Police 2185 Henry
980 Jefferson Street PO Box 536 Muskegon MI 49441
Muskegon MI 49443-0536 Muskegon County
REQ ID# 362322
We have received a request fi·om the above licensee for the type ofpennit indicated below. Please make an investigation and
submit your report anrl/or recommendation, as reqnesterl below, to the offices of the Liquor Conh·ol Commission at the above
address. Questions about this request should be directed to the MLCC Licensing Division at (5 I 7) 322-1400.
D
OFFICIAL PERMIT FOR EXTENDED Two copies of Form LC 1112 will be left with you, the upper
HOURS OF OPERATION FOR portions already executed. Indicate your recommendation and
- return one copy to the Commission, retaining the other.
(Authorized by MAC R436.1403)
D
LIVING QUARTERS Indicate your reconm1endation on the bottom of this letter and
return one copy to the Cormnission.
(Authorized by MCL 436.1217 and 436.1201)
0 XXXXX CSTS, INC. REQUESTS NEW OUTDOOR SERVICE (1 AREA) to be held in
conjunction with 2006 Class C-SDM licensed business with Entertainment Permit located at the above
address in Muskegon County.
Recommendation: (Recommended I Not recommended) -"'Su"'b"-'-je'"c,__.,_t_t"'o"--'f"l".nc«a"cl.,___,i"'n"'s'Jop"eO',c'-'t"'i,_,o"'n,_,.___________
Signed: __-_1
---f-\---L... ~-=-=-----··
__Sl._"---_---=---=-::----D_i_r_ec_t_o_r_o_f_P_u_b_l_ic_S_a_f_e_t-'-y_ _ _ _ __
Signature and Title
Date: 6-13-06
ljt
LC-1636 Rev. 10/99
4880-1934
AGENDA ITEM N O . - - - - - - - -
CITY COMMISSION M E E T I N G - - - - - - - - - - -
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: June 30, 2006
RE: Sale of Clay Avenue Parking Ramp
SUMMARY OF REQUEST:
To approve the sale of the City's Clay Avenue parking ramp to Press's Development, LLC.
FINANCIAL IMPACT:
$100,000 to the City, plus the property will be placed on the tax rolls.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the attached purchase agreement between the City and Press's Development, LLC,
and authorize the Mayor and Clerk to sign it.
COMMITTEE RECOMMENDATION:
None.
Affirmatin• ..\l'!IVn
13 1172-4-6ill]
F.\.\f7~2-12i4
·\~~•·s~or
231172-4-6708
FA.\1726-51 S I
l'l•melt'l"~
2J 11724-671:13
F.-\.'\.1726-5617
l"i\·il Sen·ict'
231172-1-671(1
FA.\/724-405::i West ~llchlgan's Shoreline City
Ch•rk
!3 1!724-c.705
FAX/724-4178 July 19,2006
Cumm. & Nei~h.
231172-i-6717
FAX/726-2501 Mr. Gary Veurink,
Engineering
Attorney at Law
231172-i-67(17 425 W. Western Avenue, Ste. 307
F.-\.\1727-690-i
Muskegon,MI49440
Finance
231/72-i-6713
FA.\172-i-6768 Dear Mr. Veurink:
Firl' Dept.
23 1172-i-679! Enclosed is a copy of the completed purchase agreement between the City of Muskegon
F.-\\/72-i-11985
and Press's Development, LLC, for the city's parking ramp.
Income Tax
2J 1172-i-6770
FA.\172-i-6768 We have ordered the title commitment and I will forward a copy of it to you as soon as it
Info. Systems
is received.
231172-i-67-i-i
FA.\/722-·DUI
Sincerely,
Lei~urc Scn·ice
!3 I 1724-67!1-i
FA.\/72-i-1196 CITY OF MUSKEGON
1:::!!r:
Manager's Office
231172-i-672-J
FAX/722-121-1
;\l:1yur's Office
231/72-i-6701
FAX/722-1214 City Manager
:\eigh. & Const.
Scrl'iH'!<
2311724-(>715
F.-\'.'\./726-25UI
Planning/Znning
231172-i-6702
F.·\.\/72-i-6790
Poli.:c Dept.
231/72-i-6750
F:\.\/722-51-10
l'uhlir Works
23 1/72-i--1 I 00
FAX/722-4188
Treasurer
231/72-1-6720
FAX/72-i-6768
Water Billing De!lt.
231/72-1-6718
FA.\172-1-6768
Water Filtration
231/724--1 I 06
FAX/755-5290
City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
PURCHASE AGREEMENT
This Agreement is made on :f£1 // ,
2006 between the City of
Muskegon, a Michigan municipal corpor ion, with offices located at 933 Terrace Street,
Muskegon, Michigan, 49440 ("City") and Press's Development, LLC, a Michigan limited
liability company, of 8081 Holton Duck Lake Rd, Holton MI 49425 ("Buyer").
1. Purchase and Sale of Premises. City shall sell and Buyer shall purchase on the
conditions set forth in this Agreement the premises, and all improvements thereon, with all
beneficial easements, and with all of City's right, title and interest in all.adjoining public ways,
commonly known as the City of Muskegon Parking Ramp, Muskegon Buyer, Michigan and
legally described on Exhibit A ("Premises") subject to the reservations, restrictions and
easements of record, provided said reservations, restrictions and easements of record are
reasonably acceptable to Buyer upon disclosure and review of the same.
2. Purchase Price and Manner of Payment. The purchase price for the Premises
shall be $100,000, payable in full at closing to City, by wire transfer, certified or cashier's check.
Buyer shall deposit with the City a refundable down-payment of $10,000 upon the execution of
this Agreement ("Deposit"). The Deposit shall be credited against the purchase price at closing.
3. Title Insurance. City shall order an owner's policy of title insurance issued by a
mutually agreeable title company in the standard A.L.T.A. form, without the standard
exceptions, certified to the date of closing, in the amount of the purchase price. Buyer may raise
any objections to the exceptions or encumbrances shown on the commitment within 20 days after
Buyer receives the commitment by giving written notice to City. If Buyer raises a title objection,
Buyer shall not be required to close this transaction unless City cures the objection or Buyer
waives its objection. Additionally, if Buyer raises a title objection, City shall have the right not
to cure the objection; in which case this Agreement shall terminate and City shall return the
Deposit to Buyer. If City elects to cure the objection, City shall take action to remove the
exception or the encumbrance from the chain of title, in order to remove it from the commitment
and the policy. The title insurance policy shall include a tax lien search certified to the date of
closing that shows no tax liens against the Premises.
4. Property Taxes and Assessments. City shall be responsible for the payment of
all real estate taxes and assessments that become due and payable prior to the date of closing.
Buyer shall be responsible for the payment of all real estate taxes and assessments that become
due and payable after the date of closing.
5. Survey. City shall provide Buyer with copies of any surveys City has of the
Premises. Buyer may obtain a survey of the Premises at Buyer's expense, and Buyer or Buyer's
surveyor or other agents may enter the Premises for that purpose prior to closing. In the event
that a survey by a registered land surveyor made prior to closing discloses an encroachment or
0:\MANAGER\MAZADE\Parking Ramp Agreement 60806.DOC }
substantial variation from the presumed land boundaries or area, City shall have the option of
effecting a remedy within 30 days after disclosure, or terminating this Agreement. Buyer may
elect to purchase the Premises subject to said encroachment or variation.
6. Inspection Period. Commencing on the date of this Agreement, Buyer, and
Buyer's agents, employees, contractors and consultants may, prior to the Date of Closing,
conduct such inspections, investigations, appraisals, tests, feasibility studies, and determinations
of the Premises as Buyer, in its sole discretion, shall desire in order to determine that the
condition of the Premises is acceptable and that the Premises is suitable for Buyer's intended
uses ("Due Diligence Investigation"). Buyer and City agree that it is the intent of the Buyer to
demolish the parking structure currently existing on the Premises. All costs related to the Due
Diligence Investigation shall be paid for by Buyer. The Due Diligence Investigation shall be
completed within a reasonable time, not to exceed 30 days ("Inspection Period") after execution
of this Agreement by both parties.
7. Representations, Covenants and Warranties of City. City represents,
covenants and warrants the following to be true:
a. Organization and Standing of City. City is a Michigan municipal
corporation duly organized, validly existing and in good standing under the laws of the
State of Michigan.
b. Authority. City has the power and authority to enter into and perform its
obligations under this Agreement.
c. Title to Purchased Assets. City has good and marketable title to the
Premises, except as set forth in this Agreement. The Premises are subject to no
mortgage, pledge, lien, encumbrance, security interest, or charge except as will be set
forth on the title insurance commitment.
8. Representations, Covenants, and Warranties of Buyer. Buyer represents,
covenants, and warrants the following to be true:
a. Status of Buyer. Buyer is validly existing and in good standing under the
laws of the State of Michigan.
b. Authority. Buyer has the power and authority to enter into and perform
Buyer's obligation under this Agreement.
c. "As-Is" Sale. BUYER UNDERSTANDS AND AGREES THAT
THERE SHALL BE NO IMPLIED WARRANTIES OF HABITABILITY,
QUALITY, CONDITION, FITNESS FOR A PARTICULAR PURPOSE, OR ANY
OTHER IMPLIED WARRANTIES BETWEEN CITY AND BUYER, AND UPON
CLOSING, BUYER WAIVES ANY AND ALL SUCH IMPLIED WARRANTIES,
AND ACCEPTS THE PROPERTY "AS IS," "WHERE IS," SUBJECT ONLY TO
THE EXPRESS COVENANTS, CONDITIONS AND/OR WARRANTIES
CONTAINED IN THIS PURCHASE AGREEMENT. AT CLOSING, BUYER
SHALL REPRESENT THAT IT HAS PERSONALLY INSPECTED THE
0:\MANAGER\MAZADE\Parking Ramp Agreement 60806.DOC 2
PROPERTY AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND
THAT THE PROPERTY IS BEING PURCHASED AS A RESULT OF SUCH
INSPECTION AND INVESTIGATION, AND NOT DUE TO ANY
REPRESENTATIONS MADE BY OR ON BEHALF OF CITY
d. Demolition. Buyer agrees to demolish the parking structure and remove
the parking structure materials currently located on the premises by June 30, 2008. At
closing, Buyer shall provide City a bond in the amount of $100,000 and execute Exhibit
B, which shall be a lien on the property and recorded in order to ensure demolition and
removal of the parking structure as provided for in this section.
e. Parking. Buyer agrees to use the Premises solely as parking for five years
after the date of closing. Such parking must be open to the general public, but Buyer may
charge the public a commercially reasonable rate for parking. The parking spaces may be
either surface parking or ramp parking, but if Buyer decides to construct a new parking
ramp on the Premises, the parking ramp must be open and available for public parking.
9. Conditions Precedent. This Agreement and all of the obligations of Buyer under
this Agreement are, at Buyer's option, subject to the fulfillment, before or at the time of the
Closing, of each of the following conditions:
a. Representations and Warranties True at the Closing. The
representations, covenants, and warranties of City contained in this Agreement shall be
true in all material respects at the time of the Closing.
b. Performance. The obligations, agreements, documents and conditions
required to be signed and performed by City shall have been performed and complied
with before or at the date of the Closing.
c. Due Diligence Investigation. Buyer has not terminated this Agreement
according to the provisions of paragraph 6.
10. Default.
a. By Buyer. In the event Buyer fails to comply with any or all of the
obligations, covenants, warranties or agreements under this Agreement and such default
is not cured within 10 days after receipt of notice (other than Buyer's failure to tender the
purchase price in full at Closing, a default for which no notice is required), then City may
terminate this Agreement, in which event both parties will be released from any further
liability under this Agreement, or City may pursue its legal and/or equitable remedies
against Buyer.
b. By City. In the event City fails to comply with any or all of the
obligations, covenants, warranties or agreements under this Agreement, and such default
is not cured within 10 days after receipt of notice, then Buyer may either terminate this
Agreement, in which event both parties will be released from any further liability under
this Agreement, or Buyer may pursue its legal and/or equitable remedies against City.
0:\MANAGER\MAZADE\Parking Ramp Agreement 60806.DOC 3
II. Real Estate Commission. Buyer and City both acknowledge and agree that
neither has dealt with any real estate agents, brokers or salespersons regarding this sale, and that
no agent, broker, salesperson or other party is entitled to a real estate commission upon the
closing of this sale. Buyer and City both agree to indemnify and hold the other harmless from
any liability, including reasonable attorney fees, occasioned by reason of any person or entity
asserting a claim for a real estate commission arising from actions taken by the other party.
12. Closing.
a. Date of Closing. Unless the parties otherwise mutually agree, the closing
shall be held within 60 days of the date of this Agreement ("Date of Closing"). The
closing shall be held at a mutually convenient location.
b. Costs. The costs associated with this Agreement and the closing shall be
paid as follows:
1. Buyer shall pay the premium for the owner's policy of title
insurance.
ii. City shall be responsible to pay for the recording of any instrument
that must be recorded to clear title to the extent required by this Agreement.
iii. Buyer shall pay for the cost of recording the quit claim deed.
iv. City shall pay the cost associated the title company closing this
transaction.
c. Deliveries. At closing, City shall deliver at its sole cost and expense the
following documents in a form reasonably satisfactory to Buyer.
i. the quit claim deed to the Premises.
ii. such other documents as may be reasonably required by Buyer or
the title company to effectuate the transaction contemplated by this Agreement.
13. Possession. Possession of the Premises is to be delivered to Buyer by City at
Closing.
14. Risk of Loss. Until the time of closing, risk ofloss because of the damage to or
destruction of any improvements located on the Premises shall be solely that of City, except to
the extent that Buyer caused the damage or destruction. However, because it is the intent of the
Buyer to demolish any improvements located on the Premises, any damage to or destruction of
any improvements located on the Premises prior to closing shall not act to terminate this
Agreement and the closing shall proceed as scheduled. In the event the improvements located on
the Premises are damaged prior to the date of closing, the City shall retain any insurance
proceeds to be received by City because of said damage or other destruction.
0:\NIANAGER\MAZADE\Parking Ramp Agreement 60806.DOC 4
15. Notice. All notices and other deliveries required under this Agreement shall be
made and given to the appropriate party, or the office of the party, at the address set forth above
or at such other address as may hereafter be specified by such parties by written notice from time
to time. Notices shall be effective on the date of receipt, if given by hand, express delivery or
recognized courier service. Notices given by certified mail shall be deemed effective three
business days after the date of deposit in an authorized postal facility, as shown by its receipt for
certified mail. Either party may designate a telephone number to be used for fax notices to such
party, in which event any notice transmitted to such number shall be effective on the date shown
in the printed confirmation of such transmission, free of error, generated by the sender's
machine.
16. Miscellaneous.
a. Governing Law. This Agreement is executed in accordance with, shall be
governed by, and construed and interpreted in accordance with the laws of the State of
Michigan.
b. 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.
c. 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.
d. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original as against any party whose
signature appears thereon, and all of which together shall constitute one and the same
instrument. This Agreement shall become binding upon the parties when one or more
counterparts, individually or taken together, shall bear the signatures of all parties.
e. 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.
f. 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.
g. Assignment or Delegation. Except as otherwise specifically set forth in
this Agreement, Buyer shall not assign all or any portion of their rights and obligations
contained in this Agreement without the express prior written approval of City, which
approval may be withheld in City's sole discretion.
0:\MANAGER\MAZADE\Parking Ramp Agreement 60806.DOC 5
h. Venue. The parties agree that for purposes of any dispute in connection
with this Agreement, the Muskegon County Circuit Court shall have exclusive personal
and subject matter jurisdiction and venue.
i. Survival ofRepresentations and Warranties. The representations,
warranties, covenants and agreements contained in this Agreement and in any instrument
provided for in this Agreement shall survive the closing date and continue in full force
and effect after the consummation of this purchase and sale and continue until all
liabilities of Buyer have been fully satisfied.
This Agreement is executed effective as of the date set forth above.
City - City of Muskegon Buyer- Press's Development, LLC
Attest:
Name: Gail A. Ktn~ding~r, MM£
Title: Clerk Ltnda 1/,tf~r
!)9 ,vf./- t/u-,f'
0:\MANAGER\MAZADE\Parking Ramp Agreement 60806.DOC 6
Exhibit A
Legal Description
Lots 1 - 3 and Lots 10- 12 including the easterly 198 feet of vacated alley of
Block 328 of the Revised Plat of 1903 in the City of Muskegon, Muskegon
County, Michigan.
NOTICE OF LIEN
The City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street,
Muskegon, Michigan, 49440 ("City"), is hereby granted a lien by Press's Development, LLC, a
Michigan limited liability company, of8081 Holton Duck Lake Rd, Holton, Michigan, 49425
("Owner") pursuant to the Purchase Agreement entered into by the patties on "::f'-'-1 I./ II ,
1
2006, for the property legally described as follows:
Lots 1 - 3 and Lots 10- 12 including the easterly 198 feet of vacated alley of Block 328
of the Revised Plat of 1903 in the City of Muskegon, Muskegon County, Michigan.
("Premises").
In the Purchase Agreement, Owner made a covenant to the City that it will demolish the
parking structure and remove the parking structure materials currently located on the Premises by
June 30, 2008.
In the event that Owner does not fulfill the demolition and removal covenant, City shall
have the right to complete the demolition and removal of the parking structure and this lien shall
be in the full amount ofthe City's costs to demolish and remove the parking structure, less
monies actually collected from the Bond posted by Press' Development, LLC for this purpose.
Owner represents and warrants that there are no encumbrances on the Premises senior to
this lien, and any attempt to subordinate this lien to future encumbrances shall be void without
City's written consent.
City agrees that upon completion of demolition and removal of the parking structure by
Owner, City shall release and discharge this lien at City's expense.
The parties agree that for purposes of any dispute in connection with this Lien, the
Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and
venue.
City - City of Muskegon Buyer- Press's Development, LLC
By: .(/,/)_g.n,~- 4 - f2 cr~.£ ((
1
c_
N arne. Ill .,. .., s1 ,:, c: --v--
Title: ;0~:_{,
Date: o 2- o:J- (} 6
Attest:
0:\MANAGER\MAZADE\parking ramp lien 60906.DOC 1
Name: ~r;-MM€
Title: -Gler-k [ /"'da ?othr
. l}~pvr,r C-/eof
Date · 7-J?- o !L
STATE OF MICHIGAN
COUNTY OF\!\~
Acknowledged before me in the County of ~ , State of Michigan,
on \J~ 6 , ~ by \\\§r) ~ , ember of Press's Development,
LLC, ~ chigan limited liability companyJo{he company.
~'l_~
CCh~ i._ rrcllQ , Notary Public
State ofMi<iliigan, County ofMtiskegeft- ~
Acting in Muskegon County, Michigan
My Commission Expires: o 'b ,i:xJ/r
t
t
STATE OF MICHIGAN
COUNTY OF /Jk..s5a an
t?
Signed and sworn to before me in Muskego?,.fJ>,pnt~ 0Mich~an, on Juif
/1 ,
2006, by STEPHEN I. WARMINGTON and 6'¥:1:Ik .~. ~TDfNGER, MMC, the Mayor and Orl'vf?-
Clerk, respectively, of the CITY OF MUSKEGON, a municipal corporation, on behalf of the
City.
""Sc 'Rfln RrJ~~t:J , Notary Public
State of Michigan, County ofMuskegon
Acting in Muskegon County, Michigan
My Commission Expires: t:JS- Is~ (701;)
Drafted by & when recorded return to :
John C. Schrier
PARMENTER O'TOOLE
175 W. Apple Ave., P.O. Box 786
Muskegon, MI 49443-0786
0:\IviANAGER\MAZADE\parking ramp lien 60906.DOC 2
Quit Claim Deed
City of Muskegon, a municipal corporation, of933 Terrace Street, Muskegon, Michigan 49440 ("City"),
Conveys and Quit Claims To: Press's Development, LLC, a Michigan limited liability company, of 8081 Holton
Duck Lake Road, Holton, Michigan, 49425
the parking facility property in the City of Muskegon, County of Muskegon, State of Michigan, which is legally
described as follows:
LOTS 1-3 AND LOTS 10-12 INCLUDING THE EASTERLY 198 FEET OF VACATED ALLEY OF
BLOCK 328 OF THE REVISED PLAT OF 1903 IN THE CITY OF MUSKEGON, MUSKEGON
COUNTY, MICHIGAN.
for the sum of: One Hundred Thousand Dollars ($100,000.00).
This deed is exempt from real estate transfer tax pursuant to the provisions ofMCLA 207.505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).
Dated:
STATE OF MICHIGAN
COUNTY OF MUSKEGON
The foregoing instrument was acknowledged before me this d..~ day of ~ ,
200 /~by Stephen J. Warmington and Linda Potter, Mayor and Acting Clerk of the City ofMu~.a municipal
corp&atton. L~ ..J<W-~~t~
~nY\ 'lf't.· 1<-ru k;t;;\C=, Notary Public
~; ~ County, Michigan
My commission expires: 05 · 1'>:.-dO I;)
Acting in Muskegon County, Michigan
Drafted by & when recorded return to: Send subsequent tax bills to:
John C. Schrier Press's Development, LLC
PARMENTER O'TOOLE 8081 Holton Duck Lake Road
175 West Apple Avenue, P.O. Box 786 Holton, Michigan, 49425
Muskegon, Michigan 49443-0786
C:\DOCUME-1\bicepa\LOCALS-1\Temp\001569-Quitdaim deed for parking ram.DOC
BUYERS ACCEPT PROPERTY "AS IS"
Date: April 23, 2007
Property: 27 5 Clay
Muskegon, MI 49440
Commitment No.: WMS1504
We, the undersigned, being the buyers of the above captioned property, understand and
acknowledge that Buyer(s) are buying the property in an "AS IS" condition and that neither the
Seller(s) nor Realtor make any warranties as to the structure(s) located upon the land purchased
or the condition thereof.
Further, the undersigned agree to indemnify, save and hold harmless and and Transnation
Title Insurance Company, from any responsibility and/or liability, loss or damage relative thereto.
The foregoing agreement is hereby accepted and approved on April 23, 2007.
Press's Development, LLC, a
Michigan Limited Liability Company
Tammy L. ager, Me ber
R~lat? f_ D~~
Randall L. Dagen, Member
CONTINGENCY REMOVAL
Date: Apnl 23, 2007
Property: 275 Clay
Muskegon, MI 49440
Seller(s): City Of Muskegon, a municipal corporation
Buyer(s): Press's Development, LLC, a Michigan Limited Liability Company
Commitment No.: WMS1504
In reference to the sales agreement dated between the Buyer(s) and Seller(s) herein
identified, and all subsequent addendums to that agreement for the property stated above, it is
agreed by the Buyer(s) and Seller(s) that all contingencies pursuant to said agreement, have
been met, resolved or removed to the satisfaction of all parties concerned.
Further, the undersigned agree to indemnify, save and hold harmless and and
Transnation Title Insurance Company, from any responsibility and/or liability, loss or damage
relative thereto.
Press's Development, LLC, a
Michigan Limited Liability Company
aL~
AlanW.~~£
Tammy L. Ja
City of Muskegon, a municipal
corporation
SURVEY WAIVER
Date: April 23, 2007
Property:275 Clay
Muskegon, Ml 49440
Commitment No.: WMS1504
We, the undersigned, herein acknowledge that we have been strongly advised to obtain a
land survey showing the dimensions of the property and the location of all buildings situated
thereon. We have agreed, completely of our own volition, not to obtain a survey and wish to
complete the transaction without the recommended survey.
Further, the undersigned agree to indemnify, save and hold harmless and and Transnation
Title Insurance Company, from any responsibility and/or liability, loss or damage concerning or
pertaining to survey matters, including but not limited to size of lot or land, location of boundary
lines, locations of buildings and encroachments of any kind.
Press's Development, LLC, a
Michigan Limited Liability Company
~/) h
Randall L. Dagen, Member
Oo~.--
AFFIDAVIT BY OWNER/SELLER/BORROWER
The undersigned is an authorized representative of the owner/seller/borrower who personally knows the facts
relative to the matters attested herein. The undersigned, as an authorized representative of the
owner/seller/borrower, attests that he/she is empowered by the owner/seller/borrower to bind the
owner/seller/borrower to the representations and undertakings made herein. The undersigned being first
duly sworn on oath, deposes, states and warrants as follows:
1. That Affiant is the owner of the real estate referred to in Transnation Title Insurance Company
Commitment No. WMS1504 above-referenced.
2. The Affiant is in sole possession of said property, and there are no unrecorded deeds, mortgages,
leases, easements, land contracts for sale, purchase agreements or options except:
none
3. The Affiant has not negotiated to convey or assign any water, mineral or oil rights relative to said
property.
4. The Affiant's has no knowledge of any covenants, conditions or restrictions of record affecting the
Property, other than what is recorded, or unrecorded easements or claims of easements affecting said
property.
5. That the Affiant is not aware of any boundary line disputes with any abutting property owners as to
the location of property lines, nor is the owner/seller/borrower aware of any encroachments of their
improvements onto the lands of any adjoining property owners or onto any easements. Likewise, the
owner/seller/borrower is not aware of any improvements of adjoining owners encroaching onto said
land.
6. That no work has been performed or materials delivered to said property for a period of ( 120) days
prior to the date of this affidavit, and if any work has been performed or materials delivered during
said 120 day period, proper sworn statements and waiver of liens showing payment or release of
lien rights have been obtained and submitted to Transnation Title Insurance Company for its
approval.
7. That the Affiant is not aware of any improvements made, or to be made, to said land, including, but
not limited to, sidewalk, curb or street repairs or replacements, weed cutting, debris removal etc.,
that would result in an assessment or bill to the premises, except as addressed in the purchase
agreement.
8. There are no other mortgages, equity loans, revolving credit loans, bridge loans, remodeling loans,
judgment liens or tax liens affecting said property, except as set forth in the above-referenced title
commitment.
9. There are no proceedings in bankruptcy or receivership by or against the owner/seller/borrower,
which are now pending, nor have the owners made any assignment for the benefit of creditors.
In the event that any of the representations made herein prove to be incorrect, for any reason, and a claim is
made by third party with respect to these matters, Affiant agrees to indemnify and hold harmless
Transnation Title Insurance Company from all claims and damages, including litigation costs and attorney
fees arising as the result of such claim.
AFFIANT:
City of Muskegon, a municipal
corporation
me: / TERESA LAVIQNE
Notary Public Muskegon County, Michigarf'Jolary Public, Muskegon County, Michigan
Acting in Muskegon County ~cling .in Muskegon County
My commission expires: My Gomrmss10n Exp1ras: 6/22/12
Commitment No: WMS1504
ADDENDUMTOPURCHASEAGREEMENT
Relative to the Purchase Agreement by and between City Of Muskegon, a municipal corporation
as Seller(s) and Press's Development, LLC, a Michigan Limited Liability Company as Buyer(s) of
property located at 275 Clay, Muskegon, MI 49440 dated November 14, 2006, it is hereby
agreed that the said Purchase Agreement is amended as follows:
The complete legal description of the property as attached.
Buyers have given the City an additional deposit (11/21/06) which represents the balance owed ,
plus the cost of title insurance and the recording fee. City to forward said payment to
Transnation Title.
Not recording the "Notice of lien".
All other terms and conditions of said Purchase Agreement remain unchanged.
L)- ' 7 ·-o·l
Date: _______L_C'~J~~L___________
City of Muskegon, a municipal
corporation
Press's Development, LLC, a
Michigan Limited Liability Company
mb,o/
Kn~.!~ b--
Randall L. Dagen, Member
0~
EXHIBIT A
File Number- WMS1504
Legal Description:
Lots 1, 2, 3, 10, 11 and 12, Block 328, Revised Plat (of 1903) of the City of Muskegon, as
recorded in Liber 3 of Plats, Page 71, Muskegon County Records. Together with the Easterly 198
feet of the vacated alley lying between Lots 1, 2, 3 10, 11 and 12.
RECEIVED
lUI 1 1 · '1
To the City Commission:
City Clerks Oflice
We, the undersigned property owners bordering on either side of E. Forest between
Wood St. and Terrace, do hereby petition yom Honorable Body, to help clear out the area
of Youth's and Young Adults, who have found it "cool" to hang out in the following
intersections: Terrace and East Forest, Pine and East Forest, Smith and East Forest, and
Wood and East Forest. These youth's and young adults, make it difficult for the property
owners to live in their homes, safe and secure. They have trashed the corner of East
Forest and Pine, with garbage etc. they sit on the front steps/yards/sidewalks of empty
rental units, and other units, playing dice, there have been several fights on the corners,
they have their cell phones, going off at all hours of the day and night, they flag down
vehicles for whatever, causing traffic backup, and obstruction. We as the propetty
owners, are asking that something be done about this hazard and danger, to om safety and
security.
NAME ADDRESS
c_~i-J~3:Q~ 1~ a'&lf e. l--ouwf
-.,~+~~Y~~~
~/ ~-9 " --?e'~ (Je_
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