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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 12, 2005
CITY COMMISSION CHAMBERS @ 5:30 P.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. Used Computer Equipment Sale. H.E.A.L.T.H. Committee
C. Sale of Buildable Vacant Lot at 551 South Getty. PLANNING &
ECONOMIC DEVELOPMENT
D. Policy Change to "Policy for Sale of City owned Residential Property.
PLANNING & ECONOMIC DEVELOPMENT
o PUBLIC HEARINGS:
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o UNFINISHED BUSINESS:
o NEW BUSINESS:
A. Accounting Services Contract. FINANCE
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
C. Fire Truck Lease Purchase. FINANCE
D. Resolution to Acquire 280 lona. COMMUNITY AND NEIGHBORHOOD
SERVICES
E. City - MDNR Memorandum of Understanding for Bike Trail along
Laketon. ENGINEERING
F. Fireworks Display Request for the Greek Festival. CITY CLERK
o ANY OTHER BUSINESS:
o PUBLIC PARTICIPATION:
:> Reminder: Individuals who would like to address the City Commission shall do the following:
:> Fill out a request to speak form attached to the agenda or located in the back of the room.
» Submit the form to the City Clerk.
)> Be recognized by the Chair.
)> Step fo!Ward 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 ATIEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT GAIL A
KUNDINGER, CITY CLERI<, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TOO: (231)
724-4172.
Date: July 12, 2005
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 28, 2005.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 12, 2005
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 12, 2005.
Mayor Warmington opened the meeting with a prayer from Pastor Sarah
Johnson of the Word of Truth Outreach 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 Bill Larson, Commissioner
Lawrence Spataro, Chris Carter, Kevin Davis, Stephen Gawron, and Clara
Shepherd, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Gail Kundinger.
2005-61 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 28, 2005.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
C. Sale of Buildable Vacant Lot at 551 South Getty. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 551 S.
Getty Street to Angela Hawkins, 531 S. Getty Street. Muskegon, MI. The lot is 80 x
111 ft. and is being offered to Angela Hawkins for $3,000. Angela Hawkins will be
combining this property with her existing property and building an addition to
her home. Her home is a two story home and the addition will be in line with the
existing structure. She will be adding just over 1,000 square feet in total to the
home. The True Cash Value for the property listed in the Assessor's Office is
$4,000, and our price is set at $3,000 which is 75% of that amount.
FINANCIAL IMPACT: The sale of this lot to the adjacent property owner for the
construction of an addition to her existing home will generate additional tax
revenue for the City and will place the property back on the City's tax rolls thus
relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution and deed.
COMMIITEE RECOMMENDATION: The Land Reutilization Committee
recommends approval of the sale with the condition that the property be
combined with the owner's original parcel and they have 18 months to build the
addition.
D. Policy Change to "Policy for Sale of City owned Residential Property.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the change to the "Policy for Sale of City-
Owned Residential Property" to include that Closing Costs will be split between
the buyer and the seller.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: none
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee
recommended approval of the policy change at their regular meeting of June
28,2005.
Motion by Commissioner Carter, second by Commissioner Gawron to approve
the Consent Agenda as read with the exception of item B.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
2005-62 ITEM REMOVED FROM THE CONSENT AGENDA:
B. Used Computer Equipment Sale. H.E.A.L.T.H. Committee
SUMMARY OF REQUEST: The City H.E.A.L.T.H. and Fitness Committee seeks City
Commissioners' approval to sell obsolete computer equipment that the
Information Technology Department has in storage in the City Hall basement.
This old equipment is set to be discarded or destroyed by the Information
Technology Department. The proceeds from this fundraiser will be used to
purchase exercise equipment for the fitness area in the City Hall basement this
fall.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request for sale of obsolete
computer equipment and the proceeds from the sale go to the H.E.A.L.T.H.
Exercise Equipment Project for City Hall.
Motion by Commissioner Davis, second by Commissioner Carter to approve the
used computer equipment sale.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
2005-63 UNFINISHED BUSINESS:
A. Greek Festival Liquor License. (Mayor & Commission)
Motion by Commissioner Spataro, second by Commissioner Carter to approve
The Big Fat Greek Festival's request to sell ouzo using one ounce serving
containers, with the Fraternal Order of Police being in charge of serving at a
separate location from the beer and wine.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, and
Carter
Nays: None
MOTION PASSES
2005-64 NEW BUSINESS:
A. Accounting Services Contract. FINANCE
SUMMARY OF REQUEST: In 1997, in conjunction with an early retirement initiative,
the Finance Department replaced a full-time finance clerk position with a
contractual accounting services arrangement. This has proven to be a very
successful and efficient arrangement: the number of billable hours has steadily
declined each year while the quality and volume of work has increased. In
2004, the total cost of the contract was $11 ,279 for 262 hours of work. By way of
comparison, the 2005 budgeted cost (wages and benefits) for a position
comparable to the one replaced in 1997 is $60,000.
The contract for accounting services has been with Hoffman, Steensma &
Plamondon (HSP) since the start. The HSP individual assigned to this account
now has several years of valuable experience with city financial procedures and
maintains an excellent working relationship with finance staff. HSP has submitted
a proposal for a three-year renewal of the contract which staff believes is fair
and reasonable.
FINANCIAL IMPACT:
Professional Staff % Increase Manager & Partner % Increase
Current $42.00 $50.00
2006 $43.00 2.4% $51.00 2.0%
2007 $44.00 2.3% $52.00 2.0%
2008 $45.00 2.3% $53.00 1. 9%
BUDGET ACTION REQUIRED: The 2005 budget includes adequate funding for
these services. Future budgets will incorporate the proposed rates.
STAFF RECOMMENDATION: Approval of a three-year contract extension with
Hoffman, Steensma & Plamondon, PLC for accounting services.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve a
three-year contract extension with Hoffman, Steensma & Plamondon, PLC for
accounting services.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
SUMMARY OF REQUEST: Fire Department staff is requesting approval by the
Commission to allow for the procurement of two fire engines. The first engine
would be a standard front-line engine, which would be purchased. The second
would be an engine to include a 75' aerial ladder with a water delivery system
which would be leased over a period of ten years. These two engines would
replace two engines that are currently in service. The low bid, which meets all
stated specifications, was submitted by Crimson Fire, 907 7th Ave., Brandon,
South Dakota. Crimson is a subsidiary of Spartan Motors of Charlotte, Michigan.
The bid price submitted by Crimson is $1 ,031 ,390.
FINANCIAL IMPACT: Funds for this purchase and lease would originate in the
City's Public Improvement Fund. The current balance would provide for the
purchase of the first engine. Part of the future funds would provide the lease
payments for the engine/aerial.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the purchase and lease agreement.
Motion by Commissioner Spataro, second by Commissioner Davis to approve
the request to purchase two fire engines.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
C. Fire Truck Lease Purchase. FINANCE
SUMMARY OF REQUEST: One of the commitments made in the 1993 income tax
campaign was to set aside $150,000 each year to replace major fire equipment
on a "pay-as-you-go" basis. This commitment has been met each year. As of
12/31/04, there was $470,086 held in this account with an additional $150,000 to
be contributed in 2005. Public Safety staff has determined there is serious need
to replace two trucks at this time at a total projected cost of $1 ,031 ,390. Staff is
proposing to pay cash for the less expensive truck ($425,566) and to finance the
larger truck ($605,824) via an Act 99 installment purchase contract. Staff is
currently soliciting installment purchase quotes from various banks and other
lending sources.
FINANCIAL IMPACT: Quotes are being taken for two repayment terms: 7-year
and 10-year. Depending on which term is selected (and on quoted interest
rates), annual installments are estimated to be $70,000-$100,000.
BUDGET ACTION REQUIRED: None. Each year's budget includes $150,000
allocation for fire equipment replacement. Funding for the installment purchase
contract will come from this allocation.
STAFF RECOMMENDATION: To be determined.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the fire truck lease purchase through National City Bank.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
D. Resolution to Acquire 280 lona. COMMUNITY AND NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution that instructs the Community
and Neighborhood Services office to obtain 280 lona from the State of
Michigan, which is currently a vacant abandoned home. The structure is
located next door to 284 lona, a recently completed infill home under the
"Operation: At Long Last" project. The department's objective is to obtain 280
lona for the minimum price of $300, rehabilitate it and sell the property to a
qualified family. The obtaining of this property and the total rehabilitation is one
additional piece to the City's continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS Office will supply $300 from the HOME program
income fund.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and instruct the CNS
Office to send the document to the State of Michigan.
COMMITIEE RECOMMENDATION: The Commission approved this transaction
during the December 7, 2004, meeting.
Motion by Commissioner Shepherd, second by Commissioner Spataro to
approve the resolution to acquire 280 lona from the State of Michigan.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, and
Shepherd
Nays: None
MOTION PASSES
E. City - MDNR Memorandum of Understanding for Bike Trail along
Laketon. ENGINEERING
SUMMARY OF REQUEST: Approve the memorandum of understanding between
the City and MDNR for the construction of a 10' asphalt trail starting at Getty
and moving east to the extent the available funds of $50,000 permits. The
project will use City man power for the work while the State will pay for the
material and the rental of any other equipment necessary to do the work. It is
expected that the $50,000 from MDNR will be enough to construct a bike path
between Getty & Roberts.
FINANCIAL IMPACT: The salaries of those individuals that will be involved in the
work which is estimated at about $10,000 and the use of City owned equipment.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the Memorandum of Understanding.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the Michigan Department of Natural Resources Memorandum of Understanding
for the Bike Trail along Laketon Avenue.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
F. Fireworks Display Request for the Greek Festival. CITY CLERK
SUMMARY OF REQUEST: At the June 28th Commission Meeting you approved the
request from Summit Pyrotechnics for a fireworks display permit for the Big Fat
Greek Festival on July 30th. They are now requesting to set the fireworks off from
land instead of the Barge at Heritage Landing . Fire Marshall Meicalf will inspect
the fireworks on the day of the event.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED : None
STAFF RECOMMENDATION: Approval contingent on site plan inspection and
inspection of the fireworks.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
fireworks display request.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 6:47 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
Commission Meeting Date: July 12,2005
Date: July 1, 2005
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department Cf6t
RE: Sale of Buildable Vacant Lot at 551 S. Getty
SUMMARY OF REQUEST:
To approve the sale of a vacant buildable lot at 551 S. Getty Street (Parcel #24-205-035-
0001-11) to Angela Hawkins, 531 S Getty Street, Muskegon, MI. The lot is 80 x 111 ft. and
is being offered to Angela Hawkins for $3,000. Angela Hawkins will be combining this
property with her existing property and building an addition to her home. Her home is a two
story home and the addition will be in line with the existing structure. She will be adding just
over 1,000 square feet in total to the home. The True Cash Value (TCV) for the property
listed in the Assessor's office is $4,000, and our price is set at $3,000 which is 75% of that
amount.
FINANCIAL IMPACT:
The sale of this lot to the adjacent property owner for the construction of an addition to her
existing home will generate additional tax revenue for the City and will place the property
back on the City's tax rolls thus relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution and deed.
COMMITTEE RECOMMENDATION:
The Land Reutilization Committee recommends approval of the sale with the condition that
the property be combined with the owner's original parcel and they have 18 months to build
the addition.
7/1/05
CITY OF MUSKEGON
LAND REUTILIZATION COMMITTEE
REGULAR MEETING
MINUTES
June 28, 2005
Chairman M. Ann·hein called the meeting to order at 4:00p.m. and roll was taken.
MEMBERS PRESENT: M. Ann·hein, R. Hill, R. Allen, K. Davis
MEMBERS ABSENT: C. Shepherd, J. Mmtin Jr., J. McClain
STAFF PRESENT: H. Mitchell, D. Leafers, C. Bmbaker-Clarke
OTHERS PRESENT: A. Hawkins, 531 S. Getty; C. Miel, 531 S. Getty
APPROVAL OF MINUTES
A motion to approve the minutes of the regular meeting of April 26, 2005 was made by K. Davis,
supported by R. Hill and unanimously approved.
NEW BUSINESS
551 S. Getty St. - Request to sell the 80 x Ill buildable Jot at 531 S. Gettv St. to Angela Hawkins of 531
S. Getty St. for $3,000 to combine with her prope1tv, and not require her to build a home on the Jot Ms.
Hawkins would like to purchase the buildable City-owned property that is adjacent to hers. She will be
getting manied and her family will be expanding. She would like to build an addition to her current home
and is asking to purchase the property at the policy requirement price of 75% of the TCV ($3,000). She is
asking that she not be required to build a home on the prope1ty. The City-owned property does have a
slight slope headed toward Sumner Ave. The property at the corner of Sumner and Getty is owned by
Bethesda Baptist Church, and is vacant and unbuildable. Staff does not know what the church intends to do
with their property. With the lot being unbuildable, their options are limited. Staff recommends approval of
this request, or a compromise for the property. This would not go to City Commission until the sale is ready
to proceed. Any past due water bills or property taxes would have to be paid prior to the sale being
completed.
M. Amrhein asked if the purchase of this lot would allow the owners to meet the side setback requirements
for the pla1med addition to their home. H. Mitchell stated it would. R. Hill asked about the scope of the
constmction plans. C. Miel stated the addition would be 16 feet across fi·om north to south, and 34 feet
deep. It would cover what is now their side yard, and would be two stories. M. Ann·hein stated they would
be adding over I ,000 square feet to the residence, thus increasing the taxable value. He asked how many
feet existed between the home and the property line. A. Hawkins stated roughly 40 feet. R. Allen asked
about the unbuildable corner lot owned by the church. C. Miel stated that the church uses it for parking. R.
Allen asked if there were plans to fence the yard in. C. Miel stated they would be.
M. Amrhein asked if they could add the condition that the addition is to be built within 18 months. H.
Mitchell stated they could.
A motion to recommend approval to the City Commission to sell the buildable lot at 551 S. Getty St. to
Angela Hawkins for $3,000 to be combined with her prope1ty at 531 S. Getty St., and waive the
requirement to build a home on the lot, provided the planned addition to the home is completed within 18
months, was made by R. Hill, supported by K. Davis and unanimously approved.
City-Owned Property to Sell
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551 S. Getty 531 S. Getty
Resolution No. 2005-61(c)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 551 S. GETTY
STREET IN JACKSON HILL NEIGHBORHOOD FOR $3,000 as recommended by the Land
Reutilization Committee at their regular meeting of June 28, 2005.
WHEREAS, Angela Hawkins has placed a $400 deposit for the parcel designated as parcel
number 24-205-035-0001-11, located at 551 S. Getty Street; and
WHEREAS, the price (or parcel number 24-205-035-0001-11 is set by the City at $3,000, which
is 75% ofthe Tme Cash Value (TCV) listed in the City Assessor's Office; and
WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of
further maintenance costs; and
WHEREAS, the sale is not consistent with City policy regarding the disposition of buildable lots,
in that, this property will be combined with the adjacent property in order to constmct an
addition to the existing home located at 531 S. Getty Street.
NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-035-0001-11 , located at
551 S. Getty Street be sold to Angela Hawkins for $3,000.
CITY OF MUSKEGON REVISED PLAT OF 1903 N 40FT OF S 105 FT OF E 111
FT OF BLK35 & N 40FT OF S 145 FTOFE 111FT BLK35
Adopted this 121h day of July 2005
Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and Spataro
Nays: None
Absent: None
Attest: -.E=~~~~~
~~~~
~~~:___
Gail A. Kundinger, MMC
City Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by
the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on July 12, 2005.
By: ~0
Gail A. Kundinger, MMC
City Clerk
REAL ESTATE PURCHASE AGREEl\IENT
THIS AGREEMENT is made July 1 2 , 2005, by and between the
CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon,
Michigan 49440 ("Seller"), and ANGELA HAWKINS of 531 S. Getty Street, Muskegon,
Michigan 49442 ("Buyer").
I. General Agreement and Description of Premises. Seller agrees to sell, and
Buyer agrees to buy, record title of real estate, and all improvements thereon, with all beneficial
easements, and with all of Seller's right, title and interest in all adjoining public ways, the real
property located in the City of Muskegon, Muskegon County, Michigan ("Premises"), and
specifically described as:
CITY OF MUSKEGON REVISED PLAT OF 1903, NORTH 40 FEET OF SOUTH 105
FEET OF EAST Ill FEET OF BLOCK 35 AND NORTH 40 FEET OF THE SOUTH
145 FEET OF THE EAST Ill FEET OF BLOCK 35
Subject to the reservations, restrictions and easements of record, provided said reservations,
restrictions and easements of record are acceptable to Buyer upon disclosure and review of the
same, and subject to any governmental inspections required by law.
2. Purchase Price and Manner of Payment. The purchase price for the Premises
shall be Three Thousand and no/! 00 Dollars ($3,000.00).
3. Taxes and Assessments. All taxes and assessments that are due and payable at
the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special
assessments that become due and payable after Closing shall be the responsibility of Buyer.
4. Title Insurance. Seller agrees to deliver to Buyer, ten (10) days prior to closing,
a commitment for title insurance, issued by Land America Transnation Title Insurance Company,
for an amount not less than the purchase price stated in this Agreement, guaranteeing title on the
conditions required herein. In the event the reservations, restrictions or easements of record
disclosed by said title commitment is, in the sole discretion of Buyer, deemed unreasonable,
Seller shall have forty-five (45) days from the date Seller is notified in writing of such
unreasonableness of restriction and such unmarketability of title, to remedy such objections. If
Seller resolves such restrictions and remedies the title (by obtaining satisfactory title insurance or
otherwise) within the time specified, Buyer agrees to complete this sale as herein provided,
within ten (10) days of written notification thereof. If Seller fails to resolve such restrictions or
remedy the title within the time above specified or fails to obtain satisfactory title insurance, this
Agreement will be terminated at Buyer's option. The premium for the owner's title policy shall
be paid by Seller.
5. Covenant to Construct Improvements and Use. Buyer acknowledges that, as
part of the consideration inuring to the City, Buyer, covenants to the construction of a two-story
addition to the already existing two-story home on the property adjacent to the premises herein
0:\Planning\COMMON\Property\Buildable lot Sales\2005 Buildable lot Sales\551 S Getty\PURCHASE AGREEMENT.DOC
conveyed within eighteen (18) months of the closing of this transaction and this parcel shall then
be combined with the original parcel bearing an identification number of ( 61-24-205-035-0001-
09). The two-story addition constructed must be just over 500 square feet for each story
{approximately 16 feet to the South and 34 feet to the West) and shall remain in line with the
height of the existing home, up to all codes. Buyer may only remove those trees necessary for
construction of the two-story addition to the already existing two-story home and driveway. The
two-story addition shall be substantially completed within eighteen (18) months and, in the event
said substantial completion has not occurred, or the restriction of this paragraph relating to tree
removal is violated, in the sole judgment ofthe City, the property and all improvements then
installed shall revert in title to the City, without any compensation or credit to Buyer. The
covenants in this paragraph shall survive the closing and run with the land.
6. Survey. Buyer at its own expense may obtain a survey of the Premises, and
Buyer or its surveyor or other agents may enter the Premises for that purpose prior to Closing. If
no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to
the location, boundaries and area ofthe Premises and improvements thereon without regard to
any representations that may have been made by Seller or any other person. In the event that a
survey by a registered land surveyor made prior to closing discloses an encroachment or
substantial variation from the presumed land boundaries or area, Seller shall have the option of
effecting a remedy within thirty (30) days after disclosure, or tendering Buyer's deposit in full
termination of this Purchase Agreement, and paying the cost of such survey. Buyer may elect to
purchase the Premises subject to said encroachment or variation.
7. Condition of Premises and Examination by Buyer. NO IMPLIED
WARRANTIES OF HABITABILITY, QUALITY, CONDITION, FITNESS FOR A
PARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERATE
BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY W AlVES ANY AND ALL
SUCH IMPLIED WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT THE
PREMISES ARE TAKEN "AS IS," SUBJECT TO THE EXPRESS COVENANTS,
CONDITIONS AND/OR EXPRESS WARRANTIES CONTAINED IN THIS PURCHASE
AGREEMENT. BUYER FURTHER SAYS THAT HE HAS PERSONALLY INSPECTED
THE PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE
BUILDINGS AND IMPROVEMENTS THEREON, 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 SELLER. SELLER
KNOWS OF NO HAZARDOUS SUBSTANCES OR CONTAMINATION, AND BUYER
W AlVES ANY CLAIM AGAINST SELLER IN THE EVENT SUCH STUBST ANCES ARE
FOUND.
8. Closing. The closing date of this sale shall be on or before---,-=:--:----'
200_ ("Closing"). The Closing shall be conducted at Land America Transnation Title
Insurance Company, 570 Seminole Road, Ste. 102, Muskegon, MI 49444. If necessary, the
pm1ies shall execute an IRS closing report at the Closing.
9. Delivery of Deed. Seller shall execute and deliver a quit claim deed to Buyer at
Closing for the Premises.
0:\Pianning\COMMON\Property\Buildable Lot Sales\2005 Buildable lot Sales\551 S Getty\PURCHASE AGREEMENT.DOC
I 0. Affidavit of Title. At the Closing, Seller shall deliver to Buyer an executed
Affidavit of Title.
II. Date of Possession. Possession of Premises is to be delivered to Buyer by Seller
on the date of Closing.
12. Costs. Seller shall be responsible to pay the Michigan transfer tax, if any, in the
amount required by law. In addition, Seller shall be responsible to pay for the recording of any
instrument that must be recorded to clear title to the Premises, to the extent required by this
Agreement. Buyer and Seller shall equally split the cost of the closing.
Buyer shall pay for the cost of recording the deed to be delivered at Closing.
13. General Provisions.
a. Paragraph Headings. The paragraph headings are inserted in this
Agreement only for convenience.
b. Pronouns. When applicable, pronouns and relative words shall be read as
plural, feminine or neuter.
c. Merger. It is understood and agreed that all understandings and
agreements previously made between Buyer and Seller are merged into this Agreement,
which alone fully and completely expresses the agreement of the parties.
d. Governing Law. This Agreement shall be interpreted and enforced
pursuant to the laws of the State of Michigan.
e. Successors. All terms and conditions of this Agreement shall be binding
upon the parties, their successors and assigns.
f. Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect any other provision
of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or
unenforceable provision(s) had never been contained herein.
g. Survival of Representations and Warranties. The representations,
warranties, covenants and agreements contained in this Agreement and in any instrument
provided for herein shall survive the Closing and continue in full force and effect after
the consummation of this purchase and sale.
h. Modification of the Agreement. This Agreement shall not be amended
except by a writing signed by Seller and Buyer.
0:\Pianning\COMMON\Property\Buildable Lot Sales\2005 Buildable lot Sales\551 S Getty\PURCHASE AGREEMENT.OOC
The parties have executed this Real Estate Purchase Agreement the day and year fir<:t
above written.
WITNESSES: SELLER: CITY OF MUSKEGON
BUYER:
0:\Pianning\COMMON\Property\Buildable lot Sales\2005 Buildable lot Sales\551 S Get!y\PURCHASE AGREEMENT.DOC
QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal
corporation, of 933 Terrace Street, Muskegon, Michigan 49440,
QUIT CLAIMS to ANGELA HAWKINS of 531 S. Getty Street, Muskegon, Michigan 49442,
the following described premises situated in the City of Muskegon, County of Muskegon, State
of Michigan, to wit:
CITY OF MUSKEGON REVISED PLAT OF 1903, NORTH 40 FEET OF SOUTH 105
FEET OF EAST 111 FEET OF BLOCK 35 AND NORTH 40 FEET OF THE SOUTH
145 FEET OF THE EAST 111 FEET OF BLOCK 35
for the sum of Three Thousand and no/100 Dollars ($3,000.00)
PROVIDED, HOWEVER, Grantee, or its assigns, shall complete constmction of a two-story
addition to the already existing two-story home on the property adjacent to the premises herein
conveyed within eighteen ( 18) months after the date hereof and this parcel shall then be
combined with the original parcel bearing an identification number of(61-24-205-035-0001-09).
The two-story addition constmcted must be just over 500 square feet for each story
(approximately 16 feet to the South and 34 feet to the West) and shall remain in line with the
height of the existing home. In default of such construction, title to the premises shall revert to
the City of Muskegon free and clear of any claim of Grantee or its assigns. In addition, the City
of Muskegon may retain the consideration for this conveyance free and clear of any claim of
Grantee or its assigns. Grantee shall remove only those trees necessary for constmction of the
two-story addition to the already existing two-story home and driveway. "Complete
construction" means: (1) issuance of a residential building permit by the City of Muskegon; and,
(2) in the sole opinion of the City of Muskegon's Director oflnspections, substantial completion
of the dwelling described in the said building permit. In the event of reversion of title of the
above-described premises, improvements made thereon shall become the property of Grantor.
Provided, further, that Grantee covenants that the parcel described above shall be improved with
not more than the two-story addition described above. These covenants and conditions shall run
with the land.
This deed is exempt from real estate transfer tax pursuant to the provisions of
MCLA 207.505(h)(i) and MCLA 207.526 Sec. 6(h)(i).
Dated this ___ day of _ _ __ _ _ ,2005.
Signed in the presence of: CITY OF MUSKEGON
STATE OF MICHIGAN
COUNTY OF MUSKEGON
Signed and sworn to before me in Muskegon County, Michigan, on ,JU(;t oP/ ,
2005, by STEPHEN J. WARMINGTON and GAIL A. KUNDINGER, MMC, the Mayor and
Clerk, respectively, of the CITY OF MUSKEGON, a municipal corporation, on behalf of the
City.
PREPARED BY: John C. Schrier L/ada S. /l;tTt'r , Notary Public
Parmenter O'Toole Acting in the County of @l{s Ev:z-on
I 75 W. Apple Avenue/P.O. Box 786 7/:7asJ-'~.,_o/7 County, Michigan
~uskegon,~I49443-0786 My Comm. xp1res: 5'- c;? s--o[,
Telephone: 231/722-162 I
WHEN RECORDED RETURN TO: Grantee SEND SUBSEQUENT TAX BILLS TO: Grantee
Transnation Title Insurance Company
570 Seminole Rd Ste 102
Muskegon, MI 49444
Escrow Officer: Kimber VanderWall Title No.: MUS439460
Date: 08/02/2005
PURCHASER'S SETILEMENT STATEMENT
Buyer(s): Angela Hawkins Seller(s): City of Muskegon, a municipal corporation
Property: 551 S. Getty St.
Muskegon, MI 49442
Revised Blk 35 part
DEBIT CREDIT
Contract Sales Price $3,000.00
Deposit or earnest money $400.00
Settlement or closing fee to LandAmerica $200.00
Transnation
Recording Deed: Mortgage: Releases: $17.00
Fees $17.00
***** Sub Total $3,217.00 $400.00
Balance Due From Borrower $2,817.00
Total $3,217.00 $3,217.00
The above figures do not include sales or use taxes on personal property.
ACCEPTED AND APPROVED
Broker:
By:
Transnation Title Insurance Company
570 Seminole Rd Ste 102
Muskegon, MI 49444
Escrow Officer: Kimber VanderWall Title No.: MUS439450
Date: 08/02/2005
SELLER'S SETILEMENT STATEMENT
Seller(s): City of Muskegon, a municipal Buyer(s): Angela Hawkins
corporation
Property: 551 S. Getty St.
Muskegon, MI 49442
Revised Blk 35 part
DEBIT CREDIT
Contract Sales Price $3,000.00
Earnest money held by seller $400.00
Commission Paid at Settlement $0.00
to
to
Settlement or closing fee to LandAmerica Transnation $200.00
Title insurance to LandAmerica Transnation $200.00
Record Quit Claim Deed to MUSKEGON COUNTY REGISTER $14.00
OF DEEDS
***** Sub Total $814.00 $3,000.00
Balance Due To Seller $2,185.00
Total $3,000.00 $3,000.00
The above figures do not include sales or use taxes on personal property.
APPROVED AND ACCEPTED
Broker:
City of Muskegon, a municiple corporation
By:
Commission Meeting Date: July 12, 2005
Date: June 29, 2005
To: Honorable Mayor & City Commission
From: Planning & Economic Development DepartmentcJbC...
RE: Policy change to "Policy for Sale of City-Owned
Residential Property''
SUMMARY OF REQUEST:
To approve the change to the "Policy for Sale of City-Owned Residential Property" to include
that Closing Costs will be split between the buyer and the seller.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution.
COMMITTEE RECOMMENDATION:
The Land Reutilization Committee recommended approval of the policy change at their
regular meeting of June 28, 2005
6/29/05
RESOLUTION NO. 2005-61(d)
MUSKEGON CITY COMMISSION
RESOLUTION TO ADOPT AN AMENDMENT TO THE "POLICY FOR SALE OF CITY-
OWNED RESIDENTIAL PROPERTY"
WHEREAS, the City of Muskegon owns many lots and wishes to sell these lots, and;
WHEREAS, the City of Muskegon would like to disclose to the purchaser the payment of
closing costs;
NOW, THEREFORE, BE IT RESOLVED that the City Commission hereby adopts the
following policy amendment:
(to be added to page 3)
Closing Costs
All closing costs will be split between the buyer and the seller.
Adopted this 12th day of July, 2005.
Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and Spataro
Nays: None
Absent: None
Gail A. Kundinger, MMC
City Clerk
CERTIFICATION
2005-61(d)
This resolution was adopted at a regular meeting of the City Commission, held on July·
12, 2005. The meeting was properly held and noticed pursuant to the Open Meetings Act
of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
By: ~O~
, L~
Gail A. Kundinger, MMC
City Clerk
7/05
City of Muskegon
Policy for Sale of City-Owned Residential Property
Objective
The City of Muskegon (the City) wishes to expand its residential tax base while simultaneously
alleviating itself of the significant cost burden associated with year-round maintenance of vacant lots.
The City reserves the right to join and split lots to assist with this process. All property will be sold as
is. All sales are subject to City Commission approval.
Pursuant to the above, the City will periodically implement neighborhood marketing strategies.
Elements of this policy may be superceded by a marketing strategy, if said strategy is approved by the
City Commission as an exception to this policy, and only while said strategy is being utilized to market
properties identified by the strategy.
Non-Buildable Lots/Marginal Lots
• Non-Buildable lots are defined as lots that are insufficient in size or configuration for new
construction under the Zoning Ordinance. Marginal lots are defined as residential lots that are
between 50 and 60 feet of frontage, however it would not be in the best interest of the
neighborhood to create increased density, or would create buildable lots for adjoining property
owners. These lots may only be sold to adjacent property owners; neighborhood organizations; or
valid non-profit agencies, to expand/improve or beautify existing property. In the event that both
adjacent owners seek to purchase a property, the City shall divide the property in the most
equitable manner. Factors considered before approvals of property sales include but are not limited
to the following:
• Amount of existing property owned by interested parties
• Current upkeep of existing property owned by interested parties
• Evidence of unresolved zoning issues.
• Unpaid environmental invoices or delinquent property taxes.
These lots will be sold for $1.
Buildable Lots
Buildable lots are defined as lots oflegal record which are suitable in size and configuration under the
Zoning Ordinance, for the construction of single-family homes, and may only be sold for such a
purpose. As a condition of sale, structures built on these properties must be owner occupied for a
minimum of 5 years. The buyer must 1commence construction within 18 months of the date of
purchase, or the property will revert back to the City's ownership, free and clear of any claim of the
buyer. Buyers requiring frontage of 130' or more must build homes with a minimum of 2,500 square
1
"Commence Construction" means that a buyer has been issued a residential building permit by the
City of Muskegon and also (in the sole opinion of the City of Muskegon's Building Official) that at least
twenty-five percent (25%) of the dwelling has been completed.
0:\Planning\COMMON\Property\Po\icy and Procedures\Policy\Proposed Property Sale Policy July OS.doc
6/05
feet ofliving space and go before the Land Reutilization Committee (LRC) for a recommendation. All
structures must conform to all City building and zoning requirements. These lots shall be sold for
market value.
Home Design
Any person wishing to purchase land from the City for the purposes of constructing a single
family or duplex structure (in areas zoned for duplexes) shall adhere to the following standards:
I. The structure shall have a minimum of 1,260 square feet of usable living space per unit
(excluding all basement area).
2. The roof of the structure shall have a minimum pitch of 5/12, that is, for every twelve
inches (12") oflateral run, the roof shall rise five inches (5").
3. A single-story home shall have a variable roofline on the front elevation (e.g. gable,
dormer or offset).
4. The building design shall be approved by the City and shall include at least two of the
following:
a. A covered front porch with design amenities (e.g., decorative railing). (potential
$300 lot credit)
b. A picture or bay window in the front elevation. (potential $500 lot credit)
c. A starburst or other siding design features in roof gables or over doorways or
windows. (potential $200 lot credit)
d. Shutters or other acceptable outdoor window treatments (potential $100 lot
credit)
e. Brick or stone accents in the front elevation (potential $1,000 lot credit)
f. Decorative windows (potential $200 lot credit)
5. A second story may be a potential $2,000 lot credit but may not be included as one of
the two required design elements.
6. A "stick-built" home may be a potential $2,000 lot credit but may not be included as
one of the two required design elements.
7. In no case shall the total number of credits amount to more than $2,500.
8. The house shall have a garage or at least an 8 foot x 8 foot painted or vinyl covered
wood storage shed constructed as per City requirements for sheds.
9. All bedrooms shall have at least one hundred (100) square feet oflivable floor area.
2
6/05
I 0. At the time the building permit application is submitted, the plot plan and building
design will be reviewed to determine compliance with all requirements of this policy.
II. Removal of existing trees shall be approved by zoning staff prior to lot clearing. Trees
shall only be taken to accommodate the structure and driveway. A performance
guarantee may be required of the owner or contractor for tree protection.
12. At least two (2) shade trees shall be provided on site of at least two and one-half (2.5")
inches in diameter four feet from the ground. Preservation of existing trees may be
considered in lieu of this requirement.
13. The lot shall be established with appropriate grass, ground cover or other plantings
within one year of occupancy or the city may arrange for such planting and bill the
owner.
The aforementioned conditions and credits shall be incorporated into a sales contract between
the city and the buyer.
Large Blocks of Land
This type of lot is defined as contiguous property that would allow for the construction of a minimum
of 3 single-family residential structures. It is the preference of the City that these lots be sold as a
single parcel to individuals with the means to develop the land for multiple single family units or
multi-family units such as townhouses, site condos; and the like. Development must conform to either
Single Family or Multiple Family building/zoning requirements. All interested parties must comply
with preliminary site review requirements as determined by the Zoning Administrator.
Process for Purchasing Land
The procedure for purchasing city-owned property can be found in a brochure produced by the
Planning Department, entitled "Purchase of City-Owned Residential Property".
Recording of the Deed
All property sales must be recorded with the Muskegon County Register of Deeds. This is the sole
responsibility of the buyer. All sales will be handled as quit claim deeds.
Closing Costs
All closing costs will be split between the buyer and the seller.
Proputy Survey
All costs and activities associated with a survey are the sole responsibility of the buyer.
Environmental
Properties will be sold as is. Any environmental analysis is the sole responsibility of the buyer.
3
6/05
Title Evidence/Insurance
Quitting title of tax reverted properties sold and properties spit for minimal amounts such as non-
buildable lots, shall be the responsibility of the buyer.
Financing
Financing the acquisition of City-owned property and subsequent construction (if applicable) is the
sole responsibility of the buyer. Failure to provide proof of adequate financing may be used as a basis
for denial of a sale.
Appeal Procedure
Any denial of a sale can be appealed to the LRC using the appeals procedure as defined by the LRC.
All sales whether appealed or not go before the City Commission for approval before a sale can be
initiated.
4
CITY COMMISSION MEETING
July 12, 2005
Agenda Item
TO: HONORABLE MAYOR AND CITY COMMISSIONERS
FROM: H.E.A.L.T.H AND FITNESS COMMITTEE
DATE: June 30, 2005
RE: Used Computer Equipment Fundraiser
•
SUMMARY OF REQUEST: The City H.E.A.L.T.H and Fitness Committee seeks
City Commissioners' approval to sell obsolete computer equipment that the
Information Technology Department has in storage in the City Hall basement.
This old equipment is set to be discarded or destroyed by the Information
Technology Department. The proceeds from this fund raiser will be used to
purchase exercise equipment for the fitness area in the City Hall basement this
fall. Any questions, please contact Ken Grant at 724-6932 or Gail Kundinger at
724-6721.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the request for sale of obsolete computer equipment and the
proceeds from the sale go to the H.E.A.L.T.H. Exercise Equipment Project for
City Hall.
Date: July 12,2005
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Accounting Services Contract
SUMMARY OF REQUEST: In 1997, in conjunction with an early retirement initiative,
the Finance Department replaced a full-time finance clerk position with a contractual
accounting services arrangement. This has proven to be a very successful and efficient
arrangement: the number of billable hours has steadily declined each year while the quality
and volume of work has increased. In 2004, the total cost of the contract was $11,279 for
262 hours of work. By way of comparison, the 2005 budgeted cost (wages and benefits) for
a position comparable to the one replaced in1997 is $60,000.
The contract for accounting services has been with Hoffman, Steensma & Plamondon (HSP)
since the start. The HSP individual assigned to this account now has several years of
valuable experience with city financial procedures and maintains an excellent working
relationship with finance staff. HSP has submitted a proposal for a three-year renewal of the
contract which staff believes is fair and reasonable.
FINANCIAL IMPACT:
Professional Staff %Increase Manager & Partner %Increase
Current $ 42.00 $ 50.00
2006 $ 43.00 2.4% $ 51.00 2.0%
2007 $ 44.00 2.3% $ 52.00 2.0%
2008 $ 45.00 2.3% $ 53.00 1.9%
BUDGET ACTION REQUIRED: The 2005 budget includes adequate funding for
these services. Future budgets will incorporate the proposed rates.
STAFF RECOMMENDATION: Approval of a three-year contract extension with
Hoffman, Steensma & Plamondon, PLC for accounting services.
COMMITTEE RECOMMENDATION: No committee action was taken.
Jloffman, Steensma & P[amonrfon, P.L.C.
Certified Public Accountants
ROGER E. HOFFMAN. C.P.A. DOUGLAS A PLAMONDON. C.P.A.
ROGER D. STEENSMA. C.P.A. RANDY J NOVOTNY. C.P.A.
June 24, 2005
Mr. Tim Paul
City of Musl<.egon
933 Terrace Street
Muskegon, Michigan 49443
Dear Tim:
We are pleased to confirm our understanding of the accounting and support services that we
are to provide to the City of Muskegon.
We will provide accounting and boold<.eeping services at the following rates:
Rate Per Hour Professional Staff Manager & Partner
2005 $42 $50
2006 $43 $51
2007 $44 $52
2008 $45 $53
Our invoices for these fees are payable upon presentation. Our fees on this engagement are for
the services described herein.
We appreciate the opportunity to be of service to the City of Muskegon and believe this letter
accurately summarizes the significant terms of our engagement. If you have any questions,
please let us know. If you agree with the terms of our engagement as described in this letter,
please sign the enclosed copy and return it to us.
Very tJ·uly yours,
Douglas A. Plamondon
221 W. Webster Ave .. Suite 502 · Muskegon. Ml 4 9440- 1243 · (231) 728-5176 · Fax (231) 726-3530
www.hspcpas.com
RESPONSE:
derstanding of the City of Muskegon.
By:
Title:
Date:
CITY COMMISSION MEETING
Tuesday, July 12, 2005
TO: Honorable Mayor and City Commissioners
FROM: Mark Kincaid
Deputy Director of Public Safety
DATE: July 5, 2005
SUBJECT: Request to Purchase Two Fire Engines
SUMMARY OF REQUEST:
Fire Department staff is requesting approval by the Commission to allow for the
procurement of two fire engines. The first engine would be a standard front-line engine,
which would be purchased. The second would be an engine to include a 75' aerial ladder
with a water delivery system which would be leased over a period of ten years. These
two engines would replace two engines that are currently in service. The low bid, which
meets all stated specifications, was submitted by Crimson Fire, 907 7'h Ave., Brandon,
South Dakota. Crimson is a subsidiary of Spartan Motors of Charlotte, Michigan. The
bid price submitted by Crimson is $1,031,390. A bid sheet is attached.
FINANCIAL IMPACT:
Funds for this purchase and lease would originate in the city's Public Improvement Fund.
The current balance would provide for the purchase of the first engine. Part of the future
funds would provide the lease payments for the engine/aerial.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATIONS:
Approval of the purchase and lease agreement.
City of Muskegon
Apparatus Bids 5-24-05
Crimson Fire $1,031,390
907 71h Ave.
Brandon SD 57005
E-Oneinc. 810,873 (Took total exception to our specs and bid demo stock
3611 SW 201h St. trucks)
Ocala FL 344 74
KME Fire Apparatus 1,056,539 (Gave alternative bid of$808,774 for stock trucks)
One Industrial Complex
Nesquehoning P A 18240
Pierce Manufacturing Declined to bid
2600 American Dr.
Appleton WI 54912
Seagrave Fire Apparatus 1,132,028 (This is using Detroit Diesel, gave alternative bid of
105 E. 12'h St. 1,147,403 using aluminum cab with Cummins)
Clintonville WI 54929
Toyneinc. 1.012,124 (Took exception to single source provision)
104 Granite Ave.
Breda IA 51436
(
' .~·. '
9077 "'AVENUE NORTH BRANDON, SO 57005-2003 (605) 582-400J
FAX (605) 582-4001
CONTRACT~ Muskegon Michigan· Pumper
·n liS A(jREEMENT, made by and between Crimson Fire, Inc. Brandon, SD, first party, and
The ( 'ity of Muskegon Ml By its authorized representative, second party.
WITNESSETH:
First; The suid first purty hereby agrees to furnish the apparatus and equipment according to the specifications hereto
<lltachcd ;md mndc part of this contract, and to deliver the same as hereinafter provided.
Second: The first pllrty agrees that all material and workmanship in and about said apparatus and equipment shall
comply \\'ith said specifications. lu the event there is any conflict between Customer Specifications previously
submitted to Crimson Fire, Inc .. and the specifications attached hereto, it is understood and agreed between the parties
that the arparattJ:> and equipment made the basis of this contract shall meet only the specifications attached hereto and
m:ulc n part hereof: as if fully and completely set out herein, and no other. This sole and exclusive warranty
;lccompanying this sale is contained in the warranty attached hereto, and made a part hereof by reference, as if fully and
cnrnplctcly set ont herein.
Third: This contract for tire apparatus confomJs with all Federal Department of Transportation (DOT) rules and
rl!gulations ill ctTcet at the time of contract signing, and with all National Fire Protection Association (NFPA}
(luidclincs fOr Automotive Fire Apparatus as published at the time of contract signing, except as modified by Customer
Spccitlcntions. Any increased cost incurred by first party because of future changes in or additions to said DOT or
NFPA ~tandurds will be passed along to the customer as an addition to the price set forth below.
fow1h: The said apparants and equipment shall be ready for delivery from the first party's factory, within about 330
c;~lcnd<tr nftcr the receipt and acceptance of this contract at the first party's office at Brandon, SD, delays due to strikes,
failures to obtain chassis, materials, or other causes beyond its control not preventing, and shall be delivered to said
pilrty of the second party at Tile City of Muskegon Fire Department.
Finh: A competent !icrviccman shall upon request, be furnished by first party to demonstrate said apparatus for second
party and to give its employees the necessary instructions in the operation and handling of said apparatus.
Sixth: The second party hereby purchases and agrees to pay for said apparatus and equipment, the sum of Four
Hu11dred and Twenty Five Thousand Five Hundred Sixty Six Dollars and no cents (S425,566.00).
In the cYcnt the apparatus is placed in fire service prior to payment in full, the first party reserves the right to charge a
rcnt:1l fee of Two llundrcd Fifty Dollars ($ 250.00) per day.
,\ny applicable taxes not specified noted above will be paid by the second party directly, or will be added to the
Purchase Price ~md paid by the first party. If second party claims exemption from any tax. second party agrees to
fhrnish <ipplicnble exemption certificate and save the party hannless from any such tax, interest or penalty. which may
.st any time. Is assessed against the first party.
ScvetJth: Acceptance of goods shall occur when the second party takes delivery, In case the second party desires to
tl!st the i!ppar:lll!!', such tests shall be made within I 0 days after anival of the goods at destination and a written report
of sucll tests. Forthwith delivered to the first party at its principal office at Brandon, South Dakota. If no such tests be
lll<tdc, or if no such report be made by the second party within J0 days after arrival, then said apparatus and equipment
shall be conclliSivcly determined to be in full compliance with contract specifications and conclusively dctennined to
he confbmJing and in accordance with the obligations under this contract. No revocation of acceptance shall take place
unless communicnted to the first party within I 0 days after delivery of the goods. In the event notice of revocation of
~Jcccptnlll!c is communicated to the first party within 10 days, the second party's right to revoke its acceptance shall be
gov~rncd by the laws of the State ofMichigan.
Eiphth: Fore~ Majeure:
Tlu: ('untmctnr slwll not be liable if perfomumce failure arises out of causes beyond his control and without the fauh or
negligence urthe Contructor (acts of God. war. fires. floods, freight embargoes. order of nny court. or specific cause
reastlllllhly bcym1d the party's control and not attributable to its neglect or nonfeasance). Should u pcrfonnance failure
occur. it will be the responsibility of the Contractor to notify the Purchaser in writing and submit proof of the
t:in.·umst;.mccs tOr non-perfom1ance. ltnmediately following the resolution of circumstances responsible for non-
pcrJ'ornwncc. the (.'(lmmctor must renegotiate delivery schedules.
Ninth: It i.'i;Jgrccll that the apparatus and equipment covered by this contract shall remain the property of the first party
um ill he c.mirc contmct price has been paid, but if more than one piece of apparatus is covered by this contract, then
c<H:h piece slmll remain the property of the first party until the above listed price for such piece hns been paid in fuJI,
w1d in c01se of :m default in payment the first party may take full possession of the apparatus and equipment, or of the
piece or pieces upon which defaultlms been made, and any payments that have been made shall be applied as payment
fur the u~e of the apparatlli and equipment up to date taking possession.
·renlh: Thi:\ ccmtract to be binding must be signed and approved by an officer of Crimson Fire Fire Apparatus Co., or
snmcunc <luthorizcd by it to do so. This contract and specifications take precedence over all previous negotiations and
nn representative~ arc considered as entering into this contract except as are contained herein or in the specifications
<l!lachcd hereto. This contract cannot be altered or modified except by murual written agreement signed by the parties .
.Scvcmbility. If nny part hereof is contmry to, prohibited by, or deemed invalid under applicable laws or regulations,
sut:h provision shall be deemed inapplicable: and deemed omitted to the: extent to contrary. prohibited or invalid, but
remainder slwll be deemed inapplicable and deemed omitted to the ex:tent to contrary, prohibited or invalid, but
remainder shall not be invalidated and shall be given effect so f,ar as possible.
('I'll II sun F'
· 1re.. uc.
D~ "\
Michael B~c;/0A b.-:;.--
lly: Michael R Zahnen
!-Jldes Representative Signature ( '---',Cu,~merSivn
~~ .
" Party
!..1c:v·m•"•
:b.
Michael R. Zahnen ~
Prin! Name
Print Name
July JJ. 2005 1.-~1-<>s
Date Date
r----.. !J
Ily: ~Q-, ~ -
(/ACCEPTED AT Brandon, South Dakota
?:.imson Fire, Inc. Officer Signature
Print Nnme: ~cg, D- Sr'-v\.
Title: DII~-Pf' H....o.J<C
Date: 3z'fl eJ"
t
Rev. I I .08.04
. Bond No. 81 BCSDG9044
Supply Performance Bond
Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable
CONTRACTOR (Name and Address): SURETY (Name and Principal Place of Business):
Crimson Fire, Inc. Hartford Fire Insurance Company
907- 7'h A venue North Hartford Plaza
Brandon, SD 57005 Hmtford, CT 06115
OWNER (Name and Address):
City ofMusl<egon
75 W. Walton
Muskegon, MI 49440
CONTRACT
Date: July 29, 2005
Amount: $425,566.00
Description (Name and Location): One Crimson Star SM Pumper
BOND
L'ate (Not earlier than Contract Date): August 2, 2005
Amo:mt: $425,566.00
Modificetions to this Bond: X None __See Page3
CONTRACTOR AS PRINCIPAL SURETY
Company: Crimson Fire, Inc. (Corporate Seal) Company: Hartford Fire Insurance (CO!porate 3eal)
Company
Signature:
Name and
.---c-~:.__;_~_u_;{2_.-~-~-·
Title:~t
Signature:
Name and Title: Julie Mroz, Altomey-in-Fact.
(Any additional signatures appear on page 3)
(FOR INFORMATION ONLY -Name, Address and Telephone)
AGENT or BROKER: Marsh USA Inc. OWNER'S REPRESENTATIVE (Architect, Engineer or
200 Ottawa Ave. N. W.- Suite 700 other party):
Grand Rapids, MI 49503
(616) 233-4200
Page I
Bond No. 81 BCSDG9044
The Contractor and the Surety, jointly and severally, bind described in Paragraph 6 in excess of the Balance of the
themselves, their he'irs, executors, administrators, successors Contract Price incun·ed by the Owner resulting from the
and assigns to the Ovmer for the perfmmance of the Contract, Contractor's default; or
which is incorporated herein by reference.
4.4 Waive its right to perfonn and complete, arrange for
2 If the Contractor perfonns the Contract, the Surety and the completion, or obtain a new contractor and with reasonable
Contractor shall have no obligation under this bond, except to promptness under the circumstances:
participate in conferences as provided in Subparagraph 3.1.
.1 After investigation, determine the amount for
3 If there is no Owner Default, the Surety's obligation under which it may be liable to the Owner and, as soon
this Bond shall arise after: as practicable after the amount is determined,
tender payment therefor to the Owner; or
3.1 The Owner has notified the Contractor and the Surety
at its address described in Paragraph I 0 below that the .2 Deny liability in whole or in part and notifY the
Owner is considering declaring a Contractor Default and Owner citing reasons therefor.
has requested and attempted to arrange a conference with
the Contractor and the Surety to be held not later than 5 If the Surety does not proceed as provided in Paragraph 4
fifteen days after receipt of such notice to discuss methods with reasonable promptness, the Surety shall be deemed to be
of performing the Contract. If the Owner, the Contractor in default on this Bond fifteen days after receipt of an
and the Surety agree, the Contractor shall be allowed a additional written notice from the Owner to the Surety
reasonable time to perform the Contract, but such an demanding that the Surety perfonn its obligations under this
agreement shall not waive the Owner's right, if any, Bond, and the Owner shall be entitled to enforce any remedy
subsequently to declare a Contractor Default; and available to the Owner. lf the Surety proceeds as provided in
Subparagraph 4.4, and the Owner refuses the payment
3.2 The Owner has declared a Contractor Default and tendered or the Surety has denied liability, in whole or in part,
fmmally terminated the Contractor's right to complete the without further notice the Owner shall be entitled to enforce
contract. Such Contractor Default shall not be declared any remedy available to the Owner.
earlier than twenty days after the Contractor and the Surety
have received notice as provided in Subparagraph 3.1; and 6 After the Owner has terminated the Contractor's right to
complete the Contract, and if the Surety elects to act under
3.3 The Owner has agreed to pay the Balance of the Subparagraph 4.1, 4.2, or 4.3 above, then the responsibilities
Contract Price to the Surety in accordance with the terms of the Surety to the Owner shall not be greater than those of
of the Contract or to a contractor selected to perform the the Contractor under the Contract, and the responsibilities of
Contract in accordance with the terms of the contract with the Owner to the Surety shall not be greater than those of the
the Owner. Owner under the Contract. To the limit of the amount of this
Bond, but subject to commitment by the Owner of the Balance
4 \!.'hen the Owner has satisfied the conditions of Paragraph of the Contract Price to mitigation of costs and damages on the
3, the Surety shall promptly and at the Surety's expense take Contract, the Surety is obligated without duplication for:
one of the following actions:
6.1 The responsibilities of the Contractor for correction of
4.1 Arrange for the Contractor, with consent of the Owner, defective work and completion of the Contract;
to perfonn and complete the Contract; or
6.2 Additional legal, design professional and delay costs
4.2 Undertake to perfotm and complete the Contract itself, resulting from the Contractor's Default, and resulting from
through its agents or through independent contractors; or the actions or failure to act of the Surety under Paragraph
4; and
4.3 Obtain bids or negotiated proposals from qualified
contractors acceptable to the Owner for a contract for 6.3 Liquidated damages, or if no liquidated damages are
performance and completion of the Contract, arrange for a specified in the Contract, actual damages caused by
contract to be prepared for execution by the Owner and the delayed performance or non-perfonnance of the
contractor selected with the Owner's concurrence, to be Contractor.
secured with performance and payment bonds executed by
a qualified surety equivalent to the bonds issued on the
Contract, and pay to the Owner the amount of damages as
Page 2
Bond No.8! BCSDG9044
7 The Surety shall not be liable to the Owner or others for II When this Bond has been fumished to comply with a
obligations of the Contractor that are unrelated to the Contract, statutmy or other legal requirement in the location where the
and the Balance of the Contract Price shall not be reduced or contract was to be fulfilled, any provision in this bond
set off on account of any such unrelated obligations. No right conflicting with said statutory or legal requirement shall be
of action shall accrue on this Bond to any person or entity deemed deleted herefrom and provisions conforming to such
other than the Owner or its heirs, executors, administrators or statutory or other legal requirement shall be deemed
successors, incmporated herein. The intent is that this Bond shall be
construed as a statutory bond and not as a common law bond.
8 The Surety hereby waives notice of any change, including
changes of time, to the Contract or to related subcontracts, 12 DEFINITIONS
purchase orders and other obligations
12.1 Balance of the Contract Price: The total amount
9 Any proceeding, legal or equitable, under this Bond may be payable by the Owner to the Contractor under the Contract
instituted in any cowt of competent jurisdiction in the location after all proper adjustments have been made, including
in which the work or palt of the work is located and shall be allowance to the Contractor of any amounts received or to
instituted within two years after Contractor Default or within be received by the Owner in settlement of insurance or
two years after the Contractor ceased working or within two other claims for damages to which the Contractor is
years after the Surety refuses or fails to perform its obligations entitled, reduced by all valid and proper payments made to
under this bond, whichever occurs first. If the provisions of or on behalf of the Contractor under the Contract.
this Paragraph are void or prohibited by Jaw, the minimum
period of limitation available to sureties as a defense in the 12.2 Contract: The agreement between the Owner and the
jurisdiction of the suit shall be applicable. Contractor identified on the signature page, including all
Contract Documents and changes thereto.
10 Notice to the Surety, the Owner or the Contractor shall be
mailed or delivered to the address shown on the signature 12.3 Contractor Default: Failure of the Contractor, which
page. has neither been remedied nor waived, to perform or
otherwise to comply with the terms of the Contract.
12.4 Owner Default: Failure of the Owner, which has
neither been remedied nor waived, to pay the Contractor as
required by the Contract or to perform and complete or
comply with the other terms thereof.
MODIFICATIONS TO THIS BOND ARE AS FOLLOWS:
None
(Space is provided below for additional signatures of added palties, other than those appearing on the cover page)
CONTRACTOR AS PRINCIPAL SURETY
Company: (Corporate Seal) Company (Corporate Seal)
Signature: N!A Signature: _ _ _ _ _ __,N"/:LAL..________
Name and Title: Name and Title:
Address: Address:
Page 3
THE HARTFORD
POWER OF ATTORNEY BOND, T4
690 ASYLUM AVENUE
HARTFORD, CONNECTICUT 06115
call: 888-266-3488 or fax: 860-757-5835
KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Code: 81-150500
CR:J Hartford Fire Insurance Company, a corporation duly organized under the Jaws of the State of Connecticut
CR:J Hartford Casualty Insurance Company, a corporation duly organized under the Jaws of the State of Indiana
CR:J Hartford Accident and Indemnity Company, a corporation duly organized under the laws of the State of Connecticut
0 Hartford Underwriters Insurance Company, a corporation duly organized under the Jaws of the State of Connecticut
0 Twin City Fire Insurance Company, a corporation duly organized under the laws ofthe State oflndiana
0 Hartford Insurance Company of Illinois, a corporation duly organized under the laws of the State of Illinois
0 Hartford Insurance Company of the Midwest, a corporation duly organized under the laws of the State of Indiana
0 Hartford Insurance Company of the Southeast, a corporation duly organized under the laws of the State of Florida
having their home office in Hartford, Connecticut, (hereinafter collectively referred to as the "Companies"} do hereby make, constitute and appoint':'"'
up to the amount of unlimited:
Drew Brach, Brian Cook, H. David Hoov/er, Loretta A Peretii, Ronda L Peke/, James A Dawdy, Bl}'an L Formsma, Julie Mroz
of
Grand Rapids, M/
their true and lawful Attorney(s)-ln-Facl, each In their separate capacity if more than one is named above, to sign its name as surety(ies) only as
delineated above by [81, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the
na1ure thereof, on behalf of the Companies in their business of guaranteeing the fidelily of persons, guaranteeing the performance of contracts and
executing or guaranteeing bonds and undertakings required or permitled in any actions or proceedings allowed by law.
In Witness Whereof, and as authorized by a Resolution of the Board of Directors of the Companies on July 21, 2003 lhe Companies
have caused these presents to be signed by its Assistan1 Vice President and its corporate seals to be hereto affixed, duly altesled by its Assistant
Secretary. Further, pursuant to Resolution of the Board of Directors of the Companies, lhe Companies hereby unambiguously affirm lhat they are
and will be bound by any mechanically applied signatures applied to this Power of Attorney.
Paul A Bergenholtz, Assistant Secretary David T. Akers, Assistant Vice President
STATE OF CONNECTICUT}
ss. Hartford
COUNTY OF HARTFORD
On this 4th day of August, 2004, before me personally came David T. Akers, to me known, who being by me duly sworn, did depose and
say: that he resides in the County of Hampden, Commonwealth of Massachusetts; that he Is the Assistant Vice President of the Companies, the
corporations described In and which executed the above instrument; that he knows the seals of the said corporations; that the seals affixed to the
said instrument are such corporate seals; that they were so affixed by authority of the Boards of Directors of said corporations and that he signed
his name thereto by like authorily.
Scott E. Paseka
Notary Public
CffiTJFICATE My Commission Expires Oc!Ober 31, 2007
I, the undersigned, Assistant Vice President of the Companies, DO HEREBY CERTIFY that the above and foregoing is a lrue and correct
copy of the Power of Attorney executed by said Companies, which is still in full force effective as of August 2, 2005.
Signed and sealed at the City of Hartford.
(~(t)~t
Gary W. Stumpor, Assistant Vice President
POA 2004
.'lim.
flAi:iTFORD
Claims Inquiries Notice
Hartford Fire Insurance Company Twin City Insurance Company
Hartford Casualty Insurance Company Hartford Insurance Company of Illinois
Hartford Accident and Indemnity Company Hartford Insurance Company of the Midwest
Hartford Underwriters Insurance Company Hartford Insurance Company of the Southwest
Please address inquiries regarding Claims for all surety and fidelity products issued by The
Hartford's underwriting companies to the following:
Phone Number: 888-266-3488
Fax- Claims 860-757-5835 or 860-547-8265
E-mail claims@ 1stepsurety.com
Mailing Address The Hartford
BOND, T-4
690 Asylum Avenue
Hartford, CT 06115
Claims Inquiries Notice 2003
Obligee's/lnsured's Name
See Attached Bond
Obligee'sllnsured's Mailing Address
See Attached Bond
IMPORTANT NOTICE TO
Bond/Policy Number OBLIGEES/POLICYHOLDERS-
See Attached Bond TERRORISM RISK INSURANCE
ACT OF 2002
You are hereby notified that, under the Terrorism Risk Insurance Act of 2002, effective November
26, 2002, we must make terrorism coverage available in your bond/policy. However, the actual
coverage provided by your bond/policy for acts of terrorism, as is true for all coverages, is limited
by the terms, conditions, exclusions, limits, other provisions of your bond/policy, any
endorsements to the bond/policy and generally applicable rules of law.
Any terrorism coverage provided by this bond/policy is partially reinsured by the United States of
America under a formula established by Federal Law. Under this formula, the United States will
pay 90% of covered terrorism losses exceeding a statutorily-established deductible paid by
sureties/insurers until such time as insured losses under the program reach $100 billion. If that
occurs, Congress will determine the procedures for, and the source of, any payments for losses in
excess of $100 billion.
The premium charge that has been established for terrorism coverage under this bond/policy is
either shown on this form or elsewhere in the bond/policy. If there is no premium shown for
terrorism on this form or elsewhere in the bond/policy, there is no premium for the coverage.
I Terrorism premium: I $0
Form B-3333-0 Page 1 of 1
© 2002, The Hartford
Stale of Michigan Notmy Acknowledgement of Surety
County of Kent } ss:
On August 2, 2005 , before me, a Notary Public in and for said County and State, residing
therein, duly commissioned and swam, personally appeared Julie Mmz
known to me to be Attorney-in-Fact of Ha1iford Fire Insurance Company
instrumen~
rl1e corporation described in and that executed the within and foregoing and known to me to be the person who executed
the said instrument in behalf of the said corporation, and he duly acknowledged to me that such corporation executed the same.
lN WI1NESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year stated in d1is ceJtif;cate above.
My Commission Expires August 19,2007
--~--~------------- ~
oret
Liti) aW.i;t_d__.__a.
A. Peretti, Notary Public
:
907 7 '"AVENUE NORTH BRANDON, SO 57005-2003 (605) 582-4000
fAX (605) 582-4001
CONTRACT- Muskegon Michigan- Aerial
TJ liS AGREEMENT. made by und between Crimson Fire, Inc. Brandon, SO, first party, and
The City of Muskegon MI By its authorized representative, second party.
WITNESSETH:
First: The :mid first party hereby agrees to furnish the apparatus and equipment according to the specifications hereto
att;1chcd and m<Jdc part of this contract, and to deliver the same as hereinafter provided.
Second: "fhc first pm1y agrees rhat all material and workmanship in and about said apparatus and equipment shall
comply with ~aid specifications. fn the event there is any conflict between Customer Specifications previously
:-;ubmittcd to ('rim:;on Fire, Inc., and the specifications attached hereto, it is understood and agreed between the parties
1/1:11 the apparatus and equipment made the basis of this contract shall meet only the specifications allached hereto and
made ;t purl 1Jcrcof, as if fully and completely set out herein, and no other. This sole and exclusive warranty
acco111panying this sale is contained in the warranty attached hereto, and made a part hereof by reference, as if fully and
cnmplctcly set out herein.
Third: This contract for fire apparatus confonns with all Federal Department ofTransportation (DOT) rules and
regulations in cftCct Itt the time of contract signing, and with aU National Fire Protection Association (NFPA)
(iuidclincs fOr Automorive Fire Apparatus as published at the time of contracl signing, except as modified by Customer
Specifications. Any increased cost incurred by first party because of future changes in or additions to said DOT or
NFPA st;tndards will be passed along to the customer as an addition to lhe price set forth below.
Fourth: The said apparatus and equipment shall be ready for delivery from the first party's factory, within about 330
calcml:tr after the receipt and acceptance of this contract at the first party's office at Brandon, SD. delays due to strikes,
t:tilurc:-: to obtuin cha~sis, materials, or other causes beyond its control not prevenring, and shall be delivered to said
pat1y of the second party at The City of Muskegon Fire Department.
fiHI1: 1\ competent serviceman shall upon request, be furnished by first party to demonstrate said apparatus for second
party and to give its employees the necessary instructions in the operation and handling of said apparatus.
Sixth: The :-:ccond party hereby purchases and agrees to pay for said apparatus and equipment, the sum of Six Hundred
and Five Thousand Eight Hundred Twenty Four Dollars and no cents ($605,824.00).
In the e\'elllthc 11ppart~tus is placed in fire service prior to payment in full, the first party reserves the right to charge a
rcnto-tl fcc of Two Hundred Fifty Dollars (S 250.00) per day.
1\ny applicable taxes not specified noted above will be paid by the second party directly, or will be added to the
Purcha:-:c Price and paid by the first party. If second party claims exemption from any tax, second party agrees to
tltrnish applicable exemption certificate and save the party ham1less from any such tax, interest or penalty, which may
HI any time. is assessed against the first party.
Seventh: Acceptance of goods shall occur when the second party takes delivery. In case the second party desires to
te~t the nppamtus, such tests shall be made within JO days after arrival of the goods at destination and a written report
nf such te~ils. Forthwith delivered to the first party at its principal office at Brandon, South Dakota. If no such tests be
made. or if no such report be made by the second party within 10 days after arrival, then said apparatus and equipment
~hall be conclusively determined to be in fuJI compliance with contract specifications and conclusively determined to
he confom1ing and in accordance with the obligations under this contract. No revocation of acceptance shall take place
unless conununic<Jted to the first party within I 0 days after delivery of the goods. In the event notice of revocation of
acceptance is communicated to the first party within 10 days, the second party's right to revoke its acceptance shall be
governed by the Jmvs of the State ofMichigan.
Figl1th: Force Majeure:
The l.tltl\ractor sh;d! not be liable if rcrfonnancc failure ari.ses out of cau.scs beyond his control ;md without the faul! or
tlL"_!!)il_.!ence of the Contntctor (acts of God. war. fires. floods, freight embargoes. order of any court, or specific cause
t~:tsotwhly beyond the r:~rty's control uncJ not allributablc to its neglect or nonfeasance). ShouiJ <t pcrfommncc failure
PL"cur. i1 will be the responsibility of the Contmctor to notify the Purchaser in writing and submit proof of the
drnttnslanccs lOr nun-performnnce. Immediately fi1llowing the resolution of circumstances responsible for non-
Jl~rftlrnlancc, the ('<llltroctor must renegotiate delivery schedules.
Nttlth: It is ugtTcd th<tt the apparntus <Jnd equipment covered by this contract shall rcmnin the property of the lirst party
unlllthc em ire contr<~ct price has been paid, but if more than one piece of apparatus is covered by this contract, then
,_·,1ch piece shall remain the property of the first party until the above listed price for such piece has been paid in full,
o111d in case ofw1 default in payment the first party may take full possession of the apparatus and equipment. or of the
p1~cc (II" pieces lllHlll which default lws been made, and any payments that have been made .shall be applied as payment
h1r til.: use of the ;Jppan.ttu.; and equipment up to date taking possession.
lcn!h: This contract to be binding must be signed and approved by an officer of Crimson Fire Fire Apparatus Co., or
~omcti!\C authorized by it to do so. This contract and specifications take precedence over alI previous negotiations and
no representatives ;trc considered as entering into this contract except as are contained herein or in the specifications
.ttt:Jchcd hereto. This contract cannot be altered or modified except by mutual written agreement signed by the parties.
S~wrahility. If any part hereof is contrary to, prohibited by, or deemed invalid under applicable laws or re&'lllations,
~uch provision shall be deemed inapplicable and deemed omitted to the extent to contrary, prohibited or invalid, but
n:maindcr shnll be deemed inapplicable and deemed omitted to the extent to contrary, prohibited or invalid, but
wnaindcr shall 1101 be invalidated and shall be given effect so far as possible.
Crimson Fire, Inc.
Michael
By: Michael R Zahnen
Sa/e.t Represmtative Signature
Michael R. Zahnen
Print Name
Print Name
Jllly 13,2005 '7-~•-"s
Date Date
~ ~
~f}
(/ACCEPTED AT Brandon, South Dakota
~
By: Mw-'
R; ./ c;;imson Fire, inc. Officer Signature
Print Nmne: vx n. '~"""
Title: Du~.pf' fi.....,.....-.c
D:llc; 7[z"!J DS"
'
Bond No. 81 BCSDG9043
Supply Performance Bond
Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable
CONTRACTOR (Name and Address): SURETY (Name and Principal Place of Business):
Crimson Fire, Inc. Hartford Fire Insurance Company
907- 7'" Avenue North Hartford Plaza
Brandon, SD 57005 Hartford, CT 061 I 5
OWNER (Name and Address):
City of Muskegon
75 W. Walton
Muskegon, MI 49440
CONTRACT
Date: July 29, 2005
Amount: $605,824.00
Description (Name and Location): One Crimson Star 75 RM Aerial
BOND
Date (Not earlier than Contract Date): August 2, 2005
Amount: $605,824.00
Modifications to this Bond: K. None __See Page 3
CONTRACTOR AS PRINCIPAL SURETY
Company: Crimson Fire, Inc. (Corporate Seal) Company: Hartford Fire Insurance (Corporate Seal)
Company
Signature:
Name and Titl
fJi' 1trbfa {2
1 ~~ •
~mes 'A.BiJ1U~t:ipresident
Signature:
Name and Title: Julie Mroz, Attumey-in-Fact
(Any additional signatures appear on page 3)
(FOR INFORMATION ONLY- Name, Address and Telephone)
AGENT or BROKER: Marsh USA Inc. OWNER'S REPRESENTATIVE (Architect, Engineer or
200 Ottawa Ave. N. W.- Suite 700 other party):
Grand Rapids, MI 49503
(6!6) 233-4200
Page I
Bond No. 81BCSDG9043
I The Contractor and the Surety, jointly and severally, bind described in Paragraph 6 in excess of the Balance of the
themselves, their heirs, executors, administrators, successors Contract Price incurred by the Owner resulting from the
and assigns to the Owner for the performance of the Contract, Contractor's default; or
which is incorporated herein by reference.
4.4 Waive its right to perfo1m and complete, arrange for
2 lf the Contractor perfonns the Contract, the Surety and the completion, or obtain a new contractor and with reasonable
Contractor shall have no obligation under this bond, except to promptness under the circumstances:
participate in conferences as provided in Subparagraph 3.1.
.I After investigation, determine the amount for
3 If there is no Owner Default, the Surety's obligation under which it may be liable to the Owner and, as soon
this Bond shall arise after: as practicable after the amount is determined,
tender payment therefor to the Owner; or
3.1 The Owner has notified the Contractor and the Surety
at its address described in Paragraph I 0 below that the .2 Deny liability in whole or in part and notify the
Owner is considering declaring a Contractor Default and Owner citing reasons therefor.
has requested and attempted to arrange a conference with
the Contractor and the Surety to be held not later than 5 If the Surety does not proceed as provided in Paragraph 4
fifteen days after receipt of such notice to discuss methods with reasonable promptness, the Surety shall be deemed to be
of performing the Contract. If the Owner, the Contractor in default on this Bond fifteen days after receipt of an
and the Surety agree, the Contractor shall be allowed a additional written notice from the Owner to the Surety
reasonable time to perform the Contract, but such an demanding that the Surety perfonn its obligations under this
agreement shaH not waive the Owner's right, if any, Bond, and the Owner shall be entitled to enforce any remedy
subsequently to declare a Contractor Default; and available to the Owner. If the Surety proceeds as provided in
Subparagraph 4.4, and the Owner refuses the payment
3.2 The Owner has declared a Contractor Default and tendered or the Surety has denied liability, in whole or in part,
formally terminated the Contractor's right to complete the without further notice the Owner shall be entitled to enforce
contract. Such Contractor Default shall not be declared any remedy available to the Owner.
earlier than twenty days after the Contractor and the Surety
have received notice as provided in Subparagraph 3 .I; and 6 After the Owner has terminated the Contractor's right to
complete the Contract, and if the Surety elects to act under
3.3 The Owner has agreed to pay the Balance of the Subparagraph 4.1, 4.2, or 4.3 above, then the responsibilities
Contract Price to the Surety in accordance with tbe terms of the Surety to the Owner shall not be greater than those of
of the Contract or to a contractor selected to perform the the Contractor under the Contract, and the responsibilities of
Contract in accordance with the terms of the contract with the Owner to the Surety shall not be greater than those of the
the Owner. Owner under the Contract. To the limit of the amount of this
Bond, but subject to commitment by the Owner of the Balance
4 When the Owner has satisfied the conditions of Paragraph of the Contract Price to mitigation of costs and damages on the
3, the Surety shall promptly and at the Surety's expense take Contract, the Surety is obligated without duplication for:
one of the following actions:
6.1 The responsibilities of the Contractor for correction of
4.1 Arrange for the Contractor, with consent of the Owner, defective work and completion of the Contract;
to perfonn and complete the Contract; or
6.2 Additional legal, design professional and delay costs
4.2 Undertake to perform and complete the Contract itself, resulting from the Contractor's Default, and resulting from
through its agents or through independent contractors; or the actions or failure to act of the Surety under Paragraph
4; and
4.3 Obtain bids or negotiated proposals fi·om qualified
contractors acceptable to the Owner for a contract for
6.3 Liquidated damages, or if no liquidated damages are
performance and completion of the Contract, arrange for a specified in the Contract, actual damages caused by
contract to be prepared for execution by the Owner and the delayed perfonnance or non-perfmmance of the
contractor selected with the Owner's concurrence, to be Contractor.
secured with perfonnance and payment bonds executed by
a qualified surety equivalent to the bonds issued on the
Contract, and pay to the Owner the amount of damages as
Page 2
Bond No. 8IBCSDG9043
7 The Surety shall not be liable to the Owner or others for II When this Bond has been furnished to comply with a
obligations of the Contractor that are unrelated to the Contract, statutory or other legal requirement in the location where the
and the Balance of tlre Contract Price shall not be reduced or contract was to be fulfilled, any provision in this bond
set off on account of any such unrelated obligations. No right conflicting with said statutory or legal requirement shall be
of action shall accrue on this Bond to any person or entity deemed deleted herefrom and provisions conforming to such
other than the Owner or its heirs, executors, administrators or statutory or other legal requirement shall be deemed
successors. incorporated herein. The intent is that this Bond shall be
construed as a statutory bond and not as a common law bond.
8 The Surety hereby waives notice of any change, including
changes of time, to the Contract or to related subcontracts, 12 DEFINITIONS
purchase orders and other obligations
12.1 Balance of the Contract Price: The total amount
9 Any proceeding, legal or equitable, under this Bond may be payable by the Owner to the Contractor under the Contract
instituted in any coUJt of competent jurisdiction in the location after all proper adjustments have been made, including
in which the work or part of the work is located and shall be al1owance to the Contractor of any amounts received or to
instituted within two years after Contractor Default or within be received by the Owner in settlement of insurance or
two years after the Contractor ceased working or within two other claims for damages to which the Contractor is
years after the Surety refuses or fails to perform its obligations entitled, reduced by all valid and proper payments made to
under this bond, whichever occurs first. If the provisions of or on behalf of the Contractor under the Contract.
this Paragraph are void or prohibited by law, the minimum
period of limitation available to sureties as a defense in the 12.2 Contract: The agreement between the Owner and the
jurisdiction ofthe suit shall be applicable. Contractor identified on the signature page, including all
Contract Documents and changes thereto.
10 Notice to the Surety, the Owner or the Contractor shall be
mailed or delivered to the address shown on the signature 12.3 Contractor Default: Failure of the Contractor, which
page. has neither been remedied nor waived, to perfonn or
otherwise to comply with the terms of the Contract.
12.4 Owner Default: Failure of the Owner, which has
neither been remedied nor waived, to pay the Contractor as
required by the Contract or to perform and complete or
comply with the other terms thereof.
MODIFICATIONS TO THIS BOND ARE AS FOLLOWS:
None
(Space is provided below for additional signatures of added parties, other than those appearing on the cover page)
CONTRACTOR AS PRINCIPAL SURETY
Company: (Corporate Seal) Company (Corporate Seal)
Signature: -~N=/A'--------------- Signature: _ _ _ _ __,N.:ci"'A'---------
Name and Title: Name and Title:
Address: Address:
Page 3
u1rec;l mqumestc.."Jatms ro:
THE HARTFORD
POWER OF ATTORNEY BOND, T-4
690 ASYLUM AVENUE
HARTFORD, CONNECTICUT 06115
call: 888-266-3488 or lax: 860-757-5835
KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Code: 81-150500
~ Hartford Fire Insurance Company, a corporation duly organized under the laws of the State of Connecticut
~ Hartford Casualty Insurance Company, a corporation duly organized under the laws of the State of Indiana
~ Hartford Accident and Indemnity Company, a corporation duly organized under the laws of the State of Connecticut
CJ Hartford UndBrwrlters Insurance Company, a corporation duly organized under the laws of the Stale of Connecticut
CJ Twin City Fire Insurance Company, a corporation duly organized under the laws of the State ofTndiana
CJ Hartford Insurance Company of 111/nofs, a corporation duly organized under the laws of the State of fllinois
CJ Hartford Insurance Company of the Midwest, a corporation duly organized under the laws of the State of!ndiana
CJ Hartford Insurance Company of the Southeast, a corporation duly organized under the laws of the State of Florida
having their home office in Hartford, Connecticut, (hereinafter collectively referred to as the "Companies") do hereby make, constitute and appoint,
up to the amount of unlimited:
Drew Brach, Brian Cook, H. David 1-loov/er, Loreffa A. Pereffi, Ronda L. Peke!, James A. Dawdy, Bryan L. Formsma, Julie Mroz
of
Grand Rapids, Ml
their true and lawful Altorney(s)-in-Fact, each in their separate capacity if more than one is named above, to sign its name as surety(ies) only as
delineated above by [8J, and to execute, seal and acknowledge any and all bonds, undertakings, contracts and other written instruments in the
nature thereof, on behalf of the Companies in their business of guaranteeing the fidelily of persons, guaranteeing the performance of contracts and
executing or guaranteeing bonds and undertakings required or permitled in any actions or proceedings allowed by law.
In Witness Whereof, and as authorized by a Resolution of the Board of Directors of the Companies on July 21, 2003 the Companies
have caused these presents to be signed by its Assistant Vice President and its corporate seals to be hereto affixed, duly attested by its Assistant
Secretary. Further, pursuant to Resolution of the Board of Directors of the Companies, the Companies hereby unambiguously affirm that they are
and will be bound by any mechanically applied signatures applied to this Power of Attorney.
'
Paul A. Bergenholtz, Assistant Secretary David T. Akers, Assistant Vice President
STATE OF CONNECTICUT}
ss. Hartford
COUNlY OF HARTFORD
On this 4th day of August, 2004, before me personally came David T. Akers, to me known, who being by me duly sworn, did depose and
say: that he resides in the County of Hampjen, Commonwealth of Massachusetts; that he is the Assistant Vice President of the Companies, the
corporations described in and which executed the above instrument; that he knows the seals of the said corporations; that the seals affixed to the
said instrument are such corporate seals; that they were so affixed by authority of the Boards of Directors of said corporations and that he signed
his name thereto by like authority.
~
~
CffiTIFICATE
Scott C. Paseka
Notary Public
My Commission Expires CX!ober 31, 2007
I, the undersigned, Assistant Vice President of the Companies, DO HEREBY CERTIFY that the above and foregoing is a true and correct
copy of the Power of Attorney executed by said Corr.pan!es, which is still in full force effective as of August 2, 2005.
Signed and sealed at the City ci Hartford.
fow~(!
Gary W. Sturn per, Assistant Vice President
1>QA 2004
.TuEZ
HARTFORD
Claims Inquiries Notice
Hartford Fire Insurance Company Twin City Insurance Company
Hartford Casualty Insurance Company Hartford Insurance Company of Illinois
Hartford Accident and Indemnity Company Hartford Insurance Company of the Midwest
Hartford Underwriters Insurance Company Hartford Insurance Company of the Southwest
Please address inquiries regarding Claims for all surety and fidelity products issued by The
Hartford's underwriting companies to the following:
Phone Number: 888-266-3488
Fax -Claims 860-757-5835 or 860-547-8265
E-mail claims@ I stepsurety.com
Mailing Address The Hartford
BOND, T-4
690 Asylum A venue
Hartford, CT 06115
Claims Inquiries Notice 2003
Obligee'sllnsured's Name
See Attached Bond
Obligee 'sl/nsured's Mailing Address
See Attached Bond
IMPORTANT NOTICE TO
Bond/Policy Number OBLIGEES/POLICYHOLDERS -
See Attached Bond TERRORISM RISK INSURANCE
ACT OF 2002
You are hereby notified that, under the Terrorism Risk Insurance Act of 2002, effective November
26, 2002, we must make terrorism coverage available in your bond/policy. However, the actual
coverage provided by your bond/policy for acts of terrorism, as is true for all coverages, is limited
by the terms, conditions, exclusions, limits, other provisions of your bond/policy, any
endorsements to the bond/policy and generally applicable rules of law.
Any terrorism coverage provided by this bond/policy is partially reinsured by the United States of
America under a formula established by Federal Law. Under this formula, the United States will
pay 90% of covered terrorism losses exceeding a statutorily-established deductible paid by
sureties/insurers until such time as insured losses under the program reach $100 billion. If that
occurs, Congress will determine the procedures for, and the source of, any payments for losses in
excess of $1 00 billion.
The premium charge that has been established for terrorism coverage under this bond/policy is
either shown on this form or elsewhere in the bond/policy. If there is no premium shown for
terrorism on this form or elsewhere in the bond/policy, there is no premium for the coverage.
I Terrorism premium: I $0
Form B-3333-0 Page 1 of 1
© 2002, The Hartford
Notary Acknowledgement of Surety
State of Michigan
County of Kent } ss:
On August 2, 2005 , before me, a Notmy Public in and for said County and State, residing
therein, duly commissioned and sworn, personally appeared Julie Mroz
known to me to be Attomcy-in-Fact of Ha1iford Fire Insurance Company
the corporation described in and that executed the within and foregoing insb·umen~ and known to me to be the person who executed
the said instrument in behalf of the said corporation, and he duly acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year stated in th;s ccttificate above.
'
My Commission Expires .:_A~u:'!;gt'u~st'-'1"'9,_,2,. 0:::0cc7_ _ _ _ _ __ -#Jf--l..L'I.A-<oA-LJLf~L~----
A. Peretti, Notmy Public
Date: July 12, 2005
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Fire Truck Lease Purchase
SUMMARY OF REQUEST: One of the commitments made in the 1993 income tax
campaign was to set aside $150,000 each year to replace major fire equipment on a "pay-as-
you-go" basis. This commitment has been met each year. As of 12/31/04, there was
$470,086 held in this account with an additional $150,000 to be contributed in 2005. Public
Safety staff has determined there is serious need to replace two trucks at this lime at a total
projected cost of $1,031,390. Staff is proposing to pay cash for the less expensive truck
($425,566) and to finance the larger truck ($605,824) via an Act 99 installment purchase
contract. Staff is currently soliciting installment purchase quotes from various banks and other
lending sources. A summary of bids received will be available at the work session on July
11th.
FINANCIAL IMPACT: Quotes are being taken for two repayment terms: 7-year and 10-
year. Depending on which term is selected (and on quoted interest rates), annual
installments are estimated to be $70,000- $100,000.
BUDGET ACTION REQUIRED: None. Each year's budget includes $150,000
allocation for fire equipment replacement. Funding for the installment purchase contract will
come from this allocation.
STAFF RECOMMENDATION: To be determined.
COMMITTEE RECOMMENDATION: No committee action was taken.
City of Muskegon, Michigan
Tax Exempt Installment Purchase Agreement
Acquistion of Fire Equipment
Summary of Bids
July 6, 2005
Financial
Institution 7-year 10-year
National City Bank 3.71% 3.83%
LaSalle Bank 3.80% 4.10%
Ashford Capital Corp. 3.95% 4.177%
Fifth Third Bank 3.99% 4.39%
Comerica Bank 4.10% 4.25%
Capital Advantage Leasing 5.35% 5.45%
CITY OF MUSKE_GON
RESOLUTION# doos--& f/ (c)
RESOLUTION TO APPROVE INSTALLMENT PURCHASE AGREEMENT
REGARDING PURCHASE OF FIRE TRUCKS
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the "City")
detennines it to be necessary for the public health, safety, and welfare of the city and its residents
to acquire a pumper fire truck and a pumper fire truck with aerial ("Prope1iy") for the sum of
One Million Thirty One Thousand Three Hundred Ninety Dollars ($1,031,390.00) ("Purchase
Price"), of which the City will pay Vendor Four Hw1dred Twenty Five Thousand Five Hundred
Sixty Six Dollars ($425,566) at or prior to delivery of the trucks and promise to pay an additional
Six Hundred Five Thousand Eight Hundred Twenty Four Dollars ($605,824) ("Financed
Amount").
WHEREAS, under the provisions of Act No. 99, Public Acts of Michigan, 1933, as amended
("Act"), the City is or will be authorized to enter into any contract or agreement for the purchase
of PropCiiy to be paid for in installments over a period not to exceed 15 years and not to exceed
the useful life of the Property acquired as detennined by resolution of the City;
WHEREAS, the outstanding balance of all purchases by the City under Act 99, exclusive of
interest, shall not exceed one and one-quarter percent (I '!.%)of the taxable value of the real and
personal prope1iy in the City at the date of such contract or agreement;
WHEREAS, purchase of the Property pursuant to an installment purchase agreement will not
result in the outstanding balance of all such purchases in excess of the limitation contained
within Act 99 as set forth above;
WHEREAS, the City has requested and received proposals fi·om various financial institutions
with respect to the financing of the Prope1iy;
WHEREAS, the City has received an offer of funding for the purchase of the Property from
National City Bank of the Midwest ("Bank"); and
WHEREAS, the City Commission has reviewed a f01m ofinsta!lment Purchase Agreement
("Agreement") setting forth the tenns and provisions of the sale of the Property to the City and
the payment by the City thereof, and it is the desire of the City Commission to approve the
purchase of the Prope1iy and to approve the general tenns of the financing thereof as set forth in
the Agreement and the execution thereof, subject to the completion of negotiations with the Bank
on the timing of the sale and purchase.
NOW, THEREFORE, BE IT RESOLVED, that:
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1. The Agreement is hereby approved substantially in the fon11 attached as Appendix
A, with such additions, changes, and modifications as shall be approved by the
City Commission. The Mayor and Clerk of the City are hereby authorized and
directed to execute the Agreement, when in final fonn, and deliver it to the Bank.
2. The useful life of the Property is herebydetennined to be not Jess than ten (10)
years.
3. The Mayor and Clerk are directed and authorized to execute such additional
documentation as shall be necessary to effectuate the closing contemplated by the
Agreement.
4. The City hereby agrees to include in its budget for each year, commencing with
the present fiscal year, a sum which will be sufficient to pay the principal of and
the interest due under the Agreement during such fiscal year.
5. The City hereby designates its obligations under the Agreement as "qualified tax
exempt obligations" for purchase of deduction of interest expense by financial
institutions pursuant to the Internal Revenue Code of 1986, as amended ("Code").
6. The City covenants that, to the extent pennitted by law, it shall take all actions
within its control necessary to maintain the exclusion of the interest component of
the payments due under the Agreement from adjusted gross income for general
federal income tax purposes under the Code including, but not limited to, actions
relating to the rebate of arbitrage earnings, if applicable.
7. The acquisition of the Property and the approval ofthe Agreement hereby are
found and declared to be for a valid public purpose and in the best interest of the
health and welfare of the residents of the City.
8. All resolutions and paris of resolutions insofar as they conflict with the provisions
of this resolution are rescinded to the extent of such conflict.
Effective this /.,? 1" day of___,,J;.,""''"'"y!;r/y"----' 200_:.'-
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CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
authorized by the City Commission of the City of Muskegon, County of Muskegon,
Michigan, at a regular meeting held on r7ujy 1;2 , 200~
iLLDL~
Gail A. Kundinger, MMC
Clerk, City of Muskegon
PREPARED BY:
John C. Schrier, Esq.
Parmenter O'Toole
175 W. Apple Avenue
P.O. Box 786
Muskegon, MI 49443-0786
Phone: (231) 722-1621
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City of Muskegon
2005 Crimson Fire !PC-- I 0 year scenario
Dated']uly 26, ZOOS
National City Bid
Debt Service Schedule
Part 1 of 2
Date Principal Coupon Interest Total P+I Fiscal Total
07/26/2005
10/01/2005 4,189.44 4,189.44
12/31/2005 4,189.44
04/01/2006 49,785.00 3.830% 11,601.53 61,386.53
10/01/2006 10,648.15 10,648.15
12/31/2006 72,034.68
04/01/2007 51,921.00 3.830% 10,648.15 62,569.15
10/01/2007 9,653.86 9,653.86
12/31/2007 72,223.01
04/01/2008 54,148.00 3.830% 9,653.86 63,801.86
10/01/2008 8,616.93 8,616.93
12/31/2008 72,418.79
04/01/2009 56,471.00 3.830% 8,616.93 65,087.93
10/01/2009 7,535.51 7,535.51
12131/2009 72,623.44
04/01/2010 58,894.00 3.830% 7,535.51 66,429.51
10/01/2010 6,407.69 6,407.69
12/31/2010 72,837.20
04/01/2011 61,420.00 3.830% 6,407.69 67,827.69
10/01/2011 5,231.49 5,231.49
12/31/2011 73,059.18
04/01/2012 64,055.00 3.830% 5,231.49 69,286.49
10/01/2012 4,004.84 4,004.84
12/31/2012 73,291.33
04/01/2013 66,803.00 3.830% 4,004.84 70,807.84
10/01/2013 2,725.56 2,725.56
12/31/2013 73,533.40
04/01/2014 69,669.00 3.830% 2,725.56 72,394.56
10/01/2014 1,391.40 1,391.40
12/31/2014 73,785.96
04/01/2015 72,658.00 3.830% 1,391.40 74,049.40
12131/2015 74,049.40
Total $605,824.00 $128,221.83 $734,045.83
CnitiSOJI/Yrc 1/'C--/0 year I SJNGll:.'l'l!NltJSJ,' 1 7/ 7/2005 I 9:33AM
Robert W. Baird
Public Finance Page 1
City of Muskegon
2005 Crimson Fire IFC--1 0 year scenario
Dated']uly 26, 2005
National City Bid
Debt Service Schedule
Part 2 of 2
Yield Statistics
Bond Year Dollars ..................................................................................................................................................................................... .
Average Life............................................................................................................................................................................................ 5.526 Years
Average Coupon.......................................................................................................................................................................................... 3.8300007%
Net Interest Cost (NIC)................................................................................................................................................................................. 3.8300007%
True Interest Cost (TIC)................................................................................................................................................................................ 3.8308649%
Bond Yield for Arbitrage Purposes................................................................................................................................................................... 3.8308649%
All Inclusive Cost (AIC).............. ................................................................................................................................................................. 3.8308649%
IRS Fonn 8038
Net Interest Cost ..................................................................................................................................................................................... . 3.8300007%
Weighted Averaze Maturity.......................................................................................................................................................................... .. 5.526 Years
1..-niiiS<J/1 Fire li'C·-/0 yeur f S/NGLJ." PUJlj'OSt" I 7/ 7/2005 I 9:33 A111
Robert W. Baird
Public Finance Page2
NON-LITIGATION AND
SIGNATURE-IDENTIFICATION CERTIFICATE
STATE OF MICHIGAN
COUNTY OF MUSKEGON
We hereby certify that we are the duly elected or appointed, qualified and acting officers
of the City of Muskegon in the County and State aforesaid (the "Issuer"), as herein indicated;
that the undersigned Mayor and City Clerk did officially sign, by facsimile signature, the
Installment Purchase Agreement involving the City of Muskegon, National City Commercial
Capital and Crimson Fire, dated July 26, 2005, delivered herewith; that the undersigned Mayor
and City Clerk are on the date hereof the officers having authority to execute and deliver the
Installment Purchase Agreement; that the seal affixed below is the official seal of the Issuer; that
there is no litigation of any nature either pending or threatened for the purpose of restraining or
enjoining the issuance of the Installment Purchase Agreement or the levy and collection of taxes
sufficient to pay the interest and principal thereof, nor directly affecting the proceedings or
authority by which the Installment Purchase Agreement is issued, the legality of the purpose for
which the Installment Purchase Agreement is issued or the validity of the Installment Purchase
Agreement, and that neither the corporate existence nor the boundaries of the Issuer nor the title
of its present officers to their respective offices is being contested; that to the best of our
knowledge there is no litigation pending or threatened indirectly or collaterally affecting any of
the foregoing, and that none of the proceedings heretofore taken to authorize the Installment
Purchase Agreement and to provide security therefor have been repealed, revoked or rescinded.
Dated: July ~. 2005
TITLE
Stephen Warmington, Mayor
Gail Kundinger, City Clerk
(City's Seal)
STATE OF MICHIGAN )
) ss.
COUNTY OF MUSKEGON
On July c2/ , 2005, before me, a Notary Public in and for said County, appeared the
Mayor and the City Clerk of the City of Muskegon, County ofMuskegon, State of Michigan,
personally known to me to be the persons named herein and who executed this Certificate, and I
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INSTALLMENT PURCHASE AGREEMENT
THIS AGREEMENT, dated as of ~~ 1.~, :too 5 , by and between the CITY
OF MUSKEGON a municipal corporation~witOffice; located at 933 Terrace Street,
Muskegon, Michigan 49440, ("City"), Crimson Fire ("Vendor"), and National City Commercial
Capital, as assignee of the Vendor ("Bank"), is as follows:
1. Purchase Price. The City agrees to purchase and Vendor agrees to sell, provide
and deliver a pumper fire truck and a pumper fire truck with aerial ("Property") as set forth in the
City's Purchase Order dated 1-:tlo -o $"" ("Specifications") for the sum of One Million
Thirty One Thousand Three Hundred Ninety Dollars ($1,031,390.00) ("Purchase Price"). At or
prior to delivery of the trucks, Bank shall disburse to City Six Hundred Five Thousand Eight
Hundred Twenty Four Dollars ($605,824) ("Financed Amount"). The Financed Amount will be
payable by City to Vendor in ten (10) annual installments beginning April1, 2006, in the
amounts set for forth on the attached Exhibit A. The payments of the Financed Amount shall not
be subject to prepayment without the prior written consent of the Bank.
The City shall pay interest on the unpaid balance of the Purchase Price to the Bank, as the
assignee of this Agreement, at a rate of interest equal to 3.830% per annum from the date funds
are delivered by the Bank, as set forth in Paragraph 4, computed on the basis of a 360 day year
which interest shall be payable beginning October 1, 2005 and semi-annually thereafter through
the final date of payment of this Agreement, as set forth on Exhibit A. In the event any portion
of the interest on the outstanding balance of the Purchase Price becomes included for tax
purposes in the gross income of the Bank, then such interest rate shall be recalculated, at the
Bank's sole discretion, at a taxable level from the date of such inclusion until the outstanding
Purchase Price is paid in full.
2. Title and Useful Life. Upon delivery and acceptance by the City, title to the
Property shall vest in the City. The City agrees that the useful life of the Property is at least
equal to or longer than the date of the final payment hereunder.
3. Assignment to Bank. Except as provided in this Paragraph 3 and in Paragraph 5,
the Vendor hereby irrevocably assigns this Agreement immediately to the Bank in consideration
for a payment from Bank to the City in the amount of the Financed Amount. The City hereby
consents to said assignment, except with respect to the warranties and other obligations of the
Vendor set forth in Paragraphs 4 through 7, inclusive, of this Agreement, all of which shall,
except as provided in Paragraph 7, remain the sole responsibility of the Vendor and shall not be
assignable. With respect to the Bank, the City hereby waives any defenses based upon warranty,
failure or inability of the Vendor to perform its non-assignable obligations or the failure of the
Property to perform their intended function. The City's obligation to the Bank is absolute and
unconditional and shall remain in full force and effect until the amount of the Purchase Price
together with interest thereon shall have been paid by the City to the Bank, and such obligation
shall not be affected, modified or impaired upon the happening from time to time of any event,
including without limitation any of the following:
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(a) Any failure of title with respect to the Vendor's or the City's interest in the
Property specified herein or the invalidity, enforceability or termination of this
Agreement;
(b) The modification or amendment (whether material or otherwise) of any
obligation, covenant or agreement set forth in this Agreement;
(c) The voluntary or involuntary liquidation, dissolution, sale or other disposition of
all or substantially all of the assets, marshalling of assets and liabilities, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors or readjustment or other
similar proceedings affecting the Vendor or any of its assets or any allocation or contest
of the validity of this Agreement, or the disaffirmance of this Agreement in any such
proceeding;
(d) To the extent permitted by law, any event or action which would, in the absence
of this clause, result in release or discharge by operation of law of the Vendor from the
performance or observation of any obligation, covenant or agreement contained in this
Agreement; or
(e) The default or failure of the Vendor to fully perform any of its obligations set
forth in this Agreement.
It is expressly agreed between the Vendor, the City and the Bank, by acceptance of the
assignment of this Agreement, that the City shall make all payments of principal and/or interest
relating to the Financed Amount directly to the Bank.
The Vendor represents and warrants that the assignment to the Bank of this Agreement
does not violate any agreement, contract or loan agreement to which it is a party, and that the
Agreement has been duly executed and delivered by the Vendor.
4. Warranty. Vendor warrants its Property, as set forth in the Specifications and
pursuant to the manufacturer's warranties, and warrants its assembly of the Property. Any
warranties with respect to the Property shall not be assigned, but shall remain enforceable by the
City. The Bank makes no warranty as to the manufacture or assembly of the Property.
5. Entire Agreement. This Agreement and the documents expressly incorporated by
reference herein constitute the entire agreement of the parties. All prior or contemporaneous
agreements, understandings, representations, and statements, oral or written, are hereby
terminated.
6. Amendments. Any attempt to modify the terms of this Agreement or of any
supporting docnment shall be ineffectual unless in writing, signed by all parties necessary
pursuant to this Paragraph 7. The City agrees to secure the consent of Bank to any such
modifications, although the consent of the Vendor to the modification of any of the terms of
payment by the City to the Bank shall not be required.
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7. Security and Tax Covenant. The obligation of the City to pay principal and
interest under this Agreement is a limited tax general obligation of the City. The City shall
include in its budget and pay each year, until this Agreement is paid in full, such sum as may be
necessary each year to make all payments hereunder, when due. The City covenants that it shall
comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be
satisfied subsequent to delivery of this Agreement in order that interest thereon be (or continue to
be) excluded from gross income for federal income tax purposes. The City designates the
obligations under this Agreement as "qualified tax exempt obligations" for purpose of deduction
of interest expense by financial institutions.
8. Indemnity. To the extent permitted by law, the City covenants and agrees, at its
sole cost and expense, to indemnify, protect and save Bank harmless against and from any and
all damages, losses, liabilities, settlements, obligations, penalties, fines, claims, litigation,
demands, defenses, judgments, suits, proceedings, costs, disbursements or expenses of any kind
or of any nature whatsoever, including without limitation, attorney fees, expert fees and
disbursements, whether or not any lawsuit or administrative proceeding is commenced, which
may at any time be imposed upon, incurred by or asserted or awarded against Bank and arising
from or out of (a) the operation of the Property, damage that may occur to the Property or any
third party in connection with use of the Property, or (b) the enforcement ofthis Agreement or
the assertion of any defense to any obligations hereunder, whether any such matters arise before
or after the delivery of the Property to the City. The City's obligations to indemnify the Bank
hereunder shall exist for so long as the Purchase Price plus interest remains outstanding.
9. Legislative Authorization. This Agreement is made in accordance with and
pursuant to Act 99, Public Acts of Michigan, 1933, as amended.
[Signatures appear on next page]
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WITNESSES: CITY OF MUSKEGON
And _E~~~~~~~~~=-
Gail A. Kundinger, MMC, Clerk
Date: 1- d....l - c_s-
BANK-NATIONAL CITY
COMMERCIAL CAPITAL
By __________________________
Name: -------------------------
Its ------- - - - - - - -- - - - - -
Date:
---- - - - --------
VENDOR- CRIMSON FIRE
By __________________________
Name:
------------------------
Its - - - - ----------------------
Date:
------ -------------
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EXHIBIT A
PRINCIPAL AND INTEREST PAYMENT SCHEDULE
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CERTIFICATION
Attached is a true copy of page 4 and 5 ofthe July 12,2005, City of Muskegon City
Commission Meeting Minutes approving the purchase of two fire engines and the fire
truck lease purchase. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
933 Terrace, Muskegon, MI 49440
By ~gK~~ City Clerk
and reasonable.
FINANCIAL IMPACT:
Professional Staff %Increase Manager & Partner %Increase
Current $42.00 $50.00
2006 $43.00 2.4% $51.00 2.0%
2007 $44.00 2.3% $52.00 2.0%
2008 $45.00 2.3% $53.00 1.9%
BUDGET ACTION REQUIRED: The 2005 budget includes adequate funding for
these services. Future budgets will incorporate the proposed rates.
STAFF RECOMMENDATION: Approval of a three-year contract extension with
Hoffman, Steensma & Plamondon, PLC for accounting services.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve a
three-year contract extension with Hoffman, Steensma & Plamondon, PLC for
accounting services.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
SUMMARY OF REQUEST: Fire Department staff is requesting approval by the
Commission to allow for the procurement of two fire engines. The first engine
would be a standard front-line engine, which would be purchased. The second
would be an engine to include a 75' aerial ladder with a water delivery system
which would be leased over a period of ten years. These two engines would
replace two engines that are currently in service. The low bid, which meets all
stated specifications, was submitted by Crimson Fire, 907 7th Ave., Brandon,
South Dakota. Crimson is a subsidiary of Spartan Motors of Charlotte, Michigan.
The bid price submitted by Crimson is $1 ,031 ,390.
FINANCIAL IMPACT: Funds for this purchase and lease would originate in the
City's Public Improvement Fund. The current balance would provide for the
purchase of the first engine. Part of the future funds would provide the lease
payments for the engine/aerial.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the purchase and lease agreement.
Motion by Commissioner Spataro, second by Commissioner Davis to approve
the request to purchase two fire engines.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
C. Fire Truck lease Purchase. FINANCE
SUMMARY OF REQUEST: One of the commitments made in the 1993 income tax
campaign was to set aside $150,000 each year to replace major fire equipment
on a "pay-as-you-go" basis. This commitment has been met each year. As of
12/31/04, there was $470,086 held in this account with an additional $150,000 to
be contributed in 2005. Public Safety staff has determined there is serious need
to replace two trucks at this time at a total projected cost of $1 ,031 ,390. Staff is
proposing to pay cash for the less expensive truck ($425,566) and to finance the
larger truck ($605,824) via an Act 99 installment purchase contract. Staff is
currently soliciting installment purchase quotes from various banks and other
lending sources.
FINANCIAL IMPACT: Quotes are being taken for two repayment terms: 7-year
and 10-year. Depending on which term is selected (and on quoted interest
rates), annual installments are estimated to be $70,000- $100,000.
BUDGET ACTION REQUIRED: None. Each year's budget includes $150,000
allocation for fire equipment replacement. Funding for the installment purchase
contract will come from this allocation.
STAFF RECOMMENDATION: To be determined.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the fire truck lease purchase through National City Bank.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
D. Resolution to Acquire 280 lona. COMMUNITY AND NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution that instructs the Community
and Neighborhood Services office to obtain 280 lona from the State of
Michigan, which is currently a vacant abandoned home. The structure is
located next door to 284 lona, a recently completed infill home under the
"Operation: At Long Last" project. The department's objective is to obtain 280
lona for the minimum price of $300, rehabilitate it and sell the property to a
qualified family. The obtaining of this property and the total rehabilitation is one
additional piece to the City's continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS Office will supply $300 from the HOME program
Commercial Capital
August 2, 2005
Tim Paul
City of Muskegon
933 Terrace Street
Muskegon, Ml 49440
RE: Installment Purchase Agreement 61035000
Dear Mr. Paul:
Thank you for choosing National City Commercial Capital Corporation for your Installment
Purchase Agreement financing. We appreciate your business and welcome the opportunity to
work with you.
Enclosed for your records are two of the original three sets of Installment Purchase documents.
Also enclosed is an Invoicing Survey to insure that we have all of the information needed to
correctly prepare your invoices. Please complete and return in the envelope provided or fax to
me at 800-678-0602.
This letter is intended to serve as a confirmation and does not modify or amend our agreement.
If we can be of assistance, please call me at 614-463-6575.
~incerely,
I j .·
yC-If...<L-<--rJ.--tL-·\..L<-'f5o-;~-'cd.-C;(_
Rosemarie Konrath
National City Commercial Capital Corporation
Encl
C: IPA file
.. ~~
Two Miranova Place, Suite 1000
Columbus, Ohio 43215
INSTALLMENT PURCHASE AGREEMENT
THIS AGREEMENT, dated as of ~~ :J.t., 1 ":l.. oo5 , by and between the CITY
OF MUSKEGON a municipal corporation, with ffices located at 933 Terrace Street,
Muskegon, Michigan 49440, ("City"), Crimson Fire ("Vendor"), and National City Commercial
Capital, as assignee of the Vendor ("Bank"), is as follows:
I. Purchase Price. The City agrees to purchase and Vendor agrees to sell, provide
and deliver a pumper fire truck and a pumper fire truck with aerial ("Property") as set forth in the
City's Purchase Order dated 'J- 2.,1..- os ("Specifications") for the sum of One Million
Thirty One Thousand Three Hundred Ninety Dollars ($1,031,390.00) ("Purchase Price"). At or
prior to delivery of the trucks, Bank shall disburse to City Six Hundred Five Thousand Eight
Hundred Twenty Four Dollars ($605,824) ("Financed Amount"). The Financed Amount will be
payable by City to Vendor in ten (10) annual installments beginning April 1, 2006, in the
amounts set for forth on the attached Exhibit A. The payments of the Financed Amount shall not
be subject to prepayment without the prior written consent of the Bank.
The City shall pay interest on the unpaid balance of the Purchase Price to the Bank, as the
assignee of this Agreement, at a rate of interest equal to 3.830% per annum from the date funds
are delivered by the Bank, as set forth in Paragraph 4, computed on the basis of a 360 day year
which interest shall be payable beginning October 1, 2005 and semi-annually thereafter through
the final date of payment of this Agreement, as set forth on Exhibit A. In the event any pmtion
of the interest on the outstanding balance of the Purchase Price becomes included for tax
purposes in the gross income of the Bank, then such interest rate shall be recalculated, at the
Bank's sole discretion, at a taxable level from the date of such inclusion until the outstanding
Purchase Price is paid in full.
2. Title and Useful Life. Upon delivery and acceptance by the City, title to the
Property shall vest in the City. The City agrees that the useful life of the Property is at least
equal to or longer than the date of the final payment hereunder.
3. Assignment to Bank. Except as provided in this Paragraph 3 and in Paragraph 5,
the Vendor hereby irrevocably assigns this Agreement immediately to the Bank in consideration
for a payment from Bank to the City in the amount ofthe Financed Amount. The City hereby
consents to said assignment, except with respect to the warranties and other obligations of the
Vendor set forth in Paragraphs 4 through 7, inclusive, of this Agreement, all of which shall,
except as provided in Paragraph 7, remain the sole responsibility of the Vendor and shall not be
assignable. With respect to the Bank, the City hereby waives any defenses based upon warranty,
failure or inability of the Vendor to perform its non-assignable obligations or the failure of the
Property to perform their intended function. The City's obligation to the Bank is absolute and
unconditional and shall remain in full force and effect until the amount of the Purchase Price
together with interest thereon shall have been paid by the City to the Bank, and such obligation
shall not be affected, modified or impaired upon the happening from time to time of any event,
including without limitation any of the following:
G:\EDSIIFILES\00 I 00\1254.002\AG\CA7526.DOC
(a) Any failure of title with respect to the Vendor's or the City's interest in the
Property specified herein or the invalidity, enforceability or termination of this
Agreement;
(b) The modification or amendment (whether material or otherwise) of any
obligation, covenant or agreement set forth in this Agreement;
(c) The voluntary or involuntary liquidation, dissolution, sale or other disposition of
all or substantially all of the assets, marshalling of assets and liabilities, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors or readjustment or other
similar proceedings affecting the Vendor or any of its assets or any allocation or contest
of the validity of this Agreement, or the disaffirmance of this Agreement in any such
proceeding;
(d) To the extent permitted by law, any event or action which would, in the absence
of this clause, result in release or discharge by operation of law of the Vendor from the
performance or observation of any obligation, covenant or agreement contained in this
Agreement; or
(e) The default or failure of the Vendor to fully perform any of its obligations set
forth in this Agreement.
It is expressly agreed between the Vendor, the City and the Bank, by acceptance of the
assignment of this Agreement, that the City shall make all payments of principal and/or interest
relating to the Financed Amount directly to the Bank.
The Vendor represents and warrants that the assignment to the Bank of this Agreement
does not violate any agreement, contract or loan agreement to which it is a party, and that the
Agreement has been duly executed and delivered by the Vendor.
4. Warranty. Vendor warrants its Property, as set forth in the Specifications and
pursuant to the manufacturer's warranties, and warrants its assembly of the Property. Any
warranties with respect to the Property shall not be assigned, but shall remain enforceable by the
City. The Bank makes no warranty as to the manufacture or assembly of the Property.
5. Entire Agreement. This Agreement and the documents expressly incorporated by
reference herein constitute the entire agreement of the parties. All prior or contemporaneous
agreements, understandings, representations, and statements, oral or written, are hereby
terminated.
6. Amendments. Any attempt to modify the terms of this Agreement or of any
supporting document shall be ineffectual unless in writing, signed by all parties necessary
pursuant to this Paragraph 7. The City agrees to secure the consent of Bank to any such
modifications, although the consent of the Vendor to the modification of any of the terms of
payment by the City to the Bank shall not be required.
G:IEDSIIFILESIOOI00\1254.002\AGICA7526.DOC
7. Security and Tax Covenant. The obligation of the City to pay principal and
interest under this Agreement is a limited tax general obligation of the City. The City shall
include in its budget and pay each year, until this Agreement is paid in full, such sum as may be
necessary each year to make all payments hereunder, when due. The City covenants that it shall
comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be
satisfied subsequent to delivery of this Agreement in order that interest thereon be (or continue to
be) excluded from gross income for federal income tax purposes. The City designates the
obligations under this Agreement as "qualified tax exempt obligations" for purpose of deduction
of interest expense by financial institutions.
8. Indemnity. To the extent permitted by law, the City covenants and agrees, at its
sole cost and expense, to indemnify, protect and save Bank harmless against and from any and
all damages, losses, liabilities, settlements, obligations, penalties, fines, claims, litigation,
demands, defenses, judgments, suits, proceedings, costs, disbursements or expenses of any kind
or of any nature whatsoever, including without limitation, attorney fees, expert fees and
disbursements, whether or not any lawsuit or administrative proceeding is commenced, which
may at any time be imposed upon, incurred by or asserted or awarded against Bank and arising
from or out of(a) the operation of the Property, damage that may occur to the Property or any
third party in connection with use of the Property, or (b) the enforcement of this Agreement or
the assertion of any defense to any obligations hereunder, whether any such matters arise before
or after the delivery of the Property to the City. The City's obligations to indemnify the Bank
hereunder shall exist for so long as the Purchase Price plus interest remains outstanding.
9. Legislative Authorization. This Agreement is made .in accordance with and
pursuant to Act 99, Public Acts of Michigan, 1933, as amended.
[Signatures appear on next page]
G:\EDS~FILES\OOI00\1254.002\AG\CA7526.DOC
WITNESSES:
And~~~~~~~~~~
Gail A. Kundinger, MMC, Clerk
Date:
BANK- NATIONAL CITY
COMMERCIAL CAPITAL
By __~~~~~~~-=~~--
Nmne: --~--wu~~--L----------
Its _______._,.._....,_,.,.,"'-"------------
Date: 2 - <>-. ( - ....~
VENDOR- CRIMSON FIRE
By _________________________
Name: -------------------------
Its - - - - - - - - - - - - - - - - - - - -
Date: - - - - - - - - - - - - - - -
a,IEDSIIFILESIOOI00\1254.002\AGICA7526.DOC
WITNESSES: CITY OF MUSKEGON
By:------------
Stephen J. Warmington, Mayor
Date: ____________________
And _______________________
Gail A. Kundinger, MMC, Clerk
Date:
BANK- NATIONAL CITY
COMMERCIAL CAPITAL
By ________________________
Name:
Its ___________________________
Date:
VENDOR- CRIMSON FIRE
By d:'44~
Name: k'ck1'J bR<>wi.:R
Its , ,
Date: 7/bi/p'
C:\Documents and Settings\rsiem\Local Settings\Temporary Internet Files\OLK824\0705 fire truck ipa.doc
EXHIBIT A
PRINCIPAL AND INTEREST PAYMENT SCHEDULE
G:\EDSIIFILES\OOI00\1254.0021AGICA7526.DOC
Exhibit A
Prinicipal and Interest Payment Schedule
Pa~ment Date Pa)'ment Interest Principal
Loan 7/26/2005
1 10/1/2005 4,318.35 4,318.35 0.00
2 4/1/2006 61,386.53 11,601.53 49,785.00
3 10/1/2006 10,648.15 10,648.15 0.00
4 4/1/2007 62,569.15 10,648.15 51,921.00
5 10/1/2007 9,653.86 9,653.86 0.00
6 4/1/2008 63,801.86 9,653.86 54,148.00
7 10/1/2008 8,616.93 8,616.93 0.00
8 4/1/2009 65,087.93 8,616.93 56,471.00
9 10/1/2009 7,535.51 7,535.51 0.00
10 4/1/2010 66,429.51 7,535.51 58,894.00
11 10/1/2010 6,407.69 6,407.69 0.00
12 4/1/2011 67,827.69 6,407.69 61,420.00
13 10/1/2011 5,231.49 5,231.49 0.00
14 4/1/2012 69,286.49 5,231.49 64,055.00
15 10/1/2012 4,004.84 4,004.84 0.00
16 4/1/2013 70,807.84 4,004.84 66,803.00
17 10/1/2013 2,725.56 2,725.56 0.00
18 4/1/2014 72,394.56 2,725.56 69,669.00
19 10/1/2014 1,391.40 1,391.40 0.00
20 4/1/2015 74,049.40 1,391.40 72,658.00
Grand Totals 734,174.74 128,350.74 605,824.00
Jul 25 05 02:18p Cit~ oF MuskegonF1nance p. I
Affirmative Action
(23 1)724-6703
FAX (231)722-1214
Assessor
(23 1)724-6708
FAX (231)726-5181
Cemetery
(231 )724-6783
FAX (231)726-5617
West Michigan's Shoreline City
City Manager www.shofelinecity.com
(231 )724·6724
r"AX (231)722-1214
Civil Service
(231 )724-6716
FAX (231)724-4405
Clerk
(231)724-6705
FAX (23 I )724-4178
Ms Rose Komath
Comm. & Neigh.
Services National City Commercial Capita[
(231)724-6717 Two Miranova Place
FAX (23 I )726-2501
Suite 1000
Engineering Columbus, OH 43215
(231)724-6707
FAX (231)727-6904
Finance
(23 I )724-6713
FAX (231)724-6768
Dear Ms Konrath:
Fire Department
(231)724-6792
FAX (231 )724-6985 As discussed, a clerical misunderstanding resulted in the approving resolution (#2005-64c) for
Income Tax
installment purchase of fire trucks referring to ''National City Bank of the Midwest" instead of
(231)724-6770 "National City Commercial Capital." This letter is to clarify that the City of Muskegon understands
FAX (231)724-6768
and agrees that the funding institution is National City Commercial Capital.
Info. Tt:ehnology
(231 )724-4126
fAX (231)722-4301 Please let me know if there is anything else needed.
Inspection Services
(23 1)724-6715 Thanks you.
FAX (23 1)728-4371
Leisure Services
(231 )724-6704
FAX (231)724-1196 Very Trul~s, /J
Mayor's Office \ / ! / /
(231)724-6701
FAX (231)722-1214 rf\::-;··
Planning/Zoning
(231 )724-6702
FAX (231)724-6790
Ti~~l_-·'
Director of Finance
Police Department
(231 )724-67 50
FAX (231 )722-5140
Pubtic Works
(231)724-4100
FAX (23 1)722-4188
Treasurer
{23! )724-6720
FAX (231)724-6768
Water Billing
(231)724-6718
fAX (23 1)724-6768
Water Filtration
(231)724-4106
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. !lox 536, Muskegon, ~U 49443-0536
http://www .shorelinccitv .com
Jul 26 05 02: !Bp p.c
· ..-·.
City of Muskegon
Purchase Form
-Requested by: I Mark Kincaid I Date: 17-26-05
To be Charged to Account Number: 1404-00000-3454 (Fire Eqpt Reserve)
Balance of this Account: $470,085
For the purpose of: Two Fire Trucks
Vendor Name: Crimson Fire
Estimated Cost:
!-DJJe: I Open Monthly I Special I Stock . I One Time X
Project No: I .
Quantity Cost Description Total
1 Pumper $425,566
1 Aerial $605,824
0
0
0
0
0
0
0
0 .
0
0
/\, ./ \ 0
Total Aniov& ..'' ) $1,031,390.00
-
PO#: 1101-50336-72605 Approved: I i\(l ,.-- //
CITY OF MUSKEGON
RESOLUTION# o?oos-- 67' (c)
RESOLUTION TO APPROVE INSTALLMENT PURCHASE AGREEMENT
REGARDING PURCHASE OF FIRE TRUCKS
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the "City")
detennines it to be necessary for the public health, safety, and welfare ofthe city and its residents
to acquire a pumper fire truck and a pumper fire truck with aerial ("Property") for the sum of
One Million Thirty One Thousand Three Hundred Ninety Dollars ($1 ,031 ,390.00) ("Purchase
Price"), of which the City will pay Vendor Four Htmdred Twenty Five Thousand Five Hundred
Sixty Six Dollars ($425,566) at or prior to delivery of the trucks and promise to pay an additional
Six Hundred Five Thousand Eight Hundred Twenty Four Dollars ($605,824) ("Financed
Amount").
WHEREAS, under the provisions of Act No. 99, Public Acts of Michigan, 1933, as amended
("Act"), the City is or will be authorized to enter into any contract or agreement for the purchase
of Property to be paid for in installments over a period not to exceed 15 years and not to exceed
the useful life of the Property acquired as detennined by resolution ofthe City;
WHEREAS, the outstanding balance of all purchases by the City under Act 99, exclusive of
interest, shall not exceed one and one-quarter percent (I Y.%) of the taxable value of the real and
personal prope1iy in the City at the date of such contract or agreement;
WHEREAS, purchase of the Property pursuant to an installment purchase agreement will not
result in the outstanding balance of all such purchases in excess of the limitation contained
within Act 99 as set forth above;
WHEREAS, the City has requested and received proposals from various financial institutions
with respect to the financing of the Prope1ty;
WHEREAS, the City has received an offer of funding for the purchase of the Property from
National City Bank ofthe Midwest ("Bank"); and
WHEREAS, the City Commission has reviewed a form ofinstallment Purchase Agreement
("Agreement") setting forth the tenns and provisions of the sale of the Prope1ty to the City and
the payment by the City thereof, and it is the desire of the City Commission to approve the
purchase of the Prope1ty and to approve the general tenus of the financing thereof as set forth in
the Agreement and the execution thereof, subject to the completion of negotiations with the Bank
on the timing of the sale and purchase.
NOW, THEREFORE, BE IT RESOLVED, that:
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1. The Agreement is hereby approved substantially in the form attached as Appendix
A, with such additions, changes, and modifications as shall be approved by the
City Commission. The Mayor and Clerk of the City are hereby authorized and
directed to execute the Agreement, when in final fonn, and deliver it to the Bank.
2. The useful life of the Property is hereby determined to be not less than ten (1 0)
years.
3. The Mayor and Clerk are directed and authorized to execute such additional
documentation as shall be necessary to effectuate the closing contemplated by the
Agreement.
4. The City hereby agrees to include in its budget for each year, commencing with
the present fiscal year, a sum which will be sufficient to pay the principal of and
the interest due under the Agreement during such fiscal year.
5. The City hereby designates its obligations under the Agreement as "qualified tax
exempt obligations" for purchase of deduction of interest expense by financial
institutions pursuant to the Internal Revenue Code of 1986, as amended ("Code").
6. The City covenants that, to the extent pennitted by law, it shall take all actions
within its control necessary to maintain the exclusion of the interest component of
the payments due under the Agreement fi·om adjusted gross income for general
federal income tax purposes under the Code including, but not limited to, actions
relating to the rebate of arbitrage earnings, if applicable.
7. The acquisition of the Property and the approval of the Agreement hereby are
found and declared to be for a valid public purpose and in the best interest of the
health and welfare of the residents of the City.
8. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution are rescinded to the extent of such conflict.
Effective this /r:Z 71, day of O?tjy ,200~
CITY OF MUSKEGON
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CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
authorized by the City Commission of the City of Muskegon, County of Muskegon,
Michigan, at a regular meeting held on Cft1,1;1 /,;{ , 200~;-'
Gail A. Kundinger, MMC
Clerk, City of Muskegon
PREPARED BY:
Joh11 C. Schrier, Esq.
Pannenter O'Toole
175 W. Apple Avenue
P.O. Box 786
Muskegon, MI 49443-0786
Phone: (231) 722-1621
C:\Documents and Settings\Paul\Local Settings\Temporary lntemet Files\OfJK!O\C98646.DOC
CERTIFICATION
Attached is a true copy of page 4 and 5 of the July 12, 2005, City of Muskegon City
Commission Meeting Minutes approving the purchase of two fire engines and the fire
truck lease purchase. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
933 Terrace, Muskegon, MI 49440
Gail A. Kundinger, MM
City Clerk
and reasonable.
FINANCIAL IMPACT:
Professional Staff % Increase Manager & Partner % Increase
Current $42.00 $50.00
2006 $43.00 2.4% $51.00 2.0%
2007 $44.00 2.3% $52.00 2.0%
2008 $45.00 2.3% $53.00 1.9%
BUDGET ACTION REQUIRED: The 2005 budget includes adequate funding for
these services. Future budgets will incorporate the proposed rates.
STAFF RECOMMENDATION: Approval of a three-year contract extension with
Hoffman, Steensma & Plamondon, PLC for accounting services.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve a
three-year contract extension with Hoffman, Steensma & Plamondon, PLC for
accounting services.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
SUMMARY OF REQUEST: Fire Department staff is requesting approval by the
Commission to allow for the procurement of two fire engines. The first engine
would be a standard front-line engine, which would be purchased. The second
would be an engine to include a 75' aerial ladder with a water delivery system
which would be leased over a period of ten years. These two engines would
replace two engines that are currently in service. The low bid, which meets all
stated specifications, was submitted by Crimson Fire, 907 7th Ave., Brandon,
South Dakota. Crimson is a subsidiary of Spartan Motors of Charlotte, Michigan.
The bid price submitted by Crimson is $1 ,031 ,390.
FINANCIAL IMPACT: Funds for this purchase and lease would originate in the
City's Public Improvement Fund. The current balance would provide for the
purchase of the first engine. Part of the future funds would provide the lease
payments for the engine/aerial.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the purchase and lease agreement.
Motion by Commissioner Spataro, second by Commissioner Davis to approve
the request to purchase two fire engines.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
C. Fire Truck Lease Purchase. FINANCE
SUMMARY OF REQUEST: One of the commitments made in the 1993 income tax
campaign was to set aside $150,000 each year to replace major fire equipment
on a "pay-as-you-go" basis. This commitment has been met each year. As of
12/31/04, there was $470,086 held in this account with an additional $150,000 to
be contributed in 2005. Public Safety staff has determined there is serious need
to replace two trucks at this time at a total projected cost of $1 ,031 ,390. Staff is
proposing to pay cash for the less expensive truck {$425,566) and to finance the
larger truck {$605,824) via an Act 99 installment purchase contract. Staff is
currently soliciting installment purchase quotes from various banks and other
lending sources.
FINANCIAL IMPACT: Quotes are being taken for two repayment terms: 7-year
and 10-year. Depending on which term is selected {and on quoted interest
rates), annual installments are estimated to be $70,000- $100,000.
BUDGET ACTION REQUIRED: None. Each year's budget includes $150,000
allocation for fire equipment replacement. Funding for the installment purchase
contract will come from this allocation.
STAFF RECOMMENDATION: To be determined.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the fire truck lease purchase through National City Bank.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
D. Resolution to Acquire 280 lona. COMMUNITY AND NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution that instructs the Community
and Neighborhood Services office to obtain 280 lona from the State of
Michigan, which is currently a vacant abandoned home. The structure is
located next door to 284 lona, a recently completed infill home under the
"Operation: At Long Last" project. The department's objective is to obtain 280
lona for the minimum price of $300, rehabilitate it and sell the property to a
qualified family. The obtaining of this property and the total rehabilitation is one
additional piece to the City's continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS Office will supply $300 from the HOME program
ACT 99 CERTIFICATE
The undersigned, the duly authorized and qualified Finance Director of the City of
Muskegon, County of Muskegon, State of Michigan (the "Issuer"), in connection with the
execution by the Issuer of a certain Installment Purchase Contract (the "Contract"), by and
between the Issuer and Crimson Fire, hereby certifies as follows:
I. The outstanding balance of all purchases of lands, property or equipment for
public purposes, to be paid for in installments, including purchases made pursuant to the
Contract, exclusive of interest, is $605,824.
2. The State equalized value of the real and personal property of the Issuer as of the
date of the Contract is $756,635,300.
3. The amount set forth in paragraph I hereof does not exceed one and one-quarter
percent (1-114%) of the amount set forth in paragraph 2 hereof.
Ti
C:\Documents and Setlings\Paui\Local Settings\Temporary Internet Fi!es\OLK10\CA7977.DOC
NON-LITIGATION AND
SIGNATURE-IDENTIFICATION CERTIFICATE
·. . """ ''*.
STATE OF MICHIGAN .. · . ·· · id ~
COUNTY OF MUSKEGON
1
, , ·., .·.. .L~,,.:.:L~;;, t
We hereby certify that we are the duly elected or ak£~.!ri~p~,qu~li#'~a:_,!il~.~~l~"ftt~tJ
of the City of Muskegon in the County and State aforesaid {tfie"1'Isimer"), as herein indicated;
that the undersigned Mayor and City Clerk did officially sign, by facsimile signature, the
Installment Purchase Agreement involving the City of Muskegon, National City Commercial
Capital and Crimson Fire, dated July 26, 2005, delivered herewith; that the undersigned Mayor
and City Clerk are on the date hereof the officers having authority to execute and deliver the
Installment Purchase Agreement; that the seal affixed below is the official seal of the Issuer; that
there is no litigation of any nature either pending or threatened for the purpose of restraining or
enjoining the issuance of the Installment Purchase Agreement or the levy and collection of taxes
sufficient to pay the interest and principal thereof, nor directly affecting the proceedings or
authority by which the Installment Purchase Agreement is issued, the legality of the purpose for
which the Installment Purchase Agreement is issued or the validity of the Installment Purchase
Agreement, and that neither the corporate existence nor the boundaries of the Issuer nor the title
of its present officers to their respective offices is being contested; that to the best of our
knowledge there is no litigation pending or threatened indirectly or collaterally affecting any of
the foregoing, and that none of the proceedings heretofore taken to authorize the Installment
Purchase Agreement and to provide security therefor have been repealed, revoked or rescinded.
Dated: July 2-\ , 2005
TITLE
Stephen Wannington, Mayor
Gail Kundinger, City Clerk
(City's Seal)
STATE OF MICHIGAN )
) ss.
COUNTY OF MUSKEGON
On July .dl_, 2005, before me, a Notary Public in and for said County, appeared the
Mayor and the City Clerk of the City of Muskegon, County of Muskegon, State of Michigan,
personally known to me to be the persons named herein and who executed this Certificate, and I
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$605,824
CITY OF MUSKEGON
COUNTY OF MUSKEGON, STATE OF MICHIGAN
NON-ARBITRAGE AND TAX COMPLIANCE CERTIFICATE
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the "City"),
pursuant to the provisions of Act 99, Public Acts of Michigan, 1933, as amended, and action
taken by the City on July 12, 2005 (the "Resolution"), has authorized an Installment Purchase
Agreement dated July 26, 2005. The Installment Purchase Agreement is being delivered on the
date hereof to provide funds to pay a portion of the cost of the purchase of two fire trucks,
together with all necessary and related appurtenances and attachments therefor (the "Project")
and to pay costs incidental to the Installment Purchase Agreement.
NOW, THEREFORE, I, the undersigned, being the Treasurer of the City and being in
general charge of and one of the officers responsible for the issuance of the Installment Purchase
Agreement, do hereby certifY that I have made due inquiry with respect to and am fully informed
as to the matters set out in this Certificate, and that the following are the reasonable expectations
of the City with respect to the Installment Purchase Agreement as of the date hereof made in
good faith pursuant to Treas. Reg. § 1.148-2(b)(2):
1. The City expects to receive from the original purchaser of the Installment
Purchase Agreement on this date the sum of $605,824.
2. The total amount received by the City from the Installment Purchase Agreement,
including all investment earnings thereon, will be used for the purposes set forth above and
below and are not in excess of the amount needed for such purposes.
3. The proceeds to be derived by the City from the Installment Purchase Agreement,
i.e, the sum of $605,824 will be deposited into the 2005 Installment Purchase Agreement Fund
established pursuant to the Resolution and will be used, together with investment earnings, to
pay the costs of the Project within three years from the date hereof. Such amount may be
invested at an unrestricted yield until expended for a period of up to three (3) years from the date
hereof.
Any proceeds remaining in the Fund at the completion of the Project or the end of
three years, whichever is earlier, will not be invested at a yield in excess of the yield on the
Installment Purchase Agreement (computed with regard to yield reduction payments as provided
in Treas. Reg. §1.148-5(c)).
Costs of the Project paid from the Installment Purchase Agreement proceeds will
consist only ofland, building, improvements thereon, equipment or other items of a capital
nature and to the extent are in reimbursement for costs paid before the date hereof, will be
reimbursed in conformity with the rules in Treas. Reg. § 1.150-2.
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(a) any amounts received by the City from the original Installment Purchase
Agreement not held to pay the costs of the Project (including engineering fees,
contingencies therefor), or to pay the costs of issuing the Installment Purchase
Agreement; and
(b) any amounts accumulated in the Debt Retirement Funds, or any similar
fund for the payment of the Installment Purchase Agreement to the extent that the City
reasonably expects to use such amounts to pay principal of and interest on the Installment
Purchase Agreement, held for longer than thirteen months after the receipt thereof; and
(c) any amounts held for longer than one year after the receipt by the City as
interest, dividends or other earnings form the investment of any amount described in
subparagraphs (a), (b) and (c) of this paragraph 10.
11. The proceeds of the Installment Purchase Agreement will not replace any moneys
of the City invested at a yield in excess of the yield on the Installment Purchase Agreement,
since no funds other than those described above are pledged for, or required to be used to pay,
debt service on the Installment Purchase Agreement, and no other funds are restricted to use
solely for the purposes of paying the costs ofthe Project which will not be so used and have
taken into account in determining the size of the Installment Purchase Agreement.
12. It is not anticipated that the City, all entities which issue obligations on behalf of
the City, and subordinate governmental units thereto will issue more than $5,000,000 of
obligations, the interest on which is exempt from Federal income taxation under Section 103 of
the Internal Revenue Code of 1986, as amended (the "Code"), and which are not private activity
bonds as defined in Code§ 141 during calendar year 2005. For this purpose, tax-exempt
obligations issued for the benefit of the City by another entity are also taken into account in
determining whether the $5,000,000 limitation will be exceeded. The Installment Purchase
Agreement is not private activity bonds. Ninety-five percent (95%) or more of the net proceeds
of the Installment Purchase Agreement will be used for local governmental activities of the City.
13. The City has designated the Installment Purchase Agreement as "qualified tax-
-exempt obligations" for purposes of the deduction of interest expense by financial institutions.
It is not anticipated that the City, all entities which issue obligations on behalf of the City, and
subordinate governmental units thereto will issue more than $10,000,000 of obligations, the
interest on which is exempt from Federal income taxation under Section 103 of the Internal
Revenue Code of 1986, as amended (the "Code"), and which are not private activity bonds as
defined in Code§ 141 during calendar year 2005. For this purpose, tax-exempt obligations
issued for the benefit of the City by another entity are also taken into account in determining
whether the $10,000,000 limitation will be exceeded. The City has not issued, and it is not
anticipated that it will issue, tax-exempt obligations on behalf of any other entity, during 2005.
14. Attached hereto as Exhibit A is a Tax Certificate executed by the undersigned
detailing certain representations and compliance with certain other provisions relating to the
Installment Purchase Agreement. Execution by the City of this Non-Arbitrage and
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EXHIBIT A
TAX CERTIFICATE
The undersigned, the Treasure of the City of Muskegon, County of Muskegon, State of
Michigan (the "City"), hereby makes the certification specified below with respect to the
Installment Purchase Agreement for the purpose of enabling National City Commercial Capital,
to render its opinion that interest is excluded from gross income for Federal income tax purposes
and is exempt from State of Michigan income taxation. The proceeds of the Installment
Purchase Agreement will be used as described in the Non-Arbitrage and Tax Compliance
Certificate of the City and all definitions and terms therein are hereby incorporated by reference.
A. The undersigned, on behalf of the City, hereby certifies as of the date hereof:
(1) All the proceeds from the Installment Purchase Agreement, including
investment earnings thereon, will be expended on the Project (as defined in the Resolution)
except for accrued and capitalized interest and proceeds used for the payment of costs of entering
into the Installment Purchase Agreement which will be spent within 30 days of the date hereof,
all as described in the Non-Arbitrate and Tax Compliance Certificate.
(2) Internal Revenue Service From 8038-G is true, accurate and complete.
(3) With respect to the Installment Purchase Agreement, the City reasonably expects
that:
(a) 85% of the spendable proceeds of the issue will be used to carry out the
governmental purposes of the issue within the 3-year period beginning on the date the
Installment Purchase Agreement was executed; and
(b) Not more than 50% of the proceeds of the Installment Purchase
Agreement will be invested in nonpurpose investments having a substantially guaranteed
yield for four years or more.
(4) There were and are no other obligations sold or to be sold within 15 days of the
date of sale of the Installment Purchase Agreement which (i) were or are to be sold pursuant to a
common plan of financing and (ii) are reasonably expected to be paid from substantially the
same source of funds.
(5) Except as is permitted by Code § 149(b), the Installment Purchase Agreement is
not federally guaranteed within these provisions; specifically the payment of principal or interest
with respect to the Installment Purchase Agreement is not guaranteed in whole or in part by the
United States or any agency or instrumentality thereof; the Installment Purchase Agreement is
not issued as part of an issue and five percent (5%) or more of the proceeds of which is to be
used in making loans the payment of principal or interest with respect to which is to be
guaranteed in whole or in part by the United States or any agency or instrumentality thereof, or
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business use tests or the private loan financing test (as described in paragraph B(l) above) to be
met for the entire term of the Installment Purchase Agreement except if:
(i) the rules ofTreas. Reg.§ 1.141-12 (as such maybe clarified, modified or superseded
by Revenue Procedure, Revenue Ruling, Treasury Regulation or statute) are met as
follows: (a) the City meets the following conditions to taking remedial action described
in Treas. Reg. § 1.141-12(a)(l )-(5): (1) the City reasonably expects that the Installment
Purchase Agreement will not meet the private business tests or the private loan financing
test (as those terms are used in Code § 141) for the term of the Installment Purchase
Agreement, (2) the weighted average maturity of the Installment Purchase Agreement is
not greater than 120 percent of the average reasonably expected economic life of the
property financed with the proceeds of the Installment Purchase Agreement as of the
date hereof, (3) the terms of any arrangement that results in satisfaction of either the
private business tests or the private loan financing test are bona fide and arm's-length, and
the new user pays fair market value for the use of the financed property, (4) the City must
treat any disposition proceeds as gross proceeds for purposes of Code § 148 and (5) all
the sale or investment proceeds of the Installment Purchase Agreement must have been
expended on a governmental purpose before the date of the deliberate action (except with
respect to such deliberate actions meeting the remedial action of redemption of
Installment Purchase Agreement described in (b )(1) hereof), and (b) the City takes a
remedial action described in (1) Treas. Reg. § 1.141-12(d) (redemption or defeasance of
nonqualified bonds), (2) Treas. Reg.§ 1.141-12(e) (alternative use of disposition
proceeds), or (3) Treas. Reg.§ 1.141-12(t) (alternative use offacilities), or
(ii) the rules of Rev. Proc. 97-15 (as such may be clarified, modified or superseded by
revenue Procedure, Revenue Ruling, Treasury Regulation or statute) are met which
require that the City make a payment to the Internal Revenue Service of an amount in lieu
of taxability of the Installment Purchase Agreement pursuant to the terms of a closing
agreement, or
(iii) the City obtains a written opinion of nationally recognized bond counsel, to the effect
that any such deliberate action will not adversely affect the validity of the Installment
Purchase Agreement or any exemption from federal income taxation to which the interest
on the Installment Purchase Agreement would otherwise be entitled.
For purposes of (i) above, any redemption of the Installment Purchase Agreement within Treas.
Reg. § 1.141-12(d) must occur within 90 days of the deliberate action, or a defeasance escrow
must be established for the Installment Purchase Agreement within 90 days of the deliberate
action. In such cases, the City must provide written notice to the Internal Revenue Service as to
the establishment of such escrow within 90 days of the date the defeasance escrow is established.
A defeasance escrow is an irrevocable escrow established to pay the Installment Purchase
Agreement on their earliest call date in an amount that, together with investment earnings, is
sufficient to pay all the principal of, and interest and call premium on, Installment Purchase
Agreement from the date the escrow is established to the earliest call date, and may not be
invested in higher yielding investments or in any investment under which the obligor is a user of
the proceeds of the Installment Purchase Agreement. In addition, dispositions of personal
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PARMENTER O'TOOLE
Attorneys at Law
John M. Briggs, 111
Michael l. Rolf Scott R. Sewick
George W. Johnson 175 West Apple Avenue • P.O. Box 786 • MUskegon, Michigan 49443-0786 Jeffery A Jacobson
W. Brad Groom Dawn M. Goodwin
Eric R. Gielow Phone 231.722.1621 • Fax 231.722.7866 or231.728.2206 Nancy Ann Hornacek
Jotm C. Schrier W'MV.Parmenterlaw.com Adam G. Zuwerink
Christopher L. Kelly
linda S. Kaare Of Counsel
James R. Scheuerle
Thomas J. O'Toole
Philip M. Steffan Eric J. Fauri
William J. Meier Michael M. Knowlton
Kei!h L. McEvoy
Anna Urick Duggins George A. Parmenter, 1903-1993
Scott M. Knowlton
July 26, 2005
National City Commercial Capital Corporation
Attention: Rose Konrath
Two Miranova Place
Suite 1000
Columbus, Ohio 43215
COUNSEL OPINION (LOCAL)
Re: Installment Purchase Contract
City of Muskegon/Crimson Fire
Assignee: National City Commercial Capital
Gentlemen:
We are the City attorneys for the City of Muskegon, Muskegon County, Michigan. We have
examined the Installment Purchase Contract (the "Contract") dated July 26, 2005 between the
City of Muskegon, a municipal corporation (the "Buyer"), and Crimson Fire, (Seller) pursuant to
which the City is purchasing the property described in the Contract (the "Property").
In addition, we have examined a certified copy of a Minutes of the City Commission dated July
12, 2005 authorizing the purchase of the Property under the terms of the Contract and such other
certificates as we have deemed necessary and appropriate under the circumstances.
Based upon the foregoing examination, we are of the opinion that (1) the Contract has been duly
authorized, executed and delivered, is a valid and binding obligation of the City of Muskegon
and is enforceable against the City of Muskegon in accordance with its terms; (2) the payment
obligation of the City of Muskegon under the Contract is a limited tax general obligation of the
City of Muskegon and the City is obligated to make an appropriation of a sufficient amount of
moneys from its general fund each year to pay principal and interest due that year on the
Contract and has pledged the general fund moneys from its general fund each year to pay
principal and interest due that year on the Contract and has pledged the general fund moneys of
the City of Muskegon for the payment of the Contract, subject to applicable constitutional and
statutory tax rate limitations; (3) upon the assignment of the Contract by the Seller to the Bank,
the Bank (and any assignee of the Bank) shall have a valid and enforceable right to receive and
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collect from the City of Muskegon all of the payments of principal and interest according to the
terms of the Contract.
We are aware of the necessary certifications by the City in connection with the requirement of
the Installment contract that it is to be designated as a "qualified tax-exempt obligation" for the
purpose of deduction of interest expense by financial institutions under the provisions of the
Internal Revenue Code of 1986, as amended. These include but are not limited to the
representation that the City reasonably anticipates that the amount of "qualified tax-exempt
obligations" (other than private activity bonds as described in Section 141 of the Internal
Revenue Code of 1986, as amended) which will be issued during the current calendar year by the
Obligor and any entities which issue obligations on behalf of the Obligor, will not exceed
$10,000,000. However, it appears that tax-exempt obligations will be issued on behalf of the
Obligor during this calendar year which, when aggregated with the amount of the Contract, are
reasonably expected to exceed $8,000,000.
The undersigned is further familiar with the City's certification that it is not expected that the
proceeds of the note would be used in a manner that would cause the note to be an "arbitrage
bond", under Section 148 of the Code and the regulations prescribed thereunder.
In our opinion the City is capable of and authorized to make said certifications in support of the
qualified tax-exempt nature of the obligation represented by the Installment Purchase Contract.
However, this letter does not constitute an opinion concerning the tax-exempt status of the
obligation or the continued effect of the certifications made by the City.
We express no opinion regarding the perfection of any secmity interest or other lien created
under the Contract or the enforceability of such security interest or other lien in the absence of
such perfection.
The enforceability of the Contract may be subject to the bankruptcy, insolvency, reorganization,
moratoriUlll and other similar laws affecting creditors' rights heretofore or hereafter enacted to
the extent constitutionally applicable and its enforcement may be subject to the exercise of
judicial discretion in appropriate cases.
V~yttWyyo~
John C. Schrier
Direct: 231.722.5401
Fax: 231.728.2206
E-Mail Address: jcs@parmenterlaw.com
G:\EDSI\FILES\001 00\1254.002\LTR\CA7531.DOC
CityForm 8038· Information Return for Tax-Exempt Governmental Obligations
G .... Under Internal Revenue Code section 149(e)
OMB NO. 1545-0720
(Rev. November 2000) .... See separate Instructions
Caution: If the issue price is under $100,000, use Form 8038-GC.
11 Education___________________________________________________________________ ___________________ _
12 Health and hospital______________________________________________________________________________________________________ _
13 Transportation...........................................................................................................
14 x Public safety____________________________________________________________ -------- _________________________________ _
15 D Environment (including sewage bonds)_______________________________________________________________ ----------------
16 0 Housing _________ ·--·--------·---------------------------···---···-------------------------------------·-··-----------------
17 0 Utilities ..................................•....•...•••................. ·------··-··········--·--···------------·············
18 0
Issue price of entire issue (enter amount from line 21, column (b))...............•.. , ....... ·-,-·:·.::····· ............. .
24 Proceeds used for bond issuance costs {including underwriters' discount) .......... .
25 Proceeds used for credit enhancement _______________ ··-·······--------------------·
26 Proceeds allocated to reasonably required reserve or replacement fund ....... .
27 Proceeds used to currently refund prior issues ______________________________________ _
28 Proceeds used to advance refund prior issues_ ........................... .
Total (add line 24 through 28) ................................................................................................
I
31 Enter the remaining weighted average maturity of the bonds to be currently
32 Enter the remaining weighted average maturity of the bonds to be advance refunded·--------------------------~ f-o-~,-------'-"'_c_;=='--
33 Enter the last date on which the refunded bonds will be called ______________________________________________________ ,... L - ' - " ' - ' - - - - - - - - -
the refunded bonds N/A
35 Enter the amount of the state volume cap allocated to the issue under section 141 (b)(5) ------------------- ____ _
36a Enter the amount of gross proceeds Invested or to be Invested in a guaranteed investment contract {see instructions)
b Enter the final maturity date of the guaranteed investment contract ..... - - - - - - - - - - - - -
37 Pooled flnancings: a Proceeds of this issue that are to be used to make loans to other governmental units
b If this issue is a loan made from the proceeds of another tax-exempt issue, check box ... D
issuer ... and the date of the issue ...
38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(lll) (small issuer exception), check box ...........•...•.•............... ..._ x
39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ......................................................... ····-····· ... 0
40 If the issuer has identi a hed e, check box_ ....... ··-·-·· ............ . .................. D
Sign
Here
Date
For Paperwor Cat. No. 637735
Commission Meeting Date: July 12, 2005
Date: JulyS, 2005
To: Honorable Mayor & City Commission
from: Community and Neighborhood Services
Department
R.IE: Approval resolution to the State of Michigan
SUMMARY OF REQUEST: To approve the attached resolution that
instructs the Community and Neighborhood Services office to obtain 280
lona from the State of Michigan, which is currently a vacant abandoned
home. The structure is located next door to 284 lona, a recently
completed infill home under the "Operation: At Long Last" project.
The department's objective is to obtain 280 lona for the minimum price
of $300.00, rehabilitate it and sale the property to a qualified family. The
obtaining of this property and the total rehabilitation is one additional
piece to the City's continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS office will supply $300.00 from the HOME
program income fund.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and instruct
the CNS office to send the document to the state of Michigan
COMMITTEE RECOMMENDATION: The Commission approved this
transaction during the December 7, 2004 meeting.
2005-64(d)
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE PURCHASE OF
CURRENTLY STATE OWNED PROPERTY AT 280 IONA
WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;
WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;
WHEREAS, the City of Muskegon is dedicated to promoting homeownership
throughout its neighborhoods;
NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves the purchase of the currently state owned for $300, which is located at
280 Iona. After obtained the structure will be rehabilitated and sold to a qualified
buyer, to be used as a single family owner-occupied home.
Adopted this 12th day of July, 2005
Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
and Shepherd
Nays: None
CERTIFICATION
2005-64(d)
This resolution was adopted at a regular meeting of the City Commission, held on July
12, 2005. The meeting was properly held and noticed pursuant to the Open Meetings Act
of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
Gail A. Kundinger, MMC
City Clerk
Date: July 12, 2005
To: Honorable Mayor and City Commissioners
From: Engineering
RE: City- MDNR Memorandum of Understanding
( MOU) for Bike Trail Along Laketon
SUMMARY OF REQUEST:
Approve the attached MOU between the City & MDNR for the construction of a 10'
asphalt trail starting at Getty and moving east to the extent the available funds of
$50,000 permits. The project will use City man power for the work while the state will
pay for the material and the rental of any other equipment necessary to do the work.
It is expected that the $50,000 from MDNR will be enough to construct a bike path
between Getty & Roberts.
FINANCIAL IMPACT:
The salaries of those individuals that will be involved in the work which is estimated at
about $10,000 and the use of City owned equipment.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Approve the attached MOU
COMMITTEE RECOMMENDATION:
~~ Michigan Department of Natural Resources
DNRtl!' Forest, Mineral and Fire Management
MEMORANDUM OF UNDERSTANDING AND AGREEMENT FOR THE Grant Agreement Number:
RECREATION TRAILS PROGRAM NRT 2004-21-02
This information is required by authority of Part 711 of Act 451 of 1994, as amended to qualify for reimbursement.
Grantee:
City of Muskegon (It is expressly understood by and
Attn:
between the parties hereto that the
Bryon L. Mazade proposal bears the above Grant
Agreement Number and associated
Address
933 Terrace documents including all attachments, are
by this reference made part of this
City State ZIP Code
Muskegon, MI 49443 understanding. All materials bearing this
number constitute the entire
Federal Employer Identification Number (FEIN):
understanding between the parties.)
38-6004S22
An agreement is made between the MICHIGAN DEPARTMENT OF NATURAL RESOURCES (hereafter called the
Department; state Trails Coordinator, contracting officer) and the above grantee for funding recreation trail
surface and corridor improvements that will extend the Lakeshore Trail along Laketon Avenue
beginning at the west line of Getty Street in Section 28 TlON, R16W extending to Creston.
Reimbursement of materials and equipment rental necessary to complete trail improvement items
including paved surface improvements, site restoration, and properly designated road crossings.
Conditions: Plans and specifications are to be submitted to the Department of Natural Resources
for review and approval prior to construction.
The project period shall be from Date State Trails Coordinator signs to 09/30/200S. This understanding shall
convey a sum of money for eligible costs, but which shall not in any event exceed Fifty Thousand $so, ooo dollars.
All projects will comply with the Americans Disabilities Act of 1990.
All work must comply with State and Federal guidelines rules, regulations and laws.
Additional guidelines and specifications for agreement:
• Project Coordination: The Department contact for this project is Annamarie Bauer, Michigan Department of Natural
Resources, hereafter referred to as the Coordinator. The Grantee will confer regularly with the Coordinator on the
progress of this project.
• Payment: Where applicable, the Department agrees to reimburse the Grantee for authorized expenditures upon
verification of actual expenditures up to 90% of the grant amount. The Department will pay the final 10% upon project
completion and final audit. Total payment under this grant is not to exceed the actual costs or $so, oooo, whichever is
less. Initial request for payment shall be on the form attached (additional forms are available from the address at the
end of this agreement). All requests for payment must be submitted quarterly and received in the DNR office by the
151h of the month following the quarters end. A final request must be made by october 151h, 2oos. Requests for
payment will include copies of invoices and cancelled checks for all expenditures.
• Fiscal Control and Accounting Procedures: In addition to the summary documentation submitted to the
Department, the Grantee will keep complete financial records. Basic documents required to be maintained for audit
include purchase orders, vouchers, authorized payments, and time records for individual employees' charged to this
program. All financial records for this grant will be retained by the Grantee until audited, or for a minimum of three (3)
years, whichever is less. Records under audit will be retained until the audit is closed.
• Procurement: The grantee will use their own procurement procedures provided they reflect applicable State and
local laws and regulations, to include low bidder competition bid process as applicable.
• Prevailing Wage and Fringe Benefits: Any sub-contractor performing work under this agreement must comply with
the requirements of 1965 State of Michigan Public Act 166.
Page 1 of 2 PR 4165-1 (Rev. 09/08/2004)
• Insuranc e: The Gran tee will add the State of Michigan, Departmen t of Natural Resources as an additional insured
party on their liability insurance policy. Proof of this must be supplied to the state Trails Coordinator prior to the
Department releasing any reimbursements for this grant.
• Changes: From time to time, changes may be needed in the scope of the project and the grant. All changes must be
submitted in writing to the Coordinator and approved by the Department prior to being implemented. Changes
implemented prior to approval by the Department will not be eligible for reimbursement.
• Audits: The project and related reports are subject to aud it by the Department. This may include both financial
audits and site visits.
• Hold Harmless: Each party to this agreement will be responsible for its own negligent acts, including the acts of its
officers, agents , and employees.
• Right of Cancellation: This grant agreement may be cancelled by either party upon giving 30 days written notice to
that effect to the other party.
The individuals or officers signing on behalf of the parties to this Agreement certify by their signatures that they have read,
understand and agree to comply with this Agreement and have the authority to enter into this Agreement on behalf of the
Grantee.
COORDINATOR:
Title: ?'TATf- 'll2AiL2 CoCJYG-Q/ f'--5~
Date: f:) / 2- { () S"
GRANTEE'S REPRESENTATIVE{S):
P<intedName: ~: Title: Mayor
Signatu~ S2 ">
Date: t"] , aJ-os-
P<inted Name: Gail ~· Kundin~ Title: City Clerk
s;9 natu<e: ,iJeu::t Q ~J~ Date: '1 - J..t - <::><::)
Printed Name: _ __ _ __ _ _ __ _ _ __ _ __ Title:
Signature: - - - - - - - - - - -- - - - - - Date:
Please sign and return both copies of this sub agreement to:
ATTN: Grants COORDINATOR
Program Services Section
FOREST, MINERAL AND FIRE MANAGEMENT
MICHIGAN DEPARTMENT OF NATURAL RESOURCES
PO BOX 30452
LANSING Ml 48909-7952
(a fully executed copy will be returned for your files)
Page 2 of 2 PR 4165-1 (Rev. 09/08/2004)
Date: July 12, 2005
To: Honorable Mayor and City Commissioners
From: Gail A. Kundinger, City Clerk
RE: Fireworks Display Request for the Big Fat Greek
Festival
SUMMARY OF REQUEST: At the June 281h Commission Meeting you
approved the request from Summit Pyrotechnics for a fireworks display
permit for the Big Fat Greek Festival on July 3dh. They are now
requesting to set the fireworks off from land instead of the Barge at
Heritage Landing. Fire Marshall Metcalf will inspect the fireworks on the
day of the events.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on site plan
inspection and inspection of the fireworks.
2005-64(f)
PERMIT
FOR FIREWORKS DISPLAY
Act 358, P.A. 1968
This permit is not transferable. Possession of this permit by the herein named person will
authorize him to poss~ss, transport and display fireworks in the amounts, for the purpose, and
at the place listed below only.
TYPE OF DISPLAY: (X) PUBLIC DISPLAY ( ) AGRJCULTURAL PEST CONTROL
ISSUED TO: Steve Franklin
NAME
Summit Pyrotechnics
ADDRESS AGE
3500 S. Getty, Muskegon, MI
CJiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii-.·- '
REPRESENTING The Big Fat Greek Festival
NA>\IfE OF ORGA..'liZATION, GROUP, FIR.\1 OR CORPORATION
ADDRESS
NUMBER & TYPES OF FIREWORKS:
9 - 2.5" cakes 100 - 4" shells
30 - 6" shells 400 3" shells
30 - 5" shells 2 - 8" shells
c
DISPLAY: Heritage Landing
EXACT LOCATION
Furthest point north at Heritage Landing
CITY, VILLAGE, TOWNSHIP (rain date - DATE
TIME
-July 30, 2005 July 31. 2005) 10:25 p.m.
BOND OR INSURANCE FILED: (~ YES ( ) NO AMOUNT $1,000,000
ISSUED BY:
Issued by action of the tvUJSKEGON CITY COMMISSION
(CI)Unc il, a>mmiu iol\, - d )
of the CITY of MUSKEGON
(rwne o( ciry, villaac. cownship)
on the 12th
(II!P"&Nce It posa11on of c.ouncil. c.ommiuion or boud rc-prc:sctn.ac.ivc}
F M- 32( 12- 68) RECE1VETJ
APPLICATION
!lll FOR FIREWORKS DISPLAY PERMIT
Act 358, P.A. 1968
l DATE OF APPLICATI O~
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1. T Y PE OF DISPLAY:
~ Public Disploy D Agr i cultural Pest Control
2. APPLICANT
?jtE OF PERSON ADDRESS AGE: Mu st be 21 or over
~·f.;_: ;l?_,- Fr - ;I.-It ·) -=3. )' 21 /' ,). &~· 7/v
IF A CORPORATI OAName of President
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ADDRESS
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3. PYROTECHNIC OPERATOR
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ADDRESS AGE: Must be 21 or over
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NAM E
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EXPERIENCE : T f
N UMBER OF YEARS I NUMBER OF DISPLAYS WHERE
/.)- fJ·-of> -r 1~£
, 11.. WI. F!_ .I _£]C_ LL26( / 0fr. :ill A) /. 1 /l;z .
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NAMES OF ASSISTANTS :
NAME ADDRESS AGE
NAME ADDRESS AGE
4. NON- RESIDENT APPLICANT
NAME ADDRESS
Name of Mich i gan Attorney or Resident Agent ADDRESS TELEPHONE N UMBER
5. EXACT LOCATION O F PROPOSED DISPLAY
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DATE
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.J TIME
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NUMBE~
1
6. AND KINDS OF Fl REWORKS TO B E DISPLAYED
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MANNER & PLACE OF STORAGE PRIOR TO DISPLAY
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Tc; 5th iJu h•ur
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r~ /~'', rJ-/ S£. · I
(Subject to Appr oval of Loca l Fi re Authorities)
7, FINANCIAL RESPONSIBILITY
I A, AMOUNT OF BONO OR INSURANCE
1 to be set by municipality) $
B. BONDING CORPORATI ON OF IN SURANCE COMPANY: NAME ~ ·ADDRESS
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