City Commission Packet 09-28-2004

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      CITY OF MUSKEGON
        CITY COMMISSION MEETING
                     SEPTEMBER 28, 2004
     CITY COMMISSION CHAMBERS@ 5:30 P.M.
                                AGENDA

□   CALL TO ORDER:
□   PRAYER:
□   PLEDGE OF ALLEGIANCE:
□   ROLL CALL:
□   HONORS AND AWARDS:
□   INTRODUCTIONS/PRESENTATION:
□   CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
       B. Brownfield Site Assessment Consulting Contract -        Couture
          Environmental Strategies LLC. PLANNING & ECONOMIC DEVELOPMENT
       C. Purchase a New Wheel Loader. PUBLIC WORKS
       D. 2004-2005 Transportation Planning Program Funding. CITY MANAGER
□   PUBLIC HEARINGS:
      A. Request for Name Change on Industrial Development Certificate No.
         95-724 - Great Lakes Die Cast.        PLANNING & ECONOMIC
         DEVELOPMENT
      B. Request for Name Change on Industrial Development Certificate No.
         98-551 - Great      Lakes   Die   Cast.   PLANNING   &   ECONOMIC
         DEVELOPMENT
□   COMMUNICATIONS:
□   CITY MANAGER'S REPORT:
□   UNFINISHED BUSINESS:
□   NEW BUSINESS:
      A. Groundwater Ordinance Amendment.          PLANNING & ECONOMIC
         DEVELOPMENT
        B. Audit Contract Extension. FINANCE
        C. Proposed Waler Rate Increase. FINANCE
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 forward to the microphone.
►   State name and address.
►   Limit of 3 minutes to address the Commission.
►   (Speaker representing a group may be allowed IO minutes if previously registered with City Clerk.)
o ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT GAIL     A.
KUNDINGER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD: (231)
724-4172.
Date:      September 28, 2004
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 Special
Commission Meeting that was held on Wednesday, September 8, 2004;
the Commission Worksession that was held on Monday, September 13,
2004; and the Regular Commission Meeting that was held on Tuesday,
September 14, 2004.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
      CITY OF MUSKEGON
        CITY COMMISSION MEETING
                    SEPTEMBER 28, 2004
     CITY COMMISSION CHAMBERS@ 5:30 P.M.
                                  MINUTES
    The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, September
28, 2004.
   Mayor Warmington opened the meeting with a prayer from Commissioner
Clara Shepherd 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
Chris Carter, Kevin Davis, Stephen Gawron, Clara Shepherd, and Lawrence
Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Gail Kundinger.
2004-85 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Special Commission
Meeting that was held on Wednesday, September 8, 2004; the Commission
Worksession that was held on Monday, September 13, 2004; and the Regular
Commission Meeting that was held on Tuesday, September 14, 2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Brownfield  Site   Assessment Consulting    Contract -  Couture
         Environmental Strategies LLC. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon was awarded a Brownfield
Grant/Loan, in the amount of $1,000,000 ($500,000/grant, $500,000/loan), for the
purposes of providing funding for environmental investigations, Baseline
Environmental Assessments and Due Care Plans to facilitate redevelopment and
reuse of properties in the City. Anne Couture, of Couture Environmental
Strategies LLC, has been the City's consultant for grant administration and grant
writing for these activities. It is recommended that Ms. Couture be retained in
this capacity to continue with the grant administration during the duration of the
grant activities. Therefore, the Commission is asked to approve the proposal
from Ms. Couture and authorize the Mayor to sign.
FINANCIAL IMPACT: The budget for grant administration activities is 10% of the
total amount of the grant and loan for a total of $100,000. The cost will be
covered by the grant funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proposal between the City of
Muskegon and Couture Environmental Strategies LLC, and authorize the Mayor
to sign the proposal.
      C. Purchase a New Wheel Loader. PUBLIC WORKS
SUMMARY OF REQUEST: Approval to purchase one Case 721 D loader.
FINANCIAL IMPACT: Total cost per unit $82,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve purchase of one 721 D loader from West
Michigan Power.
      D. 2004-2005 Transportation Planning Program Funding. CITY MANAGER
SUMMARY OF REQUEST: To approve the City's share of the local matching funds
for the Muskegon County Metropolitan Planning Program for fiscal year 10/1 /04
to 9/30/05. The City receives grant funds through this program for certain major
streets.
FINANCIAL IMPACT: $16,040 from the Major Street Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve this request.
Motion by Commissioner Gawron, second by Commissioner Davis to approve
the Consent Agenda.
ROLL VOTE: Ayes: Larson,   Shepherd,    Spataro,   Warmington,    Carter,   Davis,
           Gawron
            Nays: None
MOTION PASSES
2004-86 PUBLIC HEARINGS:
     A. Request for Name Change on Industrial Development Certificate No.
        95-724 - Great Lakes Die Cast.        PLANNING & ECONOMIC
        DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 197 4, as amended, Great
Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has
requested name change on Industrial Development Certificate No. 95-724 for
property located at 701 W. Laketon Avenue, Muskegon, Michigan. The
certificate was originally granted to Dilesco Corporation in 1995, but since the
company has new owners, the name change is requested. The transfer will be
for both real and personal property. The company continues to perform the
same work as under the previous owners.
FINANCIAL IMPACT:     Certain additional income and property taxes will be
collected.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution changing the name on
the Industrial Development Certificate to Great Lakes Die Cast Corporation.
The Public Hearing opened at 5:34 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Vice Mayor Larson, second by Commissioner Carter to close the
Public Hearing at 5:36 p.m. and approve the name change on Industrial
Development Certificate No. 95-724 to Great Lakes Die Cast Corporation.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter,        Davis,   Gawron,
           Larson
            Nays: None
MOT/ONPASSES
      B. Request for Name Change on Industrial Development Certificate No.
         98-551 - Great Lakes Die Cast.         PLANNING & ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Great
Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has
requested name change on Industrial Development Certificate No. 98-551 for
property located at 701 W. Laketon Avenue, Muskegon, Michigan. The
certificate was originally granted to Dilesco Corporation in 1998, but since the
company has new owners, the name change is requested. The transfer will be
for both real and personal property. The company continues to perform the
same work as under the previous owners.
FINANCIAL IMPACT:     Certain additional income and property taxes will be
collected.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution changing the name on
the Industrial Development Certificate to Great Lakes Die Cast Corporation.
The Public Hearing opened at 5:36 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Commissioner Gawron, second by Commissioner Spataro to close the
Public Hearing at 5:39 p.m. and approve the name change on Industrial
Development Certificate No. 98-551 to Great Lakes Die Cast Corporation.
ROLL VOTE: Ayes: Spataro,    Warmington,      Carter,   Davis,   Gawron,     Larson,
           Shepherd
            Nays: None
MOT/ON PASSES
2004-87 NEW BUSINESS:
      A. Groundwater Ordinance Amendment.               PLANNING & ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: To approve an amendment to the City Groundwater
Ordinance to include properties that have been identified as "affected"
premises as defined in the Groundwater Ordinance. An "affected" premises
shall mean a parcel of property any part of which is located within an appendix
map made part of this ordinance, as originally enacted or amended, which
map shows the parcel to have contaminated groundwater under any part of
the parcel. Brunswick Corporation (owner of the parcel) and R & B Trailer
Leasing (adjacent to the parcel) have been notified by mail of the amendment
herein.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the amendment.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the amendment to the City Groundwater Ordinance.
ROLL VOTE: Ayes: Warmington,      Carter,   Davis,   Gawron,     Larson,   Shepherd,
           Spataro
            Nays: None
MOTION PASSES
      B. Audit Contract Extension. FINANCE
SUMMARY OF REQUEST: The contract for the City's annual audit is expired.
Because of the possibility that voters may approve changes to the City's fiscal
year this November, staff is recommending that the contract with the current
independent audit firm (Hoffman, Steensma & Plamondon) be extended
through 12/31 /04 and through the potential stub-year period (6/30/05 or
9/30/05). This will provide much needed continuity through a difficult transition.
Waiting to bid out audit services will have the added advantage (if the fiscal
year is changed) of attracting more competitive bids, since the current 12/31
year-end is unattractive to many CPA firms because of tax preparation season.
Typically audit contracts are awarded for a five-year period so it is sensible to
wait until we know what the future fiscal year-end will be.
FINANCIAL IMPACT: proposed cost for 12/31 /04 audit - $34,000 which is the
same as for the 12/31 /03 audit. Proposed cost for the stub-period audit -
$26,000.
BUDGET ACTION REQUIRED: none at this time. The 2005 budget incorporates
funding for the 12/31 /04 audit. If voters approve the fiscal year proposals, the
entire 2005 budget will need to be reforecast and restructured at a later date.
STAFF RECOMMENDATION: Approval of the audit contract extension to cover
the 12/31 /04 audit and the audit for the stub year, if the November ballot
proposal is approved by voters.
Motion by Commissioner Spataro, second by Commissioner Carter to extend the
contract.
ROLL VOTE: Ayes: Carter,      Davis,     Gawron,    Larson,   Shepherd,      Spataro,
           Warmington
             Nays: None
MOTION PASSES
      C. Proposed Water Rate Increase. FINANCE
SUMMARY OF REQUEST: The City is in the midst of a $16.5 million renovation of
the Water Filtration Plant. To fund these improvements, the City has borrowed
$13.9 million from the Drinking Water Revolving Fund (DWRF) and has committed
other resources to the project. It is necessary to raise water user fees significantly
in order to cover debt service requirements associated with the filtration project
and to offset rapidly rising operational costs. Staff is recommending that the
water user charge be raised from the current $ l.09 /heft to $1.40/hcft effective
January l, 2005.

FINANCIAL IMPACT: The following table shows how the rate increase will impact
typical residential households:

   Sample Users              Quarterly Water Bill        Quarterly Water Bill
                               Before Increase          Afterl/1/05 Increase

Using 7,500 gallons per         $32.70                        $42.00
month ( 1-2 person
household)
Using 15,000 gallons per      $65.40                     $84.00
month (3-4 person
household)

As shown on the survey, Muskegon's residential water rates will continue to be
below the average for Michigan communities after implementation of the
increase.

BUDGET ACTION REQUIRED: None at this time. The 2005 water fund budget
incorporates the projected revenues from the rate increase.

STAFF RECOMMENDATION:         Approval of the resolution implementing the
proposed water rate increase.

Motion by Commissioner Carter, second by Commissioner Spataro to approve
the water rate increase.

ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington,
           Carter

            Nays: None

MOTION PASSES

2004-88 ANY OTHER BUSINESS:

      A. Commissioner Shepherd requested assistance with costs associated
with attendance at the NLC Conference held in Indianapolis, Indiana from
November 30 through December 4, 2004.

Motion by Commissioner Carter, second by Mayor Warmington to give the $415
registration fee from Mayor Warmington and Commissioner Carter's travel
allocation.

ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter,
           Davis

            Nays:

MOTION PASSES

      B. Muskegon Big Red Band Parents requested that the Special Event late
fee be waived for the annual Tag Sale in October.

Motion by Vice Mayor Larson, second by Commissioner Shepherd to waive the
fee one time.
ROLL VOTE: Ayes: Larson,   Shepherd,   Spataro,   Warmington,   Carter,   Davis,
           Gawron

            Nays: None

MOTION PASSES

The City Commission Meeting adjourned at 6:24 p.m.

                                          Respectfully sub



                                          Gail A. Kundinger, MMC
                                          City Clerk
        Commission Meeting Date: September 28, 2004




Date:       September 16, 2004
To:         Honorable Mayor & City Commission
From:       Planning & Economic Development Department CJ3<-
RE:         Brownfield Site Assessment Consulting Contract-
            Anne Couture


SUMMARY OF REQUEST: The City of Muskegon was awarded a
Brownfield Grant/Loan, in the amount of $1,000,000 ($500,000/grant,
$500,000/loan), for the purposes of providing funding for environmental
investigations, Baseline Environmental Assessments and Due Care
Plans to facilitate redevelopment and reuse of properties in the City.
Anne Couture, of Couture Environmental Strategies LLC, has been the
City's consultant for grant administration and grant writing for these
activities. It is recommended that Ms. Couture be retained in this
capacity to continue with the grant administration during the duration of
the grant activities. Therefore, the Commission is asked to approve the
attached proposal from Ms. Couture and authorize the Mayor to sign.

FINANCIAL IMPACT: The budget for grant administration activities is
10°/c, of the total amount of the grant and loan for a total of $100,000.
The cost will be covered by the grant funds.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To approve the attached proposal
between the City of Muskegon and Couture Environmental Strategies
LLC, and authorize the Mayor to sign the proposal.

COMMITTEE RECOMMENDATION: None.
                                                                                                   \.-·1 ,·- :-•-, ,_ ...
                                                                                                   ,--,

                                                     2004-85(b)                                                             ,I


           Couture
  Environmental Strategies LLC                         September 13, 2004



  Ms. Cathy Brubaker-Clarke
  Director of Community and Economic Development
  City of Muskegon
  PO Box536
  Muskegon, Ml 49443-0536

  Re:       Contract for Brownfield GranULoan Administration
            Muskegon Environmental Assessment GranULoan

  Dear Cathy:

  Couture Environmental Strategies LLC is pleased to submit this contract to the City of Muskegon ("City'')
  to provide granUloan administration services for the Muskegon Environmental Assessment Grant and CM!
  Brownfield Redevelopment Loan ("Project"). Michigan Department of Environmental Quality (MDEQ)
  awarded the City a Site Assessment Fund (SAF) Grant in the amount of $500,000 and a CMI Brownfield
  Redevelopment Loan of $500,000 in September 2004. The purpose of the SAF Grant is to provide
  funding for environmental investigations, Baseline Environmental Assessments, and Due Care Plans to
  facilitate redevelopment and reuse of properties in the City, with a focus on properties located along the
  Muskegon Lake Shoreline, Seaway Industrial Park, Port City Industrial Park, Medendorp Center Industrial
  Park, and the Lakeside Area ("Project"). The CMI Brownfield Redevelopment Loan may be used to pay
  for implementation of BEA and Due Care response activities at properties in the Project area proposed for
  redevelopment. The costs of GranULoan administration activities are included as granUloan-eligible
  funding.

  Scope of Work

  The Scope of Work for the proposed services of Couture Environmental Strategies LLC includes the
  following:

  1. Develop Project operational procedures, and facilitate overall Project coordination.

  2.    Provide assistance to the City in complying with the terms and conditions of the Brownfield
        Grant and Loan Agreements.

  3.    Work with the City to identify and evaluate potential redevelopment projects that would be
        enhanced and facilitated through utilization of Brownfield Grants and/or Loans.

  4.    Obtain work plan and budget approval from MDEQ prior to Project consultants/contractors
        undertaking any grant-eligible tasks.

  5.    Review and comment on all draft work plans and budgets, reports, change orders, bid documents,
        and other documents prepared by the Project consultants/contractors. Track consultanUcontractors
        expenditures to assure consistency with MDEQ-approved budgets and work plans.

  6.    Coordinate activities and communication among the City, MDEQ, Project consultants/contractors,
        property owners, prospective purchasers, developers, and other parties who may be involved in the
        Project.

1451 Shoal Aven11e, Richland, Michigan 49083 (269) 629-9842 FAX (269) 629-7011   E-Mail: co11t11re(iijjasnetworks.net
       Ms. Cathy-Brubaker-Clarke                        -2-                                          9/13/04




  7.     Prepare Project deliverables for submittal to MDEQ per terms of the granl/loan agreement. This
         will include preparation of quarterly progress reports, reimbursement requests, and a final report.

  8.     Review Project consultanl/contractor invoices; prepare reimbursement requests on behalf of the
         City for submittal to MDEQ. Sign reimbursement request forms on behalf of the City. Provide
         review and comment on any proposed contracts with contractors/consultants for grant-funded
         activities related to the Project.

  9.     Provide assistance to the City in development and execution of any proposed amendments to the
         MDEQ Grant Agreement as necessary to implement Project goals.

  10. Keep the City apprised of grant project progress, and assure grant administration activities are
      conducted in a manner that represents the best interests of the City.


  BUDGET

  The services of Couture Environmental Strategies LLC will be billed to the City on an hourly basis,
  currently $150/hour. Time will be billed based on actual hours worked and direct costs incurred. All grant
  administration activities will be conducted in compliance with an MDEQ-approved work plan and budget,
  pursuant to the terms of the Brownfield Redevelopment Grant and Loan Agreements, and therefore will be
  reimbursable from the Grant or Loan. The Grant and Loan Agreements between the Michigan Department
  of Environmental Quality and the City of Muskegon allocate $50,000 each for Grant and Loan
  Administration, or 10% of the total amount of the grant and loan for a total of $100,000

  Agreement

  Attached to the letter are Provisions for Representation by Couture Environmental Strategies LLC
  ("Provisions"). This letter and the attached Provisions constitute a contractual agreement for
  services. If these terms and conditions are acceptable, I would appreciate your acknowledging
  acceptance of them by signing and returning the enclosed copy of this letter. Please don't hesitate to
  call if you have any questions.

  Sincerely,
           ..,.-, -·~    /J
    Cz / /              ~          -~ v
  Anne P. Couture
  Couture Environmental Strategies LLC




                                                                          Date




  Attachment




1451 Shoal Avenue, Richland, Michigan 49083 (269) 629-9842 FAX (269) 629-701 1 E-Mail: co11111re@jas11etworkf.ne1
       Ms. Cathy-Brubaker-Clarke                            -3-                                          9/13/04




                                     PROVISIONS FOR REPRESENTATION BY
                                   COUTURE ENVIRONMENTAL STRATEGIES LLC


       Except as modified by an engagement letter, the following provisions will apply to the relationship
       between Couture Environmental Strategies LLC and each of its clients:

1.     Fees for services rendered will be based on the reasonable value of those services. Fees will be
       based primarily on standard hourly billing rates and the numbers of hours worked. Couture
       Environmental Strategies LLC will adjust billing rates from time to time.

2.     Time for which a client will be charged will include, among other things, telephone and office
       conferences with the client, consultants, regulators, public officials, and others; investigations; research;
       report preparation; document review and comment; drafting of letters, memoranda and other
       documents; and travel time.

3.     In addition to fees, costs and expenses incurred in performing services will be billed, including
       photocopying, postage, travel (mileage, meals, lodging), faxes, and other similar costs and expenses.
       All costs billed will be consistent with approved State of Michigan rates.

4.     Although fees or costs are estimated, these estimates are subject to unforeseen circumstances and are
       by their nature inexact. CES LLC will not be bound by any estimates except to the extent expressly set
       forth in the engagement letter.

5.     Fees and expenses will be billed monthly.

6.     A client shall have the right to terminate our services and representation upon written notice. Such
       termination, however, will not relieve the client of the obligation to pay for all services rendered and
       costs or expenses paid or incurred on behalf of the client prior to termination.




     1451 Shoal Avenue, Richland, Michigan 49083 (269) 629-9842 FAX (269) 629-701 I   E-Mail: cout11re@jasnetworks.net
Date:      09/21/04
To:        Honorable Mayor and City Commission
From:      DPW
RE:        Purchase a new wheel Loader




SUMMARY OF REQUEST: Approval to purchase one Case 721 D loader.



FINANCIAL IMPACT: Total cost per unit $82,000



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approve purchase of one 721D loader from
West Michigan Power.
Memorandmn
To:   Honorable Mayor and Commissioners
From:DPW
Date: 9/22/2004
Re:   Wheel Loader Replacement



   The Equipment Division has budgeted for the replacement of one
wheel loader in 2004. The loader we are replacing is 10 years old and
has 4100 hours on it.

   We solicited bids from the top four manufacturers for a 3.5 cubic
yard loader. They are Michigan Caterpillar, Contractors Machinery, IDE
Equipment, and West Michigan Power. (See attachment)

    We had the opportunity to evaluate each of the loaders for a few days
at the DPW and we find that any of the loaders would meet our needs.
We currently have four Case loaders and have been very satisfied with
their performance and reliability. (They are also low bid)

  In accordance with established purchasing policy, I am requesting
that we purchase one Case 721D from West Michigan Power.




                                                                            1
                          LOADER
                                                                                    !




                                  Model                 Cost            Trade              Net
                                             I
1vlicmgan l;aterpiller                           !

                                                 I
7700 Caterpillar Ct.           Cat 938 GIi           $125,770.00       $28,000.00 \ $97,770.00
Grand Rapids Mi 49548

Contractors Machinery
8840 Byron Commerce Dr.        Volvo L90E            $122,635.00       $34,000.00       $.88,635.00
Byron Center Mi. 49315
                                                                   I


West Michigan Power
3651 M-20                  !
                               Case721D              $129,000.00       $47,000.00       $82,000.00
New Era Mi 49446

JDE Equipment
5770 Clyde Park                 Deere 624J           $121,833.00 : $32,000.00           $89,833.00
Grand Rapids Mi. 49509
                                                                                                      !
                                             i
                                             I
                                AGENDA ITEM NO. _ _ _ __

                           CITY COMMISSION MEETING _ _,,9,_,./2..,.8/"'014 _


TO:          Honorable Mayor and City Commissioners

FROM:        Bryon L. Mazade, City Manager

             September 22, 2004

             2004-2005 Transportation Planning Program Funding



SUMMARY OF REQUEST:

To approve the City's share of the local matching funds for the Muskegon County Metropolitan
Planning Program for fiscal year 10/1/04 to 9/30/05. The City receives grant funds through this
program for certain major streets.



FINANCIAL IMPACT:

$16,040 from the Major Street Fund.



BUDGET ACTION REQUIRED:

None.



STAFF RECOMMENDATION:

To approve this request.



COMMITTEE RECOMMENDATION:

None.




JMS- 0: (2005-TRANSPLAN)
O:COMMON\DEPTMENT\ADMIN\AGNDAFRM
                                                                         INVOICE
                                       WEST MICHIGAN SHORELINE
                                   REGIONAL DEVELOPMENT COMMISSION
                316 MORRIS AVE., #34 □                         •
                                       P.O. BOX 387 • MUSKEGON, Ml 4944 □ - □ 387
                          PHONE (231) 722·787B • FAX (231) 722-9362
                                                            WEBSITE · WWW.WMSRDC.ORC3
    SOLD TO                                                                        SHIPPED TO
       !City of Muskegon                                                    7
         ATTN: Byron Mazade, Manager
         PO Box 536

       L Muskegon,                 MI       49443
                                                                            __J
                                                                                     F.O.B.        TERMS                                INVOICE NO.




                                                                                                                       ----
                                                                                                                       I                     0041s6_

                            City ofMuskegon'sshare of the Fiscal Year 2005Transportation
                            Planning Program.                                                                                                        $16,040.00




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                           CR: 6349.0349.1 $13,910.00              6349.0349.3 $2,130.00

Reorder Item #NVR73 Please Call Toll Free: 1-800-527-9530                                                                               OR1GINAL
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West Michigan Metropolitan Transportation Planning Program
                        (WestPlan)                        ~
                              Dues Structure                                                              (<':
                                  FY 2005                            C\                       tf'                 ()
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                              Muskeaon Countv                               . ,.,. . , c;..          ,J,              /
                                    Dues                      Populatioh;~t:.._ ·
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  City of Muskeaon                       $16,040.00             40,105                \. . (.\I_
                                                                                         i\. 0                <;b,
                                                                                                                  ~
                                                                                                                           <''0
  Muskeaon Heiohts                        $4,820.00             12,049                        \J'...... "''


  Roosevelt Park                          $1,560.00              3,890                             -~
  Norton Shores                           $9,010.00             22,527                                        '
  North Muskeaon                          $1,620.00              4,031
  Village of Fruitport                      $500.00              1,124
  *MCRC                                  $22,180.00             55,446
  Sub Total                              $55,730.00

                                Ottawa Countv
                                     Dues                    Population
  Citv of Grand Haven                    $4,470.00              11,168
  City of Ferrysburg                     $1,220.00               3,040
  Villaae of Sarina Lake                 $1,010.00               2,514
  *OCRC FAUB                            $13,310.00              33,274
  **Ottawa Countv                       $20,000.00              49,996
  Sub Total                             $40,010.00
         .



                               Transit Aaencies
                                      Dues
  Harbor Transit                          $1098.00
  Muskegon Area Transit                   $5,000.00
  Svstem
  Sub Total                               $6,098.00
  TOTAL                                $101,838.00

  1 Dues calculated based on $.40 per capita using 2000 Census
  2 Village of Fruitport assessed flat fee of $500.00
  3 MATS and Harbor Transit are at an 82/18 split, respectively, for a total of
    $6,098.00. This breakdown is a result of the breakdown of FTA eligibility
  4 The total population of any complete township that has any part of it
     jurisdictional lines included within the census defined urban boundary is
     used to compute the dues for Road Commissions.

    *Townships included:
        Muskegon County: Sullivan, Egelston, Dalton, Fruitport (minus village
       population), Laketon and Muskegon.
        Ottawa County: Grand Haven, Robinson, Crockery and Spring Lake.
    **Currently not a member.

    Local Governments in the Muskegon/Grand Haven area are expected
    to receive $10 to $15 million annually in federal transportation funds
    through the West Michigan Shoreline Regional Development
    Commission's MPO Program.
              Commission Meeting Date: September 28, 2004

Date:         September 14, 2004
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development              ci!x...,
RE:           Public Hearing - Request for Name Change on Industrial
              Development Certificate No. 95-724 - Great Lakes Die Cast


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, Great Lakes Die Cast Corporation,
701 W. Laketon Avenue, Muskegon, Michigan, has requested name change on
Industrial Development Certificate No. 95-724 for property located at 701 W. Laketon
Avenue, Muskegon, Michigan. The certificate was originally granted to Dilesco
Corporation in 1995, but since the company has new owners, the name change is
requested. The transfer will be for both real and personal property. The company
continues to perform the same work as under the previous owners.

FINANCIAL IMPACT:

Certain additional income and property taxes will be collected.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution changing the name on the Industrial Development
Certificate to Great Lakes Die Cast Corporation.

COMMITTEE RECOMMENDATION:

None




9/14/2004
                                                                                                                                                             cc       /tss- :
 Application Number                                                                               Cate Received by STC



APPLICANT INFORMATION
All boxes must be completed.
 1a. Company Name (Applicant must be the occupanVoperator of the facllily)                        1b. Standard Industrial Classificatron (SIC) Code - Sec. 2(10) (Four Digit Code)
   Great Lakes Die Cast Coruoration                                                                 3361
 1c. Location of Facility (Street, City, State, ZIP Code)                                          ,u. Name 01 M1ty11ownsnip,vulage             1e. County
                                                                                                  (lndicate:khich)
   701      w.     Laketon Ave. , Muskegon, MI 49441                                                Mus egon                                    Muskegon

   §
 2. Type of Approval Requested
         New (Sec. 2(4))
         Speculative Building (Sec. 3(8))
                                                            ~ Transfer (1     copy lo only)
                                                                                                  3a. School Cistrict where facility is located 3b. School Code
                                                                                                    Muskegon                                    61010
                                                                 Rehabilitation (Sec. 3(1)) 4. Amount of years requested for exemption (1-12 Years)
         Research and Development (Sec. 2(9))                                                       12
 5. Thorough% describe the project for which exemplion is sought Real Pr~erty (Type of lmftrovements to land, Buildlni, Size of Addition); Personal Property (Explain New,
 Used. Trans rred from 0uI-0f-State, etc.) and Proposed Use of Facility. ( lease allach add tlonal page(s) if more room Is needed).
   Building and equipment expansion resulting from the addition of a new wing to the
   ¢':il:isting plant building and the purchase and installation of machinery and
   equipment.


 6a. Cost of land and building improvements (excluding cost of land)                                                                            i     487,900.00
       • Attach list of Improvements and associated costs.                                                                                       Real Property Costs
       • Also attach a copy or building permit ff project has already begun.
 6b. Cost of machinery, equipment. furniture and fixtures                                                                                       $1,672,100.00
       • Attach itemized listing with month, day and year of beginning of installation plus total costs                                          Personal Property Costs

 6c. Total Project Costs                                                                                                                        i2,160,ooo.oo
                                                                                                                                                Total of Real & Personal Costs

7. Indicate the time schedule for start and finish of construction and equipment insta!lalion. Projects mus! be comple!ed within a two year period of lhe effective date of !he
certificate unless otherwise approved by lhe STC.

                                                       B~gin Date {M/DIY}                        End Date (M/D/Yl

  Real Property Improvements                           10/1/94                                  10/1/95 {Approx.)                      Downed       ~Leased

  Personal Property Improvements                       10[1[94                                  10lll95                                ~Owned       OLeased


8. Are State Education Taxes reduced or abaled by the Michigan Economic Development Corporation (MEDC)? If yes, applicant must attach a signed MEOC Letter of
Commiltment to receive !his exemplion.
                                             Yes
                                                O            No
                                                                  Ii]
                                                                  x
9. Number of existing jobs at this facility lhal will be retained as a result oflhfs project.   r10.. Number of ~ew jobs at !his facility expected to be created wilhin two years of
                                    140                                                          PtoJetl comp1el1on.
                                                                                                                            40
11. Hehabi italion apphcahons only: (.;omplete a,.o and c 01 th!s secIIon. You must attach lhe assessor's statement 01 valualion for the entire plant rehabilitation dislrict. The
SEV dala below must be as of Cecember 31 of the year prior to the rehabilitation.

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

 'l:a. Check the type of District lhe facility is localed In:

                 ~     Industrial Development District                  0     Plant Rehabilitation District

12b. Date district was established by local government unit                                     112~   Is this appl;caUon to, a speculaU,e bumd;ng (Sec. 3(8))?
 (Not:      known bv oreoarer)                                                                             0     Yes       I!:}   No
 Form 1012, Page 2

 APPLICANT CERTIFICATION
 The undersigned, authorized officer of the compijny making this application certifies that. to the best of his/her knowledge, no information contained
 herein or in lhe atlachmenls hereto is false in any way and that all are truly descriptive of the industrial property for which this application is being
 submitted.

 II is further certified that the undersigned is familiar wilh the provisions of P.A. 198 of 1974, as amended, being Seclions 207 .551 to 207 .572, inclusive,
 of lhe Michigan Compiled Laws: and to the best of his/her knowledge and belief, (s)he has complied or will be able to comply with all of the
 requirements !hereof which are prerequisite to the approval of the application by the local unit of government and the issuance of an Industrial Facilities
 Exemption Certificate by the State Tax Commission.
  13a. Preparer Name                             13b. Phone Number                       13c. Fax Number
   Con J. Nolan                                       231    728-8813                        231         726-2205                                   ldiecast.com
  14a. Name of Contact Person                    14b. Phone Number                       14c. Fax Number                              14d. E-mail Address
   Same as above                                      Same as above                       Same as above                                 Same as above


                                                 orized Agents)                                                                      15c, Date

  15d. Mailing Ad,dress (St_?iet, Clly, State, ZIP)                                                                                  1Sf. E-mail AddreS&
   701 W. Lake'ton Ave.                          Muske on           MI                                  728-8813                     cnolan@ldiecast.com
 LOCAL GOVERNMENT ACTION & CERTIFICATION
 This section must be completed by the clerk of the local governing unit before submitting application to the Slate Tax Commission. Check Items on file
 at the Local Unit and those included with the submittal.

 16. Action taken by local government unit                                              16b. The Stale Tax Commission Requires the following documents be filed for an
                                                                                        administralively complele application:
      D Abatement Approved for _______ Years {1-12)                                       Indicate N/A 11 Nol Applicable
                                      D Yes D No
                                                                                          ~


               After Completion                                                                  1. Original App/lcallon plus attachments, and one complete copy
                                                                                          '-----
                                                                                                 2, Resolution establishing district
      0     Denied -(Include Resolution Denying)                                          ~


                                                                                          ~
                                                                                                 3. Resoluticin approVing/denylng application.

 16a. Documents Required lo be on file with the local Unit
                                                                                                 4. Letter of Agreement (Signed by local unit and applicant}
                                                                                          '-----
   Indicate N/A if Not Applicable                                                         ~
                                                                                                 5. Affidavil of Fees (Signed by local unit and applicanl)

    ~ 2.' -•.       •• ,_., '""' •M.., •~"''"" o °'"'"
          Notice to taxing aulhorilies of opportunity for a hearing.
                                                                                          ~
                                                                                                   6. Building Permil for real improvements if project has already begun
                                                                                                   7. EQuipment List with dates of beginning of inslallalion
                                                                                          >-
         3. List of taxing authorities notified for dislricl and application action.               8. Form 3222 (~ applicable)
                                                                                          '-----
         4. Lease Agreement showing applicants lax liability.                             ~
                                                                                                   9, Speculative building resolution and affidavits (if applicable)

 17. Name of local Government Body                                                      HI. Dale of Resolulion Approving/Denying !his Application


Attached herelo is an original and one copy of the application and all documents lisled in 16b. I also certify lhat all documents li5led in 16a
are on file at lhe local unit for inspection at any time.

                                                             19b. Name of Clerk                                       19c. E-mall Address
                                                                  Git1i/ A- /(un,lin er                                  ,;ii, l(w,di,v.er €2, /1"""1-m«n• t>r
                                                             19e. Phone Number                                        19f. Fax Number
                                                                   ,231) 7:)'/-C,70.S-                                  (.2 31) 7.2'/- 'II lJ"
Stale Tax Commission Rule Number 57: Complete applications approved by the local unil and received by the State Tax Commission by October 31
each year will be acted upon by December 31. Applications received after Oclober 31 may be acted upon in the following year.

Local Unit: Mail one original and one copy of the completed application and all required allachments lo:
State Tax Commission
Michigan Department of Treasury
P.O. Box 30471                                                      *
                                                              Information contained in this application
Lansing, Ml 48909,7971                                       and supporting documentation may be
                                                                         subject to review by the public if a
                                                                         Freedom of Information request is filed.


                                                                            STC USE ONLY
LUCI Code                                     Begin Date                               End Date                                   End Oale2
                               Resolution No. 2004-86(a)

                          MUSKEGON CITY COMMISSION

                 RESOLUTION APPROVING REQUEST
    FOR A NAME CHANGE FOR INDUSTRIAL DEVELOPMENT CERTIFICATE
                            NO. 95-724
                         Great Lakes Die Cast Corporation

WHEREAS, pursuant to Act No. 198 of the Public Acts of 1974, as amended, the City
of Muskegon has the authority to authorize a name change to an "Industrial
Development Certificate" within the City of Muskegon; and

WHEREAS, Dilesco Corporation, the previous applicant for the certificate, has sold it's
operations to Great Lakes Die Cast Corporation; and

WHEREAS, Great Lake Die Cast Corporation, 701 W. Laketon Avenue, Muskegon,
Michigan, has requested the City of Muskegon to change the name on Industrial
Development Certificate No. 95-724 for real and personal property located at 701 W.
Laketon Avenue, Muskegon, hereinafter described; and

WHEREAS, Great Lakes Die Cast Corporation presently owns a production facility
within the Industrial Development District; and

WHEREAS, written notice has been given by mail to all owners of real property located
within the district, and to the public by newspaper advertisement in the Muskegon
Chronicle and public posting of the hearing on the proposed change on the certificate;
and

WHEREAS, before acting on said request the Muskegon City Commission held a
public hearing on September 28, 2004, at the Muskegon City Hall in Muskegon,
Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives
of the affected taxing units were afforded an opportunity to be heard on said
application.

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

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

       2.      The application of Great Lakes Die Cast, for the name change of an
               Industrial Facilities Tax Exemption Certificate is with respect to real and
               personal property for the following described parcel situated within the
               City of Muskegon to wit:

                                   See Attachment A

       3.      The name on the Industrial Facilities Exemption Certificate is changed
               and shall remain in force and effect for the remaining period of the
               original certificate, which took effect October 24, 1995, and was issued
               for twelve (12) years.

Adopted this 28th day of September, 2004.

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

Nays: None

Absent: None




                                            Attest:   ~   ~~&:...--1....:~ ~ ~ ~ ~ ! . . . . . . . . .-
                                                      Gail Kundinger
                                                      Clerk, MMC




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 September 28, 200~.           J
                                                 W-- ~ k ~
                                                      Gail Kundinger               (]
                                                      Clerk, MMC
                                  ATTACHMENT A


Parcel 1: Lots 2-11 inclusive and North½ of vacated Erie Street adjacent ot Lots 8-11,
Block 1 Glencoe Addition.

Parcel 2: Lots I, 2 and 3 of Block 6 and the South½ of vacated Erie Street adjacent to
Lot I, Glencoe Addition.

Parcel 3: Lots 6-11 inclusive and South½ of vacated Erie Street adjacent thereto, Block
6 and North ½ of vacated alley adjacent to said lots, Glencoe Addition.

Parcel 4: Lots 4 & 5 ofBlock 6, and North½ of vacated alley adjacent to Lot 5, Glencoe
Addition.

Parcel 5: Lots 17 & 18 and North ½ of Duncan Avenue which has been vacated adjacent
thereto, Block 6 and also the South½ of vacant alley adjacent thereto, Glencoe Addition.

Parcel 6: Lots 12-16 inclusive and North½ of Duncan Avenue which has been vacated
adjacent thereto, Block 6, and the South½ of vacated alley adjacent to Lots 14-16
inclusive and vacated alley adjacent to Lots 12-14 inclusive, Glencoe Addition.
                                  CITY OF MUSKEGON

                          CONTRACT FOR TAX ABATEMENT
                              Act 198 Public Acts of 1974


       AGREEMENT between CITY OF MUSKEGON, a municipal corporation of933
Terrace Street, Muskegon, Michigan 49441, ("City") and Great Lakes Die Cast
("Company").

                                           Recitals:

A.      The Company has applied to City for the establishment of an industrial
development district or industrial rehabilitation district pursuant to the provisions of Act
198 of the Public Acts of 1974, as amended, which act requires a contract between the
City and the Company to be agreed and submitted with the Company's subsequent
anticipated application for an industrial facilities exemption certificate.

B.        That in addition to the statutory requirement, the City has determined that it is in
the best interests of the taxpayers, property owners and residents of the City that this
Agreement be approved and executed prior to the establishment of the requested district,
and the City deems this Contract, together with the conditions set forth in the said Act to
constitute a necessary element in the City's determination whether or not to create the
district.                                          ·                         ·

C.      The Company intends to install the project set forth in its application ("project")
which it believes qualifies for the process of establishing the district and the application
for industrial facilities exemption certificate.

D.      The City, provided this Agreement is executed, will determine whether to create
the district based upon the potential for the production of permanent jobs, the
continuation, stabilization or increase of economic activity, planning and zoning
considerations and the City's general plan and intentions regarding economic
development. In addition to the City policy considerations and predictions that the
Company's proposed district and certificate benefit the community in those ways, the
City has further determined that the contractual commitments made by the Company to
thereby assist the community shall be binding on the Company and necessary to continue
the tax exemption made possible by the certificate.

E.      This contract shall become effective upon the issuance of an Industrial
Facilities Tax Exemption Certificate.

       NOW THEREFORE THE PARTIES AGREE:




                                                                                        Page I
1.     COMPANY AGREEMENT. The Company irrevocably commits to the
investment, job retention and job creation promises made in its application, a copy of
which is attached hereto and incorporated herein. In particular the Company agrees:

       1.1 That fifty (50) percent of the promised new jobs shall be in place with full-
           time employees on or before January, 1996, and seventy-five (75) percent of
           the said jobs shall be in place with full time employees on or before
           June, 1996 Finally, 100% of the jobs shall be filled and in existence with
           full-time employees by a date no later than two (2) years from the date of the
           granting of the certificate by the State Tax Commission, subject to the
           provisions of section 3.4 of this agreement.

       1.2 That the amount of jobs listed on the application, whether new or retained,
           will be maintained through the life of the abatement, subject to the
           provisions of section 3.4 of this agreement,

       1.3 The Company shall meet the affirmative action goal included in the
           application or in any documents supplied by the City and utilized by the
           Company, including any additional representations made to the City
           Commission on or before the date two (2) years after the granting of the
           certificate by the State Tax Commission. It shall maintain the said levels of
           employment diversity during the period of the certificate, subject to the
           provisions of section 3.4 of this agreement.

       1.4 The Company, by the end of two (2) years from the date of the grant of the
           certificate by the State Tax Commission shall have completed the investment
           of$2,160,000 in the equipment and improvements as shown in the
           application, subject to the provisions of section 3.4 of this agreement.

       1.5 That the improvements and equipment to receive the tax abatement treatment
           shall be completed on or before the date two (2) years from the date of
           granting of the certificate by the State Tax Commission.

       1.6 The Company shall pay its specific taxes required by the act in a timely
           manner, and shall not delay payments so as to incur any penalties or interest.

       1. 7 The Company shall fully cooperate with the City representatives in
            supplying all requested and required documentation regarding jobs,
            investment, the meeting of all goals and the timely installation and utilization
            of equipment and improvements. The City shall be entitled to inspect at
            reasonable hours the Company's premises where the said improvements and
            equipment have been installed and where the said jobs are performed.

       1.8 The Company shall maintain, during the entire period for which the tax
           abatement is granted, the level of jobs, affirmative action goals, production




                                                                                     Page 2
             and utilization of the improvements and equipment at the site where the
             district has been created and for which the tax exemption has been granted.

        1.9 The Company shall not cause or fail to cure the release of any hazardous
            substance, or the violation of any environmental law on its premises in the
            City. It shall report any releases to the appropriate governmental authority in
            a timely and complete manner, and provide copies of said report
            documentation to the City. It shall comply with all orders and actions of any
            governmental agency having authority.

        1.10 The Company shall maintain the equipment and improvements so as to
             minimize physical or functional obsolescence.

        1.11 The Company shall continue to operate its business location in the City,
             containing the same number of and type of jobs, for the term of the
             certificate.



2.        AGREEMENT BY THE CITY. Provided this contract has been executed and
further provided all applications to create the district and achieve the industrial facility
exemption certificate have been properly filed, the City shall, in a timely manner,
determine in a public meeting to whether to create the district and whether to receive,
process, and approve thereafter the Company's application for an industrial facilities
exemption certificate. The City may consider this contract in a meeting separate from
and prior to the meeting in which the City considers the creation of the district and/or
approval of the application for certificate. Further, the City shall require the submission
of this contract signed by the Company together with its applications, before creating the
district.

3.     EVENTS OF DEFAULT. The following actions or failures to comply shall be
considered events of default by the Company:

       3.1 Failure to meet any of the commitments set forth above.

       3.2 The closing of the Company's facilities in the City. Closing shall mean for
       purpose of this Agreement, the removal, without transfer to another site within the
       City of substantially all of the production facilities, and the elimination of
       substantially all the jobs created or retained thereby, which are set forth in the
       Company's application.

       3.3 Failure to afford to the City the documentation and reporting required.

       3.4 The failure to create or retain jobs, meet affirmative action goals or expend
       the funds on equipment and improvements as represented in the application
       within the times required hereby, unless the company can show that there has



                                                                                      Page3
       been a loss of revenue and employment due to circumstances beyond the
       control of the company. In order to make that showing the company shall
       have the burden of supplying, to the City's satisfaction, complete and
       convincing documentation supporting and justifying reductions in
       investment, failures to attain affirmative action goals or job losses, such as,
       without limitation, written evidence of lost contracts, accounting information
       showing reduced revenues due to the loss of business, (not due to diversion of
       production to affiliate companies or divisions of the company), production
       records showing reduced quantities over significant periods of time, and such
       other information required by the City to support the Company's claim that
       the failure to invest, failure to achieve affirmative action goals, or loss of jobs
       should not form the basis for a finding of default.


       3.5 The bankruptcy or insolvency of the Company.

       3.6 The failure to pay any and all taxes and assessments levied on the
       Company's property or any other taxes, local, state or federal, including but not
       limited to City income taxes and the withholding of said City income taxes from
       employees as required by the City Income Tax Ordinance.

       3.7 The performance or omission of any act which would lead to revocation
       under MCLA 207.565, being §15 of the Act.

       3.8 The violation of any provisions, promises, commitments, considerations or
       covenants of this Agreement.

4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City
shall have the following remedies which it may invoke without notice, except as may be
reasonably required by the Company's rights to due process:

       4.1 In the event of closing as determined after investigation of the facts and a
       public hearing, the Company shall be immediately liable for penalties to be paid
       forthwith to the city as determined as follows:

              4.1.1 The Company shall pay to the City for prorata distribution to the
              taxing units experiencing the abatement, an amount equal to the difference
              between the industrial facilities tax which it has paid, and the total
              property taxes to the relevant taxing units which it would have paid, given
              its installations of improvements and equipment, during the years for
              which the certificate was in effect.

              4.1.2 hnmediate Revocation. The Company hereby consents to
              revocation to the IFT certificate before the State Tax Commission, without
              hearing, and the City shall submit a copy of this Agreement to the State
              Tax Commission in connection with its revocation procedure, giving



                                                                                   Page 4
       notice that the default has occurred and immediate revocation should
       occur.

4.2 In the event the improvements and equipment have not been installed before
the two (2) year period, in addition to the revocation procedures before the State
Tax Commission, the abatement should immediately be reduced by the City
proportionately, and any installations which have not been finished at the end of
said two (2) year period shall not be eligible for the abatement thereafter and shall
be placed on the regular tax roll.

4.3 Failure to Expend the Funds Represented. In the event, (whether or not the
installations have been completed), the Company has not expended the funds it
has represented on its application that it would invest for the installation of
equipment, the abatement shall be reduced prorata, and any remaining value of
equipment shall be placed on the regular tax roll, unless the company can show,
through receipts, etc. that the cost of the equipment was actually less than the
amount estimated by the company (i.e., the same equipment was purchased
as listed in the IFT application, but the bids came in less then expected).

4.4 Job Creation and Retention. In the event the promised number of jobs have
not been created or retained at the end of the two (2) years after the grant of the
certificate by the State Tax Commission, the abatement shall be proportionately
reduced, unless the company can show that the. loss of jobs, or inability to hire
as many people as expected, is due to circumstances beyond the control of the
company (such as an economic downturn).

4.5 Affirmative Action Goals. In the event, after one (I) year from the grant of
the certificate by the State Tax Commission, the affirmative action goals of the
City for additional jobs have not been met on a prorata basis, the abatement shall
be revoked.

4.6 For other violations of this Agreement or for actions or omissions by the
Company amounting to grounds for revocation by statue, the City shall
recommend to the State Tax Commission immediate revocation of the certificate.

4. 7 Special Assessment. For any amount due to be paid to the City, under this
Section 4, the Company consents that the City shall have a personal action against
the Company for the said amount, and in addition, cumulatively, and not by
election, the City shall have a special assessment lien on all the property of the
Company personal and real, located in the City, for the collection of the amounts
due as and in the manner of property taxes and in such case the collection of the
said special assessment shall be accomplished by addition by the City to the
Company's property tax statement regularly rendered.




                                                                              Page 5
5. Governing Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of Michigan applicable to contracts made and to be
performed within the State of Michigan.

6. Counterparts. This Agreement may be executed in one or more counterparts.
Notwithstanding such execution all such counterparts shall constitute one and the same
Agreement.

7. Benefit. This Agreement shall be binding upon and inure to the benefit of the
respective parties, their successors and personal representatives.

8. Effective Date. This Agreement shall be effective on the date the State of
Michigan Tax Commission grants the company at Industrial Facilities Exemption
Certificate.




                                                         Its President

                                                   and._ _ _ _ _ _ _ _ _ _ __

                                                         Its- - - - - - - - - -




                                                                               Page 6
              Commission Meeting Date: September 28, 2004

Date:         September 14, 2004

To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development (.,(bv
RE:           Public Hearing - Request for Name Change on Industrial
              Development Certificate No. 98-551 - Great Lakes Die Cast


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, Great Lakes Die Cast Corporation,
701 W. Laketon Avenue, Muskegon, Michigan, has requested name change on
Industrial Development Certificate No. 98-551 for property located at 701 W. Laketon
Avenue, Muskegon, Michigan. The certificate was originally granted to Dilesco
Corporation IN 1998, but since the company has new owners, the name change is
requested. The transfer will be for both real and personal property. The company
continues to perform the same work as under the previous owners.

FINANCIAL IMPACT:

Certain additional income and property taxes will be collected.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution changing the name on the Industrial Development
Certificate to Great Lakes Die Cast Corporation.

COMMITTEE RECOMMENDATION:

None




9/14/2004
Michigan Department of Treasury
1012 (Rev. 4/04)

 '\pplication for Industrial Facilities Tax Exemption Certificate
  :iued under authority of P.A. 198 of 1974, es amended. Filing is mandatory.
INSTRUCTIONS: File the original and two copies of this form and the required attachments (three complete sets) with the clerk of the
local government unit. The State Tax Commission (STC) requires two complete sets (one original and one copy). One copy is retained
by the clerk. If you have any questions regarding the completion of this form or would like to request an informational packet, call (517)
373-3272.
 .·.',\                                                        To be compieted by_ Clerk of Local Government Unit
                                                                                                  Date received by Local Unit

                                                                                                           .Sep-fet»lur
                                                                                     • STC Use Only;;: ; •
App1icallon Number                                                                                Date Received by STC


APPLICANT INFORMATION
All boxes must be completed.
 1a. Company Name (Appllcent mus! be Iha occupantloperator of the faciHty)                        1b. Standard Industrial Classlficalion (SIC) Code- Sec. 2(10) {Four Digit Code)
          Great Lakes Die Cast Corporation                                                          3361
1c. Location of Facility (Street, City, State, ZIP Code}                                          1d. Name 0I l;lty11ownsn1p,vmage               1e. County
                                                                                                  (Indicate which)
          701   w.   Laketon Ave., Muskeiton, MI 49441                                                  Muskeiton                                   Muskee:on
2. Type of Approval Requested                                                                     3a. School Dlslrict where facility is located 3b. School Code
    D New (Sec. 2(4))                                      ~ Transfer (1 copy to only)                  Muskegon                                    61010
    D Speculative Building (Soc. 3(8))                          Rehabilitation (Soc. 3(1)) 4. Amount of years requested for exemption (1-12 Years}
    D      Research and Development (Sec. 2(9))                                                         12
5. Thoroughre describe the project for which exemption Is sought Real Pr'#t:.rty {Type of lmerovements lo Land, Buildin~, Size of Addition); Personal Property (Explain New,
Used, Trans erred from Out-of-Slate, etc.) and Proposed Use of Fac!Uty. ( lease altach additional page(s) ii more room 1s needed).
   Building and equipment expansion resulting from the purchase of land and building
   from the County, demolition of old building, construction of new building, and the
   purchase and installation of new machinery and equipment.


 6a. Cost of land and building Improvements (excluding cost of land) .                                                                           $1,888,194.00
       • Attach list of improvements and associated costs.                                                                                         Real Property Costs
           • Also attach a copy of building permit if project has already begun.
 6b. Cost of machinery, equipment, furniture and fixtures ..                                                                                     $5,205,100.00
       • Attach itemized listlng with month, day and year of beginning of installation plus total costs                                            Personal Property Costs

 6c. Total Project Costs                                                                                                                         $7,093,294.00
                                                                                                                                                  Total of Real & Personal Costs

7. Indicate the time schedule for start and finish of construcllon and equipment installation. Projects must be completed within a two year period of the effective date of the
certificate unless otherwise approved by the STC.
                                                     Begin Date (M[D/Y)                          End Date {MID/Y}

   Real Property Improvements                          9/9/98                                    3[15[99                              Downed           ~Leased

  Personal Property Improvements                    12/1/98                                      5[1[99                               !!]owned        0Leased


8. Are State Education Taxes reduced or abated by the Michigan Economic Development Corporation (MEDC)? If yes, applicant mus! attach a signed MEDC Letter of
Commillment to receive lhls exemption.         O Yes             [!]
                                                                 x No
9. Number of existing jobs at lhis racllity thal will be retained as a result of this project.   10. Number of new jobs at 1his facility expected 10 be crea\ed within two years or
                     195                                                                         project completion.           JO
11. Kehab1Jitat1on applications omy: ~omplete a, band c 01 this section. rou must attac the assessors statement 01 valuahon 1or the entire plant rehabll tatlon district. The
SEV dat"a below mus! be as of December 31 of the year prior to the rehabilitation.

   a. SEV of Real Property (excluding land)
  b. SEV of Personal Property (excluding inventory) .
  c. Total SEV
 '2a. Check the type of District lhe facility is localed in:
                @      Industrial Development District                   D Plant Rehabilitalion District
12b. Dale district was eslablished by local government unit                                      12c. Is lhts application for a speculative builiding (Sec. 3(8))?
     (Not kuown by preparer)                                                                              D Yes            Ii]   No
 Form 1012, Page 2

 APPLICANT CERTIFICATION
 The undersigned, authorized officer of the company making this application certifies that. to the best or his/her knowledge, no information contained
 herein or in the attachments herelo is false in any way and that all are truly descriptive of the industrial property for which this application is being
 submitted.

It is further certified that the undersigned is familiar with the provisions of P.A. 198 of 1974, as amended, being Sections 207.551 to 207.572, inclusive,
or the Michigan Compiled Laws; and to the best of his/her knowledge and belief, (s}he has complied or will be able to comply with all of the
requirements thereof which are prerequisite to the approval of the application by the local unil of government and the issuance of an Industrial Facililies
Exemption Certificate by the Slate Tax Commission.
 13a. Preparer Name                                13b. Phone Number                   13c. Fax Number                            13d. E~mai!Address
  Con J. Nolan                                      (231) 728-8813                     (231) 726-2205                             cnolan@gldiecast.com
 14a. Name of Contact Person                       14b. Phone Number                   14c. Fax Number                            14d. E-mail Address
  Same as above                                     Same as above                       Same as above                             Same as above
 15a. Name of Company Officer (No Aulhorlzed Agents)
  Con J. Nolan. President
 15b. Signature o~ari'y
                   .;~--
                             ?rrJto
                              '        ,I
                                            P-9'ized Agents)
                                               ~
                                                                                                                                  15c. Dale
                                                                                                                                    9/1/04
 1Sd. Malling Addfass (St:t Clly, State, ZIP)                                          15e. Phone Number                          15f. E-mail Address
  701 W. Laket n Ave •• Muskegon. MI 49441                                             (231) 728-8813                             cnolan@gldiecast.com
LOCAL GOVERNMENT ACTION & CERTIFICATION
This section must be completed by the clerk of the local governing unit before submitting application to the State Tax Commission. Check items on file
at the Local Unll and those included with the submittal.

 16. Action taken by local government unH                                             16b. The State Tax Commission Requires the following documents be filed for an
                                                                                      administrallvely complele applicatlon:
     D Abatement Approved for ____ Years (1-12)                                         Indicate NIA If Not Applicable
              After Completion     D Yes D No                                            -    1. Original Application plus attachments, and one complete copy
                                                                                         f-
                                                                                              2. Resolulion establishing district
     O Denied (Include Resolution Denying)                                               f-
                                                                                              3. Resolution approvingfdenying application.




                   .,. -~· ..•,,~.,.·-
                                                                                         ~

                                                                                              4. Letter of Agreement (Signed by local unit and applicant)
 16a. Documents Required to be on file with the Local Unit                               ~


   Indicate. NIA If Not Applicable                                                            5. Affidavit or Fees (Signed by local unit and appliC:anl)

         '. '"" ,,.. "''.
                                                                                         ~




   ~ 2. Notice to taxing aulhorilies of opportunity for a hearing.                       -    6. Building Permit for real improvements if project has already begun
                                                                                              7. Equipmenl list wilh dates or beginning of installation
        3. List of taxing authorities notified for district and application action.
                                                                                         -    8. Form 3222 (if applicable)
        4. Lease Agreement showing applicants tax liability.
                                                                                         -    9. Speculative building resolution and affidavits (if applicable)
                                                                                         -
 17. Name of Local Government Body                                                    18. Date of Resolution Approving/Denying this Application


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

                                                              19b. Name of Clerk                                  19c. E-mail Address
                                                                  a/I    A. Jrv11d/ ,,,.                             oi/./(WJ(/1'/Jftere] o.f,man, t:1r
19d. Clerk's Malling Address (Street, City, Stal , IP)        19a. Phone Number                                   19f. Fax Number
'133 lerro,c,e /1/u.s.K,,             °" /JI/ 1/JffP            {:J.31) 7,;i 'I- /,?OS-                             (::i 31/ 7.;i y-y17?
Stale Tax Commission Rule Number 57: Complete applications approved by the local unit and received by the State Tax Commission by October 31
each year will be acted upon by December 31. Applications received after October 31 may be acted upon in the following year.

Local Unit: Mail one original and one copy of the completed application and all required attachments to:
State Tax Commission
Michigan Department of Treasury
P.O. Box 30471                                                     *    Information contained in this application
Lansing, Ml 4B909-7971                                                  and supporting documentation may be
                                                                        subject to review by the public if a
                                                                        Freedom of Information request is filed.


                                                                              STC USE ONLY
LUC! Code                                     Begin Date                              End Date                                  End Date2
                               Resolution No. 2004-86 ( b)

                          MUSKEGON CITY COMMISSION

                  RESOLUTION APPROVING REQUEST
     FOR A NAME CHANGE FOR INDUSTRIAL DEVELOPMENT CERTIFICATE
                             NO. 98-551
                         Great Lakes Die Cast Corporation

WHEREAS, pursuant to Act No. 198 of the Public Acts of 1974, as amended, the City
of Muskegon has the authority to authorize a name change to an "Industrial
Development Certificate" within the City of Muskegon; and

WHEREAS, Dilesco Corporation, the previous applicant for the certificate, has sold it's
operations to Great Lakes Die Cast Corporation; and

WHEREAS, Great Lake Die Cast Corporation, 701 W. Laketon Avenue, Muskegon,
Michigan, has requested the City of Muskegon to change the name on Industrial
Development Certificate No. 98-551 for real and personal property located at 701 W.
Laketon Avenue, Muskegon, hereinafter described; and

WHEREAS, Great Lakes Die Cast Corporation presently owns a production facility
within the Industrial Development District; and

WHEREAS, written notice has been given by mail to all owners of real property located
within the district, and to the public by newspaper advertisement in the Muskegon
Chronicle and public posting of the hearing on the proposed change on the certificate;
and

WHEREAS, before acting on said request the Muskegon City Commission held a
public hearing on September 28, 2004, at the Muskegon City Hall in Muskegon,
Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives
of the affected taxing units were afforded an opportunity to be heard on said
application.

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

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

       2.      The application of Great Lakes Die Cast, for the name change of an
               Industrial Facilities Tax Exemption Certificate is with respect to real and
               personal property for the following described parcel situated within the
               City of Muskegon to wit:

                                   See Attachment A

       3.      The name on the Industrial Facilities Exemption Certificate is changed
               and shall remain in force and effect for the remaining period of the
               original certificate, which took effect October 24, 1995, and was issued
               for twelve (12) years.

Adopted this 28th day of September, 2004.

Ayes: Spataro, Warmington, Cart er, Davis, Gawron, Larson, and Shephe rd

Nays: None

Absent: None




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 September 28, 2004.
                                     ATTACHMENT A


        Glencoe addition, Blk 1 lot 2 to 11 incl & vac Erie; Blk 2 Lots 1-4 incl, 6-11 incl
and all vac alleys abutting same; Blk 3 lots 1-4 in!, 12 to 18 incl, 20 to 26 incl and all vac
alleys and Sts abutting; Blk 4, Lots 1-7 incl, Lots 20 to 26 incl and all abutting vac Sts
and alleys; Blk 5, Lots 1-6 incl, vac Sts abutting; Blk 6, Lots 1-5 incl, 6-11 inc vac Erie
Also N ½ vac alley, Lots 17 and 19 N vac Duncan and S ½ alley also Lots 12 to 16 incl
and N ½ vac alley; and

        Part of the Northwest¼ of Section 31, Town 10 North, Range 16 West,
Muskegon City, Muskegon County, Michigan, being described as: Commencing at the
Northwest comer of said Section, thence South 00 degrees 00 minutes 00 seconds West
on the West line of the Section, 664.00 feet; thence North 89 degrees 56 minutes 20
seconds East 33.00 feet to the East line of Henry Street being the point of Beginning of
the parcel of land therein described; thence continuing North 89 degrees 56 minutes 20
seconds East 446.38 feet to the Southwesterly line of the Chesapeake and Ohio Railroad;
thence South 32 degrees 59 seconds 51 minutes East on the same, 412.11 feet; thence
South 00 degrees 15 minutes 07 seconds West 221.02 feet; thence South 87 degrees 48
minutes 13 seconds West 670.33 feet to said East line; thence North 00 degrees 00
minutes 00 seconds East on same, 591.86 feet to the Point of Beginning. Subject to
easements restrictions and right-of-ways ofrecord.
                                  CITY OF MUSKEGON

                          CONTRACT FOR TAX ABATEMENT
                             Act 198 Public Acts of 1974


       AGREEMENT between CITY OF MUSKEGON, a municipal corporation of933
Terrace Street, Muskegon, Michigan 49441, ("City") and Great Lakes Die Cast
("Company").

                                          Recitals:

A.      The Company has applied to City for the establishment of an industrial
development district or industrial rehabilitation district pursuant to the provisions of Act
198 of the Public Acts of 1974, as amended, which act requires a contract between the
City and the Company to be agreed and submitted with the Company's subsequent
anticipated application for an industrial facilities exemption certificate.

B.        That in addition to the statutory requirement, the City has determined that it is in
the best interests of the taxpayers, property owners and residents of the City that this
Agreement be approved and executed prior to the establishment of the requested district,
and the City deems this Contract, together with the conditions set forth in the said Act to
constitute a necessary element in the City's determination whether or not to create the
district.

C.      The Company intends to install the project set forth in its application ("project")
which it believes qualifies for the process of establishing the district and the application
for industrial facilities exemption certificate.

D.      The City, provided this Agreement is executed, will determine whether to create
the district based upon the potential for the production of permanent jobs, the
continuation, stabilization or increase of economic activity, planning and zoning
considerations and the City's general plan and intentions regarding economic
development. In addition to the City policy considerations and predictions that the
Company's proposed district and certificate benefit the community in those ways, the
City has further determined that the contractual commitments made by the Company to
thereby assist the community shall be binding on the Company and necessary to continue
the tax exemption made possible by the certificate.

E.      This contract shall become effective upon the issuance of an Industrial
Facilities Tax Exemption Certificate.

       NOW THEREFORE THE PARTIES AGREE:




                                                                                        Page 1
1.     COMPANY AGREEMENT. The Company irrevocably commits to the
investment, job retention and job creation promises made in its application, a copy of
which is attached hereto and incorporated herein. In particular the Company agrees:

       I.I That fifty (50) percent of the promised new jobs shall be in place with full-
           time employees on or before June, 1999, and one-hundred (100) percent of
           the said jobs shall be in place with full time employees on or before
           December, 1999. Finally, 100% of the jobs shall be filled and in existence
           with full-time employees by a date no later than two (2) years from the date
           of the granting of the certificate by the State Tax Commission, subject to the
           provisions of section 3.4 of this agreement.

       1.2 That the amount of jobs listed on the application, whether new or retained,
           will be maintained through the life of the abatement, subject to the
           provisions of section 3.4 of this agreement.

       1.3 The Company shall meet the affirmative action goal included in the
           application or in any documents supplied by the City and utilized by the
           Company, including any additional representations made to the City
           Commission on or before the date two (2) years after the granting of the
           certificate by the State Tax Commission. It shall maintain the said levels of
           employment diversity during the period of the certificate, subject to the
           provisions of section 3,4 of this agreement.

       1.4 The Company, by the end of two (2) years from the date of the grant of the
           certificate by the State Tax Commission shall have completed the investment
           of$7,093,294 in the equipment and improvements as shown in the
           application, subject to the provisions of section 3.4 of this agreement.

       1.5 That the improvements and equipment to receive the tax abatement treatment
           shall be completed on or before the date two (2) years from the date of
           granting of the certificate by the State Tax Commission.

       1.6 The Company shall pay its specific taxes required by the act in a timely
           manner, and shall not delay payments so as to incur any penalties or interest.

       1.7 The Company shall fully cooperate with the City representatives in
           supplying all requested and required documentation regarding jobs,
           investment, the meeting of all goals and the timely installation and utilization
           of equipment and improvements. The City shall be entitled to inspect at
           reasonable hours the Company's premises where the said improvements and
           equipment have been installed and where the said jobs are performed.

       1. 8 The Company shall maintain, during the entire period for which the tax
            abatement is granted, the level of jobs, affirmative action goals, production




                                                                                    Page2
             and utilization of the improvements and equipment at the site where the
             district has been created and for which the tax exemption has been granted.

        1.9 The Company shall not cause or fail to cure the release of any hazardous
            substance, or the violation of any environmental law on its premises in the
            City. It shall report any releases to the appropriate governmental authority in
            a timely and complete manner, and provide copies of said report
            documentation to the City. It shall comply with all orders and actions of any
            governmental agency having authority.

        1.10 The Company shall maintain the equipment and improvements so as to
             minimize physical or functional obsolescence.

        1.11 The Company shall continue to operate its business location in the City,
             containing the same number of and type of jobs, for the term of the
             certificate.



2.        AGREEMENT BY THE CITY. Provided this contract has been executed and
further provided all applications to create the district and achieve the industrial facility
exemption certificate have been properly filed, the City shall, in a timely manner,
determine in a public meeting to whether to create the district and whether to receive,
process, and approve thereafter the Company's application for an industrial facilities
exemption certificate. The City may consider this contract in a meeting separate from ·
and prior to the meeting in which the City considers the creation of the district and/or
approval of the application for certificate. Further, the City shall require the submission
of this contract signed by the Company together with its applications, before creating the
district.

3.     EVENTS OF DEFAULT. The following actions or failures to comply shall be
considered events of default by the Company:

       3.1 Failure to meet any of the commitments set forth above.

       3.2 The closing of the Company's facilities in the City. Closing shall mean for
       purpose of this Agreement, the removal, without transfer to another site within the
       City of substantially all of the production facilities, and the elimination of
       substantially all the jobs created or retained thereby, which are set forth in the
       Company's application.

       3.3 Failure to afford to the City the documentation and reporting required.

       3.4 The failure to create or retain jobs, meet affirmative action goals or expend
       the funds on equipment and improvements as represented in the application
       within the times required hereby, unless the company can show that there has



                                                                                      Page 3
       been a loss of revenue and employment due to circumstances beyond the
       control of the company. In order to make that showing the company shall
       have the burden of supplying, to the City's satisfaction, complete and
       convincing documentation supporting and justifying reductions in
       investment, failures to attain affirmative action goals or job losses, such as,
       without limitation, written evidence of lost contracts, accounting information
       showing reduced revenues due to the loss of business, (not due to diversion of
       production to affiliate companies or divisions of the company), production
       records showing reduced quantities over significant periods of time, aud such
       other information required by the City to support the Company's claim that
       the failure to invest, failure to achieve affirmative action goals, or loss of jobs
       should not form the basis for a finding of default.


       3.5 The bankruptcy or insolvency of the Company.

       3.6 The failure to pay any and all taxes and assessments levied on the
       Company's property or any other taxes, local, state or federal, including but not
       limited to City income taxes and the withholding of said City income taxes from
       employees as required by the City Income Tax Ordinance.

       3.7 The performance or omission of any act which would lead to revocation
       under MCLA 207.565, being §15 of the Act.

       3.8 The violation of any provisions, promises, commitments, considerations or
       covenants of this Agreement.

4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City
shall have the following remedies which it may invoke without notice, except as may be
reasonably required by the Company's rights to due process:

       4.1 In the event of closing as determined after investigation of the facts and a
       public hearing, the Company shall be immediately liable for penalties to be paid
       forthwith to the city as determined as follows:

              4.1.1 The Company shall pay to the City for prorata distribution to the
              taxing units experiencing the abatement, an amount equal to the difference
              between the industrial facilities tax which it has paid, and the total
              property taxes to the relevant taxing units which it would have paid, given
              its installations of improvements and equipment, during the years for
              which the certificate was in effect.

              4.1.2 Immediate Revocation. The Company hereby consents to
              revocation to the IFT certificate before the State Tax Commission, without
              hearing, and the City shall submit a copy of this Agreement to the State
              Tax Commission in connection with its revocation procedure, giving



                                                                                   Page 4
       notice that the default has occurred and immediate revocation should
       occur.

4.2 In the event the improvements and equipment have not been installed before
the two (2) year period, in addition to the revocation procedures before the State
Tax Commission, the abatement should immediately be reduced by the City
proportionately, and any installations which have not been finished at the end of
said two (2) year period shall not be eligible for the abatement thereafter and shall
be placed on the regular tax roll.

4.3 Failure to Expend the Funds Represented. In the event, (whether or not the
installations have been completed), the Company has not expended the funds it
has represented on its application that it would invest for the installation of
equipment, the abatement shall be reduced prorata, and any remaining value of
equipment shall be placed on the regular tax roll, unless the company can show,
through receipts, etc. that the cost of the equipment was actually less than the
amount estimated by the company (i.e., the same equipment was purchased
as listed in the IFT application, but the bids came in less then expected).

4.4 Job Creation and Retention. In the event the promised number of jobs have
not been created or retained at the end of the two (2) years after the grant of the
certificate by the State Tax Commission, the abatement shall be proportionately
reduced, unless the company can show that the loss of jobs, or inability to hire
as many people as expected, is due to circumstances beyond the control of the•
company (such as an economic downturn):

4.5 Affirmative Action Goals. In the event, after one (1) year from the grant of
the certificate by the State Tax Commission, the affirmative action goals of the
City for additional jobs have not been met on a prorata basis, the abatement shall
be revoked.

4.6 For other violations of this Agreement or for actions or omissions by the
Company amounting to grounds for revocation by statue, the City shall
recommend to the State Tax Commission immediate revocation of the certificate.

4. 7 Special Assessment. For any amount due to be paid to the City, under this
Section 4, the Company consents that the City shall have a personal action against
the Company for the said amount, and in addition, cumulatively, and not by
election, the City shall have a special assessment lien on all the property of the
Company personal and real, located in the City, for the collection of the amounts
due as and in the manner of property taxes and in such case the collection of the
said special assessment shall be accomplished by addition by the City to the
Company's property tax statement regularly rendered.




                                                                              Page 5
,.



     5. Governing Law. This Agreement shall be construed and enforced in accordance
     with the laws of the State of Michigan applicable to contracts made and to be
     performed within the State of Michigan.

     6. Counterparts. This Agreement may be executed in one or more counterparts.
     Notwithstanding such execution all such counterparts shall constitute one and the same
     Agreement.

     7. Benefit. This Agreement shall be binding upon and inure to the benefit of the
     respective parties, their successors and personal representatives.

     8. Effective Date. This Agreement shall be effective on the date the State of
     Michigan Tax Commission grants the company at Industrial Facilities Exemption
     Certificate.




                                                        and· - - - - - - - - - - - -

                                                              Its_ _ _ _ _ _ _ _ __




                                                                                     Page 6
        Commission Meeting Date: September 28, 2004




Date:       September a, 2004
To:         Honorable Mayor & City Commission
From:       Planning & Economic Development Department                ~

RE:         Groundwater Ordinance Amendment


SUMMARY OF REQUEST: To approve an amendment to the City
Groundwater Ordinance to include properties that have been identified
as "affected" premises as defined in the Groundwater Ordinance. An
"affected" premises shall mean a parcel of property any part of which is
located within an appendix map made part of this ordinance, as
originally enacted or amended, which map shows the parcel to have
contaminated groundwater under any part of the parcel. Brunswick
Corporation (owner of the parcel) and R & B Trailer Leasing (adjacent to
the parcel) have been notified by mail of the amendment herein.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: To approve the amendment.



COMMITTEE RECOMMENDATION: None.
Contaminated sites approved by City Commission
                        , ~ llr~
                                   -




                                                 D    MichCon
                                                      Brunswick
                                                 .._ Wesco
                                                 D Lakeview mart facility
                                                 c::J Speedway
                                                 _ _ Port City Paints
                                                 -    Verplank
                                                 D Nordco
                                                 D Lemmen
                                                 D Admiral Petroleum
                                                 EI:] Shaw Walker




                                                         W*E
                                                               N




                                                               s
                                      CITY OF MUSKEGON

                               MUSKEGON COUNTY, MICHIGAN

                                    ORDINANCENO.          2139


        An ordinance amending the City Code by adding to Ordinance No. 2039 (Muskegon City
Code Sections 24-46 through 24-52.5) certain identifying "Appendix Maps" and descriptions of
properties determined to be "affected premises" on which groundwater wells for the delivery of
water for human consumption and irrigation, and the use of such wells which may influence the
movement of contaminated groundwater, are prohibited by the said Ordinance No. 2039. The
said Ordinance No. 2039 is amended by this Ordinance.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

        I.     The properties identified in this amending ordinance are determined to be affected
premises within the meaning of, and regulated in accordance with, Ordinance 2039 or any
successor ordinance prohibiting wells on such premises. The said affected premises constitute
the Brunswick Bowling and Billiards (North Plant) Facility and are located in the vicinity of
Forest Avenue and Messler Street:

                  Owner of Parcel                     Property Tax Number

                    Brunswick Corporation                 61-24-131-100-0004-00
                    R&B Trailer Leasing                   6!-24-205-431-0007-00




        2.      Attached to this ordinance and incorporated herein are Appendix Maps locating
the affected premises and their legal descriptions.

        3.      This ordinance shall be effective ten (I 0) days after publication. In the event any
part of this ordinance is finally determined to be invalid or unenforceable by a court having
jurisdiction, then said determination shall not affect the validity of the remaining provisions.

This ordinance adopted:
       Ayes: Wannington, Carter, Davis, Gawron, Larson, Shepherd, Spataro
       Nays: _N_o_n_e_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Adoption Date:        September 28, 2004
Effective Date:       October 12, 2004
First Reading:        September 28, 2004
Second Reading: - ~ N / ~ A ~ - - - - - - - - - - - - - - - - - - - - - - -
                                                    By
                                                          MUSKEb
                                                    CITY OF

                                                         ~Q.                            .
                                                    Gail A. Kundinger,Cityaerk


                                        CERTIFICATE

        This ordinance was adopted at a meeting of the City Commission, held on
     September 28                 , 2004. 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 MUSKEGO

                                                    By-.:t=.~~
                                                             ,~ Q
                                                                ~ ,: :....__1;~~~~~- -
                                                    Gail A. Kundinger, City Clerk




Publish:      Notice of Adoption to be published once within ten (I 0) days of final adoption.
                              APPENDIX NO.

           Affected Premises Contaminated or Subject to Contamination
by the Groundwater from the Brunswick Bowling and Billiards (North Plant) Facility


 Real Property Tax Assessment Parcel Numbers & Legal Descriptions

 Brunswick Bowling and Billiards - North Plant:

        Parcel ID No.: 61-24-131-100-0004-00

        Legal Description:

        BEG @ NW COR BLK 451 TH S TO S LINE DALE AVE EXTD TH W
        TO NW COR LOT 16 BLK 452 TH S TO SW COR LOTS BLK 452 TH
        STOA PT 495 FT N OF SW COR THE 1.2 FT TH S 48 FT TH W 172
        FT TO W LINE BLK 452 TH S TO A PT 495 FT N OF SW COR BLK
        457 THE 92 FT TH S 67 FT TH N 89 DEG 38 MINE 109.45 FT TH S
        0.69 FT TH W 139 FT TH N 6.6 FT TH W 1.2 FT TH S 36.83 FT TH W
        6 FT TH S 87.17 FT TH W 61.8 FT TOW LINE BLK 457 TH S 250.6
        FT TO SW COR BLK 457 THE TO SECOR BLK 459 TH NWLY
        ALONG WLY LINE BLK 438 TO NW COR BLK 438 TH W TO BEG
        ALSO LOT 16 BLK 438 EXP ART USED FOR RR R/W BEING
        ENTIRE BLKS 451458459 & PARTS OF BLKS 438 452 457 ALSO
        VAC STREETS & ALLEYS IN SAME




R&B Trailer Leasing:

        Parcel ID No.: 61-24-205-431-0007-00

       Legal Description:

       CITY OF MUSKEGON, REVISED PLAT OF 1903, BLK 431, LOT 7, DESC
       AS COM AT INT OF NL Y ROW LN FOREST A VE & WL Y ROW LN
       PENNSYLVANIA RR TH N 89D 58M W 194.10 FT TO ELY ROW WAGNER
       AVE TH N 27D 42M I 5S W 395.69 FT TO SLY ROW LN SOUTHERN AVE
       TH 3 173.95 FTTO SD WLY ROW PENNSYLVANIA RR THS 30D !3M E
       405.55 FT TO POB


[Insert Maps)
                                                 CITY OF MUSKEGON
                                                NOTICE OF ADOPTION

TO:       ALL INTERESTED PARTIES

      Please take notice that on September 28, 2004, the City Commission of the City of
Muskegon adopted an ordinance to amend the Muskegon City Code limiting and regulating
groundwater wells for the delivery of water for human consumption and irrigation.

       The amending ordinance identifies the following affected properties upon which
groundwater wells for the delivery of water for human consumption and irrigation are prohibited.
The properties are listed by their street address and property tax identification numbers. The full
ordinance, available at the City Hall, contains the legal descriptions of the properties affected:

                     Property Address                        Property ID Numbers

                     525 W. Laketon Avenue                   61-24-131-100-0004-00
                     Muskegon,MI 49441

                     1600 Messler Street                     61-24-205-431-0007-00
                     Muskegon,MI 49441

       Legal descriptions of the above properties, and a map showing the location of
contaminated properties and sources of contamination, are attached to the full ordinance and may
be inspected and copied in connection with any inspection of the ordinance.

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

          This ordinance amendment is effective ten (10) days from the date of this publication.

                                                         CITY OF MUSKEGON

Published:        October 2                       2004   By_ _ _ _ _ _ _ _ _ _ _ _ _ _ __
                                                         Gail A. Kundinger, Its Clerk

----------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PAS SAGE.




Z:\WORO\Groundwater Ord. Public Notice. Brunswick.doc
                                                                                            Rev. 4/18/03



                                       City of Muskegon

                    Petition To Designate Affected Premises Under
                               Water Supplies Ordinance

The City of Muskegon passed a groundwater protection ordinance (Ordinance No. 1133) on
August 26, 1997. This groundwater protection ordinance was amended on December 12, 2000,
and is now referred to as Ordinance No. 2039. The ordinance prohibits the use of groundwater
wells and secondary water supplies under certain circumstances and in certain locations, to
prevent exposure to contaminated groundwater, as well as to prevent wells from influencing the
movement of contaminated water. No groundwater wells may be installed on affected premises
unless the use of such well is solely for commercial or industrial non-contact cooling or
processing purposes (with appropriate DEQ and local approvals), construction de-watering, DEQ
or EPA-approved groundwater monitoring or remediation systems, or a public emergency.

If the Petitioner is requesting that the City add one or more.affected premises to the City's list,
the following information must be provided in full. Please note that no action will be taken on
your Petition until .!!ll requested' materials have been submitted to the City Planning Department,
along with two (2) complete copies.                                               ·

1.     ime and address of Petitioner:,               Name/telephone of contact person:            ·
                     k
      . '/"//11.ft<1tc 0,,, Meo ft an                 111,. wmes lAJh,'-ft1KPc
      ~s     w; l.qk f"                        l/~P.81/3       mw..-    8       t? :l()j tll IL A,£tiwt"ff
                                                                              -.
               VI




                    ..
Note: Attach add,uonal sheets, as necessary .

Column    A:        Name of the hazardous substance
Column    B:        Chemical Abstract Service (CAS) Number for the hazardous substance
Column    C:        Sample location for Column D (show on site map)
Column    D:        Maximum hazardous substance concentration measured on the property,
                    including units of measurement
Column E:           Direction of contaminant migration, if known
                            Attachment for
            City of Muskegon Petition for Ordinance No. 2039

3(a) Legal Description of Source or Site of Contamination
    Attached

3(b) Name, Address, and Telephone Number of Persons Having Interest as
     Owner or Occupant of the Source Property
     Mr. James Whitaker
     Brunswick Corporation
     525 W. Laketon Avenue
     Muskegon,MI49441
     231-725-3214
3(c) Nature and Extent of Contamination
    In 1984, a toluene release was discovered from one of the two 10,000-gallon
    toluene USTs located in the northwestern comer of the property. An
    estimated 6,000 gallons were released. Brunswick has been working to
    address the toluene-impacted groundwater for many years. In addition to
    removing the former leaking underground storage tank and excavating the
    surrounding soil that are believed to have been the original source of the
    toluene contamination, Brunswick has implemented numerous groundwater
    cleanup remedies including groundwater removal and treatment, air sparging
    with soil vapor extraction, injection of Oxygen Release Compound into the
    groundwater and demonstration that natural attenuation mechanisms are
    working to degrade the toluene.
    These remedies removed much of the toluene present. At one time, no
    toluene was detected in groundwater for over a year (no detections during five
    consecutive monitoring events), and the remediation systems were
    decommissioned with the approval of the MDEQ. However, subsequent
    monitoring indicates that toluene concentrations returned and now are
    observed intermittently in the groundwater; therefore, Brunswick continues to
    monitor the groundwater in this area.
    Brunswick samples groundwater for toluene in the wells on its property and
    the R&B Leasing property to the north (as well as others) at a minimum of
    four times per year and sometimes as often as several times per month. These
    data are included in lengthy reports submitted to the MDEQ four times per
    year.
    The most recent report indicates that the sample collected from MW-2A,
    located immediately adjacent to Forest Ave. on Brunswick's property contains
    a toluene concentration of I. I milligrams per liter (mg/I). A sample from
    MW-8 collected in January 2004, but not yet reported to the MDEQ, had a
    toluene concentration of 8.2 mg/L. This well is located on R&B Leasing
    property immediately across Forest Avenue from the source area (see attached
    Figure). The toluene concentration in groundwater at these two wells
   fluctuates and is often times found to be below the detection limit of 0.001
   mg/I.
   Toluene concentrations in the remaining monitoring wells are generally below
   detection limits or well below the MDEQ Part 201 RDW criteria. Monitoring
   of the toluene contamination continues and while no active remediation
   system is in place, there is documented evidence of natural degradation. It is
   important to emphasize that there is no added risk to public health since no
   one drinks the groundwater in this area.

3(e) Affected Properties
     Address: 1600 Messler St., Muskegon, MI 49441
     Parcel ID#: 61-24-205-431-0007-00
     Owner: R&B Trailer Leasing
     Contact: M. Connie Hanes, 615 W. Dale Ave, Muskegon, MI 49441

    Address: Forest Avenue between Messler St. and Eight St., Muskegon, MI
    49441
    Parcel ID#: NA
    Owner: City of Muskegon
     Contact: Mr. Brian Lazor, Planning Dept., 933 Terrace, P .0. Box 536,
    Muskegon,MI49443

3(f) Scaled Map of source of Contamination and Affected Premises
     Attached

3(g) Groundwater Well Usage and Status
    No water supply wells are present on the subject property or affected
    properties. There are, however, monitoring wells located on the northwestern
    portion of the site and offsite.
 E)-
1/~ _     24-205-451-0001·00
    700 MESSLER ST
                                Map #:24-31-30-300-003
                                         12/28/2000
                                                             Legal Description
  BRUNSWICK CORP                                             North Plant
1
    2 5 W LAKETON
    TTN: MARK L SCHULTZ
  MUSKEGON, MI 49441

l"lass.        301
                      School: 61010


  ,;1EG    @   NW COR BLK 451 TH S TO S LINE DALE AVE EXTD
  TH W TO NW COR LOT 16 BLK 452 TH S TO SW COR LOT
Is        BLK 452 TH STOA PT 495 FT N OF SW COR THE

I .1      2 FT TH S 48 FT TH W 172 FT TOW LINE BLK 452
  Tl{ S TO A PT 495 FT N_ OF SW COR B_LK 457 TH E 92 FT

  ·ia S 67 FT TH N 89 DEG 38 MINE 109.45 FT TH S
    0.69 FT TH W 139 FT TH N 6.6 FT TH W 1.2 FT TH S
  36.83 FT TH W 6 FT TH S 87,17 FT TH W 61.8 FT TOW
  LINE BLK 457 TH S 250,6 FT TO SW COR BLK 457 'l1l E


I :'O SE COR BLK 459 TH NWLY ALONG WLY LINE BLK 438
' .U NW COR BLK 438 TH W TO BEG ALSO LOT 16 BLK 438
  EX PART USED FOR RR R/W BEING ENTIRE BLKS 451 458
  ;s9 & PARTS OF BLKS 4l8 452 457 ALSO VAC STRgETS &


I J.LE'lS IN SAME
             _j ~                                                                                                                                        ~
                                                     .,.._,5
                                                         •
                                       I
                                            I~
                                            ~

                                            "'


               ,
               &vw-1J•
                                       01   Ii                                           MAXIMUM PLUME BOUNDARY BASED
                                                                                          ON BIOPLUME MODELING USING
                                                                                         CONSERVATIVE INPUT PARAMETERS




                                                                                            PLUME BOUNDARY BASED ON ANALYTICAL
                                                                                                DATA FROM MONITORING WELLS
                                ~

                                r.:i
                                >
                                52                                                                                            LEGEND
                                Q
                                                                                                                   A    -     MONITORING WELL LOCATION
                                >-<
                                <
                                a=
                                                                       ()/'                                        t::,. -
                                                                                                                   0
                                                                                                                              DRY WELL LOCATION
                                                                                                                        -. PURGE WELL "LOCATION
                                <
                                r.:i
                                                                                                                   8
                                                                                                                   X -
                                                                                                                        - SVE WELL
                                                                                                                              ASW WELL
                                (/J                                                                    597.Q-- -              GROUNDWATER ELEVATION CONTOUR {FT)
                                ~

                                                                                                         -               -    GROUNDWATER FLOW OrRECTION
                                co
                                0,                                                a"
                                ~
                                 I
                                                                         '":!°'°'.       '-)/
                                                                   /    \
                                                                            ' '5''~-
                                                                                                             NOT[; ALL WELL 1..0CATIONS (XC[PT MW-1.3 AND
                                                               ,                                             MW-SA ARE .6ASE0 UPON DECEMBER 1998 SURVEY.



                                                                            .I....,_,,
                                                                                                                                                         .,,
                                                                                                                             "''         '"
                                                                                                                                    SCALE IN f'ECT        1907PLVMEBOUN
                                                                                                                                                               KOR:l10~02_

                                                                                                                                              flGURE 1
                                                  BRUNSWICK                                                         GROUNOWAT!:R CONTOUR MAP A$ MEASUR!:0
                   l..,l""-'l                    CORPORATION                                                                ON JANUARY 22, 2002
                                                                                                                       SHOWING ESTIMATED PLUME 90UNOAR!ES

                                                                                                                                           BRUNSWICK
EARTH®TECH                                                                                                                             MUSKEGON. MICHIGAN
                                                                                                                  ,.PF!li.. 200:2                                19U7.01
Date: September 28, 2004
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Audit Contract Extension


SUMMARY OF REQUEST: The contract for the city's annual audit is expired.
Because of the possibility that voters may approve changes to the city's fiscal year
this November, staff is recommending that the contract with the current independent
audit firm (Hoffman, Steensma & Plamondon) be extended through 12/31/04 and
through the potential stub-year period (6/30/05 or 9/30/05). This will provide much
needed continuity through a difficult transition. Waiting to bid out audit services will
have the added advantage (if the fiscal year is changed) of attracting more
competitive bids, since the current 12/31 year-end is unattractive to many CPA firms
because of tax preparation season. Typically audit contracts are awarded for a five-
year period so it is sensible to wait until we know what the future fiscal year-end will
be.

FINANCIAL IMPACT: Proposed cost for 12/31/04 audit - $34,000 which is the
same as for the 12/31/03 audit. Proposed cost for the stub-period audit -$26,000.

BUDGET ACTION REQUIRED: None at this time.                     The 2005 budget
incorporates funding for the 12/31/04 audit. If voters approve the fiscal year
proposals, the entire 2005 budget will need to be reforecast and restructured at a
later date.

STAFF RECOMMENDATION: Approval of the audit contract extension to cover
the 12/31/04 audit and the audit for the stub year, if the November ballot proposal is
approved by voters.

COMMITTEE RECOMMENDATION: None.




9/18/97                                                                                1
                             Jiojjman, Steensma & Pfamonclon, P.L.C.
                                      Certified Public Accountants and Consultants

ROGER E. HOFFMAN, C.PA                                                                DOUGLAS A. PLAMONDON. CPA
ROGER D. STEENSMA. CPA                                                                RANDY J. NOVOTNY. CPA




     September 14, 2004



     Mr. Tim Paul
     City of Muskegon ·
     933 Terrace Street
     Muskegon, Michigan 49443

     Dear Tim:

     We are pleased to propose on the audit of the fmancial statements and the federal
     awards for the year ending December 31, 2004 and for the six months ending June
     30, 2005.

     It is our understanding that the six months ending June 30, 2005 is subject to voter
     approval. In the event that the proposal to change year end is defeated, our audit
     contract will be for the year ending December 31, 2004 at a fee of $34,000.

     If we perform the June 30, 2005 audit, our fee will be $26,000.

     Our accounting hourly rate of $42 will be effective until September 30, 2005.

     If you have any questions, please contact me.

     Very truly yours,



     Douglas A. Plamondon




         22 1 W.WebsterAve .. Su ite502 · Muskegon. Ml 4 9440- 1243 · ( 2 3 1)728 -5176 · Fax(231)726-3530
Date: September 28, 2004
To: Honorable Mayor and City Commissioners
from:       Finance Director

RIE: Proposed Water Rate Increase


SUMMARY OF REQUEST: The City is in the midst of a $16.5 million renovation of the
water filtration plant. To fund these improvements, the city has borrowed $13.9 million from the
Drinking Water Revolving Fund (DWRF) and has committed other resources to the project. It is
necessary to raise water user fees significantly in order to cover debt service requirements associated
with the filtration project and to offset rapidly rising operational costs. staff is recommending that the
water user charge be raised from the current $1.09/hcfl to $1.40/hcfl effective January 1, 2005.

FINANCIAL IMPACT:                The following table shows how the rate increase will impact typical
residential households:


    Sample Users                  011arterlv Water Bill 011arterlv Water Bill
                                    Before Increase    After 01101/05 l11crease
    Using 7,500 gallons per
    month (1-2 person                 $32.70                   $42.00
    household)
    Using 15,000 gallons per
    month (3-4 person                 $65.40                   $84.00
    household)


As shown on the attached survey, Muskegon's residential water rates will continue to be below the
average for Michigan communities after implementation of the increase.

BUDGET ACTION REQUIRED: None al this lime. The 2005 water fund budget
incorporates the projected revenues from the rate increase

STAFF RECOMMENDATION:                          Approval of the attached resolution implementing the
proposed water rate increase.

COMMITTEE RECOMMENDATION:                              None.




9/18/97
                                   CITY OF MUSKEGON

                                  Resolution No. 2004-87(c)

                 A Resolution amending the general fee resolution of the City.

                                          RECITALS

              A review of the water rates has been undertaken by staff and consultants, City
              staff recommends and City commission has detennined that an increase in the
              rates for water service is justified in the opinion of the City Commission.

       THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION:

       1.     For service provided after January 1, 2005, the rate for water shall be changed
              from $1.09 per hundred cubic feet to $1 .40 per hundred cubic feet.

       This resolution passed.

              Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, Carter

              Nays: None

                                                           CITY OF MUSKEGO~

                                                           By      ~Q.
                                                                Gail A. Kundinger,Clerk
                                                                                                ~,.:_,
                                       CERTIFICATE

       This resolution was adopted at a meeting of the City Commission, held on September 28,
2004. 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.
                                           Typical Monthly Water Bill
                                    Ranked from Lowest (1) to Highest (57)
                            Residential Customers - 15,000 Gallons Usage Per Month
                                 (Bold Type Indicates Local Area Communities)
                                                                                                  Water
Community                                                                                          Bill    Rank

Allen Park                                                                                        31.84       36
Ann Arbor                                                                                         35.46       42
 Battle Creek                                                                                     26.00       21
Ba Cit                                                                                            37.60       47
Bloomfield Township                                                                               37.50       46
Burton                                                                                            44.40       55
Canton                                                                                            30.00       28
Chesterfield Township                                                                             22.67         9
Clinton Township                                                                                  24.60       16
Dearborn                                                                                          23.52        12
Detroit                                                                                           24.82        18
East Lansing                                                                                      39.05       49
Eastpointe                                                                                        29.80       27
Farmington Hills                                                                                  36.55       44
Flint                                                                                             53.78       60
Fruitport Township                                                                                37.00       45
Garden City                                                                                       34.09       39
Georgetown Township                                                                               17.50         3
Grand Blanc Township                                                                              43.40       54
Grand Haven                                                                                       22.35         8
Grand Rapids                                                                                      34.79       40
Holland                                                                                           18.95         4
Holland Township                                                                                  25.25       20
Independence Township                                                                             24.33       15
Jackson                                                                                           40.55       51
Kalamazoo                                                                                         21.42         6
Kentwood                                                                                          40.84       53
Lansing                                                                                           38.28       48
Livonia                                                                                           30.38       29
Macomb Township                                                                                   24.70       17
Midland                                                                                           24.00       14
Montague                                                                                          30.89       33
Muskegon (Proposed Rate Effective 1/1/05)                                                         28.00       24
Muskegon (Rate Effective 1/1/04)                                                                  21.80         7
Muskegon Heights                                                                                  22.79       10
Muskegon Township                                                                                 46.00       57
North Muskegon                                                                                    51.33       59
Norton Shores                                                                                     30.72       31
Novi                                                                                              40.41       50
Oak Park                                                                                          36.17       43
Plymouth Township                                                                                 33.10       38
Port Huron                                                                                        23.21       11
Rochester Hills                                                                                   40.65       52
Roosevelt Park                                                                                    48.06       58
Royal Oak                                                                                         27.00       22
Sa inaw                                                                                           12.95         1
Saginaw Township                                                                                  31.21       34
Shelby Township                                                                                   44.55       56
Southfield                                                                                        31.92       37
Southgate                                                                                         30.60       30
Sterling Heights                                                                                  19.03         5
Ta lor                                                                                            23.66       13
Tro                                                                                               30.80       32
Walker                                                                                            35.43       41
Warren                                                                                            27.90       23
Waterford Township                                                                                13.33         2
Westland                                                                                          31.35       35
Whitehall                                                                                         28.35       26
Wyoming                                                                                           25.07       19
Ypsilanti Township                                                                                28.22       25

Average                                                                                          $31.17
Median                                                                                           $30.66

Note: Assumes 15,000 gallons (or 1,000 cubic feet) monthly usage and a 5/8" (or nearest equivalent) meter size.


Source: April 2003 Michigan Water/Wastewater Rate Survey conducted by
Black & Veatch Corporation, Management Consulting Division and
supplemented by local area survey as of August 2004.
                                   Table 11
                       Projected Water Rate Calculations

           CITY:                                     2004     2005
           Commodity Charge Per 100 cubic Feet=
           (Expenses Allocated to All
           Customers/Total Equivalent Billable
           Flow) x 1.00                                1.09     1.40

           MUSKEGON COUNTY NORTHSIDE:
           1,;ommodity Charge Per 100 Cubic Feet =
           (Expenses Allocated to All
           Customers/Total Equivalent Billable
           Flow) x 1.25                                1.36     1.75

           ROOSEVELT PARK:
           vommodity Charge Per 100 Cubic Feet=
           (Expenses Allocated to All
           Customers/Total Equivalent Billable
           Flow) x 1.35                                1.47     1.89

           NORTH MUSKEGON:
           vommodity Charge Per 100 Cuo1c Feet=
           (Expenses Allocated to All
           Customers/Total Equivalent Billable
           Flow) x 1.35                                1.47     1.89

           MUSKEGON TOWNSHIP:
           Base Commodity Charge Per ·1uu 1,;ubic
           Feet= (Expenses Allocated to All
           Customers/Total Equivalent Billable
           Flow) x 1.35                                1.47     1.89

           NORTON SHORES:
           vommodity Charge Per 100 1,;ubic Feet=
           (Expenses Allocated to All
           Customers/Total Equivalent Billable
           Flow)x 2.00                                 2.18     2.80

           MISC. OUTSIDE:
           Commodity Charge Per 100 Cuo1c Feet=
           (Expenses Allocated to All
           Customers/Total Equivalent Billable
           Flow) x 1.50                                1.64     2.10




0482.034                  Muskegon Water Rate Study                    9/22/2004 10:41 AM
                                                                                                      Table 12
                                                                                               Water System Revenues

                                               2000                       2001               2002         I     2003         I
                                                                                                                             i             2004            2004
        591 WATER FUND                       (Actual)                   (Actual)           (Actual)       i   (Actual)                   (Budget)        (RevEst)            2005                 2006             2007
                                                                I
Revenues                                                                                                  i


Special Assessments                                     -                          -                  -                  -                          -.              -                -                   -                 -
EDA Grant Seaway Ind Park                               -                          -                  -                  -                          -               -                -                   -                 -
State Grant Shoreline Drive                             -                          -                  -                  - i                        -               -                -                   -                 -
State Shared Revenue                                    -       i                  -                  -   '
                                                                                                                         -                          -               -                -   .               -                 -
Charges: City (2000, 2001            i


included all customers; 2002 Rev
Est, 2003 Budget included all                                                                             I
except Muskegon Twp)                         3,531,540                  3,980,059          4,084,612          3,876,432                  3,031,197,      3,031,197          3,932,214            3,971,536 '       4,011,251
Charges: Muskegon County
Northside                                                                                                                        i         243,748         243,748            319,333             325,719           332,234
Charges: Roosevelt Park                                                                                                                    350,970         350,970            455,295 .           459,848 !         464,446
Charges: North Muskegon                                         i
                                                                                                                                           466,123         466,123            604,677             610,724           616,831
Charges: Muskegon Township                              -'                         -                  -                  -                 472,700         472,700            607,137             607,137           607,137
                                                                                                                                                                        i
Muskegon Town ship Contract
Operations Income                                       -                          -                  -                  -                 200,000         200,000            200,000 ,           200,000           200,000
Charges: Norton Shores                                                                                                                       8,947'          8,947             11,606              11,723            11,s4if
Charges: Misc. Outside                                  -                          -                  -                  -                   1,465           1,465              1,901               1,920             1,939
Hydrant Rental - Muskegon Twp            i
                                                        -                          -                  -                  -       i
                                                                                                                                                    -               -                -                    -                -
Project Reimbursements                                  -                          -                  -                  -                          -      800,000            300,000 ,                   -                -
Interest Income•                              320,696                    230,864              84,467             51,889                     51,889          51,889             51,889               51,889            51,889
~             .
Operating Transfers In                                      -            454,812                      -                  -                          -               -                -                    -                -
Other (NEW BOND ISSUANCE)                       84,101                    52,184                      -         6!0,425 I 10,700,000                     11,000,000 '        2,900,000                    -                -
                          Subtotal           3,936,337                  4,717,919          4,169,079          4,598,746          1
                                                                                                                                         15,527,039      16,627,039          9,384,051           6,240,495         6,297,567
                                                                                                                                                                                                              i       ---·~

Expenditures                        4,047,743 5,629,540                                    5,050,939          5,365,942                  17,219,705 I 18,104,349            10,040,711           6,046,181         6,138,196
Available Cash Balance, Beginning                                                      I
of Year**                           6,094,347 ' 5,982,941                                  5,071,320          4,189,460                   3,422,264       3,422,264          2,444,954           1,788,295         1,982,609
Transfer from Cash Balance ••     !
                                      111,406     911,621                                    881,860            767,196              1    1,692,666         977,310 !          656,660       !    (194,314)         (159,371)
Available Cash Balan"i:e, End of ~
Year                                5,982,941 5,071,320                                    4,189,460          3,422,264                   1,729,598       2,444,954          1,788,295           1,982,609         2,141,979
                                                                                       '
                                                                    i


        •• Amount for 2004 - 2007:              51,889 l                               I                                                                                                                       '
                                                                                                                                     '




                                                                                              Muskegon Water Rate Study
0482.034                                                                                                                                                                                                 9/20/2004 1:27 PM
To:            Mayor and City Commission

From:          Commissioner Clara Shepherd

Date:          September 28, 2004

RE:            Travel Assistance to NLC Congress of Cities Conference



I am requesting assistance with costs associated with attendance at the NLC Conference
held in Indianapolis, Indiana from November 30 through December 4'\ 2004. I serve on
the NLC Community and Economic Policy Committee. This conference will deal with
CDBG Funding and the HOME program and land use.

Cost for the registration is $415.00 and hotel costs will be approximately $450. Ifmy
fellow commissioners would please authorize city payment for the registration and half of
the hotel, I will be picking up costs associated with travel, food, and half of the hotel.

I have spent much of my own money to travel for the benefit of the city at other
conferences and have brought back material that is helpful to our city. I also have paid
all expenses for travel to meetings for Michigan Municipal League Board, representing
our city.

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