City Commission Packet 04-23-2002

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                 CITY OF MUSKEGON
                 CITY COMMISSION MEETING
                               APRIL 23, 2002
          CITY COMMISSION CHAMBERS@ 5:30                           P.M.


                                      AGENDA

•   CALL TO ORDER:
•   PRAYER:
•   PLEDGE OF ALLEGIANCE:
•   ROLL CALL:
•   HONORS AND AWARDS:
•   PRESENTATIONS:
•   CONSENT AGENDA:
                 a. Approval of Minutes. CITY CLERK
                 b. Lighthouse Acres - Coast Guard License. LEISURE SERVICES
                 c. First Reading - Zoning Ordinance Amendment to allow Wireless
                    Communication Antennas to extend 30' above the structure to
                    which they are attached. PLANNING & ECONOMIC DEVELOPMENT
                 d. First Reading - Zoning Ordinance Amendment to allow signage for
                    Legal Businesses located in Residential Districts PLANNING &
                    ECONOMIC DEVELOPMENT
                 e. Budgeted Vehicle Purchases. DPW
                 f.   First Reading. Zoning Ordinance Amendment to Require Minimum
                      Floor Sizes for Apartment Units.    PLANNING & ECONOMIC
                      DEVELOPMENT
                 g. Set Public Hearing Date for Smartzone LDFA Plan.   PLANNING &
                    ECONOMIC DEVELOPMENT
                 h. Set Public Hearing Date for Seaway Business Park LDFA Plan.
                    PLANNING & ECONOMIC DEVELOPMENT
                      City - MDOT Agreement for Roberts Street. Keating to Laketon.
                      ENGINEERING
                 j.   Grant Request - Michigan Council for Arts and Cultural
                      Affairs/Muskegon County Museum. PLANNING & ECONOMIC
                      DEVELOPMENT
•   PUBLIC HEARINGS:
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o UNFINISHED BUSINESS:
o NEW BUSINESS:
                       a. First Quarter 2002 Budget Reforecast. FINANCE
                       b. Cemetery Building Renovations LEISURE SERVICES
                       c. First Reading - General Employees Retirement System. ASSISTANT
                          CITY MANAGER
                       d. Approval of Muskegon Lakeshore Smartzone                                       Agreement.
                          PLANNING & ECONOMIC DEVELOPMENT
                       e. CMI Brownfield Redevelopment Grant                                   Smartzone   Property.
                          PLANNIING & ECONOMIC DEVELOPMENT
                      f.   Approval of Contractor for completion of Rehabilitation of structure
                           at 1838 Jarman. COMMUNITY & NEIGHBORHOOD SERVICES
                      g. Award   Construction                      Engineer           Services/Shoreline      Drive.
                         ENGINEERING
o ANY OTHER BUSINESS:
o PUBLIC PARTICIPATION:
o CLOSED SESSION:
•   Reminder: Individuals who would like to address the City Commission shall do the following:
•   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 1O 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 CJTY 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:      April 23, 2002
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 City
Commission Worksession that was held on Monday, April 8, 2002, and
the Regular Commission Meeting that was held on Tuesday, April 9,
2002.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                        APRIL 23, 2002
    CITY COMMISSION CHAMBERS                         @   5:30 P.M.
                               MINUTES

   The Regular Commission Meeting of the City of Muskegon was held at City of
Muskegon was held at the City Hall, 933 Terrace Street, Muskegon, Michigan at
5:30pm, Tuesday April 23, 2002.
  Mayor Warmington opened the meeting with a prayer from Commissioner
Shepherd, after which members of the City Commission and members of the
public joined in reciting the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
   Present: Mayor Stephen Warmington; Vice-Mayor Karen Buie: Commissioners
Stephen Gawron, William Larson, Robert Schweifler, Clara Shepherd and
Lawrence Spataro; City Manager Bryon Mazade, Assistant City Attorney John
Schrier and City Clerk Gail Kundinger.
2002-51 CONSENT AGENDA:
              a. Approval of Minutes. CITY CLERK
  SUMMARY OF REQUEST: To approve the minutes of the City Commission
  Worksession that was held on Monday, April 8, 2002, and the Regular
  Commission meeting that was held on Tuesday, April 9, 2002.
  FINANCIAL IMPACT: None
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: Approval of the minutes.
              b. Lighthouse Acres - Coast Guard License. LEISURE SERVICES
  SUMMARY OF REQUEST: To sign a license agreement with the coast Guard for
  the use of Lighthouse acre as a park for five years.
  FINANCIAL IMPACT: None
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: Approve
  COMMITTEE RECOMMENDATION: Leisure Services Board Recommends
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve purchase of budgeted replacements for
a total cost of $85895.20 using Oakland County Purchasing.
             f. FIRST READING. Zoning Ordinance Amendment to Require
                Minimum Floor Sizes for Apartment Units. PLANNING &
                ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2319 (Residential Design
Criteria) of Article XXIII (General Provisions) of the City's Zoning Ordinance to
require minimum floor sizes for apartment units.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends amendment of the Zoning
Ordinance to change the proposed language in the article and section
described above.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their 4/11 meeting, with P. Veltkamp, M.
Kleaveland, and J. Aslakson absent.
             g. Set Public Hearing Date for Smartzone LDFA Plan. PLANNING
                & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: to set the public hearing date for the Muskegon
Lakeshore Smartzone LDFA Development and Tax Increment Financing Plan.
FINANCIAL IMPACT: No direct impact. However, LDFA funds will be used to
finance projects within the district boundaries.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends a public hearing be set for
May 14, 2002.
COMMITTEE RECOMMENDATION: The LDFA board will meet on April 22, 2002
to review the plan.
            h. Set Public Hearing Date for Seaway Business Park LDFA Plan.
                PLANNING & ECONOMIC DEVELOPMENT
STAFF RECOMMENDATION: To set the public hearing date for the Seaway
Business Park LDFA Development and Tax Increment Financing Plan.
FINANCIAL IMPACT: No direct impact. However, LDFA funds will be used to
finance projects within the district boundaries.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends a public hearing be set for
   May 14, 2002.
   COMMITTEE RECOMMENDATION: The LDFA board will meet on April 22, 2002
   to review the plan.
               i. City - MOOT Agreement for Roberts Street. Keating to Laketon.
                    ENGINEERING
   SUMMARY OF REQUEST: To approve the contract with MOOT for the milling &
   resurfacing of Roberts Street from Keating to Laketon and to approve the
   resolution authorizing the Mayor and City Clerk to sign the contract.
   FINANCIAL IMPACT: MOOT participation is about $79,600 but not to exceed
   81.85% of eligible cost. The estimated total (including engineering) cost of
   the project is $120,000.
   BUDGET ACTION REQUIRED: None a this time. The City's share of the cost will
   come out of the Major Street Fund as was budgeted.
   STAFF RECOMMENDATION: That the agreement and resolution be approved.
   COMMITTEE RECOMMENDATION:
               j.   Grant Request - Michigan Council for Arts and Cultural
                    Affairs/Muskegon County Museum. PLANNING & ECONOMIC
                    DEVELOPMENT
   SUMMARY OF REQUEST: To authorize a grant request to the Michigan Council
   for Arts and Cultural Affairs (MCACA) on behalf of the Muskegon County
   Museum in the amount of $100,000. The request is for the renovation of
   Zemke House on Clay Avenue.
   FINANCIAL IMPACT: None. Match requirements and other funding will come
   from the Muskegon County Museum.
   BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: To approve the request.
   COMMITTEE RECOMMENDATION: None
     Motion by Vice-Mayor Buie, second by Commissioner Shepherd to
   approve the Consent Agenda.
      ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro,
                 Warmington, Buie.
                    Nays: None
  MOTION PASSED
2002-52 NEW BUSINESS:
               a. First Quarter 2002 Budget Reforecast. FINANCE
SUMMARY OF AREQUEST: At this time staff is transmitting the First Quarter 2002
Budget Reforecast which outlines proposed changes to the original budget
that have come about as result of changes in policy priorities, labor
contracts, updated information, or other factors. For the next meeting, an
action item will be placed on the agenda for adoption of the proposed first
quarter budget reforecast together with any additional changes deemed
necessary by Commissioners.
FINANCIAL IMPACT: Not surprisingly, the first quarter 2002 Budget Reforecast
reflects a falloff in expected general fund revenues due to the economy.
Significant adjustments have been made in the areas of city income tax,
state shared revenues and interest income. Helping offset these losses are
stronger than expected building permit revenues and income tax penalties.
General fund expenditures are expected to be slightly less than originally
anticipated. This is due primarily to: 1) the elimination of the community
Center Design capital item based on recent Commission goal prioritization
and, 2) the elimination of the scheduled Budget Stabilization fund transfer
because the City was able to fund this item in 2001 . Offsetting these
positives, however, are higher than anticipated insurance and legal service
costs. Also, on a positive note, we're pleased to report that healthcare costs
will remain within budget expectations based on the recent selection of
Priority Health.
BUDGET ACTION REQUIRED: Self-explanatory.
STAFF RECOMMENDATION: The City Commission should review the Reforecast
to ensure it reflects their policy initiatives. At the next City Commission
meeting, staff will request formal approval of the Reforecast and related
budget amendment.
COMMITTEE RECOMMENDATION: There is no committee recommendation at
this time.
   No action taken at this time.
            b. Cemetery Building Renovations. LEISURE SERVICES
SUMMARY OF REQUEST: To award a contract to VanderVen Construction for
the interior renovations to the Cemetery office.
FINANCIAL IMPACT: $81,634
BUDGET ACTION REQUIRED: $70,000 is budgeted, so an additional $15,000
needs to be added to the budget, which includes the architects fees.
STAFF RECOMMENDATION: Approve
COMMITTEE RECOMMENDATIN:
  Motion by Commissioner Larson, second by Commissioner Gawron to
accept the bid and award the contract to VanderVen Construction.
   ROLL VOTE: Ayes: Schweifler, Shepherd,      Spataro,   Warmington,   Buie,
              Gawron, Larson.
               Nays: None
   MOTION PASSED
            c. FIRST READING - General Employees Retirement System.
               ASSISTANT CITY MANAGER
SUMMARY OF REQUEST: Ordinance to be adopted by the City Commission
concerning changes relating to DPW and Leisure Services union employees.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: to adopt changes relating to DPW and Leisure
Services union employees concerning the General Employees Retirement
System as amended.
*Previously discussed with contract settlement. contract adopted February
2002.
COMMITTEE RECOMMENDATION:
  Motion by Commissioner Spataro, second by Commissioner Schweifler to
adopt the changes relating to DPW and Leisure Services union employees
concerning the General Employees Retirement System as amended.
   ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Buie, Gawron, Larson,
              Schweifler.
               Nays: None
MOTION PASSED
            d. Approval of Muskegon Lakeshore Smartzone Agreement.
               PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: In order to proceed with the Smartzone project, an
agreement between the Michigan Economic Development Corporation
(MEDC), Grand Valley State University (GVSU), the City of Muskegon and the
Muskegon Local Development Finance Authority (LDFA) is necessary. The
Agreement outlines the rights and obligations of all parties. Therefore, the
Commission is requested to approve the Agreement.
FINANCIAL IMPACT: No direct impact, although LDFA funds are pledged for
the development of the Business incubator.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Muskegon Lakeshore Smartzone
Agreement and authorize the Mayor to sign.
COMMITTEE RECOMMENDATION: The LDFA will be meeting on April 22 to
approve the Agreement.
  Motion by Commissioner Schweifler, second by Commissioner Gawron to
approve the Muskegon Lakeshore Smartzone Agreement with supporting
documents and authorize the Mayor to sign.
   ROLL VOTE: Ayes: Spataro, Warmington, Buie, Gawron, Larson, Schweifler,
              Shepherd.
               Nays: None
MOTION PASSED
           e. CMI Brownfield Redevelopment Grant Smartzone Property.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Anne Couture is working with Lakefront LLC to secure
a CM! Brownfield Redevelopment Grant from the Michigan Department of
Environmental Quality. Although Lakefront LLC is contracting with Ms.
Couture for the grant preparation, the City of Muskegon must approve the
resolution applying for the grant funds.
FINANCIAL IMPACT: If approved for the grant, the funds will be used to cover
the costs of environmental remediation on the site which is not currently
covered by the current owner and other grant and private funds. The
amount being applied for is up to $1 Million.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign.
COMMITTEE RECOMMENDATION: None
  Motion by Commissioner Schweifler, second by Commissioner Larson to
approve the resolution and authorize the Mayor and Clerk to sign.
   ROLL VOTE: Ayes: Buie, Gawron, Larson, Schweifler, Shepherd, Spataro,
              Warmington.
               Nays: None
MOTION PASSED
            f. Approval of Contractor for completion of Rehabilitation of
            structure at 1838 Jarman. COMMUNITY & NEIGHBORHOOD
            SERVICES
SUMMARY OF REQUEST: To approve the contract with Holden Construction of
Muskegon for the completion of the rehabilitation of 1838 Jarman for Thirty
Thousand Nine Hundred Twenty ($30,920). The structure was obtained by the
City of Muskegon through the "Good Neighbor Program" from the U.S.
Department of Housing and Urban Development for the total cost of one
dollar($1.00). The Lead Base Paint Abatement has been completed, after
the final rehabilitation is completed the property will be sold to a qualified
family in accord with the City's neighborhood revitalization efforts.
FINANCIAL IMPACT: The funding for this project will be taken from the City's
HOME funds from fiscal year 2001.
BUDGET ACTION REQUIRED: None required.
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services selection.
COMMITTEE RECOMMENDATION: The Commission previously approved the
Lead Base Paint Abatement for this project.
   Motion by Commissioner Spataro, second by Commissioner Schweifler to
approve the contract with Holden Construction of Muskegon for $30,920 for
rehabilitation of 1838 Jarman.
   ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro,
              Warmington, Buie.
                Nays: None
            g. Award Construction Engineer Services/ Shoreline Drive.
            ENGINEERING
SUMMARY OF REQUEST: To enter into a construction engineering services
agreement with Fleis & Vandenbrink to perform the necessary plans review,
construction inspection, construction staking and testing. Furthermore, it is
requested that the award be contingent upon the successful execution of
the funding agreements between the City & MOOT.
We are anticipating the arrival of a costed proposal from Fleis & Vandenbrink
prior to the 23 of April. Upon receiving that proposal we will present you with
the information during the meeting.
Fleis & Vandenbrink is being recommended as a result of reviewing the
uncosted proposal as well as the interviews that included FTC&H and V3
consulting.
FINANCIAL IMPACT: The cost for the engineering services would be from the
grant to construct Shoreline Dr.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Enter into an engineering agreement with Fleis &
Vandenbrink Engineering.
   Motion by Commissioner Larson, second by Commissioner Schweifler to
/

       enter into an engineering agreement with Fleis & Vandenbrink Engineering.
          ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington,
                     Buie, Gawron.
                      Nays: None
       MOTION PASSED


    2002-53 ANY OTHER BUSINESS:
       An overview report was given by City Manager Bryon Mazade on Van's Car
       Wash.
    2002-54 PUBLIC PARTICIPATION:
       Various comments were heard from the public.
    2002-55 CLOSED SESSION: To discuss property acquisition.
          Motion by Commissioner Spataro, second by Commissioner Schweifler to
       close session at 6:43pm to discuss property acquisition.
          ROLL VOTE: Ayes: Schweifler,   Shepherd,    Spataro,    Warmington,   Buie,
                     Gawron, Larson.
                      Nays: None
         MOTION PASSED
         Motion by Commissioner Schweifler, second by Commissioner Spataro to
      return to open session at B:07pm.
         ROLL VOTE: Ayes: Spataro, Warmington, Buie, Gawron, Larson Schweifler
                      Nays: None
                     Absent: Shepherd
      ADJOURNMENT: The Regular Commission Meeting for the City of Muskegon
    was adjourned at 8:08pm.
                                                     Respectfully submitted,




                                                     Gail Kundinger, CMC/ AAE
                                                     City Clerk
Date:     April 1 O, 2002
To:       Honorable M~ayorand City Commissioners
From:     RicScott      t
                        1
                            (/-
RE:       Coast Guard License.


SUMMARY OF REQUEST:
To sign a license agreement with the Coast Guard for the
use of Lighthouse acre as a park for five years


FINANCIAL IMPACT:
None


BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Approve


COMMITTEE RECOMMENDATION:
Leisure Services Board Recommends approval
Affirmative Action
23 I /724-6703
FAX/722-1214

Assessor
23 I /724-6708
F AX/726-5181

Cemetery
23 I /724-6783
FAX/726-56 17

Civil Service
231/724-6716
F AX/724-4405                                       West MlchJgan's Shoreline CJty
C lerk
23 I /724-6705
FAX/724-4178
                      Date:         April 10, 2002
Comm. & Neigh,
   Senlces
231/724-6717
                      To:           Honorable M,,v~City Commissioners
FAX/726-2501
                      From:         Ric Scott       /yr/t-rY --
E ngineering
231 /724-6707         Re:           Coast Guard License
FAX/727-6904
                      Attached is a license agreement with the Coast Guard for
Finance
231/724-6713
                      the use of Lighthouse Acre as a park. This agreement is
FAX/724-6768          proposed to allow the city to use the park as we have
Fire Dept.            been until the property can go through the process of
231/724-6792          being determined to be excess property. At that point,
FAX/724-6985
                      the property would be given to the City.
I n come Tax
23 1/724-6770         I would ask that you authorize the Mayor sign the
FAX/724-6768
                      agreement.
Info. Systems
231/724-6744          The Leisure Services Board approved the license
FAX1722-4301
                      agreement at their meeting in April.
Leis ure Service
23 I /724-6704        Thank you for your consideration.
FAX/724-1196

Man ager's Office
23 l /724-6724
FAX/722-1214

Mayor's Office
231/724-6701
FAX/722-1214

Inspection Services
231 /724-6715
FAX/726- 2501

Planning/Zoning
231/724-6702
FAX/724-6790

Police Dept.
231/724-6750
FAX/722-5140

Public Works
231/724-4 100
FAX/722-4188

Treasurer
231/724-6720 .
FAX/724-6768

Water DIiiing Dept.
231/724-6718
l•AX/724-'   applies is:
~
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~

I
&
                   Commonly referred to as the former Teledyne site, with a common
;·                 address of700 Terrace. A legal description is attached.

~
~
;;

             Copies of the proposed Development and Tax Increment Financing Plan, maps, plats, etc.
      are on file at the office of the City Clerk for inspection during regular business hours.

             At the public hearing, all interested persons desiring to address the City Commission
      shall be afforded an opportunity to be heard in regard to the approval of the Development and
      Tax Increment Financing Plan for the Local Development Finance Authority of the City of
      Muskegon. All aspects of the of the Development and Tax Increment Financing Plan will be
      open for discussion at the public hearing.

            FURTHER INFORMATION may be obtained from the City Clerk.

            This notice is given by order of the City Commission of the City ofMuskegon, Michigan.


                                             Gail Kundinger
                                             City Clerk




                                                  -3-
              5.     All resolutions and paiis of resolutions insofar as they conflict with the provisions
      of this resolution be and the same hereby are rescinded.

      AYES:               Commissioners     Gawron, Larson I Schweifler I Shepherd I Spataro.

                              Warmington, and Buie

      NAYS:               Commissioners - -None
                                           = - = = = - - - - - - - - - - - -- -- - - - - -

      RESOLUTION DECLARED ADOPTED.



                                                      Rw- a L~~
                                                              (fCity Clerk

             I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
ti
ii!   the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a
~     regular meeting held on April 23, 2002, and that said meeting was conducted and public notice
~     of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being
;::   Act 267, Public Acts of Michigan, 1976, as amended, and that the minutes of said meeting were
8
a     kept and will be or have been made available as required by ~ai_rct.

                                                                   ~
I
'
                                                     ~ qify         Clerk        ~




      DELIB:2314385. 1\063684-00031




                                                        -4-
                                                                                                                      -
              RIESENGA&                                                                             Engineering
          ASSOCIATES, INC.                                                                             Surveying

                                                                                                          Testing


       Teledyne Property being purchased by Lakefront Development, LLC

       Part of Blocks 554 and 558 of the Revised Plat of the City of Muskegon, as recorded in Liber 3 of
       Plats, Page 71, Muskegon County Records, described as follows: COJ\l!MENCING at the most
       Southerly comer of Block 556 of said plat; thence North 62 degrees 44 minutes 00 seconds West
       1248.69 feet along the Northerly line ofTerrace Street extended; thence Westerly 269.86 feet along
       said Northerly line on a 302.48 foot radius curve to the left, the chord of which bears North 88
       degrees 17 minutes 30 seconds West 261.00 feet; thence North 46 degrees 09 minutes 15 seconds
       West 85.84 feet along the line between Lots 5 and 6 of said Block 558 to the TRUE PLACE OF
       BEGINNING, said point being on the Northerly line of that .parcel of land taken by the City of
       Muskegon for the construction of Shoreline Drive, a pedestrian walkway and the relocation of the
       railroad right of way, (said Northerly line being described in Schedule A attached to City of
       Muskegon Resolution No. 98-87(f) and adopted by the City Commission on July 28, 1998); thence
       continuing along said line between Lots 5 and 6 of said Block 558, North 46 degrees 09 minutes 15
       seconds West 448.41 feet; thence North 27 degrees 25 minutes 55 seconds East 850;00 feet to an
       intermediate traverse line along the shore of Muskegon Lake, said point being called "A", (said point
       "A" being approximately 85' from the waters edge of Muskegon Lake; (the following eight (8) calls
       being along said intermediate traverse line) thence South 65 degrees 45 minutes 16 seconds East
       874.97 feet; thence North 26 degrees 49 minutes 35 seconds East 136. 75 feet; thence South 63
       degrees 46 minutes 08 seconds East 283. 79 feet; thence North 29 degrees 04 minutes 15 seconds
       East 189.14 feet; thence South 60 degrees 19 minutes 21 seconds East 182.84 feet; thence South 26
       degrees 40 minutes 26 seconds East 320.52 feet; thence North 86 degrees 15 minutes 34 seconds
       East 281.56 feet; thence South 50 degrees 57 minutes 54 seconds East 490.90 feet to a point on the
       Northerly line of said parcel taken by the City, said point being called "B''; thence Northeasterly
       131.86 feet, along a 1272.34 foot radius curve to the left, the chord of which bears North 70 degrees
       5 8 minutes 46 seconds East 131.80 feet to the Northeasterly line of said Block 554; thence Northwest
       along said Northeasterly line to the waters edge of Muskegon Lake; thence recommencing at said
       point ''B"(the following seven (7) calls being along the Northerly line of said parcel taken by the
       City), thence Southwesterly 416.86 feet, along a 1272.34 foot radius curve to the right, the chord of
       which bears South 83 degrees 20 minutes 04 seconds West 415.00 feet; thence North 87 degrees 16
       minutes 46 seconds West 904.15 feet; thence North 02 degrees 43 minutes 14 seconds East 55.00
       feet; thence North 87 degrees 16 minutes 46 seconds West 120.00 feet; thence South 02 degrees 43
       minutes 14 seconds West 55.00 feet; thence North 87 degrees 16 minutes 46 seconds West. 222.59
       feet; thence Southwesterly 635.15 feet, along a 803.25 foot radius curve to the left, the chord of
       which bears South 70 degrees 04 minutes 05 seconds West 618.73 feet to the place of beginning.
       Together with all lands lying between the intermediate traverse line and the waters edge ofMuskegon
       Lake and the Northeasterly line of said Block 554. Containing 34,2 acres more or less. Together with
       and subject to easements of record.




D 570 East 16th Street, Suite 400         D 3522 Roger B. Chaffee                     " 11 3 West Savidge Street
  Holland, Michigan 49423                   Grand Rapids, Michigan 48548                Spring Lake, Michigan 49456
  Ph. (616] 396-0255                        Ph. (616) 245-5710                          Ph. (616] 846-1960     ·-
  Fax (616] 396-0100                        Fax (616] 245-5725                          Fax (616] 846-9655
          Commission Meeting Date: April 23, 2002




Date:     April 15, 2002
To:       Honorable Mayor & City Commission
                                                             r    LC,
From:     Planning & Economic Development Department u.1
RE:       Public Hearing Date for Seaway Business Park
          LDFA Plan


SUMMARY OF REQUEST: To set the public hearing date for the
Seaway Business Park LDFA Development and Tax Increment
Financing Plan



FINANCIAL IMPACT: No direct impact. However, LDFA funds will be
used to finance projects within the district boundaries.



BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Staff recommends a public hearing be
set for May 14, 2002.


COMMITTEE RECOMMENDATION: The LDFA board will meet on April
22, 2002 to review the plan.
                               NOTICE OF PUBLIC HEARING

                                CITY OF MUSKEGON
                           COUNTY OF MUSKEGON, MICHIGAN


                            ON THE ADOPTION OF THE
               DEVELOPMENT AND TAX INCREMENT FINANCING PLAN
                                    FOR THE
                             SEAWAY BUSINESS PARK
               DISTRICT 4 LOCAL DEVELOPMENT FINANCE AUTHORITY



TO ALL INTERESTED PERSONS:

        PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Michigan,
will hold a public hearing on Tuesday, the 14th day of May, 2002 at 5:30 o'clock, p.m., Eastern
Time, in the City Hall, 933 Terrace Street, Muskegon, Michigan, to consider the adoption of a
resolution adopting the Development and Tax Increment Financing Plan for the Seaway Business
Park, District 4 Local Development Financing Authority pursuant to the, Local Development
Financing Authority Act, Act 281 of the Public Acts of Michigan of 1986, as amended.

The boundaries of the district within which the local development finance authority shall
exercise its powers are as follows:

That part of the Southeast¼ of the Northwest¼, Section 31, Town 10 North, Range 16 West,
City of Muskegon, Muskegon County, Michigan, bounded by Park Street on the East, Hackley
Avenue on the South, Seaway Drive on the West, and Young Avenue on the North.

Maps, plats, and a description of the development plan, including the method of relocating
families and individuals who may be displaced from the area, are available for public inspection
at the office of the City Clerk, City Hall, 933 Terrace Street, Muskegon, MI. All aspects of the
Development Plan will be open for discussion at the public hearing.

At the public hearing, any taxing entity affected by the capture of tax increment revenue and any
interested persons desiring to address the City Commission shall be afforded the opportunity.
Written comments may be filed at any time before or during the hearing with the City Clerk, and
shall be received and considered before and at the hearing.


       FURTHER INFORMATION may be obtained from the City Manager at (231) 724-6724.


This notice given by the order of the City Commission of the City of Muskegon, Michigan.
                                                 Clerk, City of Muskegon


Publish - two times, once on April 24th, in the Muskegon Chronicle, being 20 days before the
hearing, and again on a date before the hearing.

Mail to all taxing jurisdictions.

Retain affidavits of mailing and publishing.
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                                                                                                                                 s
Date:         April 23, 2002
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City - MOOT Agreement for:
              Roberts Street, Keating to Laketon




SUMMARY OF REQUEST:
To approve the attached contract with MOOT for the milling & resurfacing of Roberts
Street from Keating to Laketon and to approve the attached resolution authorizing the
Mayor and City Clerk to sign the contract.



FINANCIAL IMPACT:
MOOT participation is about $79,600 but not to exceed 81.85% of eligible cost. The
estimated total (including engineering) cost of the project is $120,000.



BUDGET ACTION REQUIRED:
None at this time. The City's share of the cost will come out of the Major Street
Fund as was budgeted.



STAFF RECOMMENDATION:
That the attached agreement and resolution be approved.



COMMITTEE RECOMMENDATION:
                                     RESOLUTION 2002- 5 1 ( i )


RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE MILLING &
RESURFACING OF ROBERTS FROM KEATING TO LAKETON TOGETHER WITH NECESSARY
RELATED WORK AND AUTHORIZATION FOR MAYOR STEPHEN J. WARMINGTON AND CITY
CLERK GAIL A KUNDINGER TO EXECUTE SAID CONTRACT

Moved by       Vice Mayor Bui e                            and supported by

Commissioner ·      She Qhe rd                  that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 02-5121 between the Michigan
Department of Transportation and the City of Muskegon for the resurfacing & widening of the
southbound exit ramp at US-31 and Sherman Blvd. within the City is in the best interests of the City of
Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 02-5121 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.



Adopted this     23rd       day of     April     , 2002.




                                         ATTEST       L 0, 4
                                                    Gail A. Kundinger, City Clerk



                                         CERTIFI CATI ON

This resolution was adopted at a meeting of the City' Commission, held on
 April 23      , 2002. 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.
                                                       STATE OF MICHIGAN
    JOHN ENGLER                           DEPARTMENT OF TRANSPORTATION                                  GREGORY J. ROSINE
         GOVERNOR                                            LANSING                                         DIRECTOR




                                                          May 7, 2002



          Ms. Gail Kundinger, Clerk
          City of Muskegon
          933 Terrace Street, P.O. Box 536
          Muskegon, Ml 49443-0536

          Dear Ms. Kundinger:

         RE:        MDOT Contract Number:            02-5121
                    Control Section:                STU 61407
                    Job Number:                     49971


         Enclosed is a fully executed copy of the above noted agreement.

                                                                     Sincerely,

                                                                    ~·~
                                                                     Jackie Burch
                                                                     Contract Processing Specialist
                                                                     Design Division

         Enclosure

         cc:        D. Needham, Design Division
                    A. Christensen, Financial Operations Division
                    Grand Region Engineer




                             MURRAY D. VAN WAGONER BUILDING• P.O. BOX 30050 • LANSING, MICHIGAN 48909
                                                www.':.'ichfgan.gov • (517) 373-2090
LH-LAN-0(11/01)
  , ___ -----            _!




 STP                                                                DIR
                                                             Project            . STP 0261(326)
                              c~J ·_c'.s.       :l           Job Number           49971
                              · "'-;'.='   i\11'1            Control Section      STU 61407
                                                             Fed Item#            HH316O
                                                             Contract No,         02-5121


                                                       PART I


.        THIS CO~RAC!, consisting of PART 2;ffl}2 PART II (Standard Agreement Provisions),
1Smadeandenteredmtothisdateof         MAYO 7        ·             byandbetweentheMICHIGAN
DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the "DEPARTMENT"; and
the CITY OF MUSKEGON, a Michigan municipal corporation, hereinafter referred to as the
"REQUESTING PARTY"; for the purpose of fixing the rights and obligations of the parties in
agreeing to the following improvements, in the City of Muskegon, Michigan, hereinafter referred
to as the "PROJECT" and estimated in detail on EXHIBIT "I", dated March 21, 2002, attached hereto
and made a part hereof:

                Roadway reconstruction work along Roberts Street from Keating Avenue northerly to
                Laketon A venue; including pavement removal, aggregate base conditioning, bituminous
                pavement, drainage structure adjustment, concrete curb and gutter, and pavement marking
                work; and all together with necessary related work.


                WITNESSETH:

        WHEREAS, pursuant to Federal law, monies have been provided for the performance of
certain improvements on public roads; and

      WHEREAS, the reference "FHWA" in PART I and PART II refers to the United States
Department of Transportation, Federal Highway Administration; and

       WHEREAS, the PROJECT, or portions of the. PROJECT at the request of the
REQUESTING PARTY, are being programmed with the FHWA, for implementation with the use
of Federal Funds under the following Federal program(s) or funding:

                                           SURFACE TRANSPORTATION PROGRAM

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


09/06/90 STP.FOR 3/21/02                                 1
        NOW, THEREFORE, in consideration of the premises and ofthe mutual undertakings ofthe
parties and in conformity with applicable law, it is agreed:

        1.      The parties hereto shall undertake and complete the PROJECT in accordance with
the terms of this contract.

       2.      The term "PROJECT COST", as herein used, is hereby defined as the cost of the
physical construction necessary for the completion of the PROJECT.

       Costs for construction engineering and inspection incurred by the DEPARTMENT will be
charged 100 percent to the REQUESTING PARTY. Any other costs incurred by the
DEPARTMENT as a result of this contract will be at PROJECT COST.

        The costs incurred by the REQUESTING PARTY for preliminary engineering, construction
engineering and inspection, and right-of-way are excluded from the PROJECT COST as defined by
this contract.

       3.      The DEPARTMENT is authorized by the REQUESTING PARTY to administer on
behalf of the REQUESTING PARTY all phases of the PROJECT including advertising and
awarding the construction contract for the PROJECT or portions of the PROJECT. Such
administration shall be in accordance with PART II, Section II of this contract.

     Any items of the PROJECT COST incurred by the DEPARTMENT may be charged to the
PROJECT.

         4.    The REQUESTING PARTY, at no cost to the PROJECT or to the DEPARTMENT,
shall:

              A.      Design or cause to be designed the plans for the PROJECT.

              B.      Appoint a project engineer who shall be in responsible charge of the
                      PROJECT and ensure that the plans and specifications are followed.

              C.      Perform or cause to be performed the construction engineering and inspection
                      services necessary for the completiqn of the PROJECT.

        The REQUESTING PARTY will furnish the DEPARTMENT proposed timing sequences
for trunkline signals that, if any, are being made part of the improvement. No timing adjustments
shall be made by the REQUESTING PARTY at any trunkline intersection, without prior issuances
by the DEPARTMENT of Standard Traffic Signal Timing Permits.




09/06/90 STP.FOR 3/21/02                       2
        5.       The PROJECT COST shall be met in part by contributions by the Federal
 Government. Federal Surface Transportation Funds shall be applied to the eligible items of the
 PROJECT COST at the established Federal participation ratio equal to 81.85 percent up to an
 amount not to exceed $86,008. The balance of the PROJECT COST, after deduction of Federal
 Funds, shall be charged to and paid by the REQUESTING PARTY in the manner and at the times
 hereinafter set forth.

       Any items of PROJECT COST not reimbursed by Federal Funds will be the sole
responsibility of the REQUESTING PARTY.

        6.      No working capital deposit will be required for this PROJECT.

        In order to fulfill the obligations assumed by the REQUESTING PARTY under the
provisions of this contract, the REQUESTING PARTY shall make prompt payments of its share of
the PROJECT COST upon receipt ofprogress billings from the DEPARTMENT as herein provided.
All payments will be made within 30 days ofreceipt ofbillings from the DEPARTMENT. Billings
to the REQUESTING PARTY will be based upon the REQUESTING PARTY'S share of the actual
costs incurred less Federal Funds earned as the PROJECT progresses.

        In the event of any discrepancies between PART I and PART II, the provisions of PART I
shall prevail.

       7.      Upon completion of construction of the PROJECT, the REQUESTING PARTY will
promptly cause to be enacted and enforced such ordinances or regulations as may be necessary to
prohibit parking in the roadway right-of-way throughout the limits of the PROJECT.

       8.      The performance of the entire PROJECT under this contract, whether Federally
funded or not, will be subject to the provisions and requirements of PART II that are applicable to
a Federally funded project.

        9.       The REQUESTING PARTY certifies that a) it is a person under 1995 PA 71 and is
not aware of and has no reason to believe that the property is a facility as defined in MSA
 13A.20101(1)(1); b) the REQUESTING PARTY further certifies that it has completed the tasks
required by MCL 324.20126 (3)(h); MSA 13A.20126(3)(h); c) it conducted a visual inspection of
property within the existing right of way on which constru9tio11 is to be performed to determine if
any hazardous substances were present; and at sites on which historically were located businesses
that involved hazardous substances, it performed a reasonable investigation to determine whether
hazardous substances exist. This reasonable investigation should include, at a minimum, contact
with local, state and federal environmental agencies to determine if the site has been identified as,
or potentially as, a site containing hazardous substances; d) it did not cause or contribute to the
release or threat of release of any hazardous substance found within the PROJECT limits.




09/06/90 STP.FOR 3/21/02                         3
        The REQUESTING PARTY also certifies that, in addition to reporting the presence of any
hazardous substances to the Department of Environmental Quality, it has advised the
DEPARTMENT of the presence of any and all hazardous substances which the REQUESTING
PARTY found within the PROJECT limits, as a result of performing the investigation and visual
inspection required herein. The REQUESTING PARTY also certifies that it has been unable to
identify any entity who may be liable for the cost ofremediation. As a result, the REQUESTING
PARTY has included all estimated costs ofremediation of such hazardous substances in its estimated
cost of construction of the PROJECT.

         10.     If, subsequent to execution ofthis contract, previously unknown hazardous substances
are discovered within the PROJECT limits, which require environmental remediation pursuant to
either state or federal law, the REQUESTING PARTY, in addition to reporting that fact to the
Department ofEnvironmental Quality, shall immediately notify the DEPARTMENT, both orally and
in writing of such discovery. The DEPARTMENT,shall consult with the REQUESTING PARTY
to determine if it is willing to pay for the cost of remediation and, with the FHWA, to determine the
eligibility, for reimbursement, of the remediation costs. The REQUESTING PARTY shall be
charged for and shall pay all costs associated with such remediation, including all delay costs of the
contractor for the PROJECT, in the event that remediation and delay costs are not deemed eligible
by the FHWA. If the REQUESTING PARTY refuses to participate in the cost of remediation, the
DEPARTMENT shall terminate the PROJECT. The parties agree that any costs or damagesthat the
DEPARTMENT incurs as a result of such termination shall be considered a PROJECT COST.

         11.    If federal and/or state funds administered by the DEPARTMENT are used to pay the
cost of remediating any hazardous substances discovered after the execution of this contract and if
there is a reasonable likelihood of recovery, the REQUESTING PARTY, in cooperation with the
Department of Environmental Quality and the DEPARTMENT, shall make a diligent effort to
recover such costs from all other possible entities. If recovery is made, the DEPARTMENT shall
be reimbursed from such recovery for the proportionate share of the amount paid by the FHWA
and/or the DEPARTMENT and the DEPARTMENT shall credit such sums to the appropriate
funding source.

       12.      The DEPARTMENT'S sole reason for entering into this contract is to enable the
REQUESTING PARTY to obtain and use funds provided by the Federal Highway Administration
pursuant to Title 23 of the United States Code.

        Any and all approvals of, reviews of, and recommendations regarding contracts, agreements,
permits, plans, specifications, or documents, of any nature, or any inspections of work by the
DEPARTMENT or its agents pursuant to the terms of this contract are done to assist the
REQUESTING PARTY in meeting program guidelines in order to qualify for available funds. Such
approvals, reviews, inspections and recommendations by the DEPARTMENT or its agents shall not
relieve the REQUESTING PARTY and the local agencies, as applicable, of their ultimate control
and shall not be construed as a warranty of their propriety or that the DEPARTMENT or its agents
is assuming any liability, control or jurisdiction.


09/06/90 STP.FOR 3/21/02                         4
        The providing ofrecommendations or advice by the DEPARTMENT or its agents does not
relieve the REQUESTING PARTY and the local agencies, as applicable of their exclusive
jurisdiction of the highway and responsibility under MCL 691.1402, MSA 3 .996(102).

       When providing approvals, reviews and recommendations under this contract, the
DEPARTMENT or its agents is performing a governmental function, as that term is defined inMCL
691.1401; MSA 3.996(101), which is incidental to the completion of the PROJECT.

        13.     The DEPARTMENT, by executing this contract, and rendering services pursuant to
this contract, has not and does not assume jurisdiction of the highway, described as the PROJECT
for purposes ofMCL 691.1402; MSA 3.996(102). Exclusive jurisdiction of such highway for the
purposes ofMCL 691.1402; MSA 3 .996(102) rest with the REQUESTING PARTY and other local
agencies having respective jurisdiction.

        14.    The REQUESTING PARTY shall approve all of the plans and specifications to be
used on the PROJECT and shall be deemed to have approved all changes to the plans and
specifications when put into effect. It is agreed that ultimate responsibility and control over the
PROJECT rests with the REQUESTING PARTY and local agencies, as applicable.

       15.     The parties shall promptly provide comprehensive assistance and cooperation in
defending and resolving any claims brought against the DEPARTMENT by the contractor, vendors
or suppliers as a result of the DEPARTMENT'S award of the construction contract for the
PROJECT. Costs incurred by the DEPARTMENT in defending or resolving such claims shall be
considered PROJECT COSTS.

       16.     The DEPARTMENT shall require the contractor who is awarded the contract for the
construction of the PROJECT to provide insurance in the amounts specified and in accordance with
the DEPARTMENT'S current standard specifications for construction, and to:

              A.      Maintain bodily injury and property damage insurance for the duration of the
                      PROJECT.

              B.      Provide owner's protective liability insurance naming as insureds the State of
                      Michigan, the Michigan State : Transportation Commission, the
                      DEPARTMENT and its officials, agl)nts and employees, the REQUESTING
                      PARTY and any other party with jurisdiction for the roadway being
                      constructed as the PROJECT, and their employees, for the duration of the
                      PROJECT and to provide copies of certificates of insurance to the insureds.
                      It is understood that the DEPARTMENT does not assume jurisdiction of the
                      highway described as the PROJECT as a result ofbeing named as an insured
                      on the owners protective liability insurance policy.




09/06/90 STP.FOR 3/21/02                        5
               C.     Comply with the requirements of notice of cancellation and reduction of
                      insurance set forth in the current standard specifications for construction and
                      to provide copies of notices and reports prepared to those insured.

        17.      This contract shall become binding on the parties hereto and of full force and effect
upon the signing thereof by the duly authorized officials for the parties hereto and upon the adoption
of the necessary resolutions approving said contract and authorizing the signatures thereto of the
respective officials of the REQUESTING PARTY, a certified copy of which resolution shall be .
attached to this contract.

       IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the
day and year first above written.


CITY OF MUSKEGON                                     MICHIGAN DEPARTMENT
                                                     OF TRANSPORTATION



                                                                      irector MDO'l'


By:_:,E~~--1.:~~~~~
 Title: Gail
        City




09/06/90 STP.FOR 3/21/02                        6
                                                                                  March 21, 2002


                                           EXHIBIT I

                              PROJECT                       STP 0261(326)
                              JOB NUMBER                    49971
                              CONTROL SECTION               STU61407


                                      ESTIMATED COST

CONTRACTED WORK

       Estimated Cost                                                      $97,300




                                    COST PARTICIPATION

              GRAND TOTAL ESTIMATED COST                                   $97,300
              Less Federal Funds*                                          $79,600
              BALANCE (REQUESTING PARTY'S SHARE)                           $17,700


*Federal Funds shall be applied to the eligible items of the PROJECT COST at a participation ratio
equal to 81.85 percent up to an amount not to exceed $86,008.

NO DEPOSIT




09/06/90 STP.FOR 3/21/02                       7
DOT                                                         TYPEB
                                             BUREAU OF illGHWAYS
                                                           03-15-93




                           PART II

              STAND ARD AGREEMENT PROVISIONS


      SECTION I COMPLIANCE WITH REGULATIONS AND DIRECTIVES

      SECTION II PROJECT ADMINISTRATION AND SUPERVISION

      SECTION ill ACCOUNTING AND BILLING

      SECTION IV MAINTENANCE AND OPERATION

      SECTION V   SPECIAL PROGRAM AND PROJECT CONDITIONS




                             1
                                          SECTION I

                  COMPLIANCE WITH REGULATIONS AND DIRECTIVES

A.    To qualify for eligible cost, all work shall be documented in accordance with the require-
      ments and procedures of the DEPARTMENT.

B.    All work on projects for which reimbursement with Federal funds is requested shall be
      performed in accordance with the requirements and guidelines set forth in the following
      Directives of the Federal-Aid Policy Guide (FAPG) of the FHWA, as applicable, and as
      referenced in pertinent sections of Title 23 of the Code of Federal Regulations (CFR), and
      all supplements and amendments thereto.

       I.    Engineering

             a.      FAPO (23 CFR 1400): Payroll & Related Expense of Public Employees;
                     General Administration and Other Overhead; and Cost Accumulation Centers
                     and Distribution Methods

             b.      F APO (60 I 2.1 ): Preliminary Engineering

             c.      F APO (23 CFR 172): Administration of Engineering and Design Related
                     Service Contracts

             d.      F APO (23 CFR 635A): Contract Procedures

      2.     Construction

             a.      F APO (23 CFR 140E): Administrative Settlement Costs-Contract Claims

             b.      F APO (23 CFR 140B): Construction Engineering Costs

             C.      FAPG (23 CFR 1400): Reimbursement for Employment of Public
                     Employees on Federal-Aid Projects ,

             d.     F APO (23 CFR 17): Recordkeeping and Retention Requirements for Federal-
                    Aid Highway Records of State Highway Agencies

             e.      FAPG (23 CFR 635A): Contract Pr~cedures

             f.     F APG (23 CFR 635B): Force Account Construction

             g.     F APG (23 CFR 645A): Utility Relocations, Adjustments and Reimbursement


03-15-93                                       2
               h.     FAPG (23 CFR 64513): Accommodation of Utilities (PPM 30-4.1)

               i.     FAPG (23 CFR 655F): Traffic Control Devices on Federal-Aid and other
                      Streets and Highways

       3.      Modification Or Construction Of Railroad Facilities

              a.      FAPG (23 CPR 1401): Reimbursement for Railroad Work

              b.      FAPG (23 CPR 646B): Railroad Highway Projects

C.     In conformance with FAPG (23 CPR 630C) Project Agreements, the political subdivisions
       party to this contract, on those Federally ,funded projects which exceed a total cost of
       $100,000.00 stipulate the following with respect to their specific jurisdictions:

       1.     That any facility to be utilized in performance under or to benefit from this contract
              is not listed on the Environmental Protection Agency (EPA) List of Violating
              Facilities issued pursuant to the requirements of the Federal Clean Air Act, as
              amended, and the Federal Water Pollution Control Act, as amended.

       2.     That they each agree to comply with all of the requirements of Section 114 of the
              Federal Clean Air Act and Section 308 of the Federal Water Pollution Control Act,
              and all regulations and guidelines issued thereunder.

       3.     That as a condition of Federal aid pursuant to this contract they shall notify the
              DEPARTMENT of the receipt of any advice indicating that a facility to be utilized
              in performance under or to benefit from this contract is under consideration to be
              listed on the EPA List of Violating Facilities.

D.     Ensure that the PROJECT is constructed in accordance with and incorporates all committed
       environmental impact mitigation measures listed in approved environmental documents
       unless modified or deleted by approval of the FHWA.

E.    All the requirements, guidelines, conditions and restrictions noted in all other pertinent
      Directives and Instructional Memoranda of the FHWA will apply to this contract and will
      be adhered to, as applicable, by the parties hereto.




03-15-93                                       3   -
                                            SECTION II

                     PROJECT ADMINISTRATION AND SUPERVISION


 A.    The DEPARTMENT shall provide such administrative guidance as it determines is required
       by the PROJECT in order to facilitate the obtaining of available federal and/or state funds.

 B.    The DEPARTMENT will advertise and award all contracted portions ofthe PROJECT work.
       Prior to advertising of the PROJECT for receipt of bids, the.REQUESTING PARTY may
       delete any portion or all of the PROJECT work. After receipt of bids for the PROJECT, the
       REQUESTING PARTY shall have the right to reject the amount bid for the PROJECT prior
       to the award of the contract for the PROJECT only if such amount exceeds by twenty percent
       (20%) the final engineer's estimate therefor. If such rejection of the bids is not received in
       writing within two (2) weeks after letting, the DEPARTMENT will assume concurrence.
       The DEPARTMENT may, upon request, readvertise the PROJECT. Should the REQUEST-
       ING PARTY so request in writing within the aforesaid two (2) week period after letting, the
       PROJECT will be cancelled and the DEPARTMENT will refund the unused balance of the
       deposit less all costs incurred by the DEPARTMENT.

C.     The DEPARTMENT will perform such inspection services on PROJECT work performed
       by the REQUESTING PARTY with its own forces as is required to ensure compliance with
       the approved plans & specifications.

D.     On those projects funded with Federal monies, the DEPARTMENT shall as may be required
       secure from the FHWA approval of plans and specifications, and such cost estimates for
       FHWA participation in the PROJECT COST.

E.    All work in connection with the PROJECT shall be performed in conformance with the
      Michigan Department of Transportation Standard Specifications for Construction, and the
      supplemental specifications, Special Provisions and plans pertaining to the PROJECT and
      all materials furnished and used in the construction of the PROJECT shall conform to the
      aforesaid specifications. No extra work shall be performed nor changes in plans and
      specifications made until said work or changes are approved by the project engineer and
      authorized by the DEPARTMENT.                       .




03-15-93                                        4
 F.    Should it be necessary or desirable that portions of the work covered by this contract be
       accomplished by a consulting     firm;
                                            a railway company, or governmental agency, firm,
       person, or corporation, under a subcontract with the REQUESTING PARTY at PROJECT
       expense, such subcontracted arrangements- will be covered by formal written agreement
       between the REQUESTING PARTY and that party.

       This formal written agreement shall: include a reference to the specific prime contract to
       which it pertains; include provisions which clearly set forth the maximum reimbursable and
       the basis of payment; provide for the maintenance of accounting records in accordance with
       generally accepted accounting principles, which clearly document the actual cost of the
       services provided; provide that costs eligible for reimbursement shall be in accordance with
       clearly defined costcriteriasuchas49 CFRPart 18,48 CFRPart31,23 CFRPart 140, 0MB
       Circular A-87, etc. as applicable; provide for access to the department or its representatives
       to inspect and audit all data and records related to the agreement for a minimum of three
       years after the department's final payment to the local unit.

       All such agreements will be submitted for approval by the DEPARTMENT and, if
       applicable, by the FHWA prior to execution thereof, except for agreements for amounts less
       than $25,000 for preliminary engineering and testing services executed under and in accor-
       dance with the provisions of the "Small Purchase Procedures" F APO (23 CFR 172), which
       do not require prior approval of the DEPARTMENT or the FHWA.

       Any such approval by the DEPARTMENT shall in no way be construed as a warranty of the
       subcontractor's qualifications, financial integrity, or ability to perform the work being
       subcontracted.

G.    The REQUESTING PARTY, at no costto the PROJECT or the DEPARTMENT, shall make
      such arrangements with railway companies, utilities, etc., as may be necessary for the
      performance of work required for the PROJECT but for which Federal or other
      reimbursement will not be requested.

H.    The REQUESTING PARTY, at no cost to the PROJECT, or the DEPARTMENT, shall
      secure, as necessary, all agreements and approvals ofthe PROJECT with railway companies,
      the Railroad Safety & Tariffs Division of the J)EP ARTMENT and other concerned
      governmental agencies other than the FHWA, and will forward same to the DEPARTMENT
      for such reviews and approvals as may be required.

I.    No PROJECT work for which reimbursement will be requested by the REQUESTING
      PARTY is to be subcontracted or performed until the DEPARTMENT gives written
      notification that such work may commence.   ·




03-15-93                                        5
J.     The REQUESTING PARTY shall be responsible for the payment of a11 costs and expenses
       incurred in the performance of the work it agrees to undertake and perform.

K.    The REQUESTING PARTY shall pay direetly to the party performing the work all billings
      for the services performed on the PROJECT which are authorized by or through the
      REQUESTING PARTY.

L.    The REQUESTING PARTY shall submit to the DEPARTMENT all paid billings for which
      reimbursement is desired in accordance with DEPARTMENT procedures.

M.    All work by a consulting firm will be performed in compliance with the applicable
      provisions of 1980 PA 299, Subsection 2001, MCL 339.2001; MSA 18.425(2001), as well
      as in accordance with the provisions of all previously cited Directives of the FHWA.

N.    The project engineer shall be subject to such administrative guidance as may be deemed
      necessary to ensure compliance with program requirement and, in those instances where a
      consultant firm is retained to provide engineering and inspection services, the personnel
      performing those services shall be subject to the same conditions.

0.    The DEPARTMENT, in administering the PROJECT in accordance with applicable Federal
      and State requirements and regulations, neither assumes nor becomes liable for any obliga-
      tions undertaken or arising between the REQUESTING PARTY and any other party with
      respect to the PROJECT.

P.    In the event it is determined by the DEPARTMENT that there will be either insufficient
      Federal funds or insufficient time to properly administer such funds for the entire PROJECT
      or portions thereof, the DEPARTMENT, prior to advertising or issuing authorization for
      work performance, may cancel the PROJECT, or any portion thereof, and upon written
      notice to the parties this contract shall be void and of no effect with respect to that cancelled
      portion of the PROJECT. Any PROJECT deposits previously made by the parties on the
      cancelled portions of the PROJECT will be promptly refunded.

Q.    Those projects funded with Federal monies will be subject to inspection at all times by the
      DEPARTMENT and the FHWA.




03-15-93                                         6
                                             SECTION ID

                                   ACCOUNTING AND BILLING


 A.        Procedures for billing for work undertaken by the REQUESTING PARTY:

           1.    The REQUESTING PARTY shall establish and maintain accurate records, in
                 accordance with generally accepted accounting principles, of all expenses incurred
                 for which payment is sought or made under this contract, said records to be
                 hereinafter referred to as the "RECORDS". Separate accounts shall be established
                 and maintained for all costs incurred under this contract.

                 The REQUESTING PARTY shall maintain the RECORDS for at least three (3) years
                 from the date of final payment of Federal Aid made by the DEPARTMENT under
                 this contract. In the event of a dispute with regard to the allowable expenses or any
                 other issue under this contract, the REQUESTING PARTY shall thereafter continue
                 to maintain the RECORDS at least until that dispute has been finally decided and the
                 time for all available challenges or appeals of that decision has expired.

                 The DEPARTMENT, or its representative, may inspect, copy, or audit the
                 RECORDS at any reasonable time after giving reasonable notice.

                 If any part of the work is subcontracted, the REQUESTING PARTY shall assure
                 compliance with the above for all subcontracted work.

                In the event that an audit performed by or on behalf of the DEPARTMENT indicates
                an adjustment to the costs reported under this contract, or questions the allowability
                of an item of expense, the DEPARTMENT shall promptly submit to the
                REQUESTING PARTY, a Notice of Audit Results and a copy of the audit report
                which may supplement or modify any tentative findings verbally communicated to
                the REQUESTING PARTY at the completion of an audit.

                Within sixty (60) days after the date Qf the Notice of Audit Results, the
                REQUESTING PARTY shall: (a) respond i._r1writing to the responsible Bureau or the
                DEPARTMENTindicating whetherornodtconcurs with the audit report, (b) clearly
                explain the nature and basis for any disagreement as to a disallowed item of expense
                and, (c) submit to the DEPARTMENT a written explanation as to any questioned or
                no opinion expressed item of expense, hereinafter referred to as the "RESPONSE".
                The RESPONSE shall be clearly stated and provide any supporting documentation
                necessary to resolve any disagreement or questioned or no opinion expressed item of
                expense. Where the documentation is voluminous, the REQUESTING PARTY may
                supply appropriate excerpts and make alternate arrangements to conveniently and


03-15-93                                          7
            reasonably make that documentation available for review by the DEPARTMENT.
            The RESPONSE shall refer to and apply the language of the contract. The
            REQUESTING PARTY agrees that failure to submit a RESPONSE within the sixty
            (60) day period constitutes agreement with any disallowance of an item of expense
            and authorizes the DEPARTMENT to finally disallow any items of questioned or no
            opinion expressed cost.

            The DEPARTMENT shall make its decision with regard to any Notice of Audit
            Results and RESPONSE within one hundred twenty (120) days after the date of the
            Notice of Audit Results. Ifthe DEPARTMENT determines that an overpayment has
            been made to the REQUESTING PARTY, the REQUESTING PARTY shall repay
            that amount to the DEPARTMENT or reach agreement with the DEPARTMENT on
            a repayment schedule within thirty (30) days after the date of an invoice from the
            DEPARTMENT. If the REQUES'IJNG PARTY fails to repay the overpayment or
            reach agreement with the DEPARTMENT on a repayment schedule within the thirty
            (30) day period, the REQUESTING PARTY agrees that the DEPARTMENT shall
            deduct all or a portion of the overpayment from any funds then or thereafter payable
            by the DEPARTMENT to the REQUESTING PARTY under this contract or any
            other agreement, or payable to the REQUESTING PARTY under the terms ofl951
           PA 51, as applicable. Interest will be assessed on any partial payments or repayment
           schedules based on the unpaid balance at the end of each month until the balance is
           paid in full. The assessment of interest will begin thirty (30) days from the date of
           the invoice. The rate of interest will be based on the Michigan Department of
           Treasury common cash funds interest earnings. The rate of interest will be reviewed
           annually by the DEPARTMENT and adjusted as necessary based on the Michigan
           Department of Treasury common cash funds interest earnings. The REQUESTING
           PARTY expressly consents to this withholding or offsetting of funds under those
           circumstances, reserving the right to file a lawsuit in the Court of Claims to contest
           the DEPARTMENT'S decision only as to any item of expense the disallowance of
           which was disputed by the REQUESTING PARTY in a timely filed RESPONSE.

           The REQUESTING PARTY shall comply with the Single Audit Act of 1984, P.L.
           98-502.

           The REQUESTING PARTY shall adhere to the following requirements associated
           with audits of accounts and records:

           a. Agencies expending a total of $300,000 or more in federal funds, from one or
           more funding sources in its fiscal year, shall comply with the requirements of the
           federal Office of Management and Budget (0MB) Circular A-133, as revised or
           amended.




03-15-93                                    8
             The agency shall submit two copies of:

                    The Reporting Package
                    The Data Collection Form
                    The management letter to the agency, if one issued by the audit firm

             The 0MB Circular A-133 audit must be submitted to the address below in
             accordance with the time frame established in the circular, as revised or amended.

            b. Agencies expending less than $300,000 in federal funds must submit a letter to
            the Department advising that a circular audit was not required. The letter .shall
            indicate the applicable fiscal year, the amount of federal funds spent, the name(s) of
            the Department federal programs, and the CFDA grant number( s). This information
            must also be submitted to the address below.

            c. Address:     Michigan Department of Transportation
                            Bureau of Highways Technical Services
                            425 W. Ottawa, P.O. Box 30050
                            Lansing, MI 48909

            d. Agencies must also comply with applicable State laws and regulations relative to
            audit requirements.

            e. Agencies shall not charge audit costs to Department's federal programs which are
            not in accordance with the 0MB Circular A-133 requirements.

            f. All agencies are subject to the federally required monitoring activities, which may
            include limited scope reviews and other on-site monitoring.

       2.   Agreed Unit Prices Work - All billings for work undertaken by the REQUESTING
            PARTY on an agreed unit price basis will be submitted in accordance with the
            Michigan Department ofTransportation Standard Specifications for Construction and
            pertinent F APG Directives and Guidelines qf the FHWA.

      3.    Force Account Work and Subcontracted Work - All billings submitted to the
            DEPARTMENT for Federal reimbursement for items of work performed on a force
            account basis or by any subcontract with a consulting firm, railway company,
            governmental agency or other party, under the terms of this contract, shall be
            prepared in accordance with the provisions of the pertinent FHPM Directives and the
            procedures of the DEPARTMENT. Progress billings may be submitted monthly
            during the time work is being performed provided, however, that no bill of a lesser
            amount than $1,000.00 shall be submitted unless it is a final or end of fiscal year


03-15-93                                      9
              billing. All billings shall be labeled either "Progress Bill Number _ _ _ ", or
              "Final Billing".             -

       4.    Final billing under this contract shall be submitted in a timely manner but not later
             than six months after completion of the work. Billings for work submitted later than
             six months after completion of the work will not be paid.

       5.    Upon receipt of billings for reimbursement for work undertaken by the
             REQUESTING PARTY on projects funded with Federal monies, the
             DEPARTMENT will act as billing agent for the REQUESTING PARTY,
             consolidating said billings with those for its own force account work and presenting
             these consolidated billings to the FHWA for payment. Upon receipt of
             reimbursement from the FHWA, the DEPARTMENT will promptly forward to the
             REQUESTING PARTY its share of said reimbursement.

       6.    Upon receipt of billings for reimbursement for work undertaken by the
             REQUESTING PARTY on projects funded with non-Federal monies, the
             DEPARTMENT will promptly forward to the REQUESTING PARTY
             reimbursement of eligible costs.

B.     Payment of Contracted and DEPARTMENT Costs:

       1.    As work on the PROJECT commences, the initial payments for contracted work
             and/or costs incurred by the DEPARTMENT will be made from the working capital
             deposit. Receipt of progress payments of Federal funds, and where applicable, State
             Critical Bridge funds, will be used to replenish the working capital deposit. The
             REQUESTING PARTY shall make prompt payments of its share of the contracted
             and/or DEPARTMENT incurred portion of the PROJECT COST upon receipt of
             progress billings from the DEPARTMENT. Progress billings will be based upon the
             REQUESTING PARTY'S share of the actual costs incurred as work on the
             PROJECT progresses and will be submitted, as required, until it is determined by
             the DEPARTMENT that there is sufficient available working capital to meet the
             remaining anticipated PROJECT COSTS. All progress payments will be made
             within thirty (30) days of receipt of billings.. No monthly billing of a lesser amount
             than $1,000.00 will be made unless it is a fjnal or end of fiscal year billing. Should
             the DEPARTMENT detennine that the ·available working capital exceeds the
             remaining anticipated PROJECT COSTS, the DEPARTMENT may reimburse the
             REQUESTING PARTY such excess. Upon completion of the PROJECT, payment
             of all PROJECT COSTS, receipt of all applicable monies from the FHWA, and
             completion of necessary audits, the REQUESTING PARTY will be reimbursed the
             balance of its deposit.




03-15-93                                      10
           2.     In the event that the bid, plus contingencies, for the contracted, and/or the
                  DEPARTMENT incurred portion of the PROJECT work exceeds the estimated cost
                  therefor as established by this contract, the REQUESTING PARTY may be advised
                  and billed for the additional amount of its share.

 C.        General Conditions:

           1.     The DEPARTMENT, in accordance with its procedures in existence and covering
                 the time period involved, shall make payment for interest earned on the balance of
                 working capital deposits for all projects on account with the DEPARTMENT. The
                 REQUESTING PARTY in accordance with DEPARTMENT procedures in existence
                 and covering the time period involved, shall make payment for interest owed on any
                 deficit balance of working capital deposits for all projects on account with the
                 DEPARTMENT. This payment ', or billing is processed on an annual basis
                 corresponding to the State of Michigan fiscal year. Upon receipt of billing for
                 interest incurred, the REQUESTING PARTY promises and shall promptly pay the
                 DEPARTMENT said amount.

       2.         Pursuant to the authority granted by law, the REQUESTING PARTY hereby
                  irrevocably pledges a sufficient amount of funds received by it from the Michigan
                  Transportation Fund to meet its obligations as specified in PART I and PART IL If
                  the REQUESTING PARTY shall fail to make any of its required payments when
                  due, as specified herein, the DEPARTMENT shall inunediately notify the
                 REQUESTING PARTY and the State Treasurer of the State of Michigan or such
                 other state officer or agency having charge and control over disbursement of the
                 Michigan Transportation Fund, pursuant to law, of the fact of such default and the
                 amount thereof, and, if such default is not cured by payment within ten (10) days,
                 said State Treasurer or other state officer or agency is then authorized and directed
                 to withhold from the first of such monies thereafter allocated by law to the
                 REQUESTING PARTY from the Michigan Transportation Fund sufficient monies
                 to remove the default, and to credit the REQUESTING PARTY with payment
                 thereof, and to notify the REQUESTING PARTY in writing of such fact.

       3.       Upon completion of all work under tl)is contract and fmal audit by the
                DEPARTMENT or the FHWA, the REQl!ESTING PARTY promises to promptly
                repay the DEPARTMENT for any disallowed items of costs previously disbursed by
                the DEPARTMENT, The REQUESTING PARTY pledges its future receipts from
                the Michigan Transportation Fund for repayment of all disallowed items and, upon
                failure to make repayment for any disallowed items within, ninety (90) days of
                demand made by the DEPARTMENT, the DEPARTMENT is hereby authorized to
                withhold an equal amount from the REQUESTING PARTY'S share of any future
                distribution of Michigan Transportation Funds in settlement of said claim.



03-15-93                                         11
       4.   The DEPARTMENT shall maintain and keep accurate records and accounts relative
            to the cost of the PROJECT and upon completion of the PROJECT, payment of all
            items of PROJECT COST, receipt of all Federal Aid, if any, and completion of final
            audit by the DEPARTMENT and ·if applicable, by the FHWA, shall make final
            accounting to the REQUESTING PARTY. The final PROJECT accounting will not
            include interest earned or charged on working capital deposited for the PROJECT
            which will be accounted for separately at the close of the State of Michigan fiscal
            year and as set forth in Section C(l ).

       5.   The costs of engineering and other services performed on those projects involving
            specific program funds and one hundred percent (I 00%) local funds will be appor-
            tioned to the respective portions of that project in the same ratio as the actual direct
            construction costs unless otherwise specified in PART I.




03-15-93                                     12
                                         SECTION IV

                             MAINTENANCE AND OPERATION


A.    Upon completion of construction of each part of the PROJECT, at no cost to the
      DEPARTMENT or the PROJECT, each of the parties hereto, within their respective
      jurisdictions, will make the following provisions for the maintenance and operation of the
      completed PROJECT:

       1.    All Projects:

             Properly maintain and operate each part ofthe project, making ample provisions each
             year for the performance of such maintenance work as may be required, except as
             qualified in paragraph 2b of this section.

      2.     Projects Financed in Part with Federal Monies:

             a.      Sign and mark each part of the PROJECT, in accordance with the current
                     Michigan Manual ofUniform Traffic control Devices, and will not install, or
                     permit to be installed, any signs, signals or markings not in conformance with
                     the standards approved by the FHWA, pursuant to 23 USC 109(d).

             b.      Remove, prior to completion of the PROJECT, all encroachments from the
                     roadway right-of-way within the limits of each part of the PROJECT.

                     With respect to new or existing utility installations within the right-of-way
                     of Federal Aid projects and pursuant to F APG (23 CFR 645B): Occupancy
                     ofnon-limited access right-of-way may be allowed based on consideration for
                     traffic safety and necessary preservation of roadside space and aesthetic
                     quality. Longitudinal occupancy of non-limited access right-of-way by
                     private lines will require a finding of significant economic hardship, the
                     unavailability of practicable alternatives or other extenuating circumstances.

             c.     Cause to be enacted, maintained and;enforced, ordinances and regulations for
                    proper traffic operations in accordance with the plans of the PROJECT.

             d.     Make no changes to ordinances or regulations enacted, or traffic controls
                    installed in conjunction with the PROJECT work without prior review by the
                    DEPARTMENT and approval of the FHWA, ifrequired.




03-15-93                                      13
 B.    On projects for the removal of roadside obstacles, the parties, upon completion of
       construction of each part of the- PROJECT, at no cost to the PROJECT or the
       DEPARTMENT, will, within their respective jurisdictions, take such action as is necessary
       to assure that the roadway right-of-way, cleared as the PROJECT, will be maintained free
       of such obstacles.

C.     On projects for the construction of bikeways, the parties will enact no ordinances or
       regulations prohibiting the use of bicycles on the facility hereinbefore described as the
       PROJECT, and will amend any existing restrictive ordinances in this regard so as to allow
       use of this facility by bicycles. No motorized vehicles shall be permitted on such bikeways
       or walkways constructed as the PROJECT except those for maintenance purposes.

D.     Failure of the parties hereto to fulfill their respective responsibilities as outlined herein may
       disqualify that party from future Federal-aid participation in projects on roads or streets for
       which it has maintenance responsibility. Federal Aid may be withheld until such time as
       deficiencies in regulations have been corrected, and the improvements constructed as the
       PROJECT are brought to a satisfactory condition of maintenance.




03-15-93                                         14-
                                          SECTIONV

                    SPECIAL PROGRAM AND PROJECT CONDITIONS

A.     Those projects for which the REQUESTING PARTY has been reimbursed with Federal
       monies for the acquisition of right-of-way must be under construction by the close of the
       twentieth (20th) fiscal year following the fiscal year in which the FHWA and the
       DEPARTMENT projects agreement covering that work is executed, or the REQUESTING
       PARTY may be required to repay to the DEPARTMENT, for forwarding to the FHWA, all
       monies distributed as the FHWA'S contribution to that right-of-way.

B.     Those projects for which the REQUESTING PARTY has been reimbursed with Federal
       monies for the performance of preliminary engineering must be under construction by the
       close of the tenth (] 0th) fiscal year following the fiscal year in which the FHWA and the
       DEPARTMENT projects agreement covering that work is executed, or the REQUESTING
       PARTY may be required to repay to the DEPARTMENT, for forwarding to the FHWA, all
       monies distributed as the FHWA'S contribution to that preliminary engineering.

C.    On those projects funded with Federal monies, the REQUESTING PARTY, at no cost to the
      PROJECT or the DEPARTMENT, will provide such accident information as is available and
      such other information as may be required under the program in order to make the proper
      assessment of the safety benefits derived from the work performed as the PROJECT. The
      REQUESTING PARTY will cooperate with the DEPARTMENT in the development of
      reports and such analysis as may be required and will, when requested by the
      DEPARTMENT, forward to the DEPARTMENT, in such form as is necessary, the required
      information.

D.    In connection with the performance of PROJECT work under this contract the parties hereto
      (hereinafter in Appendix "A" referred to as the "contractor") agree to comply with the State
      of Michigan provisions for "Prohibition of Discrimination in State Contracts", as set forth
      in Appendix A, attached hereto and made a part hereof. The parties further covenant that
      they will comply with the Civil Rights Acts of 1964, being P.L. 88-352, 78 Stat. 241, as
      amended, being Title 42 U.S.C. Sections 1971, 1975a-1975d, and 2000a-2000h-6 and the
      Regulations of the United States Department ofTraµsportation (49 C.F.R. Part 21) issued
      pursuant to said Act, including Appendix "B ", attached hereto and made a part hereof, and
      will require similar covenants on the part of any contractor or subcontractor employed in the
      performance of this contract.

E.    The parties will carry out the applicable requirements of the DEPARTMENT'S
      Disadvantaged Business Enterprise (DBE) program and 49 CFR, Part 26, including, but not
      limited to, those requirements set forth in Appendix C.




03-15-93                                      15
                                                  APPENDIX A
                               PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

 In connection with the performance of work under this contract; the contractor agrees as follows:

 1.     In accordance with Act No. 453, Public Acts of1976, the contractor hereby agrees notto discriminate against an employee
        or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or as a matter
        directly or indirectly related to employment, because of race, color, religion, national origin, age, sex, height, weight, or
        marital status. Further, in accordance with Act No. 220, Public Acts of 1976 as amended by Act No. 478, Public Acts of
        1980 the contractor hereby agrees not to discriminate against an employee or applicant for employment with respect to
        hire, tennre, terms, conditions, or privileges of employment, or a matter directly or indirectly related to employment,
        because of a disability that is unrelated to the individual's ability to perform the duties of a particular job or position.
        A breach of the above covenants shall be regarded as a material breach of this contract.

 2.     The contractor hereby agrees that any and all subcontracts to this contract, whereby a portion of the work set forth in
        this contract is to be performed, shall contain a covenant the same as hereinabove set forth in Section 1 of this Appendix.

 3.     The contractor will take affirmative action to insure that applicants for employment and employees are treated without
        regard to their race, color, religion, national origin, age, sex, height, weight, marital status or a disability that is unrelated
        to the individual's ability to perform the duties of a particular job or position. Such action shall include, but not be limited
        to, the following: employment, upgrading, demotion or transfer, recruitment advertising; layoff or termination; rates of
        pay or other forms of compensation; and selection for training, including apprenticeship.

4.      The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that
        all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin,
        age, sex, height, weight, marital status or disability that is unrelated to the individual's ability to perform the duties of a
        particular job or position.

5.      The contractor or his collective bargaining representative will send to each labor union or representative of workers with
        which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union
        or workers' representative of the contractor's commitments under this appendix.

6.      The contractor will comply with all relevant pnhlished rules, regulations, directives, and orders of the Michigan Civil
        Rights Commission which may be in effect prior to the taking of bids for any individual state project.

7.      The contractor will furnish and file compliance reports within such time and upon such forms as provided by the Michigan
        Civil Rights Commission, said forms may also elicit information as to the practices, policies, program, and employment
        statistics of each subcontractor as well as the contractor himself, and said contractor will permit access to his books,
        records, and accounts by the Michigan Civil Rights Commission and/or its agent, for purposes of investigation to ascertain
        compliance with this contract and relevant with rules, regulations, and orders of the Michigan Civil Rights Commission.


8.     In the event that the Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor has not
       complied with the contractual obligations under this agreement, the Civil Rights Commission may, as part of its order
       based upon such findings, certify said findings to theAdministrative'Board of the State of Michigan, which Administrative
       Board may order the cancellation of the contract found to have been violated and/or declare the contractor ineligible for
       future contracts with the state and its political and civil subdivisions, departments, and officers, and including the
       governing boards of institutions of higher education, until the contractor complies with said order of the Civil Rights
       Commission. Notice of said declaration of future ineligibility may be given to any or all of the persons with whom the
       contractor is declared ineligible to contract as a contracting party in future contracts. In any case before the Civil Rights
       Commission in which cancellation of an existing contract is a possibility, the contracting agency shall be notified of snch
       possible remedy and shall be given the option by the Civil Rights Commission to participate in snch proceedings.

9.     The contractor will include, or incorporate by reference, the provisions of the foregoing paragraphs (1) through (8) in
       every subcontract or pnrchase order unless exempted by the rules, regulations or orders of the Michigan Civil Rights
       Commission, and will provide in every subcontract or purchase order that said provisions will be binding upon each
       subcontractor or seller.                                                                                  March, 1998
                                                                                                       (Rev. 03/92)

                                                  APPENDIXB

During the performance of this contract, the contractor, for itself, its assignees, and successors in interest
(hereinafter referred to as the "contractor") agrees as follows:

I.      Compliance with Regulations: The contractor shall comply with the Regulations relative to
        nondiscrimination in Federally assisted programs of the Department of Transportation, Title 49, Code
        of Federal Regulations, Part 27, as they may be amended from time to time (hereinafter referred to as
        the Regulations), which are herein incorporated by reference and made a part of this contract.

2.      Nondiscrimination: The contractor, with regard t.penditures
                                                 1.199.850           1.053J28    $         1095131              306 009        28%       $   1 095,131
                                                                                                                                                                             '         1095131      0.00%


5200      Operating Supplies            $                    s                   $                     $                       NIA       $               s                   s                      0.00%
5300      Contractual Services                     374,267             536,089               870,000            149,776        20%             756,000            {114 000)              870,000    15.08%     SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR_DETAIL
                                        s          374.267   s         536 089   $           870,000   s        149 776        20%       $     756.000   s        {114 000) S            870,000    15.08%
                                                 1,574,117           1,589,317                                                               1 851,131                       s         1,965,131

        Available Fund Balariee - EOY
                                        's        122,966
                                                             '         156,747
                                                                                 $         1 965131

                                                                                             106,179
                                                                                                       $        455 785        25%       $

                                                                                                                                                57,279                                   106,179
                                                                                                                                                                                                    6.16%


                                                             '                   $                     $         (32,504)                $               $          (48,900) $
          City of Muskegon
          1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                % Change
                                                                                   Original Budget   Actual Thru March Actual As% Revtsed Estimate        Change From         Original Budget   From 2001
                                            Actual 2000        Actual 2001         Estimate 2002          2002           of Revised       2002            2002 Original       Estimate 2002      Revised    Comments
230       Enterprise Community Fund
          Available Fund Balance. BOY   $                  $                   $                     s                                $               s
          Revenues
           Special assessments          $                  $                   $                     s                                $               $                   s                      0.00%
           Federal grants                            633              85.494               180,000                                          180,000                                   180,000    0.00%
           State shared revenue                                                                                                                                                                  0.00%
           Charges for services                                                                                                                                                                  0.00%
           Interest income                                                                                                                                                                       0.00%
           Operating transfers in                                                                                                                                                                0.00%
           Other                                                                                                                                                                                 0.00%
                                                     633   $          85.494   s           180.000   s                                s     180 000   $                   s           180,000    0.00%

60900     Operating Expenditures
5100        Salaries & Benefits         $                  $                   s                     $                      NIA       s               $                   s                      0.00%
5200        Operating Supplies                                                                                              NIA                                                                  0.00%
5300        Contractual Services                     633              85.494               180,000               1.439      1%              180,000                                   180,000    0.00%
5400        Other Expenses                                                                                                  NIA                                                                  0.00%
5700        Capital Outjays                                                                                                 NIA                                                                  0.00%
5900 ----   Other Financi   u,~                                                                                             NIA                                                                  0.00%
                                                     633   $          85.494   s           180 000   $           1 439      1%        s     180,000   $                   $           180 000    0.00%

90000     Project Expenditures
5200         Operating Supplies         $                  $                   s                     $                      NIA       s               $                   $                      0.00%
5300         Contractual Services                                                                                           NIA                                                                  0.00%
                                        $                  $                   s                     $                      NIA       $               $                   $                      0.00%
                                        $            633   $          85.494   s           180,000   $           1.439      1%        s     180.000                       $           180.000    0.00%

         Available Fund Balance. EOY    $                  $                   s                     $           1.439                s               $                   $
        City of Muskegon
        1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                     % Change
                                                                                  Original Budget   Actual Thru March Actual As% Revised Estimate            Change From         Origin;;il Budget   From 2001
                                          Actual 2000         Acltial2001         Estimate 2002          2002            of Revised       2002               2002 Original       Estimate 2002        Revised                         Comments
254     LC. Walker Arena Fund
        Available Fund Balance. BOY   $           3A26    $           3.861   $            17,945   $           19,133                $      19,133      $           1,188   $             17,945

        Revenues
         Special assessments          $                   $                   $                     $                                 $                  $                   $                        0.00%
         State grants                                                                                                                                                                                 0.00%
         State shared revenue                                                                                                                                                                         0.00%
         Charges for services                  505,229              561,449               590,000            262,216                        590,000                                       590,000     0.00%
         Interest income                            24                                        500                190                            500                                           500     0.00%
         Opera~ng transfers in                 346,000              301,000               271,837             67.959                        271,837                                       271,837     0.00%      GENERAL FUND TRANSFER- OPERATING SUBSIDY
         Other                                    3,848                 520                 5,000                                             5 000                                         5.000     0.00%
                                      $        855101     $         862 969   $           867 337   $        330,365                  $     867 337      $                   $            867 337     0.00%

70805   Operating Expenditures
5100      Salaries & Benefits         $          11,120   $          11,543   $            11,837   $            3,067      26%       $      11,837      $                   $             11,837       0,00%
5200      Operating Supplies                                                                                                NIA                                                                         0.00%
5300      Contractual Services                 842,086              835,912               870,000            240,553        28%             870,000                                       870,000       0.00%
5'00      Other Expenses                                                                                                    NIA                                                                         0.00%
5700      Capital Outlays                         1,460                 2'2                                                 NIA                                                                         0.00%
5900      Other Financin Uses                                                                                               NIA                                                                         0.00%
                                               854,666    $         847 697   $           881 837   $        243,620        28%       $     881,837      $                   $            881,fl37 ---- Q.00%

90000   Project Expenditures
5200      Operatjng Supplies          $                   $                   $                     $                       NIA       $                  $                   $                        0.00%
5300      Contractual Services                                                                                              NIA                                                                       0.00%
                                                          $                   $                     $                       NIA       s                  $                   $                        0.00%
                                               854 666    $         847,697   $           881 837   $        243,620        28%       s     881.837                          $            881,837     0.00%

                                                                                                                                      s
        Available Fund Balance. EOY   $           3,861   $          19,133   $             3,445   $        105,878                             4,633   $           1,188
                                                                                                                                                                             '               3,445
         City of Muskegon
         1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                    % Change
                                                                                    Original Bucl{iet   Actual Thru March Actual As% Revised Estimate        Change From          Original Budget   From 2001
                                            Actual 2000         Actual 2001         Estimate 2002              2002       of Revised       2002              2002 Original        Estimate 2002      Revised                          Comments

403      Sidewalk Improvement Fund
         Available Fund Bala nee· BOY   s          63,295   $         613,738   $             41,325    $        (95,006)            $        (95,006)   $        (136,331) $              4(325
         Revenues
          Special assessments           s        459,927    $         239,318   $            500,000    $                            $       500,000     $                    $           500,000    0,00%
          Federal grants                                                                                                                                                                             0.00%
          State shared revenue                                                                                                                                                                       0.00%
          Charges for seNices                                                                                                                                                                        0.00%
          Interest income                          39,198              60,374                 20,000                425                       20,000                                       20,000    0,00%
          Operating transfers in                   97,219                                    100,000                                         100,000                                      100,000    0.00%
          Other                                  826,066                                     800,000                                         800,000                                      800,000    0.00%      PROPOSED ISSUANCE OF SIDEWALK ASSESSMENT BONDS
                                        s       1.422.412   $         299,692   $          1.420,000    $           425              $      1.420,000    s                    s         1.420,000    0.00%

30906    Operating Expenditures
5100       Salaries & Benefits          s                   $                   s                       s                    NIA     s                   s                    s                      0.00%
5200       Operating Supplies                                                                                                NIA                                                                     0.00%
5300       Contractual Services                                                                                              NIA                                                                     0.00%
5400       Other Expenses                                                                                                    NIA                                                                     0.00%
5700       Capital Outja}'S                                                                                                  NIA                                                                     0.00%
5900       Other Financi!J9 Uses                  143.014             373.443                401.612                         0%              401.612                                      401.612    0.00%      DEBT SERVICE
                                        $         143.014   $         373.443   s            401.612    s                    0%      s       401 612     $                    $           401.612    0.00%

90000    Project Expenditures
5200        Operating Supplies          $                   $                   s                       s                    NIA     s                   $                    $                       0.00%
5300        Contractual Services                 568,030              622,656                600,000               4,781     2%              300,000              (300,000)               600,000    100.00%    SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
5400        Other Expenses                         6,520               12,337                                                NIA                                                                      0.00%
_§_900      Other Financin Uses                  154.405                                                                     NIA                                                                      0.00%
                                        s        728955     $         634 993   s            600.000    $          4.781     2%      $       300,000     $        {300,000) $             600,000    100.00%
                                        s        871.969    $       1 008436    s                       $                            $       701 612                        $           1 001 612    42.76%

         Available Fun~a!anee. EOY      s        613.738    $         (95.006) S
                                                                                           1.001.612

                                                                                             459.713    $
                                                                                                                   4.781

                                                                                                                 (99,362)
                                                                                                                             "       $       623,382     $         163,669    $           459.713
        City of Muskegon
        1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                 % Change
                                                                                  Original Budget   Actual Thru March Actual As% Revised Estimate          Change From         Original Budget   From2001
                                          Actual 2000         Actual 2001         Estimate 2002          2002            of Revised       2002             2002 Original       Estimate 2002      Revised                         Comments

404     Public Improvement Fund
        Available Fund Balance" BOY   $       1,354,812   $         421,441   $         1.400,338   $      1,564,898                  $    1,564,898   $         164,560   $         1.400,338

        Revenues
         Special assessments          $                   $                   s                     s                                 $                $                   $                      0.00%
         Property taxes                                                                                                                                                                           0.00%
         Federal grants                                                                   295,200               26,450                      295,200                                    295,200    0.00%     EDA GRANT FOR SEAWAY INDUSTRIAL PARK
         Contributions                                            1,200,000                                                                                                                       0.00%
         Sales of Property                     148,053               76,257               100,000               20,499                      100,000                                    100,000    0.00%
         Interest income                        51,375               31,890                25,000                8,600                       25,000                                     25,000    0.00%
         Operating transfers in                220,000              450,000               150,000               37,500                      150,000                                    150,000    0.00%     GENERAL FUND TRANSFER- FIRE EQUIPMENT RESERVE
         Other                                  35.643               31.859                                                                                                                       0.00%
                                      s        455 071    s       1 790 006   $           570,200   $           93,058                $     570,200    s                   $           570.200    0.00%

30936   Operating Expenditures
5100      Salaries & Benefits         $                   s                   $                     $                       NIA       $                s                   $                      0.00%
5200      Operating Supplies                                                                                                NIA                                                                   0.00'/4
5300      Contractual Services                                                                                  26,450      NIA                                                                   0.00%
5400      Other Expenses                                                                                                    NIA                                                                   0.00%
5700      Capital Outlays                                                                                                   NIA                                                                   0.00%
5900      Other Financlo9. Uses                 105,000                                                                     NIA                                                                   0.00%
                                                105,000   $                   s                     s           26 450      NIA       $                $                   $                      0.00%

90000   Project Expenditures
5200       Operating Supplies         $                   $                   $                     $                       NIA       $                $                   s                       0.00%
5300       Contractual Services                 696,960              53,375                                      3,144      NIA                                                                    0.00%
5400       Other Expenses                                                                                                   NIA                                                                    0.00%
5700       CaQital Outla~                       586,482             593.174               224,000               61 852      28%             224,000                                    224000      0.00%    SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
                                              1,283,442   $         646,549   $           224,000   $           64,996      29%       s     224,000    $                   s           224,000     0.00%
                                              1,388,442   s         546549    $           224,000   $           91446       41%       s     224,000                        $           224,000     0.00%

        Available Fund Balance. EOY   s         421,441   $       1,564,898   $         1,746,538   $      1,566.510                  $    1,911,098   s         154,560   $         1.746.538
        City of Muskegon
        1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                       % Change
                                                                                         Original Budget   Actual Thru March Actual As% Revised Estimate       Change From           Original Budget   From 2001
                                                 Actual 2000         Actual 2001         Estimate 2002            2002        of Revised      2002             2002 Original         Estimate 2002      Revised                           Comments
474     Coastal Zone Management Fund
                                     $ 2,627 s                               2,627                 2,627   s
                                                                                     '                                                  '
        Available Fund Balance - BOY                                                                                                                       $           (2,627) $

        Revenues
         Special assessments                 s                   s                   $                     s
         State grants
         Federal grants                                                     23,480
                                                                                                                                        '                  '                     '                       0.00%
                                                                                                                                                                                                         0.00%
                                                                                                                                                                                                         0.00%
         Sales of Property                                                                                                                                                                               0.00%
         Interest income                                                                                                                                                                                 0.00%
         Operating transfers in                                             20,853                                                                                                                       0.00%
         Other                                                                                                                                                                                           0.00%
                                                                 s          44,333   $                     $                            $                  $                     $                       0.00%

30936   Operating Expenditures
5100       Salaries & Benefits                                   s                   $                                          NIA     $
                                                                                                                                                           '
                                             $                                                             $                                                                     $                       0.00%
5200       Operating Supplies                                                                                                   NIA                                                                      0.00%
5300       Contractual Services                                                                                                 NIA                                                                      0.00%
5400       Other Expenses                                                                                                       NIA                                                                      0.00%
5700 Capital Ou~ays                                                                                                             NIA                                                                      0.00%
~ __Q)h~r Financi   Uses                                                                                                        NIA                                                                      0.00%
                                                                 s                   $                                          NIA

90000   Project Expenditures
                                                                                                           '                            $                  $                     $                       0.00%


$200                                         s                   s                   $
                                                                                                           '
           Operating Supplies                                                                                                   NIA     $                  $                     $                       0.00%
$300       Contractual Services                                             46,960                                    3,143     NIA                                                                      0.00%
5700       Ca ital Outla                                                                                                        NIA                                                                      0.00%     SEE "BUDG~E;_Q_ CAPITAL IMPROVEMENTS" FOR DETAIL
                                                                 s          46,960   $                                3,143     NIA     $                                        $
                                                                 s          46960    $                     ''         3,143     NIA     $
                                                                                                                                                           $
                                                                                                                                                                                 $
                                                                                                                                                                                                         0,00%
                                                                                                                                                                                                         0.00%

        Available Fund BalanCf:!__: EO_.Y_   $           2,627   s                   $             2.627
                                                                                                            '        (3,143)            $                  $           )2,627)
        City of Muskegon
        1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                         % Change
                                                                                         Origin.al Budget   Actual Thru March Actual As % Revised Estimate         Change From         Original Budget   From 2001
                                                  Actual 2000        Actual 2001         Estimate 2002            2002            of Revised       2002            2002 Original       Estimate 2002      Revised                            Comments
482     State Grants Fund
        Available Fund Balance. BOY           s
        Revenues
         Special assessments                  s                  $                   $                      $                                  $               $                   s                      0.00%
         State grants                                  275,965             363,056             2,778,099             105,949                       2,778,099                                 2,778,099    0.00%
         Federal grants                                 73,386             406,614                                                                                                                        0.00%
         Sales of Property                                                                                                                                                                                0.00%
         Interest income                                                                                                                                                                                  0.00%
         OperaUng transfers in                         601,173             693,281               346,000                                             346,000                                   346,000    0.00%      LOCAL MATCHES
         Othe_,_ _ _ _ _                                                                        1,000,000                                          1,000,000                                 1,000,000    0.00%      CORE COMMUNITIES Gf½l:.J.l
                                              s        950,524   $       1.462,951   $         4,124 099    $        105.949                   s   4,124.099   $                   $         4,124.099    0.00%

30936   Operating Expenditures
5100       Salaries & Benefits                s                  $                   $                      s                        NIA       s               s                   $                      0.00%
5200       Operating Supplies                                                                                                        NIA                                                                  0.00%
5300       Contractual Services                                                                                                      NIA                                                                  0.00%
S400       Other Expenses                                                                                                            NIA                                                                  0,00%
5700       Capital Outlays                                                                                                           NIA                                                                  0.00%
sooo       Other Financi   Uses                                                                                                      NIA                                                                  0.00%
                                              s                  $                   $                      s                        NIA       s               s                   $                      0.00%

90000   Project Expenditures
5200      Operating Supplies                  s                  $                   $                      s                        NIA       s               s                   $                      0.00%
5300      Contractual Services                         950,524           1,283.344                                       37,895      NIA                                                                  0.00%
5700_     caeital Ou~a~                                                    179.607             4.124.099                 48,643      1%            4124.099                                  4,124,099    0.00%      SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
                                              $        950524    $       1462.951    $         4124099      s            86.538      2%        s   4.124.099   s                   $         4124 099     0.00%
                                              s        950524    $       1.462.951   $         4,124,099    s            86,538      2%        s   4,124,099                       $         4,124,099    0.00%

        Available F!.!.1!.i!!lalance - E;OY   $                  $                   $                      s            19,411                $               $
        City of Muskegon
        1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                    % Change
                                                                                     Original Budget   Actual Thn.1 March Actual k:, % Revised Estimate       Change From         Original Budget   From 2001
                                            Actual 2000          Actual 2001         Es~mate 2002             2002         of Revised       2002              2002 Original       Estimate 2002      Revised                          Comments

594      Marina & Launch Ramp Fund
        Available Cash Balance. BOY     s          62,225    s           2,292   $           126,329 $           66,148               $         66,148    $         (60,181) $            126,~9

        Revenues
         Special assessments            s                    s                   $                     $                              $                   $                   $                      0.00%
         State grants                                                  159,150               122,500                                           122,500                                    122,500    0.00%
         State shared revenue                                                                                                                                                                        0.00%
         Charges for services                    273,456               292,144               276,600             90,642                        276,600                                    276,600    0.00%
         Interest income                           5,184                 1,544                 5.000                353                          5,000                                      5,000    0.00%
         Operating transfers in                                                                                                                                                                      0.00%
         ~                                        10,797                 2,128                                                                                                                       0,00"/4
                                        s        289.437     $         454 966   $           404.100   $         90 995               $        404100     $                   $           404100     0.00%

70756   Operating Expenditures
5100       Salaries & Benefits          s          74.283                                                                                      114,172 $
5200
5300
           Operating Supplies
           Contractual Services
                                                  17,771
                                                 143,006
                                                             '          92,244
                                                                         7,942
                                                                       127,477
                                                                                 $           114,172
                                                                                               9,650
                                                                                             100,223
                                                                                                       $         10,015
                                                                                                                    360
                                                                                                                 11,934
                                                                                                                              9%
                                                                                                                             4%
                                                                                                                             12%
                                                                                                                                      $
                                                                                                                                                 9,650
                                                                                                                                               100,223
                                                                                                                                                                              $           114,172
                                                                                                                                                                                            9,650
                                                                                                                                                                                          100,223
                                                                                                                                                                                                     0.00%
                                                                                                                                                                                                     0.00%
                                                                                                                                                                                                     0.00%
5400       Other Expenses                          2,307                   545                 1,000                          0%                 1,000                                      1,000    0.00%
5700       Capital Outlays                         1,350                   561                                               NIA                                                                     0.00%
5900       Other Financing Uses                      (841)                                                                   NIA                                                                     0.00%
           Other Cash Uses (e.g. Debt
        Pfincip;il)                                                      5,126                                               NIA                                                                     0.00%
                                        s        237 876     s         223 643   $           225.045   $         22,309      10%      $        225,045    s                   $           225 045    0.00%

90000   Project Expenditures
5200      Opera~ng Supplies             s                    s                   $                     $                     NIA      $                   s                   $                      0.00%
5300      Contractual Services                   111,494               167,467               245.000             90,070      37%               245,000                                    245,000    0.00%      SEE "BUDGETED CAPITAL \MPROVEMENTS" FOR DETAIL
5700      Cai:,ital Outlal'!:,                                                                                               NIA                                                                     0.00%
                                                 111,494     s         167.467   $           245.000   $         90.Q70      37%      $        245.000    s                   $           245,000    0.00%
                                                 349,370     s         391110    $           470.045   $        112 379      24%      $        470 045                        $           470.045    0.00%

        ~"!:ailable Cash Balance. EOY   $           2,292    s          66,148   $            60.384   $         44.764               $            203    s          (60,181) $            60,384
        City of Muskegon
        1st Quarter Budget Reforecast • Non-General Funds
                                                                                                                                                                                                     % Change
                                                                                        Original Budget   Actual Thru March Actual As % Revised Estimate       Change From         Original Budget   From 2001
                                                Actual 2000         Actual 2001         Estimate 2002            2002        of Revised      2002              2002 Original       Estimate 2002      Revised                          Comments

584     Municipal Golf Course Fund
        Available Cash Balanee • BOY                                    1,151,296                                  492,650                      492,650

        Revenues
                                            '       1,554,213   $                   $           567.480   $                             $
                                                                                                                                                           '         (74.830) $            567.480




                                                                                                          '
         Special assessments                $                   $                   $                                                   $                  $                   $                      0.00%
         State grants                                                                                                                                                                                 0.00%
         State shared revenue                                                                                                                                                                         0.00%
         Charges for services                                                                                                                                                                         0.00%
         Interest income                               86,159              55.488                40,000              3,033                       40,000                                     40,000    0.00%
         Operating transfers in                                                                                                                                                                       0.00%
         o•~                                                                                                                                                                                          0.00%
                                                                                                                                        $                  $                   $

70542   Operating Expenditures
                                            $          86159
                                                                '          55.488   $            40 000
                                                                                                          '          3 033                       40.000                                     40,000    0.00%


5100       Salaries & Benefits              $                   $                   $                     $                    NIA      $                  $                   $                      0.00%
5200       Operating Supplies                                                                                                  NIA                                                                    0.00%
5300       Contractual SeNices                          2,903                                                                  NIA                                                                    0.00%
5400       Other Expenses                                                                                                      NIA                                                                    0.00%
5700       Capital Ou~ays                                                                                                      NIA                                                                    0.00%
5900       Other Financing Uses                      496,173              714,134               241,000                         0%              241,000                                    241,000    0.00%      LOCAL MATCH FOR TRAIL PROJECT GRANTS
           Other Cash Uses (e.g .. Debt
        Princi al                                                                                                              NIA                                                                    0.00%
                                            s        499 076    $         714,134   s           241,000   $                     0%      $       241 000    $                   $           241,000    0.00%

90000   Project Expenditures
5200       Operating Supplies               $                   $                   $                     $                    NIA      $                  $                   $                      0.00%
5300      Contractual Services                                                                                                 NIA                                                                    0.00%
5700      Ca ital Outla                                                                                                        NIA                                                                    0.00%
                                            $                   $                   $                     $                    NIA      s                  s                   $                      0.00%
                                            $        499.076    $         714,134   $           241,000   s                     0%      s       241 000                        s           241,000    0.00%

                                                                                    s                     s
        Availa!!)t:,_Cas_!i Bal~nce - EOY
                                            '       1.151,296   $         492.650               366.480            495,683              $       291,650    $          (74,830) S           366,480
        City of Muskegon
        1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                       % Change
                                                                                         Original Budget   Actual Thru March Actual k;. % Revised Estimate       Change From         Original Budget   From 2001
                                                 Actual 2000         Actua12001          Es~mate 2002             2002        of Revised        2002             2002 Original       Estimate 2002      Revised                           Comments

661     Equipment Fund
        Available Cash Balance. BOY          $        499,092    s        380,984    $           399,649   $        367,851              $        367,851    $         (31,798) $            399,649

        Revenues
         Special assessments                 $                   s                   s                     $                             $                   s                   $                      0.00%
         State grants                                                                                                                                                                                   0.00%
         State shared revenue                                                                                                                                                                           0.00%
         Charges for services                        1,950,310          1,985,638              1,950,000            585,579                     1,950,000                                  1,950,000    0.00%
         Interest income                                27.193             21,873                 40,000              2,217                        40,000                                     40,000    0.00%
         Operating transfers in                                                                                                                                                                         0.00%
         Other                                         193 377           127 412                 100,000              9,118                       100,000                                    100,000    0.00%
                                                     2.170.880   s      2134 923     s         2.090.000 $          596,914              s      2,090,000    s                   $         2,090,000    0.00%

60932   Operating Expenditures
5100       Salaries & Benefits               $        364,899    s        446,604    s           403,801   $         96,887      24%     s        403,801    s                   $           403,801    0,00%
5200       Operating Supplies                         606,768             649,641                561,230             77,590      14%              561,230                                    561,230    0.00%
5300       Contractual Services                       393,192             459,869                404,596             77,174      19%              404,596                                    404,596    0.00%
5400       Other Expenses                               3,357               4,070                  3,500              1,668      48%                3,500                                      3,500    0.00%
5700       Capital Outlays                            872,983             713,321                766,450            228,951      30%              766,450                                    766,450    0.00%      SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
5900       Other Financing Uses                                                                                                  N/A                                                                    0.00%
           Other Cash Uses (e.g .. Debt
        Principal                                       47789              125449                                                N/A                                                                     0.00%
                                                     2,288.988   s       2,148,056   $         2,139.577   s        480,270      22%      $     2,139 577    $                   $         2,139 577     0.00%

90000   Project Expenditures
5200       Operatng Supplies                 $                   s                   $                     s                     N/A     $                   $                   $                       0.00%
5300       Contractual Services                                                                                                  NIA                                                                     0.00%
5700       Ca ital Cutia                                                                                                         N/A                                                                     0.00%
                                                                 s                   $                     s                     NIA     $                   $                   $                       0.00%
                                                     2,288,988   s       2,148 056   $         2,139577    s        480,270      22%     $      2139 577                         $         2139 577      0.00%

        Available Gash Bala_r:ii::e:.~ EOY   $        380,984    s        367,851    $           350.072   s        484,495              $        318,274    $          (31,798) $           350,072
        City of Muskegon
        1st Quarter Budget Reforecast • Non-General Funds
                                                                                                                                                                                                  % Change
                                                                                     Original Budget   Actual Thru March Actual As% Revised Estimate       Change From         Original Budget    From 2001
                                              Actual2000         Actual 2001         Estimate 2002            2002        of Revised      2002             2002 Original       Estimate 2002       Revised                          Comments
642     Public Service Building Fund
        Available Cash Balance - BOY      $         34,173   $        (200,038) $           p18,928j S         (110,757)            s       (110,757) S            8,171   $          (118,928)

        Revenues
         Special assessments              $                  $                   s                     s                            s                  s                   s                       0.00%
         State grants                                                                                                                                                                              0.00%
         State shared revenue                                                                                                                                                                      0.00%
         Charges for services                      460.000             557,060               557,060            153,192                     557,060                                    557,060     0.00%
         Interest income                                                                       1,000                                          1,000                                      1,000     0.00%
         Operating transfers in                                                                                                                                                                    0.00%
         Oll7er                                       427                                                                                                                                          0.00%
                                                   460427    s         557 060   s           558,060   $        153,192             $       558 060    $                   $           558 060     0.00%


"""
S100
5200
        Operating Expenditures
          Salaries & Benefits
          Operating Supplies
                                          s        174,399
                                                    19,767
                                                             s         178,227 $
                                                                        22,582
                                                                                             177,609
                                                                                              26,950
                                                                                                       $         39,376
                                                                                                                  6,224
                                                                                                                            22%
                                                                                                                            23%
                                                                                                                                    $       177,609
                                                                                                                                             26,950
                                                                                                                                                       $                   $           177.609
                                                                                                                                                                                        26,950
                                                                                                                                                                                                   0.00%
                                                                                                                                                                                                   0.00%
5300       Contractual Services                    215,070             193,076               222,268             43,759     20%             222,268                                    222.268     0.00%
5400       Other Experises                          10,956              (1,951)                2,000                (80)    -4%               2,000                                      2,000     0.00%
5700       Capital Outlays                          18,961              68,738                                   24,187     NIA                                                                    0.00%
5900       Other Financing Uses                                                                                             NIA                                                                    0.00%
        Other Cash Uses and Adjustments
        e... Debt Principal                         21 076               7107                                               NIA                                                                     0.00%
                                          s        418 077   $         467 779   $           428.827   s        113 466     26%     $       428.827    s                   $           428 827      0.00%

90000   Project Expenditures
5200       Operatng Supplies              s                  $                   $                     s                    NIA     $                  s                   $                        0.00%
5300       Contractual Services                    276,561                                   159,350             45,690     29%             159,350                                    159,350      0.00%     SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
5700       Ca ital Outla                                                                                                    NIA                                                                     0.00%
                                          s        276,561   $                   $           159.350   s         45,690     29%     $       159.350    s                   $           159,350      0.00%
                                          $        694 638   $         467 779   $           588177    s        159 156     2'%     $       588.177                        s           588,177    __0.00%

        Av.!!!!_~~e Cash Balance - EOY    $       (200,038) $         (110,757) $           (149,045) $        !116,721)            $       !140,874) $            8,171   s          j149,045)
         City of Muskegon
         1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                    % Change
                                                                                      Original Budget   Actual Thru March Actual A:; % Revised Estimate       Change From         Original Budget   From 2001
                                               Actual 2000         Actual2001         Estimate 2002            2002        of Revised       2002              2002 Original       Estimate 2002      Revised    Comments
 643     Engineering Services Fund
         Available Cash Balance. BOY       $          86,178   $        117,697   $           140,189   s        144,167              s        144.167    s           3,978   $           140,189

         Revenues
          Special assessments              $                   $                  $                     s                             s                   s                   $                       0.00%
          State grants                                                                                                                                                                                0.00%
          State share(! revenue                                                                                                                                                                       0.00%
          Charges for services                      478,738             554,621               656.756            113,206                       656.756                                    656,756     0.00%
          Interest income                             5,749               6,378                10,000                810                        10,000                                     10,000     0.00%
          Operating transfers in                                                                                                                                                                      0.00%
          other                                      24 762
                                                    509,249    $
                                                                         28,005
                                                                        589,004   $           666.756   s            '"
                                                                                                                 114199               s        666 756    s                   $           666,756
                                                                                                                                                                                                      0.00%
                                                                                                                                                                                                      0.00%

60447    Operating Expenditures
5,00        Salaries & Benefits            $        348,155    $        405.175   $           494,560   s         82,468     17%      $        494,560    $                   s           494,560     0.00%
5200        Operating Supplies                       15,188              18,746                20,530              7,234     35%                20,530                                     20,530     0.00%
'300        COotract\Jal Services                   107,040             127.790               134,612             29,158     22%               134,612                                    134,612     0.00%
5400        Other Expenses                            3,964               ,.844                 6.300                '84      3%                 6,300                                      6,300     0.00%
5700        Capital Outlays                          22,025              14,568                16,650              1,980     12%                16,650                                     16,650     0,00%
5900        Other Financing Uses                                                                                             WA                                                                       0,00%
         Other Cash Uses and Adjustments
         e.g .. Debt Princi al                       19,413               5.967                                               NIA                                                                     0.00%
                                           $        476,959    $        562156    $           672,652   s        121,024     18%      $        672,652    $                   s           672.652     0.00%

90000    Project Expenditures
5200        Operating Supplies             $                   $                  $                     s                     NIA     $                   $                   s                       0.00%
5300        Contractual Ser,,ices                       771                 378                                      378      NIA                                                                     0.00%
2..Q.Q      Ca ital Outla                                                                                                     NIA                                                                     0.00%
                                           $            771    $            378   $                     s            378      NIA     $                   $                   s                       0.00%
                                           s        477 730    $        562.534   $           672.652   s        121 402      18%     $        672 652                        s           672 652     0.00%

         Available Cash Balance-~ l;_QY_   s        117,697    $        144,167   $           134,293   s        136,964              $        138,271    $           3,978   s           134,293
         City of Muskegon
         1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                     % Change
                                                                                       Original Budget     Actual Thru March Actual As% Revised Estimate       Change From         Original Budget   From 2001
                                               Actuat2000          Actual 2001         Estimate 2002              2002       of Revised       2002             2002 Original       Estimate 2002      Revised                         Comments

677      General Insurance Fund
         Available Cash Balance. BOY       $      1,193,782   $          935,251   $         1,038,212 -   s        855,366             s       855,366    $        (182,846) $          1,038,212

         Revenues
          Special assessments              $                  s                    $                       s                            s                  $                   $                      0.00%
          State grants                                                                                                                                                                                0.00%
          State shared revenue                                                                                                                                                                        0.00%
          Charges for services                    1,978,797            2,169,113             2,634,320              520,593                    2,634,320                                 2,634,320    0.00%
          Interest income                            55,393               33,408                40,000                4,543                       40,000                                    40,000    0.00%
          Operating transfers in                    784,995              881,596               900,000                                           900,000                                   900,000    0.00%      TRANSFER FROM PENSION FUNDS FOR RETIREE HEALTHCARE
          Other                                     117,275               11,750                75,000                1.114                       75,000                                    75,000    0.00%
                                                  2,936.460   s        M95,867     $         3,649.320     s        526,250             s      3.649.320   $                   $         3,649.320    0.00%

30851    Operating Expenditures
5100        Salaries & Benefits            $          5,712   s           42.455                44.910     s         64,686    144%               44,910   $                                44.910    0.00%
5200        Operatjng Supplies                          475                  922                 1.000                   63     6%                 1,000                                     1.000    0.00%
$300        Contractual Services                  3,072,981            3,243,323             3,534,320              796,134    23%             3,534,320                                 3.534.320    0.00%
5400        Other Expenses                              461                2,075                 2.000                  118     6%                 2,000                                     2.000    0.00%
5700        Capital Outlays                                                2,405                 2.000                  315     16%                2,000                                     2,000    0.00%
5900        Other Financing Uses                                                                                                NIA                                                                   0.00%
         Other Cash Uses and Adjustments
         e.g .. Debt Princii;ial)                   115,362              115 428                                                NIA                                                                   0.00%
                                           $      3,194,991   s        3.175.752   $         3,584.230     s        861,316     24%     s      3.584,230   $                   $         3,584.230    0.00%

90000    Project Expenditures
5200       Operating Supplies              $                  s                    s                       s                    NIA     s                  $                   $                      0.00%
5300       Contractual Services                                                                                                 NIA                                                                   0.00%
_!;700     Cai;,ital Ou~a~                                                                                                      NIA                                                                   0.00%
                                           s                                       s                       s                            s
                                           s      3,194 991   's       3,175,752   s         3 584,230     s        861,316
                                                                                                                                NIA
                                                                                                                                24%     s      3584J30     '                   $
                                                                                                                                                                               $         3 584,330
                                                                                                                                                                                                      0.00%
                                                                                                                                                                                                      0.00%

         Avallable Cash Balance. E.9"'.    s        935,251   $          855,366   s         1,103,302     s        520,300             s       920.456                        $         1,103,302
        City of Muskegon
        1st Quarter Budget Reforecast - Non-General Funds
                                                                                                                                                                                                         % Change
                                                                                        Original Budget   Actual Thru March Actual As% Revised Estimate          Change From           Original Budget   From 2001
                                                Actual 2000         Actual 2001         Estimate 2002          2002            of Revised       2002             2002 Original         Estimate 2002      Revised                           Comments
591     Water Fund
        Available Cash Balance. BOY         $       6,094,347   $       5,982,941   $         5,148,538   $      5,071,320                  s   5,071,320    $         (77,218) $            5,148,538

        Revenues
         Special assessments                $                   $                   $                     $                                 s                $                     $                      0.00%
         Federal grants                                                                          90,000                                            90,000                                       90,000    0.00%      EDA GRANT FOR SEAWAY INDUSTRIAL PARK
         State grants                                                                           100,000                                           100,000                                      100,000    0.00%      SHOREL.INE DRIVE
         State shared revenue                                                                                                                                                                             0.00%
         Charges for services - City                3,531,540           3,980,059             3,550,000                8,220                    3,550,000                                    3,550,000    0.00%
         Charges for services - Township                                                        450,000                3,634                      450,000                                      450,000    0.00%
         Hydrant Rental - Township                                                                                                                                                                        0.00%
         Interest income                             320,696              230,864              140,000                12,518                      140,000                                     140,000     0.00%
         Operating transfers in                                           454,812               54,000                                             54,000                                      54,000     0.00%
         Other                                         84.101              52.184              100,000                58,897                      100.000                                     100,000     0.00%
                                                    3 936337    $       4 717 919   $         4484 000    $           83 269                $   4 484 000    $                     $         4484 000     0.00%


"""
5100
5200
        Operating Expenditures Administration
           Salaries & Benefits
            Operating Supplies
                                            $                   $
                                                                               10
                                                                                    $                     $                      NIA
                                                                                                                                 NIA
                                                                                                                                            $                s                     $                       0.00%
                                                                                                                                                                                                           0.00%
5300       Contractual Services                      359.581              453,613               481,606               93,023     19%              481,606                                      481,606     0.00%     INSURANCE/INDIRECTCOSTS/ADMININISTRATION FEE
5400       Other Expenses                              7,431                6,144                                                NIA                                                                       0.00%
5700       Capital Outjays                                45                                                                     NIA                                                                       0.00%
5900       Other Financing Uses                      495,727              471,301               432,270                5,349     1%               432,270                                      432,270     0.00%     INTEREST ON WATER BONDS
        Other Cash Uses and Adjustment,;;
        (e.g .. Debt PrinCiQal)                       302.213             591,739              390.000                            0%              390,000                                      390,000     0.00%     PRINCIPAL ON WATER BONDS
                                                    1.164.997   $       1.522.807   $         1303876     $           98372       8%        $    1303876     s                     s         1 303,876     0.00%

60559   Operating Expenditures Maintenance. Clty
5100      Salaries & Benefits            $           698,628    $         788,512   $           601,859   $        145,963       24%        $     601,859    $                     $           601,859     0.00%
5200      Operating Supplies                         237,968              235,205                92,350             20,168       22%               92.350                                       92.350     0.00%
5300      Contractual Services                       293,031              350,528               321,312             87,028       27%              321.312                                      321,312     0.00%
5400      Other Expenses                              71,680               12,356                 4,130              3,239       78%                4,130                                        4,130     0.00%
5700      Capital Ou~ays                               5,129                7,327                10,900              1,778       16%               10,900                                       10,900     0.00%
~-        Other Financin Uses                                                                                                     NIA                                                                      0.00%
                                            $       1 306 436   $       1 393 928   $         1 030551    $        258178        25%        $    1.030.551   s                     s         1.030.551     0.00%

60660   Operating Expenditures Maintenance. Township
5100      Salaries & Benefits            $         3,190        $         206,700   $           292,602   $           50,389      17%             292,602                                      292,602
5200
5300
          Operating Supplies
          Contractual Services
                                                     863
                                                      47
                                                                            9,526
                                                                          120,508
                                                                                                 12,483
                                                                                                125,594
                                                                                                                         365
                                                                                                                      27,030
                                                                                                                                   3%
                                                                                                                                  22%
                                                                                                                                            $
                                                                                                                                                   12,483
                                                                                                                                                  125,594
                                                                                                                                                             '                     '            12,483
                                                                                                                                                                                               125,594
                                                                                                                                                                                                           0.00%
                                                                                                                                                                                                           0.00%
                                                                                                                                                                                                           0.00%
5400      Other Expenses                                                      469                 1,420                   13       1%               1,420                                        1,420     0.00%
5700      Capilre SmnrtZonc)

       The boundaries of the proposed district as revised within which the local devdopmc:nt
 limmcc aulhori ty shall exercise its powers are as follows:

 Parcel Description:

 Block 554, and Lots 6, 7 and 8 of Block 558, of the Revised Plat of the City of Muskegon, as
 r~corded in Libe:n- 3 of Plat:;, Page 71, Muskegon County Records, lying Northerly of a line
 described as: Commence at the intersection oflh~ Northe,1::;terly line of Terrace Street, being the
 Southwesterly line of Block 557 e.xtendcd to thc·ccntcrlinc of vacated Water Street; thence North
 62°44'00" West 381.45 feet along the northeasterly right of way line of Terrace Street; thence
Westerly 269.86 Feet, along said no1ihcastcrly right of way line, said line being a 302.48 foot
radiu.~ curve to the left with a central auglc of 51 °07' 00" and a chord which bears North
 88° 1TJO" West 261.00 feet, to the line between Lots 5 and 6 of said Block 558; thence North
46°09'15" West 85.84 feet, along said line, to the PLJ\CE OF BEGTNNTNG OF THlS
DESCRJPT10N: Thenc" North~a~le,rly 635.15 feet along a 803.25 foot radius curve to the right,
having a central auglc of 45"18' 19" and a chord which bears North 70°04 '05" East 618. 73 feet;
tbence South 87° 16'46" East 222.59 feet; thence No1ib 02°43'14" 'East 55.00 feet; thence South
87°16' 46" East 120.00 feet; thence South 02°43' 14" West 55.00 feet; thcuco So,1th 87"16' 46"
Easl 904.15 Ji::c:L; thence Northeasterly 548. 72 feet, nloug a 1272.34 foot radius curve to the left,
having a central angle of24°42'35" and a chord which bears North 80°21 '56" East 544.48 feet
to the place of ending.

EXCEPT THE FOT.LOWTNG

Part of Block 558, commt--ncc al the inlcr,;t,clion of the Northea!.ierly line of Terrace Street
extended to the centerline of vacated Water Street; thence North 62 degrees 44 minutes 00
seconds West along the Northeasterly line of Terrace Street i;xtcndcd 381.45 !eel; thence
Westerly along the arc of a 302.48 foot radius curve to th~ lefl 269.86 feet to the line between
Lots 5 and 6 of $aid Block 558 (long chord bears North 88 degrees 17 minutes 30 scconc.ls West
261 feet); thence North 46 degrees 9 minutes 15 seconds West along said line between Lots 5
and 6, 534.25 feet to the place ofheginning; thence North 27 degxees 25 minutes 55 seconds East
925.82 feet to a point referred to as Point"/\"; thence continue North 27 degrees 25 minutes 55
seconds Ea.~t 5 foet_, more or less, to the shore of Muskegon Lake; thence Northwesterly and
Southwesterly along Lhe shore of Muskegon Lake 1]50 feet, more or less; thence South 46
degrees 9 minutes 15 seconds East a1ong said line beLween Lots 5 and 6, 820 feel, more or kss,
to the place of beginning.

Property Commonly Knowi1 As: Fonner Teledyne Continental Motors Site


DEl.JB2247223.J\063684-00024




                                                 4
APPENDIXB
JUN   1::J:)   C:~J,:'.JC:   ~~;44   t-t'I';   ivlt:.LJl..,-JjU:::i   ~C:.KVIL.c:::i   ~! r   C.41   ~OOl!J   fV   :::i!c....:;1 rC.40f::J10




                                               RATIFICATION AGREEMENT BY THIE MICHIGAN
                                                       DEPARTMENT CIF TREASURY

                  WHIEREAS, the Michigan Legislature passed and the Governor signed Public Act 248
                  of 2000 to promote, inter a/ia, the development of high technology businesses
                  throughout the State of Michigan; and

                  WHEREAS, the Michigan Economic Development Corporation ("MEDC") has been
                  authorized by Public Acl 281 of 1986, as amended, being MCL 125.2151 et seq. (the
                  "Act"), to designate a certain number of certified technology parks within the State ·of
                  Michigan, by December 31, 2002; and

                  WHEREAS, the MEDC, for strategic marketing purposes, has chosen to designate the
                  aforementioned certified technology parks as "SmartZones•; and                                          ·

                  WHEREAS, the MEDC issued a Request for Proposals for Smar!Zone designation: and

                  WI-IIEREAS, the City of Muskegon ("City"), Grand Valley State University ("Univen;ity"),
                  and the Muskegon Local Developmen1 Finance Authority ("Authority") submitted a
                  Proposal the to the MEDC requesting designation as a Certified Technology Parl( of
                  certain areas located within the City's jurisdiction; and

                  WHIEREAS, !he Authority and the City approved a the lax increment financing plan


-·                ("TIFP''), pursuant to the Act: and

                  WHEREAS, the MEDC, the City, the Authority, and the University have entered Into an
                  agreement ("The Muskegon Lakeshore SmartZone Agreement"), which contemplates
                  the capture of lifly percent (50%), of the amounts levied by the State pursuant to the
                  state education act, Public Act 331 of 1993, being MCL 211.901 to 211.906, and loc;il
                  and intermediate school districts for a period of fifteen (15) years for levies imposed on
                  or after July 1, 2005, (such levies collectively referred to as the "Capture"), on the basis
                  of an initial taxable value determined as of December 31, 2000, for all purposes and in
                  those amounts authorized under !he Act by !he T!FP; and

                 WHEREAS, a condition of :he effectiveness of lhe Muskegon Lakeshore SmartZone
                 Agreement under the Act, is that the Michigan Department of Treasury, through the
                 State Treasurer, would accept and approve the Capture for the purpose of reducing
                 unemployment, promoting economic growth, and increasing capital investment in the
                 Cily, as determined by the State Treasurer; and

                  WHEREAS, the State Treasurer has reviewed the terms and conditions of the Capture
                  and found them to be acceptable. ,
 JUN 05 2002 09:45 FR MEDC-BUS SERVICES                    517 l41     ~b~~     tU   ~l~~i   1~4bl~~




          NOW THEREFORE, !he Michigan Department of Treasury by its State Treasurer,
          ratifies, confirms and agrees by this instrument lo accept and approve, the Capture
          under !he following terms and conditions:

                    1. The Muskegon Lakeshore Certified Technology Park shall be allowed lo
                       capture fifty percent (50% ), of the amounts levied by !he State pursuant lo the
                       slate educa!ion act, Public Act 331 of 1993, being MCL 211.901 to 211.906,
                       and local and intermediate school districts for a period of fifteen {15) years for
                       levies imposed on or after July 1, 2005, on the basis of an initial taxable value
                       determined as of December 31, 2000, for all purposes and in those amounts
                       as detailed in the TIFP and authorized under the Act.

                      Signed on behalf of.the Michigan Department of Treasury this·_~ day
          of _ _ __, 2002.

                               MICHIGAN DEPARTMENT OF TREASURY


                               By:· _ _ _ _ _ _ _ __
                                     Douglas B. Roberts
                                     State Treasurer



·. ._,,                 This ratification ls agreed to and
          accepted this _ _ day of _ ___, 2002 in full
          compliance with Section 2 of Public Act 281 oi 1986, as amended, being MCL 125.2151
          et seq,
                           THE MUSKEGON lAKESHORE LOCAL DEVELOPMENT
                           FiNANCE AUTHORITY

                               By:    ~Aq.~
                                       onaldSelfert
                                      Chairperson




                                                                                             **   TOTAL PAGE.03   **
          APPENDIXC

TO BE PROVIDED BY THE CITY OF MUSKEGON.
                                            RESOLUTION CREATING LDF A DISTRICT
                                                                                2001-133(c)
        Minutes of a reguln:r meeting of the City Commission of the City of MU5kegon, County
of Muskegon, State of Michigan, held at the Cily Hall in ,aid City on the 13th day of November,
2001, at 5:30 o'clock p.m. prevailing Eastern lime.

PRESENT:        Memb~r$ -.-~::,..,hJ.Se.,o"'h,.ee,;rd"--,_,,.""'.p"'2,,ta"'r,..:·o,__,.....::Aeas"'l"'ak,,,s,,'o~n,._,,-"'B"'en.,,es;d,._,i"'.c"'1;..,_,_Flce1,._1i,_,ec,.,_ _ __

                     Nielsen                SchwP.HlP.r

ABSENT:         Members ---'N,,o,en,::e'------ _____ ....................._.... ___ .. ,                                                 ..____ .... . .. _______ ...


       The following preamble and resolution were offered by Member -~.S~pa=t=a~r~o_ _ and
supported by Member ..:'ichweiflcr:

       \VHEREA.S, pursuant to the proYisions of Act 281, Public Acts of Michigan, 1986, as
amended ("Act 281 ") tht: City of Muskegon (the "City") created the Local Development
Fimmc(: Authorily of the City of Muskegon (the "Authority") by a resoh1tion adopted by the City
Commission (the "LDFA Resolution''); and

        WHEREAS, the City Commission has decided to create a new district, lhe Mu~hgon
L~keshore SmartZ.o.ne, Di:ttrict 3 ( "Di,irict 3 ") within which th" Authority exe,Tcisi,$ its powers
(the "Distric..-t''); and

       WHEREAS, pursuant to Act 281 the City is required to hold a public hearing on I.he
proposed establishment of District 3; (lild

       WHEREAS, on August 28, 2001, tbe City Commission conducted a public hearing on
the proposed establishmeut of District 3; and

       WHEREAS, more t:h

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