City Commission Packet Archive 07-24-2001

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                 CITY OF MUSKEGON
                 CITY COMMISSION MEETING
                                JULY 24, 2001
          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. Appointments to Various Boards/Committees.             COMMUNINTY
                    RELATIONS COMMITTEE
                 c. Liquor License Request (2185 Henry). CITY CLERK
                 d. Change to Request to Construct 3 Houses on Lawrence Street.
                    PLANNING & ECONOMIC DEVELOPMENT
                 e. Sale of Non-Buildable Lot      on   Austin   Street.   PLANNING   &
                    ECONOMIC DEVELOPMENT
                 f.   Consideration of Bids Laketon Ave. Wood to Peck. ENGINEERING
                 g. Consideration of Bids City Hall Tuck Pointing. ENGINEERING
                 h. Request to amend an Encroachment Agreement. ENGINEERING
•   PUBLIC HEARINGS:
•   COMMUNICATIONS:
•   CITY MANAGER'S REPORT:
•   UNFINISHED BUSINESS:
                 a. Sale of DDA Refunding Bonds. FINANCE
•   NEW BUSINESS:
                 a. Accept the resignation of Vice Mayor Scott Sieradzki from the City
                    Commission. ASSISTANT CITY MANAGER
                 b. Approve process for Appointment to the Vacant Seat on the City
                           Commission. ASSITANT CITY MANAGER
                      c. Vote to Elect A Vice-Mayor for the City Commisison.                              ASSISTANT
                           CITY MANAGER
                      d. Appointments to Various Boards & Committees.                                    COMMUNITY
                           RELATIONS COMMITTEE
                      e. Second Quarter 2001 Budget Reforecast: FINANCE
                      f.   DDA Plan Amandmant. PLANNING & ECONOMIC DEVELOPMENT
                      g. Resolution of Intent to Create Seaway Industrial Park LDFA.
                           PLANNING & ECONOMIC DEVELOPMENT
                       h. Resolution of Intent to Create Smart Zone LDFA. PLANNING &
                           ECONOMIC DEVELOPMENT
                      i. Muskegon Area Plan Funding Request. PLANNING & ECONOMIC
                         DEVELOPMENT
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 10 minutes if previously registered with City Clerk.)
o   ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO
ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CJTY OF MUSKEGON. PLEASE CONTACT GAIL A. KUNDINGER,
CITY CLERK, 933 TERRACE STREET, MusMI 49440 OR BY CALLING (231) 724-6705 OR TDD: (23 t) 724-4172.
Date:      July 24, 2001
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 Commission
Worksession/Special Meeting that was held on Monday, July 9, 2001;
the Regular Commission Meeting that was held on Tuesday, July 10,
2001; and the Special Meeting that was held on Wednesday, July 11,
2001.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
        CITY OF MUSKEGON
          CITY COMMISSION MEETING
                                 JULY 24,2001
       CITY COMMISSION CHAMBERS                             @   5:30 P.NL


                                      MINUTES
   The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933
Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, July 24, 2001.
   Mayor Fred J. Nielsen opened the meeting with a prayer after which members of
the City Commission and members of the public joined in reciting the Pledge of Alle-
giance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
   Present: Mayor Fred J. Nielsen; Commissioner John Aslakson, Jone Wortelboer-
Benedict, Robert Schweifler, Clara Shepherd, and Lawrence Spataro; City Manager
Bryan Mazade; Assistant City Attorney John Schrier and City Clerk Gail Kundinger.
  2001-85 CONSENT AGENDA:
               ci.   Approval of Minutes. CITY CLERK
  SUMMARY OF REQUEST: To approve the minutes of the Commission Workses-
  sion/Special Meeting that was held on Monday, July 9, 2001; the Regular Commis-
  sion Meeting that was held on Tuesday, July 10, 2001; and the Special Meeting that
  was held Wednesday, July 11, 2001.
  FINANCIAL IMPACT:       None
  BUDGET ACTION REQUIRED:          None
  STAFF RECOMMENDATION:            Approval of minutes
               b. Appointments to Various Boards/Committees. COMMUNITY
                  RELATIONS COMMITTEE
  SUMMARY OF REQUEST: To appoint Tim Bosma to the Historic District Commission to
  fill the spot open as a member who resides or has occupational or financial interest
  in one or more of the historic districts. Also, to appoint Spencer Norman to the Hos-
  pital Finance Authority to fill the citizen opening. Community Relations Committee
  voted on July 2, 2001 to recommend these appointments.
  FINANCIAL IMPACT:       None
  BUDGET ACTION REQUIRED:          None
  STAFF RECOMMENDATION:            Approval of appointments
             c. Uquor License Request (2Hl5 Hemy) CITY CLERK
SUM,\11ARY OF REQUEST: The Liquor Control Commission seeks local recommenda-
tion on a request from CSTS, Inc., to transfer ownership of the 2000 Class C and SDM
licenses with Entertainment Permit from Pop-A-Top Tavern on Henry, Inc.
FINANCIAL IMPACT:      None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            All departments are recommending approval.
             d. Clhomige to Request to Constnuct 3 Houses orrn Lrr,iwrer1ce Street.
                PLANNING 8, ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: In August 2000 Mr. Lawrence Baker of Artistic Builders pur-
chased a vacant buildable lot on Lawrence Street (parcel number 24-610-000-
0124-00) for the construction of 3 single-family homes. Since Mr. Baker subsequently
discovered that the parcel was larger than first thought, it would be possible to
construct 4 homes on lots of 99 feet each. He would like the City to revise his re-
quest and the deed to allow construction of 4 houses, with the last house to be fin-
ished in 36 months from the date of purchase, which was August 14, 2000.
FINANCIAL IMPACT: The construction of another single-family home will add to the
tax base and add another home to the housing stock.
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:         To approve the attached resolution and authorize
both the Mayor and City Clerk to sign said resolution.
            f. Consideraticm of Bids Laketon Ave. Wood to l"eck. ENGINEERING
SUMMARY OF REQUEST: The contract to Mill & Resurface as well as the construction
of a left turn Laketon from Wood to Peck be awarded to Nagel Construction out of
Moline since they were the lowest (see attached bid tabulation) responsive and re-
sponsible bidder with a bid price of $389,036.65. Furthermore, your award of this
contract, if granted, is contingent on the State's approval since they are contribut-
ing $150,000 into this improvement. Other bidders were:
             l. C & D Hughes with a bid of $513,288.84
            2. Grant Tower with a bid of $440,266.17
FINANCIAL IMPACT: The construction cost of $389,036.65 plus associated cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED:          Adjust the original budget from $350,000 to $450,000.
The additional money would come from the. money thc1t was allocated for Division
Street. This revision would be reflected in the second quarter update.
STAFF RECOMMENDATION:            Award the contract to Nagel Construction.
            Ii. ltegmest to !lm@II'!d ara Ericmaclhment Agreemeli'llf. ENGINEERING
SUMMARY OF REQUEST: Hawkeye Environmental is requesting your permission to
amend the encroachment agreement 98-109 I to include the installation of one
more well in addition to those that are present. The well would be, if approved, in-
stalled in the terrace in front of 1249 Peck as shown on the attached sketch.
    FINANCIAL IMPACT:          None
    BUDGET ACTION REQUIRED:             None
    STAFF RECOMMENDATION:           To approve the encroachment agreement subject
    to the same conditions set original.
Movloii'I lby Commlssiol'ler Asirc:ilkson, l>econd by Commis:s!oiner Schweifler to approve
the Com,,mnl AgeD'lda woih exceptio111 of Item e and g.
    ltOfi.l VOTE: Ayes: Benedict, Nle!serrn, Sc:lhwelfler, Shepherd, Spataro, Asiakson.
                    Nayll: Noi'le
    MOTION ADOPTED


    2001-86 !TIEMS IU:MO'\IED FROM THIE CONSENT AGIENDA
               e. Sale of No!'I-Buifok11bie Lot on Austin Street PLANNING & ECOf\lOMIC
               DEVELOPMENT
    SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable lot (Parcel
    #24-215-008-0028-00) on Austin Street to David Wotli of 1724 Beidler (see attached
    map). Approval of this sale will allow Mr. Wotli to expand the current yard on his
    rental property and possibly construct a garage. The subject parcel is being of-
    fered to Mr. Wolti for $100. The parcel is located next to another vacant unbuild-
    able parcel, which is owned by a property owner across J-he alley. City policy for
    sale of unbuildable lots states that the sale of the lot will be "to expand/improve or
    beautify existing property".
    FINANCIAL IMPACT: The sale of this lot will allow the property to be placed on the
    City's tax rolls thus relieving the City of continued maintenance cost.
    BUDGET ACTION REQUIRED:            None
   STA.FF RECOMMENDATION:        To approve the attached resolution and to author-
   ize both the Mayor and the Clerk to sign this resolution.
Motion by Commissioli'ler Spakm::i, second by Commissioner Schweifier to approve the
:.ale of the lot.
   ROil '\!OYIE: Ayes: Schwe!f!ew, Sheplhen:11, Spakirc, Asiaksorn, lilrenedict, I\Helsen.
                    Nays: None
   MOTION ADOPTED
                    91. Com,id!eratkm of Bids City Hal! Tuck l'oln~l111q. ENGINEERING
   SUMMARY OF REQUEST: The contract to Caulk, Tuck Point and Seal City Hall to D. C.
   Byers Company out of Grand Rapids since they were the lowest (see bid tabula-
   tion) responsible bidder with a bid price of $46,600 (including the chimney).
   FINANCIAL IMPACT:          The construction cost of $46,600.
   BUDGET ACTION REQUIRED: Adjust the original budget from $25,000 for partial re-
   pairs work to $46,600. The addi"fionc1I money wouid come f(Om the savings on the
   PD parking lot project ($7,000) that was budgeted at $32,000 but final cost was
   more like $28,000 and $15,000 from the Restlawn Cemetery Office Renovation proj-
    ect which was budgeted at $75,000, however, the bids came in much lower. This
    revision would be reflected in the second quarter update.
    STAFF RECOMMENDATION: Award the contract to D.C. Byers.
Motio!'ll l:Jly Ccm111mu$s!oe1er Asiak:so!'ll, seco5'ld lbiy Commns:11io!'ller Schweifler to ©Jwe1rd the
Ibid fo D. C. !lyern.
    ROU VOU: A;yes: Shepherd, Spait©Jro, ,i\slaikso!'ll, iael'lledkt, Nle!seU'l, Schwemer.
                 Nays: None
    MOTION ADOPTED


•   ll'UBUC HEARINGS: None.
•   COMMUNICATIONS: None.
•   CITY MANAGER'S Rl!:i'ORT: None.
    2001-87 UNU:!NiSIHED BI.ISINIESS:
                  a. Sale of ODA Rel'unding Som:ls. FINANCE
    SUMMARY OF REQUEST: Previously, the Ci-ty Commission authorized staff to enter
    into negotiations for sale of up to $4.5 million of LTGO bonds for the purpose of re-
    funding the outstanding 1989 DDA Series A and Series D tax increment bonds to
    achieve significant interest savings. Treasury Department approval has been re-
    ceived and staff has selected (via competitive RFP process) First of Michigan to un-
    derwrite and market this bond issue. The bonds are scheduled for pricing on Mon-
    day, July 23rd and will be brought to you the following evening for approval of the
    sale. Attached is the "Resolution Approving Sale of the City of Muskegon 2001 De-
    velopment Refunding Bonds (General Obligation Limited Tax)" together with the
    "Bond Purchase Agreement" and "Escrow Agreement" that you will be asked to
    approve. Approval of these documents is the final official action needed for sale
    of the bonds. There are some blank spaces in the documents that will be filled in
    once financial details of the bond sale are known.
    FINANCIAL IMPACT: The exact financial impact will not be known until the bonds
    are priced for sale on Tuesday, July 23rd.
    BUDGET ACTION REQUIRED: None at this time
    STAFF RECOMMENDATION: Approval of the attached awarding resolution.
Motlo111 by Comml$sloner Spakliro, second !by Commhisioner .Asknlcson to approve the
sale of DDA Bonds.
    ROLL VOTIE: Ayes: Spataro, Aslal<son, Benedict, Nielsen, Scl'llwe!l!er, Shepherd.
                 lllays: None
    MOTION ADOPTED

2001-88 illli:W SIUISINESS:
                  l(JI.   Accept the ~esignia1li@n of Vice M©lyor Scott Siemdzkn from the C!ly
                          Commission.
   SUMMARY OF l~EQUEST: To accept the resignation of Vice Mayor Scott Sieradzki
   from the City Commission. On Friday, July 13, at l :00 p.m., Vice Mayor Sieradzki
   held a Press Corn'erence to announce his resignation from the Muskegon City
   Commission, the Mayoral Race, and all other City Commission appointed Boards,
   Commissions and Committees. A copy of the Press Release was provided to the
   City Clerk's Office and entered as official notification of his resignation.
   FINANCIAL IMPACT:       None.
   BUDGET ACTION REQUIRED: None.
   STAFF RECOMMEI\IDA TION: Per the advice of City Attorney, Tom Johnson, it is rec-
   ommended thc1t the Commission accept Vice-Mayor Sieradzki's resignation.
Motion by Commissio111er Asiir.lkson, second by Commbisioirner Schwemer fo accept ihe
resignatioirn of Scott Siemd;:ki Urom the Commission.
   ~OU. VOTE: Ayes: Spaftcm,, As!akson, Benedict, 1\iie!®e111, Scltlweifier, Shepherd.
                Nays: None
   MOTION ADOPTED


                b. Apprnive process for appointment fro the 1t©1c0111t seoit on the City
                   Commission.
   SUMMARY OF REQUEST: To request approval of the process for the appointment to
   the vacant seat on the CHy Commission. The proposed process is consistent with
   the one approved and implemented by the City Commission when there was a
   vacancy on the City Commission in 1997.
   FINANCIAL IMPACT:       None.
   BUDGET ACTION REQUIRED: None.
  STAFF RECOMMENDATION: Per consultation with the City Attorney, Tom Johnson,
  and in keeping with past practice, staff recommends approval of the proposed
  process.
Mot!o11 blf C@mmissioner Schweif!er, second by Commissioner 5patcm, to @pprove the
process ffor filling 'lhe i!CIIC<C!lllt Commission seat
   ~OU. VO'fll:: Ayes: Spc:dG1ro, Asl@k:so1r1, Benedict, Nielsen, Sclhweifler, Shepherd.
               Nays: llllone
  MOTION ADOPTED


                c. Vote to eied a Vicll!;-1\/loiyor for tlhe City Commls~lo11.
  SUMMARY OF REQUEST: Vote to elect a Vice-Mayor for the City Commission. This
  vacancy is as a resul-t of the resignation of Vice Mayor Sieradzki and acceptance
  of that resignation by the City Commission.
   FINANCIAL IMPACT:       None.
  BUDGET ACTION REQUIRED: None.
   STAFF RECOMMENDATIOI\I: Staff recommends that the Commission consider a vote
   to elect a Vice-Mayor for the City Commission.
MoiioWD by Commissi<0WD®r lS@i11edllcfr to <illppoi111il Comm!;i;i.io!'ller Asl©Jksio111 Vice-M@y<er.
   MOTION RIJLl!ED DEAD DI.JI/: TO LACK OF SIJP!PO~T.
Motio11 lby C<emmisslo11er As!@ktioi11, sec0>i11d lby Commff:.illioi'ller Schwe!fffer fo app,0!1111\'
Commi:'!sioi'ler Shepherd Vice-M<ayor.


   lllOU. VOTiE: Ayes: Nielsen, Schweifler, Shepherd, Spafomo, A:.h.llkson.
                 l\llays: R@i111l:H::ilk:t
   MOTION ADOPTED


                  dl. Appol11111tments fo Various Soard:. & CommiWees. COMMUNITY
                      RELATIONS COMMITTEE
   SUMMARY OF REQUEST: To eliminate five vacant at-large positions on the Image
   Committee. Community Relations Committee voted on July 2, 2001 to recommend
   the elimination of the five positions.
   FINANCIAL IMPACT:             None.
   BUDGET ACTION REQUIRED: None.
   STAFF RECOMMEI\IDATION: Staff recommends that the Commission consider a vote
   to eliminate the five vacant positions on the Image Committee.
Motion lby Commi5isio1111er Spl)lfoJro, ;;eccmd by Vice-M@yor Sihlepl'lll:mll to eHmn111ate va-
cant posil'ions on the image Committee
   ROLL VO'l'IE: Ayes: Sd11welfler, Shepherd, Spataro, Asiakson, Benedict.
                 NCll'jf!\1: N!e!s~m
   MOTION ADOPTED


                  e. Seco1r1d Quarter 2001 l'ludget Reforeca$t FINANCE
   SUMMARY OF REQUEST: At this time staff is transmitiing the Second Quarter 2001
   /Budget Reforecast which outlines proposed changes to the original budget that
   have come about as result of changes in policy priorities, labor contracts, updated
   financial information, or other factors. For the next meeting, an action item will be
   placed on the agendci for adoption of the proposed second quarter budget re-
   forecast together with any additional changes deemed necessary by Commission-
   ers.
   FINANCIAL IMPACT: The second quarter 200 I Budget Re forecast reflects relatively
   minor changes to General fund revenue and expenditure estimates. We are
   watching the income tax numbers very closely but at this time have not adjusted
   the originc1! budget figure of $7.0 million, Second quarter withholdings (due at the
   end of July) will give a better indication as to whether the income tax needs to be
   revised downward because of economic conditions. SignificanJ- changes to other
   funds include:
   g  Allocation of $3C0,000 of LFDA pass-thru funds to the Public Improvement fund to
   help finance the Seaway Industrial Park project. Property acquisition costs for this
   project are higher than originally anticipated and it is necessaiy for the City to
   complete acquisition before federoi grant funds will be released.
   ®   Inclusion of the recently approved large meter replacement program in the wa-
   ter and sewer funds.
   ®  Cost estimates for other several !arge capital projects have been adjusi"ed due
   to project delays, bid differentials or other factors as .shown on pages 28-30.


   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 ,";eforecast and related amendments.
   NO ACTION TAKEN


                 ~.   liJIDA IP'k11n Amerodmerd. PLANNING & ECONOMIC DEVELOPMENT
   SUMMARY OF REQUEST: To approve the attached resolution setting a public hearing
   on August 28,2001, for the consideration of amending the Downtown Development
   Authority Development and Tax Increment Fincincing Plans. The proposed
   amendment shall remove the former Teledyne property (Muskegon Sma1iZone)
   from the DDA development area. The proposed action is consistent with and
   necessary for the establishment of the Muskegon Lakeshore SmartZone LDFA.
   FINANCIAL IMPACT: The DDA currently loses more then $14,000 in tax increment
   revenue annually due to a decreased assessed value on the Teledyne property.
   Removing the property will result in additional tax increment revenues for the DOA.
   BUDGET ACTION REQUIRED: None.
   STAFF RECOMMENDATION: To approve the attached resolution.


Motion by Commissioner Spataro, seco1111dl foy Commissio1111er Scli"lweifler to set       ©J   public
hearing oro the DDA l'!«llro Amendment.


   ROLL V01TIE: Ayes: Spafo1ro, AsirCJksoro, l!l,e1111edk:t, Nielsen, Schwelilew, Slhepherd.
                Nays: ~one
   MOTION ADOPTED


                 g. ~teimHu'iffion ©>~ ~R~te111it to C~eate Seawmr ondm1Mal l'arlk LliJIFA.
                    PLAI\JNING & ECOl\1O/v\lC DEVELOPMENT
   SUMMARY OF REQUEST: To approve the attached resolution of intent colling a pub-
    lie hearing regarding the establishment of an LDFA District for the development of
    the Seaway Business Par!<. This request is the first step in the creation of the Seaway
    Business Park LDFA.
    FINANCIAL IMPACT: it is anticipated that the LFDA may capture up to an esti-
    mated $900, 000 in tax increment revenues over a period of 15 years.
    BUDGET ACTION REQUIRED: None.
    STAFF RECOMfv\ENDATION: To approve the attached resolution.


MotnoD'I !by Commlssio111er Spataro, second by Commissioner Schwemer to set a public
he11.1riD'lg onil the antell'li ito cre©Jte   -ti   Seowoy industrkii P©Jrk LDFA Pkm.


    ROLL VOTIE: Ayei;: Spatcro, A:sll:iiki;tm, 18enedicit, lllleisen, Schwe!f!er, Shepherd.
                    Nays: Noirne
    MOTION ADOPTED


                     I'll. Res(l)il!Jfion of lirntent to Cre(()Jte Smart z,one LDfA.      PLANNING &
                          ECONOMIC DEVELOPMEI\IT
    SUMMARY OF REQUEST: To approve the attached resolution of intent calling a pub-
    lic hearing regarding the establishment of on LDFA District for the development of
    the Muskegon Lakeshore SmartZone. This request is the first step in the creation of
    the SmartZone.
    FINANCIAL IMPACT: It is anticipated that the LDFA will capture more than an esti-
    mated $10 million in tax increment revenue over a period of 15 yec1rs for the devel-
    opment of the SmartZone
    BUDGET ACTION REQUIRED: None.
    STAFF RECOMMENDATION: To approve the attached resolution.


Motioll'il by Commissioner Spak:!lro, :11eco111d by Vice-Mayor Shepherd to set a public
heari111g on the intent to create a SmariZone U)FA.


    ROLL VOTE: Ayes: Aslak:.on, Benedict, Nleise1111, Schwelfler, Shepherd, Spak11ro.
                    Nays: None
   MOTION ADOPTED


                     i. Muskeaon Area ?IC!in fl.Dlildill'llg Request.          PLANI\IING & ECOI\IOMIC
                        DEVELOPMENT
   SUMMARY OF REQUEST: To approve the attached resolution authorizing a contribu-
   tion from the City of /V\uskegon for l'he 1\/iuskegon A,rea Plan, in the amount of
   $12,301 , to be paid for over the next two fiscal years.
    FINANCIAL IMP/.\CT: The contribution from the City of Muskegon will be $12,301,
    which will be paid over the next two fiscal years.
    BUDGET ACTION REQUIRED: The portion to be paid from the 2001 Budget year, in
    the amount of $6150.50, will come from the City of Muskegon General Fund Con-
    tingency account.
    STAFF RECOMMENDATION: To approve the attached resolution and authorize the
    Mayor and City Clerk to sign.
Motion by Commlls~lo1111er SpiOJkuo, secol!1ld by Commissioner Aslakson 'ito approve the
furidung ffeOJuest cf S12,301.


    ROU. VOU: Ayes: Beruedk:i, i\He1sei'1l, Sd'IJ~1emeo-, Shepherd, Spataro, Aslakson.
                Noiys: None
    MOTION ADOPTED


•   ANY OYHER !aUSINESS: None.
•   PUllr$UC PAllH!C!f?AnON: Various Comments were heard.
•   AID.llOURNMENl!': The regular meeting was adjourned.


Respectfully submitted,




Gail A. Kundinger, CMC
City C lerk
Date:       July 16, 2001
To:         Honorable Mayor and City Commission
from:       Community Relations Committee
RE:         Appointments to Various Committees/Boards



SUMMARY OF REQUEST: To appoint Tim Bosma to the Historic
District Commission to fill the spot open as a member who resides or
has occupational or financial interest in one or more of the historic
districts.

Also, to appoint Spencer Norman to the Hospital Finance Authority to fill
the citizen opening.

Community Relations Committee voted on July 2, 2001 to recommend
these appointments.



FINANCIAL IMPACT: None



BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION: Approve the appointments.
                                       HISTORIC DISTRICT COMMISSION


PURPOSE

Identify and evaluate structures or sites worthy of preservation, and be involved in projects or programs to
this end. Disseminate public information concerning these structures and sites, and consider ideas regarding
them with groups of individuals interested in historic preservation. Make appropriate recommendations to the
City Commission for encouraging and achieving historic preservation.

MECHANICS

ENABLING LAW:           City Ordinance (Sec. 11-20 - 11-36) - Oath not required.
APPOINTED BY:           City Commission
MEETING:                First Tuesday of each month @ 4:00 P.M.
                        City Hall - Commission Chambers
TERM:                   3 Years

COMPOSITION

TYPE                    DESCRIPTION

A                       1 City Commissioner
B                    ,/1 Registered Arc_l).i!l,..cP
C                       2 Members from local preservation societies (at least one of whom
                        is a member of the Muskegon Heritage Association)
D                      2 Persons who reside or have occupational or financial interest
                        in one or more of the historic districts.
E                       1 Citizen or more to complete the membership to seven (7) people.


CURRENT MEMBERS

(Staff Liaison - Michael Wee)

TYPE          NAME                        ADDRESS                      ZIP     PHONE              TERM EXP.

A             Clara Shepherd              408 Monroe Ave.              1       725-8130

B                                                                                                 1/31/04

C             Jon Colburn                  1284 Ransom                 2       725-8240           1/31/03

C             Bill Seeback *              475 W. Western               0       722-4362           1/31/03

D             Daniel Chambers             458 W. Webster Ave.          1       722-1980           1/31/02

D         --tinda-Brcmks=Howell-·---·-664-Hettsto                              7'22-2-121         1/3~/04' (''4-4-''j"'"'"l)

E             Glenn Eacker                 1831 Jefferson St.          1       726-6867           1/31/02

              Tim Bosma                    557 W. Western Ave.         0       728-9519-W         Ex-Officio




(* - Chairperson)                                   - 16 -                                  2001-COMRELBOOK.doc
JUN-05-01       01:27        PM        BOSMA.ARCHITECTS                                                                          722     0413                                      P.02
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                    • _,.Bo"-'sm=a_ _ _ _ _ _ _ _ _ _ _ CATE:                                                                      ~-5-2001

        HOME AD• IU!SS: • 17940 llolcanb M, 1 Grand Haven, MI 49417
                                         (Stiut. Clly, State, Zip)
       ,~of.IE PHONE #;__{§_16)842-4105                                                               ······. WOIIK PHONe #:;-.,(.::,23::.:lt..:.)7_:c28:c..-;;;95a;;l...
                                                                                                                                                                      9 _ _ _ __

       OCCUPATION:               Architect
                                       (ll'9t!l<ld, givofom,orQOO~al1011)
       liiOI.ICATION: llaoh, of Architecture - university of Michigan


       P!;.RSONAL & COMMUNITY AC".'IVITII!!; ___.lli:;_tQ.Ci.G .Di!.W..sci..\ot...,Cgnn""'"""'t...::.-..cAclvi.=·,..,,,ors.__ _ _ _ _ _ __




       PSR$ON•, ReFeReNCes: (l'lo••• llot lh• ,ome •nd phone numbero of1nroo p,,roonol rofo,.nce•)

       1. Cla~. Sh~!J!R=-ahifi'-"erd'-,------------
                             (Nam•)                                                                                                 (Phone Number)
       i.     Tim Michalski                                                                                                  726-2756
                             (Nam•)                                                                                       ----~(~;,-=...on-.~~-~~~-~-----
       1,_Ric ~Sc,.,o""tt"----~-------------                                                                                 724-6774
                             (Ntim,

       PlEASG INDIOAT!i! BOAIIOGIOOMMll'l51<lN5/COMMITToe3 IN1cRE37!;'0 IN (lERVINC ON - MARKING 111 AS
       YOUR FIIIST PFIIPl!~!!NO!:

       ( ) Bo'lld ol Convoll$Q"'                                                                                 ( ) Houelng Commloolon          ·
       ( ) BOil!tl ol Re,lew                                                                                     ( ) Hou,ilnQ 1!11,ek RAllll!W Commll1eo
       ( ) C\otl\•lOrr Comrrittn11                                                                               ( ) Imago COmml1'la
       (
       (
            ) cmzen'o Pelee Ravi.w 801"2
            ) Ott,, l!mplcyeea Pono/on !Oard
                                                                                                                 ( ) 01oome Ti~ Board   of"""'""'
                                                                                                                 ( 1Land Rt\illlztl011 Comm/nee
       (
       (
            ) o~u'3•"'""    Com-on
            ) CDBG-clt1Ht1"lJ Oltb1ct Coundl
       ( )O~UldL;i.1'$!') eo.,,,i •
       ( ) DOYonlWln °"""'°Pmo1'11 Aut11ottty/Browntl<!ld Bcer,I
                                                                                                                 (!
                                                                                                                 ( ) Lok1n S.rvl:es Boar,:!
                                                                                                                     Loan Fund J!<jvlaory C<Jmmll!M
                                                                                                               ( LOIHII Oevorop. ''""""' hlOlo~ty
                                                                                                               ( looal Olllotn CQmponoel:k>n com.
       ( ) ~.., Commhlo/on                                                                                     ( ) llloehllnf:ol Bo«<J <II E!xsmt,,o,.
       ( ) e111.,1;,;1 a.,.i,1   ot Appeata                                                                    ( ) !'!an~ Con,mlHlon
       l ) !rte,;>rl•• Comn,..,lty ¢1U.oo Counoll                                                              ( ) l'lumlilff8 !aord ol "l)pealo
       ( )e~,, Oppo1111nttr 0Q"11lliilw                                                                        ( ) l'olc:o/l'mmon'o Ponolon 8oaru
       {X) H~tono t:i'olrfci Comnvsslon                                                                        ( l rax J/IOlllf!'ilm Finance Autnorlly
       ( ) HO!lpllal Fin"""" Auttionty                                                                      . (\ ))Ollie,,:_
                                                                                                                   :ZOnlng 8oa,,j     Apfl'olt
                                                                                                                                    Qt_
                                                                                                                             __          _ _ _ _ _ __
       ( ) MOU91Mgll!Ulldl"ll Cod• Board ol Appell•

       • A~aoh Adoltlonal Snoats or R..,um, 11 o.. re11.

                                        City Clo,k', Offlco, oia Tenece Sl, P. 0. Box 536. Muokogon. Mi 4114--!3-01>36




                                                                                              "       ""
                                         HOSPITAL FINANCE AUTHORITY


 PURPOSE

 To construct, acquire, reconstruct, remodel, improve, add to, enlarge, repair, own and lease hospital facilities
 within the boundaries of the City of Muskegon for the use of any non-profit hospital; lend money to a hospital
 for those purposes; refund or refund in advance obligations of the Authority or the Michigan State Hospital
 Finance Authority; or refinance the indebtedness of a hospital.


 MECHANICS

ENABLING LAW:           Public Act No. 38 of 1969 - Oath not required.
APPOINTED BY:           Mayor/City Commission
MEETING:                Upon Demand
TERM:                   5 Years


COMPOSITION

                        DESCRIPTION

                        7 Citizens (a majority shall be residents of the City of Muskegon)


CURRENT MEMBERS

(Staff Liaison - Bryon Mazade)

TYPE           NAME                        ADDRESS                       ZIP      PHONE             TERM EXP.

A              George Scully *             3086 Knollwood Ct.                     755-4565          1/31/02

A             William Roche .              1668 Beach                    1        755-0856          1/31/02

A             Bess Commodore               1917 Carriage                 2        773-8858          1/31/02

A             David Medendorp              1718 Beach                    1        755-6880          1/31/03

A                                                                                                   1/31/03

A             Thomas O'Toole               2462 Winchester Rd.                    755-2432          1/31/03

A             William Tardani              657 Jackson                   2        722-2867          1/31/04




(* . Chairperson)                                    - 17 -                                  200 l •COMRELBOOK.doc
                                                                                                                 RECEfVED
                                                                                                                           '.,""'-"'i
                                                                                                                           UC.I.,       :i_   2/JOO
Please Type or Print. Appl/cations w/11 be kept an Ille for one year. AJ/ a,,pllcanls s                            II> a        ~-
                                                                                                                1;111': MAI\IA<illii!l'a
                                                                                                                       O.olW;l~ - . •
NAME: Spencer Norman Jr.                                                                      DATE:      November 26 }'foog.;.::a
HOME ADDRESS:_ _.....a3;,1,::2:..C::,:r..:;o.,ss:....:,S;;;tr..:;e::.et,_;~M.,u,.s.,k,,.eg,.,o,.,n,.,,_,M,,,I_4a,.9,::4,:,4e,,2.,__ _ _ _ _ _ _ _ _ _ _ __
                      (Slreet, City, State, Zip)
                                                                                   WORK PHONE#:,_ _ _ _ _ _ _ _ _ __
HOME PHONE#: (231) 722-7109


OCCUPATION: Real Estate Appraiser
                     (If retinld, give l'onner occupalion)


EDUCATION: BS (Applied Math.) & MBA - Western Michigan University



PERSONAL & COMMUNITY ACTIVITIES: West Mich Shoreline Regional Commission; Muskegon Land
 Use Task Force; Ml Alliance of Coops; lntercultural Community Leadership Academy


INTEREST IN SERVING: Housing/ Community & Economic .Development; Health; Youth development



PERSONAL REFERENCES: (Pleau list the name and phone n u - of 1hree personal references)

1. Janie P. Brooks                                                                               777-0265
                        (Name)                                                                          (Phone Number)

2. Dr. James Jackson                                                                             739-5574
                         (Name)                                                                              (Phone Number)

3. Ciggzree S. Morris                                                                            737-8033
                         (Name)                                                                              (Phone Number)


PLEASE INDICATE BOARDS/COMMISSIONS/COMMITTEES INTERESTED IN SERVING ON - MARKING #1 AS
YOUR FIRST PREFERENCE:

( ) Board of Canvassers                                                                 ( 1 Hauling Commission
(>0 Board of Review                                                                     ( ) Image Committee
( ) Cemete,y Committee                                                                  ( ) Income Tax Board of R.,,,_
( ) Citizen's Police Review Board                                                       ( ) Lend ReutliZation Conmiltee
( ) City EIT1)1oyees Pension Board                                                      ( ) Leisure Services Board
 ( ) Civil Service CommlssiOn                                                           ( ) Loan Fund Advisory Committee
( ) CDBG-Cillzen's District Counci                                                      ( ) Local Develop. Finance Authority
{)Q Downtown Development Aulhorily/Bn,wnlield Board                                     ( ) Local Ollcel'a eon.>en•ation C'om.
{ ) Election Commission                                                                 ( _) Mechanical Boanl ol Examiners
( ) Ele<:lricel Board of Appeals                                                        (" Planning Commission
( ) Equal Opportunity Committee                                                         ( ) Plumbing Board of Appeals
( ) Historic District Commission                                                        ( ) PolicelFl-n's Pension Board
(X) Hospital Flnonc:e Authority                                                         ( ) Tex IRClement Finance Authority
                                                                                           ) Zoring Board d Appeals
( ) Housing/Building Code Board of Appeal&                                              (( )Other _ _ _ _ _ _ _ _ _ __

 • Attach Addilional Sheets or Reaume If Deainid.

 Return this form to:                City Managets Office, 933 Terrace St., P. 0. Box 536, Muskegon, Ml 49443-0536




                                                                          -    V    -
Date:     July 24, 2001
To:       Honorable Mayor and City Commissioners
From:     Gail A. Kundinger, City Clerk
RE:       Liquor License Request
          Pop-A-Top Tavern, 2185 Henry Street




SUMMARY OF REQUEST: The Liquor Control Commission seeks
local recommendation on a request from CSTS, Inc., to transfer
ownership of the 2000 Class C and SOM licenses with Entertainment
Permit from Tavern on Henry, Inc.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION:         All Departments are recommending
approval.
6   7   8
Afli rma tin· .-\clion
23 11724-6703
F.\:\/722- I 2 14

, \ ~Sl '.SSOI"
23 1/72 4-1,708
F:\:\1726 -S l Xl


Ct.'llll'll'fY
23 11724-1,783
FA:\/726-56 17

C ivil Su\'ic~
2 3 1/724 -67 16
F, \ :\/72 4-4405
                                                                        West Michigan's Shoreline City

Cle rk
2J 11724-1,711,
F.\:\17 H - 4 17X

                                      March 12, 2001
        Sl'n·in.•s
23 1/72H,7 l 7
F.-\:\ 172C,-25II I

l::ngi11l'uing
                                      To:            The City Commission through the City Manager
23 11724 -(, 7117
 F ,-\.'\/72 7-1,9114
                                      From:
 Fi ll:1 11 1.'.l'

 231/724-1, 7 13
                                                       11:ll{y L. K.leibecker, Chief of Police
 FA:\/724-1,71,X


 F i1T Dt.·1,1.
                                      Re:            Transfer of Ownership of Liquor License at 218 5 Henry Street
 23 I /7 24-6 792
 F ,\:\/724- (,985

 l11 ct111tl'        Ta~
 23 1/7 24-6770
                                      The Muskegon Police Depmtment has received a request from the Liquor Control
 F.-\:\/72H,7 68                      Commission for an investigation concerning the transfer of the current 2000 SDM license
 I11fo. Systems                       located at 2185 Henry Street. The applicants involved are Tammy and Charles Slater of
 23 1/724-(,744                       CSTS, Inc.
 F.\:\ /722 -43111

 Ll'i!)11rc Sn\'in ·
 23 1/724-67()4                       CSTS Inc. is requesting a transfer of ownership of the exi sting 2000 Class C & SDM
 FA:\/7 24- 11 %                      licenses with Entertainment Permit located at 2 185 Henry Street in Muskegon, Michigan
 .\ l :111 :1~lT
                      1
                          .s Office   from Tavern on Henry, Inc .
 231/724-(,724
 F ,\:\ /722- 1214
                                      Our department has spoken with both Tammy and Charles Slater of 4670 White Road,
 i\ l ayor's Offil'l'
 23 I /72 4-1, 711 1                  Muskegon, Michigan. 49442. Tammy has had past experience in the retail business
 F,-\\:/722- 12 14                    relating to the sale of alcohol. Both her and her husband request the transfer of the
 Nl'igh. & Cons t.                    license into their name and plan to continue the business at 2185 Henry Street currently
 231/724-(,7 15
                                      called Pop-A-Top.
 F.,\\:/72 6 -25111

  Pla 1111i11g/Zuni11g                We have searched our records and conducted a Michigan Criminal History Check and
 B l /724-670 2                       find no reason to deny this request.
 FA:\/724-67911

  Polin• l)t.•pt.
 23 1/72 4-(,751)
 F A\1722-5 1411                      TK/cmw
  Public \Vorl<.s
 2.l 1/724-4 11111
 f:\:\/ 72 2-4 IXX

 ·1·n •a.s11rcr
  23 1/724-(,7211
  FA.'\/724-67(,8


  \\'a icr Billin g Oe J) t.
  23 I /724 -1,7 1X
  FA:\/724-6 7<,X

  \ Vakr Filt ra tio11
  2.l 1/724 -4 I06
  F .\:\/755-5290

                                                City of Musl,egon, 933 Terrace Street, P.O. Box 536, Muskegon, Ml 49443-0536
MEMO
To:    Chief Tony Kleibecker

From: Det. Kurt Dykman

Date: 02-21-01

Re:    Transfer of Liquor License



Chief Kleibecker,

The Muskegon Police Department has received a request from the Michigan Liquor
Control Commission for an investigation from applicant CSTS, Inc. to be located at 2185
Henry St., Muskegon, MI. 49442.

CSTS Inc. is requesting a transfer of ownership of 2000 Class C & SDM licenses with
Entertainment Permit located at 2185 Henry St., Muskegon, Mi. 49441 In Muskegon
County from Tavern on Henry St.

I have talked with both Tammy and Charles Slater of 4670 White Rd., Muskegon, Mi.
49442. Tammy has had past experience in the retail business relating to the sale of
alcohol. Both her and her husband request the transfer of the license into their name and
plan to continue the business at 2185 Henry St. cmTently called Pop-A-Top.

I have searched MPD records and conducted a Michigan Criminal History Check and
find no reason to deny this request.

Respectfully submitted,




Det. Kurt Dykman


data/common/Slater
                    Michigan Department of Consumer & Industry Services
                           LIQUOR CONTROL COMMISSION
                                    7150 Harris Drive
                                     P.O. Box 30005
                              Lansing, Michigan 48909-7505

                             POLICE INVESTIGATION REQUEST
                                   !Authorized by MCL 436.1(4))

                                    January 26, 2001

To:    Muskegon Police Department
       Chief of Police
       980 Jefferson Street, P.O. Box 536
       Muskegon, Michigan 49443-0536                    Request I.D. # 100249

Chief Law Enforcement Officer

Applicant: CSTS, Inc. request to Transfer Ownership '00 Class C and Specially Designated
Merchant licenses with Entertainment Permit located at 2185 Henry, Muskegon, Michigan
49441 in Muskegon County from Tavern on Henry, Inc.

Please make an investigation of the application. If you do not believe that the applicants
are qualified for licensing, give your reasons in detail. Complete the Police Inspection
Report on Liquor License Request, LC-1800, or for Detroit police, the Detroit Police
Investigation of License Request, LC-1802. If there is not enough room on the front of the
form, you may use the back.

Forward your report and recommendations of the applicant to the Licensing Division.

       Please include fingerprint cards and $15.00 for each card, and mail to the Michigan
       Liquor Control Commission.

If you have any questions, contact the Licensing Division at (517) 322-1400, after 10:00
a.m.

LC-1972 Rev. 6/92
4880-1658
                                                     STATE OF MICHIGAN
                                         DEPARTMENT OF CONSUMER & INDUSTRY SERVICES
                                                LIQUOR CONTROL COMMISSION

                                                                         RESOLUTION
                                                                              200'1- 85 ( C)
Ata            Regular                                                        meetingofthe                   City Commi ssion
              (ReguluorSpe<:tal)                                                                   (fownsbip Board. City or Village Cruocil)



called to order by                 Mayor Ni e 1sen                        on Ju ly 24 2001                               at         5: 30                   P.M.

The following resolution was offered:

Moved by Commi ssioner Aslakscin                                              and supported by Commi ss ioner Schweifler

That the request from : CSTS, Inc. request to Transfer Ownership '00 Class C license with
Entertainment Permit located at 2185 Henry, Muskegon, Michigan 49441 in Muskegon County
from Tavern on Henry, Inc.

be considered for _ _..;..A.;.i;;.J;;..;...
                                      ro::..v;..;;a;..;.l_ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ __
                                                                 (Approval or Disapproval)
                                    APPROVAL                                                            DISAPPROVAL

               Yeas:       6                                                               Yeas:
                          --------- -                                                              ----------
               Nays: __o
                       _________                                                           Nays: _ _ _ _ _ __ _ __

               Absent:         1                                                           Absent:
                              ------- --                                                              - - -- -- - --
It is the consensus of this legislative body that the application be:

              Considered
_ _ _ _ _ _ ____,;;a,,;~...:.=.......,.==---------
                     (Jl--=erxlod cr DOI Reccmmooded)
                                                      - - - - - - -- - - for issuance

State of Michigan _ _ _ __,
                                                               §
County of Muskegon                                     )

I hereby certify that the foregoing is a true and complete copy of a resolution offered and

adopted by the --....,C=-i_t~                                 o..,,..n__,,,_ _ _ _ at a _ __;_R_:;.
                            y ..,,C_o-,-m.,.,..m_is...,,s,,,..i_                                e.._gu::..l;..;;a;.;..r_ _ _ _ _ _ _ __
                                   (fowmhlp Boord. Cily er Village Cruocil)                                              (Regular er Spe<:W)



meeting held on               Ju 1y 24 , 2001 .
                                         (Date)



             SEAL                                                                              (SignOO)~                          ,Q ~ ~
                                                                                                            Gail A. Kundi nger, Ci t y C erk
                                                                                                            933 Terrace, PO Box 536
                                                                                                                     (Mailing a<k~ess ofTownsi,Jp, Cily of Village)
                                                                                                            Musk egon, MI                      49443 - 0536
                                                      STATE OF MICIDGAN           f
                                             ARTMENT OF CONSUMER & INDUSTRY SERVIC.
                                                 LIQUOR CONTROL COMMISSION                                Request I.D.#100249
                                  -1 _j__j
                                   r .
                             .,,, ✓ .
                                  d _,/ _ O /
                                                         7150 Harris Drive
                                                          P.O. Box 3CXX)S
                                                      Lansing, MI 48909-7505
                                                                                                          Grand Rapids D. 0 .
                                                                                                          1126101 dhc



                          LOCAL LAW ENFORCEMENT AGENCY REPORT
                                        DANCE/ENTERTAINMENT/TOPLESS ACTIVITY PERMIT
                                                  (Authorized by MCL 436.1916)


CSTS INC.                                                                                                 231. 759 . 0046
APPLICANT/LICENSEE                                                                              PHONE NUMBER

  2185 Henry St            Mus1<:eqon                                          Muskegon                               49442
STREET ADDRESS                          CITY           TOWNSHIP                                 COUNTY                      ZIP



                      PERMIT(S) REQUESTED: DANCE_                    ENTERTAINMENTX . TOPLESS

1.      The dance floor will not be less than 100 square feet, is clearly marked and well defined when there is dancing
        by customers. YES o NO • NIA ')(.

2.      Describe the type of entertainment applicant/licensee will provide:                     NIA   •
                    ~usic- (Band & Karaoke)



3.      Will this entertainment include topless activity? YES              D         NO       J(          NIA               •
                                    LAW ENFORCEMENT RECOMMENDATION

                      DANCE PERMIT                           YES       •        NO        lKi         NIA       •
                      ENTERTAINMENT PERMIT                   YES       ~        NO        •           NIA       •
                      TOPLESS ACTIVITY PERMIT                YES       •        NO        ~           NIA       •

REMARKS: The establishment ~as no dance floor and does not pl an on ~avi ng danc i ng .




                                                                   /:), c::::: L , I ~                              7 - , 9 - 01
     DATE SUBMITTED                                                   1)                      OFFICER'S SIGNATURE


                                                                    Mus~egon Police Department                       231. 724.6750
                                                                           DEPARTMENT NAME                                  PHONE NUMBER



                                                                    980 Jef fer son St.                             Muskegon
                                                                           ADDRESS                                                   CITY


LC-693N REV 5/98
4880-0652
                                                        ~                                                               tJ
                                                                                                                         ' · ' an Department of Consumer & lti'dustry1~e'rvices 1
'
      ,

                                                    '   .   )
          POLICE INSPECTION REPOR'r 'ON LIQUOR LICENSE REQUEST
                                                                                                                                 LIQUOR CONTROL COMMISSION
                                                                                                                                         7150 Harris Drive
                                                                                                                                          ~-~~


              ?
           ( .:;j !Y · 1 / - 0 /
                                I/          (Authorized by MCL 436.7a)

                                                                                                               . ,
          n'iP,0rtant: Please condufyour investigation as soon as possible and complete ~II four sections of tni's report.
                         Return the completed report and fingerprint cards to the Commission.
                                                                                                                                   Lansing, MiSt1iefan 48909-7505
                                                                                                                                                     1


                                                                                                                                HEQUES'T' I. D. # 100?49
           BUSINESS NAME AND ADDRESS: (include zip code)               GSTS, lNC. 'fO               rm       LOCA'rED AT 2185 HENIG, MUSKJ1;rt0N, MICHlGAN
            L:94L.1 IN t1!USKEGON COUN'l'Y.
          REQUEST FOR:          'rIU\N8J.l,EH OWNE!lt~IITP OF 00 1 CLASS C & 3UM LICRNSES WI'l'II EN'['J.i;H'l'AlNMgN'J' l'EH.Mn'
                                .1!'110M 'l'AVJ!~RN ON J{l•;NRY, INC .

      I Section .1.       FJNGBRPrtlm' RF.:QUlRJW                    .APPLICANT INF9RMATION <                      FING:ErtPRJ.Wr REQUIRltD                                   I
          APPLICANT #1:                                                                     APPLICANT #2:

            Clil\.ULES A SLA'fl!:R-S'l'OCKHOLDJ~H                                              'rAMMY L SLA'rEll- STOCKHOLDl!!H
          HOME ADDRESS AND AREA CODE/PHONE NUMBER:                                          HOME ADDRESS AND AREA CODE/PHONE NUMBER:
            4o70 WHI'rE RD                                                                   /.i,6'/0 WHIT!~ RD.
            MUSKEGON, MJ CIIJGAN         494L1.2                                             MUSKl~GON, MICHIGAN                  1194.42
            <m1)2-:i1 /?'e.-oseo       (Bun);n1 /759-001...6                                  (IIM)2'3I /77'3-0580                 (BUS) 2'31 /759 ~OUl.6
          DATE OF BIRTH: Cf I(,,· l;"3                                                      DATE oF BIRTH:
                                                                                                                  1r 11, r,~
          If the applicant is not a U.S. Citizen:                                           If the applicant is not a U.S. Citizen:
             o Does the applicant have permanent Resident Alien status?                        o Does the applicant have permanent Resident Alien status?
                  DYes          •
                                No                                                                       D
                                                                                                       Yes          D
                                                                                                                    No
           o Does the applicant have a Visa? Enter status:                                     o Does the applicant have a Visa? Enter status:


      Date fingerprinted:       z _161·01                                                   Date fingerprinted:     Z· / ?·0/
                                Attach the fingerprint card and $15.00 for each card and mail to _the LlquorCorifr<>I Commission.                                             I
      ARREST RECORD:             0
                                Felony         O
                                               Misdemeanor                                  ARREST RECORD:          0Felony           O
                                                                                                                                   Misdemeanor
      Enter record of all arrests & convictions (attach a signed and                        Enter record of all arrests & convictions (attach a s igned and
      dated report if more space is needed)                                                 dated report if more space is needed)




     I Section 2.                                     Investigation of Business and Address to be Licensed                                                                    I
          Can living quarters be reached from the inside of the establishment without going outside?                      D   Yes       ~ , No
          Does applicant) ntend to have dancing or entertainment?
          D  No      -~ --Yes, complete LC-693N, Police Investigation Report: Dance/Entertainment Permit
      Are gas pumps on the premises or directly adjacent?                t~ No            D     Yes, explain relationship:




     I Section 3.                          Local and'State Codes arid Ordinances, and General Recommendations
          Will the applicant's proposed location meet all appropriate state and local building, plumbing, zoning; fir~ , sanitation and health laws and
          ordinances, if this license is granted?   @ Yes              D
                                                                      No

      If you are recommending approval subject to certain conditions, list the conditions: (Attach a signed and dated repor\ If_more space is needed)




     I Section 4.                                                              Recommendation
          From your investigation:
              1. Is this applicant qualified to conduct this business if licensed?                 [RI Yes        D No
              2. Is the. proposed location satisfactory for this business?                         [ll Yes        D No
              3. Should this request be granted by the Commission?                                 [8] Yes        D No
              4. If any of the above 3 questions were answered no, state your reasons: (Attach a signed and dated report II more space Is needed)




                                                                Slgnat~(e (Sheriff or Chief of Police)                                                   Date

    LC-1800 Rev. 06/97                        (Mail white copy to the Commission, Keep yellow copy for your file)
                                                                                                     3215
     IPOIP A 1TOIP 7rA VIE~illl
          0   0
                                  6-95
           2185 HENRY ST.
         MUSKEGON, Ml 49441                                                                         74-347/724
I,




                                     = .. . ,. -, .   wt····,


                                                                                                    3214
                                  6-95

                                                                                                    74-347 /724

                                                                OATE~Z'---------l---!&+?--~<'~{~_
                                                                                        $   13o,, QC,
                   Commission Meeting Date: July 24, 2001




Date:         July 18, 2001
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development             <2"5 <:_,,
RE:           Change to Request to Construct 3 Houses on Lawrence
              Street


SUMMARY OF REQUEST:

In August 2000 Mr. Lawrence Baker of Artistic Builders purchased a vacant buildalble
lot on Lawrence street (parcel number 24-610-000-0124-00) for the construction of 3
single-family homes. Since Mr. Baker subsequently discovered that the parcel was
larger than first thought, it would be possible to construct 4 homes on lots of 99 feet
each. He would like the City to revise his request and the deed to allow construction of
4 houses, with the last house to be finished in 36 months from the date of purchase,
which was August 14, 2000.

FINANCIAL IMPACT:

The construction of another single-family home will add to the tax base, and add
another home to the housing stock.

BUDGET ACTION REQUIRED:

None.

STAFF RECOMMENDATION:

To approve the attached resolution and authorize both the Mayor and the City Clerk to
sign said resolution.

COMMITTEE RECOMMENDATION:

The Land Reutilization Committee (LRC) recommended approval of this request at
their July 17th meeting.




7/18/2001
                                     Resolution No. 2001-85 ( d)

                              MUSKEGON CITY COMMISSION


RESOLUTION APPROVING AN AMENDMENT TO THE RESOLUTION 2000-76(k) TO
ALLOW THE CONSTRUCITON OF FOUR (4) SINGLE-FAMILY HOMES.

WHEREAS, Lawrence Baker has made a request to construct four (4) single family homes
instead of three (3) single-family homes on the property he purchased from the City of
Muskegon in August 2000 designated as parcel #24-610-000-0124-00;

WHEREAS, the construction of an addition single-family home would generate additional tax
revenue for the City;

NOW THEREFORE BE IT RESOLVED, that Resolution Number 2000-76)k) be amended to
allow for the construction of four (4) family homes with not less than 1600 square feet and two
stall garages.

     Urban Renewal Plat No. 1 All of the Lots 124-127 and the West 56.8 feet of Lot 128

Adopted this 24th day of July, 2001

Ayes: Be nedict, Nielsen, Schweifler, Shepherd, Spataro, Aslak s on

Nays: None

Absent    Sieradzki




                                        CERTIFICATION

I hearby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on July 24, 2001.                                           , /

                                                                By:         Q_   ~~
City~Owr,    ~ Property Map                                                               '·
8/8/00      --                                                                                 y   s

             I I ti?~'' ";/;R,;''>'~.   1    1111   l~ll   n           I   I   111111


                                    -

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                                                               z.
                                                               --
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 I
                                                                                    r--
                            ADDENDUM TO PURCHASE AGREEMENT
                                         2001-85(d)
This addendum to a certain purchase agreement between Lawrence Baker and the City of
Muskegon dated August 8, 2000, is executed to reflect the fact that the City has approved the
Buyer's request to build an additional dwelling on the property. After approval by the City
Commission and execution, this addendum shall be attached to the original purchase agreement.

The Purchase Agreement is amended to provide, in section 5, for the building of an additional
single family home, as follows:

                    In addition, Buyer shall build a fourth single family residence within 36 months of
                    the execution and delivery of a revised deed from the Seller to the Buyer
                    providing for same in the form of an additional covenant, the said residence to
                    have 1600 square feet of living space, not counting basement, and a two - stall
                    garage.

In all other respects the Purchase Agreement dated August 8, 2000, remains in effect. The
effective date of this addendum is -:Sd 4 d-4 2001.
                                      ,,--
                                          'v




                                                     SELLER : CITY OF MUSKEGON


                                                          By     d~~'·•
                                                               Fred J. N i e l , ~


                                                          By ,Ji\_Ll ( .
                                                            Gail A. Kundinger, Clerk
                                                                                      ,i,
                                                                                    ,k,..,{.<l~~
                                                                                          (


                                                     BUYER:
                                                          ('
                                                       (1"-CL\.....__, ~'\.ii\.\_\.._':(__
                                                                                             Q      i 0"~
                                                                                             &G~ 1l ~'\
                                                           Lawrence Balcer

                                                           S.S. no. 369 - 58 - 7827




C:\TEMP\Baker PA addendum 7-17-01.doc
                                                         QUIT-CLAIM DEED

                                                              2oq1 ·-s5 ( d)
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, whose address is
933 Terrace Street, Muskegon, Michigan 49440,

QUIT CLAIMS to Lawrence Baker, a married man, of 835 Stevens, Muskegon, MI 49442,

the following _described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit:

               All of Lots 124-127 and the West 56.8 feet of Lot 128 of Urban Renewal Plat No. 1

for the sum of Twenty-one Thousand and One Dollars($21,001.00).

PROVIDED, HOWEVER, Grantee, or his assigns, $hall complete construction of one (2) single family homes having not less than
1,600 square feet ofliving area (excluding basements) and two stall garages each, on the premises herein conveyed within eighteen
(18) months after the date hereof, a third home with the same specifications by a date no later than 24 months after the date of this
instrument, and a fourth home with the same specifications by a date no later than 36 months after the date of this instrument. In
default of such construction, title to the premises on which the failure to complete has occurred shall revert to the City of Muskegon
free and clear of any claim of Grantees or their assigns; and, in addition thereto, the City of Muskegon may retain the consideration ·
for this conveyance free and clear of any claim of Grantees or their assigns. "Complete construction" means: (1) issuance of a
residential building permit by the City of Muskegon; and, (2) completion to code of the dwelling described in the said building
permit. In the event of reversion of title of the any of the above described premises, improvements made thereon shall become the
property of Grantor. Further, Grantee covenants that each property shall be occupied by its owner for a period of five years from the
date of this deed.- Failure to abide by this covenant shaJI result in reversion of title and possession to the Grantor. The provisions of
this paragraph are collectively covenants which shall run with the land.

This deed is exempt from real estate transfer tax pursuant to the provisions ofMCLA 207.505(h)(i) and MCLA 207.526 Sec. 6(h)(i).

Datedthis    24thdayof       July       , 2001.


Signed in the presence of:                                      CITY OF MUSKEGON




                                                                :~.&1~.11.~
                                                                and.-J..:-~~:::::::_~
                                                                                    o ~ ·-<-....1~ ~~ ~~ _,t
                                                                                                         ~ _0 ~ _ _ _
                                                                Gail A. Kundinger, Its Clerk




         C:\TEMP\2001 BAl<ER REVISED DEED.DOC
STATE OF fvfICHIGAN
COUNTY OF MUSKEGON
2001-85_( d)
        The foregoing instrument was acknowledged before me this 27th day of July        , 2001, FRED J. NIELSEN and
GAIL A . KUNDINGER, Mayor and Clerk, respectively, of the CITY OF MUSKEGON, a municipal corporation, on behalf of the
City.


PREPARED BY: G. Thomas Johnson
G. Thomas Johnson, Parmenter O'Toole                    c /h cfa       s.       ;t::'o   7   r   f',,,...               I   .

175.W. Apple Avenue                                   Notary Public, Muskegon County, Michigan
Muskegon, fvfI 49443-0786                             My commission expires:      ;l- ol o - 0 e?, ·
Telephone: 23U722-1621


WHEN RECORDED RETURN TO: Grantee                      SEND SUBSEQUENT TAX BILLS TO: Grantee




        C:\TEMP\2001 BAKER REVISED DEED.DOC
Date:         July 24, 2001
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           Consideration of Bids
              Laketon Ave. Wood to Peck


SUMMARY OF REQUEST:

The contract to Mill & Resurface as well as the construction of a left turn Laketon from
Wood to Peck be awarded to Nagel Construction out of Moline since they were the lowest
(see attached bid tabulation) responsive and responsible bidder with a bid price of
$389,036.65. Furthermore, your award of this contract, if granted, is contingent on the
State's approval since they are contributing $150,000 into this improvement. Other
bidders were;
1. C & D. Hughes with a bid of $513,288.84
2. Grant Tower with a bid of $440,266.17

FINANCIAL IMPACT:

The construction cost of $389,036.65 plus associated engineering cost which is estimated at
an additional 15%.



BUDGET ACTION REQUIRED:

Adjust the original budget from $350,000 to $450,000. The additional money would come
from the money that was allocated for Division Street. This revision would be reflected in
the second quarter update.




STAFF RECOMMENDATION:
Award the contract to Nagel Construction.



COMMITTEE RECOMMENDATION:
                                                                                    H•144.: LJ-\1\t:lUN, WUUU IU l""t:1.,1\
                                                                                             BID TABULATION

                                                                                                   ENGINEER'S ESTIMATE                     GRANT TOWER                         C&DHUGHES                        NAGEL CONSTRUCTION

      DESCRIPTION                                                QUANTITY      UNIT             UNIT PRICE      T. PRICE            UNIT COST         TOTAL COST         UNIT COST        TOTAL COST        UNIT COST            TOTAL COST

 1 Z' INLET STRUCTURE                                                        4 EA                     $800.00          $3,200.00          $652.98           $2,611.92        $1.500.0C        $6,000.0C              $700.0C             $2,800.0C
      ADJUST DRAINAGE STRUCTURE COVER                                       17 EA                     $400.00          $6,800.00          $583.0!           $9,911.85          $700.0C       $11,900.IJC             $150.cx             $2,550.CX
 3 AGGREGATE BASE COURSE, 22A, 6" C.I.P.                                2871 SQ.YD.                     $6.00         $17,226.00            $4.2'          $12,173.04            $7.0C       $20,097.0C                 $4.1!          $11,914.65
      AGGREGATE BASE COURSE, 22A, AS NEEDED                              550 TON                       $20.00         $11,000.00           $11.00           $6,050.0C           $30.0C       $16,500.oc                $15.0C            $8,250.CX
 5 BIT APPROACH                                                             11 TON                    $125.00          $1,375.00           $94.21           $1,036.31           $90.00          $990.00              s100.oc             $1,100.0C
      BIT. MIXTURE 2C@440#/S.Y.                                         2513 TON                       $30.00         $75,390.00           $38.54          $96,851.02           $29.11       $73,153.43                $30.0C          $75,390.0C
      BIT. MIXTURE 3C @! 165#/S.Y.                                       948 TON                       $35.00         $33,180.00           $39.46          $37,408.08           $31.25       $29,625.00                $40.0C          $37.920.0C
 mBIT. MIXTURE 4C POLYMER MOI;IIFIED ASPHALT CEMENT@ 220#fS.Y.          1260 TON                       $41.00         $51,660.00           $46.02          $57,985.20           $39.3C       $49,518.00                $40.0C          $50,400.00
 9 CATCH BASIN CASTING EAST JORDAN #7045 OR EQUAL                           14EA                      $500.00          $7,000.00          $316 36           $4,429.04          $720.0C       $10,080.0C              $400.()             $5,600.UI
11 CATCH BASIN, STANDARD                                                    10EA                    $1,100.00         $11,000.00        $1,499.04          $14,990.40        $1,200.Ul       $12,000.0C              S900.oc             $9,000.0C
12 CONCRETE APPROACH, 6", STANDARD                                           3 SQ.YD.                  $27.00              $81.00          $32 . 47            $97.41           $27.0C           $81.0C                $36.0C              $108.00
1 CONCRETE CURB AND GUTTER, DETAIL F-4, MODIFIED                        1731 L.FT.                     $10.00         $17,310.00            $9.83          $17,015.73            $8.UI       $13,848.UI                $12.UI          $20,772.oc
1 CONCRETE SIDEWALK 4"                                                   158 SQ.YD.                     $2.00            $316.00           $26.52           $4,190.16           $22.5C        $3,555.00               $27.0C             $4,266.0C
1s CONCRETE SIDEWALK 6"                                                      4 SQ.YD.                   $3.00              $12.00          $31.76            $127,04            $27.00          $108.00                $36.0C              $144.0I
16 OUST PALLIATIVE, APPLIED, CA CL2                                         40TON                      $60.00          $2,400.00           $83.66           $3,346.40            $1,UI           $40.w                 S50.U<.           S2,000.oc
1' IRRIGATION RELOCATION                                                     1 LUMP SUM             $5,000.00          $5,000.00        $8,213.5,           $8,213.52      $100,000.00      $100,000.00            $5,000.0C             $5,000.0C
19 MACHINE GRADING                                                      17.8 STA.                     $500.00          $8,900.00        $1,005.07          $17,890.25        $1,000.0C       $17,800.00            $1,000.UI           $17,800.oc
2 MAINTENANCE GRAVEL                                                     300 CU.YD.                    $20,00          $6,000.00           $16.20           $4,860.00           $20.0C        $6,000.00               $10.0C             $3,000.0C
21 MANHOLE CASTING EAST JORDAN #1000 OF EQUAL                                SEA                      $500.00          $2,500.00          $218.7i           $1,093.70          $700.0C        $3,500.00              $300.o              $1,500.UI
2 MANHOLE TAP                                                               13 EA                     $300.00          $3,900.00          $261.17           $3,395.21          $350.0C        $4,550.CX              $300.0C             $3,900.0C
23 PAVT MRKG, INLAY COLD PLASTIC, 6n, CROSSWALK
2-4 PAVT MRKG, INLAY COLO PLASTIC, 18n, STOP BAR

2 PAVT MRKG, INLAY COLD PLASTIC, LEFT TURN ARROW SYMB
                                                                        180 LFT.
                                                                            45 L.FT.
                                                                            16EA
                                                                                                        $1.50
                                                                                                        $2.00
                                                                                                       $70.00
                                                                                                                         $270.00
                                                                                                                           $90.00
                                                                                                                       $1,120.00
                                                                                                                                            $2.08
                                                                                                                                            $6.51
                                                                                                                                           $88.91
                                                                                                                                                             $374.40
                                                                                                                                                             $292.95
                                                                                                                                                            $1,422.56
                                                                                                                                                                                 $1.65
                                                                                                                                                                                 $5.45
                                                                                                                                                                                $75.00
                                                                                                                                                                                                $297.CX
                                                                                                                                                                                                $245.25
                                                                                                                                                                                              $1,200.CX
                                                                                                                                                                                                                        ....
                                                                                                                                                                                                                        $2.0C


                                                                                                                                                                                                                     $100.00
                                                                                                                                                                                                                                           $360.0C
                                                                                                                                                                                                                                           $270.oc
                                                                                                                                                                                                                                         $1,600,0C
2 PAVT MRKG, OVERLAY COLD PLASTIC, LEFT TURN ARROW SYMB                     22EA                       $70.00          $1,540.00          $110.82           $2.438.04           $95.00        $2,090.00              $100.0C             $2,200.0C
27 PAVT MRKG, OVERLAY COLO PLASTIC, ONLY                                     6EA                       $75.00            $450.00           $94.7•            $568.44            $60.00          $480.0C              $100.0C               $600.CX
2! PAVTMRKGWATERBORNE,4", YELLOW                                       7966 L.FT.                       $0.18          $1,433.88            $0.3!           $2,788.10            $0.28        $2,230.48                 $0.~             $3,983.UU
2 PAVT MRKG WATERBORNE, 4", WHITE                                      2436 L.FT.                       $0,20            $487.20            $0.3!            $852.60             $0.28          $682.08                 $0.50           $1,216.00
3ll PAVTMRKGWATERBORNE, 1T, WHITE                                       180 L.FT.                       $1.00            $180.00            $2.06            $370.80             $1.7!         $315.0C
                                                                                                                                                                                                                        "·"'               $360.<A
31 PREPARED TOP SOIL AND SEED CLASS A
3 RECONSTRUCTING DRAINAGE STRUCTURE
                                                                       1030 SQ.YD.
                                                                             9V.FT.
                                                                                                        $2.50
                                                                                                      $300.00
                                                                                                                       $2,575.00
                                                                                                                       $2,700.00
                                                                                                                                            $5.22
                                                                                                                                          $127.s.1
                                                                                                                                                           $5.376.60
                                                                                                                                                           $1.148.76
                                                                                                                                                                                 $5.Ut
                                                                                                                                                                               $350.CX
                                                                                                                                                                                              $5, 150.0C
                                                                                                                                                                                              $3,150.0C                 "·'°
                                                                                                                                                                                                                     $100.00
                                                                                                                                                                                                                                        $2,575.cx
                                                                                                                                                                                                                                           $900.0C
33 REMOVING BIT SURFACE                                                  105 SQ.YD.                    $10.00          $1,050.00            $1.s.1           $172.20            $10.CX        $1,050.0                  $1.UU              $105.cx
3-4 REMOVING CURB ANO GUTTER                                           1731 L.FT.                       $7.00        $12,117.00             $4.55          $7.876.05             $6.U<       $10,366.0C                 $3.00           $5,193.CX
35 REMOVING DRAINAGE STRUCTURE                                              17 EA                     $500.00          $8,500.00         $155.41           $2,641.97          $500.0C         $8,500.0C              $250.UI            $4,250.u
3li   REMOVING PAVEMENT (BITUMINOUS)                                   9441 SQ.YD.                      $3,00        $28,323.00             $0.71          $6,703.11             $1,6{       $15,105.6{                 $3.0C          $2B,323.0C
37 REMOVING SEWER                                                        160 L.FT.                     $10.00          $1,600.00            $9.60          $1,536.00            $10.CX        $1,600.0C               $10.UI             $1,600.Ut
3 REMOVING SIDEWALK                                                     194 SQ.YD.                      $1.00            $194.00            $4.41            $655.0'1           $10.CX        $1,940.oc                 $5.0C              $970.00
3 REMOVING TREE, 8" TO 12"                                                   1 EA                     $400.00            $400.00         $182.47             $182.47          $400.0C          $400.00               $700.0C               $700.0
4C SIGN, TYPE II B                                                          18 SQ.FT.                  $20.00            $360.00           $28.7~            $517.14            $24.CX         S432.0C                $25,UI               $450.u
41 STEEL POST, 2LBS / FT                                                110 L.FT.                       $2.00            $22(1.00           $5.98            $657.80             $5.U<.        $550.0C                  $5.50              $605.CX
4: STORM SEWER.12'", C76 CLASS V                                        148 L.FT.                      $50.00          $7,400.00         $100.52          $14,876.96            $35.0C        $5,180.0C               $20.CX            $2,960.0C
< STORM SEWER, 12", DUCTILE IRON, CL 52                                 201 L.FT.                      $60.00        $12,480.0(          $111.75          $23,244.ll'.         $45.UI         $9.360.oc               $25.Ul            $5,200.1.X

•     TRAFFIC CONTROL PHASE 1                                               1 LUMP SUM            $25,000.00         $25,000.00
                                                                                                                     $25,000.00
                                                                                                                                       $31,677.01         $31,677.01        $30,000.0C      $30,000.0C           $30,000.0C            $30,000.0C
45 TRAFFIC CONTROL PHASE 2                                                  1 LUMP SUM            $25,000.00                           $28,023.03         $28,023.03        $30,000.0C      $30,000.0I           $30,000.u             $30,000.00
46 WATER VALVE BOX AND COVER, COMPLETE                                      8 EA                     $350.00           $2,800.00         $251.67           $2,013.36          $450.0C        $3,600.00              $150.CX             $1,200.0C
      TOTAL                                                                                                           $400,540.08                          $440,286.1                        S513,2U.~                                  $389,036.6!




                                                                                                                                                                                                           l-lo1"2 910 TABULATION 07/1&'2001 •:11 PM
Date:         July 24, 2001
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           Request to amend an Encroachment Agreement




SUMMARY OF REQUEST:
Hawkeye Environmental is requesting your perm1ss1on to amend the encroachment
agreement 98-109 I to include the installation of one more well in addition to those that are
present. The well would be, if approved, installed in the terrace in front of 1249 Peck as
shown on the attached sketch,



FINANCIAL IMPACT:
None



BUDGET ACTION REQUIRED:
None



STAFF RECOMMENDATION:
To approve the encroachment agreement subject to the same conditions set original.



COMMITTEE RECOMMENDATION:
                                                HAWKEYE
                                 ENVIRONMENTAL LAND SERVICES, INC.
             PROf1DING DUE DILIGENCE SERVICES FOR THE ENv7RONMEN7'.4L INDUSIRY
P.O. Box 246                      e-mail hawkeyc@shianet.org                  (989)743--4344
Corunna_. MI 48817                                                        Fax (989)743-6450

                                                         July II, 2001

Mohammed Alshatel
                                                                                 RECErVED
                                                                                 C'   n    •1r   .!,. .   .   ·:.
City of Muskegon, Engineering Department
P.O. Box536                                                                               JUL 17 200f
Muskegon, Mi 49443-0536

          RE:       Amendment of Permit #98-109(i)                             ENGINEERING DEPT.
                    Speedway SuperAmerica LLC
                    Station #6295
                    1250 Peck Street
                    Muskegon, Ml

Dear Mr. Alshatel:

Respectfully, we would like to request, on behalf of Speedway SuperAmerica LLC, Inc., an
amendment of Permit #98-109(i) as issued by the City of Muskegon. SSA is being required by
the Michigan Department of Environmental Quality, Storage Tank Division to install one (01)
additional well on the West side of Peck Street. The location of the proposed well is
approximately midpoint between the existing wells #8 and # IO as shown on the attached plat.

Should you have any questions please feel free to reach us at the above number. Also, ifthere are
further requirements   se advise.

Respectfully,




cc
          K. Lepak/SSA w/o enclosures
          G. Mast/NESA w/o enclosures
           file
C:\Corel\Suite8\Speedway SuperAmerica LLC\6295\Pernnit Amendment Letter to City ofMuskegon.wpd




                                 JOHN C. STENDER JR., PRESIDENT
                   CERTIFIED PROFESSIONAL LANDAL4N/ENVIRONMENTAL SITE ASSESSOR
                                                                                                                                                                                                                                                                  •--
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                                                                                                                                                                                                                     Figure 1
                                                                                                                                                                                                                      Site Plan with 8/15/00 Groundwater
                                                                                                                                                                                                                             Analytical Data (ug/L)
                                                                                                                                                                                                                         SSALLC Cloocd Unilcd #6295
                                                                                                                                                                                                                              1250 P<:t:k Stree!
                                                                                                                                                                                                                                                                  "
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Adapted from Bellito Euviromcntal Services Drawicg, Nol a Legul Survey.
                                                                                                                                                                           0      20        40                                                      NESA
                                                                                                                                                                                                                                                         ~
                                                                                                                          - - - - - - - - - - - - - - - - --~----                                -- .   -- - - - -
·,
                                                    98-109( i}

                                              CITY OF :WUSKEGON
                                                           \

                               ENCROACHMENT AGREEMENT AND PER!VQT
            THIS AGREEi\-lENT is made and entered into this          £?.. day of   October I 998, by and

     between the CITY OF ~CliSKEGON, a municipal corporation (hereinafter called CITY), and _

     SPEEDWAY SUPERAMERI CA, LL~hereinafter called LICENSEE).


                                                     RECITALS

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

     encroachment"), in or abuttin',l a street alley, sidewalk. park, terrace or other property controlled

     or owned by the City of y(uskegon. the encroachment being described as

      Installation of three (03) flush mount, groundwater monitoring wells.




             '        The City • owned or controlled property (herein "property") subject to the

     encroachment is described as:

     [please insert a general description. and if required by the city, an accurate legal description]

      Tbe West side of Peck Street, North of Strong Avenue. Across from

      the Speedway station located at 1250 Peck Street.

                 3. The City is willing to grant such privilege upon the terms and conditions herein. This

      agreem~m ;hall -:onstitute a pewit •1nder <ection l 3- l 9 of the Code of Ordinances, but shall acplv

      to any encroachment on public ways or property.

                 THEREFORE.

                 l.        CITY does hereby grant llilto LICENSEE the privilege of _ _coastructing,

      ..x..installing ,_maintaining _ _ repairing __performing all necessary funcrions relating to

      the encroachment, and for that purpose to enter the property, for the term herein stated. This
j,'   <:ity certificates or policies evidencing such inst.ranee coverage . The insurance policies or
                                                         '
      certi.ficates'"shhll provide that the City shall be g,ven thirty days written notice before a

      cancellation or change in coverage may occur. The types of coverage and coverage limits. fo be

      required shall be as follows:




              5.       BONDCNG. Before this agreement /permit becomes valid, LICENSEE shall file

      with the city 1 bond conforming with the requirements of any ordinance, and shall keep same in

      force during the entire tenn of this agreement.
                        .                                                             ,,
              6.      The privilege hereby granted may be canceled and revoked by the CITY at any

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

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

       giving notice in writmg to the City_ days prior to such surrender; provided, however. that upon

       the voluntary relinquishment or abandonment of this privilege. or upon cancellation or revocation

       thereof by the City, the LICENSEE shall remove any structure(s) erected upon, within or

       overhanging the area of encroachment and restore the property at LICENSEE'S expense and in a

       manner satisfactory to City and in default thereof shall be liable to City for any cost; damage or

       expense the City may sustain in such restoration.

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

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

       become null and void.




                                                             3
                           SUPPLEMENTAL CONDITIONS




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

2-   Grantee will be responsible to maintain and keep, for the duration of this agreement,
     a valid insurance coverage satisfactory to the City.                     ·
                    Commission Meeting Date: July 24, 2001




Date:          July 12, 2001
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development CB:__~
RE:            Sale of Non-Buildable Lot on Austin Street


SUMMARY OF REQUEST:

To approve the sale of a vacant non-buildable lot (Parcel #24-215-008-0028-00) on
Austin Street to David Wotli of 1724 Beidler (see attached map). Approval of this sale
will allow Mr. Wotli to expand the current yard on his rental property and possibly
construct a garage. The subject parcel is being offered to Mr. Wotli for $100. The
parcel is located next to another vacant, unbuildable parcel, which is owned by a
property owner across the alley. City policy for sale of unbuildable lots states that the
sale of the lot will be "to expand/improve or beautify existing property".

FINANCIAL IMPACT:

The sale of this lot will allow the property to be placed back on the City's tax rolls thus
relieving the City of continued maintenance costs.

BUDGET ACTION REQUIRED:

None.

STAFF RECOMMENDATION:

To approve the attached resolution and to authorize both the Mayor and the Clerk to
sign the resolution.

COMMITTEE RECOMMENDATION:

The Land Reutilization Committee (LRC) recommends approval of the sale of the
unbuildable lot on Austin Street to Mr. David Wotli.




7/12/2001
                                    CITY OF MUSKEGON

                                     RESOLUTION #2001- 86 ( e)

RESOLUTION APPROVING THE SALE OF A CITY-OWNED NON-BUILDABLE LOT

WHEREAS, the City of Muskegon has received $100.00 from David Wotli, 1724 Beidler for the
purchase of a vacant, City-owned lot located adjacent to his property on Austin Street (parcel
#24-215-008-0028-00);

WHEREAS, this lot is not considered buildable under the City's Zoning Ordinance, and there are
no other opportunities to sell a portion to another adjacent prope1ty owner;

WHEREAS, the sale would enable the City to place this property back on the tax rolls, and
would relieve the City of further maintenance;

WHEREAS, the sale of this property would be in accordance with property disposition goals and
policies of the City;

NOW, THEREFORE BE IT RESOLVED, that CONTINENTAL ADD LOT 28 BLK 8 be sold
to Mr. David Wotli for $100.


Resolution adopted this 24th day of July, 2001.

          Ayes: Schweifler, Shepherd, Spataro, Aslakson, Benedict, Nielsen

          Nays: None

          Absent:   Si er adz k i




Attest:     ~a,_1-Q
          Gail A Kundinger, Clerk
                                      CERTIFICATION
                                        2001-86(e)
This resolution was adopted at a regular meeting of the City Commission, held on July 24, 2001. The
meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan,
Act 267 of the Public Acts of 1976.

                                                     CITY OF MUSKEGON



                                              By
· - · - - - - -




   -.. .______ J   L·-·-·--- - -- - ·-   J
                                                      QUIT-CLAIM DEED
                                                          ,J.oo I - !'~Ce.)
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, of933 Terrace Street,
Muskegon, Michigan 49440,

QUIT CLAIMS to DAVID WOTLI, a married man, of 1724 Beidler Street, Muskegon, MI 49441,

the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit:

                                         Lot 28 of Block 8 of CONTINENTAL ADDITION;

for the sum of One Hundred ($100) Dollars.

This deed is exempt from real estate transfer tax pursuant to the provisions ofMCLA 207.505(h)(i) and MCLA 207.526 Sec. 6(h)(i).

Dated this .dsf__ day of August, 2001.

Signed in the presence of:

df/J1M~


STATE OF MICHIGAN
COUNTY OF MUSKEGON

       The foregoing instrument was acknowledged before me this r:,J<fd day of August, 2001, FRED J. NIELSEN and
GAIL A. KUNDINGER, Mayor and Clerk, respectively, of the CITY OF MUSKEGON, a municipal corporation, on behalf of the
City.


PREPARED BY:
G. Thomas Johnson, Parmenter O'Toole                         L,//da        S .       /7
                                                                                    0 -rf-t"r
175 W. Apple Ave., Muskegon, MI 49443-0786                  Notary Public; Muskegon County, Michigan
Telephone: 231/722-1621                                     My commission expires: _ _,;1
                                                                                       ;__-__,ol
                                                                                              "'--"<,__
                                                                                                     J-_o
                                                                                                        ...;__:~=-- -- - - - -


WHEN RECORDED RETURN TO: Grantee                            SEND SUBSEQUENT TAX BILL S TO: Grantee




        G:\COMMON\5\GTJ\C-RLEST\C-WOTLI.QCD.DOC
 Date:        July 24, 2001
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           Consideration of Bids
              City Hall Tuck Pointing


SUMMARY OF REQUEST:

The contract to Caulk, Tuck Point and Seal City Hall to D. C. Byers Company out of Grand
Rapids since they were the lowest (see bid tabulation) responsible bidder with a bid price
of $46,600 (including the chimney).

FINANCIAL IMPACT:
The construction cost of $46,600.



BUDGET ACTION REQUIRED:

Adjust the original budget from $25,000 for partial repair work to $46,600. The additional
money would come from the savings on the P.D. parking lot project ($7,000) that was
budgeted at $32,000 but final cost was more like $28,000 and $15,000 from the Restlawn
Cemetery Office Renovation project which was budgeted at $75,000, however, the bids
came in much lower. This revision would be reflected in the second quarter update.




STAFF RECOMMENDATION:
Award the contract to D. C. Byers.



COMMITTEE RECOMMENDATION:
,lu1-06-0l   02:49P                                                           6165381970                          P.02



  •n••I•
  111111==              Sl't:HAI.IHS lili Hl:STORATIO!I;   ,u· STHlll:n:RK~ s11,;n; , ..,J

                                                                              D. C. Byers Company
                                                                                                           P.O. BOX 8576
                                                                                         GRAND RAJ"'IOS, MICHIGAN 49518
                                                                                                       PHONC (6161 038 /~00




         July 6, 200L


         City of Muskegon
         933 Terrance Street
         l'.0. llox 536
         Muskegon, Ml 49443


         Attention: J.R. Gann

         Regarding: City Hall Tuckpointing

         Dear J. R,

         Per my site visit and review with you on 07/06/01 D.C. L!ycrs Company/Grand Rapids
         lnc. proposes to furnish all material, labor, equipment, insurance, and supervision to
         perfonn the following:

                 To include necessary tuckpointing of the existing chimney al City Hall
                 tuckpointing project and caulking and coating of the concrete chimney cap.

         COST:                                                                          $475.00


         Thank you for having called upon us. We look forward to working with you.

         Sincerely,

         D.C. Byers Company/Grand Rapids Inc.


      ~~o.
         ~
         VP Sales


         JS0l-134/dle
Date:      July 10, 2001

To:       Honorable Mayor and City Commissioners

From:       Finance Director

RE:       Sale of DOA Refunding Bonds



SUMMARY OF REQUEST: Previously, the City Commission authorized staff to enter
into negotiations for sale of up to $4.5 million of LTGO bonds for the purpose of refunding the
outstanding 1989 DDA Series A and Series D tax increment bonds to achieve significant
interest savings. Treasury Department approval has been received and staff has selected
(via competitive RFP process) First of Michigan to undeiwrite and market this bond issue.
                                                             rd
The bonds are scheduled for pricing on Monday, July 23 and will be brought to you the
following evening for approval of the sale. Attached is the "Resolution Approving Sale of the
City of Muskegon 2001 Development Refunding Bonds (General Obligation Limited Tax)"
together with the "Bond Purchase Agreement" and "Escrow Agreement" that you will be
asked to approve. Approval of these documents is the final official action needed for sale of
the bonds. There are some blank spaces in the documents that will be filled in once financial
details of the bond sale are known.


FINANCIAL IMPACT: The exact financial impact will not be known until the bonds are
priced for sale on Tuesday, July 1,0th .l.3 "&..

BUDGET ACTION REQUIRED:                   None at this time.

STAFF RECOMMENDATION:                    Approval of the attached awarding resolution.

COMMITTEE RECOMMENDATION:                       None. Both the City Commission and the
DDA Board have taken earlier actions in support of this bond sale.




9/18/97
Founded in 1852                                                                                          MICHIGAN:   Ann Arbor
by Sidney Davy Miller

Sidney T. Miller (1864-1940)
                                           MILLER                                                       Detroit• Grand Rapids
                                                                                                          Howell • Kalamazoo
                                                                                                       Lansing• Monroe• Troy
George L. Canfield (1866-1928)
Lewis H. Paddock (1866-1935)
Ferris D. Stone (1882-1945)
                                           CANFIELD                                                           New York, N.Y.
                                                                                                             Washington, D.C.
                                                                                                              POLAND: Gdynia
                                           MILLER, CANFIELD, PADDOCK AND STONE,   P.L.C.
                                                                                                           Katowice• Warsaw
                                                150 West Jefferson, Suite 2500                              AFFILIATED OFFICE:
JOELL. PIELL                                      Detroit, Michigan 48226                                       Pensacola, FL
TEL: (313) 496-7518                                 TEL: (313) 963-6420
FAX: (313) 496-8450
                                                    FAX: (313) 496-7500
E~MAIL: piell@millercanfield.com
                                                  www.millercanfield.com


                                                      July 16, 2001
         Mr. Timothy J. Paul
         Finance Director
         City of Muskegon
         933 Terrace St
         PO Box 536
         Muskegon,MI 49443-0536                                                            Via Email

         Dear Tim:

                Please find herewith enclosed a suggested form of resolution to be used on July
            th
         24 to award the refunding bonds. I would ask you to review same and if you have any
         questions concerning the resolution, please let me know.

                                          Very truly yours,

                                          MILLER, CANFIELD, PADDOCK.AND STONE, P.L.C.


                                          By:-----------------
                                                 Joel L. Piell


         cc:      Mr. Warren M. Creamer, III (Via Email)


         DELIB:2248707. t \063684-00024
                       RESOLUTION APPROVING SALE OF
                           THE CITY OF MUSKEGON
     2001 DEVELOPMENT REFUNDING BONDS (GENERAL OBLIGATION LIMITED TAX)

                                     THE CITY OF MUSKEGON
                                 COUNTY OF MUSKEGON, MICHIGAN

                                               2001-S?(a)


          Minutes of a regular meeting of the City Commission of the City of Muskegon, County

    ofMuskegon, Michigan, (the "City"), held on the 24th day of July, 2001 at 5:30 o'clockp.m.,

    Eastern Daylight Savings Time.

    PRESENT:       Members       Aslakson, Benedict, Nielsen, Schweifler, Shepherd,

"
~
~
                    S ataro
w
g
,, . ABSENT:                 Sieradzki
                   Members -.C...CC"--"~~---------------
~


1         The following preamble and resolution were offered by Member ~S"'p=at=a~r=o_ _ _ __
~
~   and supported by Member _A_s_la_k_s_on_ _ __

          WHEREAS, by resolution adopted on June 12, 2001, (the "Bond Resolution"), the City

    authorized not to exceed $4,500,000 2001 Downtown Development Refunding Bonds (General

    Obligation Limited Tax) (the "Bonds") for the purpose of refunding the Downtown

    Development Authority of the City of Muskegon 1989 Downtown Development Limited Tax

    Increment Bonds, Series A-1 and Series D-1 each dated as of August 30, 1990 (the "Prior

    Bonds"); and

          WHEREAS, the Michigan Department of Treasury (the "Department") approved

    issuance of the Bonds; and

          WHEREAS, the City has received or will receive an offer to purchase the Bonds from

    First of Michigan Division ofFahnstock & Co. Inc. (the "Underwriter"), and providing the
    provisions of this resolution have been met the City determines that it is in the best interests of

    the City to accept the offer.


            NOW, THEREFORE, BE IT RESOLVED, THAT:

            1.     The offer of the Underwriter as set forth in the proposed bond purchase agreement

    (the "Bond Purchase Agreement") presented to this Commission to purchase the Bonds in the

    principal amount and at a purchase price plus accrued interest, if any, as will be shown on the

    exhibit attached to the Bond Purchase Agreement (the "Exhibit"), is hereby accepted, providing

    that the net interest cost to the City do not exceed five and one half percent per annum and the

    par amount of the Bonds does not exceed $4,500,000 and the City Finance Director is

    authorized and directed to execute and deliver the Bond Purchase Agreement on behalf of the

    City.

            2.     The Bonds shall be dated as of the date shown on the Exhibit, shall be designated

~   2001 Downtown Development Refunding Bonds (General Obligation Limited Tax) and shall
~


    mature, bear interest, and be subject to redemption as shown on the Exhibit.

            Notice of redemption of any Bond shall be given at least thirty (30) days prior to the date

    fixed for redemption by mail to the Owner or Owners at the registered addresses shown on the

    registration books kept by the Transfer Agent. Bonds shall be called for redemption in multiples

    of $5,000 and Bonds of denominations of more than $5,000 shall be treated as representing the

    number of Bonds obtained by dividing the denomination of the Bond by $5,000 and such Bonds

    may be redeemed in part. The notice of redemption for Bonds redeemed in part shall state that

    upon surrender of the Bond to be redeemed a new Bond or Bonds in aggregate principal amount

    equal to the unredeemed portion of the Bond surrendered shall be issued to the Owner thereof.


                                                    -2-
      No further interest payment on the Bonds or portions of the Bonds called for redemption shall

      accrue after the date fixed for redemption, whether presented for redemption or not, provided

      funds are on hand with the Transfer Agent to redeem the same.

             3.     Fifth Third Bank, Michigan, Grand Rapids, Michigan is hereby approved as

      Transfer Agent for the Bonds and is further approved as Agent (the "Agent") under the proposed

      escrow agreement (the "Escrow Agreement") presented to this Commission.

             4.     The Escrow Agreement providing for payment and redemption of the Prior Bonds

      is hereby approved and shall constitute the "Escrow" referred to in the Bond Resolution. The

      Mayor and City Clerk shall execute and deliver the Escrow Agreement substantially in the form
':i
~     presented to this Commission with such changes and completions as shall be necessary in order
~
a
~
~
      to accomplish refunding the Prior Bonds in accordance with law, the Bond Resolution and the

I     order of the Department.
ij           5.     Upon delivery of the Bonds, the accrued interest, if any, shall be deposited in the
~
~     Debt Retirement Fund for the Bonds and the balance shall be used as follows. A sum presently

      estimated to be $80,585.84 shall be used to pay the costs of issuance of the Bonds, and any

      balance remaining from that sum after paying the costs of issuance shall be deposited in the

      Debt Retirement Fund for the Bonds. The net proceeds of the Bonds, plus accrued interest,

      together with monies in the Debt Service Reserve and related funds established for the Prior

      Bonds, less costs of issuance and the underwriter's discount shall be paid to the Agent and

      invested by it as provided in the Escrow Agreement for payment of principal, interest and

      redemption premium on the Prior Bonds.

             6.    The Preliminary Official Statement relating to the Bonds and its use by the



                                                     -3-
    Underwriter are hereby authorized, approved and confirmed.

           7.     The Official Statement relating to the Bonds, which Official Statement has been

    presented to and is on file with this Commission is hereby authorized and approved. The City

    Manager is authorized and directed to execute and deliver the Official Statement on behalf of

    the City. The Mayor, City Clerk, City Manager and Finance Director are further authorized to

    approve, execute and deliver any amendments and supplements to the Official Statement

    necessary to assure that the statements therein are, and as of the time the Bonds are delivered to

    the Underwriter will be true, and that it does not contain any untrue statement of a material fact

    and does not omit to state a material fact necessary in order to make the statements, in light of
0
~

~   the circumstances under which they were made, not misleading.
~
~          8.     The officers, agents and employees of the City are authorized to take all other
~
~   actions necessary and convenient to facilitate sale of the Bonds including the execution of such
~
~

5   certificates and closing documents as are required to sale the Bonds.

           9.     The Bonds of this issue shall be executed in the name of the City with the manual

    or facsimile signatures of the Mayor and City Clerk and shall have the seal of the City, or a

    facsimile thereof, printed or impressed on the Bonds. No Bond shall be valid until authenticated

    by an authorized officer or representative of the Transfer Agent. The Bonds shall be delivered

    to the Transfer Agent for authentication and be delivered by the Transfer Agent to the purchaser

    or other person in accordance with instructions from the City.

           10.    The transfer Agent shall keep the books of registration for this issue on behalf of

    the City. Any Bond may be transferred upon such registration books by the registered owner of

    record, in person or by the registered owner's duly authorized attorney, upon surrender of the



                                                    -4-
     Bond for cancellation, accompanied by delivery of a duly executed written instrument of

     transfer in a form approved by the Transfer Agent. Whenever any Bond or Bonds shall be

     surrendered for transfer, the City shall execute and the Transfer Agent shall authenticate and

     deliver a new Bond or Bonds, for like aggregate principal amount. The Transfer Agent shall

     require the payment by the bondholder requesting the transfer of any tax or other governmental

     charge required to be paid with respect to the transfer.

               Unless waived by any registered owner of bonds to be redeemed, official notice of

     redemption shall be given by the Transfer Agent on behalf of the City. Such notice shall be

     dated and shall contain at a minimum the following information: original issue date; maturity

     dates; interest rates; CUSIP numbers, if any; certificate numbers (and in the case of partial

     redemption, the called amounts of each certificate); the place where bonds called for redemption

     are to be surrendered for payment; and that interest on bonds or portions thereof called for

     redemption shall cease to accrue from and after the redemption date.
~-
~
               In addition, further notice shall be given by the Transfer Agent in such manner as may be

     required or suggested by regulations or market practice at the applicable time, but no defect in

     such further notice nor any failure to give all or any portion of such further notice shall in any

     manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed

     herein.

               11.   The Bonds shall be in substantially the following form subject to such changes as

     may be necessary to purchase a policy of municipal bond insurance:




                                                      -5-
                                     UNITED STATES OF AMERJCA
                                         STATE OF MICHIGAN
                                     UNITED STATES OF AMERJCA

                                  CITY OF ANN MUSKEGON
                      2001 DOWNTOWN DEVELOPMENT REFUNDING BONDS
                             (GENERAL OBLIGATION LIMITED TAX)




                                                             Date of
     Interest Rate   Maturity Date       Original Issue            CUSIP



     Registered Owner:
~

"'   Principal Amount:                                                            Dollars
~
0
~


I
~
             KNOW ALL MEN BY THESE PRESENTS, that the City of Muskegon, County of
c    Muskegon, State of Michigan (the "City"), aclmowledges itself to owe and for value received
~    hereby promises to pay to the Registered Owner specified above, or registered assigns, the
~-
,    Principal Amount specified above, in lawful money of the United States of America, on the
     Maturity Date specified above, unless prepaid prior thereto as hereinafter provided, with interest
     thereon until paid from the Date of Original Issue specified above or such later date to which
     interest has been paid, at the Interest Rate per annum specified above, payable on ___ 1,
     20_ and semiannually thereafter. Principal of this bond is payable upon presentation and
     surrender of this bond at the principal office of Fifth Third Bank Michigan, Grand Rapids,
     Michigan, or such other transfer agent as the City may hereafter designate by notice mailed to
     the registered owner not less than sixty (60) days prior to an interest payment date (the "Transfer
     Agent"). Interest on this bond is payable to the person or entity which is registered owner of
     record as of the 15th day of the month preceding the interest payment date as shown on the
     registration books of the City kept by the Transfer Agent, by check or draft mailed by the
     Transfer Agent to the registered owner of record at the registered address. Principal of and
     interest on this bond are payable in the first instance from tax increment revenue payments
     received by the City from the Downtown Development Authority of the City of Muskegon (the
     "Authority"). In addition, for prompt payment of this bond, both principal and interest, the full
     faith, credit and resources of the City are hereby irrevocably pledged. In case of insufficiency of
     the tax increment revenue payments for the payment of the principal of and interest on this
     bond, the City is obligated to pay the same as a first budget obligation from its general funds or
     from any taxes which it may levy within applicable constitutional and statutory tax limitations.

                                                    -6-
             This bond is one of a series of bonds aggregating the principal sum of$ ,        ,000, issued
     pursuant to Act 197, Public Acts of Michigan, 1975, as amended, and a resolution duly adopted
     by the City Commission of the City for the purpose of refunding the Authority's 1989
     Downtown Development Limited Obligation Tax increment Bonds, Series A-1 and D-1. The
     City has pledged its full faith and credit, subject to applicable constitutional and statutory tax
     limitations, as additional security therefor.

           Bonds of this issue maturing in the years _ _to __ , inclusive, are not subject to
     redemption prior to maturity.

            Bonds or portions of bonds in multiples of$5,000 of this issue maturing in the years 2_
     and thereafter shall be subject to redemption, at the option of the City, in such order as the City
     shall determine and within any maturity by lot, on any interest payment date on or after
     _ _ _ _ _ _ _ I, 2_, at par and accrued interest to the date fixed for redemption.

            In case less than the full amount of an outstanding bond is called for redemption the
     Transfer Agent upon presentation of the bond called in part for redemption shall register,
     authenticate and deliver to the registered owner a new bond in the principal amount of the
J
0:
     portion of the original bond not called for redemption.

            Notice of redemption shall be given to the holders of bonds to be redeemed by mailing of
     such notice not less than thirty (30) days prior to the date fixed for redemption to the registered
     owner at the address of the registered owner as shown on the registration books of the City. No
     further interest on bonds called for redemption shall accrue after the date fixed for redemption,
i
z
     whether presented for redemption or not, provided the City has money available for such
g    redemption.
~
~
            This bond is transferable only upon the registration books of the City kept by the Transfer
     Agent by the registered owner of record in person, or by the registered owner's attorney duly
     authorized in writing, upon the surrender of this bond together with a written instrument of
     transfer satisfactory to the Transfer Agent duly executed by the registered owner or the
     registered owner's attorney duly authorized in writing, and thereupon a new registered bond or
     bonds in the same aggregate principal amount and of the same maturity shall be issued to the
     transferee in exchange therefor as provided in the resolution authorizing this bond, and upon the
     payment of the charges, if any, therein prescribed.

             This bond is payable out of the Debt Retirement Fund of the City for this issue, and it is
     hereby certified and recited that all acts, conditions and things required by law to be done,
     precedent to and in the issuance of this bond and the series ofbonds of which this is one, exist
     and have been done and performed in regular and due form and time as required by law, and that
     the total indebtedness of the City, including this bond, does not exceed any constitutional or
     statutory debt limitation.

           This bond is not valid or obligatory for any purpose until the Transfer Agent's Certificate
     of Authentication on this bond has been executed by the Transfer Agent.


                                                     -7-
              IN WITNESS WHEREOF, the City of Muskegon, County of Muskegon, State of
       Michigan, by its City Commission, has caused this bond to be signed in the name of the City by
       the facsimile signatures of its Mayor and City Clerk and a facsimile of its corporate seal to be
       printed hereon, all as of the Date of Original Issue.

                                                CITY OF MUSKEGON
                                                County of Muskegon
                                                State of Michigan


                                                By¼~          Its Mayor

       (SEAL)
       Countersigned



~
        ~ Q_tL4a;_,
       City Clerk
ui
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~
0
z.,:

8"'
0


;                          (Form of Transfer Agent's Certificate of Authentication)
u:
z
c)

~      DATE OF REGISTRATION:
~




                                  CERTIFICATE OF AUTHENTICATION

             This bond is one of the bonds described in the within-mentioned resolution.


                                                FIFTH THIRD BANK,
                                                Grand Rapids, Michigan,
                                                Transfer Agent

       By _ _ _ _ _ _ __
        Authorized - - - - -




                                                     -8-
                                       [Bond printer to insert form of assignment]




                  12.    The purchase of a policy of municipal bond insurance from MBIA Insurance

          Corporation insuring the Bonds be and is hereby approved. The Mayor, Clerk, and Finance

          Director of the City be and are hereby authorized to give execute such certificates and

          documents as are necessary to effect the purchase of said policy of insurance

                  13.     All resolutions and parts of resolutions insofar as they conflict with the provisions

                 of this resolution be and the same hereby are rescinded.

          AYES:          Members Spataro, Aslakson, Benedict, Nielsen, Schweifler,
 0
 .J
 a:
 ui
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 f2
                        She herd
 V)
 0
 z
~         NAYS:          Members     None
8
Q
Q
it
g
w
          RESOLUTION DECLARED ADOPTED.
u::
z
1.'i
°':.!_,
~




                                                           -9-
                I hereby certify that the foregoing constitutes a true and complete copy of a resolution

      adopted by the City Commission of the City of Muskegon, County ofMuskegon, State of

      Michigan, at a regular meeting held on July 24, 2001, 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 1976, and that the minutes of said meeting were

      kept and will be or have been made available as required by said Act.



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                                                      - 10-
                                                                                                      Draft


                                  BOND PURCHASE AGREEMENT



                                         CITY OF MUSKEGON

                        COUNTY OF MUSKEGON, STATE OF MICHIGAN

                   2001 DOWNTOWN DEVELOPMENT REFUNDING BONDS

                             (GENERAL OBLIGATION LIMITED TAX)


                                               July~, 2001


City of Muskegon
County of Muskegon
State of Michigan

Ladies and Gentlemen:

        The undersigned, First of Michigan Corporation Division of Fahnestock & Co. Inc. (the
"Underwriters"), offers to enter into this Bond Purchase Agreement relating to the 2001 Downtown
Development Refunding Bonds (General Obligation Limited Tax), in the aggregate principal amount set
fmih in Exhibit A hereto (the "Bonds") of the City of Muskegon, County of Muskegon, State of
Michigan (the "Issuer"). This offer is made subject to the Issuer's acceptance of this Agreement on or
before 11:00 p.m., prevailing Eastern Time, on the date hereof, and if not so accepted will be subject to
withdrawal by the Underwriters upon notice delivered to the Issuer at any time prior to acceptance
hereof by the Issuer. The Bonds are to be issued and sold pursuant to the provisions of Act 197, Public
Acts of Michigan, 1975, as amended ("Act 197''), and resolutions duly adopted by the City Commission
of the Issuer on June 12, 2001 and July 10, 2001 (together the "Resolution") for the purposes of
refunding a portion of the Downtown Development Authority of the City of Muskegon 1989 Downtown
Development Limited Obligation Tax Increment Bonds, Series A-1 dated as of August 30, 1990 (the
"Series A Bonds") and the Downtown Development Authority of the City of Muskegon 1989
Downtown Development Limited Obligation Tax Increment Bonds, Series D-1 dated as of August 30,
2001 (the "Series D Bonds") and paying the costs of issuance of the Bonds and of the refunding. After
setting aside proceeds of the Bonds for the payment of all or a portion of the costs of issuance of the
Bonds, the remaining proceeds of the Bonds, together with funds of the Issuer, will be invested in direct
obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by,
the United States of America, or other obligations the principal of and interest on which are fully
secured by the foregoing (the "Government Obligations"), such that the principal of and interest on such
obligations will be sufficient to pay interest, redemption premium and principal on the Refunded Bonds
to be refunded to their call date. The Bonds shall be dated, shall have the maturities, bear interest at the
rates per annum, be sold with original issue discounts, if any, and be subject to redemption at the times,
on the terms and in the manner set fotih in Exhibit A attached hereto and made a pati hereof.
        A Preliminary Official Statement, dated July _, 2001 (the "Preliminary Official Statement"),
describing the Issuer, the Bonds and security for the Bonds has been prepared for use in connection with
the public offer, sale and distribution of the Bonds. There has also been prepared a final Official
Statement dated July , 2001 (the "Official Statement"), setting forth definitive information relating to
the terms of offering of the Bonds. Any and all appendices, exhibits, reports and summaries included in
the Preliminary Official Statement or the Official Statement or attached thereto shall be for all purposes
hereof deemed to be a part of the Preliminary Official Statement and the Official Statement, as
applicable. The Issuer confirms that the information contained in the Preliminary Official Statement
was deemed to be final as of its date for the purpose of enabling the Underwriters to comply with the
requirements of Rule l 5c2-12(b )(1) (the "Rule") of the Securities and Exchange Commission (the
"SEC"), except for the omission of such information as is pem1itted by Rule 15c2-12(b)(l). The Issuer
deems the Official Statement to be final as of its date. The Issuer hereby confirms the authority of the
Underwriters to use, and consents to the use of, the Preliminary Official Statement and the Official
Statement and any amendments or supplements thereto in connection with the offer, sale and
distribution of the Bonds. The Issuer agrees to provide or cause to be provided to the Underwriters
within seven (7) business days after the date hereof sufficient copies of the Official Statement to enable
the Unde1writers to comply with the requirements of Rule 15c2-12(b)(4) of the Securities and Exchange
Commission and with any applicable requirements of the Municipal Securities Rulemaking Board (the
"MSRB"). The Issuer agrees to provide or cause to be provided two (2) executed copies of the Escrow
Agreement (the "Escrow Agreement") between the Issuer and Fifth Third Banlc, Grand Rapids,
Michigan, as escrow agent (the "Escrow Agent"), on the Closing Date (hereinafter defined) to pe1mit the
Underwriters to comply with the requirements of Rule G-36 of the MSRB.

        1.      Purchase, Sale and Closing. Upon the basis of the representations and covenants
contained herein, but snbject to the conditions hereinafter set forth, the Issuer hereby agrees to sell to the
Underwriters, and the Unde1writers agree to purchase from the Issuer, all (but not less than all) of the
Bonds at the price set forth in Exhibit A hereto. Payment for the Bonds shall be made to the order of the
Treasurer of the Issuer in immediately available funds. The closing for the payment for the Bonds shall
take place at the offices of Miller, Canfield, Paddock and Stone P.L.C., at 10:00 a.m., Eastern Daylight
Savings Time, on_____ , 2001, or at such other date, place, or time as may be designated by
the Unde1writers with the approval of the Issuer (the "Closing Date"). The Bonds shall be printed in
definitive fonn for registration through a book-entry-only system of registration and shall be delivered
on the Closing Date in New York, New York, registered in the name of Cede & Co., as nominee for The
Depository Trust Company. The Bonds will be made available to the Underwriters at the place of
delivery for inspection and packaging at least 24 hours before the Closing Date. The Issuer has
appointed Fifth Third Banlc, Grand Rapids, Michigan, as paying agent (in such capacity, the "Paying
Agent").

       2.      Issuer's Representations and Covenants. The Issuer represents and covenants as follows:

               (a)     The Issuer is a duly organized and validly existing public corporation of the State
       of Michigan organized and existing pursuant to Act 279 of the Public Acts of 1909, as amended
       and has full power and authority (i) to adopt the Resolution, (ii) to execute, deliver and perform
       its obligations under this Agreement, the Resolution, the Escrow Agreement, and the Tender
       Offer and Acceptance dated as of           , 2001 by and between the Issuer and Morgan Stanley
       & Co. Incorporated (the "Tender") and the Bonds, (iii) to issue, sell, execute and deliver the
       Bonds to the Underwriters as provided herein and (iv) to carry out and consummate all actions
       required to be taken by it in connection with the transactions contemplated by the aforesaid
                                                     2
documents.

       (b)    The Issuer has duly authorized (i) the execution and delivery of, and the due
performance by the Issuer of its obligations under, this Agreement, the Resolution, the Escrow
Agreement, the Tender and the Bonds and (ii) the taking of any and all actions as may be
required on the part of the Issuer to carry out, give effect to and consummate the transactions
contemplated by such documents.

        (c)     The Resolution has been duly enacted and adopted by the Issuer, have not been
amended, modified, supplemented or repealed, except as provided therein, and are in full force
and effect. This Agreement has been duly authorized, executed and delivered by the Issuer.
This Agreement is, and the Escrow Agreement, Tender and Bonds will be, when duly executed
and delivered by the Issuer, legal, valid and binding obligations of the Issuer enforceable in
accordance with their respective terms, except that the binding effect and enforceability thereof
are subject to applicable bankrnptcy, insolvency, reorganization, moratorium and similar laws in
effect from time to time affecting the rights of creditors generally and except to the extent that
the enforceability thereof may be limited by application of general principles of equity. At or
prior to the Closing Date, the Bonds shall be duly executed and delivered by the Issuer.

         (d)    Upon advice of counsel and to the best of the Issuer's knowledge, (i) the
enactment of the Resolntion, the authorization, execution and delivery by the Issuer of this
Agreement, the Escrow Agreement, the Tender and the Bonds, and compliance with the
provisions of each of such instrnments will not conflict with or result in a violation of the
Constitution of the State of Michigan or the laws of the State of Michigan (including Act 197 or
any debt limitations or other restrictions or conditions on the debt-issuing power of the Issuer)
and (ii) the adoption of the Resolution, the auth01ization, execution and delivery by the Issuer of
this Agreement, the Escrow Agreement, the Tender and the Bonds, and compliance with the
provisions of each of such instrnments will not conflict with or constitute a breach of, or default
under, any indenture, commitment, agreement or other instrnment to which the Issuer is a party
or by which it is bound or under any constitutional or statutory provisions, or rnle, regulation,
resolution, judgment, order or decree to which the Issuer or any of its property is subject. The
Issuer has not received any written notice, not subsequently withdrawn, given in accordance with
the remedy provisions of any bond resolution, trust indenture or agreement or state law
pertaining to bonds or notes, of any default or event of default which has not been cured,
remedied or waived.

        (e)     There is no action, suit, proceeding, inquiry or investigation at law or in equity, or
before or by any judicial or administrative court, public board or body, pending or threatened
against the Issuer (nor, to the best of the Issuer's knowledge, is there any basis therefor), in any
way (i) contesting or affecting the existence of the Issuer or title of any official of the Issuer to
such person's office, (ii) seeking to restrain or enjoin the issuance, sale or delivery of the Bonds,
the levy and collection of rates and charges anticipated to be collected and paid to the Issuer and
used to pay the principal of, premium, if any, and interest on the Bonds or the payment of the
moneys, property, or revenues pledged or to be pledged for the payment of principal of,
premium, if any, or interest on the Bonds, (iii) contesting or affecting the validity or
enforceability of this Agreement, the Escrow Agreement, the Tender, the Resolution or the
Bonds, or (iv) contesting the completeness or accuracy of the Official Statement or the powers or
authority of the Issuer to engage in the transactions contemplated by this Agreement, the Escrow
                                              3
Agreement, the Tender, the Resolution or the Bonds, or (v) questioning the exemption of interest
on the Bonds from taxation as described under "Tax Matters" in the Official Statement.

        (f)     Upon the advice of counsel and to the best of the Issuer's knowledge, there is no
election or referendum of or by any person, organization or public body pending, proposed or
concluded (nor, to the best of the Issuer's knowledge, is there any basis therefor) and there are no
provisions of law of the State of Michigan which would allow, as of the date hereof or any date
subsequent hereto, such election or referendum, the results of which could in any way adversely
affect the transactions contemplated by this Agreement, the Escrow Agreement, the Tender, the
Resolution, or the Bonds or the validity or enforceability of such instruments.

       (g)     Upon the advice of counsel and to the best of the Issuer's knowledge, except as
may be required under the securities laws of any state, there is no consent, approval,
authorization or other order of, or any filing with, registration with, or ce1tification by, any
governmental or regulatory authority having jurisdiction over the Issuer or required for the
issuance of the Bonds other than such as has already been provided or obtained (including the
approval of the Department of Treasury, State of Michigan).

       (h)     Any certificates or other instrument signed by the Mayor, City Clerk, City
Manager, or Finance Director of the Issuer or by a duly appointed and acting deputy of any of
said officials on his or her behalf, and delivered to the Unde1writers shall be deemed a
representation by the Issuer to the Underwriters as to the truth of the statements made therein.

        (i)     On or prior to the Closing Date, the Issuer shall have taken all actions necessary
to be taken by it for: (i) the issuance, sale, execution and delivery of the Bonds upon the terms
set fmth herein and in Resolution, (ii) the execution and delivery by the Issuer of this Agreement,
the Escrow Agreement, the Tender and all such other instruments and the taking of all actions on
the part of the Issuer as may be necessary or appropriate for the effectuation and consummation
of the transactions on the pmt of the Issuer contemplated thereby, and (iii) the execution and
delivery of the Issuer of such instruments and the taking of all actions on the part of the Issuer as
may be necessary or appropriate for the effectuation and consummation of the transactions on the
part of the Issuer contemplated thereby. Between the date of this Agreement and the Closing
Date the Issuer will take no action which will cause any representation contained in this
Agreement to be untrue as of the Closing Date.

        G)       The Issuer will furnish such infonnation, execute such instruments and take such
other action in cooperation with the Underwriters as the Underwriters may deem necessary in
order to qualify the Bonds for offer and sale under the "blue sky" or securities laws and
regulations of such states and other jurisdictions of the United States as the Underwriters may
designate; provided, however, that the Issuer will not be required to consent to service of process
in any state or jurisdiction outside the State of Michigan.

       (k)    The Issuer will not take or omit to take any action, which action or omission will
in any way adversely affect the exemption from taxation of the interest on the Bonds as
described under "Tax Matters" in the Official Statement or result in the proceeds from the sale of
the Bonds being applied in a manner other than as provided in the Ordinance and Resolution.

       (1)     No default by the Issuer has occurred in the payment of the principal of or

                                             4
premium, if any, or interest on any bond, note or other evidence of indebtedness issued by the
Issuer. No bankruptcy, insolvency or other similar proceedings pe1iaining to the Issuer are
pending or, to the best of the knowledge of the Issuer, contemplated.

        (m)    The Preliminary Official Statement (other than the information relating to the
Book-Entry-Only System supplied by DTC and the information under the section captioned
"Underwriting" provided by the Underwriters, as to which no representation is made), as of its
date, did not include any untrue statement of a material fact or omit to state any material fact
necessary to make the statements made therein, in light of the circumstances under which they
were made, not misleading, and the Official Statement, including any amendments or
supplements thereto (other than the information relating to the Book-Entry-Only System
supplied by DTC and the information under the section captioned "Underwriting" provided by
the Underwriters, as to which no representation is made), will not, as of the date thereof, as of the
Closing Date or as of the date of any such amendment or supplement, include any untrue
statement of a material fact or omit to state any material fact necessary to make the statements
made therein, in light of the circumstances under which they are or were made, not misleading.

        (n)     The Issuer will not amend or supplement the Official Statement without the
consent of the Underwriters. The parties hereto will advise each other promptly of the institution
of any proceedings by any governmental agency or any other material occunence affecting the
use of the Official Statement in connection with the offer and sale of the Bonds.

        (o)     If at any time, during the period from the date hereof to the date of delivery of the
Bonds, any event occurs as a result of which the Official Statement, as then amended or
supplemented, would include an untrue statement of a material fact or omit to state any material
fact necessary to make the statements made therein, in the light of the circumstances under which
they were made, not misleading, the parties hereto will cooperate with each other in the prompt
preparation of an amendment or supplement which will correct such statement or omission, and
the costs of any such amendment or supplement shall be borne by the Issuer.

        (p)     The financial statements of the Issuer included in the Official Statement present
the financial position of the Issuer at December 31, 2000 and the results of its operations and the
changes in its financial position for the year then ended. For the period January 1, 2001 to the
date hereof, there has been no material adverse change in the financial condition of the Issuer.

      (q)     The Issuer will send one copy of its audited financial statements annually to the
Unde1writers upon request therefor as soon as the audited financial statements become available.

        (r)    The Issuer will provide the Underwriters with infonnation pertaining to the Issuer
concerning developments that affect the accuracy and completeness of key representations
contained in the Official Statement until the earlier of (a) 90 days from the end of the
underwriting period, as defined below, or (b) the time when the Official Statement is available to
any person from a nationally recognized municipal securities information repository, but in no
case less than 25 days following the end of the underwriting period, as defined below. The
Issuer further agrees that it will cooperate with the Underwriters in amending the Official
Statement if any of such information, in the judgment of the Underwriters, requires that the
Official Statement to be amended in fulfillment of the Underwriters' responsibilities pursuant to
Rule 15c2-12 of the Securities and Exchange Commission. The "end of the underwriting

                                             5
       period" as referred to in the preceding sentence shall be the later of the delivery of the Bonds by
       the Issuer to the Underwriters or when the Underwriters no longer retain (directly or as a
       syndicate member) an unsold balance of the Bonds for sale to the public, and shall be deemed to
       be _ _ _ _ _ _ _, 2001, unless the Underwriters notify the Issuer in writing prior to such
       date that there exists an unsold balance of the Bonds, in which case the end of the unde1writing
       period shall be deemed to be extended for 30 days from the date of such notice, subject to
       extension for additional petiods of 30 days each upon receipt of prior written notice from the
       Underwriters that there exists an unsold balance of the Bonds. The Underwriters agree to file the
       Official Statement with a nationally recognized municipal securities information repository on or
       before the Closing Date and to file the Official Statement with the MSRB or its designee as
       provided in Rule G-36 of the MSRB.

        It is further understood and agreed that the members of the Issuer, the agents, attorneys, or
employees of the Issuer, their respective heirs, personal representatives or successors shall not be
generally or personally liable in connection with any matter, cause or thing pertaining to the Bonds or
the issuance thereof, this Agreement, or any instruments and documents executed and delivered by the
Issuer in connection with issuance of the Bonds. No covenant or agreement contained in this Agreement
shall be deemed to be the covenant or agreement of any member, officer, attorney, agent or employee of
the Issuer in an individual capacity. No recourse shall be had for the payment of the principal of,
premium, if any, or interest on, the Bonds, or for any claim based hereon or on any instruments and
documents executed and delivered by the Issuer in connection with the Bonds, against any officer,
member, agent, attorney or employee, past, present or future, of the Issuer or any successor body, or
their respective heirs, personal representatives, successors as such, either directly or through the Issuer
or any successor body, whether by virtue of any constitutional provision, statute or rule of law, or by the
enforcement of any assessment or penalty, or othe1wise, all of such liability being hereby released as a
condition of and as a consideration for the execution and delivery of this Agreement.

        3.      Conditions of Underwriters' Obligations. The obligations of the Underwriters hereunder
with respect to the Bonds shall be subject to (a) the compliance with and performance by the Issuer of its
obligations and agreements to be complied with and performed hereunder and under the Ordinance on or
prior to the Closing Date, (b) the truth, accuracy and completeness as of the date hereof of the
representations and covenants of the Issuer contained herein; and (c) the ttuth, accuracy and
completeness on the Closing Date of the representations and covenants of the Issuer contained herein.

       The obligations of the Underwriters hereunder with respect to the Bonds are also subject to the
following further conditions:

               (a)    This Agreement, the Escrow Agreement, the Tender and the Bonds shall have
       been duly authorized and executed by the Issuer; the Resolution shall have been duly enacted
       and adopted, authorized and executed by the Issuer; the Resolution shall be in full force and
       effect and shall not have been amended, modified or supplemented; all necessary actions of the
       Issuer relating to the foregoing shall be in full force and effect without rescission or
       modification; and there shall have been taken in connection with the issuance of the Bonds and
       with the transactions contemplated hereby and thereby all such actions as, in the opinion of Bond
       Counsel, are necessary and appropriate.

               (b)    On or ptior to the Closing Date, the Underwriters shall have received:


                                                    6
        (i) Opinions, dated the Closing Date, of Miller, Canfield, Paddock and Stone,
P.L.C., as Bond Counsel, substantially in the form attached as Appendix D to the Official
Statement and a supplemental opinion substantially in the fonn attached hereto as Exhibit
B.

       (ii)    A certificate, dated the Closing Date, signed by the Mayor, City Clerk,
City Manager or Finance Director of the Issuer, or any of the foregoing, in form and
substance satisfactory to the Unde1writers, to the effect that (A) each of the
representations of the Issuer set forth in this Agreement is true, accurate and complete on
the Closing Date as if made on and as of the Closing Date, and (B) each of the covenants
of the Issuer to be complied with and each of the obligations of the Issuer to be
performed under this Agreement, the Escrow Agreement, the Tender, the Resolution and
the Continuing Disclosure Agreement of the Issuer pursuant to the Rule (the "Continuing
Disclosure Agreement") on or prior to the Closing Date have been complied with and
performed.

        (iii) Such additional certificates (including but not limited to appropriate non-
arbitrage certificates), instruments or other documents as the Underwriters may
reasonably request to evidence (a) the truth, accuracy and completeness, as of the Closing
Date, of the representations of the Issuer at such time, and (b) the performance of all
agreements then to be performed and all conditions then to be satisfied by the Issuer in
connection with this Agreement, the Escrow Agreement, the Tender, the Resolution and
the Bonds.

       (iv)   The Resolution each ce1tified by the Secretary of the Issuer as having
been duly adopted.

       (v)     A counterpart original of a transcript of all proceedings relating to the
authorization and issuance of the Bonds.

         (vi)    The Official Statement, executed on behalf of the Issuer by an authorized
official.

       (vii) An Order of Approval and related waivers effective on the date hereof and
on the Closing Date of the Department of Treasury, State of Michigan, pursuant to which
the Bonds may be issued and delivered.

      (viii) Confirmation that the Issuer has received underlying ratings no lower than
"BBB-" from Standard & Poor's Rating Services.

        (viii)   An executed copy of the Escrow Agreement.

       (ix)    The verification rep011 of Causey, Demgen & Moore, Denver, Colorado
(the "Verification Agent"), with respect to the adequacy of the escrow for the Refunded
Bonds and the yields on the Bonds and the Prior Bonds and the securities held in the
escrow for the Refunded Bonds.

        (x)      An executed copy of the Continuing Disclosure Agreement of the Issuer.


                                      7
                         (xi)     A letter from the Issuer's auditors consenting to the inclusion of the
                 auditors' letter with the audited financial statements of the Issuer included as an appendix
                 to the Official Statement.

                         (xii) Such additional certificates as the Underwriters may reasonably request to
                 evidence perfo1mance of or compliance with the provisions hereof and the transactions
                 contemplated hereby and by the Official Statement, all such certificates to be satisfactory
                 in form and substance to the Underwriters.

        If any of the conditions specified in this Section shall not have been fulfilled when and as
required by this Agreement, or if any of the opinions, instrnments, documents, proceedings or
certificates mentioned above or elsewhere in this Agreement shall not be in all material respects
reasonably satisfactory in fonn and substance to the Underwriters, this Agreement and all obligations of
the Underwriters hereunder may be canceled by the Underwriters, or at any time prior to, the Closing
Date. Notice of such cancellation shall be given to the Issuer in writing, or by telex confomed in
writing.

      4.       Conditions of the Issuer's Obligations. The Issuer's obligations to sell and deliver the
Bonds shall be subject to the following conditions on or before the Closing Date:

                 (a)    The Issuer shall have received the opinions described in Section 3(b )(i) hereof.

                 (b)    The Unde1writers shall have tendered the purchase price set forth in Section I
       hereof.

              (c)    The Issuer shall have received such additional certificates as the Issuer may
       reasonably request, including a certificate as to the "original issue price."

        5.       Te1mination. This Agreement may be terminated by the Underwriters and the Issuer
shall not be obligated to sell and deliver, and the Underwriters shall not be obligated to purchase and pay
for, the Bonds on the Closing Date if the Underwriters shall deliver to the Issuer a certificate to the
effect that in its reasonable judgment any of the following events has occurred after the date hereof and
on or prior to the Closing Date:

               (a)    The marketability of the Bonds or the contemplated offering price thereof, in the
       opinion of the Unde1writers, have been materially adversely affected by an amendment to the
       Constitution of either the United States of America or the State of Michigan, or by any Federal or
       Michigan legislation, proposed, pending or effective, or by any decision of any Federal or
       Michigan court or by any announcement, order, rnling or regulation (final, temporary or
       proposed) of the Treasury Department of the United States of America, the Internal Revenue
       Service or other Federal or Michigan authority or regulatory body, affecting the status of the
       Issuer, its property, income or securities (including the Bonds), or any tax exemption with
       respect to the Issuer's securities (including the Bonds), or the interest thereon granted or
       authorized by the Internal Revenue Code of 1986, as amended.

               (b)     A stop order, ruling, regulation or official statement by, or on behalf of, any
       governmental agency having jurisdiction shall have been issued or made to the effect that the
       issuance, offering or sale of obligations of the general character of the Bonds, or the issuance,
       offering or sale of the Bonds as contemplated hereby, is in violation or would be in violation of
                                                    8
        any provisions of Federal or Michigan secmities laws.

               (c)     Legislation shall have been enacted by the Congress of the United States of
       America, or a decision by a court of the United States of America shall have been rendered, to
       the effect that obligations of the general character of the Bonds are not exempt from registration
       or qualification under, or other similar requirements of, the Federal securities laws.

               (d)      An order, ruling, regulation, official statement or decision by any governmental
       agency or comi having jurisdiction shall have been issued or made which calls into question the
       legality, validity or enforceability of the issuance of the Bonds.

              (e)     Additional material restrictions not in force as of the date hereof shall have been
       imposed upon the trading in securities generally by any governmental authority or by any
       national securities exchange.

                (f)    Any of the following events shall have occurred: (A) the engagement by the
       United States of America in hostilities which have resulted in a declaration of war or national
       emergency, or the occurrence of any other outbreak of hostilities or national or international
       calamity or crisis, financial or othe1wise, the effect of such outbreak, calamity or crisis on the
       financial markets of the United States of An1erica being such as, in the opinion of the
       Underwriters, would adversely affect the ability of the Unde1writers to market the Bonds at the
       intended offering prices (it being agreed by the Underwriters that there is no outbreak, calamity
       or crisis of such a character as of the date hereof); (B) a general suspension of trading on the
       New Yark Stock Exchange or the American Stock Exchange or other national securities
       exchange; (C) the establishment of limited or minimum prices on such Exchanges; (D) the
       declaration of a banking moratmium either by Federal, New Yark State, Wisconsin, Illinois or
       Michigan authorities; or (E) the New Yark Stock Exchange or other national secmities exchange,
       or any goverrnnental authority, shall impose, as to the Bonds or similar obligations, any material
       restrictions not now in force, or increase materially those now in force, with respect to the
       extension of credit by, or the charge to the net capital requirements of, any of the Underwriters;
       or (vi) an event which, in the reasonable opinion of the Unde1writers, requires an amendment or
       supplement to the Official Statement and, in the reasonable opinion of the Underwriters,
       adversely affects the marketability of the Bonds or the contemplated offering price thereof.

         6.      Costs and Expenses. (a) Except as set forth herein, the Underwriters shall be under no
obligation to pay, and the Issuer shall pay, all expenses incident to the performance of the Issuer's
obligations hereunder, including but not limited to (i) fees and disbursements of Bond Counsel, the fees
and disbursements of the financial advisor, the fees and disbursements of the Escrow Agent and the fees
and disbursements of the Paying Agent in connection with the issuance of the Bonds; (ii) the costs of
printing and distributing the Bonds, the Preliminary Official Statement and the Official Statement, and
(iii) the cost of obtaining a rating on the Bonds.

                 (b)    The Underwriters shall pay: (i) all advertising expenses in connection with the
       public offering of the Bonds; (ii) the fees and disbursements of counsel to the Underwriters; and
       (iii) all other expenses incurred by them in connection with their public offering and distribution
       of the Bonds.

       7.     Indemnification. (a) To the extent pennitted by law, the Issuer agrees to indemnify and

                                                    9
hold harmless the Underwriters and each person, if any, who controls the Underwriters (within the
meaning of Section 15 of the Securities Act of 1933) against any and all losses, claims, damages,
liabilities and expenses (including reasonable costs of investigation) caused by any untrue statement or
alleged untrue statement of a material fact made by the Issuer and contained in the Official Statement, or
in any amendment or supplement thereto made by the Issuer, caused by any omission or alleged
omission to state therein a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

        (b)    The Underwriters agree to indemnify and hold harmless the Issuer to the same effect as
the foregoing indemnity from the Issuer to the Underwriters, but only with respect to information
furnished by or on behalf of the Underwriters expressly for use in connection with the Preliminary
Official Statement or the Official Statement, and appearing therein under the heading "Underwriting."

        (c)    The indemnity agreements contained in this Paragraph 7 and the representations and
wmrnnties of the Issuer set forth in this Agreement shall remain operative and in full force and effect
after the Closing Date, regardless of any investigation made by or on behalf of the Underwriters or any
person so controlling the Underwriters or by or on behalf of the Issuer. A successor of any of the
Underwriters or of the Issuer shall be entitled to the benefits of the indemnity agreements contained in
this Paragraph 7.

        In case any action or claim shall be brought against the Issuer based upon the Preliminary
Official Statement or the Official Statement, and in respect of which indemnity may be sought from the
Underwriters, the Underwriters shall have the rights and duties given to the Issuer and the Issuer shall
have the rights and duties given to the Underwriters, by subparagraph (a) of this Paragraph 7.

        8.     Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Michigan, including, without limitation, those laws applicable to contracts made
and to be performed in that State.

        9.      Survival of Representations and Covenants. All representations and covenants of the
Issuer and agreements of the Underwriters set fo1th in this Agreement shall remain in full force and
effect regardless of any investigation, or statement as to the results thereof, made by or on behalf of any
purchaser of the Bonds or any person controlling any such purchaser, and shall survive delivery of and
payment for the Bonds.

        10.     Execution in Counterparts. This Agreement may be executed and accepted in any
number of counterparts, all of which taken together shall constitute one and the same instrument, and
any of the parties hereto may execute or accept this Agreement by signing any such counterpart.

        11.     Notices and Other Actions. All notices, requests, demands and fonnal actions hereunder
shall be in writing mailed, telegraphed or delivered to the following addresses:

       The Issuer:

       City of Muskegon
       933 Terrace Street
       Muskegon,MI 49443
       Attention: Finance Director

                                                    10
       The Underwriters:

       First of Michigan Division of Fahnestock & Co. Inc.
       300 River Place, Suite 4000
       Detroit, Michigan 48207-5056
       Attn: Public Finance Department

        12.    Parties in Interest. This Agreement is made solely for the benefit of the Underwriters,
persons controlling the Underwriters, the Issuer, and their respective successors and assigns, and no
other person, partnership, association or corporation shall acquire or have any right under or by virtue of
this Agreement. The terms "successors" and "assigns" shall not include any purchaser of Bonds from or
through any Underwriters merely because of such purchase.




                                                    11
              If the foregoing is in accordance with your understanding of the agreement by and between the
      Issuer and the Underwriters, kindly sign and return to First of Michigan one of the enclosed copies
      hereof, whereupon it will constitute a binding agreement between the Issuer and the Underwriters in
      accordance with its terms.

                                                 Very truly yours,

                                                 FIRST OF MICHIGAN DIVISION OF FAHNESTOCK &
                                                 CO. INC.

                                                 By_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

                                                 Its- - - - - - - - - - - - - - - - - - - - -


      Accepted as of the date
      first above written:

      CITY OF MUSKEGON
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                                                       12
                                              EXHIBIT A

Principal Amount:

Purchase Price:                $_ _ _ _ _(i.e., principal amount of the Bonds of $_ _ _ _ __
                               less original issue discount of$____ , less Underwriters' discount of
                               $_ _~

Date oflssue:                                  , 2001

Interest Payment Dates:        December 1, 2002 and semiannually thereafter


Maturity Schedule,
Interest Rates and Issue Price{s):

       June 1                 Principal                              Price/Yield
        Year




Redemption Provisions:




                                          Exhibit A-1
             EXHIBIT B

[Supplemental Opinion of Bond Counsel]




         Exhibit B-1
DELIB:2245594. l \063684-00024




                                 Exhibit C-2
                                ESCROW AGREEMENT

                           CITY OF MUSKEGON
                 COUNTY OF MUSKEGON, STATE OF MICHIGAN

               2001 DOWNTOWN DEVELOPMENT REFUNDING
          REFUNDING BONDS (GENERAL OBLIGATION LIMITED TAX)



      THIS ESCROW AGREEMENT (the "Agreement") dated as of the _ day of
-----
           , 2001, made between the City of Muskegon, County of Muskegon, State of
Michigan (the "Issuer") and Fifth Third Bank, Michigan, Grand Rapids, Michigan (the
"Escrow Agent").


                                  W I TN E S S E T H:

       WHEREAS, there are presently outstanding $3,600,000 in principal amount of the
Downtown Development Authority of the City of Muskegon (the "Authority") 1989
Downtown Development Limited Obligation Tax Increment Bonds, Series A-1 (the
"Series A Bonds") and $1,685,000 of the Authority's 1989 Downtown Development
Limited Obligation Tax Increment Bonds, Series D-1 (the "Series D Bonds") each series
dated as of August 30, 1990 (together the "Refunded Bonds"); and

       WHEREAS, the Refunded Bonds mature serially in such years, are subject to
optional redemption, bear interest at such rates and are payable as to interest at the times
and in the amounts set fmih in Exhibit A attached hereto and made a part hereof; and

       WHEREAS, the Issuer proposes to purchase $900,000 of the Series A Bonds from
the holder thereof on or prior to the effective date of this Agreement; and

      WHEREAS, the Issuer now desires to refund the entire principal amount of the
Refunded Bonds now outstanding (after giving effect to the purchase of the Series A
Bonds described in the foregoing paragraph); and

       WHEREAS, the Issuer has adopted a resolution authorizing the issuance of its
2001 Downtown Development Refunding Bonds (General Obligation Limited Tax) (the
"Refunding Bonds") for the purpose of providing amounts sufficient to provide for the
payment of the principal of, interest on and redemption premiums on the Refunded Bonds
on the dates and in the amounts shown on Exhibit B attached hereto; and

       WHEREAS, the Issuer desires to provide for the deposit of pati of the proceeds of
its Refunding Bonds with the Escrow Agent to provide for the payment of the interest on
the Refunded Bonds to December 1, 2001, and for the call for redemption on December
1, 2001 of the p1incipal amount of the Refunded Bonds; and

       WHEREAS, the Issuer desires to enter into this escrow agreement with the
Escrow Agent to provide for the safekeeping, investment, reinvestment, administration
and disposition of any such deposit, upon such terms and conditions herein set forth; and

       WHEREAS, the Issuer desires that, concun-ently with the delivery of the
Refunding Bonds to the purchasers thereof, a portion of the proceeds of the Refunding
Bonds shall be applied to purchase certain direct obligations of or obligations the
principal of and interest on which are unconditionally guaranteed by the United States of
America, or other obligations the principal of and interest on which are fully secured by
the foregoing for deposit to the credit of the Escrow Fund created pursuant to the terms of
this Agreement and to establish a beginning cash balance in the Escrow Fund; and

       WHEREAS, the Escrowed Securities shall mature and the interest thereon shall be
payable at such times and in such amounts so as to provide moneys which, together with
cash balances from time to time on deposit in the Escrow Fund, will be sufficient to pay
interest on the Refunded Bonds as it accmes and becomes payable, the principal of the
Refunded Bonds upon redemption and the redemption premiums payable upon the call of
the Refunded Bonds; and

     WHEREAS, by resolution of the Issuer approved on July 10, 2001 the City
Commission of the Issuer duly authorized the negotiation and execution of this
Agreement, certified copies of such resolution have been filed with the Escrow Agent.

       NOW, THEREFORE, in consideration of the mutual undertakings, promises and
agreements herein contained, the sufficiency of which hereby are aclmowledged, and to
secure the full and timely payment of the principal of, the interest on and the redemption
premiums on the Refunded Bonds, the Issuer and the Escrow Agent mutually undertake,
promise, and agree for themselves and their respective representatives and successors, as
follows:


                                       ARTICLE I

                      DEFINITIONS AND INTERPRETATIONS

       Section 1.01. Definitions. Unless the context clearly indicates otherwise, the
following terms shall have the meanings assigned to them below when they are used in
this Agreement:

       "Code" means the Internal Revenue Code of 1986, as amended, and the mies and
regulations thereunder.



                                           -2-
        "Escrow Agent" means Fifth Third Bank, Michigan, Grand Rapids, Michigan and
its successors as Escrow Agent under this Agreement.

       "Escrow Fund" means the City of Muskegon 2001 Downtown Development
Refunding Bonds (General Obligation Limited Tax) Escrow Fund created and described
in Section 3.01 of this Agreement.

       "Escrowed Securities" means those securities described in Exhibit C attached to
this Agreement.

       "Issuer" means the City of Muskegon, County of Muskegon, State of Michigan.

       "Refunded Bonds" means the outstanding $3,600,000 in principal amount of the
Series A Bonds less the amount of said Series A Bonds repurchased by the Issuer, and the
$1,685,000 in principal amount of the Series B Bonds, of the Authority being refunded
pursuant to the terms of this Agreement and which are more fully described in Exhibit A.

       "Refunded Bonds Resolutions" means the respective resolutions duly adopted by
the City Commission of the Issuer authorizing the Refunded Bonds.

      "Refunded Bonds Transfer Agent" means Fifth Third Bank, Michigan,             Grand
Rapids, Michigan.

      "Refunding Bonds" means the Issuer's $4,_,_ 2001 Downtown Development
Refunding Bonds (General Obligation Limited Tax) dated as of___ , 2001.

        Section 1.02. Interpretations. The titles and headings of the articles and sections
of this Agreement have been inserted for convenience and reference only and are not to
be considered a part hereof and shall not in any way modify or restrict the terms hereof.
This Agreement and all of the terms and provisions hereof shall be liberally construed to
effectuate the purposes set forth herein and to achieve the intended purpose of providing
for the refunding of the Refunded Bonds in accordance with applicable law.


                                       ARTICLE II

                              DEPOSIT OF FUNDS AND
                              ESCROWED SECURITIES

       Section 2.01. Deposits in the Escrow Fund. The Issuer has deposited, or caused
to be deposited, in the Escrow Fund the following funds and Escrowed Securities:

             (a)     $_ _ _   as the beginning cash balance for the Escrow Fund;
      and




                                           -3-
              (b)    the Escrowed Securities described m Exhibit C attached
       hereto against payment.


                                      ARTICLE III

                 CREATION AND OPERATION OF ESCROW FUND

        Section 3.01. Escrow Fund. The Escrow Agent has created on its books a special
and irrevocable escrow fund to be !mown as the City of Muskegon 2001 Downtown
Development Refunding Bonds (General Obligation Limited Tax) Escrow Fund. The
Escrow Agent hereby aclmowledges that there has been deposited to the credit of such
Escrow Fund the beginning cash balance and the Escrowed Securities as desctibed in
Section 2.01. The Escrowed Securities and all proceeds therefrom shall be the prope1iy
of the Escrow Fund, and shall be applied only in strict confonnity with the terms and
conditions of this Agreement. All of the Escrowed Securities, all proceeds therefrom and
all cash balances from time to time on deposit in the Escrow Fund are hereby irrevocably
pledged to the payment of the principal of, interest on and redemption premiums on the
Refunded Bonds, which payment shall be made by timely transfers to the Refunded
Bonds Transfer Agent in such amounts and at such times as are provided for in Section
3.02 hereof. When the final transfers have been made to the Refunded Bonds Transfer
Agent for the payment of the principal of, interest on and redemption premiums on the
Refunded Bonds in accordance with Exhibit B, any balance then remaining in the Escrow
Fund shall be transferred to the Issuer, and the Escrow Agent shall thereupon be
discharged from any further duties hereunder.

       Section 3.02. Payment of Principal and Interest. The Escrow Agent is hereby
irrevocably instrncted to transfer to the Refunded Bonds Transfer Agent from the cash
balances from time to time on deposit in the Escrow Fund, the amounts required to pay
the principal of, interest on and redemption premiums on the Refunded Bonds in the
amounts and at the times shown in Exhibit B attached hereto.

        Section 3.03. Sufficiency of Escrow Fund. The Issuer represents that the
successive receipts of the principal of and interest on the Escrowed Securities will assure
that the cash balance on deposit from time to time in the Escrow Fund will be at all times
sufficient to provide moneys for transfer to the Refunded Bonds Transfer Agent at the
times and in the amounts required to pay the interest on the Refunded Bonds as such
interest comes due, the principal of the Refunded Bonds as the Refunded Bonds are
redeemed prior to their maturity and the redemption premiums on the Refunded Bonds
called for redemption prior to maturity, all as more fully set forth in Exhibit B attached
hereto. If, for any reason, at any time, the cash balances on deposit or scheduled to be on
deposit in the Escrow Fund shall be insufficient to transfer the amounts required by the
Refunded Bonds Transfer Agent to make the payments set forth in Section 3.02 hereof,
the Issuer shall timely deposit in the Escrow Fund, from lawfully available funds,


                                           -4-
additional funds in the amounts required to make such payments. Notice of any such
insufficiency shall be given promptly as hereinafter provided, but the Escrow Agent shall
not in any manner be responsible for any insufficiency of funds in the Escrow Fund or the
Issuer's failure to make additional deposits thereto.

       Section 3.04. Escrow Fund as Trust Fund. The Escrow Agent shall hold at all
times the Escrow Fund, the Escrowed Securities and all other assets of the Escrow Fund,
as special trust funds, but need not segregate such funds and secmities except to the
extent required by law; and it shall hold and dispose of the assets of the Escrow Fund
only as set forth herein. The Escrowed Securities and other assets of the Escrow Fund
shall always be maintained by the Escrow Agent as escrow funds for the benefit of the
holders of the Refunded Bonds; and a special account thereof shall at all times be
maintained on the books of the Escrow Agent. The holders of the Refunded Bonds shall
be entitled to the same prefe1Ted claim and first lien upon the Escrowed Securities, the
proceeds thereof and all other assets of the Escrow Fund to which they were entitled as
holders of the Refunded Bonds. The amounts received by the Escrow Agent under this
Agreement shall not be considered as a banking deposit by the Issuer, and the Escrow
Agent shall have no right to title with respect thereto except in its capacity as Escrow
Agent under the terms of this Agreement. The amounts received by the Escrow Agent
under this Agreement shall not be subject to warrants, drafts or checks drawn by the
Issuer or by the Refunded Bonds Transfer Agent.

       Section 3.05. Security for Cash Balances. Cash balances from time to time on
deposit in the Escrow Fund shall, to the extent not insured by the Federal Deposit
Insurance Corporation or its successor, be continuously secured by a pledge of direct
obligations of, or obligations unconditionally guaranteed by, the United States of
America, having a market value at least equal to such cash balances.




                                          -5-
                                       ARTICLE IV

                        REDEMPTION OF REFUNDED BONDS

        Section 4.01. Duties of Escrow Agent in Connection with Redemption of
Refunded Bonds. The Escrow Agent shall take all steps required by the Refunded Bonds
Resolutions (copies of which have been furnished to the Escrow Agent) to call the
Refunded Bonds on December 1, 2001 The Escrow Agent is hereby authorized by the
Issuer to take all action on each of their behalf, respectively, legally required to assist in
effecting the call of the Refunded Bonds by the Refunded Bonds Transfer Agent on the
dates described in this section. Attached hereto as Exhibits D-1 and D-2 are fmms of the
respective Notices of Redemption for the Refunded Bonds to be mailed by the Escrow
Agent to the Owner or Owners at the registered addresses shown on the registration
books of the Refunded Bonds Transfer Agent.


                                        ARTICLEV

                           LIMITATION ON INVESTMENTS

       Section 5.01. General Prohibition. Moneys in the Escrow Fund and the proceeds
of the Escrowed Securities, shall not be invested or reinvested except as provided in this
Article V.

       Section 5.02. Investment or Reinvestment of Moneys. At the written direction of
the Issuer, the Escrow Agent shall invest or reinvest the moneys held in the Escrow Fund
provided that the Issuer delivers to the Escrow Agent the following:

               (a)   an opinion by an independent certified public accountant that
       after such investment or reinvestment, the principal amount of the securities
       in the Escrow Fund together with the interest thereon and other available
       moneys will be sufficient to pay, as the same become due in accordance
       with Exhibit B, the principal of, interest on and redemption premiums on
       the Refunded Bonds which have not been paid previously; and

               (b)    an opinion of nationally recognized municipal bond counsel,
       which may be rendered in reliance upon an opinion by an independent
       certified public accountant with respect to the yield of the Refunding Bonds
       and the yield of the securities in the Escrow Fund, to the effect that (1) such
       investment will not cause the Refunding Bonds or the Refunded Bonds to
       be "arbitrage bonds" within the meaning of the Code and the regulations
       thereunder in effect on the date of such investment, or othe1wise make the
       interest on the Refunding Bonds or the Refunded Bonds subject to Federal
       income taxation, and (2) such investment or reinvestment complies with the
       Constitution and laws of the State of Michigan and with all relevant

                                             -6-
       documents relating to the issuance of the Refunding Bonds and Refunded
       Bonds.

       Section 5.03. Transfer of Excess Amounts. If at any time through redemption or
cancellation of the Refunded Bonds or through deposit of additional moneys or
noncallable direct obligations of the United States of America or by reason of an
investment or reinvestment pursuant to Section 5.02 of this Agreement, or for any other
reason there exists or will exist excesses of cash or interest on or maturing principal of
the securities in the Escrow Fund hereunder for the Refunded Bonds, the Escrow Agent
may transfer such excess amounts to or on the order of the Issuer provided that the Issuer
delivers to the Escrow Agent the following:

               (a)   an opinion by an independent certified public accountant that
       after the transfer of such excess the principal amount of securities in the
       Escrow Fund, together with the interest thereon and other available
       moneys, will be sufficient to pay, as the same become due in accordance
       with Exhibit B, the principal of, interest on and redemption premiums on
       the Refunded Bonds which have not been paid previously; and

               (b)    an opinion of nationally recognized municipal bond counsel,
       which may be rendered in reliance upon an opinion by an independent
       certified public accountant with respect to the yield of the Refunding Bonds
       and the yield of the securities in the Escrow Fund, to the effect that (1) such
       transfer will not cause the Refunding Bonds or the Refunded Bonds to be
       "arbitrage bonds" within the meaning of the Code and the regulations
       thereunder in effect on the date of such transfer, or otherwise make the
       interest on the Refunding Bonds or the Refunded Bonds subject to Federal
       income taxation, and (2) such transfer complies with the Constitution and
       laws of the State of Michigan and with all relevant documents relating to
       the issuance of the Refunded Bonds and the Refunding Bonds.

       Section 5.04. Arbitrage. The Issuer hereby covenants and agrees that it shall
never request the Escrow Agent to exercise any power hereunder or permit any part of
the money in the Escrow Fund or proceeds from the sale of Escrowed Securities to be
used directly or indirectly to acquire any securities or obligations if the exercise of such
power or the acquisition of such securities or obligations would cause the Refunded
Bonds or the Refunding Bonds to be "arbitrage bonds" within the meaning of the Code
and the regulations thereunder.




                                            -7-
                                       ARTICLE VI

                               RECORDS AND REPORTS

       Section 6.01. Records. The Escrow Agent will keep books of record and account
in which complete and correct entries shall be made of all transactions relating to the
receipts, disbursements, allocations and application of the money and Escrowed
Secmities deposited in the Escrow Fund and all proceeds thereof, and such books shall be
available for inspection at reasonable hours and under reasonable conditions by the Issuer
and the holders of the Refunded Bonds.

        Section 6.02. Reports. For the period beginning on the date hereof and ending on
December 31, 2001, and for each twelve (12) month pe1iod thereafter, if any, while this
Agreement remains in effect, the Escrow Agent shall prepare and send to the Issuer
within thirty (30) days following the end of such period a w1itten report summarizing all
transactions relating to the Escrow Fund during such period, including, without
limitation, credits to the Escrow Fund as a result of interest payments on or maturities of
the Escrowed Securities and transfers from the Escrow Fund to the Refunded Bonds
Transfer Agent for payments on the Refunded Bonds or otherwise, together with a
detailed statement of all Escrowed Secmities, and the cash balance on deposit in the
Escrow Fund as of the end of such period.


                                       ARTICLE VII

                        CONCERNING THE ESCROW AGENT

       Section 7.01. Representations. The Escrow Agent hereby represents that it has all
necessary power and authority to enter into this Agreement and undertake the obligations
and responsibilities imposed upon it herein and that it will carry out all of its obligations
hereunder.

       Section 7 .02. Limitation on Liability. The liability of the Escrow Agent to
transfer funds to the Refunded Bonds Transfer Agent for the payment of the principal of,
interest on and redemption premiums on the Refunded Bonds shall be limited to the
proceeds of the Escrowed Securities and the cash balances from time to time on deposit
in the Escrow Fund. Notwithstanding any provision contained herein to the contrary, the
Escrow Agent shall not have any liability whatsoever for the insufficiency of funds from
time to time in the Escrow Fund or any failure of the obligors of the Escrowed Securities
to make timely payment thereon, except for the obligation to notify the Issuer promptly
of any such occurrence. The recitals herein and in the proceedings authorizing the
Refunding Bonds shall be taken as the statements of the Issuer and shall not be
considered as made by, or imposing any obligation or liability upon, the Escrow Agent.
The Escrow Agent is not a party to the Resolutions and is not responsible for nor bound


                                            -8-
by any of the provisions thereof. In its capacity as Escrow Agent it is agreed that the
Escrow Agent need look only to the terms and provisions of this Agreement.

        The Escrow Agent makes no representations as to the value, conditions or
sufficiency of the Escrow Fund, or any part thereof, or as to the title of the Issuer thereto,
or as to the security afforded thereby or hereby, and the Escrow Agent shall not incur any
liability or responsibility in respect to any of such matters.

       It is the intention of the parties hereto that the Escrow Agent shall never be
required to use or advance its own funds or otherwise incur personal financial liability in
the performance of any of its duties or the exercise of any of its rights and powers
hereunder.

        The Escrow Agent shall not be liable for any action taken or neglected to be taken
by it in good faith in any exercise of reasonable care and believed by it to be within the
discretion or power conferred upon it by this Agreement, nor shall the Escrow Agent be
responsible for the consequences of any enor of judgment; and the Escrow Agent shall
not be answerable except for its own action, neglect or default, nor for any loss unless the
same shall have been through its gross negligence or want of good faith.

       Unless it is specifically otherwise provided herein, the Escrow Agent has no duty
to determine or inquire into the happening or occurrence of any event or contingency or
the performance or failure of performance of the Issuer with respect to arrangements or
contracts with others, with the Escrow Agent's sole duty hereunder being to safeguard the
Escrow Fund, to dispose of and deliver the same in accordance with this Agreement and
to take all necessary action to effect the call of the Refunded Bonds for redemption as
provided in Article IV of this Agreement. If, however, the Escrow Agent is called upon
by the terms of this Agreement to determine the occunence of any event or contingency,
the Escrow Agent shall be obligated, in making such determination, only to exercise
reasonable care and diligence, and in event of error in making such determination the
Escrow Agent shall be liable only for its own misconduct or its negligence. In
determining the occurrence of any such event or contingency the Escrow Agent may
request from the Issuer or any other person such reasonable additional evidence as the
Escrow Agent in its discretion may deem necessary to determine any fact relating to the
occmTence of such event or contingency, and in this connection may make inquiries of,
and consult with, among others, the Issuer at any time.

       Section 7.03. Compensation. The Issuer has caused to be paid to the Escrow
Agent, as a fee for performing the services hereunder and for all expenses incuned or to
be incurred by the Escrow Agent in the administration of this Agreement, the sum of
___________ Dollars ($_ _~, the receipt and sufficiency of which are
hereby acknowledged by the Escrow Agent. In the event that the Escrow Agent is
requested to perform any extraordinary services hereunder, the Issuer hereby agrees to
pay reasonable fees to the Escrow Agent for such extraordinary services, and the Escrow


                                             -9-
Agent hereby agrees to look only to the Issuer for the payment of such fees and
reimbursement of such expenses. The Escrow Agent hereby agrees that in no event shall
it ever assert any claim or lien against the Escrow Fund for any fees for its services,
whether regular or extraordinary, as Escrow Agent or in any other capacity, or for
reimbursement for any of its expenses.

       Section 7.04. Successor Escrow Agents. If at any time the Escrow Agent or its
legal successor or successors should become unable, through operation of law or
otherwise, to act as Escrow Agent hereunder, or if its property and affairs shall be taken
under the control of any state or federal court or administrative body because of
insolvency or bankruptcy or for any other reason, a vacancy shall forthwith exist in the
office of Escrow Agent hereunder. In such event the Issuer, by appropriate resolutions,
shall promptly appoint an Escrow Agent to fill such vacancy. If no successor Escrow
Agent shall have been appointed by the Issuer within 60 days, a successor may be
appointed by the holders of a majority in principal amount of the Refunded Bonds then
outstanding by an instrument or instruments in writing filed with the Issuer, signed by
such holders or by their duly authorized attorneys-in-fact. If, in a proper case, no
appointment of a successor Escrow Agent shall be made pursuant to the foregoing
provisions of this section within three months after a vacancy shall have occuned, the
holder of any Refunded Bond may apply to any court of competent jurisdiction to appoint
a successor Escrow Agent. Such court may thereupon, after such notice, if any, as it may
deem proper, prescribe and appoint a successor Escrow Agent.

       Any successor Escrow Agent shall be a corporation or association organized and
doing business under the laws of the United States or the State of Michigan, authorized
under such laws to exercise corporate trust powers, having its principal office and place
of business in the State of Michigan, having a combined capital and surplus of at least
$50,000,000 and subject to the supervision or examination by federal or state authority.

       Any successor Escrow Agent shall execute, acknowledge and deliver to the Issuer
and the Escrow Agent an instrnment accepting such appointment hereunder, and the
Escrow Agent shall immediately execute and deliver an instrument transfemng to such
successor Escrow Agent, subject to the terms of this Agreement, all the rights, powers
and ttusts of the Escrow Agent hereunder. Upon the request of any such successor
Escrow Agent, the Issuer shall execute any and all instruments in writing for more fully
and certainly vesting in and confirming to such successor Escrow Agent all such tights,
powers and duties. The Escrow Agent shall pay over to its successor Escrow Agent a
proportional part of the Escrow Agent's fee hereunder.




                                          -10-
                                      ARTICLE VIII

                                    MISCELLANEOUS

       Section 8.01. Notice. Any notice, authorization, request, or demand required or
permitted to be given hereunder shall be in writing and shall be deemed to have been duly
given when mailed by registered or certified mail, postage prepaid addressed as follows:


              To the Issuer:
              City of Muskegon
              933 Terrace Street
              Muskegon, Michigan 49443
              Attn: City Finance Director

              To the Escrow Agent:
              Fifth Third Bank, Michigan
              Corporate Trust Department
              4420 44 th Street, Suite A
              Kentwood, Michigan 49512


       The United States Post Office registered or certified mail receipt showing delivery
of the aforesaid shall be conclusive evidence of the date and fact of delivery. Any party
hereto may change the address to which notices are to be delivered by giving to the other
pmiy not less than ten (10) days prior notice thereof.

       Section 8.02. Termination of Responsibilities. Upon the taking of all the actions
as described herein by the Escrow Agent, the Escrow Agent shall have no further
obligations or responsibilities hereunder to the Issuer, the holders of the Refunded Bonds
or any other person or persons in connection with this Agreement.

       Section 8.03. Binding Agreement. This Agreement shall be binding upon the
Issuer and the Escrow Agent and their respective successors and legal representatives,
and shall inure solely to the benefit of the holders of the Refunded Bonds, the Issuer, the
Escrow Agent and their respective successors and legal representatives.

        Section 8.04. Severability. In case any one or more of the provisions contained in
this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provisions
of this Agreement, but this Agreement shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein.

       Section 8.05. Michigan Law Governs. This Agreement shall be governed
exclusively by the provisions hereof and by the applicable laws of the State of Michigan.

                                            -11-
      Section 8.06. Time of the Essence. Time shall be of the essence in the
performance of obligations from time to time imposed upon the Escrow Agent by this
Agreement.

       Section 8.07. Execution in Counterparts. This Agreement may be executed in
several counterparts, each of which shall be an original and all of which shall constitute
but one and the same instrument.

       Section 8.08. This Agreement shall not be terminated nor amended in any manner
that would adversely affect the rights of the holders of the Refunded Bonds.




                                          -12-
Executed as of the date first written above.


                            CITY OF MUSKEGON




                            By:-----------------
                              Timothy Paul
                              Its Finance Director



                            FIFTH THIRD BANK, MICHIGAN

                             as Escrow Agent




                            By: - - - - - - - - - - - - - - - - -
                                 Its:




                                     -13-
                                   EXHIBIT A

  DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF MUSKEGON
 1989 DOWNTOWN DEVELOPMENT LIMITED TAX INCREMENT INCREMENT
                          BONDS

                               Dated August 1, 1990


PRINCIPAL MATURITY                 PRINCIPAL                    INTEREST
  DUE SEPTEMBER 1                   AMOUNT                        RATE

          2018                     $2,700,000                      9.75%




       The Bonds maturing in the years 2002 to 2008, inclusive, are subject to
redemption on December 1, 2001 at par plus accrued interest plus a premium of 1% of
the principal amount redeemed.




                                       A-1
   DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF MUSKEGON
   DOWNTOWN DEVELOPMENT LIMITED OBLIGATION TAX INCREMENT
                          BONDS

                              Dated August 30, 1989


 PRINCIPAL MATURITY          PRINCIPAL AMOUNT                  INTEREST
     DUE JUNE 1                                                  RATE

          2010                      1,685,000                     8.45




       The Bonds are subject to redemption on December 1, 2001 at par plus accrued
interest plus a premium of 2% of the principal amount redeemed.




                                       A-2
              EXHIBIT B

ESCROW FUND REQUIREMENTS FOR THE BONDS

      DEBT SERVICE REQUIREMENTS




                 B-1
EXHIBIT C




  C-1
                                       EXHIBITD

               NOTICE OF REDEMPTION FOR THE SERIES A BONDS

      NOTICE IS HEREBY GIVEN that the City of Muskegon in behalf of the
Downtown Development Authority of the City of Muskegon, County of Muskegon,
Michigan, hereby calls for redemption on December 1, 2001, the Authority's 1989
Downtown Development Limited Obligation Tax Increment Bonds, dated August 30,
1990, maturing June 10, 2018 and aggregating the plincipal sum of Two Million Seven
Hundred Thousand Dollars ($2,700,000), maturing as follows and with the CUSIP
numbers shown as follows:

 PRINCIPAL DUE            PRINCIPAL              INTEREST                CUSIP
      JUNE 1               AMOUNT                  RATE                 NUMBER

        2018              $2,700,000                9.75%




      Said bonds are called for redemption at par and accrned interest plus a premium of
1% of the principal amount redeemed.

       Said bonds should be smrendered for redemption at the principal corporate trnst
office of Fifth Third Bank, Michigan, Grand Rapids, Michigan for payment on December
1, 2001, after which date all interest on said bonds shall cease to accrue, whether said
bonds are presented for payment or not.

       Bonds may be surrendered for payment as indicated below. The method of
delivery is at the option of the holder, but ifby mail, registered mail is suggested.

                           CITY OF MUSKEGON


                          By: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~
                                         Its: City Clerk




                                          D-1
                     NOTICE OF REDEMPTION FOR THE SERIES D BONDS

      NOTICE IS HEREBY GIVEN that the City of Muskegon in behalf of the
Downtown Development Authority of the City of Muskegon, County of Muskegon,
Michigan, hereby calls for redemption on December 1, 2001, the Authority's 1989
Downtown Development Limited Obligation Tax Increment Bonds, dated August 30,
1990, maturing in the year 2010, and aggregating the principal sum of One Million Six
Hundred Eighty Five Thousand Dollars ($1,685,000), maturing as follows and with the
CUSIP numbers shown as follows:

 PRINCIPAL DUE                    PRINCIPAL          INTEREST            CUSIP
     JUNE 1                        AMOUNT              RATE             NUMBER

            2010                  $1,685,000           8.45




      Said bonds are called for redemption at par and accrned interest plus a premium of
2% of the principal amount redeemed.

       Said bonds should be surrendered for redemption at the principal corporate trnst
office of Fifth Third Bank, Michigan, Grand Rapids, Michigan for payment on December
1, 2001, after which date all interest on said bonds shall cease to accrue, whether said
bonds are presented for payment or not.

       Bonds may be smTendered for payment as indicated below. The method of
delivery is at the option of the holder, but if by mail, registered mail is suggested.

                                  CITY OF MUSKEGON


                                  By: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~
                                                 Its: City Clerk

DE LIB :2245621.1 \063684-00024




                                               D-2
                                   MEMORANDUM

To:            Mayor Nielsen and City Commissioners
From:          Assistant City Manager
Date:          July 18,2001
Re:            Accept the Resignation of Vice Mayor Scott Sieradzki from the City
               Commission

SUMMARY OF REQUEST

To accept the resignation of Vice Mayor Scott Sieradzki from the City Commission. On
Friday, June 13, at I :00 p.m., Vice Mayor Sieradzki held a Press Conference to announce
his resignation from the Muskegon City Commission, the Mayoral Race, and all other
City Commission appointed Boards, Commissions and Committees. A copy of the Press
Release was provided to the City Clerk's Office and entered as official notification of his
resignation.

FINANCIAL IMP ACT:

None.

BUDGET ACTION REQUIRED:

None.

STAFF RECOMMENDATION:

Per the advice of the City Attorney, Tom Johnson, it is recommended that the
Commission accept Vice Mayor Sieradzki's resignation.
                                  MEMORANDUM

TO:           Mayor Nielsen and City Commissioners
FROM:         Assistant City Manager
DATE:         July 18, 2001
RE:           Approve Process for Appointment to the Vacant Seat on the City
              Commission


SUMMARY OF REQUEST

To request approval of the process for appointment to the vacant seat on the City
Commission. The proposed process is consistent with the one approved and
implemented by the City Commission when there was a vacancy on the City Commission
in 1997.

FINANCIAL IMPACT

None.

BUDGET ACTION REQUIRED

None

STAFF RECOMMENDATION

Per consultation with the City Attorney, Tom Johnson, and in keeping with past practice,
staff recommends approval of the proposed process.
                                  MEMORANDUM

TO:           Muskegon City Commission
FROM:         Assistant City Manager
DATE:         July 18, 200 I
RE:           Vote to elect a Vice-Mayor for the City Commission

SUMMARY OF REQUEST

Vote to elect a Vice-Mayor for the City Commission. This vacancy is as a result of the
resignation of Vice Mayor Sieradzki and acceptance of that resignation by the City
Commission.

FINANCIAL IMP ACT

None

BUDGET ACTION REQUIRED

None

RECOMMENDATION

Staff recommends that the Commission consider a vote to elect a Vice-Mayor for the City
Commission.




MEMORANDUM
Date:     July 16, 2001
To:       Honorable Mayor and City Commission
From:     Community Relations Committee
RE:       Appointments to Various Committees/Boards



SUMMARY OF REQUEST: To eliminate five vacant at-large positions
on the Image Committee.

Community Relations Committee voted on July 2, 2001 to recommend
the elimination of the five positions.



FINANCIAL IMPACT:

BUDGET ACTION REQUIRED:

STAFF RECOMMENDATION:.
                                             IMAGE COMMITTEE


PURPOSE

To create a positive City image and to promote the City of Muskegon using methods including, but not limited
to:

1.     Identifying positive changes, or recognizing the contributions of individuals, groups, and businesses
       within this community.
2.     Promote or institute positive changes or contributions to the image of the City of Muskegon as a whole.

MECHANICS

ENABLING LAW:          City Commission Resolution - Oath not required.
APPOINTED BY:          Mayor/City Commission
MEETING:               Third Monday of each month@ 4:00 P.M. -
                       City Hall - 2nd Floor Conference Room
TERM:                  4 Years

COMPOSITION

                       DESCRIPTION

                       14 Residents of the City of Muskegon from throughout the City which would serve to
                       represent a cross-section of the community
B                       1 City Commissioner representing the Community Relations Committee
C                       1 City Horticulturist (non-voling member)


CURRENT MEMBERS

(Staff Liaison - Ric Scott)

TYPE          NAME                       ADDRESS                      ZIP     PHONE             TERM EXP.

A             Marion Olejarczyk          P.O. Box 1638                3                         1/31/04
A             Melissa Carden             1840 Kinsey                  1       755-7602          1/31/04
A                                                                                               1/31/02
A                                                                                               1/31/02
A                                                                                               1/31/04
A                                                                                               1/31/04
A             Norma DeYoung              511 E. Isabella              2       726-2979          1/31/05
A             Joan Gawron                1978 Howden                  2       726-3348          1/31/03
A             Willie German, Jr.         868 Wood St.                 2       728-4263          1/31/05
A             Dardinella Hippchen        325 Houston                  1       726-4890          1/31/05
A             Martha Colburn             1861 Glen Ave.               1       755-3684          1/31/05
A             Virgie Jackson             1445 Dudley Ave.             2       777-1146          1/31/03
A                                                                                               1/31/03
A             Donna Baker*               567 Leonard Ave.             2       722-6331          1/31/03
B             Clara Shepherd             408 Monroe Ave.              1       725-8130
                                                 C




                                                                                                             22
(* - Chairperson)                                 - 22 -                                 2001-C()MREI,BOOK
                                                                       --------'---------  -'~ Ii



                                       Qlity      nf

                                UlllttJUtt
                                   .&tatt nf 11 ir~igan
                WHEREAS, the Community Relations Committee is recommending
                         the re-establishment of an Image Committee; and,
                WHEREAS, the City Commission does support and endorse this
                         concept and wishes to enlist the assistance of
                         City residents in this effort; and,
                WHEREAS, the specifics of said committee are outlined on
                         the attached,
                NOW,. THEREFORE, BE IT RESOLVED, that the City Commission
                          es tab 1i shes an . Image Committee as outlined and
                          thanks those citizens willing to serve and work
                          for the betterment of the Community.
                                            IN WITNESS WHEREOF, we hereunto
                                            set our hands and cause the Sea 1
                                            of the City of Muskegon to be
                                            affixed this 19th day of April,
                                            1988.·


             Norman F, Kruse, Mayor               Norman   L.   Cunningham, Commissioner


                                      1ce-Mayor   James W. Pruim, Commissioner




~-
k
     .
         .
                                                                                 -I}
r,.PURPOSE
     To create a positive City image and to promote the City of Muskegon using
     methods including, but not limited to:
     1. Iden ti fyi ng positive changes, or recogm zing the contributions of
         individuals, groups and businesses within this community.
     2. Developing community achievement awards programs.
     3. Exploring positive marketing strategies.
     4. Exploring a change in the City Logo/City Motto.
     5. Serving as liaison with County Pride Project.
     6. Proposing specific promotional and fund raising projects.



     MECHANICS
    ENABLING LAW: City Commission Resolution
    APPOINTED BY: Mayor/City Commission
    MEETING:      Monthly/Time to be set in January of each year
    TERM:         4 years


  /COMPOSITION
/   _!_YPE   DESCRIPTION
      A      1 Holding position involving promotions, public relations or
               marketing
      B      2 City Commissioners
      C      2 Previously involved in Community activities
      D      6 Live and/or Work in the City of Muskegon



     CURRENT MEMBERS
    TYPE:   NAME:             ADDRESS:                  PHONE:     TERM EXP.
            Kim Boone                                              12/31/91
            Thomas Anderson                                        12/31/91
                                                                   12/31/91
                                                                   12/31/91
                                                                   12/31/91
                                                                   12/31/89
                                                                   12/31/89
                                                                   12/31/89
                                                                   12/31/89
                                                                   12/31/89
                                                                   12/31/89
Date: July 24, 2001
To:       Honorable Mayor and City Commissioners

From:       Finance Director

RE:       Second Quarter 2001 Budget Reforecast



SUMMARY OF REQUEST: At this time staff is transmitting the Second Quarter 2001
Budget Reforecast which outlines proposed changes to the original budget that have come about as
result of changes in policy priorities, labor contracts, updated financial information, or other factors. For
the next meeting, an action item will be placed on the agenda for adoption of the proposed second
quarter budget reforecast together with any additional changes deemed necessary by Commissioners.

FINANCIAL IMPACT:                   The second quarter 2001 Budget Reforecast reflects relatively minor
changes to General fund revenue and expenditure estimates. We are watching the income tax
numbers very closely but at this time have not adjusted the original budget figure of $7.0 million.
Second quarter withholdings (due at the end of July) will give a better indication as to whether the
income tax needs to be revised downward because of economic conditions. Significant changes to
other funds include:
• Allocation of $300,000 of LDFA pass-thru funds to the Public Improvement fund to help finance the
    Seaway Industrial Park project. Property acquisition costs for this project are higher than originally
    anticipated and it is necessary for the City to complete acquisition before federal grant funds will be
    released.
• Inclusion of the recently approved large meter replacement program in the water and sewer funds.
• Cost estimates for other several large capital projects have been adjusted due to project delays,
    bid differentials or other factors as shown on pages 28-30.

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 amendments.

COMMITTEE RECOMMENDATION:                                There is no committee recommendation at this
time.




9/18/97
                    CITY OF MUSKEGON
                      GENERAL FUND


                   HISTORICAL SUMMARY


                     Revenues &     Expenditures &   Fund Balance
      Year           Transfers In Transfers Out       at Year-End
      1991   $       10,389,328 $   10,584,427 $       1,523,740
      1992           11,297,076     11,282,444         1,538,372
      1993           13,990,266     13,231,208         2,297,430
      1994           15,301,973     15,572,689         2,026,714
      1995           16,633,179     16,337,586         2,322,307
      1996           17,666,214     18,018,159         1,970,362
      1997           20,437,646     20,358,321         2,049,687
      1998           21,643,855     21,634,467         2,059,075
      1999           21,451,681     22,011,881         1,498,875
      2000           23,685,516     22,232,657         2,951,734




       Fiscal 2001 Budget Summary - Second Quarter Reforecast

FUND BALANCE AT START OF YEAR                                       $   2 951 734

MEANS OF FINANCING:
          Taxes                                       13,142,817        56%
             Licenses and Permits                        979,300        4%
             Federal Grants                              456,005        2%
             State Grants                                               0%
             State Shared Revenue                      5,441,651        23%
             Other Charges                             1,916,957        8%
             Interest & Rentals                          525,843        2%
             Fines and Fees                              296,200        1%
             Other Revenue                               331,650        1%
             Other Financing Sources                     180,000        1.%
                                                      23,270,423        100%




ESTIMATED REQUIREMENTS·
             Customer Value Added Activities          16,605,554        71%
             Business Value Added Activities           3,937,276        17%
             Fixed Budget Items                        2 701 098        12'&
                                                      23,243,928        100%


ESTIMATED FUND BALANCE AT END OF YEAR                               $   2 978 229

       OPERATING SURPLUS (DEFICIT)                                  $     26,495




                                       I
        City of Muskegon
        Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
        General Fund Revenue Summary By Source


                                                                                                                                                            % Change
                                                                                       Original Budget   Actual Thru June Revised Estimate Change From        From
                                                     Actual 1999        Actual 2000    Estimate 2001           2001             2001       2001 Original     Original                Comments
        Available Fund Balance - BOY             $      2,059,875   $      2,059,875   $    2,280,546    $     2,951,735   $    2,951,735   $   671,189

        Taxes
         City income tax                         $      6,425,149   $      7,078,571   $    7,000,000    $     3,717,269   $    7,000,000   $                      0% HOLD ESTIMATE FOR NOW. MONJTORCLOSELY
         Property taxes - general                       3,601,411          3,686,780        3,967,591                           3,967,591                          0%
         Property taxes - sanitation                    1,489,818          1,630,491        1,680,226                           1,680,226                          0%
         Industrial facilities taxes                      353,151            362,676          405,000                            405,000                           0%
         Payments in lieu of taxes                         71,608             69,148           80,000                              80,000                          0%
         Delinquent chargeback collected                   19,886              3,769           10,000              6,143           10,000                          0%
                                                 $     11,961,023   $     12,831,435   $   13,142,817    $     3,723,412   $   13,142,817   $                      0%

        Licenses and pennits
         Business licenses                       $         25,008   $         32,363   $       45,000    $       21,381    $       37,000   $     (8,000)        -18% LOWER BASED ON 2000 EXPERIENCE
         Liquor licenses                                   28,458             35,511           35,000             7,646            35,000                          0% BULK IS RECEIVED IN OCTOBER
         Cable lV franchise fees                          338,325            327,004          250,000                10           250,000                          0%
         Housing licenses                                  66,147             62,965          115,000            34,510           115,000                          0%
1;'-1    Burial permits                                    94,955            104,160          100,000            43,823           100,000                          0%
         Building permits                                 285,865            368,333          250,000           107,862           250,000                          0%
         Electrical permits                                77,375             87,692           75,000            55,358            75,000                          0%
         Plumbing permits                                  38,448             45,147           45,000            19,740            45,000                          0%
         Heating permits                                   57,326             62,847           70,000            23,250            70,000                          0%
         Franchise fees                                                        1,100            2,000                               1,000        (1,000)         -50%
         Police gun registration                            3,870              1,879            4,000             1,185             1,300        (2,700}         -68% NEW LAW MOVES RESPONSIBILITY TO COUNTY
                                                 $      1,015,777   $      1,129,001   $      991,000    $      314,765    $     _979,300   $   (11,700)          -1%

        Federal grants
         Federal operational grant               $        423,208   $        522,111   $      456,005    $       62,075    $     456,005    $                      0%
                                                 $        423,208   $        522,111   $      456,005    $       62,075    $     456,005    $                      0%

        state grants
         State operational grant                 $                  $                  $                 $                 $                $                     N/A
                                                 $                  $                  $                 $                 $                $                     N/A

        state shared revenue
         State sales tax                         $      4,863,361   $      5,486,712   $    5,441,651    $     1,688,632   $    5,441,651   $                      0% HOLD ESTIMATE FOR NOW. MONITORCLOSELY
                                                 $      4,863,361   $      5,486,712   $    5,441,651    $     1,688,632   $    5,441,651   $                      0%
         City of Muskegon
         Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
         General Fund Revenue Summary By Source


                                                                                                                                                                     % Change
                                                                                              Original Budget   Actual Thru June Revised Estimate Change From          From
                                                           Actual 1999         Actual 2000    Estimate 2001           2001             2001       2001 Original       Original                   Comments
         Other charges for sales and services
          Tax administration fees                      $        213,714   $         224,399   $      225,000    $           26    $        225,000      $                  0%
          Utility administration fees                           172,998             166,032          175,215            87,608             175,215                         0%
          Reimbursement for elections                            10,459              30,568           12,000               443              12,000                         0%
          Indirect cost reimbursement                           840,034             925,008          908,242           454,128             908,242                         0%
          Site-plan review fee                                                        1,800            4,000               568               4,000                         0%
          Sale of cemetery lots                                  12,923              24,269           15,000            10,313              15,000                         0%
          Sale of columbarium niches                                                  1,325            3,000                                 3,000                         0%
          Sate of Harbortown dockominiums                        80,500                                                                                                    NIA
          Police miscellaneous                                   68,663              67,711           65,000            19,194              65,000                         0%
          Police impound fees                                                        38,576            6,000            26,356              45,000          39,000       650%    MORE ACTIVITY THAN ANTICIPATED
          Landlords alert                                                                                                1,480               1,500           1,500         NIA
          Fire protection-state property                         75,055              83,093           80,000                                80,000                         0%
          Zoning fees                                            12,305               9,325            7,500              6,845             10,000           2,500        33%    MORE ACTIVITY THAN ANTICIPATED
          Clerk fees                                                604               2,586            5,000              1,227              5,000                         0%
I_,__,    IFT application fees
          Treasurer fees
                                                                  6,369               9,917            5,000                                 5,000                         0%
                                                                  4,374              26,934            2,500            11,133              22,000          19,500       780%    MORE ACTIVITY THAN ANTICIPATED
          False alarm fees                                       17,727              16,439           10,000               815              10,000                         0%    BULK IS COLLECTED AT YEAR END
          Miscellaneous cemetery income                          25,599              21,224           23,000             9,254              23,000                         0%
          Housing commission reimbursement                       16,750              23,503                                                                                NIA
          Senior transit program fees                             8,521               8,261            8,000             3,816               8,000                         0%
          Fire miscellaneous                                      9,311              25,798           40,000             1,890              40,000                         0%    BULK IS COLLECTED AT YEAR ENO
          Sanitation stickers                                    36,519              43,280           35,000            19,729              35,000                         0%
          Lot cleanup fees                                      121,148              96,998           50,000            53,281              70,000          20,000        40%
          Reimbursements for mowings and demolitions             62,525             107,400           20,000            23,264              30,000          10,000        50%
          Recreation program fees                               115,817             138,866          125,000            91,631             125,000                         0%
                                                       $      1,911,915   $       2,093,312   $    1,824,457    $      823,001    $      1,916,957      $   92,500         5%

         Interest and rental income
          Interest                                     $        314,639 $           411,444   $      325,000    $      202,738    $         350,000     $   25,000          8% NO COMPENSATING BALANCES
          Flea market                                            25,418              25,269           27,000             8,756               27,000                         0%
          Farmers market                                         20,905              22,040           20,000             6,042               20,000                         0%
          City right of way rental                                6,400               6,400            4,400             4,400                4,400                         0%
          Parking ramp rentals                                   27,266              46,819           40,000            19,641               40,000                         0%
          McGraft park rentals                                   43,270              55,518           54,443             5,740               54,443                         0%
          Other park rentals                                     27,851              31,918           30,000            17,278               30,000                         0%
                                                       $     -- 465,749 _:j,        599,408   $      500,843    $      264,595    $   __ ______gS,?43   $   25,000          5%
     City of Muskegon
     Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
     General Fund Revenue Summary By Source


                                                                                                                                                                  % Change
                                                                                             Original Budget   Actual Thru June Revised Estimate Change From        From
                                                           Actual 1999        Actual 2000    Estimate 2001           2001             2001       2001 Original     Original                 Comments
     Fines and fees
      Income tax - penalty and interest                $         45,901 $           70,290   $       50,000    $       45,134    $      50,000    $    65,000         130% CONTINUED AGGRESSIVE ENFORCEMENT
      Late fees on current taxes                                  7,192             40,167           15,000               (36)          15,000                          0%
      Interest on late invoices                                  17,519                328            1,200               352            1,200                          0%
      Civil infraction fines                                       {983)                              3,000                                             {3,000)      -100%
      Property transfer affidavit fines                                              6,400            5,000             4,200            5,000                          0%
      Parking fines                                              82,772             41,829           65,000            51,500           75,000         10,000          15% CONTINUED AGGRESSIVE ENFORCEMENT
      Court fines                                               124,968            179,662          150,000            76,985          150,000                          0%
                                                       $        277,369   $        338,676   $      289,200    $      178,135    $     296,200    $     7,000           2%

     other revenue
      Sale of land and assets                          $          2,650   $            350   $        3,000    $                 $       3,000    $                     0%
      Police sale and auction proceeds                            3,991              3,214            6,000             2,206            4,000         (2,000)        -33%
      CDBG program reimbursements                               254,279            391,573          315,000           126,428          285,000        (30,000)        -10%
      Contributions                                              64,165             63,343           11,000             3,215           11,000                          0%
      Muskegon County Community Foundation                                           5,650            4,650                              4,650                          0%
"-    Miscellaneous reimbursements                                                                    3,000                              4,000          1,000          33% SALE OF CIVIL SERV FIRE STUDY GUIDES
      Miscellaneous and sundry                                   30,786             13,095           20,000             4,615           20,000                          0%
                                                       $        355,871   $        477,225   $      362,650    $      136,464    $     331,650    $   (31,000)         -9%

     Other financing sources
      Operating transfers in
       Cemetery Perpetual Care                                   60,551             63,858           62,600    $       35,216           62,600                          0%
       Criminal Forfeitures Fund                                 83,000             75,000           75,000                             75,000                          0%
        Police Training Fund                                     18,621             36,286           10,000                             10,000                          0%
        DDA for Administration                                                      30,000           30,000                             30,000                          0%
       Reese P!ayfield Fund                                       3,967              1,827            1,800                              1,800                          0%
        RLF for Administration                                   10,000                                                                                                 N/A
        Hackley Park Improvement Fund                             1,269                 51                                                                              N/A
       Hackley Park Memorial Fund                                                      614              600                                600                          0%
                                                       $        177,408   $        207,636   $      180,000    $       35,216    $     180,000    $                     0%

     Total _g_eneral fund revenues and other sources   $     21,451,681   $     23,685,516   $   23,188,623    $    7,226,295    $   23,270,423   $    81,800           0%
                 City of Muskegon
                 Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
                 General Fund Expenditure Summary By Function

                                                                                                                                          Actual As                                         % Change
                                                                                                       Original Budget Actual Thru June     % of         Revised          Change From         From
                                                                  Actual 1999           Actual 2000    Estimate 2001         2001          Revised    Estimate 2001       2001 Original      Original                  Comments
                 I. Customer Value Added Activities

         40301   Police Department
         5100      Salaries & Benefits                        $      5,371,889      $      5,421,663   $   5,585,525   $    2,724,814          49% $      5,585,525   $                            0%
         5200      Operating Supplies                                  127,053               148,156         123,000           59,960          49%          123,000                                0%
         5300      Contractual Services                                725,960               940,086         850,000          442,320          52%          850,000                                0%
         5400      Other Expenses                                       47,181                53,924          30,700           19,588          64%           30,700                                0%
         5700      Capital Outlays                                      88,075               171,358          55,000           28,247          51%           55,000                                0%
         5900      Other Financing Uses                                                                                                         NIA                                                N/A
                                                              $      6,360,158      $      6,735,187   $   6,644,225   $    3,274,929          49% $      6,644,225   $                            0%
         40333   Police Narcotics Unit
         5100      Salaries & Benefits                        $        351,830      $       403,645    $     471,552   $      152,865          32% $       471,552    $                            0%
         5200      Operating Supplies                                    7,914               11,381            5,150            2,424          47%           5,150                                 0%
         5300      Contractual Services                                 14,831               13,899           10,700            3,638          34%          10,700                                 0%
         5400      Other Expenses                                           39                  318                                             N/A                                                N/A
         5700      Capital Outlays                                      22,171                36,195          20,941                            0%           20,941                                0%
         5900      Other Financing Uses                                                                                                         N/A                                                NIA
                                                              $        396,785      $        465,438   $     508,343   $      158,927          31% $        508,343   $                            0%
                                                              $      6,756,943      $      7,200,625   $   7,152,568   $    3,433,856          48% $      7,152,568   $                            0%

         50336   Fire Department
<,.._.   5100       Salaries & Benefits                       $      2,673,009      $      2,708,005   $   2,738,873   $    1,385,414          50% $      2,768,873   $          30,000            1% OT HIGHER THAN ANTICIAPTED DUE TO SEVERAL
         5200       Operating Supplies                                 113,467                97,561          98,000           32,348          33%           98,000                                0% LONG-TERM INJURIES
         5300       Contractual Services                               156,160               133,101         150,000           90,191          60%          150,000                                0%
         5400       other Expenses                                      20,291                10,051          20,000            9,522          48%           20,000                                0%
         5700       Capita! Ou1lays                                    153,098                38,636          25,000           26,462          88%           30,000               5,000           20%
         5900       Other Financing Uses                                                                                                        N/A                                                N/A
                                                              $      3,116,025      $      2,987,354   $   3,031,873   $    1,543,937          50% $      3,066,873   $          35,000            1%

         50387   Fire Safety Inspections
         5100       Salaries & Benefits                       $        314,896      $       623,329    $     658,792   $      289,487          44% $       658,792    $                            0%
         5200       Operating Supplies                                   8,585               17,135           31,050            8,880          34%          26,050                (5,000)        -16% MOVE TO 5700
         5300       Contractual Services                                96,770              247,418          226,759           76,145          34%         226,759                                 0%
         5400       Other Expenses                                       4,877               11,070           15,000            4,061          27%          15,000                                 0%
         5700       Capital Ou11ays                                     16,029                9,838            5,600            5,255          50%          10,600                5,000           89% ADDTL COMPUTER EQUIPMENT REQ'D
         5900       Other Financing Uses                                                                                                        NIA                                                N/A
                                                              $        441,157      $        908,790   $     937,201   $      383,828          41% $        937,201   $                            0%
                                                              $      3,557,182      $      3,896,144   $   3,969,074   $    1,927,765          48% $      4,004,074   $          35,000            1%

                 Sanitation
         60523    General Sanitation
         5100      Salaries & Benefits                        $         60,002      $         66,335   $      62,422   $       32,550          52% $         62,422   $                            0%
         5200      Operating Supplies                                     401                   690            1,400              178          13%            1,400                                0%
         5300      Contractual Services                              1,490,600             1,308,314       1,390,508          438,554          32%        1,390,508                                0%
         5400      Other Expenses                                               6                              1,000               83           8%            1,000                                0%
         5700      Capital Outlays                                                            24,360          25,000                            0%           25,000                                0%
         5900      Other Financing Uses                                                                                                         N/A                                                N/A
                                                              $      1,551,009      $      1,399,699   $   1,480,330   $      471,365          32% $      1,480,330   s                            0%
            City of Muskegon
            Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
            General Fund Expenditure Summary By Function

                                                                                                                                  Actual As                                       %Change
                                                                                               Original Budget Actual Thru June     % of         Revised          Change From       From
                                                             Actual 1999        Actual 2000    Estimate 2001         2001          Revised    Estimate 2001       2001 Original    Original   Comments
    60528    Recycling
    5100      Salaries & Benefits                        $                  $                  $                                        NIA $                 $                         NIA
    5200      Operating Supplies                                                                                                        NIA                                             NIA
    5300      Contractual Services                               300,392            263,478          261,207           85,526          33%         261,207                              0%
    5400      Other Expenses                                                                                                            NIA                                             NIA
    5700      Capital Outlays                                                                           1,500                           0%            1,500                             0%
    5900      Other Financing Uses                                                                                                      NIA                                             NIA

    60524    Composting
                                                         $       300,392
                                                                            •       263,478    $     262,707    $      85,526          33% $       262,707
                                                                                                                                                              •                         0%

    5100
    5200
              Salaries & Benefits
              Operating Supplies
                                                         $         12,468
                                                                            •                  $                $                       NIA $
                                                                                                                                        NIA                   •                         NIA
                                                                                                                                                                                        NIA
    5300      Contractual Services                                 43,237                                                               NIA                                             NIA
    5400      Other Expenses                                                                                                            NIA                                             NIA
    5700      Capita! Outlays                                                                                                           NIA                                             NIA
    5900      other Financing Uses                                                                                                      NIA                                             NIA

    60448   Streetlighting
                                                         $        55,705
                                                                            •                  $                $                       NIA $                 $                         NIA

    5100       Salaries & Benefits                       $         12,685   $         10,601   $       7,064    $       3,812          54% $          7,064   $                         0%
    5200       Operating Supplies                                                                                                       NIA                                             NIA
    5300       Contractual Services                              505,839            507,599          515,000          211,360          41%         515,000                              0%
    5400       Other Expenses                                                                                                           NIA                                             NIA
~   5700       Capital Outlays                                       600                              10,000                            0%           10,000                             0%
    5900       Other Financing Uses                                                                                                     NIA                                             NIA
                                                         $       519,124    $       518,200    $     532,064    $     215,172          40% $       532,064    $                         0%
    60707   Senior Citizen Transit
    5100      Salaries & Benefrts                        $        39,821    $         44,554   $      42,998    $      22,210          52% $        42,998    $                         0%
    5200      Operating Supplies                                                                                                        NIA                                             NIA
    5300      Contractual Services                                  4,810              5,450           5,850            2,925          50%            5,850                             0%
    5400      Other Expenses                                                                                                            NIA                                             NIA
    5700      Capital Outlays                                                                                                           NIA                                             NIA
    5900      other Financing Uses                                                                                                      NIA                                             NIA
                                                         $         44,631   $         50,004   $      48,848    $      25,135          51% $        48,848    $                         0%
    60446   Community Event Support
    5100      Salaries & Benefrts                        $         17,953   $        113,420   $      75,382    $      19,828          26% $        75,382    $                         0%
    5200      Operating Supplies                                                      14,743           2,500            1,222          49%           2,500                              0%
    5300      Contractual Services                                  1,270             45,757          20,000            5,677          28%          20,000                              0%
    5400      other Expenses                                                                                                            NIA                                             NIA
    5700      Capital Outlays                                                                                                           NIA                                             NIA
    5900      Other Financing Uses                                                                                                      NIA                                             NIA
                                                         $         19,223   $        173,920   $      97,882    $      26,727          27% $        97,882    $                         0%
                                                         $      2,490,084   $      2,405,301   $   2.421,831    $     823,925          34% $     2,421,831    $                         0%

    70751   Parks Maintenance
    5100      Salaries & Benefits                        $       594,245    $       410,877    $     528,153    $     214,451          41% $       528,153    $                         0%
    5200      Operating Supplies                                 101,986            188,503          125,155           69,974          56%         125,155                              0%
    5300      Contractual Services                               369,196            509,593          515,000          229,043          44%         515,000                              0%
    5400      Other Expenses                                       2,338              2,939            7,000            2,544          36%           7,000                              0%
    5700      Capital Outlays                                     42,206             53,703           80,000           64,064          80%          80,000                              0%
    5900      Other Financing Uses                                                                                                      NIA                                             NIA
                                                         $      1,109,971   $      1,165,615   $   1,255,308
                                                                                                                •     580,076          46% $      1,255,308   $                         0%
              City of Muskegon
              Quarterly Budget Reforecast and 2001 Proposed Budget~ General Fund
              General Fund Expenditure Summary By Function

                                                                                                                                    Actual As                                         %Change
                                                                                                 Original Budget Actual Thru June     %of          Revised          Change From         From
                                                               Actual 1999        Actual 2000    Estimate 2001         2001          Revised    Estimate 2001       2001 Original      Original   Comments
      70757   Mc Graft Park Maintenance
      5100      Salaries & Benefits                       $         34,953    $         10,522   $      18,278   $        2,365          13% $        18,278    $                           0%
      5200      Operating Supplies                                   9,527               3,862           5,000            2,276          46%           5,000                                0%
      5300      Contractual Services                                27,393              43,985          30,165           14,690          49%          30,165                                0%
      5400      Other Expenses                                         434                210            1,000                            0%           1,000                                0%
      5700      Capital Outlays                                                           283                                             N/A                                               N/A
      5900      Other Financing Uses                                                                                                      N/A                                               N/A
                                                          $         72,307    $         58,862   $      54,443   $       19,331          36% $         54,443   $                           0%
      70775    General Recreation Programs
      5100      Salaries & Benefrts                       $         132,298   $        117,149   $     175,398   $       46,822          27% $       175,398    $                           0%
      5200      Operating Supplies                                   35,928             31,912          25,300           27,183          96%          28,300                3,000          12%
      5300      Contractual Services                                118,418            115,122          88,675           53,520          62%          85,675                (3,000)        -3%
      5400      other Expenses                                        4,244              2,969           4,000              701          18%           4,000                                0%
      5700      Capital Outlays                                        208               4,344                                            N/A                                               N/A
      5900      Other Financing Uses                                                                                                      N/A                                               N/A
                                                          $        291,096    $       271,496    $     293,373   $      128,226          44% $       293,373    $                           0%
      70776    Inner City Recreation Programs
      5100       Salaries & Benefrts                      $         103,019   $        135,718   $     132,319   $       58,791          44% $       132,319    $                           0%
      5200       Operating Supplies                                  11,214             10,781          21,710            3,847          18%          21,710                                0%
      5300       Contractual Services                                30,297             29,995          36,400           12,558          35%          36,400                                0%
      5400       Other Expenses                                       2,397              2,896           3,000              587          20%           3,000                                0%
      5700       Capital Outlays                                                                                                          N/A                                               NIA
'-I   5900       Other Financing Uses                                                                                                     N/A                                               NIA
                                                          $         146,927   $        179,390   $     193,429   $       75,783          39% $       193,429    $                           0%
      70276   Cemeteries Maintenance
      5100      Salaries & Benefits                       $        330,496    $       184,070    $     175,746   $       91,271          52% $       175,746    $                           0%
      5200      Operating Supplies                                  21,166             13,440           25,000            4,414          18%          25,000                                0%
      5300      Contractual Services                               110,984            246,091          270,000           74,595          28%         270,000                                0%
      5400      Other Expenses                                         216                 568           1,000              605          61%           1,000                                0%
      5700      Capital Outlays                                      33,200             19,930          22,500           14,177          63%          22,500                                0%
      5900      Other Financing Uses                                                                                                      N/A                                               NIA
                                                          $        496,062    $        464,099   $     494,246   $      185,062          37% $       494,246    $                           0%
      70585   Parking Operations
      5100      Salaries & Benefits                       $          12,979   $         13,182   $      12,584   $        6,684          53% $        12,584    $                           0%
      5200      Operating Supplies                                    2,146              2,316           2,000              663          33%           2,000                                0%
      5300      Contractual Services                                 28,692             27,501          35,572           15,518          44%          35,572                                0%
      5400      Other Expenses                                                                                                            N/A                                               N/A
      5700      Capital Outlays                                                                                                           NIA                                               N/A
      5900      Other Financing Uses                                                                                                      N/A                                               N/A
                                                          $          43,817   $         42,999   $      50,156   $       22,865          46% $        50,156    $                           0%
      70771   Forestry
      5100      Salaries & Benefits                       $         90,283    $         89,755   $     134,355   $       45,070          34% $       134,355    $                           0%
      5200      Operating Supplies                                  10,467               9,852           9,581            5,808          61%           9,581                                0%
      5300      Contractual Services                                12,898              16,843          14,000            6,765          48%          14,000                                0%
      5400      Other Expenses                                       2,940                 818           1,700              688          40%           1,700                                0%
      5700      Capita! Outlays                                      6,572               3,207           2,000                            0%           2,000                                0%
      5900      Other Financing Uses                                                                                                      N/A                                               N/A
                                                           $        123,160   $        120,475   $     161,636   $       58,331          36% $       161~636    $                           0%
           City of Muskegon
           Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
           General Fund Expenditure Summary By Function

                                                                                                                                      Actual As                                         % Change
                                                                                                   Original Budget Actual lhru June     %of          Revised          Change From         From
                                                                 Actual 1999        Actual 2000    Estimate 2001         2001          Revised    Estimate 2001       2001 Original      Original                   Comments
   70863   Farmers' Market & Flea Market
   5100      Salaries & Benefrts                             $         36,984   $         27,185   $      30,669   $       10,708          35% $         30,669   $                            0%
   5200      Operating Supplies                                          503                591            1,000                            0%             500                  (500)        -50%
   5300      Contractual Services                                       8,236             15,000           7,623            7,998          98%            8,123                  500           7%
   5400      Other Expenses                                                                                                                 NIA                                                NIA
   5700      Capital Outlays                                                                                                                NIA                                                NIA
   5900      Other Financing Uses                                                                                                           NIA                                                NIA
                                                             $         45,723   $         42,776   $      39,292   $       18,706          48% $         39,292   $                            0%
                                                             $      2,329,063   $      2,345,712   $   2,541,883   $    1,088,380          43% $      2,541,883   $                            0%

   80799   Weed and Seed Program
   5100      Salaries & Benefits                             $         20,949   $                  $               $                        N/A $                 $                           NIA
   5200      Operating Supplies                                         2,860                                                               NIA                                               NIA
   5300      Contractual Services                                       9,784                112                                            NIA                                               NIA
   5400      Other Expenses                                              127                                                                NIA                                               NIA
   5700      Capita! Outlays                                                                                                                NIA                                               NIA
   5900      Other Financing Uses                                                                                                           NIA                                               NIA
                                                             $         33,720   $            112   $               $                        N/A $                 $                           NIA
   80387   Environmental Services
   5100      Salaries & Benefits                             $       439,362    $       150,456    $     172,208   $       89,530          52% $       172,208    $                           0%
   5200      Operating Supplies                                       12,785              9,525            4,700            4,038          86%           4,700                                0%
   5300      Contractual Services                                    328,371            265,250          160,950           83,317          52%         160,950                                0%
~ 5400       Other Expenses                                            2,674                333            1,000               89           9%           1,000                                0%
   5700      Capital Outlays                                           3,569               4,135           4,700               10           0%           4,700                                0%
   5900      Other Financing Uses                                                                                                           NIA                                               NIA
                                                             $       786,761    $       429,699    $     343,558   $      176,984          52% $       343,558    $                           0%
                                                             $       820,481    $       429,811    $     343,558   $      176,984          52% $       343,558    $                           0%

   10875   Other
           Contributions To Outside Agencies                 $       117,369    $        115,930   $     141,640   $       75,145          53% $       141,640    $                           0% MATS- $80,500; NEIGH GRANTS - $40,000: MEMORIAL
                                                             $       117,369    $        115,930   $     141,640   $       75,145          53% $       141,640    $                           0% DAY COMMITTEE- $10,000; OTHER-$11,140


           Total Customer Value Added Activities             $     16,071,122 $       16,393,523 $     16,570,554 $     7,526,055          45% $     16,605,554 $            35,000           0%
           As a Percent of Total General Fund Expenditures              73.0%              73.7%            71.5%           72.8%                         71.4%
            City of Muskegon
            Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
            General Fund Expenditure Summary By Function

                                                                                                                                  Actual As                                         % Change
                                                                                               Original Budget Actual Thru June     %of          Revised          Change From         From
                                                             Actual 1999        Actual 2000    Estimate 2001         2001          Revised    Estimate 2001       2001 Original      Original                 Comments
            II. Business Value Added Activities

    10101   City Commission
    5100
    5200
               Salaries & Benefits
               Operating Supplies
                                                         $         50,488
                                                                   11,732
                                                                            $         56,917
                                                                                      11,861
                                                                                               •      58,589
                                                                                                      16,000
                                                                                                               $       27,469
                                                                                                                        8,725
                                                                                                                                       47% $
                                                                                                                                       55%
                                                                                                                                                     58,589
                                                                                                                                                     16,000
                                                                                                                                                              $                            0%
                                                                                                                                                                                           0%
    5300       Contractual Services                                26,636             30,541          47,059           15,579          33%           47,059                                0%
    5400       Other Expenses                                       7,106              8,813          11,000            1,908          17%           11,000                                0%
    5700       Capital Outlays                                      1,534                 91                                            NIA                                               NIA
    5900       Other Financing Uses                                                                                                     NIA                                               NIA
                                                         $         97,496   $        108,223   $     132,648   $       53,681          40% $       132,!?48   $                            0%
    10102   City Promotions & Public Relations
    5100       Salaries & Benefits                       $                  $                  $               $                        NIA $                 $                           NIA
    5200       Operating Supplies                                                                     10,000                            0%           10,000                                0%
    5300       Contractual Services                                                   14,791          24,000           11,400          48%           24,000                                0%
    5400       Other Expenses                                                                                                           NIA                                               NIA
    5700       Capital Outlays                                                                                                          NIA                                               NIA
    5900       Other Financing Uses                                                                                                     NIA                                               NIA
                                                         $                  $         14,791   $      34,000   $       11,400          34% $         34,000   $                            0%
    10172   City Man"ig-er'
    5100       Salaries & Benefits                       $        163,409   $        172,284   $     177,056   $       85,298          48% $       177,056    $                            0%
    5200       Operating Supplies                                   2,531              2,564           3,500              228           7%           3,500                                 0%
~   5300       Contractual Services                                 2,645              2,962           5,500              756          14%           5,500                                 0%
    5400       Other Expenses                                       2,601              4,247           4,500              885          20%           4,500                                 0%
    5700       Capital Outlays                                         82              1,814           3,500                            0%           3,500                                 0%
    5900       Other Financing Uses                                                                                                     NIA                                               NIA
                                                         $        171,268   $        183,871   $     194,056   $       87,167          45% $       194,056    $                            0%
    10145   City Attorney
    5100       Salaries & Benefits                       $                  $                  $               $                        NIA $                 $                           NIA
    5200       Operating Supplies                                    400                480              480              833          83%           1,000                  520         108%
    5300       Contractual Services                              341,368            384,201          370,194          192,453          52%         370,194                                0%
    5400       Other Expenses                                                                                                           NIA                                               NIA
    5700       Capital Outlays                                                                                                          NIA                                               NIA
    5900       Other Financing Uses                                                                                                     NIA                                               NIA
                                                         $       341,768    $       384,681    $     370,674   $      193,286          52% $       371,194    $             520            0%
                                                         $       610,532    $       691,566    $     731,378   $      345,534          47% $       731,898    $             520           0%

    20173   Administration
    5100      Salaries & Benefits                        $        124,412   $        137,659   $     141,029   $       62,653          48% $       131,029    $         (10,000)         -7% MGT ASST POSITION VACANCY
    5200      Operating Supplies                                    4,482              2,295           3,950              365           9%           3,950                                0%
    5300      Contractual Services                                 24,701             15,871          23,000            2,254          11%          21,000                (2,000)        -9%
    5400      Other Expenses                                       16,200             12,278          11,860            3,607          30%          11,860                                0%
    5700      Capital Outlays                                        298                581            1,500            3,018          86%           3,500                2,000         133%
    5900      Other Financing Uses                                                                                                      NIA                                               NIA
                                                         $        170,093
                                                                            •        168,684   $     181,339   $       ?1,l?~7         42% $       171,339    $         (10,000)          -6%
              City of Muskegon
              Quarterly Budget Reforecast and 2001 Proposed Budget - General Fund
              General Fund Expenditure Summary By Function

                                                                                                                                    Actual As                                          % Change
                                                                                                 Original Budget Actual Thru June     %of          Revised           Change From         From
                                                               Actual 1999        Actual 2000    Estimate 2001         2001          Revised    Estimate 2001        2001 Original      Original                  Comments
      20228   Affirmative Action
      5100       Salaries & Benefits                       $         63,526   $         69,370   $      70,485   $       34,600          49% $        70,485     $                            0%
      5200       Operating Supplies                                    517                506            1,000            1,417          94%           1,500                   500           50%
      5300       Contractual Services                                 2,109              2,334           3,300            1,040          32%           3,300                                  0%
      5400       Other Expenses                                       3,295              2,801           4,000            1,622          46%           3,500                   (500)        -13%
      5700       Capital Outlays                                                           118             500                            0%             500                                  0%
      5900       Other Financing Uses                                                                                                     NIA                                                 NIA
                                                           $         69,447   $         75,129   $      79,285   $       38,679          49% $         79,285    $                              0%
      20744   Julia Hackley Internships
      5100       Salaries & Benefits                       $          1,714   $          7,482   $       4,650   $        3,837          83% $          4,650    $                              0%
      5200       Operating Supplies                                                        718                                            NIA                                                 NIA
      5300       Contractual Services                                                      711                                            NIA                                                 NIA
      5400       Other Expenses                                                                                                           NIA                                                 NIA
      5700       Capital Outlays                                                                                                          NIA                                                 NIA
      5900       Other Financing Uses                                                                                                     NIA                                                 NIA
                                                           $          1,714   $          8,911   $       4,650   $        3,837          83% $          4,650    $                              0%
      20215   City Clerk & Elections
      5100       Salaries & Benefits                       $       190,040    $       218,883    $     209,842   $       95,474          45% $       209,842     $                            0%
      5200       Operating Supplies                                 28,908             32,549           15,000           10,508          53%          20,000                  5,000          33%
      5300       Contractual Services                               34,857             28,284           32,850           11,691          48%          24,500                 (8,350)        -25%
'--
 ~
      5400
      5700
                 Other Expenses
                 Capital Outlays
                                                                     6,875
                                                                     5,006
                                                                                        5,420
                                                                                        2,551
                                                                                                         3,250
                                                                                                         3,350
                                                                                                                          3,458          77%
                                                                                                                                          0%
                                                                                                                                                       4,500
                                                                                                                                                       3,350
                                                                                                                                                                              1,250          38%
                                                                                                                                                                                              0%
      5900       Other Financing Uses                                                                                                     NIA                                                 NIA
                                                           $       265,686    $       287,687    $     264,292   $      121,131          46% $       262,192     $           (2,100)          -1%
      20220   Civil Service
      5100       Salaries & Benefits                       $       125,385    $        130,015   $     153,025   $       54,204          35% $       153,025     $                            0%
      5200       Operating Supplies                                 15,052               6,339           5,000            3,701          62%           6,000                  1,000          20% FIRE STUDY GU!DES PURCHASED FOR RESALE
      5300       Contractual Services                               71,530              39,839          31,000           12,172          39%          31,000                                  0%
      5400       Other Expenses                                      7,890              42,287           8,000            1,475          18%           8,000                                  0%
      5700       Capital Outlays                                       220                 762             957            1,063         111%             957                                  0%
      5900       other Financing Uses                                                                                                     NIA                                                 NIA
                                                           $       220,077    $       219,242    $     197,982   $       72,615          36% $       198,982     $            1,000           1%
                                                           $       727,017    $       759,653    $     727,548   $      308,159          43% $       716,448     $          (11,100)         -2%

      30202   Finance Administration
      5100       Salaries & Benefits                       $       245,121    $       259,785    $     267,683   $      134,265          50% $       267,683     $                            0%
      5200       Operating Supplies                                  8,336              9,334           10,900            4,886          45%          10,900                                  0%
      5300       Contractual Services                               61,633             64,594           69,400           58,889          67%          88,000                18,600           27% NO LONGER US!NG COMPENSATING BALANCES
      5400       Other Expenses                                      3,280              2,385            3,000            1,316          44%           3,000                                  0% TO PAY BANK FEES
      5700       Capital Outlays                                     2,359              4,586            3,500              791          23%           3,500                                  0%
      5900       Other Financing Uses                                                                                                     NIA                                                 NIA
                                                           $       320,729    $       340,684    $     354,483   $      200,147          54% $       373,083     $          18,600              5%
      30209   Assessing Services
      5100      Salaries & Benefits                        $       240,204    $          5,013   $       7,731   $        5,850          76% $          7,731    $                              0%
      5200      Operating Supplies                                   3,131                                                                NIA                                                 NIA
      5300      Contractual Services                               114,601            340,213          365,835           90,596          25%         365,835                                    0%
      5400      Other Expenses                                       3,900                 80              100               45          45%              100                                   0%
      5700      Capital Outlays                                        633                                                                NIA                                                 NIA
      5900      Other Financing Uses                                                                                                      NIA                                                 NIA
                                                           $        362,469   $        345,306   $     373,666   $       96,491          26% $       373.!.666   $                              0%
            City of Muskegon
            Quarterly Budget Reforecast and 2001 Proposed Budget~ General Fund
            General Fund Expenditure Summary By Function

                                                                                                                                       Actual As                                         % Change
                                                                                                    Original Budget Actual Thru June     % of         Revised          Change From         From
                                                                  Actual 1999        Actual 2000    Estimate 2001         2001          Revised    Estimate 2001       2001 Original      Original                 Comments
    30205   Income Tax Administration
    5100       Salaries & Benefrts                            $       186,659    $       212,880    $     223,951    $     112,563          50% $       223,951    $                           0%
    5200       Operating Supplies                                      24,897             18,875           24,073           14,393          60%          24,073                                0%
    5300       Contractual Services                                    34,271             34,550           39,500            9,124          23%          39,500                                0%
    5400       Other Expenses                                           1,003              1,288            1,500              295          20%           1,500                                0%
    5700       Capital Outlays                                          7,375              2,180            3,000              206           7%           3,000                                0%
    5900       Other Financing Uses                                                                                                          N/A                                               N/A
                                                              $       254,205    $       269,773    $     292,024    $     136,581          47% $       292,024    $                           0%
    30253   City Treasurer
    5100       Salaries & Benefits                            $       266,436    $       251,881    $     275,462    $     112,652          41% $       275,462    $                           0%
    5200       Operating Supplies                                      28,340             38,165           28,400           14,419          51%          28,400                                0%
    5300       Contractual Services                                    44,557             55,546           41,399           23,502          57%          41,399                                0%
    5400       Other Expenses                                           1,096              1,264            1,211              713          59%           1,211                                0%
    5700       Capital Outlays                                          6,259              7,298            3,957            3,602          91%           3,957                                0%
    5900       Other Financing Uses                                                                                                          N/A                                               N/A
                                                              $       346,688    $        354,154   $     350,429    $     154,888          44% $       350,429    $                           0%
    30248   Information Systems Administration
    5100       Salaries & Benefits                            $        131,588   $        167,381   $     176,942    $      88,446          50% $       176,942    $                           0%
    5200       Operating Supplies                                        4,832              6,695           9,000              162           2%           9,000                                0%

~
    5300       Contractual Services                                     42,033             38,925          45,000           13,795          31%          45,000                                0%
    5400       Other Expenses                                           18,650             10,689          12,000            8,790          73%          12,000                                0%
    5700       Capital Outlays                                          67,921             52,283          42,000           14,068          33%          42,000                                0%
    5900       Other Financing Uses                                                                                                          N/A                                               N/A
                                                              $        265,024   $        275,973   $     284,942    $     125,261          44% $        284,942   $                           0%
                                                              $      1,549,115   $      1,585,890   $   1,655,544    $     713,368          43% $      1,674,144   $          18,600           1%

    60265   City Hall Maintenance
    5100       Salaries & Benefits                            $         63,925   $         63,273   $      61,204    $      31,879          52% $        61,204    $                           0%
    5200       Operating Supplies                                       13,874             11,926          15,370            4,866          32%          15,370                                0%
    5300       Contractual Services                                    161,699            184,471         189,895          110,930          53%         210,000               20,105          11% UNANTICIPATED ELEVATOR REPAIRS
    5400       Other Expenses                                               67                395             500              598          60%           1,000                  500         100%
    5700       Capital Outlays                                           8,607              3,422           6,287                            0%           5,787                  (500)        -8%
    5900       Other Financing Uses                                                                                                          N/A                                               N/A
                                                              $        248,172   $        263,487   $     273,256    $     148,273          51% $       293,361    $          20,105            7%
                                                              $        248,172   $        263,487   $     273,256    $     148,273          51% $       293,361    $          20,105            7%
    -----


    80400   Planning, Zoning and Economic Development
    5100       Salaries & Benefits                            $        370,871   $        395,554   $     415,475    $     188,334          45% $       415,475    $                           0%
    5200       Operating Supplies                                       31,621             16,283          14,050            9,871          70%          14,050                                0%
    5300       Contractual Services                                    102,933             78,924          79,400           41,622          57%          73,400                (6,000)        -8%
    5400       Other Expenses                                           10,591              7,746           8,500            2,504          29%           8,500                                0%
    5700       Capital Outlays                                           2,146              3,018           4,000            8,953          90%          10,000                6,000         150%
    5900       Other Financing uses                                                                                                          N/A                                               N/A
                                                              $        518,162   $        501,525   $     521,425    $     251,284          48% $       521,425    $                           0%
                                                              $        518,162   $        501,525   $     521,425    $     251,284          48% $       521,425    $                           0%

            Total Business Value Added Activities             $      3,652,998   $      3,802,121   $   3,909,151    $   1,766,618          45% S      3,937,276   $          28,125            1%
            As a Percent of Total General Fund Expenditures              16.6%              17.1%            16.9%           17.1%                         16.9%
              City of Muskegon
              Quarterly Budget Reforecast and 2001 Proposed Budget~ General Fund
              General Fund Expenditure Summary By Function

                                                                                                                                         Actual As                                       % Change
                                                                                                      Original Budget Actual Thru June     %of          Revised          Change From       From
                                                                    Actual 1999        Actual 2000    Estimate 2001         2001         Revised     Estimate 2001       2001 Original    Original   Comments

              I/. Fixed Budget Items

      30999   Transfers To Other Funds
                 Major Street Fund                              $                  $                  $                $                       NIA $                 $                         N/A
                 Local Street Fund                                      620,000            620,000          820,000          410,000          50%         820,000                               0%
                 Budget Stabilization Fund                                                                  100,000           50,000          50%         100,000                               0%
                 LC. Walker Arena Fund                                  325,000            346,000          301,000          150,500          50%         301,000                               0%
                 Public Improvement Fund                                150,000            220,000          150,000           75,000          50%         150,000                               0%
                 MOD State Rehab Loan Fund                                                  22,810                            22,810           NIA                                             N/A
                 TIFA Debt Service Fund                                   12,000                                                               NIA                                             N/A
                 State Grants                                              1,742                                                               NIA                                             N/A
                 Tree Replacement                                                             2,723                                            NIA                                             NIA
                                                                $      1,108,742   $      1,211,533   $    1,371,000   $     708,310          52% $      1,371,000   $                          0%

      30851   General Insurance                                 $        222,763 $          249,757 $        270,000 $       232,196          86% $        270,000 $                            0%
      30906   Debt Retirement                                            340,604            407,835          365,098          75,391          21%          365,098                              0%
      10891   Contingency and Bad Debt Expense                           212,696            142,954          450,000                           0%          450,000                              0%
'-    90000   Major Capital Improvements                                 402,954             24,934          245,000           23,719         10%          245,000                              0%
I'>           Total Fixed-Budget Items                          $      2,287,759 $        2,037,013 $      2,701,098 $      1,039,616         38% $      2,701,098 $                            0%
              As a Percent of Total General Fund Expenditures              10.4%               9.2%            11.7%            10.1%                        11.6%



               Total General Fund                               $     22,011,879   $     22,232,657   $   23,180,803   $   10,332,289         44% $    23,243,928    $          63,125          0%




              Recap: Total General Fund By Expenditure Object
      5100      Salaries & Benefits                             $     12,873,899   $     12,678,843   $   13,265,442   $    6,234,196         47% $    13,285,442    $          20,000         0%
      5200      Operating Supplies                                       644,655            719,038          637,269          297,589         46%         641,789                4,520         1%
      5300      Contractual Services                                   6,002,539          6,559,992        6,817,381        2,757,484         40%       6,837,236               19,855         0%
      5400      Other Expenses                                           170,318            185,789          154,821           65,684         42%         156,071                1,250         1%
      5700      Capital Outlays                                          871,122            469,627          569,792          193,635         33%         587,292               17,500         3%
      5900      All Other Financing Uses                               1,449,346          1,619,368        1,736,098          783,701         45%       1,736,098                              0%
               Total General Fund                               $     22,011,879   $     22,232,657   $   23,180,803   $   10,332,289         44% $    23,243,928    $          63,125         0%
                  City of Muskegon
                  Quarterly Budget Re forecast and 2001 Proposed Budget - Non-General Funds
                                                                                                                             Actual As                                       % Change
                                                                                        Original Budget   Actual Thru June     % of      Revised Estimate   Change From        From
                                                      Actual 1999        Actual 2000    Estimate 2001           2001          Revised          2001         2001 Original     Original                          Comments


          202     Major Streets and State Trunklines Fund
                  Available Fund Balance - BOY    $    4,386,989     $      3,585,170   s     1,808,171   $     2,989,718                $     2,989,718    $   1,181,547

                  Revenues
                   Special assessments                     208,386   $        221,610   s      100,000    $                                                                         0%
                   Federal grants
                   State grants
                                                  $
                                                            29,033
                                                            92,678
                                                                            3,154,271
                                                                                             1,150,000
                                                                                                                                         '       100,000

                                                                                                                                               1,150,000
                                                                                                                                                            '                       0%
                   State shared revenue                  2,346,730          2,590,185        2,209,194            771,570                      2,209,194                            0%
                   Interest income                         237,805            214,103           60,000             60,974                         60,000                            0%
.......            Operating transfers in                  170,720                             155,000                                           155,000                            0% CDBG S85M ; EDA $70M
(...;,             Other                                   183,977            514,262           75,000             12,025                         75,000                            0%
                                                  $      3,269,329   s      6,694,431        3,749,194    s       844,569                      3,749,194                            0%

          60900   Operating Expenditures
                                                                                        $
                                                                                                                                         '                  '
                                                           608,646   s        649,222                     s                                                 s                       0%
          5100
          5200
          5300
                    Salaries & Benefits
                    Operating Supplies
                    contractual Services
                                                  $
                                                           151,749
                                                           688,313
                                                                              105,439
                                                                              S15,522
                                                                                        '      737.485
                                                                                               166,200
                                                                                               723,401
                                                                                                                  334,035
                                                                                                                   80,680
                                                                                                                  450,348
                                                                                                                               45%
                                                                                                                               49%
                                                                                                                               62%
                                                                                                                                         $       737,485
                                                                                                                                                 166,200
                                                                                                                                                 723,401
                                                                                                                                                                                    0%
                                                                                                                                                                                    0%
          5400      Other Expenses                           5,23S              S,54S            4,000                987      2S%                 4,000                            0%
          5700      Capital Outlays                                                                                  1,635     NJA
          5SOO      Oth~r financin!;! Uses                 664,840            905,964           810,523            343,074     42%               810,523                            0% 0E9T SERVICE; S200M TRANSFER TO LOCAL
                                                  s      2,118,787          2,581,692   $     2,441,609   s      1,210,759     SO%                          s                       0%
                                                                                                                                         '
                                                                     $                                                                         2,441,609

          90000   Project Expenditures
                                                  s                                                       s                     NIA                         s
          5200
          5300
          5700
                     Operating Supplies
                     Contractual Services
                     Ca ital Outla s
                                                         1,731,347
                                                           221,014
                                                                     '      4,708,191
                                                                                        $
                                                                                              2,960,000           397,831      15%
                                                                                                                                NIA
                                                                                                                                         '     2,716,000         {244,000)         -8% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL

                                                  s      1,952,361          4,708,191   $     2,960,000   $        397,831                                  s
                                                  s      4,071,148   '
                                                                     $      7,289,883   $     5.401,609   $      1,608,590
                                                                                                                               15%
                                                                                                                               31%
                                                                                                                                         $

                                                                                                                                         '
                                                                                                                                               2,716,000
                                                                                                                                               5,157,609
                                                                                                                                                                 (244,000)         -8%


                                                  s      3,585,170          2,989,718   $                                                                   s
                  Available Fund Balance - EOY
                                                                     '                         155,756
                                                                                                          '     2,225,697
                                                                                                                                         '     1,581,303        1,425,547
              City of Muskegon
              Quarterly Budget Reforecast and 2001 Proposed Budget. Non-General Funds
                                                                                                                        Actual As                                           % Change
                                                                                   Original Budget   Actual Thru June     % of      Revised Estimate       Change From        Frnm
                                                 Actual 1999        Actual 2000    Estimate 2001          2001           Revised         2001              2001 Original     Original                             Comments

      203     Local Streets Fund
              Available Fund Balance - BOY   $        107,336   $            176   $       {81,376) -$       122,966                s       122,966    s         204,342

              Revenues
               Special assessments           $         70,128   $         76,570   $        75,000   $                              s        75,000    s                             0%
               Federal grants                                             31,073                              31,073
               State grants                                               48,467                              48,467
               State shared revenue                   621,506            639,505           648,300           219,655                        648,300                                  0%
               Interest income                         10,329             11,210            10,000               199                         10,000                                  0%
               Operating transfers in                 680,000            870,000         1,090,000           410,000                      1,090,000                                  0% GENERAL FUND TRANSFER $820M: EDA $70M; MAJOR S200M
               Other                                      828             20,082            20,000               311                         20,000                                  0%

'                                            $      1,382,791   $      1,696,907   $     1,843,300   $       709,705                s     1,843,300    s                             0%


""'   60900
      5100
      5200
              Operating Expenditures
                Salaries & Benefits
                Operating Supplies
                                             $        484,756
                                                       73,457
                                                                $        437,738
                                                                         107,551
                                                                                   s      402,118
                                                                                           84,000
                                                                                                     $       204,364
                                                                                                              58,362
                                                                                                                          51%
                                                                                                                          69%
                                                                                                                                    s      402,118
                                                                                                                                            84,000
                                                                                                                                                       s                             0%
                                                                                                                                                                                     0%
      5300      Contractual Services                  484,784            589,182          554,501            240,827      43%              554,501                                   0%
      5400      Other Expenses                          1,234              2,236            1,000                 83       8%                1,000                                   0%
      5700      Capital Outlays                                                                                           N/A
      5900      Other Financing Uses                                      63,143                                          NIA
                                             $      1,044,231   $      1,199,850   s     1,041,619   $       503,636      48%       s     1,041,619    .-                            0%

      90000   Project Expenditures
      5200      Operating Supplies           $                  $                  s                 $                    N/A       s                  $
      5300_      Contractual Servipes                 445,720            374,267           700,000           112,121      17%               652,000              (48,oooi          -7% SEE "BUDGETED CAPITAL IMPROVEMENTS" FO!=!_E:IETAIL
                                             $        445,no    $        374,267   s       700,000   $       112,121      17%       $       652,000    $         (4a,oooi          -7%
                                             $      1,489,951   $      1,574,117   s     1,741,619   $       615,757      36%       s     1,693,619

              Available Fund Balance• EOY    $            176            122,966   s        20,305                                                     $ - -- 252,342
                                                                                                     '
                                                                $                                            216,914                $      272,647
                  City of Muskegon
                  Quarterly Budget Reforecast and 2001 Proposed Budget- Non-General Funds
                                                                                                                             Actual As                                          % Change
                                                                                        Original Budget   Actual Thru June     %of       Revised Estimate       Change From       From
                                                     Actual 1999        Actual 2000     Estimate 2001           2001          Revised         2001              2001 Original    Original   Comments

          230     Enterprise Community Fund
                  Available Fund Balance - BOY   $                  $                  $                  $                              $                  $

                  Revenues
                   Special assessments           $                  $                  $                  $                              $
                   Federal grants                         336,525                633           180,000                                           180,000                               0%
                   State shared revenue
                   Charges for services                    77,310
                   Interest income
......_            Operating transfers ln
                   Other
 "I                                              $        413,835   $            633   $       180.000    $                              $       180,000    $                          0%

          60900   Operating Expenditures
          5100      Salaries & Benefits          $                  $                  $                  $                    NIA       $                  $
          5200      Operating Supplies                                                                                         NIA
          5300      Contractual Services                  413,835                633           180,000                842       0%               180,000                               0%
          5400      Other Expenses                                                                                             NIA
          5700      Capital Outlays                                                                                            NIA
          5900      Other Financin Uses                                                                                        NIA
                                                 $        413,835   $            633   $       180,000    $           842       0%       $       180,000    $                          0%

          90000   Project Expenditures
          5200
          5300
                     Operating Supplies
                     Contractual Services        '                  '                  '                  $                    NIA
                                                                                                                               NIA
                                                                                                                                         $                  $


                                                 '
                                                 $        413,835   '
                                                                    $            633   ''      180,000
                                                                                                          $
                                                                                                          $           842
                                                                                                                               NIA
                                                                                                                               0%
                                                                                                                                         $
                                                                                                                                         $       180,000

                  Available Fund Balance - EOY   $                  $                  $                  $          ~ -                 $
            City of Muskegon
            Quarterly Budget Reforecast and 2001 Proposed Budget - Non-General Funds
                                                                                                                        Actual As                                          % Change
                                                                                  Original Budget   Actual Thru June      %of       Revised Estimate       Change From       From
                                                Actual 1999        Actual 2000    Estimate 2001           2001           Revised         2001              2001 Original    Original                            Comments
    254     L.C. Walker Arena Fund
            Available Fund Balance - BOY   s             294   $          3,426                                                                        s
            Revenues
                                                                                  '         3,564   $          3,861
                                                                                                                                    '         3,861                  297


             Special assessments           s                                                                                                           s
             State grants
             State shared revenue
                                                               '                  '                 $
                                                                                                                                    '
             Charges for services                    518,703            505,229          560,000            287,005                        560,000                                  0%
             Interest income                                                 24                                 507

'
~
             Operating transfers in
             Other
                                           s
                                                     325,000
                                                       2,212
                                                     845,915   $
                                                                        346,000
                                                                          3,848
                                                                        855,101   $
                                                                                         301,000

                                                                                         861,000    $
                                                                                                            150,500
                                                                                                             11,804
                                                                                                            449,818                 s
                                                                                                                                           301,000

                                                                                                                                           861,000     s
                                                                                                                                                                                    0%

                                                                                                                                                                                    0%
                                                                                                                                                                                         GENERAL FUND OPERATING SUBSIDY




    70805   Operating Expenditures
                                           s                                                                                        s                  s
    5100
    5200
    5300
              Salaries & Benefits
              Operating Supplies
              Contractual Services
                                                      11,112

                                                     831,671
                                                               $         11,120

                                                                        842,086
                                                                                  '       11,416

                                                                                         850,000
                                                                                                    '          5,930

                                                                                                            521,837
                                                                                                                          52%
                                                                                                                          NIA
                                                                                                                          61%
                                                                                                                                             11,416

                                                                                                                                           650,000
                                                                                                                                                                                    0%

                                                                                                                                                                                    0%
    5400      Other Expenses                                                                                              NIA
    5700      Capital Outlays                                             1,460                                 242       NIA
    5900      Other Financing Uses                                                                                        NIA
                                           s                                                                                        s
    90000   Project Expenditures
                                                     842,783   $        854,666   $      861,416
                                                                                                    '       528,009       61%              861.416     $                            0%


    5200
    5300
              Operating Supplies
              Contractual Services         '                   $

                                                               $
                                                                                  '
                                                                                  $
                                                                                                    '                     NIA
                                                                                                                          NIA       's                 $




                                           ''
                                                                                                    $                     NIA                          $
                                                                                                                                    s
                                                     842,783   $        854,666
                                                                                  '      861,416
                                                                                                    '       528,009       61%

                                                                                                                                    s
                                                                                                                                           861,416                                  0%
            Available Fund Balance - EOY
                                           '           3,426   $          3,~61   $         3,148
                                                                                                    '
                                                                                                             (74,332)                         3,445    $             297
              City of Muskegon
              Quarterly Budget Reforecast and 2001 Proposed Budget - Non-General Funds
                                                                                                                          Actual As                                       % Change
                                                                                    Original Budget   Actual Thn.i June     %of       Revised Estimate   Change From        From
                                                 Actual 1999         Actual 2000    Estimate 2001           2001          Revised          2001          2001 Original     Original                          Comments
      403     Sidewalk Improvement Fund
              Available Fund Balance - BOY   $        982,400   s          63,295   $      701,009    s        613,738                                   s
              Revenues
                                                                                                                                      '      613,738           (87,271)


               Special assessments           s        200,592   s         459,927   $      450,000    s                               $      450,000     s                       0%
               Federal grants
               State shared revenue
               Charges for services
               Interest income                         67,211              39,198           15,000              10,559                         15,000                            0%
               Operating transfers in                                      97,219          100,000                                            100,000                            0%

'
'-I
               Othec
                                             s        267,803   s
                                                                          826,068
                                                                        1.422,412   s      565,000    $         10,559                $      565,000     s                       0%

      30906   Operating Expenditures
                                             s                  s                   s                                                                    s
      5100
      5200
      5300
                Salaries & Benefits
                Operating Supplies
                Contractual Services
                                                                                                      '                     NIA
                                                                                                                            NIA
                                                                                                                            NIA
                                                                                                                                      $


      5400      Other Expenses                                                                                              NIA
      5700      Capital Outlays                                                                                             NIA
      5900      Other Financin1,1 Uses                734,847             14M14            412,413             128,595      31%              412.413                             0% DEST SERVICE
                                                      734,847                       s                                                                    s
      90000   Project Expenditures
                                             '                  '         143,014          412,413    $        128,595      '1%       $      412.413                             0%


      5200      Operating Supplies                                                  s                                                                    s
      5300
      5400
                Contractual Services
                Other Expenses
                                             '        452,061   '         568,030
                                                                            6,520
                                                                                           850,000    '        184,821
                                                                                                                            NIA
                                                                                                                            22%
                                                                                                                            NIA
                                                                                                                                      $
                                                                                                                                              850,000                            0% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL

      5900      Other Financins: Uses                                     154,405                                9,668      NIA
                                                      452,061                       s                                                                    s
                                             $

                                             '
                                                    1,186,908   ''        728,955
                                                                          871,969   s
                                                                                            850,000
                                                                                          1,262.413   ''       194,489
                                                                                                               323,084
                                                                                                                            23%
                                                                                                                            26%       '
                                                                                                                                      $
                                                                                                                                              850,000
                                                                                                                                            1,262.413
                                                                                                                                                                                 0%


              Available Fund Balance• EOY    $         63,295   $         613,738   s         3,596            301,213                        (83,675} S       (87,271)
                                                                                                      '                               '
                     City of Muskegon
                     Quarterly Budget Reforecast and 2001 Proposed Budget• Non-General Funds
                                                                                                                                 Actual As                                          % Change
                                                                                           Original Budget   Actual Thn.l June     %of       Revised Estimate       Change From       From
                                                        Actual 1999        Actual 2000     Estimate 2001          2001            Revised         2001              2001 Original    Original                            Comments
        404          Public Improvement Fund
                                                    s                  s                                                                     s                  s
                     Available Fund Balance - BOY

                     Revenues
                                                             679,356          1,354,812
                                                                                          '       206,812    $        421.441                        421,441             214,629



                                                    s                  s                                     s                               s                  s
                      Special assessments
                      Property Tax
                      Federal grants
                                                                                          '       570,600
                                                                                                                      300,000                        300,000
                                                                                                                                                     570,600
                                                                                                                                                                         300,000              LDFA II PASS-THRU -TO BE USED FOR SEAWAY INDUSTRIAL PARK
                                                                                                                                                                                           0% EDA GRANT FOR SEAWAY INDUSTRIAL PARK
                      Contributions                                                                 5,D00                                              5,000                               0%
                      Sales of Property                      247,361            148,053           100,000              35,337                        100,000                               0%
                      Interest income                         43,424             51,375            25,000               7,406                         25,000                               0%
                      Operating transfers in                 150,000            220,000           150,000              75,000                        150,000                               0%
'--                   Other
                                                    s
                                                           1,312,964
                                                           1,753,749   s
                                                                                 35,643
                                                                                                  850,600    s                               s                  s
"<::,
        30936         Operating Expenditures
                                                                                455,071
                                                                                          '                           417,743                      US0,600               300,000          35%



                                                    s                  s                                     s                     NIA       s                  s
        5100
        5200
        5300
                         Salaries & Benefits
                         Operating Supplies
                         Contractual Services
                                                                                          '                                        NIA
                                                                                                                                   NIA
        5400             Other Expenses                                                                                            NIA
        5700             Capital Outlays                                                                                           NIA
        5!;1Q9   ________Q_th_~_Elnanci_ng Uses              876,900            105,000           240,000                          0%                240,000                               0% TRANSFERS TO STREETS, WATER, S~Wl:_13_F9R._SEAWAY IP
                                                                       s                                     s                     0%        s                  s
        90000        Project Expenditures
                                                    '        876,900            105,000
                                                                                          '       240,000                                            240,000                               0%


                       Operating Supplies                              s                                     s                     NIA       s                  s
        5200
        $300
        5400
                       Contractual Services
                       Other Expenses
                                                    '         15,779
                                                              31,301
                                                                                696,960   '                             6,690      NIA
                                                                                                                                   NIA
        5700           Caeital Outla~                        154,313            586,482           475,600             438,425      63%               698,568             222,968          47% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
                                                                       s                                     s                               s                  s
                                                    '
                                                    $
                                                             201,393
                                                           1,078,293   s
                                                                              1,283,442
                                                                              1,388,442   ''      475,600
                                                                                                  715,600    s
                                                                                                                      445,115
                                                                                                                      445,115
                                                                                                                                   64%
                                                                                                                                   47%       s
                                                                                                                                                     698,568
                                                                                                                                                     938,568
                                                                                                                                                                         222,968          47%


                     Available Fund Balance - EOY                      s                                     s
                                                    '      1,354,812            421,441
                                                                                           '      341,812             394,069                $       633,473    $        291,661
                  City of Muskegon
                  Quarterly Budget Reforecast and 2001 Proposed Budget - Non-General Funds
                                                                                                                             Actual As                                           % Change
                                                                                       Original Budget   Actual Thru June      %of       Revised Estimate       Change From        From
                                                     Actual 1999        Actual 2000    Estimate 2001           2001           Revised          2001             2001 Original     Original                           Comments
         482      State Grants Fund
                  Available Fund Balance - BOY   $                  $                  $                 $                               $

                  Revenues
                   Special assessments           $                  $                  $                 $                               $
                   State grants                           255,069            275,965        2,335,000               1,018                      1,040,000           (1,295,000}        -55% PROJECT DELAYS. GRANT FUNDS \NILL NOT BE REC'D IN :mo,
                   Federal grants                                             73,386
                   Sales of Property
                   Interest income
                   Operating transfers in                   1,743            601,173          200,000             77,061                         545,000             345,000          173% LOCAL MATCH FROM GOLF COURSE FUND (TRAIL PROJECTS)
....._             Other
                                                 $        256,812            950,524   $    2,535,000             78,079

""       30936    Operating Expenditures
                                                                    '                                    '                               $     1,585,000    $        (950,000)        -37%


         5100       Salaries & Benefits          $                  $                  $
         5200
         5300
                    Operating Supplies
                    Contractual Services
                                                                                                         '                     NIA
                                                                                                                               NIA
                                                                                                                               NIA
                                                                                                                                         $                  $


         5400       Other Expenses                                                                                             NIA
         5700       Capital Outlays                                                                                            NIA
         5900       Other Financin Uses                                                                                        NIA


         90000    Project Expenditures
                                                 $
                                                                    '                  $
                                                                                                         '                     NIA       $


         5200       Operating Supplies           $                  $
         $300
         _;i700
                    Contractual Services
                    Caeital Outla:is
                                                          258,812            950,524
                                                                                       $

                                                                                            2,535,000
                                                                                                         '       664,949
                                                                                                                  77,061
                                                                                                                               NIA
                                                                                                                               NIA
                                                                                                                                $%
                                                                                                                                         $

                                                                                                                                               1,585,000
                                                                                                                                                            $

                                                                                                                                                                     (950,000)        -37% SEE "BUDGETED CAPITAL IMPROVEMENTS' FOR DETAIL
                                                 $        256,812   $        950,524   $    2,535,000    $       742,010       47%       $     1,585,000    $        (950,000)        -37%
                                                 $        258,812   $        950,524   $    2,535,000            742,010       47%             1,585,000

                  AVauable Fund Balance. EOY     $                  $                  $
                                                                                                         '
                                                                                                         $       (663,931}
                                                                                                                                         $

                                                                                                                                         $
            City of Muskegon
            Quarterly Budget Reforecast and 2001 Proposed Budget. Non.General Funds
                                                                                                                                  Actual As                                           % Change
                                                                                           Original Budget   Actual Thru June       %of       Revised Estimate       Change From        From
                                                    Actual 1999        Actua!2000          Estimate 2001          2001            Revised           2001             2001 Origlnal     Original   Comments
    594     Marina & Launch Ramp Fund
            Available Cash Balance - BOY        s         37,205   s         62,225    $           26,725    $           2,292                s         2,292    s         (24,433}

            Revenues
             $pedal assessments                 s                  s                   $                     $                                s                  $
             State grants
             State shared revenue
             Charges for services                        258,159            273,456               270,000            180,946                         270,000                                 0%
             Interest income                               3,915              5,184                 5,000                 365                          5,000                                 0%
             Operating transfers in
             Other                                        13,229             10,797
~                                               $        275,303   s        289,437    $          275,000    $       181,311                  s      275,000     $                           0%



"   70756
    5100
    5200
    5300
            Operating Expenditures
                Salaries & Benefits
                Operating Supplies
                Contractual Services
                                                $         95,973
                                                          12,073
                                                          93,287
                                                                   s         74,283
                                                                             17,771
                                                                            143,006
                                                                                       s            91,579
                                                                                                    10,300
                                                                                                    92,379
                                                                                                             '        40,353
                                                                                                                       1,908
                                                                                                                      41,105
                                                                                                                                    44%
                                                                                                                                    19%
                                                                                                                                    44%
                                                                                                                                              '        91,579
                                                                                                                                                       10,300
                                                                                                                                                       92,379
                                                                                                                                                                 $                           0%
                                                                                                                                                                                             0%
                                                                                                                                                                                             0%
    5400        Other Expenses                               445              2,307                  1,000                469       47%                 1,000                                0%
    5700        Capital Outlays                            1,223              1,350                  4,000                           0%                 4,000                                0%
    5900        Other Financing Uses                      74,545               (841)                                                NIA
                Other Cash Uses {e.g .. Debt
            PrincipaJ)                                    30,900                                                                    NIA
                                                $        246,646   $        237,876    s          199,258    s        83,835        42%       $       199,258    $                           0%
    90000   Project Expenditures
    5200       Operating Supplies               $                  $                   s                     s                      NIA
    5300      Contractual Services                         3,637            111,494                                  171,399        NIA
    5700       Ca ital Outla s                                                                                                      NIA
                                                s          3,637   $        111.494    s                     s       171,399        NIA       $                  $
                                                         250,283            349,370    s          199,258    s       255,234                          199,258

            "Ji.:Va"ffa"ble Cash Balance. EOY
                                                '
                                                $         62,225
                                                                   $

                                                                   $          2,292    s          102,467    $        (_!1,631)
                                                                                                                                    128%      $

                                                                                                                                              $        78,034    $         (24,433)
                  City of Muskegon
                  Quarterly Budget Reforecast and 2001 Proposed Budget - Non-General Funds
                                                                                                                                 Actual As                                       % Change
                                                                                         Original Budget   Actual Thl'1.l June     %of       Revised Estimate   Change From        From
                                                       Actual 1999        Actual 2000    Estimate 2001           2001             Revised          2001         2001 Original     Original                        Comments
          584     Municipal Golf Course Fund
                  Available Cash Balance - BOY     s      1,531,324   $      1,564,213   $     1,108,216   $       1,151,296                 $     1,151,296    $      43,080

                  Revenues
                   Special assessments             s                  $                  s                 $
                   State grants
                   State shared revenue
                   Charges for services
                   lnterest income                           81,345             86,159            40,000              27,388                          40,000                            0%
                   Operating transfers in
                   Other
                                                   s                            86,159   s        40,000
                                                             81,345   $
                                                                                                           '          27,388                 $        40,000    $                       0%


"'
.......   70542
          5100
          5200
                  Operating Expenditures
                     Salaries & Benefits
                     Operating Supplies            '                  $                  s
                                                                                                           '                        NIA
                                                                                                                                    NIA
                                                                                                                                             $                  $

          5300       Contractual Services                     9,208              2,903                                              NIA
          5400       Other Expenses                                                                                                 NIA
          5700       Capital Outlays                                                                                                NIA
          5900       Other Financing Uses                                      496,173          200,000               TT,061       14%               545,000          345,000        173% LOCAL MATCH FOR TRAIL PROJECT GRANTS
                     Other Cash Uses {e.g.. Debt
                  Principal)                                 39.248                                                                 NIA
                                                                      s                  s                                                                      s
          90000   Project Expenditures
                                                             48.456            499.076          200,000
                                                                                                           '          TT,061       14%       $       545,000          345.000        173%


                                                                                                                                                                s
          5200
          5300
          5700
                    Operating Supplies
                    Contractual Services
                    Ca ital Outla s
                                                   '                  $                  $
                                                                                                           '                        NIA
                                                                                                                                    NIA
                                                                                                                                    NIA
                                                                                                                                             $



                                                                      s
                                                                                                           '
                                                   $                                     $                                          NIA      $                  $
                                                   $         48.456   s        499.076   $      200,000    $          n,061        14%       $       545.000

                                                                      s
                  Available Cash Balance• EOY      $      1,564,213          1,151,296   $      948,216
                                                                                                           '       1,101,623                 $       646,296    $    {301,920)
                 City of Muskegon
                 Quarterly Budget Reforecast and 2001 Proposed Budget. Non-General Funds
                                                                                                                               Actual As                                           % Change
                                                                                        Original Budget   Actual Thll.l June     %of       Revised Estimate       Change From        From
                                                      Actual 1999        Actual 2000    Estimate 2001           2001            Revised         2001              2001 Original     Orig_inal                         Comments
         661     Equipment Fund
                 Available Cash Balance. BOY      $        620,607   s        499,092   $      420,818    $        380,984                 s      380,984     s         (39,834)

                 Revenues
                  Special assessments                                s                                    s                                s
                  State grants
                  State shared revenue
                                                  '                                     $                                                                     $


                  Charges for services                   1,670,497          1,950,310        1,900,000             972,779                       1,900,000                                0%
                  Interest income                           30,203             27,193           40,000              11,410                          40,000                                0%
                  Operating transfers in
                  Other                                    159,597            193,377          100,000              66,187                         100,000                                0%
'l..:,                                            $      1,860,297   s      2,170,880   $    2,040,000    $      1,050,376                 $     2,040,000    $                           0%

N        60932
         5100
                 Operating Expenditures
                    Salaries & Benefits           $        388,008            364,899   $      361,498
                                                                     $                                    $        218,413       60%       $      361,498     $                           0%
         5200       Operating Supplies                     469,989            606,768          437,599             317,395       73%              437,599                                 0%
         5300       Contractual Services                   363,568            393,192          431,060             270,975       63%              431,060                                 0%
         5400       Other Expenses                           3,537              3,357            3,000                  431      14%                3,000                                 0%
         5700       Capital Outlays                        679,073            872,983          746,000             177,047       24%              746,000                                 0% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
         5900       Other Financing Uses                                                                                         NIA
                    Other Cash Uses {e.g.. Debt
                 Principal)                                 77,637             47,789                                            NIA
                                                                                                                                                                            -----,%
                                                  $      1,981,812   $      2,288,988   $    1,979,157    $        984,261       50%       s     1,979,1§7    s
         90000   Project Expenditures
         5200      Operating Supplies             $                  $                  $                 s                      NIA       s                  $
         5300      Contractual Services                                                                                          NIA
         5700      Caeital Outla:i-s                                                                                             NIA
                                                  $                  $                  $                 s                      NIA       $                  $
                                                  $      1,981,812   $      2,288,988   $    1,979,157    s        984,261       50%       s     1,979,157

                                                                                                          s
                                                  '
                 Available Cash Balance. EOY               499,092   $        380,984   $      481,661             447,099                 $      441,827     S         (39,834)
              City of Muskegon
              Quarterly Budget Reforecast and 2001 Proposed Budget. Non.General Funds
                                                                                                                            Actual As                                      % Change
                                                                                      Original Budget   Actual Thru June      %of       Revised Estimate   Change From       From
                                                    Actual 1999        Actual 2000    Estimate 2001           2001           Revised          2001         2001 Original    Original                             Comments
      642     Public Service Building Fund
              Available Cash Balance• BOY

              Revenues
                                                '        114,901   $         34,173
                                                                                      '      (287,200) $        (200,038}
                                                                                                                                        '      (200,038) $        87,162


               Special assessments
               State grants
               State shared revenue
                                                '                  $
                                                                                      '                 '
               Charges for services                      379,095            460,000          460,000            278,530                         460,000                             0%
               Interest income                             3,995                               1,000                                              1,000                             0%
               Operating transfers in
               Qthec                                          30                427
                                                         383,120

!::   60442   Operating Expenditures
                                                '                  $        460,427
                                                                                      '      461,000    $       278,530                 $       461,000    $                        0%


                                                                                                                              56%                                                   0%
                                                                                      '
      5100      Salaries & Benefits             $        152,957   $        174,399          168,307    $        93,827                 $       168,307    $
      5200       Operating Supplies                       21,236             19,767           26,950              9,313       35%                26,950                             0%
      5300       Contractual Services                    191,167            215,070          201,416             99,802       50%               201,416                             0%
      5400       Other Expenses                           12,210             10,956           10,000                635        6%                10,000                             0%
      5700       Capital Outlays                          19,747             18,961          150,430             35,224       23%               150,430                             0%   SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
      5900       Other Financing Uses                                                                                         N/A
              Other Cash Uses and Adjustments
                   Debt Principal)                        66,531             (21,076)                                          NIA
                                                s        463,848   s        418,077 $        557,103    $       23M01         43%       $       557,103    $                        0%

      90000   Project Expenditures
      5200      Operating Supplies              $                  $                  $                 $                      N/A      $
      5300      Contractual Services                                        276,561                                            N/A
      5700      Capital Outlays                                                                                                N/A
                                                s                  s        276,561   $                 $                      N/A      $                  $
                                                $        463,848   $        694,638          557,103                          43%

              Available Cash Balanee • EOY      $         34,173   s       (200,038) $
                                                                                      '      {383,303) $
                                                                                                        $       238,801

                                                                                                               {160,309)
                                                                                                                                        $

                                                                                                                                        $
                                                                                                                                                557,103

                                                                                                                                               (296,141) $        87,162
             City of Muskegon
             Quarterly Budget Reforecast and 2001 Proposed Budget - Non-General Funds
                                                                                                                          Actual As                                           % Change
                                                                                     Original Budget   Actual Thru June     %of       Revised Estimate       Change From        From
                                                   Actual 1999        Actual 2000    Estimate 2001          2001          Revised          2001              2001 Original     Original    Comments
     643     Engineering Services Fund
             Available Cash Balance. BOY       $         83,696   s         86,178   $      176,286    $       117,697                $       117,697    $         (58,589)

             Revenues
              Special assessments              $                  s                  $                 $                              $                  $
              State grants
              State shared revenue
              Charges for seri.riees                    472,211            478,738          620,000            248,826                       620,000                                  0%
              Interest income                             4,364              5,749           25,000              2,767                        25,000                                  0%
              Operating transfers in
              Other                                      29,171             24,762                                 197
                                               $        505,746   s        509,249   $      645,000    $       251,790                $    - 64s:ooo --s                              0%


""
~    60447
     5100
     5200
             Operating Expenditures
                 Salaries & Benefits
                 Operating Supplies
                                               $        372,095
                                                         15,050
                                                                  s        348,155
                                                                            15,188
                                                                                     $      459,501
                                                                                             19,005
                                                                                                       $       182,640
                                                                                                                10,026
                                                                                                                            40%
                                                                                                                            53%
                                                                                                                                      $      459,501
                                                                                                                                              19,005
                                                                                                                                                         $                            0%
                                                                                                                                                                                      0%
     5300        Contractual Services                    75,587            107,040          130,602             61,348      47%              130,602                                  0%
     5400        Other Expenses                           3,109              3,964            4,200              1,790      43%                4,200                                  0%
     $700        Capital Outlays                         10,585             22,025           24,000             10,857      45%               24,000                                  0%
     5900        Other Financing Uses                                                                                       NIA
             Other Cash Uses and Adjustments
             e_,g_,,__l?!l_~t_.f'~rifip~I)               21,412             19,413                                          NIA
                                               $        497,838   $        476,959   $      637,308    $       266,661      42%       $      637,308     $                            0%

     90000   Project Expenditures
     5200       Operating Supplies             $                  $                  $                 $                    NIA       $                  $
     5300       Contractual Seri.rices                    5,426                771                                 378      NIA
     5700       Ca ital Outla s                                                                                             NIA
                                               $          5,426   $           771    $                 $           378      NIA       $                  §_
                                               $        503,284   $        4n,730    $      637,308    $       267,039      42%       $      637,308

             Available Cash Balance - EOY      $         86,178   $        117,697   $      18S,978    $       102,448                $       125,389    $         (58,589}
              City of Muskegon
              Quarterly Budget Reforecast and 2001 Proposed Budget. Non-General Funds
                                                                                                                           Actual As                                           % Change
                                                                                      Original Budget   Actual Thru June     %of       Revised Estimate       Change From        From
                                                    Actual 1999        Actual 2000    Estimate 2001           2001         Revised           2001             2001 Original     Original                          Comments
      677     General Insurance Fund
              Available Cash Balance - BOY      s        963,422   $      1,193,782   $     1,139,024   $       935,251                $       935,251    $        (203,773)

              Revenues
               Special assessments              $                  $                  $                 $                              $                  $
               State grants
               State shared revenue
               Charges for services                    2,081,027          1,978,797         2,170,000         1,147,068                      2,170,000                                0%
               Interest income                            39,317             55,393            40,000            18,041                          40,000                               0%
               Operating transfers in                  1,110,799            784,995         1,100,000                                        1,100,000                                0%
               Other                                       4,801            117,275            75,000                                            75,000                               0%
~                                               $      3,235,944   $      2,936,460   $     3,385,000   $     1,165,109                $     3,385,QQQ______! __                      0%
If\   30851   Operating Expenditures
      5100       Salaries & Benefits            $        400,953   $          5,712            52,354   $        16.419      31%                52,354    s                           0% NEW POSITION   WC/RISK MANAGER
      5200       Operating Supplies                          510                475             1,000               479      48%                 1,000                                0%
      5300       Contractual Services                  2,684,902          3,072,981         3,365,165         1,673.436      50%             3,365,165                                0%
      $400       Ottier Expenses                              50                461             1,500              1,444     96%                 1,500                                0%
      5700       Capital Outlays                                                                1,000                         0%                 1,000                                0%
      $900       Other Financing Uses                                                                                         NIA
              Other Cash Uses and Adjustments
                   Debt Principal)                       (80,831)           115,362                                          NIA
                                                $      3,005,584 $        3,194,991   $     3,421,019   $     1,691,778      49%       $     3.421,019    $                           0%

      90000   Project Expenditures
      5200       Operating Supplies             $                  $                  $                 $                    NIA       $                  $
      5300       Contractual Services                                                                                        NIA
      5700       Ca ital Outla s                                                                                             NIA
                                                $                  $                  $                 $                    NIA       $                  $
                                                $      3,005,584   $      3,194,991   s     3,421,019   $      1,691,778     49%       $     3,421,019

              Available Cash Balance • EOY      $      1,193,782   $        935,251   $     1,103,005   $    --~5~~                    $       899,232
             City of Muskegon
             Quarterly Budget Reforecast and 2001 Proposed Budget - Non-General Funds
                                                                                                                                Actual As                                           % Change
                                                                                           Original Budget   Actual Thru June     %of       Revised Estimate       Change From        From
                                                     Actual 1999        Actwal2000         Estimate 2001           2001         Revised           2001             2001 Original     Orif!inal                               Comments
     591     Water Fund
             Available Cash Balance - BOY        s        839,769   s      6,094,347   $        5,325,121    s     5,992,941                                   s
             Revenues
                                                                                                                                            '     5,982,941             657,820


              Special assessments                s                  s                  $                     s                                                 s
              State grants
              State shared revenue
                                                                                                                                            '
              Charges for services• City                3,139,639          3,531,540            3,200,000           1,021,671                     3,200,000                                0%
              Charges for services - Township                                                     420,000              19,299                       420,000                                0%
              Hydrant Rental- Township
              Interest income                             248,487           320,696               140,000            143,864                        140,000                                0%
              Operating transfers in                       77,155                                  54,000                                            54,000                                0%     EDAS54M
              Other                                     9,537,128             84,101                                   92,137
                                                 s     13,002,409   s      3,936,337            3,814,000    s                                                 s
     30548   Operating Expenditures Administration
                                                                                       '                            1,275,971               $     3,814,000                                0%


     5100       Salaries & Benefits             s                   s                                        s                                                 s
     5200
     5300
                Operating Supplies
                Contractual Services                      375,765           359,581
                                                                                       '          478,667            254,674
                                                                                                                                  NIA
                                                                                                                                  NIA
                                                                                                                                  53%
                                                                                                                                            $

                                                                                                                                                   478,667                                 0%     INSURANCE:ilNDIRECT COSTS/UTILITY ADMININISTI'!ATION FEE
     5400       Other Expenses                                                7,431                                               NIA
     5700       Capital Outlays                                45                45                                               NIA
     5900       Other Financing Uses                      409,391           495,727               449,405               5,349      1%              449,405                                 0%     INTEREST
             Other Cash Uses and Adjustments
             {e.g.. Debt Princieal)                     3,722,862            302,213              370,000                          0%               370,000                                0%     ?RINCIF>AL
                                                        4,508,063   s                                        s                                                 s
     60559
                                                 '
             Operating Expenditures Maintenance - City
                                                                           1,164,997
                                                                                       '        1,298,072            260,023      20%
                                                                                                                                            '     1.298,072                                0%


     5100      Salaries & Benefits            s        655,282      s       698,628    $          550,690    s       346,206      63%       s      550,690     s                           0%
¾    5200      Operating Supplies                       97,019              237,969               100,200             57,514      57%              100,200                                 0%

"'   5300
     5400
     5700
     5900
               Contractual Services
               Other Expenses
               Capital Outlays
               Other Flnarit;!_ng L!ses ._
                                                       233,897
                                                       125,838
                                                        21,693
                                                                            293,031
                                                                             71,680
                                                                              5,129
                                                                                                  258,933
                                                                                                   60,000
                                                                                                   14,400
                                                                                                                     149,115
                                                                                                                       8,179
                                                                                                                       3,116
                                                                                                                                  $8%
                                                                                                                                  14%
                                                                                                                                  22%
                                                                                                                                  NIA
                                                                                                                                                   258,933
                                                                                                                                                    60,000
                                                                                                                                                    14,400
                                                                                                                                                                                           0%
                                                                                                                                                                                           0%
                                                                                                                                                                                           0%

                                                     1,133,729      s      1,306.436              984,223    s                              s
     60660
                                                 '
             Operating Expenditures Maintenance. Township
                                                                                       $                             564,130      57%              984,223
                                                                                                                                                               '                          - Q!o


     5100      Salaries & Benefits                                  s                             256,855    s                              s
     5200
     5300
               Operating Supplies
               Contractual Services
                                                 '                             3,190
                                                                                863
                                                                                 47
                                                                                       '           11,900
                                                                                                  113,002
                                                                                                                      84,659
                                                                                                                         695
                                                                                                                      47,857
                                                                                                                                  3'%
                                                                                                                                   6%
                                                                                                                                  42%
                                                                                                                                                   256,855
                                                                                                                                                    11,900
                                                                                                                                                   113,002
                                                                                                                                                               $                           0%
                                                                                                                                                                                           0%
                                                                                                                                                                                           0%
     5400      Other Expenses                                                                     151,420                443      0%               151,420                                 0%
     5700      Capital Outlays                                                                      4,350                         0%                 4,350                                 0%
     5900      Other Financing Uses                                                                                               NIA
                                                                    s          4,100              537,527                                   s
     60558   Operating Expenditures Filtration
                                                 '                                     $
                                                                                                             '       133,654      25%              537,527     $                           0%


     5100      Salaries & Benefits                        459,135   s
     5200
     5300
               Operating Supplies
               Contractual Services
                                                 '        122,342
                                                          312,641
                                                                            469,642
                                                                            121,252
                                                                            285,375
                                                                                       $          4TT,607
                                                                                                  101,815
                                                                                                  399,800
                                                                                                             $       222,918
                                                                                                                      43,287
                                                                                                                     180,578
                                                                                                                                  47%
                                                                                                                                  43%
                                                                                                                                  45%
                                                                                                                                            '      4TT,607
                                                                                                                                                   101,815
                                                                                                                                                   399,800
                                                                                                                                                               $                           0%
                                                                                                                                                                                           0%
                                                                                                                                                                                           0%
     5400      Other Expenses                               2,684             3,546                 4,150                865      21%                4,150                                 0%
     5700      Capital Outlays                             55,608            27,339                                   46,901      NIA
     5900      0th~ financing Uses                                                                                                NIA
                                                 s        952.410           907,154               983,372            494,549                                                               0"&
     90000   Project Expenditures
                                                                    '                  '                     '                    50%
                                                                                                                                            '      983,372     $


     5200                                        s          4,159                                                                                              s
     5300
     5700
               Operating Supplies
               Contractual Services
               Capital Outlays
                                                          248,251
                                                          901,219
                                                                    '       665,056
                                                                                       $
                                                                                                3,545,810    '       108,031
                                                                                                                                  NIA
                                                                                                                                   3%
                                                                                                                                  NIA
                                                                                                                                             '    3,117,436             (428,374)        -12% SE:E: "BUOGETEP CAPITAL IMPROVEMENTS" FOR PETAIL

                                                        1,153,629   s        665,056            3,545,810                          3%
                                                                                       '                     $       108,031                      3,117,436

                                                                                                                                            ''                 '        (428,374)        -12%
                                                        7,747,831   s      4,047,743   $        7,349,004    $     1,560,387      23%             6,920,630

             Available Cash Balance. EOY                6,094,347          5,982,941
                                                 $
                                                                    '                  '        1,790,117
                                                                                                             '     5,698,525
                                                                                                                                             '    2,876,311    $       1,086,194
                 City of Muskegon
                 Quarterly Budget Reforecast and 2001 Proposed Budget• Non-General Funds
                                                                                                                               Actual As                                          % Change
                                                                                          Original Budget   Actual Thru June     %of       Revised Estimate       Change From        From
                                                       Actual 1999         Actual 2000    Estimate 2001          2001          Revised           2001             2001 Original    (!~ginal                           Comments
         590     Sewer Fund
                 Available Cash Balance. BOY       $        405,280             787,448          482,811                                                      s
                 Revenues
                                                                      $
                                                                                          '                 '     1,445,721                $     1,445,721             962,910


                  Special assessments              $                                                                                                          s
                  State grants
                  State shared revenue
                                                                      '                   '                 $                              $


                  Charges for services                    3,649,614           3,989,052        4,200,000          1,118,982                      4,200,000                               0%
                  Interest income                            27,684              54,362           40,000             34,292                         40,000                               0%
                  Operating transfers ln                     87,474                               46,000                                            46,000                               0% EDA$46M
                  Othec                                      62,881              45,967           30,000             24,825                         30,000                               0%
                                                          3,827,653   $       4,089,381   $    4,316,000    s     1,178,079                      4,316,000

         30548   Operating Expenditures Administration
                                                                                                                                           '                  $                          0%


         5100
         5200
         5300
                    Salaries & Benefits
                    Operating Supplies
                    Contractual Services
                                                    $

                                                            278,848
                                                                      '         269,957
                                                                                          '      683,849
                                                                                                            $

                                                                                                                    169,437
                                                                                                                                 NIA
                                                                                                                                 NIA
                                                                                                                                 25%
                                                                                                                                           '      683,649
                                                                                                                                                              $

                                                                                                                                                                                         0% INSURANCE/INDIRECT COSTS/UTILITY ADMININISTRATION FEE
         5400       Other Expenses                            3,060              13,098                                          NIA
         5700       Capital Outlays                              45                  45                                          NIA
l1,.:,   5900       Other Financing Uses                    237,637             216,776          197,228                         0%                197,228                               0% INTEREST
'-l              Other Cash Uses and Adjustments
                 1e.9 .. Debt Princieal)                    191,244             714,61g          400,051                          0%               400,051                               0% _e_Rli'JCIPAL
                                                            710,834           1,214,495        1,280,928            169,437

         60559   Operating Expenditures Maintenance
                                                   '                  '                   '                 $                    13%
                                                                                                                                           '     1,280,928    $                          0%


         5100      Salaries & Benefits                      523,428             551,757          689,031                                                      s
         5200
         5300
                   Operating Supplies
                   Contractual Services
                                                   '         48,439
                                                          1,561,003
                                                                      '          50,955
                                                                              1,346,297
                                                                                          '       55,252
                                                                                               1,737,935
                                                                                                            $       314,419
                                                                                                                     17,169
                                                                                                                    746,629
                                                                                                                                46%
                                                                                                                                 31%
                                                                                                                                43%
                                                                                                                                           '       689,031
                                                                                                                                                    55,252
                                                                                                                                                 1,737,935
                                                                                                                                                                                         0%
                                                                                                                                                                                         0%
                                                                                                                                                                                         0%
         5400      Other Expenses                             2,617               3,992            2,800              1,170     42%                  2,800                               0%
         5700      Capital Outlays                              334               8,380           15,000             16,666     111%                15,000                               0%
         5900      Other Financing Uses                                                                                          NIA
                                                   s      2,135,821           1,961,381        2,500,018    s      1,096,053     44%

         90000   Project Expenditures
                                                                      '                   '                                                '     2,500,018    $                          0%


         5200       Operating Supplies                                                                      s                              s                  s
         5300
         5700
                    Contractual Services
                    Capital Outlays
                                                   '        598,830   '         255,232   '      490,000             11,196
                                                                                                                                 NIA
                                                                                                                                  1%
                                                                                                                                 NIA
                                                                                                                                                  954,374              464,374         95% SE'.'E "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL

                                                   s        598,830             255,232          490,000    s                     1%       s
                                                   s      3,445,485   ''      3,431,108
                                                                                          $
                                                                                          $    4,270,946    $
                                                                                                                      11,196
                                                                                                                   1,276,686     27%       $
                                                                                                                                                   954,374
                                                                                                                                                 4,735,320
                                                                                                                                                              $        464,374         95%


                                                   s                                      s                 s
                 Available Cash Balance - EOY               787,448
                                                                      '       1,445,721          527,865          1,347,114                $     1,026,401    $        498,536
      City of Muskegon
      Quarterly Budget Reforecast and 2001 Proposed Budget
      Budgeted Capital Improvements


                                                                                                               1st Quarter       2nd Quarter
                                                                                                Original
                                                                        Responsibility                             Budget            Budget                              Comments
                                                                                                Budget
                                                                                                               Reforecast         Reforecast



                                                                                  2001 PROJECTS
       1fil   General Fund
      99015   City Hall Tuckpointing                                       AI-Shatel      $      25,000    $      32,000     $       47,000    Addl'I Wor!( BeITTg Done Due to Favorable cemetery Bids (see 99019)
      90023   Police Department Parklng Lot                                AJ-Shatel             35,000           28,000             28,000                              Favorable Bids
      90012 Stom,water Management Mandates                                   Kuhn                50,000           50,000             50,000
      90024 Treasury Management Software                                     Smith               35,000           35,000             35,000
      99012 Geographic Information System (GIS)                             Maurer               25,000           25,000             25,000
      99019 Restlawn Office Renovation (Phase I)                             Scott               75,000           75,000             60,000                              Favorable Bids
                                                                                               245,000           245,000            245,000

       ,IQ!   Public: lmormremMt fund
      99020 Seaway-Hackley Industrial Park Property Acquisition         Brubaker-Clarke        425,600           425,600           650,000             Property Acquismon Costs Higher than Anticiapted'

              Fire Inspector's Car                                         Simpson              25,000            24,284             24,284
              Fire Chiefs Car                                              Simpson                                24,284             24,284
              Hovercraft                                                   Simpson              25,000
                                                                                                           ---
                                                                                               475,600           474,168           698,568

~      w.     Maior Streets


""'   90020
      99035
      97036
              Barney, Valley to Roberts
              Sherman, Glenside to Lincoln
              Laketon, Wood to Peck
                                                                           Al-Shale!
                                                                           AI-Shate!
                                                                           Al-Shale[
                                                                                               300,000
                                                                                               850,000
                                                                                                                 300,000
                                                                                                                 850,000
                                                                                                                                   300,000
                                                                                                                                   850,000                              $560,000 Grant
                                                                                               350,000           350,000           450,000               $150,000 Grant; Costs Higher Than Anticipated
      90011   Barclay, Sherman to Hackley                                  AI-Shatel           600,000           600,000           600,000                              $366,000 Grant
      90019   Division, Laketon to Southern (1535')                        AI-Shatel           200,000             8,000              8,000           Project cancelled • Special Assessment Not Approved
      96017   Shoreline Dr (incl Terrace Extension, Spring & Western)      AI-Shatel           300,000           300,000            50,000                Significant Costs Wonl be Incurred Until 2002
      96059   Handicap Sidewalk Ramps                                      AI-Shatel            50,000            50,000            50,000
              State's Job (US31 and Bridges/City Share)                    AI-Shatel           125,000                                                           ProJec:ts 90033/90036 (Below)
      90036   M120 - Over Muskegon River                                   AI-Shatel                             100,000           100,000
      90033   Marquette Over US31                                          AI-Shatel                              11,000             11,000
      90021   Sixth, Houston to Muskegon                                   AI-Shatel            85,000                                                Project Cancelled - Special Assessment Not Approved
      90034   Houston, Sanford to First                                    AI-Shatel                             120,000           120,000                   Replaces Sixth, Houston to Muskegon
      98042   RR Crossing Removals                                         Al-Shale!                              77,000            77,000                        $36,000 State Grant Funding
      99020   Seaway-Hackley Industrial                                    Al-Shale!           i00,000           100,000           100,000                            $70,000 EDA Grant
                                                                                              2,960,000        2,866,000          2,716,000


       m      Local Streets
      99048   Winsdor, Barclay to Henry                                   AI-Shatel            250,000           210,000           210,000
              Unspecified Projects                                        AI-Shatel            300,000
      90015   Millard, Lake Dunes to West End                             AI-Shatel                               13,000            13,000           Project Cancelled- Special Assessment Not Approved
      90018   Nelson, Waton & Rogers                                      AI-Shatel                              210,000           210,000
      99020   Seaway-Hackley Industrial                                   AI-Shatel            100,000           100,000           100,000                            570,000 EDA Grant
      98042   RR Crossing Removals                                        AI-Shatel                               69,000            69,000                       528,000 State Grant Funding
      96059   Handicap Sidewalk Ramps                                     AI-Shatel             !;iQ QQQ          §Q QQQ            §Q OQQ
                                                                                               700,000           652,000           652,000
    City of Muskegon
    Quarterly Budget Reforecast and 2001 Proposed Budget
    Budgeted Capital Improvements


                                                                                           1st Quarter       2nd Quarter
                                                                               Original
                                                       Responsibility                          Budget            Budget    Comments
                                                                               Budget
                                                                                           Reforecast        Reforecast




                                                                2001 PROJECTS
     §!Z    pub[ic Service BuiJdinq
    99040   Public Service Building Renovation             Kuhn               130,000        130,000            130,000


     ID     Eauioment Fund
            Patrol Car Replacements (6)                    Kuhn               129,000        129,000            129,000
            Plow Truck Replacements (1)                    Kuhn                70,000         70,000             70,000
            Sign Truck (1)                                 Kuhn                25,000         25,000             25,000
            Vactor Truck (1)                               Kuhn               175,000        175,000            175,000
            Pickup Trucks 3/4 Ton (4)                      Kuhn                72,000         72,000             72,000
            BoxPaver(1)                                    Kuhn                40,000         40,000             40,000
            Loader 721 (1)                                 Kuhn                70,000         70,000             70,000
            Backhoe Hoe 4x4 Replacement (1)                Kuhn                40,000         40,000             40,000
            Sunbird Cars (4)                               Kuhn                45,000         45,000             45,000
            Radios and Various Other Minor Equipment       Kuhn                80,000         80,000             80,000

~                                                                             746,000        746,000            746,000

                                                                        $   10,092,410 $   9,982,410     $   10,060,810
                   Commission Meeting Date: July 24, 2001

Date:         July 12, 2001
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic DevelopmentCft~
RE:           DDA Plan Amendment


SUMMARY OF REQUEST:

To approve the attached resolution setting a public hearing on August 28, 2001, for the
consideration of amending the Downtown Development Authority Development and
Tax Increment Financing Plans. The proposed amendment shall remove the former
Teledyne property (Muskegon SmartZone) from the DDA development area. The
proposed action is consistent with and necessary for the establishment of the
Muskegon Lakeshore SmartZone LDFA.

FINANCIAL IMPACT:

The DDA currently loses more than $14,000 in tax increment revenue annually due to a
decreased assessed value on the Teledyne Property. Removing the property will
result in additional tax increment revenues for the DDA.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the attached resolution

COMMITTEE RECOMMENDATION:

The Muskegon Downtown Development Authority, at its regular meeting on July 17,
2001, approved a resolution to amend the Development and Tax Increment Financing
Plan.




7/12/2001
                             City of Muskegon
                       County of Muskegon, Michigan
                               2001-88(f)
                 RESOLUTION CALLING PUBLIC HEARING
    REGARDING AMENDMENT TO DOWNTOWN DEVELOPMENT PLAN AND TAX
                    INCREMENT FINANCING PLAN OF
            MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY


       Minutes of a regular meeting of the City Commission of the City of Muskegon, County

of Muskegon, Michigan, held in the City Hall in said City on the 24th day of July, 2001, at 5:30

o'clock p.m., prevailing Eastern Time.

PRESENT:       Members      Aslakson, Benedict, Nielsen, Schweifler, Shepherd,

          S ataro

ABSENT:        Members      Sieradzki

       The following preamble and resolution were offered by Commission Member

__S~p_a_t_a_r_o_ _ _ _ _ _ and supported by Commission Member          Schwe i fl er

       WHEREAS, the City of Muskegon (the "City") is authorized by the provisions of Act

197, Public Acts of Michigan, 1975, as amended ("Act 197"), to create a downtown development

authority and to designate its boundaries; and

       WHEREAS, pursuant to Act 197, the City Commission of the City duly established the

Muskegon Downtown Development Authority (the "Authority") which exercises its powers

within the Downtown District designated by the City Commission (the "District"); and

       WHEREAS, the City Commission approved the Authority's Downtown Development

Plan and Tax Increment Finance Plan (the "Plan"), for the Development Area described in the

Plan on July 12, 1988, pursuant to Ordinance No. 969; and

       WHEREAS, the City Commission approved amendments to the Plan on March 31, 1989

(the "1989 Amendment") pursuant to Ordinance No. 982; and
        WHEREAS, the Authority approved a resolution amending the development plan (the

"Plan Amendment") for the purpose of removing several parcels from the development area to

further encourage economic growth and correcting and preventing deterioration in the business

portions of the District; and

        WHEREAS, it is necessary to conduct a public hearing m connection with the

consideration of such Plan Amendment as required by Act 197.

       NOW, THEREFORE, BE IT RESOLVED THAT:

        1.     The City Commission determines that it is necessary for the best interests of the

public to amend the development plan of the Authority pursuant to Act 197 in order to correct

and prevent deterioration of property value in the business district in the City and to promote

economic growth, and the City Commission hereby declares its intention to adopt the Plan

Amendment.


       2.      There shall be a public hearing on Tuesday, the 28th day of August, 2001, at 5:30

o'clock, p.m., prevailing Eastern Time, in the City Hall in the City to consider adoption by the

City Commission of an ordinance amending the AUTHORITY boundaries.

       3.      The City Clerk shall cause notice of said public hearing to be published in the

Muskegon Chronicle, a newspaper of general circulation in the City, twice before the public

hearing, each time not less than 20 and not more than 40 days before the date set for the public

hearing. The notice shall be published as a display advertisement prominent in size. The Clerk

shall also cause the notice to be mailed by first class mail not less than 20 days prior to the

hearing to all property taxpayers of record in the proposed authority district as shown by the

most recent tax roll of the City, shall cause the notice to be mailed to the governing body of each

taxing jurisdiction levying taxes subject to capture by the Authority, and shall cause the notice to



                                                -2-
be posted in 20 prominent places in the proposed amended district not less than 20 days prior to

the date of hearing.

       4.      The notice of the hearing shall be in substantially the following form:




                                               "3 "
                               NOTICE OF PUBLIC HEARING

                                CITY OF MUSKEGON
                           COUNTY OF MUSKEGON, MICIDGAN


    ON AN AMENDMENT TO THE DOWNTOWN DEVELOPMENT PLAN AND TAX
                   INCREMENT FINANCING PLAN OF
          THE MUSKEGON DOWNTOWN DEVELOPMENT AUTHORITY


TO ALL INTERESTED PERSONS IN THE CITY OF MUSKEGON:

        PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Michigan,
will hold a public hearing on Tuesday, the 28th day of August, 2001, at 5:30 o'clock, p.m.,
prevailing Eastern Time in the City Commission Chambers, 933 Terrace Street, Muskegon,
Michigan, to consider the adoption of an ordinance amending the development plan of the
Downtown Development Plan and Tax Increment Finance Plan of the Muskegon Downtown
Development Authority pursuant to Act 197 of the Public Acts of Michigan of 1975.

       The boundaries of the development area to which the Plan applies are as follows:

              All of those properties lying SEly of Muskegon Lake and NWly of
              the following Streets in the City of Muskegon: Beg at Muskegon
              Lake and extension of Southern Avenue SE!y to Lakeshore Drive
              NE!y to Michigan Avenue, Ely a distance of three blocks to
              Hudson Street, Sly one block to Washington Avenue, Ely on
              Washington three blocks to Beidler St., Nly to Webster Avenue,
              NEly along Webster to Ninth Street, SEly on Ninth to Muskegon
              Avenue, NEly on Muskegon Avenue a distance of four blocks to
              Fifth Street, SEly on Fifth to Houston Avenue, NEly on Houston to
              Fourth Street, SEly on Fourth to Strong Avenue, NEly on Strong
              one block to Jefferson Street, Nly on Jefferson to Houston Avenue,
              Ely on Houston to Peck Street, Nly on Peck to Apple Avenue, Ely
              on Apple to Fork Street, Nly on Fork to Myrtle, NEly to Emerald
              Avenue, NWly on Emerald to Eastern Avenue, Wly on Eastern to
              EB Seaway Drive, NEly on EB Seaway to Bayou, NWly on Bayou
              to WB Seaway Drive, NEly to S branch of Muskegon River, NWly
              to Ottawa Street, SWly on Ottawa to River Street, Wly to
              Muskegon Lake.




                                             -4-
       Copies of the proposed amendments to the Development and Tax Increment Finance
Plan, maps, etc. are on file at the office of the City Clerk for inspection.


        At the public hearing, all citizens, taxpayers, and property owners of the City of
Muskegon desiring to address the City Commission shall be afforded an opportunity to be heard
in regard to the approval of the amendments to the Development and Tax Increment Finance
Plan for the Muskegon Downtown Development Authority.

       FURTHER INFORMATION may be obtained from the City Clerk at (231) 724-6705.

       This notice is given by order of the City Commission of the Ci~   Jf Muskegon, Michigan.
                                                   rjo.,1_,Q ~~
                                                  Clerk, City of Muskegon




                                            -5-
         5.        All resolutions and parts ofresolutions insofar as they conflict with the provisions

of this resolution be and the same hereby are rescinded.

AYES:              Members     Spataro, As l ak son , Bened ict, Nielsen, Schwe ifler,

              She herd ·

NAYS:              Members - None
                             ~ ~ - - - - - - - - - - - - - - - - - - -- - -
RESOLUTION DECLARED ADOPTED.




         I hereby certify that the foregoing is a true and complete copy of a resolution adopted by

the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a

regular meeting held on July 24, 2001, 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

kept and will be or have been made available as requirL ,AQ                  ~                j.,J

                                                         City Clerk                       j
DELIB:2113553.1\025632-00013




                                                   -6-
                   Commission Meeting Date: July 24, 2001

Date:         July 12, 2001
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development c.-fk/
RE:           Resolution of Intent to Create Seaway Industrial Park LDFA


SUMMARY OF REQUEST:

To approve the attached resolution of intent calling a public hearing regarding the
establishment of an LDFA District for the development of the Seaway Business Park.
This request is the first step in the creation of the Seaway Business Park LDFA.
(Please see the attached timeline for the establishment of the Seaway Business Park
LDFA.)

FINANCIAL IMPACT:

It is anticipated that the LDFA may capture up to an estimated $900,000 in tax
increment revenues over a period of 15 years.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the attached resolution

COMMITTEE RECOMMENDATION:

None




7/12/2001
         Seaway Industrial Park- LDFA District Establishment Process

I.   Resolution of Intent to Create District (sets date for public hearing)-July 24

2.   Public Hearing Date -August 28

3.   Approval of Resolution Establishing District - November 13
     (not less than 60 days from public hearing)

4.   Filing of Resolution Establishing District w/ Secretary of State and Publishing Resolution in
     Newspaper of General Circulation - November 14
                                 City of Muskegon
                           County of Muskegon, Michigan
                                   2001-SS(g)
                    RESOLUTION OF INTENT CALLING HEARING
                        REGARDING CREATION OF A NEW
                LOCAL DEVELOPMENT FINANCE AUTHORJTY DISTRJCT



       Minutes of a regular meeting of the City Commission of the City of Muskegon, County

of Muskegon, Michigan, held in the City Hall in said City on the 24th day of July, 2001, at 5:30

o'clock p.m., Eastern Daylight Time.

PRESENT:Members           As l akson, Benedict, Niel sen, Schwei fl er, Shepherd,

 S ataro

ABSENT:Members- - ~
                  Sieradzki
                     ~~~---------------------
       The following preamble and resolution were offered by Commission Member

__S_c_h_w_e_i_f_le_r_ _ _ _ _ and supported by Commission Member        Spataro

       WHEREAS, the City of Muskegon (the "City") is authorized by the provisions of Act

281, Public Acts of Michigan, 1986, as amended ("Act 281"), to create a local development

finance authority; and

       WHEREAS, the City has previously established the Local Development Finance

Authority of the City of Muskegon (the "LDF A") which exercises its powers within its district

(the "District") pursuant to Act 281; and

       WHEREAS, it is necessary for the best interests of the public to create a new district, the

Seaway Business Park, to be known as LDFA District 4 (the "District") to promote economic

growth in the City; and

       WHEREAS, a proposed resolution creating the new District is being prepared; and
          WHEREAS, it is necessary to conduct a public hearing m connection with the

consideration of such proposed resolution as required by Act 281.

          NOW, THEREFORE, BE IT RESOLVED THAT:

          1.    The City Commission determines that it is necessary for the best interests of the

public to create the new District in order to eliminate the causes of unemployment,

underemployment and joblessness and to promote economic growth in the City.

          2.   The new District subject to the jurisdiction of the LDFA as provided in Act 281 is

hereby tentatively designated to be as set forth in Exhibit A attached hereto and made part

hereof.

          3.   There shall be a public hearing on Tuesday, the 28th day of August, 2001, at 5:30

o'clock, p.m., Eastern Daylight Time, in the City Hall in the City to consider adoption by the

City Commission of a resolution creating the new LDFA District in which the LDF A shall have

jurisdiction, and setting out certain procedures in connection therewith.

          4.   The City Clerk shall cause notice of said public hearing to be published in the

Muskegon Chronicle, a newspaper of general circulation in the City, twice before the public

hearing. The notice shall be published not less than 20 and not more than 40 days before the date

set for the public hearing. The notice shall be published as a display advertisement prominent in

size. The Clerk shall also cause the notice to be mailed by first class mail not less than 20 days

prior to the hearing to all property taxpayers of record in the proposed authority district as shown

by the most recent tax roll of the City and to the governing body of each taxing jurisdiction

levying taxes that would be subject to capture by the LDF A.

          5.   The notice of the hearing shall be in substantially the following fo1m:




                                                -2-
                               NOTICE OF PUBLIC HEARING

                               CITY OF MUSKEGON
                          COUNTY OF MUSKEGON, MICHIGAN


                    ON THE CREATION OF A NEW DISTRICT OF THE
                     LOCAL DEVELOPMENT FINANCE AUTHORITY


TO ALL INTEREST PERSONS IN THE CITY OF MUSKEGON:

       PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Michigan,
will hold a public hearing on Tuesday, the 28th day of August, 2001, at 5:30 o' clock, p.m.,
Eastern Daylight Time, in the City Hall, 933 Te1Tace Street, Muskegon, Michigan, to consider
the adoption of a resolution creating a new authority district, the Seaway Business Park, to be
known as LDFA District 4, for the Local Development Financing Authority of the City of
Muskegon, pursuant to Act 281 of the Public Acts of Michigan of 1986, as amended.

                                 PROPOSED BOUNDARIES

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

              Southeast¼ of the Northwest¼, Section 31, Town 10 No1th, Range 16 West,
              City of Muskegon, Muskegon County, Michigan


              Physical Boundaries: Park Street on the West, Hackley Avenue on the South,
              Seaway Drive on the West, and Young Avenue on the North.


      At the public hearing, all citizens, taxpayers, and property owners of the City of
Muskegon desiring to address the City Commission shall be afforded an opportunity and the
bom1daries of the proposed authority district.

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



                                                     ~ a~~r--
       This notice is given by order of the City Commission of the Ciry o: ~skegon, Michigan.


                                                   Clerk, City of Muskegon




                                             -3-
       6.      All resolutions and paiis of resolutions insofar as they conflict with the provisions

of this resolution be and the same hereby are rescinded.

AYES: Members        Spataro, Aslakson, Benedict, Nielsen, Schweifler, Shepherd



NAYS: Members        None
                  ---------------------------
RESOLUTION DECLARED ADOPTED.



                                                      ~ oi~~~
                                                     City Clerk




                                               -4-
          I hereby ce1tify that the foregoing is a true and complete copy of a resolution adopted by

the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a

regular meeting held on July 24, 2001, 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

kept and will be or have been made available as required by said Act.


                                                         LO. iln~r
                                                      City Clerk




DELIB:2247213 .1\063684-00O24




                                                -5-
                  Commission Meeting Date: July 24, 2001

Date:         July 12, 2001
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development           MC.
RE:           Resolution of Intent to Create Smartzone LDFA


SUMMARY OF REQUEST:

To approve the attached resolution of intent calling a public hearing regarding the
establishment of an LDFA District for the development of the Muskegon Lakeshore
SmartZone. This request is the first step in the creation of the SmartZone. (Please
see the attached timeline for the establishment of the SmartZone LDFA.)

FINANCIAL IMPACT:

It is anticipated that the LDFA will capture more than an estimated $10 million in tax
increment revenue over a period of 15 years for the development of the SmartZone.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the attached resolution

COMMITTEE RECOMMENDATION:

None




7/12/2001                                                                         1
                                                City of Muskegon
                                          County of Muskegon, Michigan
                                                  2001-SS(h)
                                   RESOLUTION OF INTENT CALLING HEARING
                                       REGARDING CREATION OF A NEW
                               LOCAL DEVELOPMENT FINANCE AUTHORITY DISTRICT



               Minutes of a regular meeting of the City Commission of the City of Muskegon, County

of Muskegon, Michigan, held in the City Hall in said City on the 24th day of July, 2001, at 5:30

o'clock p.m., Eastern Daylight Time.

PRESENT :Members,_ __,_A,.sul.Ma,,_k"-'so,,.,n.,_, '-----"B.s;_e!.!!ne;;.,dd.Jicccc!<t_,_._JNLLiu;e;_Jl_;:,S_c;elJ_n_,_,~S,,,c,JJhww"-e_,_jfLluear_,,---->lS!.!!he"-Jp,L!h!.Ce.i_r., d_,_.- - -

    Sp at a r o

ABSENT:Members,_ _-"S'--'i-"'e'---ra,, d'--'z'-"k'---'i_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

              The following preamble and resolution were offered by Commission Member

--'Spc....a_t-'a_r_o_ _ _ _ _ _ and supported by Commission Member Shepherd

              WHEREAS, the City of Muskegon (the "City") is authorized by the provisions of Act

281, Public Acts of Michigan, 1986, as amended ("Act 281"), to create a local development

finance authority; and

              WHEREAS, the City has previously established the Local Development Finance

Authority of the City of Muskegon (the "LDFA") which exercises its powers within its district

(the "District") plll'suant to Act 281; and

              WHEREAS, it is necessary for the best interests of the public to create a new district, the

Muskegon Lakeshore SmartZone, to be known as LDFA District 3 (the "District") to promote

economic growth in the City; and

              WHEREAS, a proposed resolution creating the new District is being prepared; and
          WHEREAS, it is necessary to conduct a public hearing in connection with the

consideration of such proposed resolution as required by Act 281.

          NOW, THEREFORE, BE IT RESOLVED THAT:

          1.    The City Commission determines that it is necessary for the best interests of the

public to create the new District in order to eliminate the causes of unemployment,

underemployment and joblessness and to promote economic growth in the City.

          2.    The new District subject to the jurisdiction of the LDFA as provided in Act 281 is

hereby tentatively designated to be as set forth in Exhibit A attached hereto and made part

hereof.

          3.    There shall be a public hearing on Tuesday, the 28th day of August, 2001, at 5:30

o'clock, p.m., Eastern Daylight Time, in the City Hall in the City to consider adoption by the

City Commission of a resolution creating the new LDFA District in which the LDFA shall have

jurisdiction, and setting out certain procedures in connection therewith.

          4.    The City Clerk shall cause notice of said public hearing to be published in the

Muskegon Chronicle, a newspaper of general circulation in the City, twice before the public

hearing. The notice shall be published not less than 20 and not more than 40 days before the date

set for the public hearing. The notice shall be published as a display advertisement prominent in

size. The Clerk shall also cause the notice to be mailed by first class mail not less than 20 days

prior to the hearing to all property taxpayers of record in the proposed authority district as shown

by the most recent tax roll of the City and to the governing body of each taxing jurisdiction

levying taxes that would be subject to capture by the LDFA.

          5.   The notice of the hearing shall be in substantially the following form:




                                                -2-
                                NOTICE OF PUBLIC HEARING

                                CITY OF MUSKEGON
                           COUNTY OF MUSKEGON, MICHIGAN


                      ON THE CREATION OF A NEW DISTRICT OF THE
                       LOCAL DEVELOPMENT FINANCE AUTHORITY


TO ALL INTEREST PERSONS IN THE CITY OF MUSKEGON:

        PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Michigan,
will hold a public hearing on Tuesday, the 28th day of August, 2001, at 5:30 o'clock, p.m.,
Eastern Daylight Time, in the City Hall, 933 Terrace Street, Muskegon, Michigan, to consider
the adoption of a resolution creating a new authority district, the Muskegon Lakeshore
SmartZone, to be !mown as LDFA District 3, for the Local Development Financing Authority of
the City of Muskegon, pursuant to Act 281 of the Public Acts of Michigan of 1986, as amended.

                                  PROPOSED BOUNDARIES

       The boundaries of the proposed district as revised within which the local development
finance authority 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
recorded in Liber 3 of Plats, Page 71, Muskegon County Records, lying Northerly of a line
described as: Commence at the intersection of the Northeasterly line of Terrace Street, being the
Southwesterly line of Block 557 extended to the centerline 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 northeasterly right of way line, said line being a 302.48 foot
radius curve to the left with a central angle of 51°07'00" and a chord which bears North
88°17'30" 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 PLACE OF BEGINNING OF THIS
DESCRIPTION: Thence Northeasterly 635.15 feet along a 803.25 foot radius curve to the right,
having a central angle of 45°18'19" and a chord which bears North 70°04'05" East 618.73 feet;
thence South 87°16'46" East 222.59 feet; thence North 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; thence South 87°16'46"
East 904.15 feet; thence Northeasterly 548.72 feet, along a 1272.34 foot radius curve to the left,
having a central angle of 24°42'35" and a chord which bears North 80°21 '56" East 544.48 feet
to the place of ending.

EXCEPT THE FOLLOWING

Part of Block 558, commence at the intersection of the Northeasterly 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 extended 381.45 feet; thence


                                               -3-
Westerly along the arc of a 302.48 foot radius curve to the left 269.86 feet to the line between
Lots 5 and 6 of said Block 558 (long chord bears North 88 degrees 17 minutes 30 seconds 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 of beginning; thence North 27 degrees 25 minutes 55 seconds East
925.82 feet to a point referred to as Point "A"; thence continue North 27 degrees 25 minutes 55
seconds East 5 feet, more or less, to the shore of Muskegon Lake; thence Northwesterly and
Southwesterly along the shore of Muskegon Lake 1350 feet, more or less; thence South 46
degrees 9 minutes 15 seconds East along said line between Lots 5 and 6, 820 feet, more or less,
to the place of beginning.

Property Commonly Known As: Former Teledyne Continental Motors Site


      At the public hearing, all citizens, taxpayers, and property owners of the City of
Muskegon desiring to address the City Commission shall be afforded an opportunity and the
boundaries of the proposed authority district.

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

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


                                                   Clerk, City of Muskegon




                                             -4-
       6.      All resolutions and parts of resolutions insofar as they conflict with the provisions

of this resolution be and the same hereby are rescinded.

AYES: Membnrs        Aslakson, Benedict, Nielsen, Schweifler, Shepherd, Spataro



NAYS: Members
                  - None
                    - - - - -- - - - - - - - - - - -- - - -- - - - -
RESOLUTION DECLARED ADOPTED.




                                               -4-
          I hereby ce1iify that the foregoing is a true and complete copy of a resolution adopted by

the City Commission of the City of Muskegon, County of Muskegon, State of Michigan, at a

regular meeting held on July 24, 2001, 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

kept and will be or have been made available as required by said Act.     , /


                                                         JiuJ- Q. ~kfv
                                                      City Clerk




DELIB:2247075.1\063684-0001 7




                                                -5-
     Muskegon Lakeshore SmartZone - LDFA District Establishment Process


1.    Resolution of Intent to Create District (sets date for public hearing) -July 24

2.    Public Hearing Date -August 28

3.    Approval of Resolution Establishing District - November 13
      (not less than 60 days from public hearing)

4.    Filing of Resolution Establishing District w/ Secretary of State and Publishing Resolution in
      Newspaper of General Circulation - November 14
           Commission Meeting Date: July 24, 2001




Date:      July 16, 2001
To:        Honorable Mayor & City Commission
From:      Planning & Economic Development Department              C(6 C

RE:        Muskegon Area Plan- Funding Request


SUMMARY OF REQUEST: To approve the attached resolution
authorizing a contribution from the City of Muskegon for the Muskegon
Area Plan, in the amount of $12,301, to be paid for over the next two
fiscal years.


FINANCIAL IMPACT: The contribution from the City of Muskegon will be
$12,301, which will be paid over the next two fiscal years.



BUDGET ACTION REQUIRED: The portion to be paid from the 2001
Budget year, in the amount of $6,150.50, will come from the City of
Muskegon General Fund Contingency account.


STAFF RECOMMENDATION: To approve the attached resolution and
authorize the Mayor and City Clerk to sign.


COMMITTEE RECOMMENDATION: The City Commission Working
Session discussed the MAP process on May 7, 2001 and were in favor
of the concept.
                               Resolution No. 2001 -88 ( i)

                           MUSKEGON CITY COMMISSION

                   MUSKEGON AREA PLAN - FUNDING REQUEST


WHEREAS, the Muskegon Area Wide Plan Steering Committee comprised of local
officials in Muskegon County assisted by the West Michigan Shoreline Regional
Development Commission is in the process of initiating a County-wide Comprehensive
Plan.

WHEREAS, the City of Muskegon through a previous resolution has indicated its
support for this planning process and designated a representative to the Steering
Committee.

WHEREAS, the Steering Committee has adopted a budget requesting a financial
commitment of $12,301.00 to be paid over the next two years.

NOW THEREFORE be it resolved that the City of Muskegon agrees to make this
contribution in accordance with this time schedule.

Adopted this 24th day of July, 2001

Ayes:     Benedict , Niel sen, Schwe i fler, Shepeh r d, Spat aro , As l akso n

Nays:     None

Absent:     Si e r adzki




I hereby certify that the foregoing constitutes a true and complete copy of a resolution
adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular
meeting held on July 24, 2001.
                                                                                          r.:1-Md
                                                                                        Lf-

                               WEST MICHIGAN SHORELINE                                                  'j'
                               REGIONAL DEVELOPMENT COMMISSION

                                                                                        June 19, 2001
       Mr. Fred Nielsen
       Mayor
       City of Muskegon
       933 Terrace Street P. 0. Box 536
     . Muskegon, Ml 49443-0536

      Dear Mr. Nielsen,

       I am writing to give you an update on the Muskegon Area-wide Plan (MAP) and to
      request additional support for this project.

      After several meetings of the MAP Steering Committee, the project is ready to proceed.
      It is anticipated that the total cost to complete the MAP will be approximately $200,000.
      Some of the sources for funding the project will include State/Federal Agencies, private
      business, community foundations, and local government. Please see the enclosed
      budget titled "Proposed Funding" for more information.

      At this time the MAP Steering Committee is requesting a financial commitment from
      your municipality in the amount of $12,301 to be paid over the next two fiscal years.
      This dollar figure was determined by your municipality's percentage of population within
      Muskegon County and State Equalization Values (SEV's). A list of the dollar amounts
      being requested from each municipality is included within this packet.

      Enclosed is a sample resolution if your community chooses to financially support the
      MAP project. Once signed, please return a copy of the resolution to the West Michigan
      Shoreline Regional Development Commission at P.O. Box 387, Muskegon, Ml 49443
      by August 31, 2001. Feel free to contact me if you and your Board of Commissioners
      would like additional information or would like a representative of he MAP Steering
      Committee to speak with you regarding the MAP project.

      If you have any questions regarding this request, please contact me at (231) 744-2454
      or Sandeep Dey, Executive Director, West Michigan Shoreline Regional Development
      Commission at (231) 722-7878 extension 117.

      Thank you for your consideration regarding this matter and I look forward to working
      with you cooperatively, as we prepare a blueprint for our county's future.



                                                                     F<ECEIVEO_:
                                                                         JUI'\ ~2- :._ 200 I

      Laketon Township Supervisor                                         MIJSl<:.EG.01\1
                                                                       ClJV w:!,NJ\Cgn•s
                                                                            01:":lCG
137 MUSKEGON MALL                                                 _ , _....... ~          (23 ) 722•7878
                                                                                   k ' r ~ , . --   •

P.O. BOX 387                         MUSKEGON, MICHIGAN 49443-0387                    FAX (231) 722-9362
WWWW MSRDC.COM                                                           E-MAIL: WMSRDC@WMS RDC.ORG
MAP Participating Communities   (current)


   Blue Lake Township
   Cedar Creek Township
   Dalton Township
   Egelston Township
   Fruitland Township
   Fruitport Township
   Village of Fruitport
   Holton Township
   Laketon Township
   City of Montague
   Muskegon Township
   City of Muskegon
   City of Muskegon Heights
   County of Muskegon
   City of North Muskegon
   City of Norton Shores
   Ravenna Township
   Village of Ravenna
   City of Roosevelt Park
   Sullivan Township
   Whitehall Township
   City of Whitehall




                                            6/12/01
                                       PROPOSED FUNDING

                           Muskegon Area-wide Plan Funding
                            January 2001 - December 2002

Local Government ................................................................................................ $70,000

          Muskegon County ...................................................................... $14,345

          Cities, Townships, and Villages ................................................. $55,655

Community Foundations ....................................................................................... $50,000

WMSRDC ............................................................................................................... $5,000

          (Approximately $10,000 in costs already donated)

State/Federal Agencies ........................................................................................ $50,000

Private .................................................................................................................. $25,000

         Consumers Energy ...................................................................... $5,000

         MichCon ....................................................................................... $2,500
         ................................................................................. ($5,000 committed)

         Other .......................................................................................... $17,500


TOTAL ............................................................................................. $200,000
                                                                                                                (estimated)
M/\P funding.xis                                                                                                            2001 Fee Schedule


MAP LOCAL FUNDING PROPOSAL                                                    Target--> $         55,000
                                                                   SEV Rate/ Million -> $           4.75
                                                                    Dollar per person -> $          0.23              .-
-                                    -----.
           UNIT                     Pop 2_000             Total SEV           SEV Rate           Pop rate          Total
----·

City of Montague                        2,407     $      64,818,000 $             308       $        554     $      861
City of Muskegon                      40,105      $     647,683,400 $           3,076       $      9,224     $   12,301
City of Muskegon Hts.                 12,049      $     124,609,100 $     .       592       $      2,771     $    3,363
ciiy of Norton Shores                 22,527      $     640,105,400 $           3,041       $      5,181     $    8,222
city of No. Muskegon                    4,031     $     118,417,000 $             562       $         927    $    1,490
City of Roosevelt Park                  3,890 .   $      96,195,000 $             457       $         895    $    1,352
C:i!Y of Whitehall                      2,884     $      95,690,100 $             455     .
                                                                                            $         663    $     1,118
Blue Lake Twp                           1,990     $      45,283,811 $              215      $         458    $       673
Casnovia Twp                            2,337     $      50,254,200 $              239      $         538    $       776
Cedar Creek Twp                         3,109     $      50,805,208 $              241      $         715    $       956
Dallon Twp                              7,041     $     131,938,000 $              627      $       1,619    $     2,246
~!l_elston                              9,537     $     136,694,500 . $            649      $       2,194    $     2,843
                                       ·-·-
Fruitland                               5,235     $     183,726,400 $              873      $       1,204    $     2,077
Fruitport Twp                         11,409      $     252,674,700 $            1,200      $       2,624    $     3,824
~llori Twp                              2,532     $       37,238,264 $             177      $         582    $       759·
Laketon _Twp                            7,363     $     161,063,500 $              765      $       1,693    $     2,459
                                    -~------                                                          377            568
Montague Twp                            1,637     $       40,412,500 $             192      $                $
Moorland Twp                            1,616     $       29,710,400 $             141      $         372    $       513
Muskegon Twp                           17,737     $     304,295,100 $            1,445      $       4,080    $     5,525
Ravenna Twp                              1,650    $       38,564,000 $             183      $         380    $       563
- --·-- -----·                      --~477'
Sullivan Twp                                      $       46,752,500 $             222       $        570    $       792
                            ----·                           ·----·
While River Twp                        1,338       $      72,183,600 $             343       $        308    $       651
~hiiehall Twp                          1,648       $      43,300,200 $             206       $        379    $       585
Village of Casnovia                      315       $       2,845,500 $               14      $          72   $         86
Village of Fruitport                   1,124       $      23,883,600 $              113      $         259   $       372
Village of Lakewood Club               1,006       $      11,708,700 $               56      $         231   $       287
Village of Ravenna                     1,206       $      24,682,400 $              117      $         277   $        395
                 Unit total $        170,200       $   3,475,535,083 $          16,509       $     39,146    $    55,655
Muskegon County                                                                                              $    14,345
               Local Total                                                                                   $   70,000
                      Muskegon Area-wide Plan (MAP)
                          INFORMATION SHEET
 What is the MAP?
   • The MAP is a grassroots effort by local units of government to create a comprehensive
       county-wide master plan.
   • The Plan will address land use, planning, and development issues facing local
       municipalities, as well as issues that cross jurisdictional boundaries.
   • The MAP project will consist of three phases including community visioning (phase I),
       plan development (phase II), and plan implementation (phase Ill).

How can the MAP help my community?
  • The MAP will give your community a voice in the future direction of Muskegon County.
  • The MAP will allow your community to raise and address issues you are facing.
  • The MAP will also allow you and your residents to voice your community's future wishes
     to the rest of the county.
  • The MAP will help to control or promote growth in your community.
  • The MAP will help to promote intergovernmental cooperation.
  • The MAP can assist with addressing watershed management issues within your
     community.
  • Completion of the MAP may also make additional funding sources available to your
     community.                                      ·

What   sources are being used to fund the MAP?
  •     Local Government
  •    State/Federal Agencies
  •    Community Foundations
  •    Private

How does the MAP and the West Michigan Strategic Alliance relate?
  • The West Michigan Strategic Alliance is a collaborative effort of the Western Michigan
     region by governmental units, businesses, institutions, and private citizens to create a
     common regional vision for the next 25 years.
  • The timing of the MAP and the Alliance is favorable for working together to help address
     issues raised throughout these efforts.

How does the MAP relate to the proposed Coordinated Planning Act?
  • If the Coordinated Planning Act is passed, the timing would correlate with the
     development of the MAP document to comply with the new law.
  • The completed MAP document would pave the way for each local unit to create and
     update planning documents within each municipality based on the requirements set forth
     in the Coordinated Planning Act.

The MAP will help to give direction to future community leaders.
  • The MAP will provide a future blue print of Muskegon County to assist community leaders
     in making decisions.

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