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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 12, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Resolution Establishing Authorized Signatories for MERS Finance
C. Management Agreement Fisherman’s Landing Finance
D. Approval of Building Contract: 567 Leonard Community & Neighborhood
Services
E. Sewer & Water Engineering Assistance Public Works
F. Electrical System Upgrades Public Works - Filtration
□ PUBLIC HEARINGS:
A. Public Hearing on the Brownfield Plan for 1208 Eighth Economic
Development
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Convention Center Brownfield Grant City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC COMMENT ON NON-AGENDA ITEMS:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
Page 1 of 2
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
Page 2 of 2
Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: November 7, 2019
Regular Session:
1. Under the Consent Agenda, we are asking the Commission to consider the following:
a. Approval of meeting minutes from the most-recent City Commission meeting.
b. Approval of a resolution authorizing signatories for MERS-related business.
c. Approval of an extension to the management agreement for Fisherman’s Landing.
d. Approval of a building contract for a CNS project located at 567 Leonard.
e. Approval to enter into a contract for engineering assistance for sewer and water
projects associated with our recent State Revolving Fund loan/grant awards.
f. Approval of the lowest qualified bidder for electrical systems upgrades at the
Water Filtration Plant.
2. Public Hearings:
a. We will conduct a public hearing on the redevelopment plan for 1208 8th Street.
The redevelopment will include a Brownfield Plan for the reimbursement of
certain qualified expenses.
3. New Business
a. Approval of the Convention Center Brownfield Grant and related expenses for
dewatering and water treatment.
Let me know if you have any questions/comments/concerns
Frank
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: November 12, 2019 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the October 22, 2019 Regular meeting and the October
29, 2019 Special Meeting.
Detailed Summary: N/A
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve the minutes.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 22, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, October 22, 2019, Pastor
Jeremy Lenertz, Muskegon First Wesleyan, opened the meeting with prayer, after
which the Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Byron Turnquist, Ken Johnson, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., Acting City Manager/Finance Director Elizabeth Lewis, City
Attorney John Schrier, and City Clerk Ann Meisch.
Commissioner German left at 6:35 p.m.
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2019-83 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the October 7, 2019
Worksession meeting and the October 8, 2019 Regular Meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. SRF & DWRF Project Implementation Public Works
SUMMARY OF REQUEST: Staff is requesting commission approval to shortlist and
begin priced proposal negotiations with the top three scoring firms to respond to
the Request for Qualification to provide engineering services for future State
Revolving Fund and Drinking Water Revolving Fund Projects. The top three
scoring firms are Prien & Newhof, Fleis & VandenBrink and Abonmarche.
Staff solicited proposals from interested Engineering firms to provide assistance
for the next five years of SRF and DWRF projects within the City. Staff (Leo Evans,
Dave Baker, and Sanjeev Mungarwadi) scored the proposals and are
recommending that the top three scoring firms be shortlisted for future
consideration. Firms on the short list will be contacted to negotiate priced
proposals for specific projects as they are identified and the priced proposals
Page 1 of 4
with engineering service agreements will be returned to the city commission for
review and consideration once finalized by staff.
STAFF RECOMMENDATION: Approve the short list of firms recommended by
staff and authorize staff to begin priced proposal negotiation with the short-
listed firms on specific projects.
C. Scrap Tire Grant Public Works
SUMMARY OF REQUEST: Staff is requesting permission to partner with Michigan
Technological University on a Scrap Tire Market Development Grant application
through the Michigan Department of Environment, Great Lakes, and Energy.
(MDEGLE)
Michigan Technological University has approached city staff to partner on a
FY20 grant application to MDEGLE as part of their Scrap Tire market
Development Program. Applications are due by November 1st, 2019. The
proposed project is for the concrete reconstruction of portions of Franklin Street
and Michigan Avenue in the Nims Neighborhood. Staff was planning to propose
this project as a FY20-21 Capital Improvement project with a total project cost
preliminarily estimated at $1.15 million; divided between the following budgets:
Major Street ($800,000), Sewer ($300,000), and Water ($50,000). The potential
grant amount is estimated at not to exceed $500,000, which would be used to
offset a portion of the Major Street contribution.
STAFF RECOMMENDATION: Authorize staff to partner with Michigan
Technological University on the Scrap Tire Market Development Grant
Application.
D. Mower and Mower Cab Purchases Public Works
SUMMARY OF REQUEST: The Parks Department is requesting to purchase two
Toro Groundsmaster 3280 4-wheel drive riding mowers for $42,022.52 ($47,022.52
minus $5,000 for used mower trade-ins) and one cab for $8,433.37, from Spartan
Distributors. These new mowers will be replacing some of the older models which
we will be trading in and the cab purchase is for one mower for winter
maintenance duties.
STAFF RECOMMENDATION: Authorize staff to purchase two Toro riding
mowers and one cab for one of the riding mowers, from Spartan Distributors.
E. Community Officer Agreement Public Safety
SUMMARY OF REQUEST: This agreement provides Muskegon High School with a
Community Officer during the nine months school is in session. Muskegon Public
Schools agrees to pay the City of Muskegon $2,609.54 each month, from
September 2019 through May 2020, totaling $23,485.82.
STAFF RECOMMENDATION: Approve the 2019-2020 school year MHS
Community Officer Agreement.
Page 2 of 4
F. 1208 Eighth Street Brownfield Public Hearing Economic Development
SUMMARY OF REQUEST: The Brownfield Redevelopment Authority
recommended approval of Brownfield Plan Amendment for 1208 Eighth Street
and now the city commission must schedule a public hearing on that plan for
November 12, 2019.
Core Development submitted a Brownfield Plan Amendment for 1208 Eighth
Street to the Brownfield Redevelopment Authority, which approved it on
October 8, 2019. The city commission must set a public hearing on the plan for
November 12, 2019.
STAFF RECOMMENDATION: To approve the resolution setting a public
hearing for November 12, 2019 on the 1208 Eighth Street Brownfield Plan
Amendment and notify the appropriate taxing units.
Motion by Commissioner German, second by Commissioner Johnson, to accept
the consent agenda, as presented.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
2019-84 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
240 Mason Street
1770 6th Street
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty days
or infraction tickets may be issued. It is further requested that administration be
directed to obtain bids for the demolition of the structures and that the Mayor
and City Clerk be authorized and directed to execute contracts for demolition
with the lowest responsible bidder or staff may issue infraction tickets to the
owner, agent or responsible party if they do not demolish the structures
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish 240 Mason Street and 1770 6th Street.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
concur with the Housing Board of Appeals decision to demolish 240 Mason
Street and 1770 6th Street.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Page 3 of 4
Hood, and Warren
Nays: None
MOTION PASSES
B. Application for Marihuana Facility Planning & Economic Development
SUMMARY OF REQUEST: Request to review the amended Marihuana Facilities
Application.
STAFF RECOMMENDATION: To approve the amended Marihuana Facilities
Application.
Motion by Commissioner Warren, second by Commissioner German, to approve
the amended Marihuana Facilities Application.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner
Turnquist, to table the item until December 9, 2019 – the next Worksession
meeting.
ROLL VOTE: Ayes: Turnquist, Gawron, Hood, and Rinsema-Sybenga
Nays: Johnson and Warren
MOTION PASSES
ANY OTHER BUSINESS: Commissioner Rinsema-Sybenga informed the
commission that there would be a Community Relations Committee
acknowledgement function on December 2, 2019.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were
received.
ADJOURNMENT: The City Commission meeting adjourned at 7:03 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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CITY OF MUSKEGON
SPECIAL CITY COMMISSION MEETING
Tuesday, October 29, 2019
5:30 p.m. @
Muskegon City Hall
933 Terrace Street
Muskegon, MI 49440
In the Commission Chambers, Room 107
MINUTES
Present: Commissioners Turnquist, Warren, Johnson, German, Rinsema-Sybenga, and
Gawron
Absent: Hood
2019-85
Establishment of Plant Rehabilitation District – Public Hearing
Pursuant to Public Act 198 of 1974, as amended, American Chemical Solutions, LLC
has requested the establishment of a Plant Rehabilitation District at 2406 Roberts
Street. This new company will be moving into the former chemical plant on Roberts
Street and will need to make significant upgrades to the facility. In order to apply for a
Plant Rehabilitation IFT, they must be located in a Plant Rehabilitation District.
Public Hearing Commenced:
Todd Zaan, CEO of and Joe Haak, CFO 2406 Roberts Street provided an overview of
their business.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and to approve the Plant Rehabilitation District at 2406
Roberts Street.
ROLL VOTE: Ayes: Gawron, Warren, German, Rinsema-Sybenga, Turnquist,
and Johnson
Nays: None
MOTION PASSES
2019-86
Issuance of an Industrial Facilities Tax Exemption Certificate – American
Chemical Solutions, LLC – Public Hearing
Pursuant to Public Act 198 of 1974, as amended, American Chemical Solutions, LLC
has requested the issuance of an Industrial Facilities Tax (IFT) Exemption Certificate in
order to rehabilitate the vacant chemical plant at 2406 Roberts Street. The company is
eligible for a 6-year abatement on the real property improvements.
Public Hearing Commenced: No public comments were received.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to close the public hearing and to approve the IFT Certificate for 6 years with no
extensions.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2019-87
Motion by Commissioner Johnson, second by Commissioner Warren, to take
from the table, the Marihuana Application, for further discussion.
ROLL VOTE: Ayes: German, Johnson, and Warren
Nays: Rinsema-Sybenga, Turnquist, and Gawron
MOTION DEFEATED
Adjourned: The Special Meeting of the City Commission adjourned at 6:12 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: November 12, 2019 Title: Resolution Establishing Authorized
Signatories for MERS
Submitted By: Beth Lewis Department: Finance
Brief Summary: To approve a Resolution establishing authorized signatories for MERS Contracts
and Service Credit purchase approvals.
Detailed Summary: To approve a resolution establishing the following positions as authorized
signatories for MERS contracts and service credit purchases:
Finance Director
Assistant Finance Director
City Manager
Amount Requested: n/a Amount Budgeted: n/a
Fund(s) or Account(s): n/a Fund(s) or Account(s): n/a
Recommended Motion: To approve the Resolution establishing authorized signatories for MERS
Contracts and Service Credit purchase approvals.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: Nov 12, 2019 Title: Management Agreement Fisherman’s
Landing
Submitted By: Beth Lewis Department: Finance
Brief Summary: To approve the First Amendment to the Management Agreement for Fisherman’s
Landing and the Letter of Understanding between the City and Fisherman’s Landing Management.
Detailed Summary: The current Management Agreement with Fisherman’s Landing expires at the
end of this year. The Amendment will extend the term to December 31, 2021. Additionally we
have put together a Letter of Understanding between the City and the Fisherman’s Landing
Management regarding some concerns the Management has had over the last several years. The
Letter of Understanding gives the Manager access to the daily Launch Ramp deposits, provides
Fisherman’s landing with more of a police presence to enforce parking violations and allows for
unlimited sales of annual permits.
Amount Requested: n/a Amount Budgeted: n/a
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the First Amendment to the Management Agreement and the
Letter of Understanding with Fisherman’s Landing.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Letter of Understanding between Fisherman’s Landing Inc. and the City of Muskegon
Effective: January 2020
Annual Launch Ramp Permits
Fisherman’s Landing Inc will receive 400 permits at the start of each year and will receive additional permits as
needed. There will be no limit to the number of permits Fisherman’s Landing Inc can get and sell each year. Per
the Management Agreement the revenue will be split 50% to the Manager and 50% to the City. Additional the
City shall receive an itemized listing of permits sold.
Launch Ramp Daily Revenues
The Manager will be provided access to deposits for daily launch ramp permits at Fisherman’s Landing. The
Manager will keep the money in a secured location. At the beginning of each year the Manager and DPW staff
will meet to agree upon procedures and schedule pickup’s for the deposits of the daily launch ramp revenues for
the coming year.
Parking Enforcement at Fisherman’s Landing
The City agrees to have the Police department patrol Fisherman’s Landing between April 15th and October 15th
each year. In addition the Manager will be given a contact at the Muskegon Police Department to call with
parking concerns. In March each year the City and the Manager will meet to review procedures for parking
enforcement at Fisherman’s Landing.
_____________________________________ ______________________________________
Manager – Fisherman’s Landing Manager – City of Muskegon
_____________________________________ _____________________________________
Date Date
FIRST AMENDMENT TO MANAGEMENT AGREEMENT
This First AMENDMENT TO MANAGEMENT AGREEMENT relating to the
management of the Fisherman’s Landing (Giddings Street Launch Ramp) is made this ______
day of _______________, 2019 (the “First Amendment”), by and between the City of
Muskegon, (“City”), and Fisherman’s Landing, Inc., (“Manager”) and jointly referred to as
“Parties”.
RECITALS
WHEREAS, City and Manager are Parties to a Management Agreement relating to the
management of Fisherman’s Landing (Giddings Street Launch Ramp) dated January 27, 2015
(“Management Agreement”); and
WHEREAS, City and Manager wish to amend the Management Agreement on the terms
and conditions set forth in this First Amendment (“First Amendment”).
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. INCORPORATION OF RECITALS AND DEFINED TERMS. The above
recitals are hereby incorporated into this First Amendment as if fully set forth herein. Except as
modified by the First Amendment, the Management Agreement shall remain in full force and
effect.
2. Paragraph 6 shall be revised to read as follows:
Term. Subject to the termination provision of this agreement, it shall commence the 27th
day of January, 2015, and terminate at the end of the 2021 year season, but no later than
December 31, 2021. The parties may mutually agree to renewals of this agreement the
terms and provisions thereof to be negotiated.
THIS FIRST AMENDMENT IS HEREBY EFFECTIVE ON THE DATE IDENTIFIED
ABOVE.
The remainder of this page is left intentionally blank.
CITY OF MUSKEGON
Dated: _________________, 2019 By:_________________________________
Stephen Gawron, its Mayor
Dated: _________________, 2019 By:_________________________________
Ann Marie Meisch, its Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date:11/12/19 Title: Approval of Abatement Contract:567 Leonard
Submitted By: Oneata Bailey Department: CNS
Brief Summary: To award the Building Contract for the lead abatement of 567 Leonard to Badgerows Building and
Remodeling for the City of Muskegon’s Homebuyers Program through CNS.
Detailed Summary:
Lead Abatement Contract for 567 Leonard has been bid twice with no bidders. Since the property
has been owned by the City for 10 months, CNS sought out Lead Abatement contractors from the
Medicaid CHIP Grant and only 1 contractor was available to provide a bid based on their current
work assignments.
*The only bid received was from an ineligible contractor.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): HOME 2018 Fund(s) or Account(s):
Recommended Motion: To award Badgerows Building and Remodeling the lead
abatement contract for 567 Leonard; in the amount of $ 39,230.00, for the
Community and Neighborhood Services Office.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 11/12/2019 Title: Sewer & Water Engineering
Assistance
Submitted By: Leo Evans Department: Public Works
Brief Summary: Staff is requesting commission approval to enter into Professional Service
Agreements with three (3) engineering firms to provide engineering assistance on a variety of
water and sewer projects planned for construction in 2020 and 2021.
Detailed Summary: Staff negotiated with the three (3) shortlisted engineering firms and brings
forward the following recommendations:
Prein & Newhof ($386,600.00)
Peck Street Trunk Sewer
Lead Water Service Replacements
Fleis & VandenBrink ($561,000.00)
Amity Avenue Trunk Sewer
Abonmarche ($106,100.00)
Harvey Booster Station Repairs
Filtration Plant Structural Repairs
All three proposals have been reviewed by staff and found to be acceptable. All three professional
service agreements have been submitted for legal counsel review. The first three projects are
proposed for funding within the State Revolving Fund and Drinking Water Revolving Fund
programs which will provide for some principal forgiveness on the projects.
These projects were not included in the original 19-20 budget as we were not sure that we would
be eligible for principal forgiveness again. Based on preliminary responses from MDEGLE we will
be able to receive principal forgiveness and are recommending we proceed with these projects
and will include the requested amounts in a future reforecast.
Amount Requested: $1,053,700.00 Amount Budgeted: $200,000
Fund(s) or Account(s): Fund(s) or Account(s):
590 = $250,000 (19-20) / $303,700 (20-21) 590 = $100,000
591 = $250,000 (19-20) / $250,000 (20-21) 591 = $100,000
Recommended Motion:
Authorize staff to sign the professional service agreements with Prein & Newhof, Fleis &
VandenBrink, and Abonmarche for the 2020 and 2021 water and sewer infrastructure projects.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
November 1, 2019
Mr. Leo Evans, P.E.
City of Muskegon
Department of Public Works
1350 Keating Avenue
Muskegon, MI 49442
Re: Proposal for Professional Engineering Services for SRF/DWRF Implementation
Dear Mr. Evans:
We are submitting this proposal to provide professional engineering services to assist you with your
SRF/DWRF project for Fiscal 2021. The specific projects include the following:
• Peck Street Sanitary Sewer and Water Main Replacement (Laketon to Merrill)
We have reviewed the projects and have developed the following scope of services based on the
project descriptions in the Project Plan. We assume that project documents will be completed and
ready for bidding by early May 2020 to meet the SRF/DWRF milestone schedule, and construction
will occur through the 2021 construction season.
Scope of Services
Design Phase (Peck Street)
Gather and review record plans, private utility information and any available records
pertinent to the proposed project areas;
Complete topographic survey of all projects including aerial photography;
Complete approximately one soil boring per 500 feet of project length;
Complete design of proposed sanitary sewer, water main, service laterals, water services and
road reconstruction as detailed in the SRF and DWRF Project Plans;
Assist City in tracking and developing easement documents for replacement of water services
on private property;
Attend three design review meetings;
Prepare and submit permit applications (City to pay any permit fees);
Prepare opinion of probable cost based on final design;
Prepare AJE;
Prepare project specifications including specific SRF/DWRF requirements;
Assist City with preparation of bidding package and contract documents;
Assist City with advertising for bids, providing responses to questions, preparing addendums;
Attend pre-bid meeting and prepare minutes;
Review bids and prepare bid tabulation and provide recommendations;
Prepare Notice of Award and Notice to Proceed; and
Assist City with preparation of final contracts for signing by Contractor
R:\PRP - Proposal Preparation\City of Muskegon\2019-09 SRF-DWRF\prp 2019-11-01 Evans.doc
Mr. Leo Evans
November 1, 2019
Page 2
Construction Phase (Peck Street)
Schedule and attend preconstruction meeting and prepare minutes;
Track and review shop drawings;
Provide construction staking;
Provide density testing;
Provide construction observation all utility work and reconstruction of Peck Street assuming
18 weeks of construction, this will require two Construction Observers at certain times (1,010
hours);
Schedule and attend monthly progress meetings and prepare minutes for each;
Respond to RFIs, prepare payment applications and change orders;
Complete record plans and property iron replacement following completion.
Fee
Based on the scope of work described above, we propose to complete the work for a not to exceed cost of
$386,600. Our estimated time/work level of effort is attached. Our hourly rates are adjusted each
January. We have included an increase of 3% in hourly rates in 2020 and 2021. Once the construction
contracts are awarded and construction schedule is provided, we will review the hours allocated for the
construction phase services with you to determine whether adjustments need to be made.
Thank you for the opportunity to provide this proposal. Please contact us if you have any questions
Sincerely,
Prein&Newhof
Barbara E. Marczak, P.E.
Enclosures: Estimate work effort/fee, Professional Services Agreement
R:\PRP - Proposal Preparation\City of Muskegon\2019-09 SRF-DWRF\prp 2019-11-01 Evans.doc
Project No.
Professional Services Agreement
This Professional Services Agreement is made this 5th day of November, 2019 (“Agreement”) by
and between Prein & Newhof, Inc. (“P&N”), of 3355 Evergreen Drive, NE, Grand Rapids, MI
49525, and City of Muskegon (“Client”), of 933 Terrace Street, Muskegon, MI 49443.
WHEREAS Client intends to:
Replace the existing sanitary sewer and water main in Peck Street from Laketon Avenue to
Merrill Street. Work will include full road reconstruction, full utility replacement and water
service replacements 18 inches into the building.
NOW THEREFORE, for and in consideration of the terms and conditions contained herein, the
parties agree as follows:
ARTICLE 1 – DESIGNATED REPRESENTATIVES
Client and P&N each designate the following individuals as their representatives with respect to
the Project.
For Client For P&N
Name: Leo Evans, P.E. Name: Barbara Marczak, P.E.
Title: Director of Public Works Title: Team Leader
Phone Number: 231-724-6920 Phone Number: 231-798-0101
Facsimile Number: 231-727-6904 Facsimile Number: 231-798-0337
E-Mail Address: leo.evans@shorelinecity.com E-Mail Address: bmarczak@preinnewhof.com
ARTICLE 2 – GENERAL CONDITIONS
This Agreement consists of this Professional Services Agreement and the following documents
which by this reference are incorporated into and made a part of this Agreement.
☒ P&N Standard Terms and Conditions for Professional Services
☒ P&N Proposal dated November 1, 2019
☐ P&N Standard Rate Schedule
☐ P&N Supplemental Terms and Conditions
☐ Other:
ARTICLE 3 – ENGINEERING SERVICES PROVIDED UNDER THIS AGREEMENT:
Client hereby requests, and P&N hereby agrees to provide, the following services:
3355 Evergreen Drive, NE Grand Rapids, MI 49525 t.616-364-8491 f. 616-364-6955 www.preinnewhof.com
Page 1 of 2
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Standard Terms & Conditions
A. General - As used in this Prein&Newhof Standard Terms and Conditions for Professional Services (hereinafter “Terms and
Conditions”), unless the context otherwise indicates: the term “Agreement” means the Professional Services Agreement
inclusive of all documents incorporated by reference including but not limited to this P&N Standard Terms and Conditions
for Professional Services; the term “Engineer” refers to Prein & Newhof, Inc.; and the term “Client” refers to the other party
to the Professional Services Agreement.
These Terms and Conditions shall be governed in all respects by the laws of the United States of America and by the laws of
the State of Michigan.
B. Standard of Care - The standard of care for all professional and related services performed or furnished by Engineer under
the Agreement will be the care and skill ordinarily used by members of Engineer’s profession of ordinary learning, judgment
or skill practicing under the same or similar circumstances in the same or similar community, at the time the services are
provided.
C. Disclaimer of Warranties - Engineer makes no warranties, expressed or implied, under the Agreement or otherwise.
D. Construction/Field Observation - If Client elects to have Engineer provide construction/field observation, client
understands that construction/field observation is conducted to reduce, not eliminate the risk of problems arising during
construction, and that provision of the service does not create a warranty or guarantee of any type. In all cases, the
contractors, subcontractors, and/or any other persons performing any of the construction work, shall retain responsibility for
the quality and completeness of the construction work and for adhering to the plans, specifications and other contract
documents.
E. Construction Means and Methods - Engineer shall not have control or charge of and shall not be responsible for
construction means, methods, techniques, sequences, or procedures, or for any safety precautions and programs in
connection with the construction work, for the acts or omissions of the Contractor, Subcontractors, or any other persons
performing any of the construction work, or for the failure of any of them to carry out the construction work in accordance
with the plans, specifications or other contract documents.
F. Opinions of Probable Costs – Client acknowledges that Engineer has no control over market or contracting conditions and
that Engineer’s opinions of costs are based on experience, judgment, and information available at a specific period of time.
Client agrees that Engineer makes no guarantees or warranties, express or implied, that costs will not vary from such
opinions.
G. Client Responsibilities
1. Client shall provide all criteria, Client Standards, and full information as to the requirements necessary for Engineer to
provide the professional services. Client shall designate in writing a person with authority to act on Client’s behalf on all
matters related to the Engineer’s services. Client shall assume all responsibility for interpretation of contract documents
and construction observation/field observation during times when Engineer has not been contracted to provide such
services and shall waive any and all claims against Engineer that may be connected thereto.
2. In the event the project site is not owned by the Client, the Client must obtain all necessary permission for Engineer to
enter and conduct investigations on the project site. It is assumed that the Client possesses all necessary permits and
licenses required for conducting the scope of services. Access negotiations may be performed at additional costs.
Engineer will take reasonable precaution to minimize damage to land and structures with field equipment. Client
assumes responsibility for all costs associated with protection and restoration of project site to conditions existing prior to
Engineer’s performance of services.
3. The Client, on behalf of all owners of the subject project site, hereby grants permission to the Engineer to utilize a small
unmanned aerial system (sUAS) for purposes of aerial mapping data acquisition. The Client is responsible to provide
required notifications to the property owners of the subject project site and affected properties where the sUAS services
will be performed. The Engineer will operate the sUAS in accordance with applicable State and Federal Laws.
H. Hazardous or Contaminated Materials/Conditions
1. Client will advise Engineer, in writing and prior to the commencement of its services, of all known or suspected
Hazardous or Contaminated Materials/Conditions present at the site.
2. Engineer and Client agree that the discovery of unknown or unconfirmed Hazardous or Contaminated
Materials/Conditions constitutes a changed condition that may require Engineer to renegotiate the scope of or terminate
its services. Engineer and Client also agree that the discovery of said Materials/Conditions may make it necessary for
Engineer to take immediate measures to protect health, safety, and welfare of those performing Engineer’s services.
Client agrees to compensate Engineer for any costs incident to the discovery of said Materials/Conditions.
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3. Client acknowledges that Engineer cannot guarantee that contaminants do not exist at a project site. Similarly, a site
which is in fact unaffected by contaminants at the time of Engineer’s surface or subsurface exploration may later, due to
natural phenomena or human intervention, become contaminated. The Client waives any claim against Engineer, and
agrees to defend, indemnify and hold Engineer harmless from any claims or liability for injury or loss in the event that
Engineer does not detect the presence of contaminants through techniques commonly employed.
4. The Client recognizes that although Engineer is required by the nature of the services to have an understanding of the
laws pertaining to environmental issues, Engineer cannot offer legal advice to the Client. Engineer urges that the Client
seek legal assistance from a qualified attorney when such assistance is required. Furthermore, the Client is cautioned to
not construe or assume that any representations made by Engineer in written or conversational settings constitute a legal
representation of environmental law or practice.
5. Unless otherwise agreed to in writing, the scope of services does not include the analysis, characterization or disposal of
wastes generated during investigation procedures. Should such wastes be generated during this investigation, the Client
will contract directly with a qualified waste hauler and disposal facility.
I. Underground Utilities – To the extent that the Engineer, in performing its services, may impact underground utilities,
Engineer shall make a reasonable effort to contact the owners of identified underground utilities that may be affected by the
services for which Engineer has been contracted, including contacting the appropriate underground utility locating entities
and reviewing utility drawings provided by others. Engineer will take reasonable precautions to avoid damage or injury to
underground utilities and other underground structures. Client agrees to hold Engineer harmless for any damages to below
ground utilities and structures not brought to Engineers attention and/or accurately shown or described on documents
provided to Engineer.
J. Insurance
1. Engineer will maintain insurance for professional liability, general liability, worker’s compensation, auto liability, and
property damage in the amounts deemed appropriate by Engineer. Client will maintain insurance for general liability,
worker’s compensation, auto liability, and property damage in the amounts deemed appropriate by Client. Upon request,
Client and Engineer shall each deliver certificates of insurance to the other evidencing their coverages.
2. Client shall require Contractors to purchase and maintain commercial general liability insurance and other insurance as
specified in project contract documents. Client shall cause Engineer, Engineer’s consultants, employees, and agents to be
listed as additional insureds with respect to any Client or Contractor insurances related to projects for which Engineer
provides services. Client agrees and must have Contractors agree to have their insurers endorse these policies to reflect
that, in the event of payment of any loss or damages, subrogation rights under these Terms and Conditions are hereby
waived by the insurer with respect to claims against Engineer.
K. Limitation of Liability - The total liability, in the aggregate, of Engineer and Engineer’s officers, directors, partners,
employees, agents, and consultants, whether jointly, severally or individually, to Client and anyone claiming by, through, or
under Client, for any and all injuries, losses, damages and expenses, whatsoever, arising out of, resulting from, or in any
way related to the Project or the Agreement, including but not limited to the performance of services under the Agreement,
from any cause or causes whatsoever, including but not limited to the negligence, professional errors or omissions, strict
liability or breach of contract or warranty, expressed or implied, of Engineer or Engineer’s officers, directors, partners,
employees, agents, consultants, or any of them, shall not exceed the amount of the compensation paid to Engineer under this
Agreement, or the sum of fifty thousand dollars and no cents ($50,000.00), whichever is less. Recoverable damages shall be
limited to those that are direct damages. Engineer shall not be responsible for or held liable for special, indirect or
consequential losses or damages, including but not limited to loss of use of equipment or facility, and loss of profits or
revenue.
Client acknowledges that Engineer is a corporation and agrees that any claim made by Client arising out of any act or
omission of any director, officer, or employee of Engineer, in the execution or performance of the Agreement, shall be made
against Engineer and not against such director, officer, or employee.
L. Documents and Data
1. All documents prepared or furnished by Engineer under the Agreement are Engineer’s instruments of service, and are
and shall remain the property of Engineer.
2. Hard copies of any documents provided by Engineer shall control over documents furnished in electronic format. Client
recognizes that data provided in electronic format can be corrupted or modified by the Client or others, unintentionally or
otherwise. Consequently, the use of any data, conclusions or information obtained or derived from electronic media
provided by Engineer will be at the Client’s sole risk and without any liability, risk or legal exposure to Engineer, its
employees, officers or consultants.
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3. Any extrapolations, conclusions or assumptions derived by the Client or others from the data provided to the Client,
either in hard copy or electronic format, will be at the Client’s sole risk and full legal responsibility.
M. Differing Site Conditions - Client recognizes that actual site conditions may vary from the assumed site conditions or test
locations used by Engineer as the basis of its design. Consequently, Engineer does not guarantee or warrant that actual site
conditions will not vary from those used as the basis of Engineer’s design, interpretations and recommendations. Engineer is
not responsible for any costs or delays attributable to differing site conditions. .
N. Terms of Payment - Unless alternate terms are included in the Agreement, Client will be invoiced on a monthly basis until
the completion of the Project. All monthly invoices are payable within 30 days of the date of the invoice. Should full
payment of any invoice not be received within 30 days, the amount due shall bear a service charge of 1.5 percent per month
or 18 percent per year plus the cost of collection, including reasonable attorney’s fees. If Client has any objections to any
invoice submitted by Engineer, Client must so advise Engineer in writing within fourteen (14) days of receipt of the invoice.
Unless otherwise agreed, Engineer shall invoice Client based on hourly billing rates and direct costs current at the time of
service performance. Outside costs such as, but not limited to, equipment, meals, lodging, fees, and subconsultants shall be
actual costs plus 10 percent. In addition to any other remedies Engineer may have, Engineer shall have the absolute right to
cease performing any services in the event payment has not been made on a current basis.
O. Termination - Either party may terminate services, either in part or in whole, by providing 10 calendar days written notice
thereof to the other party. In such an event, Client shall pay Engineer for all services performed prior to receipt of such
notice of termination, including reimbursable expenses, and for any shut–down costs incurred. Shut–down costs may, at
Engineer’s discretion, include expenses incurred for completion of analysis and records necessary to document Engineer’s
files and to protect its professional reputation.
P. Severability and Waiver of Provisions - Any provision or part of the Agreement held to be void or unenforceable under
any laws or regulations shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon
Client and P&N, who agree that the Agreement shall be reformed to replace such stricken provision or part thereof with a
valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. Non-
enforcement of any provision by either party shall not constitute a waiver of that provision, nor shall it affect the
enforceability of that provision or of the remainder of the Agreement.
Q. Dispute Resolution - If a dispute arises between the parties relating to the Agreement, the parties agree to use the following
procedure prior to either party pursuing other available remedies:
1. Prior to commencing a lawsuit, the parties must attempt mediation to resolve any dispute. The parties will jointly appoint
a mutually acceptable person not affiliated with either of the parties to act as mediator. If the parties are unable to agree
on the mediator within twenty (20) calendar days, they shall seek assistance in such regard from the Circuit Court of the
State and County wherein the Project is located, who shall appoint a mediator. Each party shall be responsible for paying
all costs and expenses incurred by it, but shall split equally the fees and expenses of the mediator. The mediation shall
proceed in accordance with the procedures established by the mediator.
2. The parties shall pursue mediation in good faith and in a timely manner. In the event the mediation does not result in
resolution of the dispute within thirty (30) calendar days, then, upon seven (7) calendar days’ written notice to the other
party, either party may pursue any other available remedy.
3. In the event of any litigation arising from the Agreement, including without limitation any action to enforce or interpret
any terms or conditions or performance of services under the Agreement, Engineer and Client agree that such action will
be brought in the District or Circuit Court for the County of Kent, State of Michigan (or, if the federal courts have
exclusive jurisdiction over the subject matter of the dispute, in the U.S. District Court for the Western District of
Michigan), and the parties hereby submit to the exclusive jurisdiction of said court.
R. Force Majeure - Engineer shall not be liable for any loss or damage due to failure or delay in rendering any services called
for under the Agreement resulting from any cause beyond Engineer’s reasonable control.
S. Assignment - Neither party shall assign its rights, interests or obligations under this Agreement without the express written
consent of the other party.
T. Modification - The Agreement may not be modified except in writing signed by the party against whom a modification is
sought to be enforced.
U. Survival - All express representations, indemnifications, or limitations of liability included in the Agreement shall survive
its completion or termination for any reason.
V. Third-Party Beneficiary – Client and Engineer agree that it is not intended that any provision of this Agreement establishes
a third party beneficiary giving or allowing any claim or right of action whatsoever by a third party.
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Professional Fees Worksheet
City of Muskegon - SRF/DWRF Implementation
2019 Hourly Billing Rate $150 $150 $150 $110 $137 $125 $95 $110 $125 $95 $80 $125 $184 $80 1.1 $0.60
Sen. PM Sen. PM Sen. PM Sen. Eng. Sen. PM PM Eng. Sen. Eng. CADD/GIS Sen. Obs. Observer Geotech Survey Tech I Expense Total Cost
Staff Member Mileage
Marczak Prein Cru./Prein Hulst Smith Brink/Verhuel Staff Tezak Staff Couture TBD J. Cruick Staff Van Kuik Item Cost
Design (2019-2020)
Preliminary Design (2019)
Kickoff Meeting 4 4 4 35 $1,400
Preliminary Engineering 30 30 34 10 $12,000
Water Service Planning 1 5 50 $5,500
Soil Borings (Peck) 2 1 20 Soils&Str. $5,000 $8,400
Topo Survey and Aerial Mapping (Peck) 1 105 Mapping $3,500 $23,300
Review Meeting 4 4 4 35 $1,400
Design (2020)
Easements (water services) 4 6 $1,000
Peck Design 4 40 180 244 $52,600
Staging, Phasing, MOT Design 5 5 36 10 $6,200
SESC Permit Application 1 5 Printing $200 $800
EGLE Water and Sewer Permit Application 1 3 10 Printing $200 $1,400
Specifications for Peck 5 25 20 $4,500
Meeting w/ Client (3) 9 9 10 15 $3,300
Opinion of Probable Cost 2 12 24 $3,900
QA/QC 5 5 5 6 5 5 $4,000
Project Management 8 10 $2,300
Bid Phase (2020)
Advertise and Issue Bid Package 2 2 30 $2,800
Bidder Questions & Pre-Bid Meeting 6 6 3 6 $2,500
Addenda 3 3 7 2 $1,500
Attend Bid 4 1 20 $700
Review Bids/Recommend Award 3 5 1 5 4 $1,900
2019 Rates (+3.0%) $2,700
Design Subtotal 80 5 2 154 6 7 370 36 259 15 0 20 105 66 $8,900 105 $144,100
Page 1 of 2
Professional Fees Worksheet
City of Muskegon - SRF/DWRF Implementation
2019 Hourly Billing Rate $150 $150 $150 $110 $137 $125 $95 $110 $125 $95 $80 $125 $184 $80 1.1 $0.60
Sen. PM Sen. PM Sen. PM Sen. Eng. Sen. PM PM Eng. Sen. Eng. CADD/GIS Sen. Obs. Observer Geotech Survey Tech I Expense Total Cost
Staff Member Mileage
Marczak Prein Cru./Prein Hulst Smith Brink/Verhuel Staff Tezak Staff Couture TBD J. Cruick Staff Van Kuik Item Cost
Construction Engineering Services (2021)
Preconstruction Meeting and Minutes 6 6 12 60 $2,700
Preconstruction Video (2 hours ) 6 70 $600
Construction Staking Peck 235 $43,200
Peck CO (25 weeks) 15 75 125 1250 Misc. Test. $10,000 1,538 $132,600
Project Administration 20 $3,000
Respond to RFIs 5 5 10 $2,100
Change Orders (3 per contract) 15 30 $4,500
Pay Apps (7) 20 32 $5,200
Progress Meetings (monthly per contract) 15 27 32 300 $8,400
Punch List Visits (2 per contract) 10 20 80 105 $9,500
Record Plans/Closeout 30 50 40 40 $16,300
Iron Replacement (Included in survey) 4 $500
2021 Rates (+3.0% each year) $13,900
Construction Engineering Subtotals 41 0 0 128 0 5 261 0 44 131 1370 0 235 0 $10,000 2,073 $242,500
Project Grand Total 121 5 2 282 6 12 631 36 303 146 1,370 20 340 66 $18,900 $2,178 $386,600
Page 2 of 2
October 24, 2019
Leo Evans, City Engineer
City of Muskegon
Department of Public Works
1350 Keating Ave.
Muskegon, MI 49442
RE: SRF & DWRF FY 2020 Project Implementation for the Amity Avenue Projects
Dear Leo:
Thank you for selecting us to assist with the Amity Avenue trunk sewer and watermain replacement projects
for SRF & DWRF fiscal year 2020. We have again assembled a qualified team comprised of professionals
with years of experience in their chosen fields.
PROJECT APPROACH
We understand the project will consist of watermain and sewer replacement along Amity Avenue from Getty
Street to Fork Street and north 1 block on Fork Street to Orchard Avenue then southwest 1 block on Myrtle
Avenue and northwest 1 block on Murphy Street to Walton Avenue. The total project length is approximately
4,400 feet.
F&V is familiar with the scope of the project. We have reviewed both the SRF and DWRF project plans as
well as driven the project area and reviewed the documents provided by the City. Below are some additional
details on how we will approach this project.
Kick-off Meeting
▪ Kick-off meeting with City officials to discuss the schedule, needs and concerns on the project.
Information Gathering
▪ Gather information from City such as plat copies, recorded surveys, existing utility plans, etc.
F&V Team Review
▪ Meet with the F&V project team to plan and discuss the following:
➢ Scope of work and extent of survey.
➢ Quality Control.
➢ Communications.
QA/QC:
▪ QA/QC is an integral part of every phase of the project from surveying to design to construction. Every
phase has a QA/QC procedure that is followed to provide a project that is designed and constructed to
meet industry standards.
316 Morris Avenue, Suite 230
Muskegon, MI 49440
P: 231.726.1000
F: 231.726.2200
P15224 Proposal.docx www.fveng.com
City of Muskegon │SRF & DWRF Amity FY 2020 Project Implementation│ October 24, 2019
Page 2 of 3
Field Survey
▪ Initialize horizontal and vertical control survey using GPS technology.
▪ Establish vertical datum based on NGVD 88 or preferred City datum.
▪ Set benchmarks at 600-foot intervals.
▪ Perform Radial survey to locate all topography within the project area.
▪ Perform survey of all underground utilities to provide size and invert information.
▪ Witness all control points for future use in construction.
Soil Borings
▪ Stake soil boring locations.
▪ Schedule Soils & Structures, Inc. and work with them to obtain soil borings.
Design
▪ Prepare AutoCad drawings.
▪ Establish property lines and right-of-ways based on the field survey.
▪ Produce design drawings of road, watermain & sanitary sewer improvements.
▪ Review plans, specifications and cost estimate with City.
SRF & DWRF Financing
▪ Assist City with submitting the required paperwork and meeting the project milestone schedule for 2020
4th Quarter financing.
Permits
▪ Prepare EGLE sewer & water permit applications.
Bidding
▪ Submit final drawings, specifications and cost estimate to City for bidding.
▪ Assist during the bidding period by answering questions and providing supplemental drawings and
specifications, if necessary.
▪ Tabulate bids and provide recommendation of award to City.
Construction
▪ Schedule and attend Preconstruction meeting.
▪ Provide project administration and engineering consultation throughout the construction period in
accordance with MDOT procedures, including:
➢ Schedule and attend progress meetings with the contractor and City Staff. Prepare and distribute
meeting minutes.
➢ Prepare contractor pay applications and submit to City for payment.
➢ Prepare change orders, if necessary, and submit to City for authorization.
▪ Provide full time inspection of the construction.
▪ Provide materials testing in accordance with MDOT requirements.
▪ Provide construction staking for the project.
Post Construction
▪ Prepare punch list of items for contractor to complete.
▪ Prepare final pay request to contractor after completion of punch list items.
▪ Prepare record drawings of constructed project.
We understand the City will work with the residents to procure the “right of entry” for installation of the water
services into each home. We can assist the City with any sketches or details requested to aid the work.
P15224 Proposal.docx
City of Muskegon │SRF & DWRF Amity FY 2020 Project Implementation│ October 24, 2019
Page 3 of 3
PROFESSIONAL SERVICES FEE
We propose to complete the work described on a Not-to-Exceed basis in accordance with the attached
budget. We estimate the fee to be as follows:
Project Title Not-To-Exceed Fee
Amity Avenue – SRF Trunk Sewer Replacement
Design Engineering $106,000
Construction Engineering $228,000
SRF Total: $334,000
Amity Avenue – DWRF Watermain Replacement
Design Engineering $73,000
Construction Engineering $154,000
DWRF Total: $227,000
All of our team members are committed to excellence in business. We are a local firm in Muskegon and can
respond quickly to any questions or concerns that may arise during these projects.
Please feel free to contact us with any questions.
Sincerely,
FLEIS & VANDENBRINK
Don DeVries, PE
Project Manager
Enclosure
P15224 Proposal.docx
City of Muskegon
Amity Avenue Trunk Sewer & Watermain
Design & Construction Engineering Budget
Project Project Survey Sub-
No. Task QA/QC Drafting Admin. Expense
Manager Engineer Crew Consultant
Preliminary Design
1 Start-up Mtg. w/ City 8 8 2 $50
2 Request Utilities 2 4 4
3 Topo Survey 8 4 16 130 2 $3,500
4 Drawing Cleanup, Cut Sheets 4 2 32 2 $100
5 Soil Borings 2 6 2 $6,000 $100
6 Preliminary Design & Specifications 6 100 240 120 24 $300
7 Preliminary Cost Estimate 4 16 2
8 Review Preliminary Design w/ City 8 16 $50
9 SRF Draft Plan Submittal 8 8 6 6 $50
Final Design
10 Final Design & Specification / QA 8 80 150 100 24 $400
11 Finalize Cost Estimate 4 16 2
12 Permits 12 32 12 8 $100
13 Review Final Drawings w/ City 8 16 $50
14 SRF Final Plan Submittal 8 8 8 6 $100
Bidding
15 Assist City w/ Bidding 16 12 6 8 $100
Totals 14 272 538 300 130 92 $6,000 $4,900
Hourly Rate $172 $172 $126 $95 $115 $78
Labor Services $2,408 $46,784 $67,788 $28,500 $14,950 $7,176
Total Labor Services $167,606
Sub-Consultants $6,000 Total Hours: 1346
Expenses plus 10% $5,390
Proposed NTE Design Fee $179,000
Project Resident Field Survey Sub-
No. Task Drafting Admin. Expense
Manager Inspector Manager Crew Consultant
Construction - (44 weeks Full Time Inspection)
1 Pre-Construction Mtg. 8 8 4 $100
2 Construction Administration 220 110 $500
3 Progress Meetings (Bi-weekly) 132 60 $900
4 Construction Staking 12 12 120 8 $2,500
RPR & Testing (44wks x 50/wk = 2200
5 2200 $6,000 $9,600
hrs)
6 Final Walkthrough / Punchlist 8 16 4 $100
7 Post Construction, Record Drawings 16 24 40 4 $100
Totals 396 2248 0 52 120 190 $6,000 $13,800
Hourly Rate $182 $113 $85 $95 $115 $78
Labor Services $72,199 $254,968 $0 $4,961 $13,800 $14,904
Total Labor Services $360,831
Sub-Consultant $6,000 Total Hours: 3006
Expenses plus 10% $15,180
Proposed NTE Construction Fee $382,000
PROFESSIONAL SERVICES AGREEMENT
FLEIS & VANDENBRINK ENGINEERING, INC.
316 Morris Avenue, Suite 230, Muskegon, Michigan 49440
P: 231.726.1000 F: 231.726.2200
This Professional Services Agreement (“PSA”) is entered into between Fleis & VandenBrink Engineering, Inc. (“Engineer”) and City of
Muskegon, whose address is 933 Terrace Street, Muskegon, MI 49443 (“Owner”) where Engineer agrees to provide services for Owner and Owner
agrees to pay Engineer, all in accordance with the terms of this PSA.
DESCRIPTION OF PROJECT AND SCOPE OF SERVICES: The description of the Project (“Project”) and the scope of services (“Services”) provided
under this PSA is as follows: comprehensive engineering services for SRF & DWRF FY 2020 Project Implementation for the Amity Avenue Project.
AGREEMENT DOCUMENTS: All obligations covered under this PSA are governed by the Agreement Documents, which specifically include this PSA and
all of the following documents, which are all incorporated herein by reference: Engineer’s proposal dated October 24, 2019.
COMPENSATION OF ENGINEER: This contract is an Hourly Fee contract plus reimbursable expenses with a Not to Exceed Fee for the following projects:
Amity Avenue - SRF Trunk Sewer Replacement: $334,000
Amity Avenue - DWRF Watermain Replacement: $227,000
Authorized additional services will be provided on an hourly basis plus reimbursable expenses unless otherwise negotiated.
Owner shall Pay Engineer for all Services and reimbursable expenses on a monthly basis or as otherwise stated herein which shall be due and payable
within fifteen (15) calendar days of presentation of the invoice. Invoices shall be past due fifteen (15) calendar days after presentation, and shall then
incur interest at the rate of 7% per annum, or the highest rate permitted by law, whichever is lower. Reimbursable expenses include the cost of
subconsultants.
PAYMENT. If Owner fails to make any payment when due, Engineer may suspend performance of Services hereunder until all past due amounts and
accrued interest are paid. Engineer shall have no liability of any type as a result of suspension of services caused by Owner’s failure to pay. The
suspension of Services shall not limit any other remedy available to Engineer.
If Owner objects to any portion of an invoice, Owner shall notify Engineer in writing within seven (7) calendar days of presentation. Owner shall identify
the disputed charges and shall pay when due that portion of the invoice not in dispute. If the disputed amount of the invoice is resolved in Engineer’s favor
and not paid by the invoice due date, interest as stated in the agreement shall be paid by Owner on the disputed amount from the original due date.
The Owner’s Payment of Engineer’s invoices shall not be subject to any right of setoff, and payment shall be due regardless of suspension or termination
of this Agreement by either party. If any payment obligation is not paid when due, Owner agrees to pay all costs of the collection, including actual attorney’s
fees through all levels of appeal, whether or not a legal proceeding for collection is commenced as part of the collection process.
OWNER REPRESENTATIVE. The Owner’s representative for this Project shall be the City Engineer who shall have complete actual authority on behalf
of the Owner and its governing body to make all decisions in connection with the PSA.
OWNER RESPONSIBILITIES. The Owner shall timely furnish, at the Owner's expense, all information, requirements, reports, data, surveys and
instructions required by this Agreement. The Engineer may use such information, requirements, reports, data, surveys and instructions in performing its
services and is entitled to rely upon the accuracy and completeness thereof. The Engineer shall not be held responsible for any errors or omissions that
may arise as a result of erroneous or incomplete information provided by the Owner and/or the Owner's Engineers and contractors.
CHANGES. For all services that were completed due to changes to the Description of the Project and/or the Scope of Services, Engineer shall be paid
by Owner on an hourly basis at Engineer’s customary hourly rates, plus reimbursable expenses, unless otherwise negotiated. If the construction period
extends beyond the contracted period in the Scope of Services or the contracted completion date, all services of Engineer thereafter shall continue to be
performed and shall be paid by Owner on an hourly basis plus reimbursable expenses. Owner understands and accepts that field techniques and analytical
capabilities are evolving and that the standards and regulations are subject to rapid change such that currently acceptable investigative approaches and
techniques may become superseded after the time of the signing of this PSA. Such changes will constitute changed conditions requiring adjustment in
the Services and Engineer’s Compensation.
DELAYS. Engineer shall not be responsible to Owner for any delay of any type or kind unless caused in whole by Engineer.
CONSULTANTS. Engineer may engage Consultants and subcontractors to perform, in its sole discretion, all or any portion of the Services.
COST ESTIMATES. Engineer has no control over the costs of labor and material for construction or over competitive bidding and market conditions. All
cost estimates provided by Engineer are based on Engineer’s experience and are considered opinions of probable cost. Engineer does not warrant the
accuracy of any cost estimate. If project costs exceed the Owner’s expectations and the Owner decides to re-design or re-bid any or all portions of the
Work, all re-design, re-bid or other services provided by Engineer shall be paid by Owner on an hourly basis at Engineer’s customary hourly rates, plus
reimbursable expenses.
PERFORMANCE STANDARDS. The Engineer shall perform its services consistent with the professional skill and care ordinarily provided by other
engineers performing similar services in the same or similar locality under the same or similar circumstances. The Engineer shall perform its services as
expeditiously as is consistent with such skill and care and the orderly progress of the Project.
MUNICIPAL ADVISOR. Engineer’s services do not include (1) serving as a “municipal advisor” for purposes of the registration requirements of Section
975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) or the municipal advisor registration rules issued by the Securities and
Exchange Commission, or (2) advising Owner, or any municipal entity or other person or entity, regarding municipal financial products or the issuance of
municipal securities, including advice with respect to the structure, timing, terms, or other similar matters concerning such products or issuances.
LIMITATION OF LIABILITY. Engineer shall not be liable for any claim, damage, cost, expense or other liability not directly caused by negligent acts,
errors or omissions of Engineer. The total liability of Engineer under any legal theory whatsoever, in the aggregate, as well as any claimed liability of
Engineer’s officers, directors, employees, or agents or consultants, for any claims arising out of the PSA, shall not exceed the total amount of available
P15224 F&V Professional Services Agreement.docx
insurance proceeds in response to Owner’s claim. Engineer currently maintains an annual per claim Liability policy in the amount of $4.0 million dollars
and an aggregate insurance policy for Professional Errors and Omissions in the amount of $5.0 million dollars.
Engineer makes no warranties, express or implied, with respect to the Services under the PSA, and disclaims any liability for implied warranties of any
type or kind, including but not limited to implied warranties of fitness or merchantability, and disclaims any liability for special or consequential damages of
any type or kind. Within these limitations, Engineer shall not be liable in any way for errors, omissions or negligence unless caused by the negligence of
Engineer. To the extent that Engineer may be found liable under the terms of this paragraph, and only to such extent, Engineer’s liability shall not exceed
the percentage share of Engineer’s responsibility.
INSURANCE. Upon Owner’s request, Engineer will furnish Owner with a written statement of insurance coverage. No oral representations regarding
insurance shall be binding.
SITE ACCESS. Owner shall be solely responsible for obtaining all site access, easements, and permission from third party property owners for Engineer
to access the site to perform the Services herein. Owner is solely responsible for any claims arising from the disturbance of surface or subsurface soil or
water conditions caused by the performance of Engineer’s Services, excepting damages caused by the sole negligence of Engineer. Engineer will take
reasonable precautions to avoid damage to underground structures and utilities. Owner indemnifies Engineer from any damage caused by or to
underground structures and utilities not called to Engineer’s attention, all in accordance with the indemnity provisions herein. Owner shall provide Engineer
with a list of all known hazardous substances on site and a list of protective measures in case of exposure, all in compliance with the current Federal,
State and Local Right to Know laws and Federal Hazard Communication Standards.
SHOP DRAWINGS AND SUBMITTALS. Engineer will review the shop drawings and submittals only for conformance with the design concept of the
project and compliance with the Contract Documents.
REJECTION OF WORK. In the event that the Scope of Services includes construction phase services in the form of site observation, then Engineer shall
have the authority to reject any work which is not, in the judgment of the Engineer, in conformance with the Contract Documents, Plans and Specifications.
Neither this authority nor Engineer’s good faith judgment to reject or not reject any work shall subject Engineer to any liability or cause of action to any
contractor, subcontractor, supplier, or Owner on the Project.
SPREAD OF CONTAMINATION. Owner understands and agrees that Engineer shall not be responsible for any claims or damages which may arise as
a result of or from the spread of contamination caused by drilling, sampling or any other activity unless such spread or contamination is substantially
caused by the negligence of Engineer. To the extent that Engineer may be found liable under the terms of this Paragraph, and only to such extent,
Engineer’s liability shall not exceed the percentage share of Engineer’s responsibility.
FAILURE TO ENCOUNTER HAZARDOUS MATERIALS. Owner understands that the failure to discover hazardous materials does not guarantee that;
(1) hazardous materials do not exist at the project site, and/or (2) that a non-contaminated site may later become contaminated. Although Engineer will
use reasonable care and a level of skill ordinarily exercised by members of the profession currently practicing in the city, municipality or political subdivision
where the Project is located under similar conditions, Owner agrees that Engineer shall not be responsible for the failure to detect the presence of
hazardous materials through techniques and practices commonly used for those purposes.
PERMITS AND APPROVALS. Unless otherwise specifically stated in the Scope of Services, obtaining permits and approvals for the Project is the
responsibility of the Owner. For an additional fee, Engineer may assist the Owner provided the assistance shall consist of completing and submitting
forms as to the results of certain work included in the Scope of Services and the assistance does not include special studies, special research, attendance
at meetings with public authorities, special testing or special documentation not normally required for similar projects. If Engineer participates in any way
with any permitting process, Engineer provides no guaranty or warranty that any permits or approvals will be provided. Owner shall pay Engineer for all
fees and reimbursable expenses under this PSA regardless of the outcome of approval or denial of permits or other approvals.
ADA AND CODE COMPLIANCE. The Americans with Disabilities Act (“ADA”) provides that alterations to a facility must be made in such a manner that,
to the maximum extent feasible, the altered portions of the facility are accessible to persons with disabilities. The Owner acknowledges that the
requirements of the ADA will be subject to various and possibly contradictory interpretations. To the extent applicable, the Engineer will use its reasonable
professional efforts and judgment to interpret applicable ADA requirements and other federal, state and local laws, rules, codes, ordinances and regulations
as they may apply to the Project. The Engineer does not warrant or guarantee that the Project will comply with all interpretations of the ADA requirements
and/or the requirements of other federal, state and local codes, rules, laws, ordinances and regulations as they may apply to the Project. Owner shall pay
Engineer its customary hourly fees plus reimbursable expenses for any design changes made necessary by newly enacted laws, codes and regulations,
or changes to any existing laws, codes or regulations after the date that this PSA is last signed by the parties.
WAIVER. No delay on the part of any party hereto in the exercise of any right or remedy shall operate as a waiver of such right or remedy and a waiver
on any one (1) occasion shall not be construed as a bar to or a waiver of any subsequent breach of the same or any other provision of the agreement on
a future occasion. No waiver by Engineer of any breach by Owner of a provision of this PSA shall be deemed a waiver of any other provision hereof or of
any subsequent breach by Owner of such provision.
ENFORCEABILITY. This agreement shall be binding upon the parties hereto and their respective successors and assigns.
SEVERABILITY. In the event that any one (1) or more provisions contained in the agreement shall be declared invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions of the agreement shall not be affected or impaired.
OWNERSHIP OF INSTRUMENTS OF SERVICE. Engineer’s documents prepared pursuant to this PSA, including those in electronic format, are
instruments of service. All reports, plans, specifications, computer files, field data, notes and other documents prepared by Engineer as instruments of
service shall remain the property of Engineer. Engineer grants City full use of the instruments of service. Engineer shall retain all common law, statutory
and other reserved rights, including the copyright thereto and all other intellectual property rights. Owner fully indemnifies Engineer against any and all
claims for third party use.
TERMINATION: This PSA may be terminated by either party upon seven (7) calendar days’ written notice. Upon termination, Engineer shall be paid by
Owner for all Services performed up to the notice of termination, as well as all costs necessary to demobilize from the site.
DISPUTE RESOLUTION: In the event of a dispute arising out of or relating to this Agreement or the services to be rendered hereunder, the Owner and
the Engineer agree to attempt to resolve such disputes in the following manner: First, the parties agree to attempt to resolve such disputes through direct
negotiations between the appropriate representatives of each party. Second, if such negotiations are not fully successful, the parties agree to attempt to
resolve any remaining dispute through mediation using a mediator agreed upon between both parties. Owner and Engineer agree to participate in the
mediation process in good faith. The process shall be conducted on a confidential basis, and shall be completed within 120 days. If such mediation is
2
unsuccessful in resolving a Dispute, then the parties may (1) mutually agree to a dispute resolution of their choice, or (2) either party may seek to have
the Dispute resolved by a court of competent jurisdiction. The venue for a court resolution will be Muskegon County, Michigan.
NO THIRD PARTY BENEFICIARIES. There are no third party beneficiaries to this PSA and the Services provided herein are exclusively for the direct
benefit of the Owner indicated above. Owner shall ensure that all other agreements relating to this project reflect that there are no third party beneficiaries
to this PSA.
ASSIGNMENT. This is a professional services contract and is non-assignable without the express written consent of Engineer.
MISCELLANEOUS. No additional or contrary terms, whether contained in an order, acknowledgment, or other document from Owner, shall be binding
upon Engineer unless agreed to in writing signed by an authorized representative of Engineer, and Engineer expressly rejects all such additional or contrary
terms as may be contained in Owner’s documents. The terms in this PSA will have precedence over any other terms expressed by the Owner’s
authorization process such as a purchase order. Engineer’s performance is conditioned on Owner’s unmodified consent exclusively to this PSA. Engineer
shall have the right to correct any errors, whether clerical or mathematical, which are contained in this PSA. Unless otherwise specifically indicated in
writing or otherwise required by law and paid for by Owner, there are no Performance or Payment bonds required on this Project. This PSA shall be binding
upon and shall inure to the benefit of the parties hereto and their successors and permitted assigns. This PSA shall be governed by the laws of the State
of Michigan. This contract sets forth the entire agreement between Engineer and Owner. This is a fully integrated contract.
ELECTRONIC/FACSIMILE SIGNATURES. The signatures on this PSA shall be deemed to be original signatures when transmitted electronically or by
facsimile machine or by any other medium. No party shall be required to produce a PSA with an original signature in order to enforce any provision of this
PSA.
IN WITNESS WHEREOF, the parties hereto have made and entered into this PSA. To be valid, this PSA must be signed by an authorized representative
of Fleis & VandenBrink Engineering, Inc.
OWNER: CITY OF MUSKEGON ENGINEER: FLEIS & VANDENBRINK ENGINEERING, INC.
By: By:
Don DeVries, P.E.
Title: Title: Muskegon Office Manager
By: By:
Title: Title:
Date: Date: November 5, 2019
3
ADDITIONAL PROVISIONS - CONSTRUCTION OBSERVATION
1. DEFINITIONS.
1.1. Contract Documents shall mean construction agreement(s) between Owner and Contractor(s), including plans, specifications, addenda and
change orders.
1.2. Contractor shall mean the person or entity providing construction services to Owner, as defined in the Contract Documents.
2. SITE OBSERVATION.
2.1. The Engineer shall visit the site as defined in the Scope of Services to become generally familiar with the progress and quality of the portion of
the Work completed, and to determine, in general, if the Work observed is being performed in a manner indicating that the Work, when fully
completed, will be in accordance with the Contract Documents. However, the Engineer shall not be required to make exhaustive or continuous
on-site inspections to check the quality or quantity of the Work. On the basis of the site visits, the Engineer shall keep the Owner reasonably
informed about the progress and quality of the portion of the Work completed. Engineer will not be responsible for the means, methods,
techniques, and procedures of construction observed during such visits. Engineer will not be responsible for the Contractor's failure to perform
the work in accordance with the Contract Documents.
2.2. Based solely on Engineer’s on-site observations and Engineer’s review of the Contractor's applications for payment, Engineer will recommend
in writing to Owner payment to the Contractor. Such recommendations of payment to constitute a representation to Owner, based solely on
such observation, review and the data comprising such applications, that to the Engineer’s knowledge, information and belief, the work has
progressed to the point indicated and that to the Engineer’s knowledge, information and belief the quality of the work is generally in accordance
with the Contract Documents.
2.3. Engineer will conduct, in company with Owner, a final review of the Project for conformance with the design concept of the Project, and
compliance with the information given by the Contract Documents, and recommend, in writing, payment to the Contractor, on the same basis
as set forth above.
3. OWNER RESPONSIBILITIES. Owner will:
3.1. Provide full information as to his requirements for the Project. Assist Engineer by placing at Engineer’s disposal all available information pertinent
to the Project, including previous site reports and any other data relative to the design or construction of the Project.
4. SITE SAFETY PROGRAMS AND PRECAUTIONS.
4.1. Owner acknowledges that the Contractor, not Engineer, is responsible for initiating, maintaining and supervising all safety programs and all
safety precautions in connection with the work.
4.2. Engineer shall neither have control over, nor be responsible for, safety programs and precautions in connection with the work, since these are
solely the responsibility of the Contractor.
4.3. Neither the professional activities of the Engineer, nor the presence of the Engineer or its employees at the site, shall impose any duty on the
Engineer, nor relieve the Contractor of its responsibility for jobsite safety.
4
October 31, 2019
Leo Evans, PE
Director of Public Works
City of Muskegon
1315 Keating Avenue
Muskegon, Michigan 49442
RE: Harvey Booster Station
Dear Mr. Evans:
Abonmarche is pleased to present this proposal for architectural and engineering services for
the planned improvements at the City of Muskegon’s Harvey Booster Station.
We appreciate the opportunity to submit our proposal and look forward to working with you
on this project.
If you have any questions regarding the proposal, please do not hesitate to contact our
offices at (269) 926-4545 or by email at eleduc@abonmarche.com.
Sincerely
Evan LeDuc Christopher J. Cook, PE
Project Manager Architecture President/CEO
Leo Evans, P.E.
City of Muskegon
Harvey Booster Station
October 31 2019
Page 2 of 3
WORK PLAN
Project Description
It is our understanding that the proposed project consists of the replacement of roofing on the
building and replacement of the membrane roof over the existing underground reservoir tanks
as well as provide new fencing at the Harvey Booster Station.
Scope of Work
We have tailored our scope of work on our understanding of the services generally necessary
to complete similar projects. We are in receipt of the reference materials provided by the city
on October 22, 2019. This proposal covers architectural construction plans and specifications
for the described project.
Our services are outlined in tasks as follows:
Architectural Services – Design Phase
Task #1- Design Development
This task includes providing architectural services for the conceptual design as follows:
1. Facilitate project kick-off meeting with city staff to discuss project objectives, key issues,
approach and schedules
2. Conduct field inspection to document existing conditions
3. Prepare preliminary design documents and cost estimates
4. Meet with city staff to review design, further examine opportunities and possible
additional solutions, assess necessary changes and compare to cost parameters
5. Provide required documents for city review and approval to move to construction
documents
Task #2 Construction Documents and Permitting
This task includes developing construction drawings for the project. These plans are generally
detailed in nature and include construction details and specifications. These services will
include the following:
1. Perform preliminary code review and structural analysis (impact of energy code)
2. Prepare construction drawings and specifications
3. Submit documents for review and approval at 50% and 90%
4. Prepare and submit documents for necessary state and local plan review and approval
(fees by client)
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\111219\06f_Harvey Booster Station Roof Proposal.docx
Leo Evans, P.E.
City of Muskegon
Harvey Booster Station
October 31 2019
Page 3 of 3
Task #3: Bidding and Negotiations
This task shall include the following:
1. Distribute documents to area plan rooms
2. Solicit Bids from area contractors
3. Conduct pre bid meeting with interested contractors
4. Answer bidder questions
5. Investigate requested substitutions
6. Develop and issue addendums
7. Review bids and bidder qualifications
8. Recommend contract award
Architectural Services – Construction Phase
Task #4: Construction Administration (billed in accordance with our hourly rates)
1. Preparation of AIA contract between owner and contractor
2. Respond to questions from contractor(s) and owner
3. Review submittals/shop drawings
4. Conduct site visits and provide summary reports two (2) times a month
5. Perform punch list review
6. Perform final walk-through with client and contractor
Schedule of Fees
Abonmarche shall receive as payment for the work performed under this contract the
amounts listed below. Abonmarche will be paid for the work performed within the agreement
on a Lump Sum Basis in accordance with the following:
Description Amount
Task #1 Design Development Phase $ 18,500
Task #2 Project Specifications and Documentation $ 19,700
Task #43 Bidding Phase $ 6,000
Task #4 Inspection and Oversight Allowance $ 13,200
Total $ 57,400
Project Schedule
Design 3 weeks Fall/Winter 2019
Construction Documents 3 weeks Winter 2020
Bidding and Negotiations 4 Weeks Spring 2020
Construction 6/8 weeks Spring/Summer 2020
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\111219\06f_Harvey Booster Station Roof Proposal.docx
October 31, 2019
Leo Evans, PE
Director of Public Works
City of Muskegon
1315 Keating Avenue
Muskegon, Michigan 49442
RE: Filtration Plant Structural Repairs
Dear Mr. Evans:
Abonmarche is pleased to present this proposal for architectural and engineering services for
the planned improvements at the City of Muskegon Filtration Plant.
We appreciate the opportunity to submit our proposal and look forward to working with you
on this project.
If you have any questions regarding the proposal, please do not hesitate to contact our
offices at (269) 926-4545 or by email at eleduc@abonmarche.com.
Sincerely
Evan LeDuc Christopher J. Cook, PE
Project Manager Architecture President/CEO
Leo Evans, P.E.
City of Muskegon
Filtration Plant Structural Repairs
October 31, 2019
Page 2
WORK PLAN
Project Description
It is our understanding that the proposed project consists of the replacement of roofing on two
sections (3 and 11) of the filtration plant as well as the replacement of windows.
Scope of Work
We have tailored our scope of work on our understanding of the services generally necessary
to complete similar projects. We are in receipt of reference materials provided by the city on
October 22, 2019. This proposal covers architectural construction plans and specifications for
the described project.
Our services are outlined in tasks as follows:
Architectural Services – Design Phase
Task #1- Design Development
This task includes providing architectural services for the design as follows:
1. Facilitate project kick-off meeting with city staff to discuss project objectives, key issues,
approach and schedules
2. Conduct field inspection to document existing conditions
3. Prepare preliminary design documents and cost estimates
4. Meet with city staff to review design, further examine opportunities and possible
additional solutions, assess necessary changes and compare to cost parameters
5. Provide required documents for review and approval to move to construction
documents
Task #2 Construction Documents and Permitting
This task includes developing construction drawings for the project. These plans are generally
detailed in nature and include construction details and specifications. These services will
include the following:
1. Perform preliminary code review and structural analysis (impact of energy code)
2. Prepare construction drawings and specifications
3. Submit documents for review and approval at 50% and 90%
4. Prepare and submit documents for necessary state and local plan review and approval
(fees by client)
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\111219\06g_Filtraton Plant Structural Repairs Proposal.docx
Leo Evans, P.E.
City of Muskegon
Filtration Plant Structural Repairs
October 31, 2019
Page 3
Task #3: Bidding and Negotiations
This task shall include the following:
1. Distribute documents to area plan rooms
2. Solicit Bids from area contractors
3. Conduct pre bid meeting with interested contractors
4. Answer bidder questions
5. Investigate requested substitutions
6. Develop and issue addendums
7. Review bids and bidder qualifications
8. Recommend contract award
Architectural Services – Construction Phase
Task #4: Construction Administration (billed in accordance with our hourly rates)
1. Preparation of AIA contract between owner and contractor
2. Respond to questions from contractor(s) and owner
3. Review submittals/shop drawings
4. Conduct site visits and provide summary reports two (2) times a month
5. Perform punch list review
6. Perform final walk-through with client and contractor
Schedule of Fees
Abonmarche shall receive as payment for the work performed under this contract the
amounts listed below. Abonmarche will be paid for the work performed within the agreement
on a Lump Sum Basis in accordance with the following:
Description Amount
Task #1 Design Development Phase $ 13,500
Task #2 Project Specifications and Documentation $ 14,700
Task #43 Bidding Phase $ 6,000
Task #4 Inspection and Oversight Allowance $ 12,500
Total $ 48,700
Project Schedule
Design 2 weeks Fall/Winter 2019
Construction Documents 4 weeks Winter 2020
Bidding and Negotiations 4 Weeks Spring 2020
Construction 6/8 weeks Spring/Summer 2020
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\111219\06g_Filtraton Plant Structural Repairs Proposal.docx
Professional Services Agreement
Abonmarche Project Number:
AGREEMENT between (Client name), (Date)
(Client address) (Phone)
(Cell) (Fax) (Email) hereinafter referred
to as the Client, and Abonmarche Consultants, Inc., referred to as Abonmarche, of 95 West Main Street, PO Box 1088, Benton Harbor, MI 49023.
The Client contracts with Abonmarche to perform professional services with regard to the Client’s project generally referred to as:
(Project
Name) (Location)
The professional services to be provided by Abonmarche, collectively referred to as the Work Plan, are as follows:
(Scope of work)
(Project schedule)
(Special Provisions)
Abonmarche’s proposal/work plan, dated is incorporated into this Agreement by reference, and is limited to the services
described therein.
The Client agrees to promptly pay for services provided by Abonmarche for the Scope of Work according to the following:
(fee $)
Prior to commencement of services, the Client will specify any and all documentation that the Client requires for submission with the invoice for services
provided by Abonmarche. Absent any special request from the Client, Abonmarche will send its standard form of invoice.
If, after receipt of an invoice from Abonmarche, the Client has any questions, or if there are any discrepancies in the invoice, the Client shall identify the issue in
writing within ten (10) days of its receipt. If no written objection is made within the ten (10) day period, any such objection shall be deemed waived.
Abonmarche invoices are due upon receipt. The parties agree that interest of 1.5% per month will be added to any unpaid balance after 30 days.
The Client has designated as its Representative. The Representative shall have the authority to
execute any documents pertaining to this Agreement or amendments thereto, and for the approval of all change orders, addenda, and additional services to
be performed by Abonmarche. The representative shall be the contact person for submission of all documents, invoices or communications.
Authorization to Proceed and Guarantee of Payment: By signing this Agreement the Client authorizes Abonmarche to provide services described above, and
that the Client is the responsible party for making payment to Abonmarche. By signing below, I acknowledge that I have received and agree to the Terms
and Conditions on Page 2 of this Agreement, and I understand that the Terms and Conditions take precedence over all prior oral and written understandings.
These Terms and Conditions can only be amended, supplemented, modified, or canceled by a written instrument signed by both parties. Any notice or other
communications shall be in writing and shall be considered to have been duly given when personally delivered or upon the third day after being deposited
into first class certified mail, postage prepaid, return receipt requested.
Authorized Client Representative If Individual Authorized Abonmarche Representative
Client: Signature: Signature:
Signature: Printed Name: Printed Name:
Printed Name: Date of Birth: Title:
Originating Abonmarche Consultants, Inc.
Date Signed: Driver’s License #: Office: 95 W. Main Street
PO Box 1088
Federal Tax ID: Employed by: Benton Harbor, MI 49023
T 269.927.2295
Address: F 269.927.1017
City/State Date Signed:
Date Signed:
Revised 8-19-2014 Page 1 of 2
TERMS AND CONDITIONS OF PROFESSIONAL SERVICES Client pursuant to the services under this Agreement. Computer files of text, data,
graphics, or of other types of electronic media are the sole possession of
AGREEMENT Abonmarche, unless specifically stated otherwise in an amendment to this
1. Agreement. These Terms and Conditions shall be incorporated by reference and Agreement. Any electronic media provided under this Agreement to the Client
shall prevail as the basis of the Client’s Agreement to Abonmarche. Any Client are only for the convenience of the Client. Any conclusions or information
document or communication in addition to or in conflict with these Terms and obtained or derived from such electronic files will be at the user’s sole risk.
Conditions shall be subordinate and subject to these provisions. 15. Bonds and Permits. The Client will be responsible for the adoption of any site
2. Execution. Abonmarche has the option to render this Agreement null and void, if access or right of way bonds that may be initiated on their behalf. At completion
it is not executed within thirty (30) days of delivery. of Abonmarche’s services, the Client will take responsibility and pay any ongoing
3. Client Responsibilities. The Client will provide all criteria and information bond or permit costs for any bonded or permitted services.
concerning the requirements of the Project. The Client will assume responsibility 16. Insurance. The Client will cause Abonmarche and Abonmarche’s employees to
for interpretation of contract documents and for construction observation and be listed as additional insured on all general liability and property insurance
will waive all claims against Abonmarche that may be in any way connected, policies carried by the Client that are applicable to the Project. Upon request,
unless Abonmarche’s services under this Agreement include full-time construction the Client and Abonmarche will each deliver to the other certificates of insurance
observation or review of contractor’s performance. evidencing their coverage. The Client will require the Contractor to purchase and
4. Performance. The standard of care for services performed by or provided by maintain general liability and other insurance as specified in the Contract
Abonmarche will be the care and skill ordinarily used by Abonmarche’s profession Documents and to cause Abonmarche and Abonmarche’s employees to be
practicing under similar circumstances at the same time and in the same locality. listed as additional insured with respect to such liability and other insurance
Abonmarche makes no warranty, expressed or implied, with respect to any purchased and maintained by the Contractor for the Project.
services provided by Abonmarche. Abonmarche will not be liable for any claim, 17. Third party Invoicing. If the Client directs Abonmarche to invoice third party
damages, cost, or expense (including attorney’s fees) or other liability or loss not payers, Abonmarche will do so, but the Client agrees to be ultimately responsible
directly and solely caused by the negligent acts, errors, or omissions of for Abonmarche’s compensation until the Client provides Abonmarche with the
Abonmarche. third party’s written acceptance of all terms of this Agreement and until
5. Hourly Billing Rates. If payment is on an hourly rate, Client will pay Abonmarche Abonmarche agrees to the substitution.
at the current hourly billing rates. The hourly rates are adjusted annually or as 18. Third Party Beneficiaries. Nothing contained in this Agreement shall create a
deemed appropriate. contractual relationship with or a cause of action in favor of a third party against
6. Reimbursable Expenses. Reimbursable expenses, the actual costs incurred either the Client or Abonmarche. Abonmarche’s services under this Agreement
directly or indirectly for the Client’s Project, will be charged at Abonmarche’s are being performed solely for the Client’s benefit, and no other party or entity
current rates. Examples of reimbursable expenses include, but are not limited to: shall have any claim against Abonmarche because of this Agreement or
mileage, tests and analyses, special equipment services, postage and delivery performance or nonperformance of services hereunder. The Client and
charges, telephone and telefax charges, copying, printing, and binding charges, Abonmarche agree to require a similar provision in all contracts with contractors,
commercial transportation, meals, lodging, special fees, licenses, and permits. subcontractors, subconsultants, vendors and other entities involved in this Project
Subconsultant and outside technical or professional services will be charged on to carry out the intent of this provision.
the basis of the actual costs times a factor of 1.15. 19. Suspension of Services. In the event of non-payment by Client, Abonmarche will
7. Additional Services. Additional services that may be provided pursuant to the have the absolute right to cease performance of any services.
Agreement or any subsequent modification of the Agreement will be authorized, 20. Contractor’s Work: Abonmarche shall have no authority to direct or control the
when possible, by written amendment signed on behalf of the Client and Work of the Contractor or to stop the Work of the Contractor. Abonmarche shall
Abonmarche. Additional services, performed by Abonmarche are subject to all not be liable to any party for the failure of the Contractor to perform the Work
Terms and Conditions and the Client will be responsible for payment. Should the consistent with the Plans and Specifications and applicable Codes and
Client, regulatory agency, or any public body or inspector direct modification or Regulations. Abonmarche shall have no responsibility or be liable for safety
addition to services covered by this Agreement, including costs relating to the procedures of the Contractor or its subcontractors.
relationship between the Client and a third party i.e. punch lists, change orders, 21. Notice of Lien Rights. Abonmarche hereby notifies, and the Client acknowledges
and disputes, the cost will be added to the agreed price. Requests for extra that Abonmarche has lien rights on the Client’s land and property when
services should be made in writing via a change order, but none the less, Abonmarche provides labor and materials for Projects on the Client’s land and
Abonmarche is entitled to be paid for extra services provided whether or not it is the Client does not pay for those services.
in writing. 22. Legal Expenses. If Abonmarche brings a lawsuit against the Client to collect
8. Underground Structures or Buried Utilities. The Client is responsible for identification invoiced fees and expenses, the Client shall be legally liable to pay
and location of all public and private buried structures on the Client’s property Abonmarche’s expenses, including its actual attorney fees and costs.
and the Project site, such as, but not limited to, storage tanks and lines, or gas, 23. Liability Limitation. Client and persons claiming through Client agree to limit the
water, sewer, electrical, phone, cable, or any other public or private utilities. It is liability of Abonmarche, its agents and employees, for all claims arising out of, in
agreed that Abonmarche is not responsible for accidental damage to utilities or connection with, or resulting from, the performance of the services under this
underground structures, whether known, unknown or improperly located. The agreement to an amount of $25,000 or the fee paid to us for professional services
client shall be responsible for design fees if changes are necessary. Utility locating on this project, whichever is greater. Client acknowledges that Abonmarche is a
or marking services provided by Abonmarche are not substitutes for complying corporation and agrees that any claim made by Client arising out of any act or
with the utility owner notification requirements or the locating services (811 mission of any director, officer, or employee of Abonmarche, in execution or
systems) required prior to an excavation. Utilities shown as located by ground performance of this Agreement, shall be made against Abonmarche and not
penetrating radar are approximate only. No excavation took place to verify the against such director, officer, or employee.
positions shown or to verify the type of utility (except as noted). Careful 24. Consequential Damages. The Client and Abonmarche waive consequential
excavation is required for verification of the buried utility. The owner or customer damages for claims, disputes, or other matters in question relating to services
assumes the risk of error and the actual location of the underground utility. provided as a part of this Agreement, including for example, but not limited to,
Abonmarche is not providing any certification or guarantee regarding the exact loss of business.
location of any underground utility. 25. Governing Law. This Agreement will be deemed to have been made in Berrien
9. Underground Conditions. Abonmarche shall have no responsibility for the County, Michigan and shall be governed by and construed in accordance with
identification of existing or unforeseen/differing underground conditions. The the laws of the State of Michigan.
Contractor shall have sole responsibility for determining the nature of 26. Exclusive choice of forum. Each party irrevocably and unconditionally agrees
underground conditions and the means and methods of dealing with those that it will not bring any action, litigation, or proceeding against any other party
conditions. Abonmarche is entitled to rely upon the information provided by in any way arising from or relating to this Agreement in any forum other than the
geotechnical consultants and shall have no responsibility for the accuracy or courts of the state of Michigan sitting in Berrien and any applicable Michigan
correctness of the data contained in the geotechnical reports. appellate court. Each party irrevocably and unconditionally submits to the
10. Site Access and Security. With the exception of access rights that land surveyors exclusive jurisdiction of those courts and agrees to bring any such action,
are afforded by law, the Client will provide Abonmarche access to the Project litigation, or proceeding only in those courts. Each party agrees that a final
site and the Client will be responsible for obtaining any necessary permission from judgment in any such action, litigation, or proceeding is conclusive and may be
any affected third party property owners for use of their lands. The Client is solely enforced in other jurisdictions by suit on the judgment or in any other manner
responsible for site security. provided by law.
11. Consultants. Abonmarche may engage Consultants at the request of the Client 27. Considerations. The successors, executors, administrators, and legal
to perform services which are typically the Client’s responsibility, such as surveys, representatives of the Client and Abonmarche are hereby bound onto the other
geotechnical and environmental assessments. The Client agrees that with respect to the covenants, Agreements, and obligations of this Agreement.
Abonmarche will not be responsible for, or in any manner guarantee, the 28. Acts of God. Neither the Client nor Abonmarche will have any liability for
performance of services by the Consultants. The Client agrees that Abonmarche nonperformance caused in whole or in part by causes beyond Abonmarche's
will not be liable for any claim, liability, or defense cost for injury or loss sustained reasonable control. Such causes include, but are not limited to, Acts of God, civil
by any party allegedly caused by the Consultants’ negligence or willful unrest and war, labor unrest and strikes, acts of authorities, and events that could
misconduct. not be reasonably anticipated.
12. Opinions of Cost. Any opinions of probable construction cost and/or total project 29. Termination. Either the Client or Abonmarche may terminate this Agreement by
cost provided by Abonmarche will be on the basis of experience and judgment, giving ten (10) days written notice to the other party. In such an event, the Client
but these are only estimates. Abonmarche does not warrant that bids or ultimate will pay Abonmarche in full for all services previously authorized and performed
construction or total project costs will not vary from such estimates. prior to the effective date of the termination, plus (at the discretion of
13. Ownership of Work Product. Abonmarche will remain the owner of all original Abonmarche) a termination charge to cover finalization of services necessary to
drawings, reports, and other materials provided to the Client, whether in hard bring ongoing services to a logical conclusion. Such charge will not exceed thirty
copy or magnetic media form. The Client is authorized to use the copies provided (30) percent of all charges previously incurred. Upon receipt of such payment,
by Abonmarche only in connection with the Project. Any other use or reuse by Abonmarche will return to the Client all documents and information that are the
the Client for any purposes whatever will be at the Client’s risk and full legal property of the Client.
responsibility, without liability to Abonmarche and the Client will defend, 30. Entire Agreement. This Agreement contains the entire agreement between the
indemnify, and hold Abonmarche harmless from all claims, damages, losses, and parties and there are no agreements, representations, statements, or
expenses, including attorney fees arising out of or resulting there from. understandings which have been relied on by the parties which are not stated in
14. Electronic Media. Copies of data, reports, drawings, specifications, and other this Agreement.
materials furnished by Abonmarche that may be relied upon by the Client are End of Agreement.
limited to the printed copies (also known as hard copies) that are delivered to the
Revised 8-19-2014 Page 2 of 2
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 11/12/2019 Title: Electrical System Upgrades
Submitted By: Sanjeev Mungarwadi/Leo Evans Department: Public Works - Filtration
Brief Summary: Authorize staff to enter into construction agreement with Parkway Electric and
Communications since they submitted the lowest responsible bid of $118,582.
Detailed Summary: Tetratech completed design for the electrical upgrades to tie the two existing
generators at the Filtration Plant and solicited proposals from four electrical contractors to
complete the construction. Three bids were received and Parkway Electric and Communications
Services submitted the lowest responsible and acceptable bid for $118,582. The project is
budgeted in the CIP for $100,000 and $13,000 were expended on design services. The difference
of $32,000 required will be addressed in the next budget reforecasting session.
Amount Requested: $132,000 Amount Budgeted: $100,000
Fund(s) or Account(s): 591-60558-5400 Fund(s) or Account(s): 591-60558-5400
Recommended Motion:
Authorize staff to enter into an agreement with Parkway Electric and Communications for a cost of
$118,582.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
BID TABULATION
PROJECT: WATER FILTRATION PLANT- ELECTRICAL UPGRADES - GENERATORS TIE-IN
DATE: 12-Nov-19 REQUISTION
NAME OF BIDDER NAME OF BIDDER NAME OF BIDDER NAME OF BIDDER
VENDOR Buist Electric Feyen Zylstra Parkway Electric Newkirk Electric
Byron Center, MI Traverse City, MI Holland, MI Muskegon, MI
TELEPHONE 269-343-9191 231-486-8850 616-820-1119
QUOTED BY Joel Blount Jeremie Garno Greg Fowler
QUANTITY DESCRIPTION UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
Base Price $ 159,000.00 $ 145,059.00 $ 110,790.00 No BID
Option A $ 9,880.00 $ 10,057.00 $ 7,792.00 No BID
TOTAL $ 168,880.00 $ 155,116.00 $ 118,582.00 $ -
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 11-12-2019 Title: Public Hearing on the Brownfield Plan
for 1208 Eighth
Submitted By: Dave Alexander Department: Economic Development
Brief Summary: To hold a public hearing on the request for a Brownfield Plan Amendment for 1208
Eighth for Core Development and to consider the attached resolution.
Detailed Summary: Core Development submitted a Brownfield Plan Amendment for 1208 Eighth
Street to the Brownfield Redevelopment Authority, which approved It on Oct. 8, 2019. The
Muskegon City Commission on Oct. 22, 2019 adopted a resolution setting a public hearing for Nov.
12, 2019. The amendment is intended to identify eligible activities proposed for the brownfield site
owned by Core Development. With an estimated investment of $700,000 for redevelopment of a
commercial building at 1208 Eighth, the plan anticipates eligible expenses of $145,129 to be paid
through the capture of tax increments through 2054. As part of the reimbursements, the city will
receive a $1,000 annual fee for its expenses. After all eligible costs incurred by the various parties
are reimbursed, the BRA may, as the capture term provides, continue to capture local taxes for five
more years for deposit into a Local Brownfield Revolving Fund.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To close the public hearing and approve the Brownfield Plan Amendment
for 1208 Eighth for Core Development with the attached resolution.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
1208 8th Street Redevelopment Project
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of Muskegon, County of
Muskegon, Michigan (the “City”), held in the City Commission Chambers on the 12th day of
November, 2019 at 5:30 p.m., prevailing Eastern Time.
PRESENT:
ABSENT:
The following preamble and resolution were offered by Commissioner
___________________ and supported by Commissioner __________________.
WHEREAS, in accordance with the provisions of Act 381, Public Acts of Michigan, 1996,
as amended (“Act 381”), the City of Muskegon Brownfield Redevelopment Authority (the
“Authority”) has prepared and approved a Brownfield Plan Amendment to add 1208 8th Street
Redevelopment Project; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to the City
Commission requesting its approval of the Brownfield Plan Amendment; and
WHEREAS, the City Commission has provided notice and a reasonable opportunity to
the taxing jurisdictions levying taxes subject to capture to express their views and
recommendations regarding the Brownfield Plan Amendment, as required by Act 381; and
WHEREAS, not less than 10 days has passed since the City Commission provided
notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, the City Commission held a public hearing on the proposed Brownfield Plan
on November 12, 2019.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. That the Brownfield Plan constitutes a public purpose under Act 381.
2. That the Brownfield Plan meets all the requirements of Section 13(1) of Act 381.
3. That the proposed method of financing the costs of the eligible activities, as identified
in the Brownfield Plan and defined in Act 381, is feasible and the Authority has the
authority to arrange the financing.
4. That the costs of the eligible activities proposed in the Brownfield Plan are
reasonable and necessary to carry out the purposes of Act 381.
5. That the amount of captured taxable value estimated to result from the adoption of
the Brownfield Plan is reasonable.
6. That the Brownfield Plan in the form presented is approved and is effective
immediately.
7. That all resolutions or parts of resolutions in conflict herewith shall be and the same
are hereby rescinded.
Be it Further Resolved that the Mayor and City Clerk are hereby authorized to execute
all documents necessary or appropriate to implement the provisions of the Brownfield Plan.
AYES:
NAYS:
RESOLUTION DECLARED APPROVED.
Ann Marie Meisch, City Clerk
Stephen J Gawron, Mayor
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 November 12, 2019 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.
Ann Marie Meisch, City Clerk
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
FOR
1208 8TH STREET
MUSKEGON, MICHIGAN
Approved by the Brownfield Redevelopment Authority on: ______________________
Approved by the City Commissioners on: ______________________
Prepared with the assistance of:
ENVIROLOGIC TECHNOLOGIES, INC.
2960 Interstate Parkway
Kalamazoo, Michigan 49048
(269) 342-1100
TABLE OF CONTENTS
1. INTRODUCTION AND PURPOSE ................................................................................................................ 1
2. ELIGIBLE PROPERTY INFORMATION ........................................................................................................ 1
3. PROPOSED REDEVELOPMENT ................................................................................................................... 3
4. BROWNFIELD CONDITIONS........................................................................................................................ 3
5. BROWNFIELD PLAN ELEMENTS (AS SPECIFIED IN SECTION 13[1] OF ACT 381) ............................ 4
A. DESCRIPTION OF COSTS TO BE PAID FOR WITH TAX INCREMENT REVENUES .......................................... 4
B. SUMMARY OF ELIGIBLE ACTIVITIES ............................................................................................... 5
C. ESTIMATE OF CAPTURED TAXABLE VALUE AND TAX INCREMENT REVENUES ......................................... 5
D. METHOD OF FINANCING AND DESCRIPTION OF ADVANCES BY THE MUNICIPALITY ................................. 6
E. MAXIMUM AMOUNT OF NOTE OR BONDED INDEBTEDNESS .............................................................. 7
F. DURATION OF BROWNFIELD PLAN ............................................................................................... 7
G. ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS ................ 7
H. LEGAL DESCRIPTION, PROPERTY MAP, STATEMENT OF QUALIFYING CHARACTERISTICS, AND PERSONAL
PROPERTY............................................................................................................................... 7
I. ESTIMATES OF RESIDENTS AND DISPLACEMENT OF FAMILIES ............................................................. 8
J. PLAN FOR RELOCATION OF DISPLACED PERSONS............................................................................. 8
K. PROVISIONS FOR RELOCATION COSTS ........................................................................................... 8
L. STRATEGY FOR COMPLIANCE WITH MICHIGAN’S RELOCATION ASSISTANCE LAW ................................... 8
M. OTHER MATERIAL THAT THE AUTHORITY OR GOVERNING BODY CONSIDERS PERTINENT ......................... 8
EXHIBITS
FIGURE 1: Location Map
FIGURE 2: Site Plan
SCHEDULES/TABLES
TABLE 1: Summary of Eligible Costs
TABLE 2: Estimate of Total Captured Incremental Taxes
TABLE 3: Estimate of Annual Effect on Taxing Jurisdictions
TABLE 4: Captured Taxable Value and Tax Increment Revenue by Year and Aggregate for Each
Taxing Jurisdiction
TABLE 5: Estimated Reimbursement Schedule
i
ATTACHMENTS
NOTICE OF PUBLIC HEARING
NOTICE TO TAXING JURISDICTIONS
RESOLUTION SUPPORTING A BROWNFIELD PLAN — CITY OF MUSKEGON BRA/DDA
RESOLUTION APPROVING A BROWNFIELD PLAN — CITY OF MUSKEGON COMMISSIONERS
ii
CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
FOR
1208 8TH STREET
MUSKEGON, MICHIGAN
1. INTRODUCTION AND PURPOSE
Envirologic has prepared this Brownfield Plan on behalf of the City of Muskegon Brownfield
Redevelopment Authority for a property located at 1208 8th Street, Muskegon, Michigan. The
parcel is currently a vacant building formerly used as an automobile dealership. A local developer
intends to extensively renovate the building to create new commercial space.
The proposed project is a public benefit by bringing a previously vacant and dilapidated structure
into compliance with building codes, eliminating blight, creating new commercial space, creating
new jobs, increasing the City’s tax base, improving parking, and supporting the City’s efforts to
spur new development within the core downtown area of Muskegon.
The purpose of this Plan is to support the project through the capture of state and local tax
increment revenues for various environmental and non-environmental eligible costs.
The property is located within a Downtown Development Authority (DDA) district. The DDA has
entered into an interlocal agreement with the Brownfield Redevelopment Authority to forego
their portion of the tax increment capture in support of the project due to its benefits to the
community.
The purpose of this plan, to be implemented by the Authority, is to satisfy the requirements for a
Brownfield Plan as specified in Act 381 of the Public Acts of the State of Michigan of 1996, as
amended, MCL 125.2651 et. seq., which is known as the “Brownfield Redevelopment Financing
Act.” Terms used in this document are as defined in Act 381.
2. ELIGIBLE PROPERTY INFORMATION
The property subject to this Brownfield Plan consists of one legal parcel and the adjacent public
right-of-ways. The 1208 8th Street property subject to this Brownfield Plan consists of a parcel
with a tax identification number of 61-24-205-317-0007-00. The legal description for the
property, obtained from tax records is:
1
City of Muskegon Revised Plat of 1903 Lot 7&8 Block 317 except a strip of land 8 feet side
across southeasterly end of Lot 8 for use as an alley subject to Cross Parking and Refuse
Easement recorded L/P 3642/568.
Refer to Figure 1 (Exhibits) for a location map and legal description.
This parcel has been developed for industrial and commercial uses since the late 1800s. Early
industrial uses of the property include boiler shop manufacturing and a foundry operated by
Behrens Woodard & Jones Boiler Shops & Muskegon Novelty Iron Works, then Turnbuilt Boiler
Works Company, followed by Lakeside Foundry. The current building on site was constructed in
1945 and was utilized as an automotive dealership and repair facility. A northern addition used
for office space was added on in 1956. Mobil Oil Company installed two underground storage
tanks (USTs) at the property in 1968; the USTs were removed in May 1991.
The initial assessment of this parcel consisted of the collection of one soil sample from the
excavation and the removal of the two USTs that existed at the property, which at the time was
addressed as 677 West Western Avenue. No petroleum contamination was present at that
location. Further assessment of the property was conducted in 1991 and included the analysis of
a single composite soil sample for copper, lead, and nickel. The analytical results from the sample
indicated elevated concentrations of copper, lead, and nickel above background levels. The
reported concentration of copper exceeds the current Groundwater-Surface Water Interface
Protection Criterion (GSIPC) while the concentration of lead exceeds the Residential Direct
Contact criterion. Two soil samples were collected in April 2002 and analyzed for polynuclear
aromatics (PNAs) and Michigan 10 Metals. The analytical data indicated the presence of arsenic,
copper, selenium, zinc, naphthalene, phenanthrene, fluoranthene, and benzo(a)pyrene at
concentrations exceeding the current Generic Residential Cleanup Criteria. Envirologic conducted
assessment activities in 2019 and demonstrated the presence of mercury, copper, lead, and silver
in excess of Generic Residential Cleanup Criteria.
Based on the presence of various contaminants above Generic Residential Cleanup Criteria, the
property is a “facility” as defined by Part 201 of the Natural Resources and Environmental
Protection Act (1994 PA 451) and is also an “eligible property” as defined by the Brownfield
Redevelopment Financing Act (1996 PA 381).
2
3. PROPOSED REDEVELOPMENT
The property currently consists of a small vacant building and an asphalt-covered parking lot to
the east. Public right-of-ways with sidewalks abut the property to the north and west. The
developer intends to put a new entrance on the north, and possibly west, side and create several
interior commercial lease spaces. An outdoor seating area may be created to support one of the
lease spaces as a coffee shop, café, or similar establishment. The final outcome will be a building
that retains the historical brick exterior, with new window treatments and entryways to create a
modern commercial space.
Portions of the adjacent streets may be expanded and/or striped to create angled parking, which
would increase the available parking in the area as well as benefit public safety concerns.
The private investment is estimated at $700,000.
There are no tenants currently. It is estimated that the lease space would be sufficient to support
a minimum of 6–12 full time equivalent jobs.
4. BROWNFIELD CONDITIONS
Because of the historical uses of the property, concerns about environmental conditions and the
possible need to mitigate environmental risks was paramount. Extensive environmental
assessment of the property was needed including Phase I and II Environmental Site Assessments,
a Baseline Environmental Assessment, and Due Care documentation. These assessments
demonstrated that residual contamination remains in soil at the site. The assessments also
demonstrated that risks of vapor intrusion from various contaminant sources were not present.
The existing asphalt parking and building slab provide an adequate barrier to the contaminated
soil.
The condition of the building is such that a complete renovation is needed to make it functional
and up to current building codes and standards. Full interior demolition and complete
replacement of all heating, electrical, water, and sewer systems are needed to make the building
functional. Because the site was a former auto dealership, three inground hydraulic hoists remain
that will be removed as part of the interior demolition.
3
5. BROWNFIELD PLAN ELEMENTS (as specified in Section 13[1] of Act 381)
A. Description of Costs to be Paid for with Tax Increment Revenues
This Brownfield Plan has been developed to reimburse existing and anticipated costs to be
incurred by the developer and, possibly, the City. Tax increment revenues will be captured
for reimbursement from both local and school taxes. An Act 381 Work Plan will not be
prepared to seek approval of school tax capture. BEA Activities, such as the Phase I and II
Environmental Site Assessments and Baseline Environmental Assessment, are statutorily
eligible for reimbursement with both local and school tax increment revenues. The total
cost of BEA Activities is $17,100.
The Plan will also pay for eligible non-environmental costs including demolition activities
estimated at $38,885. The demolition cost includes removal of non-functional building
mechanical systems, window removals, floor removal, and removal of interior walls and
ceilings.
Public infrastructure improvements may include improvements to W. Western and/or 8th
Street to expand the street for angled parking. Costs may include new curbing, striping,
re-paving, and other improvements within the public right-of-way. These costs may be
borne by the developer or the City. Costs are estimated at $40,000.
Various “Site Preparation Activities” are eligible under the Act that may be conducted as
part of the redevelopment. Eligible activities that may be conducted could include staking
and surveying, temporary erosion control, temporary site control, temporary traffic
control, and temporary facilities. A cost of $5,000 has been estimated for the total cost of
all eligible Site Preparation Activities.
Specific costs to be paid for with tax increment revenues are detailed in Table 1 and
described below.
The development of the Brownfield Plan is also an eligible activity, estimated at a cost of
$7,500.
The Plan also includes Administrative Costs of the Authority. For the purposes of this Plan,
the Administrative Costs of the City of Muskegon Brownfield Redevelopment Authority
4
were projected by allocating a fixed fee of $1,000 annually. Typically, the City has
calculated a fee of 10% of the cost of total eligible activities inclusive of contingencies.
That amount may not be sufficient on an annual basis if the City needs to retain
professional services (e.g., legal, financial, and environmental) in order to implement the
Plan. Thus, a slightly higher annual administrative cost was utilized.
Contingencies at 15% of the eligible costs (excluding those already conducted) is included
at an eligible cost and totals $12,583.
The total potential brownfield eligible activity costs—including contingencies,
administrative costs of the Authority, preparation of the Brownfield Plan—are estimated
at $145,129.
Additional tax increment revenues will be collected and disbursed to the State of
Michigan’s State Brownfield Redevelopment Fund. Additionally, once the eligible activities
are reimbursed, tax increment revenues may be placed in the City’s Local Brownfield
Revolving Fund (LBRF).
B. Summary of Eligible Activities
Completed environmental activities include a Phase I Environmental Site Assessment,
Baseline Environmental Assessment (BEA), and Documentation of Due Care.
Non-environmental activities include demolition, site preparation, and public
infrastructure improvements related to improvements for street-level parking.
The development of the Brownfield Plan, administrative costs of the Authority, and
contingencies are also eligible activities.
C. Estimate of Captured Taxable Value and Tax Increment Revenues
The initial taxable value is the value of the eligible property in 2019 (currently a taxable
value of $73,006). The developer has approached the City and is pursuing development of
an Obsolete Property Rehabilitation District for the property and a subsequent Obsolete
Property Redevelopment Exemption. The exemption would delay taxation on the building
improvements for a 12-year period. Because of the exemption, this Plan proposes to delay
initiating capture of tax increment for five full years. Capture of available tax increment
5
would start with 2025 property taxes. The Obsolete Property Redevelopment exemption
will still be in place when capture through this Brownfield Plan is initiated. Thus, it is likely
that there will be no available tax increment revenues to capture during the first several
years. However, any improvement in land values above the present-day land value would
be capturable—though likely insignificant. In 2019, the value of the land was recorded as
$65,000 (not the taxable value), and this can be the basis of determining if there are
improvements in land value during the term of the Obsolete Property Rehabilitation
Exemption.
Once the Obsolete Property Rehabilitation Exemption expires at the end of 2031, the tax
increment revenues will be available for capture through this Plan. The projected taxable
value of land and buildings after improvements and expiration of the Obsolete Property
Rehabilitation Exemption is $250,000. This value would produce about $9,600 in available
tax increment revenues annually (school and local tax increment). This Plan anticipates
only two years of school tax increment capture to reimburse the school eligible costs.
Beyond that time, the Plan would capture local only taxes until all reimbursements are
made. The Plan revenues as presented in the attached tables show that available tax
increment revenues may not be sufficient to cover eligible costs. However, the tables do
not include an inflationary adjustment and other factors that could lead to additional
creation of taxable value and shorten the term of reimbursement.
The estimated captured taxable value for this redevelopment by year and in aggregate for
each taxing jurisdiction is depicted in tabular form (Tables 2, 3, and 4).
A summary of the estimated reimbursement schedule and the amount of capture into the
LBRF by year and in aggregate are presented as Table 5. Once eligible expenses are
reimbursed, the Authority may capture up to five full years of the tax increment and
deposit the revenues into an LBRF.
D. Method of Financing and Description of Advances by the Municipality
At this time, eligible activities are projected to be financed by the developer.
It is possible that the City may wish to finance public infrastructure improvements to
ensure consistency and workmanship with surrounding public infrastructure.
6
No advances by the municipality have been made.
E. Maximum Amount of Note or Bonded Indebtedness
At this time, there are no plans by the Authority to incur indebtedness to support
development of this site, but such plans could be made in the future to assist in the
development if the Authority so chooses.
F. Duration of Brownfield Plan
The Authority intends to begin capture of tax increment in 2025. This Plan will then
remain in place until the eligible activities have been fully reimbursed and up to five full
years of capture into the LBRF is complete or 30 years, whichever occurs sooner.
G. Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions
The estimated amount of tax increment revenues to be captured for this redevelopment
from each taxing jurisdiction by year and in aggregate is presented as Table 4.
H. Legal Description, Property Map, Statement of Qualifying Characteristics, and Personal
Property
The 1208 8th Street parcel subject to this Brownfield Plan consists of a parcel with a tax
identification number of 61-24-205-317-0007-00. The property subject to this Brownfield
Plan is the parcel at the corner of 8th Street and W. Western Avenue.
The legal description for the property, obtained from tax records is:
City of Muskegon Revised Plat of 1903 Lot 7&8 Block 317 except a strip of land 8
feet side across southeasterly end of Lot 8 for use as an alley subject to Cross
Parking and Refuse Easement recorded L/P 3642/568.
The property meets the definition of a “brownfield” as defined by Public Act 381, the
Brownfield Redevelopment Financing Act of 1996, as amended, based upon the fact that
the parcel meets the definition of a “facility” as defined by Part 201 of NREPA. The
“facility” designation is based upon the presence of metals in shallow soil attributable to
the historic use of the property as an automobile dealership.
7
This Brownfield Plan does intend to capture tax increment revenues associated with
personal property tax, if available.
I. Estimates of Residents and Displacement of Families
There will be no displacement of families from this redevelopment.
J. Plan for Relocation of Displaced Persons
Not applicable.
K. Provisions for Relocation Costs
Not applicable.
L. Strategy for Compliance with Michigan’s Relocation Assistance Law
Not applicable.
M. Other Material that the Authority or Governing Body Considers Pertinent
Not applicable.
8
EXHIBITS
FIGURE 1: Location Map
FIGURE 2: Site Plan
SCHEDULES/TABLES
TABLE 1: Summary of Eligible Costs
TABLE 2: Estimate of Total Captured Incremental Taxes
TABLE 3: Estimate of Annual Effect on Taxing Jurisdictions
TABLE 4: Captured Taxable Value and Tax Increment Revenue by Year and Aggregate for Each
Taxing Jurisdiction
TABLE 5: Estimated Reimbursement Schedule
ATTACHMENTS
NOTICE OF PUBLIC HEARING
NOTICE TO TAXING JURISDICTIONS
RESOLUTION SUPPORTING A BROWNFIELD PLAN — CITY OF MUSKEGON BRA/DDA
RESOLUTION APPROVING A BROWNFIELD PLAN — CITY OF MUSKEGON COMMISSIONERS
EXHIBITS
Figure 1: Location Map
Figure 2: Site Plan
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MUSKEGON COUNTY
MUSKEGON, MICHIGAN
SOURCE:MUSKEGON WEST, MICHIGAN USGS 7.5 MINUTE TOPOGRAPHIC QUADRANGLE MAPS
MAPTECH© U.S. TERRAIN SERIES™ ®MAPTECH©, INC. 606-433-8500
000000 AAAAAA File: AA.dgn Model: Location Map
PROJECT NO.
1208 8th ST.
180309
FIGURE No.
1208 8th ST.
MUSKEGON, MI 49440
0 500 1000 2000 4000
environmental consulting
2960 INTERSTATE PARKWAY
KALAMAZOO, MICHIGAN 49048
services
LOCATION MAP
1
PH: (269) 342-1100 FAX: (269) 342-4945
SCALE 1" = 2000'
PARCEL #61-24-205-317-0007-00
APPROXIMATE LOCATION
OF HYDRAULIC HOISTS
8T
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.
NOTE:
THIS IS NOT A PROPERTY BOUNDARY SURVEY, PROPERTY BOUNDARIES SHOWN ON THIS MAP
ARE BASED ON AVAILABLE FURNISHED INFORMATION AND ARE APPROXIMATE ONLY AND
SHOULD NOT BE USED TO ESTABLISH PROPERTY BOUNDARY LOCATION IN THE FIELD.
1208 8th ST.
E 1208 8th ST.
V MUSKEGON, MI 49440
A
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A
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SITE PLAN
PROJECT NO.
180309
000000 AAAAAA File: Model:
FIGURE No.
environmental consulting
2960 INTERSTATE PARKWAY
KALAMAZOO, MICHIGAN 49048
services
2
PH: (269) 342-1100 FAX: (269) 342-4945
SCHEDULES/TABLES
Table 1: Summary of Eligible Costs
Table 2: Estimate of Total Captured Incremental Taxes
Table 3: Estimate of Annual Effect on Taxing Jurisdictions
Table 4: Captured Taxable Value and Tax Increment Revenue
by Year and Aggregate for Each Taxing Jurisdiction
Table 5: Estimated Reimbursement Schedule
Table 1
Summary of Eligible Costs
1208 8th Street, Muskegon, Michigan
Available to
Max School
Estimated Cost Reimburse with
Capture
Eligible Activities School and Local
BEA Activities
Phase I and II ESAs, BEA $ 17,100.00 $ 17,100.00 $ 6,562.84
Non-Environmental Activities
Site and Building Demolition $ 38,885.00 $ -
Public Infrastructure Improvements $ 40,000.00 $ -
Site Preparation Activities $ 5,000.00 $ -
TOTAL COSTS OF ELIGIBLE ACTIVITIES $ 100,985.00 $ 17,100.00 $ 6,562.84
Financing Costs $ - $ -
Contingencies (15%) $ 12,582.75 $ -
Brownfield and Work Plan Development $ 7,500.00 $ - $ -
TOTAL $ 121,067.75 $ 17,100.00 $ 6,562.84
Administrative Costs of the Authority (estimated) $ 23,000.00 $ 23,000.00 $ 8,827.21
Captured and Disbursed to State Brownfield Redevelopment Fund $ 1,061.96
Additional Capture for LBRF TBD
Total Eligible Costs $ 145,129.71 $ 40,100.00 $ 15,390.05
Table 2
Estimate of Total Captured Incremental Taxes
1208 8th Street, Muskegon, Michigan
Annual Total Available for
Tax Revenues from Estimated Future Estimated Future Tax Available Incremental Brownfield
Year Capturable Initial Taxable Value Authority
Initial Taxable Value Taxable Value Revenues Tax Revenues Redevelopment Fund
Millage Disbursements
2025 54.3473 $ 73,006.00 $ 3,967.68 $ 73,006.00 $ 3,967.68 $ - $ - $ -
2026 54.3473 $ 73,006.00 $ 3,967.68 $ 73,006.00 $ 3,967.68 $ - $ - $ -
2027 54.3473 $ 73,006.00 $ 3,967.68 $ 73,006.00 $ 3,967.68 $ - $ - $ -
2028 54.3473 $ 73,006.00 $ 3,967.68 $ 73,006.00 $ 3,967.68 $ - $ - $ -
2029 54.3473 $ 73,006.00 $ 3,967.68 $ 73,006.00 $ 3,967.68 $ - $ - $ -
2030 54.3473 $ 73,006.00 $ 3,967.68 $ 73,006.00 $ 3,967.68 $ - $ - $ -
2031 54.3473 $ 73,006.00 $ 3,967.68 $ 73,006.00 $ 3,967.68 $ - $ - $ -
2032 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2033 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2034 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2035 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2036 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2037 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2038 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2039 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2040 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2041 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2042 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2043 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2044 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2045 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2046 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2047 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2048 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2049 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2050 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2051 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2052 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2053 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
2054 54.3473 $ 73,006.00 $ 3,967.68 $ 250,000.00 $ 13,586.83 $ 9,619.15 $ 530.98 $ 9,088.16
TOTAL $ 134,668.04 $ 7,433.75 $ 127,234.30
OPRA Designation in place. Any increment from the taxation of land and personal property would still be captured.
Table 3
Estimate of Annual Effect on Taxing Jurisdictions
1208 8th, Muskegon, Michigan
After OPRA designation expires
SUMMER 1
Taxing Jurisdiction State Ed Tax2 County Operating Total
Millage 6 5.6984 11.6984
Initial Taxable Value $ 73,006.00 $ 438.04 $ 416.02 $ 854.05
Future Taxable Value $ 250,000.00 $ 1,500.00 $ 1,424.60 $ 2,924.60
Captured Taxable Value $ 176,994.00 $ 1,061.96 $ 1,008.58 $ 2,070.55
WINTER TAXES 1
Senior Cit Central Comm College MPS Debt
Taxing Jurisdiction County Museum County Veterans Services Dispatch Comm College Debt MAISD City Oper City Sanitation Hackley Library Hackley Debt MPS Oper MPS Debt 1995 2009 MPS Sinking Total
Millage 0.3221 0.0752 0.5 0.3000 2.2037 0.34 4.758 10.0899 3 2.4 0.4866 18 4.07 3.29 1 50.8355
Initial Taxable Value $ 73,006.00 $ 23.52 $ 5.49 $ 36.50 $ 21.90 $ 160.88 $ 24.82 $ 347.36 $ 736.62 $ 219.02 $ 175.21 $ 35.52 $ 1,314.11 $ 297.13 $ 240.19 $ 73.01 $ 3,711.30
Future Taxable Value $ 250,000.00 $ 80.53 $ 18.80 $ 125.00 $ 75.00 $ 550.93 $ 85.00 $ 1,189.50 $ 2,522.48 $ 750.00 $ 600.00 $ 121.65 $ 4,500.00 $ 1,017.50 $ 822.50 $ 250.00 $ 12,708.88
Captured Taxable Value $ 176,994.00 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ 3,185.89 $ - $ - $ 176.99 $ 7,548.60
1. Based on millages from 2018 taxes Total Millage 62.5339
2. 3 mils of captured SET conveyed to State Brownfield Redevelopment Fund Total Annual Future Tax Liability $ 15,633.48
3. School is 38.38% Total Capturable Local Millages 30.3473
Total Annual Capturable Local Tax Increment $ 5,371.29
Total Capturable School Millages 24.00000
Total Annual Capturable School Tax Increment $ 4,247.86
Total School and Local Tax Increment Revenue/Yr $ 9,619.15
Table 4
Captured Taxable Value and Tax Increment Revenue by Year and Aggregate for Each Taxing Jurisdiction
1208 8th Street, Muskegon, Michigan
Senior Cit Comm College MPS Debt
Year Captured Taxable Value State Ed Tax 2 County Operating County Museum County Veterans Services Central Dispatch Comm College Debt MAISD City Oper City Sanitation Hackley Library Hackley Debt MPS Oper MPS Debt 1995 2009 MPS Sinking Total
6 5.6984 0.3221 0.0752 0.5 0.3000 2.2037 0.34 4.758 10.0899 3 2.4 0.4866 18 4.07 3.29 1 62.5339
2025 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
2026 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
2027 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
2028 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
2029 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
2030 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
2031 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
2032 $ 176,994.00 $ 1,061.96 $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ 3,185.89 $ - $ - $ 176.99 $ 9,619.15
2033 $ 176,994.00 $ 1,061.96 $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ 3,185.89 $ - $ - $ 176.99 $ 9,619.15
2034 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2035 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2036 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2037 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2038 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2039 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2040 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2041 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2042 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2043 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2044 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2045 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2046 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2047 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2048 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2049 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2050 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2051 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2052 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2053 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
2054 $ 176,994.00 $ - $ 1,008.58 $ 57.01 $ 13.31 $ 88.50 $ 53.10 $ 390.04 $ - $ 842.14 $ 1,785.85 $ 530.98 $ 424.79 $ - $ - $ - $ - $ 176.99 $ 5,371.29
TOTAL CAPTURABLE TAXES $ 2,123.93 $ 23,197.40 $ 1,311.22 $ 306.13 $ 2,035.43 $ 1,221.26 $ 8,970.96 $ - $ 19,369.16 $ 41,074.59 $ 12,212.59 $ 9,770.07 $ - $ 6,371.78 $ - $ - $ 4,070.86 $ 132,035.38
3. Half of SET conveyed to State Brownfield Redevelopment Fund
OPRA Designation in place. Any tax increment on land and personal property will be captured. `
Table 5
Estimated Reimbursement Schedule
1208 8th Street, Muskegon, Michigan
Funds Disbursed
Incremental
State
Year Taxes Available Available to Available to Administration and Administration and Local Brownfield Local Brownfield
Available to Brownfield
for Capturable Reimburse Reimburse Implementation Implementation Revolving Fund Revolving Fund
Reimburse (Local) Redevelopment
(School) (Aggregate) Local School (School)* (Local)
Fund
2025 $ - $ - $ - $ - $ - $ - $ -
2026 $ - $ - $ - $ - $ - $ - $ -
2027 $ - $ - $ - $ - $ - $ - $ -
2028 $ - $ - $ - $ - $ - $ - $ -
2029 $ - $ - $ - $ - $ - $ - $ -
2030 $ - $ - $ - $ - $ - $ - $ -
2031 $ - $ - $ - $ - $ - $ - $ -
2032 $ 9,619.15 $ 3,333.08 $ 4,755.08 $ 8,088.16 $ 530.98 $ 616.21 $ 383.79
2033 $ 9,619.15 $ 3,229.76 $ 4,755.08 $ 16,073.00 $ 530.98 $ 616.21 $ 383.79
2034 $ 5,371.29 $ - $ 4,371.29 $ 20,444.29 $ - $ 1,000.00 $ - $ - $ -
2035 $ 5,371.29 $ - $ 4,371.29 $ 24,815.58 $ - $ 1,000.00 $ - $ - $ -
2036 $ 5,371.29 $ - $ 4,371.29 $ 29,186.87 $ - $ 1,000.00 $ - $ - $ -
2037 $ 5,371.29 $ - $ 4,371.29 $ 33,558.16 $ - $ 1,000.00 $ - $ - $ -
2038 $ 5,371.29 $ - $ 4,371.29 $ 37,929.45 $ - $ 1,000.00 $ - $ - $ -
2039 $ 5,371.29 $ - $ 4,371.29 $ 42,300.74 $ - $ 1,000.00 $ - $ - $ -
2040 $ 5,371.29 $ - $ 4,371.29 $ 46,672.03 $ - $ 1,000.00 $ - $ - $ -
2041 $ 5,371.29 $ - $ 4,371.29 $ 51,043.32 $ - $ 1,000.00 $ - $ - $ -
2042 $ 5,371.29 $ - $ 4,371.29 $ 55,414.61 $ - $ 1,000.00 $ - $ - $ -
2043 $ 5,371.29 $ - $ 4,371.29 $ 59,785.90 $ - $ 1,000.00 $ - $ - $ -
2044 $ 5,371.29 $ - $ 4,371.29 $ 64,157.19 $ - $ 1,000.00 $ - $ - $ -
2045 $ 5,371.29 $ - $ 4,371.29 $ 68,528.48 $ - $ 1,000.00 $ - $ - $ -
2046 $ 5,371.29 $ - $ 4,371.29 $ 72,899.77 $ - $ 1,000.00 $ - $ - $ -
2047 $ 5,371.29 $ - $ 4,371.29 $ 77,271.06 $ - $ 1,000.00 $ - $ - $ -
2048 $ 5,371.29 $ - $ 4,371.29 $ 81,642.35 $ - $ 1,000.00 $ - $ - $ -
2049 $ 5,371.29 $ - $ 4,371.29 $ 86,013.64 $ - $ 1,000.00 $ - $ - $ -
2050 $ 5,371.29 $ - $ 4,371.29 $ 90,384.93 $ - $ 1,000.00 $ - $ - $ -
2051 $ 5,371.29 $ - $ 4,371.29 $ 94,756.22 $ - $ 1,000.00 $ - $ - $ -
2052 $ 5,371.29 $ - $ 4,371.29 $ 99,127.51 $ - $ 1,000.00 $ - $ - $ -
2053 $ 5,371.29 $ - $ 4,371.29 $ 103,498.80 $ - $ 1,000.00 $ - $ - $ -
2054 $ 5,371.29 $ - $ 4,371.29 $ 107,870.09 $ - $ 1,000.00 $ - $ - $ -
Totals $ 132,035.38 $ 6,562.84 $ 101,307.25 $ 1,061.96 $ 22,232.42 $ 767.58 TBD TBD
* Amount of school TIR placed in LBRF limited to environmental costs
Remaining term of OPRA designation
ATTACHMENTS
Notice of Public Hearing
Notice to Taxing Jurisdictions
Resolution Supporting a Brownfield Plan — City of Muskegon BRA/DDA
Resolution Approving a Brownfield Plan — City of Muskegon Commissioners
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: November 12, 2019 Title: Convention Center Brownfield Grant
Submitted By: Frank Peterson Department: City Manager
Brief Summary: The Convention Center project incurred an unexpected expense for foundation
dewatering estimated at $499,999. Staff worked diligently to identify a funding source for the
change order. Michigan Department of Environment, Great Lakes, and Energy (EGLE) has
approved a grant to the City of Muskegon in the amount of $499,999. Staff is seeking approval to
authorize an expense of up to $499,999 to treat contaminated groundwater, and authorize staff to
sign the grant agreement to cover the costs of the treatment.
Detailed Summary: Much of downtown Muskegon is built upon soils that were brought in and used
as fill. At some point in the past 50 years, the soils under 4th street became contaminated with
PFOS. During normal ground water testing as part of the dewatering process, it was determined
that PFOS levels were too high to discharge the water into either the storm sewers or the county
wastewater system. The costs will not be borne by one individual contractor. It is likely that there
will be 6-8 contractors involved in the process; we followed the same selection process as was
used to identify subcontractors on the overall convention center project. After learning of the
potential for the great dewatering/treatment costs, staff worked to identify funding sources, as we
did not want to use our entire contingency budget so early in the construction schedule. After
chasing dozens of potential options to reduce the costs, we settled on applying for a grant through
EGLE. Last week, we received approval from EGLE for the entire request – the agreement is
attached. This action has cost the construction crew approximately 4 weeks. Accordingly, the
crews have been authorized to begin on-site treatment effective November 12, 2019.
Amount Requested: $499,999 Amount Budgeted: $0
Fund(s) or Account(s): EGLE Grant Fund(s) or Account(s):
Recommended Motion: To authorize staff to accept the $499,999 Brownfield Grant and expend
the funds as per the Project Budget included in Appendix A of the Grant Agreement
Check if the following Departments need to approve the item first:
Police Dept. Fire Dept. IT Dept.
For City Clerk Use Only:
Commission Action:
S TATE OF M ICHIGAN
DEPARTMENT OF
ENVIRONMENT, GREAT LAKES, AND ENERGY
L ANSING
GRETCHEN WHITMER LIESL EICHLER CLARK
GOVERNOR DIRECTOR
November 5, 2019
Mr. Frank Peterson
City Manager
City of Muskegon
933 Terrace Street
Muskegon, Michigan 49440
Dear Mr. Peterson:
SUBJECT: Renew Michigan Grant
Muskegon Convention Center
Tracking Code: 2020-2422
Location Code: 6F67
Enclosed for your records is an original signed agreement for the Muskegon Convention Center
Brownfield Redevelopment grant project.
As a reminder, a detailed work plan, including a budget and schedule, must be submitted and approved in
writing by the Department of Environment, Great Lakes, and Energy (EGLE) prior to conducting any
activities. Activities that are not part of an approved work plan or amended work plan are ineligible. You
may be responsible for payment of activities undertaken without prior EGLE approval.
Progress reports must be submitted to EGLE quarterly and must include invoices for expenses incurred
during the quarter. A progress report describing project status must be submitted even if no expenses
are incurred during the quarter.
If you have questions concerning your grant, or to request approval of a work plan, please contact me. I
look forward to working with you on this project.
Sincerely,
Andrea Ryswick, Brownfield Redevelopment Coordinator
Brownfield Assessment and Redevelopment Section
Remediation and Redevelopment Division
616-401-0827
Enclosures
cc: Ms. Carrie Geyer, EGLE
Mr. Ryan Londrigan, EGLE
Ms. Dawn Austin, EGLE
Mr. Mark Kussro, EGLE
File #2020-2422
CONSTITUTION HALL • 525 WEST ALLEGAN STREET • P.O. BOX 30473 • LANSING, MICHIGAN 48909-7973
Michigan.gov/EGLE • 800-662-9278
I. PROJECT SCOPE
This Agreement and its appendices constitute the entire Agreement between the State and the
Grantee and may be modified only by written agreement between the State and the Grantee.
(A) The scope of this project is limited to the activities specified in Appendix A and such activities as
are authorized by the State under this Agreement. Any change in project scope requires prior
written approval in accordance with Section III, Changes, in this Agreement.
(B) By acceptance of this Agreement, the Grantee commits to complete the project identified in
Appendix A within the time period allowed for in this Agreement and in accordance with the terms
and conditions of this Agreement.
II. AGREEMENT PERIOD
Upon signature by the State, the Agreement shall be effective from the Start Date until the End Date
on page 1. The State shall have no responsibility to provide funding to the Grantee for project work
performed except between the Start Date and the End Date specified on page 1. Expenditures
made by the Grantee prior to the Start Date or after the End Date of this Agreement are not eligible
for payment under this Agreement.
III. CHANGES
Any changes to this Agreement other than budget line item revisions less than 20 percent of the
total Agreement amount shall be requested by the Grantee or the State in writing and implemented
only upon approval in writing by the State. The State reserves the right to deny requests for
changes to the Agreement or to the appendices. No changes can be implemented without approval
by the State.
IV. GRANTEE DELIVERABLES AND REPORTING REQUIREMENTS
The Grantee shall submit deliverables and follow reporting requirements specified in Appendix A of
this Agreement.
(A) The Grantee must complete and submit quarterly progress reports according to a form and
format prescribed by the State and must include supporting documentation of eligible project
expenses. These reports shall be due according to the following:
Reporting Period Due Date
January 1 – March 31 April 30
April 1 – June 30 July 31
July 1 – September 30 Before October 15*
October 1 – December 31 January 31
*Due to the State’s year-end closing procedures, there will be an accelerated due date for the report
covering July 1 – September 30. Advance notification regarding the due date for the quarter ending
September 30 will be sent to the Grantee. If the Grantee is unable to submit a report in early
October for the quarter ending September 30, an estimate of expenditures through September 30
must be submitted to allow the State to complete its accounting for that fiscal year.
The forms provided by the State shall be submitted to the State’s contact at the address on page 1.
All required supporting documentation (invoices, proof of payment, etc.) for expenses must be
included with the report.
2
(B) The Grantee shall provide a final project report in a format prescribed by the State. The
Grantee shall submit the final status report, including all supporting documentation for expenses,
along with the final project report and any other outstanding products within 30 days from the End
Date of the Agreement.
(C) The Grantee must provide electronic copies of all products and deliverables in accordance with
Appendix A.
(D) All products shall acknowledge that the project was supported in whole or in part by the State,
per the guidelines provided by the program.
(E) If 15 percent (15%) or more of the grant amount is expended in a single quarter, payment
requests may be submitted once monthly during that quarter.
V. GRANTEE RESPONSIBILITIES
(A) The Grantee agrees to abide by all applicable local, state, and federal laws, rules, ordinances,
and regulations in the performance of this grant.
(B) All local, state, and federal permits, if required, are the responsibility of the Grantee. Award of
this grant is not a guarantee of permit approval by the State.
(C) The Grantee shall be solely responsible to pay all applicable taxes and fees, if any, that arise
from the Grantee’s receipt or execution of this grant.
(D) The Grantee is responsible for the professional quality, technical accuracy, timely completion,
and coordination of all designs, drawings, specifications, reports, and other services submitted to
the State under this Agreement. The Grantee shall, without additional compensation, correct or
revise any errors, omissions, or other deficiencies in drawings, designs, specifications, reports, or
other services.
(E) The State’s approval of drawings, designs, specifications, reports, and incidental work or
materials furnished hereunder shall not in any way relieve the Grantee of responsibility for the
technical adequacy of the work. The State’s review, approval, acceptance, or payment for any of
the services shall not be construed as a waiver of any rights under this Agreement or of any cause
of action arising out of the performance of this Agreement.
(F) The Grantee acknowledges that it is a crime to knowingly and willingly file false information with
the State for the purpose of obtaining this Agreement or any payment under the Agreement, and
that any such filing may subject the Grantee, its agents, and/or employees to criminal and civil
prosecution and/or termination of the grant.
VI. USE OF MATERIAL
Unless otherwise specified in this Agreement, the Grantee may release information or material
developed under this Agreement, provided it is acknowledged that the State funded all or a portion
of its development.
The State, and federal awarding agency, if applicable, retains a royalty-free, nonexclusive and
irrevocable right to reproduce, publish, and use in whole or in part, and authorize others to do so, any
copyrightable material or research data submitted under this grant whether or not the material is
copyrighted by the Grantee or another person. The Grantee will only submit materials that the State
can use in accordance with this paragraph.
3
VII. ASSIGNABILITY
The Grantee shall not assign this Agreement or assign or delegate any of its duties or obligations
under this Agreement to any other party without the prior written consent of the State. The State
does not assume responsibility regarding the contractual relationships between the Grantee and any
subcontractor.
VIII. SUBCONTRACTS
The State reserves the right to deny the use of any consultant, contractor, associate, or other
personnel to perform any portion of the project. The Grantee is solely responsible for all contractual
activities performed under this Agreement. Further, the State will consider the Grantee to be the sole
point of contact with regard to contractual matters, including payment of any and all charges resulting
from the anticipated Grant. All subcontractors used by the Grantee in performing the project shall be
subject to the provisions of this Agreement and shall be qualified to perform the duties required.
IX. NON-DISCRIMINATION
The Grantee shall comply with the Elliott Larsen Civil Rights Act, 1976 PA 453, as amended,
MCL 37.2101 et seq., the Persons with Disabilities Civil Rights Act, 1976 PA 220, as amended,
MCL 37.1101 et seq., and all other federal, state, and local fair employment practices and equal
opportunity laws and covenants that it shall not discriminate against any employee or applicant for
employment, to be employed in the performance of this Agreement, with respect to his or her hire,
tenure, terms, conditions, or privileges of employment, or any matter directly or indirectly related to
employment, because of his or her race, religion, color, national origin, age, sex, height, weight,
marital status, or physical or mental disability that is unrelated to the individual’s ability to perform
the duties of a particular job or position. The Grantee agrees to include in every subcontract
entered into for the performance of this Agreement this covenant not to discriminate in
employment. A breach of this covenant is a material breach of this Agreement.
X. UNFAIR LABOR PRACTICES
The Grantee shall comply with the Employers Engaging in Unfair Labor Practices Act, 1980 PA
278, as amended, MCL 423.321 et seq.
XI. LIABILITY
(A) The Grantee, not the State, is responsible for all liabilities as a result of claims, judgments, or
costs arising out of activities to be carried out by the Grantee under this Agreement, if the liability
is caused by the Grantee, or any employee or agent of the Grantee acting within the scope of
their employment or agency.
(B) Nothing in this Agreement should be construed as a waiver of any governmental immunity by
the Grantee, the State, its agencies, or their employees as provided by statute or court decisions.
XII. CONFLICT OF INTEREST
No government employee, or member of the legislative, judicial, or executive branches, or member of
the Grantee’s Board of Directors, its employees, partner agencies, or their families shall benefit
financially from any part of this Agreement.
XIII. ANTI-LOBBYING
If all or a portion of this Agreement is funded with federal funds, then in accordance with OMB
Circular A-21, A-87, or A-122, as appropriate, the Grantee shall comply with the Anti-Lobbying Act,
which prohibits the use of all project funds regardless of source, to engage in lobbying the state or
4
federal government or in litigation against the State. Further, the Grantee shall require that the
language of this assurance be included in the award documents of all subawards at all tiers.
If all or a portion of this Agreement is funded with state funds, then the Grantee shall not use any
of the grant funds awarded in this Agreement for the purpose of lobbying as defined in the State of
Michigan’s lobbying statute, MCL 4.415(2). “‘Lobbying’ means communicating directly with an
official of the executive branch of state government or an official in the legislative branch of state
government for the purpose of influencing legislative or administrative action.” The Grantee shall
not use any of the grant funds awarded in this Agreement for the purpose of litigation against the
State. Further, the Grantee shall require that language of this assurance be included in the award
documents of all subawards at all tiers.
XIV. DEBARMENT AND SUSPENSION
By signing this Agreement, the Grantee certifies to the best of its knowledge and belief that it,
its agents, and its subcontractors:
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any federal department or the state.
(2) Have not within a three-year period preceding this Agreement been convicted of or had a
civil judgment rendered against them for commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or performing a public (federal, state, or
local) transaction or contract under a public transaction, as defined in 45 CFR 1185;
violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery,
bribery, falsification or destruction of records, making false statements, or receiving stolen
property.
(3) Are not presently indicted or otherwise criminally or civilly charged by a government entity
(federal, state, or local) with commission of any of the offenses enumerated in subsection (2).
(4) Have not within a three-year period preceding this Agreement had one or more
public transactions (federal, state, or local) terminated for cause or default.
(5) Will comply with all applicable requirements of all other state or federal laws, executive
orders, regulations, and policies governing this program.
XV. AUDIT AND ACCESS TO RECORDS
The State reserves the right to conduct a programmatic and financial audit of the project, and the
State may withhold payment until the audit is satisfactorily completed. The Grantee will be required
to maintain all pertinent records and evidence pertaining to this Agreement, including grant and any
required matching funds, in accordance with generally accepted accounting principles and other
procedures specified by the State. The State or any of its duly authorized representatives must have
access, upon reasonable notice, to such books, records, documents, and other evidence for the
purpose of inspection, audit, and copying. The Grantee will provide proper facilities for such access
and inspection. All records must be maintained for a minimum of ten (10) years after the final
payment has been issued to the Grantee by the State.
XVI. INSURANCE
(A) The Grantee must maintain insurance or self-insurance that will protect it from claims that may
arise from the Grantee’s actions under this Agreement.
(B) The Grantee must comply with applicable workers’ compensation laws while engaging in
activities authorized under this Agreement.
5
XVII. OTHER SOURCES OF FUNDING
The Grantee guarantees that any claims for reimbursement made to the State under this
Agreement must not be financed by any source other than the State under the terms of this
Agreement. If funding is received through any other source, the Grantee agrees to delete from
Grantee's billings, or to immediately refund to the State, the total amount representing such
duplication of funding.
XVIII. COMPENSATION
(A) A breakdown of costs allowed under this Agreement is identified in Appendix A. The State will
pay the Grantee a total amount not to exceed the amount on page 1 of this Agreement, in
accordance with Appendix A, and only for expenses incurred and paid. All other costs necessary to
complete the project are the sole responsibility of the Grantee.
(B) Expenses incurred by the Grantee prior to the Start Date or after the End Date of this
Agreement are not allowed under the Agreement, unless otherwise specified in Appendix A.
(C) The State will approve payment requests after approval of reports and related documentation as
required under this Agreement.
(D) The State reserves the right to request additional information necessary to substantiate payment
requests.
(E) Payments under this Agreement may be processed by Electronic Funds Transfer (EFT).
The Grantee may register to receive payments by EFT at the SIGMA Vendor Self-Service
website (http://www.michigan.gov/sigmavss).
(F) An amount equal to ten percent (10%) of the grant award will be withheld by the State until the
project is completed in accordance with Section XIX, Closeout, and Appendix A.
XIX. CLOSEOUT
(A) A determination of project completion, which may include a site inspection and an audit, shall be
made by the State after the Grantee has met any match obligations, satisfactorily completed the
activities, and provided products and deliverables described in Appendix A.
(B) Upon issuance of final payment from the State, the Grantee releases the State of all claims
against the State arising under this Agreement. Unless otherwise provided in this Agreement
or by State law, final payment under this Agreement shall not constitute a waiver of the State’s
claims against the Grantee.
(C) The Grantee shall immediately refund to the State any payments in excess of the costs allowed
by this Agreement.
XX. CANCELLATION
This Agreement may be canceled by the State, upon 30 days written notice, due to Executive
Order, budgetary reduction, other lack of funding, upon request by the Grantee, or upon mutual
agreement by the State and Grantee. The State may honor requests for just and equitable
compensation to the Grantee for all satisfactory and eligible work completed under this Agreement
up until 30 days after written notice, upon which time all outstanding reports and documents are
due to the State and the State will no longer be liable to pay the grantee for any further charges to
the grant.
6
XXI. TERMINATION
(A) This Agreement may be terminated by the State as follows.
(1) Upon 30 days written notice to the Grantee:
a. If the Grantee fails to comply with the terms and conditions of the Agreement, or with
the requirements of the authorizing legislation cited on page 1, or the rules
promulgated thereunder, or other applicable law or rules.
b. If the Grantee knowingly and willingly presents false information to the State for the
purpose of obtaining this Agreement or any payment under this Agreement.
c. If the State finds that the Grantee, or any of the Grantee’s agents or representatives,
offered or gave gratuities, favors, or gifts of monetary value to any official, employee, or
agent of the State in an attempt to secure a subcontract or favorable treatment in
awarding, amending, or making any determinations related to the performance of this
Agreement.
d. If the Grantee or any subcontractor, manufacturer, or supplier of the Grantee appears in
the register of persons engaging in unfair labor practices that is compiled by the
Michigan Department of Licensing and Regulatory Affairs or its successor.
e. During the 30-day written notice period, the State shall withhold payment for any findings
under subparagraphs a through d above, and the Grantee will immediately cease
charging to the grant and stop earning match for the project (if applicable).
(2) Immediately and without further liability to the State if the Grantee, or any agent of the
Grantee, or any agent of any subcontract is:
a. Convicted of a criminal offense incident to the application for or performance of a State,
public, or private contract or subcontract;
b. Convicted of a criminal offense, including but not limited to any of the following:
embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving
stolen property, or attempting to influence a public employee to breach the ethical
conduct standards for State of Michigan employees;
c. Convicted under State or federal antitrust statutes; or
d. Convicted of any other criminal offense that, in the sole discretion of the State, reflects
on the Grantee’s business integrity.
e. Added to the federal or state Suspension and Debarment list.
(B) If a grant is terminated, the State reserves the right to require the Grantee to repay all or a
portion of funds received under this Agreement.
XXII. IRAN SANCTIONS ACT
By signing this Agreement the Grantee is certifying that it is not an Iran-linked business, and that
its contractors are not Iran-linked businesses, as defined in MCL 129.312.
XXIII. ACCESS AGREEMENTS
A voluntary access agreement or court-ordered access must be secured by the Grantee prior to
performance of the scope of work described in Appendix A for any portion of the project area or
property where grant activities will be undertaken and that is not owned by the Grantee. Evidence
of access must be provided to the State at its request.
XXIV. GRANT ADMINISTRATION
The use of a Grant Administrator to review work plans, reports, and other documents prepared by
the contractor(s), review invoices, write project status reports, and coordinate project activities and
7
communications is eligible for reimbursement conditional upon the State’s approval of a scope of
work and budget prior to incurring grant administration costs. Grant administration costs will be
limited to three percent (3%) [ten percent (10%) (for areawides only)] of the total grant amount.
XXV. INELIGIBLE EXPENSES
Although the following costs may be related to the scope of work described in Appendix A, the
following are ineligible for reimbursement under the grant:
Office equipment; software; insurance, except liability insurance required pursuant to this
Agreement; taxes, except sales taxes; replacement or purchase of equipment; drinking water
supply replacement, defined as but is not limited to, providing bottled water, constructing a new
well, and extending or constructing a water supply system; operation and maintenance, defined as
the activities necessary to provide for continued effectiveness and integrity of a response activity
after construction of the response activity means or measures. The term includes activities such as
groundwater removal and treatment; restoration of property or infrastructure, unless included in
Appendix A; fees for attorneys or legal advice; grant recipient staff time for application submittal;
costs incurred for environmental activities under a local Brownfield Redevelopment Authority Plan;
costs incurred for activities outside a State-approved work plan; labor overtime; and training.
Travel costs for either vehicle use or vehicle mileage will be reimbursed, but not both. Vehicle
mileage will be reimbursed at a maximum of the federal rate allowed by the Internal Revenue
Service at the time the costs are incurred. Fees, such as those incurred for state or local permits;
underground storage tank registration; late fees; or other fees may be eligible at the State’s
discretion. Other expenses may be determined ineligible in the course of invoice reviews.
XXVI. BIDS, CONTRACTORS
(A) For contracts over $20,000, the Grantee shall provide, or cause to be provided, the qualifications
of the selected contractor(s) to the State. The State reserves the right to object to the selected
contractor(s) or their qualifications. If the State has objections, it will inform the Grantee in writing
within 30 days of receipt of the selected contractor’s qualifications.
(B) For any contract over $20,000, except professional services, the Grantee shall solicit, or cause to
be solicited, bids from at least three qualified contractors. The Grantee shall provide to the State
copies of all bids received. If the contractor that submitted the lowest bid is not the contractor
selected, the Grantee must submit written justification for the selection.
(C) Any contractor(s) retained for corrective action on regulated underground storage tanks shall be
a qualified underground storage tank consultant that meets the requirements of Section 21325 of
Part 213, Leaking Underground Storage Tanks of the NREPA.
(D) Any contractor(s) retained for asbestos abatement shall possess appropriate qualifications to
perform asbestos abatement.
(E) Contractor markup on subcontractors and equipment is limited to a maximum of ten percent
(10%) of the original cost, and subject to approval by the State.
XXVII. WORK PLANS AND PROJECT IMPLEMENTATION
(A) Prior to conducting any activities except property acquisition under the Agreement, the
Grantee or its contractor shall submit a detailed work plan to the State for its approval. Work plans
must include a description of the proposed activities, a budget, and a schedule for conducting the
activities under Appendix A. A supplementary work plan, budget, and schedule are required for
each subsequent phase of work. The Grantee and its contractor shall not proceed with grant-
funded activities until the State approves the work plan, budget, and schedule in writing. The State
may approve, modify and approve, or require amendments to the work plan.
8
(B) The Grantee or its contractor shall implement the work plan upon the State’s written approval
and according to the schedules contained therein. Changes or additions to the work plan may be
submitted in writing and are subject to approval by the State. Changes to work plans without prior
approval from the State, or performance of activities that are not part of an approved work plan or
an amendment to a work plan, are considered ineligible expenses and may result in the Grantee
being responsible for payment of unapproved activities.
XXVIII. ECONOMIC DEVELOPMENT
(A) The Grant Recipient acknowledges by its signature of this Agreement that there have been
no material changes in the economic development proposal, property ownership, or other
conditions of the property or project since the date the grant funds were awarded.
(B) In the event the proposed development changes or is not implemented, the Grantee shall
immediately notify the State in writing and shall secure a new development project for the property
within six (6) months after such notification. The Grantee shall then notify the State in writing of the
proposed development. The alternate development project is also subject to approval by the
State.
XXIX. OTHER TERMS AND CONDITIONS
(A) The State may withhold the grant until the State determines that the Grantee is able to
proceed with the project scope described in Appendix A, pursuant to Part 196, Section 19612(3), of
the NREPA.
(B) Following completion of the project, the State may conduct annual compliance inspections for
two (2) years to determine whether the project is being maintained for the use specified in this
Agreement.
(C) The Grantee acknowledges, by signature of this Agreement, that the State is not obligated to
provide additional funding beyond the Agreement amount should additional environmental costs
be necessary to complete the project.
(D) If necessary to allow for completion of the project, the Grantee and State may mutually agree
to extend the term of the Agreement. Agreement extensions should be requested by the Grantee
or the State in writing, prior to the Agreement end date. The term of the Agreement may be
extended up to a maximum of four additional 1-year periods. This Agreement may only be
extended by a signed agreement between both parties.
9
BROWNFIELD REDEVELOPMENT
GRANT
APPENDIX A
Project Details
Muskegon Convention Center
Project name 460 W. Western Avenue and
Grantee City of Muskegon
and address portions of 939 and 955 3rd Street
Muskegon, Michigan 49440
Location
Tracking code 2020-2422 6F67
Code
Capital 5 full-time
$20,000,000 Jobs created
investment 30 part-time
Grant amount $499,999 Loan amount NA
Funding Sources Renew Michigan Grant (RMG)
PROJECT DESCRIPTION:
The city of Muskegon is receiving a grant for management of contaminated groundwater during
construction at a former roadway in downtown Muskegon. The developer, the city of Muskegon, will
redevelop the vacated portion of 4th Street into a 42,000 square-foot convention center, investing
approximately $20,000,000. The convention center, serving as a catalyst project for economic
development in downtown Muskegon, will be located in-between and connected to the newly
renovated L.C. Walker Arena and Delta Hotels by Marriott.
ANTICIPATED SCOPE OF WORK / BUDGET:
Due care activities including, but not limit to, treatment and disposal of
contaminated dewatering effluent and additional sampling
PROJECT BUDGET
Eligible Activity Grant
1. Due Care $411,219
2. Third-party environmental oversight professional $11,780
3. Grant administration (up to 3 percent of grant amount) $12,000
4. Contingency (up to 15 percent of grant amount) $65,000
Total $499,999
In addition to the broad budget items above, the grant may be used for work plan and budget
development, bid solicitation, technical specifications, and other administrative tasks approved by the
Department of Environment, Great Lakes, and Energy (EGLE) grant coordinator. All grant-eligible work,
including tasks not listed above, must be approved in advance. Work completed without an approved
work plan may not be eligible for grant reimbursement.
Prior to the start of any grant-eligible work, a work plan must be submitted to EGLE for review and
approval. Work plan development will be paid for under the budget items listed above. A budget
maximum of up to $5,000 is approved for work plan development. If individual work plan or multiple
work plans collectively exceed the $5,000 cap, the anticipated cost to develop the work plan must be
approved by the grant coordinator in advance, or the excess cost will not be eligible for reimbursement.
Progress reports must be submitted quarterly even if no expenses were incurred during the quarter.
Progress reports must include invoices for expenses incurred during the quarter and copies of checks or
statements showing all consultants / contractors were paid.
SCHEDULE: Work will be initiated on approved projects within two weeks of State approval unless
otherwise approved by the State. The project will proceed on the following schedule:
Task Schedule
1. Due Care Implementation 1st - 2nd quarters after start date
2. Third-party environmental oversight professional 1st - 2nd quarters after start date
3. Grant Administration 1st - 3rd quarters after start date
4. Closeout 3rd - 4th quarters after start date
Page 2 of 2
Muskegon Convention Center
Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community
µ
_
^ Project Area
Project Scope
Feet
0 37.5 75 150 225 300 375 _
^
460 West Western Avenue and
Portions of 939 & 955 3rd Street
MUSKEGON , MUSKEGON COUNTY
S27 T10N R16W
FIGURE 1
EGLE Remediation &
Redevelopment Division Sources: Esri, HERE, Garmin, USGS, Intermap,
October 2019
INCREMENT P, NRCan, Esri Japan, METI, Esri
China (Hong Kong), Esri Korea, Esri (Thailand),
Datum; WGS_1984 Photo Source: MIS Date:2010 Resolution:1ft NGCC, (c) OpenStreetMap contributors, and the
GIS User Community
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