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CITY OF MUSKEGON
CITY COMMISSION MEETING
FEBRUARY 25, 2020 @ 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:
A. USS Silversides Summer Programming with Boys & Girls Club –
Informational Presentation – Peggy Maniates, Executive Director
B. Informational Presentation on expansion plans for The Deck
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. NEZ Certificate – 658 Terrace Point Planning
C. NEZ Certificate – 326 Terrace Point Planning
D. Tax Incentive Policy and Guidelines Economic Development
E. Resolution of Intent to Bond Sanitary Sewer and Water Supply Revenue
Bonds Finance
F. Seaway Railroad Bridge Painting Public Works
G. Pere Marquette Park – Grant Declaration Public Works
H. Emergency Sewer Repairs Public Works
I. MANA, LLC Revolving Loan City Manager
□ PUBLIC HEARINGS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
□ ANY OTHER BUSINESS:
□ PUBLIC COMMENT ON NON-AGENDA ITEMS:
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► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
A. Lawsuit Settlement
□ 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
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 25, 2020 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the February 10, 2020 Worksession meeting and the
February 11, 2020 regular 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 WORKSESSION
Monday, February 10, 2020
5:30 p.m.
City Commission Chambers
MINUTES
Present: Mayor Stephen Gawron and Commissioners Hood, Emory, Johnson, German,
Rinsema-Sybenga, and Ramsey.
Absent: None.
Informational Presentation of MATS Route Study and Comprehensive Operational
Analysis - Robert M. Lukens - Muskegon Community Development Director
Jim Koens, Transit Systems Manager, presented the MATS Route Study and Operational
Analysis Report.
Mark Eisenbarth, Director of Muskegon County Administrator, indicated he welcomed questions
and feedback from the City Commissioners.
Currently MATS partners with the City of Muskegon, Muskegon Heights, Roosevelt Park,
Muskegon Township, and Norton Shores.
Commissioners asked for several clarifications regarding the micro-transit system that is being
proposed because of the reduction in proposed routes. Municipalities will also be asked to
contribute more for the service going forward because the County can no longer cover the
difference in cost not covered by the local municipalities.
Paid Beach Parking - Planning
Staff is requesting approval to move forward with paid parking at the beach. The request is to
purchase 20 kiosks from Flowbird and to allow staff to draft the appropriate ordinances to initiate
paid parking requirements.
The proposal includes 17 kiosks for beach parking and 3 kiosks for boat launch permits. The 17
beach parking kiosks will accept credit cards/coins and the 3 kiosks for boat launch permits will
only accept credit cards.
The fees collected will go towards the maintenance of the beach including the operations and
maintenance of the beach/sand, parking lot, bath houses, various playgrounds, and boardwalk
as well as trash clean-up and removal, police beach patrols, misc. Equipment costs, and
administration costs. In 2016/17 these costs were estimated to be $475,000 for a total cost to a
homeowner of .848 mills.
Cost to park at the beach is suggested to be $7 on Saturdays and $5 for the rest of the week.
The yearly pass is $20 and resident passes are free.
Commissioners asked several questions of Mr. Franzak.
The City Commission will consider this request at its February 11, 2020 Commission Meeting.
Carol Olson, 1658 Beach, concerned about the financial impact.
Nancy Hulka, 3020 Country Club, in favor.
Ned Carter, 1741 Edgewater, against.
Shirley Green, 2574 Morton, asked for clarification if paid parking was needed for sunset. No.
Also asked about accessible parking and paying.
Bill, 3358 Wilcox, asked about those who use the dog beach and Kruse Park.
Michael Haueisen, 903 Turner, against.
Kim Lang, 1431 Beach, has a non-profit on the beach for the lighthouse tower. Concerned
about the additional fee for those visitors.
Lead Service Lines - Public Works
Leo Evans, Public Works Director, updated staff on the changes required within the water
department to comply with the updated Lead and Copper Rules issued by the State and to seek
feedback on a direction moving forward on the topic.
Commissioner German left at 8:20 pm.
Mobile Food Vending Ordinance Updates - City Clerk
Support adding food trucks in Lakeside Business District and Glade Street.
City Manager suggested allowing staff to allow temporary approval while waiting for upcoming
meeting for approval.
Lorraine Samples, 1930 Lakeshore Drive, grateful for quick action, believes they should be
allowed overnight.
Morning Bear, 592 W. Muskegon, wants to see the food truck stay open at Southern and Glade.
Presentation of Multi-Family Housing Study - Economic Development
For several months the department has been working on a study of the existing market
conditions and the needs of the multi-family housing sector in the city limits. This work is
complete and ready to review with the city commission.
Revolving Loan Fund Requests
Commissioner Rinsema-Sybenga removed himself from discussion stating a financial interest.
The city has an opportunity to assist multiple entities by approving some revolving fund loans.
There was discussion regarding the proposed loans and a revolving fund application will be on
the agenda at the next city commission meeting for consideration for Unruly Brewing.
Frank explained requests that may be made by sports teams.
Development Options Discussion
.
Discussion took place regarding development options. An idea was presented by Jon Rooks,
who owns Wharf arena in downtown Grand Haven, he is suggesting a dry-rack storage area.
Mr. Rooks would like the city to quit claim deed the easement to Parkland to develop for dry-
rack storage.
Adjourned at 11:22 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
FEBRUARY 11, 2020 @ 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, February 11, 2020, Pastor
Wally Reames, Central Assembly, opened the meeting with a 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
Ken Johnson, Dan Rinsema-Sybenga, Willie German, Jr., Teresa Emory, and
Michael Ramsey, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
HONORS AND AWARDS:
A. Success Story – Marquette Neighborhood-Enhanced Neighborhood Grant
Lashaun Turner, Community and Neighborhood Services staff, presented
certificates to two women that painted over 100 fire hydrants in their
neighborhood as part of the Marquette Neighborhood Enhancement Grant
Program.
PUBLIC COMMENT ON AGENDA ITEMS: Public Comments were received.
2020-09 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the January 28, 2020 regular
meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Nelson Neighborhood Market Donation Proposal City Clerk
SUMMARY OF REQUEST: The Muskegon Farmers Market received a donation
proposal from the Nelson Neighborhood Association. The Association is
proposing five annual donations of $1,000 beginning April 1, 2020. They will install
and maintain a sign promoting the efforts of the Association at their own
expense. This would be treated as a Branch Level Friend of the Market
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Sponsorship for the fiver years of the commitment.
STAFF RECOMMENDATION: To accept the proposed Friend of the Market
annual sponsorship of $1,000 each year, for five years, from the Nelson
Neighborhood Association.
C. Mobile Food Vending Ordinance Updates City Clerk
SUMMARY OF REQUEST: There is interest to add the Lakeside Business District
and the commercial areas of the 1600 block of Glade to permit food trucks
under the current food truck ordinance.
STAFF RECOMMENDATION: To amend the resolution to add the commercial
areas of the 1600 block of Glade and the Lakeside Business District to the areas
currently permitted to host food trucks.
D. Rescue Mission Property Transfer Development Services
SUMMARY OF REQUEST: Staff is seeking approval of a quit claim deed to
transfer property at 1747 7th Street to the Muskegon Rescue Mission.
The Muskegon Rescue Mission would like to acquire remaining vacant land
behind the men’s shelter for expansion of the services they offer in our
community. The concept includes a community resource center, a job training
facility, and family housing. The rescue mission will be responsible to record the
deed and obtain title insurance, a property survey, environmental review, and
soils investigation. Closing costs will be split between the parties. Staff has
prepared a quit claim deed to transfer the property to the MRM and request
your approval of the property transfer. The Planning Department will continue to
work the MRM on the development of the site plan.
STAFF RECOMMENDATION: Approve the transfer of property at 1747 7th Street
to the Muskegon Rescue Mission and authorize the mayor and clerk to sign the
quit claim deed.
I. Arena Wall Padding City Manager
SUMMARY OF REQUEST: Staff is seeking authorization to purchase 72 dasher
board pads at a cost of $29,284.00 from Sportsfield Specialties, and eight
storage carts at a cost of $2,497.14 from Uline. The total cost of the combined
purchase, including shipping is $31,781.14.
2020 will mark the 5th season that Mercy Health Arena has hosted professional
indoor football. When the team was initially created, the city acquired used turf
and used dasher board padding as we worked to determine if indoor football
would be sustainable in Muskegon. A new field turf was purchased three years
ago. Staff is now requesting permission to purchase new dasher board padding.
The new padding will better meet safety standards, and will also use significantly
less storage space at the arena. Storage capacity continues to be an issue
since the arena lost its storage garage during a storm four years ago. As part of
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the negotiation process of the Mercy Health naming rights agreement, staff
committed to ensuring that all of the arena’s teams benefitted from the
investment. The West Michigan Ironmen identified this as their top need. This
investment represents approximately 1.98% of the $1.6 Million sponsorship. The
ownership group accepts this as the only direct investment from those funds into
the team’s needs. The city will own the equipment and make it available to the
team at no cost.
STAFF RECOMMENDATION: Authorize the purchase at an amount not to
exceed $37,781.14.
K. Amendment to Wireless Communication Support Facilities Ordinance
SECOND READING Planning
SUMMARY OF REQUEST: Request to amend Section 2321 of the Zoning
Ordinance to allow Wireless Communication Support Facilities as a special use
permitted in the overlay district at 770 Terrace Street.
The current ordinance only allows for these types of facilities in six locations
around the City. The Commission recently amended the ordinance last year to
allow for them at Marsh Field and the Filtration Plant. This new location would be
behind the Central Fire Station and would only include a monopole for
emergency communications. The Planning Commission unanimously
recommended approval at their January 16 meeting. They also voted in favor of
the special use permit for the monopole, contingent upon approval of this
amendment by the City Commission.
STAFF RECOMMENDATION: To approve the amendment to Section 2321 of
the Zoning Ordinance.
L. Rezoning of 372 Morris Avenue - SECOND READING Planning
SUMMARY OF REQUEST: Staff initiated request to rezone the property at 372
Morris Avenue from Form Based Code, Downtown to Form Based Code,
Mainstreet.
The Planning Commission unanimously recommended approval at their January
16 meeting.
STAFF RECOMMENDATION: To approve the rezoning request for 372 Morris
Avenue.
M. 4th of July Fireworks City Clerk
SUMMARY OF REQUEST: Melrose Pyrotechnics is requesting approval of a
fireworks display permit for July 4, 2020 in downtown Muskegon. The fire marshall
will inspect the fireworks on the day of the event. Staff will be working with the
Lakeshore Chamber of Commerce to solicit sponsorships as well as to organize a
food truck rally. We expect this to be cost neutral to the city.
STAFF RECOMMENDATION: To approve the fireworks contingent upon
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inspection and approval of insurance.
N. Community Relations Committee Recommendations City Clerk
SUMMARY OF REQUEST: To accept the resignation of Jackie Hilt from the Historic
District Commission. To accept the appointments of Steve Radtke and Timothy
Painter to the Historic District Commission and Bonnie Lipan to the Community
Development Block Grant/Citizen’s District Council.
STAFF RECOMMENDATION: To concur with the recommendations of the
Community Relations Committee and approve the resignation and
appointments.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to accept the consent agenda as presented, except items E, F, G, H, and J.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
and Gawron
Nays: None
MOTION PASSES
2020-10 ITEMS REMOVED FROM CONSENT AGENDA:
E. 1601 Beach Lease Amendment Development Services
SUMMARY OF REQUEST: Staff is requesting approval of an amendment to the
existing lease and option agreements with 1601 Beach LLC to extend the
boundary of the land being leased for The Deck at Pere Marquette Park and to
modify the area to which 1601 Beach, LLC has an option and first right of refusal
to develop, lease, or purchase.
The owners of 1601 Beach LLC are planning an expansion to their restaurant, The
Deck. The expansion is south of the existing building and will include a patio and
additional bar space to accommodate more patrons. In order to proceed with
the expansion, the lease agreement needs to be modified to account for the
additional land associated with the expansion. The city took the opportunity to
clarify the option area with the owners and make requested adjustments.
STAFF RECOMMENDATION: Approve the amendment to the lease and
option agreement with 1601 Beach, LLC at Pere Marquette Park and authorize
the mayor and clerk to sign.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the amendment to the lease and option agreement with 1601 Beach
LLC at Pere Marquette Park and authorize the mayor and clerk to sign.
Motion by Commissioner Johnson, second by Commissioner German, to
amend the motion to remove the option agreement.
ROLL VOTE: Ayes: Johnson
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Nays: Ramsey, German, Rinsema-Sybenga, Emory, Gawron,
and Hood
MOTION FAILS
Vote on Original Motion
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Gawron, and
Hood
Nays: Johnson
MOTION PASSES
F. Paid Beach Parking Planning
SUMMARY OF REQUEST: Staff is requesting approval to move forward with paid
parking at the beach. The request is to purchase 20 kiosks from Flowbird and to
allow staff to draft the appropriate ordinances to initiate paid parking
requirements.
STAFF RECOMMENDATION: To approve staff to execute the purchase order
for the 20 kiosks from Flowbird as proposed and to direct staff to draft the
appropriate ordinances to initiate paid parking requirements at the beach.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve staff to execute the purchase order for the 20 kiosks from Flowbird as
proposed and to direct staff to draft the appropriate ordinances to initiate paid
parking requirements at the beach.
Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga,
to call the question.
ROLL VOTE: Ayes: Emory, Gawron, Hood, Ramsey, and Rinsema-Sybenga
Nays: Johnson and German
MOTION PASSES
Vote on Original Motion
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Gawron, Hood, and Ramsey
Nays: Johnson and German
MOTION PASSES
G. Unruly Brewing Revolving Fund Application Economic Development
SUMMARY OF REQUEST: A recommendation to the City Commission to approve
an economic development loan for Unruly Brewing.
Unruly Brewing has finished their mass production system and started brewing for
large scale kegging distribution. However, their distributors and their cash flow
projections indicate that they should also build out and begin production on a
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canning system so that they can enter the retail space to avoid some of the
negative market forces that have recently been impacting micro-breweries
across the state. They have exhausted their ability to privately finance this
portion of the project and are requesting a loan from the City’s Economic
Development Revolving Fund.
STAFF RECOMMENDATION: To approve the terms and documents of the loan
to Unruly Brewing in the amount of $80,000 as presented.
Motion by Commissioner German, second by Commissioner Johnson, to
approve the terms and documents of the loan to Unruly Brewing in the amount
of $80,000 as presented.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, and Emory
Nays: None
Abstain: Rinsema-Sybenga
MOTION PASSES
H. Arena Change Order City Manager
SUMMARY OF REQUEST: Staff is seeking approval of Changer Order 1 to the
contract with the Platinum Contracting for work being completed under Phase
2 of the arena restroom renovation project.
On December 10 2019, the City Commission approved a contract with Platinum
Contracting to remodel the existing restrooms at the Mercy Health Arena. The
original contract amount was $266,173.69. A number of issues/changes have
arisen since the project commenced. Some of the major issues include the
presence of asbestos, an immediate need for increased restroom fixtures, and
deterioration of a number of windows that now require replacement. The
additional work will raise the contract cost by $177,981.38, however, the
additional work will result in six additional women’s toilets, two additional men’s
urinals, and 14 additional “flex” toilets that can be used as either men’s or
women’s water closets, depending on event type/attendance. The previous
plan left the arena slightly short on both men’s and women’s facility counts, but
the new plan exceeds both.
STAFF RECOMMENDATION: To approve the Agreement and authorize the
city manager to sign.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the Agreement and authorize the City Manager to sign.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
and Johnson
Nays: None
MOTION PASSES
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J. MDEGLE Grant Agreement City Manager
SUMMARY OF REQUEST: The City was previously awarded a grant from MDEGLE
to address PFAS contamination at the convention center construction site. The
original $500,000 grant is being increased to $700,000 to address additional
environmental cleanup associated with a recently uncovered abandoned oil
well.
In addition to the $700,000 in grant proceeds, MDEGLE will also directly incur the
costs associated with filling and capping the oil well. The construction project
should have little-to-no out-of-pocket costs associated with these environmental
issues.
STAFF RECOMMENDATION: Authorize the City Manager to sign the grant
agreement and incur the costs associated with the environmental cleanup as
part of the convention center construction project.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to authorize the City Manager to sign the grant agreement and incur the costs
associated with the environmental cleanup as part of the convention center
construction project.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
and Gawron
Nays: None
MOTION PASSES
2020-11 NEW BUSINESS:
A. Arena Related Agreements City Manager
SUMMARY OF REQUEST: Staff is seeking simultaneous approval of the First
Amendment to the Naming Rights and Sponsorship Agreement between the
City of Muskegon, Mercy Health Partners, and WC Hockey, and Third
Amendment to the Shared Use Agreement between the City of Muskegon and
WC Hockey.
WC Hockey and Mercy Health Partners have agreed to modify the Naming
Rights and Sponsorship Agreement to allow for more opportunities for
healthcare-related sponsorships within the arena and with various tenants of the
facility. As part of these execution of the original naming Rights and Sponsorship
Agreement, a number of changes to the Shared Use Agreement became
necessary. The amendment will accomplish the following:
1. Formally update Exhibit A
2. Finalize the capital investments of WC Hockey and set the repayment
schedule.
3. Update the City’s marketing participation with WC Hockey to account for
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required gameday-related deliverables owed to Mercy Health as part of
the Naming Rights and Sponsorship Agreement.
4. Allow for the accommodation of WZZM at the arena.
STAFF RECOMMENDATION: Approve the agreements and authorize the
Mayor and Staff to execute the agreements.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the agreements and authorize the Mayor and Staff to execute the
agreements.
ROLL VOTE: Ayes: Rinsema-Sybenga, Gawron, and Hood
Nays: German, Emory, and Johnson
Abstain: Ramsey
MOTION FAILS
PUBLIC COMMENT ON NON-AGENDA ITEMS: No public comments were
received.
ADJOURNMENT: The City Commission meeting adjourned at 8:17 p.m.
Respectfully Submitted,
Ann Marie Meisch – MMC, City Clerk
Page 8 of 8
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 2/25/2020 Title: NEZ Certificate – 658 Terrace Point
Submitted By: Mike Franzak Department: Planning
Brief Summary: An application for a Neighborhood Enterprise Zone (NEZ) certificate has
been received from James Starr for the new construction of a home at 658 Terrace Point. The
applicant has met local and state requirements for the issuance of the NEZ certificate.
Detailed Summary:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the NEZ certificate at 658 Terrace Point for a duration of 12
years.
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 No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by James Starr to construct a new home at 658 Terrace Point in the Terrace Point Condominium
neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by James Starr be approved.
Adopted this 25th day of February, 2020.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
February 25, 2020.
By: ________________________
Ann Meisch
City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 2/25/2020 Title: NEZ Certificate – 326 Terrace Point
Submitted By: Mike Franzak Department: Planning
Brief Summary: An application for a Neighborhood Enterprise Zone (NEZ) certificate has
been received from Timothy Koeze for the new construction of a home at 326 Terrace Point.
The applicant has met local and state requirements for the issuance of the NEZ certificate.
Detailed Summary:
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the NEZ certificate at 326 Terrace Point for a duration of 12
years.
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 No. ________
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE ISSUANCE
OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE
WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City
Clerk by Timothy Koeze to construct a new home at 326 Terrace Point in the Terrace Point
Condominium neighborhood, and;
WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood
Enterprise Zone Certificate;
WHEREAS, the local unit of government is allowing the six (6) month grace period after construction
commencement to apply, which is allowed under the law;
WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12) years;
NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone
Certificate for the new construction of a home by Timothy Koeze be approved.
Adopted this 25th day of February, 2020.
Ayes:
Nays:
Absent:
By: __________________________
Stephen J. Gawron, Mayor
Attest: _________________________
Ann Meisch
City Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the
City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on
February 25, 2020.
By: ________________________
Ann Meisch
City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 2/25/2020 Title: Tax Incentive Policy and Guidelines
Submitted By: Jake Eckholm Department: Economic Development
Brief Summary: The Tax Incentive Committee has created a policy document for Commission
approval that reflects the findings and recommendations in the previously reviewed committee
report.
Detailed Summary:
In an effort to standardize and control the rate and term of tax abatements granted in the City of
Muskegon, the Tax Incentive Committee (comprised of staff from Economic Development,
Planning, and Finance) has created the attached policy to guide our recommendations to the City
Commission when tax abatements are requested. This system incentivizes companies that reflect
community goals and values, while keeping Muskegon competitive in the region for attraction and
expansion of business base.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s): N/A
Recommended Motion: Motion to approve the Tax Incentive Policy and Guidelines as presented.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
TAX INCENTIVES POLICY
INFORMATION PACKET AND GUIDELINES
OVERVIEW:
A company that is in the planning phase of a major business attraction or expansion project that
will include a capital investment in real and/or personal property may be eligible for a number of
statutorily provided and locally approved tax incentives or abatements. The City of Muskegon
strives to apply these incentives with maximum return on investment for the developer and
community. The process for requesting and receiving an eligible tax incentive for a development
or expansion project has been simplified in the following policy guidelines and forms.
The City of Muskegon maintains this policy with the objectives of:
increasing employment opportunities for our residents,
diversifying and stabilizing the tax base of the community,
reducing functional obsolescence of existing buildings and lots,
encouraging expansion of our existing business base,
providing for improved housing and commercial amenities for the community,
encouraging attractive, viable building sites and
enhancing our economic development tools to attract and retain businesses
POLICY ELIGIBILITY CRITERIA:
1. A tax abatement shall not be granted until there is compliance with the associated state
statute; and
2. Leasehold property shall not qualify for a real property tax abatement unless applicant is
responsible for payment of the property taxes, and can demonstrate timely payment of property
taxes upon the City’s request; and
3. A tax abatement shall be issued for a term reflective of the points earned in the City’s scoring
matrix; and
4. A tax abatement shall not be issued unless an Applicant completes the attached application
form and provides all necessary documents to ensure accurate scoring by the Tax Incentive
Review Committee.
APPLICATION PROCESS:
Once a company has determined that it meets the minimum criteria for consideration of a tax
abatement, then a company may begin the process of formally applying for the relevant
incentive. The process is as follows:
1. Letter of Intent submitted on applicant’s letterhead to the Planning Director (No
improvements shall be considered for abatement if made or permitted prior to the approval of
the abatement application).
2. Complete any relevant Michigan Department of Treasury Forms. Include with the form:
a. Cost Sheet for anticipated improvements in real property.
b. Lease Agreement showing building terms and applicants’ tax liability (if applicable).
3. Submit application form and attachments to the City of Muskegon Planning Department.
4. Tax Incentive Review Committee verifies completion and eligibility of Applicant’s documents
for submission and makes recommendation to the City Commission regarding approval and
length of the requested abatement
5. City Commission Public Hearings are scheduled.
6. City Commission votes on establishment of the District and approval of the associated
abatement (City Commission may also vote to reject any application for abatement).
7. Resolution submitted to State Tax Commission for final approval and issuance of certificates
where necessary.
8. Projected investment must be complete within two years or risk liability for any abated values
LENGTH OF THE TAX ABATEMENT:
The City Commission has approved the use of the following matrices to calculate the length of
the associated tax abatement. The points in this scoring system are tied to community goals
endorsed by elected officials and staff, thereby rewarding and incentivizing specific development
types and values with additional potential years of abatement:
Cognate Value Cognate Value
PA 198 PA 210, 255, 146
Taxable Value 0-5 Taxable Value 0-5
Job Creation 0-3 Location 0-2
Resident Hiring 0-1 New Business 0-1
Minority
Minority Hiring 0-1 Owned/Managed 0-2
TOTAL 0-10 TOTAL 0-10
PA 198 IFEC Scoring Guide
0-7 Points: 9-Year 50% Abatement
7-10 Points: 12 Year 50% Abatement
PA 210 Tax Abatement Scoring Guide
0-5 Points: 3 Years frozen taxable values
6-8 Points: 6 Years frozen taxable values
9-10 Points: 10 Years frozen taxable values
PA 255 Tax Abatement Scoring Guide
0-5 Points: 4 Year Abatement
6-8 Points: 8 Year Abatement
9-10 Points: 12 Year Abatement
PA 146 Tax Abatement Scoring Guide
0-5 Points: 4 Years frozen taxable values
6-8 Points: 8 Years frozen taxable values
9-10 Points: 12 Years frozen taxable values
TAX ABATEMENT APPLICATION FEE:
The City Commission has authorized the implementation of a non-refundable application fee of
$1000.00 for Public Act 146, Public Act 255, and Public Act 210 abatement applications. Public
Act 198 tax abatement applications carry a non-refundable application fee equal to 2% of the
abated taxes, not to exceed $1,722.
REQUIREMENTS AFTER TAX ABATEMENT IS APPROVED:
By December 31 that is two years after the December 31 of the year that the abatement is
approved, the applicant will supply the Planning Director with a letter confirming that the
purchases, employment numbers, renovations, and/or other applicable cognates are complete.
If these figures have not been reached, a letter of explanation must be submitted to the Planning
Director, for review by City Commission, which may then cancel the abatement, or offer a new
abatement with reduced values and years.
For assistance with your business attraction and retention needs, please contact the City
Economic Development Office at 231-724-6870. For assistance with the associated process and
application, please contact the City Planner’s Office at 231-724-6702.
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 25, 2020 Title: Resolution of Intent to Bond Sanitary
Sewer and Water Supply Revenue Bonds
Submitted By: Beth Lewis Department: Finance
Brief Summary: This resolution authorizes the publication of a Notice of Intent relating to issuing
bonds for the purpose of paying all or part of the cost to acquire, construct, furnish and equip
improvements to the Sanitary Sewer and Water Supply System.
Detailed Summary: To approve two Notices of Intent Resolutions to bond for Sanitary Sewer
System bonds for up to $15,000,000 over the next 5 years and Water Supply System bonds for up
to $20,000,000 over the next 5 years. This is the first step in the bonding process. These bonds
will be issued through the State of Michigan’s SRF (Sewer Revolving Loan Fund) and the DWRF
(Drinking Water Revolving Loan Fund). The interest rate charged by the State is very favorable
and additionally they offer loan forgiveness for a portion of the loan. The Commission will be
asked at a later date to approve the issuance of bonds once the State has approved our projects
and we know the loan details.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s):590 & 591 Fund(s) or Account(s): 590& 591
Recommended Motion: Approve the Notices of Intent Resolutions for Sanitary Sewer System
Revenue Bonds not to exceed $15,000,000 and Water Supply System Revenue Bonds not to
exceed $20,000,000.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
NOTICE OF INTENT RESOLUTION
WATER SUPPLY SYSTEM REVENUE BONDS, SERIES 2020
(DRINKING WATER REVOLVING FUND PROJECT)
___________________________________
CITY OF MUSKEGON
County of Muskegon, State of Michigan
___________________________________
Minutes of a regular meeting of the City Commission of the City of Muskegon, County
of Muskegon, State of Michigan, held on the 25th day of February, 2020, at 5:30 p.m., prevailing
Eastern Time.
PRESENT: Members _________________________________________________________
__________________________________________________________________
ABSENT: Members__________________________________________________________
The following preamble and resolution were offered by Member: __________________
and supported by Member: ____________________:
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the “City”),
has determined that it is necessary for the public health, safety and welfare of the City to acquire,
construct, furnish and equip improvements to the Water Supply System of the City (the
“System”), including distribution system improvements, replacement of water mains and service
lines, pump station and water filtration plant improvements, together with all related
appurtenances and attachments (the “Project”); and
WHEREAS, the City has been advised by the Michigan Department of Environment,
Great Lakes and Energy (“EGLE”) that financial assistance to accomplish the acquisition and
construction of all or a portion of the Project is available through the Drinking Water Revolving
Fund (“SRF”) loan program administered by the EGLE and the Michigan Finance Authority; and
WHEREAS, the City has made application for participation in the SRF loan program;
and
WHEREAS, the Revenue Bond Act, Act 94, Public Acts of Michigan, 1933, as amended
(“Act 94”), provides a means for financing the purchase, acquisition, construction, improvement,
enlargement, extension and repair of public improvements such as the Project through the
issuance of revenue bonds; and
WHEREAS, the issuance of bonds payable from revenues of the System under Act 94 in
a total amount not to exceed Twenty Million Dollars ($20,000,000) (the “Bonds”) for the
purpose of financing all or part of the Project represents the most practical means to that end; and
WHEREAS, a notice of intent to issue revenue bonds must be published before the
issuance of the Bonds in order to comply with the requirements of Section 33 of Act 94; and
WHEREAS, the City intends at this time to state its intentions to be reimbursed from
proceeds of the Bonds for any expenditures undertaken by the City for the Project prior to
issuance of the Bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk is authorized and directed to publish a notice of intent to issue
bonds in the Muskegon Chronicle, a newspaper of general circulation in the City.
2. The notice of intent shall be published as a display advertisement not less than
one quarter (1/4) page in size in substantially the form attached to this resolution as Exhibit A.
3. The City Commission does hereby determine that the foregoing form of Notice of
Intent to Issue Bonds, and the manner of publication directed, is adequate notice to the electors
of the City and users of the System, and is the method best calculated to give them notice of the
City’s intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, and the
right of referendum of the electors with respect thereto, and that the provision of forty-five (45)
days within which to file a referendum petition is adequate to insure that the City’s electors may
exercise their legal rights of referendum, and the newspaper named for publication is hereby
determined to reach the largest number of persons to whom the notice is directed.
4. The City makes the following declarations for the purpose of complying with the
reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as
amended:
(a) As of the date hereof, the City reasonably expects to reimburse
itself for the expenditures described in (b) below with proceeds of
debt to be incurred by the City.
(b) The expenditures described in this paragraph (b) are for the costs
of acquiring the Project which were paid or will be paid
subsequent to sixty (60) days prior to the date hereof from the
Water Supply System funds of the City.
(c) The maximum principal amount of debt expected to be issued for
the Project, including issuance costs, is $20,000,000.
(d) A reimbursement allocation of the expenditures described in (b)
above with the proceeds of the borrowing described herein will
occur not later than 18 months after the later of (i) the date on
which the expenditure is paid, or (ii) the date the related Project are
placed in service or abandoned, but in no event more than three (3)
years after the original expenditure is paid. A reimbursement
allocation is an allocation in writing that evidences the City’s use
of the proceeds of the debt to be issued for the Project to reimburse
the City for a capital expenditure made pursuant to this resolution.
2
5. Miller, Canfield, Paddock and Stone, P.L.C. is hereby confirmed as Bond Counsel
to the City in connection with the issuance of the Bonds.
6. Robert W. Baird & Co., Inc. is hereby confirmed as the registered municipal
advisor to the City in connection with the issuance of the Bonds.
7. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution be and the same hereby are rescinded.
AYES: Members:_________________________________________________________
_________________________________________________________________
NAYS: Members:_________________________________________________________
RESOLUTION DECLARED ADOPTED.
__________________________________________
Ann Marie Meisch, MMC
City Clerk
I hereby certify that the attached 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 the 25th day of February, 2020, and that public notice of said meeting was given
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976 and that
minutes of the meeting were kept and will be or have been made available as required by said
Act.
__________________________________________
Ann Marie Meisch, MMC
City Clerk City Clerk
3
EXHIBIT A
NOTICE TO TAXPAYERS AND ELECTORS OF THE
CITY OF MUSKEGON AND TO USERS OF THE
CITY’S WATER SUPPLY SYSTEM
OF INTENT TO ISSUE REVENUE BONDS AND THE
RIGHT OF REFERENDUM RELATING THERETO
PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Muskegon
County, Michigan, intends to issue and sell revenue bonds pursuant to Act 94, Public Acts of
Michigan, 1933, as amended, in one or more series in a total amount not to exceed Twenty
Million Dollars ($20,000,000), for the purpose of paying all or part of the cost to acquire,
construct, furnish and equip improvements to the Water Supply System of the City (the
“System”), including distribution system improvements, replacement of water mains and service
lines, pump station and water filtration plant improvements, together with all related
appurtenances and attachments.
SOURCE OF PAYMENT OF REVENUE BONDS
THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS SHALL BE
PAYABLE from the revenues received by the City from the operations of the Water Supply
System except as provided below in the case of bonds sold to the Michigan Finance Authority in
connection with the State of Michigan’s Drinking Water Revolving Fund program. The
revenues will consist of rates and charges billed to the users of the system, a schedule of which is
presently on file in the office of the City Clerk. The rates and charges may from time to time be
revised to provide sufficient revenues to provide for the expenses of operating and maintaining
the system, to pay the principal of and interest on the bonds and to pay other obligations of the
system.
BOND DETAILS
THE REVENUE BONDS will be payable in annual installments not to exceed twenty
(20) in number and will bear interest at the rate or rates to be determined at public or private sale
but in no event to exceed such rates as may be permitted by law on the unpaid balance from time
to time remaining outstanding on said bonds.
ADDITIONAL SOURCES OF PAYMENTS FOR BONDS
SOLD TO MICHIGAN FINANCE AUTHORITY
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
FINANCE AUTHORITY, THE CITY MAY PLEDGE FOR THE PAYMENT OF THE BONDS
MONEY RECEIVED OR TO BE RECEIVED BY THE CITY DERIVED FROM IMPOSITION
OF TAXES BY THE STATE AND RETURNED OR TO BE RETURNED TO THE CITY AS
PROVIDED BY LAW, except for money the use of which is prohibited for such purposes by the
State Constitution. The City may enter into an agreement providing for the payment of taxes,
which taxes are collected by the State and returned to the City as provided by law, to the
Michigan Finance Authority or a trustee, and such funds may be pledged for the payment of the
revenue bonds.
A-1
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
FINANCE AUTHORITY, THE CITY MAY PLEDGE ITS LIMITED TAX FULL FAITH AND
CREDIT AS SECURITY FOR THE REVENUE BONDS, IN WHICH EVENT DEBT
SERVICE ON THE BONDS SHALL BE PAYABLE EITHER FROM REVENUES OF THE
SYSTEM OR FROM AD VALOREM TAXES THAT MAY BE LEVIED ON ALL TAXABLE
PROPERTY IN THE CITY, SUBJECT HOWEVER, TO CONSTITUTIONAL, STATUTORY
AND CHARTER TAX RATE LIMITATIONS.
RIGHT OF REFERENDUM
THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE
ELECTORS UNLESS A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS
THAN 10% OF THE REGISTERED ELECTORS OF THE CITY IS FILED WITH THE CITY
CLERK WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF
SUCH PETITION IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN
APPROVING VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS OF THE CITY
VOTING THEREON.
THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts
of Michigan, 1933, as amended.
ADDITIONAL INFORMATION will be furnished at the office of the City Clerk upon
request.
Ann Marie Meisch, MMC
City Clerk, City of Muskegon
35214053.1\063684-00049
A-2
NOTICE OF INTENT RESOLUTION
SANITARY SEWER SYSTEM REVENUE BONDS, SERIES 2020
(STATE REVOLVING FUND PROJECT)
___________________________________
CITY OF MUSKEGON
County of Muskegon, State of Michigan
___________________________________
Minutes of a regular meeting of the City Commission of the City of Muskegon, County
of Muskegon, State of Michigan, held on the 25th day of February, 2020, at 5:30 p.m., prevailing
Eastern Time.
PRESENT: Members _________________________________________________________
__________________________________________________________________
ABSENT: Members__________________________________________________________
The following preamble and resolution were offered by Member: __________________
and supported by Member: ____________________:
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the “City”),
has determined that it is necessary for the public health, safety and welfare of the City to acquire,
construct, furnish and equip improvements to the Sanitary Sewer System of the City (the
“System”), including sewer system rehabilitation and replacement of existing sewer lines,
together with pump station improvements and all related appurtenances and attachments (the
“Project”); and
WHEREAS, the City has been advised by the Michigan Department of Environment,
Great Lakes and Energy (“EGLE”) that financial assistance to accomplish the acquisition and
construction of all or a portion of the Project is available through the State Revolving Fund
(“SRF”) loan program administered by the EGLE and the Michigan Finance Authority; and
WHEREAS, the City has made application for participation in the SRF loan program;
and
WHEREAS, the Revenue Bond Act, Act 94, Public Acts of Michigan, 1933, as amended
(“Act 94”), provides a means for financing the purchase, acquisition, construction, improvement,
enlargement, extension and repair of public improvements such as the Project through the
issuance of revenue bonds; and
WHEREAS, the issuance of bonds payable from revenues of the System under Act 94 in
a total amount not to exceed Fifteen Million Dollars ($15,000,000) (the “Bonds”) for the purpose
of financing all or part of the Project represents the most practical means to that end; and
WHEREAS, a notice of intent to issue revenue bonds must be published before the
issuance of the Bonds in order to comply with the requirements of Section 33 of Act 94; and
WHEREAS, the City intends at this time to state its intentions to be reimbursed from
proceeds of the Bonds for any expenditures undertaken by the City for the Project prior to
issuance of the Bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk is authorized and directed to publish a notice of intent to issue
bonds in the Muskegon Chronicle, a newspaper of general circulation in the City.
2. The notice of intent shall be published as a display advertisement not less than
one quarter (1/4) page in size in substantially the form attached to this resolution as Exhibit A.
3. The City Commission does hereby determine that the foregoing form of Notice of
Intent to Issue Bonds, and the manner of publication directed, is adequate notice to the electors
of the City and users of the System, and is the method best calculated to give them notice of the
City’s intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, and the
right of referendum of the electors with respect thereto, and that the provision of forty-five (45)
days within which to file a referendum petition is adequate to insure that the City’s electors may
exercise their legal rights of referendum, and the newspaper named for publication is hereby
determined to reach the largest number of persons to whom the notice is directed.
4. The City makes the following declarations for the purpose of complying with the
reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as
amended:
(a) As of the date hereof, the City reasonably expects to reimburse
itself for the expenditures described in (b) below with proceeds of
debt to be incurred by the City.
(b) The expenditures described in this paragraph (b) are for the costs
of acquiring the Project which were paid or will be paid
subsequent to sixty (60) days prior to the date hereof from the
Sanitary Sewer System funds of the City.
(c) The maximum principal amount of debt expected to be issued for
the Project, including issuance costs, is $15,000,000.
(d) A reimbursement allocation of the expenditures described in (b)
above with the proceeds of the borrowing described herein will
occur not later than 18 months after the later of (i) the date on
which the expenditure is paid, or (ii) the date the related Project are
placed in service or abandoned, but in no event more than three (3)
years after the original expenditure is paid. A reimbursement
allocation is an allocation in writing that evidences the City’s use
of the proceeds of the debt to be issued for the Project to reimburse
the City for a capital expenditure made pursuant to this resolution.
2
5. Miller, Canfield, Paddock and Stone, P.L.C. is hereby confirmed as Bond Counsel
to the City in connection with the issuance of the Bonds.
6. Robert W. Baird & Co., Inc. is hereby confirmed as the registered municipal
advisor to the City in connection with the issuance of the Bonds.
7. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution be and the same hereby are rescinded.
AYES: Members:_________________________________________________________
_________________________________________________________________
NAYS: Members:_________________________________________________________
RESOLUTION DECLARED ADOPTED.
__________________________________________
Ann Marie Meisch, MMC
City Clerk
I hereby certify that the attached 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 the 25th day of February, 2020, and that public notice of said meeting was given
pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976 and that
minutes of the meeting were kept and will be or have been made available as required by said
Act.
__________________________________________
Ann Marie Meisch, MMC
City Clerk City Clerk
3
EXHIBIT A
NOTICE TO TAXPAYERS AND ELECTORS OF THE
CITY OF MUSKEGON AND TO USERS OF THE
CITY’S SANITARY SEWER SYSTEM
OF INTENT TO ISSUE REVENUE BONDS AND THE
RIGHT OF REFERENDUM RELATING THERETO
PLEASE TAKE NOTICE that the City Commission of the City of Muskegon, Muskegon
County, Michigan, intends to issue and sell revenue bonds pursuant to Act 94, Public Acts of
Michigan, 1933, as amended, in one or more series in a total amount not to exceed Fifteen
Million Dollars ($15,000,000), for the purpose of paying all or part of the cost to acquire,
construct, furnish and equip improvements to the Sanitary Sewer System of the City (the
“System”), including sewer system rehabilitation and replacement of existing sewer lines,
together with pump station improvements and all related appurtenances and attachments.
SOURCE OF PAYMENT OF REVENUE BONDS
THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS SHALL BE
PAYABLE from the revenues received by the City from the operations of the Sanitary Sewer
System except as provided below in the case of bonds sold to the Michigan Finance Authority in
connection with the State of Michigan’s State Revolving Fund program. The revenues will
consist of rates and charges billed to the users of the system, a schedule of which is presently on
file in the office of the City Clerk. The rates and charges may from time to time be revised to
provide sufficient revenues to provide for the expenses of operating and maintaining the system,
to pay the principal of and interest on the bonds and to pay other obligations of the system.
BOND DETAILS
THE REVENUE BONDS will be payable in annual installments not to exceed twenty
(20) in number and will bear interest at the rate or rates to be determined at public or private sale
but in no event to exceed such rates as may be permitted by law on the unpaid balance from time
to time remaining outstanding on said bonds.
ADDITIONAL SOURCES OF PAYMENTS FOR BONDS
SOLD TO MICHIGAN FINANCE AUTHORITY
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
FINANCE AUTHORITY, THE CITY MAY PLEDGE FOR THE PAYMENT OF THE BONDS
MONEY RECEIVED OR TO BE RECEIVED BY THE CITY DERIVED FROM IMPOSITION
OF TAXES BY THE STATE AND RETURNED OR TO BE RETURNED TO THE CITY AS
PROVIDED BY LAW, except for money the use of which is prohibited for such purposes by the
State Constitution. The City may enter into an agreement providing for the payment of taxes,
which taxes are collected by the State and returned to the City as provided by law, to the
Michigan Finance Authority or a trustee, and such funds may be pledged for the payment of the
revenue bonds.
IN THE EVENT THAT THE REVENUE BONDS ARE SOLD TO THE MICHIGAN
A-1
FINANCE AUTHORITY, THE CITY MAY PLEDGE ITS LIMITED TAX FULL FAITH AND
CREDIT AS SECURITY FOR THE REVENUE BONDS, IN WHICH EVENT DEBT
SERVICE ON THE BONDS SHALL BE PAYABLE EITHER FROM REVENUES OF THE
SYSTEM OR FROM AD VALOREM TAXES THAT MAY BE LEVIED ON ALL TAXABLE
PROPERTY IN THE CITY, SUBJECT HOWEVER, TO CONSTITUTIONAL, STATUTORY
AND CHARTER TAX RATE LIMITATIONS.
RIGHT OF REFERENDUM
THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE
ELECTORS UNLESS A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS
THAN 10% OF THE REGISTERED ELECTORS OF THE CITY IS FILED WITH THE CITY
CLERK WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF
SUCH PETITION IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN
APPROVING VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS OF THE CITY
VOTING THEREON.
THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts
of Michigan, 1933, as amended.
ADDITIONAL INFORMATION will be furnished at the office of the City Clerk upon
request.
Ann Marie Meisch, MMC
City Clerk, City of Muskegon
35214066.1\063684-00050
A-2
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 25, 2020 Title: Seaway Railroad Bridge Painting
Submitted By: Leo Evans Department: Public Works
Brief Summary:
Staff is requesting authorization to approve a contract to clean and paint the railroad bridge over US-
31 BR (Seaway Drive) between Hackley Avenue and Laketon Avenue in the City of Muskegon.
Detailed Summary:
Staff solicited bids to paint two railroad bridges that cross over Seaway Drive (US-31 BR), one in the
City of Muskegon and one in Norton Shores. After receiving the initial bids (listed below), it was
determined that the cost was too high to continue with the painting of both bridges. Staff has reached
out to the lowest bidder (Seaway Painting) to inquire about only painting the northerly bridge within the
City limits and Department of Public Works has agreed to provide traffic control for the work. Seaway
Painting has agreed to clean and paint the bridge at the price listed below.
A complete breakdown of the original bids is attached.
The original bid totals for cleaning and painting of two bridges, including traffic control:
Seaway Painting: $161,771.00
Civil Coatings: $208,800.00
Abhe & Svoboda: $293,985.00
Bridge X02 of 61151 Cleaning and Coating + Mobilization (only):
Seaway Painting: $68,385.00
Civil Coatings: $125,600.00
Abhe & Svoboda: $126,135.00
Work will include cleaning the existing structure and painting to a neutral base color in preparation
for placement of a mural in the future.
Staff recommends the contract be awarded to Seaway Painting to clean and paint one railroad
bridge over US-31 BR between Hackley Ave and Laketon Ave in the City of Muskegon. A portion
of the costs will be reimbursed through the Community Foundation. Some fundraising efforts have
already begun with more expected to take place once a notice to proceed is issued.
Amount Requested: $68,385.00 Amount Budgeted: $0
Fund(s) or Account(s): 101-91914-5346 Fund(s) or Account(s): 101-91914-5346
Recommended Motion:
Award the contract to Seaway Painting for the cleaning and coating of the railroad bridge over
Seaway Drive between Hackley Avenue and Laketon Avenue.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
BID TABULATION (as read)
City of Muskegon Project Engineer: JDB Date: 1/28/2020
Egineering Department Project Number: SP 91914
Project description: SEAWAY BRIDGE PAINTING
Seaway Painting LLC Civil Coatings & Construction Abhe & Svoboda Inc
Line Item Pay Code Description Units Quantity Unit Price Total Unit Price Total Unit Price Total
1 1500001 Mobilization, Max $8,000.00 LSUM 1 $ 8,000.00 $ 8,000.00 $ 8,000.00 $ 8,000.00 $ 8,000.00 $ 8,000.00
2 7137051 X02 of 61151 - Partial Cleaning & Coating LSUM 1 $ 64,385.00 $ 64,385.00 $ 117,600.00 $ 117,600.00 $ 118,135.00 $ 118,135.00
3 7137051 X03 of 61151 - Partial Cleaning & Coating LSUM 1 $ 54,001.00 $ 54,001.00 $ 67,200.00 $ 67,200.00 $ 98,875.00 $ 98,875.00
4 8127051 Traffic Control LSUM 1 $ 35,385.00 $ 35,385.00 $ 16,000.00 $ 16,000.00 $ 68,975.00 $ 68,975.00
= APPEARNT LOW BIDDER Total: $ 161,771.00 $ 208,800.00 $ 293,985.00
BID TABULATION (REVISED)
City of Muskegon Project Engineer: JDB Date: 1/28/2020
Egineering Department Project Number: SP 91914
Project description: SEAWAY BRIDGE PAINTING
Seaway Painting LLC Civil Coatings & Construction Abhe & Svoboda Inc
Line Item Pay Code Description Units Quantity Unit Price Total Unit Price Total Unit Price Total
1 1500001 Mobilization, Max $8,000.00 LSUM 1 $ 4,000.00 $ 4,000.00 $ 8,000.00 $ 8,000.00 $ 8,000.00 $ 8,000.00
2 7137051 X02 of 61151 - Partial Cleaning & Coating LSUM 1 $ 64,385.00 $ 64,385.00 $ 117,600.00 $ 117,600.00 $ 118,135.00 $ 118,135.00
3 7137051 X03 of 61151 - Partial Cleaning & Coating LSUM 1 $ - $ - $ -
4 8127051 Traffic Control LSUM 1 $ - $ - $ -
= APPEARNT LOW BIDDER Total: $ 68,385.00 $ 125,600.00 $ 126,135.00
Page 1 of 1
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 02/25/2020 Title: Pere Marquette Park – Grant
Declaration
Submitted By: Leo Evans Department: Public Works
Brief Summary: MDNR requires completion of a Declaration and Notice to receive reimbursement
of the grant funds that were awarded for the playground and bathhouse improvements at Pere
Marquette Park.
Detailed Summary: The completion of the attached Declaration and Notice is a requirement of
MDNR to reimburse the city for the grant portion ($220K) of funding that was allocated for the
playground and bathhouse improvements at Pere Marquette Park. The declaration is intended to
reiterate the grant obligations that were included in the original agreement signed in 2017. Staff is
requesting to have the Mayor sign the declaration
Amount Requested: $0 Amount Budgeted: $0
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion:
Authorize the Mayor to sign the attached Declaration and Notice with the Michigan DNR.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Declaration & Notice
This Declaration made this day of , 2020, by the City of Muskegon, a Michigan
municipal corporation, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443, (hereafter called City of
Muskegon), being the owner of all the property described as CITY OF MUSKEGON, REVISED PLAT OF 1903,
THAT PART OF BLOCK 742, LYING NORTHERLY OF BLOCK 744, AND NORTHERLY OF CHANNEL
ROAD, SOUTHERLY OF LAKE MICHIGAN TO, MUSKEGON LAKE CHANNEL, herein after referred to as
the Property, attached hereto, located in the City of Muskegon, Muskegon County, Michigan, hereby makes the
following declaration regarding uses to which the Property may be put.
WITNESSETH
The declaration contained herein is based on the following factual recitals:
A. The City of Muskegon developed the Property, in part, through the grant of money from the Michigan Natural
Resources Trust Fund.
B. As a condition of the grant by the DNR, the City of Muskegon has agreed to impose certain restrictions on the
Property.
NOW, THEREFORE, the City of Muskegon hereby declares that the portion of the property identified as the
project area is and shall be held, transferred, sold, conveyed, leased, occupied, and used subject to the obligation
hereinafter set forth, all of which shall run with the land.
CITY OF MUSKEGON
Date: __________________
STATE OF MICHIGAN )
) ss.
COUNTY OF )
On this day of , 20____, before me, a Notary Public in and for said County, personally
appeared , to me known to be the person
described in and who executed the foregoing instrument and acknowledged the same to be his/her free act and deed.
___________________________________
________________________Notary Public
State of Michigan, County of ____________
My Commission Expires: ______________
Acting in the County of ________________
Drafted By & Return To:
City of Muskegon Public Works
1350 E. Keating
Muskegon, MI 49442
(231) 724-4100
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 02/25/2020 Title: Emergency Sewer Repairs
Submitted By: Leo Evans Department: Public Works
Brief Summary: During the Thanksgiving Holiday a section of sanitary sewer collapsed under a
parking lot along Henry Street near Sherman Plaza. DPW contracted under emergency
circumstances to provide temporary and long term solutions to repair the collapse. The invoices
for these repairs exceed staff authorization levels and require commission approval.
Detailed Summary: On Friday, November 29th a sinkhole formed in the parking lot of Sherman
Plaza along Henry Street just north of Sherman Boulevard. After investigation by DPW crews it
was determined that the sanitary sewer line had collapsed approximately 27 FT below the parking
lot surface. The sanitary sewer line that collapsed served as an outlet for nearly all of the
Campbell Field neighborhood. Staff notified Commission of the situation on December 2nd.
The first operation performed was a temporary pump and haul where the sewage was pumped into
trucks and hauled away for disposal. This took place on 11/29/19 – 12/03/19 and was provided
primarily by Northern A-1, Muskegon County DPW and with our own City crews. The cost for A-1’s
services through this stage was $18,276.64 and is included as Attachment 1. The cost for
Muskegon County DPW services through this stage was $10,248.47. All other entities that
assisted were less than $5,000.
Starting on December 3rd a temporary bypass pump that had been installed by Jackson-Merkey
was put into place. The bypass pump provided a more manageable temporary solution that
included installation of a hydraulic pump and approximately 1,500 FT of piping to temporarily
bypass the collapsed sewer. The temporary bypass pumping remained in place until the
permanent solution was in place on January 16th, 2020. The cost for Jackson-Merkey’s services to
install the temporary bypass pump was $17,814.00 and is included as Attachment 2.
While the temporary bypass pumping was in place DPW explored several options for a long term
repair. Several options were eliminated based on the infeasibility to complete the repairs. DPW
identified a feasible repair option and worked with the Contractor to begin the repairs. Work on the
permanent repairs was started December 30th, 2019 and concluded with a successful installation
on January 16th, 2020 at a cost of $97,478.80 and is included as Attachment 3.
No basements were flooded and no damage to private property occurred as a result of this sewer
break. No sewage was lost or discharged into the lakes/streams as a result of this break.
Amount Requested: $143,817.91 Amount Budgeted: $0
Fund(s) or Account(s): 590 Fund(s) or Account(s): 590
Recommended Motion:
Authorize staff to pay the invoices to Northern A-1, Jackson-Merkey Contractors and Midwest
Trenchless Services for the emergency sewer repairs.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
INVOICE
County of Muskegon
Muskegon County Treasurer's Office
173 East Apple Avenue
Suite 104
Muskegon, MI 49442
Account #: 5920-001210
Invoice Number: 0000177569
CITY OF MUSKEGON DPW HIGHWAY DEPARTMENT Invoice Date: 02/15/2020
To:
Due Date: 03/16/2020
1350 EAST KEATING AVENUE Purchase Order No:
Muskegon, MI 49442
Remaining Unapplied Credits: 0.00
Quantity Description Unit Price Amount
1.000 OFF-/ON-SITE WW SERVICES 10,248.4700 10,248.47
Line Break/Collapse on Sherman
Vactor Truck Pump & Dump Services Performed by Wastewater 11/29 through 12/3/2019
3 Wastewater Operations Personnel @$41.43/hr Regular Time x 59 hours = $2,444.37
3 Wastewater Operations Personnel @$62.15/hr Overtime x 49 hours = $3,045.35
2 Wastewater Operations Personnel @$.25/hr Shift Differential x 27 hours = $6.75
1 Vactor Truck $99/hr x 48 hours = $4,752.00
$2,444.37
$3,045.35
$6.75
$4,752.00
------------
$10,248.47 total due
Total Invoice: 10,248.47
FINANCE CHARGE: All accounts past due may be subject to monthly Credits Applied: 0.00
finance charge, not to exceed the maximum allowable by the Muskegon
Payments Applied: 0.00
County Board of Commissioners.
Invoice Balance: 10,248.47
Please detach and return this portion with your payment.
Account #: 5920-001210
Invoice Number: 0000177569
Invoice Date: 02/15/2020
Due Date: 03/16/2020
CITY OF MUSKEGON DPW HIGHWAY DEPARTMENT REMIT TO: MUSKEGON COUNTY TREASURER'S OFFICE
173 EAST APPLE AVENUE
1350 EAST KEATING AVENUE SUITE 104
MUSKEGON, MI 49442
Muskegon, MI 49442
Amount Paid:
Revised
9/24/2019
Password for workbook:
construction
Directions at bottom of this page
How to Use The Force Account Template
STEP ONE
Click on the tab that reads "COVER." Enter the project information (i.e. project number, county/route/section, contractor, month of force
account work) into the yellow boxes at the top of the page. This information will be carried over automatically to each page of this template.
RULES TO REMEMBER
1. Never type anything into a cell that has a formula entered into it.
2. Only enter information into a yellow or highlighted cell.
LABOR SUM PAGE
This page will keep track of the names, class, regular hours, overtime hours of the people that worked on the force account work. The names, class, and
total monthly hours will be carried onto the next page, titled "Labor Cost."
1. Enter the name and class of each employee that worked on the force account work during that particular month into the white boxes under
"Employee" and "Class."
2. Enter the daily hours worked for each of those employees under the appropriate day of the month. Enter regular hours in the yellow boxes and overtime
hours into the grey boxes. The "total hours worked per month" are calculated automatically and carried over onto the "Labor Cost" page.
LABOR COST PAGE
This page will automatically retrieve the information that you entered on the "Labor Summary" page and calculate the labor and fringe cost for the force
account work during that particular month.
*The name, class, and total monthly hours of each employee on the force account work should appear on this page.
1. Enter the hourly rate for each employee beside his/her name under the yellow highlighted column, titled "Reg.Rate." The overtime rate is automatically
calculated by multiplying the hourly rate by 1.5.
2. Enter the breakdown of fringes that are allowed in the 38% mark-up beside each employee under the yellow highlighted columns titled "Fringe Rates."
The number should be a dollar figure! The total dollar amount of fringes will be automatically calculated and appear under the column titled " Fringe Cost."
Repeat this same procedure for the "Administrative Fees", highlighted in yellow that are not included in the allowable 38% mark-up.
3. These costs are automatically calculated into total labor costs, fringe costs, and administrative costs at the bottom of the page. These totals are
automatically carried to the "TOTALS" page where the cost of the entire force account is summed.
Page 0 of 19
Payroll Tax Page
This page will automatically retrieve the labor cost and calculate the payroll taxes. There are 3 options that can be used, therefore you will have to
determine which option is the correct one to use for this force account work.
1. Depending on the time of year the work was performed or whether the contractor is choosing the allowable 22% of paid wages as per Spec. 109.05
will determine the total payroll taxes paid. You will need to detemine the time of year that the work was performed to choose the correct option.
a. If Option #1 is chosen, then the work was performed during the months of January 1-June 30. If Option #2 is chosen then the work was
performed July 1-December 31. If the contractor is choosing the allowable 22% without a breakdown of taxes, then this will be automatically
calculated for you. However, if the contractor is choosing Option #1 or #2, you will need to delete the amount that is calculated automatically
in Option #3 "TOTAL PAY ROLL TAXES" to ensure that the automatic payroll tax total of 22% is not being carried to the "TOTALS" page.
If the contractor is choosing Option #1 or #2, enter the percentage that the contractor is paying into each tax into the yellow highlighted box under each tax.
NOTE: The "X" in the box means that a percenatge cannot be typed into that box due to the time of year that the work was performed.
2. The payroll total will be automatically carried to the "TOTALS" page where the cost of the entire force account is summed.
Equip Sum
This page will keep track of the equipment, operating hours, and idle hours of each contractor owned equipment used on force account. This page works
the same way that the "Labor Sum" page works. You will enter the equipement type, fuel type, mounting type, and hours operated/idled for each day
of the month.
1. Enter the "Equipment No." (if known), "year of equipment", "manufacturer" or make, and "size" of equipment in each of the appropriate boxes.
2. Under the type of equipment that you entered, you will see a box that reads "Fuel Type: G or D." In the box next to this enter a "G" for gasoline or "D"
for diesel.
3. You will do the same thing for the box that reads "Mounting: R or T." Enter "R" for rubber and "T" for track in the empty box next to it.
4. Enter the hours that the equipment was in operation in the yellow boxes next to the equipment type under the apprpriate day of the month. You will
enter the idle hours into the grey highlighted boxes.
5. The "Total Hours per Month" will be calculated automatically and carried onto the "Equip Cost" page.
Equip Cost
This page will automatically retrive the information entered on the "Equip Sum" page and calculate the equipment cost of the force account.
*The equipment, fuel type, and mounting that you entered on the "Equip Sum" page should be listed on this page under "Equipment Type."
1. Enter the hourly blue book rate in the yellow highlight column beside each equipment under "Hourly Blue Book Rate." Do the same for the operating
rate column. The hourly/monthly idle time will calculate on its own. The only informartion that you need to enter on this page is in the yellow highlighted
section because everything else is automatically calculated.
Please submit Equipment Watch pages to back up the rates being entered.
2. The equipment cost is totaled at the bottom of the page and carried over automatically to the "TOTALS" page where the entire force account is summed
together.
Page 1 of 19
3. For equipment brought to the project exclusively for force account work and on the project for less than a month,
Manually calculate the factor from Table 109.05-1 and enter it into the column titled Table 109.05-1 Conv. Factor.
Table 109.05-1
Working Hours Factor
Less than or equal to 8.0 2.00
8.1 to 175.9 2.048 - (hours/168)
176 or greater 1.00
Rent Equip
This page works the same as "Equip Sum." Enter the rented equipment onto the page just as you did the contractor owned equipment.
Rent Eq Cost
This page will retrieve the information that you entered on the "Rent Equip" page and will calculate the cost of rental equipment.
*The equipment, fuel type, and mounting that you entered on the "Rent Equip" page should be listed on this page under "Equipment Type."
1. Enter the amount that the contractor is charged for this rented equipment in the yellow highlighted columns. You will need to determine if the rate they
charged is a monthly, hourly, or daily rate.
2. Enter the amount charged to the contractor for sales tax in the yellow column beside titled "Sales Tax where Applicable."
3. Enter the operating costs for the rented equipment in the yellow highlighted column titled "Hourly Operating Rate."
4. The rented equipment cost is totaled at the bottom of the page and carried over automatically to the "TOTALS" page where the entire force account is
summed together.
Include a copy of the actual invoice
Material
This page will keep track of the material used and calculate the total used on the force account work.
1. Under "Material Description" enter the type of material (i.e. #4 Stone)
2. Enter the quantity beside the material under the column titled "quantity."
3. Enter the "Unit" (i.e., tons, cy, sy, lump sum, each)
4. Enter the cost per unit under "unit cost." The "Total Amount" will be calculated automatically.
5. The Total Material cost and 15% markup will calculate automatically at the bottom of the page as each material is entered into the database. This total
will then be carried over to the "TOTALS" page automatically.
Page 2 of 19
Include a copy of the actual invoice
3rd Party (Professional and Specialized Work)
Mark-up: 8% on the first $10,000 of work and 5% for work in excess of $10,000.
Trucking
Trucking that is not subject to prevailing wage will be paid a markup of 8% on the first $10,000 of work and 5% for work in excess of $10,000.
Include a copy of the actual invoice
Allowable Rates
Allowable Rates for Owned Equipment Not Listed in Blue Book In accordance with CMS 109.05.C.4.a
The following rates are for Contractor owned equipment used on force account or for cost analysis to establish an agreed unit price or lump sum for extra work.
These costs include the labor and equipment to deliver these items to the project. The labor and equipment required to erect, maintain, move and remove these
items are not included in these rates. The Contractor is not entitled to a mark up on these rates. The prime is entitled to the subcontractor mark up allowed in
CMS 109.05.C.6., if the traffic control is performed by a subcontractor.
Allowable Rates 4/11/2019
Drum Without light $0.57/ day Concrete Barrier 32" Maximum 12 months payment $2.09/ foot/ month
Type A flasher $ 0.51/ day Concrete Barrier 50" Maximum 12 months payment $2.47/ foot/ month
Type B flasher $1.71/day Trench Box 7,200 lbs or 6’x 20’ $68.47/day
Grabber Cone 42” $ 0.51/ day Trench Box 12,000 lbs or 8’ x 20’ $126.07/day
Sign 48" Includes cost of drive post support $3.13/ day Steel Plate ½” thick $0.06/day/S.F.
Sign 36" Includes cost of drive post support $1.89/ day Steel Plate 1” thick $0.14/day/S.F.
Sign 48" roll-up sign and support $1.24/day Saw Blade Supported by invoice cost per blade
Sign 36" roll-up sign and support $1.09/day $3.27
Milling Machine Tooth - RegularPer cutting tooth replaced, supported by each
invoice
Tripod support Sign 1' above pavement $0.63/ day Milling Machine Tooth - CarbidePer cutting tooth replaced, supported by
$5.35
invoice
each
Four leg support Sign 5'or 7' above pavement $2.52/ day Work Zone Impact Attenuator All types $4.41/day
Type III barricade $2.41/day Truck Mounted Impact Attenuator With or without arrow board $43.34/day
TOTALS
This page retrieves all the totals from each page to form a grand total for the force account work. When you have reached this page, the only item
that needs to be entered is sub-contractor force account.
If there is a line that is blank, you will need to go back and review that page to discover the problem.
**All cells which contain a formula have been locked or protected with a password. In the event that certain cells should be unlocked, you should follow
these steps to unlock the sheet:
1- On the Review menu, click on Unprotect Sheet
2- A box will pop up prompting you to enter a password to unlock the sheet. This password is "construction" (Note: Be sure that the caps lock
is turned off, as the password is case senstive and should be in all lower case letters.
3- Click Ok . You should now be able to type anywhere you point within that sheet.
4- Each sheet is protected with this same password. You will have to repeat Steps 1-3 for each sheet that you want to unlock.
Page 3 of 19
Enter the following information:
Contractor Midwest Trenchless Services
SubContractor
County/Route/Section City of Muskegon
Project Number 2012
Force Account ID Number
Force Account Description Beidler Trunk Sewer Repair-2019
Month Jan-20
Force Account ~ Employee Monthly Summary Month: January-20
Project No.: 2012 Co./Rt./Sec.: City of Muskegon Contractor: Midwest Trenchless Services
Force Acct ID: Force Acct Description: Beidler Trunk Sewer Repair-2019 Sub Contractor:
January-20
Total
Hours
Employee Class Per Mnth 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Jon Snyder Labor 117.50 8.5 8.5 9.5 8.0 10.0 11.0 11.0 8.0 11.0 12.5 12.0 7.5
OverTime 2.00 2.0
Tyrone Huff 112.00 8.5 8.5 4.0 8.0 9.5 10.5 10.5 9.5 11.0 12.5 12.0 7.5
OverTime 0.50 0.5
Dave Stockwell 43.50 2.0 10.5 11.0 10.0 7.0 3.0
OverTime 0.00
Kevin Jordan 59.50 8.5 8.5 5.5 5.5 8.0 11.0 12.5
OverTime 0.00
Buddy VanDyke 117.50 8.5 8.5 9.5 8.0 10.0 10.5 10.5 9.0 11.0 12.5 12.0 7.5
OverTime 1.00 1.0
Jeremy Rogers 54.50 9.5 10.5 9.5 11.0 10.0 4.0
OverTime 0.00
Rory Spira 49.00 9.0 9.5 10.5 9.0 11.0
OverTime 0.00
Alonzo Huff 21.00 9.5 11.5
OverTime 0.00
Force Account ~ Monthly Labor Cost Month:
Project No.: 2012 Co./Rt./Sec.: City of Muskegon Contractor: Midwest Trenchless Services
Force Acct ID: Force Acct Description: Beidler Trunk Sewer Repair-2019 Sub Contractor:
Fringe Rates Adminstration Fees
Reg. Reg. OT Labor Fringe Adm.
Employee Class Hours Rate Hours OT Rate Cost H&W Pen. Train* Ann Vac E&S LECET Totals Cost Admin OCA OCIA Totals Cost
Jon Snyder SUP 117.50 $37.50 2.00 $56.25 $4,518.75 $0.00 $0.00 $0.00 $0.00
Tyrone Huff LAB 112.00 $21.00 0.50 $31.50 $2,367.75 $0.00 $0.00 $0.00 $0.00
Dave Stockwell OP 43.50 $25.00 $37.50 $1,087.50 $0.00 $0.00 $0.00 $0.00
Kevin Jordan LAB 59.50 $21.00 $31.50 $1,249.50 $0.00 $0.00 $0.00 $0.00
Buddy VanDyke OP 117.50 $21.00 1.00 $31.50 $2,499.00 $0.00 $0.00 $0.00 $0.00
Jeremy Rogers LAB 54.50 $20.00 $30.00 $1,090.00 $0.00 $0.00 $0.00 $0.00
Rory Spira LAB 49.00 $18.00 $27.00 $882.00 $0.00 $0.00 $0.00 $0.00
Alonzo Huff LAB 21.00 $18.00 $27.00 $378.00 $0.00 $0.00 $0.00 $0.00
Total Labor Cost: $14,072.50 Total Fringes: $0.00 $0.00
* Includes Training & Apprenticeship and Tri-Fund
Force Account ~ Monthly Payroll Tax Month: January-20
Project No.: 2012 Co./Rt./Sec.: City of Muskegon Contractor: Midwest Trenchless Services
Force Acct ID: Force Acct Description: Beidler Trunk Sewer Repair-2019 Sub Contractor:
Total Labor Cost: $14,072.50
Option 1 ~ January 1st thru June 30th
Workers
Overall Labor FUTA SUTA Medicare SS Comp
Cost %/$ %/$ %/$ %/$ %/$
0 0 0 0 0
$14,072.50 Total Payroll Taxes: $0.00
Option 2 ~ July 1st thru December 31th
Workers
Overall Labor FUTA SUTA Medicare SS Comp
Cost %/$ %/$ %/$ %/$ %/$
X X
$14,072.50 X X Total Payroll Taxes: $0.00
Option 3 ~ 22% of Paid Wage (as per CMS 109.05-C-2 ~ Revised)
Workers
Overall Labor FUTA SUTA Medicare SS Comp
Cost %/$ %/$ %/$ %/$ %/$
X X X X X
$14,072.50 X X X X X Total Payroll Taxes: $3,095.95
Force Account ~ Equipment Monthly Summary Month: January-20
Project No.: 2012 Co./Rt./Sec.: City of Muskegon Contractor: Midwest Trenchless Services
Force Acct ID: Force Acct Description: Beidler Trunk Sewer Repair-2019 Sub Contractor:
January-20
Total Hours
Equipment Type Per Mnth 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Vermeer 36x50 48.00 5.0 8.0 8.0 8.0 9.0 7.0 3.0
Fuel Type Mounting
G or D: D R or T: T Idle 55.00 8.5 8.5 9.5 8.0 5.0 3.0 3.0 2.0 2.0 5.5
Mcelroy 6/18 Fusion Machine 17.50 9.5 8.0
Fuel Type Mounting
G or D: G R or T: R Idle 93.50 8.5 85.0
4140 LS Tractor 54.30 9.5 8.0 5.0 5.5 5.5 5.0 5.5 6.3 4.0
Fuel Type Mounting
G or D: D R or T: R Idle 49.80 8.5 8.5 5.0 5.5 5.5 5.0 5.5 6.3
Yanmar Vio35 54.30 9.5 8.0 5.0 5.5 5.5 5.0 5.5 6.3 4.0
Fuel Type Mounting
G or D: D R or T: T Idle 49.80 8.5 8.5 5.0 5.5 5.5 5.0 5.5 6.3
2017 Ford F-250 119.50 8.5 8.5 9.5 8.0 10.0 11.0 11.0 10.0 11.0 12.5 12.0 7.5
Fuel Type Mounting
G or D: D R or T: R Idle 0.00
2014 Ford F-250 119.50 8.5 8.5 9.5 8.0 10.0 11.0 11.0 10.0 11.0 12.5 12.0 7.5
Fuel Type Mounting
G or D: G R or T: R Idle 0.00
2016 Ford F-250 50.00 8.5 8.5 5.5 4.0 11.0 12.5
Fuel Type Mounting
G or D: D R or T: R Idle 0.00
2008 Freightliner Mix Truck 51.00 5.0 8.0 8.0 8.0 9.0 7.0 3.0 3.0
Fuel Type Mounting
G or D: D R or T: R Idle 55.00 8.5 8.5 9.5 8.0 5.0 3.0 3.0 2.0 2.0 5.5
Smith Compressor 21.00 5.0 5.5 5.5 5.0
Fuel Type Mounting
G or D: G R or T: R Idle 21.00 5.0 5.5 5.5 5.0
2019 McLaughlin VX-50-500 47.00 8.0 8.0 9.0 10.0 12.0
Fuel Type Mounting
G or D: D R or T: R Idle 9.50 3.0 2.0 2.0 2.5
2012 F750 Dump 6.00 3.0 3.0
Fuel Type Mounting
G or D: R or T: Idle 0.00
Force Account ~ Monthly Equipment Cost Month: January-20
Project No.: 2012 Co./Rt./Sec.: City of Muskegon Contractor: Midwest Trenchless Services
Force Acct ID: Force Acct Description: Beidler Trunk Sewer Repair-2019 Sub Contractor:
Brought to the Table
project 109.05-1 Operating Hourly Idle Time Hourly
Monthly Regional MR/176 exclusively for Conv. Hours for Rate Hours for Rate Idle Monthly
Equipment Type Rate X Factor X Age Factor Hourly Rate FA Work? Factor Month Operating Monthly Cost Month Idle Cost
Vermeer 36x50 $18,000.00 X 1.762 X 1.000 $180.20 yes 1.762 48.00 $15.00 $15,960.60 55.00 $90.10 $4,955.50
Mcelroy 6/18 Fusion Machine $2,000.00 X 1.944 X 1.000 $22.09 yes 1.944 17.50 $2.00 $786.50 93.50 $11.05 $1,033.18
4140 LS Tractor $1,800.00 X 1.725 X 1.000 $17.64 yes 1.725 54.30 $5.00 $1,923.79 49.80 $8.82 $439.24
Yanmar Vio35 $3,500.00 X 1.725 X 1.000 $34.30 yes 1.725 54.30 $8.00 $3,647.20 49.80 $17.15 $854.07
2017 Ford F-250 $2,200.00 X 1.337 X 1.000 $16.71 yes 1.337 119.50 $2.00 $2,908.78 0 $8.36
2014 Ford F-250 $2,200.00 X 1.337 X 1.000 $16.71 yes 1.337 119.50 $2.00 $2,908.78 $8.36
2016 Ford F-250 $2,200.00 X 1.750 X 1.000 $21.88 yes 1.750 50.00 $2.00 $2,014.50 $10.94
2008 Freightliner Mix Truck $7,500.00 X 1.744 X 1.000 $74.32 yes 1.744 51.00 $4.00 $6,814.32 55.00 $37.16 $2,043.80
Smith Compressor $1,500.00 X 1.923 X 1.000 $16.39 yes 1.923 21.00 $2.00 $703.88 21.00 $8.20 $172.20
2019 McLaughlin VX-50-500 $4,000.00 X 1.768 X 1.000 $40.18 yes 1.768 47.00 $3,338.80 9.50 $20.09 $190.86
2012 F750 Dump $3,500.00 X 2.000 X 1.000 $39.77 yes 2.000 6.00 $477.24 $19.89
X X 1.000
X X 1.000
X X 1.000
Equipment Sub Totals: Operating= $41,484.39 Idle= $9,688.85
Table 109.05-1: Select
For equipment brought to the project exclusively for yes
force account work and on the project for less than
a month. no
Working Hours Per Month Conversion Factor
Less than or equal to 8.0 2
8.1 to 175.9 2.048 - (hours/168)
176 or greater 1
Force Account ~ Monthly Material Summary Month: January-20
Project No.: 2012 Co./Rt./Sec.: City of Muskegon Contractor: Midwest Trenchless Services
Force Acct ID: Force Acct Description: Beidler Trunk Sewer Repair-2019 Sub Contractor:
Material Description Quantity Units Unit Cost Total Amount
12 in IPS HDPE Pipe 360.00 $30.23 $10,882.80
50 POUNDS W-10 WATERSTOPPER 15.00 $68.90 $1,033.50
MDOT 21AA Gravel 8.00 $14.84 $118.72
4" HDPE for bypass extension 30.00 $3.80 $114.00
Fast-Set Cement - Menards 01/16/20 5.00 $12.01 $60.05
Redi-Mix Cement - Home Depot 01/14/20 50.00 $3.80 $190.00
Redi-Mix Cement/Block Home Depot 01/14/20 50.00 $5.20 $260.00
Total Material Cost: $12,659.07
15% Markup: $1,898.86
Total: $14,557.93
Force Account ~ Monthly Subcontractor Month: January-20
Project No.: 2012 Co./Rt./Sec.: City of Muskegon Contractor: Midwest Trenchless Services
Force Acct ID: Force Acct Description: Beidler Trunk Sewer Repair-2019 Sub Contractor:
Subcontractor invoice Quantity Unit Cost Total Amount
West Michigan Cable - Vac Truck 01/06/20 6.50 $190.00 $1,235.00
West Michigan Cable - Vac Truck 01/08/20 6.50 $190.00 $1,235.00
West Michigan Cable - Vac Truck 01/09/20 8.25 $190.00 $1,567.50
West Michigan Cable - Vac Truck 01/13/20 11.00 $190.00 $2,090.00
West Michigan Cable - Vac Truck 01/13/20 10.00 $190.00 $1,900.00
Trucking Total: $8,027.50
Markup Amount $1,204.13
Total $9,231.63
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 25, 2020 Title: MANA Sports, LLC Revolving Loan
Submitted By: Frank Peterson Department: City Manager
Brief Summary: Staff is seeking of the revolving loan fund application by MANA Sports, LLC in the
amount of $30,000. The loan would be repaid based on a 36-month amortization schedule and a
7.5% interest rate.
Detailed Summary: 2020 will mark the 5th season that Mercy Health Arena has hosted
professional indoor football. As part of our collective efforts to increase attendance, the West
Michigan Ironmen are endeavoring to make significant upfront investments in marketing services,
equipment, and gameday operations. This will include purchasing goods and services in advance
of the team’s opening date. The team has developed $305,000 operating budget for the 2020
season. Much of the income will be realized during the later portions of the season as the team
hosts home game events at Mercy Health Arena. Staff is recommending the $30,000 loan to
assist with those initial costs.
Amount Requested: $30,000 Amount Budgeted: $0
Fund(s) or Account(s): Revolving Loan Fund Fund(s) or Account(s): N/A
Recommended Motion: Approve the agreements and authorize the Mayor and Clerk to sign.
Check if the following Departments need to approve the item first:
Police Dept. Fire Dept. IT Dept.
For City Clerk Use Only:
Commission Action:
TERM LOAN AGREEMENT
This Agreement is made on ______________, 2020 (“Effective Date”), between MANA
Sports, LLC, a Michigan limited liability company, of PO Box 281, Fruitport, Michigan 49415
(“Borrower”), and the City of Muskegon, a Michigan municipal corporation, of 933 Terrace
Street, Muskegon, Michigan 49440 (“City”), with reference to the following facts:
Background
A. Borrower has requested a term loan of $30,000.00 for the purpose of purchasing
goods and services necessary for the start of the 2020 football season at Mercy Health Arena.
B. The City has agreed to make the loan subject to the terms and conditions set
forth below.
Therefore, for good and valuable consideration, the parties agree as follows:
1. Conditions of loan.
a. The Loan. The City agrees to make a loan to Borrower of $30,000.00
subject to the following conditions:
i. Fulfillment of all conditions contained in Section 3;
ii. The Loan Agreement must be closed on or before March 31,
2020.
iii. Delivery to the City of a promissory note (“Note”) in form and
substance acceptable to the City, a copy of which is attached as Exhibit A; and
iv. At the time of borrowing no Event of Default as defined in Section
7 exists and no event exists which with notice and/or the passage of time could
become an Event of Default.
b. Payments. The principal amount of the Note shall be payable in monthly
installments of $933.19, each to be paid on the 1st of each month, beginning on April 1,
2020, and continuing until March 1, 2023, when the entire balance of principal and
interest shall be due and payable in full.
c. Interest. The Note shall bear interest on the outstanding balance at the
rate of 7.50% per annum.
d. Prepayments. The Borrower may at any time prepay without penalty all
or any portion of the principal, and any such payments shall be applied to the principal
installments last coming due.
2. Security.
a. Security Agreement. To secure the full and timely performance of
Borrower’s covenants set out in this Agreement and to secure the repayment of the
loans and advances made and to be made (the “Indebtedness”), Borrower agrees to
execute and deliver to the City a security agreement (“Security Agreement”) in form and
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substance satisfactory to the City, a copy of which is attached as Exhibit B, giving the
City a valid lien and security interest in the personal property described in the Security
Agreement.
b. Personal Guaranty. As additional security, Mario Flores, and any other
member of MANA SPORTS, LLC, will jointly and severally personally guarantee
repayment of the Indebtedness, as well as any members of successor entities of MANA
SPORTS, LLC.
3. Conditions Precedent to Obligations of City. The obligations of the City under
this Agreement are subject to the occurrence, prior to or simultaneously with the Borrower’s
receipt of the loan of each of the following conditions, any or all of which may be waived in
whole or in part by the City in writing:
a. Documents Executed. Borrower shall have executed and delivered to
the City all documents required to consummate this transaction.
b. Hazard Insurance. Borrower shall have furnished to the City, in a form
satisfactory to the City, hazard insurance policies, with loss payable clauses in favor of
the City as its interest appears, relating to the properties of Borrower described in
Section 2, in an amount equal to the full replacement cost of such properties.
c. Personal Guarantee. Jeff Jacobson shall execute and deliver to the City
an agreement of guarantee of the Indebtedness (“Personal Guaranty”) in form and
substance satisfactory to the City, a copy of which is attached as Exhibit C.
d. Certified Resolutions. Borrower shall have furnished to the City a copy
of the resolution of Borrower authorizing the execution, delivery, and performance of this
Agreement, the borrowing of $30,000.00 from the City, the Note, and any other
documents contemplated by this Agreement.
e. Certificate of Good Standing. Borrower shall have furnished to the City
a certificate of good standing from the Michigan Department of Commerce with respect
to the Borrower, as of a recent date.
4. Warranties and Representations. Borrower represents and warrants to the
City that, as of the date of the borrowing:
a. Corporate Existence and Power. Borrower represents and warrants
that:
i. Borrower is duly organized, validly existing, and in good standing
under the laws of the State of Michigan;
ii. Borrower has the power and authority to enter into and perform its
obligations under this Agreement; and
iii. The Agreement, the Note, the Security Agreement, the Personal
Guaranty, and all other documents referred to in this Agreement, when executed
on behalf of Borrower will be valid and binding obligations of Borrower, legally
enforceable in accordance with their terms.
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b. Actions, Suits, or Proceedings. There are no actions, suits, or
proceedings, and no proceedings before any arbitrator or by or before any governmental
commission, board, bureau or other administrative agency, pending, or, to the best of
Borrower’s knowledge, threatened, against or affecting Borrower or any properties or
rights of Borrower which, if adversely determined, could materially impair the right of
Borrower to carry on business substantially as now conducted or could have a materially
adverse effect upon the financial condition of Borrower.
c. No Liens, Pledges, Mortgages or Security Interests. Except for liens
of the City, none of Borrower’s assets are subject to any mortgage, pledge, lien, security
interest or other encumbrance of any kind or character, except the security interest of
the parties listed on Exhibit B in the personal property of Borrower described in Section 2
pursuant to the Security Agreement.
d. Accounting Principles. Balance sheets, earning statements, and other
financial data are furnished to the City, for the purposes of, or in connection with this
Agreement and the transactions contemplated by this Agreement have been prepared in
accordance with generally accepted accounting principles, consistently applied and do
or will fairly present the financial condition of the Borrower as of the dates, and the
results of their operations for the period, for which the same are furnished to the City.
e. Conditions Precedent. As of the date of this Agreement, all conditions
precedent referred to in Section 3 have been satisfied.
5. Affirmative Covenants. Until the principal and interest on the Note is paid in
full, Borrower covenants and agrees that it will:
a. Annual Financial Reports. Furnish to the City, in form satisfactory to
the City, not later than 90 days after the close of each fiscal year of Borrower, beginning
with Borrower’s fiscal year ending December 31, 2020, a balance sheet as of the close
of each such fiscal year, statements of income and retained earnings and changes in
financial position for each such year, and such other comments and financial details as
are usually included in similar reports. The reports shall be prepared in accordance with
generally accepted accounting principles consistently applied.
b. Adverse Events. Promptly inform the City of the occurrence of any
Event of Default or of any event which, with notice and/or the passage of time would
become an Event of Default, or of any occurrence which has or could reasonably be
expected to have a materially adverse effect upon Borrower’s business, properties,
financial condition or ability to comply with its obligations under this Agreement.
c. Other Information Upon Request. Promptly furnish to the City such
other information regarding the operations, business affairs, and financial condition of
Borrower as the City may reasonably request from time to time and permit the City and
its employees, attorneys and agents, to inspect all of the books, records, and properties
of Borrower at any reasonable time.
d. Non-Discrimination. Ensure that no person in the United States shall on
the grounds of race, creed, color, national origin or sex be excluded from participating in,
be denied the benefits of, or be otherwise subject to discrimination in connection with
Borrower’s activities as recipient of the financial assistance provided by this Loan.
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e. Insurance. Keep its insurable properties adequately insured and
maintain:
i. insurance against fire and other risks customarily insured against
by businesses engaged in the same or similar activities as that of Borrower;
ii. necessary worker’s compensation insurance;
iii. public liability and product liability insurance; and
iv. such other insurance as may be required by law or as may be
reasonably required in writing by the City.
All such insurance shall be in amounts, contain terms, in a form, for such purposes and
written by such companies as may be satisfactory to the City. Borrower will deliver to the City,
at its request, evidence satisfactory to the City that such insurance has been procured and
showing the City as additional insured or loss payee, as the case may be.
f. Affirmative Action Program. Comply with all applicable Affirmative
Action Programs, if any, approved by the City of Muskegon.
g. Maintain Business Entity and Property. Do or cause to be done all
things necessary to preserve and keep in full force and effect its own existence, rights
and franchises and comply with all applicable laws; continue to conduct and operate its
business substantially as conducted and operated during the present and preceding
calendar year; at all times maintain and preserve all of the remainder of its property used
or useful in the conduct of its business and keep the same in good repair, working order
and condition, and from time to time make, or cause to be made, all needed and proper
repairs, renewals, replacements, betterments and improvements thereto so that the
Borrower’s business may be properly and advantageously conducted at all times.
h. Use of Loan Proceeds. Use the proceeds of the loan for the purpose
set forth in the Background to this Agreement.
6. Negative Covenants. From the date of this Agreement until the Note is paid in
full, Borrower covenants and agrees that Borrower will not, without the prior written consent of
the City:
a. Liens. Create, incur, assume, or allow to exist any mortgage, pledge,
encumbrance, security interest, lien, or charge of any kind (including any charge upon
property purchased under a conditional sale or other title retaining agreement) upon any
of its property or assets, whether now owned or hereafter acquired, other than in favor of
the City, except: (i) as required or permitted in this Agreement; (ii) liens for taxes not
delinquent, or being contested in good faith, and, if requested by the City, bonded in a
manner satisfactory to the City; and (iii) liens not delinquent created by statute in
connection with worker’s compensation, unemployment insurance, social security, and
similar statutory obligations.
b. Indebtedness. Incur, create, assume, or permit to exist any
indebtedness or liability on account of deposits or advances or any indebtedness or
liability for borrowed money, or any other indebtedness or liability evidenced by notes,
bonds, debentures, or similar obligations, indebtedness required or permitted under this
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Agreement or indebtedness subordinated to the prior payment in full of Borrower’s
Indebtedness to the City upon the terms and conditions approved in writing by the City.
c. Extension of Credit. Make loans, advances or extensions of credit to
any Person, except for sales on open account and in the ordinary course of business.
For the purpose of this Agreement, the word “Person” means any individual, corporation,
limited liability company, partnership, trust, unincorporated association, joint stock
company, or other entity.
d. Guarantee Obligations. Guarantee or otherwise in any way become or
be responsible for obligations of any other Person, whether by agreement to purchase
the indebtedness of any other Person, or agreement for the furnishing of funds to any
other Person through the purchase of goods, supplies, or services (or by way of stock
purchase, capital contribution, advance, or loan) for the purpose of paying or discharging
the indebtedness of any other Person, or otherwise, except for the endorsement of
negotiable instruments by Borrower in the ordinary course of business for collection.
e. Subordinate Indebtedness. Subordinate any indebtedness due
Borrower from any Person to the indebtedness of other creditors of the obligor.
f. Sale of Assets. Sell, lease, or otherwise dispose of any of its assets
except in the ordinary course of business.
g. Merger. Enter into any merger, consolidation, reorganization, or
recapitalization or purchase or otherwise acquire all or substantially all of the assets of
any other Person.
h. Compensation. Without the prior written consent of the City, permit the
compensation of any manager, member, or proprietor to be excessive, taking into
consideration the financial circumstances of Borrower and the position and qualification
of the Person.
7. Default.
a. Events of Default. Should any of the following events (an “Event of
Default”) occur, Borrower shall be in default under this Agreement:
i. Misrepresentation. If any warranty or representation of Borrower
in connection with or contained in this Agreement, or if any financial data or other
information now or later furnished to the City by or on behalf of Borrower, shall
prove to be false or misleading in any material respect;
ii. Failure to Pay Monies Due. If any principal of or interest on the
Indebtedness shall not be paid within ten days after the same becomes due;
iii. Noncompliance with City Agreement. If Borrower shall fail to
perform any of its obligations and covenants hereunder, or shall fail to comply
with any of the provisions of this Agreement or any other agreement with the City
to which it may be a party;
iv. Other Defaults. If Borrower shall default in the due payment of
any of its indebtedness (other than the Indebtedness) or in the observance or
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performance of any term, covenant, or condition in any agreement or instrument
evidencing, securing, or relating to such other indebtedness, and such default
shall be continued for a period sufficient to permit acceleration of such
indebtedness;
v. Judgments. If there shall be rendered against Borrower one or
more judgments or decrees involving an aggregate liability of $10,000.00 or
more, which has or have become nonappealable and shall remain undischarged,
unsatisfied by insurance and unstayed for more than 20 days, whether or not
consecutive; or if a writ of attachment or garnishment against the property of
Borrower shall be issued and levied in an action claiming $10,000.00 or more,
and not released or appealed and bonded in a manner satisfactory to the City;
vi. Business Suspension, Bankruptcy, Etc. If Borrower shall
voluntarily suspend transaction of Borrower’s business or make a general
assignment for the benefit of creditors; or shall be adjudicated a bankrupt; or
shall file a voluntary petition in bankruptcy or for a reorganization or to effect a
plan or other arrangement with Borrower’s creditors; or shall file an answer to a
creditor’s petition or other petition against Borrower (admitting the material
allegations thereof) for an adjudication in bankruptcy or for a reorganization; or
shall apply for or permit the appointment of a receiver, trustee, or custodian for
any substantial portion of the properties or assets of Borrower; or if any order
shall be entered by any court approving an involuntary petition seeking
reorganization; or if a receiver, trustee, or custodian shall be appointed for
Borrower or if any substantial bankruptcy, reorganization, or liquidation
proceedings are instituted against Borrower and remain undismissed for 30 days;
or if Borrower becomes unable to meet Borrower’s obligations as they mature; or
if Borrower commits an act of bankruptcy;
vii. Change of Control or Management. If Borrower or a controlling
portion of its membership or a substantial portion of its assets comes under the
practical, beneficial or effective control of one or more persons, whether by
reason of death, merger, consolidation, sale or purchase of interest or assets or
otherwise; and if any such change of control adversely impacts, in the sole
judgment of the City, upon the ability of Borrower to carry on its business as
previously conducted;
b. Acceleration of Indebtedness. Upon the occurrence of any of the
Events of Default described in Sections 7(a)(i) or 7(a)(ii) or upon the occurrence of any
of the Events of Default described in Sections 7(a)(iii) through 7(a)(vii) inclusive, which is
not cured by Borrower or waived by the City within 30 days after notice to Borrower by
the City, all Indebtedness shall be immediately due and payable in full at the option of
the City without presentation, demand, protest, notice of dishonor, or other notice of any
kind, all of which are expressly waived. Unless all of the Indebtedness is then fully paid,
the City shall have and may exercise any one or more of the rights and remedies for
which provision is made for a secured party under the Uniform Commercial Code or
under any mortgage, security agreement, pledge agreement, assignment or any other
related document, including, without limitation, the right to take possession and sell,
lease, or otherwise dispose of any or all of the Collateral. Borrower agrees, upon
request of the City, to assemble the Collateral and make it available to the City at any
place designated by the City which is reasonably convenient to the City and Borrower.
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c. Cumulative Remedies. The remedies provided for by this Agreement
are cumulative to the remedies for collection of the Indebtedness as provided by law or
by any mortgage, security agreement, or any related document. Nothing in this
Agreement is intended, nor should it be construed, to preclude the City from pursuing
any other remedy for the recovery of any other sum to which the City may be or become
entitled for the breach of this Agreement by Borrower.
d. Written Waivers. No default shall be waived by the City except in writing
signed by an officer of the City, and no waiver of any default shall operate as a waiver of
any other default or of the same default on a future occasion.
8. Miscellaneous.
a. Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of the state of Michigan.
b. Entire Agreement. This Agreement constitutes the entire agreement of
the parties and supersedes any other agreements, written or oral, that may have been
made by and between the parties with respect to the subject matter of this Agreement.
All contemporaneous or prior negotiations and representations have been merged into
this Agreement.
c. Amendment. This Agreement shall not be modified or amended except
in a subsequent writing signed by all parties.
d. Binding Effect. This Agreement shall be binding upon and enforceable
by the parties and their respective legal representatives, permitted successors, and
assigns.
e. Counterparts. This Agreement may be executed in counterparts, and
each set of duly delivered identical counterparts which includes all signatories, shall be
deemed to be one original document.
f. Full Execution. This Agreement requires the signature of all parties.
Until fully executed, on a single copy or in counterparts, this Agreement is of no binding
force or effect and if not fully executed, this Agreement is void.
g. Non-Waiver. No waiver by any party of any provision of this Agreement
shall constitute a waiver by such party of any other provision of this Agreement.
h. Severability. Should any one or more of the provisions of this
Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions of this Agreement shall
not in any way be impaired or affected.
i. No Reliance. Each party acknowledges that it has had full opportunity to
consult with legal and financial advisors as it has been deemed necessary or advisable
in connection with its decision to knowingly enter into this Agreement. Neither party has
executed this Agreement in reliance on any representations, warranties, or statements
made by the other party other than those expressly set forth in this Agreement.
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j. Assignment or Delegation. Except as otherwise specifically set forth in
this Agreement, neither party shall assign all or any portion of its rights and obligations
contained in this Agreement without the express or prior written approval of the other
party, in which approval may be withheld in the other party's sole discretion.
k. Venue and Jurisdiction. The parties agree that for purposes of any
dispute in connection with this Agreement, the Muskegon County Circuit Court shall
have exclusive personal and subject matter jurisdiction and that Muskegon County is the
exclusive venue.
CITY – CITY OF MUSKEGON MANA SPORTS, LLC
By: _______________________________ By: _______________________________
Name: Steven Gawron Name: Mario Flores
Title: Mayor Title: ______________________
Dated: ____________, 2020 Dated: ____________, 2020
By: ______________________________
Name: Ann Meisch
Title: City Clerk
Dated: ____________, 2020
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Exhibit A
Promissory Note
Exhibit B
Security Agreement
Exhibit C
Personal Guaranty
PROMISSORY NOTE
$30,000.00 Muskegon, Michigan
February 25, 2020
FOR VALUE RECEIVED, MANA SPORTS, LLC, a Michigan limited liability company, of PO Box 281, Fruitport,
Michigan 49415 (“Maker”), promises to pay to the City of Muskegon, a Michigan municipal corporation, at
933 Terrace Street, Muskegon, Michigan 49440 (“City”), or at such other place as directed by the City, the
principal sum of Thirty Thousand and 00/100 Dollars ($30,000.00), together with interest from the date
hereof at the rate of 7.50% per annum on the unpaid balance remaining due from time to time. This Note
shall be payable as follows:
Equal and consecutive monthly installments of principal and interest of $933.19 shall be made
from the Maker to the City commencing April 1, 2020 and continuing on the 1st of each month
thereafter until March 1, 2023, when the entire balance of principal and interest shall be due
and payable in full. An amortization schedule is attached as Exhibit A, for reference only.
The Maker may prepay without penalty all or any portion of the principal at any time. Any partial
prepayment shall not eliminate the obligation of the Maker to pay all subsequent installments on their
normal due dates. All payment of any nature shall be applied first to accrued interest and the balance to
principal. The Maker shall maintain their business location commonly known as Mercy Health Arena in the
City of Muskegon. A move out of the City is a default under this Note.
This Note is secured by a certain security agreement of even date between the Maker and the City (“Security
Agreement”). This Note is personally guaranteed by Mario Flores, (“Personal Guaranty”). The terms of the
Security Agreement and Personal Guaranty are incorporated in this Note by reference. The City shall have
all of the rights and powers set forth in the Security Agreement and Personal Guaranty as though the same
were set forth fully in this Note. A default in the Security Agreement or Personal Guaranty shall constitute a
default of this Note.
Upon any default, including, but not limited to, any failure to make payments when due, the City may, upon
ten (10) days written notice to the Maker, declare the entire remaining balance of principal and interest to
be immediately due and payable. No delay by the City in exercising any right hereunder shall be considered
a waiver of such right.
The Maker (i) waives protest, presentment, demand for payment, and notice of dishonor: (ii) agrees that any
extension of the time for any payment, reduction of any payments, acceptance by the City of a renewal
note, or release or non-enforcement of any security, whether with or without notice, shall not release or
offset the obligations of the Maker; (iii) agrees to reimburse the City for any and all costs and expenses
(including but not limited to, reasonable and actual attorney fees) incurred in attempting to collect any and
all principal and interest on this Note.
MAKER: MANA SPORTS, LLC
By: _______________________________
Name: Mario Flores
Title: ______________________
Date: ______________, 2020
Exhibit A
Date Interest Principal Balance
Apr, 2020 $188 $746 $29,254
May, 2020 $183 $750 $28,504
Jun, 2020 $178 $755 $27,749
Jul, 2020 $173 $760 $26,989
Aug, 2020 $169 $765 $26,225
Sep, 2020 $164 $769 $25,455
Oct, 2020 $159 $774 $24,681
Nov, 2020 $154 $779 $23,902
Dec, 2020 $149 $784 $23,119
2020 $1,517 $6,881 $23,119
Jan, 2021 $144 $789 $22,330
Feb, 2021 $140 $794 $21,536
Mar, 2021 $135 $799 $20,738
Apr, 2021 $130 $804 $19,934
May, 2021 $125 $809 $19,125
Jun, 2021 $120 $814 $18,312
Jul, 2021 $114 $819 $17,493
Aug, 2021 $109 $824 $16,669
Sep, 2021 $104 $829 $15,840
Oct, 2021 $99 $834 $15,006
Nov, 2021 $94 $839 $14,167
Dec, 2021 $89 $845 $13,322
2021 $1,402 $9,797 $13,322
Jan, 2022 $83 $850 $12,472
Feb, 2022 $78 $855 $11,617
Mar, 2022 $73 $861 $10,756
Apr, 2022 $67 $866 $9,890
Date Interest Principal Balance
May, 2022 $62 $871 $9,019
Jun, 2022 $56 $877 $8,142
Jul, 2022 $51 $882 $7,260
Aug, 2022 $45 $888 $6,372
Sep, 2022 $40 $893 $5,479
Oct, 2022 $34 $899 $4,580
Nov, 2022 $29 $905 $3,675
Dec, 2022 $23 $910 $2,765
2022 $641 $10,557 $2,765
Jan, 2023 $17 $916 $1,849
Feb, 2023 $12 $922 $927
Mar, 2023 $6 $927 $0
2023 $35 $2,765 $0
SECURITY AGREEMENT
This Security Agreement is entered into on _________________, 2020 (“Effective
Date”), between MANA SPORTS, LLC, a Michigan limited liability company, of PO Box 281,
Fruitport, Michigan, 49415 (“Debtor”), and the City of Muskegon, a Michigan municipal
corporation, at 933 Terrace Street, Muskegon, Michigan 49440 (“City”), with reference to the
following facts:
Background
A. Debtor has received from City a loan in the amount of $30,000.00 pursuant to the
terms and conditions of a certain term loan agreement between City and Debtor of even date
(“Loan Agreement”).
B. Debtor has agreed to grant a security interest in all of its assets as security for
payment of the loan pursuant to the terms of a certain promissory note between Debtor and City
of even date (“Note”).
Therefore, for good and valuable consideration, the parties agree as follows:
1. Definitions. As used in this Security Agreement, the following definitions (in
addition to other terms and provisions set forth in Article IX of the Michigan Uniform Commercial
Code, MCL 440.9101 et seq.) shall apply:
a. Collateral. The collateral shall consist of all of the personal property of
Debtor, wherever situated, whether now owned or later acquired, including: Accounts;
Chattel paper; Deposit Accounts; Documents; Equipment; Farm Products; General
Intangibles, including payment intangibles; Goods; Instruments, including promissory
notes; Inventory; Investment Property; Letters of Credit and Letters of Credit Rights;
Supporting Obligations. To the extent not listed above as original Collateral, proceeds
and products of the foregoing, including all Inventory repossessed or returned; and, in
addition, as used in this Agreement, Inventory includes goods held for sale or lease or
furnished or to be furnished under contracts of service, or goods being processed for
sale in Debtor’s business, as now or later conducted, including raw materials, work in
process, finished goods, and materials and supplies used or consumed in Debtor’s
business. All of the above shall be referred to as the “Collateral”.
b. Obligations. This Security Agreement secures the following (collectively,
the “Obligations”):
i. Debtor’s obligations and liabilities under the Loan Agreement,
including any agreements or instruments referred to therein, the Note and this
Agreement;
ii. The repayment of (1) any amounts that City may advance or
spend for the maintenance or preservation of the Collateral, and (2) any other
expenditures that City may make under the provisions of this Security Agreement
or for the benefit of Debtor;
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iii. All amounts owed under any modifications, renewals, or
extensions of any of the foregoing items; and
iv. Any of the foregoing that arises after the filing of a petition by or
against Debtor under the Bankruptcy Code, even if the obligations due do not
accrue because of the automatic stay under the Bankruptcy Code Section 362 or
otherwise.
c. Term. A period of time commencing on the date of this Agreement and
ending on the Termination Date.
d. Termination Date. The date when all Obligations owed by Debtor to City
have been satisfied.
e. UCC. Any term used in the Uniform Commercial Code as adopted from
time to time in the State of Michigan (“UCC”) and not defined in this Security Agreement
has the meaning given to the term in the UCC.
2. Grant of Security Interest. As security for the payment or performance of the
Obligations, Debtor grants a Security Interest in the Collateral to City.
3. Perfection of Security Interests.
a. Filing of Financing Statement. Debtor authorizes City to file a financing
statement (the “Financing Statement”) describing the Collateral.
b. Possession. Debtor shall have possession of the Collateral, except
where otherwise expressly provided in this Security Agreement.
c. Control. Debtor will cooperate at all times with City in obtaining control
with respect to the Collateral.
4. Post-Effective Date Covenants and Rights Concerning the Collateral.
a. Inspection. The parties to this Security Agreement may inspect any
Collateral in the other party’s possession or control at any time upon reasonable notice.
b. Personal Property. The Collateral shall remain personal property at all
times; and Debtor shall not affix any of the Collateral to any real property in any manner
that would change its nature from that of personal property to real property or to a
fixture.
c. City Collection Rights. City shall have the right at any time to enforce
Debtor’s rights against the account debtors and obligors.
d. Limitations on Duties Concerning Maintenance of Collateral.
i. Debtor has the risk of loss of the Collateral; and
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ii. City has no duty to collect any income accruing on the Collateral
or to preserve any rights relating to the Collateral.
e. Inventory. Debtor has the power to sell Debtor’s Inventory in the
ordinary course of Debtor’s business, provided that Debtor is not in default. In addition,
the parties agree as follows:
i. A sale of Debtor’s Inventory not in the ordinary course of business
shall constitute a default; and
ii. The interest of City shall continue in all proceeds of sales and all
dispositions of Debtor’s Inventory.
5. Covenants, Warranties and Representations of Debtor. Debtor, as an
inducement to City to extend credit to Debtor, covenants, represents, and warrants to City the
following:
a. Title to and Transfer of Collateral. Debtor has rights in or the power to
transfer the Collateral, and its title to the Collateral is free of all adverse claims, liens,
security interests, and restrictions on transfer or pledge.
b. Location of Collateral. Debtor will maintain the Collateral at, and will not
remove the Collateral from, Debtor’s business address of 2221 Lemuel Street,
Muskegon Heights, Michigan 49444, without the prior written consent of City. Debtor will
promptly notify City in writing of any change in the location of any place of business or
establishment of any new place of business of Debtor.
c. Organization and Name. Debtor is duly organized and operating a
business under the laws of the State of Michigan; and, further, until the Obligations are
paid in full, Debtor agrees that Debtor will:
i. Preserve its existence in good standing and not, in one
transaction or a series of related transactions, merge into or consolidate with any
other entity, or sell all or substantially all of Debtor’s assets;
ii. Not change Debtor’s name without the written consent of City.
Debtor’s exact legal name is as set forth in the first paragraph of this Security
Agreement; and
iii. Not change its location as that term is defined in UCC 9-307 (MCL
440.9307).
d. Use. The Collateral will be used primarily for Debtor’s business.
e. Records. Debtor will at all times during this Agreement keep accurate
and complete records of Debtor’s Collateral, and will, at any time at the request of City,
deliver to City a schedule specifically identifying all of the Collateral.
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f. Insurance. Debtor will keep the Collateral continuously insured with
insurance carriers in amounts and against risks that shall be reasonably satisfactory to
City, with the loss payable clause in favor of City.
g. Indemnification. Debtor agrees to indemnify and hold harmless City
from any loss or damage caused by the Collateral or its use, and immediately to give
written notice to City of any loss of or damage to the Collateral occasioned by any
cause.
h. Impairment of Collateral. If the Collateral becomes unsatisfactory to
City or deteriorates in market or actual value, Debtor will, after written demand given by
City to Debtor, promptly reduce the debt to City to the extent specified by City or, in the
alternative, increase the Collateral to the amount affixed by City.
i. Financial and Other Statements. During the term of this Agreement,
Debtor will deliver to City as soon as practicable upon request by City (and in any event,
within 90 days thereafter), the following:
i. Debtor’s balance sheet at the end of such year;
ii. Debtor’s tax return for such fiscal year; and
iii. A certificate of good standing or similar document from the Office
of the Secretary of State affirming that Debtor remains duly organized under the
laws of the State of Michigan.
6. Events of Default. The occurrence of any of the following shall, at the option of
City, be an Event of Default:
a. Any default, Event of Default as defined under the Agreement, this
Security Agreement, or any of the other Obligations;
b. Debtor’s failure to comply with any of the provisions of, or the
incorrectness of any representation or warranty contained in, this Security Agreement or
in any of the other Obligations;
c. Transfer or disposition of any of the Collateral, except as expressly
permitted by this Security Agreement;
d. Attachment, execution, or levy on any of the Collateral;
e. Debtor voluntarily or involuntarily becoming subject to any proceeding
under (i) the Bankruptcy Code or (ii) any similar remedy under state statutory or common
law; or
f. Debtor shall fail to comply with, or become subject to any administrative
or judicial proceeding under any federal, state, or local (i) hazardous waste or
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environmental law, (ii) asset forfeiture or similar law which can result in the forfeiture of
property, or (iii) other law, where noncompliance may have any significant effect on the
Collateral.
7. Default Costs. Should an Event of Default occur, Debtor will pay to City all
costs reasonably incurred by City for the purpose of enforcing its rights hereunder, including:
a. Costs of foreclosure;
b. Costs of obtaining money damages; and
c. A reasonable fee for the services of attorneys employed by City for any
purpose related to this Security Agreement or the Obligations, including consultation,
drafting documents, sending notices, or instituting, prosecuting, or defending litigation or
arbitration.
8. Remedies Upon Default.
a. General. Upon any Event of Default, City may pursue any remedy
available at law (including those available under the provisions of the UCC), or in equity,
to collect, enforce, or satisfy any Obligations then owing, whether by acceleration or
otherwise.
b. Conformer Remedies. Upon any Event of Default, City shall have the
right to pursue any of the following remedies separately, successively, or
simultaneously:
i. File suit and obtain judgment and, in conjunction with any action,
City may seek any ancillary remedies provided by law, including levy of
attachment and garnishment;
ii. Take possession of any Collateral not already in its possession
without demand and without legal process. Upon City’s demand, Debtor will
assemble and make the Collateral available to City as City may direct. Debtor
grants to City the right, for this purpose, to enter into or on any premises where
Collateral may be located; and
iii. Without taking possession, sell, lease, or otherwise dispose of the
Collateral at public or private sale in accordance with the UCC.
9. Foreclosure Procedures.
a. No Waiver. No delay or omission by City to exercise any right or remedy
accruing upon any Event of Default shall: (i) impair any right or remedy, (ii) waive any
default or operate as an acquiescence to the Event of Default, or (iii) affect any
subsequent default of the same or of a different nature.
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b. Notices Regarding Sale. City shall give Debtor such notice of any
private or public sale as may be required by the UCC.
c. Condition of Collateral. City has no obligation to clean-up or otherwise
prepare the Collateral for sale.
d. No Obligation to Pursue Others. City has no obligation to attempt to
satisfy the Obligations by collecting them from any other person liable for them and City
may release, modify, or waive any Collateral provided by any other person to secure any
of the Obligations, all without affecting City’s rights against Debtor. Debtor waives any
right it may have to require City to pursue any third person for any of the Obligations.
e. Compliance with Other Laws. City may comply with any applicable
state or federal law requirements in connection with a disposition of the Collateral, and
compliance will not be considered to adversely affect the commercial reasonableness of
any sale of the Collateral.
f. Warranties. City may sell the Collateral without giving any warranties as
to the Collateral. City may specifically disclaim any warranties of title or the like. This
procedure will not be considered to adversely affect the commercial reasonableness of
any sale or other disposition of the Collateral.
g. Sales on Credit. If City sells any of the Collateral upon credit, Debtor will
be credited only with payments actually made by the purchaser, received by City, and
applied to the indebtedness of the purchaser. If the purchaser fails to pay for the
Collateral, City may resell the Collateral, and Debtor shall be credited with the proceeds
of the sale.
h. Purchases by City. If City purchases any of the Collateral being sold,
City may pay for the Collateral by crediting some or all of the Obligations of Debtor.
i. No Marshaling. City shall have no obligation to marshal any assets in
favor of Debtor, or against or in payment of any of the Obligations or any other obligation
owed to City by Debtor or any other person.
10. Miscellaneous.
a. Assignment. This Security Agreement shall bind and shall inure to the
benefit of the heirs, legatees, executors, administrators, successors, and assigns of City
and shall bind all persons who become bound as a debtor to this Security Agreement.
City does not consent to any assignment by Debtor except as expressly provided in this
Security Agreement. City may assign its rights and interests under this Security
Agreement. If an assignment is made, Debtor shall render performance under this
Security Agreement to the assignee. Debtor waives and will not assert against any
assignee any claims, defenses, or set-offs that Debtor could assert against City except
defenses that cannot be waived.
b. Severability. Should any provision of this Security Agreement be found
to be void, invalid, or unenforceable by a court or panel of arbitrators of competent
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jurisdiction, that finding shall only affect the provisions found to be void, invalid, or
unenforceable and shall not affect the remaining provisions of this Security Agreement.
c. Notices. Any notices required by this Security Agreement shall be
deemed to be delivered when a record has been (i) deposited in any United States
postal box if postage is prepaid, and the notice properly addressed to the intended
recipient, (ii) received by fax, (iii) received through the Internet, and (iv) when personally
delivered.
d. Headings. Section headings used in this Security Agreement are for
convenience only. They are not a part of this Security Agreement and shall not be used
in construing it.
e. Governing Law. This Security Agreement is being executed and
delivered and is intended to be performed in the State of Michigan and shall be
construed and enforced in accordance with the laws of the State of Michigan.
f. Waiver. Any party to this Security Agreement may waive the
enforcement of any provision to the extent the provision is for its benefit.
g. Further Assurances. Debtor agrees to execute any further documents,
and to take any further actions, reasonably requested by City to evidence or perfect the
security interest granted herein, to maintain the priority of the security interests, or to
effectuate the rights granted to City herein.
The parties have signed this Security Agreement on the date set forth below their
names, to be effective as of the date set forth above.
City – City of Muskegon Debtor – MANA SPORTS, LLC
By: _______________________________ By: _______________________________
Name: Steven Gawron Name: Mario Flores
Title: Mayor Title: ______________________
Dated: ____________, 2020 Dated: ____________, 2020
By: ______________________________
Name: Ann Meisch
Title: City Clerk
Dated: ____________, 2020
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PERSONAL GUARANTY
This Personal Guaranty (“Guaranty”) is given ____________, 2020 (“Effective Date”), by
Mario Flores (“Flores”) to the City of Muskegon (“City”), with reference to the following facts:
Background
A. The City has extended to MANA SPORTS, LLC, a Michigan limited liability
company (“West Michigan Ironmen”), the principal sum of $30,000.00 represented by a
promissory note of even date (“Debt”).
B. Flores is financially interested in the West Michigan Ironmen and he will receive
valuable consideration for the Debt to West Michigan Ironmen.
C. Therefore, Flores agrees that he will guarantee payment of the Debt to the full
extent of any property or interest held or owned by him under any form of legal or beneficial
ownership. Flores desires to enter into this Guaranty to induce the City to engage in
transactions in which West Michigan Ironmen may make, extend, renew, or refinance the Debt
to the City.
Therefore, for good and valuable consideration, Flores agrees as follows:
1. Guaranty. Flores guarantees to the City, its successors and assigns, the prompt
payment when due, whether by acceleration or otherwise, of the Debt, together with interest at
the rate stated in any document evidencing such liability, and any attorney fees, costs and
expenses of collection incurred by the City in connection with any liability covered by this
Guaranty. Such Guaranty shall extend to any property or interest held or owned by Flores
individually or jointly or under any other form of legal or beneficial ownership.
2. Duration. The obligation of Flores shall continue until full payment is made of the
Debt of West Michigan Ironmen to the City now due or hereafter to become due and until
payment is made of any loss or damage incurred by the City with respect to any liability covered
by this Guaranty.
3. Successors and Assigns Bound. Flores agrees that this Guaranty shall be
enforceable against his heirs, successors, and assigns.
4. Guaranty to be Supplemental. Flores agrees that this Guaranty shall
supplement and be in addition to any other guaranty, indemnity, pledge, security agreement,
mortgage, hypothecation, or any other form of collateral to secure any liability of West Michigan
Ironmen.
5. Consent. Flores consents, without affecting his obligations to the City, that the
City may, without notice to or the consent of Flores, in its sole discretion, deal in any manner with
the Debt and any collateral therefor, including, but not limited to, the following powers, in addition
to any powers granted by law:
a. To extend, in whole or in part, by renewal, refinancing or otherwise, the
time of payment of the Debt;
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b. To release, surrender, exchange, modify, impair or extend the period or
duration or the time for performance or payment of any collateral securing the Debt;
c. To settle or compromise any claim of the City against West Michigan
Ironmen, or against any other person, firm or corporation, whose obligation is held by the
City as collateral security for payment of the Debt;
d. In the event of nonpayment when due, by acceleration or otherwise, of the
Debt, to realize on the collateral or any part thereof, in whole or in such parcels or
subdivided interests as the City may elect, at any public or private sales, on such terms
and conditions as the City may accept, without demand, advertisement or notice of the
time and place of sale or any adjournment thereof, or by foreclosure or otherwise, or to
forbear from realizing thereon, all as the City in its sole discretion may deem proper, and
to purchase all or any part of the collateral for its own account. At any such sale or
foreclosure, such powers are to be exercised only to the extent permitted by law; and
e. To modify or otherwise change any terms of all or any part of the Debt or
the rate of interest thereon.
Flores ratifies and affirms any such extension, renewal, release, surrender, exchange,
modification, impairment, settlement, compromise, purchase at a foreclosure or other sale, and
all such actions shall be binding upon Flores who waives all defenses, counterclaims, or offsets
which he might have by reason thereof.
6. Waiver. Flores waives: (a) notice of acceptance of this Guaranty by the City; (b)
notice of presentment, demand for payment, protest, or other default of any of West Michigan
Ironmen’s liabilities or the obligation of any person, firm, or corporation held by the City as
collateral security for West Michigan Ironmen’s obligation; (c) notice of the failure of any person,
firm, or corporation to pay to the City any indebtedness held by the City as collateral security for
payment of the Debt; and (d) all defenses, offsets, and counterclaims that Flores may at any
time have to any claim of the City against West Michigan Ironmen.
7. Discharge. The obligation of Flores and the rights of the City in collateral
securing repayment of the Debt shall not be released, discharged, or in any way affected, nor
shall Flores have any rights against the City by reason of the fact that: (a) collateral may be in
default at the time of acceptance by the City or subsequent to such date; (b) a valid lien or
security interest in any of the collateral may not be created in favor of or conveyed to the City; (c)
any of the collateral may be subject to equities or defenses or claims in favor of others or may be
invalid or defective in any way; (d) the financial condition of Borrower or Flores may not have
been correctly estimated or may have changed; and (e) any collateral may have deteriorated,
wasted or been lost by fire, theft, casualty, or otherwise unless such deterioration, waste, or loss
shall be caused by willful act of the City.
8. Remedies. The City may at its option proceed against Flores to collect any
obligation covered by this Guaranty, without first proceeding against West Michigan Ironmen, or
any other person, firm, corporation, or guarantor, and without first resorting to any property at
any time held by the City as collateral security. The City may proceed against Flores as if such
amounts due are the direct and primary obligation of Flores. Flores shall have no right of
subrogation, indemnification, or contribution with respect to the Debt or the collateral unless and
until the City shall have received full payment of the Debt.
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9. Choice of Law. This Guaranty is established and accepted by the City under the
laws of the State of Michigan and all questions concerning its validity and construction shall be
determined under such laws.
10. Severability. If any clause, provision, or paragraph of this Guaranty is ruled
invalid or unenforceable by any court of competent jurisdiction, the invalidity or unenforceability
of such clause, provision, or paragraph shall not affect any of the remaining clauses, provisions,
or paragraphs.
This Guaranty has been executed on the day and year above written.
_________________________
Mario Flores, individually
Dated: _____________, 2020
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