City Commission Packet 08-09-2022

View the PDF version Google Docs PDF Viewer

          CITY OF MUSKEGON
            CITY COMMISSION MEETING
                AUGUST 9, 2022 @ 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, AWARDS, AND PRESENTATIONS:
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
    A. Approval of Minutes          City Clerk
    B.     Sanford Street Reconstruction DPW
    C. Lead Service Line Replacements            DPW
    D. Getty Street Traffic Study         DPW
    E.     Apple Avenue Traffic Study     DPW
    F.     ARP Infill Housing Working Cash Fund Request         Economic Development
    G. MERS Amortization Extension        Finance
    H. MI-HOPE Leverage Funds             CNS
    I.     Water Supply System Bonds Series A & B          Finance
    J.     Sanitary Sewer Supply System Bonds Finance
□        PUBLIC HEARINGS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
□ ANY OTHER BUSINESS:
□ PUBLIC COMMENT ON NON-AGENDA ITEMS:

                                             Page 1 of 2
►      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:
□ 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: August 9, 2022             Title: Approval of Minutes

Submitted By: Ann Marie Meisch, MMC                 Department: City Clerk

Brief Summary: To approve the minutes of the July 11, 2022 Worksession and July 12, 2022
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, July 11, 2022
                                       5:30 p.m.
                              City Commission Chambers
                        933 Terrace Street, Muskegon, MI 49440

                                        MINUTES



2022-66

Present: Mayor Johnson, Vice Mayor German, Commissioners Gorman, St.Clair, and
Emory

Absent: Commissioner Hood and Commissioner Ramsey

City Park Concession Policy
Staff is seeking guidance regarding a formal concession policy to be applied to potential
concessionaires operating within the City Park system. Staff is presenting a draft policy
for accepting, reviewing, and approving applications to be a concessionaire within the
City Park system. Currently applications are accepted by DPW and approved at the
Commission level, with no formalized policy. This is the next step following the
concession fee waiver policy adopted at the May 24, 2022 meeting.

If enacted by future Commission decision, the policy would apply to any operation that
looks to sell a good or service within the traditionally recognized city park system. This
policy is not envisioned to apply to other similar operations like Western Market that
operate outside of the city park system.

Discussion took place regarding the proposed City Park Concession Policy and this
item will appear on the agenda at a later date.

Playground Inspection Results
Staff wishes to share results of a comprehensive playground inspection and discuss
how Parks Department funds should be prioritized for playgrounds in the future.

The inspection report recommended major repairs or closure of several playgrounds,
together with minor repairs to many more. Given the cost of recent playground
installations, staff seeks the Commission’s guidance on how to prioritize playground
funding in the future, together with share a brief financial analysis of playground
spending in the context of the Parks Department budget.
Dan VanderHeide, Deputy Director of the Department of Public Works, presented
information obtained from an inspection that was conducted on all of the playground
equipment in the parks in the City. Discussion took place regarding the
recommendations that were made by the inspector. This topic will continue to be
addressed as appropriate.

Minimum Housing Unit Sizes
Staff is seeking Commission input on a proposed ordinance amendment that would
reduce the minimum sizes for residential units to help address affordability issues.

Discussion took place and this will be addressed at a later date.

Public Comment – Public comment was received

Adjournment: The City Commission Worksession Meeting adjourned at 7:30 p.m.

                                                Respectfully Submitted,



                                                Kimberly Young, Deputy City Clerk
       CITY OF MUSKEGON
        CITY COMMISSION MEETING
              JULY 12, 2022 @ 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, Michigan at 5:30 p.m., Tuesday, July 12, 2022,
Vice Mayor, Willie German, Jr., opened the meeting with prayer, after which the
Commission and public recited the Pledge of Allegiance to the Flag.
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners,
Teresa Emory, Rachel Gorman, Rebecca St.Clair, and Michael Ramsey, Interim
City Manager LeighAnn Mikesell, City Attorney John Schrier, and City Clerk Ann
Meisch.
Absent:     Commissioner Eric Hood
PUBLIC COMMENT ON AGENDA ITEMS:              Public comments received.
2022-67     CONSENT AGENDA:
  A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the May 20, 2022 Special
Meeting, May 25, 2022 Special Meeting, June 13, 2022 Worksession, and June 14,
2022 Regular Meeting.
STAFF RECOMMENDATION:          To approve the minutes.
  B.   Lift Station Pump Replacements        DPW/Water & Sewer
SUMMARY OF REQUEST: Authorize Staff to purchase a replacement pump for
Apple Lift Station for $41,645 and a replacement for Beach Lift Station for
$37,874 from Kennedy Industries (sole supplier).
The Apple Lift Station was upgraded in 1999 and has two pumps with one being
replaced in 2009 and the original pump is 23 years old. Apple Lift Station is one
of our busiest stations and we recommend replacing the original pump with a
new Flygt pump from Kennedy Industries. This will increase the efficiency and
reliability of this station and the old pump will be cleaned up and stored for use
as a back up in emergency situations.
Beach Lift Station has had both pumps replaced with the first replacement in
2009 and the second replacement in 2013. This station has limited storage and

                                         Page 1 of 8
high hourly usage throughout the year. The new Flygt pump from Kennedy
Industries would serve as a back up to improve reliability in emergency
situations.
AMOUNT REQUESTED:         $79,519               AMOUNT BUDGETED:          $150,000
FUND OR ACCOUNT:          Sewer CIP Fund – 590-91828
STAFF RECOMMENDATION:            To authorize staff to move forward with the
purchase.
  C. DPW Roofing – 2B & 2C       Public Works
SUMMARY OF REQUEST: Staff is seeking approval of a contract with Ostrander
Roofing (Contracting) and Garland (Materials) in the amount of $185,614 to
repair sections 2B and 2C of the roofing at DPW.
Staff solicited bids for roofing work at DPW and included funds in the 22/23
budget for this item of work.
Included in the bids were sections 2B and 2C of the roofing at DPW. Section 1
was completed in 2019 and section 2A has been approved but was delayed
starting so the work could coordinate with 2B and 2C to minimize impact on the
building. Section 3 (last section) will not require any work for a few years.
Staff is recommending that we accept the low bid from Ostrander Roofing and
Garland Materials.
AMOUNT REQUESTED:         $185,614              AMOUNT BUDGETED:          $185,000
FUND OR ACCOUNT:          642-60442-5790
STAFF RECOMMENDATION:        Authorize staff to contract with Ostrander Roofing
and Garland in the amount of $185,614 for the roofing repairs at DPW.
  E.   Musketawa Trail Project – Change Order #004          Engineering
SUMMARY OF REQUEST: Staff is requesting approval of Change Order #004 on
the Musketawa Trail Connector project as the overall project has exceeded
staff approval levels for change orders.
The majority of Changer Order #004 represents the quantity balance of all pay
items and the addition of one pay item to bring the project to final completion.
Change Order #004 requests a net increase to the project of $18,862.64 above
the previously approved requests.
This change order will result in the following final values for the project:
As-Bid Cost = $518,602.35
Current Cost = $580,736.90
Net Change = $62,134.55 (111.98% Increase)


                                           Page 2 of 8
Even with the approval of Change Order #004 the project is expected to finalize
below the budgeted amount and not require any adjustments save for a
potential to shift any unspent 21/22 funds to 22/23 due to delays in the MDOT
billing and payment process.
AMOUNT REQUESTED:          $18,862.64           AMOUNT BUDGETED:        $650,000
FUND OR ACCOUNT:           202-99118
STAFF RECOMMENDATION:          Authorize staff to approve Change Order #004 to
Project 99118 in the amount of $18,862.64 for the additional work as noted.
  F.   DPW Vehicle Change Order           DPW – Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
amend the price of the previously approved DPW Vehicle Replacement
purchase.
At the 8/24/2021 Commission Meeting the Commission approved the purchase
of 15 (fifteen) replacement vehicles in the amount of $476,131 for various DPW
vehicles as follows:
   •   F-350 Construction Trucks (3EA – 1 Highway / 1 Traffic / 1 Water & Sewer)
   •   F-450 Dump Trucks (2 EA – 1 Highway / 1 General Use)
   •   F-250 Water/Sewer Dept. (4 EA – 4 Water & Sewer)
   •   F-250 Parks Dept. (3 EA – Parks)
   •   2500 HD Fleet Vehicles (3EA – DPW Supervisor Vehicles)
We are just starting to receive the bulk of these vehicles and finding that the
approved price will require adjustment for two reasons:
   •   First, there is a staff error in that the original approval amount of $476,131
       was based on the estimated vehicle cost and did not include the
       anticipated build costs which are in addition to the base vehicle costs.
       Had that been corrected at the time of the 8/25/21 action the staff
       request would have been for $571,000.
   •   Second, is the inflationary pressure on build pricing and the fact that
       several of these vehicles will be rolled from one model year to the next
       before they can be fulfilled carrying a price increase. Also included in this
       revision is a change in need wherein one of the F-350 vehicles is being
       changed from a Construction Truck to a Lift Station truck which is a
       substantially more expensive build cost to equip the vehicle with a crane.
       This is due to the condition of our existing lift station truck moving up in
       priority.
A summary of the originally budgeted amounts and the revised amounts per
vehicle is attached to summarize the change.


                                            Page 3 of 8
There are sufficient funds in the equipment budget tyo support this revision and it
will be addressed via a future reforecast if needed, further delays in delivery
may negate the need for a reforecast. If necessary a reforecast would likely be
addressed at the 2nd or 3rd quarter of 22/23
AMOUNT REQUESTED:          $173,033              AMOUNT BUDGETED:         $94,869
($694,164 Final Price - $476,131 Approved)       ($571,000 Budget 0 $476,131 Approval)
FUND OR ACCOUNT:           661-60932-5730
STAFF RECOMMENDATION:        Authorize a change in the overall purchase price
for the 15 DPW replacement vehicles from $476,131 to $649,164.
  G. Sale – 213 Myrtle Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell the City owned
vacant lot to Franchelle Crowley.
Franchelle Crowley will be constructing a single-family home on the lot owned
by the City of Muskegon. The property is zoned R-3 (single Family Residential).
The parcel will be sold for 75% of the True Cash Value (TCV) per policy. The
selling price will be $2,025. The property is in the Brownfield Development area.
The home will be constructed within eighteen (18) months.
STAFF RECOMMENDATION:       Authorize the Code Coordinator to work with the
developer and complete the sale of the City owned buildable lot as described
and to have the Mayor and Clerk sign the purchase agreement and deed.
  I.   Arena Seats         Arena
SUMMARY OF REQUEST: The arena has added seating with the expansion of
Suite 6 and Party Deck 3. We are looking to add seating to these areas as well
as replacing lost, stolen, and or damaged seats.
Trinity Health Arena is requesting the approval to purchase new seating to fill the
newly expanded areas. The arena is operating the Suites, Lodges and Party
Decks with the original seating purchased during the initial remodel. Arena
management would like to consolidate all current seating to one area and
purchase new seating more friendly to the budget. The goal would be to cycle
out the old and transition everything to the new over a period of time to ensure
that the city will not be responsible to replace everything all at once.
AMOUNT REQUESTED:          $10,000               AMOUNT BUDGETED:         $10,000
FUND OR ACCOUNT:           254-5700
STAFF RECOMMENDATION:              To approve the expense.
  J.   Arena Floors (Lower Level)       Arena
SUMMARY OF REQUEST: The arena is in desperate need of new rubber flooring.
We are requesting that the lower level (tunnel, locker rooms) be fitted for arena

                                             Page 4 of 8
grace vulcanized rubber with a 20-year life span.
Trinity Health Arena is requesting the approval of new vulcanized rubber flooring
throughout the lower level. We have roughly 10,000 square feet of hallway and
locker-room space that needs a complete overhaul. The deterioration of the
current rubber floor is full of bacteria and MRSA. It is becoming more difficult to
clean, maintain, and keep sanitary. The vulcanized rubber floor we wish to install
has many benefits to in including: Non-porous, easy to clean, Green Guard Gold
certified, 100% recyclable, Fire resistant, Fungal, bacterial, and microbial
resistance throughout. The cost is $150,000 and we would look to install the new
flooring while the ice is out during the month of July. This completed project will
but the arena in good standing for 20+ years and continue to ad value to the
recruitment of top programs, teams, and players from around the country.
AMOUNT REQUESTED:         $123,580           AMOUNT BUDGETED:          $150,000
FUND OR ACCOUNT:          254-9000
STAFF RECOMMENDATION:           To approve the expense.
  K. Lawrence Baker Lot Sale Amendment                 Planning/Economic
     Development
SUMMARY OF REQUEST: Staff is seeking approval of the amendment to the lot
sale agreement.
Mr. Baker has requested to purchase a lot at 1341 Ducey instead of 1328 James
Street as originally approved by the Commission. The number of constructed
homes and the lot purchase amount remains unchanged.
STAFF RECOMMENDATION:       To approve the amendment to the Lot Sale
Agreement as presented, and authorize the Mayor and Clerk to sign.
Motion by Commissioner Gorman, second by Commissioner Ramsey, to accept
the consent agenda as presented, minus item D, H, and L.
ROLL VOTE: Ayes: Johnson, Ramsey, German, Gorman, Emory, and St.Clair
             Nays: None
MOTION PASSES
2022-68      REMOVED FROM CONSENT AGENDA:
  D. Special Event Fee Waiver – Rebel Road             Public Works
SUMMARY OF REQUEST: Child Abuse Council submitted a Special Event Fee
Waiver Application for Rebel Road on July 13-17, 2022.
Rebel Road is returning to Western Avenue for 2022. The estimated fee total for
this event is $28,000.
   •   $25,000 Police Services (There are additional costs in police services that
       the City incurs and are not billed to the event. And example would be the

                                         Page 5 of 8
       staffing on Western Avenue from 11 pm when the event ends until 2:30 am
       when the crowd dissipates.)
   •   $2,300 DPW Services to move picnic tables and close streets
   •   $200 Picnic table rental
   •   $500 Fire hydrant setup and use
Based on the point system on the last page of the fee waiver application, Rebel
Road would qualify for a 25% waiver, equivalent to approximately $7,000 if
approved.
STAFF RECOMMENDATION:             To waive up to $7,000 in special event fees for
Rebel Road 2022.
Motion by Commissioner Ramsey, second by Commissioner St. Clair, to waive
up to 50% of special event fees for Rebel Road 2022.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, Johnson, and Ramsey
             Nays: None
MOTION PASSES
  H. Amendment to the Zoning Ordinance – Critical Dunes               Planning
SUMMARY OF REQUEST: Staff-initiated request to revoke Section 2310 (Critical
Dunes) of the zoning ordinance.
The Planning Commission unanimously recommended in favor of revoking the
ordinance.
STAFF RECOMMENDATION:             To approve the request to revoke Section 2310 of
the zoning ordinance.
Motion by Commissioner St.Clair, second by Vice Mayor German to approve the
request to revoke Section 2310 of the zoning ordinance.
ROLL VOTE: Ayes: Ramsey, German, Gorman, Emory, St.Clair, and Johnson
             Nays: None
MOTION PASSES
SECOND READING REQUIRED
  L.   Polling Location Change – Precinct 13             City Clerk
SUMMARY OF REQUEST: We just recently learned that Bunker School will not be
available for Elections through a minimum of August 2023 due to construction.
Lakeside Baptist Church is willing to accommodate a polling place.
Lakeside Baptist Church, 2250 Denmark, has a large gym in their basement with
an elevator able to accommodate those who are unable to use stairs. We
anticipate a nominal fee for the use for the building but the building more than

                                           Page 6 of 8
meets our needs as a polling location for the foreseeable future while Bunker is
being remodeled.
STAFF RECOMMENDATION:           To approve the request to move the polling
location of Precinct 13 to Lakeside Baptist Church.
Motion by Commissioner Ramsey, second by Commissioner Gorman to approve
the request to move the polling location of Precinct 13 to Lakeside Baptist
Church.
ROLL VOTE: Ayes: Gorman, Emory, St.Clair, Johnson, Ramsey, and German
            Nays: None
MOTION PASSES
2022-69     NEW BUSINESS:
  A. Final PUD Approval at 2801 Lakeshore Drive         Planning
SUMMARY OF REQUEST: Request for Final Planned Unity Development approval
for a housing development at 2801 Lakeshore Drive, by Muskegon Club
Property, LLC.
The preliminary PUD includes the development of up to 39 single-family houses
at the southwest corner of the property and the development of up to 25 rental
cottage units on the northern edge of the property. The Planning Commission
unanimously approved the preliminary PUD.
The applicant is only seeking final PUD approval for the 39 single-family houses
and will apply for final PUD approval for the 25 rental cottage units at a later
time. The Planning Commission unanimously voted in favor of recommending
approval of the Final Planned Unit Development for the 39 single-family homes
and two new private streets with the condition that a sidewalk be added to the
Beach Street side of the development.
STAFF RECOMMENDATION:           To approve the Final Planned Unit Development
for the 39 single-family homes and two new private streets with the condition
that a sidewalk be added to the Beach Street side of the development and an
updated site plan is approved by staff.
Motion by Commissioner St.Clair, second by Commissioner Emory, to approve
the Final Planned Unit Development at 2801 Lakeshore Drive for the 39 single-
family homes and two new private streets with the condition that a sidewalk be
added to the Beach Street side of the development, roads are publicly
accessible, garage door allotment to be up to 60% of the building front façade,
and an updated site plan is approve by staff.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, Ramsey, German, and Gorman
            Nays: None


                                         Page 7 of 8
MOTION PASSES
  B.   Amendment to the PUD at 1148 & 1204 W Western Ave (Adelaide Point)
       Planning
SUMMARY OF REQUEST: Request to amend the final Planned Unit Development
at 1148 & 1204 W Western Avenue (Adelaide Point).
The proposed amended plan includes the addition of a new street (Adelaide
Avenue) and proposes to turn Adelaide Circle into a one-way street with angled
parking. The proposed amended plan also removes building R5 (condominium)
and splits buildings B1 and B3 (east side of development) into two separate
building s instead of one (identified as B2 on original plan). The buildings
between Adelaide Avenue and W. Western Avenue continue to change as the
developer researches storage needs, but this area will remain
warehousing/boat storage.
The Planning Commission unanimously recommended in favor of approving the
amended PUD with the conditions that Adelaide Boulevard is moved to the east
and will be a shared drive with Hartshorn Village (exact location to be
determined) and an updated plan is approved by staff.
STAFF RECOMMENDATION:        To approve the request to amend the final
Planned Unit Development at 1148 & 1204 W. Western Avenue.
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to approve
the request to amend the final Planned Unit Development at 1148 & 1204 W
Western contingent upon the roads being publicly accessible, final configuration
of bike path subject to staff approval, and Adelaide Boulevard being moved to
the east to join Hartshorn Development.
ROLL VOTE: Ayes: Ramsey, German, Gorman, Emory, St.Clair, and Johnson
            Nays: None
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS:                   Public comments received.
ADJOURNMENT: The City Commission meeting adjourned at 6:55 p.m.


                                            Respectfully Submitted,




                                            Ann Marie Meisch, MMC - City Clerk




                                        Page 8 of 8
                     Agenda Item Review Form
                      Muskegon City Commission

Commission Meeting Date: August 9th, 2022             Title: Sanford Street Reconstruction

Submitted By: Leo Evans                               Department: DPW

Brief Summary:
Authorize the award of the Sanford Street contract to the low bidder, Kamminga and Roodvoets,
and authorize the clerk to sign the attached resolution.



Detailed Summary & Background:
Staff solicited bids for sewer replacement, water main replacement and road reconstruction on Sanford
Street from Laketon Avenue north to Apple Avenue.

Bids received are as follows:
   • $4,907,094.50 – Kamminga & Roodvoets
   • $5,946,882.00 – Schippers Excavating

This project is financed through the sale of bonds in partnership with the State of Michigan Clean
Water and Drinking Water Revolving Funds. The State of Michigan programs offer grants and
principal forgiveness for portions of the project.

The project would be constructed during the 2023 construction season.


Goal/Focus Area/Action Item Addressed:
Goal #4 – Financial Infrastructure / Action Items 2022-4.1 & 4.2

Amount Requested:                                    Amount Budgeted:
$4,907,094.50                                        $6,700,000 (TOTAL)
                                                     22/23 - $3,319,500
                                                     23/24 - $3,319,500 (Estimated)

Fund(s) or Account(s): 590/591-92117                 Fund(s) or Account(s): 590/591-92117

Recommended Motion: Approve the award of the Sanford Street project to the low bidder,
Kamminga and Roodvoets, and authorize the Clerk to sign the attached resolution.
Approvals: Get approval from division head at a minimum prior   Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head        Information Technology           Yes
Other Division Heads           Communication                    No

For City Clerk Use Only:
Commission Action:
August 3, 2022
2211000


Mr. Leo Evans, P.E.
City of Muskegon
Department of Public Works
1350 Keating Avenue
Muskegon, MI 49442

RE:      SRF/DWRF FY 2022
         Sanford: Laketon to Apple

Dear Mr. Evans:

On Thursday, August 2nd, the City received two bids for the referenced project. The two bids were
$4,907,094.50 and $5,946,882.00. Kamminga and Roodvoets of Grand Rapids, MI submitted the
lowest bid at $4,907,094.50. A tabulation of the bids is enclosed for reference.
This project is being financed through both the State Revolving Fund (SRF) and the Drinking Water
Revolving Fund (DWRF) with the city funding certain ineligible costs. Due to the overlap of the
various scopes of work, the State has required an Alternative Justifiable Expenditures calculation to
be completed to determine the financing share for each program, this breakdown is as follows:
                     SRF Eligible            $2,922,080.69
                     DWRF Eligible           $1,888,196.90
                     Ineligible Costs           $96,816.91
We discussed the project with Kamminga and Roodvoets. They indicated a good understanding of
the project’s critical elements such as phasing, schedule, and criticality of the infrastructure being
worked on. Work will begin in the early spring of 2023. They did not express any concerns with
completing the project successfully and on time.
Kamminga and Roodvoets has successfully completed projects of similar size and scope with
Prein&Newhof and the City of Muskegon in the past.
If you have any questions, please do not hesitate to ask.

Sincerely,

Prein&Newhof



Matthew R. Hulst, P.E.

Enclosures:          Bid Tabulation Sheets




4910 Stariha Drive      Muskegon, MI 49441   t. 231-798-0101   f. 231-798-0337   www.preinnewhof.com
     3355 Evergreen Dr. NE Grand Rapids, MI 49525
     t. (616) 364-8491 f. (616) 364-6955
                                                                                                                                      Bid Tabulation
Owner:                                                                                 1st                                             2nd
  City of Muskegon
Project Title:                                                                               Kamminga & Roodvoets                              Schippers Excavating
  Wastewater and Water System Improvements, Sanford Street: Laketon to Apple                 3435 Broadmoor Ave SE                            9829 Lake Michigan Dr
Bid Date & Time:                                              Project #:                     Grand Rapids, MI 49512                           West Olive, MI 49460
  August 2, 2022 at 2:00PM                                      2211000


Item No.                          Description                    Quantity      Unit      Unit Price            Total Amount               Unit Price           Total Amount

    1      Mobilization, Max, 10%                                   1.0        Lsum    $490,000.00             $490,000.00             $350,000.00             $350,000.00

    2      Traffic Control                                          1.0        Lsum      $35,000.00             $35,000.00             $160,000.00             $160,000.00

    3      Minor Traf Devices                                       1.0        Lsum      $44,000.00             $44,000.00               $10,000.00              $10,000.00

    4      Tree, Rem, 6 inch to 18 inch                             8.0         Ea           $550.00              $4,400.00                   $600.00              $4,800.00

    5      Tree, Rem, 19 inch to 36 inch                            9.0         Ea        $2,300.00             $20,700.00                 $2,300.00             $20,700.00

    6      Tree, Rem, 37 inch or Greater                            5.0         Ea        $2,700.00             $13,500.00                 $3,400.00             $17,000.00

    7      Dr Structure, Rem                                       91.0         Ea           $300.00            $27,300.00                    $600.00            $54,600.00

    8      Sewer Rem, Less than 24 inch                           7,292.0       Ft               $8.00          $58,336.00                        $7.00          $51,044.00

    9      Sewer Rem, 24 inch to 48 inch                           83.0         Ft             $20.00             $1,660.00                     $14.00             $1,162.00

   10      Sewer, Abandon Less than 20 inch                       1,940.0       Ft               $7.50          $14,550.00                       $6.00           $11,640.00

   11      Sewer, Abandon, 20 inch and Greater                     165.0        Ft             $30.00             $4,950.00                     $17.00             $2,805.00

   12      Sanitary Manhole, Abandon                               12.0         Ea           $500.00              $6,000.00                   $900.00            $10,800.00

   13      Sewer, Bulkhead, 15 inch                                 1.0         Ea           $300.00                 $300.00                  $300.00                 $300.00

   14      Curb and Gutter Rem                                   12,300.0       Ft               $4.00          $49,200.00                        $6.00          $73,800.00

   15      Pavt, Rem                                              2,398.0      Syd             $19.00           $45,562.00                        $9.00          $21,582.00

   16      HMA Surface, Rem                                      24,155.0      Syd               $4.00          $96,620.00                        $3.00          $72,465.00

   17      Sidewalk, Rem                                          7,190.0      Syd               $6.00          $43,140.00                        $6.50          $46,735.00

   18      Sign, Type III, Rem                                     55.0         Ea             $70.00             $3,850.00                     $50.00             $2,750.00

   19      Irrigaton Repair Allowance                            50,000.0      Dlr               $1.00          $50,000.00                        $1.00          $50,000.00

   20      Erosion Control, Inlet Protection, Fabric Drop          89.0         Ea           $125.00            $11,125.00                    $120.00            $10,680.00

   21      Machine Grading, Modified                               58.0        Sta        $1,600.00             $92,800.00                 $4,000.00           $232,000.00

   22      Aggregate Base, 8 inch, Modified                      20,620.0      Syd             $14.50         $298,990.00                       $14.50         $298,990.00


    page 1 of 6                                                                       \\grfileserver\shared\2021\2211000 City of Muskegon\CDS\bid tab 2022-08-02 Sanford St.xlsx
     3355 Evergreen Dr. NE Grand Rapids, MI 49525
     t. (616) 364-8491 f. (616) 364-6955
                                                                                                                                      Bid Tabulation
Owner:                                                                                 1st                                             2nd
  City of Muskegon
Project Title:                                                                               Kamminga & Roodvoets                              Schippers Excavating
  Wastewater and Water System Improvements, Sanford Street: Laketon to Apple                 3435 Broadmoor Ave SE                            9829 Lake Michigan Dr
Bid Date & Time:                                              Project #:                     Grand Rapids, MI 49512                           West Olive, MI 49460
  August 2, 2022 at 2:00PM                                      2211000


Item No.                            Description                  Quantity      Unit      Unit Price            Total Amount               Unit Price           Total Amount

   23      HMA, 4EML                                              2,380.0      Ton           $102.50          $243,950.00                     $108.00          $257,040.00

   24      HMA, 5EML                                              2,380.0      Ton           $109.76          $261,228.80                     $115.00          $273,700.00

   25      Driveway, Nonreinf Conc, 6 inch                        1,700.0      Syd             $45.00           $76,500.00                      $58.00           $98,600.00

   26      Conc Pavt, Nonreinf, 8 inch                             120.0       Syd             $90.00           $10,800.00                    $110.00            $13,200.00

   27      Curb and Gutter, Conc. Det F3                           86.0         Ft             $28.00             $2,408.00                     $30.00             $2,580.00

   28      Curb and Gutter, Conc. Det F4                         11,800.0       Ft             $20.00         $236,000.00                       $19.50         $230,100.00

   29      Driveway Opening, Conc, Det M                           144.0        Ft             $28.00             $4,032.00                     $30.00             $4,320.00

   30      Sidewalk, Conc, 4 inch                                29,000.0      Sft               $4.25         $123,250.00                        $4.80        $139,200.00

   31      Sidewalk, Conc, 6 inch                                10,100.0      Sft               $6.00          $60,600.00                        $5.20          $52,520.00

   32      Curb Ramp, Conc, 4 inch                                1,000.0      Sft               $6.00            $6,000.00                       $9.00            $9,000.00

   33      Curb Ramp, Conc, 6 inch                                5,800.0      Sft               $6.50          $37,700.00                      $10.00           $58,000.00

   34      Curb Ramp Opening, Conc                                 842.0        Ft             $24.00           $20,208.00                      $30.00           $25,260.00

   35      Detectable Warning Surface                              572.0        Ft             $45.00           $25,740.00                      $40.00           $22,880.00

   36      Turf Restoration                                        58.0        Sta           $500.00            $29,000.00                 $2,000.00           $116,000.00

   37      Pavt Mrkg, Polyurea, 4 inch, Yellow                    3,190.0       Ft               $0.99            $3,158.10                       $1.10            $3,509.00

   38      Pavt Mrkg, Polyurea, 4 inch, White                     1,595.0       Ft               $0.99            $1,579.05                       $1.10            $1,754.50

   39      Pavt Mrkg, Polyurea, 18 inch, Stop Bar                  337.0        Ft               $8.95            $3,016.15                     $10.00             $3,370.00

   40      Pavt Mrkg, Polyurea, 6 inch, Cross Walk                1,533.0       Ft               $2.95            $4,522.35                       $3.50            $5,365.50

   41      Pavt Mrkg, Polyurea, 12 inch, Cross Walk                324.0        Ft               $5.95            $1,927.80                       $7.00            $2,268.00

   42      Sign, Type III, Erect, Salv                              5.0        Ea              $50.00                $250.00                    $60.00                $300.00

   43      Sign Type IIIB                                          83.0        Sft             $21.00             $1,743.00                     $22.00             $1,826.00

   44      Post, Steel 3 LB                                        328.0        Ft               $9.50            $3,116.00                     $10.00             $3,280.00


    page 2 of 6                                                                       \\grfileserver\shared\2021\2211000 City of Muskegon\CDS\bid tab 2022-08-02 Sanford St.xlsx
     3355 Evergreen Dr. NE Grand Rapids, MI 49525
     t. (616) 364-8491 f. (616) 364-6955
                                                                                                                                      Bid Tabulation
Owner:                                                                                 1st                                             2nd
  City of Muskegon
Project Title:                                                                               Kamminga & Roodvoets                              Schippers Excavating
  Wastewater and Water System Improvements, Sanford Street: Laketon to Apple                 3435 Broadmoor Ave SE                            9829 Lake Michigan Dr
Bid Date & Time:                                              Project #:                     Grand Rapids, MI 49512                           West Olive, MI 49460
  August 2, 2022 at 2:00PM                                      2211000


Item No.                           Description                   Quantity      Unit      Unit Price            Total Amount               Unit Price           Total Amount

   45      Post Hole Through Conc for Steel Post                    8.0        Ea            $100.00                 $800.00                  $120.00                 $960.00

   46      Sanitary Sewer, 8", Tr Det B                           5,780.0       Ft             $64.00         $369,920.00                       $97.00         $560,660.00

   47      Sanitary Sewer, 12", Tr Det B                           10.0         Ft           $100.00              $1,000.00                   $130.00              $1,300.00

   48      Sanitary Sewer, Plug, 8"                                 1.0        Ea            $250.00                 $250.00                  $250.00                 $250.00

   49      Sanitary Manhole, 48" Dia                               21.0        Ea         $4,200.00             $88,200.00                 $4,650.00             $97,650.00

   50      Sanitary Drop Manhole, 48" Dia                           4.0        Ea         $6,900.00             $27,600.00                 $5,700.00             $22,800.00

   51      Sanitary Sewer, Wye, 8" x 6"                            140.0       Ea            $900.00          $126,000.00                     $350.00            $49,000.00

   52      Sanitary Lateral, 6", Public                           4,800.0       Ft             $42.00         $201,600.00                       $72.00         $345,600.00

   53      Sanitary Lateral, Connect to Ex.                        131.0       Ea            $200.00            $26,200.00                    $400.00            $52,400.00

   54      Sanitary Sewer, Connect to Ex. 6"                        2.0        Ea            $275.00                 $550.00                  $800.00              $1,600.00

   55      Sanitary Sewer, Connect to Ex. 8"                        7.0        Ea            $300.00              $2,100.00                $1,200.00               $8,400.00

   56      Sanitary Sewer, Connect to Ex 12"                        3.0        Ea            $350.00              $1,050.00                $2,000.00               $6,000.00

   57      Sanitary Sewer, Bulkhead, 24 inch                        2.0        Ea            $600.00              $1,200.00                $2,000.00               $4,000.00

   58      Sanitary Sewer, CCTV                                   5,783.0       Ft               $1.75          $10,120.25                        $2.00          $11,566.00

   59      Sewer, Cl E, 8 inch, Tr Det B                           15.0         Ft             $51.00                $765.00                  $120.00              $1,800.00

   60      Sewer, Ductile Iron, 8 inch, Tr Det B                   90.0         Ft             $80.00             $7,200.00                   $130.00            $11,700.00

   61      Sewer, Ductile Iron, 12 inch, Tr Det B                  219.0        Ft           $125.00            $27,375.00                    $160.00            $35,040.00

   62      Sewer, Cl E, 12 inch, Tr Det B                         1,652.0       Ft             $51.00           $84,252.00                      $60.00           $99,120.00

   63      Sewer, Cl E, 15 inch, Tr Det B                         1,438.0       Ft             $58.00           $83,404.00                      $80.00         $115,040.00

   64      Sewer, Cl E, 18 inch, Tr Det B                          50.0         Ft             $75.00             $3,750.00                     $80.00             $4,000.00

   65      Sewer, Cl E, 24 inch, Tr Det B                          45.0         Ft           $100.00              $4,500.00                   $157.00              $7,065.00

   66      Sewer, Cl E, 42 Inch, Tr Det B                          32.0         Ft           $210.00              $6,720.00                   $260.00              $8,320.00


    page 3 of 6                                                                       \\grfileserver\shared\2021\2211000 City of Muskegon\CDS\bid tab 2022-08-02 Sanford St.xlsx
     3355 Evergreen Dr. NE Grand Rapids, MI 49525
     t. (616) 364-8491 f. (616) 364-6955
                                                                                                                                      Bid Tabulation
Owner:                                                                                 1st                                             2nd
  City of Muskegon
Project Title:                                                                               Kamminga & Roodvoets                              Schippers Excavating
  Wastewater and Water System Improvements, Sanford Street: Laketon to Apple                 3435 Broadmoor Ave SE                            9829 Lake Michigan Dr
Bid Date & Time:                                              Project #:                     Grand Rapids, MI 49512                           West Olive, MI 49460
  August 2, 2022 at 2:00PM                                      2211000


Item No.                           Description                   Quantity      Unit      Unit Price            Total Amount               Unit Price           Total Amount

   67      Sewer, Connect to Ex. 8"                                 2.0        Ea            $375.00                 $750.00                  $350.00                 $700.00

   68      Sewer, Connect to Ex. 10"                                2.0        Ea            $400.00                 $800.00                  $400.00                 $800.00

   69      Sewer, Connect to Ex. 12"                                7.0        Ea            $425.00              $2,975.00                   $500.00              $3,500.00

   70      Sewer, Connect to Ex. 15"                                3.0        Ea            $550.00              $1,650.00                   $650.00              $1,950.00

   71      Sewer, Connect to Ex. 18"                                2.0        Ea            $600.00              $1,200.00                   $800.00              $1,600.00

   72      Sewer, Connect to Ex. 24"                                3.0        Ea            $800.00              $2,400.00                $1,100.00               $3,300.00

   73      Sewer, Connect to Ex. 21"                                1.0        Ea            $800.00                 $800.00               $1,100.00               $1,100.00

   74      Sewer, Connect to Ex. 36"                                1.0        Ea         $1,200.00               $1,200.00                $1,500.00               $1,500.00

   75      Sewer, Connect to Ex. 42"                                1.0        Ea         $1,400.00               $1,400.00                $2,400.00               $2,400.00

   76      Dr Structure Tap, 12"                                    2.0        Ea            $400.00                 $800.00                  $500.00              $1,000.00

   77      Dr Structure, 24 inch dia, Mod                          30.0        Ea         $1,300.00             $39,000.00                 $1,400.00             $42,000.00

   78      Dr Structure, 48 inch dia, Mod                          29.0        Ea         $2,400.00             $69,600.00                 $2,600.00             $75,400.00

   79      Dr Structure, 60 inch dia, Mod                           6.0        Ea         $3,500.00             $21,000.00                 $4,000.00             $24,000.00

   80      Dr Structure, 72 inch dia, Mod                           2.0        Ea         $7,200.00             $14,400.00                 $8,000.00             $16,000.00

   81      Dr Structure Cover, Type B, Mod                         21.0        Ea         $1,000.00             $21,000.00                 $1,100.00             $23,100.00

   82      Dr Structure Cover, Type C                               4.0        Ea         $1,000.00               $4,000.00                $1,100.00               $4,400.00

   83      Dr Structure Cover, Type K                              41.0        Ea         $1,050.00             $43,050.00                 $1,100.00             $45,100.00

   84      Accessible Dr Structure Cover                            1.0        Ea         $1,100.00               $1,100.00                $1,200.00               $1,200.00

   85      Dr Structure Cover, Adj, Case 1                          1.0        Ea         $1,000.00               $1,000.00                   $800.00                 $800.00

   86      Water Main, DI, 4" Tr Det G                             30.0         Ft             $85.00             $2,550.00                     $93.00             $2,790.00

   87      Water Main, DI, 6", Tr Det G                            444.0        Ft             $89.00           $39,516.00                      $90.00           $39,960.00

   88      Water Main, DI, 8", Tr Det G                           1,385.0       Ft             $91.00         $126,035.00                     $105.00          $145,425.00


    page 4 of 6                                                                       \\grfileserver\shared\2021\2211000 City of Muskegon\CDS\bid tab 2022-08-02 Sanford St.xlsx
     3355 Evergreen Dr. NE Grand Rapids, MI 49525
     t. (616) 364-8491 f. (616) 364-6955
                                                                                                                                      Bid Tabulation
Owner:                                                                                 1st                                             2nd
  City of Muskegon
Project Title:                                                                               Kamminga & Roodvoets                              Schippers Excavating
  Wastewater and Water System Improvements, Sanford Street: Laketon to Apple                 3435 Broadmoor Ave SE                            9829 Lake Michigan Dr
Bid Date & Time:                                               Project #:                    Grand Rapids, MI 49512                           West Olive, MI 49460
  August 2, 2022 at 2:00PM                                       2211000


Item No.                            Description                   Quantity     Unit      Unit Price            Total Amount               Unit Price           Total Amount

   89      Water Main, DI, 16", Tr Det G                            126.0       Ft           $160.00            $20,160.00                    $180.00            $22,680.00

   90      Water Main, Bend, 45 Degree, 4"                           4.0       Ea            $650.00              $2,600.00                   $300.00              $1,200.00

   91      Water Main, Bend, 45 Degree, 6"                          13.0       Ea            $750.00              $9,750.00                   $400.00              $5,200.00

   92      Water Main, Bend, 45 Degree, 8"                           4.0       Ea            $975.00              $3,900.00                   $550.00              $2,200.00

   93      Water Main, Bend, 90 Degree, 6"                           1.0       Ea            $775.00                 $775.00                  $430.00                 $430.00

   94      Water Main, Reducer, 6" x 4"                              2.0       Ea            $600.00              $1,200.00                   $320.00                 $640.00

   95      Water Main, Reducer, 8" x 6"                              3.0       Ea            $675.00              $2,025.00                   $450.00              $1,350.00

   96      Water Main, Sleeve, 4"                                    2.0       Ea         $1,600.00               $3,200.00                $1,400.00               $2,800.00

   97      Water Main, Sleeve, 6"                                    9.0       Ea         $1,700.00             $15,300.00                 $1,700.00             $15,300.00

   98      Water Main, Sleeve, 16"                                   5.0       Ea         $3,350.00             $16,750.00                 $3,500.00             $17,500.00

   99      Water Main, Tee, 6" x 6" x 6"                             2.0       Ea            $750.00              $1,500.00                   $600.00              $1,200.00

  100      Water Main, Tee, 8" x 8" x 6"                             7.0       Ea            $900.00              $6,300.00                   $700.00              $4,900.00

  101      Water Main, Tee, 8" x 8" x 8"                             1.0       Ea         $1,000.00               $1,000.00                   $750.00                 $750.00

  102      Water Main, Tee, 16" x 16" x 6"                           1.0       Ea         $2,400.00               $2,400.00                $2,500.00               $2,500.00

  103      Water Main, Tee, 16" x 16" x 8"                           1.0       Ea         $2,500.00               $2,500.00                $2,650.00               $2,650.00

  104      Water Main, Tee, 16" x 16" x 16"                          1.0       Ea         $3,400.00               $3,400.00                $3,700.00               $3,700.00

  105      Water Main, Cross, 8" x 8" x 6" x 6"                      1.0       Ea         $1,300.00               $1,300.00                $1,400.00               $1,400.00

  106      Water Main, Tapping Tee and Valve, 16" x 16" x 6"         1.0       Ea         $6,500.00               $6,500.00                $6,300.00               $6,300.00

  107      Water Main, Tapping Tee and Valve, 16" x 16" x 8"         2.0       Ea         $7,500.00             $15,000.00                 $7,900.00             $15,800.00

  108      Water Main, Valve and Box, 6"                            17.0       Ea         $2,100.00             $35,700.00                 $1,800.00             $30,600.00

  109      Water Main, Valve and Box, 8"                             6.0       Ea         $2,700.00             $16,200.00                 $2,400.00             $14,400.00

  110      Water Main, Valve and Box, 16"                            3.0       Ea       $10,650.00              $31,950.00               $11,000.00              $33,000.00


    page 5 of 6                                                                       \\grfileserver\shared\2021\2211000 City of Muskegon\CDS\bid tab 2022-08-02 Sanford St.xlsx
     3355 Evergreen Dr. NE Grand Rapids, MI 49525
     t. (616) 364-8491 f. (616) 364-6955
                                                                                                                                           Bid Tabulation
Owner:                                                                                      1st                                             2nd
  City of Muskegon
Project Title:                                                                                    Kamminga & Roodvoets                              Schippers Excavating
  Wastewater and Water System Improvements, Sanford Street: Laketon to Apple                      3435 Broadmoor Ave SE                            9829 Lake Michigan Dr
Bid Date & Time:                                              Project #:                          Grand Rapids, MI 49512                           West Olive, MI 49460
  August 2, 2022 at 2:00PM                                      2211000


Item No.                          Description                    Quantity         Unit        Unit Price            Total Amount               Unit Price           Total Amount

  111      Water Main, Cut and Cap, 6"                              5.0           Ea           $1,000.00               $5,000.00                $1,000.00               $5,000.00

  112      Water Main, Cap, 8"                                      1.0           Ea              $500.00                 $500.00                  $400.00                 $400.00

  113      Water Main, Valve Box                                   11.0           Ea              $350.00              $3,850.00                   $550.00              $6,050.00

  114      Valve Box, Adjust                                       14.0           Ea              $500.00              $7,000.00                   $300.00              $4,200.00

  115      Hydrant, Rem                                            14.0           Ea              $400.00              $5,600.00                   $600.00              $8,400.00

  116      Hydrant                                                 13.0           Ea           $4,300.00             $55,900.00                 $4,000.00             $52,000.00

  117      Water Main, Rem                                         290.0           Ft               $11.00             $3,190.00                       $9.00            $2,610.00

  118      Water Service, Corporation Stop, 1"                     106.0          Ea              $800.00            $84,800.00                    $450.00            $47,700.00

  119      Water Service, Curb Stop and Box, 1"                    106.0          Ea              $950.00          $100,700.00                     $650.00            $68,900.00

  120      Water Service, 1"                                      6,900.0          Ft               $48.00          $331,200.00                      $50.00         $345,000.00

  121      Water Service, Connect to Existing                      101.0          Ea              $300.00            $30,300.00                 $4,400.00           $444,400.00

  122      Water Service, Meter Pit                                24.0           Ea           $1,500.00             $36,000.00                 $1,000.00             $24,000.00

  123      Water Service Restoration, Private                      83.0           Ea                $50.00             $4,150.00                   $500.00            $41,500.00

                                                                               Total Bid                         $4,907,094.50                                   $5,946,882.00

  * Denotes correction made by Engineer




    page 6 of 6                                                                            \\grfileserver\shared\2021\2211000 City of Muskegon\CDS\bid tab 2022-08-02 Sanford St.xlsx
              A RESOLUTION TO TENTATIVELY AWARD
                   A CONSTRUCTION CONTRACT
        FOR WASTEWATER AND WATER SYSTEM IMPROVEMENTS

WHEREAS, the City of Muskegon wishes to construct improvements to its existing wastewater
treatment and collection system and its existing water treatment and distribution system; and

WHEREAS, the wastewater system improvements project formally adopted on May 25, 2021 will be
funded through Michigan’s State Revolving Loan Fund (SRF) program; and

WHEREAS, the water system improvements project formally adopted on June 22, 2021 will be funded
through the state of Michigan’s Drinking Water Revolving Loan Fund (DWRF) program; and

WHEREAS, the City of Muskegon has sought and received construction bids for the Sanford Street:
Laketon to Apple Project and has received a low bid in the amount of $4,907,094.50 from Kamminga and
Roodvoets of Grand Rapids, MI; and

WHEREAS, the City of Muskegon’s project engineer, Prein&Newhof, has recommended awarding the
contract to the low bidder.

NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the proposed wastewater system and water system improvements project to Kamminga
and Roodvoets of Grand Rapids, MI, contingent upon successful financial arrangements with the SRF and
DWRF Programs.


Yeas:
Nays:
Abstain:
Absent:


I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
August 9th, 2022.



BY:       Ann Meisch, City Clerk


          ______________________________________________________________________________
          Signature                                           Date
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: August 9th, 2022              Title: Lead Service Line Replacements

Submitted By: Leo Evans                                Department: DPW

Brief Summary:
Authorize the award of the Lead Service Line Replacement contract to the low bidder, Gustafson
HDD, and authorize the clerk to sign the attached resolution.



Detailed Summary & Background:
Staff solicited bids for Lead Service Line Replacements on Jarman, Dyson, Elwood, Superior and Ray
Streets from Keating Avenue north to Laketon Avenue for a total of approximately 180 residents.

Bids received are as follows:
   • $1,294,270.00 – Gustafson HDD
   • $1,564,515.00 – McCormick Sand, Inc.
   • $1,623,306.25 – SWT Exc
   • $2,071,677.50 – Wadel Stabilization

This project is financed through the sale of bonds in partnership with the State of Michigan Drinking
Water Revolving Funds. The State of Michigan awarded the City of Muskegon $3M to use towards
Lead Service Line Replacements in their FY22 program which will be 100% forgiven upon loan
closure.

The project would be constructed sometime in the next three years and was not shown on the 22/23
budget until a schedule can be finalized. As noted above the costs will be offset with revenue having
no net impact on the budget when a schedule is finalized.

The remainder of the $3M grant is intended to be used for in house work to replace lead service lines
by city crews.


Goal/Focus Area/Action Item Addressed:
Goal #4 – Financial Infrastructure / Action Items 2022-4.1 & 4.2

Amount Requested:                                    Amount Budgeted:
$1,294,270.00                                        $3,000,000.00

Fund(s) or Account(s): 591-TBD                       Fund(s) or Account(s): 591-TBD
Recommended Motion: Approve the award of the Lead Service Line project to the low bidder,
Gustafson HDD, and authorize the Clerk to sign the attached resolution.



Approvals: Get approval from division head at a minimum prior    Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head        Information Technology            Yes
Other Division Heads           Communication                     No

For City Clerk Use Only:
Commission Action:
August 3, 2022
2220622


Mr. Leo Evans, P.E.
City of Muskegon
Department of Public Works
1350 Keating Avenue
Muskegon, MI 49442

RE:      DWRF FY 2022 DWRF # 7565-01
         Lead Service Line Replacements

Dear Mr. Evans:

On Thursday, August 2nd, the City received four bids for the referenced project. The bids ranged
from $1,294,270.00 to $2,071,677.50. Gustafson HDD of Whitehall, MI submitted the lowest bid at
$1,294,270.00. A tabulation of the bids is enclosed for reference.
This project is being financed completely through the State Drinking Water Revolving Fund
(DWRF) and has 100% principal forgiveness.
We discussed the project with Gustafson HDD. They indicated a good understanding of the project’s
critical elements such as phasing, schedule, and working within private residences. At the earliest
work will not begin until 2023. Exact schedule is unknown at this time and will be firmed up over the
next few months as this project has a large time period to complete the work. They did not express
any concerns with completing the project successfully and on time.
Gustafson HDD has successfully completed projects of similar size and scope with Prein&Newhof
and the City of Muskegon in the past.
If you have any questions, please do not hesitate to ask.

Sincerely,

Prein&Newhof



Matthew R. Hulst, P.E.

Enclosures:          Bid Tabulation Sheets




4910 Stariha Drive     Muskegon, MI 49441    t. 231-798-0101   f. 231-798-0337   www.preinnewhof.com
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
                                                                                                                                                                                                                                      Bid Tabulation

              Owner:                                                                            1st                              2nd                             3rd                                          4th
                 City of Muskegon
              Project Title:                                                                              Gustafson HDD                McCormick Sand, Inc                   SWT Exc                                  Wasel Stabilization
                 Lead Service Line Replacements                                                       2299 Holton Whitehall Rd           5430 Russell Rd                   8936 E K Ave                              2500 N Oceana Drive
              Bid Date & Time:                                        Project #:                        Whitehall, MI 49461            Twin Lake, MI 49457             Galesburg, MI 49053                             Hart, MI 49420
                 August 2, 2022 at 2:00pm                                2220622


              Item No.                          Description              Quantity      Unit      Unit Price       Total Amount    Unit Price      Total Amount    Unit Price         Total Amount               Unit Price           Total Amount

                  1      Mobilization, Max (10%)                            1.0       Lsum       $85,000.00        $85,000.00    $156,400.00      $156,400.00    $100,000.00         $100,000.00              $206,000.00            $206,000.00

                  2      Traffic Control, Max $12,000                       1.0       Lsum        $9,600.00         $9,600.00     $12,000.00       $12,000.00     $12,000.00           $12,000.00               $12,000.00              $12,000.00

                  3      Curb and Gutter, Remove and Replace              1,650.0       Ft              $10.00     $16,500.00           $65.00    $107,250.00           $39.00         $64,350.00                     $50.00            $82,500.00

                  4      Driveway, Remove and Replace                      190.0       Syd              $60.00     $11,400.00           $81.00     $15,390.00           $75.00         $14,250.00                     $95.00            $18,050.00

                  5      Sidewalk, Conc, 4 inch, Remove and Replace      15,750.0      Sft               $2.00     $31,500.00            $7.00    $110,250.00            $8.25       $129,937.50                        $7.00         $110,250.00

                  6      Sidewalk, Conc, 6 inch, Remove and Replace        450.0       Sft              $15.00       $6,750.00          $10.00      $4,500.00            $9.25           $4,162.50                      $9.00            $4,050.00

                  7      Stump Remove                                       1.0         Ea        $3,000.00         $3,000.00          $755.00        $755.00          $600.00              $600.00                 $400.00                 $400.00

                  8      Road Patch, Complete                              165.0        Ea             $800.00    $132,000.00      $1,010.00      $166,650.00          $825.00       $136,125.00                  $1,000.00           $165,000.00

                  9      Restoration                                       180.0       Ea              $120.00     $21,600.00          $500.00     $90,000.00          $375.00         $67,500.00                   $300.00             $54,000.00

                 10      Water Service, Corporation Stop, 1 inch           165.0        Ea             $400.00     $66,000.00          $925.00    $152,625.00      $1,025.00         $169,125.00                    $945.00           $155,925.00

                 11      Water Service, Curb Stop and Box, 1 inch          165.0        Ea             $550.00     $90,750.00          $925.00    $152,625.00          $975.00       $160,875.00                  $1,400.00           $231,000.00

                 12      Water Service, 1 inch, Public Side               5,445.0       Ft              $46.00    $250,470.00           $26.00    $141,570.00           $31.25       $170,156.25                      $64.50          $351,202.50

                 13      Water Service, 1 inch, Private Side             10,800.0       Ft              $38.00    $410,400.00           $19.00    $205,200.00           $25.50       $275,400.00                      $44.50          $480,600.00

                 14      Water Service, Meter Pit                           9.0         Ea        $1,500.00        $13,500.00          $800.00      $7,200.00      $1,725.00           $15,525.00                $1,000.00               $9,000.00

                 15      Connect to Existing                               180.0        Ea             $500.00     $90,000.00      $1,020.00      $183,600.00      $1,350.00         $243,000.00                    $765.00           $137,700.00

                 16      Plumbing Allowance                              35,000.0      Dlr               $1.00     $35,000.00            $1.00     $35,000.00            $1.00         $35,000.00                       $1.00          $35,000.00

                 17      Irrigation Repair Allowance                     10,000.0      Dlr               $1.00     $10,000.00            $1.00     $10,000.00            $1.00         $10,000.00                       $1.00          $10,000.00

                 18      Water Filter                                      180.0        Ea              $60.00     $10,800.00           $75.00     $13,500.00           $85.00         $15,300.00                     $50.00             $9,000.00

                                                                                    Total Bid                    $1,294,270.00                   $1,564,515.00                    $1,623,306.25                                    $2,071,677.50



page 1 of 1                                                                                                                                                                    \\grfileserver\shared\2022\2220622 City of Muskegon\CDS\bid tab 2022-08-02 Lead Service Line.xlsx
                    A RESOLUTION TO TENTATIVELY AWARD
                         A CONSTRUCTION CONTRACT
                      FOR WATER SYSTEM IMPROVEMENTS

WHEREAS, the City of Muskegon wishes to construct improvements to its existing water distribution
system; and

WHEREAS, the water system improvements project formally adopted on June 22, 2021 will be funded
through the state of Michigan’s Drinking Water Revolving Loan Fund (DWRF) program; and

WHEREAS, the City of Muskegon has sought and received construction bids for the Lead Service Line
Replacement Project and has received a low bid in the amount of $1,294,270.00 from Gustafson HDD of
Whitehall, MI; and

WHEREAS, the City of Muskegon’s project engineer, Prein&Newhof, has recommended awarding the
contract to the low bidder.

NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the proposed water system improvements project to Gustafson HDD of Whitehall, MI,
contingent upon successful financial arrangements with the DWRF Programs.


Yeas:
Nays:
Abstain:
Absent:


I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
August 9th, 2022.


BY:       Ann Meisch, City Clerk


          ______________________________________________________________________________
          Signature                                           Date
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: August 9, 2022                   Title: Getty Street Traffic Study

Submitted By: Dan VanderHeide                             Department: Public Works

Brief Summary:
Staff is requesting authorization to sign a Professional Services Agreement for $27,352 with
Progressive AE to provide traffic engineering services for a traffic study of Getty Street.

Detailed Summary & Background:
Conversion of four-lane roads, such as Getty Street, to three-lane roads has been proven to be
safer and to provide better access for non-vehicular users with little or no impact to travel times
when properly studied and executed. Staff feels that Getty Street could be a great candidate for
this treatment, and has worked with Norton Shores and Muskegon Heights to solicit a study to
determine if the project should move forward.
Staff solicited proposals from engineering firms to provide     Firm                          Score
traffic engineering services for data collection, modelling
and recommendations for Getty Street within the City limits     DLZ, Inc.                     780
(Hovey Street to Oak Street), and requested additional          Hubbell, Roth & Clark         780
pricing for a study of Getty Street from Seaway Drive
through the neighboring communities to the same Oak             Fleis & VandenBrink           880
Street northern limit.                                          Fishbeck                      880
A draft agreement with Norton Shores and Muskegon               Progressive AE                900
Heights is included with this request, and has been
submitted to those communities with the offer to partner on     Spalding DeDecker             780
the study, allowing a conversion of the entire corridor.
This request is for only the portion within the City limits (Hovey Street to Oak Street). If Norton
Shores and Muskegon Heights elect to move forward with their portions of the study, a future
request to enter into the agreement will be brought to the Commission. Staff expects the cost of
studying the entire corridor will not be more than this request due to economies of scale.
Staff is requesting to award the engineering services agreement to the highest scoring firm
(Progressive AE). Staff scored the proposals using Qualifications Based Selection criteria to
ensure we were selecting the best partner for this important project. The scoring showed
Progressive AE as the leading firm, and staff recommends contracting with them based on their
proposal and their history of service. Progressive AE has provided engineering services for the
City of Muskegon in the past, and is currently assisting with the Shoreline Drive Pilot project. A
summary score table is shown.

Goal/Focus Area/Action Item Addressed:
Goal 1 (Connection and Transportation Focus Areas) and Goal 2 (Neighborhood Business Focus)

Amount Requested: $27,352                             Amount Budgeted: $50,000
Fund(s) or Account(s): 202 (Major Streets)            Fund(s) or Account(s): 202 (Major Streets)

Recommended Motion:
Authorize staff to sign a Professional Services Agreement for $27,352 with Progressive AE to
provide traffic engineering services for a traffic study of Getty Street from Hovey to Oak streets.

Approvals:                                                             Guest(s) Invited / Presenting:
Immediate Division Head           Information Technology               Yes
Other Division Heads              Communication                        No

For City Clerk Use Only:
Commission Action:
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

The parties to this agreement, Progressive AE, Inc., Grand Rapids, Michigan, USA, hereinafter
called the ENGINEER and City of Muskegon, Muskegon, Michigan, USA, hereinafter called the
OWNER, hereby agree to the following conditions:

1. Limit of Scope: The services provided by the ENGINEER shall be limited to those described in
   the proposal dated March 29, 2022. The parties agree that the terms of the proposal are
   incorporated herein by reference, and are part of this agreement as if fully set forth herein. If
   any terms set forth in the proposal are expressly in conflict with the terms hereof, the terms of
   the proposal shall govern.

2. Changed Conditions: If, during the term of this Agreement, the ENGINEER becomes aware of
   any circumstances or conditions that were not originally contemplated by or known to the
   ENGINEER, then to the extent that they affect the scope of services, compensations, schedule,
   allocation of risks or other material terms of this Agreement, the ENGINEER may call for re-
   negotiation of appropriate portions of the Agreement. The ENGINEER shall notify the OWNER
   of the changed conditions necessitating re-negotiation, and the ENGINEER and the OWNER
   shall promptly and in good faith enter into re-negotiation of this Agreement to address the
   changed conditions. If terms cannot be agreed to, the parties agree that either party has the
   absolute right to terminate this Agreement.

3. Delays: The OWNER agrees that the ENGINEER is not responsible for any damages arising
   directly or indirectly from any delays for causes beyond the ENGINEER’s control. For purposes
   of this Agreement, such causes include, but are not limited to, strikes or other labor disputes;
   severe weather disruptions, epidemics, pandemics or other natural disasters or acts of God;
   fires, riots, war or other emergencies; failure of any government agency to act in a timely
   manner; failure of performance by OWNER or the OWNER’s contractors or consultants; or
   discovery of any hazardous substance or differing site conditions.

     In addition, if the delays resulting from any such causes increase the cost or time required by
     the ENGINEER to perform its services in an orderly and efficient manner, the ENGINEER shall
     be entitled to a reasonable adjustment in schedule and compensation.

4. Additional Services: Additional services not specifically identified in the Scope of Services shall
   be paid for by the OWNER in addition to the fees previously stated, provided the OWNER
   authorizes such additional services in writing. Special services will be billed monthly as work
   progresses and invoices are due upon receipt. If services covered by this agreement have not
   been completed within eight (8) months of the date of this agreement, through no fault of the
   ENGINEER, extension of the ENGINEER’S services beyond that time shall be compensated
   as additional services.

5. Standard of Care: Professional Services provided by the ENGINEER will be conducted in a
   manner consistent with that level of care ordinarily and normally exercised by licensed
   ENGINEERs and engineers practicing in the State where the Project resides. The OWNER
   and ENGINEER agree that a contingency in the amount of three percent (3%) of the cost of
   the work be established, as required, for changes that may be required because of possible
   omissions, ambiguities, or inconsistencies in plans and specifications.

6. Value-Added/Betterment: If, due to the ENGINEER’s error, any required item or component
   of the project is omitted from the ENGINEER’s Construction documents, the ENGINEER shall
   not be responsible for paying the cost to add such item or components to the extent that such
   item or component would have otherwise been necessary to the project tor otherwise adds
   value or betterment to the project. In no event will the ENGINEER be responsible for any cost
   or expenses that provides value, upgrade, or enhancement of the project.




The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

7. Hazardous Materials: The ENGINEER shall have no responsibility for the discovery, presence,
   handling, removal or disposal of, or exposure of persons to, hazardous materials or toxic
   substances in any form at the Project site. The Owner shall furnish tests, inspections and
   reports required by law or the Contract Documents, such as structural, mechanical, and
   chemical tests, tests for air and water pollution, and tests for hazardous materials.

8. Condominium Conversion: If the ENGINEER’s services and Construction Documents are
   intended for the design and construction of residential rental units, they shall be under the
   ownership and control of a single, integrated OWNER. In the event the Project is changed to
   any other purpose or use, including, but not limited to, subdivision into individual units for sale,
   the ENGINEER shall have no responsibility, and shall be released from all obligations and
   liabilities for the Project, and each and every right, license and/or ownership interest of the
   OWNER of the Construction Documents shall be void. The OWNER shall be expressly
   prohibited from making any further use of the Construction Documents for any purpose,
   including, but not limited to, the conversion of the Project to another purpose. Further, the
   OWNER agrees, to the fullest extent permitted by law, to indemnify, immediately defend, and
   hold harmless the ENGINEER, its officers, directors, employees and subconsultants
   (collectively, ENGINEER) against all damages, liabilities or costs, including reasonable
   attorney’s fees and defense costs, arising out of or in any way connected with the services
   performed under this Agreement.

9. Opinions of Probable Construction Cost: In providing opinions of probable construction cost,
   the OWNER understands that the ENGINEER has no control over the cost or availability of
   labor, equipment or materials, or over market conditions or the Contractor's method of pricing,
   and that the ENGINEER’s opinions of probable construction costs are made on the basis of
   the ENGINEER’s professional judgment and experience. The ENGINEER makes no warranty,
   express or implied that the bids or the negotiated cost of the Work will not vary from the
   ENGINEER’s opinion of probable construction cost.

10. Schedule for Rendering Services: The ENGINEER shall prepare and submit for OWNER
    approval a schedule for the performance of the ENGINEER's services. This schedule shall
    include reasonable allowances for review and approval times required by the OWNER,
    performance of services by the OWNER's consultants, and review and approval times required
    by public authorities having jurisdiction over the project. This schedule shall be equitably
    adjusted as the project progresses, allowing for changes in scope, character or size of the
    project requested by the OWNER, or for delays or other causes beyond the ENGINEER's
    reasonable control.

11. Ownership of Reports, Drawings and Other Materials: The OWNER agrees that all reports,
    drawings, letters, worksheets, plans, preliminary material tables, supportive data, documents
    and other materials produced by the ENGINEER in the course of and for the purpose of
    meeting this contract are the property of the ENGINEER, shall remain in the possession of the
    ENGINEER and the ENGINEER has and retains all copyrights in such material. Upon
    execution of this Agreement, the ENGINEER grants to the Owner a nonexclusive license to
    reproduce the ENGINEER’s Instrument of Service solely for the purposes of constructing, using
    and maintaining the Project provided that the Owner shall comply with all obligations including
    the prompt payment of all sums when due, under this Agreement.

12. Alteration and Reuse of CAD Information: Because computer-aided design/drafting (CAD)
    information stored in electronic form can be modified by other parties, intentionally or otherwise,
    without notice or indication of said modifications, the ENGINEER reserves the right to remove
    all indications of its ownership and/or involvement in the material from each electronic medium
    not held in its possession. The OWNER may retain copies of the work performed by the
    ENGINEER in CAD form. Release of electronic media will be by execution of the ENGINEER’s
    Release of Electronic Media Request Form. Copies shall be for information and used by the
    OWNER for the specific purpose for which the ENGINEER was engaged. Said material shall



The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

     not be used by the OWNER, or transferred to any other party, for use in other projects, additions
     to the current project, or any other purpose for which the material was not strictly intended
     without the ENGINEER's express written permission. Any unauthorized modification or reuse
     of the materials shall be at the OWNER's sole risk, and the OWNER agrees to defend,
     indemnify, and hold the ENGINEER harmless, from all claims, injuries, damages, losses,
     expenses, and attorneys’ fees arising out of the unauthorized use or modification of all Project
     documentation.

13. Payment Terms: Invoices will be submitted by the ENGINEER monthly, are due upon
    presentation and shall be considered past due if not paid within thirty (30) calendar days of the
    date of invoice. Invoices past due shall accrue interest at one percent (1%) per month from the
    original invoice date. If past due invoices cause the ENGINEER to proceed with legal action or
    collection services, the OWNER agrees to pay all of the ENGINEER's collection expenses
    including reasonable attorney fees.

14. Disputed Invoices: If the OWNER objects to any portion of an invoice, the OWNER shall so
    notify the ENGINEER in writing within ten (10) calendar days of receipt of the invoice. The
    OWNER shall identify in writing the specific cause of the disagreement and the amount in
    dispute and shall pay that portion of the invoice not in dispute in accordance with other payment
    terms of this Agreement. Any dispute over invoiced amounts due which cannot be resolved
    within ten (10) calendar days after presentation of invoice by direct negotiation between the
    parties shall be resolved within thirty (30) calendar days in accordance with the Dispute
    Resolution provision of this Agreement. Interest at one percent (1%) per month shall be paid
    by the OWNER on all disputed invoice amounts that are subsequently resolved in the
    ENGINEER's favor and shall be calculated on the unpaid balance from the due date of the
    invoice.

15. Abandonment of Work: If any work is abandoned or suspended, the ENGINEER shall be paid
    for services performed prior to receipt of written notice from the OWNER of abandonment or
    suspension.

16. Professional Liability Insurance and Limitation of Liability: The ENGINEER maintains
    professional liability insurance as part of its normal business practice. The OWNER agrees to
    limit the ENGINEER's liability to the OWNER and to all Construction Contractors and
    Subcontractors on the project due to the ENGINEER's negligent acts, errors, or omissions,
    such that the total aggregate liability of the ENGINEER to all those named shall not exceed the
    amount of the ENGINEER’s compensation for the Project.

17. Indemnification: Subject to the limitation in paragraph 16 above, the ENGINEER agrees to the
    fullest extent permitted by law, to indemnify and hold harmless the OWNER against damages,
    liabilities and costs arising from the negligent acts of the ENGINEER in the performance of
    professional services under this Agreement, to the extent that the ENGINEER is responsible
    for such damages, liabilities and costs. The ENGINEER shall not be obligated to indemnify the
    OWNER for the OWNER's own negligence.

18. Consequential Damages: Notwithstanding any other provision of this Agreement, and to the
    fullest extent permitted by law, neither the OWNER nor the ENGINEER, their respective
    officers, directors, partners, employees, contractors or sub-consultants shall be liable to the
    other or shall make any claim for any incidental, indirect or consequential damages arising out
    of or connected in any way to the project or to this Agreement. This mutual waiver of incidental,
    indirect and consequential damages shall include, but is not limited to, loss of use, loss of profit,
    loss of business, loss of income, loss of reputation or any other consequential damages that
    either party may have incurred from any cause of action including negligence, strict liability,
    breach of contract and breach of strict or implied warranty. Both the OWNER and the
    ENGINEER shall require similar waivers of consequential damages protecting all the entities
    or persons named herein in all contracts and subcontracts with others involved in this project.



The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services


19. Dispute Resolution: In an effort to resolve any conflict, the duly authorized representatives of
    each party will meet together in good faith in an attempt to resolve the conflict. If this attempted
    resolution fails to resolve the claim or dispute, the parties agree that all claims, disputes, and
    other matters in question between the parties arising out of or relating to this Agreement or
    breach thereof first shall be submitted for non-binding mediation to any one of the following, as
    agreed to by the parties: American Arbitration Association, American Intermediation Service,
    Americord, Dispute Resolution, Inc., Endispute, or Judicate. The parties hereto agree to fully
    cooperate and participate in good faith to resolve the dispute(s). The cost of mediation shall be
    shared equally by the parties hereto. Any time expended in mediation shall not be included in
    calculating the time for filing arbitration.

     If mediation fails to resolve the claim or dispute, the matter shall be submitted to arbitration with
     the American Arbitration Association under the Construction Industry rules, unless the parties
     agree otherwise or unless a plaintiff not a party hereto institutes litigation in a court of competent
     jurisdiction and said court takes personal jurisdiction over one of the parties hereto regarding
     the same subject matter as in dispute between the parties hereto.

     No arbitration arising out of or relating to this Agreement shall include, by consolidation, joinder,
     or in any other manner, any additional person not a party to this Agreement except by written
     consent of the parties and such consent to arbitration involving an additional person(s) shall
     not constitute consent to arbitration of any dispute not described therein. This Agreement to
     arbitrate and any agreement to arbitrate with an additional person(s) shall be specifically
     enforceable under the prevailing arbitration law.

     The demand for arbitration shall be made within one (1) year of the date the claimant knew or
     should have known of the existence of the claim, dispute, or other matter but in no event later
     than 3 years after the date of substantial completion of the project. If the demand for arbitration
     is not effectuated within such times, the claim, dispute, or other matter shall be forever barred.

     The decision rendered by the arbitrators shall be final, and judgment may be entered upon it in
     accordance with applicable law in any court having jurisdiction thereof. In the event either party
     makes a claim or brings an arbitration action or lawsuit against the other party for any act
     arising out of the performance of the services hereunder, and the claimant fails to prove such
     claim or action, then the claimant shall pay all legal and other costs (including attorneys' fees)
     incurred by the other party in defense of such claim or action.

20. Hiring of Personnel: OWNER may not directly hire any employee of the ENGINEER. OWNER
    agrees that it shall not, directly or indirectly solicit any employee of the ENGINEER from
    accepting employment with OWNER, affiliate companies, or competitors of ENGINEER.

21. Site Signage: The ENGINEER shall be permitted to install on the project premises an exterior
    sign of not more than 60 square feet for promotional purposes. The location of the sign shall
    be mutually agreed upon by OWNER and ENGINEER, not to be unreasonably withheld by
    either.

22. Means and Methods: The ENGINEER shall not have control over, charge of, or responsibility
    for construction means, methods, techniques, sequences or procedures, or for safety
    precautions and programs in connection with the work, nor shall the ENGINEER be responsible
    for the constructor’s failure to perform work in accordance with the contract documents.

23. Evaluation of Work: The ENGINEER shall have authority to reject work that does not conform
    to the contract documents, however, the ENGINEER does not have authority to stop work at
    any time.




The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

24. Buried Utilities: The OWNER will be responsible for furnishing the ENGINEER information
    identifying the type of all underground utilities and verifying their specific locations. The
    ENGINEER (or their subconsultant) will rely on this information and prepare a plan that shows
    the locations intended for connections with respect to assumed locations of underground
    utilities provided by the OWNER. The OWNER will approve of all locations of subsurface
    penetrations prior to them being made. The OWNER agrees to waive all claims and causes of
    action against the ENGINEER for damages to underground improvements. The OWNER
    further agrees to indemnify and hold the ENGINEER harmless from any damage, liability or
    cost, including reasonable attorney’s fees and defense costs for any property damage, injury
    or economic loss arising or allegedly arising from subsurface penetrations.

25. ADA Requirements: The ENGINEER shall make a reasonable professional effort to interpret
    applicable ADA requirements as they apply to this project but cannot warrant or guarantee
    compliance due to the fact it is civil rights legislation and open to many different interpretations.




The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                       COST SHARING AGREEMENT
         THIS AGREEMENT is made this        day of                   , 202___ by and between THE
CITY OF MUSKEGON, a Michigan municipal corporation at 933 Terrace Street, Muskegon, Michigan 49440
(“Muskegon”), THE CITY OF MUSKEGON HEIGHTS, a Michigan municipal corporation at 2724 Peck Street,
Muskegon Heights, Michigan 49444 (“Muskegon Heights”), and THE CITY OF NORTON SHORES, a Michigan
municipal corporation at 4814 Henry Street, Norton Shores, Michigan 49441 (“Norton Shores”)
(collectively, “the Municipalities”).
                                                 RECITALS
A. The Municipalities require Traffic Engineering Services relating to a study of Getty Street from Seaway
   Drive (US-31BR) to Apple Avenue (M-46), various portions of which are under the jurisdiction of each
   of the Municipalities (the “Services”).

B. The Municipalities recognize the administrative and economic benefits of performing a single study
   over the entire corridor.

C. Muskegon employs persons qualified to oversee the Services, and the Municipalities desire to enter
   into an agreement with Muskegon to contract for and oversee the Services on behalf of the
   Municipalities for the Getty Street study.
                                               AGREEMENT
I.   Muskegon will contract for the Services. Muskegon is authorized to act on behalf of the Municipalities
     in regards to contracting, project management, financial oversight, and administration of the Services.

II. This Agreement will commence on the date first stated above, and will continue through study
    finalization. Said Agreement shall be terminable by any party at any time during the term of the
    Agreement upon 30 days' written notice to the other parties. In the event of any termination,
    Muskegon shall be paid up to the effective date of termination for services rendered.

III. Invoices for the Services will be delivered by Muskegon to the Municipalities. The Municipalities agree
     to pay all amounts due within 45 days of the invoice date. The invoices will be allocated to each of the
     Municipalities based upon the Act 51 certified mileage of Getty Street in each of the Municipalities.
     The cost of the study is estimated at
                                             dollars ($                             ), however the total
     amount of the invoices shall be based on the actual cost of the Services. A detailed breakdown of the
     estimate cost of the Services is shown in Table A.



                                                Page 1 of 3
IV. This Agreement shall not be deemed to be a third-party beneficiary contract or a contract for the
    benefit of any party other than the parties hereto. Muskegon shall not be responsible to any party
    other than the Municipalities for any acts, errors, mistakes, or omissions; and Muskegon shall have
    no liability or responsibility to the Municipalities for any acts, errors, mistakes, or omissions of others
    unless stated otherwise in a Request for Proposals (RFP).

V. Muskegon will cause any contractors related to the Services to carry professional liability, automobile,
   general liability, workers compensation and other insurance as may be applicable in amounts
   common to the industry and in accordance with Muskegon’s policies on such matters.

VI. Final documents prepared in connection with the Services will be property of the Municipalities. At
    the conclusion of the project, Muskegon will furnish a reproducible set of documents and related data
    to the Municipalities, including an electronic copy of graphics prepared as a part of the Services.

VII. No waiver by any party of any term or condition of this Agreement shall be deemed or construed as
     a waiver of any other term or condition, nor shall a waiver of any breach be deemed to constitute a
     waiver of any subsequent breach, whether of the same or of a different section of this Agreement.

VIII. This Agreement shall be governed by and interpreted in accordance with the laws of the state of
      Michigan.

IX. The entire agreement between the parties is set forth in this Agreement. This Agreement shall not be
    altered or amended except by written agreement signed by both parties.

                                                       Table A
                                Act 51
                               Certified                                   Contingencies        Total
    Municipality               Mileage      Percentage      Cost Share        (10%)           Cost Share
    Muskegon                    1.519         45.2%          $19,813          $1,981           $21,794
    Muskegon Heights            0.733         21.8%           $9,555           $955            $10,510
    Norton Shores               1.108         33.0%          $14,465          $1,447           $15,912
    Total                       3.360          100%            $43,833         $4,383          $48,216




                               The remainder of this page is left intentionally blank.




                                                 Page 2 of 3
        IN WITNESS WHEREOF, the parties have caused this Agreement to be executed pursuant to the
authority of the respective parties as of the date first stated above.


CITY OF MUSKEGON, a Michigan municipal
corporation,
                                                    CITY OF MUSKEGON HEIGHTS, a Michigan
                                                    municipal corporation,
By:
                 (signature)
                                                    By:
                                                                     (signature)
               (printed name)

                                                                   (printed name)
Its:
                   (title)
                                                    Its:
                                                                        (title)
On:
                   (date)
                                                    On:
                                                                       (date)




CITY OF NORTON SHORES, a Michigan municipal
corporation,


By:
                 (signature)



               (printed name)


Its:
                   (title)


On:
                   (date)




                                           Page 3 of 3
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: August 9, 2022                    Title: Apple Avenue Traffic Study

Submitted By: Dan VanderHeide                              Department: Public Works

Brief Summary:
Staff is requesting authorization to sign a Professional Services Agreement for $43,338 with
Progressive AE to provide traffic engineering services for a traffic study of Apple Avenue.

Detailed Summary & Background:
MDOT has plans to reconstruct Apple Avenue in approximately 2026. MDOT is willing to engage
with the City and other stakeholders to determine what the next version of Apple Avenue will look
like. The study will provide data and recommendations related to vehicle, pedestrian and bicycle
traffic. Specifically, the study will look at reducing the number of lanes in certain sections of the
corridor to improve safety for all modes and improve access for non-vehicular users.
Staff solicited proposals from engineering firms to provide     Firm                           Score
traffic engineering services for data collection, modelling
and recommendations for Apple Avenue within the City            DLZ, Inc.                      760
limits.                                                         Hubbell, Roth & Clark          780
Staff is requesting to award the engineering services          Fleis & VandenBrink             880
agreement to the highest scoring firm (Progressive AE).
Staff scored the proposals using Qualifications Based          Fishbeck                        880
Selection criteria to ensure we were selecting the best        Progressive AE                  900
partner for this important project. The scoring showed
Progressive AE as the leading firm, and staff recommends       Rowe PSC                        880
contracting with them based on their proposal and their        Spalding DeDecker               800
history of service. Progressive AE has provided
engineering services for the City of Muskegon in the past, and is currently assisting with the
Shoreline Drive Pilot project. A summary score table is shown.

Goal/Focus Area/Action Item Addressed:
Goal 1 (Connection and Transportation Focus Areas) and Goal 2 (Neighborhood Business Focus)

Amount Requested: $43,338                             Amount Budgeted: $50,000

Fund(s) or Account(s): 202 (Major Streets)            Fund(s) or Account(s): 202 (Major Streets)

Recommended Motion:
Authorize staff to sign a Professional Services Agreement for $43,338 with Progressive AE to
provide traffic engineering services for a traffic study of Apple Avenue within the City limits.
Approvals:                                          Guest(s) Invited / Presenting:
Immediate Division Head    Information Technology   Yes
Other Division Heads       Communication            No

For City Clerk Use Only:
Commission Action:
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

The parties to this agreement, Progressive AE, Inc., Grand Rapids, Michigan, USA, hereinafter
called the ENGINEER and City of Muskegon, Muskegon, Michigan, USA, hereinafter called the
OWNER, hereby agree to the following conditions:

1. Limit of Scope: The services provided by the ENGINEER shall be limited to those described in
   the proposal dated March 29, 2022. The parties agree that the terms of the proposal are
   incorporated herein by reference, and are part of this agreement as if fully set forth herein. If
   any terms set forth in the proposal are expressly in conflict with the terms hereof, the terms of
   the proposal shall govern.

2. Changed Conditions: If, during the term of this Agreement, the ENGINEER becomes aware of
   any circumstances or conditions that were not originally contemplated by or known to the
   ENGINEER, then to the extent that they affect the scope of services, compensations, schedule,
   allocation of risks or other material terms of this Agreement, the ENGINEER may call for re-
   negotiation of appropriate portions of the Agreement. The ENGINEER shall notify the OWNER
   of the changed conditions necessitating re-negotiation, and the ENGINEER and the OWNER
   shall promptly and in good faith enter into re-negotiation of this Agreement to address the
   changed conditions. If terms cannot be agreed to, the parties agree that either party has the
   absolute right to terminate this Agreement.

3. Delays: The OWNER agrees that the ENGINEER is not responsible for any damages arising
   directly or indirectly from any delays for causes beyond the ENGINEER’s control. For purposes
   of this Agreement, such causes include, but are not limited to, strikes or other labor disputes;
   severe weather disruptions, epidemics, pandemics or other natural disasters or acts of God;
   fires, riots, war or other emergencies; failure of any government agency to act in a timely
   manner; failure of performance by OWNER or the OWNER’s contractors or consultants; or
   discovery of any hazardous substance or differing site conditions.

     In addition, if the delays resulting from any such causes increase the cost or time required by
     the ENGINEER to perform its services in an orderly and efficient manner, the ENGINEER shall
     be entitled to a reasonable adjustment in schedule and compensation.

4. Additional Services: Additional services not specifically identified in the Scope of Services shall
   be paid for by the OWNER in addition to the fees previously stated, provided the OWNER
   authorizes such additional services in writing. Special services will be billed monthly as work
   progresses and invoices are due upon receipt. If services covered by this agreement have not
   been completed within eight (8) months of the date of this agreement, through no fault of the
   ENGINEER, extension of the ENGINEER’S services beyond that time shall be compensated
   as additional services.

5. Standard of Care: Professional Services provided by the ENGINEER will be conducted in a
   manner consistent with that level of care ordinarily and normally exercised by licensed
   ENGINEERs and engineers practicing in the State where the Project resides. The OWNER
   and ENGINEER agree that a contingency in the amount of three percent (3%) of the cost of
   the work be established, as required, for changes that may be required because of possible
   omissions, ambiguities, or inconsistencies in plans and specifications.

6. Value-Added/Betterment: If, due to the ENGINEER’s error, any required item or component
   of the project is omitted from the ENGINEER’s Construction documents, the ENGINEER shall
   not be responsible for paying the cost to add such item or components to the extent that such
   item or component would have otherwise been necessary to the project tor otherwise adds
   value or betterment to the project. In no event will the ENGINEER be responsible for any cost
   or expenses that provides value, upgrade, or enhancement of the project.




The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

7. Hazardous Materials: The ENGINEER shall have no responsibility for the discovery, presence,
   handling, removal or disposal of, or exposure of persons to, hazardous materials or toxic
   substances in any form at the Project site. The Owner shall furnish tests, inspections and
   reports required by law or the Contract Documents, such as structural, mechanical, and
   chemical tests, tests for air and water pollution, and tests for hazardous materials.

8. Condominium Conversion: If the ENGINEER’s services and Construction Documents are
   intended for the design and construction of residential rental units, they shall be under the
   ownership and control of a single, integrated OWNER. In the event the Project is changed to
   any other purpose or use, including, but not limited to, subdivision into individual units for sale,
   the ENGINEER shall have no responsibility, and shall be released from all obligations and
   liabilities for the Project, and each and every right, license and/or ownership interest of the
   OWNER of the Construction Documents shall be void. The OWNER shall be expressly
   prohibited from making any further use of the Construction Documents for any purpose,
   including, but not limited to, the conversion of the Project to another purpose. Further, the
   OWNER agrees, to the fullest extent permitted by law, to indemnify, immediately defend, and
   hold harmless the ENGINEER, its officers, directors, employees and subconsultants
   (collectively, ENGINEER) against all damages, liabilities or costs, including reasonable
   attorney’s fees and defense costs, arising out of or in any way connected with the services
   performed under this Agreement.

9. Opinions of Probable Construction Cost: In providing opinions of probable construction cost,
   the OWNER understands that the ENGINEER has no control over the cost or availability of
   labor, equipment or materials, or over market conditions or the Contractor's method of pricing,
   and that the ENGINEER’s opinions of probable construction costs are made on the basis of
   the ENGINEER’s professional judgment and experience. The ENGINEER makes no warranty,
   express or implied that the bids or the negotiated cost of the Work will not vary from the
   ENGINEER’s opinion of probable construction cost.

10. Schedule for Rendering Services: The ENGINEER shall prepare and submit for OWNER
    approval a schedule for the performance of the ENGINEER's services. This schedule shall
    include reasonable allowances for review and approval times required by the OWNER,
    performance of services by the OWNER's consultants, and review and approval times required
    by public authorities having jurisdiction over the project. This schedule shall be equitably
    adjusted as the project progresses, allowing for changes in scope, character or size of the
    project requested by the OWNER, or for delays or other causes beyond the ENGINEER's
    reasonable control.

11. Ownership of Reports, Drawings and Other Materials: The OWNER agrees that all reports,
    drawings, letters, worksheets, plans, preliminary material tables, supportive data, documents
    and other materials produced by the ENGINEER in the course of and for the purpose of
    meeting this contract are the property of the ENGINEER, shall remain in the possession of the
    ENGINEER and the ENGINEER has and retains all copyrights in such material. Upon
    execution of this Agreement, the ENGINEER grants to the Owner a nonexclusive license to
    reproduce the ENGINEER’s Instrument of Service solely for the purposes of constructing, using
    and maintaining the Project provided that the Owner shall comply with all obligations including
    the prompt payment of all sums when due, under this Agreement.

12. Alteration and Reuse of CAD Information: Because computer-aided design/drafting (CAD)
    information stored in electronic form can be modified by other parties, intentionally or otherwise,
    without notice or indication of said modifications, the ENGINEER reserves the right to remove
    all indications of its ownership and/or involvement in the material from each electronic medium
    not held in its possession. The OWNER may retain copies of the work performed by the
    ENGINEER in CAD form. Release of electronic media will be by execution of the ENGINEER’s
    Release of Electronic Media Request Form. Copies shall be for information and used by the
    OWNER for the specific purpose for which the ENGINEER was engaged. Said material shall



The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

     not be used by the OWNER, or transferred to any other party, for use in other projects, additions
     to the current project, or any other purpose for which the material was not strictly intended
     without the ENGINEER's express written permission. Any unauthorized modification or reuse
     of the materials shall be at the OWNER's sole risk, and the OWNER agrees to defend,
     indemnify, and hold the ENGINEER harmless, from all claims, injuries, damages, losses,
     expenses, and attorneys’ fees arising out of the unauthorized use or modification of all Project
     documentation.

13. Payment Terms: Invoices will be submitted by the ENGINEER monthly, are due upon
    presentation and shall be considered past due if not paid within thirty (30) calendar days of the
    date of invoice. Invoices past due shall accrue interest at one percent (1%) per month from the
    original invoice date. If past due invoices cause the ENGINEER to proceed with legal action or
    collection services, the OWNER agrees to pay all of the ENGINEER's collection expenses
    including reasonable attorney fees.

14. Disputed Invoices: If the OWNER objects to any portion of an invoice, the OWNER shall so
    notify the ENGINEER in writing within ten (10) calendar days of receipt of the invoice. The
    OWNER shall identify in writing the specific cause of the disagreement and the amount in
    dispute and shall pay that portion of the invoice not in dispute in accordance with other payment
    terms of this Agreement. Any dispute over invoiced amounts due which cannot be resolved
    within ten (10) calendar days after presentation of invoice by direct negotiation between the
    parties shall be resolved within thirty (30) calendar days in accordance with the Dispute
    Resolution provision of this Agreement. Interest at one percent (1%) per month shall be paid
    by the OWNER on all disputed invoice amounts that are subsequently resolved in the
    ENGINEER's favor and shall be calculated on the unpaid balance from the due date of the
    invoice.

15. Abandonment of Work: If any work is abandoned or suspended, the ENGINEER shall be paid
    for services performed prior to receipt of written notice from the OWNER of abandonment or
    suspension.

16. Professional Liability Insurance and Limitation of Liability: The ENGINEER maintains
    professional liability insurance as part of its normal business practice. The OWNER agrees to
    limit the ENGINEER's liability to the OWNER and to all Construction Contractors and
    Subcontractors on the project due to the ENGINEER's negligent acts, errors, or omissions,
    such that the total aggregate liability of the ENGINEER to all those named shall not exceed the
    amount of the ENGINEER’s compensation for the Project.

17. Indemnification: Subject to the limitation in paragraph 16 above, the ENGINEER agrees to the
    fullest extent permitted by law, to indemnify and hold harmless the OWNER against damages,
    liabilities and costs arising from the negligent acts of the ENGINEER in the performance of
    professional services under this Agreement, to the extent that the ENGINEER is responsible
    for such damages, liabilities and costs. The ENGINEER shall not be obligated to indemnify the
    OWNER for the OWNER's own negligence.

18. Consequential Damages: Notwithstanding any other provision of this Agreement, and to the
    fullest extent permitted by law, neither the OWNER nor the ENGINEER, their respective
    officers, directors, partners, employees, contractors or sub-consultants shall be liable to the
    other or shall make any claim for any incidental, indirect or consequential damages arising out
    of or connected in any way to the project or to this Agreement. This mutual waiver of incidental,
    indirect and consequential damages shall include, but is not limited to, loss of use, loss of profit,
    loss of business, loss of income, loss of reputation or any other consequential damages that
    either party may have incurred from any cause of action including negligence, strict liability,
    breach of contract and breach of strict or implied warranty. Both the OWNER and the
    ENGINEER shall require similar waivers of consequential damages protecting all the entities
    or persons named herein in all contracts and subcontracts with others involved in this project.



The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services


19. Dispute Resolution: In an effort to resolve any conflict, the duly authorized representatives of
    each party will meet together in good faith in an attempt to resolve the conflict. If this attempted
    resolution fails to resolve the claim or dispute, the parties agree that all claims, disputes, and
    other matters in question between the parties arising out of or relating to this Agreement or
    breach thereof first shall be submitted for non-binding mediation to any one of the following, as
    agreed to by the parties: American Arbitration Association, American Intermediation Service,
    Americord, Dispute Resolution, Inc., Endispute, or Judicate. The parties hereto agree to fully
    cooperate and participate in good faith to resolve the dispute(s). The cost of mediation shall be
    shared equally by the parties hereto. Any time expended in mediation shall not be included in
    calculating the time for filing arbitration.

     If mediation fails to resolve the claim or dispute, the matter shall be submitted to arbitration with
     the American Arbitration Association under the Construction Industry rules, unless the parties
     agree otherwise or unless a plaintiff not a party hereto institutes litigation in a court of competent
     jurisdiction and said court takes personal jurisdiction over one of the parties hereto regarding
     the same subject matter as in dispute between the parties hereto.

     No arbitration arising out of or relating to this Agreement shall include, by consolidation, joinder,
     or in any other manner, any additional person not a party to this Agreement except by written
     consent of the parties and such consent to arbitration involving an additional person(s) shall
     not constitute consent to arbitration of any dispute not described therein. This Agreement to
     arbitrate and any agreement to arbitrate with an additional person(s) shall be specifically
     enforceable under the prevailing arbitration law.

     The demand for arbitration shall be made within one (1) year of the date the claimant knew or
     should have known of the existence of the claim, dispute, or other matter but in no event later
     than 3 years after the date of substantial completion of the project. If the demand for arbitration
     is not effectuated within such times, the claim, dispute, or other matter shall be forever barred.

     The decision rendered by the arbitrators shall be final, and judgment may be entered upon it in
     accordance with applicable law in any court having jurisdiction thereof. In the event either party
     makes a claim or brings an arbitration action or lawsuit against the other party for any act
     arising out of the performance of the services hereunder, and the claimant fails to prove such
     claim or action, then the claimant shall pay all legal and other costs (including attorneys' fees)
     incurred by the other party in defense of such claim or action.

20. Hiring of Personnel: OWNER may not directly hire any employee of the ENGINEER. OWNER
    agrees that it shall not, directly or indirectly solicit any employee of the ENGINEER from
    accepting employment with OWNER, affiliate companies, or competitors of ENGINEER.

21. Site Signage: The ENGINEER shall be permitted to install on the project premises an exterior
    sign of not more than 60 square feet for promotional purposes. The location of the sign shall
    be mutually agreed upon by OWNER and ENGINEER, not to be unreasonably withheld by
    either.

22. Means and Methods: The ENGINEER shall not have control over, charge of, or responsibility
    for construction means, methods, techniques, sequences or procedures, or for safety
    precautions and programs in connection with the work, nor shall the ENGINEER be responsible
    for the constructor’s failure to perform work in accordance with the contract documents.

23. Evaluation of Work: The ENGINEER shall have authority to reject work that does not conform
    to the contract documents, however, the ENGINEER does not have authority to stop work at
    any time.




The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                                                                                  Standard Agreement Provisions
                                                                                            Engineering Services

24. Buried Utilities: The OWNER will be responsible for furnishing the ENGINEER information
    identifying the type of all underground utilities and verifying their specific locations. The
    ENGINEER (or their subconsultant) will rely on this information and prepare a plan that shows
    the locations intended for connections with respect to assumed locations of underground
    utilities provided by the OWNER. The OWNER will approve of all locations of subsurface
    penetrations prior to them being made. The OWNER agrees to waive all claims and causes of
    action against the ENGINEER for damages to underground improvements. The OWNER
    further agrees to indemnify and hold the ENGINEER harmless from any damage, liability or
    cost, including reasonable attorney’s fees and defense costs for any property damage, injury
    or economic loss arising or allegedly arising from subsurface penetrations.

25. ADA Requirements: The ENGINEER shall make a reasonable professional effort to interpret
    applicable ADA requirements as they apply to this project but cannot warrant or guarantee
    compliance due to the fact it is civil rights legislation and open to many different interpretations.




The information in this document is the intellectual property of Progressive AE. It is intended solely for use by the
individual owner. Reproduction of any portion of this document for any purpose is strictly prohibited.
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: August 8/9, 2022                 Title: ARP Infill Housing Working Cash
                                                          Fund Request

Submitted By: Jake Eckholm                                Department: Economic Development

Brief Summary:
Staff is requesting authorization to issue an inter-fund loan from the General Fund (101) to the
Public Improvement Fund (404) of one million dollars ($1,000,000) to ensure working capital on
hand for the ARP Infill Housing Program being implemented by Briggs Builders and West Urban
Properties.

Detailed Summary & Background:
We are working diligently on infilling owner occupied housing in the community through the five
million dollar commitment from the City Commission from American Rescue Plan Act funds. Mr.
Briggs is working with the City to secure additional financing through the Community Foundation in
order to infill 6 total homes in Jackson Hill, and Mr. Dusendang has a working total of 34-36 units
depending on pricing that will primarily be placed in McLaughlin and Nelson. 18 are currently in the
permitted stage at various levels of completion, and therein lies the issue. The structure of the
agreements for both developers indicates that the city make them whole for their half of the
investment in each house 45 days after Certificate of Occupancy is issued, or at time of sale. With
the rate of building that is necessary to keep various subcontractors engaged during this very
difficult labor market, it is likely that we will run into cash on hand issues in the ARP program
wherein all of our money is “tied up in inventory.”


Staff is requesting that the General Fund, which currently has a fund reserve of 9.6 million dollars,
make a temporary interfund loan to the Property Improvement Fund of 1 million dollars, which is
enough to fully implement 4 builds at the contracted prices. This should be enough cushion to keep
our building partners and their contractors working consistently through project implementation.
The structure would require that all city proceeds from sale are booked into the Public
Improvement Fund, and that the full 1 million dollars is returned to the General Fund in a lump sum
transfer at the culmination of both ARP infill housing projects.

Goal/Focus Area/Action Item Addressed:
Goal 1 (Image) Housing Focus Area, Goal 2 (Quality of Life) Housing Focus Area, Action Item 21-8
Expand Housing Options, Goal 3 (Revitalize Revenues) Social Equity Focus Area, Action Item 21-
11 Increase Opportunities for Minorities in Economic Development, and Goal 3 (Revitalize
Revenues) Housing Focus Area, Action Item 21-13 Increase Property Values in Urban Core and
Eastside Neighborhoods

Amount Requested: $1,000,000 (internal loan)         Amount Budgeted: N/A unless expenditures
                                                     occur
Fund(s) or Account(s): (101) to (404)                 Fund(s) or Account(s): N/A

Recommended Motion:
Authorize staff to sign a Professional Services Agreement for $27,352 with Progressive AE to
provide traffic engineering services for a traffic study of Getty Street from Hovey to Oak streets.

Approvals:                                                             Guest(s) Invited / Presenting:
Immediate Division Head           Information Technology               Yes
Other Division Heads              Communication                        No

For City Clerk Use Only:
Commission Action:
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: August 9, 2022                                Title: MERS Amortization
                                                                       Extension

Submitted By: Kenneth D. Grant                                         Department: Finance

Brief Summary: The City of Muskegon and the Municipal Employees’ Retirement System of
Michigan (MERS) will enter into an agreement for an amortization extension. The extension is for
all existing defined benefits plans with MERS.




Detailed Summary & Background:


MERS shall extend Employer's amortization period with respect to its UAL as
followed:
 Division #01 (Non-Union General) & 11 (Clerical): Amortization of UAL to be
extended from 9 to 14 years with required contributions revised effective with the
applicable fiscal year of the annual valuation used for the extension study or the
date this signed agreement is received by MERS, whichever is latest.
 Division #02 (Non-Union Police) & 21 (Police Patrol): Amortization of UAL to be
extended from 8 to 13 years with required contributions revised effective with the
applicable fiscal year of the annual valuation used for the extension study or the
date this signed agreement is received by MERS, whichever is latest.
 Division #10 (General- Retirees) & 20 (Police/Fire-Retirees): Amortization of UAL
to be extended from 6 to 11 years with required contributions revised effective with
the applicable fiscal year of the annual valuation used for the extension study or
the date this signed agreement is received by MERS, whichever is latest.


The amortization extension allows the City to stabilize our annual projected contribution costs.
Without this amortization extensions the City’s annual contribution costs for Defined Benefits will
peak to almost $6 million per year for the years 2024-2028. With the extension the highest amount
we will pay is $4.87 million in 2028 (based on a 7.35% rate of return) from the actuarial report
performed by Gabriel, Roeder, Smith & Company. Effective July 1, 2022 our current rates will be
approximately $5.02 million. With the extension our rate will be $4.3 million effective July 1, 2022.
Goal/Focus Area/Action Item Addressed:
Refer to the 2022-2027 Long Term Goals document.

Amount Requested:                                  Amount Budgeted:
                                                   Contact Finance if your item does not fit into
                                                   the current budget.

Fund(s) or Account(s): MULTIPLE                    Fund(s) or Account(s):

Recommended Motion: Authorize the Finance Director to enter into an agreement with the
Municipal Employees’ Retirement System of Michigan for an Amortization Extension.



Approvals: Get approval from division head at a minimum prior       Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head        Information Technology               Yes
Other Division Heads           Communication                        No
Legal Review

For City Clerk Use Only:
Commission Action:
        Municipal Employees' Retirement System
        of Michigan
        Amortization Extension
        Muskegon, City of (6116)




6305)
July 12, 2022


In care of:
Municipal Employees' Retirement System of Michigan
1134 Municipal Way
Lansing, Michigan 48917

The purpose of this report is to provide information and analysis to MERS with regards to extending the
period over which the Outstanding Unfunded Accrued Liability (UAL) as of July 1, 2022 is amortized, for
participants covered by the MERS Defined Benefit plan sponsored by Muskegon, City of. The City is
requesting that the period for amortizing the UAL be extended. Our analysis was prepared in the context
of the MERS Defined Benefit plan only. Any additional analysis regarding the financial condition of the
employer is outside the scope of this project and it not our area of expertise.

This report should not be relied upon for any other purpose. Reliance on information contained in this
report by anyone for anything other than the intended purpose could be misleading.

The information in this report is purely actuarial in nature. It is not intended to serve as a substitute for
legal, accounting, and investment advice.

This report was prepared at the request of MERS and the municipality and may be provided only in its
entirety by the municipality to other interested parties. Gabriel, Roeder, Smith & Company is not
responsible for the consequences of any unauthorized use.

The results of this analysis and the conclusions drawn, are based on the unique participant data, benefit
provisions, and funded status of Muskegon, City of. Because each MERS municipality is unique in these
respects it is inappropriate to apply the conclusions in this report to another municipality.

This report reflects the impact of COVID-19 experience through December 31, 2020. It does not reflect the
ongoing impact of COVID-19, which is likely to influence demographic and economic experience, at least
in the short-term. We will continue to monitor these developments and their impact on the MERS Defined
Benefit and Hybrid plans. Actual future experience will be reflected in each subsequent annual valuation,
as experience emerges.
Municipal Employees' Retirement System of Michigan
July 12, 2022
Page 3


The Plan Document Article VI Sec. 71 (1)(d), provides the MERS Board with the authority to set actuarial
assumptions and methods after consultation with the actuary. This report was prepared using certain
assumptions approved by the Board. The MERS Board adopted the actuarial assumptions based on the
recommendations of the actuary. A description of these assumptions and methods can be found as
follows:

       ▪   Plan Document, v02252021,
       ▪   Actuarial Policy, DOC 8062 (2020-06-25), and
       ▪   2020 Appendix to the Annual Actuarial Valuation Report.


Background on Funding Policy
Sponsors of Defined Benefit plans in Michigan are required by law to prefund the pension benefits
provided to covered members. Prefunding in the MERS plan is accomplished by requiring an annual
contribution made up of two components:

       ▪   The Normal Cost, covering the cost of the benefits earned by active members during the year;
           and
       ▪   An amortization payment, covering the annual payment necessary to pay off the UAL over a
           period of years.

The UAL is the difference, on the valuation date, between the liability attributable to benefits that have
already been earned (the Accrued Liability) and the assets in the fund. This difference can be positive
(Accrued Liability exceeds the assets), or negative (assets exceed the Accrued Liability).

UAL can develop for a number of reasons, including actual experience being different than assumed,
benefit increases that apply to service already earned, and changes in assumptions (this list is not all-
inclusive). A detailed discussion of the causes of the UAL as of December 31, 2020 for Muskegon, City of,
is beyond the scope of this assignment, and has not been prepared. According to the funding policy, an
Initial UAL was established as of December 31, 2015 and future sources of UAL are isolated into separate
amortization layers.

A funding policy is a mechanism for developing contributions that, when combined with investment
earnings, will accumulate enough assets to pay the benefits promised. Funding policy is set by the MERS
Retirement Board based in part on recommendation by the actuaries. While the ultimate goal of a
funding policy is to develop a contribution pattern sufficient to ensure all promised benefits are paid,
specifics of the policy (including the length of the amortization period) were designed to balance the
Board’s stated goals of contribution adequacy, inter-period equity and transparency, and a desire for
contribution stability.
Municipal Employees' Retirement System of Michigan
July 12, 2022
Page 4


The goal of adequacy is to produce contributions that are expected to be sufficient to pay for benefits
under a broad range of possible future outcomes. Inter-period equity encompasses both the idea that
the cost of the benefits earned by workers should be paid by the generation of taxpayers that received
the services provided by those workers, and the concept that the cost of benefits remains consistent
between generations of taxpayers.

It is also important to remember that retirement plans, by their nature, are exposed to certain risks.
While risks cannot be eliminated entirely, they can be mitigated through various strategies. Below are a
few examples of risk (this is not an all-inclusive list) that retirement plans are exposed to:

          ▪    Economic – investment return, wage inflation, etc.
          ▪    Demographic – longevity, disability, retirement, etc.
          ▪    Plan Sponsor and Employees – contribution volatility, ability to make required contributions,
               etc.

The assumptions and methods adopted by the MERS Retirement Board based on the last Experience
Study, including the funding policy, are designed to set expectations for future experience without
adjusting for risk.

Request for Extension of the Amortization Period
Muskegon, City of has requested that the period for amortizing the Outstanding Unfunded Accrued
Liability as of July 1, 2022 be extended from the current periods, beginning with the 2022 fiscal year
contribution for each of the divisions listed below:

                                                                                                  Outstanding Initial UAL as
                                                                                                   of Fiscal Year Beginning
                                      As of December 31, 2020 Valuation                                   July 1, 2022
                                                              Amortization Policy                   Current Amortization
         Division(s)^     Division Status     Link Status   (If Closed, Not Linked)                     Period (Years) &
              01              Closed          Not Linked        Not Accelerated                                9
              02              Closed          Not Linked        Not Accelerated                                8
              10              Closed          Not Linked        Not Accelerated                                6
              11              Closed          Not Linked        Not Accelerated                                9
              20              Closed          Not Linked        Not Accelerated                                6
              21              Closed          Not Linked        Not Accelerated                                8
& The current period represents the remaining amortization period on the initial UAL layer, or if no initial UAL layer remains, the
remaining period of the oldest gain/loss layer.
^ Per preliminary results and as determined by MERS’ internal actuaries’ initial review, an amortization extension would not be
recommended/allowed for division 50.
Municipal Employees' Retirement System of Michigan
July 12, 2022
Page 5


The MERS Actuarial Policy allows for extensions for divisions after actuarial analysis and approval by the
employer’s governing body and MERS’ CEO. The number of years of approved amortization extension
may be based on case-by-case analysis of certain plan characteristics. The maximum allowable
amortization period under Michigan law is 30 years.

Actuarial standards of practice (ASOPs) provide guidance for actuaries selecting or making
recommendations on contribution allocation procedures that are generally not prescriptive. In other
words, the ASOPs do not spell out specific amortization periods or other policy elements for actuarial
approval. As the actuary to the plan, we look to the MERS Retirement Board for stated goals and
objectives to guide us in our analysis.

Our understanding is that the amortization extension policy as described in Section III. Subsection 3. of the
MERS Actuarial Policy applies to all remaining UAL and allows for flexibility in the length of reset period.
Existing amortization layers are combined into a single layer and amortized over a period of fixed length
declining by 1-year each subsequent valuation. Future layers are established in accordance with the
schedule in Section III. 1, as shown below.


                         Division
                          Status     Link Status       Period          Method
                          Open         Linked            15          Level Percent
                          Open       Not Linked          15          Level Percent
                         Closed        Linked            15          Level Percent
                         Closed      Not Linked          10          Level Percent

Extending the amortization period does not alter the promised benefits, and so does not change the
ultimate cost of providing those benefits. It does lower contribution levels in the short term, by
extending the period of time over which the contributions are required to be made. Therefore,
extending the amortization period is a deferral of contributions to future years.

Extending the amortization period does not improve the funding goal of adequacy, and runs counter to
the goal of intergenerational equity. Lengthening the amortization period means missed opportunities
for investment earnings, puts a greater burden on future taxpayers, and reduces the financial security
for members covered under the plan. The MERS Actuarial Policy as adopted by the Retirement Board
does not provide additional specific guidance on the definitions or relative weighting of the
aforementioned policy objectives.
Municipal Employees' Retirement System of Michigan
July 12, 2022
Page 6

Analysis
We have prepared projections of the Current Funding Policy and the Extension Policy, using the
following:

Current Funding Policy (Baseline)

   ▪   Benefits
          o The same benefits that were used in preparing the December 31, 2020 annual actuarial
              valuation report.
   •   Assets
          o The same assets that were used in preparing the December 31, 2020 annual actuarial
              valuation report.


Extension Policy

   ▪   Benefits
            o The same as those described in the Baseline.
   ▪   Assets
            o The same as those described in the Baseline.
   ▪   Illustrations displaying the following extension on the UAL are shown in the following exhibits.
                                   Extension Policy UAL
                                   Amortization Period           Policy for Future Changes
                  Division(s)             (Years)                      to the Period
                       01                   14               Decrease by one year until paid off
                       02                   13               Decrease by one year until paid off
                       10                   11               Decrease by one year until paid off
                       11                   14               Decrease by one year until paid off
                       20                   11               Decrease by one year until paid off
                       21                   13               Decrease by one year until paid off

   ▪   This extension request was prepared with a valuation date on or after December 31, 2019, and
       as such, existing amortization layers were combined into a single layer and amortized over the
       period described in the table above for the extension scenarios. Future layers were established
       in accordance with the schedule in the MERS Actuarial Policy Section III. 1.
Municipal Employees' Retirement System of Michigan
July 12, 2022
Page 7

Revised Fiscal Year Non Phase-In Invoice Rates, effective July 1, 2022, before and after the extension
illustrations, are as follows:
                             Annual Computed Employer Contribution (No Phase-In)
                                    for the Fiscal Year Beginning July 1, 2022
                      Results shown at a 7.35% Assumed Investment Return Assumption
                                                         Current Funding       Extension Funding
               Division                                       Policy                 Policy
               01 - NonUnion Gen                         $        558,672      $          584,220
               02 - NonUn Police                                    8,712                   6,492
               10 - General Ret                                   579,072                 385,752
               11 - Clerical                                       84,708                  65,328
               20 - PLC/Fire Ret                               1,251,408                  826,044
               21 - PolicePatrol                                  556,956                 451,824
               Total                                     $     3,039,528       $       2,319,660

The projections shown are as follows:

       ▪   Include results under an assumed annual rate of return on the market value of assets of
           7.35%.
       ▪   Include results under a sensitivity scenario assuming an annual rate of return on the market
           value of assets of 6.35%. The additional scenario at 6.35% may be considered a quantitative
           risk assessment.
       ▪   Were prepared under the current and extension funding policies and reflect no phase-in
           contribution amounts only. It is our understanding that following an amortization extension,
           any remaining phase-in contribution amounts will be eliminated.

To determine whether an extension is appropriate, the following statistics for each division requesting an
extension and for the entire plan, may be analyzed and considered:

       ▪   The current and projected funded percentage.
       ▪   Retiree funded percentage. This is the portion of retiree liability that is currently covered by
           plan assets (excluding any active or terminated vested account balances).
       ▪   Ratio of actives to retirees.
       ▪   Average expected remaining service life time of active members.
       ▪   Net cash-flows of the plan and each division as a percent of assets.

The results of our analysis show the following:

       ▪   Extending the amortization period will have an effect on the ultimate time until the UAL is fully
           paid off for the divisions involved in the extension. Under the current policy, the divisions
           being granted an extension are projected to be 100% funded by June 30, 2032. Under the
           extension policy in this report, the divisions being granted an extension are projected to be
           100% funded by June 30, 2036.
Municipal Employees' Retirement System of Michigan
July 12, 2022
Page 8

       ▪      The total number of actives and retirees as of December 31, 2020 is 71 and 332 respectively.
              The ratio of actives to retirees is therefore 0.21. In general, a ratio of actives to retirees below
              1.0 is a sign of a mature plan. A ratio below 0.5 is generally considered a supermature plan.
              More mature plans are generally more sensitive to risks such as investment risks. Reducing
              employer contributions may increase the risk to the plan until the plan is fully funded.
       ▪      The average remaining service lifetime for future actives, for all divisions with active members
              requesting an extension, varies between 0 and 7 years. This length is below current
              amortization periods and would support maintaining or shortening the amortization periods,
              not increasing them.
       ▪      The net cash flows (total contributions less benefit payments and employee refunds) as a
              percent of assets for the year ending December 31, 2020 was (7.3)% for the employer in total.
              Negative net cash flows are an expected outcome of prefunding a pension plan since
              investment return is expected to pay a portion of the benefits. To the extent that the net cash
              flows are more negative than the return on the fund (assumed to be 7.35% per year), the
              division’s assets are expected to decline. Reducing employer contributions makes the net cash
              flows more negative.

The following exhibit shows the analysis of the individual divisions requesting an extension for
consideration:

                                     Market Value                                              Prior Year Net
                      Market Value   Retiree Only      Active to      Average Active Expected Cash Flow (As a
           Division    Funded %       Funded %       Retiree Ratio     Remaining Service Life   % of Assets)
              01         74.6%         112.8%             0.5                    6                  (6.3)%
              02         87.2%          87.2%             0.0                    0                  (9.6)%
              10         58.8%          60.4%             0.0                    0                 (13.9)%
              11         88.0%         122.6%             0.4                    7                  (5.9)%
              20         55.0%          55.8%             0.0                    0                 (13.0)%
              21         87.0%         148.7%             0.7                    6                  (6.2)%



Conclusion
Extending the amortization periods increases the likelihood of triggering a three times minimum
payment.

Ultimately, whether the plan accumulates enough assets to pay the benefits promised will depend,
among other things, upon the plan sponsor’s and the members’ ability to make the contributions. Please
review the projections, analysis, and discussion in this exhibit to determine whether an extension may be
granted and the appropriate length. If the extensions are permitted, the divisions affected are
projected to be 100% funded in by June 30, 2032, 4 years later than currently projected.
Municipal Employees' Retirement System of Michigan
July 12, 2022
Page 9


We believe we have provided the information necessary to determine whether an amortization extension
may be granted. Again, the Actuarial standards of practice provides guidance for actuaries, but do not
spell out specific amortization periods or other policy elements for actuarial approval. As the actuary to
the plan, we have analyzed the divisions requesting an extension based on the stated goals and objectives
of the MERS Retirement Board.

MERS staff and the actuaries will monitor the funding progress of all divisions. While not currently
anticipated, MERS may recommend changes to the amortization policy in the future if it is deemed
necessary for the financial security of the benefits promised under this plan.

Mark Buis and Kurt Dosson are Members of the American Academy of Actuaries (MAAA) and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained
herein.

If you need further information to make an informed decision, please contact MERS at 800.767.6377 for
assistance.

Sincerely,
Gabriel, Roeder, Smith & Company




Mark Buis, FSA, EA, FCA, MAAA



Kurt Dosson, ASA, FCA, MAAA
Municipal Employees' Retirement System of Michigan
       Muskegon, City of (6116) – Division 01

                                                Projected Funded Ratio
                   120%


                   100%


                    80%




  Funded Ratio
                    60%


                    40%


                    20%


                     0%




                                                   Valuation Year Ending December 31,
                     Current Policy - 7.35%   Extension Policy - 7.35%      Current Policy - 6.35%           Extension Policy - 6.35%



                                               Projected $ Contribution
                   $1,400,000


                   $1,200,000


                   $1,000,000
  $ Contribution




                    $800,000


                    $600,000


                    $400,000


                    $200,000


                           $0




                                                                    Fiscal Year Beginning
                     Current Policy - 7.35%   Extension Policy - 7.35%          Current Policy - 6.35%        Extension Policy - 6.35%



                                                                                                         Municipal Employees’ Retirement System of Michigan   10
                                     Municipal Employees' Retirement System of Michigan
                                            Muskegon, City of (6116) – Division 01

                                       Assumed Rate of Investment Return - 7.35%                                         Assumed Rate of Investment Return - 6.35%
  Valuation Year       Actuarial     Current Policy                  Extension Policy                    Actuarial     Current Policy                 Extension Policy
      Ending           Accrued       Level Percent       Funded       Level Percent      Funded           Accrued      Level Percent      Funded       Level Percent     Funded
  December 31,         Liability    Valuation Assets      Ratio     Valuation Assets      Ratio           Liability   Valuation Assets     Ratio     Valuation Assets     Ratio
       2020           $19,800,000       $14,400,000            73%      $14,400,000           73%       $22,000,000       $14,400,000          65%       $14,400,000          65%
       2021            20,100,000        14,700,000            73%        14,700,000          73%        22,300,000        14,500,000          65%        14,500,000          65%
       2022            20,400,000        15,000,000            74%        15,000,000          74%        22,600,000        14,900,000          66%        14,800,000          66%
       2023            20,600,000        15,600,000            76%        15,700,000          76%        22,800,000        15,600,000          69%        15,500,000          68%
       2024            20,800,000        16,300,000            79%        16,200,000          78%        22,900,000        16,500,000          72%        16,100,000          71%
       2025            20,900,000        17,000,000            82%        16,500,000          79%        22,900,000        17,300,000          76%        16,500,000          72%
       2026            20,800,000        17,600,000            85%        16,700,000          80%        22,800,000        18,100,000          79%        16,800,000          73%
       2027            20,700,000        18,300,000            88%        16,800,000          81%        22,700,000        18,900,000          83%        17,000,000          75%
       2028            20,600,000        18,900,000            92%        16,900,000          82%        22,400,000        19,700,000          88%        17,200,000          77%
       2029            20,300,000        19,400,000            96%        17,000,000          84%        22,100,000        20,400,000          92%        17,400,000          79%
       2030            20,000,000        19,900,000            99%        17,100,000          85%        21,800,000        21,100,000          97%        17,500,000          81%


                                                                                        Total Contribution
                                           Fiscal Year
                                           Beginning        Current Policy - Extension Policy - Current Policy - Extension Policy -
                                             July 1,            7.35%             7.35%              6.35%            6.35%
                                              2022              $559,000            $584,000          $837,000          $795,000
                                              2023               556,000             582,000           844,000           801,000
                                              2024               963,000             594,000         1,250,000           818,000
                                              2025               949,000             569,000         1,250,000           798,000
                                              2026               944,000             554,000         1,250,000           788,000
                                              2027               967,000             565,000         1,280,000           802,000
                                              2028               934,000             576,000         1,250,000           817,000
                                              2029               853,000             589,000         1,180,000           834,000
                                              2030               704,000             603,000         1,050,000           853,000
                                              2031                      0            618,000           444,000           873,000
                                              2032                      0            633,000                 0           895,000


Notes:
    1) The amortization schedules shown above assume all actuarial assumptions are met in future years, including actuarial and market rates of return at the
       stated interest rate.
    2) A projection is not a prediction. Future costs will be determined by future valuations and may change based on actual experience.



                                                                                                             Municipal Employees’ Retirement System of Michigan           11
Municipal Employees' Retirement System of Michigan
       Muskegon, City of (6116) – Division 02

                                                 Projected Funded Ratio
                    120%


                    100%


                     80%




   Funded Ratio
                     60%


                     40%


                     20%


                      0%




                                                    Valuation Year Ending December 31,
                      Current Policy - 7.35%   Extension Policy - 7.35%      Current Policy - 6.35%          Extension Policy - 6.35%



                                                Projected $ Contribution
                    $16,000

                    $14,000

                    $12,000

                    $10,000
   $ Contribution




                     $8,000

                     $6,000

                     $4,000

                     $2,000

                           $0




                                                                     Fiscal Year Beginning
                      Current Policy - 7.35%   Extension Policy - 7.35%          Current Policy - 6.35%       Extension Policy - 6.35%



                                                                                                          Municipal Employees’ Retirement System of Michigan   12
                                     Municipal Employees' Retirement System of Michigan
                                            Muskegon, City of (6116) – Division 02

                                       Assumed Rate of Investment Return - 7.35%                                        Assumed Rate of Investment Return - 6.35%
  Valuation Year       Actuarial     Current Policy                  Extension Policy                    Actuarial    Current Policy                 Extension Policy
      Ending           Accrued       Level Percent       Funded       Level Percent      Funded          Accrued      Level Percent      Funded       Level Percent     Funded
  December 31,         Liability    Valuation Assets      Ratio     Valuation Assets      Ratio          Liability   Valuation Assets     Ratio     Valuation Assets     Ratio
       2020              $425,000          $361,000            85%          $361,000          85%         $467,000          $361,000          77%           $361,000         77%
       2021               419,000           357,000            85%           357,000          85%          460,000           353,000          77%            353,000         77%
       2022               413,000           353,000            86%           352,000          85%          452,000           348,000          77%            347,000         77%
       2023               406,000           357,000            88%           354,000          87%          444,000           354,000          80%            349,000         79%
       2024               399,000           360,000            90%           354,000          89%          435,000           358,000          82%            349,000         80%
       2025               391,000           358,000            92%           349,000          89%          426,000           359,000          84%            345,000         81%
       2026               383,000           356,000            93%           344,000          90%          417,000           359,000          86%            341,000         82%
       2027               375,000           354,000            94%           338,000          90%          407,000           360,000          89%            337,000         83%
       2028               366,000           352,000            96%           332,000          91%          396,000           361,000          91%            333,000         84%
       2029               356,000           351,000            98%           327,000          92%          385,000           364,000          94%            329,000         86%
       2030               346,000           348,000          100%            321,000          93%          373,000           365,000          98%            326,000         87%


                                                                                        Total Contribution
                                           Fiscal Year
                                           Beginning        Current Policy - Extension Policy - Current Policy - Extension Policy -
                                             July 1,            7.35%             7.35%              6.35%            6.35%
                                              2022                $8,700              $6,500           $13,700           $10,500
                                              2023                 8,700               6,400            13,800            10,500
                                              2024                 8,900               6,600            14,300            10,800
                                              2025                 8,300               5,900            13,900            10,300
                                              2026                 8,000               5,500            13,800            10,100
                                              2027                 8,200               5,700            14,200            10,400
                                              2028                 8,500               5,900            14,600            10,700
                                              2029                 8,700               6,000            15,100            11,000
                                              2030                 5,700               6,200            12,400            11,400
                                              2031                      0              6,400             8,100            11,700
                                              2032                      0              6,600                 0            12,000


Notes:
    1) The amortization schedules shown above assume all actuarial assumptions are met in future years, including actuarial and market rates of return at the
       stated interest rate.
    2) A projection is not a prediction. Future costs will be determined by future valuations and may change based on actual experience.



                                                                                                             Municipal Employees’ Retirement System of Michigan          13
Municipal Employees' Retirement System of Michigan
       Muskegon, City of (6116) – Division 10

                                                Projected Funded Ratio
                   160%

                   140%

                   120%

                   100%




  Funded Ratio
                    80%

                    60%

                    40%

                    20%

                     0%




                                                   Valuation Year Ending December 31,
                     Current Policy - 7.35%   Extension Policy - 7.35%      Current Policy - 6.35%           Extension Policy - 6.35%



                                               Projected $ Contribution
                   $800,000

                   $700,000

                   $600,000

                   $500,000
  $ Contribution




                   $400,000

                   $300,000

                   $200,000

                   $100,000

                          $0




                                                                    Fiscal Year Beginning
                     Current Policy - 7.35%   Extension Policy - 7.35%          Current Policy - 6.35%        Extension Policy - 6.35%



                                                                                                         Municipal Employees’ Retirement System of Michigan   14
                                     Municipal Employees' Retirement System of Michigan
                                            Muskegon, City of (6116) – Division 10

                                       Assumed Rate of Investment Return - 7.35%                                             Assumed Rate of Investment Return - 6.35%
  Valuation Year       Actuarial     Current Policy                  Extension Policy                        Actuarial     Current Policy                 Extension Policy
      Ending           Accrued       Level Percent       Funded       Level Percent       Funded              Accrued      Level Percent      Funded       Level Percent     Funded
  December 31,         Liability    Valuation Assets      Ratio     Valuation Assets       Ratio              Liability   Valuation Assets     Ratio     Valuation Assets     Ratio
       2020            $8,790,000       $5,030,000             57%        $5,030,000           57%           $9,390,000        $5,030,000          54%        $5,030,000          54%
       2021             8,290,000         4,810,000            58%         4,810,000           58%            8,850,000         4,770,000          54%          4,770,000         54%
       2022             7,810,000         4,670,000            60%         4,570,000           58%            8,330,000         4,600,000          55%          4,500,000         54%
       2023             7,340,000         4,650,000            63%         4,350,000           59%            7,820,000         4,590,000          59%          4,280,000         55%
       2024             6,890,000         4,680,000            68%         4,140,000           60%            7,320,000         4,630,000          63%          4,070,000         56%
       2025             6,440,000         4,710,000            73%         3,910,000           61%            6,840,000         4,670,000          68%          3,860,000         56%
       2026             6,020,000         4,800,000            80%         3,720,000           62%            6,380,000         4,770,000          75%          3,680,000         58%
       2027             5,600,000         4,950,000            88%         3,560,000           64%            5,930,000         4,950,000          83%          3,550,000         60%
       2028             5,200,000         4,950,000            95%         3,460,000           66%            5,500,000         4,970,000          90%          3,470,000         63%
       2029             4,820,000         4,740,000            98%         3,400,000           71%            5,090,000         4,800,000          94%          3,450,000         68%
       2030             4,440,000         4,480,000          101%          3,390,000           76%            4,680,000         4,590,000          98%          3,470,000         74%


                                                                                        Total Contribution
                                          Fiscal Year
                                          Beginning        Current Policy - Extension Policy - Current Policy - Extension Policy -
                                            July 1,            7.35%             7.35%              6.35%            6.35%
                                             2022              $579,000            $386,000          $634,000          $434,000
                                             2023               591,000             392,000           648,000           443,000
                                             2024               609,000             404,000           668,000           456,000
                                             2025               616,000             404,000           677,000           459,000
                                             2026               627,000             409,000           690,000           466,000
                                             2027               645,000             422,000           711,000           480,000
                                             2028               207,000             434,000           287,000           494,000
                                             2029               164,000             447,000           248,000           509,000
                                             2030                87,500             461,000           176,000           524,000
                                             2031                      0            475,000            75,800           540,000
                                             2032                      0            489,000                 0           556,000


Notes:
    1) The amortization schedules shown above assume all actuarial assumptions are met in future years, including actuarial and market rates of return at the
       stated interest rate.
    2) A projection is not a prediction. Future costs will be determined by future valuations and may change based on actual experience.



                                                                                                                Municipal Employees’ Retirement System of Michigan           15
Municipal Employees' Retirement System of Michigan
       Muskegon, City of (6116) – Division 11

                                                 Projected Funded Ratio
                    120%


                    100%


                     80%




   Funded Ratio
                     60%


                     40%


                     20%


                      0%




                                                    Valuation Year Ending December 31,
                      Current Policy - 7.35%   Extension Policy - 7.35%      Current Policy - 6.35%          Extension Policy - 6.35%



                                                Projected $ Contribution
                    $160,000

                    $140,000

                    $120,000

                    $100,000
   $ Contribution




                     $80,000

                     $60,000

                     $40,000

                     $20,000

                           $0




                                                                     Fiscal Year Beginning
                      Current Policy - 7.35%   Extension Policy - 7.35%          Current Policy - 6.35%       Extension Policy - 6.35%



                                                                                                          Municipal Employees’ Retirement System of Michigan   16
                                     Municipal Employees' Retirement System of Michigan
                                            Muskegon, City of (6116) – Division 11

                                      Assumed Rate of Investment Return - 7.35%                                      Assumed Rate of Investment Return - 6.35%
  Valuation Year      Actuarial     Current Policy                  Extension Policy                 Actuarial     Current Policy                 Extension Policy
      Ending          Accrued       Level Percent       Funded       Level Percent     Funded         Accrued      Level Percent      Funded       Level Percent     Funded
  December 31,        Liability    Valuation Assets      Ratio     Valuation Assets     Ratio         Liability   Valuation Assets     Ratio     Valuation Assets     Ratio
       2020           $3,820,000       $3,270,000             86%        $3,270,000         86%      $4,260,000        $3,270,000          77%        $3,270,000          77%
       2021            3,870,000         3,320,000            86%         3,320,000         86%       4,310,000         3,290,000          76%          3,290,000         76%
       2022            3,910,000         3,370,000            86%         3,370,000         86%       4,350,000         3,340,000          77%          3,320,000         76%
       2023            3,950,000         3,510,000            89%         3,480,000         88%       4,390,000         3,500,000          80%          3,450,000         79%
       2024            3,980,000         3,630,000            91%         3,580,000         90%       4,420,000         3,650,000          83%          3,560,000         81%
       2025            4,010,000         3,710,000            92%         3,630,000         90%       4,440,000         3,760,000          85%          3,630,000         82%
       2026            4,040,000         3,790,000            94%         3,680,000         91%       4,460,000         3,870,000          87%          3,690,000         83%
       2027            4,060,000         3,860,000            95%         3,720,000         92%       4,470,000         3,990,000          89%          3,750,000         84%
       2028            4,070,000         3,930,000            96%         3,750,000         92%       4,470,000         4,100,000          92%          3,810,000         85%
       2029            4,050,000         3,960,000            98%         3,750,000         93%       4,440,000         4,180,000          94%          3,830,000         86%
       2030            4,010,000         3,990,000          100%          3,740,000         93%       4,390,000         4,260,000          97%          3,850,000         88%


                                                                                       Total Contribution
                                         Fiscal Year
                                         Beginning         Current Policy - Extension Policy - Current Policy - Extension Policy -
                                           July 1,             7.35%             7.35%              6.35%            6.35%
                                            2022                $84,700             $65,300          $144,000          $111,000
                                            2023                 83,100              63,200           145,000           111,000
                                            2024                 85,000              64,400           149,000           113,000
                                            2025                 78,600              57,400           144,000           108,000
                                            2026                 74,300              52,500           142,000           105,000
                                            2027                 75,400              53,000           145,000           106,000
                                            2028                 76,300              53,200           147,000           107,000
                                            2029                 77,300              53,500           149,000           108,000
                                            2030                 78,600              54,100           152,000           110,000
                                            2031                     72              54,900           110,000           112,000
                                            2032                       0             55,900                 0           114,000


Notes:
    1) The amortization schedules shown above assume all actuarial assumptions are met in future years, including actuarial and market rates of return at the
       stated interest rate.
    2) A projection is not a prediction. Future costs will be determined by future valuations and may change based on actual experience.



                                                                                                            Municipal Employees’ Retirement System of Michigan           17
Municipal Employees' Retirement System of Michigan
       Muskegon, City of (6116) – Division 20

                                                Projected Funded Ratio
                   140%


                   120%


                   100%




  Funded Ratio
                    80%


                    60%


                    40%


                    20%


                     0%




                                                   Valuation Year Ending December 31,
                     Current Policy - 7.35%   Extension Policy - 7.35%      Current Policy - 6.35%           Extension Policy - 6.35%



                                               Projected $ Contribution
                   $1,800,000

                   $1,600,000

                   $1,400,000

                   $1,200,000
  $ Contribution




                   $1,000,000

                    $800,000

                    $600,000

                    $400,000

                    $200,000

                           $0




                                                                    Fiscal Year Beginning
                     Current Policy - 7.35%   Extension Policy - 7.35%          Current Policy - 6.35%        Extension Policy - 6.35%



                                                                                                         Municipal Employees’ Retirement System of Michigan   18
                                      Municipal Employees' Retirement System of Michigan
                                             Muskegon, City of (6116) – Division 20

                                        Assumed Rate of Investment Return - 7.35%                                     Assumed Rate of Investment Return - 6.35%
    Valuation Year      Actuarial     Current Policy                  Extension Policy                Actuarial     Current Policy                 Extension Policy
        Ending          Accrued       Level Percent       Funded       Level Percent     Funded        Accrued      Level Percent      Funded       Level Percent     Funded
    December 31,        Liability    Valuation Assets      Ratio     Valuation Assets     Ratio        Liability   Valuation Assets     Ratio     Valuation Assets     Ratio
         2020          $17,300,000       $9,250,000             53%        $9,250,000         53%    $18,500,000        $9,250,000          50%        $9,250,000          50%
         2021           16,400,000         8,980,000            55%         8,980,000         55%     17,600,000         8,890,000          51%          8,890,000         51%
         2022           15,600,000         8,810,000            57%         8,600,000         55%     16,600,000         8,690,000          52%          8,470,000         51%
         2023           14,700,000         8,930,000            61%         8,250,000         56%     15,700,000         8,830,000          56%          8,130,000         52%
         2024           13,900,000         9,120,000            66%         7,920,000         57%     14,800,000         9,030,000          61%          7,820,000         53%
         2025           13,000,000         9,320,000            71%         7,560,000         58%     13,900,000         9,270,000          67%          7,480,000         54%
         2026           12,200,000         9,630,000            79%         7,260,000         59%     13,000,000         9,620,000          74%          7,220,000         56%
         2027           11,400,000       10,100,000             88%         7,020,000         61%     12,100,000        10,100,000          83%          7,030,000         58%
         2028           10,700,000       10,100,000             95%         6,870,000         65%     11,300,000        10,200,000          90%          6,940,000         61%
         2029            9,900,000         9,710,000            98%         6,830,000         69%     10,500,000         9,870,000          94%          6,960,000         66%
         2030            9,170,000         9,200,000          100%          6,890,000         75%      9,710,000         9,460,000          97%          7,090,000         73%



                                                                                         Total Contribution
                                           Fiscal Year
                                           Beginning          Current Policy - Extension Policy - Current Policy - Extension Policy -
                                             July 1,              7.35%             7.35%              6.35%            6.35%
                                              2022              $1,250,000            $826,000       $1,360,000           $923,000
                                              2023               1,280,000             842,000         1,390,000           943,000
                                              2024               1,320,000             867,000         1,440,000           971,000
                                              2025               1,340,000             872,000         1,460,000           980,000
                                              2026               1,360,000             884,000         1,490,000           997,000
                                              2027               1,400,000             911,000         1,530,000         1,030,000
                                              2028                 408,000             938,000           572,000         1,060,000
                                              2029                 300,000             966,000           472,000         1,090,000
                                              2030                 156,000             995,000           338,000         1,120,000
                                              2031                        0          1,020,000           208,000         1,160,000
                                              2032                        0          1,060,000                 0         1,190,000


Notes:
    1) The amortization schedules shown above assume all actuarial assumptions are met in future years, including actuarial and market rates of return at the
       stated interest rate.
    2) A projection is not a prediction. Future costs will be determined by future valuations and may change based on actual experience.




                                                                                                              Municipal Employees’ Retirement System of Michigan                 19
Municipal Employees' Retirement System of Michigan
       Muskegon, City of (6116) – Division 21

                                                 Projected Funded Ratio
                    120%


                    100%


                     80%




   Funded Ratio
                     60%


                     40%


                     20%


                      0%




                                                    Valuation Year Ending December 31,
                      Current Policy - 7.35%   Extension Policy - 7.35%      Current Policy - 6.35%          Extension Policy - 6.35%



                                                Projected $ Contribution
                    $1,000,000

                     $900,000

                     $800,000

                     $700,000
   $ Contribution




                     $600,000

                     $500,000

                     $400,000

                     $300,000

                     $200,000

                     $100,000

                            $0




                                                                     Fiscal Year Beginning
                      Current Policy - 7.35%   Extension Policy - 7.35%          Current Policy - 6.35%       Extension Policy - 6.35%



                                                                                                          Municipal Employees’ Retirement System of Michigan   20
                                      Municipal Employees' Retirement System of Michigan
                                             Muskegon, City of (6116) – Division 21

                                       Assumed Rate of Investment Return - 7.35%                                        Assumed Rate of Investment Return - 6.35%
  Valuation Year       Actuarial     Current Policy                  Extension Policy                   Actuarial     Current Policy                 Extension Policy
      Ending           Accrued       Level Percent       Funded       Level Percent     Funded           Accrued      Level Percent      Funded       Level Percent     Funded
  December 31,         Liability    Valuation Assets      Ratio     Valuation Assets     Ratio           Liability   Valuation Assets     Ratio     Valuation Assets     Ratio
       2020           $19,900,000       $16,900,000            85%      $16,900,000          85%       $22,500,000       $16,900,000          75%       $16,900,000          75%
       2021            20,600,000        17,600,000            85%        17,600,000         85%        23,100,000        17,400,000          75%        17,400,000          75%
       2022            21,200,000        18,300,000            86%        18,300,000         86%        23,800,000        18,200,000          76%        18,100,000          76%
       2023            21,800,000        19,500,000            89%        19,300,000         88%        24,500,000        19,500,000          80%        19,200,000          79%
       2024            22,400,000        20,500,000            92%        20,200,000         90%        25,000,000        20,700,000          83%        20,200,000          81%
       2025            22,800,000        21,200,000            93%        20,800,000         91%        25,400,000        21,600,000          85%        20,900,000          83%
       2026            23,100,000        21,800,000            94%        21,200,000         92%        25,600,000        22,400,000          88%        21,500,000          84%
       2027            23,300,000        22,300,000            96%        21,600,000         93%        25,800,000        23,200,000          90%        22,000,000          85%
       2028            23,400,000        22,800,000            97%        21,900,000         93%        25,900,000        24,000,000          92%        22,500,000          87%
       2029            23,500,000        23,200,000            99%        22,100,000         94%        25,900,000        24,700,000          95%        22,900,000          88%
       2030            23,500,000        23,600,000          100%         22,300,000         95%        25,900,000        25,300,000          98%        23,300,000          90%


                                                                                         Total Contribution
                                             Fiscal Year
                                             Beginning         Current Policy - Extension Policy - Current Policy - Extension Policy -
                                               July 1,             7.35%             7.35%              6.35%            6.35%
                                                2022               $557,000            $452,000          $920,000          $751,000
                                                2023                542,000             434,000           917,000           743,000
                                                2024                542,000             430,000           925,000           744,000
                                                2025                496,000             381,000           887,000           702,000
                                                2026                465,000             346,000           865,000           674,000
                                                2027                465,000             344,000           873,000           676,000
                                                2028                467,000             342,000           882,000           680,000
                                                2029                470,000             341,000           893,000           685,000
                                                2030                328,000             339,000           765,000           689,000
                                                2031                  5,800             338,000           530,000           695,000
                                                2032                 26,000             339,000             5,600           703,000


Notes:
    1) The amortization schedules shown above assume all actuarial assumptions are met in future years, including actuarial and market rates of return at the
       stated interest rate.
    2) A projection is not a prediction. Future costs will be determined by future valuations and may change based on actual experience.




                                                                                                                Municipal Employees’ Retirement System of Michigan            21
Municipal Employees' Retirement System of Michigan
    Aggregate (01, 02, 10, 11, 12, 20, 21, 22, 50)

                                                    Projected Funded Ratio
                      120%


                      100%


                       80%




       Funded Ratio
                       60%


                       40%


                       20%


                        0%




                                                       Valuation Year Ending December 31,
                        Current Policy - 7.35%   Extension Policy - 7.35%      Current Policy - 6.35%         Extension Policy - 6.35%



                                                  Projected $ Contribution
                      $9,000,000

                      $8,000,000

                      $7,000,000

                      $6,000,000
   $ Contribution




                      $5,000,000

                      $4,000,000

                      $3,000,000

                      $2,000,000

                      $1,000,000

                              $0




                                                                       Fiscal Year Beginning
                      Current Policy - 7.35%     Extension Policy - 7.35%         Current Policy - 6.35%        Extension Policy - 6.35%




                                                                                                           Municipal Employees’ Retirement System of Michigan    22
                                                                                                                                      Muskegon, City of (6116)
                                     Municipal Employees' Retirement System of Michigan
                                         Aggregate (01, 02, 10, 11, 12, 20, 21, 22, 50)

                                       Assumed Rate of Investment Return - 7.35%                                      Assumed Rate of Investment Return - 6.35%
  Valuation Year       Actuarial     Current Policy                  Extension Policy                 Actuarial     Current Policy                 Extension Policy
      Ending           Accrued       Level Percent       Funded       Level Percent     Funded         Accrued      Level Percent      Funded       Level Percent     Funded
  December 31,         Liability    Valuation Assets      Ratio     Valuation Assets     Ratio         Liability   Valuation Assets     Ratio     Valuation Assets     Ratio
       2020          $128,900,000       $90,400,000            70%      $90,400,000          70%    $142,800,000       $90,400,000          63%       $90,400,000          63%
       2021           129,300,000        91,700,000            71%        91,700,000         71%     143,100,000        90,900,000          64%        90,900,000          64%
       2022           129,500,000        93,500,000            72%        93,100,000         72%     143,200,000        92,500,000          65%        92,100,000          64%
       2023           129,600,000        97,400,000            75%        96,200,000         74%     143,000,000        97,200,000          68%        95,800,000          67%
       2024           129,400,000       101,300,000            78%        99,100,000         77%     142,500,000       102,000,000          72%        99,400,000          70%
       2025           128,900,000       104,700,000            81%      101,000,000          78%     141,700,000       106,300,000          75%       102,100,000          72%
       2026           128,000,000       107,900,000            84%      102,800,000          80%     140,600,000       110,600,000          79%       104,700,000          74%
       2027           127,000,000       111,300,000            88%      104,500,000          82%     139,200,000       115,100,000          83%       107,300,000          77%
       2028           125,600,000       114,000,000            91%      106,200,000          85%     137,500,000       119,100,000          87%       110,100,000          80%
       2029           123,900,000       115,900,000            94%      107,900,000          87%     135,400,000       122,300,000          90%       112,900,000          83%
       2030           122,000,000       117,000,000            96%      109,300,000          90%     133,100,000       124,900,000          94%       115,500,000          87%

                                                                                        Total Contribution
                                                Fiscal Year
                                                Beginning         Current Policy - Extension Current Policy - Extension
                                                  July 1,             7.35%       Policy - 7.35%   6.35%     Policy - 6.35%
                                                   2022             $5,020,000      $4,300,000   $6,740,000    $5,850,000
                                                   2023              5,040,000       4,300,000    6,820,000     5,910,000
                                                   2024              6,020,000       4,860,000    7,840,000     6,510,000
                                                   2025              5,930,000       4,740,000    7,810,000     6,430,000
                                                   2026              5,910,000       4,680,000    7,840,000     6,430,000
                                                   2027              5,960,000       4,700,000    7,930,000     6,480,000
                                                   2028              4,620,000       4,870,000    6,670,000     6,680,000
                                                   2029              4,250,000       4,780,000    6,360,000     6,640,000
                                                   2030              3,000,000       4,100,000    5,210,000     6,030,000
                                                   2031                954,000       3,460,000    3,450,000     5,470,000
                                                   2032                350,000       2,900,000      350,000     3,820,000
Notes:
    1) The amortization schedules shown above assume all actuarial assumptions are met in future years, including actuarial and market rates of return at the
       stated interest rate.
    2) A projection is not a prediction. Future costs will be determined by future valuations and may change based on actual experience.




                                                                                                             Municipal Employees’ Retirement System of Michigan         23
                                                                                                                                        Muskegon, City of (6116)
                                     Important Comments
1. The actuarial value of assets used to determine both the funded ratio and the required employer
   contribution is based on a smoothed value of assets. Only a portion of each year’s investment market
   gain or loss is recognized in the current actuarial value of assets; the remaining portions of gains and
   losses will be reflected in future years’ actuarial value of assets. This reduces the asset volatility
   impact on the determined required employer contribution and funded ratio. The smoothed actuarial
   rate of return for 2020 was 8.17%.

   As of December 31, 2020, the actuarial value of assets is 97% of market value due to asset smoothing.
   This means that the rate of return on the actuarial value of assets should exceed the actuarial
   assumption in the next few years provided that the annual market returns equal the 7.35%
   investment return assumption. When all assumptions are met, contribution rates are expected to stay
   approximately level as a percent of payroll (dollar amounts are expected to increase with wage
   inflation of 3.0% each year).

2. Unless otherwise indicated, a funded status measurement is based upon the actuarial accrued liability
   and the actuarial value of assets. The measurement is:

     a. Inappropriate for assessing the sufficiency of plan assets to cover the estimated cost of
        settling the plan’s benefit obligations.
     b. Inappropriate for assessing benefit security for the membership.
     c. Dependent upon the actuarial cost method which, in combination with the amortization policy
        and asset valuation method, affects the timing and amounts of future contributions. The
        amounts of future contributions will differ from those assumed due to future actual
        experience differing from assumed.

   A funded status measurement of 100% is not synonymous with no required future contributions. If
   the funded status were 100%, the Plan would still require future normal cost contributions (i.e., the
   cost of the active membership accruing an additional year of service credit).

3. The results do not show the potential impact on other post-employment benefits (such as retiree
   health care insurance) or ancillary benefits (such as life insurance).

4. The results of separate actuarial valuations generally cannot be added together to produce a correct
   estimate of the employer contributions. The total can be considerably greater than the sum of the
   parts due to the interaction of various plan provisions and assumptions used.

5. Future actuarial measurements may differ significantly from the current measurements presented in
   this report due to such factors as the following: plan experience differing from that anticipated by the
   economic or demographic assumptions; changes in economic or demographic assumptions due to
   changing conditions; increases or decreases expected as part of the natural operation of the
   methodology used for these measurements (such as the end of an amortization period, or additional
   cost or contribution requirements based on the Plan’s funded status); and changes in plan provisions
   or applicable law. The scope of this supplemental actuarial valuation does not include an analysis of
   the potential range of such future measurements.




                                                     Municipal Employees’ Retirement System of Michigan    24
                                                                                Muskegon, City of (6116)
                            Important Comments (Concluded)
6. Valuation results are developed through the use of multiple models.

   Valuation liabilities were prepared using ProVal’s valuation model, a software product of Winklevoss
   Technologies. We are relying on the ProVal model. We performed tests of the ProVal model with this
   assignment and made a reasonable attempt to understand the developer’s intended purpose of,
   general operation of, major sensitivities and dependencies within, and key strengths and limitations
   of the ProVal model. In our professional judgment, the ProVal valuation model has the capability to
   provide results that are consistent with the purposes of the valuation and has no material limitations
   or known weaknesses.

   Financial results were prepared using our financing and projection model which in our professional
   judgment has the capability to provide results that are consistent with the purposes of the valuation
   and has no material limitations or known weaknesses. We performed tests to ensure that the model
   reasonably represents that which is intended to be modeled.

7. The calculations are based upon assumptions regarding future events, which may or may not
   materialize and proposed plan provisions. The actual impact of the proposed plan change(s) will
   change over time as actual experience emerges. Contact your MERS representative at 800.767.MERS
   if you believe that:

           a.   The assumptions are unreasonable,
           b.   The plan provisions are missing or incorrectly described,
           c.   Conditions have changed since the calculations were made,
           d.   The information provided in this report is inaccurate or is in any way incomplete, or
           e.   You need further information to make an informed decision.

8. Unless otherwise noted, the following information, assumptions, and funding methods were used in
   the projections under the various options:

           a. Demographic, financial information, and benefit provisions provided by MERS for the
              December 31, 2020 valuation.
           b. The assumptions and methods used in the December 31, 2020 annual valuation.
           c. All demographic assumptions will be met during the projection period.
           d. If new hires are included in the valuation, the active population is assumed to remain
              stable during the projection period.
           e. Demographic assumptions under the DC plan are unchanged from those of the DB plan, if
              applicable.
           f. The Market Value of Assets will earn the assumed investment return each year during the
              projection period.
           g. There will be no benefit changes during the projection period.
           h. The employer contributions through June 30, 2022 are not affected, and are based on
              previous annual actuarial valuations.




                                                     Municipal Employees’ Retirement System of Michigan    25
                                                                                Muskegon, City of (6116)
                                   Amortization Extension Agreement


    This Amortization Extension Agreement ("Agreement") is entered into between the Municipal
    Employees' Retirement System of Michigan ("MERS") and the City of Muskegon ("Employer ")
    (together, "Parties") to memorialize the agreement and representations of the parties concerning
    an extension of the period of Employer's amortization schedule.

    Accordingly, the Parties agree as follows:

       1. UAL Defined: This extension study was prepared on 07/12/2022 and was based on the
          Employer’s most recent Annual Actuarial Valuation dated 12/31/2020. As used in this
          Agreement, the term UAL shall mean the sum of all sources of Unfunded Accrued
          Liability outstanding as of the Employer’s most recent Annual Valuation, adjusted if
          deemed appropriate for any gains on liability that may occur as a result of benefit
          changes or lump sum contributions to the plan.

       2. Purpose: In the exercise of its opportunity to do so as provided by MERS, Employer
          has requested that MERS grant it an extension of the period in which its UAL is amortized
          to assist with the employer's need to address significant financial stress . This extension
          shall not apply to future gain/loss or other sources of UAL, which will continue to follow
          the standard amortization policy adopted by the Board.

       3. MERS' Analysis: In response to Employer's request and in accordance with MERS'
          procedures , MERS has discussed its conclusions with Employer, and Employer is in
          agreement with MERS' conclusions (report attached).

       4. Representations and Understandings of Employer:

            a. The information Employer provided to MERS in the course of and for purposes of
               MERS' analysis was complete and accurate to the best of Employer's ability.
            b. Notwithstanding anything herein to the contrary, the Employer understands that MERS
               reserves the right to change the amortization policy in the future, including that
               included in this Agreement, if it is deemed necessary for the financial security of the
               benefits provided by the Employer.
           c. Employer understands that MERS has advised that compliance with the existing
               amortization schedule is preferred, and that extending amortization as requested is
               not in full conformity with MERS' goals of earliest full funding and intergenerational
               equity.
           d. Employer has made and will continue to make payment of its retirement costs,
               including UAL toward full funding, a priority in its annual and long-term budgeting and
               planning processes.
           e. Employer understands that extending the amortization period for its current UAL has
               the effect of deferring current costs to the future, with the result that in the later years
               of the amortization, the Employer's UAL will be higher and the Employer's total required
               contributions will be higher than they would otherwise have been.
           f. Employer understands, with respect to its request and otherwise, that future required
               contributions depend on the actual investment and demographic experience, and not
               on the assumptions used to develop the projected contributions considered in this
               Agreement.

       5. Conclusion and Decision of MERS: Based on the foregoing analysis and
          representations of Employer, MERS approves Employer's request with the following terms
          and conditions , with which Employer agrees :
                                                      1
            a. MERS shall extend Employer's amortization period with respect to its UAL as
               followed:
                  Division #01 (Non-Union General) & 11 (Clerical): Amortization of UAL to be
                   extended from 9 to 14 years with required contributions revised effective with the
                   applicable fiscal year of the annual valuation used for the extension study or the
                   date this signed agreement is received by MERS, whichever is latest.
                Division #02 (Non-Union Police) & 21 (Police Patrol): Amortization of UAL to be
                  extended from 8 to 13 years with required contributions revised effective with the
                  applicable fiscal year of the annual valuation used for the extension study or the
                  date this signed agreement is received by MERS, whichever is latest.
                  Division #10 (General- Retirees) & 20 (Police/Fire-Retirees): Amortization of UAL
                   to be extended from 6 to 11 years with required contributions revised effective with
                   the applicable fiscal year of the annual valuation used for the extension study or
                   the date this signed agreement is received by MERS, whichever is latest.


           b. The extension stated above is based on the provisions in effect in the specified
              division(s) as of the 12/31/2020 Annual Actuarial Valuation.
           c. The Employer understands that if changes are made to the provisions used in the
              projection analysis, MERS may require that an updated analysis be prepared to
              ensure the continued sustainability of the plan as described in Section 4(b) of this
              Agreement.
           d. This Agreement has been authorized by formal action of Employer's governing
              body.
           e. Representatives of MERS presented and explained the actuarial analysis that
              forms the basis of this Agreement and the full impact of Employer's request to
              Employer on (insert date), and responded to all of Employer's questions to
              Employer's satisfaction.

Adopted by the Employer’s governing body and MERS on this             day of                   , 20

FOR EMPLOYER




Signature

Printed name

Title



    (check one):

         Authorized designee of the governing body of the Employer

         Chief Judge of the Court

Date:

                                                    2
FOR MERS



Signature

Printed name

Title

Date:




               3
                      Agenda Item Review Form
                       Muskegon City Commission

Commission Meeting Date: 8/9/2022                                     Title: MI-HOPE Leverage
                                                                      Funds

Submitted By: Sharonda Carson                                         Department: CNS

Brief Summary: CNS is requesting $150,000 in ARP funds to use as leverage for the Michigan
Housing Opportunities Promoting Energy-Efficiency (MI-HOPE) Program through MSHDA that the
department is applying for.

Detailed Summary & Background:
The MI-HOPE Program is intended to provide energy-efficiency activities that benefit area
residents. It is funded through the US Department of Treasury American Rescue Plan (ARP)
Coronavirus State and Local Fiscal Recovery Funds. The city will be applying for $1,000,000 in
funding through this opportunity to be used for energy-efficiency repairs for homeowners in
Muskegon County, in an effort to improve our areas housing stock and ensure healthier and safer
homes for our neighbors. The $150,000 match will help support the administration of the grant and
provide for an estimated additional 6 major repairs to the citizens of Muskegon County. This match
aligns with the requirements and available uses of the ARP funds.
Due to the highly competitive nature of this grant, allocating match funds tangibly demonstrates the
city’s commitment to improving the living conditions and reducing the energy expense of citizens.
Although not required, providing match funds is viewed favorably, and can be a deciding factor in
the approval of the application and grant award.
This grant will supplement the programming the City of Muskegon already offers through its CNS
Department. In the past year alone, CNS has served over 110 households with health and safety
related and energy-efficiency repairs. We are on track to exceed this number in the coming year.
With the addition of our new Healthy Homes Program, this grant, if awarded will allow us to
maximize the assistance we can provide to our neighbors.
With the 2022-27 City Commission Vision goals of increasing grant assistance to neighborhoods to
reduce blight, and improve environmental sustainability for projects within the city, this allocation
closely aligns. Approval of this match and will allow staff to implement programs necessary to
accomplish these goals, and support healthier and more energy-efficient housing for our
community.

Goal/Focus Area/Action Item Addressed:
Goal 1/2022 – 1.5 Increase grant assistance to neighborhoods to reduce blight
Goal 4/2022 – 4.5 Improve environmental sustainability for projects within the city



Amount Requested: $150,000                           Amount Budgeted: N/A
Fund(s) or Account(s): ARP Allocation              Fund(s) or Account(s): N/A

Recommended Motion: to approve resolution supporting the allocation of $150,000 in ARP funds
as leverage for the MI-HOPE Grant, if awarded.



Approvals: Get approval from division head at a minimum prior     Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head        Information Technology             Yes
Other Division Heads           Communication                      No
Legal Review

For City Clerk Use Only:
Commission Action:
Michigan Housing Opportunity Promoting Energy-Efficiency
                 (MI-HOPE) Term Sheet
                                                Date: June 27, 2022



 Program            The MI-HOPE Program will utilize United States Department of the Treasury American Rescue
 Overview           Plan (ARP) Coronavirus State and Local Fiscal Recovery Funds (SLFRF) as a grant mechanism
                    within the MSHDA Neighborhood Housing Initiatives Division (NHID).

                    All applicable Treasury ARP rules and regulations will be strictly enforced.

                    To provide financial assistance to eligible non-profit 501(c) agencies and government
 MI-HOPE            entities via a multi-year subrecipient agreement awarded for $100,000 up to
 Program Goal       $1 Million per agency. Subrecipients will then distribute the funds within their local area(s) for
                    energy focused residential housing repairs and upgrades within both rural and urban
                    areas. The total MI-HOPE assistance amount per home/unit may not e x c e e d
                    $25,000 per assisted occupied home or individual assisted unit. In order to qualify for the
                    MI-HOPE program, all assisted multi-family properties cannot consist of more than three units.
                    In conjunction with home/unit repairs the funding also allows for a portion of the award, up
                    to twenty-five (25%), to be utilized for energy- oriented emergency repairs and/or up to five
                    percent (5%) to be utilized for administrative funding.

                 MI-HOPE energy-efficiency improvement activities are defined as actions undertaken to
                 incentivize energy efficiency and health improvements that promote health or safety for
                 single-family and multi-family residential properties. The intent is to have both an individual
                 short-term benefit and immediate impact on the household itself and to also facilitate a
                 long-term community benefit by improving existing housing stock resulting in increased area
                 home values.
 Size of MI-HOPE Michigan State Housing Development Authority (the Authority) will utilize up to $28,500,000
 Program          (total award $50,000,000 less $15,000,000 to the City of Detroit and less $5,000,000 to
                  the nonprofit THAW, less $1,500,000 which is 5% for MSHDA administrative costs) of its
                  total allocation for this program through multiple statewide competitive funding rounds.

 Targeted           Funding will be made available to Subrecipient Agencies to administer the MI-HOPE Program at
 Population of      the local level and to directly provide energy-efficiency assistance to eligible households having
 Homeowners         incomes equal to or less than 300% of the federal poverty level as outlined in United States
 and Financial      Department of the Treasury Guidance. Program funds will be made available to assist all
 Challenges         eligible homeowners based on Subrecipient program guidelines that are approved by MSHDA.
 Program Seeks to
 Address

                                                         1
“Eligible Owners” “Eligible Owners” must meet the following criteria:
for the MI-HOPE
program             •    Owner and/or tenant (if applicable) must have experienced and attest to a Qualified
                         Financial Hardship on or after March 3, 2021. The attestation must describe the nature
                         of the financial hardship. (Refer to Exhibit D for attestation language.)
                     •   Homeowner must currently own and occupy the property as their primary residence.
                     •   Homeowner and/or Tenant households must meet the MI-HOPE Income Eligibility
                         Requirements.
                     •   Homeowners must provide verification of occupancy of the home for a minimum of
                         twelve months prior to March 1, 2021 or for non-owner occupied units the landlord
                         must provide proof of ownership for twelve months and provide a six-month
                         occupancy history.
                     •   All properties must be current in their taxes or be current in a repayment plan.
                     •   All properties must be insured or provide written verification of insurability post-rehab.
                     •   Rental properties must be occupied by tenants with a written lease stating that rent
                         rates will not be increased post-rehab for a minimum of twelve months.

  MI-HOPE           Maximum Subrecipient Allocation is within a funding range of $100,000 - $1 Million.
  Parameters         Awards will be made at MSHDA’s discretion primarily determined based on regional
                     distribution, community need, entity type/capacity, and submission information.
                     Agencies should only request the amount of funding they can obligate and expend within
                     the deadlines identified.

                    Minimum Subrecipient Allocation = $100,000
                     Note: Multiple activities and/or areas can be combined to reach this minimum threshold.
                     Proposals may include more than one area served by an agency; however, each area must
                     realize a significant impact. Agency funding prioritization of areas must be provided if
                     more than one is proposed. MSHDA reserves the right to select portions of proposals for
                     funding based on availability and overall impact.

                    Maximum Household Assistance = $25,000 per owner occupied home or non-owner
                     occupied unit.




                                                        2
 Eligible           “Eligible Subrecipients” include only the following:
 Subrecipient
 Structures                 Type 1: Nonprofit Organization 501(c): A nonprofit organization that is currently
                            servicing the proposed community/neighborhood within the State of Michigan. The
 Note: If you are           applicant’s name and address must be the same as the 501(c) Letter from the IRS
 not one of the             and on file with the Michigan Department of Licensing and Regulatory Affairs. The
 agency types               applicant must have at least one full-time paid employee; cannot be operating the
 listed or cannot           agency via their principal residence and must have an operating budget exceeding
 provide the                $30,000 per year, not including MSHDA funded projects.
 applicable
 required                   The 501(c) must upload agency contact information on letterhead AND attach
 verification               IRS issued 501(c) Letter. (This agency type includes Community Action Agencies)
 documentation
 you are not                Type 2: Government Entity
 eligible to
 submit for this
 program.                   Type 3: Lead Agency Designation (This must be either a Nonprofit 501c
                            A g e n c y or Government Entity as defined above) **The Lead
                            Agency would have the ability to pass the funds through to other local
                            entities defined as Type 1 or 2 above and they would be primarily
                            responsible for all entities awarded and provide formal funding compliance
                            and oversight. A written memorandum of understanding between all
                            entities outlining roles and responsibilities will be required. (This could
                            be a housing trade organization that is a nonprofit 501c agency. As part
                            of the submission the agency will need to identify its membership agencies that
                            anticipate partnering with them. Partnering agencies will be prohibited from
                            receiving MI-HOPE funds directly during the first funding round.)

                    Note: This funding will not be made available within the City of Detroit boundaries as
                    energy- efficiency funding was allocated to this area directly. In addition, Type 3 Applicants
                    with membership organizations that include City of Detroit members can only utilize MI-
                    HOPE funding for entities servicing area(s) outside of the City of Detroit.

                    This funding is being made available to all eligible entities outside of the City of Detroit.




Note: Award determinations will be based on an agency demonstrating experience with homeowner and/or rental
rehabilitation. Previous housing capacity/experience preferred.




                                                       3
Presumed             A “Qualified Financial Hardship” is a material reduction in income or material increase in
Benefit -            living expenses associated with the coronavirus pandemic and Exhibit D self attestation will
Qualified            be required.
Financial           • This program is designed to provide emergency assistance for pressing and unavoidable
Hardship                home repair needs as well as address energy insecurity resulting from improper
                        insulation, outdated heating, cooling, and ventilation systems, and outdated and/or
                        malfunctioning electrical service and appliances. This benefit will be measured by
                        assessing a particular property’s needs and how those needs were addressed by the
                        improvements.

                    • All proposed activities are restricted to income qualified areas and/or household income
                      eligibility and meet the Treasury ARP criteria for presumed benefit requirements.


                    Income-targeting requirement will be used to assist homeowners having household incomes
                    equal to or less than 300% of the Poverty Federal Guidelines (PFG) as defined by the
                    Department of Health and Human Services. Refer to the Department of United States
                    Department of the Treasury’s guidance spreadsheet on household income thresholds: SLFRF-
Household           LMI-tool.xlsx (live.com) to identify specific Michigan County Income Limits.
Income
Restrictions        Each applicant is encouraged to identify their service boundaries while being mindful of the
                    community zip code data (Exhibit C).

                    For all assisted properties, there are three action steps required:
                       1) self-attestation of household income including all adult occupant earning members
                       over the age of 18 that are not in school as a student;
                       2) household submission of formal income verification documentation including year to
                       date pay stubs, if pay stubs are not available the household will need to provide the
                       previous year's W-2 forms or if self-employed last year's 1040 form; and
                       3) subrecipient review and approval.

Subrecipient         Subrecipients will have individual written program guidelines to meet their service area
Prioritization       needs. They will establish the following:
                               • Activity Dollar Limits per Property
                               • Types of Properties Assisted
                               • Selection of Service Area
                               • Household Applicant Intake and Selection Process
                               • Select Households based on preference/priority based on need, eligibility, or
                                   other factors outlined in the guidelines
                               • Select/Define Activities/Scope of Work
                               • Leveraging Use/Requirements
                               • Contractor Selection Process and Criteria - must be licensed and insured

Note: Subrecipients are not allowed to use a security instrument on assisted properties/units.




                                                       4
Eligible     Eligible Properties are those that are:
Properties      • Single-family owner-occupied with an income qualified household
                • Single-family non owner-occupied with an income qualified household
                • Multi-family (attached or detached - up to 3 units) owner-occupied with an income qualified household
                • Multi-family (attached or detached - up to 3 units) non owner-occupied with an income qualified
                     household
                •    Detached Site Condominium units
                •    Modular/Manufactured homes permanently affixed to real property and taxed as real estate


             Eligible Occupied Property Criteria: A single-family property which is zoned residential
             that: a) has no unaddressed mortgage and/or tax delinquencies; b) is not subject to a
             foreclosure or forfeiture proceedings, court-ordered receivership, or nuisance
             abatement; c) has utilities services turned on and operable or in situations where
             utilities are shut off but operable once safety issues are addressed – with MSHDA
             pre-approval prior to contract execution.; d) is permanently occupied by homeowners
             that identify the assisted address as their primary residence; and e) is affixed to a
             permanent foundation.

             Eligible Rental/Land Contract Occupied Property Criteria: Rental/Land Contract
             single-family properties that a) the landlord has no unaddressed mortgage
             and/or tax delinquencies within the community; b) the landlord has no
             unaddressed/outstanding code compliance issues within the community; c) a
             signed contract is in place which identifies the current occupants and the monthly
             occupancy provisions; d) is not subject to a foreclosure or forfeiture proceedings,
             court-ordered      receivership   or    nuisance abatement; e) has utilities services
             turned on and operable or in situations where utilities are shut off but operable once
             safety issues are addressed – with MSHDA pre-approval prior to contract execution.; e)
             is affixed to a permanent foundation; f) occupant household is income-
             eligible;    and      g)     all   parties    must    sign   a   written participation
             consent form.

Eligible      All MI-HOPE program financed activities are specific and necessary health and
Qualified     safety improvements to an existing structure occupied with a qualified financial hardship
MI-HOPE       based on presumed benefit.        Activities undertaken must be selected based on
Activities    inspection, code compliance         documented       needs, energy     assessment/audit
              recommendation, local building official report, etc.

              MI-HOPE assisted activities are limited to:
                 •   Roof
                 •   Storm Doors/Exterior Doors
                 •   Windows
                 •   Insulation
                 •   Modification for modernization/efficiency purposes or replacement of heating
                     (furnaces or boilers)/cooling (full home only)/ventilation systems and water heater
                     upgrades including on demand retrofitting
                 •   Functioning and up to date exterior security lighting
                 •   Appliance upgrades to energy star rating ex: stove, refrigerator
                 •   Electrical upgrades or replacement - wiring of home (partial or full)




                                                       5
Subrecipient      UP TO $10,000,000 IN THE INITIAL COMPETITIVE FUNDING ROUND IS ANTICIPATED TO
Award Activity    BE ALLOCATED AS FOLLOWS:
Structure
                  TYPE 1: Up to $9,500,000 (95%) Housing Energy-Efficiency Activities
                  A minimum of 75% to be utilized for non-emergency repair
                  A maximum of 25% to be utilized for emergency repair
                    • No specific sites/addresses need to be pre-identified but must be fully under contract
                       no later than September 30, 2024.
                    • Specific sites are selected post subrecipient award via a formal local written application
                       process that is held within the past 90 days - no carryover wait lists from previous non-
                       MI-HOPE programs/applications allowed unless identified within the program
                       guidelines. Note: Activities are restricted to households that meet the program's
                       eligibility criteria.
                    • All activities undertaken must enable that assisted MI-HOPE funding component to be
                       brought up to Housing Quality Standards (HQS) and/or local code based on whichever
                       one is stricter when applicable.
                    •
                  TYPE 2: $500,000 (5%) Subrecipient Program Administration
                           Agencies may opt out of utilizing MI-HOPE funding for administration but are
                           not allowed to amend their budget post grant award to add it in as a
                           funding component.

                           Note: Documented and itemized administrative tracking is required via a required
                           tracking report form.
                  In addition to administrative costs that are program specific subrecipients will be able to get
                  reimbursed for activity delivery costs to cover project specific soft costs on a per property
                  billing basis.

                  Assistance is limited to one award per agency. Each agency’s subrecipient request total dollar
                  amount is limited to a minimum of $100,000 up to $1 Million.

                  Multiple agencies can be awarded funds within an area, but each agency will be limited to
                  defined service area boundaries – an area may be served by multiple agencies but for program
                  purposes overlapping/duplicative service areas will not be approved to ensure statewide
                  distribution of the funding.

Grant Structure   The Subrecipient award will be structured as a performance-based grant.

                  Property assistance will be structured as a non-recourse grant.




                                                     6
Payout of          The Authority will disburse MI-HOPE assistance directly to subrecipient agencies.
MI-HOPE            The Authority will make disbursements on a reimbursement basis only. Reimbursement for
Assistance and     purposes of the program is defined as the issuance of a paper check via a MSHDA grant
Payment Process    management system when work has been completed, an agency is invoiced for the work
Description        performed, and both agency and owner sign-off has been secured. A hold back of up to 10%
                   of the property setup amount may be held and not reimbursed until all paperwork
                   regarding final completion and reporting of activity outcomes is provided.
Community/Area A minimum of thirty percent (30%) of the funds will be set-aside to assist households within
Eligibility:   rural communities/areas. Of that thirty percent, five (5%) will be set-aside to assist households
               located within the Upper Peninsula.

                   Refer to the MI-HOPE Eligibility map (Exhibit B) for defined rural and urban areas.




Program Launch     The Authority is planning to launch the initial competitive funding round for subrecipient
                   submissions statewide Summer 2022, after MSHDA approval, stakeholder engagement, and
                   public engagement/comment process is complete.

                   The terms hereof are subject to change based on the foregoing.
Program            The period of performance for the MI-HOPE award begins on the effective date of the
Duration           written agreement, requires subrecipient obligation at the property level (street address
                   contract fully executed) prior to September 30, 2024, and full disbursement of funds no
                   later than September 30, 2026. MI-HOPE recipients shall not incur any obligations to be
                   paid with the funding from this award after such period of performance ends.

                   The Authority plans to disburse all funds prior to the end of the written agreement date of
                   December 1, 2026.
Program            The Authority will undertake its best effort approach to encourage subrecipients to leverage
Leverage           additional complementary assistance that is made available for homeowners through other
with Other         local, state, and/or federal programs.
Financial
Resources          We do not require leverage to come directly from the homeowner.

                   Note: If the applicant chooses to identify leverage within the proposed budget, in order to
                   receive evaluation preference, all leverage identified must be committed/secured.

                   Applicants are encouraged to partner and leverage funding.




                                                        7
Subrecipient     Step 1: Click on the following LINK and complete Part 1 and answer the initial intake
Submission Steps questions. Once Part 1 is submitted you will receive access to Part 2 via e- mail.

                 Step 2: Complete Part 2 by uploading the 9 required attachments:
                 1: Agency Type Documentation
                 2: Community Need
                 3: Project Description
                 4: Proposed Household Selection, Intake, & Distribution Strategy
                 5: Project Budget
                 6: Applicant Support Letter signed by an authorized official on behalf of the agency
                 7: Letter(s) of Support from Stakeholders/Partners and Committed Leverage Funds
                 8: a) Overview Map of Area Boundaries and b) Photos of Target Area Housing Stock
                 9. Sam.gov Screenshot

                 Step 3: Complete and Submit the Agency Partnership Profile (Video Link) Instruction
                 Guide




                                                   8
                                 CITY OF MUSKEGON, MICHIGAN

                            A RESOLUTION FOR SUPPORT OF
          $150,000 OF ARP FUNDS AS LEVERAGE FOR MI-HOPE GRANT PROGRAM

WHEREAS, the Michigan State Housing Development Authority is accepting applications for grants for
the Michigan Housing Opportunity Promoting Energy-Efficiency (MI-HOPE) Program;

NOW, THEREFORE BE IT RESOLVED, that the City of Muskegon Commission hereby authorizes an
application for the MI-HOPE grant for the provision of home repairs for citizens of Muskegon County,
wherein the City of Muskegon will commit to provide local match of $150,000 in American Rescue Plan
funds; and

BE IT FURTHER RESOLVED, that the City of Muskegon Commission hereby authorizes the Director
of Community and Neighborhood Services or their designee to prepare and submit the application for the
MI-HOPE Program and to be designated as the authorized agent for all activities associated with securing
and accepting any funding.

Yeas:

Nays:

I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on
August 9, 2022.


BY:     Ann Meisch, City Clerk



        ______________________________________________________________________________
        Signature                                           Date
                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: August 9, 2022                                  Title: Water Supply System
                                                                         Bonds Series A & B

Submitted By: Kenneth D. Grant                                           Department: Finance

Brief Summary: Ordinance Authorizing the issuance of Water Supply System Junior Lien Revenue Bonds
Series A & B.

Detailed Summary & Background:
To authorize the issuance of Water Sewer Supply System Bonds, Series A in an amount not to exceed
$5,320,000.
To authorize the issuance of Water Sewer Supply System Bonds, Series A in an amount not to exceed
$3,560,000.
The Bonds are expected to be sold to the Michigan Finance Authority and payable in 20 annual principal
installments at an interest rate of 1.875%. Scheduled closing is September 20th.
Estimated Principal Forgiveness is $3,000,000.

Goal/Focus Area/Action Item Addressed:
Refer to the 2022-2027 Long Term Goals document.

Amount Requested:                                       Amount Budgeted:



Fund(s) or Account(s): Water                            Fund(s) or Account(s):

Recommended Motion: To approve the Ordinance authorizing the issuance of Sanitary Sewer Supply
System Revenue Bonds.



Approvals: Get approval from division head at a minimum prior            Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head           Information Technology                 Yes
Other Division Heads              Communication                          No
Legal Review

For City Clerk Use Only:
Commission Action:
                                  ORDINANCE NO. _____
                                  CITY OF MUSKEGON


       AN ORDINANCE TO PROVIDE FOR THE ACQUISITION, CONSTRUCTION,
       INSTALLATION, FURNISHING AND EQUIPPING OF ADDITIONS AND
       IMPROVEMENTS TO THE WATER SUPPLY SYSTEM OF THE CITY; TO
       PROVIDE FOR THE ISSUANCE AND SALE OF JUNIOR LIEN REVENUE
       BONDS TO PAY THE COST THEREOF; TO PROVIDE FOR THE
       COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE
       PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE
       OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON
       THE BONDS AND CERTAIN OUTSTANDING BONDS OF THE SYSTEM; TO
       PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF SYSTEM
       REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE
       BONDS IN ENFORCEMENT THEREOF; TO PRESCRIBE THE FORM OF THE
       BONDS; AND TO PROVIDE FOR OTHER MATTERS RELATING TO THE
       BONDS AND THE SYSTEM.

THE CITY OF MUSKEGON ORDAINS:

        Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated
by the context, the following terms shall have the following meanings:

              (a)     “Act 94” means Act 94, Public Acts of Michigan, 1933, as amended.

              (b)     “Adjusted Net Revenues” means for any operating year the excess of
       revenues over expenses for the System determined in accordance with generally accepted
       accounting principles, to which shall be added depreciation, amortization, interest expense
       on Bonds and payments to the City in lieu of taxes, to which may be made the following
       adjustments.

                     (i)     Revenues may be augmented by the amount of any rate increases
              adopted prior to the issuance of additional Bonds or to be placed into effect before
              the time principal or interest on the additional Bonds becomes payable from
              Revenues as applied to quantities of service furnished during the operating year or
              portion thereof that the increased rates were not in effect.

                     (ii)    Revenues may be augmented by amounts which may be derived
              from rates and charges to be paid by new customers of the System.

              (c)     “Authority” means the Michigan Finance Authority or its successor.

              (d)    “Authorized Officers” means the Mayor, the City Manager, the City Clerk
       and the Finance Director of the City.
        (e)     “Bonds” or “Senior Lien Bonds” means any bonds or series of bonds so
designated and payable from Net Revenues, which are secured by a statutory first lien on
the Net Revenues established by this Ordinance and which are senior and superior in all
respects with respect to the Net Revenues to any Junior Lien Bonds secured by the statutory
second lien on the Net Revenues, together with any additional Bonds of equal standing
thereafter issued.

       (f)   “City” or “Issuer” means the City of Muskegon, County of Muskegon, State
of Michigan.

       (g)    “EGLE” means the means the Michigan Department of Environment, Great
Lakes, and Energy, or its successor.

       (h)     “Engineers” means Prein & Newhof, registered engineers of Grand Rapids,
Michigan.

       (i)    “Junior Lien Bonds” means the Series 2022 Bonds, the Outstanding Junior
Lien Bonds any additional bonds of equal standing with the Series 2022 Bonds and the
Outstanding Junior Lien Bonds which are secured by a statutory second lien on the Net
Revenues and are junior and subordinate to the Senior Lien Bonds.

      (j)     “Outstanding Junior Lien Bonds” means the Series 2004 Bond, Series 2019
Bond and Series 2020 Bond.

        (k)    “Outstanding Ordinances” means Ordinance Nos. 2117, 2416 and 2436 of
the City.

          (l)    “Project” means the acquisition, construction, furnishing and equipping of
improvements to the Water Supply System of the City, 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.

        (m)    “Purchase Contract” means the Purchase Contract to be entered into
between the Authority and the City relating to the purchase by the Authority of a series of
the Series 2022 Bonds.

        (n)    “Revenues” and “Net Revenues” shall mean the revenues and net revenues
of the City derived from the operation of the System and shall be construed as defined in
Section 3 of Act 94, including with respect to “Revenues,” the earnings derived from the
investment of moneys in the various funds and accounts established by the Outstanding
Ordinances and this Ordinance.

       (o)     “Series 2004 Bond” means the Water Supply System Junior Lien Revenue
Bond (Limited Tax General Obligation), Series 2004, dated March 25, 2004, in the
outstanding principal amount of Three Million Two Hundred Sixty-Five Thousand Dollars
($3,265,000).




                                         2
              (p)    “Series 2019 Bond” means the Water Supply System Junior Lien Revenue
       Bond, Series 2019, dated August 28, 2019, in the outstanding principal amount of One
       Million Five Hundred Thirty-Five Thousand Dollars ($1,535,000).

              (q)    “Series 2020 Bond” means the Water Supply System Junior Lien Revenue
       Bond, Series 2020, dated September 30, 2020, in the outstanding principal amount of Three
       Million Six Hundred Ninety Thousand Dollars ($3,690,000).

                (r)   “Series 2022 Bonds” means the Series 2022A Bonds and the Series 2022B
       Bonds.

              (s)    “Series 2022A Bond” means the Water Supply System Junior Lien Revenue
       Bond, Series 2022, in the principal amount of not to exceed Five Million Three Hundred
       Twenty Thousand Dollars ($5,320,000) authorized by this Ordinance.

              (t)    “Series 2022B Bond” means the Water Supply System Junior Lien Revenue
       Bond, Series 2022, in the principal amount of not to exceed Three Million Five Hundred
       Sixty Thousand Dollars ($3,560,000) authorized by this Ordinance.

               (u)     “Sufficient Government Obligations” means direct obligations of the
       United States of America or obligations the principal and interest on which is fully
       guaranteed by the United States of America, not redeemable at the option of the issuer, the
       principal and interest payments upon which without reinvestment of the interest, come due
       at such times and in such amounts as to be fully sufficient to pay the interest as it comes
       due on the Bonds or Junior Lien Bonds and the principal and redemption premium, if any,
       on the Bonds or Junior Lien Bonds as it comes due whether on the stated maturity date or
       upon earlier redemption. Securities representing such obligations shall be placed in trust
       with a bank or trust company, and if any of the Bonds or Junior Lien Bonds are to be called
       for redemption prior to maturity, irrevocable instructions to call the Bonds for redemption
       shall be given to the paying agent.

               (v)    “Supplemental Agreement” means the supplemental agreement among the
       City, the Authority and the EGLE relating to a series of the Series 2022 Bonds.

               (w)     “System” means the Water Supply System of the City, including the Project
       and all additions, extensions and improvements hereafter acquired.

       Section 2. Necessity; Approval of Plans and Specifications. It is hereby determined to be
a necessary public purpose of the City to acquire and construct the Project in accordance with the
plans and specifications prepared by the Engineers, which plans and specifications are hereby
approved. The Project qualifies for the Drinking Water State Revolving Fund financing program
being administered by the EGLE and the Authority, whereby bonds of the City are sold to the
Authority and bear interest at a fixed rate of not to exceed one and seven-eighths percent (1.875%)
per annum.

      Section 3. Costs; Useful Life. The cost of the Project is estimated to be an amount not to
exceed Eight Million Eight Hundred Eighty Thousand Dollars ($8,880,000), including the
payment of incidental expenses as specified in Section 4 of this Ordinance, which estimate of cost



                                                3
is hereby approved and confirmed. The period of usefulness of the Project is estimated to be not
less than twenty-five (25) years.

        Section 4. Payment of Cost; Bonds Authorized. To pay part of the cost of acquiring the
Project, legal, engineering, financial and other expenses incident thereto and incident to the
issuance and sale of the Series 2022 Bonds, the City shall borrow the sum of not to exceed Eight
Million Eight Hundred Eighty Thousand Dollars ($8,880,000), and issue the Series 2022 Bonds
therefor pursuant to the provisions of Act 94. The remaining cost of the Project, if any, shall be
defrayed from grant funds and City funds on hand and legally available for such use.

        Except as amended by or expressly provided to the contrary in this Ordinance, all of the
provisions of the Outstanding Ordinances shall apply to the Series 2022 Bonds issued pursuant to
this Ordinance, the same as though each of the provisions were repeated in this Ordinance in detail;
the purpose of this Ordinance being to authorize the issuance of additional revenue bonds of junior
and subordinate standing and priority of lien to any Outstanding Senior Lien Bonds and of equal
standing and priority of lien as to the Net Revenues with the Outstanding Junior Lien Bonds to
finance the cost of acquiring additions, extensions and improvements to the System, additional
bonds of junior and subordinate standing and priority of lien as to any Outstanding Senior Lien
Bonds and of equal standing and priority of lien as to the Outstanding Junior Lien Bonds for such
purpose being authorized by the provisions of the Outstanding Ordinances, upon the conditions
therein stated, which conditions have been fully met.

         Section 5. Issuance of Series 2022 Bonds; Details. The Series 2022 Bonds of the City, to
be designated WATER SUPPLY SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2022A
and WATER SUPPLY SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2022B, are
authorized to be issued in the aggregate principal sum of not to exceed Eight Million Eight
Hundred Eighty Thousand Dollars ($8,880,000), or such lesser amount as finally determined by
order of the EGLE for the purpose of paying part of the cost of the Project, including the costs
incidental to the issuance, sale and delivery of the Series 2022 Bonds. The Series 2022A Bond is
authorized to be issued in the aggregate principal sum of not to exceed Five Million Three Hundred
Twenty Thousand Dollars ($5,320,000) and the Series 2022B Bond is authorized to be issued in
the aggregate principal sum of not to exceed Three Million Five Hundred Sixty Thousand Dollars
($3,560,000). The Series 2022 Bonds shall be Junior Lien Bonds payable out of the Net Revenues,
as set forth more fully in Section 8 hereof, provided that the Series 2022 Bonds shall be subordinate
to the prior lien with respect to the Net Revenues in favor of any Senior Lien Bonds hereafter
issued.

        The Series 2022A Bond and the Series 2022B Bond shall each be in the form of a single
fully-registered, nonconvertible bond of the denomination of the full principal amount thereof,
dated as of the date of delivery, payable in principal installments as finally determined by the order
of the EGLE at the time of sale of each series of the Series 2022 Bonds and approved by the
Authority and an Authorized Officer. Principal installments of the Series 2022 Bonds shall be
payable on October 1 of the years 2024 through 2043, inclusive, or such other payment dates as
hereinafter provided. Interest on the Series 2022 Bonds shall be payable on April 1 and October
1 of each year, commencing April 1, 2023 or on such other interest payment dates as hereinafter
provided. Final determination of the principal amount of and interest on the Series 2022 Bonds
and the payment dates and amounts of principal installments of the Series 2022 Bonds shall be




                                                  4
evidenced by execution of the Purchase Contract and each of the Authorized Officers is authorized
and directed to execute and deliver the Purchase Contract when in final form and to make the
determinations set forth above; provided, however, that the first principal installment shall be due
no earlier than April 1, 2023 and the final principal installment shall be due no later than October 1,
2045 and that the total principal amount shall not exceed $8,880,000.

        The Series 2022 Bonds shall bear interest at a rate of not to exceed one and seven-eighths
percent (1.875%) per annum on the par value thereof or such other rate as evidenced by execution
of the Purchase Contract, but in any event not to exceed the rate permitted by law, and any
Authorized Officers as shall be appropriate shall deliver the Series 2022 Bonds in accordance with
the delivery instructions of the Authority.

       The principal amount of the Series 2022 Bonds is expected to be drawn down by the City
periodically, and interest on principal amount shall accrue from the date such principal amount is
drawn down by the City.

        The Series 2022 Bonds shall not be convertible or exchangeable into more than one fully-
registered bond. Principal of and interest on the Series 2022 Bonds shall be payable as provided
in the Series 2022 Bonds form in this Ordinance.

        The Series 2022 Bonds shall be subject to optional redemption by the City with the prior
written approval of the Authority and on such terms as may be required by the Authority.

        The Treasurer shall record on the registration books payment by the City of each
installment of principal or interest or both when made and the cancelled checks or other records
evidencing such payments shall be returned to and retained by the Treasurer.

       Upon payment by the City of all outstanding principal of and interest on the Series 2022
Bonds, the Authority shall deliver the Series 2022 Bonds to the City for cancellation.

       Section 6. Execution of Series 2022 Bonds. The Series 2022 Bonds shall be signed by the
manual or facsimile signature of the Mayor and countersigned by the manual or facsimile signature
of the City Clerk and shall have the corporate seal of the City or facsimile thereof impressed
thereon. The Series 2022 Bonds bearing the manual or facsimile signatures of the Mayor and the
City Clerk sold to the Authority shall require no further authentication.

        Section 7. Registration and Transfer. Any Bond or Junior Lien Bond may be transferred
upon the books required to be kept pursuant to this section by the person in whose name it is
registered, in person or by the registered owner’s duly authorized attorney, upon surrender of the
Bond or Junior Lien Bond for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the transfer agent. Whenever any Bond or Junior
Lien Bond shall be surrendered for transfer, the City shall execute and the transfer agent shall
authenticate and deliver a new Bond or Junior Lien Bond, for like aggregate principal amount.
The transfer agent shall require payment by the bondholder requesting the transfer of any tax or
other governmental charge required to be paid with respect to the transfer. The City shall not be
required (i) to issue, register the transfer of or exchange any Bond or Junior Lien Bond during a
period beginning at the opening of business 15 days before the day of the giving of a notice of
redemption of Bonds selected for redemption as described in the form of Series 2022 Bonds



                                                  5
contained in Section 16 of this Ordinance and ending at the close of business on the day of that
giving of notice, or (ii) to register the transfer of or exchange any Bond or Junior Lien Bond so
selected for redemption in whole or in part, except the unredeemed portion of Bonds or Junior
Lien Bonds being redeemed in part. The City shall give the transfer agent notice of call for
redemption at least 20 days prior to the date notice of redemption is to be given.

        The transfer agent shall keep or cause to be kept at its principal office sufficient books for
the registration and transfer of the Bonds or Junior Lien Bond, which shall at all times be open to
inspection by the City; and upon presentation for such purpose the transfer agent shall under such
reasonable regulations as it may prescribe transfer or cause to be transferred on the books Bonds
or Junior Lien Bond as hereinbefore provided.

        If any Bond or Junior Lien Bond shall become mutilated, the City, at the expense of the
holder of the Bond, shall execute, and the transfer agent shall authenticate and deliver, a new Bond
or Junior Lien Bond of like tenor in exchange and substitution for the mutilated Bond or Junior
Lien Bond, upon surrender to the transfer agent of the mutilated Bond or Junior Lien Bond. If any
Bond or Junior Lien Bond issued under this Ordinance shall be lost, destroyed or stolen, evidence
of the loss, destruction or theft may be submitted to the transfer agent and, if this evidence is
satisfactory to both and indemnity satisfactory to the transfer agent shall be given, and if all
requirements of any applicable law including Act 354, Public Acts of Michigan, 1972, as amended
(“Act 354”), being sections 129.131 to 129.135, inclusive, of the Michigan Compiled Laws have
been met, the City, at the expense of the owner, shall execute, and the transfer agent shall thereupon
authenticate and deliver, a new Bond or Junior Lien Bond of like tenor and bearing the statement
required by Act 354, or any applicable law hereafter enacted, in lieu of and in substitution for the
Bond or Junior Lien Bond so lost, destroyed or stolen. If any such Bond or Junior Lien Bond shall
have matured or shall be about to mature, instead of issuing a substitute Bond or Junior Lien Bond
the transfer agent may pay the same without surrender thereof.

        Section 8. Payment of Series 2022 Bonds; Security; Priority of Lien. Principal of and
interest on the Series 2022 Bonds shall be payable solely from the Net Revenues, and to secure
such payment, there is hereby recognized the statutory lien upon the whole of the Net Revenues
which shall be a second lien, subject only to the statutory first lien established with respect to the
Senior Lien Bonds, to continue until payment in full of the principal of and interest on all Junior
Lien Bonds payable from the Net Revenues, or, until sufficient cash or Sufficient Government
Obligations have been deposited in trust for payment in full of all Junior Lien Bonds of a series
then outstanding, principal and interest on such Junior Lien Bonds to maturity, or, if called for
redemption, to the date fixed for redemption together with the amount of the redemption premium,
if any. The statutory lien on the Net Revenues created with respect to the Junior Lien Bonds
(including the Series 2022 Bonds) shall at all times be and remain subordinate and inferior to the
pledge of Net Revenues and the statutory first lien thereon authorized to be granted to secure any
Senior Lien Bonds hereafter issued.

       Upon deposit of cash or Sufficient Government Obligations, as provided in the previous
sentences, the statutory lien shall be terminated with respect to that series of Bonds or Junior Lien
Bonds, the holders of that series shall have no further rights under this Ordinance except for
payment from the deposited funds, and the Bonds or Junior Lien Bonds of that series shall no
longer be considered to be outstanding under the Outstanding Ordinance or this Ordinance.




                                                  6
        Section 9. Bondholders’ Rights; Receiver. The holder or holders of the Bonds or Junior
Lien Bonds representing in the aggregate not less than twenty percent (20%) of the entire principal
amount thereof then outstanding, may, by suit, action, mandamus or other proceedings, protect
and enforce the statutory lien upon the Net Revenues of the System, and may, by suit, action,
mandamus or other proceedings, enforce and compel performance of all duties of the officers of
the City, including the fixing of sufficient rates, the collection of Revenues, the proper segregation
of the Revenues of the System and the proper application thereof. The statutory lien upon the Net
Revenues, however, shall not be construed as to compel the sale of the System or any part thereof.

        If there is a default in the payment of the principal of or interest on the Bonds or the Junior
Lien Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer
and operate the System on behalf of the City and under the direction of the court, and by and with
the approval of the court to perform all of the duties of the officers of the City more particularly
set forth herein and in Act 94.

       The holder or holders of the Bonds and the Junior Lien Bonds shall have all other rights
and remedies given by Act 94 and law, for the payment and enforcement of the Bonds and the
Junior Lien Bonds and the security therefor.

        Section 10. Management; Fiscal Year. The operation, repair and management of the
System and the acquisition and construction of the Project shall be under the supervision and
control of the City Commission. The City Commission, in accordance with the relevant provisions
of the City Charter, may employ such person or persons in such capacity or capacities as it deems
advisable to carry on the efficient management and operation of the System. The City Commission
may make such rules and regulations as it deems advisable and necessary to assure the efficient
management and operation of the System. The fiscal year of the System shall be the fiscal year of
the City.

        Section 11. Rates and Charges. The rates and charges for service furnished by and the use
of the System and the methods of collection and enforcement of the collection of the rates shall be
those in effect on the date of adoption of this Ordinance.

       Section 12. No Free Service or Use. No free service or use of the System, or service or
use of the System at less than cost, shall be furnished by the System to any person, firm or
corporation, public or private, or to any public agency or instrumentality, including the City.

        Section 13. Fixing and Revising Rates; Rate Covenant. The rates now in effect are
estimated to be sufficient to provide for the payment of the expenses of administration and
operation and such expenses for maintenance of the System as are necessary to preserve the System
in good repair and working order, to provide for the payment of the principal of and interest on the
Bonds and the Junior Lien Bonds as the same become due and payable, and the maintenance of
the reserve therefor and to provide for all other obligations, expenditures and funds for the System
required by law and this Ordinance. In addition, it is agreed that the rates shall be set from time
to time so that there shall be produced each fiscal year Net Revenues in an amount not less than
110% of the principal of and interest on all Bonds coming due in each fiscal year and not less than
100% of the principal of and interest on all Junior Lien Bonds coming due in each fiscal year. The
rates shall be fixed and revised from time to time as may be necessary to produce these amounts,




                                                  7
and it is hereby covenanted and agreed to fix and maintain rates for services furnished by the
System at all times sufficient to provide for the foregoing.

        Section 14. Funds and Accounts; Flow of Funds. The funds and accounts established by
the Outstanding Ordinances are hereby continued, the flow of funds established by the Outstanding
Ordinances, is hereby continued, and the applicable sections of the Outstanding Ordinances,
relating to funds and accounts and flow of funds are incorporated herein by reference as if fully
set forth.

        Section 15. Bond Proceeds. The proceeds of the sale of the Series 2022 Bonds shall be
deposited in a bank or banks, designated by the City, qualified to act as depository of the proceeds
of sale under the provisions of Act 94, in an account designated 2022 WATER SUPPLY SYSTEM
PROJECT CONSTRUCTION FUND (the “Construction Fund”). Moneys in the Construction
Fund shall be applied solely in payment of the cost of the Project, including any engineering, legal
and other expenses incident thereto and to the financing thereof.

       Section 16. Bond Form. The Series 2022 Bonds shall be in substantially the following
form with such changes or completion as necessary or appropriate to give effect to the intent of
this Ordinance and further subject to such modifications which may be required by the Michigan
Attorney General and the Authority and approved by bond counsel:




                                                 8
                               UNITED STATES OF AMERICA
                                  STATE OF MICHIGAN
                                 COUNTY OF MUSKEGON

                                     CITY OF MUSKEGON

   WATER SUPPLY SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2022[A/B]



REGISTERED OWNER:                     Michigan Finance Authority

PRINCIPAL AMOUNT:                     __________________ Dollars ($__________)

DATE OF ORIGINAL ISSUE:               September 20, 2022


        The CITY OF MUSKEGON, County of Muskegon, State of Michigan (the “City”), for
value received, hereby promises to pay, but only out of the hereinafter described Net Revenues of
the City’s Water Supply System (hereinafter defined), to the Michigan Finance Authority (the
“Authority”), or registered assigns, the Principal Amount shown above, or such portion thereof as
shall have been advanced to the City pursuant to a Purchase Contract between the City and the
Authority and a Supplemental Agreement by and among the City, the Authority and the State of
Michigan acting through the Department of Environment, Great Lakes, and Energy, in lawful
money of the United States of America, unless prepaid or reduced prior thereto as hereinafter
provided.

        During the time funds are being drawn down by the City under this Bond, the Authority
will periodically provide the City a statement showing the amount of principal that has been
advanced and the date of each advance, which statement shall constitute prima facie evidence of
the reported information; provided that no failure on the part of the Authority to provide such a
statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the
City of its obligation to repay the outstanding principal amount actually advanced, all accrued
interest thereon, and any other amount payable with respect thereto in accordance with the terms
of this Bond.

        The Principal Amount shall be payable on the dates and in the annual principal installment
amounts set forth on Schedule A attached hereto and made a part hereof, as such Schedule may be
adjusted if less than $________ is disbursed to the City or if a portion of the Principal Amount is
prepaid as provided below, with interest on the principal installments from the date each
installment is delivered to the holder hereof until paid at the rate of one and seven-eighths percent
(1.875%) per annum. Interest is first payable April 1, 2023 and semiannually thereafter and
principal is payable on the first day of October commencing October 1, 2024 (as identified in the
Purchase Contract) and annually thereafter.

       Principal installments of this bond are subject to prepayment by the City prior to maturity
only with the prior written consent of the Authority and on such terms as may be required by the
Authority.



                                                 9
        Notwithstanding any other provision of this bond, so long as the Authority is the owner of
this bond, (a) this bond is payable as to principal, premium, if any, and interest at U.S. Bank Trust
Company, National Association or at such other place as shall be designated in writing to the City
by the Authority (the "Authority's Depository"); (b) the City agrees that it will deposit with the
Authority's Depository payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which
any such payment is due whether by maturity, redemption or otherwise; in the event that the
Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day, the
City shall immediately pay to the Authority as invoiced by the Authority an amount to recover the
Authority's administrative costs and lost investment earnings attributable to that late payment; and
(c) written notice of any redemption of this bond shall be given by the City and received by the
Authority's Depository at least 40 days prior to the date on which such redemption is to be made.

                                        Additional Interest

        In the event of a default in the payment of principal or interest hereon when due, whether
at maturity, by redemption or otherwise, the amount of such default shall bear interest (the
“additional interest”) at a rate equal to the rate of interest which is two percent above the
Authority’s cost of providing funds (as determined by the Authority) to make payment on the
bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of
the maximum rate of interest permitted by law. The additional interest shall continue to accrue
until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined
by the Authority) as a consequence of the City’s default. Such additional interest shall be payable
on the interest payment date following demand of the Authority. In the event that (for reasons
other than the default in the payment of any municipal obligation purchased by the Authority) the
investment of amounts in the reserve account established by the Authority for the bonds of the
Authority issued to provide funds to purchase this bond fails to provide sufficient available funds
(together with any other funds which may be made available for such purpose) to pay the interest
on outstanding bonds of the Authority issued to fund such account, the City shall and hereby agrees
to pay on demand only the City’s pro rata share (as determined by the Authority) of such deficiency
as additional interest on this bond.

        For prompt payment of principal and interest on this bond, the City has irrevocably pledged
the revenues of the Water Supply System of the City, including all appurtenances, extensions and
improvements thereto (the “System”), after provision has been made for reasonable and necessary
expenses of operation, maintenance and administration (the “Net Revenues”), and a statutory
second lien thereon is hereby recognized and created, subject to the senior lien of any additional
Bonds of the City hereafter issued by the City, as set forth in the Ordinance (hereinafter defined).
The bonds of this issue are of equal standing and priority of lien as to the Net Revenues with the
City’s Water Supply System Revenue Bonds (Limited Tax General Obligation), Series 2004, the
City’s Water Supply System Junior Lien Revenue Bonds, Series 2019, the City’s Water Supply
System Junior Lien Revenue Bonds, Series 2020 and the City’s Water Supply System Junior Lien
Revenue Bonds, Series 2022[A/B] (together, the “Outstanding Junior Lien Bonds”) and any
additional bonds hereafter issued by the City of equal standing and priority with the Outstanding
Junior Lien Bonds. The City has reserved the right to issue such additional Bonds which shall be
superior and senior in all respects to the bonds of this issue as to the Net Revenues, or of equal
standing and priority of lien as to the Net Revenues.



                                                 10
         Purchasers of the bonds of this issue, by their acceptance of the bonds of this issue or a
beneficial ownership interest therein, shall be deemed to have consented to the subordination of
their interest in and lien upon the Net Revenues upon the issuance of senior lien bonds subsequent
to the delivery of the bonds of this issue.

       This bond is a single, fully-registered, non-convertible bond in the principal sum indicated
above issued pursuant to Ordinance No. ___, duly adopted by the City Commission of the City
and the prior ordinances authorizing the issuance of the Outstanding Junior Lien Bonds (together,
the “Ordinances”), and under and in full compliance with the Constitution and statutes of the State
of Michigan, including specifically Act 94, Public Acts of Michigan, 1933, as amended, for the
purpose of paying part of the cost of acquiring and constructing additions, extensions and
improvements to the System.

       For a complete statement of the revenues from which and the conditions under which this
bond is payable, a statement of the conditions under which additional bonds of superior and equal
standing may hereafter be issued and the general covenants and provisions pursuant to which this
bond is issued, reference is made to the above-described Ordinances.

        This bond is a self-liquidating bond, payable, both as to principal and interest, solely and
only from the Net Revenues of the System. The principal of and interest on this bond are secured
by the statutory lien hereinbefore mentioned.

        The City has covenanted and agreed, and does hereby covenant and agree, to fix and
maintain at all times while any bonds payable from the Net Revenues of the System shall be
outstanding, such rates for service furnished by the System as shall be sufficient to provide for
payment of the interest upon and the principal of the bonds of this issue, any additional Bonds, and
any additional Junior Lien Bonds, as and when the same shall become due and payable, and to
maintain a bond redemption fund (including a bond reserve account, if any) therefor, to provide
for the payment of expenses of administration and operation and such expenses for maintenance
of the System as are necessary to preserve the same in good repair and working order, and to
provide for such other expenditures and funds for the System as are required by the Ordinances.

        This bond is transferable only upon the books of the City by the registered owner in person
or the registered owner’s attorney duly authorized in writing, upon the surrender of this bond
together with a written instrument of transfer satisfactory to the transfer agent, duly executed by
the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon
a new bond or bonds in the same aggregate principal amount and of the same maturity shall be
issued to the transferee in exchange therefor as provided in the Ordinances, and upon payment of
the charges, if any, therein prescribed.

       It is hereby certified and recited that all acts, conditions and things required by law to be
done precedent to and in the issuance of this bond have been done and performed in regular and
due time and form as required by law.




                                                11
       IN WITNESS WHEREOF, the City of Muskegon, County of Muskegon, State of
Michigan, by its City Commission has caused this bond to be executed with the manual or
facsimile signatures of its Mayor and its City Clerk and the corporate seal of the City to be
impressed or imprinted hereon, all as of the Date of Original Issue.

                                                  CITY OF MUSKEGON


                                                  By_________________________________
                                                              Mayor
(Seal)


Countersigned:


By____________________________
      City Clerk




                                             12
EGLE Project Number:                 [7565-01][7566-01]
EGLE Approved Amt:                    $__________

                                                    SCHEDULE A

          Based on the schedule provided below unless revised as provided in this paragraph, repayment of the
principal of the bond shall be made until the full amount advanced to the City is repaid. In the event the Order of
Approval issued by the Department of Environment, Great Lakes and Energy (the “Order”), approves a principal amount
of assistance less than the amount of the bond delivered to the Authority, the Authority shall only disburse principal
up to the amount stated in the Order. In the event (1) that the payment schedule approved by the City and described
below provides for payment of a total principal amount greater than the amount of assistance approved by the Order
or (2) that less than the principal amount of assistance approved by the Order is disbursed to the City by the Authority,
or (3) that any portion of the principal amount of assistance approved by the Order and disbursed to the City is forgiven
pursuant to the Order, the Authority shall prepare a new payment schedule which shall be effective upon receipt by
the City.

                                Maturity Date                          Principal Amount

                               October 1, 2024
                               October 1, 2025
                               October 1, 2026
                               October 1, 2027
                               October 1, 2028
                               October 1, 2029
                               October 1, 2030
                               October 1, 2031
                               October 1, 2032
                               October 1, 2033
                               October 1, 2034
                               October 1, 2035
                               October 1, 2036
                               October 1, 2037
                               October 1, 2038
                               October 1, 2039
                               October 1, 2040
                               October 1, 2041
                               October 1, 2042
                               October 1, 2043


         Interest on the bond shall accrue on that portion of principal disbursed by the Authority to the City which has
not been forgiven pursuant to the Order from the date such portion is disbursed, until paid, at the rate of 1.875% per
annum, payable April 1, 2023, and semi-annually thereafter.

         The City agrees that it will deposit with the Authority’s Depository, or such other place as shall be designated
in writing to the City by the Authority payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is
due whether by maturity, redemption or otherwise. In the event that the Authority’s Depository has not received the
City’s deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the
Authority an amount to recover the Authority’s administrative costs and lost investment earnings attributable to that
late payment.




                                                           13
       Section 17. Negotiated Sale; Application to EGLE and Authority; Execution of
Documents. The City determines that it is in the best interest of the City to negotiate the sale of
the Series 2022 Bonds to the Authority because the Drinking Water State Revolving Fund
financing programs provide significant interest savings to the City compared to competitive sale
in the municipal bond market and principal forgiveness. The Authorized Officers are hereby
authorized to make application to the Authority and to the EGLE for placement of the Series 2022
Bonds with the Authority. The actions taken by the Authorized Officers with respect to the Series
2022 Bonds prior to the adoption of this Ordinance are ratified and confirmed. The Authorized
Officers are authorized to execute and deliver the Purchase Contract, the Supplemental Agreement
and the Issuer’s Certificate. Any Authorized Officer is further authorized to execute and deliver
such contracts, documents and certificates as are necessary or advisable to qualify the Series 2022
Bonds for the Drinking Water State Revolving Fund. Prior to the delivery of the Series 2022
Bonds to the Authority, any Authorized Officer is hereby authorized to make such changes to the
form of the Series 2022 Bonds contained in Section 16 of this Ordinance as may be necessary to
conform to the requirements of Act 227, Public Acts of Michigan 1985, as amended (“Act 227”),
including, but not limited to changes in the principal maturity and interest payment dates and
references to additional security required by Act 227.

        Section 18. Covenant Regarding Tax Exempt Status of the Bonds. The City shall, to the
extent permitted by law, take all actions within its control necessary to maintain the exemption of
the interest on the Series 2022 Bonds from general federal income taxation (as opposed to any
alternative minimum or other indirect taxation) under the Internal Revenue Code of 1986, as
amended (the “Code”), including, but not limited to, actions relating to any required rebate of
arbitrage earnings and the expenditure and investment of Series 2022 Bonds proceeds and moneys
deemed to be Bond proceeds.

       Section 19. Approval of Bond Counsel. The representation of the City by Miller, Canfield,
Paddock and Stone, P.L.C. (“Miller Canfield”), as bond counsel is hereby approved,
notwithstanding the representation by Miller Canfield of the Authority in connection with its
financing programs and borrowings.

       Section 20. Approval of Bond Details. The Authorized Officers are each hereby
authorized to adjust the final bond details set forth herein to the extent necessary or convenient to
complete the transaction authorized herein, and in pursuance of the foregoing is authorized to
exercise the authority and make the determinations authorized pursuant to Section 7a(1)(c) of Act
94, including but not limited to determinations regarding interest rates, prices, discounts,
maturities, principal amounts, denominations, dates of issuance, interest payment dates,
redemption rights, the place of delivery and payment, and other matters, provided that the principal
amount of Series 2022 Bonds issued shall not exceed the principal amount authorized in this
Ordinance, the interest rate per annum on the Series 2022 Bonds shall not exceed one and seven-
eighths percent (1.875%) per annum, and the Series 2022 Bonds shall mature in not more than
twenty (20) annual installments.

        Section 21. Savings Clause. All ordinances, resolutions or orders, or part thereof, in
conflict with the provisions of this Ordinance are, to the extent of such conflict, repealed.




                                                 14
        Section 22. Severability; Paragraph Headings; and Conflict. If any section, paragraph,
clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph,
clause or provision shall not affect any of the other provisions of this Ordinance. The paragraph
headings in this Ordinance are furnished for convenience of reference only and shall not be
considered to be part of this Ordinance.

        Section 23. Publication and Recordation. This Ordinance shall be published in full in the
Muskegon Chronicle, a newspaper of general circulation in the City qualified under State law to
publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of
the City and such recording authenticated by the signatures of the Mayor and the City Clerk.

       Section 24. Effective Date. This Ordinance shall be effective upon its adoption and
publication.


ADOPTED AND SIGNED THIS 9th day of August, 2022.


                                               Signed____________________________________
                                                        Mayor



                                               Signed____________________________________
                                                        City Clerk

I HEREBY CERTIFY that the foregoing constitutes a true and complete copy of an Ordinance
duly adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan,
at a regular meeting held on the 9th day of August, 2022, and that the meeting was conducted and
public notice of the meeting was given pursuant to and in full compliance with the Open Meetings
Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of the meeting were kept
and will be or have been made available as required by the Act.

      I further certify that the following Members were present at the meeting:
__________________________________________________________________________ and
that         the          following        Members         were         absent:
________________________________________________________.

       I further certify that Member _________________ moved for adoption of the Ordinance,
and that the motion was supported by Member _________________.

      I further certify that the following Members voted for adoption of the Ordinance:
__________________________________________________________________________ and
that  the    following    Members      voted against   adoption   of   the   Ordinance:
________________________________.




                                                  15
       I further certify that the Ordinance has been recorded in the Ordinance Book and that such
recording has been authenticated by the signatures of the Mayor and the City Clerk.



                                                    ____________________________________
                                                                City Clerk
39462219.1/063684.00055




                                               16
                                                                                                           MICHIGAN
Founded in 1852                                                                                              ILLINOIS
by Sidney Davy Miller                                                                                      NEW YORK
                                                                                                                 OHIO
                                                                                                     WASHINGTON, D.C.
                                                                                                             CANADA
                                                                                                               CHINA
PATRICK F. MCGOW                       Miller, Canfield, Paddock and Stone, P.L.C.                            MEXICO
TEL (313) 496-7684                            150 West Jefferson, Suite 2500                                 POLAND
FAX (313) 496-8450                                                                                             QATAR
                                                Detroit, Michigan 48226
E-MAIL mcgow@millercanfield.com
                                                  TEL (313) 963-6420
                                                  FAX (313) 496-7500
                                                 www.millercanfield.com


                                                    August 2, 2022

         Mr. Ken Grant
         Finance Director
         City of Muskegon
         933 Terrace Street
         Muskegon MI 49443-0536

                  Re:     City of Muskegon
                          $6,640,000 Sanitary Sewer System Junior Lien Revenue Bonds, Series 2022
                          (CWSRF Project)
                          $5,320,000 Water Supply System Junior Lien Revenue Bonds, Series 2022A
                          (DWSRF Water Main Project)
                          $3,560,000 Water Supply System Junior Lien Revenue Bonds, Series 2022B
                          (DWSRF Lead Service Line Replacement Project)

         Dear Ken:

                I have enclosed an Ordinance authorizing the issuance of the above-captioned Sanitary
         Sewer System Revenue Bonds and an Ordinance authorizing the issuance of the above-captioned
         Water Supply System Revenue Bonds to be considered for approval by the City Commission at its
         meeting on August 11th. The Sewer Bonds and the Water Bonds are to be sold through the
         Michigan Finance Authority’s (“MFA”) 4.5 Quarter Clean Water State Revolving Fund Program
         and Drinking Water State Revolving Fund Program, respectively, scheduled to close on September
         20th.

                  Sewer Bonds

                 The Sewer Bond Ordinance authorizes the issuance of the Bonds in an amount not to
         exceed $6,640,000 for the sewer projects although the current estimated sizing is around
         $6,035,000. The Ordinance provides flexibility for the actual size of the Bond issue to be reduced
         prior to closing based on the actual construction bids and final approved costs. In addition, the
         City will receive principal forgiveness for this project which will reduce the amount that needs to
         be paid back to the MFA.

                The Sewer Bond Ordinance authorizes the issuance of the Series 2022 Bonds, which are
         payable from the Net Revenues of the City’s Sanitary Sewer System. The Bonds are expected to
         be sold to the MFA and payable in 20 annual principal installments at an interest rate of 1.875%.
                             MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.

 Mr. Ken Grant                                    -2-                                 August 2, 2022


The Bonds are being issued as junior lien bonds which are of equal standing with the Series 2019
Bonds and Series 2020 Bonds previously issued through the SRF for sewer improvements.

       Water Bonds

        The Water Bond Ordinance authorizes the issuance of the Bonds in an amount not to
exceed $8,880,000 for the water projects in two separate series. The Series 2022A Bond is for the
Water Main Replacement project in an amount not to exceed $5,320,000, although the current
estimated sizing is around $4,836,000. The Series 2022B Bond is for the Lead Service Line
Replacement project in an amount not to exceed $3,560,000, although the current estimated sizing
is around $3,240,000. Again, the Ordinance provides flexibility for the actual size of the Bond
issue to be reduced prior to closing based on the actual construction bids and final approved costs.
In addition, the City will receive principal forgiveness for these projects which will reduce the
amount that needs to be paid back to the MFA. The Series 2022B Bonds for Lead Service Line
Replacements are mostly funded by the Water Infrastructure Fund Transfer Act (aka Booker Grant
funds) and $3,000,000 will be forgiven after disbursement so there will be repayment of only about
$240,000 of principal on that loan.

       The Water Bond Ordinance authorizes the issuance of the Series 2022 Bonds, which are
payable from the Net Revenues of the City’s Water Supply System. The Bonds are expected to
be sold to the MFA and payable in 20 annual principal installments at an interest rate of 1.875%.
The Bonds are being issued as junior lien bonds which are of equal standing with the Series 2004
Bonds, Series 2019 Bonds and Series 2020 Bonds previously issued through the DWRF for water
improvements.

       Both Water and Sewer Bonds

       Both Ordinances also authorize various City officials to take the necessary actions to
execute and deliver the Bonds and all related documents, approve the final size of the Bonds and
contains the necessary items required by the Revenue Bond Act, Act 94 of 1933.

        Pursuant to the Revenue Bond Act, the Ordinances may be adopted in one reading,
regardless of any contrary provision in the City’s ordinance adoption procedures. Each Ordinance
is required to be published once in full in your local newspaper (Muskegon Chronicle) after its
adoption. There are no restrictions or requirements on the size of the publication, so it can be as
small as possible. Upon adoption by the City Commission, we would appreciate receiving three
(3) certified copies of the Ordinance and three (3) Affidavits of Publication of the Ordinance for
bond transcripts.

        The Part III application with the construction bids and tentative contract approval is due on
August 17th. There will be a conference call with MFA, EGLE and City officials on August 23/24
which we will participate in, to make final arrangements relating to the Bond terms. At that time,
the final bond sizes will be determined, and we will prepare the necessary documents to be signed
                             MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.

 Mr. Ken Grant                                    -3-                               August 2, 2022


by various City officials after that date regarding the sale and delivery of the Bonds. The EGLE
Order of Approval is expected to be issued on August 29th. The closing for the Bonds will be
September 20th and the City can begin requesting draws on the Bonds after that date.

         If you or anyone copied have any questions, please do not hesitate to contact me.

                                       Very truly yours,

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




                                        By:
                                              Patrick F. McGow
Enclosure
cc:    LeighAnn Mikesell
       Leo Evans
       Barbara Marczak
       Warren Creamer




39464098.1/063684.00055
                       Agenda Item Review Form
                        Muskegon City Commission

Commission Meeting Date: August 9, 2022                                 Title: Sanitary Sewer Supply
                                                                        System Bonds

Submitted By: Kenneth D. Grant                                          Department: Finance

Brief Summary: Ordinance Authorizing the issuance of Sanitary Sewer Supply System Junior Lien Revenue
Bonds



Detailed Summary & Background:


To authorize the issuance of Sanitary Sewer Supply System Bonds in an amount not to exceed $6,640,000.
The Bonds are expected to be sold to the Michigan Finance Authority and payable in 20 annual principal
installments at an interest rate of 1.875%. Scheduled closing is September 20th.
Estimated Principal Forgiveness is unknown at this time.

Goal/Focus Area/Action Item Addressed:
Refer to the 2022-2027 Long Term Goals document.

Amount Requested:                                      Amount Budgeted:
                                                       Contact Finance if your item does not fit into
                                                       the current budget.

Fund(s) or Account(s): Sewer                           Fund(s) or Account(s):

Recommended Motion: To approve the Ordinance authorizing the issuance of Sanitary Sewer Supply
System Revenue Bonds.



Approvals: Get approval from division head at a minimum prior           Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head           Information Technology                Yes
Other Division Heads              Communication                         No
Legal Review

For City Clerk Use Only:
Commission Action:
                                  ORDINANCE NO. _____
                                  CITY OF MUSKEGON


       AN ORDINANCE TO PROVIDE FOR THE ACQUISITION, CONSTRUCTION,
       INSTALLATION, FURNISHING AND EQUIPPING OF ADDITIONS AND
       IMPROVEMENTS TO THE SANITARY SEWER SYSTEM OF THE CITY; TO
       PROVIDE FOR THE ISSUANCE AND SALE OF JUNIOR LIEN REVENUE
       BONDS TO PAY THE COST THEREOF; TO PROVIDE FOR THE
       COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE
       PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE
       OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON
       THE BONDS AND CERTAIN OUTSTANDING BONDS OF THE SYSTEM; TO
       PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF SYSTEM
       REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE
       BONDS IN ENFORCEMENT THEREOF; TO PRESCRIBE THE FORM OF THE
       BONDS; AND TO PROVIDE FOR OTHER MATTERS RELATING TO THE
       BONDS AND THE SYSTEM.

THE CITY OF MUSKEGON ORDAINS:

        Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated
by the context, the following terms shall have the following meanings:

              (a)     “Act 94” means Act 94, Public Acts of Michigan, 1933, as amended.

              (b)     “Adjusted Net Revenues” means for any operating year the excess of
       revenues over expenses for the System determined in accordance with generally accepted
       accounting principles, to which shall be added depreciation, amortization, interest expense
       on Bonds and payments to the City in lieu of taxes, to which may be made the following
       adjustments.

                     (i)     Revenues may be augmented by the amount of any rate increases
              adopted prior to the issuance of additional Bonds or to be placed into effect before
              the time principal or interest on the additional Bonds becomes payable from
              Revenues as applied to quantities of service furnished during the operating year or
              portion thereof that the increased rates were not in effect.

                     (ii)    Revenues may be augmented by amounts which may be derived
              from rates and charges to be paid by new customers of the System.

              (c)     “Authority” means the Michigan Finance Authority or its successor.

              (d)    “Authorized Officers” means the Mayor, the City Manager, the City Clerk
       and the Finance Director of the City.
        (e)     “Bonds” or “Senior Lien Bonds” means any bonds or series of bonds so
designated and payable from Net Revenues, which are secured by a statutory first lien on
the Net Revenues established by this Ordinance and which are senior and superior in all
respects with respect to the Net Revenues to any Junior Lien Bonds secured by the statutory
second lien on the Net Revenues, together with any additional Bonds of equal standing
thereafter issued.

       (f)   “City” or “Issuer” means the City of Muskegon, County of Muskegon, State
of Michigan.

       (g)    “EGLE” means the means the Michigan Department of Environment, Great
Lakes, and Energy, or its successor.

      (h)      “Engineers” means Prein & Newhof, registered engineers of Grand Rapids,
Michigan.

       (i)    “Junior Lien Bonds” means Series 2022 Bond, the Outstanding Junior Lien
Bonds and any additional bonds of equal standing with the Series 2022 Bond and the
Outstanding Junior Lien Bonds which are secured by a statutory second lien on the Net
Revenues and are junior and subordinate to the Senior Lien Bonds.

        (j)   “Outstanding Junior Lien Bonds” means the Series 2019 Bond and the
Series 2020 Bond.

        (k)    “Outstanding Ordinances” means Ordinance Nos. 2417 and 2437 of the
City.

        (l)    “Project” means the acquisition, construction, furnishing and equipping of
improvements to the Sanitary Sewer System of the City, including sewer system
rehabilitation and replacement of existing sewer lines, together with pump station
improvements and all related appurtenances and attachments.

      (m)    “Purchase Contract” means the Purchase Contract to be entered into
between the Authority and the City relating to the purchase by the Authority of the Series
2022 Bond.

        (n)    “Revenues” and “Net Revenues” shall mean the revenues and net revenues
of the City derived from the operation of the System and shall be construed as defined in
Section 3 of Act 94, including with respect to “Revenues,” the earnings derived from the
investment of moneys in the various funds and accounts established by this Ordinance.

       (o)    “Series 2019 Bond” means the Sanitary Sewer System Junior Lien Revenue
Bond, Series 2019, dated August 28, 2019, in the outstanding principal amount of Two
Million Seven Hundred Fifty-Five Thousand Dollars ($2,755,000).

       (p)    “Series 2020 Bond” means the Sanitary Sewer System Junior Lien Revenue
Bond, Series 2019, dated September 30, 2020, in the outstanding principal amount of Three
Million Six Hundred Twenty Thousand Dollars ($3,620,000).



                                         2
             (q)     “Series 2022 Bond” means the Sanitary Sewer System Junior Lien Revenue
       Bond, Series 2022, of the City in the principal amount of not to exceed Six Million Six
       Hundred Forty Thousand Dollars ($6,640,000) authorized by this Ordinance.

               (r)     “Sufficient Government Obligations” means direct obligations of the
       United States of America or obligations the principal and interest on which is fully
       guaranteed by the United States of America, not redeemable at the option of the issuer, the
       principal and interest payments upon which without reinvestment of the interest, come due
       at such times and in such amounts as to be fully sufficient to pay the interest as it comes
       due on the Bonds or Junior Lien Bonds and the principal and redemption premium, if any,
       on the Bonds or Junior Lien Bonds as it comes due whether on the stated maturity date or
       upon earlier redemption. Securities representing such obligations shall be placed in trust
       with a bank or trust company, and if any of the Bonds or Junior Lien Bonds are to be called
       for redemption prior to maturity, irrevocable instructions to call the Bonds for redemption
       shall be given to the paying agent.

               (s)    “Supplemental Agreement” means the supplemental agreement among the
       City, the Authority and the EGLE relating to the Series 2022 Bond.

               (t)     “System” means the Sanitary Sewer System of the City, including the
       Project and all additions, extensions and improvements hereafter acquired.

       Section 2. Necessity; Approval of Plans and Specifications. It is hereby determined to be
a necessary public purpose of the City to acquire and construct the Project in accordance with the
plans and specifications prepared by the Engineers, which plans and specifications are hereby
approved. The Project qualifies for the Clean Water State Revolving Fund financing program
being administered by the EGLE and the Authority, whereby bonds of the City are sold to the
Authority and bear interest at a fixed rate of not to exceed one and seven-eighths percent (1.875%)
per annum.

       Section 3. Costs; Useful Life. The cost of the Project is estimated to be an amount not to
exceed Six Million Six Hundred Forty Thousand Dollars ($6,640,000), including the payment of
incidental expenses as specified in Section 4 of this Ordinance, which estimate of cost is hereby
approved and confirmed. The period of usefulness of the Project is estimated to be not less than
twenty-five (25) years.

        Section 4. Payment of Cost; Bonds Authorized. To pay part of the cost of acquiring the
Project, legal, engineering, financial and other expenses incident thereto and incident to the
issuance and sale of the Series 2022 Bond, the City shall borrow the sum of not to exceed Six
Million Six Hundred Forty Thousand Dollars ($6,640,000), and issue the Series 2022 Bond
therefor pursuant to the provisions of Act 94. The remaining cost of the Project, if any, shall be
defrayed from grant funds and City funds on hand and legally available for such use.

        Except as amended by or expressly provided to the contrary in this Ordinance, all of the
provisions of the Outstanding Ordinances shall apply to the Series 2022 Bonds issued pursuant to
this Ordinance, the same as though each of the provisions were repeated in this Ordinance in detail;



                                                 3
the purpose of this Ordinance being to authorize the issuance of additional revenue bonds of junior
and subordinate standing and priority of lien to any Outstanding Senior Lien Bonds and of equal
standing and priority of lien as to the Net Revenues with the Outstanding Junior Lien Bonds to
finance the cost of acquiring additions, extensions and improvements to the System, additional
bonds of junior and subordinate standing and priority of lien as to the Outstanding Senior Lien
Bonds and of equal standing and priority of lien as to the Outstanding Junior Lien Bonds for such
purpose being authorized by the provisions of the Outstanding Ordinances, upon the conditions
therein stated, which conditions have been fully met.

        Section 5. Issuance of Series 2022 Bond; Details. The Series 2022 Bond of the City, to be
designated SANITARY SEWER SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2022 is
authorized to be issued in the aggregate principal sum of not to exceed Six Million Six Hundred
Forty Thousand Dollars ($6,640,000) or such lesser amount as finally determined by order of the
EGLE for the purpose of paying part of the cost of the Project, including the costs incidental to the
issuance, sale and delivery of the Series 2022 Bond. The Series 2022 Bond shall be payable out
of the Net Revenues, as set forth more fully in Section 8 hereof.

        The Series 2022 Bond shall be in the form of a single fully-registered, nonconvertible bond
of the denomination of the full principal amount thereof, dated as of the date of delivery, payable
in principal installments as finally determined by the order of the EGLE at the time of sale of the
Series 2022 Bond and approved by the Authority and an Authorized Officer. Principal installments
of the Series 2022 Bond shall be payable on October 1 of the years 2024 through 2043, inclusive,
or such other payment dates as hereinafter provided. Interest on the Series 2022 Bond shall be
payable on April 1 and October 1 of each year, commencing April 1, 2023 or on such other interest
payment dates as hereinafter provided. Final determination of the principal amount of and interest
on the Series 2022 Bond and the payment dates and amounts of principal installments of the Series
2022 Bond shall be evidenced by execution of the Purchase Contract and each of the Authorized
Officers is authorized and directed to execute and deliver the Purchase Contract when in final form
and to make the determinations set forth above; provided, however, that the first principal
installment shall be due no earlier than April 1, 2023 and the final principal installment shall be
due no later than October 1, 2045 and that the total principal amount shall not exceed $6,640,000.

        The Series 2022 Bond shall bear interest at a rate of not to exceed one and seven-eighths
percent (1.875%) per annum on the par value thereof or such other rate as evidenced by execution
of the Purchase Contract, but in any event not to exceed the rate permitted by law, and any
Authorized Officers as shall be appropriate shall deliver the Series 2022 Bond in accordance with
the delivery instructions of the Authority.

       The principal amount of the Series 2022 Bond is expected to be drawn down by the City
periodically, and interest on principal amount shall accrue from the date such principal amount is
drawn down by the City.

        The Series 2022 Bond shall not be convertible or exchangeable into more than one fully-
registered bond. Principal of and interest on the Series 2022 Bond shall be payable as provided in
the Series 2022 Bond form in this Ordinance.




                                                 4
        The Series 2022 Bond shall be subject to optional redemption by the City with the prior
written approval of the Authority and on such terms as may be required by the Authority.

        The Treasurer shall record on the registration books payment by the City of each
installment of principal or interest or both when made and the cancelled checks or other records
evidencing such payments shall be returned to and retained by the Treasurer.

       Upon payment by the City of all outstanding principal of and interest on the Series 2022
Bond, the Authority shall deliver the Series 2022 Bond to the City for cancellation.

       Section 6. Execution of Series 2022 Bond. The Series 2022 Bond shall be signed by the
manual or facsimile signature of the Mayor and countersigned by the manual or facsimile signature
of the City Clerk and shall have the corporate seal of the City or facsimile thereof impressed
thereon. The Series 2022 Bond bearing the manual or facsimile signatures of the Mayor and the
City Clerk sold to the Authority shall require no further authentication.

        Section 7. Registration and Transfer. Any Bond or Junior Lien Bond may be transferred
upon the books required to be kept pursuant to this section by the person in whose name it is
registered, in person or by the registered owner’s duly authorized attorney, upon surrender of the
Bond or Junior Lien Bond for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the transfer agent. Whenever any Bond or Junior
Lien Bond shall be surrendered for transfer, the City shall execute and the transfer agent shall
authenticate and deliver a new Bond or Junior Lien Bond, for like aggregate principal amount.
The transfer agent shall require payment by the bondholder requesting the transfer of any tax or
other governmental charge required to be paid with respect to the transfer. The City shall not be
required (i) to issue, register the transfer of or exchange any Bond or Junior Lien Bond during a
period beginning at the opening of business 15 days before the day of the giving of a notice of
redemption of Bonds selected for redemption as described in the form of Series 2022 Bond
contained in Section 16 of this Ordinance and ending at the close of business on the day of that
giving of notice, or (ii) to register the transfer of or exchange any Bond or Junior Lien Bond so
selected for redemption in whole or in part, except the unredeemed portion of Bonds or Junior
Lien Bonds being redeemed in part. The City shall give the transfer agent notice of call for
redemption at least 20 days prior to the date notice of redemption is to be given.

        The transfer agent shall keep or cause to be kept at its principal office sufficient books for
the registration and transfer of the Bonds or Junior Lien Bond, which shall at all times be open to
inspection by the City; and upon presentation for such purpose the transfer agent shall under such
reasonable regulations as it may prescribe transfer or cause to be transferred on the books Bonds
or Junior Lien Bond as hereinbefore provided.

        If any Bond or Junior Lien Bond shall become mutilated, the City, at the expense of the
holder of the Bond, shall execute, and the transfer agent shall authenticate and deliver, a new Bond
or Junior Lien Bond of like tenor in exchange and substitution for the mutilated Bond or Junior
Lien Bond, upon surrender to the transfer agent of the mutilated Bond or Junior Lien Bond. If any
Bond or Junior Lien Bond issued under this Ordinance shall be lost, destroyed or stolen, evidence
of the loss, destruction or theft may be submitted to the transfer agent and, if this evidence is
satisfactory to both and indemnity satisfactory to the transfer agent shall be given, and if all




                                                  5
requirements of any applicable law including Act 354, Public Acts of Michigan, 1972, as amended
(“Act 354”), being sections 129.131 to 129.135, inclusive, of the Michigan Compiled Laws have
been met, the City, at the expense of the owner, shall execute, and the transfer agent shall thereupon
authenticate and deliver, a new Bond or Junior Lien Bond of like tenor and bearing the statement
required by Act 354, or any applicable law hereafter enacted, in lieu of and in substitution for the
Bond or Junior Lien Bond so lost, destroyed or stolen. If any such Bond or Junior Lien Bond shall
have matured or shall be about to mature, instead of issuing a substitute Bond or Junior Lien Bond
the transfer agent may pay the same without surrender thereof.

        Section 8. Payment of Series 2022 Bond; Security; Priority of Lien. Principal of and
interest on the Series 2022 Bond shall be payable solely from the Net Revenues, and to secure such
payment, there is hereby recognized the statutory lien upon the whole of the Net Revenues which
shall be a second lien, subject only to the statutory first lien established with respect to the Senior
Lien Bonds, to continue until payment in full of the principal of and interest on all Junior Lien
Bonds payable from the Net Revenues, or, until sufficient cash or Sufficient Government
Obligations have been deposited in trust for payment in full of all Junior Lien Bonds of a series
then outstanding, principal and interest on such Junior Lien Bonds to maturity, or, if called for
redemption, to the date fixed for redemption together with the amount of the redemption premium,
if any. The statutory lien on the Net Revenues created with respect to the Junior Lien Bonds
(including the Series 2022 Bond) shall at all times be and remain subordinate and inferior to the
pledge of Net Revenues and the statutory first lien thereon authorized to be granted to secure any
Senior Lien Bonds hereafter issued.

       Upon deposit of cash or Sufficient Government Obligations, as provided in the previous
sentences, the statutory lien shall be terminated with respect to that series of Bonds or Junior Lien
Bonds, the holders of that series shall have no further rights under this Ordinance except for
payment from the deposited funds, and the Bonds or Junior Lien Bonds of that series shall no
longer be considered to be outstanding under this Ordinance.

        Section 9. Bondholders’ Rights; Receiver. The holder or holders of the Bonds or Junior
Lien Bonds representing in the aggregate not less than twenty percent (20%) of the entire principal
amount thereof then outstanding, may, by suit, action, mandamus or other proceedings, protect
and enforce the statutory lien upon the Net Revenues of the System, and may, by suit, action,
mandamus or other proceedings, enforce and compel performance of all duties of the officers of
the City, including the fixing of sufficient rates, the collection of Revenues, the proper segregation
of the Revenues of the System and the proper application thereof. The statutory lien upon the Net
Revenues, however, shall not be construed as to compel the sale of the System or any part thereof.

        If there is a default in the payment of the principal of or interest on the Bonds or the Junior
Lien Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer
and operate the System on behalf of the City and under the direction of the court, and by and with
the approval of the court to perform all of the duties of the officers of the City more particularly
set forth herein and in Act 94.

       The holder or holders of the Bonds and the Junior Lien Bonds shall have all other rights
and remedies given by Act 94 and law, for the payment and enforcement of the Bonds and the
Junior Lien Bonds and the security therefor.




                                                  6
        Section 10. Management; Fiscal Year. The operation, repair and management of the
System and the acquisition and construction of the Project shall be under the supervision and
control of the City Commission. The City Commission, in accordance with the relevant provisions
of the City Charter, may employ such person or persons in such capacity or capacities as it deems
advisable to carry on the efficient management and operation of the System. The City Commission
may make such rules and regulations as it deems advisable and necessary to assure the efficient
management and operation of the System. The fiscal year of the System shall be the fiscal year of
the City.

        Section 11. Rates and Charges. The rates and charges for service furnished by and the use
of the System and the methods of collection and enforcement of the collection of the rates shall be
those in effect on the date of adoption of this Ordinance.

       Section 12. No Free Service or Use. No free service or use of the System, or service or
use of the System at less than cost, shall be furnished by the System to any person, firm or
corporation, public or private, or to any public agency or instrumentality, including the City.

        Section 13. Fixing and Revising Rates; Rate Covenant. The rates now in effect are
estimated to be sufficient to provide for the payment of the expenses of administration and
operation and such expenses for maintenance of the System as are necessary to preserve the System
in good repair and working order, to provide for the payment of the principal of and interest on the
Bonds and the Junior Lien Bonds as the same become due and payable, and the maintenance of
the reserve therefor and to provide for all other obligations, expenditures and funds for the System
required by law and this Ordinance. In addition, it is agreed that the rates shall be set from time
to time so that there shall be produced each fiscal year Net Revenues in an amount not less than
110% of the principal of and interest on all Bonds coming due in each fiscal year and not less than
100% of the principal of and interest on all Junior Lien Bonds coming due in each fiscal year. The
rates shall be fixed and revised from time to time as may be necessary to produce these amounts,
and it is hereby covenanted and agreed to fix and maintain rates for services furnished by the
System at all times sufficient to provide for the foregoing.

        Section 14. Funds and Accounts; Flow of Funds. The funds and accounts established by
the Outstanding Ordinances are hereby continued, the flow of funds established by the Outstanding
Ordinances, is hereby continued, and the applicable sections of the Outstanding Ordinances,
relating to funds and accounts and flow of funds are incorporated herein by reference as if fully
set forth.

       Section 15. Bond Proceeds. The proceeds of the sale of the Series 2022 Bond shall be
deposited in a bank or banks, designated by the City, qualified to act as depository of the proceeds
of sale under the provisions of Act 94, in an account designated 2022 SANITARY SEWER
SYSTEM PROJECT CONSTRUCTION FUND (the “Construction Fund”). Moneys in the
Construction Fund shall be applied solely in payment of the cost of the Project, including any
engineering, legal and other expenses incident thereto and to the financing thereof.

       Section 16. Bond Form. The Series 2022 Bond shall be in substantially the following form
with such changes or completion as necessary or appropriate to give effect to the intent of this




                                                 7
Ordinance and further subject to such modifications which may be required by the Michigan
Attorney General and the Authority and approved by bond counsel:




                                           8
                               UNITED STATES OF AMERICA
                                  STATE OF MICHIGAN
                                 COUNTY OF MUSKEGON

                                     CITY OF MUSKEGON

     SANITARY SEWER SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2022



REGISTERED OWNER:                     Michigan Finance Authority

PRINCIPAL AMOUNT:                     __________________ Dollars ($__________)

DATE OF ORIGINAL ISSUE:               September 20, 2022


        The CITY OF MUSKEGON, County of Muskegon, State of Michigan (the “City”), for
value received, hereby promises to pay, but only out of the hereinafter described Net Revenues of
the City’s Sanitary Sewer System (hereinafter defined), to the Michigan Finance Authority (the
“Authority”), or registered assigns, the Principal Amount shown above, or such portion thereof as
shall have been advanced to the City pursuant to a Purchase Contract between the City and the
Authority and a Supplemental Agreement by and among the City, the Authority and the State of
Michigan acting through the Department of Environmental Quality, in lawful money of the United
States of America, unless prepaid or reduced prior thereto as hereinafter provided.

        During the time funds are being drawn down by the City under this Bond, the Authority
will periodically provide the City a statement showing the amount of principal that has been
advanced and the date of each advance, which statement shall constitute prima facie evidence of
the reported information; provided that no failure on the part of the Authority to provide such a
statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the
City of its obligation to repay the outstanding principal amount actually advanced, all accrued
interest thereon, and any other amount payable with respect thereto in accordance with the terms
of this Bond.

        The Principal Amount shall be payable on the dates and in the annual principal installment
amounts set forth on Schedule A attached hereto and made a part hereof, as such Schedule may be
adjusted if less than $________ is disbursed to the City or if a portion of the Principal Amount is
prepaid as provided below, with interest on the principal installments from the date each
installment is delivered to the holder hereof until paid at the rate of one and seven-eighths percent
(1.875%) per annum. Interest is first payable April 1, 2023 and semiannually thereafter and
principal is payable on the first day of October commencing October 1, 2024 (as identified in the
Purchase Contract) and annually thereafter.

       Principal installments of this bond are subject to prepayment by the City prior to maturity
only with the prior written consent of the Authority and on such terms as may be required by the
Authority.




                                                 9
        Notwithstanding any other provision of this bond, so long as the Authority is the owner of
this bond, (a) this bond is payable as to principal, premium, if any, and interest at U.S. Bank Trust
Company, National Association or at such other place as shall be designated in writing to the City
by the Authority (the "Authority's Depository"); (b) the City agrees that it will deposit with the
Authority's Depository payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which
any such payment is due whether by maturity, redemption or otherwise; in the event that the
Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day, the
City shall immediately pay to the Authority as invoiced by the Authority an amount to recover the
Authority's administrative costs and lost investment earnings attributable to that late payment; and
(c) written notice of any redemption of this bond shall be given by the City and received by the
Authority's Depository at least 40 days prior to the date on which such redemption is to be made.

                                        Additional Interest

        In the event of a default in the payment of principal or interest hereon when due, whether
at maturity, by redemption or otherwise, the amount of such default shall bear interest (the
“additional interest”) at a rate equal to the rate of interest which is two percent above the
Authority’s cost of providing funds (as determined by the Authority) to make payment on the
bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of
the maximum rate of interest permitted by law. The additional interest shall continue to accrue
until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined
by the Authority) as a consequence of the City’s default. Such additional interest shall be payable
on the interest payment date following demand of the Authority. In the event that (for reasons
other than the default in the payment of any municipal obligation purchased by the Authority) the
investment of amounts in the reserve account established by the Authority for the bonds of the
Authority issued to provide funds to purchase this bond fails to provide sufficient available funds
(together with any other funds which may be made available for such purpose) to pay the interest
on outstanding bonds of the Authority issued to fund such account, the City shall and hereby agrees
to pay on demand only the City’s pro rata share (as determined by the Authority) of such deficiency
as additional interest on this bond.

        For prompt payment of principal and interest on this bond, the City has irrevocably pledged
the revenues of the Sanitary Sewer System of the City, including all appurtenances, extensions and
improvements thereto (the “System”), after provision has been made for reasonable and necessary
expenses of operation, maintenance and administration (the “Net Revenues”), and a statutory
second lien thereon is hereby recognized and created, subject to the senior lien of any additional
bonds of the City hereafter issued by the City, as set forth in the Ordinance (hereinafter defined).
The bonds of this issue are of equal standing and priority of lien as to the Net Revenues with the
City’s Water Supply System Junior Lien Revenue Bonds, Series 2019 and the City’s Water Supply
System Junior Lien Revenue Bonds, Series 2020 (together, the “Outstanding Junior Lien Bonds”)
and any additional bonds hereafter issued by the City of equal standing and priority with the
Outstanding Junior Lien Bonds. The City has reserved the right to issue such additional Bonds
which shall be superior and senior in all respects to the bonds of this issue as to the Net Revenues,
or of equal standing and priority of lien as to the Net Revenues.




                                                 10
         Purchasers of the bonds of this issue, by their acceptance of the bonds of this issue or a
beneficial ownership interest therein, shall be deemed to have consented to the subordination of
their interest in and lien upon the Net Revenues upon the issuance of senior lien bonds subsequent
to the delivery of the bonds of this issue.

       This bond is a single, fully-registered, non-convertible bond in the principal sum indicated
above issued pursuant to Ordinance No. ___ duly adopted by the City Commission of the City,
and the prior ordinances authorizing the issuance of the Outstanding Junior Lien Bonds (together,
the “Ordinances”), and under and in full compliance with the Constitution and statutes of the State
of Michigan, including specifically Act 94, Public Acts of Michigan, 1933, as amended, for the
purpose of paying part of the cost of acquiring and constructing additions, extensions and
improvements to the System.

       For a complete statement of the revenues from which and the conditions under which this
bond is payable, a statement of the conditions under which additional bonds of superior and equal
standing may hereafter be issued and the general covenants and provisions pursuant to which this
bond is issued, reference is made to the above-described Ordinance.

        This bond is a self-liquidating bond, payable, both as to principal and interest, solely and
only from the Net Revenues of the System. The principal of and interest on this bond are secured
by the statutory lien hereinbefore mentioned.

        The City has covenanted and agreed, and does hereby covenant and agree, to fix and
maintain at all times while any bonds payable from the Net Revenues of the System shall be
outstanding, such rates for service furnished by the System as shall be sufficient to provide for
payment of the interest upon and the principal of the bonds of this issue, any additional Bonds, and
any additional Junior Lien Bonds, as and when the same shall become due and payable, and to
maintain a bond redemption fund (including a bond reserve account, if any) therefor, to provide
for the payment of expenses of administration and operation and such expenses for maintenance
of the System as are necessary to preserve the same in good repair and working order, and to
provide for such other expenditures and funds for the System as are required by the Ordinance.

        This bond is transferable only upon the books of the City by the registered owner in person
or the registered owner’s attorney duly authorized in writing, upon the surrender of this bond
together with a written instrument of transfer satisfactory to the transfer agent, duly executed by
the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon
a new bond or bonds in the same aggregate principal amount and of the same maturity shall be
issued to the transferee in exchange therefor as provided in the Ordinance, and upon payment of
the charges, if any, therein prescribed.

       It is hereby certified and recited that all acts, conditions and things required by law to be
done precedent to and in the issuance of this bond have been done and performed in regular and
due time and form as required by law.




                                                11
       IN WITNESS WHEREOF, the City of Muskegon, County of Muskegon, State of
Michigan, by its City Commission has caused this bond to be executed with the manual or
facsimile signatures of its Mayor and its City Clerk and the corporate seal of the City to be
impressed or imprinted hereon, all as of the Date of Original Issue.

                                                  CITY OF MUSKEGON


                                                  By_________________________________
                                                              Mayor
(Seal)


Countersigned:


By____________________________
      City Clerk




                                             12
EGLE Project Number:                 5767-01
EGLE Approved Amt:                   $____________

                                                    SCHEDULE A

          Based on the schedule provided below unless revised as provided in this paragraph, repayment of the
principal of the bond shall be made until the full amount advanced to the City is repaid. In the event the Order of
Approval issued by the Department of Environment, Great Lakes and Energy (the “Order”), approves a principal amount
of assistance less than the amount of the bond delivered to the Authority, the Authority shall only disburse principal
up to the amount stated in the Order. In the event (1) that the payment schedule approved by the City and described
below provides for payment of a total principal amount greater than the amount of assistance approved by the Order
or (2) that less than the principal amount of assistance approved by the Order is disbursed to the City by the Authority,
or (3) that any portion of the principal amount of assistance approved by the Order and disbursed to the City is forgiven
pursuant to the Order, the Authority shall prepare a new payment schedule which shall be effective upon receipt by
the City.

                                Maturity Date                          Principal Amount

                               October 1, 2024
                               October 1, 2025
                               October 1, 2026
                               October 1, 2027
                               October 1, 2028
                               October 1, 2029
                               October 1, 2030
                               October 1, 2031
                               October 1, 2032
                               October 1, 2033
                               October 1, 2034
                               October 1, 2035
                               October 1, 2036
                               October 1, 2037
                               October 1, 2038
                               October 1, 2039
                               October 1, 2040
                               October 1, 2041
                               October 1, 2042
                               October 1, 2043


         Interest on the bond shall accrue on that portion of principal disbursed by the Authority to the City which has
not been forgiven pursuant to the Order from the date such portion is disbursed, until paid, at the rate of 1.875% per
annum, payable April 1, 2023, and semi-annually thereafter.

         The City agrees that it will deposit with the Authority’s Depository, or such other place as shall be designated
in writing to the City by the Authority payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is
due whether by maturity, redemption or otherwise. In the event that the Authority’s Depository has not received the
City’s deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the
Authority an amount to recover the Authority’s administrative costs and lost investment earnings attributable to that
late payment.




                                                           13
        Section 17. Negotiated Sale; Application to EGLE and Authority; Execution of
Documents. The City determines that it is in the best interest of the City to negotiate the sale of
the Series 2022 Bond to the Authority because the Clean Water State Revolving Fund financing
programs provide significant interest savings to the City compared to competitive sale in the
municipal bond market and principal forgiveness. The Authorized Officers are hereby authorized
to make application to the Authority and to the EGLE for placement of the Series 2022 Bond with
the Authority. The actions taken by the Authorized Officers with respect to the Series 2022 Bond
prior to the adoption of this Ordinance are ratified and confirmed. The Authorized Officers are
authorized to execute and deliver the Purchase Contract, the Supplemental Agreement and the
Issuer’s Certificate. Any Authorized Officer is further authorized to execute and deliver such
contracts, documents and certificates as are necessary or advisable to qualify the Series 2022 Bond
for the Clean Water State Revolving Fund. Prior to the delivery of the Series 2022 Bond to the
Authority, any Authorized Officer is hereby authorized to make such changes to the form of the
Series 2022 Bond contained in Section 16 of this Ordinance as may be necessary to conform to
the requirements of Act 227, Public Acts of Michigan 1985, as amended (“Act 227”), including,
but not limited to changes in the principal maturity and interest payment dates and references to
additional security required by Act 227.

        Section 18. Covenant Regarding Tax Exempt Status of the Bonds. The City shall, to the
extent permitted by law, take all actions within its control necessary to maintain the exemption of
the interest on the Series 2022 Bond from general federal income taxation (as opposed to any
alternative minimum or other indirect taxation) under the Internal Revenue Code of 1986, as
amended (the “Code”), including, but not limited to, actions relating to any required rebate of
arbitrage earnings and the expenditure and investment of Series 2022 Bond proceeds and moneys
deemed to be Bond proceeds.

       Section 19. Approval of Bond Counsel. The representation of the City by Miller, Canfield,
Paddock and Stone, P.L.C. (“Miller Canfield”), as bond counsel is hereby approved,
notwithstanding the representation by Miller Canfield of the Authority in connection with its
financing programs and borrowings.

       Section 20. Approval of Bond Details. The Authorized Officers are each hereby
authorized to adjust the final bond details set forth herein to the extent necessary or convenient to
complete the transaction authorized herein, and in pursuance of the foregoing is authorized to
exercise the authority and make the determinations authorized pursuant to Section 7a(1)(c) of Act
94, including but not limited to determinations regarding interest rates, prices, discounts,
maturities, principal amounts, denominations, dates of issuance, interest payment dates,
redemption rights, the place of delivery and payment, and other matters, provided that the principal
amount of Series 2022 Bond issued shall not exceed the principal amount authorized in this
Ordinance, the interest rate per annum on the Series 2022 Bond shall not exceed one and seven-
eighths percent (1.875%) per annum, and the Series 2022 Bond shall mature in not more than
twenty (20) annual installments.

        Section 21. Savings Clause. All ordinances, resolutions or orders, or part thereof, in
conflict with the provisions of this Ordinance are, to the extent of such conflict, repealed.




                                                 14
        Section 22. Severability; Paragraph Headings; and Conflict. If any section, paragraph,
clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph,
clause or provision shall not affect any of the other provisions of this Ordinance. The paragraph
headings in this Ordinance are furnished for convenience of reference only and shall not be
considered to be part of this Ordinance.

        Section 23. Publication and Recordation. This Ordinance shall be published in full in the
Muskegon Chronicle, a newspaper of general circulation in the City qualified under State law to
publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of
the City and such recording authenticated by the signatures of the Mayor and the City Clerk.

       Section 24. Effective Date. This Ordinance shall be effective upon its adoption and
publication.


ADOPTED AND SIGNED THIS 9th day of August, 2022.


                                               Signed____________________________________
                                                        Mayor



                                               Signed____________________________________
                                                        City Clerk

I HEREBY CERTIFY that the foregoing constitutes a true and complete copy of an Ordinance
duly adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan,
at a regular meeting held on the 9th day of August, 2022, and that the meeting was conducted and
public notice of the meeting was given pursuant to and in full compliance with the Open Meetings
Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of the meeting were kept
and will be or have been made available as required by the Act.

      I further certify that the following Members were present at the meeting:
__________________________________________________________________________ and
that         the          following        Members         were         absent:
________________________________________________________.

       I further certify that Member _________________ moved for adoption of the Ordinance,
and that the motion was supported by Member _________________.

      I further certify that the following Members voted for adoption of the Ordinance:
__________________________________________________________________________ and
that  the    following    Members      voted against   adoption   of   the   Ordinance:
________________________________.




                                                  15
       I further certify that the Ordinance has been recorded in the Ordinance Book and that such
recording has been authenticated by the signatures of the Mayor and the City Clerk.



                                                    ____________________________________
                                                                City Clerk
39461144.1/063684.00056




                                               16
                                                                                                           MICHIGAN
Founded in 1852                                                                                              ILLINOIS
by Sidney Davy Miller                                                                                      NEW YORK
                                                                                                                 OHIO
                                                                                                     WASHINGTON, D.C.
                                                                                                             CANADA
                                                                                                               CHINA
PATRICK F. MCGOW                       Miller, Canfield, Paddock and Stone, P.L.C.                            MEXICO
TEL (313) 496-7684                            150 West Jefferson, Suite 2500                                 POLAND
FAX (313) 496-8450                                                                                             QATAR
                                                Detroit, Michigan 48226
E-MAIL mcgow@millercanfield.com
                                                  TEL (313) 963-6420
                                                  FAX (313) 496-7500
                                                 www.millercanfield.com


                                                    August 2, 2022

         Mr. Ken Grant
         Finance Director
         City of Muskegon
         933 Terrace Street
         Muskegon MI 49443-0536

                  Re:     City of Muskegon
                          $6,640,000 Sanitary Sewer System Junior Lien Revenue Bonds, Series 2022
                          (CWSRF Project)
                          $5,320,000 Water Supply System Junior Lien Revenue Bonds, Series 2022A
                          (DWSRF Water Main Project)
                          $3,560,000 Water Supply System Junior Lien Revenue Bonds, Series 2022B
                          (DWSRF Lead Service Line Replacement Project)

         Dear Ken:

                I have enclosed an Ordinance authorizing the issuance of the above-captioned Sanitary
         Sewer System Revenue Bonds and an Ordinance authorizing the issuance of the above-captioned
         Water Supply System Revenue Bonds to be considered for approval by the City Commission at its
         meeting on August 11th. The Sewer Bonds and the Water Bonds are to be sold through the
         Michigan Finance Authority’s (“MFA”) 4.5 Quarter Clean Water State Revolving Fund Program
         and Drinking Water State Revolving Fund Program, respectively, scheduled to close on September
         20th.

                  Sewer Bonds

                 The Sewer Bond Ordinance authorizes the issuance of the Bonds in an amount not to
         exceed $6,640,000 for the sewer projects although the current estimated sizing is around
         $6,035,000. The Ordinance provides flexibility for the actual size of the Bond issue to be reduced
         prior to closing based on the actual construction bids and final approved costs. In addition, the
         City will receive principal forgiveness for this project which will reduce the amount that needs to
         be paid back to the MFA.

                The Sewer Bond Ordinance authorizes the issuance of the Series 2022 Bonds, which are
         payable from the Net Revenues of the City’s Sanitary Sewer System. The Bonds are expected to
         be sold to the MFA and payable in 20 annual principal installments at an interest rate of 1.875%.
                             MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.

 Mr. Ken Grant                                    -2-                                 August 2, 2022


The Bonds are being issued as junior lien bonds which are of equal standing with the Series 2019
Bonds and Series 2020 Bonds previously issued through the SRF for sewer improvements.

       Water Bonds

        The Water Bond Ordinance authorizes the issuance of the Bonds in an amount not to
exceed $8,880,000 for the water projects in two separate series. The Series 2022A Bond is for the
Water Main Replacement project in an amount not to exceed $5,320,000, although the current
estimated sizing is around $4,836,000. The Series 2022B Bond is for the Lead Service Line
Replacement project in an amount not to exceed $3,560,000, although the current estimated sizing
is around $3,240,000. Again, the Ordinance provides flexibility for the actual size of the Bond
issue to be reduced prior to closing based on the actual construction bids and final approved costs.
In addition, the City will receive principal forgiveness for these projects which will reduce the
amount that needs to be paid back to the MFA. The Series 2022B Bonds for Lead Service Line
Replacements are mostly funded by the Water Infrastructure Fund Transfer Act (aka Booker Grant
funds) and $3,000,000 will be forgiven after disbursement so there will be repayment of only about
$240,000 of principal on that loan.

       The Water Bond Ordinance authorizes the issuance of the Series 2022 Bonds, which are
payable from the Net Revenues of the City’s Water Supply System. The Bonds are expected to
be sold to the MFA and payable in 20 annual principal installments at an interest rate of 1.875%.
The Bonds are being issued as junior lien bonds which are of equal standing with the Series 2004
Bonds, Series 2019 Bonds and Series 2020 Bonds previously issued through the DWRF for water
improvements.

       Both Water and Sewer Bonds

       Both Ordinances also authorize various City officials to take the necessary actions to
execute and deliver the Bonds and all related documents, approve the final size of the Bonds and
contains the necessary items required by the Revenue Bond Act, Act 94 of 1933.

        Pursuant to the Revenue Bond Act, the Ordinances may be adopted in one reading,
regardless of any contrary provision in the City’s ordinance adoption procedures. Each Ordinance
is required to be published once in full in your local newspaper (Muskegon Chronicle) after its
adoption. There are no restrictions or requirements on the size of the publication, so it can be as
small as possible. Upon adoption by the City Commission, we would appreciate receiving three
(3) certified copies of the Ordinance and three (3) Affidavits of Publication of the Ordinance for
bond transcripts.

        The Part III application with the construction bids and tentative contract approval is due on
August 17th. There will be a conference call with MFA, EGLE and City officials on August 23/24
which we will participate in, to make final arrangements relating to the Bond terms. At that time,
the final bond sizes will be determined, and we will prepare the necessary documents to be signed
                             MILLER, CANFIELD, PADDOCK AND STONE, P.L.C.

 Mr. Ken Grant                                    -3-                               August 2, 2022


by various City officials after that date regarding the sale and delivery of the Bonds. The EGLE
Order of Approval is expected to be issued on August 29th. The closing for the Bonds will be
September 20th and the City can begin requesting draws on the Bonds after that date.

         If you or anyone copied have any questions, please do not hesitate to contact me.

                                       Very truly yours,

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




                                        By:
                                              Patrick F. McGow
Enclosure
cc:    LeighAnn Mikesell
       Leo Evans
       Barbara Marczak
       Warren Creamer




39464098.1/063684.00055

Top of Page


Sign up for City of Muskegon Emails