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City of Muskegon City Commission Meeting Agenda September 26, 2023, 5:30 pm Muskegon City Hall 933 Terrace Street, Muskegon, MI 49440 AMERICAN DISABILITY ACT POLICY FOR ACCESS TO OPEN MEETINGS OF THE CITY OF MUSKEGON AND ANY OF ITS COMMITTEES OR SUBCOMMITTEES To give comment on a live-streamed meeting the city will provide a call-in telephone number to the public to be able to call and give comment. For a public meeting that is not live-streamed, and which a citizen would like to watch and give comment, they must contact the City Clerk’s Office with at least a two-business day notice. The participant will then receive a zoom link which will allow them to watch live and give comment. Contact information is below. For more details, please visit: www.shorelinecity.com The City of Muskegon will provide necessary reasonable auxiliary aids and services, such as signers for the hearing impaired and audio tapes of printed materials being considered at the meeting, to individuals with disabilities who want to attend the meeting with twenty-four (24) hours’ notice to the City of Muskegon. Individuals with disabilities requiring auxiliary aids or services should contact the City of Muskegon by writing or by calling the following: Ann Marie Meisch, MMC – City Clerk, 933 Terrace Street, Muskegon, MI 49440; 231-724-6705; clerk@shorelinecity.com Pages 1. Call To Order 2. Prayer 3. Pledge of Allegiance 4. Roll Call 5. Honors, Awards, and Presentations 5.a Commendation Letter Presentation to Muskegon Fire Department from Lakeside Aerie #3306 5.b Memorial for Larry Spataro 6. Public Comment on Agenda Items 7. Consent Agenda 7.a Approval of Minutes - City Clerk 1 7.b Fireworks Display for NYE Ball Drop - City Clerk 16 7.c Amendment to the Zoning Ordinance - Residential Setback Requirements - 2nd 23 Reading - Planning 7.d 2023 Justice Assistance Grant - Police Department 30 7.e Former Employee Health Refund Calculation - City Manager 35 7.f Former General Fund Transfers for FY2022-23 - Finance 37 7.g Sale of 1530 Hoyt Street - Manager's Office 38 7.h Sale of 1647 Terrace Street - Manager's Office 46 7.i First Amendment to Real Estate Purchase Agreement DMDC2-Splash Pad - 54 Economic Development 7.j PM Restroom MNRTF Grant Agreement - Parks & Recreation 56 7.k Transmission Main Water Meter - DPW - Water Filtration 68 7.l Filter Plant Cell Tower Verizon Lease - DPW 73 7.m Zencity Contract Approval - Manager's Office 90 7.n Community Relations Committee Recommendations - City Clerk 8. Public Hearings 8.a 2022 Consolidated Annual Performance Evaluation Report (CAPER) Hearing - 96 Community & Neighborhood Services 9. Unfinished Business 10. New Business 10.a Rezoning of Properties in the Angel, McLaughlin, and Jackson Hill 108 Neighborhoods - Planning 10.b BSA Cloud Software - Information Technology/Finance Division 118 11. Any Other Business 12. Public Comment on Non-Agenda items 13. Closed Session 13.a Pending Litigation 14. Adjournment Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 9/26/2023 Title: Approval of Minutes Submitted By: Ann Marie Meisch, MMC Department: City Clerk Brief Summary: To approve the minutes of the September 11, 2023 Worksession and September 12, 2023 Regular Meeting. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: Amount Requested: Budgeted Item: Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: Yes No N/A Recommended Motion: To approve the minutes. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review City of Muskegon Work Session Minutes September 11, 2023, 5:30 pm Muskegon City Hall 933 Terrace Street, Muskegon, MI 49440 Present: Mayor Ken Johnson Commissioner Rachel Gorman Commissioner Rebecca St.Clair Commissioner Eric Hood Vice Mayor Willie German, Jr. Commissioner Michael Ramsey Commissioner Teresa Emory Staff Present: City Manager Jonathan Seyferth City Clerk Ann Meisch Deputy City Clerk Kimberly Young 2023-94 1. Call to Order Mayor Ken Johnson called the Worksession meeting to order at 5:33 p.m. 2. New Business 2.a Remarks from the Mayor Regarding 9-11 Commemoration Mayor Johnson attended a 9-11 Commemoration Event at the USS Silversides Museum. He shared excerpts of the some of the remarks he gave at the event. A moment of silence was observed. Never Forget. 2.b Former Employee Health Refund Calculation Traditionally (and per all 5 union contracts) employees paid 10% of their health benefits (after 2017 this included three components Health Insurance, Co- insurance, and Deductibles). At some point, an error in the calculation occurred, and employees began paying more than 10%. This was brought to our attention 1 in early 2023, and the insurance contributions have been corrected for all active employees. The commission must now consider addressing this matter with former team members who left employment between the error starting and being corrected. Starting in 2017 the City began using three different factors to determine employee contributions to their insurance premiums (a percent of actual monthly premiums and a percent of City Paid Benefits (co-insurance & deductibles)). Prior to 2017, just insurance premiums were used as a factor. This change was made because of cost increases in co-insurance and deductibles. Sometime after 2017 a calculation error occurred and employee contributions increased above the 10% level. Earlier this year the City Commission approved repayment of benefit overpayments to current employees. The administration is now asking the Commission to consider reimbursement of the overpayment to former employees who left the City between 2017 and the end of 2022 who also overpaid insurance premiums. During that time period, we had 58 former team members who took health insurance and overpaid. Individual overpayment ranges from about $3,200 to less than $10. The total cost to repay these former team members the overpayment is $51,696.83. AMOUNT REQUESTED: $52,696.83 FUND OR ACCOUNT: Various - The appropriate departments and fund will cover this cost. City Manager Jonathan Seyferth provided an overview of this item. Multiple departments and multiple funds are impacted by this overpayment and it has taken some time to calculate all of the adjustments for those that have left the employment of the City. This item will appear on the September 26, 2023 Agenda for consideration. 2.c Cost Recovery Ordinance 22 - Public Safety Cost Recovery Ordinance Section 22, for Department of Public Safety. This Chapter is adopted to enable the City of Muskegon to bill for and collect “cost recovery charges”, as defined herein, from those receiving direct benefits from fire department services, police department services, public works, and 2 other emergency services provided by the City compared to the fee chart. It is expressly the purpose of this Chapter to provide for and promote the safety and welfare of the general public. FUND OR ACCOUNT: 101-336-971 Chief Kozal spoke about the proposed cost recovery ordinance, explaining how it would be beneficial to the city to help recover some of the cost of police, fire and DPW services in certain situations, on a case-by case basis. Discussion took place and some adjustments will be made to portions of the proposed ordinance. This will be on the agenda at a later regular meeting for further consideration. 2.d Amendment to Ride Muskegon Agreement - Manager's Office City staff is working with Ride Muskegon, LLC on developing an amendment to their operating agreement. The final operating agreement was approved in April of 2022, but the owner was unable to receive and place scooters into operation. With a new partner and the ability to purchase scooters, the owner is requesting an amendment to the agreement to do the following. Reset the initial term for the duration of January 1, 20024 to December 31, 2024 Update the Non-Parking Zone Fee to $50 each occurrence It is important to note that there is potential for the agreement to be in effect for 25 years. During that time, Ride Muskegon, LLC has exclusive use of the parking locations included in the attachments. No competitor can locate on city property within 500 feet of any of the parking locations for the entire term of the agreement. Marked up versions of the approved documents are included in the packet. Please note the highlighted sections and the comments provided. Deputy City Manager, Leigh Ann Mikesell, reviewed proposed changes to the Ride Muskegon Agreement. Changes are being requested after implementation due to unforeseen circumstances discovered after implementation. Discussion took place and the consensus of the commission is to terminate the agreement. 2.e Rezoning Update - Planning 3 On Thursday, September 14, the Planning Commission will hear the following case: Hearing, Case 2023-23: Staff-initiated request to rezone all of the properties zoned R-1, R-2, R-3, and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to FBC-UR. Mike Franzak, Planning Manager, explained that the McLaughlin, Angell, and Jackson Hill Neighborhoods are being targeted for rezoning to Form Based Code in order to expand the types of housing choices that can be built in those neighborhoods. Due to the amount of public outreach that has already been done in these neighborhoods, they have been selected for potential rezoning. The Planning Department is focused on finding housing options that fit in to these neighborhoods and wants to work closely with them to move forward with infill housing. The proposed rezoning item is scheduled for a Public Hearing with the Planning Commission on September 14, 2023. More housing options help lead to more affordable housing. Discussion took place regarding the proposed rezoning. Economic Development Director, Jake Eckholm, also addressed the commission and provided more context supporting the proposed zoning changes. Adopting Form Based Code zoning in the McLaughlin, Angell, and Jackson Hill Neighborhoods would allow for duplex, triplex, and quadplex units as well as the ability to build single family homes on smaller lots as well as several other changes to allow more options for construction. More discussion took place. This item will be considered on September 26, 2023. 2.f Driver's Licenses for Undocumented Individuals - Manager's Office The state legislature is currently considering the Drive SAFE (Safety, Access, Freedom, and the Economy) Act, which would provide undocumented Michigan Residents with the option to obtain a Michigan Driver's license. The City Commission is being asked to consider approving a resolution in support of this legislation that can be shared with State Legislators. Commissioner Ramsey provided an overview of the status of the ability for non- citizens to obtain Michigan Driver's Licenses. He is seeking support for a resolution of support for the Drive SAFE Act. The resolution will be on the agenda at a later date. 4 2.g Shoreline Drive Road Diet Study DPW Director Dan VanderHeide provided an update, from an engineering standpoint things are going well - public feedback has been coming in. We have implemented lane closures and landscaping. The other two elements of the pilot have not been implemented but work continues to get this done. Pilot will run through the end of October. Discussion took place regarding the elements of the pilot, FAQs are being updated as more comments and questions come in from the public. 3. Public Comment No public comment was received. 4. Adjournment The Work Session meeting adjourned at 8:00. _________________________ Respectfully Submitted, Ann Marie Meisch, MMC - City Clerk 5 City of Muskegon City Commission Meeting Minutes September 12, 2023, 5:30 pm Muskegon City Hall 933 Terrace Street, Muskegon, MI 49440 Present: Mayor Ken Johnson Commissioner Rachel Gorman Commissioner Rebecca St.Clair Commissioner Eric Hood Commissioner Michael Ramsey Commissioner Teresa Emory Absent: Vice Mayor Willie German, Jr. Staff Present: City Manager Jonathan Seyferth City Clerk Ann Meisch City Attorney John Schrier Deputy City Clerk Kimberly Young 1. Call To Order Mayor Johnson called the Muskegon City Commission meeting to order at 5:30 p.m. 2. Prayer Dr. Rob Renberg, Anchor Point Bible Church, opened the meeting with prayer. 3. Pledge of Allegiance The Pledge of Allegiance to the Flag was recited by the Commission and the public. 4. Roll Call As recorded above 5. Honors, Awards, and Presentations 1 6. Public Comment on Agenda Items Public comments were received. 7. Consent Agenda Action No. 2023-95 Motion by: Commissioner Ramsey Second by: Commissioner St.Clair To accept the consent agenda as presented, minus item 7e, 7f, and 7g. 7.a Approval of Minutes - City Clerk To approve the minutes of the August 22, 2023 Regular Meeting. STAFF RECOMMENDATION: To approve the minutes. 7.b Rezoning of 417 Jackson Ave - 2nd Reading - Planning Staff-initiated request to rezone the property at 417 Jackson Ave from R-1, Low Density Single-Family Residential to Form Based Code, Neighborhood Core. The Planning Commission unanimously recommended approval of the rezoning at their August 10 meeting. STAFF RECOMMENDATION: To approve the request to rezone property at 417 Jackson Ave from R-1, Low Density Single-Family Residential to Form Based Code, Neighborhood Core. 7.c Rezoning of 1225 E Laketon Ave - 2nd Reading - Planning Request to rezone the property at 1225 E Laketon Ave from I-2, General Industrial to B-4, General Business, by Tread Monkey, LLC. The Planning Commission unanimously recommended approval of the rezoning at their August 10 meeting. STAFF RECOMMENDATION: To approve the request to rezone the property at 1225 E Laketon Ave from I-2, General Industrial to B-4, General Business. 7.d Rezoning of several properties on Myrtle Ave, Allen Ave, and Jay St in the Angell Neighborhood - 2nd Reading - Planning Request to rezone the following parcels from R-3, High Density Single Family Residential to Form Based Code, Neighborhood Core: 139 Myrtle 2 Ave; 140/148/158/168/174/186 Allen Ave, 159/169/185 Amity Ave; and 923 Jay St, by Spire Development. The Planning Commission unanimously recommended approval of the rezoning at their August 10 meeting. STAFF RECOMMENDATION: To approve the request to rezone 139 Myrtle Ave; 140/148/158/168/174/186 Allen Ave, 159/169/185 Amity Ave; and 923 Jay St from R-3, High Density Single Family Residential to Form Based Code, Neighborhood Core. 7.h Community Relations Committee Recommendations - City Clerk To concur with the CRC Recommendations on the following boards and commissions removals and appointments. Consider approval of the following CRC Recommendations: Accept resignation – Michael Johnson, DDA/BRA member with property interest, term exp. 01/31/25 Appoint members – Shaundrica Roberts, Citizen’s Police Review Board Citizen AL, term exp.01/31/25 Shonie Blake, Planning Commission, Citizen, term exp. 01/31/26 Mary Louise LaBelle, Civil Service, Citizen, term exp .01/31/25 Dan Rinsema-Sybenga, CDBG Citizen’s District Council, Ward 2 Citizen, term exp. 01/31/24 STAFF RECOMMENDATION: To concur with the resignation and appointment recommendations of the CRC. 7.e Firefighting Turnout Equipment - Public Safety The Fire Department is seeking approval to purchase firefighting turnout gear to replace worn and aging equipment. The Fire Department is seeking approval to purchase thirteen (13) sets of firefighting turnout gear. Each set is comprised of a coat and pants with suspenders. The current sets are work and contain PFAS materials that 3 are harmful to firefighters. The waterproofing materials in firefighting turnouts were found to contain PFAS. The turnout gear vendor, MES, allowed us the same price break the City of Grand Rapids received for their recent purchase of turnout gear. Budget amount of $66,300. We received pricing from MES, Edarely, and The Fire Store. MES was lowest bud and meeting our specifications. AMOUNT REQUESTED: $41,860.00 - Budgeted FUND OR ACCOUNT: 101-336-977 STAFF RECOMMENDATION: To approve staff to purchase thirteen (13) sets of firefighting turnout gear from MES of Sanford Michigan. Action No. 2023-96(e) Motion by: Commissioner Ramsey Second by: Commissioner St.Clair To approve staff to purchase thirteen (13) sets of firefighting turnout gear from MES of Sanford Michigan. Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Commissioner Hood, Commissioner Ramsey, and Commissioner Emory Absent (1): Vice Mayor German MOTION PASSES (6 to 0) 7.f User Agreement - Muskegon YMCA - Parks & Recreation Staff is requesting the approval of the City of Muskegon's agreement with the Muskegon YMCA for usage of Parks & Recreation facilities. The Muskegon YMCA has requested to run various health & wellness programs at Smith-Ryerson and McGraft Park. These programs will run intermittently through the end of August 2024. STAFF RECOMMENDATION: Authorize staff to enter into an agreement with our strategic partner, Muskegon YMCA. Action No. 2023-96(f) Motion by: Commissioner Ramsey Second by: Commissioner Emory 4 To authorize staff to enter into an agreement with our strategic partner, Muskegon YMCA. Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Commissioner Hood, Commissioner Ramsey, and Commissioner Emory Absent (1): Vice Mayor German MOTION PASSES (6 to 0) 7.g Laketon-Lakeshore Trail MNRFT Resolution - Public Works Staff is seeking a formal resolution of support to apply for a grant from the Michigan Natural Resources Trust Fund (MNRTF) for the Laketon/Lakeshore Trail Connector (LLTC) Project. Staff is seeking funds through two programs to provide the base funding for construction of a new non-motorized trail named the Laketon- Lakeshore Trail Connector (LLTC). The trail would be constructed in the road right-of-way along Sanford Street and Terrace Street between Laketon Avenue and Shoreline Drive linking the Laketon Trail and the Lakeshore Trail. Grant funding is being pursued through two programs: MDOT Transportation Alternatives Program (TAP) – Staff has been engaging with MDOT staff and has received encouragement that this project could see funding from this program. Michigan Natural Resources Trust Fund (MNRTF) – Staff has had preliminary conversation with MDNR staff encouraging an application for $300,000 from this program. If successful, the funding for about 75% of the construction cost could be secured from grant funding. Funds are targeted in the 2025 state fiscal year based on advice from grant staff at MDOT and MDNR. STAFF RECOMMENDATION: To approve the resolution of support for the MNRTF grant application for the Laketon-Lakeshore Trail Connector. Action No. 2023-96(g) Motion by: Commissioner St.Clair Second by: Commissioner Ramsey 5 To approve the resolution of support for the MNRTF grant application for the Laketon-Lakeshore Trail Connector. Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Commissioner Hood, Commissioner Ramsey, and Commissioner Emory Absent (1): Vice Mayor German MOTION PASSES (6 to 0) 8. Public Hearings 8.a Approval of the Lakeside Business Improvement District Special Assessment - Economic Development The Lakeside Business Improvement District is requesting a special assessment for three more years starting in January of 2024. Funds from the Lakeside BID assessment in 2021-2023 has allowed for the BID to cover items that keep the integrity of the business district. Funds have been used to cover snow removal, Christmas decorations, landscaping and maintenance, Lakeside events, and advertisements in the Visitors Guide. In order to continue these services, the Lakeside BID has requested a final three-year assessment at a 20% reduction for 2024-2026, continuing with the current district boundaries. Class A properties will have a per parcel rate of $0.04 per square foot of lot size for a Commercial Property, not to exceed $1,600, and $0.02 per square foot of lot size for an Industrial, Automotive or Utility Property, not to exceed $1,600. The special assessments will be in the winter tax bills. After the additional three years is complete, the BID will transition into the CIA. City staff has provided a Special Assessment Packet that outlines the overview of the request, a letter from the City of Muskegon Assessor, the budget recommendation and explanation, and the properties included in the assessment. City staff has introduced the special assessment at the City Commission meeting on August 7th, 2023. The Public Hearing was scheduled on August 22, but after comments regarding short term rentals, city staff has updated the special assessment documents, tax rolls and have resent 6 public hearing notices and letters to commercial properties including the short-term rentals in the district. STAFF RECOMMENDATION: To close the public hearing and approve the resolution of the Establishment of the Lakeside BID Special Assessment District for 2024-2026 as presented and authorize the Mayor and City Clerk to sign and appoint two commissioners to review the special assessment tax rolls. PUBLIC HEARING COMMENCED: No comments were received. Action No. 2023-97 Motion by: Commissioner Hood Second by: Commissioner Ramsey To close the public hearing and approve the resolution of the Establishment of the Lakeside BID Special Assessment District for 2024- 2026 as presented and authorize the Mayor and City Clerk to sign and appoint two commissioners to review the special assessment tax rolls. Mayor appoints Commissioner Emory and Commissioner Ramsey. Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Commissioner Hood, Commissioner Ramsey, and Commissioner Emory Absent (1): Vice Mayor German MOTION PASSES (6 to 0) 9. Unfinished Business 10. New Business 10.a City ARPA Community Grant - Pioneer Resources, Inc. -Manager's Office - REMOVED PER STAFF REQUEST *A Conflict of Interest Letter was signed by Commissioner Rachel Gorman related to this item. The Conflict of Interest statement was posted to the City's website and City's Facebook page on August 10, 2023. https://muskegon-mi.gov/notice-of-conflict-of-interest/ 10.b Master Plan Adoption - Planning 7 Request to approve the resolution adopting the new master plan. The plan can be viewed here. The Planning Commission unanimously recommended approval of the plan at their August 31 special meeting. STAFF RECOMMENDATION: To approve the resolution for the adoption of the Master Plan and Future Land Use Map as presented. Planning Manager Mike Franzak provided information about the work that went into creating this Master Plan and Future Land Use Map. Jamie Pesch, Planner II, provided an brief presentation of the proposed Master Plan & Future Land Use Map. Action No. 2023-98(b) Motion by: Commissioner Ramsey Second by: Commissioner Hood To approve the resolution for the adoption of the Master Plan and Future Land Use Map as presented. Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Commissioner Hood, Commissioner Ramsey, and Commissioner Emory Absent (1): Vice Mayor German MOTION PASSES (6 to 0) 11. Any Other Business Commissioner Ramsey raised the issue of mute swans on Muskegon Lake, other municipalities have asked him about it. This topic has been raised and other municipalities have passed resolutions, we will be addressing the issue soon. Mayor Johnson encouraged citizens to review the City's Master Plan document on the city's website or in the City Clerk's Office. Commissioner St.Clair acknowledged the IT department for their efforts in making an interactive map available. The map shows residents what Ward they reside in and informs as to which elected officials represent them. The tool was implemented by the City's IT department along with Muskegon County GIS. Mayor Johnson let everyone know that park parties are continuing to help get feedback on what residents want to see done at the parks. 12. Public Comment on Non-Agenda items 8 Public comments were received. 13. Closed Session 14. Adjournment The City Commission meeting adjourned at 6:45 p.m. Motion by: Commissioner St.Clair Second by: Commissioner Hood To adjourn. _________________________ Respectfully Submitted, Ann Marie Meisch, MMC - City Clerk 9 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 9/26/2023 Title: Fireworks Display for NYE Ball Drop Submitted By: Ann Meisch Department: City Clerk Brief Summary: Pyrotecnico is requesting approval of a fireworks display permit for January 1, 2024, in a parking lot between 3rd and 4th street, west of Shoreline Drive. The fire Marshall will inspect the fireworks on the day of the event. Contingent upon approval of insurance. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: Action Item 2022 – 1.4 Proceed with events and activities Amount Requested: 0 Budgeted Item: Yes No N/A Fund(s) or Account(s): N/A Budget Amendment Needed: Yes No N/A Recommended Motion: To approve the fireworks display permit for Pyrotecnico, contingent upon inspection of the fireworks and approval of the insurance. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review DATE (MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 9/19/2023 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Acrisure, LLC dba Britton Gallagher & Associates PHONE FAX One Cleveland Center, Floor 30 (A/C, No, Ext): 216-658-7100 (A/C, No): 216-658-7101 E-MAIL 1375 East 9th Street ADDRESS: info@brittongallagher.com Cleveland OH 44114 INSURER(S) AFFORDING COVERAGE NAIC # INSURER A : Everest Indemnity Insurance Co. 10851 2299 INSURED INSURER B : Everest Denali Insurance Company 16044 Pyrotecnico Fireworks Inc. P.O. Box 149 INSURER C : Arch Speciality Ins Co 21199 299 Wilson Road INSURER D : Continental Indemnity Company 28258 New Castle PA 16103 INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: 519285545 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS A GENERAL LIABILITY Y Y SI8ML00891-231 1/14/2023 10/14/2023 EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED X COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence) $ 500,000 CLAIMS-MADE X OCCUR MED EXP (Any one person) $ PERSONAL & ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 2,000,000 PRO- POLICY X JECT LOC $ B AUTOMOBILE LIABILITY Y Y SI8CA00141-231 1/14/2023 10/14/2023 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 X ANY AUTO BODILY INJURY (Per person) $ ALL OWNED SCHEDULED BODILY INJURY (Per accident) $ AUTOS AUTOS X X NON-OWNED PROPERTY DAMAGE $ HIRED AUTOS AUTOS (Per accident) $ C UMBRELLA LIAB X OCCUR Y Y UXP1035252-03 1/14/2023 10/14/2023 EACH OCCURRENCE $ 4,000,000 X EXCESS LIAB CLAIMS-MADE AGGREGATE $ 4,000,000 DED RETENTION $ $ D WORKERS COMPENSATION Y 82-872096-04-33 6/7/2023 6/7/2024 X WC STATU- OTH- AND EMPLOYERS' LIABILITY TORY LIMITS ER Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 A Excess Liability #2 Y Y SI8EX01314-231 1/14/2023 10/14/2023 Each Occ/ Aggregate $5,000,000 B SI8ML00891-231 1/14/2023 1/14/2024 Total Limits $10,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) Additional Insured extension of coverage is provided by above referenced General Liability policy where required by written agreement. FIREWORKS DISPLAY DATE: December 31, 2023 LOCATION: Parking Lot @ 896 4th Street - Muskegon, MI 49441 ADDITIONAL INSURED: Lakeshore Legacy Project; City of Muskegon, all elected and appointed officials, all employees and volunteers, all boards, commissions, and/or authorities and board members, including employees and volunteers thereof CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. Lakeshore Legacy Project, Inc. 851 W. Laketon Ave. Suite D AUTHORIZED REPRESENTATIVE Muskegon MI 49441 © 1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD Lakeshore Legacy Project Pyrotecnico Fireworks Inc. Muskegon NYE Ball Drop 3/25/2023 Michael Falk 210’ No spectators inside the RED Safety Circle during the display. All roads remain OPEN at all times X Ball drop Launch Location Setup area: 50’ X 50’ Radius from setup area: 210’ The LEGISLATIVE BODY OF CITY, VILLAGE OR TOWNSHIP BOARD will not discriminate against any individual or group because of race, sex, religion, age, national origin, color, marital status, disability, or political beliefs. If you Authority: 2011 PA 256 need assistance with reading, writing, hearing, etc., under the Americans with Disabilities Act, you may make your needs known to this Legislative Body of City, Village or Township Board. TYPE OF PERMIT(S) (Select all applicable boxes) Agricultural or Wildlife Fireworks Articles Pyrotechnic Display Fireworks Public Display Private Display Special Effects Manufactured for Outdoor Pest Control or Agricultural Purposes NAME OF APPLICANT ADDRESS OF APPLICANT AGE OF APPLICANT 18 YEARS OR OLDER Pyrotecnico Fireworks, Inc. 299 Wilson Rd, New Castle, PA 16101 X YES NO NAME OF PERSON OR RESIDENT AGENT REPRESENTING ADDRESS PERSON OR RESIDENT AGENT REPRESENTING CORPORATION, LLC, DBA OR OTHER CORPORATION, LLC, DBA OR OTHER Stephen Vitale 299 Wilson Rd, New Castle, PA 16101 IF A NON-RESIDENT APPLICANT (LIST NAME OF MICHIGAN ATTORNEY ADDRESS (MICHIGAN ATTORNEY OR MICHIGAN RESIDENT TELEPHONE NUMBER OR MICHIGAN RESIDENT AGENT) AGENT) Michael Falk 4369 E Summit Woods Dr NE, Rockford, MI 49341 616.427.0377 NAME OF PYROTECHNIC OPERATOR ADDRESS OF PYROTECHNIC OPERATOR AGE OF PYROTECHNIC OPERATOR 18 YEARS OR OLDER Jeff Yakes 4369 E Summit Woods Dr NE, Rockford, MI 49341 X YES NO NO. YEARS EXPERIENCE NO. DISPLAYS WHERE 13 years 40+ displays Michigan, Missouri NAME OF ASSISTANT ADDRESS OF ASSISTANT AGE OF ASSISTANT 18 YEARS OR OLDER Greg Peters 4369 E Summit Woods Dr NE, Rockford, MI 49341 X YES NO NAME OF OTHER ASSISTANT ADDRESS OF OTHER ASSISTANT AGE OF OTHER ASSISTANT 18 YEARS OR OLDER X YES NO EXACT LOCATION OF PROPOSED DISPLAY Parking lot between 3rd and 4th streets, west of Shoreline Drive DATE OF PROPOSED DISPLAY TIME OF PROPOSED DISPLAY January 1, 2024 12:00 am MANNER AND PLACE OF STORAGE, SUBJECT TO APPROVAL OF LOCAL FIRE AUTHORITIES, IN ACCORDANCE WITH NFPA 1123, 1124 & 1126 AND OTHER STATE OR FEDERAL REGULATIONS. PROVIDE PROOF OF PROPER LICENSING OR PERMITTING BY STATE OR FEDERAL GOVERNMENT No storage necessary, delivered on date of display AMOUNT OF BOND OR INSURANCE (TO BE SET BY LOCAL GOVERNMENT) NAME OF BONDING CORPORATION OR INSURANCE COMPANY $10,000,000.00 Britton-Gallagher & Associates ADDRESS OF BONDING CORPORATION OR INSURANCE COMPANY One Cleveland Center, Floor 30; 1375 East 9th Street, Cleveland, OH 44114 NUMBER OF FIREWORKS KIND OF FIREWORKS TO BE DISPLAYED (Please provide additional pages as needed) Approximately 600 Aerial display shells ranging in size from 2 ½ inches to 3 inches in diameter SIGNATURE OF APPLICANT DATE September 8, 2023 BFS-417 (Rev 01/21) Bureau of Fire Services P.O. Box 30700 Lansing, MI 48909 (517) 241-8847 Authority: 1988 PA 358 The Department of Energy, Labor & Economic Growth will not discriminate against any individual or group because or Compliance: Voluntary race, sex, religion, age, national origin, color, material status, disability, or political beliefs. If you need assistance with Penalty: Permit will not be issued reading, writing, hearing, etc., under the American with Disabilities Ace, you may make your needs known to this agency. This permit is not transferable. It authorizes the resident wholesale dealer or jobber named below to have in his or her possession fireworks of any type, for sale only to holders of permits for public display or agriculture control. PUBLIC DISPLAY AGRICULTURAL PEST CONTROL Issued To Age (18 or over) Pyrotecnico Fireworks, Inc. Yes Address 4369 E Summit Woods Dr NE, Rockford, MI 49341 Name of Organization, Group, Firm, or Corporation Lakeshore Legacy Project Address 851 W. Laketon Ave, Suite D, Muskegon MI 49441 Number and Types of Fireworks Approximately 600 aerial display shells ranging in size from 2 ½ inches to 3 inches in diameter. Exact Location of Display Parking lot between 3rd and 4th streets, west of Shoreline Drive City, Village, Township Date Time City of Muskegon January 1, 2024 12:00 am Bond or Insurance Filed? Amount Yes No $10,000,000.00 Issued by action of: Council Commission Board of the City Village Township of _________________________________________ (Name of City, Village, Township) on the __________________ day of ________________________________, ____________ ____________________________________________________________________________ (Signature and Title of Council/Commission/Board Representative) Page 2 of 4 BFS-417 (Rev 01/21) Instructions for Application for Fireworks Other Than Consumer or Low Impact Applications shall be submitted to the legislative body of a city, village or township board. A permit may be issued as a result of official action by the legislative body. A permit shall be valid only for use within the limits of the jurisdiction of the legislative body of a city, village or township board. 1. Type of Permit – check all boxes that may apply to the type of permit needed. You may select several permit types depending on your fireworks display. You may check with your legislative body of a city, village or township board for assistance when making your selection. Please review the following definitions to determine which type of permit to select: Agricultural or Wildlife Fireworks – devices distributed to farmers, ranchers, and growers through a wildlife management program administered by the US Department of Interior or Michigan DNR. Articles Pyrotechnic – 1.4G fireworks for professional use only that is classified as UN0431 or UN0432. Display Fireworks – 1.3G fireworks for professional use only Special Effects Manufactured for Outdoor Pest Control or Agricultural Purposes – devices with a combination of chemical elements or compounds capable of burning independently of the oxygen of the atmosphere and designed and intended to produce an audible, visual, mechanical or thermal effect for pest or animal control. Public Display – a fireworks display that is open to all persons for viewing. Private Display – a fireworks display that is not open to the general public for viewing. 2. Name of applicant – list the name of the applicant. The applicant may be a person representing an organization, group, firm or corporation, or self. If the applicant is also the operator, enter the same name in the operator’s section. 3. Address of applicant – complete the address of the applicant; include the street address, city, state and zip code. 4. Name of person or resident agent representing corporation, LLC, DBA or other – list the name of the person or resident agent that represents the corporation, LLC, DBA or other. 5. Address of person or resident agent that represents the corporation, LLC, DBA or other – list the address of the person or resident agent representing the corporation, LLC, DBA or other. 6. Non-resident applicant – list the name of the non-resident applicant. A non-resident applicant shall appoint a Michigan attorney or Michigan resident agent in writing to be the applicant’s legal representative upon whom all service of process in any action or proceeding may be served. 7. Name of pyrotechnic operator – list the name of the pyrotechnic operator. The pyrotechnic operator is the person in charge of the display. The legislative body of a city, village or township board shall rule on the competency and qualifications of the operator before granting a permit and may require an affidavit from the applicant as to the operator’s experience, former pyrotechnic accidents, criminal record, sobriety, etc. 8. Address of pyrotechnic operator – list the address of the pyrotechnic operator; include the street address, city, state and zip code. 9. Age of the pyrotechnic operator – list the age of the pyrotechnic operator; the operator must be 18 years of age or older. 10. Name of assistant – list the name of the assistant to the pyrotechnic operator; 11. Address of assistant – list the address of the assistant; include the street address, city, state and zip code. If there is more than one assistant, please list additional assistants on a separate sheet and include the address and age of those additional assistants. 12. Age of assistant – list the age of the assistant to the pyrotechnic operator; the assistant must be 18 years or older. 13. Name of other assistant – list the name of other assistant to the pyrotechnic operator. 14. Age of other assistant – list the age of the assistant to the pyrotechnic operator; the assistant must be 18 years or older. 15. Exact location of proposed display – list the address of the exact location of the proposed fireworks display. 16. Date of proposed display – indicate the date of the proposed fireworks display; only one display date can be used per application. 17. Time of proposed display – indicate the time of the proposed fireworks display. 18. Manner and place of storage - indicate the manner and place of storage within the legislative body of a city, village or township board of fireworks that are ready for display, just prior to the display in the area of exhibition. The legislative body of a city, village or township board shall obtain approval from the local fire authorities of the manner and place of storage before any permit is issued. Page 3 of 4 BFS-417 (Rev 01/21) 19. Amount of bond or insurance - the issuing legislative body of a city, village or township board shall set the amount of and proof of bond or insurance for the protection of the public to satisfy claims for damages to property or personal injuries arising out of any act or omission on the part of the person, firm or corporation, or any agent or employee of the applicant. The applicant shall assure the bond or insurance required is provided. 20. Name of bonding corporation or insurance company – provide the name of the bonding corporation or insurance company for which the bond was issued through. 21. Address of bonding corporation or insurance company – list the address of the bonding corporation or insurance company; include the street address, city, state and zip code. 22. Number of fireworks and kind of fireworks to be displayed– indicate the total amount of fireworks proposed for the display or use and a description of the type of fireworks for display; such as 10 aerial bombs, 30 aerial rocket bursts, etc. 23. The application is valid for the calendar year in which the application was received and permit was issued. 24. Permit fees shall be established by the legislative body of a city, village or township board and shall be submitted to and retained by legislative body of a city, village or township board. 25. Permitting will be in compliance with the Michigan Fireworks Safety Act, PA 256 of 2011, MCL 28.466, Section 16. 26. Mail the application to the legislative body of a city, village or township board within the location jurisdiction of the display. DO NOT mail the application to the Bureau of Fire Services (BFS). If mailed to the BFS, it will be returned to the sender. Page 4 of 4 BFS-417 (Rev 01/21) Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 9/26/2023 Title: Amendment to zoning ordinance, residential setback requirements – 2nd Reading Submitted By: Mike Franzak Department: Planning Director Brief Summary: Staff-initiated request to amend Section 404 of the zoning ordinance to modify rear setback requirements and to create a front build-to zone in lieu of front setbacks in single-family residential zones. Detailed Summary & Background: The Planning Commission recommended approval of the amendment by a 4-1 vote at their August 10 meeting. Goal/Focus Area/Action Item Addressed: Economic Development, Housing & Business Amount Requested: N/A Budgeted Item: Yes No N/A Fund(s) or Account(s): N/A Budget Amendment Needed: Yes No N/A Recommended Motion: To approve the request to amend Section 404 of the zoning ordinance as presented. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Planning Commission Packet Excerpt – August 10, 2023 Hearing, Case 2023-20: Staff-initiated request to amend Section 404 of the zoning ordinance to modify rear setback requirements and to create a front build-to zone in lieu of front setbacks in single-family residential zones. SUMMARY 1. Staff is proposing certain modifications to Section 404 of the zoning ordinance to allow property owners to better maximize the usage of their property. The following are the major amendments to the proposed ordinance: Change the minimum front setback requirements to a build-to-zone. This is the method used in the form based code section of the ordinance. This would allow new houses to be placed anywhere from 10-30 feet from the front property line. They also have the option to move the house outside of the build-to-zone if it will match other houses on the block. Reduce the rear setback requirements in R-1 and R-2 zones to match the 15-foot requirement of the R-3 zone. The new addition of the build-to-zone requirement in the front, along with the existing maximum lot coverage requirements, should result in almost all new houses to have at least a 30-foot rear setback anyway, since most lots in Muskegon are in excess of 100 feet long. However, this amendment will ease restrictions on odd-shaped lots. Those lots without much depth will have more opportunities to place their homes on buildable lots. The current ordinance states that corner lots shall be considered as having two front yards and must meet the minimum setback requirements for both frontages. This amendment would state that the secondary street is a side yard and the rear property must also abide by the side setback requirements. With the build-to-zone in place, along with maximum lot coverage standards, this should only affect small, irregular lots that have previously been spilt. Unique block with very small lots (see bottom right corner). Existing houses were placed when there were fewer zoning restrictions. Remaining lots face development challenges under current regulations in Section 404. Proposed Ordinance (See attachments for redline version) SECTION 404: AREA AND BULK REQUIREMENTS R-1 R-2 R-3 Minimum Lot 6,000 sf 4,000 sf 3,000 sf Size Minimum Lot 50 ft 40 ft 30 ft Width Maximum Lot Buildings: 50% Buildings: 60% Buildings: 70% Coverage Pavement: 10% Pavement: 15% Pavement: 20% Height Limit* 2 stories or 35 feet** 2 stories or 35 feet** 2 stories or 35 feet** Front Build-to- Zone***^ 10-30 feet 10-30 feet 10-30 feet Rear Setback^ 15 ft 15 ft 15 ft Side 1 story: 6 1 story: 6 1 story: 5 Setbacks#^: 2 story: 8 2 story: 7 2 story: 5 * Height measurement: In the case of a principal building, the vertical distance measured from the average finished grade to the highest point of the roof surface where the building line abuts the front yard, except as follows: to the deck line of mansard roofs, and the average height between eaves and the ridge of gable, hip, and gambrel roofs (see Figure 2-2). If the ground is not entirely level, the grade shall be determined by averaging the elevation of the ground for each face of the building (see Figure 2-3). ** Homes located in an established Historic District may be up to 3 stories or 45 feet, if found to be compatible with other homes within 600 feet. *** New principal structures may align with existing principal structures in the immediate area even if the front setback. falls outside the build-to-zone. The immediate area shall be considered all houses on the same block face within 600 feet of the property. ^For corner lots, the front shall be considered the street that faces the front door. The other street shall follow the side setback requirements. The rear, which is opposite of the front street, shall also follow the side setback requirements. #All required setbacks shall be measured from the property line to the nearest point of the determined drip line of buildings. CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO._____ An ordinance to amend Section 404 of the zoning ordinance to modify rear setback requirements and to create a front build-to zone in lieu of front setbacks in single-family residential zones. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: Section 404 is amended as proposed. This ordinance adopted: Ayes:______________________________________________________________ Nayes:_____________________________________________________________ Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: _________________________________ Ann Meisch, MMC, City Clerk CERTIFICATE The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 26th day of September 2023, at which meeting a quorum was present and remained throughout, and that the original of said ordinance is on file in the records of the City of Muskegon. I further certify that the meeting was conducted and public notice was given pursuant to and in full compliance with the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept and will be or have been made available as required thereby. DATED: ___________________, 2023. __________________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish: Notice of Adoption to be published once within ten (10) days of final adoption. CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on September 26, 2023, the City Commission of the City of Muskegon adopted an ordinance to amend Section 404 of the zoning ordinance. Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten days from the date of this publication. Published ____________________, 2023. CITY OF MUSKEGON By _________________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 12, Title: 2023 Justice Assistance Grant 2023 Submitted By: Emily Morgenstern Department: Police Department Brief Summary: The Police Department is seeking approval to enter into a Memorandum of Understanding (MOU) with the County of Muskegon and Muskegon Heights to apply for the allocated 2023 JAG grant funds. Detailed Summary & Background: The Police Department is seeking approval to enter into a MOU with the County of Muskegon and Muskegon Heights to apply for the allocated 2023 Edward Byrne Memorial Justice Assistance Grant (JAG) program funds. This year’s local JAG allocations to disparate jurisdictions in our county totals $43,247. The City of Muskegon will continue to act as the fiduciary and receive $25,571, the City of Muskegon Heights would be a subawardee and receive $17,676 and the County of Muskegon would not receive funding. Similar to past years, the City of Muskegon’s portion of this grant will be used for the prosecution of city ordinance cases dealing primarily neighborhood issues. Goal/Focus Area/Action Item Addressed: Destination Community & Quality of Life Amount Requested: $0 Budgeted Item: Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: Yes No N/A Recommended Motion: Approve the 2023 JAG Program Award Memorandum of Understanding (MOU), authorize the Mayor to sign, and authorize staff to apply for the 2023 JAG grant funds. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, Title: Former Employee Health Refund 2023 Calculation Submitted By: Jonathan Seyferth Department: City Manager Brief Summary: Traditionally (and per all 5 union contracts) employees paid 10% of their health benefits (after 2017 this included three components Health Insurance, Co-insurance, and Deductibles). At some point, an error in the calculation occurred, and employees began paying more than 10%. This was brought to our attention in early 2023, and the insurance contributions have been corrected for all active employees. The commission must now consider addressing this matter with former team members who left employment between the error starting and being corrected. Detailed Summary & Background: Starting in 2017 the City began using three different factors to determine employee contributions to their insurance premiums (a percent of actual monthly premiums and a percent of City Paid Benefits (co-insurance & deductibles)). Prior to 2017, just insurance premiums were used as a factor. This change was made because of cost increases in co-insurance and deductibles. Sometime after 2017 a calculation error occurred and employee contributions increased above the 10% level. Earlier this year the City Commission approved repayment of benefit overpayments to current employees. The administration is now asking the Commission to consider reimbursement of the overpayment to former employees who left the City between 2017 and the end of 2022 who also overpaid insurance premiums. During that time period, we had 58 former team members who took health insurance and overpaid. Individual overpayment ranges from about $3,200 to less than $10. The total cost to repay these former team members the overpayment is $51,696.83. Goal/Focus Area/Action Item Addressed: N/A Amount Requested: $52,696.83 Budgeted Item: Yes No Fund(s) or Account(s): Various – the Budget Amendment Needed: appropriate departments and funds will cover Yes No this cost. Recommended Motion: Motion to Approve Repayment of overpaid insurance premiums to former team members. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, 2023 Title: Former General Fund Transfers for FY2022-23 Submitted By: Kenneth D. Grant Department: Finance Brief Summary: During the close out of fiscal year 2022-23 and based on the financial results for the fiscal year ended June 30, 2023 we want to transfer $90,000 from the General Fund to the Marina Fund to eliminate a fund balance deficit. Detailed Summary & Background: At the close of FY2022-23 the Marina fund requires a transfer from the General Fund. (1) The FY2022-23 budget called for a General Fund transfer of $90,000 to the Marina Fund to avoid a fund balance deficit. The Marina fund despite initial transfer from $450,000 General fund needs additional help to avoid a deficit. At the end of the 2022-23 year the current liabilities exceed current assets by approximately $90,000. Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure. Amount Requested: $90,000 Budgeted Item: Yes No Fund(s) or Account(s): Budget Amendment Needed: Transfer $90,000 from 101 to 594 Yes No Recommended Motion: Motion To approve the General Fund transfers of $90,000 to the Marina Fund. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, Title: Sale of 1530 Hoyt Street 2023 Submitted By: LeighAnn Mikesell Department: Manager’s Office Brief Summary: Staff is seeking approval of the sale of 1530 Hoyt Street. Detailed Summary & Background: 1530 Hoyt Street was constructed through the agreement with Dave Dusendang to construct infill housing with ARPA funding. The offer is a full price offer with no seller concessions. Goal/Focus Area/Action Item Addressed: Create an environment that effectively attracts new residents and retains existing residents by filling existing employment gaps, attracting new and diverse businesses to the city, and expanding access to a variety of high-quality housing options in Muskegon. Amount Requested: N/A Budgeted Item: Yes No N/A Fund(s) or Account(s): N/A Budget Amendment Needed: Yes No N/A Recommended Motion: to approve the purchase agreement for 1530 Hoyt Street. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review dotloop signature verification: dtlp.us/go7X-57Ix-9l4y dtlp.us/eQXh-Ud3R-y7Jj WEST MICHIGAN REGIONAL PURCHASE AGREEMENT # DATE: 09/08/2023 , 11:00 AM (time) MLS # 71023031953 SELLING OFFICE: Pinnacle realty BROKER LIC.#: REALTOR® PHONE: 231-955-9545 LISTING OFFICE: West Urban Realty REALTOR® PHONE: 6163662459 1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days" in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference to "time" refers to local time. 2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding Real Estate Agency Relationships. The selling licensee is acting as (choose one): Agent/Subagent of Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller) Transaction Coordinator Primary Selling Agent Name: Adrian Valdez Email: Homesbyvaldez@gmail.com Lic.#: 6501437937 Alternate Selling Agent Name: Email: Lic.#: 3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.) Buyer has received the Seller’s Disclosure Statement, dated . Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by registered mail. Exceptions: Seller is exempt from the requirements of the Seller Disclosure Act. 4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached and will be an integral part of this Agreement. 5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon , County of Muskegon , Michigan, commonly known as (insert mailing address: street/city/state/zip code) 1530 Hoyt St, Muskegon, MI 49442 with the following legal description and tax parcel ID numbers: CITY OF MUSKEGON REVISED PLAT OF 1903 S 35.7 FT LOT 2 BLK 281 PP# 24205281000210 . The following paragraph applies only if the Premises include unplatted land: Seller agrees to grant Buyer at closing the right to make (insert number) all division(s) under Section 108(2), (3), and (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or before 10/16/2023 , of the proposed division to create the Premises. 6. Purchase Price: Buyer offers to buy the Property for the sum of $ 160,000 one hundred sixty thousand U.S. Dollars 7. Seller Concessions, if any: N/A 8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.) SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below are currently available to Buyer in cash or an equally liquid equivalent. If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price. CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to obtain a FHA type 30 (year) mortgage in the amount of 96.5 % of the Purchase Price bearing interest at a rate not to exceed 8 % per annum (rate at time of loan application), on or before the date the sale is to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to process the application, within N/A days after the Effective Date, not to impair Buyers’ credit after the date such loan if offered. Seller Buyer will agree to pay an amount not to exceed $ 0 representing repairs required as a condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from ©Copyright, West Michigan REALTOR® Associations Page 1 of 6 Rev. Date 1/2023 EJB 09/08/23 1:57 PM EDT Buyer’s Initials LM Seller’s Initials dotloop verified 09/14/23 6:01 PM EDT dotloop verified dotloop signature verification: dtlp.us/go7X-57Ix-9l4y dtlp.us/eQXh-Ud3R-y7Jj West Michigan Regional Purchase Agreement Page 2 of 6 Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent. Exceptions: SELLER FINANCING (choose one of the following): CONTRACT or PURCHASE MONEY MORTGAGE In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer within 48 hours. Seller is advised to seek professional advice regarding the credit report. $ upon execution and delivery of a form (name or type of form and revision date), a copy of which is attached, wherein the balance of $ will be payable in monthly installments of $ or more including interest at % per annum, interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: EQUITY (choose one of the following): Formal Assumption or Informal Assumption Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: OTHER: 9. Contingencies: Buyer’s obligation to consummate this transaction (choose one): IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer. IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at: A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest Money Deposit. IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing of a sale or exchange of Buyer’s property located at on or before . Seller will have the right to continue to market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions: 10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars; detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes: N/A but does not include: N/A 1530 Hoyt St, Muskegon, MI 49442 09/08/2023 11:00 AM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 EJB 09/08/23 1:57 PM EDT dotloop verified Buyer’s Initials LM Seller’s Initials 09/14/23 6:01 PM EDT dotloop verified dotloop signature verification: dtlp.us/go7X-57Ix-9l4y dtlp.us/eQXh-Ud3R-y7Jj West Michigan Regional Purchase Agreement Page 3 of 6 11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is expended through normal use. Exceptions: N/A 12. Assessments (choose one): If the Property is subject to any assessments, Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless of any installment arrangements), except for any fees that are required to connect to public utilities. Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume and pay all other installments of such assessments. Seller has an ongoing obligation through the Closing to disclose to the Buyer any known pending assessments, including, but not limited to, any mandatory utility connection requirements, and/or benefit charges, and condominium special assessments, that have not been previously disclosed in writing to Buyer. 13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all taxes billed after those addressed below. Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when property is transferred. No proration. (Choose one): Buyer Seller will pay taxes billed summer (year); Buyer Seller will pay taxes billed winter (year); Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying for January 1 through the day before closing. Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears. Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions: 14. Well/Septic: Within ten (10) days after the Effective Date, (choose one) Seller or Buyer will arrange for, at their own expense, an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or other local governmental authority, if applicable) protocol. If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may, within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract, Buyer will proceed to closing according to the terms and conditions of this Agreement. Other: N/A 15. Inspections & Investigations: Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be Buyer’s responsibility and expense. Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone. All inspections and investigations will be completed within ____10 days after the Effective Date. If the results of Buyer’s inspections and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, either (a) terminate this Agreement by written notice to Seller and receive a refund of Buyer’s Earnest Money Deposit, or (b) make a written proposal to Seller to correct those unsatisfactory conditions, which proposal must be in the form of a proposed addendum and must be signed by Buyer in order for it to be effective. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have 1530 Hoyt St, Muskegon, MI 49442 09/08/2023 11:00 AM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 EJB 09/08/23 1:57 PM EDT dotloop verified Buyer’s Initials LM Seller’s Initials 09/14/23 6:01 PM EDT dotloop verified dotloop signature verification: dtlp.us/go7X-57Ix-9l4y dtlp.us/eQXh-Ud3R-y7Jj West Michigan Regional Purchase Agreement Page 4 of 6 accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this Agreement. Buyer has waived all rights under this Inspections & Investigations paragraph. Exceptions: N/A 16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector ordinances, if applicable. 17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided. If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions of this Agreement. Exceptions: N/A 18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property and the location of improvements thereon. Buyer or Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may, within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money Deposit. No survey. Buyer has waived all rights under this paragraph. When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements thereon. Exceptions: Buyer will accept one if one exists 19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide additional protection and benefit to the parties. Exceptions: N/A 20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller owns the Property through the day before closing. 21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than 10/17/2023 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller will pay the entire closing fee. Exceptions: N/A 22. Pre-Closing Walk-Through: Buyer (choose one) reserves waives the right to conduct a final walk-through of the Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s requested corrective action. 23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be delivered to Buyer, subject to rights of present tenants, if any. At the completion of the closing of the sale. At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller 1530 Hoyt St, Muskegon, MI 49442 09/08/2023 11:00 AM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 EJB 09/08/23 1:57 PM EDT dotloop verified Buyer’s Initials LM Seller’s Initials 09/14/23 6:01 PM EDT dotloop verified dotloop signature verification: dtlp.us/go7X-57Ix-9l4y dtlp.us/eQXh-Ud3R-y7Jj West Michigan Regional Purchase Agreement Page 5 of 6 will have the privilege to occupy the Property and hereby agrees to pay Buyer $ N/A as an occupancy fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds. If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as liquidated damages $ N/A per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller from the Property. If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any portion of the Property will be Seller’s responsibility and expense. On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on all utilities, and shall deliver all keys to Buyer. Exceptions: N/A 24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 1 PM (time) on 09/09/2023 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ 500 shall be submitted to ATA National Title (insert name of broker, title company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller. In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation, and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement conflict with this paragraph, then the terms and conditions of the escrow agreement shall control. 25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement separately signed by Seller. 26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business. 27. Other Provisions: N/A 28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed by Buyer and Seller and attached to this Agreement. 29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s) required or permitted under this Agreement may also be transmitted by facsimile or other electronic means. 30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic 1530 Hoyt St, Muskegon, MI 49442 09/08/2023 11:00 AM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 EJB 09/08/23 1:57 PM EDT dotloop verified Buyer’s Initials LM Seller’s Initials 09/14/23 6:01 PM EDT dotloop verified dotloop signature verification: dtlp.us/go7X-57Ix-9l4y dtlp.us/eQXh-Ud3R-y7Jj West Michigan Regional Purchase Agreement Page 6 of 6 communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’ license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme to steal funds or use your identity. 31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer. Elza J Beard dotloop verified Buyer 1 Address X 09/08/23 1:57 PM EDT HHGK-9PLR-E40V-X017 Buyer Buyer 1 Phone: (Res.) (Bus.) Elza Beard Print name as you want it to appear on documents. Buyer 2 Address X Buyer Buyer 2 Phone: (Res.) (Bus.) Print name as you want it to appear on documents. 32. Seller’s Response: The above offer is approved: As written. As written except: Counteroffer, if any, expires , at (time). Seller has the right to withdraw this counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance. 33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as disclosed in the Seller’s Disclosure Statement dated (choose one): Yes No. Seller agrees to inform Buyer in writing of any changes in the content of the disclosure statement prior to closing. 34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form is available from the respective agents via the West Michigan REALTOR® Boards. 35. Listing Office Address: 3265 Walker Ave NW,, Suite D, Grand Rapids, MI 49544 Listing Broker License # Listing Agent Name: Mariana Murillo VanDam Listing Agent License # 6506015435 36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required below. LeighAnn Mikesell dotloop verified 09/14/23 6:01 PM EDT X (Seller’s Signature, Date, Time): VCQS-OXF8-AD55-UEJH Is Seller a U.S. Citizen or Resident Alien? Yes No* Print name as you want it to appear on documents. X (Seller’s Signature, Date, Time): Is Seller a U.S. Citizen or Resident Alien? Yes No* Print name as you want it to appear on documents. Seller’s Address: Seller’s Phone (Res.) (Bus) * If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice. 37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged. X (Buyer’s Signature, Date, Time): X (Buyer’s Signature, Date, Time): 38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer. X (Seller’s Signature, Date, Time): X (Seller’s Signature, Date, Time): 1530 Hoyt St, Muskegon, MI 49442 09/08/2023 11:00 AM Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 EJB 09/08/23 1:57 PM EDT Buyer’s Initials LM Seller’s Initials dotloop verified 09/14/23 6:01 PM EDT dotloop verified dotloop signature verification: dtlp.us/RgPc-lp2w-4qTy Please read and have buyer/s sign Attach with offer Paragraph 8- Seller will provide a quit claim deed vs a warranty deed. The builder's one-year warranty starts from the day of Certificate of Occupancy. Buyer shall bring dwelling unit into compliance with the following per the city’s Zoning Ordinance: Each dwelling unit shall have an approved established vegetative ground cover, native to the immediate area within 600 feet, no less than 12 months after occupancy. Approval shall be given by the zoning staff of the Planning Department as part of the initial residential site plan review. A minimum of one shade tree, two and one-half inches (2.5") in diameter, four feet (4') from the ground or one six-foot (6') evergreen tree shall be provided. Existing landscaping may be accepted in lieu of this requirement. The buyer shall be responsible for watering and maintaining vegetation. Elza J Beard dotloop verified 09/14/23 10:14 AM EDT U4LR-GZYW-QQKZ-HAEE __________________________________________ Buyer __________________________________________ Buyer Adrian Valdez dotloop verified 09/14/23 12:39 PM EDT __________________________________________8FSK-LFXB-ARQB-PDUW Buyer’s Agent LeighAnn Mikesell LeighAnn Mikesell dotloop verified 09/14/23 6:00 PM EDT 3JJ4-LO3Q-XCGW-KORW Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, Title: Sale of 1647 Terrace Street 2023 Submitted By: LeighAnn Mikesell Department: Manager’s Office Brief Summary: Staff is seeking approval of the sale of 1647 Terrace Street. Detailed Summary & Background: 1647 Terrace Street was constructed through the agreement with Dave Dusendang to construct infill housing with ARPA funding. The offer is for $18,000 over asking price with $10,000 in sellers concessions and $8,000 toward appliances and air conditioning. This results in a full price offer. Goal/Focus Area/Action Item Addressed: Create an environment that effectively attracts new residents and retains existing residents by filling existing employment gaps, attracting new and diverse businesses to the city, and expanding access to a variety of high-quality housing options in Muskegon. Amount Requested: N/A Budgeted Item: Yes No N/A Fund(s) or Account(s): N/A Budget Amendment Needed: Yes No N/A Recommended Motion: to approve the purchase agreement for 1647 Terrace Street. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review dotloop signature verification: dtlp.us/glDu-kcKT-0ohH dtlp.us/qTc0-gQcm-RDo5 WEST MICHIGAN REGIONAL PURCHASE AGREEMENT # 1 DATE: 09/11/2023 , 7pm (time) MLS # SELLING OFFICE: City2Shore Port City Associates BROKER LIC.#: 6505424129 REALTOR® PHONE: 2316552944 LISTING OFFICE: West Urban Realty REALTOR® PHONE: 616-366-2459 1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days" in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference to "time" refers to local time. 2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding Real Estate Agency Relationships. The selling licensee is acting as (choose one): Agent/Subagent of Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller) Transaction Coordinator Primary Selling Agent Name: Emmersyn Sheaks Email: emmersyn.sheaks@city2shore. Lic.#: 6501451220 Alternate Selling Agent Name: Email: Lic.#: 3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.) Buyer has received the Seller’s Disclosure Statement, dated . Buyer has not received the Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by registered mail. Exceptions: Seller is exempt from the requirements of the Seller Disclosure Act. 4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached and will be an integral part of this Agreement. 5. Property Description: Buyer offers to buy the property located in the City Village Township of Muskegon , County of Muskegon , Michigan, commonly known as (insert mailing address: street/city/state/zip code) 1647 Terrace Street Muskegon Michigan 49442 with the following legal description and tax parcel ID numbers: CITY OF MUSKEGON REVISED PLAT OF 1903 N 51 2/3 FT OF S 103 1/3 FT OF LOT 25 BLK 292 PP# 61-24-205-292-0025-10 . The following paragraph applies only if the Premises include unplatted land: Seller agrees to grant Buyer at closing the right to make (insert number) division(s) under Section 108(2), (3), and (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or before , of the proposed division to create the Premises. 6. Purchase Price: Buyer offers to buy the Property for the sum of $ 178000 one hundred seventy-eight thousand U.S. Dollars 7. Seller Concessions, if any: 10000 concessions 8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.) SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below are currently available to Buyer in cash or an equally liquid equivalent. If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall receive a refund of Buyer’s Earnest Money Deposit, or 3) proceed to close the transaction at the agreed Purchase Price. CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or Seller’s Agent. If verification of funds is not received within 5 days after the Effective Date, Seller may terminate this Agreement at any time before verification of funds is received by giving written notice to Buyer. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to obtain a VA type 30 (year) mortgage in the amount of 100 % of the Purchase Price bearing interest at a rate not to exceed 7.25 % per annum (rate at time of loan application), on or before the date the sale is to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to process the application, within 4 days after the Effective Date, not to impair Buyers’ credit after the date such loan if offered. Seller Buyer will agree to pay an amount not to exceed $ 500 representing repairs required as a condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from ©Copyright, West Michigan REALTOR® Associations Page 1 of 6 Rev. Date 1/2023 JT 09/12/23 11:36 AM EDT Buyer’s Initials LM Seller’s Initials dotloop verified 09/15/23 10:02 AM EDT dotloop verified dotloop signature verification: dtlp.us/glDu-kcKT-0ohH dtlp.us/qTc0-gQcm-RDo5 West Michigan Regional Purchase Agreement Page 2 of 6 Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent. Exceptions: SELLER FINANCING (choose one of the following): CONTRACT or PURCHASE MONEY MORTGAGE In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the credit report is unacceptable to Seller, Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if Buyer fails to provide said credit report to Seller within the time frame allotted, Seller shall have the right to terminate this offer within 48 hours. Seller is advised to seek professional advice regarding the credit report. $ upon execution and delivery of a form (name or type of form and revision date), a copy of which is attached, wherein the balance of $ will be payable in monthly installments of $ or more including interest at % per annum, interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: EQUITY (choose one of the following): Formal Assumption or Informal Assumption Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: OTHER: 9. Contingencies: Buyer’s obligation to consummate this transaction (choose one): IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer. IS CONTINGENT UPON CLOSING - is contingent upon closing of an existing sale or exchange of Buyer’s property located at: A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. If the existing sale or exchange terminates for any reason, Buyer will immediately notify Seller, and either party may terminate this Agreement in writing, within 3 days of Buyer’s notice to Seller. If either party terminates, Buyer shall receive a refund of any applicable Earnest Money Deposit. IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing of a sale or exchange of Buyer’s property located at on or before . Seller will have the right to continue to market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified promptly, and Buyer’s Earnest Money Deposit will be refunded. Exceptions: 10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All improvements and appurtenances are included in the Purchase Price, if now in or on the Property, unless rented, including the following: all buildings; landscaping; attached smart home devices; attached security systems; lighting fixtures and their shades and bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached shelving; attached work benches; stationary laundry tubs; water softener; water heater; incinerator; sump pump; water pump and pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid heating and cooking fuel tanks; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars; detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes: GE Dishwasher, GE Fridge, GE Range, GE Microwave, GE washer and GE dryer. Also to include A/c. but does not include: 1647 Terrace Street Muskegon 09/11/2023 7pm Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 JT 09/12/23 11:36 AM EDT dotloop verified Buyer’s Initials LM Seller’s Initials 09/15/23 10:02 AM EDT dotloop verified dotloop signature verification: dtlp.us/glDu-kcKT-0ohH dtlp.us/qTc0-gQcm-RDo5 West Michigan Regional Purchase Agreement Page 3 of 6 11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except that the tank(s) may be empty only if now empty. Further, Seller is precluded from removing fuel from tank(s) other than what is expended through normal use. Exceptions: N/A 12. Assessments (choose one): If the Property is subject to any assessments, Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless of any installment arrangements), except for any fees that are required to connect to public utilities. Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume and pay all other installments of such assessments. Seller has an ongoing obligation through the Closing to disclose to the Buyer any known pending assessments, including, but not limited to, any mandatory utility connection requirements, and/or benefit charges, and condominium special assessments, that have not been previously disclosed in writing to Buyer. 13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all taxes billed after those addressed below. Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the Property will be the same as Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when property is transferred. No proration. (Choose one): Buyer Seller will pay taxes billed summer (year); Buyer Seller will pay taxes billed winter (year); Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying for January 1 through the day before closing. Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears. Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions: 14. Well/Septic: Within ten (10) days after the Effective Date, (choose one) Seller or Buyer will arrange for, at their own expense, an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or other local governmental authority, if applicable) protocol. If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may, within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate the contract, Buyer will proceed to closing according to the terms and conditions of this Agreement. Other: 15. Inspections & Investigations: Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be Buyer’s responsibility and expense. Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone. All inspections and investigations will be completed within ____10 days after the Effective Date. If the results of Buyer’s inspections and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, either (a) terminate this Agreement by written notice to Seller and receive a refund of Buyer’s Earnest Money Deposit, or (b) make a written proposal to Seller to correct those unsatisfactory conditions, which proposal must be in the form of a proposed addendum and must be signed by Buyer in order for it to be effective. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have 1647 Terrace Street Muskegon 09/11/2023 7pm Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 JT 09/12/23 11:36 AM EDT Buyer’s Initials LM Seller’s Initials dotloop verified 09/15/23 10:02 AM EDT dotloop verified dotloop signature verification: dtlp.us/glDu-kcKT-0ohH dtlp.us/qTc0-gQcm-RDo5 West Michigan Regional Purchase Agreement Page 4 of 6 accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this Agreement. Buyer has waived all rights under this Inspections & Investigations paragraph. Exceptions: 16. Municipal Compliances: Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector ordinances, if applicable. 17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided. If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s Earnest Money Deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and shall receive a refund of any applicable Earnest Money Deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions of this Agreement. Exceptions: 18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property and the location of improvements thereon. Buyer or Seller (choose one) shall within ten (10) days of the Effective Date, order, at their expense, a boundary survey with iron corner stakes showing the location of the boundaries, improvements and easements in connection with the Property. Upon receipt of the survey, Buyer will have three (3) days to review the survey. If the survey shows any condition, in Buyer’s sole discretion, which would interfere with Buyer’s intended use of the Property, the marketability of the title, or zoning non-compliance, then Buyer may, within said three (3) day period, terminate this Agreement, in writing, and Buyer will receive a full refund of Buyer’s Earnest Money Deposit. No survey. Buyer has waived all rights under this paragraph. When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements thereon. Exceptions: 19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide additional protection and benefit to the parties. Exceptions: 20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien assumed by Buyer; will all be adjusted to the date of closing. For the purposes of calculating prorations, it is presumed that Seller owns the Property through the day before closing. 21. Closing: If agreeable to Buyer and Seller, the sale will be closed as soon as closing documents are ready, but not later than 10/11/2023 . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where Seller will pay the entire closing fee. Exceptions: 22. Pre-Closing Walk-Through: Buyer (choose one) reserves waives the right to conduct a final walk-through of the Property within three (3) days of the scheduled closing date. The purpose of the walk-through is to determine that the Property is in a substantially similar condition as of the Effective Date, any contractually agreed upon items have been fulfilled, and that any included personal property is still located at the Property. Buyer shall immediately report to Seller any objections to these conditions and Buyer’s requested corrective action. 23. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be delivered to Buyer, subject to rights of present tenants, if any. At the completion of the closing of the sale. At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller 1647 Terrace Street Muskegon 09/11/2023 7pm Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Revision Date 1/2023 JT 09/12/23 11:36 AM EDT Buyer’s Initials LM Seller’s Initials dotloop verified 09/15/23 10:02 AM EDT dotloop verified dotloop signature verification: dtlp.us/glDu-kcKT-0ohH dtlp.us/qTc0-gQcm-RDo5 West Michigan Regional Purchase Agreement Page 5 of 6 will have the privilege to occupy the Property and hereby agrees to pay Buyer $ as an occupancy fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds. If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as liquidated damages $ 300 per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller from the Property. If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any portion of the Property will be Seller’s responsibility and expense. On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on all utilities, and shall deliver all keys to Buyer. Exceptions: 24. Earnest Money Deposit: For valuable consideration, Buyer gives Seller until 12pm (time) on 09/13/2023 (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by Seller, will constitute a binding Agreement between Buyer and Seller. An Earnest Money Deposit in the amount of $ 500 shall be submitted to City2Shore Port City Associates (insert name of broker, title company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Earnest Money Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this Agreement until such time as the Earnest Money Deposit is received. If Seller terminates this Agreement under this provision, Seller waives any claim to the Earnest Money Deposit. If the sale is not closed due to a failure to satisfy a contingency for a reason other than the fault of Buyer, the Earnest Money Deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement and Buyer and Seller do not agree to the disposition of the Earnest Money Deposit, then Buyer and Seller agree that the Broker holding the Earnest Money Deposit may notify Buyer and Seller, in writing, of Broker’s intended disposition of the Earnest Money Deposit. If Buyer and Seller do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed to have agreed to Broker’s proposed disposition; if either Buyer or Seller object and no mutually agreeable disposition can be negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by Buyer and Seller. In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation, and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action instituted. If the entity holding the Earnest Money Deposit is not the Broker, then to the extent that the terms of any escrow agreement conflict with this paragraph, then the terms and conditions of the escrow agreement shall control. 25. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement separately signed by Seller. 26. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business. 27. Other Provisions: 28. Mergers and Integrations: This Agreement is the final expression of the complete agreement of Buyer and Seller, and there are no oral agreements existing between Buyer and Seller relating to this transaction. This Agreement may be amended only in writing signed by Buyer and Seller and attached to this Agreement. 29. Fax/Electronic Distribution and Electronic Signatures: Buyer and Seller agree that any signed copy of this Agreement, and any amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence of its contents to the same effect as an original signed copy. Buyer and Seller further agree that an electronic signature is the legal equivalent of a manual or handwritten signature, and consent to use of electronic signatures. Buyer and Seller agree that any notice(s) required or permitted under this Agreement may also be transmitted by facsimile or other electronic means. 30. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic 1647 Terrace Street Muskegon 09/11/2023 7pm Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations JT Buyer’s Initials Seller’s Initials Revision Date 1/2023 09/12/23 11:36 AM EDT dotloop verified LM 09/15/23 10:02 AM EDT dotloop verified dotloop signature verification: dtlp.us/glDu-kcKT-0ohH dtlp.us/qTc0-gQcm-RDo5 West Michigan Regional Purchase Agreement Page 6 of 6 communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’ license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme to steal funds or use your identity. 31. Buyer’s Approval and Acknowledgment: Buyer approves the terms of this offer and acknowledges receipt of a copy of this offer. Buyer 1 Address X Jermichael Tanner Buyer dotloop verified 09/12/23 11:36 AM EDT XGTY-GUWU-MXXF-19Z0 Buyer 1 Phone: (Res.) (321)960-0058 (Bus.) Print name as you want it to appear on documents. Buyer 2 Address X Buyer Buyer 2 Phone: (Res.) (Bus.) Print name as you want it to appear on documents. 32. Seller’s Response: The above offer is approved: As written. As written except: Counteroffer, if any, expires , at (time). Seller has the right to withdraw this counteroffer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance. 33. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as disclosed in the Seller’s Disclosure Statement dated (choose one): Yes No. Seller agrees to inform Buyer in writing of any changes in the content of the disclosure statement prior to closing. 34. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not relieve Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by the lender or required by law or regulation. Buyer and Seller are advised that a Notice to Seller & Buyer of Underlying Mortgage form is available from the respective agents via the West Michigan REALTOR® Boards. 35. Listing Office Address: Listing Broker License # Listing Agent Name: Listing Agent License # 36. Seller’s Approval and Acknowledgment: Seller approves the terms of this Agreement and acknowledges receipt of a copy. If Seller’s response occurs after Buyer’s offer expires, then Seller’s response is considered a counteroffer and Buyer’s acceptance is required below. LeighAnn Miksell dotloop verified 09/15/23 10:02 AM EDT X (Seller’s Signature, Date, Time): EQCS-93YX-S8KV-9GIM Is Seller a U.S. Citizen or Resident Alien? Yes No* Print name as you want it to appear on documents. X (Seller’s Signature, Date, Time): Is Seller a U.S. Citizen or Resident Alien? Yes No* Print name as you want it to appear on documents. Seller’s Address: Seller’s Phone (Res.) (Bus) * If Seller(s) is not a U.S. Citizen or Resident Alien, there may be tax implications and Buyer and Seller are advised to seek professional advice. 37. Buyer’s Receipt/Acceptance: Buyer acknowledges receipt of Seller’s response to Buyer’s offer. In the event Seller’s response constitutes a counteroffer, Buyer accepts said counteroffer. All other terms and conditions in the offer remain unchanged. X (Buyer’s Signature, Date, Time): X (Buyer’s Signature, Date, Time): 38. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer. X (Seller’s Signature, Date, Time): X (Seller’s Signature, Date, Time): 1647 Terrace Street Muskegon 09/11/2023 7pm Subject Property Address/Description Date Time ©Copyright, West Michigan REALTOR® Associations Buyer’s Initials Seller’s Initials Revision Date 1/2023 LM 09/15/23 10:02 AM EDT dotloop verified dotloop signature verification: dtlp.us/O7Vp-G8Gw-n5Vc Please read and have buyer/s sign Attach with offer Paragraph 8- Seller will provide a quit claim deed vs a warranty deed. The builder's one-year warranty starts from the day of Certificate of Occupancy. Buyer shall bring dwelling unit into compliance with the following per the city’s Zoning Ordinance: Each dwelling unit shall have an approved established vegetative ground cover, native to the immediate area within 600 feet, no less than 12 months after occupancy. Approval shall be given by the zoning staff of the Planning Department as part of the initial residential site plan review. A minimum of one shade tree, two and one-half inches (2.5") in diameter, four feet (4') from the ground or one six-foot (6') evergreen tree shall be provided. Existing landscaping may be accepted in lieu of this requirement. The buyer shall be responsible for watering and maintaining vegetation. Jermichael Tanner dotloop verified 09/12/23 11:31 AM EDT 4LTI-NZZA-UBKC-MKA8 __________________________________________ Buyer __________________________________________ Buyer Emmersyn Sheaks dotloop verified 09/11/23 8:31 PM EDT __________________________________________ BFYY-RW1U-OFDT-0QQC Buyer’s Agent LeighAnn Mikesell dotloop verified 09/15/23 10:12 AM EDT 0EBP-EMWP-CC4O-NSZ2 LeighAnn Mikesell Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, Title: First Amendment to Real Estate 2023 Purchase Agreement DMDC2- Splash Pad Submitted By: Contessa Alexander Department: Economic Development Brief Summary: An amendment to the Real Estate Purchase Agreement between the Downtown Muskegon Development Center No. 2 Association (the “Seller”) and The City of Muskegon (the “Buyer”) for the purchase of Unit 10 ((the “Property”) referred to as the Western Avenue Splash Pad. Detailed Summary & Background: On June 27, 2023, this item was presented to the City Commission and was approved. The Seller and Buyer now wish to amend the Purchase Agreement, as detailed in the attached amendment. Both parties propose extending the closing date to no later than November 1, 2023. Goal/Focus Area/Action Item Addressed: Retain youth within the city. Amount Requested: $1,188.75 Budgeted Item: Yes No N/A Fund(s) or Account(s): Planning Budget Amendment Needed: Yes No N/A Recommended Motion: I move to approve the Amendment to the Real Estate Purchase Agreement made between Downtown Muskegon Development Center No. 2, Association and The City of Muskegon for the purchase of Unit 10 (the “Property”) referred to as the Western Avenue Splash Pad authorizing the Deputy City Manager to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review FIRST AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT This First Amendment to Purchase and Sale Agreement is effective June 30, 2023, by and between Downtown Muskegon Development Center No. 2 Association, a Michigan nonprofit corporation (“Seller”), and the City of Muskegon, a Michigan municipal corporation (“Buyer”) with reference to the following facts: Background A. Buyer and Seller are parties to the Real Estate Purchase Agreement dated June 29, 2023 (“Purchase Agreement”), in connection with the purchase and sale of the property commonly known as the Western Avenue Splash Pad. B. Seller and Buyer now desire to amend the Purchase Agreement as provided in this Amendment. Amendment 1. Closing. The parties have agreed to extend the date of Closing to occur no later than November 1, 2023. 2. Full Force and Effect. Except as specifically modified by this Amendment, the Purchase Agreement is unmodified and shall continue in full force and effect. 3. Counterparts. This Amendment may be signed in one or more counterparts, each of which shall be deemed to be an original, with the same effect as if the signatures on this Amendment and each of the counterparts were on the same instrument. Electronic copies and signatures sent in PDF format shall be treated as originals. 4. Miscellaneous. This Amendment and the Purchase Agreement shall be taken together as one agreement with regard to the transaction; provided in the event of a conflict in the provisions of this Amendment and the Purchase Agreement, the provisions of this Amendment shall control. Seller: Buyer: Downtown Muskegon Development Center The City of Muskegon No. 2 Association By: ___________________________ By: ___________________________ Name: Contessa Alexander Name: LeighAnn Mikesell Title: President Title: Deputy City Manager Date: _________________________ Date: _________________________ Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, 2023 Title: PM Restroom MNRTF Grant Agreement Submitted By: Dan VanderHeide Department: Parks & Recreation Brief Summary: Staff is requesting approval to execute the attached agreement for the MNRTF Grant for the construction of a new restroom building adjacent to the “kite shack,” as well as rehabilitation of the kit shack building. Detailed Summary & Background: The City of Muskegon has been awarded a $300,000 Grant from the Michigan Natural Resources Trust Fund (MNRFT) administered by the Michigan Department of Natural Resources. The award includes a required City match amount of $300,000, which is budgeted in this fiscal year. The City of Muskegon is required to execute the included agreement to meet funding requirements, which is of the standard MDNR form. The concept drawings of the improvements are included for reference. Goal/Focus Area/Action Item Addressed: Destination Community & Quality of Life / Enhanced Parks and Recreation Department and Services Amount Requested: $300,000 Budgeted Item: Yes No N/A Fund(s) or Account(s): 445 (Public Improvement) Budget Amendment Needed: Yes No N/A Recommended Motion: I move approval of the MNRTF Grant agreement including the approving resolution, and authorize the DPW Director to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review BE MU SK AC EG ON HS LA KE SH TR OR ET E RA ET EXISTING IL PARKING LOT EXISTING BEACH EX EX LA IS T EX IS T KE ING IS T SH ING OR ING 30 E 2” DR ”W IV SA W 16’ WIDE MULTI USER TRAIL E AT AT NIT (To Be installed in Fall of 2022) ER ER AR LIN LIN YS E E EW ER LIN E IMPROVED UNIVERSALLY ACCESSIBLE PARKING (6 Spaces) BIKE RACKS LITTER AND RECYCLING SITE LIGHT CONTAINER (LED Light) LAKE MICHIGAN RESTROOM BUILDING UNLOADING ZONE (Approximately 633 S.F. Includes 4 Universally Accessible Family Rooms) CONCRETE PLAZA (With Sheet Pile Edge Protection) BENCHES PICNIC TABLES (With 1 Accessible Table) EXISTING BUILDING T REE (Renovate Existing Kite Shop, approx. 760 S.F.) T CH S BEA NOTE: GRANT ITEMS AREA BOXED PERE MARQUETTE BEACH RESTROOM SITE PLAN GRANT IMPROVEMENT PLAN 0’ 30’ 60’ 120’ DATE 02.28.2022 PROJECT NO. MUSKEGON, MICHIGAN 2146 NORTH SCALE IN FEET: 1’=30’ DOUBLE PITCHED ROOF Similar To Historic Beach Concessions Building FROSTED WINDOWS Or Similar Architecture Detail To Compliment Historic Beach Concessions Building FACE BRICK To Match Or Compliment Existing Buildings STEEL GATE FRONT / BACK ELEVATION DOUBLE PITCHED ROOF Similar To Historic Beach Concessions Building FROSTED WINDOWS Or Similar Architecture Detail To Compliment Historic Beach Concessions Building FACE BRICK To Match Or Compliment Existing Buildings PLAN SIDE ELEVATION PERE MARQUETTE BEACH RESTROOM SITE PLAN GRANT IMPROVEMENT PLAN DATE 02.28.2022 PROJECT NO. MUSKEGON, MICHIGAN 2146 City of Muskegon RESOLUTION __________ WHEREAS, the City of Muskegon submitted an application to Michigan Department of Natural Resources (the “DEPARTMENT”) for a Michigan Natural Resources Trust Fund Grant in the amount of $300,000 to make improvements to the Pere Marquette Park concession building known as the Kite Shack, and to build a new restroom facility adjacent to that concession building, and was selected to receive such funding; NOW, THEREFORE LET IT BE RESOLVED, that the City of Muskegon does hereby accept the terms of the Agreement as received from the Michigan Department of Natural Resources, and that the City of Muskegon does hereby specifically agree, but not by way of limitation, as follows: 1. To appropriate all funds necessary to complete the project during the project period and to provide Three Hundred Thousand Dollars and No Cents ($300,000.00) to match the grant authorized by the DEPARTMENT. 2. To maintain satisfactory financial accounts, documents, and records to make them available to the DEPARTMENT for auditing at reasonable times in perpetuity. 3. To construct the project and provide such funds, services, and materials as may be necessary to satisfy the terms of said Agreement. 4. To regulate the use of the facility constructed and reserved under this Agreement to assure the use thereof by the public on equal and reasonable terms. 5. To comply with any and all terms of said Agreement including all terms not specifically set forth in the foregoing portions of this Resolution. Motion made by Commissioner ______________ and seconded by Commissioner __________________. Ayes: Nays: Absent: Motion Approved. STATE OF MICHIGAN ) ) ss COUNTY OF ____________ ) I, Ann Meisch, Clerk of the City of Muskegon, Michigan, do hereby certify that the above is a true and correct copy of the Resolution relative to the Agreement with the Michigan Department of Natural Resources, which Resolution was adopted by the City of Muskegon at a meeting held on _______________________________. Signature Title Date Michigan Department of Natural Resources - Grants Management Michigan Natural Resources Trust Fund Development Project Agreement This information is required by authority of Part 5 of Act 451, P.A. 1994 as amended, to receive funds. This Agreement is between City of Muskegon in the county of Muskegon County, hereinafter referred to as the “GRANTEE,” and the MICHIGAN DEPARTMENT OF NATURAL RESOURCES, an agency of the State of Michigan, hereinafter referred to as the “DEPARTMENT.” The DEPARTMENT has authority to issue grants to local units of government for the development of public outdoor recreation facilities under Part 19 of the Natural Resources and Environmental Protection Act , P.A. 451 of 1994, as amended and under Article IX, Section 35 of the Michigan Constitution. The GRANTEE has been approved by the Michigan Natural Resources Trust Fund (MNRTF) Board of Trustees (BOARD) to receive a grant. In Public Act 119 of 2023, the Legislature appropriated funds from the MNRTF to the DEPARTMENT for a grant-in-aid to the GRANTEE. The purpose of this Agreement is to provide funding in exchange for completion of the project named below . This Agreement is subject to the terms and conditions specified herein. Project Title: Pere Marquette Park Restroom Concession Building Project #: TF22-0119 Grant Amount: $300,000.00 43% PROJECT TOTAL: $700,000.00 Match Amount: $400,000.00 57% Start Date: Date of Execution by DEPARTMENT End Date: 08/31/2025 As a precondition to the effectiveness of the Agreement , the GRANTEE is required to sign the Agreement and return it to the DEPARTMENT with the required attachments by 10/06/2023 or the Agreement may be cancelled by the DEPARTMENT. This Agreement is not effective until the GRANTEE has signed it, returned it, and the DEPARTMENT has signed it. The Agreement is considered executed when signed by the DEPARTMENT. The individuals signing below certify by their signatures that they are authorized to sign this Agreement on behalf of their agencies , and that the parties will fulfill the terms of this Agreement , including any attached appendices, as set forth herein. GRANTEE SIGNED By [Print Name]: Title: Organization: DUNS Number CV0047621 SIGMA Vendor Number SIGMA Address ID MICHIGAN DEPARTMENT OF NATURAL RESOURCES SIGNED By: Grants Section Manager Date of Execution by DEPARTMENT TF22-0119 Page 1 of 8 PR1915 (Rev. 06/10/2020) Michigan Natural Resources Trust Fund Development Project Agreement 1. This Agreement shall be administered on behalf of the DEPARTMENT by the Grants Management Section within the Finance and Operations Division. All notices, reports, documents, requests, actions or other communications required between the DEPARTMENT and the GRANTEE shall be submitted through the department’s online grant management system , MiGrants, which is accessed through www.michigan.gov/dnr-grants, unless otherwise instructed by the DEPARTMENT. Primary points of contact pertaining to this agreement shall be: GRANTEE CONTACT DEPARTMENT CONTACT MNRTF Grant Program Manager Name/Title Name/Title Grants Management/DNR Finance & Operations Organization Organization 525 W. Allegan Street, Lansing, MI 48933 Address Address P.O. Box 30425, Lansing, MI 48909 Address Address 517-284-7268 Telephone Number Telephone Number DNR-Grants@michigan.gov E-mail Address E-mail Address 2. The legal description of the project area, boundary map of the project area, and the development grant application bearing the number TF22-0119 uploaded to MiGrants are by this reference made part of this Agreement . The Agreement together with the referenced documents in MiGrants constitute the entire Agreement between the parties and may be modified only in writing and executed in the same manner as the Agreement is executed . 3. The time period allowed for project completion is from 08/07/2023 through 08/31/2025, hereinafter referred to as the “project period.” Requests by the GRANTEE to extend the project period shall be submitted in MiGrants before the expiration of the project period. Extensions to the project period are at the discretion of the DEPARTMENT and may only be extended by an amendment to this Agreement. 4. The words "project area" shall mean the land and area described in the uploaded legal description and shown on the uploaded boundary map. 5. The words "project facilities" shall mean the following individual components, as further described in the application. Access Pathway 6' wide or more Concession Building Recycle Bin(s) Restroom Building Seawall or Shoreline Stabilization 6. The DEPARTMENT will: a. grant to the GRANTEE a sum of money equal to Forty-Three percent (43%) of Seven Hundred Thousand dollars ($700,000.00), which is the total eligible cost of construction of the project facilities including engineering costs, but in any event not to exceed Three Hundred Thousand dollars ($300,000.00). b. grant these funds in the form of reimbursements to the GRANTEE for eligible costs and expenses incurred as follows: TF22-0119 Page 2 of 8 PR1915 (Rev. 06/10/2020) Michigan Natural Resources Trust Fund Development Project Agreement i. Payments will be made on a reimbursement basis at Forty-Three percent (43%) of the eligible expenses incurred by the GRANTEE up to 90% of the maximum reimbursement allowable under the grant. ii. Reimbursement will be made only upon DEPARTMENT review and approval of a complete reimbursement request submitted by the GRANTEE through the MiGrants website, including but not limited to copies of invoices, cancelled checks, EFTs, list of volunteer and/or force account time and attendance records. iii. The DEPARTMENT shall conduct an audit of the project’s financial records upon approval of the final reimbursement request by DEPARTMENT staff. The DEPARTMENT may issue an audit report with no deductions or may find some costs ineligible for reimbursement. iv. The final 10% of the grant amount will be released upon completion of a satisfactory audit by the DEPARTMENT and documentation that the GRANTEE has erected an MNRTF sign in compliance with Section 7(j) of this Agreement. 7. The GRANTEE will: a. immediately make available all funds needed to incur all necessary costs required to complete the project and to provide Four Hundred Thousand dollars ($400,000.00) in local match. This sum represents Fifty-Seven percent (57%) of the total eligible cost of construction including engineering costs. Any cost overruns incurred to complete the project facilities called for by this Agreement shall be the sole responsibility of the GRANTEE . b. with the exception of engineering costs as provided for in Section 8, incur no costs toward completion of the project facilities before execution of this Agreement and before DEPARTMENT approval of plans , specifications and bid documents. c. complete construction of the project facilities to the satisfaction of the DEPARTMENT and to comply with the development project procedures set forth by the DEPARTMENT in completion of the project , including but not limited to the following: i. Retain the services of a professional architect, landscape architect, or engineer, registered in the State of Michigan to serve as the GRANTEE’S Prime Professional. The Prime Professional shall prepare the plans, specifications and bid documents for the project and oversee project construction. ii. Within 180 days following execution of this Agreement by the GRANTEE and the DEPARTMENT and before soliciting bids or quotes or incurring costs other than costs associated with the development of plans, specifications, or bid documents, provide the DEPARTMENT with plans, specifications, and bid documents for the project facilities, sealed by the GRANTEE’S Prime Professional. iii. Upon DEPARTMENT approval of plans, specifications and bid documents, openly advertise and seek written bids for contracts for purchases or services with a value equal to or greater than $50,000 and accept the lowest qualified bid as determined by the GRANTEE’S Prime Professional. iv. Upon DEPARTMENT approval of plans, specifications and bid documents, solicit three (3) written quotes for contracts for purchases or services between $5,000 and $50,000 and accept the lowest qualified bid as determined by the GRANTEE’S Prime Professional. v. Maintain detailed written records of the contracting processes used and submit these records to the DEPARTMENT upon request. vi. Complete construction to all applicable local, state and federal codes, as amended; including but not limited to the federal Americans with Disabilities Act (ADA) of 2010, as amended; the Persons with Disabilities Civil Rights Act, Act 220 of 1976, as amended; the Playground Equipment Safety Act, P.A. 16 of 1997, as amended; the Utilization of Public Facilities by Physically Limited Act , P.A. 1 of 1966, as amended; the Elliott-Larsen Civil Rights Act, Act 453 of 1976, as amended; and the 2013 Access Board’s Final Guidelines for Outdoor Developed Areas. vii. Bury all new utilities within the project area. viii.Correct any deficiencies discovered at the final inspection within 90 days of written notification by the DEPARTMENT. These corrections shall be made at the GRANTEE’S expense and are eligible for reimbursement at the discretion of the DEPARTMENT and only to the degree that the GRANTEE’S prior expenditures made toward completion of the project are less than the grant amount allowed under this Agreement. d. operate the project facilities for a minimum of their useful life as determined by the DEPARTMENT , to regulate the use thereof to the satisfaction of the DEPARTMENT, and to appropriate such monies and/or provide such services as shall be necessary to provide such adequate maintenance. e. provide to the DEPARTMENT for approval, a complete tariff schedule containing all charges to be assessed against TF22-0119 Page 3 of 8 PR1915 (Rev. 06/10/2020) Michigan Natural Resources Trust Fund Development Project Agreement the public utilizing the project area and/or any of the facilities constructed thereon, and to provide to the DEPARTMENT for approval, all amendments thereto before the effective date of such amendments . Preferential membership or annual permit systems are prohibited on grant-assisted sites, except to the extent that differences in admission and other fees may be instituted on the basis of residence. Nonresident fees shall not exceed twice that charged residents. If no resident fees are charged, nonresident fees may not exceed the rate charged residents at other comparable state and local public recreation facilities. f. adopt such ordinances and/or resolutions necessary to effectuate the provisions of this Agreement ; certified copies of all such ordinances and/or resolutions adopted for such purposes shall be forwarded to the DEPARTMENT before the effective date thereof. g. separately account for any revenues received from the project area which exceed the demonstrated operating costs and to reserve such surplus revenues for the future maintenance and/or expansion of the GRANTEE’S park and outdoor recreation program. h. furnish the DEPARTMENT, upon request, detailed statements covering the annual operation of the project area and/or project facilities, including income and expenses and such other information the DEPARTMENT might reasonably require. i. maintain the premises in such condition as to comply with all federal, state, and local laws which may be applicable, and to make any and all payments required for all taxes, fees, or assessments legally imposed against the project area. j. erect and maintain a sign on the property which designates this project as one having been constructed with the assistance of the MNRTF. The size, color and design of this sign shall be in accordance with DEPARTMENT specifications. k. conduct a dedication/ribbon-cutting ceremony as soon as possible after the project is completed and the MNRTF sign is erected within the project area. At least 30 days prior to the dedication/ribbon-cutting ceremony, the DEPARTMENT must be notified in writing of the date, time, and location of the dedication/ribbon-cutting ceremony. GRANTEE shall provide notice of ceremony in the local media. Use of the grant program logo and a brief description of the program are strongly encouraged in public recreation brochures produced by the GRANTEE. At the discretion of the DEPARTMENT, the requirement to conduct a dedication/ribbon-cutting ceremony may be waived. 8. Only eligible costs and expenses incurred toward completion of the project facilities after execution of the Project Agreement shall be considered for reimbursement under the terms of this Agreement . Eligible engineering costs incurred toward completion of the project facilities beginning January 1, 2023 and throughout the project period are also eligible for reimbursement. Any costs and expenses incurred after the project period shall be the sole responsibility of the GRANTEE. 9. To be eligible for reimbursement, the GRANTEE shall comply with DEPARTMENT requirements. At a minimum, the GRANTEE shall: a. Submit a progress report every 180 days during the project period. b. Submit complete requests for partial reimbursement when the GRANTEE is eligible to request at least 25 percent of the grant amount and construction contracts have been executed or construction by force account labor has begun. c. Submit a complete request for final reimbursement within 90 days of project completion and no later than 11/30/2025. If the GRANTEE fails to submit a complete final request for reimbursement by 11/30/2025, the DEPARTMENT may audit the project costs and expenses and make final payment based on documentation on file as of that date or may terminate this Agreement and require full repayment of grant funds by the GRANTEE . 10. During the project period, the GRANTEE shall obtain prior written authorization from the DEPARTMENT before adding , deleting or making a significant change to any of the project facilities as proposed. Approval of changes is solely at the discretion of the DEPARTMENT. Furthermore, following project completion, the GRANTEE shall obtain prior written authorization from the DEPARTMENT before implementing a change that significantly alters the project facilities as constructed and/or the project area, including but not limited to discontinuing use of a project facility or making a significant change in the recreational use of the project area. Changes approved by the DEPARTMENT pursuant to this Section may also require prior approval of the BOARD, as determined by the DEPARTMENT. 11. All project facilities constructed or purchased by the GRANTEE under this Agreement shall be placed and used at the project area and solely for the purposes specified in the application and this Agreement . 12. The project area and all facilities provided thereon, as well as the land and water access ways to them, shall be open to the general public at all times on equal and reasonable terms. No individual shall be denied ingress or egress thereto or the use thereof because of sex, race, color, religion, national origin, residence, age, height, weight, familial status, marital status, or TF22-0119 Page 4 of 8 PR1915 (Rev. 06/10/2020) Michigan Natural Resources Trust Fund Development Project Agreement disability. 13. Unless an exemption has been authorized by the DEPARTMENT pursuant to this Section , the GRANTEE hereby represents that it possesses fee simple title, free of all liens and encumbrances, to the project area. The fee simple title shall not be subject to: 1) any possibility of reversion or right of entry for condition broken or any other executory limitation which may result in defeasance of title or 2) to any reservation or prior conveyance of coal, oil, gas, sand, gravel or other mineral interests. For any portion of the project area that the GRANTEE does not possess in fee simple title, the GRANTEE hereby represents that it has: a. Received an exemption from the DEPARTMENT before the execution of this Agreement , and b. Received prior approval from the DEPARTMENT of a lease and/or easement for any portion of the property not held in fee simple title as indicated in written correspondence from the DEPARTMENT dated ___________________________, and c. Supplied the DEPARTMENT with an executed copy of the approved lease or easement , and d. Confirmed through appropriate legal review that the terms of the lease or easement are consistent with GRANTEE’S obligations under this Agreement and will not hinder the GRANTEE’S ability to comply with all requirements of this Agreement. In no case shall the lease or easement tenure be less than 20 years from the date of execution of this Agreement. 14. The GRANTEE shall not allow any encumbrance, lien, security interest, mortgage or any evidence of indebtedness to attach to or be perfected against the project area or project facilities included in this Agreement . 15. None of the project area, nor any of the project facilities constructed under this Agreement , shall be wholly or partially conveyed in perpetuity, either in fee, easement or otherwise, or leased for a term of years or for any other period, nor shall there be any whole or partial transfer of the lease title, ownership, or right of maintenance or control by the GRANTEE except with the written approval and consent of the DEPARTMENT. The GRANTEE shall regulate the use of the project area to the satisfaction of the DEPARTMENT. 16. The assistance provided to the GRANTEE as a result of this Agreement is intended to have a lasting effect on the supply of outdoor recreation, scenic beauty sites, and recreation facilities beyond the financial contribution alone and permanently commits the project area to Michigan’s outdoor recreation estate , therefore: a. The GRANTEE agrees that lands in the project area are being acquired with MNRTF assistance and shall be maintained in public outdoor recreation use in perpetuity. No portion of the project area shall be converted to other than public outdoor recreation use without the approval of the DEPARTMENT . The DEPARTMENT shall approve such conversion only upon such conditions as it deems necessary to assure the substitution by GRANTEE of other outdoor recreation properties of equal or greater market value and of reasonably equivalent usefulness and location. Such substituted land shall become part of the project area and will be subject to all the provisions of this Agreement. b. Approval of a conversion shall be at the sole discretion of the DEPARTMENT . c. Before completion of the project, the GRANTEE and the DEPARTMENT may mutually agree to alter the project area through an amendment to this Agreement to provide the most satisfactory public outdoor recreation area . 17. Should title to the lands in the project area or any portion thereof be acquired from the GRANTEE by any other entity through exercise of the power of eminent domain, the GRANTEE agrees that the proceeds awarded to the GRANTEE shall be used to replace the lands and project facilities affected with outdoor recreation lands and project facilities of equal or greater market value, and of equal or greater usefulness and location. The DEPARTMENT and BOARD shall approve such replacement only upon such conditions as it deems necessary to assure the replacement by GRANTEE of other outdoor recreation properties and project facilities of equal or greater market value and of equal or greater usefulness and location. Such replacement land shall be subject to all the provisions of this Agreement . 18. The GRANTEE acknowledges that: a. The GRANTEE has examined the project area and has found the property safe for public use or actions will be taken by the GRANTEE before beginning the project to assure safe use of the property by the public, and b. The GRANTEE is solely responsible for development, operation, and maintenance of the project area and project facilities, and that responsibility for actions taken to develop, operate, or maintain the property is solely that of the GRANTEE, and TF22-0119 Page 5 of 8 PR1915 (Rev. 06/10/2020) Michigan Natural Resources Trust Fund Development Project Agreement c. The DEPARTMENT'S involvement in the premises is limited solely to the making of a grant to assist the GRANTEE in developing the project site. 19. The GRANTEE assures the DEPARTMENT that the proposed State-assisted action will not have a negative effect on the environment and, therefore, an Environmental Impact Statement is not required. 20. The GRANTEE hereby acknowledges that this Agreement does not require the State of Michigan to issue any permit required by law to construct the outdoor recreational project that is the subject of this Agreement . Such permits include, but are not limited to, permits to fill or otherwise occupy a floodplain, and permits required under Parts 301 and 303 of the Natural Resources and Environmental Protection Act, Act 451 of the Public Acts of 1994, as amended. It is the sole responsibility of the GRANTEE to determine what permits are required for the project, secure the needed permits and remain in compliance with such permits. 21. Before the DEPARTMENT will approve plans, specifications, or bid documents; or give approval to the GRANTEE to advertise, seek quotes, or incur costs for this project, the GRANTEE must provide documentation to the DEPARTMENT that indicates either: a. It is reasonable for the GRANTEE to conclude, based on the advice of an environmental consultant, as appropriate, that no portion of the project area is a facility as defined in Part 201 of the Michigan Natural Resources and Environmental Protection Act, Act 451 of the Public Acts of 1994, as amended; or b. If any portion of the project area is a facility, documentation that Department of Environment, Great Lakes and Energy-approved response actions have been or will be taken to make the site safe for its intended use within the project period, and that implementation and long-term maintenance of response actions will not hinder public outdoor recreation use and/or the resource protection values of the project area. 22. If the DEPARTMENT determines that, based on contamination, the project area will not be made safe for the planned recreation use within the project period, or another date established by the DEPARTMENT in writing, or if the DEPARTMENT determines that the presence of contamination will reduce the overall usefulness of the property for public recreation and resource protection, the grant may be cancelled by the DEPARTMENT with no reimbursement made to the GRANTEE . 23. The GRANTEE shall acquire and maintain insurance which will protect the GRANTEE from claims which may arise out of or result from the GRANTEE’S operations under this Agreement, whether performed by the GRANTEE, a subcontractor or anyone directly or indirectly employed by the GRANTEE, or anyone for whose acts may hold them liable. Such insurance shall be with companies authorized to do business in the State of Michigan in such amounts and against such risks as are ordinarily carried by similar entities, including but not limited to public liability insurance, worker’s compensation insurance or a program of self-insurance complying with the requirements of Michigan law. The GRANTEE shall provide evidence of such insurance to the DEPARTMENT at its request. 24. Nothing in this Agreement shall be construed to impose any obligation upon the DEPARTMENT to operate , maintain or provide funding for the operation and/or maintenance of any recreational facilities in the project area. 25. The GRANTEE hereby represents that it will defend any suit brought against either party which involves title, ownership, or any other rights, whether specific or general rights, including appurtenant riparian rights, to and in the project area of any lands connected with or affected by this project . 26. The GRANTEE is responsible for the use and occupancy of the premises, the project area and the facilities thereon. The GRANTEE is responsible for the safety of all individuals who are invitees or licensees of the premises. The GRANTEE will defend all claims resulting from the use and occupancy of the premises, the project area and the facilities thereon. The DEPARTMENT is not responsible for the use and occupancy of the premises , the project area and the facilities thereon. 27. Failure by the GRANTEE to comply with any of the provisions of this Agreement shall constitute a material breach of this Agreement. 28. Upon breach of the Agreement by the GRANTEE, the DEPARTMENT, in addition to any other remedy provided by law, may: a. Terminate this Agreement; and/or b. Withhold and/or cancel future payments to the GRANTEE on any or all current recreation grant projects until the TF22-0119 Page 6 of 8 PR1915 (Rev. 06/10/2020) Michigan Natural Resources Trust Fund Development Project Agreement violation is resolved to the satisfaction of the DEPARTMENT; and/or c. Withhold action on all pending and future grant applications submitted by the GRANTEE under the Michigan Natural Resources Trust Fund, Land and Water Conservation Fund and Recreation Passport Grant Program ; and/or d. Require repayment of grant funds already paid to GRANTEE; and/or e. Require specific performance of the Agreement. 29. This Agreement may be canceled by the DEPARTMENT, upon 30 days written notice, due to Executive Order, budgetary reduction, other lack of funding, upon request by the GRANTEE, or upon mutual agreement by the DEPARTMENT and GRANTEE. The DEPARTMENT may honor requests for just and equitable compensation to the GRANTEE for all satisfactory and eligible work completed under this Agreement up until 30 days after written notice, upon which time all outstanding reports and documents are due to the DEPARTMENT and the DEPARTMENT will no longer be liable to pay the GRANTEE for any further charges to the grant. 30. The GRANTEE agrees that the benefit to be derived by the State of Michigan from the full compliance by the GRANTEE with the terms of this Agreement is the preservation, protection and net increase in the quality of public outdoor recreation facilities and resources which are available to the people of the State and of the United States and such benefit exceeds to an immeasurable and unascertainable extent the amount of money furnished by the State of Michigan by way of assistance under the terms of this Agreement. The GRANTEE agrees that after final reimbursement has been made to the GRANTEE, repayment by the GRANTEE of grant funds received would be inadequate compensation to the State for any breach of this Agreement. The GRANTEE further agrees therefore, that the appropriate remedy in the event of a breach by the GRANTEE of this Agreement after final reimbursement has been made shall be the specific performance of this Agreement . 31. The GRANTEE shall return all grant money if the project area or project facilities are not constructed, operated or used in accordance with this Agreement. 32. The GRANTEE agrees not to discriminate against an employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or a matter directly or indirectly related to employment, because of religion, race, color, national origin, age, sex, sexual orientation, height, weight, marital status, partisan considerations, or a disability or genetic information that is unrelated to the person's ability to perform the duties of a particular job or position. The GRANTEE further agrees that any subcontract shall contain non-discrimination provisions which are not less stringent than this provision and binding upon any and all subcontractors. A breach of this covenant shall be regarded as a material breach of this Agreement. 33. The DEPARTMENT shall terminate this Agreement and recover grant funds paid if the GRANTEE or any subcontractor , manufacturer, or supplier of the GRANTEE appears in the register compiled by the Michigan Department of Licensing and Regulatory Affairs pursuant to Public Act No. 278 of 1980. 34. The GRANTEE may not assign or transfer any interest in this Agreement without prior written authorization of the DEPARTMENT. 35. The rights of the DEPARTMENT under this Agreement shall continue in perpetuity. If this Agreement is approved by Resolution, a true copy must be attached to this Agreement. A sample Resolution is on the next page. TF22-0119 Page 7 of 8 PR1915 (Rev. 06/10/2020) Michigan Natural Resources Trust Fund Development Project Agreement SAMPLE RESOLUTION (Development) Upon motion made by ______________________________, seconded by ________________________, the following Resolution was adopted: “RESOLVED, that the _____________________________, Michigan, does hereby accept the terms of the Agreement as received from the Michigan Department of Natural Resources, and that the ______________________________ does hereby specifically agree, but not by way of limitation, as follows: 1. To appropriate all funds necessary to complete the project during the project period and to provide ___________________________($_____________) dollars to match the grant authorized by the DEPARTMENT. 2. To maintain satisfactory financial accounts, documents, and records to make them available to the DEPARTMENT for auditing at reasonable times. 3. To construct the project and provide such funds, services, and materials as may be necessary to satisfy the terms of said Agreement. 4. To regulate the use of the facility constructed and reserved under this Agreement to assure the use thereof by the public on equal and reasonable terms. 5. To comply with any and all terms of said Agreement including all terms not specifically set forth in the foregoing portions of this Resolution.” The following aye votes were recorded: ________________ The following nay votes were recorded: ________________ STATE OF MICHIGAN ) ) ss COUNTY OF ____________ ) I, _______________________________, Clerk of the ___________________________, Michigan, do hereby certify that the above is a true and correct copy of the Resolution relative to the Agreement with the Michigan Department of Natural Resources, which Resolution was adopted by the ______________________________ at a meeting held ________________________. ________________________________ Signature ________________________________ Title ________________________________ Date TF22-0119 Page 8 of 8 PR1915 (Rev. 06/10/2020) Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, 2023 Title: Transmission Main Water Meter Submitted By: Dan VanderHeide Department: DPW – Water Filtration Brief Summary: Staff is requesting approval to award the transmission main water meter project to Wadel Stabilization. Detailed Summary & Background: A 30” water transmission main was recently constructed from the Water Filtration Plant to the Muskegon Channel. While the primary purpose of this water main is to provide a second connection to the Muskegon County Northside water system, it also serves the City of Muskegon’s water system. An existing water meter near the channel measures all water flow into the County water system, but it does not capture any water flow into the City. Installing a water meter near the Water Filtration Plant will measure all the water flowing through this main, including the currently unmetered water flowing into the City. Metering this water as it leaves the Water Filtration Plant is critical to overseeing water plant operations, managing the water fund, and ensuring regulatory compliance. The Commission has already approved earlier stages of this project. At the September 27, 2022 meeting, the Commission approved contracting Prein&Newhof for engineering services for the design, bidding and construction phases of this project. At the August 22, 2023 meeting, the Commission approved an amendment to the agreement with Muskegon County to permit the installation of the meter on the County-owned water main. An invitation to bid on the construction portion of this project was posted on the City’s website and four bids were received. Prein&Newhof reviewed the bids and recommends the low bid of $92,580.00 from Wadel Stabilization. This project is included in the Water Filtration Plant’s budget for FY 23-24. Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure Amount Requested: $92,580.00 Budgeted Item: Yes No N/A Fund(s) or Account(s): 591-901-801-092034 Budget Amendment Needed: Yes No N/A Recommended Motion: Move award of the transmission main water meter project to Wadel Stabilization. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review September 14, 2023 2221055 Mr. Joe Buthker City of Muskegon Water Filtration Plant 1900 Beach Street Muskegon, MI 49441 RE: Water Filtration Plant - Beach Street Transmission Main Flow Meter Dear Joe: On Tuesday, September 12, 2023, the City received four bids for the referenced project. The bids ranged from $92,580.00 to $185,250.00. Wadel Stabilizaton of Hart, Michigan submitted the lowest bid of $92,580.00. A tabulation of the bids is enclosed for reference. We discussed the project with Wadel Stabilization. They indicated a good understanding of the project’s critical elements. They did not express any concerns with completing the project successfully and on time. Wadel Stabilization has successfully completed projects of similar size and scope with Prein&Newhof in the past. If you have any questions, please do not hesitate to ask. Sincerely, Prein&Newhof Digitally signed by Peter Brink DN: C=US, E=pbrink@preinnewhof.com, O=Prein&Newhof, CN=Peter Brink Location: Prein&Newhof Reason: I have reviewed this document Date: 2023.09.14 08:02:08-04'00' Peter W. Brink, P.E. Enclosures: Bid Tabulation Sheets 4910 Stariha Drive Muskegon, MI 49441 t. 231-798-0101 f. 231-798-0337 www.preinnewhof.com S:\2022\2221055 City of Muskegon\COR\ltr 2023-09-14 Award.docx Bid Tabulation Summary Bid Date: Bid Time (Local): September 12, 2023 2:00 PM Owner: City of Muskegon Project Title: Water Filtration Plant - Beach Street Transmission Main Flow Meter Project #: 2221055 Number Contractor Name Bid Amount Wadel Stabilization 1st $92,580.00 0 2500 N Oceana Dr, Hart, MI 49420 Jackson-Merkey Contractors 2nd $96,494.00 0 3430 Lund Avenue, Muskegon, MI 49442 Freedom Construction 3rd $162,000.00 0 1525 108th St SW, Grand Rapids, MI 49315 Hallack Contracting 4th $185,250.00 0 4223 W Polk Rd, Hart, MI 49420 3355 Evergreen Dr. NE Grand Rapids, MI 49525 t. 616-364-8491 f. 616-364-6955 www.preinnewhof.com page 1 of 2 \\grfileserver\shared\2022\2221055 City of Muskegon\CDS\bid tabulation 2023-09-12 WFP Beach St.xlsx 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: Wadel Stabilization Jackson-Merkey Contractors Freedom Construction Hallack Contracting Water Filtration Plant - Beach Street Transmission Main Flow 2500 N Oceana Dr 3430 Lund Avenue 1525 108th St SW 4223 W Polk Rd Meter Hart, MI 49420 Muskegon, MI 49442 Grand Rapids, MI 49315 Hart, MI 49420 Bid Date & Time: Project #: September 12, 2023 at 2:00 PM 2221055 BID SUMMARY Base Bid $92,580.00 $96,494.00 $162,000.00 $185,250.00 SUBCONTRACTORS Site Work Wadel Stabilization JMC Nex Gen Hallack Contracting Electrical Parkway Electric Parkway Electric Parkway DVT Integration Parkway Electric (Tetra Tech) TBD Tetra Tech Tetra Tech \\grfileserver\shared\2022\2221055 City of Muskegon\CDS\bid tabulation 2023-09-12 WFP Beach St.xlsx page 2 of 2 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, 2023 Title: Filter Plant Cell Tower Verizon Lease Submitted By: Dan VanderHeide Department: DPW Brief Summary: Staff requests authorization to enter into a lease with “Muskegon Cellular Partnership By: Cellco Partnership d/b/a Verizon Wireless” to grant Verizon space on the City’s cellular tower at the water filtration plant. Detailed Summary & Background:In early 2021 Commission authorized the construction of a cellular communications tower at the water filtration plant in the hope of spurring cellular companies to provide better service in the extreme western part of the City, including the beach. Since that time, staff has been working with Maralat Communications to entice a cellular provider to locate on the tower. A lease has been negotiated with Verizon Wireless and is included for consideration and approval. The terms are $3,500 per month for 25 years (including extensions) with a 2% annual escalator, a total income to the water fund of $1,345,273 over the life of the lease. At the time of tower construction, it was anticipated we would achieve terms of $1,800 per month with a 3% annual escalator. Over the 25-year term of the lease, the negotiated terms will bring in more than $550,000 over expectations. Much of the credit goes to Maralat Communications and Parmenter Law for assisting with negotiations. Several additional spaces on the tower are available, and staff hopes this lease will encourage other providers to locate on the tower soon, further improving service in the area. The construction cost of the tower will be paid back by the end of just the fourth year of this lease. Goal/Focus Area/Action Item Addressed: Sustainability in financial practices and infrastructure. Amount Requested: N/A (Revenue) Budgeted Item: Yes No N/A Fund(s) or Account(s): 591-000 Budget Amendment Needed: Yes No N/A Recommended Motion: I move approval of the presented lease with Muskegon Cellular Partnership by: Cellco Partnership d/b/a Verizon Wireless, and authorize the Mayor to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Agenda Item Review Form Muskegon City Commission Commission Meeting Date: Title: Zencity Contract Approval Submitted By: Deborah Santiago-Sweet Department: Manager’s Office Brief Summary: Staff is requesting approval of 5-year contract with Zencity, the city’s community engagement tool, Connect Muskegon, that has been in trial for the last 9-months. Detailed Summary & Background: In December 2023, staff began vetting several community engagement platforms. This platform will be the go-to source for our neighbors to engage with and provide feedback to city staff on projects or issues impacting the community. The Manager signed an initial 1-year contract with Zencity to test the product and gather staff, commission, and community experience. Since launching the product in March 2023, city staff from all divisions have used the forward-facing portion of Zencity, known publicly as “Connect Muskegon” for over 15 projects. The product is user friendly for staff, and has received several positive comments from community members on the depth and detail of each project. Goal/Focus Area/Action Item Addressed: COMMUNITY CONNECTION- Create an environment of mutual respect and trust between local government and the community we serve. Increase communication with residents, workers, business owners, and visitors to inform, educate, and create opportunities for input. Amount Requested: $24,000 annually, for 5 Budgeted Item: years Yes No N/A Fund(s) or Account(s): 101-103-801 Budget Amendment Needed: Yes No N/A Recommended Motion: I move to approve the 5 year contract with Zencity Technologies US,Inc and authorize the City Manager to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review DocuSign Envelope ID: 323F8812-FFDD-4141-8DED-875E955EA73D DocuSign Envelope ID: 323F8812-FFDD-4141-8DED-875E955EA73D Eyal Fedeer-Levy CEO Feb. 28. 2023 DocuSign Envelope ID: 323F8812-FFDD-4141-8DED-875E955EA73D DocuSign Envelope ID: 323F8812-FFDD-4141-8DED-875E955EA73D DocuSign Envelope ID: 323F8812-FFDD-4141-8DED-875E955EA73D Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, Title: 2022 Consolidated Annual 2022 Performance Evaluation Report (CAPER) Hearing Submitted By: Sharonda Carson Department: CNS Brief Summary: The CAPER is available on our website for citizen review and comment period of 15 days from September 14 -October 6, 2023. A public Hearing is another opportunity to comment about the Federal CDBG and HOME program activities performed during the fiscal year 2022 (July 1, 2022 - June 30, 2023). Click on the link to view the CAPER Detailed Summary & Background: Citizen input is a necessary process of program activities for the CDBG/HOME annual allocations. The 2022 CAPER is another opportunity to comment on the performance achievements of the annual projects during the Hearing. Goal/Focus Area/Action Item Addressed: Refer to the 2022-2027 Long Term Goals document. Amount Requested: Budgeted Item: Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: Yes No N/A Recommended Motion: To conduct a Public Hearing for the 2022 CAPER review. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT CITY OF MUSKEGON Fiscal Year 2022 Community and Neighborhood Services CNSMail@shorelinecity.com 933 Terrace Street, Room 202 Muskegon, MI 49440 (231) 724-6717 Table of Contents Executive Summary....................................................................................................................................... 1 Resources and Investments .......................................................................................................................... 1 Leveraging ................................................................................................................................................. 1 Goals and Outcomes ..................................................................................................................................... 1 Racial Demographics of Persons Served ....................................................................................................... 3 Affordable Housing ....................................................................................................................................... 4 Income of Persons Served ......................................................................................................................... 4 Homelessness & Other Special Needs .......................................................................................................... 5 Public Housing............................................................................................................................................... 5 Monitoring .................................................................................................................................................... 6 Other Actions ................................................................................................................................................ 6 HOME Investment Partnerships Program (HOME) ....................................................................................... 7 Rental Inspections ..................................................................................................................................... 8 Affirmative Marketing .............................................................................................................................. 8 Program Income........................................................................................................................................ 8 Community Development Block Grant (CDBG) ............................................................................................ 8 Section 3........................................................................................................................................................ 9 Executive Summary The Consolidated Annual Performance Evaluation Report (CAPER) is an important and necessary communication tool between the City of Muskegon, the US Department of Housing and Urban Development (HUD) and the public. Its purpose is to inform and report on the progress the City of Muskegon’s Community and Neighborhood Services Department has made toward the goals it set forth in its 2021-2026 Consolidated Plan and respective Action Plan. Resources and Investments This section details the resources that were made available to the City of Muskegon through HUD entitlement programs, leveraged funds and program income. All funds were invested in programs that served people in need within the limits of the City of Muskegon. For 2022, the City of Muskegon was awarded $912,894 and $339,650 in Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding, respectively. The amount spent this year exceeds these award numbers, because program income and past-year funding was carried forward and invested in programming. Source of Funds Resources Made Available Amount Expended This Year CDBG $912,894 $1,256,357.88 HOME $339,650 $383,827.09 Leveraging Leveraging refers to the use of federal funds to acquire additional resources. While these funds weren’t budgeted as leverage in state, federal, or local grant applications, we used CDBG funds allocated to repair programs to increase the impact of all of our programs and vice versa. The City of Muskegon used the following current grant programs in tandem with CDBG funding to maximize the impact on our community: Healthy Homes Production Grant (HUD), Medicaid CHIP Lead Abatement Grant (State of Michigan), Senior Millage Grant (Senior Resources, Muskegon County), DTE Energy Efficiency Grant (DTE Energy). There was no public or privately owned land utilized this year, nor a match requirement for the city. Goals and Outcomes This section details information showing the projects the City of Muskegon has completed this year as it relates to the goals set by the Consolidated and Annual Action Plans. It demonstrates how the use of funds addresses the priorities and specific objectives identified in the plan. The city utilized funding for home repairs, façade improvements, park improvements, creating new homeowners through homebuyers’ assistance, and the rehabilitation of homes to create affordable homes for the community. We identified through our efforts that there is a great need for housing repairs due to the many applications we receive and the community has benefited from the opportunity to become homeowners. Of the $1,256,357.88 in CDBG funds invested this year, the majority of funds went toward home repairs for homeowners within the City of Muskegon that fell within income requirements, as shown below. 1|Page This was followed by the Fire Station Bond Repayment, Administration, Service Delivery, Youth Services, and Child Care Services. These investments resulted in 585 citizens receiving various services in the City of Muskegon. For a breakdown of services see below: Investment Persons Served Priority Home Repair & Residential Façade 45 Homes Repaired Programs - $548,993.75 Boys & Girls Club of the Muskegon Lakeshore – 491 Youth Served Youth Services - $90,000 YMCA – Child Care - $25,000 49 Scholarships Provided The city invested $383,827.09 in HOME Investment Partnerships Program funds in the City of Muskegon as follows: 2|Page These investments resulted in the creation of three units of affordable housing, and eleven low-income homebuyers purchasing homes. Racial Demographics of Persons Served The City of Muskegon’s programming is built to serve its citizens. Those served were primarily Black or African American that were considered low or extremely low income. The bulk of these were youth served through partnerships with Boys and Girls Club of the Muskegon Lakeshore, and the YMCA. Of the 591 served, 9 were of Hispanic origin. 3|Page Affordable Housing This section compares the goals toward preserving and creating affordable housing with the results of the past year and summarizes the income levels of the households served. The table below details our goals versus actual accomplishments. Total, fifty-eight non-homeless households were served this program year. Activity Goal 2022 Accomplishment Rental Assistance 3 0 New Unit Production 2 0 Rehab of Existing Units 1 47 Acquisition of Existing Units 3 11 We exceeded our goals for homebuyer assistance and rehabilitation of existing units. Unfortunately, we didn't provide rental assistance or produce new units this year. This is largely due to the fact that historically we don't offer rental assistance. In addition, we don't have an active CHDO in our community to fund to support the production of new units. Income of Persons Served The majority of those served by our programming were considered Extremely Low Income, meaning their household income was at or below 50% of the area median income. 60% met this definition, with the other 40% of persons served having incomes between 51%-80% of area median. These outcomes will impact future annual action plans. Given our recent housing study conducted, it was evident that we need to increase our footprint in the housing industry. Our community has about 400 units of housing that is considered substandard and families are contributing over 30% of their income toward rent. Our community also is very limited in the types of housing we need to be able to provide. Aside from that, our current waitlist, families served and the study combined will help us gauge where the need is so that we are able to respond and provide resources to the families. The city is very proud and feel that we have had a very productive year that will only get better in the future. The community is becoming more aware of our program offerings and they are taking advantage of the opportunity. Our services have impacted many neighborhoods throughout the city and the impact is noticeable. 4|Page Homelessness & Other Special Needs The purpose of this section is to evaluate the city’s progress in meeting objectives for reducing and ending homelessness through outreach, emergency shelter, and avoiding homelessness. The city has made great progress as a board member of the Continuum of Care (CoC) to help reduce homelessness in our community. The CoC is an organization in pursuit of helping homeless persons find affordable housing in our community. The City has participated in a board capacity to structure and facilitate housing opportunities that prevent housed homeless families from experiencing another homeless scenario. Staff serve on varies committees that seek additional funding for partners, plan for upcoming years ad engage with other agencies to ensure that all available resources are made available to all community members. Regionally, the cities of Muskegon Heights and Norton Shores are represented as well, and our focus is to meet objectives set by the CoC board to reach this critical population. We have continued to explore and navigate opportunities to assist our youth. The city is investigating developing more units that will be utilized for rental housing for families who are or will be experiencing homelessness. We have invested our HOME ARP funding to assist with addressing housing needs. Families who are currently seeking shelter are referred out to community partners that house homeless families. We are also working to collaborate with TrueNorth Community Services who was recently voted as the Muskegon HARA to strengthen the housing needs that may be made available in the community. Our home repair program is designed to assist homeowners who have a priority housing issue that could displace them from their home because of plumbing, electrical, mechanical or critical structure deficiencies. The help provided by the city that allows a household to receives assistance allows them the ability to remain in their home. In addition, we also offer homebuyers assistance to those who are wanting to transition to a more permanent housing solution and purchase a home. These funds offer down payment assistance that are applied to closing cost. Public Housing This section describes the status of the Public Housing Authority (PHA), and the efforts the PHA and city has made to engage residents and address needs. The PHA is not designated as troubled, and therefore hasn’t received assistance from the City of Muskegon financially. Public housing residents are known to be at a fixed-income status and because of this their likelihood to become a homeowner is rare. In addition, homeownership has not been advantageous given rise in the housing market of the past 5 years. The PHA has a Homeownership Program but other strategies to encourage tenant management have been encouraged more so than homeownership. The public housing residents are managed by staff with monthly reporting of income status. Annually housing staff will meet with each tenant to assess income and empower tenants to manage their living situation by giving them options like homeownership, outside rental opportunities, or housing facilities that fit their income and household needs. Currently, the Rental Assistance Demonstration option is being presented to give tenants encouragement with the proposed changes. No other actions have been taken by the city at this time. 5|Page Tenants are included in management through Tenant Advisory meetings where decision making and changes to the public housing facility are discussed. The resident board has been actively working with PHA staff to oversee the tenants’ issues and concerns and manage the housing facility. Recently, the PHA has awarded vouchers to developers which offer housing choice/opportunities that are newer and different from the current conditions of the public housing venue. The highlight for the Housing Commission is that the facility is embarking on a revitalization renovation through the RAD (Rental Assistance Demonstration) process offered to PHAs. Monitoring This section describes the standards and procedures used to monitor activities and projects to ensure compliance. It explains the process for citizen participation and comprehensive planning efforts. Standards and procedures utilized to monitor activities carried out in furtherance of the plan to ensure long-term compliance is documenting each application received, tracking demographic information, household size and amounts associated with projects. Monthly we meet with our finance team to compare expenditures and outcomes of our programming. We ensure that all of our accomplishments are entered quarterly and draws are completed on a monthly basis. We ensure that every bid is competitive by soliciting to all trades and selecting the lowest, most reliable bid. All files are reviewed for required documentation and approval for compliance purposes. Another way we ensure compliance is by reviewing policies so that they are current and follow federal guidelines. The city provides citizens with reasonable notice and an opportunity to comment on performance reports by providing notice to the public at least 10 days in advance for 15-, 20- and 30-day comment periods via social media, company website and email. The city has also started releasing a newsletter to help the community stay informed and offer opportunities to engage. There is also a news blast that allows residents to sign up to receive alerts to receive up to date information in real time. Other Actions The purpose of this section is to detail the additional efforts the City of Muskegon takes in addressing barriers to meeting underserved populations’ needs, to mitigate negative effects of public policies that serve as barriers to affordable housing, and address lead-based paint hazards among others. The city is consistently reviewing old zoning policies that negatively affect or create barriers to housing options within the city. The approach taken to complete an updated view of housing choice for our community and developers was achieved through Rezoning parcels in our eligible census tracts Additionally, our city is designated as a redevelopment ready community. The city is being strategic about creating housing that will fit the needs of every living situation. The city is seeking to adopt Form Based Code throughout additional neighborhoods. This will help to remove barriers to development and allow for additional types of housing like mother-in-law suites, “tiny” homes and mixed-use spaces with housing above. Also, this change will provide property owners with more flexibility to use their property for income generating purposes by allowing for smaller rentals in current residential spaces. To meet the needs of the underserved, we have become more diligent in ensuring the community has accurate information about programs administered through our offices. We have also engaged in more outreach opportunities with community events with partners and those of our own. We ensure that 211, a local resource that provides citizens with information about assistance programs and 6|Page organizations in the community, has accurate information about programs and that all applications are current in person and online. We have also sought to inform a wider audience through television appearances and increased presence on social media platforms. We seek to address lead-based paint hazards in our community through a state funded program for but mostly, every affordable housing unit produced is cleared of Lead-based paint hazards through abatement and remediation. Our HOME funded units through Rental Rehab or Homebuyers programs address lead as a required feature of renovations. Our programs include this action up front before rehabilitation can take place, and the properties are cleared to ensure safety of future residents. In addition to the above, we have instituted structures into all home repair programs to address lead rather it is paint, water, or sewer lines. To reduce the number of poverty-level families, we continue to serve on boards and strengthen partnership with our CoC, to stay abreast of needs of the homeless population. the goal is to increase awareness, resources and access to resources while removing barriers. Our social service agencies in our community have always been a partner to address the needs of our income challenged families. We have worked with the State and local Departments of Health and Human Services, Community Foundation and other nonprofit agencies to meet expressed needs of our citizens. Our services are limited to income qualifying households but we do not limit our coordination to offer and receive referrals from many organizations that focus on housing, health and public needs. The City of Muskegon also coordinates with the PHA through the appointments of 3 city staff to the Housing Board. The Board Officers have continued to impress that social service options must be present inside the building. This year, the executive director has managed to enhance the building with the participation of social service partners, local programs that give financial, food resources and social supports onsite as possible because of the pandemic. Institutional structure is developed through trial and success of building a strong community. The city supports organized Neighborhood Associations, BLIGHT fight task force and a number of community relation committees. The city is in the midst of an analysis of Impediment to identify any impediment through programs and services offered. Our response to overcoming impediments identified of our jurisdiction occurred by contracting with the Fair Housing Center of West Michigan who review the HMDA reporting of the past years to show how our banks are helping families. We met with local banks and lenders and shared how we can do better in a fair and impartial manner to overcome prejudice and discrimination. Using the FHCWM to help us survey our community residents, educate our local banks, realtors, rental owners, and ourselves to overcome hidden or visual disparities in our jurisdiction. HOME Investment Partnerships Program (HOME) Under the HOME Investment Partnerships Program, HUD allocates funds by formula among eligible State and local governments to strengthen public-private partnerships and to expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low- income and low-income families. Generally, HOME funds must be matched by nonfederal resources, but the City of Muskegon is exempt from this requirement. The City of Muskegon is considered a participating jurisdiction (PJ) which allows for the use of HOME funds to carry out multi-year housing strategies through acquisition, rehabilitation, new construction of housing, and tenant-based rental assistance. Funds must be distributed within the City of Muskegon’s boundaries, or in jointly funded 7|Page projects within the boundaries of contiguous local jurisdictions which serve residents from both jurisdictions (24 CFR 92.201(a)). Rental Inspections There were no required inspections scheduled this year. Affirmative Marketing Recently, the Affirmative Marketing Plan was rewritten to be more detailed. While we have no rental projects that contain five or more rental units, therefore not triggering the affirmative marketing requirements at 24 CFR 92.351, the City of Muskegon believes Affirmative Marketing is crucial to ensure success of our programs. As such, our newly revised plan allows us to be well equipped to market our programs appropriately. Our homebuyer programs adhere to these regulations by utilizing the equal housing opportunity logo on our programs to inform the public of our fair housing practices. We advertise our properties and programs throughout the community via 211, newspaper, online, social media, and by postings. Our assessment of the Affirmative Marketing Plan is that is sufficient at this time. Program Income The City of Muskegon acquires program income through the sale of homes to low-income families, rents on city-owned affordable rental properties, lien repayments, and application fees from the Rental Rehabilitation Program. These funds are reinvested into programming to support affordable housing in our community through homebuyer assistance and housing rehabilitation for sale to low-income households. We started the fiscal year on July 1, 2022 with $106,416.09 in program income from previous years. Through the sale of 769 Catawba and 548 E Dale Ave to income qualifying households and lien repayments, $273,639.25 was generated in program income. A total of $47,350.18 was used to assist low-income households toward purchasing homes within the City of Muskegon through the Homebuyer’s Assistance Program, and the remaining $10,608.98 was used to pay final invoices for Dale and Catawba. All this leaves the city with $322,096.18 to allocate to future programming in the 2023 Action Plan. Balance on hand Amount Recieved Balance on hand Amount Spent July 1, 2022 FY 22 June 30, 2023 $106,416.09 $273,639.25 $57,959.16 $322,096.18 Community Development Block Grant (CDBG) This section is meant to detail any changes to program objectives and indications of how the city would change its programs as a result of its experiences. Currently there has not been any changes to in the city of Muskegon's objectives but we are invested in ensuring all citizens have access to housing that fits their needs and desires. If there is to be a suggested change the objective it would be to ensure that the city is addressing the housing shortage which has been a crisis for this community. The City of Muskegon has no open Brownfields Economic Development Initiative (BEDI) grants. 8|Page Section 3 Section 3 of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701u and 24 CFR Part 135] represents HUD’s policy for providing preference for new employment, training, and contracting opportunities created from the usage of covered HUD funds to low- and very low-income residents of the community where certain funds are spent (regardless of race or gender), and the businesses that substantially employ these persons. The City of Muskegon doesn’t have any projects that trigger Section 3 requirements. 9|Page Agenda Item Review Form Muskegon City Commission Commission Meeting Date: September 26, Title: Rezoning of properties in the Angel, 2023 McLaughlin, and Jackson Hill neighborhoods Submitted By: Mike Franzak Department: Planning Brief Summary: Staff-initiated request to rezone all of the properties zoned R-1, R-2, R-3, and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to FBC-UR. Detailed Summary & Background: The Planning Commission held a public hearing on the case and voted 5-0 in favor of denying the request. Goal/Focus Area/Action Item Addressed: Goal 2: Economic Development, Housing, and Business. 2.3 Increase variety of housing types. Amount Requested: N/A Budgeted Item: Yes No N/A Fund(s) or Account(s): N/A Budget Amendment Needed: Yes No N/A Recommended Motion: To approve the request to rezone all of the properties zoned R-1, R-2, R-3, and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to FBC-UR. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Planning Commission Packet Excerpt: SUMMARY 1. The majority of properties in the McLaughlin, Angell, and Jackson Hill neighborhoods are zoned for single-family residential houses. However, this does not match the reality of the neighborhoods, as each of these neighborhoods have a large variety of missing middle houses (see maps on following pages). A downzoning effort in the 1990’s amended the zoning to only allow for single-family houses. This made the existing missing middle houses legally non-conforming (grandfathered). Legally con-conforming houses face challenges with financing from banks, which leads to disinvestment, as property owners may be prevented from accessing capital to update their houses. It also makes it difficult for new buyers to secure financing to purchase the property. 2. Much of the downzoning effort was attributed to the dissatisfaction with neighbors regarding over-crowding and blight associated with these types of houses. Many of the homes were originally constructed as single-family houses and later converted to multi- family houses, with little regulations in place. This led to multiple units being located on small lots, leading to overcrowding issues that lead to parking, storage and general blight concerns. The form based code, urban residential context area has taken these issues into account and does not allow the conversion of single-family houses to multi-family units and newly constructed houses are required to meet certain property regulations that prevent over-crowding. 3. The recent housing needs assessment conducted for the City of Muskegon by Bowen National Research has indicated that the City of Muskegon needs to develop nearly 3,000 housing units over the next five years to keep up with demand and stabilize pricing. This large number of additional units cannot be met by building only single-family houses within our neighborhoods. The City has lost hundreds of housing units over the past couple decades through disinvestment and demolition. Many of these demolished homes were missing middle types. Once they are demolished, they can only be rebuilt as single-family houses, which forces residents out of their neighborhoods, reduces the housing stock, and ultimately drives up the cost of housing; which will most likely lead to gentrification. An increase in housing stock, which serves to keep housing prices stabilized, helps to reduce gentrification. 4. Over the past couple of years, the most notable concern that has been brought forward by those opposing missing middle housing is gentrification. However, there has also been discussions on how the addition of any new housing could lead to gentrification. Adding any new housing to a neighborhood has the potential for gentrification, because new residents will be added to the neighborhood, and concerns over a new identity for the area may arise. These are valid concerns for neighbors. However, these concerns are true whether the new housing is single-family or missing middle. When new housing is introduced to a neighborhood, missing middle housing actually helps fight gentrification by providing additional living options for different sized families. Houses containing multiple-units are cheaper to build than multiple single-family houses. Keeping rents stabilized is the best thing the City can do to reduce gentrification while constructing new housing. Only allowing single-family houses drives up housing costs and ultimately prices residents out of their neighborhoods. 5. Please click here to view a short article from the White House’s website that discusses the discriminatory origins of single-family zoning. 6. Notice of the rezoning request was sent to every property in the Jackson Hill, McLaughlin and Angell neighborhoods that are zoned R-1, R-2, R-3 and RT. Notice was also given to each of these neighborhood associations. At the time of this writing, staff had not received any comments from the public. Please click here to view the form based code document on the City’s website. We know from the rental maps that these neighborhoods are already made up of missing middle housing types. Form Based Code only allows duplexes/small multiplexes on appropriate lot sizes. Note required lot widths. So you end up with this Not this Proper Zoning 4-unit house (left) on an appropriately sized lot with alley access next to vacant lot and a single-family house (right). Improper Zoning 3-unit house (below left) on a lot that is too small and without alley access, with parking in the yard. 4- unit house (below right) with no alley access, using a vacant lot for parking/storage. Housing Needs Assessment Please click here to view the Housing Needs Assessment for the City of Muskegon, conducted by Bowen National Research. Housing Needs Assessment excerpt: Single-Family vs. Form Based Code, Urban Residential Zoning Outcome Single-Family FBC, UR Establishes standards to develop quality housing that fits into the neighborhood Establishes setbacks for safety and privacy Prohibits intense uses like heavy commercial/industrial Can achieve housing supply recommended in HNA Homeowners can subsidize mortgage with on-site rental income (create generational wealth) Provides housing options for a variety of family sizes and income levels Prices people out of neighborhoods by limiting housing options Creates non-conforming houses and obstacles towards financing Displaces residents off property after disasters to non-conforming houses CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCE NO. An ordinance to amend the zoning map of the City to provide for a zone change for all of the properties zoned R-1, R-2, R-3, and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to FBC-UR. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: The zoning map of the City of Muskegon is hereby amended to change the zoning for all of the properties zoned R-1, R-2, R-3, and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to FBC-UR. This ordinance adopted: Ayes: Nayes: Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: __________________________ Ann Meisch, MMC City Clerk CERTIFICATE (Rezoning all of the properties zoned R-1, R-2, R-3, and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to FBC-UR.) The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the 26th day of September, at which meeting a quorum was present and remained throughout, and that the original of said ordinance is on file in the records of the City of Muskegon. I further certify that the meeting was conducted and public notice was given pursuant to and in full compliance with the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept and will be or have been made available as required thereby. DATED: ___________________, 2023 ________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish Notice of Adoption to be published once within ten (10) days of final adoption. CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on September 26, 2023, the City Commission of the City of Muskegon adopted an ordinance amending the zoning map to provide for the change of zoning for all of the properties zoned R-1, R-2, R-3, and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to FBC-UR.): Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten days from the date of this publication. Published ____________________, 2023 By ___________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: 09/26/2023 Title: BSA Cloud Software Submitted By: Jason Boes, Director of Department: Finance Division Information Technology Brief Summary: Staff is requesting authorization to enter into an agreement with BS&A software to upgrade and migrate our BS&A Enterprise Resource Planning(ERP) software to the cloud. Detailed Summary & Background: Since 2006, the City has been utilizing BS&A software for financial management, payroll, utility management and billing, permitting and inspections, assessing, human resource management, and more. The City is at a point where our locally hosted BS&A solution needs to be upgraded. BS&A offers an enhanced cloud-based solution. BS&A has made it clear that they are focusing heavily on their cloud, and the on-prem version will eventually be retired. They are no longer adding new features to the on-prem solution. Knowing this, we would like to use this upgrade point as an opportunity to move to the BS&A cloud, leveraging all the latest features it provides. The BS&A cloud will improve the City’s efficiencies across the board by providing an always-on/available anywhere software solution. BS&A software has a long list of municipalities(over 230) in line to be migrated to the cloud. The project timeline for full migration and user training is going to be 18-24 months. To enter into this agreement to upgrade to the cloud, we are responsible for $30,800 this budget year, In FY 24-25, we will budget $201,675 to cover the remaining upgrade costs due at project completion. Starting in FY 25-26, BS&A Cloud yearly support, maintenance, and hosting will cost $132,800, budgeted annually. We have $10,000 budgeted in 23-24 for a BS&A upgrade. A budget amendment will happen in the first quarter re-forecast adding the additional $20,800 to cover the initial cost. Goal/Focus Area/Action Item Addressed: Goal 4 - Financial Infrastructure Amount Requested: $30,800 Budgeted Item: Yes No N/A Fund(s) or Account(s): 101-228-804 Budget Amendment Needed: Yes No N/A Recommended Motion: I move to authorize City staff to enter into an agreement with BS&A software for a cloud-hosted ERP solution and authorize the Mayor to sign. Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review SOFTWARE AS A SERVICE AGREEMENT This Software as a Service Agreement, including the attached Exhibits (“Agreement”), is entered into by and between BS&A Software LLC ("BSA"), a Delaware corporation and the City of Muskegon, Muskegon County MI (“Customer”), effective the date of the signature of the last Party to sign the Agreement (“Effective Date”). Each party to the Agreement is referred to as a “Party” and the parties, collectively, are referred to as “Parties.” This Agreement sets the terms and conditions under which BSA will furnish certain Software as a Service (“SaaS”) and certain professional services described herein to Customer. SECTION A – SAAS SERVICES 1. Rights Granted. 1.1. Upon the Effective Date, subject to the terms of this Agreement and Customer’s ongoing compliance therewith, BSA hereby grants to Customer a non-exclusive, non-transferable, and non-assignable license to use the BSA Software Products. “BSA Software Product(s)” means, the: (i) BSA Software as a Service set forth in Schedule 1 to Exhibit A; (ii) related interfaces and customizations; (iii) BSA manuals, BSA official specifications, and BSA user guides provided in or with BSA software products set forth in Schedule 1 to Exhibit A (“Documentation”); and (iv) all modifications to the BSA software products set forth in Schedule 1 to Exhibit A, including, but not limited to, fixes, new versions, new releases, updates, upgrades, corrections, patches, work-arounds (collectively, “Modifications”). For the avoidance of doubt, Documentation does not include advertising, other general statements about products, or statements by sales or other staff members. 1.2. Customer acknowledges that BSA will not ship copies of the BSA Software Products as part of the SaaS Services. 2. Restrictions. Customer will not (i) sublicense, modify, adapt, translate, or otherwise transfer, reverse compile, disassemble or otherwise reverse engineer BSA Software Products or any portion thereof without prior written consent of BSA; (ii) access or otherwise use the BSA Software Products to create or support, and/or assist a third party in creating or supporting software products competing with the BSA Software Products; or (iii) assign, disclose, display, distribute, host, lease, license, outsource, permit timesharing or service bureau use, rent, sell, transfer or otherwise use the BSA Software Products for any commercial use other than fulfilling Customers own internal business purposes. Without limiting the foregoing, the BSA Software Products may not be modified by anyone other than BSA. If Customer modifies the BSA Software Products without BSA’s prior written consent, any BSA obligation to provide support services on, and the warranty for, the BSA Software Products will be void. All rights not expressly granted are reserved. 3. SaaS Fees. Customer agrees to pay BSA, and BSA agrees to accept from Customer as payment in full for the rights granted herein, the SaaS fees set forth in Schedule 1 to Exhibit A. 4. Ownership. 4.1. BSA retains all ownership and intellectual property rights to the SaaS Services, the BSA Software Product(s), and anything developed by BSA under this Agreement. Customer does not acquire under this Agreement any license to use the BSA Software Product(s) beyond the scope and/or duration of the SaaS Services. Customer agrees not to challenge such rights and hereby assigns any and all copyrights and other intellectual property rights in and to the BSA Software Products to BSA and agrees to execute any and all documents necessary to effect the purpose of this paragraph. “Intellectual property rights” means all trademarks, copyrights, patents, trade secrets, moral rights, know-how, and all other proprietary rights. 4.2. Customer retains all ownership and intellectual property rights to the data. 5. Limited Software Warranty. 5.1. BSA warrants, for the term of use granted, that the BSA Software Products will perform without material defects in workmanship or materials. Customer’s exclusive remedy in the event of a breach of this warranty shall be to have BSA use reasonable efforts, consistent with industry standards, to repair or replace the non-conforming BSA Software Product so as to render it conforming to the warranty, in accordance with the maintenance and support process set forth below in Exhibit C and BSA’s then current Support Call Process. 5.2. THE FOREGOING LIMITED SOFTWARE WARRANTY IS IN LIEU OF ALL OTHER REPRESENTATIONS OR WARRANTIES RELATING IN ANY WAY TO THE BSA SOFTWARE PRODUCTS INCLUDING, BUT NOT LIMITED TO, THEIR FEATURES, ATTRIBUTES, FUNCTIONALITY, AND PERFORMANCE. THE FOREGOING LIMITED SOFTWARE WARRANTY IS IN LIEU OF ALL SUCH REPRESENTATIONS OR WARRANTIES WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OR REPRESENTATIONS OF MERCHANTABILITY, MERCHANTABLE QUALITY AND FITNESS FOR A PARTICULAR PURPOSE AND THOSE ARISING BY STATUTE OR OTHERWISE IN LAW OR FROM THE COURSE OF DEALING OR USAGE OF TRADE. BSA DOES NOT REPRESENT OR WARRANT THAT THE BSA SOFTWARE PRODUCTS WILL MEET ANY OR ALL OF CUSTOMER’S PARTICULAR REQUIREMENTS, THAT THE OPERATION OF THE BSA SOFTWARE PRODUCTS WILL OPERATE ERROR FREE OR UNINTERRUPTED, OR THAT ALL PROGRAMMING ERRORS IN THE BSA SOFTWARE PRODUCTS CAN BE FOUND IN ORDER TO BE CORRECTED. 6. One Year Money Back Guarantee. BSA offers a one (1) year Money Back Guarantee on all SaaS products. If, for any reason, Customer is not satisfied with the BSA Software Product, Customer may cancel service within one (1) year of the date that the BSA Software Product becomes available for use (“Activation Date”), for a full refund of the SaaS Fees, as identified in Schedule 1 to Exhibit A. Customer must notify BSA of intention to terminate at least thirty (30) days prior to the end of the one (1) year period. 7. SaaS Services. 7.1. Customer will utilize shared hardware in a data center, but in a database dedicated to Customer’s use, which is not accessible to other customers. 7.2. Microsoft Azure data centers, or any replacement data centers utilized by BSA during the term of this Agreement are accessible only by authorized personnel, for specific business purposes, with prior approval required. 7.3. Data centers utilized by BSA will have redundant telecommunications access, electrical power, and the necessary hardware to provide access to the BSA Software Products in the event of a disaster or component failure. In the event any of Customer’s data is lost or damaged due to a negligent act or omission of BSA, or due to a defect in the BSA Software Product, BSA will use reasonable commercial efforts to restore data on servers in accordance with the system capabilities and with the objective of minimizing any data loss possible. BSA’s systems are reasonably designed to ensure that the recovery point shall not exceed a maximum of twenty-four (24) hours from declaration of disaster. For purposes of this section, the declaration of disaster shall be declared by BSA in response to issues discovered by BSA, or upon confirmation of issues relayed by Customer to BSA. Said declaration of disaster will not be unreasonably withheld by BSA. 7.4. In the event that a backup must be restored due to a declaration of disaster, or database failure, BSA will be responsible for importing backup data and verifying that Customer can log in. Customer will be solely responsible for running reports and testing critical processes to verify the restored data. 7.5. BSA’s systems are reasonably designed to ensure that, access to the BSA Software Products can be restored within one (1) business day of the declaration of disaster. 7.6. Customer will not attempt to reverse engineer, bypass, or otherwise subvert security restrictions in the BSA Software Products or the SaaS environment related to the BSA Software Products. Unauthorized attempts to access files, passwords, other confidential information, or unauthorized vulnerability and penetration testing of BSA’s system (hosted or otherwise) is prohibited without the prior express written approval of BSA. SECTION B – PROFESSIONAL SERVICES 8. Professional Services. BSA shall provide the services (“Professional Services”) set forth in Schedule 2 to Exhibit A, for the prices indicated, provided Customer fulfills its obligations set forth in this Agreement. BSA and Customer may enter into future Statements of Work, which shall become part of this Agreement. Future Statements of Work resulting from a change in scope to the contracted services may necessitate Change Orders to indicate changes to the agreed upon scope of work and any increase or decrease in costs related to the change in scope. Customer acknowledges that the fees stated in the Cost Summary are good-faith estimates of the amount of time and materials required for Customer’s implementation. BSA will bill Customer for the actual fees incurred based on the services provided to Customer. 9. Change Orders. In the event of a change in the agreed upon project scope for professional services not covered or otherwise included in the existing Agreement, Customer shall deliver to BSA’s Project Manager a written change order and specify in such change order the proposed work with sufficient detail to enable BSA to evaluate it (“Change Order”). BSA may, at its discretion, prescribe the format of the Change Order. BSA shall provide the Customer with an evaluation of the Change Order, which may include a written proposal containing the following: (i) implementation plan; (ii) the timeframe for performance; and (iii) the estimated price for performance of such change, based on the then current rates for said services. Upon execution, all Change Orders shall be governed by the terms and conditions of this Agreement, unless mutually agreed upon otherwise in writing. Customer acknowledges that such Change Orders may affect the implementation schedule and dates otherwise established as part of the project plan. The implementation schedule and schedule of activities for contracted services (the “Project”) shall be established based on a timeline mutually agreed upon between the Parties following the execution of this Agreement. 10. License and Ownership. 10.1. All rights, including intellectual property rights, in and to work product delivered as a result of Professional Services under this Agreement shall be owned by BSA. For the avoidance of doubt, work product that constitutes a BSA Software Product, or portion thereof shall be governed by Section A of this Agreement, including Section 1.1 thereof. 10.2. Subject to Section 10.1 and Customer’s compliance with this Agreement (including payment in full), BSA grants to Customer a non-exclusive, non-transferrable, and non-assignable license to use the work product and the intellectual property rights therein for Customer’s internal business purposes only. 11. Cancellation. In the event Customer cancels or reschedules Professional Services (other than for Force Majeure or breach by BSA), and without prejudice to BSA’s other rights and remedies, Customer is liable to BSA for: (i) all non- refundable expenses actually incurred by BSA on Customer’s behalf; and (ii) daily Project Management or Training fees associated with the cancelled Professional Services (in accordance with the daily fee rate), if less than thirty (30) days advance notice is given regarding the need to cancel or reschedule and BSA cannot reasonably reassign its affected human resources to other projects where comparable skills are required. 12. Limited Professional Services Warranty. 12.1. BSA warrants that its Professional Services will be performed in a professional and workmanlike manner, consistent with industry standards. In the event of a breach of the foregoing warranty and a claim in accordance with the breach, BSA’s sole obligation and Customer’s exclusive remedy with respect to such claim will be to have BSA reperform the portion of the Professional Services with respect to which the warranty has been breached, to bring it into compliance with such warranty. Any claim for breach of the foregoing warranty must be made by notice to BSA within thirty (30) days of performance of the portion of the Professional Services with respect to which the claim is made or said claim shall be deemed waived. 12.2. THE FOREGOING LIMITED PROFESSIONAL SERVICES WARRANTY IS IN LIEU OF ALL OTHER REPRESENTATIONS OR WARRANTIES RELATING TO THE PROFESSIONAL SERVICES, EXPRESS OR IMPLIED. INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OR REPRESENTATIONS OF MERCHANTABILITY, MERCHANTABLE QUALITY AND FITNESS FOR A PARTICULAR PURPOSE, AND THOSE ARISING BY STATUTE OR OTHERWISE IN LAW, OR FROM THE COURSE OF DEALING OR USAGE OF TRADE. 13. Customer Site Access and Assistance. 13.1. Customer agrees and acknowledges that the implementation of the BSA Software Products is a cooperative process requiring time and resources of Customer personnel. Customer shall, and shall cause Customer personnel to, use all reasonable efforts to cooperate with and assist BSA as may be reasonably required to meet the project deadlines and other project milestones agreed to by the Parties for implementation. BSA shall not be liable for failure to meet such deadlines and milestones when such failure is due to force majeure (as defined in Section 30, below) or to the failure by Customer personnel to provide such cooperation and assistance (either through action or omission.) 13.2. At no cost to BSA, Customer agrees to provide to BSA full access to and use of personnel, facilities, and equipment as reasonably necessary for BSA to provide implementation and training services. Such access will be subject to any reasonable security protocols or written policies provided to BSA prior to Effective Date of this Agreement, or mutually agreed to thereafter. SECTION C – MAINTENANCE AND SUPPORT 14. Maintenance and Support Generally. 14.1. For a one (1) year period, commencing on the Activation Date, and subject to Customer’s compliance with the Agreement, BSA will provide, at no charge to Customer, “Maintenance and Support”, meaning the following; (i) Modifications (such as patches, corrections and updates) as are generally provided at no additional charge by BSA to BSA customers; and (ii) technical support assistance, as further described in Section 14, during BSA’s normal business hours. 14.2. Commencing one (1) year from the Activation Date, Maintenance and Support will continue to be provided subject to compliance with the terms of the Agreement and payment of the SaaS Fees outlined in Exhibit B. 14.3. BSA guarantees that the annual SaaS Fees, as set forth in Exhibit B will not change for two (2) years from the Activation Date. After that date, BSA reserves the right each year to increase the fee over the previous year by no more than an amount that is proportionate to the increase (measured from the beginning of such previous year) in the Consumer Price Index as set forth by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index – All Urban Customers – U.S. City Average (CPI-U), or a similar measure should such data become unavailable. 14.4. Maintenance and Support and the SaaS fee do not include amounts that may be due for such items as additional training, additional BSA Software Products, custom development work, hardware purchases, BSA staff time to create or modify report writer based reports, configurable imports or exports, or data entry. Additional fees may be payable for items charged on a per event basis, such as Permit Application Submission Fees related to online permit applications. 15. Support. 15.1. With respect to Errors following expiration of the Limited Software Warranty, BSA’s sole obligation and Customer’s sole remedy are set forth in this Section 15. Subject to Customer’s compliance with the terms of the Agreement and payment of SaaS fees, BSA shall use commercially reasonable efforts, commensurate with the severity level, to achieve its support response and resolution targets with respect to Errors as set forth in Exhibit C. An “Error” means a verifiable and reproducible failure of a BSA Software Product to operate in accordance with the Documentation under conditions of normal use and where the Error is directly attributable to the BSA Software Product as updated with current Modifications. If the customer modifies the BSA Software Products without BSA’s written consent, BSA’s obligation to provide support services on the BSA Software Products will be void. 15.2. Support does not include the following: (i) installation or implementation of the BSA Software Products; (ii) onsite training/support, remote training, application design, and other consulting services; (iii) support of an operating system, hardware, or support outside of BSA’s normal business hours; (iv) support or support time due to a cause external to the BSA Software Products adversely affecting their operability or serviceability, which shall include, but not be limited to, water, fire, lightning, other natural calamities, misuse, abuse, or neglect; (v) repair of the BSA Software Products modified in any way other than modifications made by BSA or its authorized agents; and (vi) support of any other third-party vendors’ software, such as operating system software, network software, database managers, word processers, etc. All such excluded Maintenance and Support Services performed by BSA at Customer’s request shall be invoiced to Customer on a time and materials basis, plus reasonable expenses associated therewith. 15.3. Notwithstanding anything to the contrary, Customer shall provide prompt notice of any Errors discovered by Customer, or otherwise brought to the attention of Customer. Proper notice may include, without limitation, prompt telephonic and written (either via e-mail or postal mail) notice to BSA of any purported Error. If requested by BSA, Customer agrees to provide written documentation of Errors to substantiate those Errors and to otherwise assist BSA in the detection and correction of said Errors. BSA will use its commercially reasonable judgment to determine if an Error exists, and the severity of the Error. 15.4. Customer acknowledges and agrees that BSA and product vendors may require online access to the BSA Software Product in order for BSA to provide Maintenance and Support Services hereunder. Accordingly, Customer shall provide a high-speed internet connection to facilitate BSA’s remote access to the BSA Software Products. BSA shall provide remote connection software, which may require installation of a software component on a workstation or server computer. SECTION D – THIRD PARTY PRODUCTS 16. Third Party Products. 16.1. BSA will sell, deliver and install onsite any hardware products not produced by BSA (“Third-Party Hardware”), if purchased by Customer, for the prices set forth in Schedule 1 to Exhibit A, as modified by any subsequent Change Order(s). 16.2. BSA shall not provide any warranty services on Third Party Hardware sold. BSA is not the manufacturer of the Third-Party Products. To the extent applicable, BSA will grant and pass through to Customer any warranty that BSA may receive from the supplier of the Third-Party Product(s). SECTION E – GENERAL TERMS AND CONDITIONS 17. BSA Proprietary Information. 17.1. Customer acknowledges that the information associated with or contained within the BSA Software Products and information used in the performance of Professional Services include information relating to BSA Software Products, BSA’s business, and the terms of this Agreement (the “Proprietary Information”). 17.2. Customer shall maintain in confidence and not disclose Proprietary Information, directly or indirectly, to any third party without BSA’s prior written consent. Customer shall safeguard the Proprietary Information to the same extent that it safeguards its own most confidential materials or data, but in no event shall the standard implemented be less than industry standard. Proprietary Information shall be used by Customer solely to fulfill its obligations under this Agreement. Customer shall limit its dissemination of such Proprietary Information to employees within the Customer’s business organization who are directly involved with the performance of this Agreement and have a need to use such Proprietary Information. Customer shall be responsible for all disclosures by any person receiving Proprietary Information, by or through it, as if Customer itself disseminated such information. 17.3. Proprietary Information shall not include any information that: (a) is or becomes publicly known through no wrongful act of breach of any obligation of confidentiality by Customer; (b) was lawfully known to Customer prior to the time it was disclosed to or learned by Customer in connection with this Agreement, provided that such information is not known to Customer solely because of its prior business relationship with BSA; (c) was received by Customer from a third party that is not under an obligation of confidentiality to BSA; or (d) is independently developed by Customer for a party other than BSA without the use of any Proprietary Information. The following circumstances shall not cause Proprietary Information to fall within any of the exceptions (a) through (d) above: (i) a portion of such Proprietary Information is embraced by more general information said to be in the public domain or previously known to, or subsequently disclosed to, the Customer; or (ii) it is a combination derivable from separate sources of public information, none of which discloses the combination itself. 17.4. If Customer is required, or anticipates that it will be required, to disclose any Confidential Information pursuant to a court order or to a government authority, Customer shall, at its earliest opportunity, provide written notice to BSA so as to give BSA a reasonable opportunity to secure a protective order or take other actions as appropriate. Customer shall at all times cooperate with BSA so as to minimize any disclosure to the extent allowed by applicable law. 18. Limitation on Liability and Damages. BSA’S ENTIRE LIABILITY AND RESPONSIBILITY FOR ANY AND ALL CLAIMS, DAMAGES, OR LOSSES ARISING FROM THE BSA SOFTWARE PRODUCTS (INCLUDING BUT NOT LIMITED TO THEIR USE, OPERATION AND/OR FAILURE TO OPERATE), PROFESSIONAL SERVICES, MAINTENANCE AND SUPPORT, ANY THIRD-PARTY PERFORMANCE OR LACK THEREOF, OR OTHERWISE ARISING OUT OF OR RELATING TO THIS AGREEMENT, SHALL BE ABSOLUTELY LIMITED IN THE AGGREGATE FOR ALL CLAIMS TO DIRECT DAMAGES NOT IN EXCESS OF THE INITIAL SAAS FEES PAID FOR THE FIRST YEAR OF SERVICE OF THE BSA SOFTWARE PRODUCTS PLUS, TO THE EXTENT APPLICABLE, THE PURCHASE PRICE OF ANY PROFESSIONAL SERVICE SET FORTH IN THIS AGREEMENT THAT GIVES RISE TO A CLAIM. NOTWITHSTANDING ANY PROVISION CONTAINED HEREIN, BSA SHALL NOT BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL, OR CONTINGENT DAMAGES OR EXPENSES, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, ARISING IN ANY WAY OUT OF THIS AGREEMENT, BSA SOFTWARE PRODUCTS, ANY THIRD-PARTY PERFORMANCE, OR LACK THEREOF, OR BSA’S PERFORMANCE, OR LACK THEREOF, UNDER THIS AGREEMENT, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, LOSS OF REVENUE, PROFIT, OR LOSS OF USE. TO THE EXTENT THAT APPLICABLE LAW DOES NOT PERMIT THE LIMITATIONS SET FORTH HEREIN, THE LIABILITY AND DAMAGES SHALL BE LIMTED AND RESTRICTED TO THE EXTENT PERMITTED BY LAW. 19. Additional Disclaimer. BSA PROVIDES NO WARRANTY FOR ANY THIRD-PARTY SOFTWARE AND/OR HARDWARE, EXCEPT AS SET FORTH IN THIS AGREEMENT, BSA WILL NOT BE RESPONSIBLE FOR ANY THIRD-PARTY SOFTWARE, THIRD-PARTY SERVICES AND/OR HARDWARE. 20. Indemnification for Intellectual Property Infringement. If a claim is made or an action is brought alleging that a BSA Software Product infringes on a U.S. patent, or any copyright, trademark, trade secret or other proprietary right, BSA will defend Customer against such claim and will pay resulting costs and damages finally awarded, provided that: (a) customer promptly notifies BSA in writing of the claim; (b) BSA has sole control of the defense and all related settlement negotiations; (c) Customer reasonably cooperates in such defense at no expense to BSA; and (d) Customer remains in compliance with the Agreement and has continued to remain current on payment of SaaS fees. The obligations of BSA under this Section are conditioned on Customer’s agreement that if the applicable BSA Software Product, in whole or in part, or the use or operation thereof, becomes, or in the opinion of BSA is likely to become, the subject of such a claim, BSA may at its expense and without obligation to do so, either procure the right for the Customer to continue using the BSA Software Product or, at the option of BSA, replace or modify the same so that it becomes non-infringing (provided such replacement or modification maintains the same material functionality and does not adversely affect Customer’s use of the Update as contemplated hereunder). In the event that BSA provides a replacement for Customer, Customer shall cease use of the infringing product immediately upon receiving the replacement. THIS SECTION 20 SETS FORTH THE ENTIRE LIABILITY AND OBLIGATION OF BSA AND THE SOLE AND EXCLUSIVE REMEDY FOR CUSTOMER FOR ANY DAMAGES ARISING FROM ANY CLAIM OR ACTION COVERED BY THIS SECTION 20. 21. No Intended Third-Party Beneficiaries. This Agreement is entered into solely for the benefit of BSA and Customer. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. 22. Governing Law and Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the state of Michigan, without regard to its choice of law rules. BSA and the Customer agree that the exclusive venue for any legal or equitable action shall be the Courts of the County of Clinton, State of Michigan, or in any court in the United States of America lying in the Western District of Michigan. 23. Entire Agreement. This Agreement represents the entire agreement of Customer and BSA with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, implied, or statutory. Customer hereby acknowledges that in entering into this Agreement, it did not rely on any information not explicitly set forth in this Agreement. 24. Contract Term. This initial term of this Agreement extends from the Effective Date of the Agreement until one (1) year from the Activation Date. Upon expiration of the initial term, this Agreement will renew automatically for successive one (1) year terms under the same terms and conditions set forth herein without further documentation being required unless and until either party provides written notice to the other party, at least sixty (60) days prior to the end of the then current term. Customer’s right to access or use the BSA Software Product will terminate at the end of the Agreement. 25. Payment Terms. Customer shall pay BSA for all amounts in accordance with this Agreement and Exhibit A. 26. Termination. Without prejudice to other rights and remedies, and except as otherwise provided in this Agreement, either Party may terminate this Agreement as set forth below. Upon termination of this Agreement: (a) Customer shall promptly pay BSA for all fees and expenses that are not subject to a good faith dispute and that are related to the software, products, and/or services received, or expenses BSA has incurred or delivered, prior to the effective date of the termination (b) Customer shall return or destroy, at the direction of BSA, BSA’s Proprietary Information in its possession. The termination of this Agreement will not discharge or otherwise affect any pre-termination obligations of either Party existing under this Agreement at the time of termination. Sections 2, 4, 16 through 18, 21-23, 25 -39, and the provisions of this Agreement which by their nature extend beyond the termination of this Agreement, will survive the termination of the Agreement. No action arising out of this Agreement, regardless of the form of action, may be brought by Customer more than one (1) year after the date the action occurred. 26.1. Termination for Cause. If Customer believes that BSA has materially breached this Agreement, Customer may terminate this Agreement for Cause in the event BSA does not cure, or create a mutually agreeable plan to address, a material breach of this agreement within thirty (30) days after Notification by Customer. Notice shall be provided in accordance with Section 31, below. 26.2. Force Majeure. Either Party may terminate this Agreement if a Force Majeure event suspends performance of the SaaS Services for a period of forty-five (45) days or greater. 26.3. Lack of Appropriations. If Customer cannot appropriate, or otherwise make available funds sufficient to continue to utilize the SaaS Services, Customer may unilaterally terminate this Agreement with thirty (30) days written notice to BSA. Customer shall not be entitled to a refund, offset, or credit for previously paid, but unused SaaS fees. 26.4. Failure to Pay SaaS Fees. Customer acknowledges that timely payment of SaaS Fees is necessary to maintain continued access to the SaaS Services. If Customer does not make timely payment of SaaS fees, BSA may discontinue the SaaS Services, and deny access to the BSA Software Products. If such failure to pay is not cured within forty-five (45) days of receiving BSA’s notice of intent to terminate, BSA may terminate this Agreement. 26.5. Convenience. If Customer terminates SaaS Services for convenience, any SaaS fees already paid will not be prorated, and will be retained by BSA. 27. Severability. If any term or provision of this Agreement, or the application thereof, to any extent, is held invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and enforced to the fullest extent permitted by law. 28. No Waiver. In the event that any terms or conditions of this Agreement are not strictly enforced by either Party, such nonenforcement will not act as, or be deemed as, a waiver or modification to this Agreement, nor will such nonenforcement prevent either Party from enforcing terms of the Agreement thereafter. 29. Successors and Assigns. This Agreement shall be binding upon the successors, permitted assigns, representatives, and heirs of the Parties hereto. For avoidance of doubt, any expanded use by Customer of the Program, for example, in the event of annexation or desired shared services, shall require the consent of BSA. 30. Force Majeure. “Force Majeure” is defined as an event beyond the reasonable control of a Party, including governmental action, war, riot or civil commotion, fire, natural disaster, epidemic, pandemic, other public health emergency, problematic weather, lack of availability of Customer provided technology, labor disputes, restraints affecting shipping or credit, delay of carriers or any other cause that could not, with reasonable diligence, be foreseen, controlled or prevented by the Party. Neither Party shall be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure. 31. Notice. All notices, requests, demands, and determinations under the Agreement (other than routine operational communications), shall be in writing and shall be deemed duly given: (i) when delivered by hand; (ii) one (1) business day after being given to a nationally recognized overnight delivery service for next-business-day delivery, all fees prepaid; (iii) when sent by confirmed facsimile with a copy sent by another means specified in this provision; or (iv) six (6) calendar days after the day of mailing, when mailed by United States mail, via registered or certified mail, return receipt requested, postage prepaid, and in each case addressed as shall be set forth below. A Party may from time-to-time change its address or designee for notification purposes by giving the other prior written notice of the new address or designee and the date upon which it will become effective. If to BSA: BSA Software 14965 Abbey Lane Bath, MI 48808 Attn: Contracts Manager Telephone: 517-641-8900 If to Customer: City of Muskegon Finance Office 933 Terrace St Muskegon, MI 49440 Telephone: 231-724-6713 32. Independent Contractor. This is not an agreement of partnership or employment of BSA or any of BSA’s employees by Customer. BSA is an independent contractor for all purposes under this Agreement. 33. Cooperative Procurement. To the maximum extent permitted by applicable law, BSA agrees that this Agreement may be used as a cooperative procurement vehicle by eligible jurisdictions. BSA reserves the right to negotiate and customize the terms and conditions set forth herein, including but not limited to pricing, to the scope and circumstances fitting to that cooperative procurement. 34. Business License. In the event a local business license is required for BSA to perform the services under this Agreement, Customer agrees to promptly notify and inform BSA of such requirement, as well as to provide BSA with the necessary paperwork and contact information so that BSA can obtain such license in a timely manner. 35. Nondiscrimination. BSA will not discriminate against any person employed, or applying for employment, concerning the performance of BSA’s responsibilities under this Agreement. This discrimination prohibition will apply to all matters of employment including hiring, tenure, and terms of employment, or otherwise with respect to any matter directly or indirectly relating to employment concerning race, color, religion, national origin, age, sex, sexual orientation, ancestry, disability that does not impact the individual’s ability to perform the duties of a particular job or position, height, weight, marital status, or political affiliation. BSA will post, where appropriate, all notices related to nondiscrimination as may be required by applicable law. 36. Taxes. Fees for SaaS Services, Professional Services, or any other fees shown in Schedule 1 to Exhibit A do not include any taxes, including, without limitation, any sales, use or excise tax. Customer shall be responsible for all taxes, exclusive of taxes on BSA’s net income, arising out of this Agreement. If Customer is not validly tax-exempt, and BSA is required to remit taxes on customer’s behalf, Customer agrees to reimburse BSA for any taxes by BSA. 37. U.S. Government Rights. Each instance of the Documentation, Modifications and software that are constituents of BSA Software Products is a “commercial item” as that term is defined at 48 C.F.R. § 2.101, consisting of "commercial computer software" and "commercial computer software documentation" as such terms are used in 48 C.F.R. § 12.212. Any use, modification, reproduction release, performance, display or disclosure of the Application by the U.S. Government shall be solely in accordance with the terms of this Agreement. 38. Export Control. Certain uses of the Software by Licensee may be subject to restrictions under United States regulations relating to exports and ultimate end uses of computer software. Licensee agrees to fully comply with all applicable United States laws and regulations, including but not limited to the Export Administration Act of 1979, as amended from time to time, the Arms Export Control Act, as amended from time to time, any regulations promulgated thereunder to implement those statutes, and all sanctions programs administered by the U.S. Government. 39. Contract Documents and Order of Precedence. The text of this Agreement without any Exhibits and Schedules shall control over any inconsistent text in any of the Exhibits or Schedules. This Agreement includes the following Exhibits and Schedules: Exhibit A – Payment Terms Generally Schedule 1 to Exhibit A – SaaS/Interface/Customization Fees Schedule 2 to Exhibit A – Professional Service Fees Exhibit B – Annual Service Fees Exhibit C – Support Call Process IN WITNESS THEREOF, the Parties hereto have executed this Agreement as of the dates set forth below. BS&A SOFTWARE, LLC CUSTOMER By: ______________________________ By: ___________________________ Name: ___________________________ Name: _________________________ Title: ____________________________ Title: __________________________ Date: ____________________________ Date: __________________________ EXHIBIT A Payment Terms 1. Customer shall pay BSA within thirty (30) days of invoice. Payments not received within fifteen (15) days of the due date shall be subject to a one and one-half percent (1.5%) per month interest charge (or, if lower, the highest amount chargeable at law) assessed against the unpaid balance from the date due until the date payment is received 2. Any amount not subject to good faith dispute and not paid within fifteen (15) days of the due date of each invoice shall, without prejudice to other rights and remedies, be subject to an interest charge equal to the lesser of 1.5% monthly or the maximum interest charge permissible under applicable law, payable on demand. Any charges not disputed by Customer in good faith will be deemed approved and accepted by Customer. For purposes of this Agreement, a good faith dispute regarding amounts owed exists only if Customer provides in writing at least ten (10) days prior to due date of payment on the invoice, notification of such dispute, the specific portion of the invoice in dispute, and the specific grounds of the dispute (which must be asserted in good faith), and Customer pays in timely fashion such portions that are not subject to such dispute. 3. BSA shall invoice Customer $30,800 upon Effective Date for BSA’s Project Management/Implementation Planning Fees and Data Conversion fees as set forth in Schedule 2. 4. BSA shall invoice Customer $132,300 upon activation of Customer’s site for use of the BSA Software Product(s). Such amount equals BSA’s SaaS Fees as set forth in Schedule 1. 5. BSA shall invoice Customer $69,375 at completion of On-Site Implementation and Training. Such amount equals On-Site Implementation and Training costs, Customization and Interface costs, and travel expenses, as set forth in Schedule 2. Schedule 1 to Exhibit A SaaS Fees Schedule 2 to Exhibit A Professional Services Fees EXHIBIT B Annual Service Fees EXHIBIT C Support Call Process BSA’s standard hours for telephone support are from 8:30 a.m. to 5:00 p.m. (EST), Monday through Friday, excluding holidays. Customer can lodge a support request in three ways: (i) Contact Customer Support option located within the Help menu of all of BSA’s applications (ii) BSA’s toll-free support line (1-855-BSA-SOFT) or via email. BSA targets less than thirty (30) minutes for initial response (“Initial Response Target”). Customer service requests fall into four main categories: A. Technical. Questions or usage issues relating to I.T. functionality, future hardware purchases, and configuration. BSA tries to resolve these issues within BSA’s Initial Response Target or as soon thereafter as reasonably possible. B. Questions/Support. General questions regarding functionality, use, and set-up of the applications. BSA tries to resolve these issues within BSA’s Initial Response Target or as soon thereafter as reasonably possible. C. Requests. Customer requests for future enhancements to the applications. Key product management personnel meet with development staff on a regular basis to discuss the desirability and priority of such requests. BSA tries to resolve these issues within BSA’s Initial Response Target or as soon thereafter as reasonably possible. D. Issues/Bugs. Errors fall into three (3) subcategories: i. Critical. Cases where an Error has rendered the application or a material component unusable or not usable without substantial inconvenience causing material and detrimental consequences to business -- with no viable Customer workaround or alternative. The targeted resolution time for critical issues is less than one (1) business day. ii. Moderate. Cases where an Error causes substantial inconvenience and added burden, but the application is still usable by Customer. The targeted resolution time for all moderate issues is within two (2) weeks, which is within BSA’s standard update cycle. iii. Minimal. Cases that are mostly cosmetic in nature, and do not substantially impede functionality in any significant way. These issues are assigned a priority level at BSA’s regular meetings, and resolution times are based on the specified priority. Remote Support Process Some support calls may require further analysis of Customer’s database or set-up to diagnose a problem or to assist Customer with a question. BSA’s remote support tools share Customer’s desktop via the Internet to provide Customer with virtual on-site support. BSA’s support team is able to connect remotely to Customer’s desktop and view its setup, diagnose problems, or assist Customer with screen navigation. Proposal for: City of Muskegon, Muskegon County MI August 14, 2023 Quoted by: Keegan Nixon Software and Services for BS&A Cloud Upgrade Thank you for the opportunity to quote our software and services. At BS&A, we are focused on delivering unparalleled service, solutions, support, and customer satisfaction. You’ll see this in our literature, but it’s not just a marketing strategy... it’s a mindset deeply embedded in our DNA. Our goal is to provide such remarkable customer service that our customers feel compelled to remark about it. We are extremely proud of the many long-term customer relationships we have built. Our success is directly correlated with putting the customer first and consistently choosing to listen. Delivering unparalleled customer service is the foundation of our company. BS&A Software 14965 Abbey Lane Bath MI 48808 (855) BSA-SOFT / fax (517) 641-8960 bsasoftware.com Cost Summary Software is licensed for use only by municipality identified on the cover page. If used for additional entities or agencies, please contact BS&A for appropriate pricing. Prices subject to change if the actual count is significantly different than the estimated count. Upgrade - Cloud Modules Financial Management General Ledger $8,325 Accounts Payable $6,950 Cash Receipting $6,950 Accounts Receivable $6,950 Fixed Assets $6,950 Utility Billing (approximately 14,500 utility accounts) $13,050 Personnel Management Payroll $11,445 Human Resources $8,325 Timesheets $5,085 Community Development Building Department $10,925 Property Assessing $6,125 Tax $5,025 Special Assessment $2,805 Delinquent Personal Property $1,785 BS&A Online Public Records Search + Online Bill Pay $0 With use of integrated Credit Card Processor Subtotal $100,695 City of Muskegon, Muskegon County MI | August 14, 2023 Keegan Nixon, Account Executive | (855) 272-7638 | knixon@bsasoftware.com Page 2 of 8 Prices good for a period of 90 days from date on proposal New Purchase - Cloud Modules Community Development Business License $6,950 BS&A Online Community Development $6,555 Permit Application Feature - Enables contractors and the general public to submit permit applications online (A fee of $3/application is accumulated and billed to the municipality). Subtotal $13,505 Data Conversions/Database Setup Database Setup: Business Licensing (Database Setup) $3,300 Subtotal $3,300 Project Management and Implementation Planning Services include: - Analyzing customer processes to ensure all critical components are addressed. - Creating and managing the project schedule in accordance with the customer's existing processes and needs. - Planning and scheduling training around any planned process changes included in the project plan. - Modifying the project schedule as needed to accommodate any changes to the scope and requirements of the project that are discovered. - Providing a central contact between the customer’s project leaders, developers, trainers, IT staff, conversion staff, and other resources required throughout the transition period. - Installing the software and providing IT consultation for network, server, and workstation configuration and requirements. - Reviewing and addressing the specifications for needed customizations to meet customer needs (when applicable). $27,500 City of Muskegon, Muskegon County MI | August 14, 2023 Keegan Nixon, Account Executive | (855) 272-7638 | knixon@bsasoftware.com Page 3 of 8 Prices good for a period of 90 days from date on proposal Implementation and Training - $1,100/day - Days quoted are estimates; you are billed for actual days used Services include: - Setting up users and user security rights for each application - Performing final process and procedure review - Configuring custom settings in each application to fit the needs of the customer - Setting up application integration and workflow methods - Onsite verification of converted data for balancing and auditing purposes - Training and Go-Live Software Setup Days: 9 $9,900 Financial Management Modules Days: 13 $14,300 Personnel Management Modules Days: 10 $11,000 Community Development Modules Days: 13 $14,300 Property Modules Days: 3 $3,300 Total: 48 Subtotal $52,800 City of Muskegon, Muskegon County MI | August 14, 2023 Keegan Nixon, Account Executive | (855) 272-7638 | knixon@bsasoftware.com Page 4 of 8 Prices good for a period of 90 days from date on proposal Cost Totals Not including Annual Service Fees Modules - Upgrade $100,695 Modules – New Purchase $13,505 Database Setup $3,300 Project Management and Implementation Planning $27,500 Implementation and Training $52,800 Total Proposed $197,800 Travel Expenses $16,575 Hosting Fees $18,100 Payment Schedule 1st Payment: $30,800 to be invoiced upon execution of this agreement. 2nd Payment: $132,300 to be invoiced at activation of customer’s site. 3rd Payment: $69,375 to be invoiced upon completion of training. City of Muskegon, Muskegon County MI | August 14, 2023 Keegan Nixon, Account Executive | (855) 272-7638 | knixon@bsasoftware.com Page 5 of 8 Prices good for a period of 90 days from date on proposal Cloud Annual Service Fees Unlimited support is included in your Annual Service Fee. Service Fees are billed annually. After two (2) years, BS&A Software reserves the right to increase the Annual Service Fee by no more than the yearly Consumers Price Index for All Urban Consumers U.S. city average (CPI-U).” Financial Management General Ledger $8,325 Accounts Payable $6,950 Cash Receipting $6,950 Accounts Receivable $6,950 Fixed Assets $6,950 Utility Billing $13,050 Personnel Management Payroll $11,445 Human Resources $8,325 Timesheets $5,085 Community Development Building Department $10,925 Business Licensing $6,950 Property Assessing $6,125 Tax $5,025 Special Assessment $2,805 Delinquent Personal Property $1,785 BS&A Online Public Records Search $0 Community Development $6,555 Total Annual Service Fees $114,200 Hosting Fees Fees relating to the hosting and storage of data through Microsoft Azure are to be billed annually, for all modules included above. $18,100 City of Muskegon, Muskegon County MI | August 14, 2023 Keegan Nixon, Account Executive | (855) 272-7638 | knixon@bsasoftware.com Page 6 of 8 Prices good for a period of 90 days from date on proposal Additional Information Program Customization BS&A strives to provide a flexible solution that can be tailored to each municipality's needs. However, in some cases, custom work may be required. Typical examples include: • custom payment import/lock box import • custom OCR scan-line • custom journal export to an outside accounting system • custom reports If you require any custom work, please let us know so that we can better understand the scope of your request and include that in a separate proposal. Cash Receipting Hardware Quantity Cost Epson THM-6000V Series Receipt Printer* $925 x _____ = $_____________ APG Series 100Cash Drawer** $250 x _____ = $_____________ Honeywell Hyperion 1300g Linear-Imaging Scanner $250 x _____ = $_____________ Credit Card Reader (if using Invoice Cloud) $75 x _____ = $_____________ This will add $____________________ to the Total Proposed. *IMPORTANT. The receipt printer must be plugged into the USB port on one workstation (not your server). This printer is not to be shared with other workstations. If more than one workstation will be used for receipting, please consider purchasing more than one receipt printer. Please provide the number of cash drawers that will be hooked up to the printer_____________ Note: The availability, model numbers, and pricing for all third party hardware listed above is subject to availability from the manufacturers. In the event that the listed hardware is no longer available at the time of purchase, a comparable replacement will be available, at the then current cost. Returns require pre-approval, and all purchased equipment must be shipped back to BS&A in its original packaging. Returns are subject to a re-stocking fee of $50.00. Additional Training - Building Department Report Designer Most of our Building Department customers heavily use our Report Designer, which is included free with the program. Report Designer Training is not included in the training quoted on this proposal and is highly recommended. You may attend a class at our office in Bath Township, or we can train at your location. Report Designer Training is typically completed in one day. Please check the option you are interested in. Report Designer Training will be scheduled after successful implementation and training of your Building Department software. ___ Classroom training, $205/person/day ___ On-site training (unlimited attendees), $1,100/day, travel not included City of Muskegon, Muskegon County MI | August 14, 2023 Keegan Nixon, Account Executive | (855) 272-7638 | knixon@bsasoftware.com Page 7 of 8 Prices good for a period of 90 days from date on proposal BS&A Online Connection Requirements BS&A Cloud modules require a high-speed internet connection (cable modem or DSL). Payment Processing Requirements Acceptance of online payments requires a contract with one of BS&A’s approved Online Credit Card Processing companies. Please visit https://www.bsasoftware.com/solutions/bsaonline/public-records-search/ for information. City of Muskegon, Muskegon County MI | August 14, 2023 Keegan Nixon, Account Executive | (855) 272-7638 | knixon@bsasoftware.com Page 8 of 8 Prices good for a period of 90 days from date on proposal
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