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CITY OF MUSKEGON CITY COMMISSION MEETING May 28, 2024 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 AGENDA ☐ CALL TO ORDER: ☐ PRAYER: ☐ PLEDGE OF ALLEGIANCE: ☐ ROLL CALL: ☐ HONORS, AWARDS, AND PRESENTATIONS: A. Resolution for Dave Alexander Community Engagement B. FY 2024-25 Budget Presentation Manager's Office C. DWSRF Project Plan Amendment Public Works ☐ PUBLIC COMMENT ON AGENDA ITEMS: ☐ CONSENT AGENDA: A. Approval of Minutes City Clerk B. DWSRF Project Plan Amendment Public Works C. Sale of 509 Adams. Planning D. City-Owned Billboard Lease Renewal Planning E. Sale of 186 Myrtle Planning F. Sale of 553,558,579,601,608,621 Jackson, 505 Alva and 532 Leonard. Planning G. Annual Action Plan Budget 2024 Community & Neighborhood Services H. EGLE Water Affordability & Planning Grant Agreement Public Works I. Water Affordability Study Consultant Public Works Page 1 of 3 Page 1 of 207 J. Downtown Social District Expansion Community Engagement K. Amendment to Fee Structure for Social District Strickers Community Engagement L. Toro Mower Purchase DPW- Parks M. Playground purchase for Joe Clifford Park (ARPA Funding) DPW- Parks N. Rezoning of properties on Beach St, Indiana Ave, Ohio Ave, Simpson Ave, and Nelson St from R-1 to R-2. Planning ☐ PUBLIC HEARINGS: ☐ UNFINISHED BUSINESS: ☐ NEW BUSINESS: A. Juneteenth Resolution Manager's Office ☐ ANY OTHER BUSINESS: ☐ PUBLIC COMMENT ON NON-AGENDA ITEMS: ► Reminder: Individuals who would like to address the City Commission shall do the following: ► Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ☐ CLOSED SESSION: ☐ ADJOURNMENT: 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: Page 2 of 3 Page 2 of 207 Ann Marie Meisch, MMC. City Clerk. 933 Terrace St. Muskegon, MI 49440. (231)724-6705. clerk@shorelinecity.com Page 3 of 3 Page 3 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Resolution for Dave Alexander Submitted by: Deborah Sweet, Community Department: Community Engagement Engagement Manager Brief Summary: Dave Alexander is retiring after five years of service to the City of Muskegon Government, and decades of service to our community. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: Amount Requested: Budgeted Item: Yes No N/A Fund(s) or Account(s): Budget Amendment Needed: Yes No N/A Recommended Motion: Approvals: Guest(s) Invited / Presenting: Immediate Division Head No Information Technology Other Division Heads Communication Legal Review Page 4 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: FY 2024-25 Budget Presentation Submitted by: Jonathan Seyferth, City Manager Department: Manager's Office Brief Summary: The Finance Department and City Manager's Office will give a budget presentation on the FY 2024- 25 budget. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 4: Financial Infrastructure Amount Requested: Budgeted Item: Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: Yes No N/A X Recommended Motion: Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads X Communication Legal Review Page 5 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: DWSRF Project Plan Amendment Submitted by: Dan VanderHeide, Public Works Department: Public Works Director Brief Summary: The City’s DWSRF Project Plan on file with the state for future revolving fund projects has been updated, and the City needs to receive comment and adopt the plan by resolution. Detailed Summary & Background: The City has taken advantage of favorable rates and even some principal forgiveness as a part of the state’s Revolving Loan Fund programs to complete substantial utility improvement projects, such as the Wilcox/Thompson and Morton projects currently underway. In order to be eligible for these programs, projects must be included in the City’s “Project Plan” that is on file with the state department of EGLE. The specific projects proposed for the program are not known at this time; this Project Plan is simply a list of projects the City may propose for the program in the future. The list is used by the state to perform preliminary environmental and other clearance work so they are prepared for the projects if and when the City proposes them. Prein & Newhof has updated our Drinking Water State Revolving Fund (DWSRF) Project Plan (the plan dedicated to drinking water projects) to show potential projects over the next several years. Part of the updating process includes holding a meeting where the public can comment on the plan (satisfied by today’s meeting and the public comment periods within it), and a resolution by the Commission adopting the plan. The resolution is attached. The Draft Project Plan Amendment is also included. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Decrease infrastructure burden on residents Sustainability in financial practices and infrastructure Goal/Action Item: 2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Reliable and efficient short and long term financial practices Amount Requested: Budgeted Item: N/A Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: 591 Yes No N/A X Recommended Motion: Page 6 of 207 Move to adopt the City’s 2025 DWSRF Project Plan by the included resolution. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads Communication Legal Review Page 7 of 207 A RESOLUTION ADOPTING A FINAL PROJECT PLAN AMENDMENT FOR WATER SYSTEM IMPROVEMENTS AND DESIGNATING AN AUTHORIZED PROJECT REPRESENTATIVE WHEREAS, the City of Muskegon recognizes the need to make improvements to its existing water supply and distribution system; and WHEREAS, the City of Muskegon authorized Prein&Newhof to prepare an amendment to the City’s DWSRF Project Plan, which recommends improvements to provide a more reliable and resilient water supply and distribution system including replacement of aging or undersized water mains, replacement of lead service lines, which can cause elevated lead concentrations in homes, and replacement or rehabilitation of aging components of the Water Filtration Plant and a storage tank; and WHEREAS, said Project Plan Amendment was presented at a Public Meeting held on May 28, 2024 and all public comments at the hearing or written comments submitted during the public comment period have been considered and addressed. NOW THEREFORE BE IT RESOLVED, that the City of Muskegon formally adopts said Project Plan Amendment and agrees to implement the selected FY 2025 projects based on the selected alternatives for those projects. BE IT FURTHER RESOLVED, that the Director of Public Works, a position currently held by Daniel VanderHeide, is designated as the authorized representative for all activities associated with the project referenced above, including the submittal of said Project Plan as the first step in applying to the State of Michigan for a Drinking Water Revolving Fund Loan to assist in the implementation of the selected alternative. Yeas: Nays: I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on May 28, 2024. BY: Ann Meisch, City Clerk ______________________________________________________________________________ Signature Date (EQP 3530 REV 01/2015) Page 8 of 207 Project Plan Amendment FY 2024 Drinking Water Project Plan - Amendment Prepared for City of Muskegon May 2024 2230379 DRAFT Page 9 of 207 Contents 1 Project Background .......................................................................................................... 1 Study Area Characteristics – No Revisions ...................................................................... 1 Summary of Project Need ................................................................................................ 1 Projected Needs for the Next 20 Years...................................................................... 1 2 Analysis of Alternatives.................................................................................................... 2 Identification of Potential Alternatives............................................................................ 2 No-Action ................................................................................................................... 2 Elevated Storage Tank ............................................................................................... 3 Replacement of Water Main ..................................................................................... 3 Pipe Material Alternatives – No Revisions ....................................................................... 3 Analysis of Principal Alternatives ..................................................................................... 3 The Monetary Evaluation .......................................................................................... 3 The Environmental Evaluation – No Revisions .......................................................... 4 3 Selected Alternative......................................................................................................... 4 Description of the Selected Alternative........................................................................... 4 Project Schedule .............................................................................................................. 5 Cost Estimates.................................................................................................................. 5 Authority to Implement the Selected Alternatives ......................................................... 6 Financials.................................................................................................................... 6 Design/Permits........................................................................................................... 6 User Costs ........................................................................................................................ 6 Overburdened Community – No Revisions ..................................................................... 7 4 Evaluation of Environmental Impacts – No Revisions ........................................................ 7 5 Mitigation – No Revisions ................................................................................................ 7 6 Public Participation .......................................................................................................... 7 Public Meeting ................................................................................................................. 7 Adoption of Project Plan .................................................................................................. 7 ii s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 10 of 207 Tables Table 5 Amended Summary of Selective Alternatives Figures Figure 2 Amended Selected Water System Improvements Map iii s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 11 of 207 Appendices - Amended Appendix I Cost Estimates Appendix J Present Worth Analysis Appendix T Annual Debt Service Cost Summary Appendix U Public Participation Documentation Appendix V Resolution of Project Plan Adoption iv s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 12 of 207 1 Project Background The City of Muskegon adopted its current DWSRF Project Plan on May 23, 2023. Over the last year, the City continued assessment of its water system. As a result, some additional projects were identified as high priority to the City. This Project Plan Amendment has been prepared on behalf of the City of Muskegon, Muskegon County, Michigan, for the purpose of obtaining a Drinking Water State Revolving Fund (DWSRF) loan from the State of Michigan for the construction of improvements to the City of Muskegon’s drinking water system. This report serves only as an amendment to the current approved City DWSRF Project Plan. The evaluation includes an analysis of cost, technical feasibility, and environmental impacts of the amended projects only. Study Area Characteristics – No Revisions Summary of Project Need The City has identified additional improvements required over the next 20 years. These consist of elevated storage tank coating, distribution system looping and lead service line replacements. Projected Needs for the Next 20 Years Over the last year additional research, inspections and system modeling have been completed. Based on these results three additional projects have been identified. Elevated Storage Tanks The City’s Marshall Tank wet interior coating was installed in 1991 and has surpassed its expected service life, furthermore damage to the coating has occurred along the water line due to ice. A full blast and recoating of the tank wet interior is recommended. A mixer to improve water quality and reduce ice buildup will also be added. Distribution System Following additional system assessment during the City’s ongoing Drinking Water Asset Management Study two water main dead ends were identified requiring looping. The proposed projects are identified below. s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 13 of 207 Wildwood Lane and Dowd Street Dead End The South Clayhill neighborhood has two significant dead end water mains in close proximity to each other. Wildwood Lane Court extends east from Barclay Street. This street has a 550 ft dead end 8-inch water main which extends from the Barclay 12- inch water main. Dowd Street from Barney Avenue to Pulaski Avenue has a 700 ft long 8-inch dead end water main extending south from Barney Avenue. These are both long dead ends which result in poor water circulation and stagnate water. This project proposes to connect the two dead ends together with a 360 ft long 8-inch water main. This will eliminate both dead ends and provide improved hydraulics within the South Clayhill neighborhood by connecting it to the 12-inch water main on Barclay Street. Yuba Street Dead End Yuba Street between Cross Avenue and Butler is a 400 ft dead end 6-inch water main that extends from Cross Avenue. This main does not have many users which results in little water movement and exchanges within the main. The proposed project would extend an 8-inch water main from the north end of Yuba Street east in Butler Street to the 24-inch transmission main in Erickson Street. The result is a looped water main which will improve circulation of the water system in this area. In addition this will provide better connectivity for the greater neighborhood to the City’s transmission network. 2 Analysis of Alternatives Identification of Potential Alternatives No-Action Elevated Storage Tank Failure to maintain an adequate coating on a steal elevated tank will introduce aggressive corrosion shortening the service life of this critical piece of infrastructure. Failure of the s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 14 of 207 tank would be catastrophic. Maintaining the interior coating is a cost-effective method to lengthen the service life of the tank. The no-action option is not a viable option. Water Main Looping If no action is completed, then no improvements to the water age and hydraulics in the system will occur. Elevated Storage Tank Recoating of the tank will consist of first removing the existing coating with an abrasive blast. Following removal an epoxy coating will be applied over the entire wet interior. Recoating will provide a long service life for the existing tank. A tank mixer will also be added to this tank to reduce issues due to stagnant water. Replacement of Water Main Wildwood Lane and Dowd Street Dead End This project will connect the two dead end water mains together with a 360 ft long 8-inch water main. Extension of this water main as described will meet all project objectives. Yuba Street Dead End This project will extend an 8-inch water main from the north end of Yuba Street east in Butler Street to the 24-inch transmission main in Erickson Street. Extension of this water main as described will meet all project objectives. Pipe Material Alternatives – No Revisions Analysis of Principal Alternatives The Monetary Evaluation Detailed cost estimates are included as well as a present worth analysis as described in the Project Plan. s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 15 of 207 The cost estimates include all costs associated with engineering, construction, and mitigation cost if necessary. In summary, the monetary evaluation results are as follows: Wildwood Lane Court and Dowd Street Dead End Replace water main and all lead services as described in Section 1.2.1.2. The estimated project cost is $163,000. Yuba Street Dead End Replace water main and all lead services as described in Section 1.2.1.2. The estimated project cost is $229,000. Marshall Tank Coating Recoat the wet interior of the Marshall Tank and add a mixer as described in Section 2.1.2. The estimated project cost is $488,000. The Environmental Evaluation – No Revisions 3 Selected Alternative Description of the Selected Alternative Figure 2 Amended shows the selected water system improvement location. A summary of the selected alternatives including brief descriptions and cost estimates is included in Table 5 Amended and each added project is described below. Project 18: Wildwood Lane Court and Dowd Street Dead End (FY2025 Extend 360 ft of 8-inch water main from the dead end on Wildwood Lane Court to the dead end on Dowd Street. The estimated project cost is $163,000. Project 19: Yuba Street Dead End (FY2025) s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 16 of 207 Extend 370 ft of 8-inch water main from the dead end on Yuba Street to the 24-inch transmission main on Erickson Street. The estimated project cost is $229,000. Project 20: Marshall Tank Coating (FY2025) Replace the wet interior coating of the Marshall Elevated Storage Tank and add a tank mixer. The estimated project cost is $488,000. Project Schedule The table below is a schedule for the proposed water system improvements that are intended to be included as part of the City’s FY2025 DWSRF Project. They would be funded under the fourth quarter of fiscal year 2025. FY 2025 DWSRF Project (4th Quarter 2025) Proposed Project Schedule Milestone Date Hold Public Hearing May 28, 2024 Submit Final Project Plan to EGLE June 2024 Receive Approval of Project Plan September 2024 Plans and Specifications Approved May 2025 Receive Construction Permit May 2025 Receive Construction Bids June 2025 DWSRF Loan Awarded August 2025 Begin Construction April 2026 Construction Completed November 2028 Cost Estimates Appendix I contains cost estimates for the proposed amended water system improvements. The project costs include construction costs and approximately 30% for construction contingencies, legal, administrative, and project engineering costs. s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 17 of 207 Authority to Implement the Selected Alternatives Implementation of the proposed project is based on the assumption that the project will be financed by a low-interest loan from the DWSRF program. The City of Muskegon has the necessary legal, institutional, financial, and managerial resources available to ensure the construction, operation and maintenance of the proposed facilities. Financials The City of Muskegon recently developed a financial plan as required by the EGLE as part of its Water Asset Management Program. As a result, the City has continued to implemented rate adjustments in anticipation of future capital improvements. However, the City of Muskegon may not construct all proposed projects without grants and/or loan principal forgiveness in order to have sufficient funds to pay for the proposed bond payments for the bonding period of twenty years. Design/Permits All FY2025 projects will be under design in late 2024 and will be submitted for all necessary permits prior to the required deadline. User Costs EGLE requires the applicant to perform a Present Worth analysis of the various options. The Present Worth analysis (Appendix J) uses discount factors that reduce the annual expenses compared to what the annual bond payment would be. Appendix T contains the annual debt service cost summary and provides the worst-case scenario where the proposed bond payment will not be reduced by any anticipated discounts related to salvage value, reduction in OM&R, energy savings, grants, and principal forgiveness. The City of Muskegon is planning on funding the FY2025 projects with an estimated $13,983,000 DWSRF loan at a 2.00% interest rate for a 20-year period. The expected annual debt service for the proposed projects based on the DWSRF loan criteria will be approximately $855,154 per year. This would represent an approximate increase in user rates of $3.43 per month for FY 2025 projects for the average residential user. This is based on 20,784 meter equivalents. For city customers only. The City will decide on final number of projects to complete and any rate s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 18 of 207 adjustments once the DWSRF funding levels for FY 2025 are set and opportunities for grants or principal forgiveness are determined. As of July 1, 2022, water rates for City of Muskegon residents are $2.06 per 100 cubic feet for both City residential and commercial customers. Additionally, a $5.00 lead service line replacement fee and debt service fee based on meter size is added to all water accounts. Based on available water billing data, the average residential customer uses 511 cubic feet per month. This water usage and meter size corresponds to a water bill of $21.61 per month for the typical residential customer. Overburdened Community – No Revisions 4 Evaluation of Environmental Impacts – No Revisions 5 Mitigation – No Revisions 6 Public Participation Public Meeting A notice of public meeting was posted on the City of Muskegon Facebook page on May 17, 2024, and published on the website on May 17, 2024, eleven full days prior to the public meeting scheduled for May 28, 2024. A copy of the notice is provided in Appendix L. A copy of the project planning document was available to the public at City Hall during the public comment period. A screenshot of the website posting is provided in Appendix L. Adoption of Project Plan s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 19 of 207 Tables Table 5 Amended: Summary of Selected Alternatives s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 20 of 207 CITY OF MUSKEGON FY24 DWSRF PROJECT PLAN AMENDMENT Table 5 - Summary of Selected Alternatives Total Project Water Service DWSRF Eligible Cost Project # Year Project Title Project Description Replacements Cost Estimate Estimate 6. FY25 Catherine Avenue - Irwin Replace existing 4-inch and 6-inch water main with approximately 3,300 feet of 8-inch main from Irwin Ave. to 71 $3,103,000 $4,711,000 Ave. to Wood St.* Wood St. Replace water services from the main to the meter in the buildings. 17. FY25 Water Service Replace 870 galvanized/lead water services per year at various locations throughout the City to be determined 870 $10,000,000 $10,000,000 Replacements after funding is obtained. 18. FY25 Wildwood Ln Ct and Replace existing 4-inch and 6-inch water main with approximately 3,300 feet of 8-inch main from Irwin Ave. to 0 $163,000 $163,000 Dowd St Dead End Wood St. Replace water services from the main to the meter in the buildings. 19. FY25 Yuba Street Dead End Replace existing 4-inch and 6-inch water main with approximately 3,300 feet of 8-inch main from Irwin Ave. to 0 $229,000 $229,000 Wood St. Replace water services from the main to the meter in the buildings. 20. FY25 Marshall Tank Coating Recoat the wet interior of the Marshall Tank 0 $488,000 $488,000 Total FY25 Cost: $13,983,000 $15,591,000 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 21 of 207 Figures Figure 2 Amended: Selected Water System Improvements Map s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 22 of 207 Bear Lake Project 19: Project 20: LY NC E AV Yuba Street CITY OF MUSKEGON M RD Marshall Tank Coating O ID L TT MEEKING ST OA ON R ST ND MUSKEGON COUNTY, MI CHANNE A K DIM FULT MARSHALL ST OAKH ILL DR ADAMS AV E DR RUD CIRCL DR LEONARD AVE DWSRF PROJECT PLAN TON SELECTED WATER SYSTEM LANGLEY ST E DR City of T DR MARQUETTE AVE LIGH NS IMPROVEMENTS AMENDMENT INE City of North H Muskegon SO BE SK T S AC YL ICK ST AVE AR WA JACKSON AVE DUC E Y H FIGURE 2 Muskegon ER BOU IUS ST TA ST RE NE MCLAREN ST OT MAY 2024 TAV ABBEY ST ALVA ST R TO RD MARY ST BA ET MULDER ST LS AGNE S ST OC YU ON T VIRID SUMNER AVE WN Muskegon Lake C IR RS I 2230379 ST E E AN WESLEY AVE AT R R C E POINT D Muskegon Lake LEGEND EDGEW D SHORELINE DR E Project 9: Ryerson Creek DWSRF Projects AV CO X Orchard Project 1: Holbrook Avenue RA WIL Avenue R Project 2: 6th Street TE MU RP E OA K AVE Project 3: 7th Street AV E SP HY AV S CE THOMP S ON RI RI OR ST DA NG M ORCHARD AVE Project 4: Glenside Phase II STEVENS ST PIN R ST MILLARD ST ST 1S EMERALD ST E 2N E AV AMITY AVE Project 4: Glenside Phase III T SCOTT ST FORK ST ST D LE ST Project 12: E RT ST E AV MY VE Project 4: Glenside Phase IV N ALLEN AVE LA AV Project 14: JAY ST O NA K N G TO Catherine OAK GROVE ST ES ER HO AV E AV E KE L WFP Improvements RE D W E ST AY ER M US WA APPLE AVE Avenue Project 4: Glenside Phase V R CL ST JEFFERSON ST SO EB Project 8: Wood to Getty Project 5: Wood Street CHESTNUT ST MAPLE ST WILLIAMS ST AM W PH E AV Iona Avenue B IA Project 6: Catherine Avenue 3R RO ON ST D ADA AVE FT E LA S IA 6T KENNETH ST AV ST ISABELLA AVE UF RK Project 7: Jefferson Street E H BE N BL AV EASTGATE ST ST TO ST IN RT VE A US ST EA CH SO Project 8: Iona Avenue O AR HOLT ST H RE 4T ST W E LA AV R H MCLAUGHLIN AVE E DE Project 9: Orchard Avenue TRY CLUB D NA City of ST AV WOOD ST EVA Lake Michigan IO OE E Project 6: NS VE AV TO RA R N LA NE NA Project 10: Madison Street Muskegon MO IL E RI HIL VE NS Catherine AV E J:\GIS_Client\Mskgn-GD\Mskgn-GD\2230379_FY24 DWSRF Project Plan\2230379_Figure 2_Water System Improvements.mxd - PN\EJD - 5/14/2024 4:52:36 PM R E B O LTW O ER AV TH L AV O ON CA MICH IGAN AVE M G E Project 11: Dale Avenue M AR S N MA RO Avenue UN ST TH CO E 7T ST AV A Project 12: Catherine Avenue UR H WB Irwin to Wood Project 15: OD ST DR WASHINGTON AVE TA EVA ST IRWIN AVE CA NS HENRY ST Nims Tank Coating TO NA Project 13: 9th Street BEIDLER ST VE GRAND AVE Project 3: NI M Project 14: WFP Improvements ST Project 2: S TERRACE ST FRANKLIN ST 7th Street ST U CLINTON ST KINGSLEY ST A 6th Street Project 15: Nims Tank Coating RN SOUTHERN AVE HA FLEMING AVE JIROCH ST Project 5: Project 18: Wildwood Lane & Dowd Street GETTY ST DAVIS ST Wood Project 19: Yuba Street 5TH ST IRELAND AVE FOREST AVE EMERSON AVE DIVISION ST Street MESSLER ST HUIZENGA ST Project 20: Marshall Tank Coating DR Project 7: RUDDIMAN ST MCGRAFT ST RE DALE AVE HO Jefferson S SEAWAY DR NOTE: THE LOCATIONS OF THE WATER SERVICE KE Street LA REPLACEMENT PROJECTS (16 & 17) WILL BE E LARCH AVE AV SMITH ST AURORA AVE SANFORD ST WITHIN THE CITY SERVICE AREA AND DETERMINED RY SUPERIOR ST Project 11: TURNER AVE E ME E ELWOOD ST LAKETON AVE AFTER FUNDING IS OBTAINED. AV PARK ST AV O PECK ST ER TG COMMERCE ST Dale Avenue M LA ON ALPHA AVE L PA TEMPLE ST NO M Project 10: N NEVADA ST WINDSOR AVE HOLBROOK AVE Madison Street A DDISON MADISON ST TOR ESTES ST BOURDON ST YOUNG AVE Project 1: RE N HOYT ST ST PARSLOW DR MA Project 13: Holbrook KEATING AV E MO T NN ST E EK AVE DCR 9th Street Avenue ON FAIR AVE ST OO WILSON AVE W LOW DR S AVE WIL T M ER DELANO AVE CG Project 4: 9TH ST MIN Project 4: City of RA JARMAN ST MANN AVE FT Glenside BARCLAY ST Glenside PA Muskegon Heights CONTINENTAL ST HACKLEY AVE RK Phase II Phase IV RAY ST VE STEIN ST GA R MAFFETT ST AUSTIN ST VALLEY ST DIN D KANITZ ST WAALKES ST DYSON ST HAR VINCENT DR GLEN AVE CROWLEY ST HUDSON ST DOWD ST KINSEY ST LEMUEL ST O DGETT ST MCILWRAITH ST GLADE ST ST PA R K D RIDG 8TH ST E BARNEY AVE MANZ ST WESTW OOD AV BAKER ST R Ru d LEAHY ST HADDEN ST G CUMBERLAND ST RE BL E d PULASKI AVE I ima EN CR BEARDSLEY AVE IVORY AVE nC ! W O HOVEY AVE O ZI re e O ER REYNOLDS ST RANDOLPH AVE D Project 18: RIORDAN ST HOWDEN ST k AV ST tle Muskegon PHILO AVE CHESTER DR Project 4: E W IN Li t Creek HOWELL AVE Wildwood Lane & MCC RACKEN ST Project 4: Glenside Township MONTAGUE AVE HUME AVE Dowd Street k la c WICKHAM DR Feet Glenside Phase V SHERMAN BLVD B 0 650 1,300 2,600 Phase III City of Roosevelt Park Page 23 of 207 Appendix I Cost Estimates s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 24 of 207 Project 6 Updated Estimate of Probable Cost Owner: City of Muskegon Project Title: Catherine Avenue - Irwin Ave. to Wood Ave. Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount I. Sanitary Sewer 1 Sanitary Sewer, 8-inch 2,600 ft. $130 $338,000 2 Sanitary Manhole 12 ea. $4,500 $54,000 3 Sanitary Lateral, 6-inch 64 ea. $4,500 $288,000 II. Water Main 4 Water Main, 8-inch 3,300 ft $140 $462,000 5 Water Main, 6-inch 150 ft $125 $18,750 6 Water Main, Valve and Box, 8-inch 17 ea $3,000 $51,000 7 Water Main, Valve and Box, 6-inch 10 ea $2,000 $20,000 8 Water Main, Cross, 8" x 8" x 8" x 8" 3 ea $2,500 $7,500 9 Water Main, Tee, 8" x 8" x 8" 2 ea $2,000 $4,000 10 Water Main, Tee, 8" x 8" x 6" 10 ea $2,000 $20,000 11 Water Main, Tapping Tee & Valve, 10" x 8" 1 ea $9,000 $9,000 12 Water Main, Reducer, 8" x 6" 6 ea $1,500 $9,000 13 Water Main, Hydrant 10 ea $5,000 $50,000 14 Water Main, Connect to Existing 11 ea $5,000 $55,000 15 Water Main, 1-inch Service 71 ea $8,000 $568,000 III. Road Reconstruction 16 Mobilization, Max 10% 1 ls $362,000 $362,000 17 Catch Basin Replacement 15 ea. $4,000 $60,000 page 1 of 2 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 25 of 207 Item No. Description Quantity Unit Unit Price Total Amount 18 Storm Manhole Replacement, 48-inch Dia 10 ea. $4,500 $45,000 19 Storm Manhole Replacement, 60-inch Dia 2 ea. $9,000 $18,000 20 Storm Sewer Replacement, 12-inch to 15-inch 2,400 ft. $90 $216,000 21 Storm Sewer Replacement, 36-inch 60 ft. $300 $18,000 22 Road Replacement 3,000 ft. $310 $930,000 23 Traffic Control 1 ls $20,000 $20,000 Construction Estimate: $3,623,250 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $1,087,750 Total Estimate: $4,711,000 Inelgible (1/3 Road Reconstruction): $1,608,000 DWSRF Eligible (2/3 Road Reconstruction): $3,103,000 page 2 of 2 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 26 of 207 Project 17 - Updated Estimate of Probable Cost Owner: City of Muskegon Project Title: FY25 Water Service Replacements Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Replace Lead/Galvanized Services 870 ea $10,000 $8,700,000 Construction Estimate: $8,700,000 Construction Contingencies, Legal, Administrative, Engineering Costs (15%): $1,300,000 Total Estimate (DWSRF Eligible): $10,000,000 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 27 of 207 Project 18 Estimate of Probable Cost Owner: City of Muskegon Project Title: Wildwood Ln Ct and Dowd St Dead End Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Mobilization, Max 10% 1 ls $12,000 $12,000 2 Traffic Control 1 ls $5,000 $5,000 3 Water Main, 8-inch 360 ft $150 $54,000 4 Water Main, 45 Bend, 8-inch 2 ea $2,000 $4,000 5 Water Main, Valve and Box, 8-inch 1 ea $15,000 $15,000 6 Water Main, Sleeve, 8-inch 1 ea $2,000 $2,000 7 Machine Grading, Modified 4 sta $1,000 $4,000 8 Aggregate Surface Course, 6-inch 200 syd $16 $3,200 9 Bin-Block Barrier 4 ea $500 $2,000 10 Clearing and Grubbing 1 lsum $20,000 $20,000 11 Turf Restoration 4.0 sta $1,000 $4,000 Construction Estimate: $125,200 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $37,800 Total Estimate (DWSRF Eligible): $163,000 page 1 of 1 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 28 of 207 Project 19 Estimate of Probable Cost Owner: City of Muskegon Project Title: Yuba Street Dead End Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Mobilization, Max 10% 1 ls $17,000 $17,000 2 Traffic Control 1 ls $5,000 $5,000 3 Water Main, 6- inch 20 ea $110 $2,200 4 Water Main, 8-inch 370 ft $150 $55,500 5 Water Main, Valve and Box, 6-inch 1 ea $2,000 $2,000 6 Water Main, Valve and Box, 8-inch 1 ea $15,000 $15,000 7 Water Main, Tapping Sleeve & Valve, 24" x 24" x 8" 1 ea $10,000 $10,000 8 Water Main, Sleeve, 6-inch 1 ea $2,000 $2,000 9 Water Main, Hydrant 1 ea $5,000 $5,000 10 Machine Grading, Modified 4 sta $1,000 $4,000 11 Aggregate Surface Course, 6-inch 1000 syd $16 $16,000 12 HMA, 330 lb/syd 170 ton $120 $20,400 13 Clearing and Grubbing 1 lsum $20,000 $20,000 14 Turf Restoration 4.0 sta $500 $2,000 Construction Estimate: $176,100 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $52,900 Total Estimate (DWSRF Eligible): $229,000 page 1 of 1 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 29 of 207 Project 20 Estimate of Probable Cost Owner: City of Muskegon Project Title: Marshall Tank Coating Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Paint Wet Interior of Marshall Tank 1 ls $300,000 $300,000 2 Tank mixer 1 ls $75,000 $75,000 Construction Estimate: $375,000 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $113,000 Total Estimate (DWSRF Eligible): $488,000 page 1 of 1 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 30 of 207 Appendix J Present Worth Analysis s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 31 of 207 CITY OF MUSKEGON DWRF PROJECT PLAN PRESENT WORTH ANALYSIS - AMENDMENT Project 6 Project 17 Project 18 Project 19 Project 20 Catherine Avenue - Irwin FY25 Water Service Wildwood Ln Ct and Marshall Tank Yuba Street Dead End Project Description Ave. to Wood Ave. Replacements Dowd St Dead End Coating FY2025 FY2025 FY2025 FY2025 FY2025 Capital Costs (including ELAC) Structures (50 yr) $2,626,000 $8,461,000 $138,000 $194,000 $0 Process Equipment (10 yr) $0 $0 $0 $0 $413,000 Planning $48,000 $154,000 $3,000 $4,000 $8,000 Engineering, Legal, and Administrative $429,000 $1,385,000 $22,000 $31,000 $67,000 Project Cost (DWSRF Eligible) $3,103,000 $10,000,000 $163,000 $229,000 $488,000 (A) 20-yr Present Worth of Capital Costs 1 $1,893,671 $6,102,709 $99,474 $139,752 $297,812 Operation, Maintenance & Replacement (OM&R) Energy Cost Savings - Not included/negligible $0 $0 $0 $0 $0 2 Annual OM&R - Not included/negligible $0 $0 $0 $0 $0 Process Equipment Replacement (10 yr) $0 $0 $0 $0 $596,803 (B) 20-yr Present worth of OM&R 1 $0 $0 $0 $0 $0 3 (C) 20-yr Present worth of Energy Cost Savings $0 $0 $0 $0 $0 Salvage Value of Capital Salvage value at 20 years $1,575,600 $5,076,600 $82,800 $116,400 $0 (D) 20-yr Present worth of Salvage 1 $961,543 $3,098,101 $50,530 $71,036 $0 Total Present Worth (A + B + C - D) $932,128 $3,004,608 $48,944 $68,717 $297,812 Equivalent Annual Cost4 $59,793 $192,737 $3,140 $4,408 $19,104 Total Existing Residential Equivalent Units (REUs) City of Muskegon REUs: 20,784 Unit of Government Responsible for Payment for: Project 6 Project 17 Project 18 Project 19 Project 20 City of Muskegon 100.00% 100.00% 100.00% 100.00% 100.00% City of Muskegon Annual Cost per REU $2.88 $9.27 $0.15 $0.21 $0.92 City of Muskegon Monthly Cost per REU $0.24 $0.77 $0.01 $0.02 $0.08 Total Proposed Project Cost FY2025: $13,983,000 Total Present Worth FY2025: $4,352,208 Total Equivalent Annual Cost FY2025: $279,182 Annual 4 Monthly 4 Total City of Muskegon Cost per REU (FY2025 Projects): $13.43 $1.12 Notes: 1 U.S. EPA Discount rate for Year 2024 is 2 Negative value indicates reduction in Annual O&M 3 Assumed energy cost rate of escalation is 4 Based on Total Present Worth Page 1 of 1 May 2024 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 32 of 207 Appendix T Annual Debt Service Cost Summary s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 33 of 207 CITY OF MUSKEGON ANNUAL DEBT SERVICE COST SUMMARY - FY 2025 PROJECTS Project Annual Debt Total Annual Debt No. Project Cost Estimate Service* Service Cost* 6. Catherine Avenue - Irwin Ave. to Wood Ave. $3,103,000 $189,769 $189,769 17. FY25 Water Service Replacements $10,000,000 $611,567 $611,567 18. Wildwood Ln Ct and Dowd St Dead End $163,000 $9,969 $9,969 19. Yuba Street Dead End $229,000 $14,005 $14,005 20. Marshall Tank Coating $488,000 $29,844 $29,844 $13,983,000 $855,154 $855,154 Existing REU's 20,784 Annual REU Cost $41.14 Monthly REU Cost $3.43 * Annual debt service based on 20 year loan with a 2.00% interest rate. S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 34 of 207 Appendix U Public Participation Documentation s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 35 of 207 Summary of Public Meeting and Presentation s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 36 of 207 City Website Posting s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 37 of 207 List of Attendees s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 38 of 207 Appendix V Signed Resolution of Project Plan Adoption s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 39 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Approval of Minutes Submitted by: Ann Meisch, City Clerk Department: City Clerk Brief Summary: To approve minutes of the May 13, 2024, Commission Worksession Meeting and the May 14, 2024, Regular Commission Meeting. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 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 No Information Technology Other Division Heads Communication Legal Review Page 40 of 207 CITY OF MUSKEGON CITY COMMISSION WORKSESSION May 13, 2024 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES 2024-42 CALL TO ORDER The Worksession Meeting of the City of Muskegon was called to order at City Hall, 933 Terrace Street, Muskegon, Michigan, at 5:30 p.m. Present: Mayor Ken Johnson, Vice Mayor Rebecca St.Clair, Commissioners Jay Kilgo, Willie German, Jr., Rachel Gorman, and Katrina Kochin Absent: Commissioner Destinee Keener NEW BUSINESS A. Taste & LAF Transition to LAB Events DPW- Parks LAB Events has requested the transition of ownership of both Taste of Muskegon and Lakeshore Art Festival from the City of Muskegon Parks & Recreation Department. They have put together a proposal that will keep these popular events as a staple of Muskegon as well as make improvements. Parks and Recreation Director Kyle Karczewski explained the request to transition ownership and discussion was held. This item will be on the May 14, 2024, City Commission Meeting. B. City Hall Operations Space Needs Analysis Update Planning An update on the findings of a space needs analysis for City Hall operations that considers a potential move to the former Hackley Administration Building. Upon selection of their contract in November 2023, City Staff worked with Integrated Architecture to complete the City Hall Operations Space Needs Analysis. The analysis compares the available space in both the current City Hall building at 933 Terrace Street and the former Hackley Administration Building at 349 W. Webster Avenue to evaluate a potential move of City Hall staff and services to the former Hackley Administration Building. Jamie Pesch, Planner, Page 1 of 3 Page 41 of 207 explained the findings. C. Muskegon Social Equity Program Planning The City has received $69,949.85 from the excise tax on marihuana for fiscal year 2023. The City has traditionally allocated 30% of the money to fund the Musekgon Social Equity Program (MSEP). Staff is recommending a few changes to the MSEP with the new funding. Mike Franzak, Planning Director updated Commission. D. Sale of 12.87 acres at 2675 Olthoff Drive to Bluewater Industrial Development, LLC Economic Development Staff have been working with Bluewater Development to negotiate a purchase agreement for a portion of our remaining acreage at the Port City Industrial Park's former Westhore Correctional Facility site. An existing company in the Port City Industrial Park is seeking space for a needed expansion. Bluewater Industrial Development plans to construct a 215,000 square foot facility on the proposed sale site for the company, which will allow the addition of 75-100 new full-time industrial jobs in the community. Bluewater is in the process of finalizing a long- term lease with the company, and has 60 days from execution of the sales agreement to do so. The Michigan Economic Development Corporation is also involved with a commitment of assistance, which must remain confidential at this time. Their assistance, as always, is predicated on the city approving the maximum local tax abatement which will come to you in a future meeting. The total project capital investment with real property and equipment is $23,481,220. A particular point of interest in the sales agreement is the subject of stormwater retention. In an effort to be efficient with our remaining industrial space in the park, and to be good environmental stewards, staff have negotiated with Bluewater to construct a shared stormwater retention basin on city property immediately adjacent to the sale site. We have roughly 30 acres remaining that can be developed for industrial/commercial use, and we will require future users to connect to this pond rather than constructing their own. This will provide a cost benefit for future developments, and also create more usable space on their lots. At the time of closing with the city, a future developer will reimburse Bluewater Development for a proportional share of the initial pond construction based on acreage. The city will contract with Bluewater to maintain the pond (mow around it) until such time as another development connects to it, at which point we will bid out mowing/maintenance or conduct it in-house through Public Works. Jake Eckholm, Development Services Director, explained the request and discussion took place. This item will appear on the May 14, 2024, City Commission Meeting. PUBLIC COMMENT Page 2 of 3 Page 42 of 207 Public comments received. ADJOURNMENT The City Commission meeting adjourned at 8:16 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 3 of 3 Page 43 of 207 CITY OF MUSKEGON CITY COMMISSION MEETING May 14, 2024 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES CALL TO ORDER The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 PM, Tuesday, May 14, 2024. Pastor Michael McGee from Spring Street Missionary Baptist Church, opened the meeting with prayer, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners Willie German, Jr., Rachel Gorman, Jay Kilgo, Destinee Keener, and Katrina Kochin (arrived at 5:45 p.m.), City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch. PUBLIC COMMENT ON AGENDA ITEMS Public comments received. 2024-43 CONSENT AGENDA A. Approval of Minutes City Clerk To approve the minutes of the April 23, 2024, Special Commission Worksession and the Regular Commission Meeting; and the April 30, 2024, Special Commission Meeting. STAFF RECOMMENDATION: To approve the minutes. C. Updated Allocation Resolution to PM Restroom MNRTF Grant DPW- Parks Staff requests adoption of the resolution regarding the Pere Marquette South Restroom project and associated Michigan Natural Resources Trust Fund grant, correcting the City's commitment from $300,000 to $400,000 as noted in the approved grant agreement. Page 1 of 12 Page 44 of 207 On September 29, 2023, the DPW department brought a grant agreement and resolution for approval to the commission meeting. During this meeting, the commission voted to approve a grant agreement that included $400k in City funds, with the DNR covering the additional $300k under the grant. The resolution in the packet misstated that the City would contribute $300,000 in match; this is a necessary clerical update to the resolution document correcting the City's commitment to $400,000. This grant will provide us with an additional bathroom, establish a plaza, and provide well-needed updates to the existing Kite Shack building. It is noted that a budget amendment is not needed because this will be moved to fiscal year 2024-25. STAFF RECOMMENDATION: To adopt the resolution regarding the Pere Marquette South Restroom project and associated Michigan Natural Resources Trust Fund grant, correcting the City's commitment from $300,000 to $400,000 as noted in the approved grant agreement. E. Legal Representation for Tax Appeals for Property Tax Classification for Marihuana Operations Finance The City of Muskegon is requesting to spend an additional $10,000.00 for legal fees with Hallahan & Associates, P.C. for Marihuana tax appeals at the State Tax Commission and Michigan Tax Tribunal. Parmenter Law which normally represents the City of Muskegon, recommends that we use this law firm because of their expertise in these types of tax appeals. This Law Firm has been hired by other municipalities across the State to represent them for this unique property tax classification appeal. We thought it would be in our best interest to use this law firm because they are familiar with tax appeals from the Marihuana businesses. Fees for service will be calculated at hourly rate of $215 for attorneys and an hourly rate of $100 for law clerks and assistants. Previously, the Commission capped our expenses at $10,000.00. I am requesting another $10,000. STAFF RECOMMENDATION: Authorize the Finance Director to spend an additional $10,000 with Hallahan & Associates, P.C. for Marihuana tax appeals F. Equipment Purchase - Fleet Vehicle DPW- Equipment & Sanitation Staff is requesting approval to purchase a Chevrolet Equinox fleet vehicle from Berger Chevrolet under the MiDEAL contract. This vehicle will be a replacement of an existing fleet vehicle, and the purchase is included in the Equipment Fund budget for this fiscal year. STAFF RECOMMENDATION: Authorize staff to proceed with the purchase of a Chevrolet Equinox from Berger Chevrolet. H. Amendment to the Zoning Ordinance - Outdoor Seating (SECOND READING) Planning Staff initiated request to amend Sections 2003.04 and 2308 of the zoning ordinance to modify the regulations on outdoor seating. The Planning Page 2 of 12 Page 45 of 207 Commission unanimously recommended approval of the ordinance amendment. STAFF RECOMMENDATION: To approve the request to amend Sections 2003.04 and 2308 of the zoning ordinance to modify the regulations on outdoor seating as proposed. J. ATM for Muskegon Farmers Market City Clerk Staff sought out RFP's for an ATM at the Muskegon Farmers Market and is recommending Consumers Credit Union. Our current agreement with 5/3 Bank is set to expire in June of this year. We received two responses. They were from Baumtech out of Louisiana. They would charge $3.99 per transaction and give the Farmers Market $1.00 for up to 500 transactions, $1.50 for up to 1000 transactions, and $2 for any transactions over 1001. Consumers Credit Union was the second bidder. They have locations in the Muskegon area and offer virtual services speaking to a live person. They have been a sponsor of the Farmers Market on at least three occasions. They have offered a staff member at the market during peak times to assist people to use the ATM. They offer to host financial wellness education-themed days such as "shopping on a Budget", "Buying your First Home", etc. They are committed to holding drawings to their customers to give-away $50 Farmers Market gift certificates. STAFF RECOMMENDATION: Staff be authorized to sign an agreement with Consumers Credit Union to place an ATM at the Muskegon Farmers Market. K. Concur with CRC Recommendations to Accept Resignations and Make Appointments City Clerk To concur with the Community Relations Committee recommendations to accept resignations and make appointments to various boards. CRC recommendation to City Commission to accept resignations of: Parks and Recreation Advisory Committee Jequan Brown - Resident of Ward 2 - term expiring 01/31/2026 Anthony Olshansky - Resident of Ward 2 - term expiring 01/31/2027 Equal Opportunity Committee Tonya Pell - Citizen At-Large - term expiring 01/31/2025 Lakeside Business Improvement District Kathy Fearnley - Owner or Representative - term expiring 1/31/2026 CRC recommendation to City Commission to appoint/reappoint: Citizen's Police Review Board Deborah Sweet - Neighborhood Association Representative - term expiring 01/31/2026 Equal Opportunity Committee Lisa Judge - Citizen At-Large - term expiring 01/31/2025 Kelly Gooden - Ward I - term expiring 01/31/2027 Page 3 of 12 Page 46 of 207 District Library Board Barbara VanFossen - Commission Appointment - term expiring 06/30/2028 Parks and Recreation Advisory Committee Evelyn Hough - Resident of Ward 2 - term expiring 01/31/2027 Farmers Market Advisory Board Cally Travis - Seasonal Artisan - term expiring 01/31/2025 Kristin Johnson - Seasonal Food Vendor - term expiring 01/31/2027 STAFF RECOMMENDATION: To accept resignations and make appointments to various boards. L. Sale of 12.87 acres at 2675 Olthoff Drive to Bluewater Industrial Development, LLC Economic Development Staff have been working with Bluewater Development to negotiate a purchase agreement for a portion of our remaining acreage at the Port City Industrial Park's former Westhore Correctional Facility site. An existing company in the Port City Industrial Park is seeking space for a needed expansion. Bluewater Industrial Development plans to construct a 215,000 square foot facility on the proposed sale site for the company, which will allow the addition of 75-100 new full-time industrial jobs in the community. Bluewater is in the process of finalizing a long-term lease with the company, and has 60 days from execution of the sales agreement to do so. The Michigan Economic Development Corporation is also involved with a commitment of assistance, which must remain confidential at this time. Their assistance, as always, is predicated on the city approving the maximum local tax abatement which will come to you in a future meeting. The total project capital investment with real property and equipment is $23,481,220. A particular point of interest in the sales agreement is the subject of stormwater retention. In an effort to be efficient with our remaining industrial space in the park, and to be good environmental stewards, staff have negotiated with Bluewater to construct a shared stormwater retention basin on city property immediately adjacent to the sale site. We have roughly 30 acres remaining that can be developed for industrial/commercial use, and we will require future users to connect to this pond rather than constructing their own. This will provide a cost benefit for future developments, and also create more usable space on their lots. At the time of closing with the city, a future developer will reimburse Bluewater Development for a proportional share of the initial pond construction based on acreage. The city will contract with Bluewater to maintain the pond (mow around it) until such time as another development connects to it, at which point we will bid out mowing/maintenance or conduct it in-house through Public Works. STAFF RECOMMENDATION: Motion to approve the Purchase and Development Agreement with Bluewater Industrial Development, LLC and to authorize the Mayor and Clerk to sign. Page 4 of 12 Page 47 of 207 Motion by Commissioner German, second by Commissioner Keener, to adopt the Consent Agenda as presented minus items B, D, G, and I. ROLL VOTE: Ayes: Keener, German, Gorman, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES 2024-44 ITEMS REMOVED FROM THE CONSENT AGENDA B. Public Art Policy Planning Staff-initiated request to approve the public art policy to set the regulations on short-term placement of art, long-term placement of publicly-owned art, and street art. The Downtown Art Committee has reviewed the policy and have given their support for adoption. Legal counsel has written an opinion regarding the placement of religious and political art pieces. STAFF RECOMMENDATION: To approve the public art policy as proposed. Motion by Vice Mayor St.Clair, second by Commissioner German, to approve the public art policy as proposed with one addition that permanent placement of public art be approved by the Commission. ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, St.Clair, and Johnson Nays: None MOTION PASSED D. Parks & Recreation Fee Schedule DPW- Parks The Parks & Recreation Department is proposing participation fees for programs that will be running prior to the annual fee schedule update. The Parks & Recreation Department is proposing participation fees for new programs. Many of these programs will take place before the annual update to our City of Muskegon fee schedule. They are listed below with some supporting details. • Open Skate Entry: $5.00 - Ice skating at Trinity Health Arena • Open Skate Skate Rental: $ 3.00 - Rental of skates during open ice skating • Drop-in sports: $3.00 - Sports such as pickelball that are staffed and have overhead costs. • Youth Sports: Resident $40/resident $55/non-resident • Specialty Summer Camp: Up to $65/resident $85/non-resident - Some camps may come with a certification, extra equipment or have an Page 5 of 12 Page 48 of 207 additional fee for a subcontracted instructor. This would be the maximum fee to charge for these programs, many of which will be much lower than the listed price. Financial assistance will be available through the park programs. STAFF RECOMMENDATION: Authorize the approval of the Parks & Recreation 2024 fee schedule. Motion by Commissioner German, second by Vice Mayor St.Clair, to authorize the approval of the Parks & Recreation 2024 fee schedule. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES G. Rezoning of Properties at Oak Ave / Riley St (SECOND READING) Planning Request to rezone the following properties from MC, Medical Care to Form Based Code, Neighborhood Edge: 1760, 1761, 1771, 1775, 1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812, 1820, 1828, 1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-0032-00 and 24-661- 000-0033-00). The Planning Commission unanimously voted to recommend approval of the rezoning request. STAFF RECOMMENDATION: To approve the request to rezone the properties. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the request to rezone the following properties from MC, Medical Care to Form Based Code, Neighborhood Edge: 1760, 1761, 1771, 1775, 1789, 1803, 1811, 1819, 1827, 1835 Wells Ave; 1762, 1770, 1776, 1784, 1790, 1803, 1812, 1820, 1828, 1836 Oak Ave; 0 Wagner Ave (property numbers 24-661-000-0032-00 and 24- 661-000-0033-00). ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and Kochin Nays: None MOTION PASSES I. Taste & LAF Transition to LAB Events DPW- Parks LAB Events has requested the transition of ownership of both Taste of Muskegon and Lakeshore Art Festival from the City of Muskegon Parks & Recreation Department. They have put together a proposal that will keep these popular Page 6 of 12 Page 49 of 207 events as a staple of Muskegon as well as make improvements. Taste of Muskegon is entering its 18th year. Prior to becoming a City Event in 2018, the festival was part of the Downtown Muskegon Now group. Taste of Muskegon is a 2-day food and beverage festival taking place in and around Hackley Park. Around 30 Muskegon-area restaurants and food vendors line streets where they sell sample-sized portions of their menu items for patrons to "taste" in hopes of drawing people into their businesses regularly. Expenses are between $90,000-$100,000 a year and revenues have generally been around $140,000-$150,000. Taste of Muskegon does not pay any of its committee members. Lakeshore Art Festival - LAF was officially established in 2013 by the Chamber of Commerce and handed over to the City of Muskegon in 2021; however, a version of the festival called Muskegon Art in the Park has existed since 1961. Prior to being with the Chamber of Commerce, LAF was ran by Summer Celebration. There are over 250 craft and fine art exhibitors that line the streets of downtown and within Hackley Park as well as food vendors, street performers, & interactive public art. Expenses range from $130,000-$160,000 and revenues are in the range $145,000-$170,000 with an approximately yearly net profit of $5,000-$7,000. LAF pays its committee members (differing amounts based on position). When the City started running the events, they ran out of the Clerk's office where the 1-2 Event Planners were housed at the time. Both events moved with the Event Planners to Parks & Recreation in 2023 when they transferred departments. Neither events budget or expenses reflects either of the Event Planner's time/salaries that were put into planning them. The Event Planners spend over 50% of their working hours planning these events. A transition would be a drastic improvement in capacity for the Parks & Recreation department to provide programs for the community. The LAB team has requested $25,000 (total of $50,000) for seed money for each of these events for year 1 investments. This request is due to the high level of standard both events have and to build up the infrastructure for these events to maintain and continue at this level. The request is only for the first year and not an ongoing funding source. STAFF RECOMMENDATION: Authorize staff to transition Taste of Muskegon and Lakeshore Art Festival to LAB Events. Motion by Commissioner German, second by Vice Mayor St.Clair, to authorize staff to transition Taste of Muskegon and Lakeshore Art Festival to LAB Events. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Page 7 of 12 Page 50 of 207 Nays: None MOTION PASSES 2024-45 PUBLIC HEARINGS A. Request to Establish a Commercial Rehabilitation District, West Urban Properties, 1095 Third St. Economic Development Staff is requesting consideration for the establishment of a Commercial Rehabilitation District (PA 210) to support further development at 1095 Third Street by West Urban Properties. Last year, West Urban Properties was granted an option to redevelop a city-owned property into a mixed-use apartment project with attached townhomes on Houston Street. City staff have been actively collaborating with them on securing a grant to conduct environmental due diligence, finalizing a purchase and development agreement, and exploring appropriate tax incentives to support the financial viability of the project. We are now nearing the finalization of the project terms and are requesting the commission's consideration in establishing a PA 210 District to further facilitate this development. STAFF RECOMMENDATION: To close the Public Hearing. The Public Hearing was opened to hear and consider any comments from the public. Public comments were received from Veania Coleman. Motion by Commissioner Kilgo, second by Commissioner German, to close the Public Hearing. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES B. Establishment of a Property Assessed Clean Energy (PACE) Program Planning The property assessed clean energy (PACE) model is a mechanism for financing energy efficiency and renewable energy improvements on private property. PACE programs allow a property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment. PACE assessments are attached to the property rather than an individual and are available for residential and commercial developments. In order to participate in PACE funding, the City must create a PACE district and select an administrator to facilitate projects. At the April 23 meeting, this Commission approved a resolution to release the draft PACE Program Report to Page 8 of 12 Page 51 of 207 the public. Very minimal staff involvement is necessary once the PACE program is established by the Commission and there is no cost to the City to participate. STAFF RECOMMENDATION: To approve the resolution establishing a Property Assessed Clean Energy (PACE) program and to select Lean & Green Michigan as program administrator. The Public Hearing was opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to close the Public Hearing and approve the resolution establishing a Property Assessed Clean Energy (PACE) program and to select Lean & Green Michigan as program administrator. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES 2024-46 NEW BUSINESS A. Request to Establish a Commercial Rehabilitation District, West Urban Properties, 1095 Third St. Economic Development Staff is requesting consideration for the establishment of a Commercial Rehabilitation District (PA 210) to support further development at 1095 Third Street by West Urban Properties. Last year, West Urban Properties was granted an option to redevelop a city-owned property into a mixed-use apartment project with attached townhomes on Houston Street. City staff have been actively collaborating with them on securing a grant to conduct environmental due diligence, finalizing a purchase and development agreement, and exploring appropriate tax incentives to support the financial viability of the project. We are now nearing the finalization of the project terms and are requesting the commission's consideration in establishing a PA 210 District to further facilitate this development. STAFF RECOMMENDATION: Approve the establishment of a Commercial Rehabilitation District at 1095 Third St. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to approve the establishment of a Commercial Rehabilitation District at 1095 Third St. ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Page 9 of 12 Page 52 of 207 Nays: None MOTION PASSES B. Brownfield Development & Reimbursement Agreement, Trilogy Real Estate Muskegon, LLC, and the City of Muskegon, 60 Viridian Drive. Economic Development City staff is requesting consideration of the amended Brownfield Development and Reimbursement Agreement between Trilogy Real Estate Muskegon, LLC and the City of Muskegon and to consider the resolution. The 5-acre property was formerly the site of the Continental Motors industrial facility, featuring a 63,000 square foot, multi-story, 118-unit senior living building with surrounding asphalt parking areas, concrete walkways, and landscaping. Construction has been completed, and the building will open to residents this year. Now that construction has finished, the Developer can begin requesting reimbursement from the Brownfield Redevelopment Authority (BRA). To initiate this process, an Assignment and Assumption of the Brownfield Plan Agreement will be considered at the May 14, 2024 BRA meeting, along with the Development & Reimbursement Agreement. This request involves Ryerson Creek Land Co., LLC assigning its right, title, and interest in the TIF Agreement to Trilogy Real Estate Muskegon, LLC. The Development & Reimbursement Agreement presented today has been updated to reflect this change in assignment, pending BRA approval of the Assignment and Assumption of the Brownfield Plan. STAFF RECOMMENDATION: Approve the Brownfield Development and Reimbursement Agreement between Trilogy Real Estate Muskegon LLC, and the City of Muskegon and authorize the Mayor and City Clerk to sign. Motion by Vice Mayor St.Clair, second by Commissioner German, to approve the Brownfield Development and Reimbursement Agreement between Trilogy Real Estate Muskegon LLC, and the City of Muskegon and authorize the Mayor and City Clerk to sign. ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES C. 3rd Quarter Budget Reforecast Finance At this time staff is asking for approval of the 3rd Quarter Budget Reforecast for Page 10 of 12 Page 53 of 207 the FY2023-24 budget year. STAFF RECOMMENDATION: To approve the 3rd Quarter FY2023-24 Budget Reforecast as presented. Motion by Commissioner Kochin, second by Commissioner Keener, to approve the 3rd Quarter FY2023-24 Budget Reforecast as presented. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES D. Resolution Supporting the Great Lakes and St. Lawrence Cities Initiative's Creation of a Mayors Commission on Economic Transformation Manager's Office Resolution on transforming the Great Lakes and St. Lawrence River Basin into a thriving blue-green economic corridor while safeguarding our freshwater resources. The Great Lakes and St. Lawrence Cities Initiative, of which the City of Muskegon has recently become a member, is convening in Montreal, Quebec for its May 15-17, 2024, annual conference. At which times, the Cities Initiative and its membership of mayors from across the Great Lakes and St. Lawrence River Basin will be launching the Mayors Commission on Economic Transformation to promote sustainable, resilient, and inclusive economic development basin-wide and appropriate freshwater stewardship for the benefit of current and future generations. While the Mayor will not be in attendance at this year’s annual conference, with the Commission’s support, the Mayor anticipates participating with other Basin communities in developing an Action Plan for the Great Lakes and St. Lawrence Economic Transformation, 2025-2035, which will be released at the Cities Initiative’s 2025 annual conference in Milwaukee, Wisconsin. STAFF RECOMMENDATION: Adopt the resolution as presented. Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to adopt the resolution as presented. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and Kochin Nays: None MOTION PASSES ANY OTHER BUSINESS Commission discussed flying the Juneteenth Flag. The Flag Policy will be discussed at the May 28th Commission Meeting or the June 10th Worksession. Commission requested an update on the Arbor Community Grants, and Page 11 of 12 Page 54 of 207 announced the Park Planning Engagements. PUBLIC COMMENT ON NON-AGENDA ITEMS Public comments were received. 2024-47 CLOSED SESSION A. Attorney/Client Privileged Information Manager's Office Motion by Vice Mayor St.Clair, second by Commissioner Keener to go into Closed Session to consider material exempt from discussion and disclosure by State or Federal statute being an attorney/client communication. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES Motion by Vice Mayor St.Clair, second by Commissioner Kochin to go into Open Session ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Nays: None MOTION PASSES ADJOURNMENT The City Commission meeting adjourned at 9:28 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 12 of 12 Page 55 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: DWSRF Project Plan Amendment Submitted by: Dan VanderHeide, Public Works Department: Public Works Director Brief Summary: The City’s DWSRF Project Plan on file with the state for future revolving fund projects has been updated, and the City needs to receive comment and adopt the plan by resolution. Detailed Summary & Background: The City has taken advantage of favorable rates and even some principal forgiveness as a part of the state’s Revolving Loan Fund programs to complete substantial utility improvement projects, such as the Wilcox/Thompson and Morton projects currently underway. In order to be eligible for these programs, projects must be included in the City’s “Project Plan” that is on file with the state department of EGLE. The specific projects proposed for the program are not known at this time; this Project Plan is simply a list of projects the City may propose for the program in the future. The list is used by the state to perform preliminary environmental and other clearance work so they are prepared for the projects if and when the City proposes them. Prein & Newhof has updated our Drinking Water State Revolving Fund (DWSRF) Project Plan (the plan dedicated to drinking water projects) to show potential projects over the next several years. Part of the updating process includes holding a meeting where the public can comment on the plan (satisfied by today’s meeting and the public comment periods within it), and a resolution by the Commission adopting the plan. The resolution is attached. The Draft Project Plan Amendment is also included. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Decrease infrastructure burden on residents Sustainability in financial practices and infrastructure Goal/Action Item: 2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Reliable and efficient short and long term financial practices Amount Requested: Budgeted Item: N/A Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: 591 Yes No N/A X Recommended Motion: Page 56 of 207 Move to adopt the City’s 2025 DWSRF Project Plan by the included resolution. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads Communication Legal Review Page 57 of 207 A RESOLUTION ADOPTING A FINAL PROJECT PLAN AMENDMENT FOR WATER SYSTEM IMPROVEMENTS AND DESIGNATING AN AUTHORIZED PROJECT REPRESENTATIVE WHEREAS, the City of Muskegon recognizes the need to make improvements to its existing water supply and distribution system; and WHEREAS, the City of Muskegon authorized Prein&Newhof to prepare an amendment to the City’s DWSRF Project Plan, which recommends improvements to provide a more reliable and resilient water supply and distribution system including replacement of aging or undersized water mains, replacement of lead service lines, which can cause elevated lead concentrations in homes, and replacement or rehabilitation of aging components of the Water Filtration Plant and a storage tank; and WHEREAS, said Project Plan Amendment was presented at a Public Meeting held on May 28, 2024 and all public comments at the hearing or written comments submitted during the public comment period have been considered and addressed. NOW THEREFORE BE IT RESOLVED, that the City of Muskegon formally adopts said Project Plan Amendment and agrees to implement the selected FY 2025 projects based on the selected alternatives for those projects. BE IT FURTHER RESOLVED, that the Director of Public Works, a position currently held by Daniel VanderHeide, is designated as the authorized representative for all activities associated with the project referenced above, including the submittal of said Project Plan as the first step in applying to the State of Michigan for a Drinking Water Revolving Fund Loan to assist in the implementation of the selected alternative. Yeas: Nays: I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on May 28, 2024. BY: Ann Meisch, City Clerk ______________________________________________________________________________ Signature Date (EQP 3530 REV 01/2015) Page 58 of 207 Project Plan Amendment FY 2024 Drinking Water Project Plan - Amendment Prepared for City of Muskegon May 2024 2230379 DRAFT Page 59 of 207 Contents 1 Project Background .......................................................................................................... 1 Study Area Characteristics – No Revisions ...................................................................... 1 Summary of Project Need ................................................................................................ 1 Projected Needs for the Next 20 Years...................................................................... 1 2 Analysis of Alternatives.................................................................................................... 2 Identification of Potential Alternatives............................................................................ 2 No-Action ................................................................................................................... 2 Elevated Storage Tank ............................................................................................... 3 Replacement of Water Main ..................................................................................... 3 Pipe Material Alternatives – No Revisions ....................................................................... 3 Analysis of Principal Alternatives ..................................................................................... 3 The Monetary Evaluation .......................................................................................... 3 The Environmental Evaluation – No Revisions .......................................................... 4 3 Selected Alternative......................................................................................................... 4 Description of the Selected Alternative........................................................................... 4 Project Schedule .............................................................................................................. 5 Cost Estimates.................................................................................................................. 5 Authority to Implement the Selected Alternatives ......................................................... 6 Financials.................................................................................................................... 6 Design/Permits........................................................................................................... 6 User Costs ........................................................................................................................ 6 Overburdened Community – No Revisions ..................................................................... 7 4 Evaluation of Environmental Impacts – No Revisions ........................................................ 7 5 Mitigation – No Revisions ................................................................................................ 7 6 Public Participation .......................................................................................................... 7 Public Meeting ................................................................................................................. 7 Adoption of Project Plan .................................................................................................. 7 ii s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 60 of 207 Tables Table 5 Amended Summary of Selective Alternatives Figures Figure 2 Amended Selected Water System Improvements Map iii s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 61 of 207 Appendices - Amended Appendix I Cost Estimates Appendix J Present Worth Analysis Appendix T Annual Debt Service Cost Summary Appendix U Public Participation Documentation Appendix V Resolution of Project Plan Adoption iv s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 62 of 207 1 Project Background The City of Muskegon adopted its current DWSRF Project Plan on May 23, 2023. Over the last year, the City continued assessment of its water system. As a result, some additional projects were identified as high priority to the City. This Project Plan Amendment has been prepared on behalf of the City of Muskegon, Muskegon County, Michigan, for the purpose of obtaining a Drinking Water State Revolving Fund (DWSRF) loan from the State of Michigan for the construction of improvements to the City of Muskegon’s drinking water system. This report serves only as an amendment to the current approved City DWSRF Project Plan. The evaluation includes an analysis of cost, technical feasibility, and environmental impacts of the amended projects only. Study Area Characteristics – No Revisions Summary of Project Need The City has identified additional improvements required over the next 20 years. These consist of elevated storage tank coating, distribution system looping and lead service line replacements. Projected Needs for the Next 20 Years Over the last year additional research, inspections and system modeling have been completed. Based on these results three additional projects have been identified. Elevated Storage Tanks The City’s Marshall Tank wet interior coating was installed in 1991 and has surpassed its expected service life, furthermore damage to the coating has occurred along the water line due to ice. A full blast and recoating of the tank wet interior is recommended. A mixer to improve water quality and reduce ice buildup will also be added. Distribution System Following additional system assessment during the City’s ongoing Drinking Water Asset Management Study two water main dead ends were identified requiring looping. The proposed projects are identified below. s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 63 of 207 Wildwood Lane and Dowd Street Dead End The South Clayhill neighborhood has two significant dead end water mains in close proximity to each other. Wildwood Lane Court extends east from Barclay Street. This street has a 550 ft dead end 8-inch water main which extends from the Barclay 12- inch water main. Dowd Street from Barney Avenue to Pulaski Avenue has a 700 ft long 8-inch dead end water main extending south from Barney Avenue. These are both long dead ends which result in poor water circulation and stagnate water. This project proposes to connect the two dead ends together with a 360 ft long 8-inch water main. This will eliminate both dead ends and provide improved hydraulics within the South Clayhill neighborhood by connecting it to the 12-inch water main on Barclay Street. Yuba Street Dead End Yuba Street between Cross Avenue and Butler is a 400 ft dead end 6-inch water main that extends from Cross Avenue. This main does not have many users which results in little water movement and exchanges within the main. The proposed project would extend an 8-inch water main from the north end of Yuba Street east in Butler Street to the 24-inch transmission main in Erickson Street. The result is a looped water main which will improve circulation of the water system in this area. In addition this will provide better connectivity for the greater neighborhood to the City’s transmission network. 2 Analysis of Alternatives Identification of Potential Alternatives No-Action Elevated Storage Tank Failure to maintain an adequate coating on a steal elevated tank will introduce aggressive corrosion shortening the service life of this critical piece of infrastructure. Failure of the s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 64 of 207 tank would be catastrophic. Maintaining the interior coating is a cost-effective method to lengthen the service life of the tank. The no-action option is not a viable option. Water Main Looping If no action is completed, then no improvements to the water age and hydraulics in the system will occur. Elevated Storage Tank Recoating of the tank will consist of first removing the existing coating with an abrasive blast. Following removal an epoxy coating will be applied over the entire wet interior. Recoating will provide a long service life for the existing tank. A tank mixer will also be added to this tank to reduce issues due to stagnant water. Replacement of Water Main Wildwood Lane and Dowd Street Dead End This project will connect the two dead end water mains together with a 360 ft long 8-inch water main. Extension of this water main as described will meet all project objectives. Yuba Street Dead End This project will extend an 8-inch water main from the north end of Yuba Street east in Butler Street to the 24-inch transmission main in Erickson Street. Extension of this water main as described will meet all project objectives. Pipe Material Alternatives – No Revisions Analysis of Principal Alternatives The Monetary Evaluation Detailed cost estimates are included as well as a present worth analysis as described in the Project Plan. s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 65 of 207 The cost estimates include all costs associated with engineering, construction, and mitigation cost if necessary. In summary, the monetary evaluation results are as follows: Wildwood Lane Court and Dowd Street Dead End Replace water main and all lead services as described in Section 1.2.1.2. The estimated project cost is $163,000. Yuba Street Dead End Replace water main and all lead services as described in Section 1.2.1.2. The estimated project cost is $229,000. Marshall Tank Coating Recoat the wet interior of the Marshall Tank and add a mixer as described in Section 2.1.2. The estimated project cost is $488,000. The Environmental Evaluation – No Revisions 3 Selected Alternative Description of the Selected Alternative Figure 2 Amended shows the selected water system improvement location. A summary of the selected alternatives including brief descriptions and cost estimates is included in Table 5 Amended and each added project is described below. Project 18: Wildwood Lane Court and Dowd Street Dead End (FY2025 Extend 360 ft of 8-inch water main from the dead end on Wildwood Lane Court to the dead end on Dowd Street. The estimated project cost is $163,000. Project 19: Yuba Street Dead End (FY2025) s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 66 of 207 Extend 370 ft of 8-inch water main from the dead end on Yuba Street to the 24-inch transmission main on Erickson Street. The estimated project cost is $229,000. Project 20: Marshall Tank Coating (FY2025) Replace the wet interior coating of the Marshall Elevated Storage Tank and add a tank mixer. The estimated project cost is $488,000. Project Schedule The table below is a schedule for the proposed water system improvements that are intended to be included as part of the City’s FY2025 DWSRF Project. They would be funded under the fourth quarter of fiscal year 2025. FY 2025 DWSRF Project (4th Quarter 2025) Proposed Project Schedule Milestone Date Hold Public Hearing May 28, 2024 Submit Final Project Plan to EGLE June 2024 Receive Approval of Project Plan September 2024 Plans and Specifications Approved May 2025 Receive Construction Permit May 2025 Receive Construction Bids June 2025 DWSRF Loan Awarded August 2025 Begin Construction April 2026 Construction Completed November 2028 Cost Estimates Appendix I contains cost estimates for the proposed amended water system improvements. The project costs include construction costs and approximately 30% for construction contingencies, legal, administrative, and project engineering costs. s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 67 of 207 Authority to Implement the Selected Alternatives Implementation of the proposed project is based on the assumption that the project will be financed by a low-interest loan from the DWSRF program. The City of Muskegon has the necessary legal, institutional, financial, and managerial resources available to ensure the construction, operation and maintenance of the proposed facilities. Financials The City of Muskegon recently developed a financial plan as required by the EGLE as part of its Water Asset Management Program. As a result, the City has continued to implemented rate adjustments in anticipation of future capital improvements. However, the City of Muskegon may not construct all proposed projects without grants and/or loan principal forgiveness in order to have sufficient funds to pay for the proposed bond payments for the bonding period of twenty years. Design/Permits All FY2025 projects will be under design in late 2024 and will be submitted for all necessary permits prior to the required deadline. User Costs EGLE requires the applicant to perform a Present Worth analysis of the various options. The Present Worth analysis (Appendix J) uses discount factors that reduce the annual expenses compared to what the annual bond payment would be. Appendix T contains the annual debt service cost summary and provides the worst-case scenario where the proposed bond payment will not be reduced by any anticipated discounts related to salvage value, reduction in OM&R, energy savings, grants, and principal forgiveness. The City of Muskegon is planning on funding the FY2025 projects with an estimated $13,983,000 DWSRF loan at a 2.00% interest rate for a 20-year period. The expected annual debt service for the proposed projects based on the DWSRF loan criteria will be approximately $855,154 per year. This would represent an approximate increase in user rates of $3.43 per month for FY 2025 projects for the average residential user. This is based on 20,784 meter equivalents. For city customers only. The City will decide on final number of projects to complete and any rate s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 68 of 207 adjustments once the DWSRF funding levels for FY 2025 are set and opportunities for grants or principal forgiveness are determined. As of July 1, 2022, water rates for City of Muskegon residents are $2.06 per 100 cubic feet for both City residential and commercial customers. Additionally, a $5.00 lead service line replacement fee and debt service fee based on meter size is added to all water accounts. Based on available water billing data, the average residential customer uses 511 cubic feet per month. This water usage and meter size corresponds to a water bill of $21.61 per month for the typical residential customer. Overburdened Community – No Revisions 4 Evaluation of Environmental Impacts – No Revisions 5 Mitigation – No Revisions 6 Public Participation Public Meeting A notice of public meeting was posted on the City of Muskegon Facebook page on May 17, 2024, and published on the website on May 17, 2024, eleven full days prior to the public meeting scheduled for May 28, 2024. A copy of the notice is provided in Appendix L. A copy of the project planning document was available to the public at City Hall during the public comment period. A screenshot of the website posting is provided in Appendix L. Adoption of Project Plan s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 69 of 207 Tables Table 5 Amended: Summary of Selected Alternatives s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 70 of 207 CITY OF MUSKEGON FY24 DWSRF PROJECT PLAN AMENDMENT Table 5 - Summary of Selected Alternatives Total Project Water Service DWSRF Eligible Cost Project # Year Project Title Project Description Replacements Cost Estimate Estimate 6. FY25 Catherine Avenue - Irwin Replace existing 4-inch and 6-inch water main with approximately 3,300 feet of 8-inch main from Irwin Ave. to 71 $3,103,000 $4,711,000 Ave. to Wood St.* Wood St. Replace water services from the main to the meter in the buildings. 17. FY25 Water Service Replace 870 galvanized/lead water services per year at various locations throughout the City to be determined 870 $10,000,000 $10,000,000 Replacements after funding is obtained. 18. FY25 Wildwood Ln Ct and Replace existing 4-inch and 6-inch water main with approximately 3,300 feet of 8-inch main from Irwin Ave. to 0 $163,000 $163,000 Dowd St Dead End Wood St. Replace water services from the main to the meter in the buildings. 19. FY25 Yuba Street Dead End Replace existing 4-inch and 6-inch water main with approximately 3,300 feet of 8-inch main from Irwin Ave. to 0 $229,000 $229,000 Wood St. Replace water services from the main to the meter in the buildings. 20. FY25 Marshall Tank Coating Recoat the wet interior of the Marshall Tank 0 $488,000 $488,000 Total FY25 Cost: $13,983,000 $15,591,000 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 71 of 207 Figures Figure 2 Amended: Selected Water System Improvements Map s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 72 of 207 Bear Lake Project 19: Project 20: LY NC E AV Yuba Street CITY OF MUSKEGON M RD Marshall Tank Coating O ID L TT MEEKING ST OA ON R ST ND MUSKEGON COUNTY, MI CHANNE A K DIM FULT MARSHALL ST OAKH ILL DR ADAMS AV E DR RUD CIRCL DR LEONARD AVE DWSRF PROJECT PLAN TON SELECTED WATER SYSTEM LANGLEY ST E DR City of T DR MARQUETTE AVE LIGH NS IMPROVEMENTS AMENDMENT INE City of North H Muskegon SO BE SK T S AC YL ICK ST AVE AR WA JACKSON AVE DUC E Y H FIGURE 2 Muskegon ER BOU IUS ST TA ST RE NE MCLAREN ST OT MAY 2024 TAV ABBEY ST ALVA ST R TO RD MARY ST BA ET MULDER ST LS AGNE S ST OC YU ON T VIRID SUMNER AVE WN Muskegon Lake C IR RS I 2230379 ST E E AN WESLEY AVE AT R R C E POINT D Muskegon Lake LEGEND EDGEW D SHORELINE DR E Project 9: Ryerson Creek DWSRF Projects AV CO X Orchard Project 1: Holbrook Avenue RA WIL Avenue R Project 2: 6th Street TE MU RP E OA K AVE Project 3: 7th Street AV E SP HY AV S CE THOMP S ON RI RI OR ST DA NG M ORCHARD AVE Project 4: Glenside Phase II STEVENS ST PIN R ST MILLARD ST ST 1S EMERALD ST E 2N E AV AMITY AVE Project 4: Glenside Phase III T SCOTT ST FORK ST ST D LE ST Project 12: E RT ST E AV MY VE Project 4: Glenside Phase IV N ALLEN AVE LA AV Project 14: JAY ST O NA K N G TO Catherine OAK GROVE ST ES ER HO AV E AV E KE L WFP Improvements RE D W E ST AY ER M US WA APPLE AVE Avenue Project 4: Glenside Phase V R CL ST JEFFERSON ST SO EB Project 8: Wood to Getty Project 5: Wood Street CHESTNUT ST MAPLE ST WILLIAMS ST AM W PH E AV Iona Avenue B IA Project 6: Catherine Avenue 3R RO ON ST D ADA AVE FT E LA S IA 6T KENNETH ST AV ST ISABELLA AVE UF RK Project 7: Jefferson Street E H BE N BL AV EASTGATE ST ST TO ST IN RT VE A US ST EA CH SO Project 8: Iona Avenue O AR HOLT ST H RE 4T ST W E LA AV R H MCLAUGHLIN AVE E DE Project 9: Orchard Avenue TRY CLUB D NA City of ST AV WOOD ST EVA Lake Michigan IO OE E Project 6: NS VE AV TO RA R N LA NE NA Project 10: Madison Street Muskegon MO IL E RI HIL VE NS Catherine AV E J:\GIS_Client\Mskgn-GD\Mskgn-GD\2230379_FY24 DWSRF Project Plan\2230379_Figure 2_Water System Improvements.mxd - PN\EJD - 5/14/2024 4:52:36 PM R E B O LTW O ER AV TH L AV O ON CA MICH IGAN AVE M G E Project 11: Dale Avenue M AR S N MA RO Avenue UN ST TH CO E 7T ST AV A Project 12: Catherine Avenue UR H WB Irwin to Wood Project 15: OD ST DR WASHINGTON AVE TA EVA ST IRWIN AVE CA NS HENRY ST Nims Tank Coating TO NA Project 13: 9th Street BEIDLER ST VE GRAND AVE Project 3: NI M Project 14: WFP Improvements ST Project 2: S TERRACE ST FRANKLIN ST 7th Street ST U CLINTON ST KINGSLEY ST A 6th Street Project 15: Nims Tank Coating RN SOUTHERN AVE HA FLEMING AVE JIROCH ST Project 5: Project 18: Wildwood Lane & Dowd Street GETTY ST DAVIS ST Wood Project 19: Yuba Street 5TH ST IRELAND AVE FOREST AVE EMERSON AVE DIVISION ST Street MESSLER ST HUIZENGA ST Project 20: Marshall Tank Coating DR Project 7: RUDDIMAN ST MCGRAFT ST RE DALE AVE HO Jefferson S SEAWAY DR NOTE: THE LOCATIONS OF THE WATER SERVICE KE Street LA REPLACEMENT PROJECTS (16 & 17) WILL BE E LARCH AVE AV SMITH ST AURORA AVE SANFORD ST WITHIN THE CITY SERVICE AREA AND DETERMINED RY SUPERIOR ST Project 11: TURNER AVE E ME E ELWOOD ST LAKETON AVE AFTER FUNDING IS OBTAINED. AV PARK ST AV O PECK ST ER TG COMMERCE ST Dale Avenue M LA ON ALPHA AVE L PA TEMPLE ST NO M Project 10: N NEVADA ST WINDSOR AVE HOLBROOK AVE Madison Street A DDISON MADISON ST TOR ESTES ST BOURDON ST YOUNG AVE Project 1: RE N HOYT ST ST PARSLOW DR MA Project 13: Holbrook KEATING AV E MO T NN ST E EK AVE DCR 9th Street Avenue ON FAIR AVE ST OO WILSON AVE W LOW DR S AVE WIL T M ER DELANO AVE CG Project 4: 9TH ST MIN Project 4: City of RA JARMAN ST MANN AVE FT Glenside BARCLAY ST Glenside PA Muskegon Heights CONTINENTAL ST HACKLEY AVE RK Phase II Phase IV RAY ST VE STEIN ST GA R MAFFETT ST AUSTIN ST VALLEY ST DIN D KANITZ ST WAALKES ST DYSON ST HAR VINCENT DR GLEN AVE CROWLEY ST HUDSON ST DOWD ST KINSEY ST LEMUEL ST O DGETT ST MCILWRAITH ST GLADE ST ST PA R K D RIDG 8TH ST E BARNEY AVE MANZ ST WESTW OOD AV BAKER ST R Ru d LEAHY ST HADDEN ST G CUMBERLAND ST RE BL E d PULASKI AVE I ima EN CR BEARDSLEY AVE IVORY AVE nC ! W O HOVEY AVE O ZI re e O ER REYNOLDS ST RANDOLPH AVE D Project 18: RIORDAN ST HOWDEN ST k AV ST tle Muskegon PHILO AVE CHESTER DR Project 4: E W IN Li t Creek HOWELL AVE Wildwood Lane & MCC RACKEN ST Project 4: Glenside Township MONTAGUE AVE HUME AVE Dowd Street k la c WICKHAM DR Feet Glenside Phase V SHERMAN BLVD B 0 650 1,300 2,600 Phase III City of Roosevelt Park Page 73 of 207 Appendix I Cost Estimates s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 74 of 207 Project 6 Updated Estimate of Probable Cost Owner: City of Muskegon Project Title: Catherine Avenue - Irwin Ave. to Wood Ave. Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount I. Sanitary Sewer 1 Sanitary Sewer, 8-inch 2,600 ft. $130 $338,000 2 Sanitary Manhole 12 ea. $4,500 $54,000 3 Sanitary Lateral, 6-inch 64 ea. $4,500 $288,000 II. Water Main 4 Water Main, 8-inch 3,300 ft $140 $462,000 5 Water Main, 6-inch 150 ft $125 $18,750 6 Water Main, Valve and Box, 8-inch 17 ea $3,000 $51,000 7 Water Main, Valve and Box, 6-inch 10 ea $2,000 $20,000 8 Water Main, Cross, 8" x 8" x 8" x 8" 3 ea $2,500 $7,500 9 Water Main, Tee, 8" x 8" x 8" 2 ea $2,000 $4,000 10 Water Main, Tee, 8" x 8" x 6" 10 ea $2,000 $20,000 11 Water Main, Tapping Tee & Valve, 10" x 8" 1 ea $9,000 $9,000 12 Water Main, Reducer, 8" x 6" 6 ea $1,500 $9,000 13 Water Main, Hydrant 10 ea $5,000 $50,000 14 Water Main, Connect to Existing 11 ea $5,000 $55,000 15 Water Main, 1-inch Service 71 ea $8,000 $568,000 III. Road Reconstruction 16 Mobilization, Max 10% 1 ls $362,000 $362,000 17 Catch Basin Replacement 15 ea. $4,000 $60,000 page 1 of 2 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 75 of 207 Item No. Description Quantity Unit Unit Price Total Amount 18 Storm Manhole Replacement, 48-inch Dia 10 ea. $4,500 $45,000 19 Storm Manhole Replacement, 60-inch Dia 2 ea. $9,000 $18,000 20 Storm Sewer Replacement, 12-inch to 15-inch 2,400 ft. $90 $216,000 21 Storm Sewer Replacement, 36-inch 60 ft. $300 $18,000 22 Road Replacement 3,000 ft. $310 $930,000 23 Traffic Control 1 ls $20,000 $20,000 Construction Estimate: $3,623,250 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $1,087,750 Total Estimate: $4,711,000 Inelgible (1/3 Road Reconstruction): $1,608,000 DWSRF Eligible (2/3 Road Reconstruction): $3,103,000 page 2 of 2 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 76 of 207 Project 17 - Updated Estimate of Probable Cost Owner: City of Muskegon Project Title: FY25 Water Service Replacements Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Replace Lead/Galvanized Services 870 ea $10,000 $8,700,000 Construction Estimate: $8,700,000 Construction Contingencies, Legal, Administrative, Engineering Costs (15%): $1,300,000 Total Estimate (DWSRF Eligible): $10,000,000 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 77 of 207 Project 18 Estimate of Probable Cost Owner: City of Muskegon Project Title: Wildwood Ln Ct and Dowd St Dead End Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Mobilization, Max 10% 1 ls $12,000 $12,000 2 Traffic Control 1 ls $5,000 $5,000 3 Water Main, 8-inch 360 ft $150 $54,000 4 Water Main, 45 Bend, 8-inch 2 ea $2,000 $4,000 5 Water Main, Valve and Box, 8-inch 1 ea $15,000 $15,000 6 Water Main, Sleeve, 8-inch 1 ea $2,000 $2,000 7 Machine Grading, Modified 4 sta $1,000 $4,000 8 Aggregate Surface Course, 6-inch 200 syd $16 $3,200 9 Bin-Block Barrier 4 ea $500 $2,000 10 Clearing and Grubbing 1 lsum $20,000 $20,000 11 Turf Restoration 4.0 sta $1,000 $4,000 Construction Estimate: $125,200 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $37,800 Total Estimate (DWSRF Eligible): $163,000 page 1 of 1 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 78 of 207 Project 19 Estimate of Probable Cost Owner: City of Muskegon Project Title: Yuba Street Dead End Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Mobilization, Max 10% 1 ls $17,000 $17,000 2 Traffic Control 1 ls $5,000 $5,000 3 Water Main, 6- inch 20 ea $110 $2,200 4 Water Main, 8-inch 370 ft $150 $55,500 5 Water Main, Valve and Box, 6-inch 1 ea $2,000 $2,000 6 Water Main, Valve and Box, 8-inch 1 ea $15,000 $15,000 7 Water Main, Tapping Sleeve & Valve, 24" x 24" x 8" 1 ea $10,000 $10,000 8 Water Main, Sleeve, 6-inch 1 ea $2,000 $2,000 9 Water Main, Hydrant 1 ea $5,000 $5,000 10 Machine Grading, Modified 4 sta $1,000 $4,000 11 Aggregate Surface Course, 6-inch 1000 syd $16 $16,000 12 HMA, 330 lb/syd 170 ton $120 $20,400 13 Clearing and Grubbing 1 lsum $20,000 $20,000 14 Turf Restoration 4.0 sta $500 $2,000 Construction Estimate: $176,100 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $52,900 Total Estimate (DWSRF Eligible): $229,000 page 1 of 1 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 79 of 207 Project 20 Estimate of Probable Cost Owner: City of Muskegon Project Title: Marshall Tank Coating Date: Project #: May 10, 2024 2230379 Item No. Description Quantity Unit Unit Price Total Amount 1 Paint Wet Interior of Marshall Tank 1 ls $300,000 $300,000 2 Tank mixer 1 ls $75,000 $75,000 Construction Estimate: $375,000 Construction Contingencies, Legal, Administrative, Engineering Costs (30%): $113,000 Total Estimate (DWSRF Eligible): $488,000 page 1 of 1 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 80 of 207 Appendix J Present Worth Analysis s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 81 of 207 CITY OF MUSKEGON DWRF PROJECT PLAN PRESENT WORTH ANALYSIS - AMENDMENT Project 6 Project 17 Project 18 Project 19 Project 20 Catherine Avenue - Irwin FY25 Water Service Wildwood Ln Ct and Marshall Tank Yuba Street Dead End Project Description Ave. to Wood Ave. Replacements Dowd St Dead End Coating FY2025 FY2025 FY2025 FY2025 FY2025 Capital Costs (including ELAC) Structures (50 yr) $2,626,000 $8,461,000 $138,000 $194,000 $0 Process Equipment (10 yr) $0 $0 $0 $0 $413,000 Planning $48,000 $154,000 $3,000 $4,000 $8,000 Engineering, Legal, and Administrative $429,000 $1,385,000 $22,000 $31,000 $67,000 Project Cost (DWSRF Eligible) $3,103,000 $10,000,000 $163,000 $229,000 $488,000 (A) 20-yr Present Worth of Capital Costs 1 $1,893,671 $6,102,709 $99,474 $139,752 $297,812 Operation, Maintenance & Replacement (OM&R) Energy Cost Savings - Not included/negligible $0 $0 $0 $0 $0 2 Annual OM&R - Not included/negligible $0 $0 $0 $0 $0 Process Equipment Replacement (10 yr) $0 $0 $0 $0 $596,803 (B) 20-yr Present worth of OM&R 1 $0 $0 $0 $0 $0 3 (C) 20-yr Present worth of Energy Cost Savings $0 $0 $0 $0 $0 Salvage Value of Capital Salvage value at 20 years $1,575,600 $5,076,600 $82,800 $116,400 $0 (D) 20-yr Present worth of Salvage 1 $961,543 $3,098,101 $50,530 $71,036 $0 Total Present Worth (A + B + C - D) $932,128 $3,004,608 $48,944 $68,717 $297,812 Equivalent Annual Cost4 $59,793 $192,737 $3,140 $4,408 $19,104 Total Existing Residential Equivalent Units (REUs) City of Muskegon REUs: 20,784 Unit of Government Responsible for Payment for: Project 6 Project 17 Project 18 Project 19 Project 20 City of Muskegon 100.00% 100.00% 100.00% 100.00% 100.00% City of Muskegon Annual Cost per REU $2.88 $9.27 $0.15 $0.21 $0.92 City of Muskegon Monthly Cost per REU $0.24 $0.77 $0.01 $0.02 $0.08 Total Proposed Project Cost FY2025: $13,983,000 Total Present Worth FY2025: $4,352,208 Total Equivalent Annual Cost FY2025: $279,182 Annual 4 Monthly 4 Total City of Muskegon Cost per REU (FY2025 Projects): $13.43 $1.12 Notes: 1 U.S. EPA Discount rate for Year 2024 is 2 Negative value indicates reduction in Annual O&M 3 Assumed energy cost rate of escalation is 4 Based on Total Present Worth Page 1 of 1 May 2024 S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 82 of 207 Appendix T Annual Debt Service Cost Summary s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 83 of 207 CITY OF MUSKEGON ANNUAL DEBT SERVICE COST SUMMARY - FY 2025 PROJECTS Project Annual Debt Total Annual Debt No. Project Cost Estimate Service* Service Cost* 6. Catherine Avenue - Irwin Ave. to Wood Ave. $3,103,000 $189,769 $189,769 17. FY25 Water Service Replacements $10,000,000 $611,567 $611,567 18. Wildwood Ln Ct and Dowd St Dead End $163,000 $9,969 $9,969 19. Yuba Street Dead End $229,000 $14,005 $14,005 20. Marshall Tank Coating $488,000 $29,844 $29,844 $13,983,000 $855,154 $855,154 Existing REU's 20,784 Annual REU Cost $41.14 Monthly REU Cost $3.43 * Annual debt service based on 20 year loan with a 2.00% interest rate. S:\2023\2230379 City of Muskegon\REP\Amendment 2024-04\Est 2024-05 DWSRF FY25 Projects - Amendments Page 84 of 207 Appendix U Public Participation Documentation s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 85 of 207 Summary of Public Meeting and Presentation s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 86 of 207 City Website Posting s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 87 of 207 List of Attendees s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 88 of 207 Appendix V Signed Resolution of Project Plan Adoption s:\2023\2230379 city of muskegon\rep\amendment 2024-04\rep 2024-10 dwrf project plan amendment - muskegon.docx Page 89 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Sale of 509 Adams. Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lot at 509 Adams to A&PL Homes. Detailed Summary & Background: A&PL Homes LLC would like to purchase the City-owned buildable lot at 509 Adams for $3,000 (75% of the True Cash Value of $4,000) plus half of the closing costs and the fee to register the deed. The lot will be split into two parcels and they will be constructing a single-family home on each lot. Goal/Focus Area/Action Item Addressed: Key Focus Areas: 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. Diverse housing types. Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business - Diverse housing types Amount Requested: Budgeted Item: n/a Yes No N/A x Fund(s) or Account(s): Budget Amendment Needed: n/a Yes No N/A x Recommended Motion: To authorize the Code Coordinator to complete the sale of 509 Adams, as described in the attached purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Page 90 of 207 Other Division Heads x Communication Legal Review Page 91 of 207 Page 92 of 207 Page 93 of 207 Page 94 of 207 Page 95 of 207 Page 96 of 207 Page 97 of 207 Page 98 of 207 Page 99 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: City-Owned Billboard Lease Renewal Submitted by: Jamie Pesch, Planner Department: Planning Brief Summary: Renewal of 15-year leases with The Lamar Companies for two billboards owned by the City of Muskegon located along Business Route 31. Detailed Summary & Background: The existing leases for the City-owned billboards located on Business Route 31 at Getty Street and along Business Route 31 near the end of Beidler Street have recently expired. Renewed 15-year leases with The Lamar Companies for these two locations have been updated to reflect revised payment schedules that incorporate pricing for potential future upgrades to digital displays. The proposed payment schedules are as follows: Getty Static Base Payment Schedule: Years 1-5 = $4200.00 per year Years 6-10 = $6800.00 per year Years 11-15 = $7800.00 per year Getty Digital Payment Schedule: Years 1-5 = $7000.00 per year Years 6-10 = $8500.00 per year Years 11-15 = $10000.00 per year Beidler Static Base Payment Schedule: Years 1-5 = $4000.00 per year Years 6-10 = $6500.00 per year Years 11-15 = $7500.00 per year Beidler Digital Payment Schedule: Years 1-5 = $7000.00 per year Years 6-10 = $8500.00 per year Years 11-15 = $10000.00 per year Goal/Focus Area/Action Item Addressed: Key Focus Areas: Increase revenue Goal/Action Item: 2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Increase revenue Amount Requested: Budgeted Item: Page 100 of 207 N/A Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: N/A Yes No N/A X Recommended Motion: To approve renewal of the updated 15-year lease agreements with The Lamar Companies for two City-owned billboard locations. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads X Communication Legal Review Page 101 of 207 THE COMPANIES Lamar Co #151 This Instrument Prepared by: James R. McIlwain Renewal 5321 Corporate Boulevard Lease #151-46801 Baton Rouge, Louisiana 70808 ________________________ James R. McIlwain SIGN LOCATION LEASE THIS LEASE AGREEMENT (“Lease”), made this ___day of _____________, 202_, by and between: The City of Muskegon (hereinafter referred to as “Lessor”) and THE LAMAR COMPANIES (hereinafter referred to as “Lessee”), provides WITNESSETH “LESSOR hereby leases to LESSEE, its successors or assigns, as much of the hereinafter described lease premises as may be necessary for the construction, repair and relocation of an outdoor advertising structure (“sign”), including necessary structures, advertising devices, utility service, power poles, communications devices and connections, with the right of access to and egress from the sign by LESSEE’S employees, contractors, agents and vehicles and the right to survey, post, illuminate and maintain advertisements on the sign, and to modify the sign to have as many advertising faces, including changeable copy faces or electronic faces, as are allowed by local and state law, and to maintain telecommunications devices or other activities necessary or useful in LESSEE'S use of the sign. Any discrepancies or errors in the location and orientation of the sign are deemed waived by LESSOR upon LESSOR’S acceptance of the first rental payment due after the construction of the sign. The premises are a portion of the property located in the City of Muskegon, State of Michigan, more particularly described as: BR-31 @ GETTY Pin 61-24-205-001-0003-96 1. This Lease shall be for a term of Fifteen (15) years commencing on 02/15/2024. LESSEE may renew this Lease, for an additional term, of Year to Year, on the same terms and conditions, except annual rent will increase by two percent (2%) over the rent paid during the previous year, and every year thereafter. Said renewal term shall automatically go into effect unless Either party shall give to the other party written notice of non-renewal at least sixty (60) days prior to the expiration of the original term or additional term. 2. LESSEE shall pay to LESSOR an annual rental of (See payment schedule on page 2) Dollars, payable annually, in advance with the first installment due on the first day of the month following commencement. Rent shall be considered tendered upon due mailing or attempted hand delivery during reasonable business hours at the address designated by LESSOR, whether or not actually received by LESSOR. Should LESSEE fail to pay rent or perform any other obligation under this lease within thirty (30) days after such performance is due, LESSEE will be in default under the lease. In the event of such default, LESSOR must give LESSEE written notice by certified mail and allow LESSEE thirty (30) days thereafter to cure any default. In addition to annual rent, upon the installation of a digital face during the term of the Lease, LESSOR shall have the right to display an advertisement of its choosing on any rotating slide show of the digital sign on a monthly basis, which LESSOR display shall continuously run on the digital sign slide show until LESSOR chooses a new display or advertisement. 3. LESSOR agrees not to erect or allow any other off-premise advertising structure(s), other than LESSEE’S, on property owned or controlled by LESSOR within two thousand (2000) feet of LESSEE’S sign. LESSOR further agrees not to erect or allow any other obstruction of highway view or any vegetation that may obstruct the highway view of LESSEE’S sign. LESSEE is hereby authorized to remove any such other advertising structure, obstruction or vegetation at LESSEE’S option. LESSEE’S access over the leased premises shall be strictly limited only to those areas of the leased premises necessary to access the existing signed structure at the leased premises. Rev 7/6/2012 Page 102 of 207 4. LESSEE may terminate this lease upon giving thirty (30) days written notice in the event that the sign becomes entirely or partially obstructed in any way; provided, however, LESSOR shall be given thirty (30) days to cure such obstruction before LESSEE may terminate the Lease as provided in this paragraph. In the event of termination of this Lease prior to expiration, LESSOR will return to LESSEE any unearned rentals on a pro rata basis. 5. All structures, equipment and materials placed upon the premises by the LESSEE or its predecessor shall remain the property of LESSEE and may be removed by LESSEE at any time prior to or within a reasonable time after expiration of the term hereof or any renewal. At the termination of this lease, LESSEE agrees to restore the surface of the premises to its original condition. The LESSEE shall have the right to make any necessary applications with, and obtain permits from, governmental bodies for the construction and maintenance of LESSEE’S sign, at the sole discretion of LESSEE. All such permits and any nonconforming rights pertaining to the premises shall be the property of LESSEE. 6. LESSOR represents that it is the owner or lessee under written lease of the premises and has the right to make this agreement and to grant LESSEE free access to the premises to perform all acts necessary to exercise its rights pursuant to this lease. LESSOR is not aware of any recorded or unrecorded rights, servitudes, easements, subdivision or building restrictions, or agreements affecting the premises that prohibit the erection, posting, painting, illumination or maintenance of the sign. LESSOR acknowledges that the terms and conditions of this agreement are confidential and proprietary and shall not be disclosed to any third-party without the written consent of LESSEE. 7. In the event of any change of ownership of the property herein leased, LESSOR agrees to notify LESSEE promptly of the name, address, and phone number of the new owner, and LESSOR further agrees to give the new owner formal written notice of the existence of this lease and to deliver a copy thereof to such new owner at or before closing. This lease is binding upon the personal representatives, heirs, executors, successors, and assigns of both LESSEE and LESSOR. LESSEE shall not assign or transfer this Lease without prior written consent of LESSOR, which consent shall be in LESSOR’S sole discretion. Any assignment, subletting, or other transfer, even with LESSOR’S consent, shall not relieve LESSEE from primary liability for the payment of rent or the primary obligation to be bound by the terms, conditions, and covenants of this Lease. 8. In the event of condemnation of the subject premises or any part thereof by proper authorities, or relocation of the highway, the LESSOR grants to the LESSEE the right to relocate its sign on LESSOR’S remaining property adjoining the condemned property or the relocated highway. Any condemnation award for LESSEE’S property shall accrue to LESSEE. 9. LESSEE agrees to indemnify LESSOR from all claims of injury and damages to LESSOR or third parties caused by the installation, operation, maintenance, or dismantling of LESSEE’S sign during the term of this lease. LESSEE further agrees to repair any damage to the premises or property at the premises resulting from the installation, operation, maintenance, or dismantling of the sign, less ordinary wear and tear. 10. If required by LESSEE, LESSOR will execute and acknowledge a memorandum of lease suitable for recordation. LESSOR further authorizes LESSEE to perform all acts that are incidental to or necessary for the execution and recordation of such memorandum or memoranda. 11. This Lease is NOT BINDING UNTIL ACCEPTED by the General Manager of a Lamar Advertising Company. It is understood that this written Lease between the parties constitutes the entire lease and understanding between the parties and supersedes all prior representations, understanding, and agreements relating to the lease premises described above. This Lease may not be modified except in writing, signed by LESSOR and the General Manager of LESSEE. 12. All rents to be paid pursuant to this Lease and all notices are to be forwarded to the undersigned LESSOR at the address noted below LESSOR’S signature. If either party is in default under the terms of this Lease, the non-defaulting party shall deliver written notice by certified or registered return receipt mail to the defaulting party and said party may cure such default within 30 days of receipt of such notice. Static Base Payment Schedule: Years 1-5 = $4200.00 per year. Years 6-10 =$6800.00 per year. Years 11-15= $7800.00 per year. *In the event that LESSEE elects to install a digital face on this sign structure, LESSEE shall pay to LESSOR an increased rental. The digital payment shall be prorated from the date that the digital face is installed. Digital Payment Schedule: Years 1-5 = $7,000.00 per year. Years 6-10 = $8,500.00 per year. Years 11-15 = $10,000.00 per year. Rev 7/6/2012 Page 103 of 207 THE LAMAR COMPANIES, LESSEE: LESSOR: BY: ________________________________________ BY: ___________________________________ __ Susan Ackley_______________ ___________________________________ VICE-PRESIDENT/GENERAL MANAGER LESSOR’S PRINTED NAME DATE: / / DATE: / / ________________________________ LESSOR’S TELEPHONE NUMBER ________________________________ LESSOR’S SOCIAL SECURITY NUMBER / EMPLOYER IDENTIFICATION NUMBER ______________________________________ W-9 Name (as shown on your Income Tax Return) ______________________________________ Tax ID Parcel # (for land on which sign is located) Address of LESSEE: Address of LESSOR: 4898 S. Quarterline Road 933 Terrace Street Muskegon, MI 49444 Muskegon, MI 49440 Witnesses (LESSEE) Witnesses (LESSOR) ________________________________ __________________________________ Rev 7/6/2012 Page 104 of 207 THE COMPANIES Lamar Co #151 This Instrument Prepared by: James R. McIlwain Renewal 5321 Corporate Boulevard Lease #151-40001 Baton Rouge, Louisiana 70808 ________________________ James R. McIlwain SIGN LOCATION LEASE THIS LEASE AGREEMENT (“Lease”), made this ___day of _____________, 202_, by and between: The City of Muskegon (hereinafter referred to as “Lessor”) and THE LAMAR COMPANIES (hereinafter referred to as “Lessee”), provides WITNESSETH “LESSOR hereby leases to LESSEE, its successors or assigns, as much of the hereinafter described lease premises as may be necessary for the construction, repair and relocation of an outdoor advertising structure (“sign”), including necessary structures, advertising devices, utility service, power poles, communications devices and connections, with the right of access to and egress from the sign by LESSEE’S employees, contractors, agents and vehicles and the right to survey, post, illuminate and maintain advertisements on the sign, and to modify the sign to have as many advertising faces, including changeable copy faces or electronic faces, as are allowed by local and state law, and to maintain telecommunications devices or other activities necessary or useful in LESSEE'S use of the sign. Any discrepancies or errors in the location and orientation of the sign are deemed waived by LESSOR upon LESSOR’S acceptance of the first rental payment due after the construction of the sign. The premises are a portion of the property located in the City of Muskegon, State of Michigan, more particularly described as: W/S SEAWAY .1 MILE N/O SOUTHERN, PIN 61-24-205-341-0001-00 1. This Lease shall be for a term of Fifteen (15) years commencing on 04/15/2024. LESSEE may renew this Lease, for an additional term, of Year to Year, on the same terms and conditions, except annual rent will increase by two percent (2%) over the rent paid during the previous year, and every year thereafter. Said renewal term shall automatically go into effect unless Either party shall give to the other party written notice of non-renewal at least sixty (60) days prior to the expiration of the original term or additional term. 2. LESSEE shall pay to LESSOR an annual rental of (See payment schedule on page 2 ) Dollars, payable annually, in advance with the first installment due on the first day of the month following commencement. Rent shall be considered tendered upon due mailing or attempted hand delivery during reasonable business hours at the address designated by LESSOR, whether or not actually received by LESSOR. Should LESSEE fail to pay rent or perform any other obligation under this lease within thirty (30) days after such performance is due, LESSEE will be in default under the lease. In the event of such default, LESSOR must give LESSEE written notice by certified mail and allow LESSEE thirty (30) days thereafter to cure any default. In addition to annual rent, upon the installation of a digital face during the term of the Lease, LESSOR shall have the right to display an advertisement of its choosing on any rotating slide show of the digital sign on a monthly basis, which LESSOR display shall continuously run on the digital sign slide show until LESSOR chooses a new display or advertisement. 3. LESSOR agrees not to erect or allow any other off-premise advertising structure(s), other than LESSEE’S, on property owned or controlled by LESSOR within two thousand (2000) feet of LESSEE’S sign. LESSOR further agrees not to erect or allow any other obstruction of highway view or any vegetation that may obstruct the highway view of LESSEE’S sign. LESSEE is hereby authorized to remove any such other advertising structure, obstruction or vegetation at LESSEE’S option. LESSEE’S access over the leased premises shall be strictly limited only to those areas of the leased premises necessary to access the existing signed structure at the leased premises. Rev 7/6/2012 Page 105 of 207 4. LESSEE may terminate this lease upon giving thirty (30) days written notice in the event that the sign becomes entirely or partially obstructed in any way; provided, however, LESSOR shall be given thirty (30) days to cure such obstruction before LESSEE may terminate the Lease as provided in this paragraph. In the event of termination of this Lease prior to expiration, LESSOR will return to LESSEE any unearned rentals on a pro rata basis. 5. All structures, equipment and materials placed upon the premises by the LESSEE or its predecessor shall remain the property of LESSEE and may be removed by LESSEE at any time prior to or within a reasonable time after expiration of the term hereof or any renewal. At the termination of this lease, LESSEE agrees to restore the surface of the premises to its original condition. The LESSEE shall have the right to make any necessary applications with, and obtain permits from, governmental bodies for the construction and maintenance of LESSEE’S sign, at the sole discretion of LESSEE. All such permits and any nonconforming rights pertaining to the premises shall be the property of LESSEE. 6. LESSOR represents that it is the owner or lessee under written lease of the premises and has the right to make this agreement and to grant LESSEE free access to the premises to perform all acts necessary to exercise its rights pursuant to this lease. LESSOR is not aware of any recorded or unrecorded rights, servitudes, easements, subdivision or building restrictions, or agreements affecting the premises that prohibit the erection, posting, painting, illumination or maintenance of the sign. LESSOR acknowledges that the terms and conditions of this agreement are confidential and proprietary and shall not be disclosed to any third-party without the written consent of LESSEE. 7. In the event of any change of ownership of the property herein leased, LESSOR agrees to notify LESSEE promptly of the name, address, and phone number of the new owner, and LESSOR further agrees to give the new owner formal written notice of the existence of this lease and to deliver a copy thereof to such new owner at or before closing. LESSEE shall not assign or transfer this Lease without prior written consent of LESSOR, which consent shall be in LESSOR’S sole discretion. Any assignment, subletting, or other transfer, even with LESSOR’S consent, shall not relieve LESSEE from primary liability for the payment of rent or the primary obligation to be bound by the terms, conditions, and covenants of this Lease. This lease is binding upon the personal representatives, heirs, executors, successors, and assigns of both LESSEE and LESSOR. 8. In the event of condemnation of the subject premises or any part thereof by proper authorities, or relocation of the highway, the LESSOR grants to the LESSEE the right to relocate its sign on LESSOR’S remaining property adjoining the condemned property or the relocated highway. Any condemnation award for LESSEE’S property shall accrue to LESSEE. 9. LESSEE agrees to indemnify LESSOR from all claims of injury and damages to LESSOR or third parties caused by the installation, operation, maintenance, or dismantling of LESSEE’S sign during the term of this lease. LESSEE further agrees to promptly repair any damage to the premises or property at the premises resulting from the installation, operation, maintenance, or dismantling of the sign, less ordinary wear and tear. 10. If required by LESSEE, LESSOR will execute and acknowledge a memorandum of lease suitable for recordation. LESSOR further authorizes LESSEE to perform all acts that are incidental to or necessary for the execution and recordation of such memorandum or memoranda. 11. This Lease is NOT BINDING UNTIL ACCEPTED by the General Manager of a Lamar Advertising Company. It is understood that this written Lease between the parties constitutes the entire lease and understanding between the parties and supersedes all prior representations, understanding, and agreements relating to the lease premises described above. This Lease may not be modified except in writing, signed by LESSOR and the General Manager of LESSEE. 12. All rents to be paid pursuant to this Lease and all notices are to be forwarded to the undersigned LESSOR at the address noted below LESSOR’S signature. If either party is in default under the terms of this Lease, the non-defaulting party shall deliver written notice by certified or registered return receipt mail to the defaulting party and said party may cure such default within 30 days of receipt of such notice. Static Base Payment Schedule: Years 1-5 = $4000.00 per year. Years 6-10 =$6500.00 per year. Years 11-15= $7500.00 per year. *In the event that LESSEE elects to install a digital face on this sign structure, LESSEE shall pay to LESSOR an increased rental. The digital payment shall be prorated from the date that the digital face is installed. Digital Payment Schedule: Years 1-5 = $7,000.00 per year. Years 6-10 = $8,500.00 per year. Years 11-15 = $10,000.00 per year. Rev 7/6/2012 Page 106 of 207 THE LAMAR COMPANIES, LESSEE: LESSOR: BY: ________________________________________ BY: ___________________________________ __ Susan Ackley_______________ ___________________________________ VICE-PRESIDENT/GENERAL MANAGER LESSOR’S PRINTED NAME DATE: / / DATE: / / ________________________________ LESSOR’S TELEPHONE NUMBER ________________________________ LESSOR’S SOCIAL SECURITY NUMBER / EMPLOYER IDENTIFICATION NUMBER ______________________________________ W-9 Name (as shown on your Income Tax Return) ______________________________________ Tax ID Parcel # (for land on which sign is located) Address of LESSEE: Address of LESSOR: 4898 S. Quarterline Road 933 Terrace Street Muskegon, MI 49444 Muskegon, MI 49440 Witnesses (LESSEE) Witnesses (LESSOR) ________________________________ __________________________________ Rev 7/6/2012 Page 107 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Sale of 186 Myrtle Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lot at 186 Myrtle to Across the Board, LLC. Detailed Summary & Background: Across the Board LLC would like to purchase the City-owned buildable lot at 186 Myrtle for $3,750 (75% of the True Cash Value of $5,000) plus half of the closing costs and the fee to register the deed. The parcel will be split into five lots after the sale. They will be constructing a single-family home on each of the properties. Goal/Focus Area/Action Item Addressed: Key Focus Areas: 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. Diverse housing types. Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: n/a Yes No N/A x Fund(s) or Account(s): Budget Amendment Needed: n/a Yes No N/A x Recommended Motion: To authorize the Code Coordinator to complete the sale of 186 Myrtle, as described in the attached purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Page 108 of 207 Other Division Heads x Communication Legal Review Page 109 of 207 Page 110 of 207 Page 111 of 207 Page 112 of 207 Page 113 of 207 Page 114 of 207 Page 115 of 207 Page 116 of 207 Page 117 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Sale of 553,558,579,601,608,621 Jackson, 505 Alva and 532 Leonard. Submitted by: Samantha Pulos, Code Department: Planning Coordinator Brief Summary: Staff is seeking authorization to sell the City-owned vacant lots at 553, 558, 579, 601, 608, 621 Jackson, 505 Alva and 532 Leonard to Green Rabbit Home Builders. Detailed Summary & Background: Green Rabbit Home Builders would like to purchase the City-owned buildable lots at 553,558,579,601,608,621 Jackson, 532 Leonard and 505 Alva for $25,125 (75% of the True Cash Value of $37,500) plus half of the closing costs and the fee to register the deed. They will be constructing single-family homes on the property. Goal/Focus Area/Action Item Addressed: Key Focus Areas: 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. Diverse housing types. Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: n/a Yes No N/A x Fund(s) or Account(s): Budget Amendment Needed: n/a Yes No N/A x Recommended Motion: To authorize the Code Coordinator to complete the sale of 553, 558, 579, 601, 608, & 621 Jackson, 532 Leonard and 505 Alva, as described in the attached purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. Approvals: Guest(s) Invited / Presenting: Immediate Division x No Page 118 of 207 Head Information Technology Other Division Heads x Communication Legal Review Page 119 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement (“Agreement”) is made May 28th, 2024 (“Effective Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440 (“City”), and Green Rabbit Home Builders, a Michigan limited liability company, of 1801 44th St SE, Grand Rapids, MI, 49058 (“Developer”), with reference to the following facts: Background A. Developer proposes to purchase and develop eight (8) vacant properties owned by City, which are all located in the City of Muskegon, Muskegon County, Michigan, and each commonly known and legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively “Project Properties”). B. City and Developer desire to establish the terms, covenants, and conditions upon which City will sell and Developer will purchase and develop the Project Properties. Developer intends to develop on each of the Project Properties a single-family house (the “Project”). Therefore, for good and valuable consideration, the parties agree as follows: 1. Sale and Purchase of Project Properties. City agrees to sell to Developer, and Developer agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the Project Properties, subject to reservations, restrictions, and easements of record. 2. Purchase Price. The total purchase price for the Project Property shall be $25,125.00, which shall be paid in cash or other immediately available funds at Closing (defined below) less the $1000 deposit that the Developer has paid to the City of Muskegon. Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be reimbursed all or a portion of the purchase price for each Parcel upon the completion of certain design standards as further described herein. 3. Construction and Development Requirements. a. Construction Dates. The parties acknowledge and agree that Developer shall have a period of twenty-four (24) months from the date of Closing to complete the Project (“Construction Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by the parties in writing. b. Construction Details; Purchase Price Reimbursement. Developer’s construction and development of the Project Properties shall be in substantial conformance with its plans and specifications provided to City by Developer or as otherwise agreed upon in writing between City and Developer. As referenced above, Developer shall be eligible for reimbursement of all or a portion of the purchase price for each of the Project Properties upon Developer’s satisfaction of the following design standards for each single-family home it constructs on the Project Properties: Page 120 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x Design Standard Purchase Price Reimbursement for Parcel Open front porch of at least 60 sq. ft. 20% Picture or bay window 20% Alley-loaded parcel 20% Shutter or other acceptable window 20% treatments Underground Sprinkling 20% (By way of example only: If Developer completes three of the design standards listed above for the construction at the Parcel located at 1172 Marquette Ave, Developer would be reimbursed $6,000.00, which is 60% of the $8,000.00 purchase price for this Parcel. If Developer completes all five design standards, Developer would be reimbursed the entire purchase price for this Parcel.) 4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for Developer’s obligation to commence and complete construction of a single-family house on each of the Project Properties, the quit claim deed conveying the Project Properties to Developer shall contain a right of reversion in all of the Project Properties (“City’s Reversionary Right”), which may be exercised by City, in its sole and absolute discretion, if any of the following conditions occur: a. Developer does not commence construction within sixty (60) days after the date of Closing, in which case title to all of the Project Properties shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(a), commencing construction means furnishing labor and materials to at least one Parcel of the Project Properties and beginning installation of the approved single-family home(s). b. Developer does not complete construction of all Project Properties prior to expiration of the Construction Period, in which case title to any of the Project Properties that are not complete by the end of the Construction Period shall automatically revert to City upon the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b), completing construction means the issuance of an occupancy permit by City for all of the Project Properties. Provided, however, the parties agree to reasonably negotiate an extension of the Construction Period up to a period of six (6) months for any of the Project Properties that have a completed foundation before the expiration of the initial Construction Period. If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire title to any or all of the Project Properties, as the case may be. To exercise City’s Reversionary Right described herein, City must provide written notice to Developer (or its permitted successors, assigns, or transferees) within thirty (30) days of Developer’s failure under this Agreement, but in any event prior to Developer satisfying the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may be, and record such notice with the Muskegon County Register of Deeds. Upon request of City, Developer shall take all reasonable steps to ensure City acquires marketable title to any or all of the Project Properties, as the case may be, through its exercise of its rights under this Paragraph within thirty (30) days of City’s demand, including without limitation, the execution of appropriate deeds and other documents. In addition, if any or all of the Project Properties revert to City, City may retain the purchase price for such Project Properties free and clear of any claim of Developer or its assigns. In the event of reversion of title of any or all of the Project Properties, improvements made on such Project Properties shall become the property of City. In no event shall the Project Properties be in a worse condition than upon the date of Closing. These covenants and conditions shall run with the land and be recorded in the quit claim deed from City to Developer. Page 121 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x 5. Waiver of Water/Sewer Connection Fee. Upon the condition that all Project Properties are completed no later than the Construction Completion Date, City agrees to waive the water/sewer connection fee for all Project Properties. 6. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title Agency (the “Title Company”) for the Project Properties in the amount of the total purchase price for the Project Properties and bearing a date later than the Effective Date, along with copies of all of the underlying documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue a marked-up commitment or pro forma owner’s policy with respect to the Project Properties at the Closing naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title insurance with respect to the Project Properties (the “Title Policy”). City shall be responsible for the cost of the Title Policy; provided, however, Developer shall be solely responsible for the cost of any endorsements to the Title Policy that Developer desires. 7. Title Objections. Developer shall have until the end of the Inspection Period (as defined below) within which to raise objections to the status of City’s title to the Project Properties. If objection to the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections. If Developer does not notify City in writing as to any title or survey objections, then Developer will be deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or unable to remedy the title or obtain title insurance over such defects within the time period specified, then notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection, in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or not objected to by Developer shall be deemed a “Permitted Exception.” 8. Property Taxes and Assessments. City shall be responsible for the payment of all real estate taxes and assessments that become due and payable prior to Closing, without proration. Developer shall be responsible for the payment of all real estate taxes and assessments that become due and payable after Closing, without proration. 9. Survey. Developer at its own expense may obtain a survey of any or all of the Project Properties, and Buyer or its surveyor or other agents may enter any of the Project Properties for that purpose prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon Developer's own judgment as to the location, boundaries, and area of the Project Properties and improvements thereon without regard to any representations that may have been made by City or any other person. In the event that a survey by a registered land surveyor made prior to Closing discloses an encroachment or substantial variation from the presumed land boundaries or area, City shall have the option of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may elect to purchase the Project Properties subject to said encroachment or variation. 10. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s agents may conduct inspections of each of the Project Properties within thirty (30) days after the Effective Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the Page 122 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason, Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no written objection is made by Developer within the stated period, this inspection contingency shall be deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms of this Agreement. 11. Condition of Project Properties. City and Developer acknowledge and agree that each Parcel in the Project Properties is being sold and delivered “AS IS”, “WHERE IS” in its present condition. Except as specifically set forth in this Agreement or any written disclosure statements, City has not made, does not make, and specifically disclaims any and all representations, warranties, or covenants of any kind or character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value, nature, quality, or condition of any of the Project Properties, including without limitation, soil conditions, and any environmental conditions; (ii) the suitability of the Project Properties for any or all of Developer’s activities and uses; (iii) the compliance of or by the Project Properties with any laws, codes, or ordinances; (iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Properties; (v) existence in, on, under, or over the Project Properties of any hazardous substances; or (vi) any other matter with respect to the Project Properties. Developer acknowledges and agrees that Developer has or will have the opportunity to perform inspections of the Project Properties pursuant to this Agreement and that Developer is relying solely on Developer’s own investigation of the Project Properties and not on any information provided to or to be provided by City (except as specifically provided in this Agreement). If the transaction contemplated herein closes, Developer agrees to accept the respective Project Properties acquired by Developer and waive all objections or claims against City arising from or related to such Project Properties and any improvements thereon except for a breach of any representations or warranties or covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees that it has determined that the respective Project Properties it has acquired and all improvements thereon are in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and Developer has accepted such Project Properties in their present condition and subject to ordinary wear and tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of the deed. 12. Developer’s Representations and Warranties of Developer. Developer represents, covenants, and warrants the following to be true: a. Authority. Developer is a Michigan limited liability company. Developer has the power and authority to enter into and perform Developer’s obligations under this Agreement. b. Litigation. No judgment is outstanding against Developer and no litigation, action, suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or governmental body, department or agency or, to the knowledge of Developer, threatened, that has the stated purpose or the probable effect of enjoining or preventing the Closing. c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy, receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary, affecting Developer or any of Developer's assets or properties, is now or on the Closing Date will be pending or, to the knowledge of Developer, threatened. Page 123 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x 13. Conditions Precedent. This Agreement and all of the obligations of Developer under this Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of each of the following conditions: a. Performance. The obligations, agreements, documents, and conditions required to be signed and performed by City shall have been performed and complied with before or at the date of the Closing. b. City Commission Approval. This Agreement is approved by the Muskegon City Commission. 14. Default. a. By Developer. In the event Developer fails to comply with any or all of the obligations, covenants, warranties, or agreements under this Agreement and such default is not cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the purchase price in full at Closing, a default for which no notice is required), then City may terminate this Agreement. b. By City. In the event City fails to comply with any or all of the obligations, covenants, warranties or agreements under this Agreement, and such default is not cured within ten (10) days after receipt of notice, then Developer may either terminate this Agreement or Developer may pursue its legal and/or equitable remedies against City including, without limitation, specific performance. 15. Closing. a. Date of Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no event later than 60 days from the City Commission’s approval of the sale (“Closing”), unless this Agreement is terminated in accordance with its provisions. The Closing shall be conducted at such time and location as the parties mutually agree. b. Costs. The costs associated with this Agreement and the Closing shall be paid as follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law; (ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer and City shall each pay one-half of any closing fees charged by the Title Company. c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project Properties and Developer shall pay the purchase price. The quit claim deed to be delivered by City at closing shall include the City Right of Reversion described in Paragraph 4 above. The parties shall execute and deliver such other documents reasonably required to effectuate the transaction contemplated by this Agreement. 16. Real Estate Commission. Developer and City shall each be responsible for any fees for any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other party has hired. Page 124 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x 17. Notices. All notices, approvals, consents and other communications required under this Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one day after depositing with a nationally recognized overnight delivery service; and five (5) days after sending by first class, registered, or certified mail. Notices shall be sent to the parties as follows: To City: City of Muskegon Attn.: Samantha Pulos, Code Coordinator 933 Terrace Street Muskegon, MI 49440 To Developer: Green Rabbit Home Builders Attn.: Bryant __________________ Mitchell 1801 44 St SE th Grand Rapids, MI, 49058 Email: GreenRabbitHomes@gmail.com __________________ 18. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. Counterparts. This Agreement may be executed in counterparts, and each set of duly delivered identical counterparts which includes all signatories, shall be deemed to be one original document. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and Page 125 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal and subject matter jurisdiction and that Muskegon County is the exclusive venue. This Agreement is executed effective as of the Effective Date set forth above. CITY: DEVELOPER: CITY OF MUSKEGON GREEN RABBIT HOME BUILDERS dotloop verified Bryant Mitchell By: _______________________________ By: _____________________________ 05/20/24 4:09 PM EDT IHEC-L81N-X9NT-HGON Name: Ken Johnson Name: __________________________ Bryant Mitchell Title: Mayor Title: __________________________ Chief Development Officer Dated: ____________________________ Dated: __________________________ 05/20/2024 By: _______________________________ Name: Ann Marie Meisch Title: City Clerk Dated: ____________________________ Page 126 of 207 dotloop signature verification: dtlp.us/ILTt-oJES-br2x Exhibit A The following described premises located in the City of Muskegon, County of Muskegon, State of Michigan, and legally described as follows: Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 11 BLOCK 22 Address: 505 ALVA ST, MUSKEGON, MI 49442 Parcel #: 61-24-205-022-0011-00 Price: $3,000.00 *Will be combined with 553 & 558 Jackson and then split into a minimum of 6 individual parcels. Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 2 & NORTH 150 FEET LOT 3 BLOCK 22 Address: 553 JACKSON AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-022-0002-00 Price: $3,375.00 *Will be combined with 505 Alva & 558 Jackson and then split into a minimum of 6 individual parcels. Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 1/2 LOT 19 & ALL LOTS 20 & 21 BLOCK 14 Address: 558 JACKSON AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-014-0020-00 Price: $3,375.00 *Will be combined with 505 Alva & 553 Jackson and then split into a minimum of 6 individual parcels. Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1 BLOCK 22 Address: 579 JACKSON AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-022-0001-00 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 WEST 66 FEET OF NORTH 132 FEET LOT 1 BLOCK 21 Address: 601 JACKSON AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-021-0001-00 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 6 EX NORTHLY 50 FEET BEING 50 FEET ON LANGLEY ST & 62.32 FEET ON EAST LINE SAID LOT 6 BLOCK 15 Address: 608 JACKSON AVE, MUSKEGON, MI 49442 Parcel #: 61-24-015-0006-10 Price: $3,000.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 1& 2 BLK 20 Address: 621 JACKSON AVE, MUSKEGON, MI 49442 Parcel #: 61-24-020-0001-00 Price: $3,375.00 Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 22 FEET LOT 11 & LOT 12 BLOCK 9 Address: 532 LEONARD AVE, MUSKEGON, MI 49442 Parcel #: 61-24-205-009-0012-00 Price: $3,000.00 Page 127 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Annual Action Plan Budget 2024 Submitted by: Sharonda Carson, CNS Director Department: Community & Neighborhood Services Brief Summary: The budgets for both CDBG and HOME funds are attached for your review and consent. Detailed Summary & Background: The Annual Action Plan Budgets are presented to the Commission for approval based on the Department of Housing and Urban Development (HUD) appropriations for FY2024. The Community Planning and Development (CPD) office-funded programs are Community Development Block Grant (CDBG) and HOME investment Partnerships (HOME) and the allocations total $1,136,877,00 for eligible programs administered by the office of Community and Neighborhood Services. The Citizen's District will meet June 2, 2024 to review the budget and make any corrections noted by the commission. Goal/Focus Area/Action Item Addressed: Key Focus Areas: City of Muskegon Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: CDBG - $ 885,059 Yes x No N/A HOME - $ 251,818 Fund(s) or Account(s): Budget Amendment Needed: 472 and 473 Yes No x N/A Recommended Motion: To approve the 2024 Annual Action Plan Budgets for CDBG and HOME Programs Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Page 128 of 207 Other Division Heads Communication Legal Review Page 129 of 207 CDBG Organization/Agency 2023 2024 Kid Power of Produce $8,000.00 $20,000.00 Priority Home Repair $223,952.62 $136,375.77 Residential Façade $125,995.00 $70,000.00 Service Delivery $60,000.00 $117,807.00 Housing Ramps $20,000.00 $0.00 Fire Station Bond $213,085.58 $231,106.86 Blight Fight (McLaughlin) $10,000.00 $0.00 Youth Credit Recovery $30,000.00 $20,000.00 Builder's License (Pilot) $10,000.00 $0.00 Youth Summer Internships $20,000.00 $0.00 MPS Youth Basketball $25,000.00 True North $42,758.00 Parks $20,000.00 Agewell Services $25,000.00 Admin $180,258.20 $177,011.80 TOTAL $901,291.00 $885,059.00 HOME Organization/Agency 2023 2024 Community Dev. Housing $48,824.20 $37,772.70 Rehab Construction $244,121.30 $163,681.70 Admin $32,549.50 $50,363.60 Page 130 of 207 TOTAL $ 251,818.00 $ 251,818.00 km Page 131 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: EGLE Water Affordability & Planning Grant Agreement Submitted by: Dan VanderHeide, Public Works Department: Public Works Director Brief Summary: Staff seeks approval to enter into an agreement with the State of Michigan's Department of Environment, Great Lakes and Energy (EGLE) for a Water Affordability & Planning Grant in the amount of $122,500 with a value of $23,320 as in-kind City matching efforts. Detailed Summary & Background: Water affordability has become a growing topic of concern throughout the State of Michigan and the Unites States. Muskegon's water system is facing a growing need for rehabilitation and replacement of its aging infrastructure. This has led to and will continue to lead to increasing rates to support improvements. Increasing costs are contributing to delinquencies in water system bills and the financial burden on low-income residents. The City of Muskegon, with the assistance of Prein & Newhof, applied for and was selected to receive an Affordability and Planning Grant to assist with the development of an affordability program for its Drinking Water System. The grant includes an award of $122,500, with an in-kind match of $23,320 based on staff time and legal counsel review costs from existing budgeted funds. Using the grant funds, the City intends review the types of programs that have been successful in other communities and identify what may work for the City of Muskegon. The City intends to develop a program that is sustainable and can be supported by the City Commission and the public. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Decrease infrastructure burden on residents Sustainability in financial practices and infrastructure Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life - Partnerships with organizations focused on reducing poverty Amount Requested: Budgeted Item: N/A Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: 591 Yes No N/A X Recommended Motion: Page 132 of 207 To authorize staff to enter into an agreement with the State of Michigan's Department of Environment, Great Lakes and Energy (EGLE) for a Water Affordability & Planning Grant in the amount of $122,500 with a value of $23,320 as in-kind City matching efforts. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads X Communication Legal Review Page 133 of 207 AFFORDABILITY AND PLANNING GRANT AGREEMENT BETWEEN THE MICHIGAN DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY AND City of Muskegon This Grant Agreement (“Agreement”) is made between the Michigan Department of Environment, Great Lakes, and Energy (EGLE), Finance Division (“State"), and City of Muskegon ("Grantee"). The purpose of this Agreement is to provide funding in exchange for work to be performed for the project named below. The State is authorized to provide grant assistance pursuant to Public Act 57 of 2019. Legislative appropriation of Funds for grant assistance is set forth in Public Act 57 of 2019. This Agreement is subject to the terms and conditions specified herein. PROJECT INFORMATION: Project Name: Affordability Program Planning Project #: Amount of grant: $122,500 % of grant state 100 / % of grant federal 0 Amount of match: $23,320 TOTAL: $145,820 (grant plus match) Start Date: 4/1/2024 End Date: 6/1/2025 GRANTEE CONTACT INFORMATION: Name/Title: Dan VanderHeide, Public Works Director Organization: City of Muskegon Address: 1350 E. Keating Ave. City, State, ZIP: Muskegon, MI 49442 Phone Number: 616-443-0829 Fax Number: E-Mail Address: dan.vanderheide@shorelinecity.com Federal ID Number (Required for Federal Funding): Grantee DUNs/UEI Number (Required for Federal Funding): SIGMA Vendor Number: CV0047621 Michigan.gov/EGLE Page 1 of 11 EQP1030 (Rev. 5/2022) Page 134 of 207 STATE’S CONTACT INFORMATION: Name/Title: Emily Posthumus Division/Bureau/Office: Office of the Clean Water Public Advocate Address: 525 West Allegan City, State, ZIP: Lansing, MI 48933 Phone Number: 517-285-0893 E-Mail Address: EGLE-CleanWater@Michigan.gov 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. FOR THE GRANTEE: Dan VanderHeide, Public Works Director Signature Name/Title Date FOR THE STATE: James Clift, Deputy Director Signature Name/Title Date Michigan.gov/EGLE Page 2 of 15 EQP1030 (Rev. 5/2022) Page 135 of 207 I. PROJECT SCOPE This Agreement and its appendices constitute the entire Agreement between the State and the Grantee and may be modified only by written agreement between the State and the Grantee. (A) The scope of this project is limited to the activities specified in Appendix A and such activities as are authorized by the State under this Agreement. Any change in project scope requires prior written approval in accordance with Section III, Changes, in this Agreement. (B) By acceptance of this Agreement, the Grantee commits to complete the project identified in Appendix A within the time period allowed for in this Agreement and in accordance with the terms and conditions of this Agreement. II. AGREEMENT PERIOD Upon signature by the State, the Agreement shall be effective from the Start Date until the End Date on page 1. The State shall have no responsibility to provide funding to the Grantee for project work performed except between the Start Date and the End Date specified on page 1. Expenditures made by the Grantee prior to the Start Date or after the End Date of this Agreement are not eligible for payment under this Agreement. III. CHANGES Any changes to this Agreement shall be requested by the Grantee or the State in writing and implemented only upon approval in writing by the State. The State reserves the right to deny requests for changes to the Agreement or to the appendices. No changes can be implemented without approval by the State. IV. GRANTEE DELIVERABLES AND REPORTING REQUIREMENTS The Grantee shall submit deliverables and follow reporting requirements specified in Appendix A of this Agreement. (A) The Grantee must complete and submit quarterly financial and progress reports according to a form and format prescribed by the State and must include supporting documentation of eligible project expenses. These reports shall be due according to the following: Reporting Period Due Date January 1 – March 31 April 30 April 1 – June 30 July 31 July 1 – September 30 Before October 15* October 1 – December 31 January 31 *Due to the State’s year-end closing procedures, there will be an accelerated due date for the report covering July 1 – September 30. Advance notification regarding the due date for the quarter ending September 30 will be sent to the Grantee. If the Grantee is unable to submit a report in early October Michigan.gov/EGLE Page 3 of 15 EQP1030 (Rev. 5/2022) Page 136 of 207 for the quarter ending September 30, an estimate of expenditures through September 30 must be submitted to allow the State to complete its accounting for that fiscal year. The forms provided by the State shall be submitted to the State’s contact at the address on page 1. All required supporting documentation (invoices, proof of payment, etc.) for expenses must be included with the report. (B) The Grantee shall provide a final project report in a format prescribed by the State. The Grantee shall submit the final status report, including all supporting documentation for expenses, along with the final project report and any other outstanding products within 30 days from the End Date of the Agreement. V. GRANTEE RESPONSIBILITIES (A) The Grantee agrees to abide by all applicable local, state, and federal laws, rules, ordinances, and regulations in the performance of this grant. (B) All local, state, and federal permits, if required, are the responsibility of the Grantee. Award of this grant is not a guarantee of permit approval by the State. (C) The Grantee shall be solely responsible to pay all applicable taxes and fees, if any, that arise from the Grantee’s receipt or execution of this grant. (D) The Grantee is responsible for the professional quality, technical accuracy, timely completion, and coordination of all designs, drawings, specifications, reports, and other services submitted to the State under this Agreement. The Grantee shall, without additional compensation, correct or revise any errors, omissions, or other deficiencies in drawings, designs, specifications, reports, or other services. (E) The State’s approval of drawings, designs, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Grantee of responsibility for the technical adequacy of the work. The State’s review, approval, acceptance, or payment for any of the services shall not be construed as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement. (F) The Grantee acknowledges that it is a crime to knowingly and willingly file false information with the State for the purpose of obtaining this Agreement or any payment under the Agreement, and that any such filing may subject the Grantee, its agents, and/or employees to criminal and civil prosecution and/or termination of the grant. VI. USE OF MATERIAL Unless otherwise specified in this Agreement, the Grantee may release information or material developed under this Agreement, provided it is acknowledged that the State funded all or a portion of its development. The State, and federal awarding agency, if applicable, retains a royalty-free, nonexclusive and irrevocable right to reproduce, publish, and use in whole or in part, and authorize others to do so, any Michigan.gov/EGLE Page 4 of 15 EQP1030 (Rev. 5/2022) Page 137 of 207 copyrightable material or research data submitted under this grant whether or not the material is copyrighted by the Grantee or another person. The Grantee will only submit materials that the State can use in accordance with this paragraph. VII. ASSIGNABILITY The Grantee shall not assign this Agreement or assign or delegate any of its duties or obligations under this Agreement to any other party without the prior written consent of the State. The State does not assume responsibility regarding the contractual relationships between the Grantee and any subcontractor. VIII. SUBCONTRACTS The State reserves the right to deny the use of any consultant, contractor, associate, or other personnel to perform any portion of the project. The Grantee is solely responsible for all contractual activities performed under this Agreement. Further, the State will consider the Grantee to be the sole point of contact with regard to contractual matters, including payment of any and all charges resulting from the anticipated Grant. All subcontractors used by the Grantee in performing the project shall be subject to the provisions of this Agreement and shall be qualified to perform the duties required. IX. NON-DISCRIMINATION The Grantee shall comply with the Elliott Larsen Civil Rights Act, 1976 PA 453, as amended, MCL 37.2101 et seq., the Persons with Disabilities Civil Rights Act, 1976 PA 220, as amended, MCL 37.1101 et seq., and all other federal, state, and local fair employment practices and equal opportunity laws and covenants that it shall not discriminate against any employee or applicant for employment, to be employed in the performance of this Agreement, with respect to his or her hire, tenure, terms, conditions, or privileges of employment, or any matter directly or indirectly related to employment, because of his or her race, religion, color, national origin, age, sex, height, weight, marital status, or physical or mental disability that is unrelated to the individual’s ability to perform the duties of a particular job or position. The Grantee agrees to include in every subcontract entered into for the performance of this Agreement this covenant not to discriminate in employment. A breach of this covenant is a material breach of this Agreement. X. UNFAIR LABOR PRACTICES The Grantee shall comply with the Employers Engaging in Unfair Labor Practices Act, 1980 PA 278, as amended, MCL 423.321 et seq. XI. LIABILITY (A) The Grantee, not the State, is responsible for all liabilities as a result of claims, judgments, or costs arising out of activities to be carried out by the Grantee under this Agreement, if the liability is caused by the Grantee, or any employee or agent of the Grantee acting within the scope of their employment or agency. (B) Nothing in this Agreement should be construed as a waiver of any governmental immunity by the Grantee, the State, its agencies, or their employees as provided by statute or court decisions. Michigan.gov/EGLE Page 5 of 15 EQP1030 (Rev. 5/2022) Page 138 of 207 XII. CONFLICT OF INTEREST No government employee, or member of the legislative, judicial, or executive branches, or member of the Grantee’s Board of Directors, its employees, partner agencies, or their families shall benefit financially from any part of this Agreement. XIII. ANTI-LOBBYING If all or a portion of this Agreement is funded with federal funds, then in accordance with 2 CFR 200, as appropriate, the Grantee shall comply with the Anti-Lobbying Act, which prohibits the use of all project funds regardless of source, to engage in lobbying the state or federal government or in litigation against the State. Further, the Grantee shall require that the language of this assurance be included in the award documents of all subawards at all tiers. If all or a portion of this Agreement is funded with state funds, then the Grantee shall not use any of the grant funds awarded in this Agreement for the purpose of lobbying as defined in the State of Michigan’s lobbying statute, MCL 4.415(2). “‘Lobbying’ means communicating directly with an official of the executive branch of state government or an official in the legislative branch of state government for the purpose of influencing legislative or administrative action.” The Grantee shall not use any of the grant funds awarded in this Agreement for the purpose of litigation against the State. Further, the Grantee shall require that language of this assurance be included in the award documents of all subawards at all tiers. XIV. DEBARMENT AND SUSPENSION By signing this Agreement, the Grantee certifies that it has checked the federal debarment/suspension list at www.SAM.gov to verify that its agents, and its subcontractors: (1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or the state. (2) Have not within a three-year period preceding this Agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction, as defined in 45 CFR 1185; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property. (3) Are not presently indicted or otherwise criminally or civilly charged by a government entity (federal, state, or local) with commission of any of the offenses enumerated in subsection (2). (4) Have not within a three-year period preceding this Agreement had one or more public transactions (federal, state, or local) terminated for cause or default. (5) Will comply with all applicable requirements of all other state or federal laws, executive orders, regulations, and policies governing this program. Michigan.gov/EGLE Page 6 of 15 EQP1030 (Rev. 5/2022) Page 139 of 207 XV. AUDIT AND ACCESS TO RECORDS The State reserves the right to conduct a programmatic and financial audit of the project, and the State may withhold payment until the audit is satisfactorily completed. The Grantee will be required to maintain all pertinent records and evidence pertaining to this Agreement, including grant and any required matching funds, in accordance with generally accepted accounting principles and other procedures specified by the State. The State or any of its duly authorized representatives must have access, upon reasonable notice, to such books, records, documents, and other evidence for the purpose of inspection, audit, and copying. The Grantee will provide proper facilities for such access and inspection. All records must be maintained for a minimum of [five] years after the final payment has been issued to the Grantee by the State. XVI. INSURANCE (A) The Grantee must maintain insurance or self-insurance that will protect it from claims that may arise from the Grantee’s actions under this Agreement. (B) The Grantee must comply with applicable workers’ compensation laws while engaging in activities authorized under this Agreement. XVII. OTHER SOURCES OF FUNDING The Grantee guarantees that any claims for reimbursement made to the State under this Agreement must not be financed by any source other than the State under the terms of this Agreement. If funding is received through any other source, the Grantee agrees to delete from Grantee's billings, or to immediately refund to the State, the total amount representing such duplication of funding. XVIII. COMPENSATION (A) A breakdown of costs allowed under this Agreement is identified in Appendix A. The State will pay the Grantee a total amount not to exceed the amount on page 1 of this Agreement, in accordance with Appendix A, and only for expenses incurred and paid. All other costs necessary to complete the project are the sole responsibility of the Grantee. (B) Expenses incurred by the Grantee prior to the Start Date or after the End Date of this Agreement are not allowed under the Agreement. (C) The State will approve payment requests after approval of reports and related documentation as required under this Agreement. (D) The State reserves the right to request additional information necessary to substantiate payment requests. (E) Payments under this Agreement may be processed by Electronic Funds Transfer (EFT). The Grantee may register to receive payments by EFT at the SIGMA Vendor Self Service web site (https://sigma.michigan.gov/webapp/PRDVSS2X1/AltSelfService). Michigan.gov/EGLE Page 7 of 15 EQP1030 (Rev. 5/2022) Page 140 of 207 (F) An amount equal to 50 percent of the grant award will be withheld by the State until the project is completed in accordance with Section XIX, Closeout, and Appendix A. (G) The Grantee is committed to the match percentage on page 1 of the Agreement, in accordance with Appendix A. The Grantee shall expend all local match committed to the project by the End Date on page 1 of the Agreement. XIX. CLOSEOUT (A) A determination of project completion, which may include a site inspection and an audit, shall be made by the State after the Grantee has met any match obligations, satisfactorily completed the activities, and provided products and deliverables described in Appendix A. (B) Upon issuance of final payment from the State, the Grantee releases the State of all claims against the State arising under this Agreement. Unless otherwise provided in this Agreement or by State law, final payment under this Agreement shall not constitute a waiver of the State’s claims against the Grantee. (C) The Grantee shall immediately refund to the State any payments in excess of the costs allowed by this Agreement. XX. CANCELLATION This Agreement may be canceled by the State, upon 30 days written notice, due to Executive Order, budgetary reduction, other lack of funding, upon request by the Grantee, or upon mutual agreement by the State and Grantee. The State may honor requests for just and equitable compensation to the Grantee for all satisfactory and eligible work completed under this Agreement up until 30 days after written notice, upon which time all outstanding reports and documents are due to the State and the State will no longer be liable to pay the grantee for any further charges to the grant. XXI. TERMINATION (A) This Agreement may be terminated by the State as follows. (1) Upon 30 days written notice to the Grantee: a. If the Grantee fails to comply with the terms and conditions of the Agreement, or with the requirements of the authorizing legislation cited on page 1, or the rules promulgated thereunder, or other applicable law or rules. b. If the Grantee knowingly and willingly presents false information to the State for the purpose of obtaining this Agreement or any payment under this Agreement. c. If the State finds that the Grantee, or any of the Grantee’s agents or representatives, offered or gave gratuities, favors, or gifts of monetary value to any official, employee, or agent of the State in an attempt to secure a subcontract or favorable treatment in awarding, amending, or making any determinations related to the performance of this Agreement. Michigan.gov/EGLE Page 8 of 15 EQP1030 (Rev. 5/2022) Page 141 of 207 d. If the Grantee or any subcontractor, manufacturer, or supplier of the Grantee appears in the register of persons engaging in unfair labor practices that is compiled by the Michigan Department of Licensing and Regulatory Affairs or its successor. e. During the 30-day written notice period, the State shall withhold payment for any findings under subparagraphs a through d, above and the Grantee will immediately cease charging to the grant and stop earning match for the project (if applicable). (2) Immediately and without further liability to the State if the Grantee, or any agent of the Grantee, or any agent of any subcontract is: a. Convicted of a criminal offense incident to the application for or performance of a State, public, or private contract or subcontract; b. Convicted of a criminal offense, including but not limited to any of the following: embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or attempting to influence a public employee to breach the ethical conduct standards for State of Michigan employees; c. Convicted under State or federal antitrust statutes; or d. Convicted of any other criminal offense that, in the sole discretion of the State, reflects on the Grantee’s business integrity. e. Added to the federal or state Suspension and Debarment list. (B) If a grant is terminated, the State reserves the right to require the Grantee to repay all or a portion of funds received under this Agreement. XXII. IRAN SANCTIONS ACT By signing this Agreement the Grantee is certifying that it is not an Iran linked business, and that its contractors are not Iran linked businesses, as defined in MCL 129.312. Michigan.gov/EGLE Page 9 of 15 EQP1030 (Rev. 5/2022) Page 142 of 207 PROJECT-SPECIFIC REQUIREMENTS – APPENDIX A Project Overview The City of Muskegon water system (City) is facing a growing need for rehabilitation and replacement of its aging infrastructure. The City provides water service to approximately 38,000 residents in the City and provides water on a wholesale basis to the neighboring communities of Muskegon County Northside and Eastside Water Systems, West Michigan Regional Water Authority, and the Cities of North Muskegon and Roosevelt Park. The proposed program would apply to the City of Muskegon only. The wholesale communities operate their own distribution systems and bill their own customers. Since preparation of its original Water Asset Management Plan in 2017, the City has continued to develop short-term Capital Improvement Programs (CIP) that are coordinated with other City infrastructure such as sanitary sewer, storm sewer and roads. Over half of the distribution system is more than 80 years old and will require replacement or rehabilitation over the coming decades. Additional needs for the Water Treatment Plant, water storage tanks, and pumping stations have also been identified. Additionally, in 2019, the City completed a preliminary distribution system materials inventory (DSMI) of all water services in the City to comply with recent changes to Michigan lead and copper regulations. The City has approximately 12,900 water services, over 10,00 of which are likely to be classified as lead, or galvanized previously connected to lead, under current regulations. These will require replacement by 2041 based on current State regulations. With approximately 3,000 left to replace, the costs for this alone will approach $100,000,000, placing a large burden on system rate payers. In addition, proposed federal regulations could shorten the replacement period and exacerbate the financial burden on the rate payers. This has led to and will continue to lead to increasing rates to support improvements. Increasing costs are contributing to delinquencies in water system bills and the financial burdens on low-income residents. The City intends review the types of programs that have been successful in other communities and identify what may work for the City of Muskegon. Affordability can be a controversial topic and the City wants to develop a program that is sustainable and can be supported by the City Council and the public. Project Scope 1. Collect and Review Background Information. A review of available background information will be made to identify the scope and magnitude of the problem and potential costs to the system. This will include: • Review and summarize current City policies for water shut-offs, late fees, penalties, etc. • Review customer delinquency rates and shut offs for last 3 to 5 years • Review City population statistics related to Median Household income and Federal Poverty Levels • Provide Geographic Information System (GIS) mapping of data collected to determine if there are certain areas more affected than others • Determine lost revenues based on delinquencies and shut offs • Quantify staff and administrative costs associated with water system shut offs and reinstatements • Summarize results and review with City Michigan.gov/EGLE Page 10 of 15 EQP1030 (Rev. 5/2022) Page 143 of 207 2. Review Current Rate Structure and Projected Needs. The City has been evaluating the water system needs and projected costs for improvements through yearly evaluation of its Asset Management Program. Under the task the City will: • Review and summarize the 10-year Water System Capital Improvement Program (CIP) and revenues needed to support the identified needs • Review current rate structure and revenues needed to support the CIP and other expenses • Analysis by City financial advisor • Summarize findings and review with city staff 3. Review Affordability Programs and Identify Potential Partners and Funding Sources. Over the last several years, affordability has become a more common topic of discussion with programs being adopted by municipalities in Michigan and throughout the United States. A review of programs, primarily in Michigan will be made. • Review income-based rate programs • Review existing rate assistance programs within Michigan for water and other utilities such as those operated by: o Great Lakes Waster Authority o City of Detroit o City of Kalamazoo o Community Action Agency of Michigan o Consumers Energy o Others that may be identified. • Review existing City, local and regional assistance programs and how they could coordinate with water utility program • Review eligibility criteria used in other programs • Review previous City attempts to develop a program • Review legal requirements or barriers for affordability programs • Summarize pros and cons of various programs reviewed • Identify/review public outreach programs used • Research and identify potential partners including meeting with local agencies such as Community Action of Mid-Michigan • Review and identify conservation measures and programs that could be used in concert with an affordability program The City of Muskegon intends to collaborate with its neighbor, the City of Muskegon Heights on a regional collaboration for certain aspects of this project. Specifically, it will work with local community agencies on setting up the administrative framework for an affordability program. While each city may have different criteria for eligibility, it is hoped that a common community agency will be able to assist with administering the program for both communities. 4. Develop Affordability Program. Based on the review of the City’s needs and other affordability programs, the City intends to develop and recommend a framework to the City Council for review and adoption. It is anticipated that the program will rely on community agencies to assist with administering a program as they are already set up to manage similar affordability applications. The basic program will include: • Determination of eligibility criteria and limitations of funding Michigan.gov/EGLE Page 11 of 15 EQP1030 (Rev. 5/2022) Page 144 of 207 • Determination of program costs and potential funding sources • Fiscal sustainability plan for the program • Determination of the program process including how to apply • Identification of community partner agencies and collaboration efforts to reduce redundancy in programs and administration • Identification of potential State and Federal assistance programs that may be leveraged with community efforts • Legal review of proposed program 5. Community Engagement and Outreach. As part of the review and development of an affordability program, there will be a community engagement and outreach process. The following is anticipated: • Seek public input on water system billing, communications, and potential • Review of major findings of study and recommendations in public meeting • Provide draft report for public comment period on draft report of findings and recommendations • Incorporation of public comments • Provide second meeting and public comment period • Presentation to City Council on draft report of findings and recommendations • Second presentation with City Council • Provide final report and recommendations • Development and publication of outreach materials 6. Remain up to date on the status of the proposed state-wide water affordability program. A state-wide water affordability program has been introduced in the legislature at the time of writing this work plan. The presence of a state-wide affordability program could significantly impact local program development, structure, and efficacy. Deliverables and Schedule A final deliverable report will be prepared that incorporates the summary reviews of the research and findings referenced for each work plan task. It is intended that this will provide the background and support needed for adoption of a program. Public engagement will be an important part of the process to develop a program and these activities will also be summarized in the final report. The following table outlines the anticipated schedule. Tasks will be overlapping in time. Task Schedule Deliverable Task 1 – Collect and Review April 15 – July 31, 2024 Summary of review Background Information Task 2 – Review Current Rate June 1 – September 30, Summary of review Structure and Projected Needs 2024 Task 3 – Review Other Programs July 1 – November 30, Summary of review and Potential Partners 2024 Task 4 – Develop Affordability September 30, 2024 – Summary document outlining Program January 31, 2025 proposed program Task 5 – Community September 30, 2024 – Documentation of community Engagement and Outreach May 15, 2025 engagement and outreach, City Commission reviews, and final report Michigan.gov/EGLE Page 12 of 15 EQP1030 (Rev. 5/2022) Page 145 of 207 Budget Task 1 – Collect and Review Background Information $ 21,400 Review and summarize current policies $ 2,400 Review population and MAHI statistics/GIS mapping $ 5,700 Review/summarize 10-yr CIP $ 2,700 Quantify lost revenues and costs to system for unpaid and delinquencies $ 2,700 Summarize results and review with city $ 7,900 Task 2 – Review Current Rate Structure and Projected Needs $ 21,600 Review/summarize 10-yr CIP $ 2,700 Review current rate structure and needed revenues $ 2,700 Analysis by city financial advisor $ 11,000 Summarize findings and review with financial advisor $ 5,200 Task 3 – Review Other Programs and Potential Partners $ 22,800 Review income-based programs $ 2,400 Review existing assistance programs - local, regional, $ 2,400 Review eligibility criteria $ 2,400 Review previous work by city $ 1,700 Review legal requirements and other barriers $ 2,400 Summarize pros and cons of various programs $ 2,400 Review/identify public outreach programs $ 1,700 Research and identify potential partners $ 2,400 Review/identify conservation measures $ 1,700 Summarize and review with city $ 3,300 Task 4 – Develop Affordability Program $ 18,700 Determine eligibility criteria $ 2,400 Determine program costs and funding sources $ 2,400 Fiscal sustainability plan $ 2,400 Develop process $ 1,700 Identify and collaborate with community partners $ 2,400 Identify potential assistance programs $ 1,700 Legal review of proposed program $ 2,000 Summarize and review with city $ 3,700 Task 5 – Community Engagement and Outreach $ 38,000 Seek public input $ 2,400 Review major findings of study and recommendations in public meeting $ 3,600 Draft for public comment $ 2,600 Incorporation of public comments $ 4,200 Provide second public meeting and public comment $ 2,700 Presentation to city council $ 2,700 Final report and recommendations and review with city $ 10,100 Development of public education and outreach materials $ 9,700 Total $ 122,500 Michigan.gov/EGLE Page 13 of 15 EQP1030 (Rev. 5/2022) Page 146 of 207 The project cost to be covered under grant funds is detailed in the attached cost worksheet at $122,500. Additionally, the City of Muskegon intends to match these funds with staff time, totaling approximately 20% of the grant total, as shown below: Task 1 – Collect and Review Background Information $ 2,800 Task 2 – Review Current Rate Structure and Projected Needs $ 2,520 Task 3 – Review Other Programs and Potential Partners $ 3,000 Task 4 – Develop Affordability Program $ 3,000 Task 5 – Community Engagement and Outreach $ 4,000 Legal Review $ 8,000 Total $ 23,320 Grant Administration and Close Out As mentioned previously, in Section IV, GRANTEE DELIVERABLES AND REPORTING REQUIREMENTS, the Grantee must complete and submit financial and progress reports and must include supporting documentation of eligible project expenses. Reports shall include the Financial Status Report Form with supporting cost documentation (i.e., vendor invoices), a report including a brief description of work completed during the reporting period, and any delays occurred or anticipated. Reports shall be due within 30 days of the end of each quarterly reporting period. If applicant chooses not to submit reimbursement requests quarterly, the EGLE project manager must be notified that no submission will be completed for the quarter. The Grantee must provide a final project report, which shall include a summary of work completed utilizing grant funds. The Grantee shall submit the final status report, including the Financial Status Report Form with all supporting documentation for expenses, along with the final project report and any other outstanding products within 30 days of substantial completion of the project or the end date of the agreement, whichever occurs first. Grant information including grantee name, grant award amount, and a project summary may be shared with the legislature and posted on EGLEs website. Michigan.gov/EGLE Page 14 of 15 EQP1030 (Rev. 5/2022) Page 147 of 207 If you need this information in an alternate format, contact EGLE-Accessibility@Michigan.gov or call 800-662-9278. EGLE does not discriminate on the basis of race, sex, religion, age, national origin, color, marital status, disability, political beliefs, height, weight, genetic information, or sexual orientation in the administration of any of its programs or activities, and prohibits intimidation and retaliation, as required by applicable laws and regulations. Questions or concerns should be directed to the Nondiscrimination Compliance Coordinator at EGLE- NondiscriminationCC@Michigan.gov or 517-249-0906. This form and its contents are subject to the Freedom of Information Act and may be released to the public. Michigan.gov/EGLE Page 15 of 15 EQP1030 (Rev. 5/2022) Page 148 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Water Affordability Study Consultant Submitted by: Dan VanderHeide, Public Works Department: Public Works Director Brief Summary: Staff seeks approval to enter into a contract with Prein & Newhof for $122,500 to assist the City with preparation of a Water Affordability Study using EGLE Water Affordability & Planning Grant funds. Detailed Summary & Background: Prein & Newhof helped the City prepare an EGLE Water Affordability & Planning Grant, and has successfully completed a Water Affordability Study using the same grant for the City of Kalamazoo. As such, staff solicited the attached proposal from Prein & Newhof to prepare a Water Affordability Study for Muskegon using the recently awarded grant. Their proposal matches the grant amount, with city staff time being tracked and reported to EGLE as in-kind match. Based on their experience with this type of work, and their familiarity with the City's grant and the specifics of this grant process, staff recommends approval. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Decrease infrastructure burden on residents Sustainability in financial practices and infrastructure Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life - Partnerships with organizations focused on reducing poverty Amount Requested: Budgeted Item: N/A Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: 591 Yes No N/A X Recommended Motion: To approve staff to enter into a contract with Prein & Newhof for $122,500 to assist the City with preparation of a Water Affordability Study using EGLE Water Affordability & Planning Grant funds. Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Page 149 of 207 Technology Other Division Heads X Communication Legal Review Page 150 of 207 April 15, 2024 Mr. Dan VanderHeide, P.E., Public Works Director City of Muskegon, Department of Public Works 1350 Keating Avenue Muskegon, MI 49442 RE: Affordability and Planning Grant – 2024 Award Professional Engineering Services Proposal Dear Mr. VanderHeide: Congratulations on receiving the Affordability and Planning Grant from the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for the City of Muskegon ‘s Drinking Water System. We appreciate this opportunity to provide a proposal for professional engineering services to assist you with implementation of the Work Plan that Prein&Newhof prepared, and which was submitted with the grant application in February of this year. The grant implementation period runs from April 1, 2024 through June 1, 2025, and is a 100% grant, provided on a cost reimbursement basis. Based on the Work Plan in the grant application, we offer the following scope of services: • Task 1 – Collect and Review Background Information • Task 2 – Review Current Rate Structure and Projected Needs • Task 3 – Review Other Programs and Potential Partners • Task 4 – Develop Affordability Program • Task 5 – Community Engagement and Outreach More details on these tasks are provided in the work plan and cost estimate that was submitted with the grant application. A copy of these documents is enclosed. We propose to provide this scope of services on a Time/Expense basis for a not to exceed amount of $109,500. The total grant amount is $122,500 and includes $13,000 for a financial advisor and some community outreach materials. If this is acceptable, please sign the attached Professional Services Agreement and return a copy to us. Please let us know if you have any questions, or need additional information, please contact us. Sincerely, Prein&Newhof Barbara E. Marczak, P.E. Jason M. Washler, P.E. Encl.: AP Grant Work Plan Professional Services Agreement www.preinnewhof.com R:\PRP - Proposal Preparation\City of Muskegon\2024-02 Affordability Grant\prp 2024-04-15 AP Grant Muskegon.docx Page 151 of 207 City of Muskegon Work Plan for Affordability and Planning Grant Introduction and Project Need Water affordability has become a growing topic of concern throughout the State of Michigan and the Unites States. The City of Muskegon water system (City) is facing a growing need for rehabilitation and replacement of its aging infrastructure. This has led to and will continue to lead to increasing rates to support improvements. Increasing costs are contributing to delinquencies in water system bills and the financial burdens on low-income residents. The City of Muskegon is seeking an Affordability and Planning Grant to assist with the development of an affordability program for its Drinking Water System. Using grant funds, the City intends review the types of programs that have been successful in other communities and identify what may work for the City of Muskegon. Affordability can be a controversial topic and the City wants to develop a program that is sustainable and can be supported by the city Commission and the public. Water System Background The City’s system provides water service to approximately 38,000 people in the City. It also provides water on a wholesale basis to the neighboring communities of Muskegon County Northside and Eastside Water Systems, West Michigan Regional Water Authority, and the Cities of North Muskegon and Roosevelt Park. The proposed program would apply to the City of Muskegon only. The wholesale communities operate their own distribution systems and bill their own customers. Since preparation of its original Water Asset Management Plan in 2017, the City has continued to develop short-term Capital Improvement Programs (CIP) that are coordinated with other City infrastructure such as sanitary sewer, storm sewer and roads. Over half of the distribution system is more than 80 years old and will require replacement or rehabilitation over the coming decades. Additional needs for the Water Treatment Plant, water storage tanks, and pumping stations have also been identified. In 2019, the City completed a preliminary distribution system materials inventory (DSMI) of all water services in the City to comply with recent changes to Michigan lead and copper regulations. The City has approximately 12,900 water services varying in size from 3/4 inch to 8 inch. Over 10,000 are likely to be classified as lead, or galvanized previously connected to lead, services under current regulations. These will require replacement by 2041 based on current State regulations. These replacements alone will cost residents over $100,000,000, placing a large burden on system rate payers. In addition, proposed federal regulations could shorten the replacement period and exacerbate the financial burden on the rate payers. 1 Page 152 of 207 Economic Status Although the City of Muskegon is experiencing a resurgence in economic vitality and redevelopment, it is classified as an “overburdened” community under Michigan Department of Environment, Great Lakes, and Energy’s (EGLE’s) State Revolving Fund criteria. Data from EGLE’s website indicates the following for FY 2025 funding applications: City of Muskegon Median Annual Household $40,900 Income (MAHI) Taxable Property Value Per $17,880 Capita The City of Muskegon MAHI is less than 100% of the statewide median annual household income for Michigan, which is $66,986 for FY 2025. The City of Muskegon’s taxable value is in the lowest 20% of the State value, which is $23,778. Work Plan The following outlines the tasks to be conducted under the grant. Task 1 – Collect and Review Background Information A review of available background information will be made to identify the scope and magnitude of the problem and potential costs to the system. This will include: • Review and summarize current City policies for water shut-offs, late fees, penalties, etc. • Review customer delinquency rates and shut offs for last 3 to 5 years • Review City population statistics related to Median Household income and Federal Poverty Levels • Provide Geographic Information System (GIS) mapping of data collected to determine if there are certain areas more affected than others • Determine lost revenues based on delinquencies and shut offs • Quantify staff and administrative costs associated with water system shut offs and reinstatements • Summarize results and review with City Task 2 – Review Current Rate Structure and Projected Needs The City has been evaluating the water system needs and projected costs for improvements through yearly evaluation of its Asset Management Program. Under the task the City will: 2 Page 153 of 207 • Review and summarize the 10-year Water System Capital Improvement Program (CIP) and revenues needed to support the identified needs • Review current rate structure and revenues needed to support the CIP and other expenses • Analysis by City financial advisor • Summarize findings and review with city staff Task 3 – Review Affordability Programs and Identify Potential Partners and Funding Sources Over the last several years, affordability has become a more common topic of discussion with programs being adopted by municipalities in Michigan and throughout the United States. A review of programs, primarily in Michigan will be made. • Review income-based rate programs • Review existing rate assistance programs within Michigan for water and other utilities such as those operated by: o Great Lakes Waster Authority o City of Detroit o City of Kalamazoo o Community Action Agency of Michigan o Consumers Energy o Others that may be identified. • Review existing City, local and regional assistance programs and how they could coordinate with water utility program • Review eligibility criteria used in other programs • Review previous City attempts to develop a program • Review legal requirements or barriers for affordability programs • Summarize pros and cons of various programs reviewed • Identify/review public outreach programs used • Research and identify potential partners including meeting with local agencies such as Community Action of Mid-Michigan • Review and identify conservation measures and programs that could be used in concert with an affordability program A state-wide water affordability program has been introduced in the legislature at the time of writing this work plan. The presence of a state-wide affordability program could significantly impact local program development, structure, and efficacy. The work plan will include a task to research the status of the proposed state-wide water affordability program. Task 4 – Develop Affordability Program Based on the review of the City needs and other affordability programs, the City intends to develop and recommend a framework to the City Commission for review and adoption. It is 3 Page 154 of 207 anticipated that the program will rely on community agencies to assist with the program as they are already set up to manage similar affordability applications. The basic program will include: • Determination of eligibility criteria and limitations of funding • Determination of program costs and potential funding sources • Fiscal sustainability plan for the program • Determination of the program process including how to apply • Identification of community partner agencies and collaboration efforts to reduce redundancy in programs and administration • Identification of potential State and Federal assistance programs that may be leveraged with community efforts • Legal review of proposed program Task 5 – Community Engagement and Outreach As part of the review and development of an affordability program, there will be a community engagement and outreach process. The following is anticipated: • Seek public input on water system billing, communications, and potential • Review of major findings of study and recommendations in public meeting • Provide draft report for public comment period on draft report of findings and recommendations • Incorporation of public comments • Provide second meeting and public comment period • Presentation to City Commission on draft report of findings and recommendations • Second presentation with City Commission • Provide final report and recommendations • Development and publication of outreach materials Project Schedule/Deliverables A final deliverable report will be prepared that incorporates the summary reviews of the research and findings referenced for each work plan task. It is intended that this will provide the background and support needed for adoption of a program. Public engagement will be an important part of the process to develop a program and these activities will also be summarized in the final report. The following table outlines the anticipated schedule. Tasks will be overlapping in time. 4 Page 155 of 207 Task Schedule Deliverable Task 1 – Collect and Review April 15, 2024 – July 31, 2024 Summary of review Background Information Task 2 – Review Current Rate June 1, 2024 – September Summary of review Structure and Projected Needs 30, 2024 Task 3 – Review Other July 1, 2024 – November 30, Summary of review Programs and Potential 2024 Partners Task 4 – Develop Affordability September 30 – January 31, Summary document Program 2025 outlining proposed program Task 5 – Community September 30, 2024 – May Documentation of Engagement and Outreach 15, 2025 community engagement and outreach, City Commission reviews, and final report Project Partners and Regional Collaboration The City of Muskegon intends to collaborate with its neighbor, the City of Muskegon Heights on a regional collaboration for certain aspects of this project if both communities are awarded an Affordability Grant. Specifically, it will work with local community agencies on setting up the administrative framework for an affordability program. While each city may have different criteria for eligibility, it is hoped that a common community agency will be able to assist with administering the program for both communities. Community agencies that have been approached and have indicated an interest in assisting with development of a program are: • Mid- Michigan Community Action Agency • United Way of the Lakeshore • Mission for Area People • Department of Health and Human Services These agencies continually work with economically overburdened populations and have resources and programs that could be used to model affordability programs after. Project Cost The project cost to be covered under grant funds is detailed in the attached cost worksheet at $122,500. 5 Page 156 of 207 Additionally, the City of Muskegon intends to match these funds with both staff time and its outside legal counsel review. It is anticipated that the following staff members will be involved in the project at various points: City Manager Assistant City Manager Director of Public Works Water Department Supervisor Billing Staff The following is an estimate of time and Task Estimated Staff Averaged Hourly Rate Total Hours x 1.4 Task 1 – Collect and 40 $70 $2,800 Review Background Information Task 2 – Review Current 30 $84 $2,520 Rate Structure and Projected Needs Task 3 – Review Other 30 $100 $3,000 Programs and Potential Partners Task 4 – Develop 30 $100 $3,000 Affordability Program Task 5 – Community 40 $100 $4,000 Engagement and Outreach Legal Review $8,000 Total $23,320 This represents approximately 20% of the estimated cost of the grant. Return on Investment Given the current City of Muskegon service size of approximately 38,000 people and the proposed project investment of $122,500, the investment per capita is approximately $3.25 per person in the system. Given the City of Muskegon is considered overburdened, based on median household 6 Page 157 of 207 income and taxable property values, this small investment per capita can provide a large benefit to a substantial number of disadvantaged households and increase the long-term sustainability of the City’s water system. Attachments: Project Cost Worksheet Letter of collaboration from city of Muskegon Heights Letter of support from United Way 7 Page 158 of 207 CITY OF MUSKEGON Cost Worksheet - Affordability and Planning Grant Estimated Hours Sen. Proj. Asst. Proj Misc. Manager Manager GIS staff graphics clerical Consultant** Est. Miles Expenses* Task 1 - Collect and Review Background Information Total Cost Review and summarize current policies 4 10 $ 2,400 Review population and MAHI statistics/GIS mapping 2 6 25 5 $ 5,700 Review/summarize 10-yr CIP 6 10 $ 2,700 Quntify lost revenues and costs to system for unpaid and deliquencies 6 10 $ 2,700 Summarize results and review with city 10 20 10 5 5 30 $100.00 $ 7,900 Task Total 28 56 35 10 5 0 30 $100.00 $ 21,400 Task 2 -Review Current Rate Structure and Projected Needs Total Cost Review/summarize 10-yr CIP 6 10 $ 2,700 Review current rate structure and needed revenues 6 10 $ 2,700 Analysis by city financial advisor 8 4 $8,000 $ 11,000 Summarize findings and review with city 8 15 5 5 30 $100.00 $ 5,200 Task Total 28 39 0 5 5 $8,000 30 100 $ 21,600 Task 3 - Review Other Programs and Potential Partners Total Cost Review income-based programs 4 10 $ 2,400 Review existing assistance programs - local, regional, 4 10 30 $ 2,400 Review eligibility critera 4 10 $ 2,400 Review previous work by city 2 8 $ 1,700 Review legal requirements and other barriers 4 10 $ 2,400 Summarize pros and cons of various programs 4 10 $ 2,400 Review/identify public outreach programs 2 8 $ 1,700 Research and identify potential partners 4 10 $ 2,400 Review/identify conservation measures 2 8 $ 1,700 Summarize and review with city 4 8 5 5 30 $100 $ 3,300 Task Total 34 92 0 5 5 0 60 $100 $ 22,800 Task 4 - Develop Affordability Program Total Cost Determine eligibility criteria 4 10 $ 2,400 Determine program costs and funding sources 4 10 $ 2,400 Fiscal sustainability plan 4 10 $ 2,400 Develop process 2 8 $ 1,700 Identify and collaborate with commmunity partners 4 10 $ 2,400 Identify potential assistance programs 2 8 $ 1,700 Legal review of proposed program 4 8 $ 2,000 Summarize and review with city 6 12 5 30 $100 $ 3,700 Task Total 30 76 0 0 5 0 30 100 $ 18,700 Task 5- Community Engagement and Outreach Total Cost Seek public input 4 10 $ 2,400 Review major findings of study and recommendations in public meeting 10 10 30 $100.00 $ 3,600 Draft for public comment 5 10 $ 2,600 Incorporation of public comments 5 20 $ 4,200 Provide second public meeting and public comment 5 10 30 $100 $ 2,700 Presentation to city commisssion 5 10 30 $100.00 $ 2,700 Final report and recommendations and review with city 20 30 10 30 $500.00 $ 10,100 Development of public education and outreach materials 5 10 10 $5,000 $300.00 $ 9,700 Task Total 59 110 0 10 10 $5,000.00 120 $ 1,100.00 $ 38,000 TOTAL Tasks 1 through 5 149 297 35 30 25 $13,000 240 $1,400 $122,500 * Misc. expenses such as printing, etc. ** Financial advisor and develop outreach materials Page 159 of 207 Project No. Professional Services Agreement This Professional Services Agreement is made this 15th day of April, 2024 (“Agreement”) by and between Prein & Newhof, Inc. (“P&N”), of 4910 Stariha Drive, Muskegon, MI 49441, and City of Muskegon (“Client”), of 933 Terrace St. Muskegon, MI 49440. WHEREAS Client intends to: Develop a water system affordability program per Work Plan submitted with Affordability and Planning Grant NOW THEREFORE, for and in consideration of the terms and conditions contained herein, the parties agree as follows: ARTICLE 1 – DESIGNATED REPRESENTATIVES Client and P&N each designate the following individuals as their representatives with respect to the Project. For P&N For Client Name: Barbara Marczak, P.E. Name: Dan VanderHeide, PE Title: Team Leader Title: Director, Department of Public Works Phone Number: 231-798-0101 Phone Number: 231-724-6993 Facsimile: 616-364-6955 Facsimile: E-mail: bmarczak@preinnewhof.com E-mail: dan.vanderheide@shorelinecity.com ARTICLE 2 – GENERAL CONDITIONS This Agreement consists of this Professional Services Agreement and the following documents which by this reference are incorporated into and made a part of this Agreement. ☒ P&N Standard Terms and Conditions for Professional Services ☒ P&N Proposal dated 4/15/2024 ☒ P&N Standard Rate Schedule ☐ P&N Supplemental Terms and Conditions ☐ Other: 3355 Evergreen Drive, NE Grand Rapids, MI 49525 t.616-364-8491 f. 616-364-6955 www.preinnewhof.com Page 1 of 2 R:\PRP - Proposal Preparation\City of Muskegon\2024-02 Affordability Grant\PSA agm 2024-04-15 City of Muskegon.docx Page 160 of 207 ARTICLE 3 – ENGINEERING SERVICES PROVIDED UNDER THIS AGREEMENT: Client hereby requests, and P&N hereby agrees to provide, the following services: ☒ P&N Scope of Services per Proposal dated, 4/15/2024 ☐ Scope of Services defined as follows: ARTICLE 4 – COMPENSATION: ☐ Lump Sum for Services Described in Article 3 above - $ Additional services to be billed per P&N’s Standard Rate Schedule in effect on the date the additional services are performed. ☒ Hourly Billing Rates plus Reimbursable Expenses per P&N’s Standard Rate Schedule in effect on the date services are performed. ☒ Other: Maximum not to exceed $109,500 ARTICLE 5 – ADDITIONAL TERMS (If any) None This Agreement constitutes the entire Agreement between P&N and Client and supersedes all prior written or oral understandings. This Agreement may not be altered, modified, or amended, except in writing properly executed by authorized representatives of P&N and Client. Accepted for: Accepted for: Prein&Newhof, Inc. City of Muskegon Digitally signed by Jason Washler DN: C=US, E=jwashler@preinnewhof.com, Jason Washler OU=Prein&Newhof, CN=Jason By: Washler Date: 2024.04.16 08:18:05-04'00' By: Printed Name: Jason Washler, P.E. Printed Name: Title: Vice President Title: Date: Date: 3355 Evergreen Drive, NE Grand Rapids, MI 49525 t.616-364-8491 f. 616-364-6955 www.preinnewhof.com Page 2 of 2 R:\PRP - Proposal Preparation\City of Muskegon\2024-02 Affordability Grant\PSA agm 2024-04-15 City of Muskegon.docx Page 161 of 207 Standard Terms & Conditions A. General - As used in this Prein&Newhof Standard Terms and Conditions for Professional Services (hereinafter “Terms and Conditions”), unless the context otherwise indicates: the term “Agreement” means the Professional Services Agreement inclusive of all documents incorporated by reference including but not limited to this P&N Standard Terms and Conditions for Professional Services; the term “Engineer” refers to Prein & Newhof, Inc.; and the term “Client” refers to the other party to the Professional Services Agreement. These Terms and Conditions shall be governed in all respects by the laws of the United States of America and by the laws of the State of Michigan. B. Standard of Care - The standard of care for all professional and related services performed or furnished by Engineer under the Agreement will be the care and skill ordinarily used by members of Engineer’s profession of ordinary learning, judgment or skill practicing under the same or similar circumstances in the same or similar community, at the time the services are provided. C. Disclaimer of Warranties - Engineer makes no warranties, expressed or implied, under the Agreement or otherwise. D. Construction/Field Observation - If Client elects to have Engineer provide construction/field observation, client understands that construction/field observation is conducted to reduce, not eliminate the risk of problems arising during construction, and that provision of the service does not create a warranty or guarantee of any type. In all cases, the contractors, subcontractors, and/or any other persons performing any of the construction work, shall retain responsibility for the quality and completeness of the construction work and for adhering to the plans, specifications and other contract documents. E. Construction Means and Methods - Engineer shall not have control or charge of and shall not be responsible for construction means, methods, techniques, sequences, or procedures, or for any safety precautions and programs in connection with the construction work, for the acts or omissions of the Contractor, Subcontractors, or any other persons performing any of the construction work, or for the failure of any of them to carry out the construction work in accordance with the plans, specifications or other contract documents. F. Opinions of Probable Costs - Client acknowledges that Engineer has no control over market or contracting conditions and that Engineer’s opinions of costs are based on experience, judgment, and information available at a specific period of time. Client agrees that Engineer makes no guarantees or warranties, express or implied, that costs will not vary from such opinions. G. Client Responsibilities 1. Client shall provide all criteria, Client Standards, and full information as to the requirements necessary for Engineer to provide the professional services. Client shall designate in writing a person with authority to act on Client’s behalf on all matters related to the Engineer’s services. Client shall assume all responsibility for interpretation of contract documents and construction observation/field observation during times when Engineer has not been contracted to provide such services and shall waive any and all claims against Engineer that may be connected thereto. 2. In the event the project site is not owned by the Client, the Client must obtain all necessary permission for Engineer to enter and conduct investigations on the project site. It is assumed that the Client possesses all necessary permits and licenses required for conducting the scope of services. Access negotiations may be performed at additional costs. Engineer will take reasonable precaution to minimize damage to land and structures with field equipment. Client assumes responsibility for all costs associated with protection and restoration of project site to conditions existing prior to Engineer’s performance of services. 3. The Client, on behalf of all owners of the subject project site, hereby grants permission to the Engineer to utilize a small unmanned aerial system (sUAS) for purposes of aerial mapping data acquisition. The Client is responsible to provide required notifications to the property owners of the subject project site and affected properties where the sUAS services will be performed. The Engineer will operate the sUAS in accordance with applicable State and Federal Laws. H. Hazardous or Contaminated Materials/Conditions 1. Client will advise Engineer, in writing and prior to the commencement of its services, of all known or suspected Hazardous or Contaminated Materials/Conditions present at the site. 2. Engineer and Client agree that the discovery of unknown or unconfirmed Hazardous or Contaminated Materials/Conditions constitutes a changed condition that may require Engineer to renegotiate the scope of or terminate its services. Engineer and Client also agree that the discovery of said Materials/Conditions may make it necessary for Engineer to take immediate measures to protect health, safety, and welfare of those performing Engineer’s services. Client agrees to compensate Engineer for any costs incident to the discovery of said Materials/Conditions. 3. Client acknowledges that Engineer cannot guarantee that contaminants do not exist at a project site. Similarly, a site page 1 of 3 M:\Administrative\I-Standard Documents Creation\1a - Agreements T&C\Standard Terms and Conditions - Public Entities 2023 (updated March 29, 2023) Page 162 of 207 which is in fact unaffected by contaminants at the time of Engineer’s surface or subsurface exploration may later, due to natural phenomena or human intervention, become contaminated. The Client waives any claim against Engineer, and agrees to defend, indemnify and hold Engineer harmless from any claims or liability for injury or loss in the event that Engineer does not detect the presence of contaminants through techniques commonly employed. 4. The Client recognizes that although Engineer is required by the nature of the services to have an understanding of the laws pertaining to environmental issues, Engineer cannot offer legal advice to the Client. Engineer urges that the Client seek legal assistance from a qualified attorney when such assistance is required. Furthermore, the Client is cautioned to not construe or assume that any representations made by Engineer in written or conversational settings constitute a legal representation of environmental law or practice. 5. Unless otherwise agreed to in writing, the scope of services does not include the analysis, characterization or disposal of wastes generated during investigation procedures. Should such wastes be generated during this investigation, the Client will contract directly with a qualified waste hauler and disposal facility. I. Underground Utilities – To the extent that the Engineer, in performing its services, may impact underground utilities, Engineer shall make a reasonable effort to contact the owners of identified underground utilities that may be affected by the services for which Engineer has been contracted, including contacting the appropriate underground utility locating entities and reviewing utility drawings provided by others. Engineer will take reasonable precautions to avoid damage or injury to underground utilities and other underground structures. Client agrees to hold Engineer harmless for any damages to below ground utilities and structures not brought to Engineers attention and/or accurately shown or described on documents provided to Engineer. J. Insurance 1. Engineer will maintain insurance for professional liability, general liability, worker’s compensation, auto liability, and property damage in the amounts deemed appropriate by Engineer. Client will maintain insurance for general liability, worker’s compensation, auto liability, and property damage in the amounts deemed appropriate by Client. Upon request, Client and Engineer shall each deliver certificates of insurance to the other evidencing their coverages. 2. Client shall require Contractors to purchase and maintain commercial general liability insurance and other insurance as specified in project contract documents. Client shall cause Engineer, Engineer’s consultants, employees, and agents to be listed as additional insureds with respect to any Client or Contractor insurances related to projects for which Engineer provides services. Client agrees and must have Contractors agree to have their insurers endorse these policies to reflect that, in the event of payment of any loss or damages, subrogation rights under these Terms and Conditions are hereby waived by the insurer with respect to claims against Engineer. K. Limitation of Liability - The total liability, in the aggregate, of Engineer and Engineer’s officers, directors, partners, employees, agents, and consultants, whether jointly, severally or individually, to Client and anyone claiming by, through, or under Client, for any and all injuries, losses, damages and expenses, whatsoever, arising out of, resulting from, or in any way related to the Project or the Agreement, including but not limited to the performance of services under the Agreement, from any cause or causes whatsoever, including but not limited to the negligence, professional errors or omissions, strict liability or breach of contract or warranty, expressed or implied, of Engineer or Engineer’s officers, directors, partners, employees, agents, consultants, or any of them, shall not exceed the amount of the compensation paid to Engineer under this Agreement, or the sum of fifty thousand dollars and no cents ($50,000.00), whichever is less. Recoverable damages shall be limited to those that are direct damages. Engineer shall not be responsible for or held liable for special, indirect or consequential losses or damages, including but not limited to loss of use of equipment or facility, and loss of profits or revenue. Client acknowledges that Engineer is a corporation and agrees that any claim made by Client arising out of any act or omission of any director, officer, or employee of Engineer, in the execution or performance of the Agreement, shall be made against Engineer and not against such director, officer, or employee. L. Documents and Data 1. All documents prepared or furnished by Engineer under the Agreement are Engineer’s instruments of service, and are and shall remain the property of Engineer. 2. Hard copies of any documents provided by Engineer shall control over documents furnished in electronic format. Client recognizes that data provided in electronic format can be corrupted or modified by the Client or others, unintentionally or otherwise. Consequently, the use of any data, conclusions or information obtained or derived from electronic media provided by Engineer will be at the Client’s sole risk and without any liability, risk or legal exposure to Engineer, its employees, officers or consultants. 3. Any extrapolations, conclusions or assumptions derived by the Client or others from the data provided to the Client, either in hard copy or electronic format, will be at the Client’s sole risk and full legal responsibility. page 2 of 3 M:\Administrative\I-Standard Documents Creation\1a - Agreements T&C\Standard Terms and Conditions - Public Entities 2023 (updated March 29, 2023) Page 163 of 207 M. Differing Site Conditions - Client recognizes that actual site conditions may vary from the assumed site conditions or test locations used by Engineer as the basis of its design. Consequently, Engineer does not guarantee or warrant that actual site conditions will not vary from those used as the basis of Engineer’s design, interpretations and recommendations. Engineer is not responsible for any costs or delays attributable to differing site conditions. . N. Terms of Payment - Unless alternate terms are included in the Agreement, Client will be invoiced on a monthly basis until the completion of the Project. All monthly invoices are payable within 30 days of the date of the invoice. Should full payment of any invoice not be received within 30 days, the amount due shall bear a service charge of 1.5 percent per month or 18 percent per year plus the cost of collection, including reasonable attorney’s fees. If Client has any objections to any invoice submitted by Engineer, Client must so advise Engineer in writing within fourteen (14) days of receipt of the invoice. Unless otherwise agreed, Engineer shall invoice Client based on hourly billing rates and direct costs current at the time of service performance. Outside costs such as, but not limited to, equipment, meals, lodging, fees, and subconsultants shall be actual costs plus 10 percent. In addition to any other remedies Engineer may have, Engineer shall have the absolute right to cease performing any services in the event payment has not been made on a current basis. O. Termination - Either party may terminate services, either in part or in whole, by providing 10 calendar days written notice thereof to the other party. In such an event, Client shall pay Engineer for all services performed prior to receipt of such notice of termination, including reimbursable expenses, and for any shut–down costs incurred. Shut–down costs may, at Engineer’s discretion, include expenses incurred for completion of analysis and records necessary to document Engineer’s files and to protect its professional reputation. P. Severability and Waiver of Provisions - Any provision or part of the Agreement held to be void or unenforceable under any laws or regulations shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon Client and P&N, who agree that the Agreement shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. Non- enforcement of any provision by either party shall not constitute a waiver of that provision, nor shall it affect the enforceability of that provision or of the remainder of the Agreement. Q. Dispute Resolution - If a dispute arises between the parties relating to the Agreement, the parties agree to use the following procedure prior to either party pursuing other available remedies: 1. Prior to commencing a lawsuit, the parties must attempt mediation to resolve any dispute. The parties will jointly appoint a mutually acceptable person not affiliated with either of the parties to act as mediator. If the parties are unable to agree on the mediator within twenty (20) calendar days, they shall seek assistance in such regard from the Circuit Court of the State and County wherein the Project is located, who shall appoint a mediator. Each party shall be responsible for paying all costs and expenses incurred by it, but shall split equally the fees and expenses of the mediator. The mediation shall proceed in accordance with the procedures established by the mediator. 2. The parties shall pursue mediation in good faith and in a timely manner. In the event the mediation does not result in resolution of the dispute within thirty (30) calendar days, then, upon seven (7) calendar days’ written notice to the other party, either party may pursue any other available remedy. 3. In the event of any litigation arising from the Agreement, including without limitation any action to enforce or interpret any terms or conditions or performance of services under the Agreement, Engineer and Client agree that such action will be brought in the District or Circuit Court for the County of Kent, State of Michigan (or, if the federal courts have exclusive jurisdiction over the subject matter of the dispute, in the U.S. District Court for the Western District of Michigan), and the parties hereby submit to the exclusive jurisdiction of said court. R. Force Majeure - Engineer shall not be liable for any loss or damage due to failure or delay in rendering any services called for under the Agreement resulting from any cause beyond Engineer’s reasonable control. S. Assignment - Neither party shall assign its rights, interests or obligations under this Agreement without the express written consent of the other party. T. Modification - The Agreement may not be modified except in writing signed by the party against whom a modification is sought to be enforced. U. Survival - All express representations, indemnifications, or limitations of liability included in the Agreement shall survive its completion or termination for any reason. V. Third-Party Beneficiary - Client and Engineer agree that it is not intended that any provision of this Agreement establishes a third-party beneficiary giving or allowing any claim or right of action whatsoever by a third party. W. Fee Escalation - Engineer’s fees are based on its billing rates, which are adjusted annually. For multi-year projects, Engineer’s fees incorporate an estimate of future billing rates. If inflation causes actual billing rates to exceed these estimates, Engineer reserves the right to adjust its fees accordingly. page 3 of 3 M:\Administrative\I-Standard Documents Creation\1a - Agreements T&C\Standard Terms and Conditions - Public Entities 2023 (updated March 29, 2023) Page 164 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Downtown Social District Expansion Submitted by: Deborah Sweet, Community Department: Community Engagement Engagement Manager Brief Summary: Pigeon Hill Brewing Company, LLC (895 4th St), Shoreline Inn, LLC (750 Terrace Point Rd), and Waterworks GR, LLC d/b/a Lake House Waterfront Grille have formally requested to expand the social district to include their three establishments. Detailed Summary & Background: Summer 2020 | The City of Muskegon administration began designing a downtown Muskegon Social District in direct response to the COVID-19 Pandemic. The design included policies, parameters, and management of this new community development tool. The Muskegon Social District Plan was shared with potential license-holder users for refinement of the plan. The final plan was presented and approved by the Muskegon City Commission on August 25, 2020, and the Michigan Liquor Control Commission on September 15, 2020. September 2020 | The original Downtown Social District began operations the third weekend in September 2020. The Muskegon Social District included a common area south of Shoreline Drive with the potential of expanding to the north in the future. The initial Muskegon Social District was mainly along West Western Avenue from Eighth Street to Pine Street, including portions of Clay Avenue, Morris Avenue, Third Street and Jefferson Street. April 2021 | The plan was amended to remove the property at 490 W. Western Avenue, owned by Port City CIO Building Association, which requested removal because special non-profit licenses could not be issued inside of a social district in the initial law. May 2021 | City Commission and Michigan Liquor Control Commission approved the second Social District in the City which serves the establishments in the Lakeside Business District. The Lakeside Social District Plan was shared with Lakeside businesses and residents. The Muskegon Lakeside Social District has common area along Lakeshore Drive from Addison Street to Moon Street. The Muskegon Lakeside Social District includes properties on the southside of Lakeshore Drive from Addison to Moon and on the northside of Lakeshore Drive from Moon up to but not including the Lakeside Emporium. In the future, the district may be extended west of Moon Street along Lakeshore Drive to accommodate future growth and development. April 2022 | The plan was amended on April 26, 2022, to add Hackley Park, areas along Clay Avenue from Second to Fourth Streets, and the property at 490 W. Western Ave., owned by Port City CIO Building Association. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Page 165 of 207 Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life Amount Requested: Budgeted Item: $0 Yes No N/A x Fund(s) or Account(s): Budget Amendment Needed: N/A Yes No N/A x Recommended Motion: To approve the amended Downtown Muskegon Social District plan and map as attached. Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Other Division Heads Communication x Legal Review Page 166 of 207 May 16th, 2024 City of Muskegon Attn: City Manager & City Commissioners 933 Terrace St, Muskegon, MI 49440 By email to: deborah.sweet@shorelinecity.com cc: dave.alexander@shorelinecity.com Re: Requested Expansion of Downtown Social District By Pigeon Hill Brewing Company, LLC; Waterworks GR, LLC; and Shoreline Inn, LLC Mr. Seyferth and esteemed City Commissioners, On behalf of our respective organizations – Pigeon Hill Brewing Company, LLC; Waterworks GR, LLC; and Shoreline Inn, LLC – we are writing to formally request the expansion of Muskegon’s Downtown Social District to encompass our liquor-licensed establishments. Each of our three hospitality-centric establishments serves the community through the provision of food and beverage to citizens and tourists alike. By including our establishments within the Social District, we believe that we can further serve the community by enhancing the options available to consumers, encouraging foot traffic between downtown’s primary corridors, and further activating the waterfront portion of downtown Muskegon. The specific locations that we are requesting be added to the Social District are: • Pigeon Hill Brewing Company, LLC (895 4th Street, Muskegon, MI 49440) • Shoreline Inn, LLC (750 Terrace Point Rd, Muskegon, MI 49440) • Waterworks GR, LLC d/b/a Lake House Waterfront Grille (730 Terrace Point Rd, Muskegon, MI 49440) If you have any questions, please do not hesitate to contact both or either of us by phone or email. Best Regards, ____________________________ ____________________________ Michael A. Brower Rory M. Charron Member & Chief Brand Officer Chief Operating Officer Pigeon Hill Brewing Company, LLC Parkland Properties of Michigan On behalf of Shoreline Inn, LLC & Waterworks GR, LLC Page 167 of 207 MKG Social District Expansion Request Final Audit Report 2024-05-16 Created: 2024-05-16 By: Michael Brower (michael@pigeonhillbrew.com) Status: Signed Transaction ID: CBJCHBCAABAAE9FT8XaNznsyhO_vyz22vnd2LTLDTYFe "MKG Social District Expansion Request" History Document created by Michael Brower (michael@pigeonhillbrew.com) 2024-05-16 - 4:24:59 PM GMT- IP address: 68.43.146.23 Document emailed to Rory Charron (rory@parklandgr.com) for signature 2024-05-16 - 4:25:02 PM GMT Email viewed by Rory Charron (rory@parklandgr.com) 2024-05-16 - 5:07:13 PM GMT- IP address: 104.28.110.102 Document e-signed by Rory Charron (rory@parklandgr.com) Signature Date: 2024-05-16 - 6:06:11 PM GMT - Time Source: server- IP address: 172.58.124.166 Agreement completed. 2024-05-16 - 6:06:11 PM GMT Page 168 of 207 Downtown Muskegon Social District Existing Proposed 1 The Eagles 24 AquaStar 2 No Name Saloon 25 The Brewer’s Lounge 3 Mike’s Inn 26 Shoreline Inn 4 Socibowl 27 Lakehouse Waterfront Grille 5 (NO LICENSE) 6 Top Shelf 7 Arena/Rad Dads/Carlisle’s 8 Dr. Rolf’s BBQ 9 Legends 27 10 Frauenthal Center 11 Walker’s The Foundation 26 12 The CIM’s Courses 13 Unruly Brewing 21 14 The Block 15 (VACANT) 16 Farmers Market 17 Nipote’s Existing Commons Area 17 18 19 Proposed Commons Area 16 18 794 Kitchen & Bar 19 Capone’s Speakeasy 20 Rake Beer Project 21 Hot Rod Harley-Davidson Existing Properties 24 14 15 23 22 Early Owl 25 13 5 23 (VACANT) Proposed Properties 11 9 10 12 4 7 22 20 6 8 3 2 1 Page 169 of 207 Muskegon Social District Plan Adopted Aug. 25, 2020 Amended April 27, 2021 Amended April 26, 2022 Recommended Amendment May, 28, 2024 Introduction: The City of Muskegon seeks to take advantage of Michigan Public Act 124 of 2020 signed in to law on July 1, 2020, as amended by Public Act 27 of 2022. This is enabling legislation that allows Michigan municipalities to establish Social Districts that would allow for “common areas” where two or more contiguous licensed establishments (bars, distilleries, breweries, restaurants and tasting rooms) could sell alcoholic beverages in special cups to be taken into the area for consumption. Muskegon city administration through a collaboration of all City Hall departments is designing a Muskegon Social District and the policies, parameters and management of this new community development tool. The Muskegon City Commission approved the plan Aug. 25, 2020, and it has been accepted by the MLCC. The district began operations the third weekend in September 2020 and has been operating continually since. The plan was amended by the City Commission April 27, 2021, and again April 26, 2022. Each of the amendments was accepted by the MLCC. The below updates reflect the recommended amendment by the City Commission on May 28, 2024 to expand the district North of Shoreline Drive. Management: The Muskegon Social District would be amended and managed by the city through its community engagement team. The district management and operations would be assisted by the city’s public safety, public works, clerk, economic development and finance departments. District boundaries: The Muskegon Social District originally had a common area south of Shoreline Drive with the potential of expanding to the north in the future. The City of Muskegon would now like to expand the district north of Shoreline Drive, two blocks further south on Pine Street and into the Midtown Business District Third Street Webster to Merrill. Page 170 of 207 The initial Muskegon Social District was mainly along West Western Avenue from Eighth Street to Pine Street, including portions of Clay Avenue, Morris Avenue, Third Street and Jefferson Street. Specifically, the plan amended by the Muskegon City Commission April 26, 2022 adds Hackley Park. areas along Clay Avenue from Second to Fourth Streets and the property at 490 W. Western Ave., owned by Port City CIO Building Association. Approved by the Muskegon City Commission April ??, 2024, the north-of-Shoreline-Drive expansion is from the Harbor 31 new development on the east to the new Adelaide Point development on the west. Initially, the Common Area will cross Shoreline Drive at Third Street and Seventh Street but as a liquor license(s) is established at Harbor 31 a third Common Area crossing would be added at Terrace Street. Streets in the Social Districts would remain open to traffic and for parking, unless parking spaces are given to outdoor dining. The district is being proposed with the expectation of certain properties being developed that would include future businesses with liquor licenses that might expand the common area. Potential participating license holders as of April 2024: Muskegon Social District -- The Eagles, No Name Saloon, Mike’s Inn, SociBowl by Pigeon Hill, Top Shelf, Trinity Health Arena/Rad-Dads/Carlislie’s, Dr. Rolf’s BBQ, Legends, Frauenthal Center, Walker’s The Foundation, the CIM’s Courses, UnrulyBrewing, The Block, Nipotes, 794 Kitchen, Capone’s Speakeasy, Rake Beer Project, Hot Rod Harley Davidson, and Early Owl. In addition, Brewer’s Lounge by Pigeon Hill, Lakehouse Waterfront Grille, Shoreline Inn and AquaStar in the expanded areas north of Shoreline Drive (see attached map) Participating license holders would be asked to sign a Social District agreement with the city, which must recommend approve of the social district permits issued by the MLCC. This allows a license holder to sell alcoholic beverages in special district cups in its service area to be taken into the common area for consumption. Operations: The Muskegon Social Districts operate year-round. Operations are seven days a week. The common areas are open from 11 AM until 11 PM. Before 11 AM and after 11 PM, Social District beverages cannot be possessed nor consumed in the common areas. After hours, consumption of alcoholic beverages must be contained within the license holders’ service areas. It was the intent of city administration to begin implementing the Muskegon Social Districts in 2020. After an initial roll out, the district was fully activated in the spring of 2021 with the entire Muskegon Social District plan implemented. The same will be true for the north-of-Shoreline- Drive with Social District eligible state liquor licenses the boundaries of the Common Area will expand within the district. Page 171 of 207 District designation and marking: The boundaries of the Muskegon Social Districts are clearly designated and marked with signs along streets and sidewalks. The signs are often accompanied by a trash receptacle for customers to dispose of used district cups as they exit the district. Social District financing: The Muskegon Social District established, implemented and managed by the City of Muskegon, must generate enough revenue to cover its costs. The established mechanism is a fee for a district sticker purchased by the establishments from the city or representative. Stickers are needed on beverages purchased for possession and consumption in the common areas. Participating establishments can handle the surcharge however they choose within their product price structure. Revenues pay for ongoing costs such as the stickers, signage, marketing-promotion and entertainment. Social District logo and beverage containers: The Muskegon Social Districts should have a name for branding and marketing purposes but must have a special logo for use on the non-glass district beverage cups of no more than 16 ounces. The establishment cups need to be branded to differentiate among license holders with a logo or name identifying the establishment. Muskegon Social District cups may not be reused, must remain in the establishment where they were purchased or in the common area and may not be taken into an establishment that did not sell the beverage. Muskegon Social District will explore the use of cups that can be recycled or composted. Security-enforcement: Security and enforcement in the Muskegon Social Districts would be provided by the Muskegon Police Department. The Muskegon Social District may hire certified private security personnel to assist within the district. Insurance: The city insures the management and operation of the Muskegon Social District through its municipal umbrella insurance policy. Participating license holders are left to secure their own liability insurance as they deem necessary. Sanitation: Through funding from the Muskegon Downtown Development Authority, the Muskegon Public Works Department with heavy assistance from participating establishments will provide sanitation within the district including trash removal, and litter pick up. Page 172 of 207 Marketing and promotion: The Muskegon Social District is the branded name for marketing purposes and a distinctive logo. Marketing is be done through traditional free media and paid advertising along with extensive social media. The district needs its own Facebook page, other social media accounts and website. Entertainment/food trucks: The Muskegon Social District has the opportunity to provide entertainment on a regular basis and food trucks when warranted. The district includes three small stages to provide various musical acts, including Olthoff Stage, Alcoa Square, and the Farmers Market. The district could also coordinate and promote individual establishments wanting to feature musical entertainment. Finally, food trucks could be introduced to drive visitors into the district and create a street-fair atmosphere when deemed necessary. Festivals/special events: The state’s Social District law now allows special event liquor licenses to operate in a Social District. Such special licenses are the backbone of several large festival events historically within Muskegon’s Social District. Going forward, the Muskegon Social District, its participating license holders, and event organizers will work with the City of Muskegon to make sure that events with alcoholic beverage will not allow its beverages to enter the Social District nor Social District beverages to enter the special event area. Ongoing coordination and collaboration with downtown events and festivals will be needed. Page 173 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Amendment to Fee Structure for Social District Strickers Submitted by: Deborah Sweet, Community Department: Community Engagement Engagement Manager Brief Summary: On May 14, 2024, the DDA approved allocating $50,000 annually to fund the cleanup of downtown Muskegon. With the DDA covering the costs of downtown cleanup, Social District Businesses and staff request to change the fee of Social District stickers from $0.75 each to sell them at cost. Detailed Summary & Background: Since 2021, the revenue from Social District cups and sticker sales from downtown businesses has covered the cost of seasonal workers to clean up downtown. On May 14, 2024, the DDA approved allocating $50,000 annually to fund the cleanup of downtown Muskegon. This allocation will cover the expected amount of staff time for the coming years. With the DDA covering the costs of downtown cleanup, social district businesses and staff request to change the fee of Social District stickers from $0.75 each to sell them at cost. This change is timely as many businesses will need to purchase more stickers for upcoming events such as the Pub Pedal on June 1, 2024. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life Amount Requested: Budgeted Item: $0 Yes x No N/Ax Fund(s) or Account(s): Budget Amendment Needed: Yes No x N/A Recommended Motion: To approve the update of the social district fee schedule. Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Page 174 of 207 Other Division Heads Communication x Legal Review Page 175 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Toro Mower Purchase Submitted by: Kyle Karczewski, Parks and Department: DPW- Parks Recreation Director Brief Summary: The Parks Department requests authorization to purchase a Toro 4000D from Spartan Distributors for $73,582.01. Detailed Summary & Background: Staff is seeking authorization for a capital purchase of $73,582.01 for the purchase of a Toro 4000D. This would be a much needed upgrade to the parks department as we maintain over 800 acres of public land and it does the work of multiple mowers. This mower has an 11" cutting width and mows at 7.9 acres per hour. Our standard mower, the Toro 3280-D, has a 6" cutting width and mows at 3.6 acres per hour. The parks department mows 5 days per week during season, and this upgrade will reduce labor costs by one seasonal worker. This also allows us to maintain more parcels in a day, leading to a higher level of maintenance throughout our park system. This mower also has a much lower annual maintenance cost due to the high quality of the build, which has been borne out by staff's experience with our current model. The Parks department ordered this equipment from Toro in 2021. It recently arrived and this request is for authorization of the payment. The mower is eligible for purchase under the Sourcewell contract, a nationwide-purchasing collaborative that satisfies the City's purchasing policy. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Blight cleanup Enhanced Parks and Recreation Department and Services Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life - Parks and Recreation Department and Services Amount Requested: Budgeted Item: 73,582.01 Yes No x N/A Fund(s) or Account(s): Budget Amendment Needed: 101-770 Yes x No N/A Recommended Motion: I authorize the parks department to purchase a Toro 4000D from Spartan Distributors for $73,582.01. Approvals: Guest(s) Invited / Presenting: Page 176 of 207 Immediate Division x No Head Information Technology Other Division Heads x Communication Legal Review Page 177 of 207 Page 178 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Playground purchase for Joe Clifford Park (ARPA Funding) Submitted by: Kyle Karczewski, Parks and Department: DPW- Parks Recreation Director Brief Summary: In April 2024 an RFP was released for a new playground at Joe Clifford with a target cost of $150,000, several bids were received. On May 20th we held an open house at the park for the community to solicit feedback on the options. They selected Gametime/Sinclair, option 1, out of the top candidates. Detailed Summary & Background: The Joe Clifford park playground was removed in the fall of 2023 for safety reasons. Prior to investing in a new playground, staff worked with the underlying property owner (the Church of God in Christ or COGIC) to execute an easement, securing the City's property rights for the park indefinitely. That easement was approved by the Commission on April 23, 2024. Now that the property rights for the park are secure, $165,000 for capital improvements at the park is included in the Parks Capital Plan for a new playground and additional improvements. An RFP was released in April with a target cost of $150,000 and several bids were received for this park. Multiple playgrounds scored in the top tier, so on May 20th we held an open house at the park for the community to solicit neighborhood responses. They selected Gametime/Sinclair, option 1, out of the top candidates. Gametime: $150,000 Miracle: $150,000 Park Vision: $146,512.50 Goal/Focus Area/Action Item Addressed: Key Focus Areas: Enhanced Parks and Recreation Department and Services Goal/Action Item: 2027 Goal 1: Destination Community & Quality of Life - Parks and Recreation Department and Services Amount Requested: Budgeted Item: $150,000 Yes x No N/A Fund(s) or Account(s): Budget Amendment Needed: 482 - State Grants (ARPA Funds) Yes No x N/A Page 179 of 207 Recommended Motion: To authorize staff to contract with Sinclair Recreation for a new playground and installation at Joe Clifford Park. Approvals: Guest(s) Invited / Presenting: Immediate Division x Head No Information Technology Other Division Heads Communication Legal Review Page 180 of 207 Page 181 of 207 Page 182 of 207 Page 183 of 207 Page 184 of 207 Page 185 of 207 Page 186 of 207 Page 187 of 207 GameTime c/o Sinclair Recreation 05/09/2024 176 E Lakewood Blvd Quote # Holland, MI 49424 106098-01-01 Ph: 800-444-4954 Fax: 616-392-8634 Request for Proposals - Joe Clifford Park City of Muskegon Ship to Zip 49444 Attn: Kyle Karczewski Joe Clifford Park, Valley Street Muskegon, MI 49444 Kyle.karczewski@shorelinecity.com Quantity Part # Description Unit Price Amount 1 RDU GameTime - 5-12 Obstacle Course $58,448.00 $58,448.00 (1) 5186 -- Olympus Climber (1) 5209 -- Catalina Climber Base (1) 5214 -- Surge Climber 1' Pedestal (1) 5215 -- Surge Climber 2' Pedestal (1) 5270 -- Central Hub Link 3' Pedestal (6) 6232 -- Pod (1'-0") (1) 6233 -- Pod (2'-0") (1) 8666 -- 90 Deg Caterpillar F/S (1) 13801 -- Floating Boards (1) 13808 -- Up Over and Around (1) 13809 -- Get A Grip (1) 13814 -- Leaning Ladders (1) 80473 -- Spider Web, Freestanding (3) 90266 -- 8' Upright, Alum (2) 90268 -- 10' Upright, Alum (5) 90269 -- 11' Upright, Alum 1 RDU GameTime - 2-5 Hybrid Unit $32,551.00 $32,551.00 (2) 12023 -- 3 1/2" Uprt Ass'Y Alum 8' (3) 12024 -- 3 1/2" Uprt Ass'Y Alum 9' (3) 12068 -- 3 1/2"Uprt Ass'Y Alum 13' (4) 18201 -- 36" Tri Punched Deck P/T (1) 19059 -- Wavy Tree (2'-6" & 3') (1) 19348 -- Metal Half Panel W/ Steering Wheel (1) 19439 -- 3 in a Row Panel (1) 19756 -- Umbra Triangle Roof (3) 19762 -- Umbra Roof Plug (1) 19791 -- Dbl Rumble & Roll 2'-6"/3' (1) 19912 -- Modern Transfer w/Barrier 2' Rise (6) 26094 -- Triangular Shroud (1) 36014 -- Arched Chain Net Link Page 1 of 4 Page 188 of 207 GameTime c/o Sinclair Recreation 05/09/2024 176 E Lakewood Blvd Quote # Holland, MI 49424 106098-01-01 Ph: 800-444-4954 Fax: 616-392-8634 Request for Proposals - Joe Clifford Park Quantity Part # Description Unit Price Amount (1) 36015 -- Pod Rocker (1) 36024 -- 90 Deg 3 Way X-Pod Step (1) 36031 -- Single Link Cross Beam Primetime 36 (1) 36076 -- Stratus Climber (1) 36003 -- Ladder Climbing Wall 1 5962SP GameTime - VistaTree Top 5 $19,981.00 $19,981.00 1 RDU GameTime - Swings with Seats $7,817.00 $7,817.00 (2) 5128 -- Expression Swing 3 1/2" X 8' (1) 12583 -- Ada Primetime Swing Frame, 3 1/2" Od (1) 12584 -- Ada Primetime Swing Aab, 3 1/2" Od (2) SS8910 -- Belt Seat 3 1/2" /8' W/Clevis 5250 EWF GT-Impax - 12" Compacted depth engineered wood fiber surfacing, blown in $2.50 $13,125.00 5000 EXCAVATION Installation - Excavation of area with removal of spoils to a depth of 12" for new EWF $2.80 $14,000.00 surfacing 1 INSTALL Installation - Installation of GameTime equipment into excavated area- $28,500.00 $28,500.00 Price does not include removal or disposal of existing equipment, removal of concrete flatwork or sidewalks (to be done by owner). Sub Total $174,422.00 Discount ($33,098.21) Freight $8,676.21 Total $150,000.00 This quotation is subject to policies in the current GameTime Playground Catalog and the following terms and conditions. Our quotation is based on shipment of all items at one time to a single destination, unless noted, and changes are subject to price adjustment. Purchases to be supported by your written purchase order made out to GAMETIME C/O SINCLAIR RECREATION. A 2.5% PROCESSING FEE WILL BE ADDED TO ALL ORDERS PAID VIA CREDIT CARD. Pricing: f.o.b. factory, firm for 30 days from date of quotation unless otherwise noted on quotation. Sales tax will be added at time of invoicing unless a tax exemption certificate is provided at time of order entry. Payment terms: Net 30 days for tax supported governmental agencies. A 1.5% per month finance charge will be imposed on all past due accounts. Equipment shall be invoiced separately from other services and shall be payable in advance of those services and project completion. Retainage not accepted. Shipment: Order shall ship within 10-12 weeks after GameTime's receipt and acceptance of your purchase order, color selections, approved submittals, and receipt of deposit, if required. Shipment: Vistarope Net shall ship within 18-36 weeks after GameTime's receipt and acceptance of your purchase order, color selections, approved submittals, and receipt of deposit, if required. Port Congestion and transit time affect overall lead time and are impossible to predict. Page 2 of 4 Page 189 of 207 GameTime c/o Sinclair Recreation 05/09/2024 176 E Lakewood Blvd Quote # Holland, MI 49424 106098-01-01 Ph: 800-444-4954 Fax: 616-392-8634 Request for Proposals - Joe Clifford Park Installation: Shall be by a Certified GameTime Installer. Customer shall be responsible for scheduling coordination and site preparation. Site should be level and permit installation equipment access. Purchaser shall be responsible for unknown conditions such as buried utilities, tree stumps, bedrock or any concealed materials or conditions that may result in additional labor or material costs. Payment terms for installation is Net 10 Days. NOTE: PRICING DOES NOT INCLUDE ANY DAVIS BACON OR PREVAILING WAGE RATES UNLESS SPECIFICALLY IDENTIFIED ABOVE IN QUOTE. THERE WILL BE A BACKCHARGE FOR THE INSTALLATION TO BE DONE THROUGH FELT, PEASTONE, SURFACING, OR WOODCHIPS, UNLESS SPECIFICALLY LISTED IN ABOVE QUOTE. Submittals: Our design proposal reflects the spirit and intent of the project plans and specifications. While some variations may exist between our quotation and the project design, the differences do not materially affect the intended use. GameTime designs and specifications are unique and not intended to be identical in all respects to other manufacturers. We shall submit for review and approval by the owner's representative detailed drawings depicting the equipment to be furnished accompanied by specifications describing materials. Once approved, these drawings and specifications shall constitute the final documents for the project and shall take precedence over all other requirements. Exclusions: Unless specifically included, this quotation excludes all site work and landscaping; removal of existing equipment; acceptance of equipment and off-loading; storage of goods prior to installation; equipment assembly and installation; safety surfacing; borders, drainage provisions, or any local/municipal permits or paperwork that may be required. Page 3 of 4 Page 190 of 207 GameTime c/o Sinclair Recreation 05/09/2024 176 E Lakewood Blvd Quote # Holland, MI 49424 106098-01-01 Ph: 800-444-4954 Fax: 616-392-8634 Request for Proposals - Joe Clifford Park Acceptance of quotation: Accepted By (printed): ______________________________ P.O. No: ______________________________________ Please make P.O.s out to Sinclair Recreation Signature: ___________________________________________ Title: ________________________________________________ Date: ________________________________________ Facsimile: ____________________________________________ Phone: _______________________________________ Email: _______________________________________________ Purchase Amount: $150,000.00 REQUIRED ORDER INFORMATION: Bill To: _______________________________________________ Ship To: ____________________________________ Contact: _____________________________________________ Contact: _____________________________________ Address: _____________________________________________ Address: _____________________________________ Address: _____________________________________________ Address: _____________________________________ City, State, Zip: _______________________________________ City, State, Zip: ___________________________________ Tel: ___________________________________________________ Tel: ________________________________________ (For Accounts Payable) (To call before delivery) Email: ________________________________________________ Email: _______________________________________ COLOR SELECTIONS: _______________________________________________________________________________________ SALES TAX EXEMPTION CERTIFICATE #: ____________________________________ (PLEASE PROVIDE A COPY OF CERTIFICATE) NOTE: IF INSTALLATION IS BEING QUOTED, THERE WILL BE A BACKCHARGE FOR THE INSTALLATION TO BE DONE THROUGH FELT, PEASTONE, SURFACING, OR WOODCHIPS. PRICING VALID FOR 30 DAYS FROM THE DATE OF QUOTATION UNLESS OTHERWISE NOTED. ANY MODIFICATIONS TO AN ACCEPTED QUOTATION MUST BE DOCUMENTED IN WRITING OR WITH A NEW OR SEPARATE QUOTE. VERBAL MODIFICATIONS TO PREVIOUSLY SIGNED QUOTES WILL NOT BE ACCEPTED. Page 4 of 4 Page 191 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Rezoning of properties on Beach St, Indiana Ave, Ohio Ave, Simpson Ave, and Nelson St from R-1 to R-2. Submitted by: Mike Franzak, Planning Director Department: Planning Brief Summary: Staff initiated request to rezone the following properties from R-1, Low Density Single-Family Residential to R-2, Medium Density Single Family Residential: 1510, 1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616, 1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach Street; 3660 Indiana Avenue; 1360,1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516, 1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600, 1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666, 1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691 Simpson Avenue. Detailed Summary & Background: Staff has received several calls over the past year from property owners in this area that had some concerns about their R-1 zoning designation. Many properties within this focus area are considered “legally non-conforming” because their lots do not meet the minimum lot size requirements (minimum of 50 feet of street frontage and 6,000 sf total). Some property owners were having difficulties with financing options since they would not be able to rebuild after a disaster without a variance from the Zoning Board of Appeals. A couple property owners were inquiring about splitting their large lots, only to find that they were just short on the amount of land needed for two lots. This would not allow more housing types (duplexes, etc), it only modifies the size of a buildable lot. A focus group was held in March with the property owners. The Planning Commission unanimously recommended approval of the rezoning at their May meeting. Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted Item: N/A Yes No N/A X Fund(s) or Account(s): Budget Amendment Needed: N/A Yes No N/A X Recommended Motion: To approve the rezonings as listed in the packet. Page 192 of 207 Approvals: Guest(s) Invited / Presenting: Immediate Division X Head No Information Technology Other Division Heads X Communication Legal Review Page 193 of 207 PARCELS SMALLER THAN 6000 SQFT CURRENT NON-BUILD PARCELS Page 194 of 207 PARCELS THAT COULD BE SPLIT CURRENTLY Page 195 of 207 PARCELS THAT COULD BE SPLIT W/ R-2 Page 196 of 207 CURRENTLY VACANT PARCELS Page 197 of 207 PLANNING COMMISSION PACKET EXCERPT May 16, 2024 Hearing, Case 2024-09: Staff initiated request to rezone the following properties from R-1, Low Density Single-Family Residential to R-2, Medium Density Single Family Residential: 1510, 1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616, 1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach Street; 3660 Indiana Avenue; 1360, 1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516, 1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600, 1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666, 1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691 Simpson Avenue. SUMMARY 1. Staff has received several calls over the past year from property owners in this area that had some concerns about their R-1 zoning designation. Many properties within this focus area are considered “legally non-conforming” because their lots do not meet the minimum lot size requirements (minimum of 50 feet of street frontage and 6,000 sf total). Some property owners were having difficulties with financing options since they would not be able to rebuild after a disaster without a variance from the Zoning Board of Appeals. A couple property owners were inquiring about splitting their large lots, only to find that they were just short on the amount of land needed for two lots. 2. After receiving a high number of calls regarding this issue, staff decided to hold a focus group with property owners in the vicinity of the area. At the meeting, staff proposed the idea of rezoning these proposed parcels from R-1 to R-2. A majority of the focus group appeared to be in agreeance of staff’s proposal. There were a few focus group members that were against including six properties that front Harbour Towne Circle and staff agreed with their stance, so staff removed the properties from the request (see map on following pages to see which properties were removed). Staff offered to let the focus group take some time to think about the proposal and contact staff with any questions over the next month. Staff did not receive any additional questions this time and has brought the case forward. 3. The only difference between R-1 and R-2 zoning designations is the minimum lot size requirements. R-1 lots must have a minimum 50 feet of street frontage and 6,000 sf total. R-2 lots must have a minimum 40 feet of street frontage and 4,000 sf total. Both zoning designations only allow for single-family units for residential development. 4. Please see the enclosed “Scenario Maps” that depict different scenarios on these lots under R-1 and R-2 zoning designations. 5. Notice was sent to all properties within 300 feet of the focus area. At the time of this writing, staff had not received any comments. Page 198 of 207 Zoning Map Aerial Map Properties (noted in blue) removed from Page 199 of 207 the request after the focus group meeting. DELIBERATION The following proposed motion is offered for consideration: I move that the request to rezone the following properties from R-1, Low Density Single Family Residential to R-2, Medium Density Single Family Residential be recommended to the City Commission for approval: 1510, 1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616, 1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach Street; 3660 Indiana Avenue; 1360, 1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516, 1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600, 1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666, 1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691 Simpson Avenue. Page 200 of 207 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 1510, 1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616, 1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach Street; 3660 Indiana Avenue; 1360, 1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516, 1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600, 1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666, 1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691 Simpson Avenue. from R-1 to R-2 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 from R-1 to R-2. This ordinance adopted: Ayes: Nayes: Adoption Date: Effective Date: First Reading: Second Reading: CITY OF MUSKEGON By: __________________________ Ann Meisch, MMC City Clerk Page 201 of 207 CERTIFICATE (Rezoning 1510, 1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616, 1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach Street; 3660 Indiana Avenue; 1360, 1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516, 1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600, 1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666, 1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691 Simpson Avenue R-1 to R-2) 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 28th day of May, 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: ___________________, 2024 ________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish Notice of Adoption to be published once within ten (10) days of final adoption. Page 202 of 207 CITY OF MUSKEGON NOTICE OF ADOPTION Please take notice that on May 28, 2024, the City Commission of the City of Muskegon adopted an ordinance amending the zoning map to provide for the change of zoning for 1510, 1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616, 1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach Street; 3660 Indiana Avenue; 1360, 1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516, 1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600, 1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666, 1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691 Simpson Avenue. from R-1 to R-2: 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 ____________________, 2024 By ___________________________ Ann Meisch, MMC City Clerk --------------------------------------------------------------------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE. Account No. 101-80400-5354 Page 203 of 207 PARCELS THAT COULD BE SPLIT W/ R-2 NOT AFFECTED BY HOUSE PLACEMENT Page 204 of 207 Agenda Item Review Form Muskegon City Commission Commission Meeting Date: May 28, 2024 Title: Juneteenth Resolution Submitted by: Jonathan Seyferth, City Manager Department: Manager's Office Brief Summary: Updated Juneteenth Resolution per Mayor's request. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: Key Focus Areas: Goal/Action Item: 2027 Goal 3: Community Connection Amount Requested: Budgeted Item: Yes No N/A x Fund(s) or Account(s): Budget Amendment Needed: Yes No N/A x Recommended Motion: To adopt the Juneteenth Resolution as presented Approvals: Guest(s) Invited / Presenting: Immediate Division Head No Information Technology Other Division Heads Communication Legal Review Page 205 of 207 CITY OF MUSKEGON RESOLUTION HONORING JUNETEENTH NATIONAL INDEPENDENCE DAY WHEREAS, the United State of America formally recognized Juneteenth, celebrated on June 19, as a federal holiday with the signing of the Juneteenth National Independence Day Act on June 17, 2021, commemorating the emancipation of enslaved African Americans; and WHEREAS, news of the end of slavery did not reach the frontier areas of the United States, in particular the State of Texas and the other southwestern states, until months after the conclusion of the Civil War, more than 2 ½ years after President Abraham Lincoln issued the Emancipation Proclamation on January 1, 1863; and WHEREAS, on June 19, 1865, Union soldiers, led by Major General Gordon Granger, arrived in Galveston, Texas, with news that the Civil War had ended and that more than 200,000 enslaved African Americans were finally free; and WHEREAS, African Americans who had been slaves in the Southwest celebrated June 19, commonly known as Juneteenth Independence Day, as inspiration and encouragement for future generations; and WHEREAS, African Americans from the Southwest have continued the tradition of observing Juneteenth Independence Day for over 150 years; and WHEREAS, 45 States and the District of Columbia have designated Juneteenth Independence Day as a special day of observance in recognition of the emancipation of all slaves in the United States; and WHEREAS, Juneteenth Independence Day celebrations have been held to honor African American freedom while encouraging self-development and respect for all cultures; and WHEREAS, the faith and strength of character demonstrated by former slaves and the descendants of former slaves, along with their great many contributions to America, remain an example for all people of the United States and around the world, regardless of background, religion, or race; and WHEREAS, slavery was not officially abolished until the ratification of the 13th Amendment to the Constitution of the United States in December 1865; and WHEREAS, over the course of its history, the United States has grown into a symbol of democracy and freedom around the world; and WHEREAS, Juneteenth Independence Day provides an opportunity for Muskegon residents and all Americans to learn more about the past and to better understand the experiences that have shaped the United States. Page 206 of 207 NOW, THEREFORE, BE IT RESOLVED that the City Commission for the City of Muskegon respectfully honors and acknowledges the 19th day of June as Juneteenth National Independence Day; and that in recognition, honor, and acknowledgement of the official federal holiday, Juneteenth National Independence Day, the City of Muskegon will fly the Juneteenth Flag at Hackley Park in Muskegon on Wednesday, June 19, 2024. The foregoing Resolution was offered by ______________________ and supported by ____________________ and same was duly passed at a general session of the City of Muskegon City Commission, with the vote as follows: Yeas: Nays: Absent: CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on May 28, 2024. By: _______________________________ Kenneth D. Johnson, Mayor By: ________________________________ Ann Marie Meisch, MMC – City Clerk Page 207 of 207
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