City Commission Packet Archive 05-27-2025

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                 May 27, 2025 @ 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. David Wendtland Proclamation Manager's Office
☐   PUBLIC HEARINGS:
    A. FY 2025-26 Budget Manager's Office
☐   FEDERAL/STATE/COUNTY OFFICIALS UPDATE:

☐   PUBLIC COMMENT ON AGENDA ITEMS:

☐   CONSENT AGENDA:
    A. Approval of Minutes City Clerk
    B. Parking Enforcement Management System Public Safety
    C. Sale of 280, 290, 300, 310, & 370 Allen Planning
    D. Contract with Pioneer Resources for Transit Services Manager's Office
    E. Juneteenth Resolution 2025 Manager's Office
    F. Recognizing June as Pride Month Manager's Office
    G. Rezoning of 236 Monroe Ave. Planning
    H. Amendment to the zoning ordinance, definition of "family." Planning
    I. Amendment to the zoning ordinance, creating regulations for "single-
       room occupancy homes" and "rooming houses." Planning



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     J. Resolution for 350 W Western Ave Social District Permit Community
        Engagement
     K. Contract Award: H92405 Sun Dolphin and Oak Resurfacing DPW-
        Engineering
     L. Lakeshore Art Festival Liquor License Application DPW- Parks
     M. PILOT Agreement for Park Terrace Aparments Aquisition Economic
        Development
     N. Municipal Services Agreement for Park Terrace Apartments Acquisition
        Economic Development
     O. PILOT Agreement for Village at Park Terrace Acquisition Economic
        Development
     P. Municipal Services Agreement for Village at Park Terrace Acquisition
        Economic Development
     Q. Amendment to City of Muskegon PILOT Ordinance for Definitions to
        Residential Housing Projects and Payment in Lieu of Taxes Economic
        Development
     R. Sale of Foreclosed Home at 1285 Langeland to Previous Owner for
        $7,500 Economic Development
☐    UNFINISHED BUSINESS:

☐    NEW BUSINESS:

☐    ANY OTHER BUSINESS:

☐    GENERAL PUBLIC COMMENT:
► 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. ►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


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participant will then receive a zoom link which will allow them to watch live and give
comment. Contact information is below. For more details, please visit:
www.shorelinecity.com
The City of Muskegon will provide necessary reasonable auxiliary aids and services, such
as signers for the hearing impaired and audio tapes of printed materials being
considered at the meeting, to individuals with disabilities who want to attend the
meeting with twenty-four (24) hours’ notice to the City of Muskegon. Individuals with
disabilities requiring auxiliary aids or services should contact the City of Muskegon by
writing or by calling the following:

Ann Marie Meisch, MMC. City Clerk. 933 Terrace St. Muskegon, MI 49440. (231)724-6705.
clerk@shorelinecity.com




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                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025            Title: David Wendtland Proclamation

Submitted by: Jonathan Seyferth, City Manager    Department: Manager's Office

Brief Summary:
Former City Manager Dave Wendtland passed away recently. This is a proclamation to honor his
service to the City of Muskegon, which extended well beyond his time as City Manager, and to
dedicate a memorial bench in his honor at Lighthouse Park near his home in the Beachwood Bluffton
Neighborhood.

Detailed Summary & Background:

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:


Goal/Action Item:

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 resolution honoring former City Manager Dave Wendtland and place a memorial
bench in his honor at Lighthouse Park.

Approvals:                                       Guest(s) Invited / Presenting:
Immediate Division
Head                                               No

Information
Technology
Other Division Heads
Communication
Legal Review



                                                                                           Page 4 of 158
                          Proclamation Honoring David Wendtland
                     for His Dedicated Service to the City of Muskegon

WHEREAS, David Wendtland brought to the City of Muskegon a distinguished career in public
service, having served in multiple communities across Wisconsin and Pennsylvania before
being appointed City Manager of Muskegon in February 1990; and

WHEREAS, during his tenure as City Manager from 1990 to 1994, David provided thoughtful,
stable, and visionary leadership during a time of significant civic and economic transition,
playing a key role in advancing development initiatives and improving city operations; and

WHEREAS, after his tenure as City Manager, David and his family chose to make Muskegon
their permanent home. He continued his commitment to the greater community as President of
the Muskegon Economic Growth Alliance, fostering private investment and supporting local
business growth; and

WHEREAS, David’s dedication to public service extended well into retirement, including 15
years of service on the City of Muskegon’s Civil Service Commission beginning in 2010.
Through his steadfast leadership, he championed fairness and transparency in city employment
practices, serving with honor and integrity until stepping down in April 2025; and

WHEREAS, David also demonstrated a personal commitment to his neighborhood and public
spaces by voluntarily maintaining and caring for Lighthouse Park, which he lived next to for
many years. He played a critical role in working with the United States Coast Guard to secure
the donation of the park to the City of Muskegon, ensuring public access and enjoyment for
future generations; and

WHEREAS, in recognition of his deep care for the park and his legacy of stewardship, the City
of Muskegon will honor David Wendtland with the installation of a memorial bench at Lighthouse
Park. The bench will be placed on the hillside overlooking the channel, offering a peaceful place
for visitors to rest and enjoy the scenic views that David so loved and helped preserve;

NOW, THEREFORE, BE IT RESOLVED, that the City of Muskegon extends its heartfelt
gratitude and deep appreciation to David Wendtland for his outstanding service, dedication, and
lasting contributions to our community.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the official seal of the City
of Muskegon to be affixed this 27th day of May, 2025.

                                                    I hereby set my hand and cause the Seal of
                                                    the City to be affixed on May 27, 2025.


                                                           By: ______________________
                                                               Kenneth D. Johnson, Mayor
                                                               City of Muskegon, MI




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                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025                 Title: FY 2025-26 Budget

Submitted by: Jonathan Seyferth, City Manager         Department: Manager's Office

Brief Summary:
Presenting a draft of the Fiscal Year 2026 budget - the total appropriation across all funds is $111.9
million, with $44.1 million appropriated from the general fund.

Detailed Summary & Background:
Staff will present the Fiscal Year 2026 budget, which was distributed to the commission on May 12,
2025. This will be a public hearing with discussion only. The budget will again be a discussion item at
our June 9, 2025, work session, with action on the budget anticipated for June 10, 2026. The General
Fund budget is presented with a budget surplus (in the black) of $232,972.

Because of the size of the budget document, please follow this link to the DRAFT FY 2025-26 Budget
Book.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:


Goal/Action Item:
2027 Goal 4: Financial Infrastructure

Amount Requested:                                     Budgeted Item:
$111,977,810 across all funds, $44,102,840 in the      Yes       X   No            N/A
general fund.

Fund(s) or Account(s):                                Budget Amendment Needed:
All City Funds                                         Yes           No       X    N/A

Recommended Motion:
none - discussion only

Approvals:                                            Guest(s) Invited / Presenting:
Immediate Division         X
Head                                                    No

Information
Technology



                                                                                               Page 6 of 158
Other Division Heads   X
Communication          X
Legal Review




                           Page 7 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025             Title: Approval of Minutes

Submitted by: Ann Meisch, City Clerk              Department: City Clerk

Brief Summary:
To approve minutes of the May 12, 2025, Worksession Meeting, and the May 13, 2025, City
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   x

Fund(s) or Account(s):                            Budget Amendment Needed:
                                                   Yes           No            N/A   x

Recommended Motion:
Approval of the minutes.

Approvals:                                        Guest(s) Invited / Presenting:
Immediate Division
Head                                                No

Information
Technology
Other Division Heads
Communication
Legal Review




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     CITY OF MUSKEGON
CITY COMMISSION WORKSESSION
               May 12, 2025 @ 5:30 PM
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440
                                 MINUTES
Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners
Katrina Kochin, Willie German, Jr., Destinee Keener, Jay Kilgo, and Rachel
Gorman, City Manager Jonathan Seyferth, and City Clerk Ann Marie Meisch

2025-37 NEW BUSINESS

    A. Apple Avenue Resolutions of Support Public Works
Dan VanderHeide, Director of Public Works, presented two resolutions for
discussion, including a resolution expressing support for MDOT's design of the
roadway, the City's cost share of certain items, and a resolution expressing a
desire to take ownership of Apple Avenue within the City limits after the
construction project is complete.
Staff presented background information and supporting documents for the
Commission's consideration.

PUBLIC COMMENT
Public comments received.

ADJOURNMENT
The Commission Worksession meeting adjourned at 6:40 p.m.




                                       Respectfully Submitted,



                                       Ann Marie Meisch, MMC City Clerk




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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                May 13, 2025 @ 5:30 PM
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440
                                   MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, May 13, 2025.
Pastor E. J. Wood from All Shores Wesleyan Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.

ROLL CALL
Present: Vice Mayor Rebecca St. Clair, Commissioners Jay Kilgo, Destinee
Keener, Willie German, Jr., Rachel Gorman, and Katrina Kochin, City Manager
Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch
Absent: Mayor Ken Johnson

2025-38 PUBLIC HEARINGS

    A. Brownfield Plan Amendment- 351 W. Western Ave., 351 Phase II,
       LLC Economic Development
351 Phase II, LLC is requesting consideration of their brownfield plan amendment
for the redevelopment project located at 351 West Western Avenue.

The City of Muskegon Brownfield Redevelopment Authority has received a
request for approval of a Brownfield Plan Amendment under Act 381 for the 351
Phase II Redevelopment Project. The proposed amendment involves the
redevelopment of approximately 0.5 acres of partially improved and vacant land
located at the corner of W. Western Ave. and 2nd Street in downtown Muskegon.

The project, led by 351 Phase II, LLC, will transform the property into a mixed-use
development featuring 64 new residential units (41 studios and 23 one-bedroom
units), and approximately 3,112 square feet of first-floor retail space. This addition
will enhance the existing Lake View Lofts project, which currently comprises 20
residential units, bringing the total to 84 units.




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Approximately 50% of the new units (32 units) will be designated for tenants
earning 120% of the area median income or less for a period of 30 years. The
project is expected to commence in summer/fall 2025 and be completed within
a 15-month construction period. The total capital investment is estimated at $27.7
million. The amendment allows for the use of tax increment financing (TIF) to
reimburse the developer for eligible activities totaling $6,540,560. This includes
baseline environmental assessment activities, housing development activities, site
preparation, infrastructure improvements, and potential rent loss. The Brownfield
Redevelopment Authority's administrative costs are expected to be $384,333 and
$353,829 for the Local Brownfield Revolving Fund.

STAFF RECOMMENDATION: I move to close the public hearing and approve the
Brownfield Plan Amendment for 351 Phase II, LLC.
The public hearing opened to hear and consider any comments from the
public. No public comments were made.

Motion by Commissioner Keener, second by Commissioner German, to close the
public hearing and approve the Brownfield Plan Amendment for 351 Phase II, LLC.
ROLL VOTE:   Ayes: Kilgo, Keener, German, Gorman, Kochin, and St.Clair
             Nays: None
MOTION PASSES

    B. Neighborhood Enterprise Zone Certificate - 1542 Adams Ave. Economic
       Development
The staff are requesting the approval of a Neighborhood Enterprise Zone (NEZ)
certificate for 15 years for a new construction home at 1542 Adams Ave.
An application for a Neighborhood Enterprise zone (NEZ) certificate has been
received from Stephens Homes and Investments for a new construction home at
1542 Adams Ave. The cost of construction is $130,000. The applicant has met local
and state requirements for the issuance of the NEZ certificate.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
Neighborhood Enterprise Zone (NEZ) certificate for 15 years at 1542 Adams Ave.
and authorize the City Clerk and Mayor to sign the certificate and resolution.
The public hearing opened to hear and consider any comments from the
public. No public comments were made.

Motion by Commissioner Kilgo, second by Commissioner Gorman, to close the
public hearing and approve the Neighborhood Enterprise Zone (NEZ) certificate
for 15 years at 1542 Adams Ave. and authorize the City Clerk and Mayor to sign
the certificate and resolution.
ROLL VOTE:   Ayes: Kilgo, Keener, German, Gorman, Kochin, and St.Clair


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             Nays: None
MOTION PASSES

    C. Neighborhood Enterprise Zone Certificate - 397 Marquette Ave. Economic
       Development
The staff are requesting the approval of a Neighborhood Enterprise Zone (NEZ)
certificate for 15 years for a new construction home at 397 Marquette Avenue.
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been
received from LRS Enterprises LLC for a new construction home at 397 Marquette
Ave. The cost of construction is $180,000. The applicant has met local and state
requirements for the issuance of the NEZ certificate.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
Neighborhood Enterprise Zone (NEZ) certificate for 15 years for 397 Marquette
Ave. and authorize the City Clerk and Mayor to sign the certificate and resolution.
The public hearing opened to hear and consider any comments from the
public. No public comments were made.

Motion by Commissioner Kochin, second by Commissioner German, to close the
public hearing and approve the Neighborhood Enterprise Zone (NEZ) certificate
for 15 years for 397 Marquette Ave. and authorize the City Clerk and Mayor to
sign the certificate and resolution.
ROLL VOTE:   Ayes: Keener, German, Gorman, Kochin, St.Clair, and Kilgo
             Nays: None
MOTION PASSES

    D. Neighborhood Enterprise Zone Certificate - 303 Terrace Point
       Circle Economic Development
Staff is requesting the approval of a Neighborhood Enterprise Zone (NEZ)
certificate for 12 years for a new construction home at 303 Terrace Point Circle.
An application for a Neighborhood Enterprise Zone (NEZ) certificate has been
received from Greg and Karen Wing for their home located at 303 Terrace Point
Circle. The estimated cost of construction exceeds $300,000, and the home
received a Certificate of Occupancy on November 11, 2019. The original NEZ
application was submitted to the City of Muskegon in 2023 but was not processed
or forwarded to the State due to an internal clerical error. A letter from the City
acknowledging this oversight is included with this item. After consultation with the
Michigan Department of Treasury, the applicants were advised to reapply.
However, the State Tax Commission has noted that while reapplication is
permitted, approval is not guaranteed.
STAFF RECOMMENDATION: I move to close the public hearing and approve the


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Neighborhood Enterprise Zone (NEZ) certificate for 12 years at 303 Terrace Point
Circle and authorize the City Clerk and Mayor to sign the certificate and
resolution.
The public hearing opened to hear and consider any comments from the
public. No public comments were made.

Motion by Commissioner Kilgo, second by Commissioner Kochin, to close the
public hearing and approve the Neighborhood Enterprise Zone (NEZ) certificate
for 12 years at 303 Terrace Point Circle and authorize the City Clerk and Mayor to
sign the certificate and resolution.
ROLL VOTE:   Ayes: German, Gorman, Kochin, St.Clair, Kilgo, and Keener
             Nays: None
MOTION PASSES


PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.

2025-39 CONSENT AGENDA

    A. Approval of Minutes City Clerk
To approve minutes of the April 22, 2025, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.

    B. Sale of 283 & 287 E. Walton Planning
Staff is seeking authorization to sell the City-owned vacant lots at 283 & 287 E.
Walton to Sjaarda Homes and Properties LLC (Derek Sjaarda).
Sjaarda Homes and Properties LLC (Derek Sjaarda) would like to purchase the
City-owned buildable lots at 283 & 287 E. Walton 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.
Sjaarda Homes and Properties LLC (Derek Sjaarda) will be constructing a single-
family home on each of the properties.
STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lot at 283
& 287 E. Walton to Sjaarda Homes and Properties LLC (Derek Sjaarda).

    C. Sale of 1067 Sophia Planning
Staff is requesting approval of a purchase agreement for 1067 Sophia for
$125,000.
1067 Sophia was constructed through the agreement with Dave Dusendang to
construct infill housing with ARPA funding. The offer ($125,000) is under asking



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price ($129,900).
STAFF RECOMMENDATION: To approve the Purchase Agreement for 1067 Sophia
for $125,000.

    D. Sale of 444 Adams Planning
Staff is seeking authorization to sell the City-owned vacant lot at 444 Adams to
Ryskamp Properties LLC (Dave Ryskamp).
Ryskamp Properties LLC (Dave Ryskamp) would like to purchase the City-owned
buildable lot at 444 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. Ryskamp Properties LLC
(Dave Ryskamp) will be constructing a duplex on the property.
STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lot at 444
Adams to Ryskamp Properties LLC (Dave Ryskamp).

    E. Liquid Sodium Hypochlorite Renewal Public Works
Staff is requesting authorization to renew our purchase agreement for liquid
sodium hypochlorite from Webb Chemical.

The Water Filtration Plant uses sodium hypochlorite in the production of drinking
water. The application of sodium hypochlorite is one of several crucial processes used
to inactivate or remove pathogens from the water. Since 1996, the Water Filtration
Plant has solicited competitive bids for water treatment chemicals jointly with the
cities of Grand Haven, Grand Rapids, Holland, Muskegon Heights, and Wyoming. The
City of Grand Rapids manages this bidding process and holds the master
agreement. Bids were solicited for a one-year contract with the option to renew for
two additional one-year terms. Webb Chemical’s bid has no price increases for the
one-year duration of the contract and is overall the cheapest bidder. Webb
Chemical is a local supplier to Muskegon County and has supplied the cooperative
with liquid sodium hypochlorite in the past. Staff recommends we continue with the
cooperative and renew Webb Chemical as our supplier.

                                                1-Year          2-Year
                                                ($/ton)         ($/ton)
            Alexander Chemical Corp             387.23          407.19
            JCI Jones Chemicals Inc             374.14          374.14
            Rowell Chemical                     447.00          No Bid
            Webb Chemical Service Corp          366.00          366.00
The Water Filtration Plant has used an average of 450 tons of liquid sodium
hypochlorite in the previous three fiscal years. With this renewal, our estimated cost
would remain at $164,700.00 for the renewed one-year contract. Liquid sodium
hypochlorite is included in the budget, but the actual amount spent will depend on
water demand and source water quality.



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STAFF RECOMMENDATION: I move to authorize staff to participate in the treatment
plant purchase cooperative and renew our purchase agreement for liquid
sodium hypochlorite with Webb Chemical.

     F. Contractor selection- 1698 Wood St. Community & Neighborhood Services
Select contractor to complete lead abatement and general contracting work.
The CNS department purchased a vacant house at 1698 Wood Street for $65,000. The
purpose is to rehab the property and sell it to an income-eligible family.
HOME guidelines require that a lead risk assessment be conducted. The risk
assessment identified significant amounts of lead throughout the house. In January
2025, an RFP was published to request bids for the lead remediation work and
general rehab work for a 4-bedroom, 2-bath accessible home.
Bids were received from 3 contractors. The evaluation of the bids showed that the
contractors did not submit complete bid packets. Also, the rehab amounts were
much higher than anticipated.
Bids were then evaluated by additional CNS staff, who also consulted with SafeBuilt
for an opinion of the cost. Staff conducted an itemized cost comparison by
comparing bids from other lead projects with these bids. It was determined that the
line items were comparable in cost to other lead work by the same contractors.
Part of the request for bids is for electrical work, plumbing and HVAC. To ease the
time burden on staff, the hope was to have the general contractor hire and manage
the individual trades throughout the rehab process. To determine if the bids for these
parts of the project were reasonable, HVAC, plumbing and electrical contractors
were invited to bid on that part of the project. The following is the breakdown:

Trade              Contractor           Type of Contractor         Cost
Plumbing           Badgerow’s B&R       Lead and General           $20,000
                  Nassau              Lead and General           $21,860
                  Across the Board     Lead and General           $18,750
                  Andy’s Plumbing      Plumber                  $19,000

HVAC               Badgerow’s B&R       Lead and General          $8,000
                  Nassau              Lead and General          $22,000
                  Across the Board     Lead and General          $30,000
                  Jewett               Heating and Cooling       $9,145

Electrical         Badgerow’s B&R        Lead and General           $20,000
                  Nassau              Lead and General           $22,000
                  Across the Board     Lead and General           $30,000
                  Belasco Electric     Electrical               $19,175

After reviewing the additional bids, it was determined that, while not a huge savings,
it would save a few hundred dollars if CNS hires the specialized contractors directly.
CNS staff also scheduled an inspection of the roof to determine its condition and
need for repairs. The roofing contractor was able to confirm that the house has a
fairly new roof. It was installed correctly and does not need to be replaced at this


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time. A couple of repairs are needed, but this will be a cost savings of at least
$13,000.
All the existing windows have tested positive for lead, which is a very expensive part
of the project. To save money, staff created a new floor plan that eliminated 10
windows. This saves about $15,000.
Unfortunately, while doing the contractor walk-throughs, questions were raised about
the height of the second-floor ceiling. Staff requested an evaluation by SafeBuilt, and
they concluded that the ceiling is too low to have rooms on this floor. The scope of
work had to be changed to include properly raising and insulating the ceiling. This
added costs to the rehab work.
A revised RFP went out at the end of March. CNS received 3 bids. Two for the lead
and general and one for just the general rehab work. The project has been awarded
to Badgerow’s Building and Remodeling at a total cost of $204,150 for the general
rehab and lead remediation.
While the cost of the project is significantly higher than originally expected, the
revised scope of work saves a considerable amount of money.
A breakdown of the bids received in February and April is below.
                      Lead                  General Rehab
 Contractor           Remediation           Total         Project Total
 Feb 2025 Bids
 Badgerow's B&R       $97,200.00            $202,150.00           $299,350.00
 Nassau
 Construction         $79,980.00            $205,444.00           $285,424.00
 Across the Board     $82,100.00            $232,175.00           $314,275.00
 CTI                  $0.00                 $0.00                 $0.00
 April 2025 Bids
 Badgerow's B&R       $61,250.00            $142,900.00           $204,150.00
 Nassau
 Construction         $79,980.00            $177,084.00           $257,064.00
 Across the Board     $0.00                 $0.00                 $0.00
 CTI-submitted for
 general rehab
 only                 $0.00                 $366,030.00

TOTAL PROJECT COSTS
 TOTAL PROJECT $251,470.00
Lead Remediation   $61,250
General Rehab      $142,900
HVAC              $9,145
Electrical        $19,175
Plumbing          $19,000




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STAFF RECOMMENDATION: To approve general and trade contractors to
complete the rehabilitation of 1698 Wood St.

    J. Fleet Vehicle Replacements Public Works
Staff recommends purchasing three pickup trucks to replace aging vehicles in the
city’s fleet.
Staff recommends purchasing two 2025 Ford Maverick pickup trucks from Great
Lakes Ford at a total cost of $59,566.00 to replace aging fleet vehicles—a 2007
Ford Ranger and a 2011 Ford F-150. Three quotes were obtained from local
dealers: 2025 Ford Mavericks from Great Lakes Ford at $29,783 each, 2025 Honda
Ridgelines from Betten at $38,592.05 each, and 2024 Chevy Colorados from
Betten for $43,078.25 each.

Additionally, staff recommends purchasing one Ford F-250 pickup truck from
Gorno Ford for $55,987.00 to replace a 2011 Ford F-250. The purchase of the Ford
F-250 is being made through the MiDEAL cooperative purchasing program, which
ensures competitive pricing through publicly bid contracts.

All recommended vehicle purchases are included in the FY 2024–25 Equipment
Fund budget. The total cost for these acquisitions is $115,553.00.

STAFF RECOMMENDATION: I move to authorize staff to purchase two Ford
Mavericks from Great Lakes Ford and one Ford F-250 from Gorno Ford for a total
cost of $115,553.00.

    K. Energy Performance Contract Consultant Public Works
Staff request approval to enter into an arrangement with Johnson Controls, Inc.,
an energy service company, to prepare an energy performance contract.
An Energy Performance Contract (EPC), is a financing mechanism where an
Energy Service Company (ESCO) installs, and in some cases maintains, energy-
efficient equipment in a customer's facility and is paid for the cost of the project
with a portion of the energy savings generated. The ESCO guarantees a level of
energy savings over a specific period, and the customer pays for the project
through those savings, often without upfront capital expenditures. EPCs are
commonly used by governments to fund energy efficiency projects in their
facilities.
Staff solicited a Request for Qualifications. This included reached out to Johnson
Controls, Inc. (JCI), American Building Maintenance (ABM), and RWE Clean
Energy to specifically solicit qualifications from those firm based on prior contacts
with those firms, plus a full advertisement according to the City's standard process
(on the website, etc.). Only JCI submitted to the RFQ.
Staff recommends JCI based on our interactions with them, their work with similar
nearby organizations, and their RFQ submittal. JCI has worked with many


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                                                                                Page 17 of 158
Michigan cities on projects like the one staff envisions, and JCI staff have worked
with Muskegon Heights, Ottawa County, Marquette, and Lansing. On pages 47
and 48 of their submittal, you can see their commitment to using a local, diverse
workforce during the construction phase. Given the nature of EPC's, if the City
elects to move forward with a project in the future, Johnson Controls, Inc. (JCI) will
be the City's design-build contractor and financier. Staff has brought this item
forward now in transparency, since future requests may include exceptions to the
purchasing policy.
Staff anticipates the DPW facility as the prime target of the work, but depending
on the energy audit findings JCI may recommend projects at other facilities as
well if the savings are worth the effort. JCI will guarantee a specific level of
savings associated with the project(s) they recommend. The City and JCI would
split the savings generated by the energy-efficient equipment, the City's portion
of which is available to defray the costs of the project(s). These efforts could
allow the City to engage in activities identified in a Climate Action Plan with the
goal of reducing the City's carbon footprint and seeing energy savings. A
Climate Action Plan is being prepared and will be presented to the Commission
for review and adoption soon. Staff anticipates the Climate Action Plan will be
available for JCI to use as a resource when developing potential projects.
It's important to know that at this time, staff is only asking for approval to enter into
an exclusive arrangement with JCI, not for a specific project(s) or funds. JCI will
work with staff to perform a detailed energy audit, and based on those results
they will recommend a specific project or projects that will save the City
money. Since the savings are shared, JCI has an incentive to generate as much
savings as practical. Only at that time would staff come back with the particulars
of the project, the financing vehicle(s), the guaranteed savings and other project
information for consideration by the Commission.
STAFF RECOMMENDATION: I move to approve staff entering into an arrangement
with Johnson Controls, Inc., an energy service company, to prepare an energy
performance contract.

    L. Sick Leave Extension for Employee Public Safety
An employee is requesting an extension of sick leave.
Officer Andrew McKee is requesting an extension of sick leave. His sick leave has
currently been exhausted, but he is asking for an extension of sick leave to be
able to return to duty at full health. He is requesting this per the Police Patrol Union
contract Article 18.8: In the event of a confining illness, and provided the sick
leave accumulation has been exhausted, the City Commission may authorize an
extension of leave to the extent of five (5) days for each year of service, not to
exceed an additional sixty (60) working days. Provided, however, that, in the case
of an employee who shall have been in the City service for more than fifteen (15)
years, such additional leave may be extended not to exceed six (6) months,
instead of sixty (60) working days.


                                    Page 9 of 14

                                                                                   Page 18 of 158
Officer McKee has been an employee for 7 years and is requesting a total of 35
sick days.
STAFF RECOMMENDATION: I recommend extending 35 sick days for Officer
Andrew McKee per the Police Patrol Union contract.

    O. Concur with CRC Recommendation City Clerk
To concur with CRC recommendation to accept the resignation of Chelsea
Kelley, as Citizen At Large, from the Citizen's Police Review Board.
STAFF RECOMMENDATION: To accept the resignation of Chelsea Kelley from the
Citizen's Police Review Board.

    P. Resolution for Watch Muskegon Day Manager's Office
Approval of the resolution declaring May 22 as Watch Muskegon Day.
STAFF RECOMMENDATION: Approval of the resolution.

Motion by Commissioner German, second by Commissioner Gorman, to adopt
the consent agenda as presented minus items G, H, I, M, and N.
ROLL VOTE:   Ayes: Kochin, St.Clair, Kilgo, Keener, German, and Gorman
             Nays: None
MOTION PASSES

2025-40 ITEMS REMOVED FROM THE CONSENT AGENDA

    G. South Breakwater Pier Gate Lease Amendment Public Works
Staff requests authority to sign the included amendment to the City's lease of U.S.
Army Corps of Engineers' waterfront at Pere Marquette Beach to allow a pier
gate to be installed.
About a year ago, the Public Safety Department submitted a grant to the U.S.
Army Corps of Engineers (USACE, commonly referred to as "the Corps") for a pier
gate to be installed on the south breakwater arm at Pere Marquette
Beach. After a long deliberation, the Corps has awarded the grant to
Muskegon. Before the grant agreement can be signed and the pier gate
installed, the lease the City holds with the Corps that allows us to make specific
improvements to property owned by the Corps (including parts of Pere
Marquette, Margaret Drake Elliot and the Muskegon Lake Channel) needs to be
amended to allow the gate to be installed. The attached lease amendment will
make those modifications.
The Public Safety Department will work with the Corps to execute the grant, while
DPW may assist with the gate installation depending on contracting
method. Staff anticipates that specifically authorized Parks staff (such as a Park


                                 Page 10 of 14

                                                                              Page 19 of 158
Ranger) may operate the gate under the direction of Public Safety.
STAFF RECOMMENDATION: I move to approve staff to sign an amendment to the
City's lease of U.S. Army Corps of Engineers' waterfront at Pere Marquette Beach
to allow a pier gate to be installed.

Motion by Commissioner Kochin, second by Commissioner Kilgo, to approve staff
to sign an amendment to the City's lease of U.S. Army Corps of Engineers'
waterfront at Pere Marquette Beach to allow a pier gate to be installed.
ROLL VOTE:   Ayes: St.Clair, Kilgo, Keener, German, Gorman, and Kochin
             Nays: None
MOTION PASSES

    H. Extension of Partnership Agreement: Boys & Girls Club of the Muskegon
       Lakeshore DPW- Parks
Staff is requesting authorization to extend our contract with the Boys & Girls Club
of the Muskegon Lakeshore for temporary staffing services during the 2025
maintenance season.
DPW typically hires up to 30 seasonal employees each year from GoodTemps
(Goodwill). The staffing provided by this agreement will take the place of an
approximately equal number of our typical seasonal employees, helping DPW fill
our roster during the labor shortage and providing employment and training for
younger community members. Temporary staffing is accounted for in the annual
budget of the departments that use these services. The employees under this
agreement are included in the parks (general) fund budget.
The Boys & Girls Club anticipates providing approximately 8 staff split in two
teams, and in consultation with DPW, identified two service areas that they would
be well suited for:
1. Landscape maintenance, waste-removal and general support in the BID area
downtown.
2. Restroom cleaning and waste removal at various parks.
STAFF RECOMMENDATION: Authorize staff to contract with the Boys and Girls Club
of the Muskegon Lakeshore for temporary staffing services during the 2025
maintenance season.

Motion by Commissioner Kochin, second by Commissioner German, to authorize
staff to contract with the Boys and Girls Club of the Muskegon Lakeshore for
temporary staffing services during the 2025 maintenance season with the youth
rate of $12.34 an hour to start.
ROLL VOTE:   Ayes: Kilgo, Keener, German, Gorman, Kochin, and St.Clair
             Nays: None



                                 Page 11 of 14

                                                                              Page 20 of 158
MOTION PASSES

    I.   Resolution for Charitable Gaming License - Restoration Restore a
         Generation City Clerk
Restoration Restore a Generation is requesting a resolution recognizing them as a
non-profit organization operating in the City for the purpose of obtaining a
gaming license. They have been recognized as a 501(c)(3) organization by the
State.
Restoration Restore a Generation provides a safe haven for all youth ages 18 and
under. The center has access to a gym, commercial kitchen, cafeteria,
classrooms, and an outdoor park. They offer meals, clothing, hygiene products,
arts & crafts, and many other activities. They will use the gaming license to raise
money for the center.
STAFF RECOMMENDATION: Approval of the resolution for a Charitable Gaming
License.

Motion by Commissioner Keener, second by Commissioner German, to approve
the resolution for a Charitable Gaming License.
ROLL VOTE:    Ayes: Kilgo, Keener, German, Gorman, Kochin, and St.Clair
              Nays: None
MOTION PASSES

    M. Resolution of Support for the Design of Apple Avenue Public Works
Staff recommends adoption of the included resolution expressing support for
MDOT's design of Apple Avenue and associated City costs.
As discussed at the Worksession meeting on May 12, 2025, this resolution expresses
support for MDOT's design of Apple Avenue, including lane reductions to three
lanes from Roberts to Terrace, and two lanes from Terrace to Webster. The City's
costs associated with utility work, statutory cost share, and other improvements
including a multi-use path along the south side of Apple are included in the
resolution for clarity. Those costs are included in the recommended FY26 budget.
STAFF RECOMMENDATION: I move to adopt the included resolution expressing
support for MDOT's design of Apple Avenue and the City's associated costs.

Motion by Commissioner Kilgo, second by Commissioner German, to adopt the
resolution expressing support for MDOT's design of Apple Avenue and the City's
associated costs.
ROLL VOTE:    Ayes: Keener, German, Gorman, Kochin, and St.Clair
              Nays: Kilgo




                                  Page 12 of 14

                                                                              Page 21 of 158
MOTION PASSES

    N. Resolution of Support for City Ownership of Apple Avenue Public Works
Staff recommends adoption of a resolution of support for City ownership of Apple
Avenue following MDOT's 2026 reconstruction project.
During design of Apple Avenue, the City heard from the community that creating
a city street instead of a state highway along the Apple Avenue corridor was a
priority. Many of the changes necessary were supported by MDOT and have
been incorporated into the current design. Some other changes MDOT has
expressed concern about, however they have made it clear that if the City were
to take ownership of Apple Avenue after the reconstruction project (removing
the M-46 designation and placing the City in full control of the street), the design
standards the project is required to use become more flexible.
Examples of items that would be affected by the City taking ownership include
the signals at Terrace Street and Pine Street. The traffic study clearly shows the
signals are not needed, nor are they needed any time soon even with models
that project increasing traffic in the area, a fact MDOT acknowledges. As far
away as 20 years from now, the study does point out that the level of service at
those two intersections would be approaching an undesirable level, assuming
traffic increases at the rate the study projects. Given this, MDOT's attitude is very
conservative, and their Lansing-based Signals Unit has decided that they would
leave the signals in place in anticipation of the situation 20 years from now. City
staff on the other hand, feel strongly that 20 years of maintaining signals together
with the neighborhood character that comes with all-way stop controls is the
preferred method for the next 20 years, which again is supported by the traffic
study. MDOT has specifically relayed that if the City takes ownership, the signals
can be removed as a part of the project. If MDOT remains in control, the signals
will remain.
Other items that would be affected are less specific, but they are real. Currently,
MDOT permits all activity along Apple Avenue. The City would have that right in
the future. This could make it easier for residents and businesses to make small
changes to Apple. If a Corridor Improvement Authority or Business Improvement
District were established in the future to fund landscaping and lighting
improvements (similar to Lakeside), that group would likely find it easier to work
with the City than MDOT, given the difference in rules and regulations each entity
is subject to. Future City-led efforts to make changes to Apple would also be
simpler and potentially less costly.
The benefits of ownership do come at a cost. While the City would continue to
receive the same amount of gas tax money for Apple Avenue as we do today,
we would no longer be reimbursed by MDOT for the maintenance we do on
Apple. The maintenance necessary would start to come from the gas tax money
we receive for Apple. Staff estimates the change per year with all factors
considered is approximately $100,000 to the major street fund (202). Future


                                  Page 13 of 14

                                                                                Page 22 of 158
capital costs would also be on the City, although a portion of those costs would
likely be recoverable through federal distributions (at an opportunity cost for other
major streets).
STAFF RECOMMENDATION: I move to adopt the included resolution of support for
City ownership of Apple Avenue after MDOT's 2026 reconstruction project.

Motion by Commissioner Keener, second by Commissioner German, to adopt the
resolution of support for City ownership of Apple Avenue after MDOT's 2026
reconstruction project.
ROLL VOTE:   Ayes: German, Gorman, St.Clair, and Keener
             Nays: Kochin and Kilgo
MOTION PASSES
GENERAL PUBLIC COMMENT
Public comments received.
ADJOURNMENT
The City Commission meeting adjourned at 8:24 p.m.



                                       Respectfully Submitted,



                                       Ann Marie Meisch, MMC City Clerk




                                 Page 14 of 14

                                                                               Page 23 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025               Title: Parking Enforcement Management System

Submitted by: Timothy Kozal, Public Safety          Department: Public Safety
Director

Brief Summary:
The police department is looking to switch over to a new parking enforcement management system
for paid parking to increase efficiency for our parking enforcement officers and a more user-friendly
experience for consumers.

Detailed Summary & Background:
Parking Enforcement has a contract with Passport Inc. to provide services for people to purchase
daily paid parking passes as well as pay any parking citation. Their contract expires on 07/19/2025.
We are looking into a new parking enforcement system to increase efficiency and accuracy. T2
Systems came in at the lowest bid compared to Passport and Aims Parking. T2 Systems quoted
$22,126 for the first year and a $10,764 annual cost for each year after that.

T2 Systems also has a user-friendly app for customers to purchase paid parking and a responsive
customer service team. Using the T2 Systems would still allow for annual parking passes to be
purchased at kiosks. T2 Systems would add additional options for people to purchase daily passes
using an app, pay for parking citations using an app, and parking enforcement to check parking
passes by reading license plates.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:


Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life

Amount Requested:                                   Budgeted Item:
$22,126                                             Yes

Fund(s) or Account(s):                              Budget Amendment Needed:
101-772-801                                         No

Recommended Motion:
I move to award T2 Systems with the bid for parking enforcement's management system.

Approvals:                                          Guest(s) Invited / Presenting:
Immediate Division Head and Legal Review


                                                                                            Page 24 of 158
No




     Page 25 of 158
T2 Master Customer Agreement
This Master Customer Agreement (the "Agreement") is made as a cooperative purchasing effort via Sourcewell by
and between T2 Systems, Inc. (“T2 Systems”) and City of Muskegon ("Customer") as of the Effective Date set forth
below.

1.      BACKGROUND. The Agreement establishes the overall contractual framework and the applicable terms
        and conditions. Under the Agreement, Customer may acquire or license Products and procure Services by
        entering into an Addenda. The following Addenda will be entered into by Customer and T2 Systems or one
        of its Affiliates and each will be incorporated in this Agreement herein.

        -UPsafety Software Subscription Addendum

        In the event of any conflicts in the terms of the applicable Addenda and the Agreement, the terms of the
        Addenda shall control.

2.      DEFINITIONS. In this Agreement:
       (a)      “Addenda” or “Addendum” means each document attached hereto and made part of the
                Agreement which may include a Quote, Order Form or Statement of Work, between Customer and
                T2 Systems or one of its Affiliates under this Agreement to place orders for Products and/or
                Services.
       (b)      "Affiliate" means, in respect of an entity, any entity which directly or indirectly controls, is
                controlled by, or is under common control with such entity. "Control" for purposes of this definition,
                means direct or indirect ownership or control of more than 50% of the voting interests of an entity.
       (c)      "Confidential Information" means and includes any written or orally or visually disclosed
                information relating to the disclosing party's business identified as “confidential” or “proprietary”
                or which the receiving party should reasonably know is confidential or not generally known to the
                public, including, without limitation:
                 (i)      all know-how, technology, Documentation and other proprietary information owned,
                          licensed, used or developed by the disclosing party, including proprietary rights protected
                          by trade secret and other intellectual property rights, and;
                 (ii)     all information relating to the disclosing party's business, the source code for the
                          Software, the Services, and to all other aspects of the disclosing party's structure,
                          personnel, operations, financial matters, marketing, commercial strategies, customer
                          lists, Customer Data, contractual records, correspondence, products, programs, devices,
                          concepts, inventions, designs, methods, data, and items provided to the disclosing party
                          by third parties subject to restrictions on use or disclosure.
       (d)      "Customer Data" means the data provided to T2 Systems by Customer and Customer’s authorized
                end users who access or use Software as permitted in an Addendum.




                                                                                                                 Page 26 of 158
                                                       -2-
     (e)     "Documentation" means the documentation, help files, user manuals, handbooks and any other
             written or electronic material relating to the Products and Services provided by T2 Systems to its
             customers from time to time.
     (f)     "Effective Date" means the latest of the dates on which this Agreement is executed by Customer
             and T2 Systems as indicated in the signature block at the end of these terms and conditions.
     (g)     “Hardware” means the T2 Systems hardware sold and provided by T2 Systems to Customer under
             an Addendum.
     (h)     “Products” means the T2 Systems products licensed or sold by T2 Systems to Customer under an
             Addendum including Software and Hardware.
     (i)     “Quote” or “Order Form” means the quote provided by T2 Systems to Customer related to the
             ordering of Products and/or Services as set forth in the applicable Addendum. Unless otherwise
             stated in the Quote, each Quote is incorporated and made part of the applicable Addendum.
     (j)     "Representatives" means, in respect of a party, the directors, officers, employees, agents and
             contractors of such party.
     (k)     "Services" means the T2 Systems services provided by T2 Systems to Customer under an
             Addendum.
     (l)     “Software” means the T2 Systems Software access to which is licensed by T2 Systems to Customer
             under an Addendum.
      All other terms defined in this Agreement shall have the meanings ascribed thereto.

3.    TERM. This Agreement shall commence on the Effective Date and remain in full force and effect until
      terminated in accordance with its terms.

4.    FEES AND PAYMENT.
     (a)     Customer agrees to pay to T2 Systems the fees plus all applicable taxes as set forth in the applicable
             Addendum.
     (b)     All fees are exclusive of all taxes, duties and levies of any kind, including any sales, use, excise, value-
             added and other applicable taxes, withholdings, and governmental charges (collectively, “Taxes”).
             Customer shall pay all applicable Taxes, other than taxes on T2 System’s income. If T2 Systems pays
             any such amounts on behalf of Customer, Customer shall reimburse T2 Systems upon presentation
             of proof of payment.
     (c)     If Customer claims an exemption from any such taxes, Customer shall provide to T2 Systems an
             appropriate exemption certificate. If Customer challenges the applicability of any tax, Customer
             shall nevertheless pay the same to T2 Systems and Customer may thereafter challenge the tax and
             seek a refund thereof.
     (d)     Material Adverse Change. In the event of a material adverse change, the Parties agree to
             renegotiate, in good faith, pricing of the applicable Addendum and/or Quote(s) within thirty (30)
             days of such material adverse change. For purposes of this Section 3.4, a “material adverse change”
             shall mean any event, occurrence, change in facts, conditions, or effect that has been or reasonably
             can be expected to be adverse to the Customer or the T2, and their respective businesses,
             operations, or financial conditions, including, but not limited to, a change in law that affects the
             Services or Deliverables. If the Parties cannot reach an agreement regarding renegotiated pricing
             within thirty (30) days of such material adverse change, T2 shall have the exclusive option to
             terminate this MSA and/or any Addendum hereunder upon thirty (30) days written notice

5.    OWNERSHIP.




                                                                                                                    Page 27 of 158
                                                     -3-
     (a)    Customer agrees that the Software, Documentation and Services are proprietary products and
            services of T2 Systems and that all right, title and interest in and to the Software, Documentation
            and Services, including all associated intellectual property and other proprietary rights, are and shall
            at all times remain with T2 Systems and its third party licensors. The Software contains trade secret
            and proprietary information owned by T2 Systems or its third party licensors and is protected by
            copyright laws and international trade provisions and other applicable law. Customer must treat
            the Software like any other copyrighted material and Customer may not copy or distribute the
            Software or the Documentation, electronically or otherwise, for any purpose. Any Software
            provided under an Addendum will be licensed not sold to Customer.
     (b)    Customer agrees that any copies made of the Documentation, any other T2 Systems Confidential
            Information and any other material obtained from T2 Systems shall preserve unaltered patent,
            trademark, copyright, proprietary or confidentiality notices contained therein.
     (c)    Each party recognizes and acknowledges the great value of the goodwill associated with the name
            and trademarks of the other party, and the identification of the proprietary party’s goods or services
            therewith. Each party agrees that it obtains no rights, title or interest of any kind in or to any of the
            trademarks, tradenames, logos, service marks or other markings belonging to the other party or its
            suppliers.

6.    CONFIDENTIALITY.
     (a)    Each party agrees to hold all Confidential Information of the other party in strictest confidence, not
            to make use thereof other than for the performance of this Agreement, to disclose such Confidential
            Information only to its Representatives who are under an obligation of confidentiality with respect
            thereto and who require such information for the performance of their duties, and not to disclose
            such Confidential Information to any third parties, except with the disclosing party's prior written
            consent; provided, however, that the foregoing restrictions shall not apply to Confidential
            Information of the other party:
             (i)      that is now or hereafter in the public domain through no action or failure to act on the
                      part of the receiving party or its Representatives;
             (ii)     that was received by or was available to the receiving party from a third party without
                      any obligation of confidentiality to the disclosing party;
             (iii)    that is independently developed by or for the receiving party by persons who have not
                      had access to the Confidential Information of the disclosing party; or
             (iv)     that is disclosed with the written consent of the disclosing party.
     (b)    Each party may disclose the other party’s Confidential Information pursuant to the requirement of
            a governmental agency or is required by operation of law, regulation or court order, provided that,
            whenever possible, prompt notice is given by the receiving party to the disclosing party prior to
            such disclosure so that the disclosing party may seek a protective order or other remedy.
     (c)    Each party agrees to protect and safeguard Confidential Information of the other party from loss,
            theft, destruction and inadvertent disclosure using the same degree of care as it uses to protect its
            own Confidential Information, but in no event less than a reasonable standard of care.
     (d)    Each party shall hold the other party's Confidential Information in trust for the other party and all
            right, title and interest in and to such Confidential Information shall remain with the disclosing
            party.
     (e)    Upon termination of the Agreement or an applicable Addendum, or otherwise upon the request of
            a disclosing party, the receiving party will promptly destroy all full and partial copies of the disclosing
            party's Confidential Information in its possession or control, or in the event of termination of an




                                                                                                                  Page 28 of 158
                                                     -4-
            Addendum such information provided under the applicable terminated Addendum, and certify such
            destruction in writing; provided, however, that the receiving party may retain one (1) copy for its
            internal archival purposes only, which copy shall remain subject to the obligations of confidentiality
            set out in this Section 6.

7.    CUSTOMER DATA.
     (a)    Customer shall be solely responsible for, Customer’s inputs, selection and use of the Services, and
            all data (including Customer Data), reports, statements and other content transmitted, posted,
            received or created on the T2 System through Customer’s account, even if transmitted, posted,
            received or created by a third party.
     (b)    The Software may create and store databases of personal information of Customer end-users and
            data relating to Customer on the computer system on which the Software is accessed or installed.
            Customer agrees to take all steps which it deems are appropriate to provide adequate security for
            that information.
     (c)    The parties acknowledge that at all times Customer will remain the owner of Customer Data. Except
            as otherwise set forth herein or in the applicable Addenda, T2 Systems shall not at any time use
            Customer Data or disclose Customer’s Data to any third parties, except that T2 Systems may use
            Customer Data for the purpose of meeting its obligations under an Addendum and providing the
            Services, and may store, back-up and archive Customer Data. Customer represents and warrants
            that the Customer Data does not infringe or violate the intellectual property, proprietary or
            personal rights of any third party and Customer has the right to grant T2 Systems the right to use
            the Customer Data as set forth herein.
     (d)    T2 Systems will comply with all applicable laws governing the collection, access, use, disclosure of
            Customer Data. All Customer Data which is submitted by Customer to T2 Systems pursuant to this
            Agreement will be safeguarded by T2 Systems to the same extent that T2 Systems safeguards data
            relating to its own business; provided, however, if Customer Data is publicly available, is already in
            T2 System’s possession from a source other than Customer or otherwise known to it, or was
            rightfully obtained by T2 Systems from third parties, T2 Systems hall bear no responsibility for its
            disclosure, inadvertent or otherwise. T2 Systems has implemented and will maintain administrative,
            physical and technical safeguards to protect Customer Data from unauthorized access, acquisition
            or disclosure, destruction, alteration, accidental loss, misuse or damage that are no less rigorous
            than accepted industry practices. In the event of unauthorized access to Customer Data which has
            been verified by T2 Systems, T2 Systems shall promptly i) take action to stop the unauthorized
            access, and ii) notify Customer, provide Customer with relevant details of the unauthorized access
            and an explanation of steps that T2 Systems took or is taking to stop the unauthorized access.
     (e)    T2 Systems maintains Payment Card Industry (PCI) Level One compliance and upon request (no
            more than once annually), T2 Systems will provide Customer with a copy of its third-party audit
            certification demonstrating that appropriate information security standards to protect Customer
            Data are in place.

8.    INDEMNITY.
     (a)    T2 Systems Indemnification. Subject to the limitation of liability set out in Section 11, T2 Systems
            shall indemnify, defend and hold harmless Customer, its officers, directors or employees
            (“Indemnitees”) from and against any and all direct losses, damages, costs, expenses (including
            reasonable attorneys’ fees), (collectively “Losses”), to the extent that such Losses arise directly from
            any act(s) of gross negligence or willful misconduct by T2 Systems or any of its Representatives,
            giving rise to an accident or other occurrence resulting in bodily injury or death, to any person(s)
            arising out of or related to: (i) claims for loss or damage to tangible property, and (ii) claims asserted




                                                                                                                 Page 29 of 158
                                                     -5-
            by third parties for loss or damage to tangible property; except to the extent that such Losses were
            not caused by T2 Systems .
     (b)    Intellectual Property Indemnification. Subject to the limitation of liability set out in Section 11, T2
            Systems shall indemnify, defend (at its expense) and hold the Indemnitees harmless in respect of
            any damages awarded to a third party claimant related to a determination by a court that the
            operation or use of any Software, or any part thereof, infringes any third party’s copyright, trade
            mark or trade secret or any Hardware, or any part thereof, infringes any third-party’s copyright,
            patent, trademark or trade secret.
            T2 System’s obligations pursuant to this Section 8(b) shall not apply to any infringement caused by
            or resulting from Customer modifications or attempted modifications to any relevant system,
            combination of T2’s Product or Software with hardware or software not provided by T2 Systems, or
            from Customer’s failure to implement changes or updates furnished by T2 Systems to Customer
            during the term of this Agreement.
            In the event that an injunction or order is obtained against the Customer’s use of any Product or
            Software or if, in T2 System’s opinion, any Product or Software is likely to become the subject of a
            claim of infringement or violation of any rights in connection with any rights as noted above, T2
            Systems shall, at its expense:
             (i)      procure for the Customer the right to continue using the affected Product or Software; or
             (ii)     modify or replace the affected Product or Software so that such Product or Software
                      becomes non-infringing.
            If neither Section 8(b)(i) nor Section 8(b)(ii) are commercially practicable, remove the affected
            Product or Software from the Customer and refund to the Customer all amounts paid to T2 Systems
            by the Customer in respect of such Product, less a reasonable amount for depreciation. The
            remedies in and the indemnification rights of the Customer stated in this Section 8(b) are the
            exclusive remedies available to the Customer at law or in equity for indemnifiable claims.
      (c)    Customer Responsibility. Customer agrees to be responsible any and all liabilities, obligations,
             damages, claims, suits, proceedings, costs, fees and expenses, including reasonable attorneys’ fees
             and costs, arising out of the gross negligence or willful misconduct of Customer or any of its
             Affiliates, or breach of the Agreement by Customer, or any claim by Customer end user related to
             use of end user personally identifiable information.
     (d)    Defense. If a party is alleged to be obligated to indemnify the other party hereunder, the party
            alleged to be obligated to provide indemnification shall have the right to appoint counsel of its own
            choice and in all other respects control any litigation and/or settlement thereof, provided, however,
            that any such settlement shall not bind the non-indemnifying party or obligate it to pay any monies
            without its express prior written consent. The indemnified party shall cooperate in the defense of
            any indemnified claim. If one party is notified of any potential or actual claim or liability against the
            other party or named in any suit or proceeding of any kind that could give rise to an indemnification
            claim under this Agreement or otherwise subject the other party to a suit, proceeding or claim (or
            threat thereof), the notified party shall immediately inform the other party.

9.    INSURANCE.
     (a)    During the Term of this Agreement, T2 Systems shall maintain, at its own expense, insurance which
            it deems reasonable and necessary for its business and the performance of its obligations
            hereunder. T2 Systems will, upon reasonable advanced notice, provide Customer with a copy of its
            certificate(s) of insurance.




                                                                                                                Page 30 of 158
                                                     -6-
      (b)    T2 Systems will maintain at its own expense the following insurance, with companies authorized to
             do insurance business in the any states where work is performed or eligible surplus lines insurers
             having an A.M. Best Rating of A-:VII or better, and in amounts not less than the following limits of
             coverage:
              (i)      Workers’ Compensation Insurance with statutory limits, and Employer’s Liability
                       Insurance with limits of not less than $1,000,000:
                       (A)      Employers Liability - Each Accident                   $1,000,000
                       (B)      Employers Liability - Each Employee                   $1,000,000
                       (C)      Employers Liability - Policy Limit                    $1,000,000

              T2 Systems Workers’ Compensation policy will include states appropriate for T2 Systems
              employees and operations.
              (ii)     Commercial General Liability Insurance with limits of not less than:
                       (A)      Each Occurrence Limit                                 $1,000,000
                       (B)      Personal & Advertising Injury                         $1,000,000
                       (C)      General Aggregate                                     $2,000,000
                       (D)      Products - Completed Operations Aggregate             $2,000,000

              T2 System’s Commercial General Liability policy will be issued on a form that, subject to its terms,
              conditions and exclusions insures T2 System’s liability for damages on account of bodily injury
              (including death), property damage, and personal and advertising injury.
              (iii)    Business Auto Liability Insurance covering, for liability purposes, all owned, non-owned
                       or hired automobiles, with limits of not less than $1,000,000 combined single limit of
                       liability per accident for Bodily Injury and Property Damage;
              (iv)     Customer shall be named as an additional insured under each policy, except for Workers
                       Compensation and hired and non-owned auto liability policies.
      (c)    The insurance coverage carried by T2 Systems as set forth herein shall not in any way expand T2
             Systems liability or modify or affect the limitations of liability set forth in the Agreement or any
             Addenda.

10.    EXCLUSION OF WARRANTIES.
      (a)    EXCEPT AS EXPRESSLY PROVIDED IN THE ADDENDUM APPLICABLE TO THE PRODUCTS AND/OR
             SERVICES OR AS OTHERWISE EXPRESSLY CONFIRMED IN WRITING BY T2 SYSTEMS, THE PRODUCTS
             AND SERVICES ARE PROVIDED "AS IS" WITHOUT WARRANTY OR REPRESENTATION OF ANY KIND.
             WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, T2 SYSTEMS AND ITS THIRD PARTY
             SUPPLIERS HEREBY DISCLAIM ALL OTHER REPRESENTATIONS, WARRANTIES AND CONDITIONS,
             EXPRESS OR IMPLIED, WHETHER ARISING UNDER STATUTE, FROM A COURSE OF DEALING, USAGE,
             CUSTOM OF THE TRADE OR OTHERWISE, REGARDING THE PRODUCTS OR SERVICES, THE
             DOCUMENTATION, OR ANY OTHER PRODUCTS OR SERVICES PROVIDED OR FAILED TO BE PROVIDED
             UNDER THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OR
             CONDITION OF MERCHANTABLE QUALITY, MERCHANTABILITY, DURABILITY, FITNESS FOR A
             PARTICULAR PURPOSE, NON-INFRINGEMENT, ACCESSIBILITY, PRIVACY OF FILES OR SECURITY.
      (b)    T2 SYSTEMS DOES NOT WARRANT THAT ANY PRODUCTS OR SERVICES PROVIDED HEREUNDER WILL
             BE UNAFFECTED BY BUGS, VIRUSES, ERRORS OR OTHER PROGRAM LIMITATIONS, NOR DOES T2
             SYSTEMS WARRANT THAT CUSTOMER'S USE THEREOF WILL BE UNINTERRUPTED, ERROR-FREE OR




                                                                                                              Page 31 of 158
                                               -7-
             WILL MEET ALL OF THE CUSTOMER'S REQUIREMENTS. FURTHER, T2 SYSTEMS DOES NOT WARRANT
             THAT ANY SOFTWARE WILL OPERATE ON ANY PARTICULAR CONFIGURATION OF SOFTWARE,
             OPERATING SYSTEM OR COMPUTER SYSTEM. ANY HARDWARE PURCHASED FROM SOURCES
             OUTSIDE OF T2 SYSTEMS WILL BE THE SOLE RESPONSIBILITY OF THE CUSTOMER. T2 SYSTEMS WILL
             NOT BE RESPONSIBLE FOR THE FAILURE OF THE SOFTWARE TO PERFORM TO THE EXTENT THAT
             SUCH FAILURE TO PERFORM IS DUE TO THE FAILURE OF A THIRD PARTY FUNCTION, SUCH AS
             INTERNET AVAILABILITY REQUIRED FOR THE CONNECTION BETWEEN THE HARDWARE AND
             SOFTWARE OR THE WIRELESS NETWORK AVAILABILITY REQUIRED FOR THE T2 SYSTEMS SOFTWARE
             TO BE ABLE TO SEND AND RECEIVE DATA. IN NO EVENT SHALL T2 SYSTEMS BE LIABLE FOR THE
             FAILURE OF THE SOFTWARE TO PERFORM IF SUCH FAILURE ARISES DUE TO THE COMBINATION OF
             THE SOFTWARE WITH THIRD PARTY HARDWARE OR SOFTWARE. T2 SYSTEMS SHALL NOT COVER
             REPAIR, LABOR OR REPLACEMENT OF PARTS THAT ARE BY NATURE EXPENDABLE. IN ADDITION, IF
             APPLICABLE, THE WIRELESS DATA SERVICES ARE NOT GUARANTEED AGAINST EAVESDROPPERS,
             HACKERS, DENIAL OF SERVICE ATTACKS OR INTERCEPTORS AND NEITHER T2 SYSTEMS NOR THE
             UNDERLYING WIRELESS DATA SERVICES CARRIER CAN GUARANTEE THE PRIVACY OR SECURITY OF
             WIRELESS TRANSMISSIONS.
      (c)    THIS LIMITED WARRANTY GIVES THE CUSTOMER SPECIFIC LEGAL RIGHTS. THE CUSTOMER MAY
             HAVE OTHER RIGHTS, WHICH VARY FROM LOCATION TO LOCATION, DEPENDING UPON THE
             APPLICABLE LAW OF SUCH LOCATION.

11.    LIMITATION OF LIABILITY AND DAMAGES.
      (a)    TO THE MAXIMUM EXTENT PERMITTED BY LAW: EXCEPT FOR CLAIMS FOR DEATH OR BODILY
             INJURY, T2 SYSTEMS , ITS THIRD PARTY SUPPLIERS’ AND THEIR RESPECTIVE REPRESENTATIVES’
             TOTAL AGGREGATE LIABILITY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT,
             AND/OR ANY PRODUCTS OR SERVICES DELIVERED OR FAILED TO BE DELIVERED UNDER THIS
             AGREEMENT, SHALL BE LIMITED TO THE ACTUAL DIRECT DAMAGES SUFFERED BY CUSTOMER, NOT
             TO EXCEED THE AMOUNT ACTUALLY PAID BY CUSTOMER FOR THE PRODUCT OR SERVICE GIVING
             RISE TO THE CLAIM DURING THE SIX (6) MONTHS IMMEDIATELY PRECEDING THE CLAIM.
      (b)    IN NO EVENT WILL T2 SYSTEMS OR ITS THIRD PARTY SUPPLIERS BE LIABLE IN ANY WAY FOR ANY
             INDIRECT, SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR AGGRAVATED
             DAMAGES OF ANY KIND WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR LOSS OF
             USE, DATA, INCOME, BUSINESS, PROFIT, GOODWILL, ANTICIPATED REVENUE, FAILURE TO REALIZE
             EXPECTED SAVINGS, OR OTHERWISE, HOWEVER CAUSED, WHETHER BASED ON CONTRACT, TORT
             (INCLUDING NEGLIGENCE), STRICT LIABILITY, WARRANTY, STATUTORY RIGHTS OR ANY OTHER BASIS
             ARISING OUT OF CUSTOMER’S USE OF THE PRODUCTS, OR OTHERWISE ARISING PURSUANT TO THIS
             AGREEMENT.
      (c)    WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, DUE TO THE NATURE OF INTERNET AND
             WIRELESS TRANSMISSIONS, CUSTOMER AGREES THAT NEITHER T2 SYSTEMS NOR THE UNDERLYING
             WIRELESS DATA SERVICES CARRIER SHALL BE LIABLE FOR ANY LOSS, COSTS OR DAMAGES OF ANY
             KIND ARISING OUT OF OR IN CONNECTION WITH: ANY LACK OF PRIVACY OR SECURITY OF WIRELESS
             TRANSMISSIONS; SERVICES INTEROPERABILITY, ACCESS OR INTERCONNECTIONS WITH THE T2
             SYSTEMS SERVICES; SERVICE DEFECTS, SERVICE LEVELS, DELAYS OR INTERRUPTIONS; ANY
             INTERRUPTION OR ERROR IN ROUTING OR COMPLETING CALLS OR OTHER TRANSMISSIONS; LOST
             OR ALTERED MESSAGES OR TRANSMISSIONS; OR UNAUTHORIZED ACCESS TO OR THEFT,
             ALTERATION, LOSS OR DESTRUCTION OF CUSTOMER’S CONTENT, DATA, PROGRAMS CONFIDENTIAL
             INFORMATION OR SYSTEMS.
      (d)    NO ACTION, REGARDLESS OF FORM, ARISING OUT OF THIS AGREEMENT MAY BE BROUGHT BY
             CUSTOMER MORE THAN TWELVE (12) MONTHS AFTER THE FACTS GIVING RISE TO THE CAUSE OF




                                                                                                Page 32 of 158
                                                   -8-
            ACTION HAVE OCCURRED, REGARDLESS OF WHETHER THOSE FACTS BY THAT TIME ARE KNOWN TO,
            OR OUGHT REASONABLY TO HAVE BEEN DISCOVERED BY, CUSTOMER.
      (e)   THE FOREGOING LIMITATIONS SHALL APPLY REGARDLESS OF THE CAUSE OF ACTION, WHETHER
            ARISING UNDER CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY, OR OTHERWISE,
            AND REGARDLESS OF WHETHER T2 SYSTEMS, ITS THIRD PARTY SUPPLIERS AND/OR THEIR
            REPRESENTATIVES KNEW, OR SHOULD HAVE KNOWN ABOUT THE POSSIBILITY OF SUCH DAMAGES.
      (f)   CUSTOMER AGREES THAT THE LIMITATIONS OF LIABILITY SET FORTH ABOVE ARE FUNDAMENTAL
            ELEMENTS OF THIS AGREEMENT, WITHOUT WHICH T2 SYSTEMS WOULD NOT HAVE ENTERED INTO
            THIS AGREEMENT AND/OR AGREED TO PROVIDE THE PRODUCTS AND/OR SERVICES UNDER THE
            CURRENT TERMS (INCLUDING FEES).
      (g)   THIS SECTION SHALL APPLY TO ANY ACTION OR ARBITRATION HEREUNDER. BECAUSE THE LAWS OF
            SOME LOCATIONS DO NOT ALLOW THE LIMITATION AND/OR EXCLUSION OF LIABILITY, THE ABOVE
            LIMITATION OR EXCLUSION MAY NOT APPLY TO ALL CUSTOMERS.

12.    TERMINATION.
      (a)   Each Addendum may be terminated according to its terms and the terms of this Agreement.
      (b)   In the event that there are no Addenda in effect, either party may terminate this Agreement without
            cause by written notice to the other party, which termination shall be effective as of the last day of
            the calendar month following the month in which notice of termination is received.
      (c)   Either party may terminate this Agreement or any Addendum if the other party breaches any of its
            representations or warranties, or any other material obligation under this Agreement or the
            applicable Addendum, and fails to remedy such breach with thirty (30) days of receipt of notice
            from the non-breaching party. T2 Systems shall also have the right to suspend performance of all
            or any of the Services under an Addendum, without liability, pending the rectification of any breach
            by Customer.
      (d)   Either party may terminate this Agreement or any Addendum, immediately upon written notice, if
            the other party makes an assignment for the benefit of its creditors or becomes bankrupt or makes
            an application for relief under the provisions of any statute now or hereafter in force concerning
            bankrupt or insolvent debtors, or if a receiving order or receivership order is made against the other
            party, or any action whatsoever, legislative or otherwise be taken to effect the winding up,
            dissolution, suspension of operations or liquidation of the other party. Notwithstanding the
            foregoing, the Customer shall not be entitled to terminate this Agreement under this Section if T2
            Systems, or its creditors, or some other party makes suitable provisions for the performance of its
            obligations hereunder.
      (e)   Without limiting any other remedies available under this Agreement, at law or in equity, in the event
            of the termination of this Agreement or any applicable Addendum for any reason:
             (i)      T2 System’s obligation to provide the affected Products and Services will terminate;
             (ii)     All unpaid amounts due in respect of the terminated Services up to and including the
                      effective date of termination shall, at T2 System’s option, become immediately due and
                      payable;
             (iii)    Customer is not entitled to a refund for any affected Products and Services that are in
                      process or not completed, including labor and any expenses T2 Systems may have
                      incurred up to the effective date of termination;
             (iv)     Customer must destroy any copies of the Documentation in Customer's possession in any
                      form and on any media, and certify to T2 Systems in writing that it has done so;




                                                                                                             Page 33 of 158
                                                     -9-
              (v)      Sections 4, 5, 6, 7, 8, 9, 10, 11, 12(e), and 13 shall survive the expiration or termination of
                       this Agreement until such time as the parties may agree to the release of the obligations
                       contained therein.
      (f)    No Limitation of Remedies. Any termination of the Agreement shall not in any respect limit any of
             either party's rights or remedies either in law or in equity or relieve either party of any obligation
             incurred prior to the effective date of such termination.

13.    DISPUTE RESOLUTION.
      (a)    Dispute Resolution. In the event of any dispute arising out of this Agreement (including all
             Addenda), the parties shall use commercially reasonable efforts to negotiate a settlement in good
             faith satisfactory to both parties. If they do not reach a solution within a period of sixty (60) days
             (or such other longer period as the parties may agree), then either party may, on written notice to
             the other party, refer the dispute for settlement by arbitration before a single arbitrator in
             accordance with the rules of the American Arbitration Association. The costs of the arbitrator will
             be borne equally by the parties, but they will otherwise bear their respective costs incurred in
             connection with the arbitration. The parties shall select the arbitrator promptly and use
             commercially reasonable efforts to conduct the arbitration hearing no later than three (3) months
             after the arbitrator is selected. The arbitrator may not award punitive or exemplary damages
             against either party or any other relief in excess of the limitations set forth herein. The judgment
             and award of the arbitrator will be final and binding on each party. Judgment upon the award may
             be entered in any court having jurisdiction, or application may be made to such court for judicial
             acceptance of the award and/or an order of enforcement as the case may be.
      (b)    Injunctive Relief. Each party acknowledges and agrees that a breach of the obligations under
             Section 5 (“Ownership”) and Section 6 (“Confidentiality”) may cause irreparable harm and
             significant injury to the affected party that would not be adequately compensated by an award of
             money damages and, in addition to any other remedy available at law or in equity, and
             notwithstanding the provisions of Section 13(a), the affected party will be entitled to seek
             temporary and permanent injunctive relief from any court of competent jurisdiction to prevent
             breaches hereunder, without showing or proving any actual or threatened damage.
      (c)    Choice of Law. This Agreement and all Addenda are governed by the laws of the State of Indiana.

14.    GENERAL PROVISIONS.
      (a)    Assignment. T2 Systems may assign its rights and obligations under this Agreement. Customer may
             not assign or transfer any of its rights or obligations under this Agreement to any person without
             the express prior written consent of T2 Systems.
      (b)    Entire Agreement. Customer acknowledges that this Agreement including all Addenda, SOW’s,
             Quotes and other attachments referencing this Agreement, comprise the entire understanding and
             agreement between parties regarding the Products and Services to be provided hereunder and
             supersedes all prior written and oral agreements, purchase orders, proposals, representations,
             understandings, promises, descriptions or other communications between the parties regarding the
             same. If Customer submits an order form with contrary terms or conditions, such order form shall
             be considered only as confirmation of the order and shall in no way amend, prevail over,
             supplement, or supersede any of the provisions of this Agreement or any Addenda.
      (c)    Piggyback Cooperative Purchasing. It is understood and agreed by Customer that a third party may
             purchase the goods and services specified herein in accordance with the terms and conditions of
             this Agreement for the purposes of piggyback purchasing. It is also mutually understood and agreed
             the third party will issue its own purchasing documents for the goods and services, be invoiced
             therefrom and make its own payments to T2 Systems in accordance with the terms of the contract




                                                                                                                 Page 34 of 158
                                             - 10 -
      established between the third party and T2 Systems. T2 Systems and the third party will agree
      separately on scope and pricing for the goods and services. Customer shall bear no responsibility
      or liability to any contractual agreement made between T2 Systems and any other third party.
(d)   Enurement. This Agreement shall be binding upon and enure to the benefit of T2 Systems,
      Customer and their respective successors and permitted assigns.
(e)   Force Majeure. Neither party shall be liable for delay or failure in performance (other than the
      making of payments) directly or indirectly resulting from acts beyond the control of such party,
      including, but not limited to acts of God, acts of war or terrorism, civil commotion, riot, fire, flood,
      pandemic or other disaster, acts of government, strike, work stoppages, lockout, power failures,
      inability to secure or delay in securing transportation, inability to obtain or delays in obtaining
      goods, materials, or qualified labor, or the inability to use or the failure of any third party
      telecommunications carrier or other services, which events or conditions prevent in whole or in part
      the performance by such party of its obligations hereunder or which renders the performance of
      such obligations so difficult or costly as to make performance commercially unreasonable. In such
      event, the party affected shall be excused from performance on a day-to-day basis to the extent of
      the delay, and the other party shall likewise be excused from the performance of its obligations on
      a day-to-day basis to the extent such party's obligations related to the performance are so delayed.
      Where an Event of Force Majeure occurs, the party who is delayed or fails to perform shall give
      prompt notice to the other party. In the event such inability to perform shall continue longer than
      sixty (60) Days, the party which has received or which was entitled to receive notice may terminate
      the Agreement by notice to the other party without further liability, expense, or cost of any kind.
      Force Majeure events do not include any failure as a result of political or social pressure, general
      economic or market factors, and/or fear of or threat of a Force Majeure Event or other
      circumstance.
(f)   Tariff Surcharge
       (i)      Tariff Surcharge Implementation: If, after the Effective Date of this Agreement, any
                governmental authority enacts or imposes new or additional tariffs, import/export duties,
                surcharges, taxes, or similar fees (“Tariff Surcharges”) that increases the costs of goods,
                materials, and/or services provided for under this Agreement or any product specific
                addendum, T2 shall have the right to pass through such costs to Customer. Tariff
                Surcharges shall be calculated as either (1) a percentage-based fee applied to the total
                cost of applicable good or services, or (2) a fixed fee per affected order, shipment, or
                service. The Tariff Surcharge shall remain in effect for as long as the applicable tariffs
                remain in place. If tariffs are reduced or eliminated, T2 will evaluate and adjust or remove
                the surcharge accordingly.
       (ii)     Adjustment of Tariffs: The Tariff Surcharge is subject to change in response to
                government-imposed tariff rate changes, exemptions, or other regulatory modifications.
                T2 will provide 30 days' written notice of any surcharge adjustments.
       (iii)    Transparency and Customer Acknowledgment: The Tariff Surcharge shall be separately
                itemized on Order Forms and shall not be considered part of the base price of goods or
                services. This surcharge is implemented solely to recover tariff-related costs and does not
                reflect an increase in profit margins. By entering into this agreement, the Customer
                acknowledges and agrees to the application of the Tariff Surcharge as outlined in this
                section and agrees to remit payment accordingly.
(g)   Independent Contractors. The parties are independent contractors. Nothing herein shall be
      construed to create any legal partnership, joint venture, agency or any other relationship between
      the parties.




                                                                                                         Page 35 of 158
                                              - 11 -
(h)    Notices. All communications and notices provided for herein shall be in writing and shall be deemed
       to have been given when delivered personally to the recipient, by email, or by registered or certified
       mail with return receipt requested, postage prepaid, and addressed to the Customer at the address
       appearing on the Addenda or Quote(s), as applicable, or at such other address as either party may
       designate by notice to the other. T2 Systems, from time to time may send general communications
       and/or notices to all its customers and such notices shall be deemed to have been given when
       delivered by email.
(i)    No Waiver. No delay or failure to take any action or exercise any rights under this Agreement shall
       constitute a waiver or consent unless expressly waived or consented to in writing. A waiver of any
       event does not apply to any other or subsequent event, even if in relation to the same subject-
       matter.
(j)    Publicity. Except as expressly agreed in writing, neither party shall issue any press release, or
       otherwise publicly identify the other as a customer or supplier, in any marketing materials or
       otherwise, without the express prior authorization of the other party.
(k)    Severability. If any provision contained in this Agreement is found by a court of competent
       jurisdiction to be invalid, illegal or unenforceable in any respect, it shall be deemed severed from
       this Agreement and the remaining provisions of this Agreement shall not be in any way affected or
       impaired thereby and shall continue in full force and effect.
(l)    Amendment. This Agreement may be modified or amended only if the amendment is made in
       writing and is signed by both parties.
(m)    Counterparts. This Agreement and each Addenda may be executed by the parties in counterparts
       with the same effect as if they had signed the same document and all counterparts shall be
       construed together and shall constitute one and the same agreement. This Agreement and any
       Addenda may be executed by the parties and transmitted by electronic transmission, with the same
       effect as if the parties had delivered an executed original.
(n)    International. The United Nations Convention on Contracts for the International Sale of Goods shall
       not apply to this Agreement or any Products or Services ordered or provided under this Agreement.
(o)    Compliance with Laws. Each party agrees to comply with all applicable federal, state, provincial and
       local laws, regulations, and orders in fulfilling its obligations under the Agreement, including as
       applicable laws relating to anticorruption of public officials and anti-bribery laws and regulations
       and the Federal Fair Debt Collection Practices Act.
(p)    Authorization. Both parties represent and warrant that they have the authority to bind their
       respective agency, institution, or company, and that they are authorized to sign this Agreement and
       any Addenda hereto.
(q)    Captions. The captions and section headings included in this Agreement and any Addenda are for
       convenience only and shall not affect the scope, intent, meaning or function of any provision of this
       Agreement or the applicable Addenda.


IN WITNESS WHEREOF, the parties have executed this Agreement by a duly authorized representative
thereof.




                                                                                                        Page 36 of 158
                                        - 12 -
T2 SYSTEMS, INC.                            CITY OF MUSKEGON


Per: ________________________________       Per: ________________________________
Name: Mindy Powers                          Name: ______________________________
Title: Head of Commercial Sales             Title: ______________________________
Date: _______________________________       Date: _______________________________




                                                                                    Page 37 of 158
                                                      - 13 -
UPSAFETY SOFTWARE SUBSCRIPTION ADDENDUM


THIS UPSAFETY SOFTWARE SUBSCRIPTION ADDENDUM (“ADDENDUM”) GOVERNS THE PROVISION AND USE OF
THE SOFTWARE SOLUTION AND SERVICES PURCHASED BY CITY OF MUSKEGON (“CUSTOMER”) FROM T2 SYSTEMS,
INC. (“T2 SYSTEMS”).


The parties have entered into a Master Customer Agreement (“Agreement”). This Addendum is incorporated into
and subject to the terms of the Agreement and the terms of the Agreement are incorporated herein. To the extent
of any conflict between the terms of this Addendum and the Agreement, the terms of the Addendum shall control.


1    Definitions

       The following terms shall have their meanings defined below.

        a.   “Customer Data” means any data, databases, information, trademarks, service marks, logos, files,
             images, text, files, records or other content that may be provided by or on behalf of Customer or its
             authorized users for use in conjunction with the Software or Services.

        b.   “Documentation” means the T2 Systems user documentation provided to the Customer relating to the
             Software and Services.

        c.   “Professional Services” means any additional technical, development or installation services in
             association with this Addendum, a description of which shall be set out in a Statement of Work,
             executed by T2 Systems and the Customer which is incorporated and referenced hereto.

        d.   “SaaS Term” means the period during which the Services and access to the Software will be provided
             by T2 Systems to Customer, including the Initial Term and any Renewal Term(s).

        e.   “Services” means the hosting, maintenance, support and other services provided by T2 Systems
             pursuant to this Addendum.

        f.   “Software” means the “Citation Management Program” referring to the internet accessible
             management portal, Customer facing websites, and “Mobile Software” referring to the Android based
             data collection software.

        g.   “T2 Systems Content” means any information, documentation or other materials provided to
             Customer by T2 Systems relating to the Software, including, without limitation, the Documentation.


        h.   “Web Sites” means the web sites of T2 Systems, including the web sites that provide access to the
             Software.


All terms defined in this Addendum shall have the meanings ascribed thereto. Capitalized terms used in this
Addendum that are not otherwise defined in this Addendum have the meaning set forth in the Agreement.

 2      Appendices.

             The Appendices below are hereby incorporated into and made a part of this Addendum. In interpreting
             this Addendum and resolving any ambiguities, the main body of this Addendum shall control over the




                                                                                                              Page 38 of 158
                                                      - 14 -
            Appendices. Each reference to T2 in the Appendices shall be deemed to mean T2 Systems, Inc.


             Appendix A – Cost Proposal and Quote
             Appendix B – Merchant Services Addendum for Sub-Merchants
             Appendix C - Scope of Work (If applicable)

3   General Terms

    T2 Systems will provide services (the "Services") and license all software, including all web and LPR applications
    and related Documentation (the "Software"), necessary for Customer to operate a Citation Management
    Program ("CMP") to allow the Customer's parking enforcement officers to issue parking citations, accept
    payment for parking citations and perform citation adjudication tasks.

    This Addendum (including the Quote and applicable SOW) and the Agreement constitute the entire agreement
    between the parties hereto with regard to the Software, Services, any technical support and supersedes all
    prior written and oral agreements, purchase orders, representations, understandings, promises, descriptions
    or other communications between the parties regarding the Addendum Services.


4   Term and Termination

    The (“Term”) of the Addendum is effective from the date on which T2 Systems signs this Addendum (the
    "Effective Date") and will remain in effect for three (3) years (“Initial Term”) from the date on which the
    Customer is trained and the Software is deployed to Customer (the “Training Date”). On the third
    anniversary of the Training Date, and on each annual anniversary date thereafter, this Addendum will
    automatically renew for a one (1) year period upon the same terms and conditions (“Renewal Term”). If
    either the Customer or T2 Systems does not wish to renew this Addendum, or provide notice for early
    termination, a party must notify the other party in writing of its intention not to renew no later than sixty
    (60) days prior to the annual anniversary Training Date.

    If Equipment and training costs have been paid in full, either party may terminate this Addendum for
    convenience with sixty (60) days' written notice, or terminate for cause in the event that a party provides
    written notice to the other party of a material breach and the breaching party fails to cure the breach within
    fifteen (15) days after receiving written notice of the breach from the non-breaching party.


    In the event of a termination, with written notice from the Customer, T2 Systems shall supply a CSV file which
    contains all the Customers textual ticket and permit data (if applicable) at no cost. Any special requests for
    a different format will be scoped by T2 Systems with an estimate provided to the Customer on a time and
    material basis.

    Reengagement. When a project does not stay on the agreed upon schedule as defined in a mutually agreed
    upon project plan because the Customer did not meet its deliverables, or if the Customer requests a new
    date after a committed date has been scheduled, the Customer will be responsible for the payment of:


       a.   All Professional Services Fees completed to date.
       b.   All hard costs, including incurred travel and travel expenses.
       c.   Any rebooking fees.
       d.   A reengagement fee of twenty percent (20%) of the originally quoted Professional Services Fees.

    A reengaged project will not begin until the above amounts are paid by the Customer. Any necessary rework
    (repeat of training, additional data samples, additional project management hours) would be billed at the




                                                                                                                  Page 39 of 158
                                                     - 15 -
    reengaged project.

    Upon written notice to T2 Systems, if the Customer does not reengage the project, this Addendum shall
    terminate in accordance with this Section.


5   CityCite™ Platform Component Terms

    T2 Systems will provide the Services as specified in Exhibit A: Agreement to Purchase with the following terms:

        I.       Physical Equipment

        T2 Systems will supply Equipment to Customer in the models and quantities set forth in Exhibit A:
        Agreement to Purchase, and under the T2 Systems limited warranty.

        All Equipment provided by T2 Systems will be new and unused of the latest model available. Where any
        standard part or accessory of such Equipment is not described, it shall be understood that all Equipment
        and accessories that are provided standard with such Equipment shall be furnished.

        Customer acknowledges that the title to the Equipment shall remain with T2 Systems until such
        Equipment has been paid for in full. Until Equipment has been paid in full, Customer agrees to exercise
        reasonable care of Equipment while in its possession.

        Leased Equipment that becomes lost or stolen will be the sole responsibility of the Customer, and will
        be billed to the Customer at the then current price. If the exact Equipment is not available, T2 Systems
        will provide a similar unit that is compatible with solution at the then current price.

        II.      Data Plans

        T2 Systems will provide a data plan for each device requiring one, allowing unlimited data usage for the
        handheld devices covered by these plans, pursuant to the pricing in Exhibit A: Agreement to Purchase.
        T2 Systems expressly disclaims all warranties as to the network’s reliability, fitness for a particular
        purpose or uptime.

        III.     Paper and Physical Consumables

        Paper, permits and other physical consumables will be provided in the configurations and quantities
        identified in Exhibit A: Agreement to Purchase. Additional paper can be purchased for the same terms for
        up to (1) year from Effective Date, after which paper can be purchased at T2 System’s then current price
        list.

        If Customer orders custom printer paper not quoted in Exhibit A: Agreement to Purchase, T2 Systems will
        provide a separate Agreement to Purchase to Customer detailing those costs.

        IV.      Public Citation Management Portal

        T2 Systems will provide an online payment portal and an interactive voice recognition (IVR) system
        through which patrons may view, pay and dispute outstanding parking citations, as well as view, purchase
        and apply for permits.

        V.       Automated Notice Generation, Owner Lookups & Collections

        T2 Systems will prepare all Delinquent Notices and Notice of Violations for outstanding tickets issued to
        vehicles bearing [ENTER STATE] plates and out-of-State plates (to the extent allowed by each State's
        DMV and T2 Systems existing integrations) to the last known registered owner(s). State agency approval
        will also be obtained where applicable with assistance from the Customer. Such notices shall comply




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                                                     - 16 -
       with State rules and regulations in all material respects.

               a.   Collections. Should the Customer request for a further collections process, Customer and T2
                    Systems will execute a separate addendum identifying the specific terms for referred
                    collection accounts.

       VI.      Custom Software Development

       Upon T2 Systems receiving a signed purchase order from Customer, T2 Systems may perform custom
       software development to customize the CityCite™, CodeCite™ or ForCite™ platforms to meet the
       Customer’s needs. Work will be performed in accordance with an executed Statement of Work (“SOW”),
       and will be performed in a professional and workmanlike manner in accordance with recognized industry
       standards and other specifications as outlined in the project specific SOW. All custom software
       development is owned exclusively by T2 Systems.

       VII.     Support & Issue Resolution

       T2 Systems will provide online, telephone and email support to Customer during the Term, providing
       live, direct T2 Systems product support from 8:00 a.m. to 5 p.m. EST, Monday through Friday, excluding
       nationally observed federal holidays. Additionally, voicemail will be made available 24/7 and a reply will
       be generated by T2 Systems initiating the support call within one (1) hour.

       T2 Systems product support will assist Customers relating to, but not limited to:

               •     Recommendations for optimal use of CMP
               •     Problems with or questions pertaining to the operation of CMP
               •     Problems with interfaces between CMP & other systems
               •     Error messages from CMP
               •     Printing issues related to CMP Mobile Software
               •     Questions about CMP customizable reporting tool

       VIII.    Shipping Costs

       Customer will be responsible all shipping costs to its facility incurred by T2 Systems for the shipment of
       paper, Equipment, permits and all other physical components required to operate the CMP.

       IX.      Acceptance of Equipment

       Customer shall inspect or test Equipment upon receipt. Customer shall be deemed to have affected final
       acceptance of the Equipment at the earliest of: (a) the fifteenth (15th) day after the date of shipment,
       unless written notice is received by T2 Systems before such day; or, (b) the date when the Equipment is
       used or otherwise placed in commercial operation.

       X.       Out of Scope Services and Change Order Requests

       Additional services or changes may be requested by the Customer must be submitted in writing by the
       Customer. T2 Systems will prepare a separate statement of work along with a detailed cost estimate
       to be approved in writing by the Customer prior to the implementation of any changes or additions.
       This includes, but is not limited to, requests for additional Equipment, installation of additional
       sessions, Customer requested software modifications and/ or relocation of Equipment.


6   Merchant Processing Framework




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                                                     - 17 -
    In performing T2 System’s obligations in connection with the maintenance of the Public Citation Management
    Portal (“PCMP”), T2 Systems will serve as the merchant of record for all PCMP transactions and will supply a
    payment gateway for all such transactions.

    Except for chargeback fees and any other transaction exception fees from T2 System's merchant bank, T2
    Systems will be responsible for all merchant processing costs associated with citation payments made online
    through the payment portal, including, without limitation, settlement fees, payment gateway fees, and
    interchange reimbursement fees. Chargeback fees from T2 System's merchant bank will be passed through
    directly to Customer with no markup.

    T2 Systems will remit all fees and fines to Customer, less T2 System’s per transaction fees, refunded
    transactions and associated fees, merchant processing fees and chargeback and refund fees as applicable
    based on the pricing set forth in the Quote.

     a.        Payment Processing. Should the Customer request for payment processing, Customer and T2
               Systems will execute a separate addendum identifying the specific terms for payment processing.


7   Fees

    Customer agrees to the fee schedule outlined in Exhibit A: Agreement to Purchase. Invoices will be submitted
    on a monthly basis, payable within thirty (30) days upon its transmittal.

    Fees may increase after the initial term at every term renewal as set forth in the quote. If not defined in the
    quote, renewals may increase by an amount not to exceed five percent (5%) per year.



8   Payment

    Payment for Software Licensing, Data Plans and CiteGuardPlus™ warranties are invoiced one (1) year in
    advance. Payment for purchased Equipment and CiteGuard™ warranties are due prior to installation. If
    Equipment and other upfront costs have been amortized over a three (3) year term, the lump sum payment
    outlined in Exhibit A: Agreement to Purchase will be invoiced one (1) year in advance.

    Payments for any Revenue Share, Owner Lookups, Data Entry, Automated Notices and Call Center Support, as
    applicable, are invoiced monthly on an as-used basis pursuant to Exhibit A: Agreement to Purchase or other
    Exhibits.

    T2 Systems shall keep accurate records of all Services performed under this Addendum and shall submit such
    information to the Customer with each invoice.


9   Web-Based License

      T2 Systems grants to Customer, and Customer accepts, a nontransferable, nonexclusive license and right
      to access the Citation Management Program via the Internet, and to the Mobile Software through mobile
      devices on which T2 Systems has installed its software. Customer agrees to use the Software and the
      Documentation only as authorized in this Addendum, for its own internal purpose and operations, during
      the SaaS Term. Customer acknowledges that its access to and use of the back end Citation Management
      Program Software will be web-based only. The Citation Management Program will be hosted by T2
      Systems and accessed and used by Customer through the use of the Internet and Customer’s computers,
      while Mobile Software will be installed on Customer mobile devices exclusively by T2 Systems.




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                                                      - 18 -
10 T2 Systems Limitations

      The maximum number of Customer’s employees, contractors, volunteers, and other agents that are
      simultaneously accessing or using the Software at any given time shall not exceed the number of users
      specified in Exhibit A: Agreement to Purchase. Customer’s use of the Software may not exceed the number
      of users specified without the express written agreement of T2 Systems.

11 Permitted Uses

      Subject to T2 System’s database permissions and limitations, users shall be permitted access to the T2
      Systems CityCite® products for the following uses (but only such uses) as described below:

      By users as permitted and authorized by Customer within the terms and features of this Addendum:


       a.   Issuance & Management of Citations, Tickets & Permits
       b.   Customization & Management of Settings, Rules, Reporting and User Permissions
       c.   Customization & Management of Public Citation Management Portal

      The permitted uses described herein shall only be permitted during the SaaS Term. Customer agrees that
      upon expiration or termination of the SaaS Term, all rights granted to Customer shall immediately
      terminate. T2 Systems Customer shall certify in writing to T2 Systems that all copies of T2 Systems Content
      in any form, including partial copies, and shall erase all computer, electronic, or other storage devices have
      been destroyed.


12 Upgrades

    T2 Systems will install upgrades/releases of the Software which are generally made available to its other
    subscribers, including patches and/or fixes, as they are made available, at no charge during the SaaS Term.


13 Customer Responsibilities

    Customer is responsible for administering security within the T2 Systems applications (e.g., the granting of
    rights to a user for a specific form in the application), including maintaining the secrecy and protection of
    all usernames and passwords provided to Customer. Customer is responsible for maintaining its user
    desktops and other devices and providing users network and internet access to the Software. Customer is
    also responsible for ensuring that its users comply with these terms and conditions with respect to use of
    the Software and Services. Customer shall provide secure connectivity to the Internet for its location(s) for
    purposes of providing adequate access to Software hosted at the Customers hosting site.

    T2 Systems shall not be responsible for the reliability or continued availability of the communications lines,
    or the corresponding security configurations, used by Customer in accessing the Software via the Internet.
    Customer shall provide adequate industry “best practice” standards to ensure reasonable security for
    integration between applications at the Customer site and Software hosted by T2 Systems. Customer shall
    provide accurate input information in the manner T2 Systems in connection with the Software and Services.
    Customer shall advise T2 Systems of any changes to Customer’s operations, banking relationships, Primary
    Contact, or other information that would require a change in the support, operation, or configuration of the
    hosted Software. Customer shall configure necessary user accounts via the administrator account provided
    by T2 Systems. Customer shall be responsible for ensuring that any Customer Data is accurate, not corrupt
    in any way, and does not contain any viruses.




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                                                      - 19 -
    Customer shall be solely responsible for, and shall hold T2 Systems, its third party suppliers, and their
    respective Representatives harmless from any loss, damage or liability arising in connection with Customer’s
    inputs, selection and use of the Services, and all data (including Customer Data), reports, statements and
    other content transmitted, posted, received or created on the T2 Systems system through Customer’s
    account, even if transmitted, posted, received or created by a third party


14 Other Restrictions

    Use of the Software and Services is restricted to use by the specific licensing entity only, and only for
    Customer’s internal business purposes. Customer may not use the Software or Services for the benefit of
    any third parties or provide service bureau or other access or use of the Software or Services to third parties.
    Customer may not, directly or indirectly, sublicense, assign, transfer, sell, rent, lend, lease or otherwise
    provide the Software, Services (or any portion thereof, including without limitation any capacity) or the User
    Documentation, or any portions thereof, to any third party, and shall be deemed a material breach.
    Customer may not reverse engineer, disassemble, decompile or make any attempt to ascertain, derive or
    obtain the source code for the Software. Customer shall not use the Software for any commercial purpose
    beyond the functionality for which the Software is intended. Customer hereby agrees, represents and
    warrants to T2 Systems that Customer will not access or use the Software or the Web Sites for any purpose
    that is unlawful or prohibited by these terms and conditions.

    Customer will not use the Software, Services or T2 Systems CityCite, CodeCite and ForCite cloud product to
    take any actions that (i) infringe on any third party’s copyright, patent, trademark, trade secret or other
    proprietary rights or rights of publicity or privacy; (ii) violate any applicable law, statute, ordinance or
    regulation (including those regarding export control); (iii) are defamatory, trade libelous, threatening,
    harassing, or obscene; (iv) constitute unauthorized entry to any machine accessible via the network; (v)
    create or build any derivative works from any information, content, software, products or services obtained
    from or otherwise connected to T2 System’s Software or Web Sites, including appending such information
    or content to Customer’s internal database for distribution to multiple nonprofits as a donor database
    product or service; or (vi) distribute, transfer or resell the results of Customer’s use of the Software, Services
    or Web Sites.

    Customer shall not interfere with or disrupt network users, services or equipment with the intent to cause
    an excessive or disproportionate load on T2 System’s or its suppliers’ infrastructure by means of (but not
    limited to) distribution of unsolicited bulk emails or chain letters, viruses, Trojan horses, worms, or other
    similar harmful or deleterious programming routines. Customer further agrees to cooperate with T2 Systems
    in causing any unauthorized use (including but not limited to co-branding, framing or hyper-linking) and to
    immediately cease.


15 Location, Audio, Image and Video Services

    Customer acknowledges and consents to the automated and manual creation and/or collection of Location-
    Based, Audio, Image, and/or Video Services information in the Software and/or device through interaction
    between the devices where the Software is installed, T2 System’s servers, and third party applications and
    systems. T2 Systems will use commercially reasonable efforts to ensure the accuracy of Location-Based,
    Audio, Image, and/or Video Services; however, T2 Systems assumes no liability or responsibility in the event
    of inaccuracies in such information. While T2 Systems uses commercially reasonable efforts to safeguard
    such information, T2 Systems assumes no liability or responsibility for losses resulting from illegal or
    fraudulent access to Location-Based, Audio, Image, and/or Video Services related information. T2 Systems




                                                                                                                   Page 44 of 158
                                                     - 20 -
    also reserves the right to make such information available to auditors, police and other governmental
    agencies as permitted or required by law.


16 Software Modifications

    Customer shall not make any modifications to the Software. Any modifications that Customer makes to the
    Software will void any warranty obligations contained in this Addendum and T2 Systems in its sole discretion,
    may terminate this Addendum.


17 Warranties

    T2 Systems Limited Warranty. Each party warrants that (i) it has the right and power to enter into these Terms
    and Conditions, and (ii) it will comply with all applicable laws and regulations. T2 Systems warrants that the
    Services will be performed in a professional and workmanlike manner in accordance with recognized industry
    standards and other specifications as outlined in this Addendum.

    Exclusive Remedies. If, during the warranty period the Software fails to comply with the specifications, T2
    System's entire liability and Customer’s exclusive remedy will be either to (a) repair or replacement of the
    Software, or (b) if in T2 System’s opinion such repair or replacement is not possible, termination of the SaaS
    Term and a refund of the Subscription Fees paid for the Software of the current annual Term. This limited
    warranty is void if failure of the Software has resulted from accident, abuse, misuse or negligence of any kind
    in the use, handling or operation of the Software, including any use not consistent with the Documentation
    or T2 Systems training. T2 System's entire liability and Customer’s exclusive remedy for any breach of warranty
    with respect to the Services as described above shall be T2 Systems re-performing the Services performed.




                                                                                                               Page 45 of 158
      - 21 -


    Appendix A:



Cost Proposal / Quote




                        Page 46 of 158
                                    - 22 -
APPENDIX B: MERCHANT SERVICES ADDENDUM FOR SUB-MERCHANTS

This MERCHANT SERVICES ADDENDUM FOR SUB-MERCHANTS (“Agreement”) is made with City of Muskegon (“Sub-
merchant”) in connection with the agreement between Sub-merchant and T2 Systems, Inc. (“T2”). T2’s designated
financial institution (“Bank”) and payment processor (“Processor”) that T2 has contracted with to support the
Services and are members of the Associations providing sponsorship services in connection with this Agreement,
will provide Sub-merchant with certain payment processing services (“Services”) in accordance with the terms of
this Agreement. In consideration of Sub-merchant’s receipt of credit or debit card funded payments, and
participation in programs affiliated with MasterCard International Inc. ("MasterCard"), VISA U.S.A. Inc. ("VISA"),
Discover (“Discover”), American Express (“Amex”) and certain similar entities (collectively, “Associations), Sub-
merchant is required to comply with the Operating Regulations (defined below) as they pertain to applicable credit
and debit card payments. In addition, if Sub-merchant meets certain requirements under the Operating Regulations
or an Association or the Operating Regulations otherwise require, Sub-merchant may be required to enter into a
direct relationship with an entity that is a member of the Associations. By executing this Agreement, Sub-merchant
has fulfilled such requirement. However, Processor understands that Sub-merchant may have contracted with T2 to
obtain certain processing services and that T2 may have agreed to be responsible to Sub-merchant for all or part of
Sub-merchant’s obligations contained herein. Bank and Processor may be changed at any time without prior notice.

NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual promises contained herein, the
parties agree as follows:

1.       Certain Sub-merchant Responsibilities. Sub-merchant agrees to comply, and to cause third parties acting
as Sub-merchant’s agent (“Agents”) to comply, with the Association’s and other payment network’s by-laws,
operating regulations and/or all other rules, policies and procedures, including but not limited to the Payment Card
Industry Data Security Standard, the VISA Cardholder Information Security Program, the MasterCard Site Data
Protection Program, and any other program or requirement that may be published and/or mandated by the
Associations or payment networks (collectively "Operating Regulations"). Sub-merchant may review the VISA,
MasterCard, Discover and Amex websites for a copy of the Visa, MasterCard, American Express and Discover
regulations. Sub-merchant also agrees to comply with all applicable state, federal, and local laws, rules, and
regulations (“Laws”). Without limiting the foregoing, Sub-merchant agrees that it will fully comply with any and all
anti-money laundering laws and regulations, including but not limited to the Bank Secrecy Act, the US Treasury’s
Office of Foreign Assets Control (OFAC) and the Federal Trade Commission. For purposes of this section, Agents
include, but are not limited to, Sub-merchant’s software providers and/or equipment providers. T2 may suspend or
terminate the Services at any time if Sub-Merchant is not eligible under Law or Operating Regulations to use the
Services, and T2 reserves the right to establish certain limits on Sub-Merchant’s processing volume at any time in its
reasonable discretion

If appropriately indicated in Sub-merchant’s agreement with T2, Sub-merchant may be a limited-acceptance
merchant, which means that Sub-merchant has elected to accept only certain Visa and MasterCard card types (i.e.,
consumer credit, consumer debit, and commercial cards) and must display appropriate signage to indicate the same.
Processor has no obligation other than those expressly provided under the Operating Regulations and applicable law
as they may relate to limited acceptance. Sub-merchant, and not Processor, will be solely responsible for the
implementation of its decision for limited acceptance, including but not limited to policing the card type(s) accepted
at the point of sale.

Sub-merchant shall only complete sales transactions produced as the direct result of bona fide sales made by Sub-
merchant to cardholders, and is expressly prohibited from presenting sales transactions which are produced as a
result of sales made by any person or entity other than Sub-merchant, or for any purposes related to any illegal or
prohibited activity, including but not limited to money-laundering or financing of terrorist activities.




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                                                         - 23 -
Sub-merchant may set a minimum transaction amount to accept a card that provides access to a credit account,
under the following conditions: i) the minimum transaction amount does not differentiate between card issuers; ii)
the minimum transaction amount does not differentiate between MasterCard, Visa, or any other acceptance brand;
and iii) the minimum transaction amount does not exceed ten dollars (or any higher amount established by the
Federal Reserve). Sub-merchant may set a maximum transaction amount to accept a card that provides access to a
credit account, under the following conditions: Sub-merchant is a i) department, agency or instrumentality of the
U.S. government; ii) corporation owned or controlled by the U.S. government; or iii) Sub-merchant whose primary
business is reflected by one of the following MCCs: 8220, 8244, 8249 –Schools, Trade or Vocational; and the
maximum transaction amount does not differentiate between MasterCard, Visa, or any other acceptance brand.

2.       Sub-merchant Prohibitions. Sub-merchant must not (i) require a cardholder to complete a postcard or
similar device that includes the cardholder’s account number, card expiration date, signature, or any other card
account data in plain view when mailed; (ii) add any tax to transactions, unless applicable law expressly requires that
a Sub-merchant impose a tax (any tax amount, if allowed, must be included in the transaction amount and not
collected separately); (iii) request or use an account number for any purpose other than as payment for its goods or
services; (iv) disburse funds in the form of travelers checks if the sole purpose is to allow the cardholder to make a
cash purchase of goods or services from Sub-merchant; (v) disburse funds in the form of cash unless Sub-merchant
is dispensing funds in the form of travelers checks, TravelMoney cards, or foreign currency (in such case, the
transaction amount is limited to the value of the travelers checks, TravelMoney cards, or foreign currency, plus any
commission or fee charged by the Sub-merchant), or Sub-merchant is participating in a cash back service; (vi) submit
any transaction receipt for a transaction that was previously charged back to the Processor and subsequently
returned to Sub-merchant, irrespective of cardholder approval; (vii) accept a Visa consumer credit card or
commercial Visa product issued by a U.S. issuer to collect or refinance an existing debt; (viii) accept a card to collect
or refinance an existing debt that has been deemed uncollectable; or (ix) submit a transaction that represents
collection of a dishonored check. Sub-merchant further agrees that, under no circumstance, will Sub-merchant store
cardholder data in violation of the Laws or the Operating Regulations including but not limited to the storage of
track-2 data. Neither Sub-merchant nor its Agent shall retain or store magnetic-stripe data subsequent to the
authorization of a sales transaction.

3.       Settlement. Upon receipt of Sub-merchant’s sales data for card transactions, Processor will process Sub-
merchant’s sales data to facilitate the funds transfer between the various Associations and Sub-merchant. After
Processor receives credit for such sales data, subject to the terms set forth herein, Processor will fund Sub-merchant,
either directly to the Sub-merchant -Owned Designated Account or through T2 to an account designated by T2
(“T2Designated Account”), at Processor’s discretion, for such card transactions. Sub-merchant agrees that the
deposit of funds to the T2 Designated Account, if applicable, shall discharge Processor of its settlement obligation to
Sub-merchant, and that any dispute regarding the receipt or amount of settlement shall be between T2 and Sub-
merchant. Processor will debit the T2Designated Account for funds owed to Processor as a result of the Services
provided hereunder, provided that Processor may also debit Sub-merchant’s designated demand deposit account
(“Sub-merchant -Owned Designated Account”) upon receipt of such account information from Sub-merchant or T2,
or if Processor deposits settlement funds into the Sub-merchant -Owned Designated Account. Further, if a
cardholder disputes a transaction, if a transaction is charged back for any reason, or if Processor reasonably believes
a transaction is unauthorized or otherwise unacceptable, the amount of such transaction may be charged back and
debited from Sub-merchant or T2.

4.       Term and Termination. This Agreement shall be binding upon Sub-merchant’s execution. The term of this
Agreement shall begin, and the terms of the Agreement shall be deemed accepted and binding upon Processor, on
the date Processor accepts this Agreement by issuing a merchant identification number, and shall be coterminous
with T2’s agreement with Sub-merchant.

Notwithstanding the foregoing, Processor may immediately cease providing Services and/or terminate this
Agreement without notice if (i) Sub-merchant or T2 fails to pay any amount to Processor when due, (ii) in Processor's




                                                                                                                    Page 48 of 158
                                                          - 24 -
opinion, provision of a service to Sub-merchant or T2 may be a violation of the Operating Regulations or any Laws,
(iii) Processor believes that Sub-merchant has violated or is likely to violate the Operating Regulations or the Laws,
(iv) Processor determines Sub-merchant poses a financial or regulatory risk to Processor or an Association, (v)
Processor’s agreement with T2 terminates, (vi) any Association deregisters T2, (vii) Processor ceases to be a member
of the Associations or fails to have the required licenses, or (viii) Processor is required to do so by any of the
Associations.

5.       Customer Responsibility. Sub-Merchant agrees to be responsible for any and all proceedings, losses, costs,
expenses, claims, demands, damages, and liabilities (including attorneys’ fees and costs, and collections costs)
resulting from or otherwise arising out of (i) Sub-Merchant’s or its directors’, officers’, employees’, affiliates’, and
Agents’ use of the Services or acts or omissions in connection with the Services; (ii) any infiltration, hack, breach, or
access violation of Sub-Merchant’s systems, including any access to Card, Cardholder, or transaction data; and (iii)
Sub-Merchant’s or its directors’, officers’, employees’, affiliates’, and Agents’ breach of this Agreement or violation
of Law or the Operating Regulations. This indemnification will survive the termination of this Agreement.

6.       Limits of Liability. Sub-merchant agrees to provide Processor, via communication with T2, with written
notice of any alleged breach by Processor of this Agreement, which notice will specifically detail such alleged breach,
within thirty (30) days of the date on which the alleged breach first occurred. Failure to so provide notice shall be
deemed an acceptance by Sub-merchant and a waiver of any and all rights to dispute such breach.

EXCEPT FOR THOSE EXPRESS WARRANTIES MADE IN THIS AGREEMENT, PROCESSOR DISCLAIMS ALL WARRANTIES,
INCLUDING, WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE. Sub-merchant’s sole and exclusive remedy for any and all claims against Processor arising
out of or in any way related to the transactions contemplated herein shall be termination of this Agreement. In the
event that Sub-merchant has any claim arising in connection with the Services, rights, and/or obligations defined in
this Agreement, Sub-merchant shall proceed against T2 and not against Processor, unless otherwise specifically set
forth in the Operating Regulations. In no event Processor shall have any liability to Sub-merchant with respect to
this Agreement or the Services. Sub-merchant acknowledges Processor is only providing this Agreement to assist in
T2’s processing relationship with Sub-merchant, that Processor is not liable for any action or failure to act by T2, and
that Processor shall have no liability whatsoever in connection with any products or services provided to Sub-
merchant by T2. If T2 is unable to provide its services to Sub-merchant in connection with this Agreement and
Processor elects to provide those services directly, Sub-merchant acknowledges and agrees that the provisions of
this Agreement will no longer apply and the terms of Processor’s then current Bank Card Merchant Agreement,
which would be provided to Sub-merchant, will govern Processor’s relationship with Sub-merchant. If T2
subsequently provides its services to Sub-merchant in connection with this Agreement, Processor will cease to
provide such services after receipt of notice from T2 and this Agreement will govern Processor’s relationship with
Sub-merchant.

7.       Miscellaneous. This Agreement may not be assigned by Sub-merchant without the prior written consent
of Processor. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors, transferees and assignees. This Agreement is for the benefit of, and may be enforced only by, Processor
and Sub-merchant and is not for the benefit of, and may not be enforced by, any other party. Processor may amend
this Agreement upon notice to Sub-merchant in accordance with Processor’s standard operating procedure. If any
provision of this Agreement is determined to be illegal or invalid, such illegality or invalidity of that provision will not
affect any of the remaining provisions and this Agreement will be construed as if such provision is not contained in
the Agreement “Bank” as used in this Agreement shall mean a member of VISA, MasterCard and/or Discover, as
applicable, that provides sponsorship services in connection with this Agreement. The Bank is a party to this
Agreement. The Bank may be changed, and its rights and obligations assigned to another party by Processor at any
time without notice to Sub-merchant.




                                                                                                                       Page 49 of 158
                                      - 25 -
EXHIBIT 1 – ADDITIONAL SUPPLEMENTAL TERMS

1.       Transaction Processing and Reporting. Subject to the terms of this Agreement, T2 or Processor will initiate
payment to Sub-Merchant of the total face amount of each transaction less any fees or other amounts T2 or
Processor are authorized to deduct or withhold under this Agreement. The deposit of transaction funds to the Sub-
merchant -Owned Designated Account discharges T2 and Processor of any settlement obligation to Sub-Merchant.
Sub-Merchant agrees that T2 and Processor have no obligation to settle funds that are the proceeds of a purported
transaction that violates Law. Unless otherwise agreed to in writing by the parties, Sub-Merchant shall electronically
deliver to T2 or Processor (as agreed among the parties) all transaction records at least every business day. The
preparation and delivery of transaction records shall constitute an endorsement by Sub-Merchant of each
transaction, and Sub-Merchant authorizes T2 or Processor to place Sub-Merchant’s endorsement on any transaction
at any time. T2 or Processor shall provide transaction information and reports to Sub-Merchant on a daily basis or
as otherwise agreed by the parties. Sub-Merchant agrees to review all such information and reports. Sub-Merchant
agrees that its failure to report any errors in such information and reports or to notify T2 that Sub-Merchant has not
received any amounts owed to Sub-Merchant within thirty (30) business days from the date the report or invoice is
made available to Sub-Merchant or that receipt of such funds was due to occur shall constitute Sub-Merchant’s
acceptance of the same.

2.       Third Party Assessments. Notwithstanding any other provision of this Agreement, Sub-Merchant shall be
responsible for all fees, fines, assessments, penalties, loss allocations, or other amounts imposed or assessed to Sub-
Merchant, T2, Processor or Bank in connection with this Agreement by the Associations or other third parties to the
extent that such amounts are not the direct result of the gross negligence or willful misconduct of T2, Processor, or
Bank, as applicable. In the event that Processor or any third party assesses T2 a cost of funds associated with a
circumstance where Processor, for whatever reason, advances settlement or any amounts and/or delays the
assessment of any fees, Sub-Merchant shall be fully responsible for any portion of such assessment that is
attributable to the Services for Sub-Merchant.

3.        T2 Fees. Sub-Merchant agrees to pay T2 the fees, expenses, and all other amounts set forth in this
Agreement (“Fees”), which is referenced and incorporated in the Quote. All amounts owed under this Agreement,
are due when invoiced or as otherwise directed. Any such amounts not paid when due shall be charged interest at
1% per month but in no event more than the highest rate permitted by Law. Unless otherwise mutually agreed in
writing by the parties, T2 agrees not to change any of its Fees for one (1) year after the Effective Date.
Notwithstanding the foregoing, Sub-Merchant is responsible for payment of any changes or increases in Fees by
Processor, Bank, the Associations, or other third parties (“Pass Through Fees”). In the event that T2 exercises its
right to increase any Fees under this Section (exclusive of any changes in Pass Through Fees), T2 will provide Sub-
Merchant thirty (30) days’ advance written notice. An increase of T2 Fees will be based on the annual transaction
volume tiers, which will be no greater than five cents ($0.05) per transaction. Review of the annual transaction
volume tiers will take place upon the anniversary of each Term of the Effective Date of this Agreement. If Sub-
Merchant does not agree to any such increases in Fees during this notice period, Sub-Merchant may terminate this
Agreement with thirty (30) days’ written notice to T2, during which period T2 shall continue to charge the existing
Fees during the termination and wind-down period. T2, Processor, and Bank may refuse to provide the Services in
the event any of the parties have not been paid by Sub-Merchant for the Services contemplated herein.

4.       Right of Offset. Sub-Merchant has no right of offset regarding any amounts Sub-Merchant may owe T2. T2
may setoff any amounts owed by Sub-Merchant under this Agreement against (i) any amounts, including
transactions, which T2 would otherwise deposit to the Sub-merchant -Owned Designated Account; (ii); any other
amounts T2 may owe Sub-Merchant under this Agreement; or (iii) against any property of Sub-Merchant in the
possession or control of T2. This right of offset covers, but is not limited to, chargebacks, disputes, fees, or any
amounts Sub-Merchant owes T2 under this Agreement. Sub-Merchant is responsible for any costs T2 incurs in
connection with collection, in addition to any amounts owed, including attorneys’ fees and expenses, collection
agency fees, and any applicable interest on unpaid amounts.




                                                                                                                  Page 50 of 158
Prepared for


City of Muskegon, MI
          Parking Enforcement & Permit Management Software

                                           Prepared by

                                           Joe Weiler
                                           678-525-7243
                                           Joe.Weiler@T2Systems.com

                                           8900 Keystone Crossing #700,
                                           Indianapolis, IN 46240, United
                                           States




                                                                        Page 51 of 158
T2 Permits and Enforcement
UPsafety Solution | Cost Proposal

Hardware


Unlike many enforcement providers, we provide full, in-house support for the hardware we resell to you.
That means that instead of calling the manufacturer's technical support hotline, you’re calling our fully US-
based staff under the same one-hour Service Level Agreement we maintain for our software. We believe
anything less is not supporting the whole solution.
UPsafety/Flex XF Print All-in-One Enforcement Handheld Package - $2,695 per device

        We recommend this one-piece device as the workhorse for your enforcement personnel. The
        hardware package includes the XF Rugged handheld device with a built-in printer, Samsung Note
        20, two hot-swappable external battery packs, which allow both the device and a supplemental
        battery to be charged in tandem, a charging dock, power supply/charging cable, strap, carrying
        case and vehicle charger.



Data Plan Option

UPsafety Verizon LTE Data Plan - $420 Per Year
        We resell data plans from Verizon exclusively because their network and speed are
        uncompromising. This plan includes mobile data for one device.




Platform Products (includes 24/7 Software Support)
CityCite™ Platform
UPsafety Subscription Service - PE Mobile License(s) - $2748 per year per license

        We sell our cloud-hosted software suite at a recurring license fee per device based on the
        functionality utilized.

        This fee includes:

            1) A license for (1) mobile user and (1) cloud user to use our front-end data entry software
                and cloud-based back-end management software. This includes access to all software
                features, including the iPermit permitting module.

            2) 24/7/365 in-house help desk support for all software and hardware issues.




                                                                                                         Page 52 of 158
    3) Access to our Client Resource Center, which provides in-depth details of the functionality
        within our mobile and back-end software, including video demonstrations and guided
        walk-throughs.

    4) All software updates, including product enhancements, issue resolutions, and new
        feature releases as they become available. Since its inception, we have been releasing
        new software to clients rapidly.
        Major upgrades in 2024, provided at no additional cost to ALL current subscribers.

        To ensure these features are fully utilized, we regularly hold UPsafety User Webinars, at
        no additional cost to subscribers, before each major update to identify, train, and answer
        all customer questions and concerns. Users who cannot make the webinar can request a
        recorded copy to view anytime.


Patron Payment Portal – Greater of 4.00% or $3.00 per Citation or Permit Paid Online

    We can fully customize an e-commerce site to meet your needs, including branding, adding
    customized dispute fields, and developing lookup logic. Through the portal, patrons can:

        Review photo evidence, as well as all ticket data recorded at the time of issuance
        Pay tickets online, from the moment a ticket is issued, via QR code on the ticket,
        the website printed on the ticket, or, through the Interactive Voice Response
        (IVR) phone number
        Dispute and inquire as to ticket status, including the upload documents to be
        viewed by enforcement or administrative staff

    When a violator pays a $30.00 citation, they will pay the citation amount, plus the service fee, and
    we will remit the full $30.00 citation value to you next day.




                                                                                                Page 53 of 158
UPsafety Personalized Webinar Training $895.00 one-time fee per training
Training and Implementation

This fee is for online training of your officers and administrators on how to use the system inside
and out and training managers to a Train the Trainer standard.


UPsafety Cloud Set Up and Customization $1,875.00 one-time fee

        We charge this fee to fully customize the cloud to your department, including setting permissions
        for each individual employee, implementing ticket lifecycle business logic, creating report
        templates specified by managers, importing common street names to optimize officer drop-down
        lists, and more.

        Our project managers work quickly, and with your help, we can implement your perfect solution
        within 90 days of contract signing. For projects that cannot be implemented by T2 within 90 days
        of the contract execution date due to factors within your control, an extended project
        management fee of $500 per week will apply.

        Factors within your control include but are not limited to your failure to provide appropriate
        information, resources, or personnel reasonably necessary to complete implementation. Any
        delays caused by third parties or events outside the control of either T2 or you would not be
        applicable.


Programmatic Data Conversion – Fee waived for standard data conversions

       Assuming cooperation from the incumbent vendor, we will migrate all records from the current
       system to CityCite.


Optional Products, Processing Services & Other per Item Services

UPsafety Hardware Care Program $420.00 per year

        In the case of hardware damage or failure, this warranty fully covers:
            1)   Immediate shipment of a no-cost Loaner device to replace the affected device
            2)   A call tag for the affected device for shipment to our offices for repair
            3)   Shipping for the repaired device back to your offices
            4)   A call tag for the Loaner device
        This provides for instant remediation of hardware issues and keeps officers enforcing.




                                                                                                         Page 54 of 158
UPsafety Automated Lookups - DMV Research (dependent on state regulations)
      DMV research for violators, we charge Per Successful Plate Lookup, which means that a charge
      is only incurred if a valid address has been found for the requested plate.

      In State

      For DMV research for in-state violators, we only charge for lookups when the state levies a fee to
      conduct a lookup.

      Out of State

      For DMV research for out-of-state violators, we charge Per Successful Plate Lookup, which
      means that a charge is only incurred if a valid address has been found for the requested plate.




UPsafety Automated Delinquent Notices – $1.00 per Automated Notification
      The cost of customizing physical notices, which will be mailed to violators as warnings and
      requests for payment or for any other automated correspondence on behalf of your organization,
      is fully included in the setup process. This fee is for the printing, stamping, and mailing physical
      notices to violators.



UPsafety Paper 3in Plain Polyvinyl Thermal - $169 per case

      We provide top-quality water and tear-resistant polyvinyl paper. There are 50 rolls per case, and
      clients see anywhere between 60-70 tickets per roll.




                                                                                                         Page 55 of 158
                                 T2 Systems, Inc. - Confidential Quotation
                                         a Verra Mobility Company
                                      8900 Keystone Xing, Suite 700
                                        Indianapolis, IN 46240-4697

                                                                     For:         City of Muskegon -
                                                                                  MI
                                                                     Quote ID:    Q-42230
                                                                     Date Issued: 4/10/2024
                                                                     Expires:     3/31/2025

    Bill To:                                                     Ship To:
    City of Muskegon - MI                                        City of Muskegon
    933 Terrace Street                                           933 Terrace Street
    Muskegon, Michigan 49440                                     Muskegon, MI 49440
    United States                                                United States

    Prepared By:                                                 Debra Matz
    Bal Sidhu                                                    (231) 724-6903
                                                                 debra.matz@shorelinecity.com
    Prepared For:                                                EIN: TBD
    Julie Parisian


Subscriptions

Product Name                                                  Product        Quantity      Sales Price          Total
                                                               Code
UPsafety Subscription Service - PE Mobile License(s)                            9.00      USD 8,244.00      USD 24,732.00

Year 1                                                        100.5000          3.00      USD 2,748.00      USD 8,244.00
Year 2                                                        100.5000          3.00      USD 2,748.00      USD 8,244.00
Year 3                                                        100.5000          3.00      USD 2,748.00      USD 8,244.00
UPsafety/Flex Verizon LTE Data Plan                                             9.00      USD 1,260.00      USD 3,780.00

Year 1                                                        100.5003          3.00       USD 420.00       USD 1,260.00
Year 2                                                        100.5003          3.00       USD 420.00       USD 1,260.00
Year 3                                                        100.5003          3.00       USD 420.00       USD 1,260.00
UPsafety Hardware Care Program                                                  9.00      USD 1,260.00      USD 3,780.00

Year 1                                                        100.5006          3.00       USD 420.00       USD 1,260.00
Year 2                                                        100.5006          3.00       USD 420.00       USD 1,260.00
Year 3                                                        100.5006          3.00       USD 420.00       USD 1,260.00
                                                                                                   TOTAL:    USD 32,292.00


Services


                                                       Page 1 of 3



                                                                                                                Page 56 of 158
  Product    Product Name                                                    Quantity   Sales Price            Total
   Code
  100.5014   UPsafety Client Cloud Setup & Customization                       1.00     USD 1,875.00       USD 1,875.00
  100.5029   UPsafety Personalized Webinar Training                            1.00     USD 895.00          USD 895.00
                                                                                               TOTAL:        USD 2,770.00


Hardware

  Product    Product Name                                                    Quantity   Sales Price            Total
   Code
  105.0765   UPsafety/Flex XF Print All-in-One Enforcement Handheld            3.00     USD 2,695.00       USD 8,085.00
             Package
  663.1000   UPsafety Paper 3in Plain Polyvinyl Thermal, 200 3.2 Appleton,     3.00     USD 169.00          USD 507.00
             80mm- Hgp-3 (50 rolls)
                                                                                               TOTAL:        USD 8,592.00




                                                                                              Year 1 Total: USD 22,126.00
                                                                                              Year 2 Total: USD 10,764.00
                                                                                              Year 3 Total: USD 10,764.00

                                                                                                 Net Total: USD 43,654.00

                                                                                                      Tax Amount: USD 0.00
                                                                                                        Tax Comments: N/A

                                                                                                       Total: USD 43,654.00
Additional Information:
Freight Term:
Payment Terms:
IRIS Profile:
End User: City of Muskegon - MI
GP Customer Number:




                                                           Page 2 of 3



                                                                                                               Page 57 of 158
Billing Terms

Additional fees for variable cost services utilized.

Hardware, including subcontractor hardware, and shipping invoiced
per Agreement.
Subscriptions are invoiced upon receiving access to licensed product.
Professional Services invoiced on Project Go-Live.
Travel invoiced as incurred.

Tax rate, if applicable, will be finalized for calculation at time of invoicing.

Invoices paid via credit card will incur a 2.5% convenience fee.

Purchase orders can be forwarded to purchaseorders@t2systems.com

Quote is developed in conjunction with Statement of Work, if applicable. If any billing term language conflicts occur,
Standard Billing Terms section of Statement of Work document takes precedence.




Quote Number: Q-42230

Customer
/THEIRSIG/
Signature
/THEIRNAME/
Print Name
/THEIRTITLE/
Title
/THEIRDATE/
Date
/PONO/
PO #




                                                             Page 3 of 3



                                                                                                                 Page 58 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025                 Title: Sale of 280, 290, 300, 310, & 370 Allen

Submitted by: Samantha Pulos, Code                    Department: Planning
Coordinator

Brief Summary:
Staff is seeking authorization to sell the City-owned vacant lots at 280, 290, 300, 310, & 370 Allen to
Sjaarda Homes and Properties LLC (Derek Sjaarda).

Detailed Summary & Background:
Sjaarda Homes and Properties LLC (Derek Sjaarda) would like to purchase the City-owned buildable
lots at 280, 290, 300, 310, & 370 Allen for $15,000 (75% of the True Cash Value of $20,000) plus half of
the closing costs, and the fee to register the deed. Sjaarda Homes and Properties LLC (Derek
Sjaarda) will be constructing a duplex on each 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:
Authorize staff to sell the City-owned vacant lots at 280, 290, 300, 310, & 370 Allen to Sjaarda Homes
and Properties LLC (Derek Sjaarda).

Approvals:                                            Guest(s) Invited / Presenting:



                                                                                                 Page 59 of 158
Immediate Division     x   No
Head
Information
Technology
Other Division Heads   x
Communication
Legal Review           x




                                Page 60 of 158
                         PURCHASE AND DEVELOPMENT AGREEMENT

This Purchase and Development Agreement (“Agreement”) is made May 27, 2025 (“Effective Date”),
between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon,
Michigan 49440 (“City”), and Sjaarda Homes and Properties LLC, Derek Sjaarda, 15131 Blueberry Ct,
West Olive MI, 49460 (“Developer”), with reference to the following facts:

                                               Background

         A.      Developer proposes to purchase and develop five (5) vacant properties owned by City
which are 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
Property”).

        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 Property. Developer intends to develop
on each of the Project Properties one (1) duplex, for a total of five (5) duplexes. (the “Project”).

        Therefore, for good and valuable consideration, the parties agree as follows:

        1.      Sale and Purchase of Project Property. 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 Property, subject to reservations, restrictions, and easements of record.

        2.       Purchase Price. The total purchase price for the Project Property shall be $15,000.00,
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 the 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 Property, including single-family homes, duplexes, triplexes, and
        accessory dwelling units, 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 the Project Property upon Developer’s satisfaction of the following design
        standards for each single-family home, duplex, triplex, and accessory dwelling unit it constructs on
        the Project Property. If the Project includes an accessory dwelling unit, both the primary dwelling
        unit (single-family home, duplex, triplex) and the accessory dwelling unit must meet the design
        standards outlined below to be eligible for reimbursement.




                                                                                                         Page 61 of 158
                         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 280 Allen, Developer would be reimbursed $1,800.00,
        which is 60% of the $3,000.00 purchase price for this Parcel. If Developer completes all five design
        standards, Developer would be reimbursed the entire purchase price for this Parcel. If Developer
        builds a duplex or small multiplex, Developer would be reimbursed 100% of the 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 duplex on each of the Project
Properties, the quit claim deed conveying the Project Property to Developer shall contain a right of reversion
in all of the Project Property (“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 Property 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 the Parcel of the Project
        Property and beginning installation of the approved duplex.

                 b.      Developer does not complete construction of the Project Property prior to
        expiration of the Construction Period, in which case title to any of the Project Property 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 the Project
        Property. Provided, however, the parties agree to reasonably negotiate an extension of the
        Construction Period up to a period of six (6) months for the Project Property 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 the Project Property, 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 the Project Property, 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.




                                                                                                           Page 62 of 158
In addition, if the Project Property revert to City, City may retain the purchase price for such Project
Property free and clear of any claim of Developer or its assigns. In the event of reversion of title of the
Project Property, improvements made on such Project Property shall become the property of City. In no
event shall the Project Property 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.

         5.       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 Property in the amount of the total purchase price for the
Project Property 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 Property 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 Property (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.

          6.       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 Property. 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.”

         7.      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.

         8.      Survey. Developer at its own expense may obtain a survey of any or all of the Project
Property, and Buyer or its surveyor or other agents may enter any of the Project Property 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 Property 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 Property subject to said encroachment or variation.

        9.      Inspection Period. At Developer’s sole option and expense, Developer and Developer’s
agents may conduct inspections of each of the Project Property within thirty (30) days after the Effective
Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example




                                                                                                               Page 63 of 158
but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the
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.

          10.     Condition of Project Property. City and Developer acknowledge and agree that the Parcel
in the Project Property 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 Property, including without limitation, soil conditions,
and any environmental conditions; (ii) the suitability of the Project Property for any or all of Developer’s
activities and uses; (iii) the compliance of or by the Project Property with any laws, codes, or ordinances;
(iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Property;
(v) existence in, on, under, or over the Project Property of any hazardous substances; or (vi) any other matter
with respect to the Project Property. Developer acknowledges and agrees that Developer has or will have
the opportunity to perform inspections of the Project Property pursuant to this Agreement and that
Developer is relying solely on Developer’s own investigation of the Project Property 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 Property
acquired by Developer and waive all objections or claims against City arising from or related to such Project
Property 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 Property 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 Property 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.

       11.     Developer’s Representations and Warranties of Developer. Developer represents,
covenants, and warrants the following to be true:

               a.      Authority. 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 property, is now or on the Closing Date will be
        pending or, to the knowledge of Developer, threatened.




                                                                                                             Page 64 of 158
        12.      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.

        13.      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.

        14.      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 Property
        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.

        15.      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 65 of 158
        16.       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: Sjaarda Homes and Properties LLC
                      Derek Sjaarda
                      15131 Blueberry Ct
                      West Olive MI 49460
                      Email: dlsjaarda@gmail.com
                      Cell: 616-723-7130


        17.      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.




                                                                                                         Page 66 of 158
                h.       Severability. Should any one or more of the provisions of this Agreement be
        determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
        enforceability of the remaining provisions of this Agreement shall not in any way be impaired or
        affected.

                 i.      No Reliance. Each party acknowledges that it has had full opportunity to consult
        with legal and financial advisors as it has been deemed necessary or advisable in connection with
        its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in
        reliance on any representations, warranties, or statements made by the other party other than those
        expressly set forth in this Agreement.

                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                                       Sjaarda Homes and Properties LLC


By: _______________________________                    By: _______________________________
Name: Ken Johnson                                      Name: Derek Sjaarda
Title: Mayor                                           Dated: __________________
Dated: __________________


By: _______________________________
Name: Ann Marie Meisch
Title: City Clerk
Dated: __________________




                                                                                                       Page 67 of 158
                                          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 WEST 49.5 FEET LOT 9
BLOCK 210
Address: 280 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205-210-0009-01
Price: $3,000.00

Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 16.5 FEET LOT 9
WEST 33 FEET LOT 10 BLOCK 210
Address: 290 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205-210-0010-01
Price: $3,000.00

Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 33 FEET LOT 10
WEST 16.5 FEET LOT 11 BLOCK 210
Address: 300 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205-210-0010-10
Price: $3,000.00

Legal Description: CITY OF MUSKEGON REVISED PLAT OF 1903 EAST 49.5 FEET LOT 11
BLOCK 210
Address: 310 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205-210-0011-01
Price: $3,000.00

Legal Description: CITY OF MUSKEGON
REVISED PLAT 1903 LOT 10 BLK 211
Address: 370 ALLEN AVE, MUSKEGON, MI 49442
Parcel #: 61-24-205- 211-0010-00
Price: $3,000.00




                                                                                          Page 68 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025                 Title: Contract with Pioneer Resources for Transit
                                                      Services

Submitted by: LeighAnn Mikesell, Deputy City          Department: Manager's Office
Manager

Brief Summary:
Staff is seeking approval for the contract with Pioneer Resources for transit service to the city
beaches.

Detailed Summary & Background:
At the April 8, 2025 meeting, the commission approved the beach shuttle service proposal. Staff is
now seeking approval of the contract with Pioneer Resources to provide transit service from various
neighborhoods to Pere Marquette Park. The agreement includes two buses servicing stops from
Smith Ryerson Park to Pere Marquette Park on weekends only from May 23 to August 31. The amount
requested is only for May 23 to June 30 and requires a budget amendment.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:


Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life - Improved access to waterways

Amount Requested:                                     Budgeted Item:
$20,720                                                Yes            No       X    N/A

Fund(s) or Account(s):                                Budget Amendment Needed:
101-772-801                                            Yes       X    No            N/A

Recommended Motion:
To approve the contract with Pioneer Resources and authorize the mayor and clerk to sign.

Approvals:                                            Guest(s) Invited / Presenting:
Immediate Division
Head                                                    No

Information
Technology



                                                                                               Page 69 of 158
Other Division Heads
Communication
Legal Review           X




                           Page 70 of 158
                      AGREEMENT BETWEEN THE CITY OF MUSKEGON
                        AND PIONEER RESOURCES: BEACH TRANSIT

        THE AGREEMENT made effective May 23, 2025 between the City of Muskegon, located at 933
Terrace Street, Muskegon, Michigan 49443-0536 (hereinafter referred to as “Muskegon”) and Pioneer
Resources, Inc., located at 1145 Wesley, Muskegon, Michigan 49444 (hereinafter referred to as “Pioneer”).

                                                RECITALS

        A. Muskegon owns and operates a number of parks and recreational facilities in the City of
           Muskegon, including a beach at Pere Marquette Park.

        B. Muskegon believes that it would be of benefit to offer transportation between Pere Marquette
           Park (at the intersection of Indiana Street and Beach Street), Smith Ryerson Park, the
           intersection of Morris Street and Second Street, Campbell Field Park, and Grand Trunk Launch.

        C. Pioneer, as part of its mission, operates various transportation services designed to serve
           individuals with disabilities, older adults, and persons facing barriers to reliable transportation
           access.

        D. In consideration of the matters described above and of the mutual benefits set forth in this
           Agreement, the parties agree as follows:

Section 1       Recitals

        The parties agree that the Recitals provided above are true and correct and are incorporated into the
body of this Agreement.

Section 2       Services Provided by Muskegon

        A. Muskegon shall design and install signage at Pere Marquette Park (at the intersection of Indiana
           Street and Beach Street), Smith Ryerson Park, the intersection of Morris Street and Second
           Street, Campbell Field Park, and Grand Trunk Launch advertising the beach transit.

        B. Muskegon shall pay Pioneer $12,950.00 upon execution of this Agreement, subsequent
           $12,950 payments to be made on June 30,2025, on July 31, 2025, and on September 13, 2025,
           for a total of $51,800.00.

        C. The September 13, 2025 payment of $12,950.00 may be modified as follows:

            1. Decreased due to any mutually agreeable cancellations;

            2. Increased due to providing services on Monday, September 1, 2025 (Labor Day); and

            3. Increase or decrease based upon a mutually agreeable change in services.




                                                                                                          Page 71 of 158
Section 3        Services Provided by Pioneer

        A. Pioneer shall provide transportation services on Fridays, Saturdays and Sundays commencing
           on Friday, May 23, 2025, and ending on Sunday August 31, 2025. On Fridays and Saturdays,
           the hours of operation shall be from 11:00 a.m. through 9:00 p.m. On Sundays, the hours of
           operations shall be from 11:00 a.m. through 6:00 p.m.

        B. Pioneer shall provide two (2) handicapped accessible buses. Each bus shall have a minimum
           of sixteen (16) seats accommodating up to three (3) wheelchair.


        C. Pioneer shall use its employees, with proper licenses, to operate the buses. The operator shall
           drive the buses and provide assistance in entering and exiting the bus. The operator shall be
           responsible to securing all wheelchairs in a safe and secure manner.
Section 4        Relationship Between the Parties

        Pioneer shall perform and provide services under this Agreement as an independent contractor and
the individual or individuals designated by Pioneer shall remain for all purposes employees of Pioneer.
Pioneer understands that it will remain responsible for any and all wages and benefits due to said employee.
That employee shall not be entitled to any benefits from Muskegon, including, but not limited to, vacation
leave, sick leave, health insurance, disability insurance, unemployment insurance, and workers’
compensation benefits.

Section 5        Assignment

       Neither Muskegon nor Pioneer shall assign any of its rights nor transfer any of its obligations under
this Agreement to another party without the prior written consent of the other, which shall not be
unreasonably withheld.

Section 6        Severability

          If any one or more of the provisions contained herein shall for any reason be held to be invalid,
illegal, or unenforceable in any respect, then such provision or provisions shall be deemed severable from
the remaining provisions hereof, and such invalidity, illegality or unenforceability shall not affect any other
provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision
and never been contained herein.

Section 7        Notice

         Notices shall be given by personal service, fax, e-mail, or United States pre-paid postage for first
class, registered or certified mail. Notices of termination shall be sent as follows:

 To: Muskegon                                           To: Pioneer

 933 Terrace Street                                     1145 Wesley Ave
 Muskegon, MI 49440                                     Muskegon, MI 49442
 Attn: Jonathan Seyferth, City Manager                  Attn: Jill Bonthuis, Chief Executive Officer




                                                                                                           Page 72 of 158
Section 8        Entire Agreement and Amendment

         In conjunction with the matters considered herein, this Agreement contains the entire understanding
and agreement of the parties and there have been no promises, representations, agreements, warranties, or
undertakings by any of the parties, either oral or written, of any character or nature hereafter binding except
as set forth herein. This Agreement may be altered, amended, or modified only by an instrument in writing,
executed by City Manager for Muskegon and Chief Executive Officer for Pioneer and by no other means.
Each party waives their future right to claim, contest or assert that this Agreement was modified, canceled,
superseded, or changed by any oral agreements, course of conduct waiver or estoppel.

        Section 9        No Third-Party Beneficiary

        No person dealing with Muskegon or Pioneer shall be, nor shall any of them be deemed to be, third-
party beneficiaries of this Agreement. This Agreement is not intended to, nor shall it be interpreted to
create a special relationship between Muskegon and Pioneer and any staff, visitors, residents, or other
individuals who may have business through Muskegon or Pioneer.

Section 10       Insurance and Waiver of Claims

         Muskegon will submit to Pioneer and Pioneer shall submit to Muskegon a Certificate of Insurance
certifying that for the period covered by this Agreement, each party carries and has added the other party
to the following insurance policies:

         A. Worker’s compensation insurance including Employer’s Liability Coverage in accordance with
all applicable statutes of the State of Michigan.

        B. General Liability insurance, including a Broad Form General Liability Endorsement or
equivalent, with minimum aggregate limits of $1,000,000 to protect the other party against claims for
damage to property of others or for injury to or death of one more than one person due to accidents which
may occur or result from the Subrecipient’s performance under this Agreement.

         C. Motor vehicle liability insurance including Michigan No-Fault Coverage, with limits of
Liability not less than $1,000,000 per occurrence for personal injury and for property damage. Coverage
shall include all owned vehicles, all non-owned vehicles, and all hired vehicles.

        D. Any and all additional insurance required by the laws of the State of Michigan.

         The insurance certificates required under this Agreement shall name Muskegon and Pioneer as an
additional insured party and shall obligate the insurer to provide a defense against all claims brought against
either party by virtue of this Agreement. Documentation shall include evidence of coverage as it applies to
the specific delivery of services as outlined by the Agreement herein. The certificate shall provide that they
cannot be canceled or modified without sixty (60) days advance written notice to the other party by the
insurance company. Either party may waive subrogation on its policy(ies).




                                                                                                           Page 73 of 158
Section 11      Terms and Conditions

         The terms and conditions used in this Agreement shall be given their common and ordinary
definition and will not be construed against either party.

Section 12      Execution of Counterparts

         This Agreement may be executed in any number of counterparts and each such counterparts shall
for all purposes be deemed to be an original; and all such counterparts, or as many of them as the parties
shall preserve undestroyed, shall together constitute one and the same instrument.

Section 13      Authority

         All parties to this Agreement warrant and represent that they have the power and authority to enter
into this Agreement in the names, titles, and capacities herein stated and on behalf of any entities, person,
or firms represented or purported to be represented by such entity(ies), person(s), or firm(s) and that all
formal requirements necessary or required by any State and/or Federal law in order to enter into this
Agreement have been fully complied with.

        In Witness Whereof the parties have executed this Agreement in their respective cities.

 Pioneer Resources, Inc.                               City of Muskegon

                                                       By: ___________________________________
 By: ____                                              Name: Jonathan Seyferth
 _______________________________                       Its: Manager
 Name: Jill Bonthuis                                   Date: _______________________
 Its: Chief Executive Officer
 Date: __5/20/2025________________



                                                       By: ___________________________________
                                                       Name: Ann Meisch
                                                       Its: Clerk
                                                       Date: _______________________




                                                                                                         Page 74 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025            Title: Juneteenth Resolution 2025

Submitted by: Jonathan Seyferth, City Manager    Department: Manager's Office

Brief Summary:
Resolution to recognize Thursday, June 19, 2025, as Juneteenth National Independence Day and to
authorize the flying of the Juneteenth Flag at City Hall and Hackely Park.

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

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 75 of 158
                                       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 76 of 158
NOW, THEREFORE, BE IT RESOLVED that the City Commission for the City of Muskegon respectfully
honors, acknowledges and reaffirms 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 Muskegon City Hall and
at Hackley Park in Muskegon on Thursday, June 19, 2025.

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 27, 2025.



By:       _______________________________
          Kenneth D. Johnson, Mayor



By:       ________________________________
          Ann Marie Meisch, MMC – City Clerk




                                                                                                     Page 77 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025              Title: Recognizing June as Pride Month

Submitted by: Ken Johnson, Mayor                   Department: Manager's Office

Brief Summary:
June is Pride Month; the following resolution is offered as a way to acknowledge Pride Month and the
LGBTQ+ community. The resolution notes that the Pride Flag will be flown at Hackley Park during Pride
Month and that a Pride Display can be done at City Hall.

Detailed Summary & Background:

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
More integrated community

Goal/Action Item:
2027 Goal 3: Community Connection

Amount Requested:                                  Budgeted Item:
n/a                                                 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
Head                                                 No

Information
Technology
Other Division Heads
Communication
Legal Review




                                                                                            Page 78 of 158
                                      RESOLUTION No. ______
                      City of Muskegon Resolution Honoring Pride Month

WHEREAS, the City of Muskegon is home to a diverse and vibrant Lesbian, Gay, Bisexual,
Transgender, Queer, Intersex, and Asexual (LGBTQIA) community, and is committed to supporting
their visibility, dignity, and inclusion; and

WHEREAS, LGBTQIA folx contribute meaningfully to every aspect of civic life, including education,
public health, business, government, sports, technology, literature, civil rights, and the arts; and

WHEREAS, each June, communities across the country commemorate Pride Month in honor of the
1969 Stonewall Uprising, a pivotal moment in the struggle for LGBTQIA rights and justice; and

WHEREAS, Pride Month is a time to honor the resilience, contributions, and advocacy of LGBTQIA
people, to recognize the progress that has been made, and to reaffirm the City’s steadfast
commitment to equality and respect for all residents, employees, and visitors; and

WHEREAS, despite advancements, LGBTQIA individuals continue to face discrimination and
marginalization, underscoring the importance of solidarity, public recognition, and active support
from communities like Muskegon; and

WHEREAS, symbols such as the Pride Flag represent diversity, inclusion, and joy, with their public
display promoting awareness and acceptance; and

WHEREAS, the City of Muskegon is proud to host the Muskegon Pride Festival in Downtown
Muskegon, drawing thousands of people from throughout West Michigan and beyond.

NOW, THEREFORE, BE IT RESOLVED, that the City Commission of the City of Muskegon hereby
proclaims June as Pride Month in the City of Muskegon; and

BE IT FURTHER RESOLVED that, in celebration of Pride Month, the City of Muskegon will fly the
Pride Flag at Hackley Park throughout the month of June 2025, save for June 16-19 when the
Juneteenth Flag will be flown, and will also host a Pride-themed garden display at City Hall as a
visible expression of support, respect, and unity.

The foregoing Resolution was presented by Mayor Johnson, acted upon by Commissioner _______
for adoption, which was supported by Commissioner _______, and was duly passed at a general
session of the City of Muskegon City Commission.

                                               IN WITNESS WHEREOF, I hereunto set my hand and
                                               cause the seal of the City to be affixed this 27th day
                                               of May, 2025.




                                               Kenneth D. Johnson, Mayor




                                                                                                    Page 79 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025               Title: Rezoning of 236 Monroe Ave.

Submitted by: Mike Franzak, Planning Director       Department: Planning

Brief Summary:
Staff-initiated request to rezone the property at 236 Monroe Ave from B-2, Convenience &
Comparison Business to Form Based Code, Urban Residential.

Detailed Summary & Background:
At the April Planning Commission meeting, this property was recommended to be rezoned to FBC-MS
along with the property to the east. However, a neighbor at the Public Hearing noted that this
designation would allow for a parking lot to be built next to their townhouse. After further
examination, staff recommended that this property be rezoned to FBC-UR, which would allow for a
narrow housing unit, but not a parking lot. The request to rezone the parcel to FBC-UR returned to the
May Planning Commission meeting, where it was unanimously recommended for approval.

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:
I move that the request to rezone the property at 236 Monroe Ave from B-2, Convenience &
Comparison Business to Form Based Code, Urban Residential be approved.

Approvals:                                          Guest(s) Invited / Presenting:
Immediate Division        X
Head                                                  No

Information
Technology



                                                                                             Page 80 of 158
Other Division Heads
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                       Page 81 of 158
Page 82 of 158
Page 83 of 158
Page 84 of 158
                                        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 236 Monroe Ave from
B-2 to Form Based Code, UR.


THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
The zoning map of the City of Muskegon is hereby amended to change the zoning from B-2 to FBC, UR.


This ordinance adopted:
Ayes:
        Nayes:
Adoption Date:
Effective Date:
First Reading:
Second Reading:



                                                CITY OF MUSKEGON


                                                    By: __________________________
                                                       Ann Meisch, MMC
                                                       City Clerk




                                                                                                     Page 85 of 158
                                                CERTIFICATE

                                    (Rezoning of 236 Monroe to FBC, UR)


The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does
hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission
of the City of Muskegon, at a regular meeting of the City Commission on the 27th 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: ___________________, 2025            ________________________________
                                            Ann Meisch, MMC
                                            Clerk, City of Muskegon




Publish       Notice of Adoption to be published once within ten (10) days of final adoption.




                                                                                                         Page 86 of 158
                                                    CITY OF MUSKEGON
                                                   NOTICE OF ADOPTION


Please take notice that on May 27, 2025, the City Commission of the City of Muskegon adopted an ordinance
amending the zoning map to provide for the change of zoning for 236 Monroe Ave to FBC, UR.

Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the
City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.


         This ordinance amendment is effective ten days from the date of this publication.


Published ____________________, 2025
                                                               By ___________________________
                                                                        Ann Meisch, MMC
                                                                        City Clerk


---------------------------------------------------------------------------------------------------------------------


PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.


Account No. 101-80400-5354




                                                                                                                        Page 87 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025                 Title: Amendment to the zoning ordinance,
                                                      definition of "family."

Submitted by: Mike Franzak, Planning Director         Department: Planning

Brief Summary:
Staff-initiated request to amend Article II of the zoning ordinance to amend the definition of "family."
The Planning Commission unanimously voted to recommend approval of the amendment at their
May meeting.

Detailed Summary & Background:
Staff is proposing to amend the definition of "family" in the zoning ordinance to better reflect the
current living situations of many homes in the community. There are many homes throughout the city
that exceed the number of people allowed under the current definition of family, although it is rarely
enforced - mostly because there are not any complaints that would warrant investigation. Increasing
the number of unrelated people allowed in a house would better reflect many living situations
already present in the community. However, staff from various city departments have noted issues
with too many adults living within the same dwelling unit. These issues include stress on aging houses,
overcrowding, over-use of amenities/utilities, potential for emergency service calls, and storage of
materials. Staff agree that a couple more adults allowed in a housing unit should not warrant too
much concern on these issues, but any household larger than that should be situated in a group
home or single room-occupancy type building, which are better equipped to host these types of
living situations.

Please see the existing definition of Family in the zoning ordinance:

Family: means one of the following:
Family, Domestic: One or more persons living together and related by the bonds of blood, marriage,
guardianship, foster relation, or adoption, and not more than two additional unrelated persons, with
all such individuals being domiciled together as a single, domestic, housekeeping unit in the dwelling.
Functional Family: The following persons shall be considered a functional family: Persons living
together in a dwelling unit whose relationship is of a permanent and distinct character and is the
functional equivalent of a domestic family, with a demonstrable and recognizable bond which
constitutes the functional equivalent of the bonds which render the domestic family a cohesive unit.
All persons of the functional family must be cooking and otherwise housekeeping as a single,
nonprofit unit. At least one person in the functional family must be the record or equitable owner of
the property or dwelling unit, or the primary tenant under a written lease having a least one year’s
duration. This definition shall not include any society, club, fraternity, sorority, association, lodge,
coterie, organization, rooming house, rooming units, or group where the common living arrangement
and/or the basis for the establishment of the functional equivalency of the domestic family is likely or
contemplated to exist for a limited or temporary duration. The definition of functional family shall not
include a living arrangement where there exists less than 225 square feet of living space in the


                                                                                              Page 88 of 158
dwelling unit per person residing therein, or insufficient off-street parking located entirely on the
property for all vehicles used by the said residents.
Applicability: Living arrangements which would otherwise comply with the description of a family
shall not constitute a family if the said arrangements have occurred as a result of commercial or
other advertising, or the offering of rooms for rent. Any financial arrangement, except a true sharing
of the expenses of all the facilities in the single household unit shall be presumed to constitute renting
a room or rooms, and to have resulted from the offering of rooms for rent or commercial or other
advertising. Where rooms have been rented, or persons live in the house in response to commercial
advertising or the offering of rooms for rent, the living arrangement shall be presumed to constitute a
rooming house and not a family. A person claiming the status of family shall have the burden of proof
of each of the elements set forth in the relevant definitions of this ordinance.

The current definition of domestic family would allow up to three unrelated adults to live in a single
housing unit.
The current definition of a functional family would allow an unlimited amount of unrelated people to
share a home (as long as they function as a family as described by the ordinance and its not
commercially advertised), with the only restriction being a minimum of 225 sf of space per person. A
4,000 sf house would allow up to 17 people.

Staff is proposing to amend the definition of family to the following:

Family: One or more persons living together and related by the bonds of blood, marriage,
guardianship, foster relation, or adoption, and not more than four additional unrelated persons, with
all such individuals being domiciled together as a single, domestic, housekeeping unit in the dwelling.

This definition would increase the number of unrelated people allowed in a house from three to five.

Looking forward to the following case, rooming houses would allow opportunities for households
between 6-8 unrelated people and single-room occupancy homes would allow up to 25 unrelated
people.


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:
I move that the request to amend Section II of the zoning ordinance to amend the definition of family
be approved as presented.

Approvals:                                            Guest(s) Invited / Presenting:


                                                                                                Page 89 of 158
Immediate Division     X
Head                       No

Information
Technology
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                                Page 90 of 158
                                          CITY OF MUSKEGON

                                   MUSKEGON COUNTY, MICHIGAN

                                         ORDINANCE NO._____


An ordinance to amend Article II of the zoning ordinance to amend the definition of family.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

Article II

Family: One or more persons living together and related by the bonds of blood, marriage, guardianship, foster
relation, or adoption, and not more than four additional unrelated persons, with all such individuals being
domiciled together as a single, domestic, housekeeping unit in the dwelling.

This ordinance adopted:

Ayes:______________________________________________________________

Nayes:_____________________________________________________________

Adoption Date:

Effective Date:

First Reading:

Second Reading:

                                                    CITY OF MUSKEGON

                                                    By: _________________________________
                                                           Ann Meisch, MMC, City Clerk




                                                                                                    Page 91 of 158
                                       CERTIFICATE

The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the 27th 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: ___________________, 2025.          __________________________________________
                                           Ann Meisch, MMC
                                           Clerk, City of Muskegon




Publish:      Notice of Adoption to be published once within ten (10) days of final adoption.




                                                                                            Page 92 of 158
                                           CITY OF MUSKEGON
                                          NOTICE OF ADOPTION

Please take notice that on May 27, 2025, the City Commission of the City of Muskegon adopted
an ordinance to amend Article II of the zoning ordinance to amend the definition of family.
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 ____________________, 2025.                          CITY OF MUSKEGON


                                                               By _________________________________
                                                                        Ann Meisch, MMC
                                                                        City Clerk


---------------------------------------------------------------------------------------------------------------------


PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.


Account No. 101-80400-5354




                                                                                                                 Page 93 of 158
                           Agenda Item Review Form
                           Muskegon City Commission
Commission Meeting Date: May 27, 2025                    Title: Amendment to the zoning ordinance,
                                                         creating regulations for "single-room occupancy
                                                         homes" and "rooming houses."

Submitted by: Mike Franzak, Planning Director            Department: Planning

Brief Summary:
Staff-initiated request to amend the zoning ordinance to create a section that allows for single-room
occupancy homes and rooming house uses. The Planning Commission unanimously recommended
approval of the amendment at their May meeting.

Detailed Summary & Background:
Staff had been asked by the City Commission to explore the option of allowing Single-Room Occupancy
homes in the City. A Single-Room Occupancy is a dwelling unit within a housing structure that does not
have its own kitchen, or usually even a bathroom, where the tenants share common amenities like
kitchens, bathrooms, laundry facilities, etc. This type of use actually happens under the radar quite often,
with inspectors finding them periodically in the City. Sometimes these non-permitted uses have the owner
living on-site, sometimes they do not. Through research, staff have discovered that the term "boarding
house" is often associated with a use where the owner or manager lives on-site and rents out rooms with
common amenities. The term "single-room occupancy" is often associated with a use where neither the
owner nor a manager resides on site and rents out rooms with common amenities. Our current zoning
ordinance does not have a definition for single-room occupancy, but it does have a definition for
"rooming house", although they are only allowed in RM-2 and RM-3 zoning districts and only up to five
people are allowed in the house. It also does not require the owner or manager to live on site. See
definition below.
Rooming House: A dwelling structure having single rooms for rent and having no common areas except
common places for the taking of meals, or baths, or laundry facilities, and not defined as a tourist home,
or state-licensed residential facility.
Staff recommend amending this definition to require the owner or manager to reside on-site, to distinguish
it from the proposed single-occupancy ordinance. Staff also recommend creating a new section in the
ordinance that regulates both "rooming houses" and "SRO's."

Most requests for SRO buildings will likely be for former assembly buildings, such as schools and churches,
or potentially commercial/office buildings. Most schools and churches have an R, Neighborhood
Residential zoning. The master plan recommends allowing higher density for adaptive reuse of these types
of buildings. Staff recommend that SRO's be allowed in RM-1, Low Density Multi-Family districts. This would
require rezoning most of these types of buildings, but would be supported by the master plan because it
allows different types of residential uses, so they would not be considered spot zones. The density
requirement proposed for these SRO's also closely resembles that of the RM-1 districts. Staff also
recommend that we amend the ordinance at a later date to allow "rooming houses," where the owner
lives on site, in the R, Neighborhood Residential and FBC, Urban Residential districts, with stricter guidelines
on spacing and fewer allowed roomers, so that traditional houses do not become overcrowded and


                                                                                                    Page 94 of 158
stressed. A "rooming house" would be for fewer people and be allowed in more traditional houses while
an "SRO" would be for more people and be required to be in larger buildings more equipped for density.

Proposed definitions:

Rooming House: A dwelling structure having single rooms for rent and having no common areas except
common places for the taking of meals, or baths, or laundry facilities, and not defined as a tourist home,
or state-licensed residential facility. The owner or manager of the property must live on-site.
Single Room Occupancy (SRO) Home: A dwelling structure having single bedrooms for rent by tenants
and having common areas such as kitchens, bathrooms, or laundry facilities available to all tenants. The
owner of the property or manager may or may not live on-site. This does not include uses defined as a
tourist home, or state-licensed residential facility.


Proposed ordinance:
Section 2318: Single-Use Occupancies & Rooming Houses

Rooming Houses are allowed as a principal use permitted in R, Neighborhood Residential, FBC, Urban
Residential and RM-1 districts under the following conditions:

1. The owner or property manager must live on site.
2. There may be up to two people per bedroom. A bedroom must have at least 100 sf of space for a
single tenant and at least 200 sf of space for two tenants.
3. Houses at least 2,000 sf in size may allow up to six people to live on-site. Houses at least 2,500 sf may
allow up to eight people to live on-site.
4. Parking requirements of the zoning district must be followed.


Single-Room Occupancy Homes are allowed as a special use permitted in RM-1 districts under the
following conditions:

1. The property owner or manager may or may not live on site.
2. There may be up to two people per bedroom. A bedroom must have at least 100 sf of space for a
single tenant and at least 200 sf of space for two tenants.
3. There shall not be more than 20 bedrooms per building.
4. There shall not be more than 25 people per building, regardless of the number of two-bedrooms
available.
5. There shall only be one building that houses people per parcel.
4. All bedroom occupants shall have access to common areas and amenities such as kitchen, bathrooms,
laundry, etc.
5. At least 90% of the SRO units shall be occupied by the same tenants for a continuous period of at least
90 days.
6. One parking space is required for every 3 bedrooms.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested:                                         Budgeted Item:
N/A


                                                                                                     Page 95 of 158
                                                    Yes           No           N/A    X

Fund(s) or Account(s):                             Budget Amendment Needed:
N/A                                                 Yes           No           N/A    X

Recommended Motion:
I move that the request to amend Section 2318 of the zoning ordinance to create regulations for
single-room occupancy and rooming houses be approved as presented.

Approvals:                                         Guest(s) Invited / Presenting:
Immediate Division        X
Head                                                No

Information
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Other Division Heads
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                                                                                          Page 96 of 158
                                           CITY OF MUSKEGON

                                    MUSKEGON COUNTY, MICHIGAN

                                          ORDINANCE NO._____


An ordinance to amend Section 2318 of the zoning ordinance to create regulations for single-room
occupancies.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

Definitions:

Rooming House: A dwelling structure having single rooms for rent and having no common areas except
common places for the taking of meals, or baths, or laundry facilities, and not defined as a tourist home, or
state-licensed residential facility. The owner or manager of the property must live on-site.

Single Room Occupancy (SRO) Home: A dwelling structure having single bedrooms for rent by tenants and
having common areas such as kitchens, bathrooms, or laundry facilities available to all tenants. The owner of
the property or manager may or may not live on-site. This does not include uses defined as a tourist home, or
state-licensed residential facility.

Section 2318: Single-Use Occupancies & Rooming Houses:

Rooming Houses are allowed as a principal use permitted in R, Neighborhood Residential, FBC, Urban
Residential and RM-1 districts under the following conditions:

1. The owner or property manager must live on site.
2. There may be up to two people per bedroom. A bedroom must have at least 100 sf of space for a single
tenant and at least 200 sf of space for two tenants.
3. Houses at least 2,000 sf in size may allow up to six people to live on-site. Houses at least 2,500 sf may
allow up to eight people to live on-site.
4. Parking requirements of the zoning district must be followed.

Single-Room Occupancy Homes are allowed as a special use permitted in RM-1 districts under the following
conditions:

1. The property owner or manager may or may not live on site.
2. There may be up to two people per bedroom. A bedroom must have at least 100 sf of space for a single
tenant and at least 200 sf of space for two tenants.
3. There shall not be more than 20 bedrooms per building.
4. There shall not be more than 25 people per building, regardless of the number of two-bedrooms available.
5. There shall only be one building that houses people per parcel.
4. All bedroom occupants shall have access to common areas and amenities such as kitchen, bathrooms,
laundry, etc.
5. At least 90% of the SRO units shall be occupied by the same tenants for a continuous period of at least 90



                                                                                                       Page 97 of 158
days.
6. One parking space is required for every 3 bedrooms.

This ordinance adopted:

Ayes:______________________________________________________________

Nayes:_____________________________________________________________

Adoption Date:

Effective Date:

First Reading:

Second Reading:

                                                   CITY OF MUSKEGON

                                                   By: _________________________________
                                                          Ann Meisch, MMC, City Clerk




                                                                                           Page 98 of 158
                                       CERTIFICATE

The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the 27th 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: ___________________, 2025.          __________________________________________
                                           Ann Meisch, MMC
                                           Clerk, City of Muskegon




Publish:      Notice of Adoption to be published once within ten (10) days of final adoption.




                                                                                            Page 99 of 158
                                           CITY OF MUSKEGON
                                          NOTICE OF ADOPTION

Please take notice that on May 27, 2025, the City Commission of the City of Muskegon adopted
an ordinance to amend Section 2101 of the zoning ordinance to create regulations for single-room
occupancies.
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 ____________________, 2025.                          CITY OF MUSKEGON


                                                               By _________________________________
                                                                        Ann Meisch, MMC
                                                                        City Clerk


---------------------------------------------------------------------------------------------------------------------


PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.


Account No. 101-80400-5354




                                                                                                               Page 100 of 158
                          Agenda Item Review Form
                          Muskegon City Commission
Commission Meeting Date: May 27, 2025                  Title: Resolution for 350 W Western Ave Social
                                                       District Permit

Submitted by: Deborah Sweet, Community                 Department: Community Engagement
Engagement Manager

Brief Summary:
Pavlik Muskegon Investments, LLC is requesting to join the Downtown Muskegon Social District for their
new restaurant, The Western Reserve, located at 350 W Western Ave.

Detailed Summary & Background:
Pavlik Muskegon Investments, LLC is requesting to join the Downtown Muskegon Social District for their
new restaurant, The Western Reserve, located at 350 W Western Ave—the former site of 18th
Amendment. The Michigan Liquor Control Commission (MLCC) has approved their license, and a
conditional license has already been issued, with the final license expected next week. To meet state
requirements under MCL 436.1551, the business must now receive approval from the City Commission
in order to apply for a Social District Permit. The Western Reserve plans to offer steaks, smash burgers,
and wood-fired pizza, with a targeted opening by Memorial Day. Upon approval, staff will
coordinate with the business to provide training on social district rules as outlined in our social district
processes.

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 Social District Permit for Pavlik Muskegon Investments, LLC at 350 W Western Ave,
Muskegon, MI 49440 for consideration by the Michigan Liquor Control Commission.

Approvals:                                             Guest(s) Invited / Presenting:



                                                                                                 Page 101 of 158
Immediate Division         No
Head
Information
Technology
Other Division Heads
Communication          x
Legal Review




                                Page 102 of 158
                                                          Michigan Department of Licensing and Regulatory Affairs
                                                                                                                                                                      Business ID:
                                                                     Liquor Control Commission (MLCC)                                                                                       0288241
                                                              Toll-Free: 866-813-0011 - www.michigan.gov/lcc                                                          Request ID:

                                                                                                                                                                                             (For MLCC Use Only)

                                                                         Social District Permit Application
Part 1 - Licensee Information
Individuals, please state your legal name. Corporations or Limited Liability Companies, please state your name as it appears on your Articles of Incorporation / Organization.

Licensee name:
               Pavlik Muskegon Investments, LLC
Address:
          350 W. Western Ave
City:                           State:           Zip Code:
      Muskegon                         MI                  49440
Contact Name:
              Tyler Pavlik Phone: (231) 531-2015 Email: tyler3559@gmail.com
Part 2 - Required Documents & Fees

          Local Governmental Unit Approval
    ✘     Approval from the local governmental unit (city council, township board, village council) is required to be submitted with this application
          (See page 2 for approval form)

                                                                                                                                                                       Leave Blank - MLCC Use Only
                                                                                                            TOTAL DUE:
    ✘    $70.00 Inspection Fee (MLCC Fee Code 4036)
                                                                                                             $320.00
    ✘    $250.00 Social District Permit Fee (MLCC Fee Code 4081)                            Make checks payable to State of Michigan



Part 3 - Signature of Licensee
Under administrative rule R 436.1003, the licensee shall comply with all state and local building, plumbing, zoning, sanitation, and health
laws, rules, and ordinances as determined by the state and local law enforcements officials who have jurisdiction over the licensee.
Approval of this application by the Michigan Liquor Control Commission does not waive any of these requirements. The licensee must
obtain all other required state and local licenses, permits, and approvals for this business before using this permit for the sale of alcoholic
liquor on the licensed premises.

I certify that the information contained in this form is true and accurate to the best of my knowledge and belief. I agree to comply with all
requirements of the Michigan Liquor Control Code and Administrative Rules. I also understand that providing false or fraudulent
information is a violation of the Liquor Control Code pursuant to MCL 436.2003.

The person signing this form has demonstrated that they have authorization to do so and have attached appropriate documentation as
proof.

 Pavlik Muskegon Investments, LLC by Tyler Pavlik
                                                                                           ID gWDMAwMrSpNQovbuEtmao5m2
                                                                                                                                                                                 5/15/2025
                  Print Name of Licensee & Title                                                          Signature of Licensee                                                                  Date

                                                              Please return this completed form and fees to:
                                                                   Michigan Liquor Control Commission
                                                            Mailing address: P.O. Box 30005, Lansing, MI 48909
                                                    Overnight deliveries: 2407 N. Grand River Avenue, Lansing, MI 48906
                                                           Fax with Credit Card Authorization to: 517-284-8557




LCC-208 (03-22)             LARA is an equal opportunity employer/program. Auxiliary aids, services and other reasonable accommodations are available upon request to individuals with disabilities.      Page 1 of 2
                                                                                                                                                                                                Page 103 of 158
                                                         Michigan Department of Licensing and Regulatory Affairs                                                      Business ID:         0288241
                                                                    Liquor Control Commission (MLCC)
                                                             Toll Free: 866-813-0011 • www.michigan.gov/lcc                                                           Request ID:
                                                                                                                                                                                               (For MLCC use only)


                                                Local Governmental Unit Approval For Social District Permit

Instructions for Governing Body of Local Governmental Unit:
A qualified licensee that wishes to apply for a Social District Permit must first obtain approval from the governing body of the local governmental unit where the
licensee is located and for which the local governmental unit has designated a social district with a commons area that is clearly marked and shared by and
contiguous to the licensed premises of at least two (2) qualified licensees, pursuant to MCL 436.1551. Complete this resolution or provide a resolution, along with
certification from the clerk or adopted minutes from the meeting at which this request was considered.


   At a                                                        meeting of the                                         City of Muskegon                                                     council/board
                   (regular or special)                                                                                (name of city, township, or village)


   called to order by                                                                                             on                                               at
                                                                                                                                        (date)                                          (time)
   the following resolution was offered:

   Moved by                                                                                       and supported by

   that the application from          Pavlik Muskegon Investments, LLC
                                                                              (name of licensee - if a corporation or limited liability company, please state the company name)


   for a Social District Permit is                                                                                            by this body for consideration for approval by the
                                                                   (recommended/not recommended)
   Michigan Liquor Control Commission.

   If not recommended, state the reason:

                                                                                                    Vote

                                                                                             Yeas:
                                                                                            Nays:
                                                                                           Absent:

   I hereby certify that the foregoing is true and is a complete copy of the resolution offered and adopted by the
                                                                                                                                                                                (name of city, township, or village)
   council/board at a                                                                            meeting held on
                                                  (regular or special)                                                                           (date)



   I further certify that the licensed premises of the aforementioned licensee are contiguous to the commons area designated by the
   council/board as part of a social district pursuant to MCL 436.1551.




                  Print Name of Clerk                                                                     Signature of Clerk                                                                   Date


Under Article IV, Section 40, of the Constitution of Michigan (1963), the Commission shall exercise complete control of the alcoholic beverage traffic
within this state, including the retail sales thereof, subject to statutory limitations. Further, the Commission shall have the sole right, power, and duty to
control the alcoholic beverage traffic and traffic in other alcoholic liquor within this state, including the licensure of businesses and individuals.




LCC-208 (03-22)      LARA is an equal opportunity employer/program.Auxiliary aids, services and other reasonable accommodations are available upon request to individuals with disabilities.                 Page 2 of 2
                                                                                                                                                                                               Page 104 of 158
eSignature Details

Signer ID:       gWDMAwMrSpNQovbuEtmao5m2
Signed by:       Tyler Pavlik
Sent to email:   tyler3559@gmail.com
IP Address:      174.174.171.73
Signed at:       May 15 2025, 7:52 am EDT




                                            Page 105 of 158
                        Agenda Item Review Form
                        Muskegon City Commission
Commission Meeting Date: May 27, 2025              Title: Contract Award: H92405 Sun Dolphin and
                                                   Oak Resurfacing

Submitted by: Dan VanderHeide, Public Works        Department: DPW- Engineering
Director, Joel Brookens, Engineer

Brief Summary:
Staff is requesting authorization to approve a contract with McCormick Sand, Inc. in the amount of
$345,519.50 for road resurfacing work on Sun Dolphin and Oak Ave.

Detailed Summary & Background:
Bids were solicited for a construction project to resurface Sun Dolphin from Sherman to Harris and
Oak Ave from Harvey east to the City Limits. McCormick Sand provided the low bid. Bid tabulation is
attached. The bids came in under budget and engineers estimate.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:


Goal/Action Item:
2027 GOAL 4: FINANCIAL INFRASTRUCTURE - Maximized efficient use of existing infrastructure

Amount Requested:                                  Budgeted Item:
$345,519.50                                         Yes      x    No           N/A

Fund(s) or Account(s):                             Budget Amendment Needed:
202-901-801-92405 (Major Streets)                   Yes           No       x   N/A

Recommended Motion:
Move to authorize staff to enter into a contract with McCormick Sand, Inc. in the amount of
$345,519.50 for the resurfacing of Sun Dolphin and Oak according to the construction plans.

Approvals:                                         Guest(s) Invited / Presenting:
Immediate Division        x
Head                                                 No

Information
Technology
Other Division Heads


                                                                                        Page 106 of 158
Communication
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                Page 107 of 158
                                                                               BID TABULATION
            City of Muskegon                                                                      Project Engineer: JB                      Date:           5/15/2025
            Egineering Department                                                                  Project Number: H92405
                                                                                                Project description: Sun Dolphin and Oak Resurfacing

                                                                                                                                            Engineers Estimate                        McCormick Sand                          Asphalt Paving Inc                               Rieth-Riley                             Wyoming Excavators                     Michigan Paving & Matrls

Line Item     Pay Code   Description                                                                   Units         Quantity         Unit Price           Total               Unit Price          Total                Unit Price           Total                Unit Price                 Total                Unit Price          Total                Unit Price           Total

                         SUN DOLPHIN

   1            1100001 Mobilization, Max 10%                                                         LSUM               1        $       25,000.00    $    25,000.00      $      17,670.00    $       17,670.00    $      20,000.00    $      20,000.00      $      11,500.00      $          11,500.00      $      23,000.00    $     23,000.00      $      18,394.94    $      18,394.94

   2            2040020 Curb and Gutter, Rem                                                            Ft              59        $          20.00 $         1,180.00 $                10.00   $           590.00 $            10.00    $            590.00 $            20.00      $           1,180.00 $               19.00    $         1,121.00 $            20.00    $       1,180.00

   3            2040055 Sidewalk, Rem                                                                   Syd             15        $          12.50     $         187.50 $              10.00   $           150.00 $            10.00    $            150.00 $            30.00      $                450.00 $            23.00    $           345.00 $            30.00    $            450.00

   4            2057002 Machine Grading, Modified                                                       Sta            14.53      $        1,353.00    $    19,659.09      $         500.00    $        7,265.00 $            500.00    $          7,265.00 $           550.00      $           7,991.50 $            2,750.00 $        39,957.50      $         550.00    $       7,991.50

   5            2080020 Erosion Control, Inlet Protection, Fabric Drop                                  Ea               8        $         117.00     $         936.00 $              60.00   $           480.00 $            60.00    $            480.00 $           150.00      $           1,200.00 $              155.00    $         1,240.00 $           175.00    $       1,400.00

   6            3062000 Driveway Maintenance, Commercial                                                Ea               15       $        1,000.00    $    15,000.00      $         250.00    $        3,750.00 $            250.00    $          3,750.00 $           800.00 $               12,000.00      $         226.00    $         3,390.00 $           175.00    $       2,625.00

   7            3062002 Intersection Maintenance                                                        Ea               4        $        1,200.00 $        4,800.00 $              500.00    $        2,000.00 $            500.00    $          2,000.00 $           800.00      $           3,200.00 $              640.00    $         2,560.00 $           500.00    $       2,000.00

   8            4030004 Dr Structure Cover, Adj, Case 1, Modified                                       Ea               10       $         500.00 $         5,000.00 $             1,200.00 $         12,000.00    $       1,200.00 $         12,000.00      $         885.00      $           8,850.00 $            1,126.00 $        11,260.00      $         885.00    $       8,850.00

   9            4037050 Dr Structure Cover, Type B, Modified                                            Ea               9        $         540.00 $         4,860.00 $              600.00    $        5,400.00 $            600.00    $          5,400.00 $           600.00      $           5,400.00 $              615.00    $         5,535.00 $           600.00    $       5,400.00

   10           4037050 Dr Structure Cover, Type D, Modified                                            Ea               1        $         740.00     $         740.00 $            750.00    $           750.00 $           750.00    $            750.00 $           650.00      $                650.00 $           771.00    $           771.00 $           650.00    $            650.00

   11           5010005 HMA Surface, Rem                                                                Syd            5335       $            5.30    $    28,275.50      $            1.50   $        8,002.50    $            1.50   $          8,002.50   $            3.51 $              18,725.85      $            1.00   $         5,335.00   $            2.50 $        13,337.50

   12           5010025 Hand Patching                                                                  Ton              10        $         200.00 $         2,000.00      $         150.00    $        1,500.00    $         150.00    $          1,500.00   $         280.00      $           2,800.00      $         150.00    $         1,500.00   $         350.00    $       3,500.00

   13           5012025 HMA, 4EML                                                                      Ton             1174       $         100.00     $   117,400.00      $           87.25   $   102,431.50       $          87.72    $     102,983.28      $         104.30      $        122,448.20       $          91.00    $    106,834.00      $         118.00    $     138,532.00

   14           8010007 Driveway, Nonreinf Conc, 8 inch                                                 Syd             48        $          63.00 $         3,024.00      $           75.00   $        3,600.00    $          80.00    $          3,840.00   $          97.08      $           4,659.84      $         108.00    $         5,184.00   $         107.50    $       5,160.00

   15           8020038 Curb and Gutter, Conc, Det F4                                                   Ft              59        $          21.30 $         1,256.70      $           50.00   $        2,950.00    $          50.00    $          2,950.00   $          62.13      $           3,665.67      $          61.00    $         3,599.00   $          61.00    $       3,599.00

   16           8120012 Barricade, Type III, High Intensity, Double Sided, Lighted, Furn                Ea               6        $          97.00     $         582.00    $           75.00   $           450.00   $          75.00    $            450.00   $          75.00      $                450.00   $          75.00    $           450.00   $          75.00    $            450.00

   17           8120013 Barricade, Type III, High Intensity, Double Sided, Lighted, Oper                Ea               6        $            1.00    $            6.00   $            5.00   $            30.00   $            5.00   $             30.00   $            5.00     $                 30.00   $            5.00   $            30.00   $            5.00   $             30.00

   18           8120170 Minor Traf Devices                                                            LSUM               1        $        1,000.00 $        1,000.00      $        3,800.00   $        3,800.00    $       9,000.00    $          9,000.00   $       4,800.00      $           4,800.00      $      18,000.00    $     18,000.00      $       9,500.00    $       9,500.00

   19           8120252 Plastic Drum, Fluorescent, Furn                                                 Ea              130       $          38.00 $         4,940.00      $           17.00   $        2,210.00    $          17.00    $          2,210.00   $          17.00      $           2,210.00      $          17.00    $         2,210.00   $          17.00    $       2,210.00

   20           8120253 Plastic Drum, Fluorescent, Oper                                                 Ea              130       $            1.00    $         130.00    $            1.00   $           130.00   $            1.00   $            130.00   $            1.00     $                130.00   $            1.00   $           130.00   $            1.00   $            130.00

   21           8120350 Sign, Type B, Temp, Prismatic, Furn                                             Sft             255       $            6.00 $        1,530.00      $            4.00   $        1,020.00    $            4.00   $          1,020.00   $            4.00     $           1,020.00      $            4.00   $         1,020.00   $            4.00   $       1,020.00

   22           8120351 Sign, Type B, Temp, Prismatic, Oper                                             Sft             255       $            1.00    $         255.00    $            1.00   $           255.00   $            1.00   $            255.00   $            1.00     $                255.00   $            1.00   $           255.00   $            1.00   $            255.00

   23           8120352 Sign, Type B, Temp, Prismatic, Spec, Furn                                       Sft              12       $            8.00    $           96.00   $            8.00   $            96.00   $            8.00   $             96.00   $            8.00     $                 96.00   $            8.00   $            96.00   $            8.00   $             96.00

   24           8120353 Sign, Type B, Temp, Prismatic, Spec, Oper                                       Sft              12       $            1.00    $           12.00   $            1.00   $            12.00   $            1.00   $             12.00   $            1.00     $                 12.00   $            1.00   $            12.00   $            1.00   $             12.00

   25           8160062 Topsoil Surface, Furn, 4 inch                                                   Syd             10        $            3.50    $           35.00   $           25.00   $           250.00   $          20.00    $            200.00   $          50.00      $                500.00   $          16.00    $           160.00   $          50.00    $            500.00

   26           8167011 Hydroseeding                                                                    Syd             10        $            0.85    $            8.50   $            5.00   $            50.00   $            4.00   $             40.00   $          50.00      $                500.00   $            6.00   $            60.00   $          50.00    $            500.00

   27           8237050 Water Valve Box and Cover, Complete                                             Ea               12       $        1,100.00    $    13,200.00      $        1,200.00 $         14,400.00    $       1,200.00 $         14,400.00      $         750.00      $           9,000.00      $       1,126.00 $        13,512.00      $         750.00    $       9,000.00

                         OAK AVE.

   1            1100001 Mobilization, Max 10%                                                         LSUM               1        $       20,000.00    $    20,000.00      $        7,500.00   $        7,500.00    $      16,000.00    $      16,000.00      $       8,100.00      $           8,100.00      $      17,000.00    $     17,000.00      $      18,000.00    $      18,000.00

   2            2080020 Erosion Control, Inlet Protection, Fabric Drop                                  Ea              11        $         117.00 $         1,287.00      $           60.00   $           660.00   $          60.00    $            660.00   $         150.00      $           1,650.00      $         155.00    $         1,705.00   $         150.00    $       1,650.00

   3            3062000 Driveway Maintenance, Commercial                                                Ea               7        $        1,000.00 $        7,000.00      $         250.00    $        1,750.00    $         250.00    $          1,750.00   $         800.00      $           5,600.00      $         226.00    $         1,582.00   $         225.00    $       1,575.00

   4            3062001 Driveway Maintenance, Residential                                               Ea               4        $         500.00 $         2,000.00      $         200.00    $           800.00   $         200.00    $            800.00   $         700.00      $           2,800.00      $         226.00    $           904.00   $         300.00    $       1,200.00

   5            3062002 Intersection Maintenance                                                        Ea               2        $        1,200.00 $        2,400.00      $         500.00    $        1,000.00    $         500.00    $          1,000.00   $       1,000.00      $           2,000.00      $         640.00    $         1,280.00   $         500.00    $       1,000.00

   6            4030004 Dr Structure Cover, Adj, Case 1, Modified                                       Ea               8        $         500.00 $         4,000.00      $        1,200.00   $        9,600.00    $       1,200.00    $          9,600.00   $         885.00      $           7,080.00      $       1,126.00    $         9,008.00   $         885.00    $       7,080.00

   7            4037050 Dr Structure Cover, Type B, Modified                                            Ea               8        $         540.00 $         4,320.00      $         600.00    $        4,800.00    $         600.00    $          4,800.00   $         600.00      $           4,800.00      $         615.00    $         4,920.00   $         600.00    $       4,800.00

   8            5010002 Cold Milling HMA Surface                                                        Syd            5575       $            8.50    $    47,387.50      $            2.50 $         13,937.50    $            2.50 $        13,937.50      $            4.80 $              26,760.00      $            1.00   $         5,575.00   $            2.50 $        13,937.50

   9            5010025 Hand Patching                                                                  Ton              10        $         200.00 $         2,000.00      $         150.00    $        1,500.00    $         150.00    $          1,500.00   $         263.96      $           2,639.60      $         150.00    $         1,500.00   $         350.00    $       3,500.00

   10           5012025 HMA, 4EML                                                                      Ton             1228       $         100.00     $   122,800.00      $           87.75   $   107,757.00       $          87.22    $     107,106.16      $          99.65      $        122,370.20       $          91.00    $    111,748.00      $         117.00    $     143,676.00

   11           8120012 Barricade, Type III, High Intensity, Double Sided, Lighted, Furn                Ea               2        $          97.00     $         194.00    $           75.00   $           150.00   $          75.00    $            150.00   $          75.00      $                150.00   $          75.00    $           150.00   $          75.00    $            150.00

   12           8120013 Barricade, Type III, High Intensity, Double Sided, Lighted, Oper                Ea               2        $            1.00    $            2.00   $            5.00   $            10.00   $            5.00   $             10.00   $            5.00     $                 10.00   $            5.00   $            10.00   $            5.00   $             10.00

   13           8120170 Minor Traf Devices                                                            LSUM               1        $        1,000.00 $        1,000.00      $        3,220.00   $        3,220.00    $       8,000.00    $          8,000.00   $       4,100.00      $           4,100.00      $      16,000.00    $     16,000.00      $       9,500.00    $       9,500.00

   14           8120252 Plastic Drum, Fluorescent, Furn                                                 Ea              38        $          38.00 $         1,444.00      $           17.00   $           646.00   $          17.00    $            646.00   $          17.00      $                646.00   $          17.00    $           646.00   $          17.00    $            646.00

   15           8120253 Plastic Drum, Fluorescent, Oper                                                 Ea               38       $            1.00    $           38.00   $            1.00   $            38.00   $            1.00   $             38.00   $            1.00     $                 38.00   $            1.00   $            38.00   $            1.00   $             38.00

   16           8120350 Sign, Type B, Temp, Prismatic, Furn                                             Sft             153       $            6.00    $         918.00    $            4.00   $           612.00   $            4.00   $            612.00   $            4.00     $                612.00   $            4.00   $           612.00   $            4.00   $            612.00

   17           8120351 Sign, Type B, Temp, Prismatic, Oper                                             Sft             153       $            1.00    $         153.00    $            1.00   $           153.00   $            1.00   $            153.00   $            1.00     $                153.00   $            1.00   $           153.00   $            1.00   $            153.00

   18           8120352 Sign, Type B, Temp, Prismatic, Spec, Furn                                       Sft              16       $            8.00    $         128.00    $            8.00   $           128.00   $            8.00   $            128.00   $            8.00     $                128.00   $            8.00   $           128.00   $            8.00   $            128.00

   19           8120353 Sign, Type B, Temp, Prismatic, Spec, Oper                                       Sft              16       $            1.00    $           16.00   $            1.00   $            16.00   $            1.00   $             16.00   $            1.00     $                 16.00   $            1.00   $            16.00   $            1.00   $             16.00

                                                                                                                                                       $             -                         $              -                         $               -                           $                   -                         $              -                         $               -


                                                                                                                                 Total:               $    468,200.79                          $   345,519.50                           $     366,410.44                            $        413,376.86                           $    420,541.50                          $     444,444.44

                                                                                                                                                                               Page 1 of 1

                                                                                                                                                                                                                                                                                                                                                            Page 108 of 158
                          Agenda Item Review Form
                          Muskegon City Commission
Commission Meeting Date: May 27, 2025                  Title: Lakeshore Art Festival Liquor License
                                                       Application

Submitted by: Kyle Karczewski, Parks and               Department: DPW- Parks
Recreation Director

Brief Summary:
The Parks & Recreation Department is seeking commission approval to apply for a special liquor
license for beer and wine at Lakeshore Art Festival. The fee for this temporary license is $50.

Detailed Summary & Background:
The Parks & Recreation Department is seeking commission approval to apply for a special liquor
license for beer and wine service for the Lakeshore Art Festival Artist Reception on June 28, 2025. The
temporary license fee for this event is $50.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Enhanced Parks and Recreation Department and Services, Events and activities

Goal/Action Item:
2027 Goal 1: Destination Community & Quality of Life

Amount Requested:                                      Budgeted Item:
$50                                                     Yes        x   No               N/A

Fund(s) or Account(s):                                 Budget Amendment Needed:
394-778-801                                             Yes            No       x       N/A

Recommended Motion:
Authorize staff to apply for a special liquor license for the Lakeshore Art Festival.

Approvals:                                             Guest(s) Invited / Presenting:
Immediate Division          x
Head                                                     No

Information
Technology
Other Division Heads




                                                                                               Page 109 of 158
Communication
Legal Review




                Page 110 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025                Title: PILOT Agreement for Park Terrace
                                                     Aparments Aquisition

Submitted by: Jake Eckholm, Development              Department: Economic Development
Services Director

Brief Summary:
The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is
seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability
period, a new Contract for Housing Exemption is required for both projects.

Detailed Summary & Background:
Staff and the City Attorney's office have been working to finalize the draft agreements before you
related to this project with the new owner. They hope to put significant capital investment into the
facilities in the coming years, and in order to finance the project and make that possible they are
requesting an updated and restated PILOT on both Park Terrace as well as the senior living
component Village at Park Terrace. The agreement reflects a slight reduction in the PILOT rate to 4%
of annual shelter rents but establishes a Municipal Services charge in a separate agreement. This is to
our advantage because the total MSA revenue stays with the City, rather than being split between
the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption
for up to 25 years, which will require adherence to MSHDA regulated rents per requirements in our
local ordinance.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Retain youth within the city

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested:                                    Budgeted Item:
N/A                                                  Yes            No           N/A

Fund(s) or Account(s):                               Budget Amendment Needed:
N/A                                                  Yes            No           N/A

Recommended Motion:
Motion to accept the Amended and Restated Contract for Housing Exemption for Park Terrace
Apartments as presented, and to authorize the Mayor and Clerk to sign.


                                                                                           Page 111 of 158
Approvals:             Guest(s) Invited / Presenting:
Immediate Division
Head                    No

Information
Technology
Other Division Heads
Communication
Legal Review




                                                        Page 112 of 158
                       CITY OF MUSKEGON
      AMENDED AND RESTATED CONTRACT FOR HOUSING EXEMPTION

This Agreement (the “Agreement”) between Park Terrace Limited Dividend Housing
Association, LLC a Michigan limited liability company whose address is 7451 N 63rd St.,
Longmont, Colorado 80503 (the “Owner”) and CITY OF MUSKEGON, whose address is 933
Terrace Street, Muskegon, Michigan (the “City”) is made pursuant to the following terms:

                                          RECITALS

   A. Owner will acquire property in the City of Muskegon more particularly described on
      Exhibit A attached hereto and intends to operate the project thereon (the “Project”) as a
      low-income housing project.

   B. As part of the transaction, Hackley Limited Dividend Housing Association, L.L.C.
      (“Hackley”) will assign its rights and obligations under that certain Contract for Housing
      Exemption, executed by Hackley and the City as of April 1, 2002, as amended by that
      certain First Amendment to Contract for Housing Exemption dated effective November
      12, 2002 (collectively, the “Contract for Housing Exemption”) to Owner.

   C. The Owner and the City desire to amend and restate the Contract for Housing Exemption
      as set forth herein so as to: (i) memorialize the service charge and term of the amended
      Contract for Housing Exemption, (ii) memorialize the assignment and assumption of the
      Contract for Housing Exemption from Hackley to Owner, and (iii) add a reference to
      Owner’s obligations under that certain Municipal Services Agreement (hereinafter
      defined) executed approximately as of the date hereof between Owner and the City. Except
      as expressly set forth herein, the parties do not intend to make any other substantive
      changes to the terms of the existing Contract for Housing Exemption.

   D. The City Code of Ordinances shall be referred to herein as the “Ordinance.”

   E. It is acknowledged that it is a proper public purpose of the State of Michigan and its
      political subdivisions to provide housing for its low income persons and families or as
      Workforce Housing and to encourage the development of such housing by providing for a
      service charge in lieu of property taxes in accordance with the Act. The City is authorized
      by this Act to establish or change the service charge to be paid in lieu of taxes by any or
      all classes of housing exempt from taxation under this Act at any amount it chooses, not to
      exceed the taxes that would be paid but for this Act. It is further acknowledged that such
      housing for low income persons and families or Workforce Housing is a public necessity,
      and as the City will be benefited and improved by such housing, the encouragement of the
      same by providing real estate tax exemption for such housing is a valid public purpose. It
      is further acknowledged that the continuance of the provisions of this Ordinance for tax
      exemption and the service charge in lieu of all ad valorem taxes during the period
      contemplated in this Ordinance are essential to the determination of economic feasibility
      of the housing projects that is constructed or rehabilitated with financing extended in
      reliance on such tax exemption.




                                                                                            Page 113 of 158
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

I.      Grant of Exemption. As contemplated and pursuant to Act 346 of the Public Acts of 1966,
the State Housing Development Act (the “Act”), the City hereby grants an exemption from all ad
valorem property taxes attributable to any units of the building, provided such building contains
151 rental units offered to “low-income persons and families” or as “Workforce Housing,” each
as defined by MCL 125.1415a of the Michigan State Housing Development Authority Act of 1966
(the “Authority”). This exemption is contingent upon Owner acquiring the real property described
in Exhibit A by September 1, 2025. If Owner fails to acquire the real property by this date, this
Agreement will become null and void and have no further effect.

2.      Term of Exemption. This exemption shall continue until December 31, 2050 (the
“Termination Date”). The City agrees to be contractually bound by this agreement to honor the
exemption status of the Project as provided in this agreement until the Termination Date, subject
to the Ordinance.

3.     Responsibilities of the Owner. The Owner agrees to perform the following:

       3.1     The Owner shall pay the service charge and payment in lieu of taxes set forth in
       Section 82-51 and 82-54 of the Ordinance in a timely manner (on or before July 1 of each
       year during the time the exemption is in effect). For said purposes, the Owner recognizes
       and will abide by all of the collection provisions of the Ordinance, including without
       limitation, the acceptance of the lien provisions status of the payment in lieu of taxes in the
       event of default as set forth in 82-53 of the Ordinance. As of the Effective Date, the service
       charge shall equal four (4%) percent of all collected rents on the subject Project accounting
       for point-in-time vacancies.

       3.2    The Owner agrees to comply with its obligations under that certain Municipal
       Services Agreement, executed by and between Owner and the City approximately as of the
       date hereof (the “Municipal Services Agreement), including payment of the Municipal
       Service Fee defined therein (“Municipal Service Fee”).

       3.3     The Owner agrees to file all information required by the Ordinance and further to
       meet its obligations to the Authority in connection with the Authority's administration of
       the low-income housing tax credit program.

4.      Term. This agreement shall continue in effect until the Termination Date, not to exceed 25
years. The City considers itself bound by this agreement for the entire term hereof.

5.     Interpretation of Financing. The City agrees that the financing of the Project by the use of
tax credits as well as the Project’s mortgage, which satisfies the eligibility requirements of the
Ordinance.

6.      Limitation on the Payment of Annual Service Charge. Notwithstanding Section 3, the
service charge to be paid each year in lieu of taxes for the part of the Project that is tax exempt but
which is occupied by other than low income persons or families or as Workforce Housing shall be




                                                                                                  Page 114 of 158
equal to the full amount of the taxes which would be paid on that portion of the Project if the
Project were not tax exempt

7.      Third Party Beneficiary. This agreement shall benefit the Owner and the Authority, or such
other mortgagee as may have financed the Project which may enforce this agreement, both as its
interest may appear, and on behalf of the Owner and its successors and assigns. No other party is
a beneficiary under this agreement.

8.     Counterparts. This Agreement may be executed in several counterparts and an executed
copy hereof may be relied upon as an original.

9.      Binding and Benefit. This Agreement shall be binding upon the parties hereto and their
respective heirs, administrators, personal representatives, successors and assigns.

10.    Severability. The various sections and provisions of this Agreement shall be deemed to be
severable, and should any section or provision of this Agreement be declared by any court of
competent jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this
Agreement as a whole or any section or provision of this Agreement, other than the section or
provision so declared to be unconstitutional or invalid.

12.     Choice of Law; Venue. This Agreement is executed in accordance with, shall be governed
by, and construed and interpreted in accordance with the laws of the State of Michigan. 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 venue.

13.     Payment of Service Charge. The annual service charge in lieu of taxes as established by
this Agreement shall be payable in the same manner as general property taxes are payable to the
City and distributed to the several units levying the general property tax in the same proportion as
prevailed with the general property tax in the previous calendar year. The annual payment for each
operating year shall be paid on or before July 1st of the following year. Collection procedures shall
be in accordance with the provisions of the General Property Tax Act (1893 PA 206, as amended;
MCL 211.1, et seq.).

14.     Contractual Effect of Ordinance. Notwithstanding the provisions of section 15(a)(5) of the
Act to the contrary, a contract between the City and the Owner with the Authority as third party
beneficiary under the contract, to provide tax exemption and accept payments in lieu of taxes, as
previously described, is effectuated by enactment of this Ordinance.

15.     Effective Date. This Agreement shall become effective on the last date as of which all
Parties as shown below have signed this Agreement (“Effective Date”).

                                        [Signatures Follow]




                                                                                                  Page 115 of 158
IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.




                          CITY:

                          CITY OF MUSKEGON


                          By:
                                 Ken Johnson
                          Its: Mayor
                          Dated:



                          By:
                                   Ann Meisch
                          Its: City Clerk
                          Dated:



                          OWNER:

                          Park Terrace Limited Dividend Housing Association, LLC


                          By:
                          Its:
                          Dated:




                                                                                   Page 116 of 158
    EXHIBIT A


LEGAL DESCRIPTION




                    Page 117 of 158
That part of RUDDIMAN TERRACE, Section 36, Town 10 North, Range 17 West, as recorded
in Liber 12 of Plats on Pages 33 and 34, described as beginning at a point on the North line of
Hackley Avenue which is North 00 degrees 00 minutes 00 seconds East 33.00 feet along the North-
South 1/4 line of said Section 36 and South 89 degrees 58 minutes 00 seconds West 31.30 feet
from the central 1/4 corner of said Section 36; thence South 89 degrees 58 minutes 00 seconds
West 352.45 feet along the North line of Hackley Avenue; thence North 00 degrees 00 minutes 00
seconds East 210.93 feet; thence North 90 degrees 00 minutes 00 seconds West 64.57 feet; thence
North 09 degrees 34 minutes 32 seconds West 186.05 feet; thence Southwesterly 844.98 feet along
the arc of a 890.90 foot radius curve to the left said curve having a central angle of 54 degrees 20
minutes 33 seconds, and the chord of which bears South 60 degrees 50 minutes 17 seconds West
813.66 feet; thence South 33 degrees 40 minutes 00 seconds West 15.07 feet; thence North 56
degrees 20 minutes 00 seconds West 314.57 feet; thence Northeasterly 15.29 feet along the arc of
a 81.19 foot radius curve to the right, said curve having a central angle of 10 degrees 47 minutes
21 seconds, the chord of which bears North 28 degrees 16 minutes 41 seconds East 15.27 feet;
thence Northeasterly 1186.50 feet along the arc of a 1206.90 foot radius curve to the right, said
curve having a central angle of 56 degrees 19 minutes 39 seconds, and the chord of which bears
North 61 degrees 50 minutes 11 seconds East 1139.30 feet; thence North 90 degrees 00 minutes
00 seconds East 253.42 feet; thence Southeasterly 111.52 feet along the arc of a 83.00 foot radius
curve to the right, said curve having a central angle of 76 degrees 58 minutes 52 seconds, and the
chord of which bears South 51 degrees 30 minutes 34 seconds East 103.32 feet; thence North 89
degrees 46 minutes 46 seconds East 82.83 feet; thence South 00 degrees 00 minutes 00 seconds
East 646.74 feet along the West line of Parslow Street to the Point of Beginning.




                                                                                               Page 118 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025               Title: Municipal Services Agreement for Park
                                                    Terrace Apartments Acquisition

Submitted by: Jake Eckholm, Development             Department: Economic Development
Services Director

Brief Summary:
The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is
seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability
period, a new Municipal Services Agreement is required for both projects.

Detailed Summary & Background:
Staff and the City Attorney's office have been working to finalize the draft agreements before you
related to this project with the new owner. They hope to put significant capital investment into the
facilities in the coming years, and in order to finance the project and make that possible they are
requesting an updated and restated Municipal Services Agreement on both Park Terrace as well as
the senior living component Village at Park Terrace. The agreement establishes a new Municipal
Services Agreement of 2% of the annual shelter rent. This is to our advantage because the total MSA
revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT
payment. This document is the contract for housing exemption for up to 25 years, which will require
adherence to MSHDA regulated rents per requirements in our local ordinance.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Retain youth within the city



Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested:                                   Budgeted Item:
NA                                                   Yes           No           N/A

Fund(s) or Account(s):                              Budget Amendment Needed:
NA                                                   Yes           No           N/A

Recommended Motion:
Motion to accept the Municipal Services Agreement for Park Terrace Apartments as presented, and


                                                                                         Page 119 of 158
to authorize the Mayor and Clerk to sign.

Approvals:                                  Guest(s) Invited / Presenting:
Immediate Division
Head                                         No

Information
Technology
Other Division Heads
Communication
Legal Review




                                                                             Page 120 of 158
                          MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on this day of May
27, 2025 (the “Effective Date”) between Park Terrace Limited Dividend Housing Association,
LLC, a Michigan limited liability company, its successors and/or assigns, whose address is 7451
N 63rd St., Longmont, Colorado 80503 (the “Owner”) and the CITY OF MUSKEGON, 933
Terrace Street, Muskegon, MI 49440 (the “City”) is made pursuant to the following terms:

                                          RECITALS

   A. Owner will acquire property in the City of Muskegon more particularly described on
      Exhibit A attached hereto and intends to continue operating the project thereon (the
      “Project”) as a low-income housing project.

   B. The parties recognize that due to the high concentration of persons residing at the Project
      that the City will be providing a higher level and greater amount of Municipal Services (as
      defined in this Agreement) to the Project.

   C. The City, through its Police and Fire Departments and otherwise, provides Municipal
      Services within the City. The Project will have special needs for these types of Municipal
      Services and Owner acknowledges that such needs may be greater than typically situated
      residential developments.

   D. The Owner desires to guarantee that certain Municipal Services will be provided to the
      Project until the term of the Amended and Restated Contract for Housing Exemption
      (hereinafter referred to as the “Contract for Housing Exemption”) for this Project expires,
      such Municipal Services to include, but not be limited to:

               1. Emergency services, including police and fire services specifically
                  administered through the City, and, on public streets and sidewalks,
                  maintenance, repair, snow removal, and street lighting; also to include other
                  matters as the City deems necessary;

               2. Other miscellaneous services as may, from time to time, be mutually agreed to
                  for the benefit of the Project;

               3. Said municipal services shall be provided in the customary way and in
                  accordance with all laws, rules and regulations of the United States of America,
                  State of Michigan, County of Muskegon and City of Muskegon or other
                  applicable jurisdictions or bodies.

(All of the above collectively referred to as “Municipal Services”)

               4. Nothing in this Agreement shall be deemed to waive any defense to claims
                  based on sovereign or governmental immunity.




                                                                                             Page 121 of 158
                                         AGREEMENT

The parties agree as follows:

1.     Provision of Services. The City will provide the Municipal Services to the Project.

2.     Payment. The Owner shall pay a service charge on or before July 1, of each year following
       the Effective Date, during the time the Contract for Housing Exemption is in effect (the
       “Municipal Service Fee”). The Municipal Service Fee shall be two (2%) percent of the net
       rent adjusted for vacancies received annually, excluding project paid utilities, starting
       during the calendar year of the Effective Date. For the initial year and final years of the
       Term (hereinafter defined), the Municipal Service Fee shall be pro-rated based on the
       portion of the City’s fiscal year (July 1 – June 30) that falls on or after the Effective Date
       or on or before the Termination Date (hereinafter defined), as applicable.

3.     Term. The obligation for payment for Municipal Services shall commence as of the
       Effective Date and continue until the date that the Contract for Housing Exemption
       terminates (the “Termination Date”), not to exceed 25 years. The period from the Effective
       Date until Termination Date shall be referred to as the “Term.” This Agreement is
       contingent upon Owner acquiring the real property described in Exhibit A by September
       1, 2025. If Owner fails to acquire the real property by this date, this Agreement will become
       null and void and have no further effect.

4.     Audit. Owner shall submit, upon request by the City, a copy of the annual audit of the
       Project prepared by an independent CPA along with the payment of the Municipal Service
       Fee.

5.     Exclusive Benefit. The obligations of the Owner hereunder are imposed solely and
       exclusively for the benefit of the City and no other person or entity shall have the standing
       to enforce such obligations or be deemed to be beneficiaries of such obligations.

6.     Remedies. The Owner agrees that if it does not perform its obligations under this
       Agreement the City is entitled to pursue any and all remedies legal or equitable that it is
       entitled to under Michigan law. The Owner agrees to be liable for all costs of collection
       including reasonable attorney's fees and costs incurred by the City in the enforcement of
       the terms of this Agreement, if Owner is found to be in default of this Agreement by a court
       of competent jurisdiction.

7.     Assignment. Upon the written consent of the City, the Owner may transfer or assign its
       rights and obligations under this Agreement to a buyer (“Transferee”) of the Project. The
       Transferee must agree to assume the Owner’s obligations under this Agreement. Upon
       assignment and assumption of this Agreement by the Transferee (or an affiliate, as
       provided below), the Owner shall be relieved of any further liabilities or obligations
       accruing under this Agreement. Notwithstanding the foregoing, the Owner may assign this
       Agreement, without the written consent of the City, to an affiliate of Owner (provided that
       such affiliate agrees to assume the Owner’s obligations hereunder and provided that the




                                                                                                Page 122 of 158
        Owner and assignee give prior notice of the assignment to the City with evidence that the
        assignee has agreed to assume the obligations of the Owner).

8.      Severability. If any term or condition of this Agreement is found to be void, invalid, or
        unenforceable, the validity or enforceability of the remaining terms and conditions shall
        not be affected or impaired and will continue in full force and effect.

9.      Notices. All notices under this Agreement must be in writing and sent to the respective
        parties as follows:

If to Owner:

Liam Moor LLC
Attention: Michael Dalen
7451 N 63rd St.
Longmont, CO 80503

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

With copy to:

Parmenter Law
Attn: City Attorney
601 Terrace St.
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

     a. Personal delivery, in which case delivery shall be deemed to occur the day of the delivery.

     b. Certified or registered mail, postage prepaid, return receipt requested, in which case
        delivery shall be deemed to occur the day it is officially recorded by the U.S. Postal Service
        that is has delivered it to the intended recipient; or

     c. Next day delivery by a recognized private delivery service such as Federal Express,
        providing proof of mailing and delivery comparable to certified or registered mail, return
        receipt requested, in which case delivery shall be deemed to occur upon delivery as
        recorded by the delivery service. Either party may change the address provided in this
        paragraph for itself or its attorney by providing notice of such change to the other party as
        required in this paragraph.




                                                                                                 Page 123 of 158
10.   No Waiver. No delay, omission, or failure of the City to act under this Agreement or to
      insist upon strict compliance with any term and condition of this Agreement, and no custom
      or practice of the parties at variance with the terms and conditions of this Agreement shall
      constitute a waiver of City’s right to demand exact compliance with this Agreement. No
      waiver of any right or remedy of City shall be construed as a bar to or a waiver of any such
      right or remedy on any future occasion.

11.   Headings. The headings in this Agreement have only been inserted for convenience and
      shall not affect the meaning or interpretation of this Agreement. No heading shall have any
      legal significance of any nature whatsoever.

12.   Binding Effect. This Agreement shall be binding on the parties, their heirs, successors, and
      assigns.

13.   Amendments. There shall be no modification or amendments to this Agreement, including
      this section, unless they are in writing and signed by all the parties to this Agreement.

14.   Governing Law. This Agreement has been executed in the State of Michigan, and shall be
      governed by Michigan law.

15.   Complete Agreement. This Agreement contains the entire agreement between the parties
      and supersedes all prior oral or written representations, negotiations and agreement on the
      subject matter stated herein.

                                  {Signatures on next page}




                                                                                             Page 124 of 158
Municipal Services
Agreement Signature Page


        IN WITNESS WHEREOF, this Municipal Services Agreement is executed as
 of the day and year first written above.



                                        CITY:

                                        CITY OF MUSKEGON



Dated:               , 2025            By:
                                                Ken Johnson, Mayor



Dated:               , 2025            By:
                                                Ann Meisch, City Clerk


                                        OWNER:

                                        Park Terrace Limited Dividend Housing
                                        Association, LLC a Michigan limited
                                        liability company


                                        By:
                                        Name:
                                        Its:




                                                                                Page 125 of 158
    EXHIBIT A


LEGAL DESCRIPTION

   [See Attached]




                    Page 126 of 158
That part of RUDDIMAN TERRACE, Section 36, Town 10 North, Range 17 West, as recorded
in Liber 12 of Plats on Pages 33 and 34, described as beginning at a point on the North line of
Hackley Avenue which is North 00 degrees 00 minutes 00 seconds East 33.00 feet along the North-
South 1/4 line of said Section 36 and South 89 degrees 58 minutes 00 seconds West 31.30 feet
from the central 1/4 corner of said Section 36; thence South 89 degrees 58 minutes 00 seconds
West 352.45 feet along the North line of Hackley Avenue; thence North 00 degrees 00 minutes 00
seconds East 210.93 feet; thence North 90 degrees 00 minutes 00 seconds West 64.57 feet; thence
North 09 degrees 34 minutes 32 seconds West 186.05 feet; thence Southwesterly 844.98 feet along
the arc of a 890.90 foot radius curve to the left said curve having a central angle of 54 degrees 20
minutes 33 seconds, and the chord of which bears South 60 degrees 50 minutes 17 seconds West
813.66 feet; thence South 33 degrees 40 minutes 00 seconds West 15.07 feet; thence North 56
degrees 20 minutes 00 seconds West 314.57 feet; thence Northeasterly 15.29 feet along the arc of
a 81.19 foot radius curve to the right, said curve having a central angle of 10 degrees 47 minutes
21 seconds, the chord of which bears North 28 degrees 16 minutes 41 seconds East 15.27 feet;
thence Northeasterly 1186.50 feet along the arc of a 1206.90 foot radius curve to the right, said
curve having a central angle of 56 degrees 19 minutes 39 seconds, and the chord of which bears
North 61 degrees 50 minutes 11 seconds East 1139.30 feet; thence North 90 degrees 00 minutes
00 seconds East 253.42 feet; thence Southeasterly 111.52 feet along the arc of a 83.00 foot radius
curve to the right, said curve having a central angle of 76 degrees 58 minutes 52 seconds, and the
chord of which bears South 51 degrees 30 minutes 34 seconds East 103.32 feet; thence North 89
degrees 46 minutes 46 seconds East 82.83 feet; thence South 00 degrees 00 minutes 00 seconds
East 646.74 feet along the West line of Parslow Street to the Point of Beginning.




                                                                                               Page 127 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025                Title: PILOT Agreement for Village at Park Terrace
                                                     Acquisition

Submitted by: Jake Eckholm, Development              Department: Economic Development
Services Director

Brief Summary:
The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is
seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability
period, a new Contract for Housing Exemption is required for both projects.

Detailed Summary & Background:
Staff and the City Attorney's office have been working to finalize the draft agreements before you
related to this project with the new owner. They hope to put significant capital investment into the
facilities in the coming years, and in order to finance the project and make that possible they are
requesting an updated and restated PILOT on both Park Terrace as well as the senior living
component Village at Park Terrace. The agreement reflects a slight reduction in the PILOT rate to 4%
of annual shelter rents but establishes a Municipal Services charge in a separate agreement. This is to
our advantage because the total MSA revenue stays with the City, rather than being split between
the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption
for up to 25 years, which will require adherence to MSHDA regulated rents per requirements in our
local ordinance.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Retain youth within the city



Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested:                                    Budgeted Item:
NA                                                   Yes            No           N/A

Fund(s) or Account(s):                               Budget Amendment Needed:
NA                                                   Yes            No           N/A

Recommended Motion:


                                                                                           Page 128 of 158
Motion to approve the Amended and Restated Contract for Housing Exemption for Village at Park
Terrace Apartments, and to authorize the Mayor and Clerk to sign.

Approvals:                                       Guest(s) Invited / Presenting:
Immediate Division
Head                                              No

Information
Technology
Other Division Heads
Communication
Legal Review




                                                                                    Page 129 of 158
                       CITY OF MUSKEGON
      AMENDED AND RESTATED CONTRACT FOR HOUSING EXEMPTION

This Agreement (the “Agreement”) between Village at Park Terrace Limited Dividend Housing
Association, LLC a Michigan limited liability company whose address is 7451 N 63rd St.,
Longmont, Colorado 80503 (the “Owner”) and City of Muskegon, whose address is 933 Terrace
Street, Muskegon, Michigan (the “City”) is made pursuant to the following terms:

                                          RECITALS

   A. Owner will acquire property in the City of Muskegon more particularly described on
      Exhibit A attached hereto and intends to operate the project thereon (the “Project”) as a
      low-income housing project.

   B. As part of the transaction, Hackley Limited Dividend Housing Association II, L.L.C.
      (“Hackley”) will assign its rights and obligations under that certain Contract for Housing
      Exemption, executed by Hackley and the City as of April 1, 2002 (collectively, the
      “Contract for Housing Exemption”) to Owner.

   C. The Owner and the City desire to amend and restate the Contract for Housing Exemption
      as set forth herein so as to: (i) memorialize the service charge and term of the amended
      Contract for Housing Exemption, (ii) memorialize the assignment and assumption of the
      Contract for Housing Exemption from Hackley to Owner, and (iii) add a reference to
      Owner’s obligations under that certain Municipal Services Agreement (hereinafter
      defined) executed approximately as of the date hereof between Owner and the City. Except
      as expressly set forth herein, the parties do not intend to make any other substantive
      changes to the terms of the existing Contract for Housing Exemption.

   D. The City Code of Ordinances shall be referred to herein as the “Ordinance.”

   E. It is acknowledged that it is a proper public purpose of the State of Michigan and its
      political subdivisions to provide housing for its low income persons and families or as
      Workforce Housing and to encourage the development of such housing by providing for a
      service charge in lieu of property taxes in accordance with the Act. The City is authorized
      by this Act to establish or change the service charge to be paid in lieu of taxes by any or
      all classes of housing exempt from taxation under this Act at any amount it chooses, not to
      exceed the taxes that would be paid but for this Act. It is further acknowledged that such
      housing for low income persons and families or Workforce Housing is a public necessity,
      and as the City will be benefited and improved by such housing, the encouragement of the
      same by providing real estate tax exemption for such housing is a valid public purpose. It
      is further acknowledged that the continuance of the provisions of this Ordinance for tax
      exemption and the service charge in lieu of all ad valorem taxes during the period
      contemplated in this Ordinance are essential to the determination of economic feasibility
      of the housing projects that is constructed or rehabilitated with financing extended in
      reliance on such tax exemption.




                                                                                            Page 130 of 158
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

I.      Grant of Exemption. As contemplated and pursuant to Act 346 of the Public Acts of 1966,
the State Housing Development Act (the “Act”), the City hereby grants an exemption from all ad
valorem property taxes attributable to any units of the building, provided such building contains
122 rental units offered to “low-income persons and families” or as “Workforce Housing,” each
as defined by MCL 125.1415a of the Michigan State Housing Development Authority Act of 1966
(the “Authority”). This exemption is contingent upon Owner acquiring the real property described
in Exhibit A by September 1, 2025. If Owner fails to acquire the real property by this date, this
Agreement will become null and void and have no further effect.

2.      Term of Exemption. This exemption shall continue until December 31, 2050 (the
“Termination Date”). The City agrees to be contractually bound by this agreement to honor the
exemption status of the Project as provided in this agreement until the Termination Date, subject
to the Ordinance.

3.     Responsibilities of the Owner. The Owner agrees to perform the following:

       3.1     The Owner shall pay the service charge and payment in lieu of taxes set forth in
       Section 82-51 and 82-54 of the Ordinance in a timely manner (on or before July 1 of each
       year during the time the exemption is in effect). For said purposes, the Owner recognizes
       and will abide by all of the collection provisions of the Ordinance, including without
       limitation, the acceptance of the lien provisions status of the payment in lieu of taxes in the
       event of default as set forth in 82-53 of the Ordinance. As of the Effective Date, the service
       charge shall equal four (4%) percent of all collected rents on the subject Project accounting
       for point-in-time vacancies.

       3.2    The Owner agrees to comply with its obligations under that certain Municipal
       Services Agreement, executed by and between Owner and the City approximately as of the
       date hereof (the “Municipal Services Agreement), including payment of the Municipal
       Service Fee defined therein (“Municipal Service Fee”).

       3.3     The Owner agrees to file all information required by the Ordinance and further to
       meet its obligations to the Authority in connection with the Authority's administration of
       the low-income housing tax credit program.

4.      Term. This agreement shall continue in effect until the Termination Date, not to exceed 25
years. The City considers itself bound by this agreement for the entire term hereof.

5.     Interpretation of Financing. The City agrees that the financing of the Project by the use of
tax credits as well as the Project’s mortgage, which satisfies the eligibility requirements of the
Ordinance.

6.      Limitation on the Payment of Annual Service Charge. Notwithstanding Section 3, the
service charge to be paid each year in lieu of taxes for the part of the Project that is tax exempt but
which is occupied by other than low income persons or families or as Workforce Housing shall be




                                                                                                  Page 131 of 158
equal to the full amount of the taxes which would be paid on that portion of the Project if the
Project were not tax exempt

7.      Third Party Beneficiary. This agreement shall benefit the Owner and the Authority, or such
other mortgagee as may have financed the Project which may enforce this agreement, both as its
interest may appear, and on behalf of the Owner and its successors and assigns. No other party is
a beneficiary under this agreement.

8.     Counterparts. This Agreement may be executed in several counterparts and an executed
copy hereof may be relied upon as an original.

9.      Binding and Benefit. This Agreement shall be binding upon the parties hereto and their
respective heirs, administrators, personal representatives, successors and assigns.

10.    Severability. The various sections and provisions of this Agreement shall be deemed to be
severable, and should any section or provision of this Agreement be declared by any court of
competent jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this
Agreement as a whole or any section or provision of this Agreement, other than the section or
provision so declared to be unconstitutional or invalid.

12.     Choice of Law; Venue. This Agreement is executed in accordance with, shall be governed
by, and construed and interpreted in accordance with the laws of the State of Michigan. 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 venue.

13.     Payment of Service Charge. The annual service charge in lieu of taxes as established by
this Agreement shall be payable in the same manner as general property taxes are payable to the
City and distributed to the several units levying the general property tax in the same proportion as
prevailed with the general property tax in the previous calendar year. The annual payment for each
operating year shall be paid on or before July 1st of the following year. Collection procedures shall
be in accordance with the provisions of the General Property Tax Act (1893 PA 206, as amended;
MCL 211.1, et seq.).

14.     Contractual Effect of Ordinance. Notwithstanding the provisions of section 15(a)(5) of the
Act to the contrary, a contract between the City and the Owner with the Authority as third party
beneficiary under the contract, to provide tax exemption and accept payments in lieu of taxes, as
previously described, is effectuated by enactment of this Ordinance.

15.     Effective Date. This Agreement shall become effective on the last date as of which all
Parties as shown below have signed this Agreement (“Effective Date”).

                                        [Signatures Follow]




                                                                                                  Page 132 of 158
IN WITNESS WHEREOF, the parties have signed this Agreement on the following page, on the
dates indicated.




                          CITY:

                          CITY OF MUSKEGON


                          By:
                                 Ken Johnson
                          Its: Mayor
                          Dated:



                          By:
                                   Ann Meisch
                          Its: City Clerk
                          Dated:



                          OWNER:

                          Village at Park Terrace Limited Dividend
                          Housing Association, LLC

                          By:

                          Its:
                          Dated:




                                                                                   Page 133 of 158
    EXHIBIT A


LEGAL DESCRIPTION




                    Page 134 of 158
That part of RUDDIMAN TERRACE, Section 36, Town 10 North, Range 17 West, as recorded
in Liber 12 of Plats on Pages 33 and 34, described as beginning at a point on the North line of
Hackley Avenue which is North 00 degrees 00 minutes 00 seconds East 33.00 feet along the North-
South 1/4 line of said Section 36 and South 89 degrees 58 minutes 00 seconds West 383.75 feet
from the Central 1/4 corner of said Section 36; thence South 89 degrees 58 minutes 00 seconds
West 60.67 feet; thence Southwesterly 506.96 feet along the arc of a 510.50 foot radius curve to
the left said curve having a central angle of 56 degrees 53 minutes 54 seconds, and the chord of
which bears South 61 degrees 31 minutes 01 seconds West 486.38 feet; thence North 56 degrees
20 minutes 00 seconds West 392.08 feet; thence North 33 degrees 40 minutes 00 seconds East
15.07 feet; thence Northeasterly 844.98 feet along the arc of a 890.90 foot radius curve to the right,
said curve having a central angle of 54 degrees 20 minutes 33 seconds, and the chord of which
bears North 60 degrees 50 minutes 17 seconds East 813.66 feet; thence South 09 degrees 34
minutes 32 seconds East 186.05 feet; thence North 90 degrees 00 minutes 00 seconds East 64.57
feet; thence South 00 degrees 00 minutes 00 seconds East 210.93 feet to the Point of Beginning.




                                                                                                 Page 135 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025               Title: Municipal Services Agreement for Village at
                                                    Park Terrace Acquisition

Submitted by: Jake Eckholm, Development             Department: Economic Development
Services Director

Brief Summary:
The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is
seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability
period, a new Municipal Services Agreement is required for both projects.

Detailed Summary & Background:
Staff and the City Attorney's office have been working to finalize the draft agreements before you
related to this project with the new owner. They hope to put significant capital investment into the
facilities in the coming years, and in order to finance the project and make that possible they are
requesting an updated and restated Municipal Services Agreement on both Park Terrace as well as
the senior living component Village at Park Terrace. The agreement establishes a new Municipal
Services Agreement of 2% of the annual shelter rent. This is to our advantage because the total MSA
revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT
payment. This document is the contract for housing exemption for up to 25 years, which will require
adherence to MSHDA regulated rents per requirements in our local ordinance.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested:                                   Budgeted Item:
NA                                                   Yes           No           N/A

Fund(s) or Account(s):                              Budget Amendment Needed:
NA                                                   Yes           No           N/A

Recommended Motion:
Motion to accept the Municipal Services Agreement for Village at Park Terrace Apartments as
presented, and to authorize the Mayor and Clerk to sign.

Approvals:                                          Guest(s) Invited / Presenting:


                                                                                          Page 136 of 158
Immediate Division
Head                   No

Information
Technology
Other Division Heads
Communication
Legal Review




                            Page 137 of 158
                          MUNICIPAL SERVICES AGREEMENT

THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on this day of May
27, 2025 (the “Effective Date”) between Village at Park Terrace Limited Dividend Housing
Association, LLC, a Michigan limited liability company, its successors and/or assigns, whose
address is 7451 N 63rd St., Longmont, Colorado 80503 (the “Owner”) and the CITY OF
MUSKEGON, 933 Terrace Street, Muskegon, MI 49440 (the “City”) is made pursuant to the
following terms:

                                          RECITALS

   A. Owner will acquire property in the City of Muskegon more particularly described on
      Exhibit A attached hereto and intends to continue operating the project thereon (the
      “Project”) as a low-income housing project.

   B. The parties recognize that due to the high concentration of persons residing at the Project
      that the City will be providing a higher level and greater amount of Municipal Services (as
      defined in this Agreement) to the Project.

   C. The City, through its Police and Fire Departments and otherwise, provides Municipal
      Services within the City. The Project will have special needs for these types of Municipal
      Services and Owner acknowledges that such needs may be greater than typically situated
      residential developments.

   D. The Owner desires to guarantee that certain Municipal Services will be provided to the
      Project until the term of the Amended and Restated Contract for Housing Exemption
      (hereinafter referred to as the “Contract for Housing Exemption”) for this Project expires,
      such Municipal Services to include, but not be limited to:

               1. Emergency services, including police and fire services specifically
                  administered through the City, and, on public streets and sidewalks,
                  maintenance, repair, snow removal, and street lighting; also to include other
                  matters as the City deems necessary;

               2. Other miscellaneous services as may, from time to time, be mutually agreed to
                  for the benefit of the Project;

               3. Said municipal services shall be provided in the customary way and in
                  accordance with all laws, rules and regulations of the United States of America,
                  State of Michigan, County of Muskegon and City of Muskegon or other
                  applicable jurisdictions or bodies.

(All of the above collectively referred to as “Municipal Services”)

               4. Nothing in this Agreement shall be deemed to waive any defense to claims
                  based on sovereign or governmental immunity.




                                                                                             Page 138 of 158
                                         AGREEMENT

The parties agree as follows:

1.     Provision of Services. The City will provide the Municipal Services to the Project.

2.     Payment. The Owner shall pay a service charge on or before July 1, of each year following
       the Effective Date, during the time the Contract for Housing Exemption is in effect (the
       “Municipal Service Fee”). The Municipal Service Fee shall be two (2%) percent of the net
       rent adjusted for vacancies received annually, excluding project paid utilities, starting
       during the calendar year of the Effective Date. For the initial year and final years of the
       Term (hereinafter defined), the Municipal Service Fee shall be pro-rated based on the
       portion of the City’s fiscal year (July 1 – June 30) that falls on or after the Effective Date
       or on or before the Termination Date (hereinafter defined), as applicable.

3.     Term. The obligation for payment for Municipal Services shall commence as of the
       Effective Date and continue until the date that the Contract for Housing Exemption
       terminates (the “Termination Date”), not to exceed 25 years. The period from the Effective
       Date until Termination Date shall be referred to as the “Term.” This Agreement is
       contingent upon Owner acquiring the real property described in Exhibit A by September
       1, 2025. If Owner fails to acquire the real property by this date, this Agreement will become
       null and void and have no further effect.

4.     Audit. Owner shall submit, upon request by the City, a copy of the annual audit of the
       Project prepared by an independent CPA along with the payment of the Municipal Service
       Fee.

5.     Exclusive Benefit. The obligations of the Owner hereunder are imposed solely and
       exclusively for the benefit of the City and no other person or entity shall have the standing
       to enforce such obligations or be deemed to be beneficiaries of such obligations.

6.     Remedies. The Owner agrees that if it does not perform its obligations under this
       Agreement the City is entitled to pursue any and all remedies legal or equitable that it is
       entitled to under Michigan law. The Owner agrees to be liable for all costs of collection
       including reasonable attorney's fees and costs incurred by the City in the enforcement of
       the terms of this Agreement, if Owner is found to be in default of this Agreement by a court
       of competent jurisdiction.

7.     Assignment. Upon the written consent of the City, the Owner may transfer or assign its
       rights and obligations under this Agreement to a buyer (“Transferee”) of the Project. The
       Transferee must agree to assume the Owner’s obligations under this Agreement. Upon
       assignment and assumption of this Agreement by the Transferee (or an affiliate, as
       provided below), the Owner shall be relieved of any further liabilities or obligations
       accruing under this Agreement. Notwithstanding the foregoing, the Owner may assign this
       Agreement, without the written consent of the City, to an affiliate of Owner (provided that




                                                                                                Page 139 of 158
        such affiliate agrees to assume the Owner’s obligations hereunder and provided that the
        Owner and assignee give prior notice of the assignment to the City with evidence that the
        assignee has agreed to assume the obligations of the Owner).

8.      Severability. If any term or condition of this Agreement is found to be void, invalid, or
        unenforceable, the validity or enforceability of the remaining terms and conditions shall
        not be affected or impaired and will continue in full force and effect.

9.      Notices. All notices under this Agreement must be in writing and sent to the respective
        parties as follows:

If to Owner:

Liam Moor LLC
Attention: Michael Dalen
7451 N 63rd St.
Longmont, CO 80503

If to the City:

City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440

With copy to:

Parmenter Law
Attn: City Attorney
601 Terrace St.
Muskegon, MI 49440

Every notice must be in writing and sent by one of the following methods:

     a. Personal delivery, in which case delivery shall be deemed to occur the day of the delivery.

     b. Certified or registered mail, postage prepaid, return receipt requested, in which case
        delivery shall be deemed to occur the day it is officially recorded by the U.S. Postal Service
        that is has delivered it to the intended recipient; or

     c. Next day delivery by a recognized private delivery service such as Federal Express,
        providing proof of mailing and delivery comparable to certified or registered mail, return
        receipt requested, in which case delivery shall be deemed to occur upon delivery as
        recorded by the delivery service. Either party may change the address provided in this
        paragraph for itself or its attorney by providing notice of such change to the other party as
        required in this paragraph.




                                                                                                 Page 140 of 158
10.   No Waiver. No delay, omission, or failure of the City to act under this Agreement or to
      insist upon strict compliance with any term and condition of this Agreement, and no custom
      or practice of the parties at variance with the terms and conditions of this Agreement shall
      constitute a waiver of City’s right to demand exact compliance with this Agreement. No
      waiver of any right or remedy of City shall be construed as a bar to or a waiver of any such
      right or remedy on any future occasion.

11.   Headings. The headings in this Agreement have only been inserted for convenience and
      shall not affect the meaning or interpretation of this Agreement. No heading shall have any
      legal significance of any nature whatsoever.

12.   Binding Effect. This Agreement shall be binding on the parties, their heirs, successors, and
      assigns.

13.   Amendments. There shall be no modification or amendments to this Agreement, including
      this section, unless they are in writing and signed by all the parties to this Agreement.

14.   Governing Law. This Agreement has been executed in the State of Michigan, and shall be
      governed by Michigan law.

15.   Complete Agreement. This Agreement contains the entire agreement between the parties
      and supersedes all prior oral or written representations, negotiations and agreement on the
      subject matter stated herein.

                                  {Signatures on next page}




                                                                                             Page 141 of 158
Municipal Services
Agreement Signature Page


        IN WITNESS WHEREOF, this Municipal Services Agreement is executed as
 of the day and year first written above.



                                        CITY:


                                        CITY OF MUSKEGON


Dated:               , 2025            By:
                                                Ken Johnson, Mayor


Dated:               , 2025            By:
                                                Ann Meisch, City Clerk


                                        OWNER:

                                        Village at Park Terrace Limited Dividend
                                        Housing Association, LLC a Michigan
                                        limited liability company


                                        By:
                                        Name:
                                        Its:




                                                                                   Page 142 of 158
    EXHIBIT A


LEGAL DESCRIPTION

   [See Attached]




                    Page 143 of 158
That part of RUDDIMAN TERRACE, Section 36, Town 10 North, Range 17 West, as recorded
in Liber 12 of Plats on Pages 33 and 34, described as beginning at a point on the North line of
Hackley Avenue which is North 00 degrees 00 minutes 00 seconds East 33.00 feet along the North-
South 1/4 line of said Section 36 and South 89 degrees 58 minutes 00 seconds West 383.75 feet
from the Central 1/4 corner of said Section 36; thence South 89 degrees 58 minutes 00 seconds
West 60.67 feet; thence Southwesterly 506.96 feet along the arc of a 510.50 foot radius curve to
the left said curve having a central angle of 56 degrees 53 minutes 54 seconds, and the chord of
which bears South 61 degrees 31 minutes 01 seconds West 486.38 feet; thence North 56 degrees
20 minutes 00 seconds West 392.08 feet; thence North 33 degrees 40 minutes 00 seconds East
15.07 feet; thence Northeasterly 844.98 feet along the arc of a 890.90 foot radius curve to the right,
said curve having a central angle of 54 degrees 20 minutes 33 seconds, and the chord of which
bears North 60 degrees 50 minutes 17 seconds East 813.66 feet; thence South 09 degrees 34
minutes 32 seconds East 186.05 feet; thence North 90 degrees 00 minutes 00 seconds East 64.57
feet; thence South 00 degrees 00 minutes 00 seconds East 210.93 feet to the Point of Beginning.




                                                                                                 Page 144 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025               Title: Amendment to City of Muskegon PILOT
                                                    Ordinance for Definitions to Residential Housing
                                                    Projects and Payment in Lieu of Taxes

Submitted by: Jake Eckholm, Development             Department: Economic Development
Services Director

Brief Summary:
Updates to our Affordable Housing Ordinance to align with the latest language in the MSHDA Act

Detailed Summary & Background:
When working on various PILOTS and MSA's we have determined that our code of ordinances, which
adopts the MSHDA Act of 1966 and its various definitions by reference, did not directly reflect the
language in the act and is at times contradictory. By adding this amendment to define terms more
specifically, it firms up our legal agreements required for LIHTC projects, as we pass them under the
auspices of this ordinance. Namely, we are creating a more precise definition of "Contract Rents"
which helps determined what we are paid in PILOT and MSA contracts, and also broadening the
definition of "Housing Project" as the language in our ordinance was more restrictive than what the
state allows.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Retain youth within the city
Progress toward completion of ongoing economic development projects

Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested:                                   Budgeted Item:
NA                                                   Yes           No           N/A

Fund(s) or Account(s):                              Budget Amendment Needed:
NA                                                   Yes           No           N/A

Recommended Motion:
Motion to amend and adopt Chapter 82, Article II, Section 46 for Definitions to Residential Housing
Projects and Payments in Lieu of Taxes as presented.

Approvals:                                          Guest(s) Invited / Presenting:


                                                                                          Page 145 of 158
Immediate Division
Head                   No

Information
Technology
Other Division Heads
Communication
Legal Review




                            Page 146 of 158
                                      City of Muskegon
                                 Muskegon County, Michigan
                               Ordinance Amendment No.

THE CITY OF MUSKEGON HEREBY ORDAINS:

Section 82-46 of Chapter 82 of the Code of Ordinances of the City of Muskegon, Michigan,
concerning definitions related to Residential Housing Projects and Payments in Lieu of Taxes
(PILOT) is amended to read as follows:

Sec. 82-46.    Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:

Authority means the state housing development authority.

Contract rents mean all rents in the housing project expected either directly from a tenant or by
subsidy, vendor payments or paid by a government or other assisting entity on behalf of a tenant
to the owner or owner's designee or agent of a housing project. Contract rents include the rental
amounts to be currently charged for units in the housing project, whether a unit is vacant or not,
and whether or not the rent is actually paid. Contract rents also include the rentals to be paid for
additional facilities by tenants, such as carports or garages, and further include miscellaneous
income, such as income from vending machines or laundry equipment. The portion of additional
facility rents and miscellaneous income to be attributed to contract rents shall be determined by
reference to the floor plan of the facility which includes and clearly exhibits the housing project
(therefore the exempt portion of the facility), and the portion of contract rents shall be determined
by the ratio of the housing project square footage to the entire square footage of the facility. The
term "contract rents" does not include charges for utilities.

Elderly persons mean persons determined by authority guidelines, rules, and practices to have
attained the age and have the status to constitute them as elderly persons

Housing project means a residential facility consisting of rental units offered to the following
persons; it does not mean the portion of any facility which is not so occupied by:

       (1) Elderly persons as defined in this section.

       (2) Low income persons and families as defined by the authority.

       (3) Workforce Housing as defined by in this section.


HUD means the United States Department of Housing and Urban Development.
Low income persons and families mean all low income persons and families included in the
definitions found at Section 15a(8) of Public Act No. 346 of 1966 (MCL 125.1415a(8)).



                                                 1
                                                                                                Page 147 of 158
Mortgage loan means a loan made by the authority or insured by HUD to the sponsor for the
construction and/or permanent financing of a housing project.
Service charge means the same as payment in lieu of taxes.
Sponsor means a developer of a housing project. The term "sponsor" includes an applicant for
exemption under this division.
Utilities mean public water, public sanitary sewer, gas or electric service. The term "utilities" does
not include cable or other television services, telephone or communication utilities or solid waste
services.
Workforce Housing means rental units or other housing options included in the definitions found
at Section 15a(10)(d) of Public Act No. 346 of 1966 (MCL 125.1415a(10)(d)).


This Ordinance Adopted:

Ayes:
Nays:

Adoption Date:
Effective Date:
First Reading:
Second Reading:


                                                            CITY OF MUSKEGON

                                                       By: ______________________________
                                                          Ann Marie Meisch, MMC
                                                          Clerk, City of Muskegon




                                                  2
                                                                                                 Page 148 of 158
                                        CERTIFICATE

      The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the             day of                       , 2025 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 Act No. 267, Public Acts of Michigan of 1976, as
amended, and that minutes were kept and will be, or have been made available as required thereby.

                                                       CITY OF MUSKEGON



Published: _________________, 2025               By:
                                                       Ann Marie Meisch, MCC
                                                       Clerk, City of Muskegon

 Publish:       Notice of Adoption to be published once within ten (10) days of final adoption.




                                                3
                                                                                             Page 149 of 158
                                         CITY OF MUSKEGON
                                        NOTICE OF ADOPTION

TO: ALL PERSONS INTERESTED

       Please take notice that on May ___, 2025 the City Commission of the City of Muskegon
adopted an amendment to Section 82-46, summarized as follows:

Section 82-46 amends several definitions related to Residential Housing Projects and Payments in
Lieu of Taxes (PILOT), more specifically:

       Housing project means a residential facility consisting of rental units offered to the
       following persons; it does not mean the portion of any facility which is not so occupied by:

                (1) Elderly persons as defined in this section.

                (2) Low income persons and families as defined by the authority.

                (3) Workforce Housing as defined by in this section.

       Low income persons and families mean all low income persons and families included in
       the definitions found at Section 15a(8) of Public Act No. 346 of 1966 (MCL 125.1415a(8)).


       Workforce Housing means rental units or other housing options included in the definitions
       found at Section 15a(10)(d) of Public Act No. 346 of 1966 (MCL 125.1415a(10)(d)).


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, 49440 during regular business
hours.

       This ordinance amendment is effective ten (10) days from the date of this publication.


                                                              CITY OF MUSKEGON

Published: _________________, 2025                      By:
                                                              Ann Marie Meisch, MCC
                                                              Clerk, City of Muskegon

   ------------------------------------------------------------------------------------------------------------
                PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE




                                                        4
                                                                                                              Page 150 of 158
                         Agenda Item Review Form
                         Muskegon City Commission
Commission Meeting Date: May 27, 2025                  Title: Sale of Foreclosed Home at 1285 Langeland
                                                       to Previous Owner for $7,500

Submitted by: Jake Eckholm, Development                Department: Economic Development
Services Director

Brief Summary:
The CNS Department purchased a home with commission approval on the most recent tax auction
for rehab, but it was not disclosed to staff that the foreclosed owner was still living in the domicile. We
wish to sell to them to keep them in their home for costs incurred.

Detailed Summary & Background:
CNS received the foreclosed properties list with instructions from the Director of Development
Services to seek potential single-family homes for rehab with CDBG or HOME dollars to either sell to a
low-income buyer or retain as an affordable rental unit. They acquired two houses from the list that
they had reviewed and on which they had conducted windshield surveys. They appeared vacant as
per usual, and the homes were bought from the County Treasurer for back taxes. However, it soon
became evident that the home at 1285 Langeland was occupied and the department staff
suspected that folks had entered it illegally and needed to be evicted. As the matter was
investigated, the family living there was the previous owner and includes multiple generations
including children. It is not in our interests to evict anyone from their home, these sites are typically
empty failed investment properties or vacant blighted structures so this caught us unaware. We are
proposing to the family to quit claim the home back to them for our incurred costs inclusive of filing
fees. We have also given guidance to the family on pursuing the homeowner's poverty exemption
moving forward in the event the Commission accepts staff proposal to convey the home back to
these owners. We have received a consent judgment to proceed with eviction in the event the
owners refused the offer to buy the site, but so long as commission agrees to the sale we have no
reason to enforce the eviction and everyone can move forward.

Goal/Focus Area/Action Item Addressed:

Key Focus Areas:
Diverse housing types
Retain youth within the city


Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business

Amount Requested:                                      Budgeted Item:
$7,500 returned to CNS                                 Yes            No            N/A



                                                                                              Page 151 of 158
Fund(s) or Account(s):                             Budget Amendment Needed:
HOME Fund Account                                   Yes           No           N/A

Recommended Motion:
Motion to approve the sale of the property at 1285 Langeland to Anthony Henry or his assign for
$7,500, and to authorize staff to close on the transaction with a quit claim deed.

Approvals:                                         Guest(s) Invited / Presenting:
Immediate Division
Head                                                 No

Information
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