City Commission Packet 05-13-2014

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                          MAY 13, 2014
     CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                 AGENDA

   CALL TO ORDER:
   PRAYER:
   PLEDGE OF ALLEGIANCE:
   ROLL CALL:
   HONORS AND AWARDS:
      A. Muskegon High School Big Reds Basketball Team – 2014 State
         Champions.
      B. Deshaun Thrower – Hal Schram Mr. Basketball Trophy.
   INTRODUCTIONS/PRESENTATION:
   CITY MANAGER’S REPORT:
   CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
      B. Memorandum of Understanding – Justice Assistance Grant.          PUBLIC
         SAFETY
      C. Memorandum of Understanding – 2014 Project Safe Neighborhoods.
         PUBLIC SAFETY
      D. Interlocal Agreement – 2014 Port Security Grant. PUBLIC SAFETY
      E. Farmers’ Market – ATM Lease. PLANNING & ECONOMIC DEVELOPMENT
      F. Farmers’ Market – First Amendment          to   Purchase   Agreement.
         PLANNING & ECONOMIC DEVELOPMENT
      G. Finance Division Restructure. FINANCE
      H. Small Distiller License. CITY CLERK
      I. Charter Communications – METRO Act Permit. ENGINEERING
   PUBLIC HEARINGS:
   COMMUNICATIONS:
   UNFINISHED BUSINESS:
   NEW BUSINESS:
        A. 2014-2015 Healthcare Renewal. FINANCE
   ANY OTHER BUSINESS:
   PUBLIC PARTICIPATION:
   Reminder: Individuals who would like to address the City Commission shall do the following:
   Fill out a request to speak form attached to the agenda or located in the back of the room.
   Submit the form to the City Clerk.
   Be recognized by the Chair.
   Step forward to the microphone.
   State name and address.
   Limit of 3 minutes to address the Commission.
   (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

   CLOSED SESSION:
   ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705.
Memorandum

To:       Mayor and Commissioners

From: Frank Peterson

Re:       City Commission Meeting

Date:     May 12, 2014

We have a number of items on the agenda, and I thought you could use a little background on them as
you prepare for our meeting next week.

Work Session

      1. We will have a presentation from our Sister Cities folks.
      2. Staff will talk about a proposal to change our current health care offerings as a way to mitigate a
         planned 11.68% increase in healthcare costs. While the changes will have an effect on some
         employee costs, we believe the options selected would minimize the negative effects. The
         change in deductible could open the City to a greater risk, as we plan to cover the deductible
         100%, but based on our history, we believe the savings will out-weigh the potential for more
         deductible usage on a wide-spread scale.
      3. Chief Lewis will make a short presentation on Staff’s request to implement a beach warning
         system. The initial cost for the system will likely come in around $70,000, but we are looking at
         funding sources outside of City government to help reduce our contribution.
      4. The Civil Service Commission has asked that the City Commission accept two requests from their
         recent meeting:
             a. To extend the Human Resources contract with the County of Muskegon for another 12
                  months, with no changes to the other terms.
             b. To place a question on the ballot that would amend the City Charter to eliminate the
                  “Rule of 1” and the “Rule of 3.” The Civil Service Commission unanimously made this
                  recommendation. Staff agrees with the Civil Service’s expectation that the elimination
                  of these two provisions would allow for a deeper and more-diverse candidate pool for
                  new hires, as well as promotions/transfers.

CRC Meeting

      1. We have a candidate for the Construction Board of Appeals. We are recommending approval.
      2. I plan to have a draft presentation for the Commission to review and comment on. This is the
         presentation that we would be giving at the May 20 Special meeting, as well as at various
         neighborhood/community/business meetings over the next few months.
Regular Meeting

   1.    The Big Reds basketball team will be in attendance 
   2.    The Justice Assistance Grant will help pay for prosecution services.
   3.    Project Safe Neighborhoods will help put additional police resources into our neighborhoods.
   4.    The Port Security Grant will help purchase a number of new radios for our public safety
         personnel.
   5.    We are partnering with 5/3 Bank to install an ATM at the Farmers Market.
   6.    The amendment to the Farmers Market Purchase Agreement is necessary as a result of the
         construction work stretching past the original April 30 deadline.
   7.    We are recommending the promotion of Ken Grant to the Treasurer position. We intend to hire
         a supervisor in the Treasury Department to help manage day-to-day activities. Overall, this plan
         will reduce costs by eliminating a department head level position and replacing with a
         supervisory-level position.
   8.    We have a request to open/operate a distillery in the former Club Envy space. This is allowable
         under State Law, and could be another destination point for the downtown – just like the two
         breweries have become.
   9.    The Metro Act Permit will be presented by Engineering – this is a routine approval.
   10.   We will be asking the Commission to vote on the proposed health insurance changes discussed
         at the work session.

Other Updates:

   1. FY 2014-15 budget preparation is under way. We are working to incorporate some of the
      elements of the 5-year financial plan. The health insurance costs through us quite a bit out of
      whack – but with the proposed change, I believe we will be in a position to present a balanced
      budget to the Commission next month.
   2. We had a great City turnout for the leadership lunch event at LC Walker. We are looking
      forward to more events like this.
   3. The grand opening of the farmers market is scheduled for May 24 – remarks will take place at
      10a.
   4. The farmers market will host the next business for breakfast event 
   5. We have gotten many inquiries about our new mobile food vendor ordinance – I hope this is a
      good sign for some additional downtown activity this summer!
   6. CNS has finished rehabbing 2035 Harding in Lakeside, and an open house is planned. Please try
      to come by and see it on May 8th from 11a to 1p.
Date:     May 13, 2014
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Cummings, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the April 22nd City
Commission Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         APRIL 22, 2014
    CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                 MINUTES

The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, April 22, 2014.
Mayor Gawron opened the meeting with a prayer from Mr. George Monroe
after which the Commission and public recited the Pledge of Allegiance to the
Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Ken Johnson, Eric Hood, Willie German, Dan Rinsema-Sybenga,
and Byron Turnquist, City Manager Franklin Peterson, City Attorney John Schrier,
and City Clerk Ann Marie Cummings.
2014-29 HONORS AND AWARDS:
      A. 2013 Outstanding Citizenship Awards.
Mayor Gawron congratulated Shirley Green, Greg Borgman, and Debra Griffin
as recipients of the 2013 Outstanding Citizenship Award.
      B. Jazz Appreciation Month.
April, 2014, was proclaimed as Jazz Appreciation Month.
2014-30 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the April 7th Commission
Worksession Meeting, and the April 8th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Request to Fly the Norwegian Flag. CITY CLERK
SUMMARY OF REQUEST: Sons of Norway are requesting permission to fly the
Norwegian Flag at City Hall on Saturday, May 17th in honor of Norway’s


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Constitution Day (Independence Day).
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the request.
      D. Amendment to Chapter 30 “Fire Prevention & Protection”, Article IV
         “Recreational Fires”. PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and authorize the proposed amendments to Chapter 30,
Article IV of the Recreational Fire Ordinance, Section(s) 30-220, 221, 222, 223, of
the City of Muskegon “Fire Prevention and Protection” Ordinance.
The Muskegon Fire Department has reviewed and proposed changes in our
recreational fire ordinance to better serve the community at large and address
illegal burning issues in our City in which fire/police must respond to in order to
maintain general public safety.
The amendments are to address: size of the fire pit, materials that are allowed in
the fire pit, use manufactured portable burning stand. The prohibition of steel
“burn barrels”, commonly used for burning trash and yard waste, and examples
of items that cannot be burned without violating the amended ordinance.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approving amendments to said
existing ordinance.
      F. Fireworks Display Permit for Muskegon Country Club. CITY CLERK
SUMMARY OF REQUEST: Melrose Pyrotechnics, Inc. is requesting approval of a
fireworks display permit for July 4, 2014, at the Muskegon Country Club, 2801
Lakeshore Drive. Fire Marshall Metcalf will inspect the fireworks on the day of the
event.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks
and approval of insurance.
      G. Fireworks Display Permit for 4th of July Celebration at Heritage Landing.
         CITY CLERK
SUMMARY OF REQUEST: Night Magic is requesting approval of a fireworks display
permit for July 4th at Heritage Landing. Fire Marshall Metcalf has reviewed the
request and recommends approval contingent on inspection of the fireworks.


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FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks
and approval of insurance.
Motion by Vice Mayor Spataro, second by Commissioner Johnson to approve
the Consent Agenda as read with the exception of items C and E.
ROLL VOTE: Ayes:      Gawron, Hood,     Spataro,   German,    Rinsema-Sybenga,
           Turnquist, and Johnson
           Nays: None
MOTION PASSES
2014-31 ITEMS REMOVED FROM THE CONSENT AGENDA:
      C. City – MDOT Agreement for Veteran Park Improvements. ENGINEERING
SUMMARY OF REQUEST: Approve the contract with MDOT for the pedestrian
mobility improvements at the Veteran’s Memorial Park at the Causeway
between northbound and southbound M-120 and approve the resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: The estimated total cost of this project is $978,500 of which
$39,100 is the local share. As of April 2012, the three local agencies; Muskegon,
N. Muskegon and Muskegon County had committed a total of $36,000 with the
Veteran Group committing to make up any shortfall.
BUDGET ACTION REQUIRED: None at this time as this project was budgeted for.
STAFF RECOMMENDATION: Approve the contract and resolution authorizing the
Mayor and Clerk to sign both.
Motion by Mayor Gawron, second by Commissioner German to approve the
contract and resolution authorizing the Mayor and Clerk to sign both regarding
the City-MDOT Agreement for Veteran Park improvements.
ROLL VOTE: Ayes:    Hood, Spataro, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
      E. DBE/MBE/WBE Procurement Policy for Federally Contracted Programs
         and Collaborations. AFFIRMATIVE ACTION & RISK MANAGEMENT
SUMMARY OF REQUEST: The Contract and Procurement Policy for Federally
Contracted Programs and Collaborations has been developed to include the
“Fair Share Goals” language to meet the “Good Faith Effort” requirements of our
federally contracted funds. The “Fair Share Goals” are specific to the


                                                                               3
Environmental Protection Agency (EPA) contracts, and “Good Faith Efforts” are
standard to our other federally contracted funds.
The steps for “Good Faith Efforts” will allow the City to achieve compliance in all
of our federal contracts and ensure that Disadvantaged Business Enterprises
(DBE), Minority Business Enterprises (MBE), and Women-owned Business
Enterprises (WBEs) are actively solicited for participation in the bid process for
contracting and procurement of supplies, construction, equipment and services
under all federal contracts and collaborations.
The Policy will be placed in all contracts and collaborations that include federal
funds.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the City of Muskegon DBE/MBE/WBE
Procurement Policy for Federally Contracted Programs and Collaborations, and
authorize the Mayor and Clerk to sign.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga
to approve the City of Muskegon DBE/MBE/WBE Procurement Policy for Federally
Contracted Programs and Collaborations, and authorize the Mayor and Clerk to
sign.
ROLL VOTE: Ayes: Spataro, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
2014-32 PUBLIC HEARINGS:
      A. 2014-2015 Action Plan. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To conduct a public hearing of the 2014 – 2015 Action
Plan for public comments.
FINANCIAL IMPACT:    Action Plan establishes the 2014-2015 Community
Development Block Grant and HOME budgets.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To receive comments about the proposed 2014 –
2015 Action Plan at the public Commission Meeting.
The Public Hearing opened to hear and consider any comments from the
public. No comments were made.
Motion by Commissioner Hood, second by Commissioner German to close the
Public Hearing and receive comments about the proposed 2014-2015 Action


                                                                                 4
Plan.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Spataro
             Nays: None
MOTION PASSES
2014-33 NEW BUSINESS:
        A. Concurrence with the Housing Board of Appeals Notice and Order to
           Demolish the Following: PUBLIC SAFETY
          1974 Dowd Street
          1522 Clinton Street (Garage Only)
          1265 Holt Street
          912 E. Isabella Avenue
          1141 Jefferson Street
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It
is further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
FINANCIAL IMPACT: CDBG Funds for 1974 Dowd and 1265 Holt. General Funds
for 1522 Clinton (garage only), 912 E. Isabella, and 1141 Jefferson.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:             To concur with the Housing Board of Appeals
decision to demolish.
Motion by Vice Mayor Spataro, second by Commissioner Johnson to concur
with the Housing Board of Appeals notice and order to demolish 1974 Dowd
Street, 1522 Clinton Street (garage only), 1265 Holt Street, 912 E. Isabella Avenue,
and 1141 Jefferson Street.
ROLL VOTE: Ayes:    Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Spataro, and German
             Nays: None
MOTION PASSES
        B. Special Event Request – Muskegon Bike Time 2014.           PLANNING &
           ECONOMIC DEVELOPMENT


                                                                                  5
SUMMARY OF REQUEST:           Muskegon Bike Time has filed a special event
application for the annual Bike Time festival in downtown Muskegon to be held
on July 17, 18, 19, and 20, 2014. Portions of their request require City Commission
approval.
FINANCIAL IMPACT: Request that equipment rental fees be waived.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: As in past years, it is recommended that staff be
allowed to make the final decision regarding rental fees and actual costs to be
coordinated through the City Manager. In addition, staff recommends that if
Bike Time picks up items such as picnic tables, bleachers, and trash cans for
distribution at the proper locations, there will be no equipment rental charge to
Bike Time. This must first be approved by and coordinated through City staff. It is
also recommended that City staff review staffing levels for City personnel with
the Bike Time staff, with the City making the final decision on the number of City
staff needed for the event.
Regarding street closures, staff recommends approval with the condition that
Bike Time notify affected downtown businesses of the dates and times of street
closures and the date and time that No Parking restrictions go into effect on
those streets.
Motion by Commissioner Hood, second by Commissioner Turnquist to accept
the recommendation approving conditions and that Bike Time notify affected
downtown businesses of the dates and times of street closures and the date and
time that No Parking restrictions go into effect on those streets.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Spataro, German, and
Rinsema-Sybenga
MOTION PASSES
      C. Mobile Food Vending Ordinance. CITY CLERK
SUMMARY OF REQUEST: In consultation with Downtown Muskegon Now, staff has
developed a Mobile Food Vending Ordinance for consideration. The proposed
monthly fee is $300. Those established brick and mortar businesses located in
the City of Muskegon selling their own goods through the Mobile Food Vending
Ordinance may pay a monthly fee of $150. Brick and mortar restaurants
located in the targeted DDA area will be charged a monthly fee of $50.
Mobile food vehicles shall not be left unattended and cannot be parked
between the hours of 3 a.m. and 6 a.m. They shall not operate within 1,000 feet
of any City approved special event or leased park. Vendors wishing to sell at
the Farmer’s Market must obtain permission through management of the
Farmer’s Market.
Mobile food vehicles shall not be parked within 150 feet of an existing brick and


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mortar restaurant during the hours when such restaurant is open to the public for
business unless permission has been obtained from the restaurant.
Applications will be considered for the following areas: Sherman Blvd., Henry
Street, Apple Avenue, Laketon Avenue, Getty Street as well as within the area of
the Downtown District Authority, and industrial parks.
Comments from the downtown businesses are attached as well as mapping
indicating the distance of 150 feet, 200 feet, 250 feet, and 300 feet parameters
around existing brick and mortar businesses.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adopt the ordinance as presented as well as the
resolution stating the areas that a Mobile Food Vending vehicle/trailer/cart may
operate.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson
to adopt the Mobile Food Vending Ordinance as presented as well as the
resolution stating the areas that a Mobile Food Vending vehicle/trailer/cart may
operate.
ROLL VOTE: Ayes:  Johnson, Gawron, Hood, Spataro, German, Rinsema-
           Sybenga, and Turnquist
            Nays: None
MOTION PASSES
      D. Amendment to the Transient Merchant Ordinance. CITY CLERK
SUMMARY OF REQUEST:        Staff compared the current Transient Merchant
Ordinance with several other communities and reviewed comments received
by customers and is making recommendations.
Some proposed changes include:
Offering the license as an annual license instead of a daily license currently
allowed a maximum of 60 days per calendar year. The current fee is $30 per
day. The proposed fee is $150 annual fee renewed on May 1st of each year.
The bond amount is proposed to increase from $500 to $1,000.
School sponsored events should not require a permit.
Merchants may stay in one location no longer than 45 days (current ordinance
states 90 days).
Hours shall be set between 9 a.m. and 8 p.m. or sunset (whichever is earlier).
Merchants may not operate within 1,000 feet of any approved special event or
leased park unless they have obtained permission from the event sponsor or


                                                                                 7
lessee. The license does not allow for the sale of goods or services at any City-
owned park/facility or Farmer’s Market without a permit from the City.
Residents and businesses selling parking spaces on their property during a City
approved special event in the downtown district are required to obtain a
license. At least one ADA compliant restroom facility with a hand washing unit
must be made available to the public for the first 50 parking spaces being
offered on a parcel and two restroom facilities be available on parcels selling
100 or more parking spaces. The license must be prominently displayed at the
entrance to the parking facility and if the number of parking spaces meets or
exceeds 50, a sign must be prominently displayed indicating to the public that a
public restroom is available.
The fee for a license is proposed to be $25 for the first 50 parking spaces and $50
for more than 50 parking spots on one parcel.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adopt the ordinance as presented.
Motion by Commissioner Johnson, second by Commissioner German to adopt
the ordinance as presented.
ROLL VOTE: Ayes:      Gawron, Hood, Spataro, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:45 p.m.


                                            Respectfully submitted,




                                            Ann Marie Cummings, MMC
                                            City Clerk




                                                                                 8
Date:          May 13, 2014
To:            Honorable Mayor and City Commissioners
From:          Jeffrey A. Lewis
               Director of Public Safety

RE:            Memorandum of Understanding – Justice Assistance Grant


SUMMARY OF REQUEST:

The Director of Public Safety requests that the Commission authorize the Director and the
City Manager to enter into an agreement with the City of Muskegon Heights and Muskegon
County in regards to the disbursement of the FY 2014 Justice Assistance Grant. It if further
requested that the Mayor be authorized to sign the Memorandum of Understanding. Note that
time is of the essence as this grant requires a 30 day governing body review period before the
grant submission and the grant deadline is June 10.

Although the Bureau of Justice Assistance has designated us as being in a disparate funding
situation due to the County providing more than 50% of the jail facilities, our proposal is to
keep the allocations exactly as they initially came down from the BJA which is as follows:
County of Muskegon $ 0; City of Muskegon $ 30,709 and City of Muskegon Heights $
19,903. Note that BJA uses crime data versus population in making these allocation
decisions.

The City of Muskegon portion is planned to be used in continuation of the manner in which
the previous year’s JAG funding was used which is for the prosecution of city ordinance cases
dealing primarily with neighborhood issues. A prosecutor was hired specifically for this under
a previous fiscal year JAG Grant.



FINANCIAL IMPACT:

None.



BUDGET ACTION REQUIRED:

None.



STAFF RECOMMENDATION:

Staff recommends approval of this request.
                      MEMORANDUM OF UNDERSTANDING
                           THE CITY OF MUSKEGON
                         THE COUNTY OF MUSKEGON
                       THE CITY OF MUSKEGON HEIGHTS


       FY 2014 JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD
                    Regular Funding/Local Solicitation


   This Agreement is made and entered into on the ______ day of _______, 2014, by and

between the County of Muskegon, acting by and through its governing body, the Board of

County Commissioners, located at 990 Terrace Street, Muskegon, Michigan 49442 and the

City of Muskegon, acting by and through its governing body, the City Commission, located

at 933 Terrace Street, Muskegon, Michigan 49443-0536, and the City of Muskegon Heights,

acting by and through its governing body, the City Council, located at 2724 Peck Street,

Muskegon Hts., MI 49444, all of Muskegon County, State of Michigan, witnesseth:




   WHEREAS, the CITY OF MUSKEGON has agreed to serve as the applicant/fiscal agent

for the joint funds under the: Justice Assistance Grant(Local Solicitation) as the Bureau of

Justice Assistance has designated the allocation to the law enforcement communities in

Muskegon County as a disparate allocation; and

   WHEREAS, each governing body, in performing governmental functions or in paying for

the performance of governmental functions, hereunder, shall make that performance or

those payments from current revenues legally available to that party; and

   WHEREAS, each governing body find that the performance of this Agreement is in the

best interest of all parties, that the undertaking will benefit the public, and that the division

of costs fairly compensates the performing party for the services or functions under this

Agreement; and




                                                                             Page 1 of 3
     WHEREAS, the breakdown of allocated funding agreed upon by those entities involved

in the disparate funding is $ 30,709 to the CITY OF MUSKEGON and $ 19,903 to the CITY

OF MUSKEGON HEIGHTS; and

     WHEREAS, the CITY OF MUSKEGON, CITY OF MUSKEGON HEIGHTS and COUNTY OF

MUSKEGON believe it to be in their best interests to allocate the JAG funds as specified in

this Agreement.



NOW THEREFORE, THE COUNTY OF MUSKEGON, CITY OF MUSKEGON AND CITY OF

MUSKEGON HEIGHTS agree as follows:

                                         AGREEMENT

1.      THE CITY OF MUSKEGON will act as the fiscal agent/applicant agency.

2.      The total eligible joint allocation for the disparate jurisdictions of $ 50,612 will be

        allocated as follows:    COUNTY OF MUSKEGON - $ 0; CITY OF MUSKEGON - $30,709;

        CITY OF MUSKEGON HEIGHTS - $ 19,903

3.      Each municipality will be responsible for its actions in the use of any equipment

        purchased under this Agreement and the fiscal agent shall not be liable for any civil

        liability that may arise from the purchase of the use of the equipment.

4.      The CITY OF MUSKEGON HEIGHTS will be responsible for submitting quarterly

        reports to the CITY OF MUSKEGON by the third day of the month following the

        quarter in the reporting fashion required by the CITY OF MUSKEGON and for any

        month in which an expenditure under the grant has occurred the CITY OF

        MUSKEGON HEIGHTS will submit a reimbursement request to the CITY OF

        MUSKEGON      by   the   third   day   of   the   following   month   along   with   backup

        documentation such as invoices.

5.      The CITY OF MUSKEGON HEIGHTS will be responsible for the accuracy of all data

        submitted to the CITY OF MUSKEGON for submission to the Bureau of Justice




                                                                                Page 2 of 3
     Programs and will be liable for penalties as a result of submitting the data late and

     for any inaccurate data.

6.   Nothing in the performance of this Agreement shall impose any liability for claims

     against the CITY OF MUSKEGON passing from this program or from the CITY OF

     MUSKEGON HEIGHT’s expenditure of the JAG funds.

7.   By entering into this Agreement, the parties do not intent to create any obligations,

     express or implied, other than those set out herein. Further, this Agreement shall

     not create any rights in any party not a signatory hereto.



                                                COUNTY OF MUSKEGON


Dated:_______________, 2014                     By:____________________________
                                                      Kenneth Mahoney, Chairman
                                                      County Board of Commissioners


                                                CITY OF MUSKEGON

Dated:_______________, 2014                     By:____________________________
                                                      Stephen Gawron, Mayor



                                                CITY OF MUSKEGON HEIGHTS

Dated:_______________, 2014                     By:_____________________________
                                                      Darrell Paige, Mayor




                                                                       Page 3 of 3
          Commission Meeting Date: May 13, 2014




Date:      May 2, 2014
To:        Honorable Mayor & City Commission
From:      Planning & Economic Development Department
RE:        Farmers’ Market- ATM Lease


SUMMARY OF REQUEST: Fifth Third Bank has donated a significant
amount to the new downtown Muskegon Farmers’ Market. They also
anticipate partnering with the Farmers’ Market in the future for
educational endeavors and events. Due to this partnership, Fifth Third
is providing an ATM at the new Farmers’ Market. The location of the
ATM will be to the North of the main entrance to the Farmers’ Market
building office/commercial kitchen.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: To approve the attached lease
agreement and authorize the Mayor and Clerk’s signiture’s.
                                ATM LEASE AGREEMENT


       This ATM Lease Agreement (“Agreement”) is entered into as of this ______ day of May,
2014 (“Effective Date”), between FIFTH THIRD BANK, an Ohio banking corporation
(“Lessee”) and City of Muskegon, a (an) municipal corporation (“Lessor”).

       1.      PREMISES: The Lessor does hereby lease to Lessee sufficient space at
Downtown Muskegon Farmer’s Market located at 242 W. Western Ave., Muskegon, MI. 49440
(Western & Terrace Streets in Muskegon, MI) for the installation of one (1) remotely controlled
device which automatically performs certain services normally performed by a bank teller
(hereinafter “ATM”). The ATM shall be located as depicted on Exhibit A, attached hereto and
made a part hereof. Lessee represents and agrees that the ATM will be placed in a cleared space
allowing convenient access to customers. The location of the ATM shall be referred to as the
“Premises.”

       2.     TERM:

        a.       Initial Term: The term of this Agreement shall be for a period of five (5) years
(“Initial Term”), commencing on the date on which the permanent ATM begins to operate
(“Commencement Date”). Lessor acknowledges and agrees as a condition to this Agreement, if
Lessee is unable to obtain all necessary governmental approvals, Lessee may immediately
terminate this Agreement by giving written notice of such to Lessor and that Lessee shall have
no liability for any claims in law or in equity arising from said termination.

        b.     Renewals: Lessor and Lessee agree to review transaction counts on a quarterly
basis during the Initial Term of the Agreement to discern overall ATM performance, and prior to
expiration of the Initial Lease Term mutually agree upon terms and conditions to renew this
Agreement in each party's sole discretion (the “Renewals").

       c.     Termination for low usage/Termination for Damages: Intentionally omitted.

        d.      Holdover Tenancy: If, without the execution of a new lease or written extension
and with the consent of Lessor, Lessee shall holdover after the expiration of the Initial Term or
any Renewal Term of this Agreement, Lessee shall be deemed to be occupying the Premises as a
tenant from month to month, which tenancy may be terminated by either Lessor or Lessee upon
thirty (30) days prior written notice to the other.

       3.     RENT: Intentionally omitted.

        4.      LIGHTING AND SIGNAGE: Lessee, at its sole option and expense, shall have
the right to place lighting and signage on and around the ATM and the adjacent portions of the
Premises in accordance with Lessee’s standard practices and procedures. Additionally, Lessee
may install, with the prior written consent of Lessor, which consent shall not be unreasonably
withheld or delayed, other signage on Lessor’s premises identifying Lessee, the ATM, or the
services provided therein.
         5.      COVENANTS OF LESSEE: Lessee does hereby covenant and agree that it
shall: (i) erect and install the ATM and related improvements on the Premises; (ii) not commit
any waste on the Premises; (iii) not use or occupy the Premises for any unlawful purpose; (iv)
not make alterations or additions, subsequent to the installation, on or to the Premises without the
written consent of Lessor, which consent shall not be unreasonably withheld, except that
adjustments in signage shall not require Lessor’s consent; (v) furnish separate electrical power to
the ATM; and (vi) at its expense, have the option, after consultation with Lessor, to install theft
deterrent devices in and on the Premises to prevent theft and/or losses to the ATM, including but
not be limited to, dye packs, audible alarms, smoke packs and visual alarms.

        6.      COVENANTS OF LESSOR: Lessor does hereby covenant and agree that it
shall: (i) if necessary, fully cooperate with Lessee to obtain approval of all public and
governmental authorities as to all matters relating to zoning, building permit, special use permits
or similar requirements for use of the Premises in accordance with Lessee’s plans and
specifications; (ii) permit the Lessee, its agents, servants and employees access to the ATM
and/or related Lessor’s property during normal hours of operation for the purposes of
installation, maintenance, and servicing of the ATM, or at such designated pre-opening or post-
closing hours as mutually agreed upon; (iii) permit the Lessee, its agents, servants and employees
to park motor vehicles on the Lessor’s premises, subject to such limitations as may, from time to
time, be required; (iv) provide normal cleaning around the ATM; (v) maintain the area around
each ATM in orderly fashion so that customers have convenient and safe access to the ATM; (vi)
provide security and lighting, consistent with the normal operating standards of Lessor; (vii) pay
for relocation when requested by Lessor; (viii) during the term of this Agreement and any
extensions thereof, not permit any other ATM or electronic device to be installed or operated in
the building or on the campus where the Premises are located, by any bank, savings and loan
association, financial institution, securities or brokerage firm, or other enterprise offering any
financial services or products offered by Lessee without the express written consent of Lessee,
which consent may be withheld in Lessee’s sole discretion; (ix) permit such inspections of the
Premises as are necessary, including but not limited to, fire and electrical hazards, by authorized
personnel.

       7.      DEFAULT:

        a.      Lessee Default and Remedy: If Lessee shall be in default in the performance of
any covenant of this Agreement and has not commenced to cure such default within thirty (30)
days after notice thereof by Lessor, Lessor may terminate this Agreement and resume possession
of the Premises thereby wholly discharging Lessee from its obligations under this Agreement.

       b.     Lessor Default and Remedy: If any default by Lessor under the terms of this
Agreement shall continue for thirty (30) days after written notice thereof from Lessee without
Lessor's having commenced to cure the same, Lessee may terminate this Agreement without
penalty.

       8.      FIXTURES AND PERSONAL PROPERTY; SURRENDER: Upon
termination of this Agreement, Lessee shall return the Premises in as good condition as received,
normal wear and tear excepted. Trade fixtures, furniture and other personal property installed or
placed in or on the Premises at the cost of Lessee shall be the property of Lessee unless
otherwise specified in this Agreement and Lessee shall remove the same, at Lessee’s sole
expense, within thirty (30) days of the expiration or termination of this Agreement. Lessee shall,
at its own cost and expense, promptly and completely repair any and all damage to the Premises
resulting from or caused by such installation or removal. If Lessee fails to remove all or any of
such property, Lessor may at Lessor’s option retain all or any of such property and title thereto
shall thereupon vest in Lessor, or Lessor may remove from the Premises and dispose of in any
manner all or any of such property, in which latter event Lessee shall, upon demand, promptly
pay to Lessor the actual expense of such removal and disposition and the cost of repair of any
and all damage to the Premises resulting from or caused by such installation or removal.

       9.      QUIET ENJOYMENT: Lessor covenants that so long as Lessee fulfills the
conditions and covenants required of it to be performed, Lessee will have peaceful and quiet
possession of the Premises;

         10.     ASSIGNABILITY: Lessee may assign the Premises, without Lessor’s consent,
to (i) any entity controlled by, controlling or under common control of Lessee or (b) to any entity
that that succeeds to or acquires all or substantially all of the business of Lessee through merger,
consolidation, acquisition of stock or assets, or other business combination.

       11.    INSURANCE: Lessee agree to carry comprehensive general liability insurance
according protection to the under a policy, which shall insure against a combined loss of not less
than One Million Dollars ($1,000,000.00) for each occurrence.

        12.   EXCUSE FROM PERFORMANCE: In the event of any judicial or other
governmental determination that ATMs may not be operated in one or more mutually agreed
locations covered by this Agreement, this Agreement shall be terminated with respect to such
ATM, with no further liability of either party.

        13.     CONDEMNATION: If the whole or any part of the Premises shall be taken
under the power of eminent domain, then the Agreement shall terminate as to the part taken on
the day when Lessee is required to yield possession thereof, and Lessor, to the extent of the
condemnation award, shall make such repairs and alterations as may be necessary in order to
restore the part not taken to useful condition. If the amount of the Premises so taken is such as to
impair substantially the usefulness of the Premises for the purposes for which the same are
hereby leased, then either party shall have the option to terminate this Agreement as of the date
when Lessee is required to yield possession.


        14.     NOTICES: Any notices under this Agreement shall be personally delivered,
delivered by the deposit thereof in the U.S. Postal Service, postage prepaid, registered, or
certified, return receipt requested, or by reputable overnight courier service to the party at the
address listed below or at another address hereafter designated by notice. Any such notice shall
be deemed to have been delivered and given upon personal delivery or delivery by overnight
courier service, or deposit with the United States Postal Service:
LESSEE:                                        LESSOR:
Fifth Third Bank                               City of Muskegon
Fifth Third Center                             Western & Terrace Streets
38 Fountain Square Plaza                       Muskegon, Michigan 49440
MD 10ATA1
Cincinnati, Ohio 45263
Attn: SVP Corporate Facilities
                                               Attn: Cathy Brubaker-Clarke, Director
                                               Community & Economic Development
                                               City of Muskegon
                                               933 Terrace St., P.O. Box 536
                                               Muskegon, MI 49440-0536

                                               With copy to:
And
                                               Frank Peterson, City Manager
Fifth Third Bank                               City of Muskegon
Fifth Third Center                             933 Terrace St., P.O. Box 536
38 Fountain Square Plaza                       Muskegon, MI 49440-0536
MD 10 ATA1
Cincinnati, OH 45263
Attn: ATM Administrator



       15.    MISCELLANEOUS:

       a.      Governing Law: The laws of the State of Michigan shall govern this Agreement
without reference to the choice-of-law provisions thereof.

        b.     Entire Agreement: This Agreement represents the entire agreement between the
parties with respect the subject matter hereto, and supersedes all other proposals, agreements,
representations and covenants, oral or written. Any modification of this Agreement, unless
otherwise indicated herein, must be in writing and signed by both parties.

       c.     Provisions Binding: This Agreement shall be binding upon and inure to the
benefit of the respective successors or assigns of the parties to this Agreement, except as
otherwise prohibited by this Agreement

        d.     Invalid or Illegal Provisions: Any provision or provisions of this Agreement
which shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any
other provision hereof, and the remaining provisions hereof shall nevertheless remain in full
force and effect.

       e.    Captions of Paragraphs: The captions of the paragraphs in this Agreement are
for convenience only and shall not be considered or referred to in resolving questions of
interpretation or construction. The parties hereby agree that they have read and fully understand
all terms, conditions and covenants contained within this Agreement and enter the Agreement
freely, without reservation. This Agreement shall not be construed as if prepared by one of the
parties, but rather according to its fair meaning as a whole, as if both parties had prepared it.

        f.     Rights, Options, Election, Powers and Remedies: The various rights, options,
elections, powers and remedies contained in this Agreement shall be construed as cumulative and
no one of them shall be exclusive of any of the others, or of any other legal or equitable remedy
which either party might otherwise have in the event of breach or default in the terms hereof, and
the exercise of one right or remedy by such party shall not impair its right to any other right or
remedy until all obligations upon the other party have been fully performed.

      g.      Time: Time is of the essence with respect to the performance of each of the
covenants and agreements under this Agreement.

        h.     Relationship of Lessor and Lessee: Nothing contained herein will be deemed or
construed by the parties hereto, nor by any third party, as creating the relationship of principal
and agent or of partnership or of joint venture between the parties hereto, it being understood and
agreed that neither the method of computation of Rent, nor any other provision contained herein
nor any acts of the parties herein, shall be deemed to create any relationship between the parties
hereto other than the relationship of lessor and lessee.

        i.     Force Majeure: In the event Lessor shall be delayed or hindered in or prevented
from the performance of any obligation required under this Agreement by reason of strikes,
lockouts, inability to procure labor or materials, failure of power, fire or other casualty, acts of
God, restrictive governmental laws or regulations, riots, insurrection, terrorist acts, war, or any
other reason not within the reasonable control of Lessor, then the performance of such obligation
shall be excused for a period of such delay, and the period for the performance of any such act
shall be extended for a period equivalent to the period of such delay.

        j.      Waiver of Jury Trial: Both parties hereby knowingly and voluntarily waive the
right to a jury trial in any action, proceeding, or permissive counterclaim involving any matters
whatsoever arising out of or in any way connected with the Agreement, the relationship of
Lessor and Lessee, Lessee’s use or occupancy of the Premises, or any claim for injury or
damage.


                           [Remainder of page left intentionally blank]
       IN WITNESS WHEREOF, the parties to this Agreement have caused this Agreement to
be executed as of the date and year first above written.


LESSEE:                                        LESSOR:

FIFTH THIRD BANK                               CITY OF MUSKEGON

By:                                            By:
Name:                                          Name:
Title:                                         Title: Mayor
Date:                                          Date:


By:                                            By:
Name:                                          Name:
Title:                                         Title: City Clerk
Date:                                          Date:




STATE OF OHIO      )
                   ) SS:
COUNTY OF HAMILTON )

       The foregoing ATM Lease Agreement was acknowledged before me this ___ day of
___________, 2014 by _________________, the ___________________ of the Fifth Third
Bank, a(n) Ohio banking corporation, on behalf of the corporation.

                                        ______________________________________
                                        Notary Public


STATE OF OHIO      )
                   ) SS:
COUNTY OF HAMILTON )

       The foregoing ATM Lease Agreement was acknowledged before me this ___ day of
___________, 2014 by _________________, the ___________________ of the Fifth Third
Bank, a(n) Ohio banking corporation, on behalf of the corporation.

                                        ______________________________________
                                        Notary Public
STATE OF                  )
                          ) SS:
COUNTY OF                 )

        The foregoing ATM Lease Agreement was acknowledged before me this ___ day of
___________, 2014 by _________________, the ___________________ of the
_________________________________, a(n) ___________________ corporation, on behalf of
the corporation.

                                       ______________________________________
                                       Notary Public

STATE OF                  )
                          ) SS:
COUNTY OF                 )

        The foregoing ATM Lease Agreement was acknowledged before me this ___ day of
___________, 2014 by _________________, the ___________________ of the
_________________________________, a(n) ___________________ corporation, on behalf of
the corporation.

                                       ______________________________________
                                       Notary Public
Exhibit A

Premises
                                   VENDOR DIRECT DEPOSIT REQUEST
Vendor Number:

Vendor Name:

Vendor Address:

City, State, and Zip:

(Vendor) sells goods and/or services to Fifth Third Bank and/or one or more of its subsidiaries.

Fifth Third Bank is requesting the flexibility to make payments for such goods and/or services by Electronic Funds
Transfer (EFT) through the Automated Clearing House (ACH) Network and/or Federal Reserve Wire System.
(Vendor) agrees to grant such flexibility.

Therefore, (Vendor) hereby (1) authorizes Fifth Third Bank to make payments for goods and/or services by EFT and
to initiate, if necessary, adjustment or debit entries for any credit entries made in error, (2) certifies that it has
selected the following financial institution to receive such payments on its behalf, and (3) directs that all such
electronic funds transfers be made as provided below:

Receiving Financial Institution:

         Name                       ________________________________________________

         Address                    ________________________________________________

         City                       ________________________________________________

         State,Zip                  ________________________________________________

Routing and Transit Number          ________________________________________________

  Your Account Name                 ________________________________________________

    Your Account Number             ________________________________________________

Your Account qualifier (please circle one):

                                    Direct deposit              (OR)              Savings

(Vendor) will give thirty (30) days advance, written notice to Fifth Third Bank of changes in financial institution or
other payment instructions. This authorization will remain in full force and effect until Fifth Third Bank has
received written notification from (Vendor).

Name of Company:                    ___________________________________________________

         By:                        ___________________________________________________
                                    (printed name)

         By:                        ___________________________________________________
                                    (authorized signature)

         Title:                     ___________________________________________________

         Date:                      ___________________________________________________
              Commission Meeting Date: May 13, 2014




Date:          May 6, 2014
To:            Honorable Mayor & City Commission
From:          Planning & Economic Development Department
RE:            Farmers’ Market- First Amendment to Purchase
               Agreement


SUMMARY OF REQUEST: Due to the weather conditions during the winter of 2013-
2014, the construction of the new downtown Farmers’ Market has taken longer than
anticipated. Although the Farmers’ Market was able to open as scheduled, on May 3,
2014, the entire construction will not be complete until just prior to the Grand Opening
on May 24, 2014. Therefore, it was necessary to enter into an “Amendment to
Purchase Agreement”. The Amendment allows for the Farmers’ Market operation
prior to the official closing on the property, with the City “fully responsible for any and
all liability related to operating the farmers’ market” during that time. The Closing is
moved to July 3, 2014 or before.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: To approve the attached “First Amendment to
Purchase Agreement” and authorize the City Manager’s signature (after the fact).
                     Commission Meeting Date: May 13, 2014




Date:        May 6, 2014
To:           Honorable Mayor and City Commissioners
From:        Finance Director
RE:           Finance Division Restructure



SUMMARY OF REQUEST: As described in the attached memo, staff is
recommending the restructure of the Finance Division. The main elements of this
restructure are: 1) appointment of Kenneth Grant as City Treasurer, 2) elimination of
the Income Tax Administrator/Deputy Treasurer position to be replaced with the
Treasury Services Supervisor position.



FINANCIAL IMPACT: The proposed restructure will save approximately $33,000
annually.



BUDGET ACTION REQUIRED: We anticipate this restructure to be
incorporated into the 2015 budget process.



STAFF RECOMMENDATION: Approval.


COMMITTEE RECOMMENDATION: None.
                                                          Finance
                                                          Administration



Memo
 To:      City Commission      City Manager
 From: Finance Director
 Date:    May 6, 2014
 Re:      Finance Division Restructure


 The Finance Division team has considered various options for filling the void left earlier
 this year by the promotion of the former Treasurer to Finance Director. We believe we
 have a plan to restructure the Finance Division in a manner that will enhance customer
 service and reduce overall costs.

 The basic elements of this plan are as follows:

    1. Reclassify the Income Tax Administrator/Deputy Treasurer (Kenneth Grant)
       to City Treasurer. (no additional cost since both positions are currently at the
       same salary schedule)

    2. Eliminate the Income Tax Administrator/Deputy Treasurer position and replace
       with the Treasury Services Supervisor position. In 2006 the Treasurer and
       Income Tax offices were located together to enhance staff coverage, cross-
       training opportunities and customer service. This step will formally align the
       coordination of activities in both offices. ($33,000 annual savings)

 We would like to implement these changes immediately and respectfully ask for the
 City Commission’s approval of:

    1. The appointment of Kenneth Grant as City Treasurer and,

    2. The overall restructure plan as described.

 If you have any questions, please let me know.

 Thank you.
Date:      May 13, 2014
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Cummings, City Clerk
RE:        Small Distiller License
           Distillery 43 LLC
           435-441 W. Western




SUMMARY OF REQUEST: The Liquor Control Commission is seeking
local recommendation on a request from Cody Wasilchenko, Distillery
43 LLC, for a Small Distiller License to be located at 435-441 W.
Western Avenue.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval.
A Small Distiller license:

License issued by the Liquor Control Commission to manufacture
spirits, not to exceed 60,000 gallons annually of all brands combined.

License also includes the manufacture of Brandy.

May offer free samples to consumers on the manufacturing premises.

May sell spirits to consumers for consumption on the manufacturing
premises.

May sell spirits to consumers for off-premises consumption (take-out)
for not less than the uniform price set by the Commission.

May not sell spirits directly to Michigan retail licensees.

May sell spirits to the Michigan Liquor Control Commission who
resells spirit products through the spirit distribution system.
Date:      May 13, 2014
To:        Honorable Mayor and City Commissioners
From:      Engineering
RE:        Charter Communications – METRO Act Permit




SUMMARY OF REQUEST: Approve the request for a permit from Charter
Communications and authorize the Mayor to sign the permit.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approve the permit and sign the documents.
Date: May 13, 2014
To:     Honorable Mayor and City Commissioners

From:      Finance Department

RE:     2014-15 Healthcare Renewal



SUMMARY OF REQUEST: It is time to renew the City's healthcare coverage for 2014-15 plan year (6/1/14-
5/31/15). Renewal premiums for the City's current healthcare program came in at an 11.68% increase over the
current year. However, by changing to an 80/20 coinsurance plan and increasing the deductible from
$1,000/$2,000 to $2,000/$4,000, the net result is a premium decrease of 2.62% from the current year. Last year
we experienced a 5.04% increase and in 2012-13 the increase was 7.90%. In comparative terms, many employers
are experiencing sharp double-digit rate increases. Also, the City’s healthcare costs remain well below the “hard
cap limits” set by PA 152 and remain cost competitive with the standards set by EVIP for new hires. These are
good independent indicators that the City’s program is cost-effective.

For 2014-15, the City will continue to pay the HRA deductible if the employee and spouse completed the four-step
wellness initiative prior to April 30th; non-participants in the wellness program will continue to pay the first $500
(single)/ $1,000 (double/family) of the deductible.

FINANCIAL IMPACT: Following is an estimate of gross premium costs for the Priority Health HMO program
compared with the current healthcare plan year:

                                                          2014‐15                                           2013‐14
                                          Single        Double          Family             Single           Double         Family
              Monthly  Premium         $     421.37 $       948.08 $      1,137.70     $       432.74 $          973.67 $    1,168.40
              Rate  Change                   (2.62%)         (2.62%)        (2.62%)             5.04%             5.04%         5.04%
              Annual  Premium              5,056.44      11,376.96       13,652.40           5,192.88        11,684.04      14,020.80
              Current # Employees                 33              34            118                 33                34           118
              Total  Annual  Premium    166,862.52      386,816.64 $  1,610,983.20         171,365.04       397,257.36 $ 1,654,454.40
                                                      2,164,662.36                                       2,223,076.80
              Add: HRA Deductibles Paid by City         160,000.00                                          134,356.52
              Less: 10% Employee  Premium Copays     (216, 466.23)                                         (222, 307.68)
              Equals: Employer Cost                  $2,108,196.13                                     $2,135,125.64

                                                2014 PA 152 Hard Cap Limits                      2013 PA 152 Hard Cap Limits
                                      $    5,857.58 $ 12,250.00 $          15,975.23   $     5,692.50 $ 11,385.00 $  15,525.00
                                       193,300.14       416,500.00     1,885,077.14        187,852.50     387,090.00     1,831,950.00

                                                    $2,494,877.28                                      $2,406,892.50


Full-time City employees pay 10% of the above premium costs through payroll deduction.

BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be included in the forthcoming
2014-15 budget.

STAFF RECOMMENDATION: Authorize staff to execute documents with Priority Health to renew employee
healthcare coverage for the coming year with an 80/20 coinsurance and $2,000/$4,000 deductible.

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