City Commission Packet 06-13-2017

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     CITY OF MUSKEGON
      CITY COMMISSION MEETING
            JUNE 13, 2017 @ 5:30 P.M.
     MUSKEGON CITY COMMISSION CHAMBERS
    933 TERRACE STREET, MUSKEGON, MI 49440
                               AGENDA
□    CALL TO ORDER:
□    PRAYER:
□    PLEDGE OF ALLEGIANCE:
□    ROLL CALL:
□    HONORS AND AWARDS:
□    INTRODUCTIONS/PRESENTATION:
     A. Recognition of Spring 2017 Citizen’s Academy Graduates
        Public Safety
□    CITY MANAGER’S REPORT:
□    CONSENT AGENDA:
     A. Approval of Minutes City Clerk
     B. Special Event Request – Burning Foot Beer Festival at Pere Marquette
        Park - Planning
     C. Approval of a Neighborhood Enterprise Zone Certificate – 325 Terrace
        Point Circle – Planning & Economic Development
     D. Approval of a Neighborhood Enterprise Zone Certificate – 311 Terrace
        Point Circle – Planning & Economic Development
     E. Authorization of Community Housing Development Organization
        (CHDO) Agreements – Community & Neighborhood Services
     F. Approval of the Fair Housing Agreement with Muskegon Heights and
        Norton Shores – Community & Neighborhood Services
     G. CDBG Program Administration Agreement – City of Muskegon/City of
        Norton Shores - Community & Neighborhood Services
     H. Cemetery Perpetual Care Fund – CFFMC - City Manager
     I. LC Walker Concession Point of Sale Contract - City Manager
     J. Community Relations Committee Recommendation for Housing

                                       Page 1 of 2
           Commission Opening                     City Clerk
□   PUBLIC HEARINGS:
       A. Transmittal of 2017-18 Proposed Budget – City Manager
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
       A. Defined Benefit Plan Amortization Extension Agreement – Finance
       B. Request for Approval of a Planned Unit Development at Former Nims
          School – Planning & Economic Development
       C. Neighborhood Empowerment Program City Manager
□ 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 MEISCH, 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.




                                                       Page 2 of 2
Memorandum
To:      Mayor and Commissioners

From: Frank Peterson

Re:      City Commission Meeting

Date: June 7, 2017

Here is a quick outline of the items on our agenda(s):

WORK SESSION

      1. The focus will be on the 4th Quarter Reforecast and the proposed FY 2017-18 operating
         budget. Look for a separate memo from me regarding the budget document.
         Additionally, we are preparing a PowerPoint for the meeting. We do plan to also hold the
         budget public hearing on Tuesday.
      2. LC Walker Concession Point of Sale Contract

REGULAR MEETING

1.       Under the consent agenda, we are asking the Commission for approval of the following:
         a. Last meeting’s minutes.
         b. Special event approval for the Burning Foot Beer festival. This is the third annual
            event, and is expected to attract thousands of visitors to the beach late in the season.
            There are a number of improvements this year, including more camping (including
            off-site camping), more shuttles to/from downtown, and improved food and
            entertainment. We feel that the improved camping and transportation will help with
            traffic/parking, and will ultimately encourage festival-goers to spend more time in
            the city. This is a great event, and we have receive no complaints. Event organizers
            will cover all city-related costs and share 10% of all camping revenues with the city.
         c. Approval of an NEZ certificate for 325 Terrace Point Circle, which is a new home in
            the Terrace Point Landing Development. The certificate will reduce the new owner’s
            taxes for a period of 12 years, as long as it remains owner-occupied.
         d. Approval of an NEZ certificate for 311 Terrace Point Circle, which is a new home in
            the Terrace Point Landing Development. The certificate will reduce the new owner’s
            taxes for a period of 12 years, as long as it remains owner-occupied.
e.   A Community Housing Development Organization Agreement with Habitat for
     Humanity. This agreement will assist Habitat for Humanity with its intention to build
     two new homes in the Nims Neighborhood.
f.   Fair Housing Agreement with Muskegon Heights and Norton Shores. This is a
     partnership with these two communities to jointly engage Fair Housing to study our
     housing market to help identify certain potential weaknesses in our housing market
     related to equal housing opportunities.
g.   CDBG Administration Agreements with the cities of Norton Shores and Muskegon
     Heights to continue to provide administration for those two cities’ CDBG
     programming. This agreement has been in place for a number of years and seems to
     work for all three communities.
h.   Changes to the Cemetery Perpetual Care Fund at the Community Foundation.
     Changes were originally approved last month. However, after submitting the total
     financing package to the MEDC, we were notified that there were staff concerns that
     the interest payments would put too much strain the project’s operation margins. I
     spent considerable time talking with MEDC staff to understand their concerns, and I
     do agree with them. The problem with redevelopment in downtown Muskegon is
     100% cost-related. According to MEDC staff, most downtowns are able to move into
     the mixed-use redevelopment market at $70-$75 per square foot, and that is a
     reasonable cost to expect a return on investment. However, because we have very
     few small building that can be retro-fitted into mixed-use, and construction costs are
     also generally higher because of the boom in GR, we’re seeing costs well-above $200
     per square foot. Accordingly, anything we can do to help get the net cost down closer
     to that $70-$75 number, will help these initial projects become viable long-term.
     Accordingly, they are asking that we lower our interest rate from PRIME to 3%.
     Incentivizing these early projects will be key in eventually attracting projects that
     require little/no subsidy.
i.   Purchase and implementation of a Point of Sale system at the LC Walker Arena. Our
     concessions stands grossed nearly $500,000 in sales during the current fiscal year. This
     is done without a point of sale system, which historically has limited the arena’s ability
     to track important functions of the concession business (e.g. inventory, peak sales times,
     cash-flow, vendor security, reporting, etc.). Staff would like to implement a full point of
     sale system for the entire arena – including all concession stands, suites, and third party
     vendors. We expect the end result will be a more-efficient sales process, better loss-
     control, better staffing during peak times, and improved sales. The initial cost of the
     system is estimated at $75,000. Arena staff and consultants looked at many systems,
     but only one locally-operated system has the capacity to implement a network as large
     as the LC’s system (nearly 30 point of sales). Digital Dining is deployed in a number of
     Western Avenue restaurants (Holiday Inn, Racquet’s, Rebel Pies, Unruly, Pigeon Hill,
          Boar’s Belly, etc.) and a number of large regional attractions (The BOB, The
          Knickerbocker, and 20 Monroe Live), and the system is also present in a number of
          arenas and stadiums throughout the United States.

2.    Under Public Hearings
         a. We will take public comments on the proposed FY 2017-18 Budget. The budget
            will be adopted if the commission chooses to do so at this meeting, otherwise, or
            if there are major changes, adoption will be deferred to the next meeting. Beth
            Lewis will be available to give any public in attendance a quick overview of the
            revenues and expenses of the city’s major funds. Otherwise, everything else will
            be covered more in-depth at the work session Monday evening.

3.    Under new business, we will be asking the Commission to approve the following:
         a. MERS amortization extension agreement. This agreement will allow us to
            lengthen the amortization period for each of our funds. Some are being extended
            to 25 years, while others are only being extended to 14 years. This is part of the
            multi-faceted plan to help reduce upfront costs associated with pensions, which
            were set to rise to unsustainable levels in the coming 3-5 years.
         b. Request and Approval of a Planned Unit Development at the former Nims School.
         c. Neighborhood Empowerment Program. We have talked about this at a previous
            work session. This program is designed to expand on our current neighborhood
            grant program and provide opportunities to neighborhoods to make certain
            investments in their neighborhoods related to neighbor engagement, your
            recreation, and beautification.

Let me know if you have any questions/comments/concerns
Date:     June 7, 2017
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Meisch, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the May 23, 2017 Regular
City Commission Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
              MAY 23, 2017 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440
                                  MINUTES

The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, May 23, 2017. Mr.
George Monroe, Evanston Avenue Baptist, opened the meeting with prayer,
after which the Commission and public recited the Pledge of Allegiance to the
Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present:     Mayor Stephen J. Gawron, Vice Mayor Hood, Commissioners Ken
Johnson, Debra Warren, Willie German, Jr. (left at 7:00 p.m.), Dan Rinsema-
Sybenga, and Byron Turnquist, City Manager Franklin Peterson, City Attorney
John Schrier, and City Clerk Ann Meisch.
2017-42     CONSENT AGENDA:
      A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the May 8, 2017 Worksession
Meeting and the May 9, 2017 Regular City Commission Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
      B. Polling Place Changes         City Clerk
SUMMARY OF REQUEST: To change the polling location for Precinct 4 from
Oakview Elementary to Muskegon Middle School, the polling location for
Precinct 9 from Moon Elementary to Muskegon High School’s Gym Building, and
the polling location for Precinct 10 from Fire Station #4 to the Lakeshore Fitness
Center.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the polling place changes.

                                    Page 1 of 12
   D. Special Event Request – Amateur Radio Field Day Planning
SUMMARY OF REQUEST: The Amateur Radio Association would like to hold their
Field Day event at Pere Marquette Park June 24-25, 2017. It’s a national event
for ham radio operators and it is an overnight event, starting at 2:00 PM on
Saturday, June 24 and ending at 2:00 PM the following day. They are requesting
permission for their participants to camp overnight in their RVs in the parking lot
adjacent to the Coast Guard station. They expect around 8 RVs in the lot
overnight. There is no alcohol involved and this is not a fundraising type of event.
The purpose of the national “Field Day” event is a national contest to see how
many contacts the radio operators can make in a 24-hour period.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDAITON:           Staff recommends approval.
   E. 2015 (Edition) International Fire Code Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and authorize the adoption of the 2015 (edition) of the
International Fire Code. The new edition addresses safeguarding of life, property
from fire, explosion hazards arising from the use and occupancy of buildings
within the City of Muskegon. Note; City Ordinance Chapter 30, Article III, Section
30-191 will again be included with this adoption.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends adoption of the proposed
2015 edition.
   G. Amendment of the Non-union Part-Time Police Officers Wage Matrix
      Public Safety and Employee Relations
SUMMARY OF REQUEST: The 2017 Wage Matrix for Non-Union Part-Time and
Limited Term Employees has the Police Recruit and Part-Time Police Officers in
Step 7B of the wage matrix. Step 9B has the Evidence/Court Officer which is also
a Part-Time MCOLES Certified Police Officer position.
The department is proposing to leave the Police Recruit in Step 7B, and remove
the Evidence/Court Officer from the Matrix and replace it with an expanded
range of the Part-Time Police Officer. This will provide some flexibility as to how
Part-Time officers can be utilized without designating them for a specific area.
The position description for Part-Time Police Officer and the Union contract
specify how the part-time officers can be utilized. The department will continue
to follow that guideline.
FINANCIAL IMPACT:        Unbenefited MCOLES certified part-time officers save

                                     Page 2 of 12
the City in the areas of Evidence/Court Officer, Beach Patrol, Event Security,
and assisting Inspections.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the request.
   H. Purchase of HUD Home at 1350 Eastwood Drive          Community &
      Neighborhood Services
SUMMARY OF REQUEST: To approve the purchase of a HUD home located at
1350 Eastwood Drive in Sheldon Park Neighborhood for the price of $61,200.
After the sale, CNS will rehabilitate the single family dwelling as part of the HOME
funded Homebuyer Program.
FINANCIAL IMPACT:      The funding used for the purchase and rehabilitation
will come from 2016 HOME funds.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the request to purchase the
property.
   J. Brownfield Reimbursement Contract with CBC Community Development
      Strategies City Manager
SUMMARY OF REQUEST: Approve a contract with CBC Community
Development Strategies to assist with the various steps in the Brownfield
Redevelopment process.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the contract with CBC Community
Development Strategies.
   L. Rezoning Request for Several Properties to R-2, Single Family Medium
      Density Residential District   Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties to R-
2, Single Family Medium Density Residential District.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.



                                     Page 3 of 12
   M. Rezoning Request for Several Properties to R-3, Single Family High Density
      Residential District Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties to R-
3, Single Family High Density Residential District.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.
   N. Rezoning Request for Several Properties to Urban Residential, Form Based
      Code Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties to
Form Based Code, Urban Residential.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.
   P. Table the findings of the Housing Board of Appeals for 1451 Park Street
      Public Safety
SUMMARY OF REQUEST: This is to request that that City Commission “table” the
findings of the Housing Board of Appeals (HBA) relating to the structure located
at 1451 Park Street. It is further requested that Public Safety Administration be
directed to allow said owner (Bruce Antwan) a ninety (90) day reprieve to
complete finishing work at said location. At the end of ninety (90) days if noted
finish work is not final the case EN157069-1451 Park Street will be forwarded back
to the Commission for concurrence with the Housing Board of Appeals.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To “table” the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the consent agenda as presented, minus items C, F, I, K, and O.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,

                                    Page 4 of 12
            Gawron, and Hood
            Nays: None
MOTION PASSES
2017-43        ITEMS REMOVED FROM THE CONSENT AGENDA:
   C. 2017-2018 Michigan Municipal League Membership Dues             City Clerk
SUMMARY OF REQUEST: Approval to pay the 2017-2018 MML dues in the
amount of $9,763. This is an increase of $87.
FINANCIAL IMPACT:    MML Dues                      $8,875
                     Legal Defense Fund              $888
                     Total                         $9,763
BUDGET ACTION REQUIRED:    None
STAFF RECOMMENDATION:           Approval.
Motion by Commissioner Warren, second by Commissioner Johnson to approve
the payment of the 2017-18 MML Dues and Legal Defense Fund in the amount of
$9,763.00.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
            Nays: None
MOTION PASSES
   F. Purchase of Beach Patrol Vehicle       Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the amount of $16,525.97 for the purchase of a 2017
Polaris Ranger Crew 1000 Beach Patrol Vehicle from Babbitt’s Sports Center, a
local business. This purchase will assist with patrol at the beach area and on the
beach, especially if there is an emergency.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         Funds will come from the forfeiture account.
STAFF RECOMMENDATION:           Staff recommends approval of this all-terrain
beach vehicle.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga
to approve the purchase of the all-terrain beach vehicle.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German
            Nays: None
MOTION PASSES


                                    Page 5 of 12
   I. 2017-18 Healthcare & Wellness Program              Finance
SUMMARY OF REQUEST: It is time to renew the City’s healthcare coverage for
the 2017-18 plan year (6/1/17 – 5/31/18). Renewal premiums for the City’s
current healthcare program came in a t a 3.96% increase over the current year.
Last year we experienced an increase of 6.96%. In comparative terms, many
employers have been experiencing sharp double-digit rate increases for several
years. Also, the City’s healthcare costs remain below the “hard cap limits” set by
PA 152 and remain cost competitive with the standards set by the state for new
hires. These are good independent indicators that the City’s program is cost-
effective.
Starting June 1, 2017, the deductible will be increased from $2,500 for an
individual and $5,000 for double/family to $4,000 for an individual and $8,000 for
double/family. In addition, the prescription drug coverage will change from a
$10/$40 copay to a five tier copay of $10/$40/$80/20% ($100 max)/20% ($200
max) effective June 1, 2017.
For 2017-18, the City will continue to pay the HRA deductible if the employee
and spouse completed the wellness requirements by March 31st; non-
participants in the wellness program will be required to pay the first $1,000
(single)/$2,000 (double/family) of the deductible.
Dental benefits will no longer be administered through Priority Health, but they
will now be through Delta Dental.
FINANCIAL IMPACT:        The following is an estimate of gross premium costs for
the Priority Health HMO program compared with the current healthcare plan
year.




Full-time City employees pay 10% of the above premium costs through payroll
                                    Page 6 of 12
decution.
BUDGET ACTION REQUIRED:       Employee and retiree healthcare costs will be
included in the forthcoming 2017-18 budget.
STAFF RECOMMENDATION:       Authorize staff to execute documents with Priority
Health to renew employee healthcare coverage for the coming year.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga to
authorize staff to execute documents with Priority Health to renew employee
healthcare coverage for the coming year.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
   K. Rezoning Request for 311, 317, 329, 331, and 335 W. Muskegon Avenue
      and 1138 4th Street Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone 311, 317, 329, 331 and
335 W Muskegon Avenue and 1138 4th Street from RT, Two Family Residential
District to Form Based Code, Urban Residential.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:           None
STAFF RECOMMENDATION:             Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga
to approve the rezoning.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
   O. Finance Director Position          City Manager
SUMMARY OF REQUEST: Derrick Smith has accepted employment outside of the
City of Muskegon, effective June 2, 2017. This request is to appoint Assistant
Finance Director, Beth Lewis, as Finance Director effective June 2, 2017.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:           None


                                      Page 7 of 12
STAFF RECOMMENDATION:         Staff recommends Beth Lewis be appointed
Finance Director. Beth has been the City’s Assistant Finance Director for 19
years.
Motion by Commissioner German, second by Commissioner Johnson to appoint
Beth Lewis to the position of Finance Director effective June 2, 2017.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
             Nays: None
MOTION PASSES
2017-44      NEW BUSINESS:
      A. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish     Public Safety
             288 Jackson Avenue                     961 Amity Avenue
             240 Monroe Avenue                      1342 6th Street
             398 Monroe Avenue                      1670 Park Street
             763 Catawba Avenue                     2020 Lakeshore Drive
             810 Allen Avenue
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 thirty (30)
days or infraction tickets may be issued. 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 contracts for
demolition with the lowest responsible bidder or staff may issue infraction tickets
to the owner, agent or responsible party if they do not demolish the structure.
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals
decision to demolish.
398 Monroe, 763 Catawba, 810 Allen, 1342 6th Street, & 2020 Lakeshore
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga
to concur with the Housing Board of Appeals notice and order to demolish 398
Monroe Avenue, 763 Catawba Avenue, 810 Allen Avenue, 1342 6th Street, and
2020 Lakeshore Drive.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
             Nays: None
MOTION PASSES

                                     Page 8 of 12
288 Jackson
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German
to concur with the Housing Board of Appeals notice and order to demolish 288
Jackson Avenue.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
              Nays: None
MOTION PASSES
240 Monroe
Motion by Commissioner German, second by Commissioner Warren to concur
with the Housing Board of Appeals notice and order to demolish 240 Monroe
Avenue.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
              Nays: None
MOTION PASSES
961 Amity
Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga to
concur with the Housing Board of Appeals notice and order to demolish 961
Amity Avenue.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German
              Nays: None
MOTION PASSES
1670 Park Street
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren to
concur with the Housing Board of Appeals notice and order to demolish 1670
Park Street.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
              Nays: None
MOTION PASSES
      B.    Cemetery Perpetual Care Fund-CFFMC         City Manager
SUMMARY OF REQUEST: The City Commission recently approved a $500,000
loan for the development of a six-story mixed-use building at 351 West Western

                                   Page 9 of 12
Avenue. The loan proceeds were originally to be paid from one of the city’s
economic development funds. Rather than utilizing these economic
development funds, City staff is seeking to unlock the power of its Cemetery
Perpetual Care Endowment Fund at the Community Foundation for Muskegon
County by investing the fund’s assets in this secured, interest bearing loan. The
loan would support a downtown Muskegon development project whose goals
are to reestablish downtown residential living and increase the presence of
commercial and retail businesses in the downtown area.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:            To authorize the Community Foundation for
Muskegon County to invest $500,000 from the City of Muskegon Cemetery
Perpetual Care Fund in 351 W. Western Avenue, LLC, as a piece of the financing
for a six-story residential, commercial and retail development on terms that are
as follows:
The return to the Cemetery Perpetual Care Endowment Fund will be interest at
the prime rate, adjusted annually. Years 1– 5, monthly payments will consist of
interest only. Beginning in Year 6, monthly payments will consist of principle and
interest (at prime), based on 25 year amortization. A balloon payment will be
due at year 15. The loan will be secured by a subordinated mortgage on the
development.
Motion by Commissioner Johnson, second by Vice Mayor Hood to authorize the
Community Foundation for Muskegon County to invest $500,000 from the City of
Muskegon Cemetery Perpetual Care Fund in 351 W. Western Avenue, LLC, as a
piece of the financing for a six-story residential, commercial and retail
development.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist.
            Nays: None
MOTION PASSES
      C. Approval of a Neighborhood Enterprise Zone Certificate – 351 W.
         Western, LLC Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from 351 W. Western, LLC for the construction of
20 market-rate apartments as part of a mixed-use development project. The
estimated project cost is $210,000 per unit. The property was approved as a
Neighborhood Enterprise Zone District on May 9, 2017. The applicant has met
local and state requirements for the issuance of the NEZ certificate. They have
requested the maximum 15 years for the exemption.


                                    Page 10 of 12
FINANCIAL IMPACT:         One-half of the previous year’s state average principal
residence millage rate will be applied to the value of the facility for a duration of
15 years, with a three-year phase out (they will receive 75% of the abatement in
year 13, 50% in year 14, and 25% in year 15.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Approval of the NEZ certificate for 15 years.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood to
approve the NEZ certificate for 15 years for 351 W. Western, LLC.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
           Johnson
             Nays: None
             Absent: German
MOTION PASSES
      D. Third Quarter 2016-17 Budget Reforecast          Finance
SUMMARY OF REQUEST: At this time staff is transmitting the Third Quarter 2016-17
Budget Reforecast which outlines proposed changes to the budget that have
come about as result of changes in revenue projections, policy priorities, labor
contracts, updated economic conditions, or other factors.
FINANCIAL IMPACT:       A summary of third quarter proposed adjustments to
the budget are as follows:
             •   General Fund revenues are reforecast to be $141,131 higher
                 than the second quarter budget reforecast, largely due to
                 higher projected building permit revenues.
             •   General Fund expenditures are reforecast to be $256,602 lower
                 than the second quarter budget reforecast.
             •   There was further refinement of the capital projects budget
                 resulting in an overall net decrease of $5,294,963 from the
                 second quarter budget reforecast due to the removal or
                 reduction of a number of projects.
BUDGET ACTION REQUIRED:       City Commission approval of this reforecast will
formally amend the City’s 2016-17 budget.
STAFF RECOMMENDATION:           Approval.
Motion by Vice Mayor Hood, second by Commissioner Warren to approve the
2016-17 Budget Reforecast.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron


                                     Page 11 of 12
            Nays: None
            Absent: German
     E.   Request for Authorization to Sign Planning & Economic Development
SUMMARY OF REQUEST: Request to authorize Mike Franzak from the Planning
Department to sign purchase agreements and closing documents for the
Midtown Square Homes.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval to authorize.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood to
authorize Mike Franzak from the Planning Department to sign purchase
agreements and closing documents for the Midtown Square Homes.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Hood
            Nays: None
            Absent: German
PUBLIC PARTICIPATION: No public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:20 p.m.
                                             Respectfully Submitted,


                                             Ann Marie Meisch, Clerk




                                   Page 12 of 12
                   CITY COMMISSION MEETING DATE
                                 June 13, 2017


Date:        May 24, 2017
To:          Honorable Mayor and City Commissioners
From:        Mike Franzak, Planning Manager
Re:          Special Event Request – Burning Foot Beer Festival
             @ Pere Marquette Park


SUMMARY OF REQUEST: The Lakeshore Brewer’s Guild is holding their 3rd annual
“Burning Foot Beer Festival” event at Pere Marquette Park on August 26, 2017. City
Commission approval is required due to the request allow overnight camping at the
beach.

Overnight camping proposal: Tent camping is proposed on the beach to the south of
the festival area. RV camping is proposed in the grassy area of Margaret Drake
Elliott Park adjacent to the parking lot near the Coast Guard station. Camping areas
will open at 9:00 AM on Saturday, August 26 and be cleared out by 11:00 AM on
Sunday, August 27. All camping areas will be monitored by festival personnel. A site
plan is attached showing the proposed camping areas. Burning Foot personnel will
obtain the necessary Health Department/DEQ permits.


FINANCIAL IMPACT:         None


BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION:            Staff recommends approval


COMMITTEE RECOMMENDATION:              N/A
                     Commission Meeting Date: June 13, 2017




Date:         June 8, 2017
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Approval of a Neighborhood Enterprise Zone Certificate - 325
              Terrace Point Circle


SUMMARY OF REQUEST:

An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Eric and Michelle Ringelberg for the new construction of a home at 325 Terrace
Point Circle. This unit has already been constructed and the State Tax Commission
allows applicants to apply for a certificate up to six (6) months after construction
commences. Construction started in February with an estimated cost of $320,112.
The applicant has met local and state requirements for the issuance of the NEZ
certificate.


FINANCIAL IMPACT:

Taxation will be 50% of the State average of new homes for the next 12 years.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the NEZ certificate.

COMMITTEE RECOMMENDATION:

None




6/8/2017
                                    Resolution No. ________

                             MUSKEGON CITY COMMISSION

                     RESOLUTION TO APPROVE THE ISSUANCE
               OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE



WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Eric and Michelle Ringelberg to construct a new home at 325 Terrace Point
Circle in the Terrace Point Condominium neighborhood, and;

WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;

WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;

WHEREAS, the Neighborhood Enterprise Zone Certificate will be in effect for twelve (12)
years;

NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Eric and Michelle Ringelberg be
approved.

Adopted this 13th day of June, 2017.



Ayes:

Nays:

Absent:


                                                     By: __________________________
                                                         Stephen J. Gawron, Mayor


                                                     Attest: _________________________
                                                             Ann Meisch
                                                             City Clerk



6/8/17
                                       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 June 13, 2017.

                                                                By: ________________________
                                                                          Ann Meisch
                                                                          City Clerk




6/8/17
                     Commission Meeting Date: June 13, 2017




Date:         June 8, 2017
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Approval of a Neighborhood Enterprise Zone Certificate - 311
              Terrace Point Circle


SUMMARY OF REQUEST:

An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received
from Steve and Lori Videto for the new construction of a home at 311 Terrace Point
Circle. This unit has already been constructed and the State Tax Commission allows
applicants to apply for a certificate up to six (6) months after construction commences.
Construction started in February with an estimated cost of $314,072. The applicant
has met local and state requirements for the issuance of the NEZ certificate.


FINANCIAL IMPACT:

Taxation will be 50% of the State average of new homes for the next 12 years.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the NEZ certificate.

COMMITTEE RECOMMENDATION:

None




6/8/2017
                                    Resolution No. ________

                             MUSKEGON CITY COMMISSION

                     RESOLUTION TO APPROVE THE ISSUANCE
               OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE



WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with
the City Clerk by Steve and Lori Videto to construct a new home at 311 Terrace Point Circle in
the Terrace Point Condominium neighborhood, and;

WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a
Neighborhood Enterprise Zone Certificate;

WHEREAS, the local unit of government is allowing the six (6) month grace period after
construction commencement to apply, which is allowed under the law;

WHEREAS, the Neighborhood Enterprise Zone Certificate will be in effect for twelve (12)
years;

NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise
Zone Certificate for the new construction of a home by Steve and Lori Videto be approved.

Adopted this 13th day of June, 2017.



Ayes:

Nays:

Absent:


                                                     By: __________________________
                                                         Stephen J. Gawron, Mayor


                                                     Attest: _________________________
                                                             Ann Meisch
                                                             City Clerk




6/8/17
                                       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 June 13, 2017.

                                                                By: ________________________
                                                                          Ann Meisch
                                                                          City Clerk




6/8/17
        Commission Meeting Date:            June 13, 2017

Date:      June 6, 2017
To:        Honorable Mayor & City Commission
From:      Community and Neighborhood Services
           Department
RE:        Authorization of Community Housing
           Development Organization (CHDO) Agreements


SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign
the approved agreement for the City’s CHDO reserve and operating
funds, for Muskegon County Habitat for Humanity. The Muskegon
County Habitat for Humanity, has proposed to build (2) three-bedroom,
single-family homes in the Nims Neighborhood (1166 W. Grand and
1670 Ruddiman). The total budget for this project is $229,065.
Muskegon County Habitat for Humanity has requested $79,900, in
HOME funds to assist in the completion of these homes, as well as
continuing the partnership between the City and Habitat in providing
decent affordable homes within the City of Muskegon.
After the Mayor and Clerk sign the contracts, the CNS office will retain
one copy of our files and a copy will be supplied to Muskegon County
Habitat for Humanity for their records.
FINANCIAL IMPACT: Funding will be allocated from the 2016 HOME
program.
BUDGET ACTION REQUIRED: The City Commission made budgeting
allocation decision last year.
STAFF RECOMMENDATION: To direct Mayor and Clerk to sign
agreements.
COMMITTEE RECOMMENDATION: Citizen District Council approved
                               AGREEMENT
                      BETWEEN THE CITY OF MUSKEGON
                                  AND
                  MUSKEGON COUNTY HABITAT FOR HUMANITY

                                  (SCOPE FOR PROGRAM)


        THIS AGREEMENT, entered into this __13th_ day of ___June____, 2017 , by and
between the City of Muskegon, Michigan, a municipal corporation, (hereinafter referred to as the
"City"), and Muskegon County Habitat for Humanity, a Community Housing Development
Organization (hereinafter referred to as the CHDO)

       WITNESSETH;

       WHEREAS, the City is the recipient of a HOME Investment Partnership Grant from the
U.S. Department of Housing and Urban Development ("HUD") pursuant to Title II of the
National Affordable Housing Act of 1990 ("Home Program"); and

       WHEREAS, under the provisions of the Act, the City is required to set-aside at least 15%
of its HOME Grant allocation to organizations that meet the requirements for Community
Housing Development Organizations ("CHDOs"), as specified by the HOME Program, which
own, develop or sponsor housing projects and programs for families at or below 80% of the area
median income; and

       WHEREAS, the CHDO has met the requirements established by the federal government
and has been certified as a CHDO by the City, pursuant to the National Affordable Housing Act.

       NOW, THEREFORE, the parties mutually agree as follows:


SECTION 1: REFERENCES

A.     "Application" refers to the CHDO's application to the City for funding under the HOME
       Investment Partnership Program; contained in Attachment A.

B.     "HOME" refers to HOME Investment Partnerships Program as described in Section
       92.1 of the HOME Investment Partnerships Program, 24 CFR 92 dated April 19, 1994.

C.     "CFR" refers to the Code of Federal Regulations.

D.     "City" as hereinafter set forth, refers to the City of Muskegon.
E.     "HUD" refers to the United States Department of Housing and Urban Development.

F.     "MBE" refers to a Minority Business Enterprise, which is a business at least fifty-one
       percent (51%) owned and controlled by racial minority group members.

G.     "OMB" refers to the Office of Management and Budget of the United States
       Government.

H.     "Program Income" means gross income received by the CHDO which is directly
       generated from the use of HOME funds, as defined in 24 CFR 92. When such income is
       generated by an activity that is only partially assisted with HOME funds, the income shall
       be prorated to reflect the percentage of HOME funds used.

I.     "Resolution" refers to the resolution dated May 24, 2016, by the City Commission of the
       City of Muskegon authorizing execution of this Agreement and payment of HOME funds
       to the CHDO.

J.     "CHDO" refers to Community Housing Development Organization.

K.     "CHDO" refers to Muskegon County Habitat for Humanity, a Michigan nonprofit
       corporation that has been certified as a Community Housing Development Organization
       (CHDO).

L.     "WBE" refers to a Women's Business Enterprise, which is a business at least fifty-one
       percent (51%) owned and controlled by women.


SECTION 2: CONTRACT DOCUMENTS

       The contract documents consist of this Agreement, an Application for HOME funding
contained in Attachment A, a Program Budget contained in Attachment B, Certification of Legal
Authority contained in Attachment C, Certification to Comply with All Applicable Federal
Regulations contained in Attachment D, and the Amendment Pertaining to the Use of HOME
Funds by Sectarian Organizations contained in Attachment E, the HOME Investment
Partnerships Program Certification contained in Attachment F, and HOME Investment
Partnerships Program Descriptions and Guidelines contained in Attachment G.

       The information contained in Attachments A, B, C, D, E, F, and G as stated and
incorporated by reference shall be considered fully a part of this Agreement, and shall be fully
binding upon the City and the CHDO for purposes of this Agreement.

SECTION 3: AMOUNT AND SOURCES OF FUNDS

      A grant of $79,900 (Seventy-Nine Thousand Nine Dollars), from the City’s Fiscal Year
2016-2017 HOME entitlement allocation is awarded to the CHDO for the rehabilitation and new
construction of rental properties or owner occupied properties, which will provide affordable
housing and organizational support, subject to the terms and conditions of this Agreement, as
more fully described in Attachment A and B.

         In the event that HUD determines that the City or CHDO have not fulfilled their
obligation under the HOME Grant requirements or the City determines that the CHDO has not
fulfilled its obligation under the HOME Grant requirements and/or HUD or the City demands
reimbursement of expenses paid under this Agreement, the CHDO shall provide said
reimbursement from non-federal sources within ten days of said notice from City. The CHDO
further acknowledges that this Agreement is necessary to comply with the requirements of 24
CFR Part 92 - Home Investment Partnerships program, which is the source of funds provided
under this Agreement; and agrees that it will comply with, and will require all subcontractors,
subgrantees and assigns to comply with all terms and conditions of said 24 CFR Part 92 and this
Agreement, as they may be amended from time to time. It shall be the CHDO's responsibility to
insure that it has the latest version of all applicable laws and regulations in its possession so as to
be able to comply with their provisions.

SECTION 4: SCOPE OF SERVICES

A.     ACTIVITIES (PROGRAM DELIVERY)

CHDO will sponsor the acquisition and rehabilitation of affordable housing units in accordance
with the requirements of 24 CFR Part 92, in particular 24 CFR 92.208 and 24 CFR 92.300.
Purchasers of the units rehabilitated with HOME funds may also receive down payment
assistance in the form of a deferred second mortgage for the amount of assistance provided
subject to the affordability periods of 24 CFR 92.254(a)(4) and 24 CFR 92.254(5).

B.     LEVELS OF ACCOMPLISHMENT/PERFORMANCE GOALS

These activities will help to increase the number of decent, safe and sanitary affordable housing
units in the City of Muskegon.

C.     PERFORMANCE SCHEDULE

At the end of the contract period, the inventory of affordable housing units available for purchase
by income-eligible potential homebuyers will have been increased.

D.     PROGRAM REQUIREMENTS

       The CHDO shall comply with all requirements of 24 CFR Part 92 Subpart F pertaining to
       affordable housing including, but not limited to, the following:

       The CHDO further agrees to the audit requirements in Section 5(M) of this Agreement.



                                                  3
SECTION 5: ADMINISTRATIVE REQUIREMENTS

A.   EXPENDITURE OF FUNDS

     The CHDO will expend funds in strict accordance with the purposes described in the
     application contained in Attachment A, and in strict accordance with the provisions of 24
     CFR Part 92 of the HOME Investment Partnerships Program, as amended. The CHDO
     agrees to utilize the federal funds available under this Agreement to supplement rather
     than supplant funds otherwise available.

B.   COMPLIANCE WITH ALL APPLICABLE FEDERAL REGULATIONS

     The CHDO agrees to comply with all provisions of 24 CFR Part 92 of the HOME
     Investment Partnerships Program, as amended and all federal regulations and policies
     issued pursuant to these regulations. All applicable regulations whether stated herein or
     incorporated by reference, are hereby made wholly a part of this Agreement and shall be
     binding on the CHDO.

C.   FINANCIAL MANAGEMENT

     1.     The CHDO agrees to comply with Attachment F of OMB Circular A-110 and
            agrees to adhere to the accounting principles and procedures required therein.
            The CHDO further agrees to utilize adequate internal controls, and maintain
            necessary source documentation for all costs incurred.

     2.     The CHDO shall administer its program in conformance with OMB Circular
            A-122, "Cost Principles for Non-Profit Organizations" for all costs incurred
            whether charged on a direct or indirect basis.

D. PROCUREMENT PROCEDURE

     1.     In the procurement of materials, supplies and services necessary to perform the
            scope of services under this Agreement, the CHDO shall, insofar as practical,
            seek price quotations from at least three providers. Award shall be made to the
            provider offering the lowest acceptable quotation. The CHDO shall duly record
            the date and amount of such quotations and retain these records in its files.

     2.     The CHDO shall comply with current City policy concerning the purchase of
            equipment and supplies and shall maintain an inventory of all non-expendable
            personal property as defined in Section 5F of this Agreement.




                                             4
     3.   The CHDO shall procure materials in accordance with the requirements of
          Attachment O of OMB Circular A-110, Procurement Standards.

E.   PROGRAM INCOME

     1.   The CHDO shall report all program income as defined at 24 CFR 92.2 generated
          by activities carried out with HOME funds made available under this Agreement,
          in accordance with the monthly reporting procedures set forth in Section 5I of this
          Agreement.

     2.   All program income shall be returned to City as soon as possible.

     3.   Any program funds which are not used by the CHDO by the end of the fiscal year
          shall be returned to City.

     4.   Under no circumstances shall interest be earned on HOME funds or HOME
          program income under this Agreement. Any interest earned on HOME funds or
          HOME program income must be remitted promptly to the City.

F.   PROGRAM PROPERTY

     1.   Title to all equipment acquired with funds made available through this Agreement
          shall remain vested in the City for the term reflected in OMB Circular A-122.
          The CHDO shall annually submit to the City an inventory of all such equipment
          in its custody.

     2.   The CHDO shall maintain real property inventory records which clearly identify
          properties purchased, improved, or sold using funds received under this
          Agreement, if applicable. Properties retained shall continue to meet eligibility
          criteria and shall conform with the "changes in use" restrictions specified in 24
          CFR 92.207(a)(4).

     3.   The CHDO shall comply with OMB Circular A-110, Attachment N, Property
          Management Standards, regarding the utilization and disposal of property.



G.   DOCUMENTATION AND RECORDKEEPING

     1.   The CHDO will collect and have on file records which demonstrate that          the
          CHDO has complied with all regulations, laws, and requirements governing       the
          use of HOME funds. The CHDO shall maintain all records required by             the
          federal regulations specified in 24 CFR 92.508, and that are pertinent to      the
          activities to be funded under this Agreement. Such records shall include but   not
          be limited to:

                                           5
a.   Records providing a full description of each activity undertaken with
     HOME funds;

b.   Records demonstrating that each activity undertaken meets one of the
     National Objectives of the HOME program;

c.   Records required to determine the eligibility of activities;

d.   Records required to document the acquisition, improvement, use, or
     disposition of real property acquired or improved with HOME assistance
     (if applicable);

e.   Records that demonstrate that each project meets the property standards in
     24 CFR 92.251.

f.   Records that demonstrate that each rental housing project meets the
     requirements of 24 CFR 92.252 for the required period of affordability.
     Records must be kept for each family assisted.

g.   Records that demonstrate compliance with the requirements of 92.253 for
     tenant and participant protection.

h.   Records that demonstrate compliance with the requirements in 24 CFR
     92.254 for affordable housing: homeownership, including the initial
     purchase price and appraised value (after rehabilitation, if required) of the
     property. Records must be kept for each family assisted.

i.   Records that indicate whether the project is mixed-income, mixed-use, or
     both, in accordance with 24 CFR 92.255 and/or 24 CFR 92.256.

j.   Records documenting compliance with the fair housing and equal
     opportunity components of 24 CFR 92.508 (5)(i);

k.   Records indicating the affirmative marketing procedures and requirements
     under 24 CFR 92.351.

l.   Records demonstrating compliance with requirements regarding
     displacement, relocation, and real property acquisition, as outlined in 24
     CFR 92.508 (5)(iv).

m.   Records demonstrating compliance with labor requirements, including
     contract provisions and payroll records; records concerning lead-based
     paint; records demonstrating compliance with flood insurance
     requirements; other records required under 24 CFR 92.508 (5).

                               6
          n.     Financial records as required by 24 CFR 92.508, and OMB Circular
                 A-110; and

          o.     Other records necessary to document compliance with 24 CFR 92.508.

     2.   The CHDO shall maintain records that adequately identify the source and
          application of HOME funds received under this Agreement. These records shall
          contain information pertaining to fund obligations, unobligated balances, assets,
          liabilities, outlays, and income, if any. If HOME funds are used to pay wages and
          salaries, payroll disbursements shall be supported by time records.

     3.   The CHDO will comply with any additional documentation requirements of
          subsequent agreements between the City and the U.S. Department of Housing and
          Urban Development for the conduct of activities under the HOME Investment
          Partnership Program.

H.   ACCESS TO RECORDS

     1.   The CHDO will make available files and records of activities related to this
          Agreement to representatives of the City and its designees, the City's Independent
          Auditor, and officials of the U. S. Department of Housing and Urban
          Development.

     2.   The City, the Federal grantor agency, the Comptroller General of the United
          States, or any of their duly authorized representatives, shall have access to any
          books, documents, papers, and records of the CHDO which are directly pertinent
          to this specific Agreement, for the purpose of making audit, examination, excerpts
          and transcriptions.



I.   RECORDS RETENTION

     1.   The CHDO shall retain all records pertaining to this Agreement, including but not
          limited to financial, statistical, property and programmatic records, for a period of
          five (5) years after the Agreement expires or is terminated. All records, however
          that are subject to audit findings shall be retained for three (3) years in the manner
          prescribed above or until an ongoing audit is completed and all issues raised by
          the audit are resolved, whichever is later. Records for non-expendable property
          acquired with funds under this contract shall be retained for three (3) years after
          final disposition of such property.

     2.   The CHDO shall retain all records covering displacements and acquisition for a
          period of five (5) years after the date by which all persons displaced from the

                                            7
            property and all persons whose property is acquired for the project have received
            the final payment of benefits under this Agreement. Records regarding project
            requirements that apply for the duration of the period of affordability, as well as
            the written agreement and inspection and monitoring reports must be retained for
            three (3) years after the required period of affordability specified in 24 CFR
            92.252 and/or 92.254. as applicable.

     Nothing herein shall be construed to allow destruction of records that may be required to
     be retained longer by federal, state or local law. These records must also be made
     available to HUD and/or representatives of the Comptroller General of the United States
     for audit, inspection or copying purposes during normal business hours as defined in
     Section 5I of this agreement.

J.   REPORTING REQUIREMENTS

     1.     The CHDO shall submit quarterly reports summarizing program activities
            according to 24 CFR 92, including the following:

            a.     A narrative progress report on grant activities based upon the Performance
                   Goals and Schedule set forth in Sections 4B and 4C of this Agreement,

            b.     A budget report accounting for the expenditure and obligation of grant
                   funds according to the Budget in Attachment B,

            c.     A report of program income received (if applicable), and the uses of the
                   income during the reporting period,

            d.     A record of program beneficiaries according to HUD beneficiary
                   categories as defined in Section 5J of this Agreement, and

            e.     Copies of minutes or resolutions from meetings held by the CHDO's
                   Board of Directors documenting action taken related to this Agreement or
                   HOME funded programs.

     2.     From time to time, the City may request additional reports from the CHDO to
            comply with HOME Investment Partnerships program requirements. The City
            shall request this information in writing and provide adequate notice to the CHDO
            to comply with any additional reporting requirements.

K.   CLIENT DATA AND DISCLOSURE PROHIBITIONS

     1.     The CHDO shall maintain client data by HUD designated beneficiary categories
            to demonstrate client eligibility for services provided. Such data shall include, but
            not be limited to, accurate individual detailed records of: 1) each property,
            including acquisition and/or construction or renovation, or direct assistance

                                             8
          funded through the HOME Program; 2) each home purchaser including client
          name, address, income level, household size and composition, and physical or
          mental disability status, if any.

     2.   The CHDO shall also maintain a record of the services provided to each client and
          the basis of the client's eligibility for HOME assistance under this Agreement.

     3.   Client data shall be reported to the City based on the total number of clients
          served per beneficiary category. Individual client data need not be included in the
          CHDO's reports to the City; however, this information shall be made available to
          City staff, program auditors, or HUD representatives upon request.

     4.   The CHDO understands that client information collected under this Agreement is
          private and the use or disclosure of such information, when not directly connected
          with the administration of the CHDO's responsibilities under this Agreement is
          strictly prohibited unless written consent is obtained from the client, or in the case
          of a minor, from the responsible parent or guardian.

L.   INSURANCE AND BONDING REQUIREMENTS

     1.   Prior to requesting payment under this Agreement, the CHDO will submit to the
          City a Certificate of Insurance certifying that for the period covered by this
          Agreement, the CHDO carries:

          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 $500,000 to
                 protect the CHDO against claims for damage to property of others or for
                 injury to or death of one or more than one person due to accidents which
                 may occur or result from the CHDO's performance under this Agreement.

          c.     Motor vehicle liability insurance including Michigan No-Fault Coverage,
                 with limits of liability not less than $100,000 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.

          e.     Any and all insurance required by Attachment B of OMB Circular A-110,
                 Bonding and Insurance.


                                            9
    2.   The insurance certificates required under this Agreement shall name the City as
         an additional insured party and shall obligate the insurer to provide a defense
         against all claims brought against the City 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 fifteen (15) days
         advance written notice to the City by the insurance company.

    3.   Should the insurer as required by Section 5L of this Agreement refuse to provide
         the City with a defense as provided for in Section 5L then the CHDO at its own
         expense shall provide the City with a defense.

    4.   The CHDO shall purchase a blanket fidelity bond for all employees or persons
         responsible for handling funds received under this Agreement. The CHDO shall
         provide proof of bonding insurance to the City prior to the execution of this
         Agreement. The CHDO shall notify the City in the event such bonding is
         terminated, no later than 15 days prior to the date of termination. It is agreed that
         in the event of such cancellation, no further payments will be issued until bonding
         is resumed.

    5.   The CHDO shall also certify that any subcontractors or CHDOs of funds under
         this Agreement meet the insurance requirements as provided in this Section.

M. AUDIT REQUIREMENTS

    1.   In instances when the CHDO receives in excess of Twenty-Five Thousand
         Dollars ($25,000) of Federal financial assistance during a single fiscal year, the
         CHDO shall, at its own expense, obtain and submit to the City within three (3)
         months of the end of the CHDO's fiscal year an annual audit to assure proper
         accounting for the expenditure of HOME funds provided by the City. The audit
         shall be done in accordance with the standards set forth in OMB Circular A-133,
         Audits of Institutions of Higher Education and Nonprofits, and shall test the fiscal
         integrity of financial transactions, the effectiveness of financial management
         systems and the internal control systems, as well as compliance with the terms
         and conditions of this Agreement.

    2.   Any deficiencies noted in audit reports must be fully cleared by the CHDO within
         thirty (30) days after receipt of the audit report by the CHDO. Failure of the
         CHDO to comply with the above audit requirements will constitute a violation of
         this contract and may result in the City banning the CHDO from future
         participation in HOME programs.




                                          10
N.   CITY PERFORMANCE MONITORING REQUIREMENTS

     1.     The City will periodically monitor the CHDO's performance against the goals and
            performance standards required herein. The City will issue a written monitoring
            report to the CHDO within 30 days of the monitoring review.

     2.     Substandard performance as determined by the City will constitute non-
            compliance with this Agreement. Any findings and concerns identified in the
            City's monitoring report to the CHDO must be addressed within the time frame
            established by the City, which shall be no less than ten (10) working days from
            the date of the monitoring report. If action to correct such substandard
            performance is not taken by the CHDO within the time allowed by the City,
            contract suspension or termination procedures will be initiated.

     3.     The City reserves the right to monitor any or all of the CHDO's activities under
            this Agreement at any time, to assure that the HOME grant funds paid to the
            CHDO are being used according to the provisions of this Agreement.

     4.     The City shall notify the CHDO in writing not less than ten (10) working days in
            advance of any program monitoring review.

O.   NONPROFIT 501(c)(3) STATUS

     The CHDO shall be a bona fide private nonprofit corporation, registered with the State of
     Michigan Secretary of State, which meets the qualifications established in Section 501(c)
     of the Internal Revenue Code of 1988 and is exempt from taxation under Subtitle A of the
     Internal Revenue Code.

P.   IDENTIFICATION OF BOARD OF DIRECTORS

     The CHDO, so long as it shall remain eligible to receive HOME funds, shall file with the
     City Clerk of the City of Muskegon, a current listing of its officers and directors
     (trustees), including the addresses of such persons. Any changes in the membership of
     the CHDO's Board of Directors shall also be reported to the Director of Community and
     Neighborhood Services of the City of Muskegon.

     The CHDO shall maintain at least one-third of its governing board's membership for
     residents of low-income neighborhoods, other low-income community residents, or
     elected representative of low-income neighborhood organizations and provide a formal
     process for low-income, program beneficiaries to advise the organization in its decisions
     regarding the design, sitting, development, and management of affordable housing, as
     defined in 24 CFR 92.2.




                                            11
SECTION 6: DISBURSEMENT OF FUNDS

A.   All HOME funds will be expended in accordance with the attached Budget contained in
     Attachment B. Requests for budget revisions are subject to the review of the City. In no
     case shall reimbursement of specific line items exceed budget amounts without prior
     written City approval. In the event that budgeted amounts exceed actual costs, excess
     funds may be reclaimed by the City to be used for other eligible activities under the
     HOME Investment Partnerships Program.

B.   When the administrative requirements of this Agreement are met by the CHDO,
     payments will be made according to the following procedure:

     1.     Payments of HOME funds shall be made upon presentation of proper invoices
            together with paid receipts, time sheets, and copies of checks for costs reflected in
            requests for payment. Requests for payment should be itemized according to the
            budget in Attachment B.

     2.     The total amount of HOME funds from the City of Muskegon disbursed under
            this Agreement shall not exceed Seventy-Nine Thousand Nine Dollars
            ($79,900.00).

     3.     All payments under this Agreement shall be made according to the regular City of
            Muskegon, Michigan payment schedule. Payments are made on the second and
            fourth Fridays of each month. Payment requests must be received by the City no
            later than 5:00 P.M. on the Friday before the scheduled payment.

     4.     Payment requests shall be processed according to the date and time the request
            was received by the Department of Community and Neighborhood Services.

     5.     Should a finding of ineligible costs or insufficient documentation be made by the
            City during processing, the CHDO agrees to furnish additional information as
            may be requested or to re-evaluate or withdraw such request, and to allow
            additional time for processing of payment as required.

C.   Payment shall not be made unless all program reports are current.

D.   Payment shall not be made unless necessary documentation of insurance and bonding has
     been received by the City. Failure to submit such documentation within thirty (30) days
     of the date of the execution of this Agreement shall result in the immediate suspension of
     the Agreement between the City and the CHDO.

E.   The CHDO shall at all times maintain close communication with the City with respect to
     disbursements to insure all disbursements are eligible expenditures under the terms and
     conditions of this Agreement.

                                             12
F.   Upon termination of this Agreement, any unobligated funds shall be reprogrammed by
     the City of Muskegon for other HOME eligible activities.

G.   The City reserves the right, at any time and from time to time, to pay to the CHDO all or
     any part of the funds the City had authorized to be paid to the CHDO in accordance with
     Section 3 of this Agreement. The time and amount of such payment, in the absence of
     express resolution by the City Commission, shall be determined by the City Manager of
     the City of Muskegon. The CHDO agrees that the City's decision to pay or withhold all
     or any part of the funds the City may previously have authorized to be paid the CHDO is
     entirely and completely binding upon the CHDO and shall not subject the City to liability
     of any kind to the CHDO as a result thereof.

SECTION 7: PERMITS, LICENSES, CODES AND INSPECTIONS

A.   The CHDO shall comply with all applicable laws, ordinances, and codes of the local,
     state, and federal government. This shall include giving appropriate notice as required by
     the City and obtaining, at the CHDO's own expense, all permits required for the
     performance of the services covered by this Agreement.

B.   Any and all property improvements performed under this Agreement must be inspected
     by City staff. No payment for property improvement activities will be authorized prior to
     inspection approval by the City's Inspection Department and the Department of
     Community & Neighborhood Services.


SECTION 8: SUBCONTRACTS

A.   The CHDO shall not enter into any agreement, written or oral, with any subcontractor or
     permit any subcontractor to perform any work covered by this Agreement until the
     CHDO has requested and received written approval of such agreement from the City.

B.   The CHDO shall insure that all subcontracts let in the performance of this Agreement
     shall be awarded on a fair and open competition basis. Executed copies of all
     subcontracts shall be forwarded to the City along with documentation of the selection
     process.

C.   The CHDO shall include all of the provisions of this Agreement to be included in, and
     made a part of, any subcontract executed in the performance of this Agreement.

D.   The CHDO shall be as fully responsible to the City for the acts and omissions of its
     subcontractors, and of persons either directly or indirectly employed by the
     subcontractors, as the CHDO is for the acts and omissions of persons directly employed
     by the CHDO.


                                            13
E.     Nothing contained in this Agreement shall create any contractual relationship between
       the City and any subcontractor.

F.     The CHDO will monitor all subcontracted services on a regular basis to assure contract
       compliance. Results of monitoring efforts shall be summarized in the CHDO's monthly
       report to the City. The CHDO shall communicate any deficiencies in subcontractor
       activities in writing to the subcontractor and the City. Corrective action for any noted
       areas of subcontractor deficiency shall occur within thirty (30) days of the written notice
       unless a waiver is approved in writing by the City. Actions taken to correct subcontractor
       deficiencies must be documented in program files.

SECTION 9: CITIZEN PARTICIPATION REQUIREMENTS

         The CHDO shall encourage citizens, particularly those of low and moderate income
residing within its service area, to submit views and proposals regarding the planning,
implementation, and evaluation of the CHDO's program. The process by which the CHDO shall
initiate and implement neighborhood-wide participation be submitted to the City within 30 days
of the execution of this Agreement and shall be subject to monitoring by the City.

SECTION 10: GRIEVANCE PROCEDURE

A.     All complaints or grievances of project area residents or service recipients should be
       submitted in writing to the CHDO who will communicate in writing its response to the
       resident or service recipient within fifteen (15) days of receipt. The CHDO's response to
       the resident or service recipient should be copied to the Director of Community &
       Neighborhood Services and Code Compliance of the City of Muskegon.

B.     If a party desires to appeal the CHDO response, the resident or service recipient shall
       submit in writing an appeal to the Director of Neighborhood Services and Code
       Compliance of the City of Muskegon. The Director shall communicate in writing a
       response to the resident within thirty (30) days of appeal submission.

C.     Further appeal may be made to the City of Muskegon's Citizen District Council according
       to the appeals procedure of the City of Muskegon Department of Community and
       Neighborhood Services. If determined appropriate, the Citizen's District Council will
       refer the appeal to the U.S. Department of Housing and Urban Development for further
       review.

D.     All parties with grievances or complaints shall be informed by the CHDO of this
       grievance procedure.

SECTION 11: CIVIL RIGHTS PROVISIONS

A.     Nondiscrimination in the Provision of Services


                                               14
     The CHDO agrees that no person shall, on the grounds of race, religion, color, national
     origin, sex, age, handicapped condition, ancestry, family status or veterans status be
     excluded from participation in, be denied the benefit of, or be subjected to, discrimination
     in its program or any aspects of this Agreement. The CHDO shall comply with all
     existing Federal, State, and local laws, rules and regulations regarding equal opportunity
     and nondiscrimination, affirmative action procedures, fair housing, and laws, rules and
     regulations regarding the prescribed use of HOME funds. These laws, rules, and
     regulations include, but are not limited to:

     1.     Title VI of the Civil Rights Act of 1964, as amended,

     2.     Title VIII of the Civil Rights Act of 1968, as amended,

     3.     Section 109 of Title I of the Housing and Community Development Act of 1974,

     4.     Section 504 of the Rehabilitation Act of 1973,

     5.     The Americans with Disabilities Act of 1990,

     6.     The Age Discrimination Act of 1975,

     7.     Executive Order 11063, and Executive Order 11246 as amended by Executive
            Orders 11375 and 12086.



B.   Nondiscrimination in Employment

     The CHDO agrees to not discriminate against any employee or applicant for employment
     because of race, religion, color, sex, age, handicapped condition, national origin,
     ancestry, veteran’s status, or family status. The CHDO will take affirmative action to
     ensure that applicants are employed, and that employees are treated during employment,
     without regard to their race, religion, color, sex, age, handicapped condition, national
     origin, ancestry, veteran’s status, or family status. Such action shall include, but not be
     limited to, the following: Employment, upgrading, demotion, or transfer; recruitment or
     recruitment advertising; layoff or termination; rates of pay or other forms of
     compensation; and selection for training, including apprenticeship.

C.   Documentation

     The CHDO shall maintain sufficient program and fiscal records to document that, under
     all aspects of this Agreement, the CHDO has acted in a manner which is in full
     compliance with the provisions of this Section where such provisions are applicable to
     this project. Such records shall at all times remain open to inspection by the City, HUD,


                                             15
     or the U.S. Secretary of Labor for purposes of investigation to ascertain compliance with
     the provisions of this Section.

SECTION 12: AFFIRMATIVE ACTION AND EQUAL EMPLOYMENT PROVISIONS

A.   Affirmative Action Plan

     The CHDO shall, prior to receiving funds under this Agreement, have either an
     Affirmative Action Program that is currently certified by the City of Muskegon, or have
     executed a Letter of Agreement obligating said CHDO to complete a certified
     Affirmative Action Plan within the time specified by such Letter of Agreement.

B.   Contracting with Small and Minority Firms, Women's Business Enterprises and Labor
     Surplus Firms

     1.     It is national policy to award a fair share of contracts to small and minority
            business firms. Accordingly, affirmative steps must be taken by the CHDO to
            assure that small and minority businesses are utilized when possible as sources of
            supplies, equipment, construction and services. Affirmative steps shall include,
            but not be limited to, the following:

            a.     Including qualified small and minority businesses on solicitation lists.

            b.     Assuring that small and minority businesses are solicited whenever they
                   are potential sources.

            c.     When economically feasible, dividing total requirements into smaller tasks
                   or quantities so as to permit maximum small and minority business
                   participation.

            d.     Where the requirement permits, establishing delivery schedules which will
                   encourage participation by small and minority businesses.

            e.     If any subcontractors are to be let, requiring the prime contractor to take
                   the affirmative steps in 1a through 1d above.

     2.     The CHDO shall take similar, appropriate affirmative action in support of
            women's business enterprises.

     3.     CHDO is encouraged to procure goods and services from labor surplus areas.




                                            16
C.    EEO/AA Statement

      The CHDO will, in all solicitations or advertisements for employees placed by or on
      behalf of the CHDO, state that it is an Equal Opportunity or Affirmative Action
      employer.

D. Section 3 Provision

      1.     Compliance with the provisions of Section 3 of the Housing and Urban
             Development Act of 1968, as amended, the regulations set forth in 24 CFR Part
             135, and all applicable rules and orders issued hereunder prior to the execution of
             this Agreement, shall be a condition of the federal financial assistance provided
             under this Agreement. These regulations, rules, and orders shall be binding upon
             the City, CHDO, and any subcontractors under this Agreement.

      2.     Failure to fulfill the requirements of these provisions shall subject the City, the
             CHDO, and any subcontractors, their successors and assigns to those sanctions
             specified by the U.S. Department of Housing and Urban Development.

      3.     The CHDO certifies and agrees that no contractual or other disability exists which
             would prevent compliance with these requirements.

      4.     The CHDO further agrees to include the following language in all subcontracts
             executed under this Agreement:

                     "The work to be performed under this contract is a project assisted under a
             program providing direct federal financial assistance from HUD and is subject to
             the requirements of Section 3 of the Housing and Urban Development Act of
             1968, as amended, 12 U.S.C. 1701. Section 3 requires that to the greatest extent
             feasible, opportunities for training and employment be given to lower income
             residents of the project area and contracts for work in connection with the project
             be awarded to business concerns which are located in, or owned in substantial
             part, by persons residing in the areas of the project."

E.    Notification

      1.     The CHDO agrees to post in conspicuous places, available to employees, and
             applicants for employment or training, notices to be provided by the City setting
             forth the provisions of this Section.

      2.     The CHDO will send to each labor union or representation of workers with which
             it has a collective bargaining agreement or other contract or understanding, a
             notice to be provided by the City advising the said labor union or workers'
             representatives of the CHDO's commitment under this Section and shall post


                                             17
              copies of the notice in conspicuous places available to employees and applicants
              for employment.

F.     Subcontract Provisions

       The CHDO will include the provisions of Section 11, Civil Rights Provisions, and
       Section 12, Affirmative Action and Equal Opportunity Provisions, in every subcontract
       or purchase order under this Agreement, either specifically or by reference so that such
       provisions will be binding upon each subcontractor or vendor.

SECTION 13: SOLE SOURCE OF FUNDS

        The sole source of funding from the City for payment of services performed under this
Agreement is the HOME Grant provided to the City by HUD. The CHDO agrees that in the
event that the HOME Grant is reduced or withheld by HUD, the City shall not be liable for
payment of contracted services from any City fund other than the HOME Investment Partnership
entitlement, in which case the CHDO further agrees that the maximum sum payable under this
Agreement may be reduced by the City.

       The CHDO expressly understands and agrees that all rights, demands and claims to
compensation arising under this Agreement shall be conditioned and contingent upon receipt of
such funds by the City of Muskegon. In the event that such funds are not received by the City
for any reason, the CHDO expressly agrees and covenants to hold and save harmless the City or
its agents or employees from any costs, expenses, liabilities, or obligations arising from the
claims of any person or persons for any cost they have incurred or claim to have incurred by
reason of subcontract or sub-agreement with the CHDO.

SECTION 14: CITY OBLIGATIONS AND LIMITATIONS

         It is expressly understood by the CHDO that the City's total commitment to activities
covered in this Agreement is not to exceed Seventy-Nine Thousand Nine Hundred dollars
($79,900.00), and that the City has no obligation to complete the activities proposed in
Attachment A or to provide any additional funding or services from any source for said
activities.

SECTION 15: INDEMNITY AND HOLD HARMLESS PROVISIONS

A.     The City and CHDO acknowledge that the CHDO is an independent contractor in all of
       the CHDO's activities and that in the course of such activities, at no time do the CHDO,
       its officers, directors (trustees), members, employees, volunteers, or other persons acting
       on behalf of CHDO become the agents of the City for any purpose, and at no time shall
       the City become liable in any manner whatever for any of the actions or activities of the
       CHDO, its officers, directors (trustees), members, employees, volunteers, or other
       persons acting on behalf of the CHDO.


                                               18
     In the event any person shall undertake to hold the City liable for any conduct or
     activities of the CHDO, its officers, directors (trustees), members, employees, volunteers,
     or other person acting on behalf of the CHDO, the CHDO expressly agrees to hold the
     City harmless of and from any such liability.

B.   Nothing contained in this Agreement is intended to, or shall be construed in any manner,
     as creating or establishing the relationship of employer/employee between the City and
     the CHDO. The City shall be exempt from payment of all employee benefits including
     Unemployment Compensation, FICA, retirement, life and/or medical insurance and
     Worker's Compensation Insurance on behalf of the CHDO. If any portion of the CHDO's
     HOME allocation under this Agreement is used to pay employee benefit costs, the CHDO
     is still wholly responsible for payment of these costs and settlement of any claims
     resulting from its actions.

SECTION 16: CONTRACT DURATION AND TERMINATION PROVISION

A.   This Agreement shall become effective June 13, 2017. This Agreement shall be in effect
     for twelve (12) consecutive months from the effective date unless terminated according to
     the provisions of this Section.

B.   The Scope of Services, as stated in Section 4 of this Agreement must be completed within
     twelve (12) consecutive months of the effective date of this Agreement unless an
     extension is approved in writing by the City. The CHDO may request an extension of the
     grant period in writing from the Director of Community and Neighborhood Services.

C.   This Agreement may be terminated by the City for failure of the CHDO to comply with
     the terms of the Agreement upon fifteen (15) days written notice to the CHDO. This
     Agreement shall specify that, in accordance with 24 CFR 85.43, suspension or
     termination may occur if the CHDO materially fails to comply with any term of this
     award.

D.   If the CHDO shall fail, refuse or neglect to comply with the provisions of Section 11,
     Civil Rights Provisions, Section 12, Affirmative Action and Equal Employment
     Provisions or Section 13, Fair Housing/Affirmative Marketing, such failure shall be
     deemed a total breach of the contract and such contract may be terminated, canceled or
     suspended, in whole or in part, and the CHDO may be declared ineligible for any further
     City contracts for a period of up to one year. In addition, the CHDO may be declared
     ineligible for further U.S. government contracts.

E.   This Agreement may be terminated for convenience by either party, in accordance with
     24 CFR 85.44, at any time upon thirty (30) days written notice to the other party.

F.   The CHDO's obligation to the City shall not end until all close-out requirements are
     completed. Close-out activities shall include, but not be limited to, making final
     payments, disposing of program assets, and determining the custodianship of records.

                                             19
G.   If a contract is terminated, canceled or suspended according to the provisions of this
     Section, the CHDO shall have no claims for damages against the City on account of
     cancellation or suspension or declaration of ineligibility.

SECTION 17: REVERSION OF ASSETS

A.   The CHDO certifies that immediately upon the earliest of: 1) the event of default under
     the terms and conditions of this Contract; 2) dissolution of the CHDO; 3) the termination
     of any program described herein; or 4) the expiration or termination of this Agreement, if
     said Agreement is not renewed or extended, any HOME Grant funds remaining in the
     CHDO Home Account, repayments of all loans, proceeds from the sale of property and
     title to property that has been purchased and/or repaired in whole or in part with City
     funds, accounts receivable, and/or assets attributable to the use of the HOME Grant
     funds, shall revert to the City.

B.   The CHDO shall also ensure that in the event that non-expendable personal property
     purchased under this Agreement is sold during the term of this Agreement or for one year
     after contract expiration, any income from the sale shall be returned to the City within ten
     (10) days of sale. In the event that the balance of funds held in the CHDO's Home
     Account is not sufficient to repay HOME Grant funds received by CHDO, the CHDO
     must provide a written explanation to the City at least twenty (20) working days prior to
     closing of a transaction.

SECTION 18: MODIFICATION AND RENEGOTIATION

A.   This Agreement will be subject to modification and/or renegotiation to conform with any
     changes caused by amendments or revisions in Federal laws and regulations. This
     Agreement may also be modified to reflect changes in funding amounts or other grant
     conditions related to the use of U.S. Department of Housing and Urban Development
     funds.

B.   The City or the CHDO may amend this Agreement at any time provided that such
     amendments make specific reference to this Agreement, and are executed in writing,
     signed by a duly authorized representative of both organizations, and approved by the
     City Commission of the City of Muskegon and the CHDO's Board of Directors. Such
     amendments shall not invalidate this Agreement, nor relieve or release the City or the
     CHDO from its obligations under this Agreement.

SECTION 19: CONFLICT OF INTEREST

A.   Compliance

     The CHDO agrees to abide by the provisions of 24 CFR 92.356 with respect to conflicts
     of interest, and covenants that it presently has no financial interest and shall not acquire

                                             20
     any financial interest, direct or indirect, which would conflict in any manner or degree
     with the performance of services required under this Agreement. The CHDO further
     covenants that in the performance of this Agreement no person having such a financial
     interest shall be employed or retained by the CHDO hereunder.

     No person(s) who exercise or have exercised any functions or responsibilities with
     respect to activities assisted with HOME funds or who are in a position to participate in a
     decision-making process or gain inside information with regard to these activities, may
     obtain a financial interest or benefit from a HOME-assisted activity, or have an interest in
     any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder,
     either for themselves or those with whom they have family or business ties, during their
     tenure or for one year thereafter.

B.   Persons Covered by this Policy

     Persons covered by these conflict of interest provisions include:

     1.     All employees of the CHDO and their families, including spouses, minor children
            and other relatives who are residents of their household.

     2.     All members of the CHDO's Board of Directors, and their families, including
            spouses, minor children and other relatives who are residents of their households.
     3.     All agents, officers, consultants, elected or appointed officials, or any persons
            who exercise any functions or responsibilities with respect to the activities
            assisted under this Agreement or who are in a position to participate in a decision-
            making process affecting the activities covered under this Agreement.

C.   Conflicts Prohibited

     1.     Except for approved eligible administrative or personnel costs, no persons
            covered under this Section may gain a financial interest or benefit from the
            activities covered under this Agreement, or have an interest in or share in the
            proceeds of any subcontract or subagreement thereunder.

     2.     No person covered by this Section shall participate in selection of a vendor,
            contractor, or firm to be compensated under this Agreement if he/she, members of
            his/her immediate family, his/her partners or business affiliates, or an organization
            which employs or is about to employ any of the above have a financial or other
            interest in the selected firm, vendor, or contractor.

     3.     Persons covered by this Section shall neither solicit nor accept gratuities, favors
            or anything of monetary value from actual or potential contractors, firms, or
            vendors. The only exceptions shall be:



                                             21
           a.     Acceptance of food or refreshment of nominal value on infrequent
                  occasions in the ordinary course of a luncheon or dinner meeting or other
                  meeting, or in the normal course of such covered person's assigned duties
                  when such covered person is properly in attendance;

          b.      Acceptance of a loan from a bank or other financial institution on
                  customary terms to finance usual activities of such covered person;

           c.     Acceptance of unsolicited advertising or promotional materials, such as
                  pens, pencils, calendars, or other items of nominal value.

     4.    No owner, developer or sponsor of a project assisted with HOME funds (or
           officer, employee, agent or consultant of the owner, developer or sponsor)
           whether private, for profit or non-profit (including a community housing
           development organization (CHDO) when acting as an owner, developer or
           sponsor) may occupy a HOME-assisted affordable housing unit in a project. This
           provision does not apply to an owner-occupant of single-family housing or to an
           employee or agent of the owner or developer of a rental housing project who
           occupies a HOME assisted unit as the project manager or maintenance worker.

D.   Exceptions

     1.    In some cases an exception to the prohibition described in paragraph C, above,
           may serve to further the purposes of the HOME Program and the effective and
           efficient administration of this Agreement. A waiver of the conflict of interest
           provisions may be granted only by the U.S. Department of Housing and Urban
           Development. The CHDO shall submit a written request for such a waiver to the
           City of Muskegon's Director of Community and Neighborhood Services. This
           written request shall, in turn, be forwarded to HUD for review.

     2.    Requests for waivers shall include the following information:

           a.     A disclosure of the nature of the conflict, accompanied by an assurance
                  that there has been public disclosure of the conflict and a description of
                  how the public disclosure was made;

           b.     A description of factors that warrant an exception from the Conflict of
                  Interest Policy. Such factors should include:

                  (1)    Whether the person affected is a member of a group or class of
                         low- or moderate-income persons intended to be the beneficiaries
                         of the assisted activity and the exception will permit such person to
                         receive generally the same interests or benefits as are being made
                         available or provided to the group or class;


                                           22
                       (2)    Whether the affected person has withdrawn from his or her
                              functions or responsibilities, or the decision-making process with
                              respect to the specific assisted activity in question;

                       (3)    Whether the interest or benefit was present before the affected
                              person was in a position to participate in the decision-making
                              process or gain inside information with regard to activities, or to
                              obtain a personal or financial interest or benefit from the activity,
                              or to exercise any function or responsibility in regard to the
                              activity in question;

                       (4)    Whether undue hardship will result either to the recipient or the person
                              affected when weighed against the public interest served by avoiding the
                              prohibited conflict; and

                       (5)    Whether the exception would provide a significant cost benefit or an
                              essential degree of expertise to the program or project which would
                              otherwise not be available; and

                       (6)    Any other relevant considerations.

SECTION 20: COPYRIGHTS AND PATENTS

        If this Agreement results in a book or other copyrightable materials or patentable materials, the
CHDO may copyright or patent such, but the City and the United States Government reserve a royalty-
free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use such materials and to
authorize others to do so.

SECTION 21: NOTIFICATION

        All notices, requests, demands or other communications hereunder shall be in writing and shall be
deemed to have been served as of the postmark appearing upon the envelope if sent by the United States
mail, at the address listed below, or upon the actual date of delivery if hand delivered to the address listed
below. Either party may change the below listed address at which one receives written notices by so
notifying the other party hereto in writing.

       ADDRESS OF CITY                                               ADDRESS OF CHDO:
       City of Muskegon                                              Muskegon County Habitat for
       Community & Neighborhood Services                             Humanity
       P.O. Box 536 (if mailed)                                      280 Ottawa St.
       Muskegon, MI 49443                                            Muskegon MI 49442




                                                23
SECTION 22: OTHER FEDERAL, STATE, AND LOCALLY MANDATED PROVISIONS

A.     INTEREST OF CERTAIN FEDERAL AND OTHER OFFICIALS

       1.     No member of or delegate to the Congress of the United States and Resident
              Commissioners shall be admitted to any share or part of this Agreement or to any benefit to
              arise from the same: Provided that the foregoing provision of this section shall not be
              construed to extend to this contract if made with a corporation for its general benefit.

       2.     No officer, employee, or member of the governing body of the City who exercises
              any function or responsibilities in connection with the carrying out of the project
              to which this contract pertains shall have any private interest, direct or indirect, in
              this contract.

B.     DRUG-FREE WORK PLACE PROVISION

       The CHDO certifies to provide for a drug-free work place in conformance with the
Drug-Free Workplace Act of 1988. This includes the administration of a policy designed to
ensure that all program work areas are free from the illegal use, possession or distribution of
drugs or alcohol by its employees, volunteers, or program beneficiaries.

C.     ANTI-LOBBYING PROVISION

       The CHDO certifies that, to the best of its knowledge and belief,

       1.     No Federal appropriated funds shall be used by the CHDO for publicity or
              propaganda purposes designed to support or defeat legislation pending before a
              Federal, State, or local government.

       2.     No Federal appropriated funds have been paid or will be paid, by or on behalf of
              the City, to any person for influencing or attempting to influence an officer or
              employee of any agency, a Member of Congress, an officer or employee of
              Congress, or an employee of a Member of Congress in connection with the
              awarding of any Federal contract, the making of any Federal grant, the making of
              any Federal loan, the entering into of any cooperative agreement, and the
              extension, continuation, renewal amendment, or modification of any Federal
              contract, grant, loan, or cooperative agreement.

       3.     If any funds other than Federal appropriated funds will be paid to any person for
              influencing or attempting to influence an officer or employee of any agency, a
              Member of Congress, an officer or employee of Congress, or an employee of a
              Member of Congress in connection with this Federal contract, grant, loan, or
              cooperative agreement, the CHDO must notify the City so the City can complete
              and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", as
              appropriate.

                                                24
       4.      The CHDO shall require that the language of this certification be included in the
               award of documents of all subawards at all tiers (including subcontracts,
               subgrants, and contracts under grants, loans, and cooperative agreements) and that
               all subcontractors shall certify and disclose accordingly.

D.     POLITICAL ACTIVITY PROVISION (HATCH ACT)

       The CHDO agrees that no funds provided, nor personnel employed under this contract,
       shall be in any way or to any extent engaged in the conduct of political activities in
       violation of Chapter 15 of Title V United States Code. None of the funds, materials,
       property or services provided directly or indirectly under this Agreement shall be used for
       any partisan political activity, lobbying, or to further the election or defeat of any
       candidate for public office.

E.     PROHIBITION AGAINST SECTARIAN OR RELIGIOUS ACTIVITY

       The CHDO agrees that funds provided under this Agreement will not be used for
       sectarian or religious activities, to promote sectarian or religious interests, or for the
       benefit of a sectarian or religious organization in accordance with the federal regulations
       specified in 24 CFR 92.257.

SECTION 23: PARTIAL INVALIDITY

        Should any section or any part of any section of this Agreement be rendered void, invalid
or unenforceable by any court of law, for any reason, such a determination shall not render void,
invalid, or enforceable any other section or any part of any section in this Agreement.

SECTION 24: NO THIRD PARTY RIGHTS

        Nothing in this agreement shall be construed to constitute or create rights in any person,
firm or other entity against the parties hereto (as third-party beneficiaries or otherwise) or to
create obligations or responsibilities of the City or the CHDO to such third parties, or to permit
anyone other than the City and the CHDO to rely upon the agreements herein contained. The
CHDO shall not assign or transfer any interest in this Agreement without the prior written
consent of the City of Muskegon.

SECTION 24: ALL TERMS AND CONDITIONS ARE INCLUDED IN CONTRACT

        This Agreement contains all the terms and conditions agreed upon by the parties. All
items incorporated by reference, including Attachments A, B, C, D, E, F, G, and referenced
federal regulations, are made wholly a part of this Agreement as if incorporated herein. No other
understandings, oral or otherwise, regarding the subject matter of this Agreement shall be
deemed to exist or to bind any of the parties hereto.


                                               25
       IN WITNESS WHEREOF, the parties hereto and hereinafter set their hands and seals on
the day and year hereinabove written.


CITY OF MUSKEGON, MICHIGAN
BY:                                             BY:


                                                ___________________________________
Mayor                                           Name
                                                President




ATTEST:                                         WITNESS:

                                                ____________________________________
City Clerk                                      Name
                                                Secretary




                                           26
                                   ATTACHMENT A
                             PROPOSAL FOR HOME FUNDING



Habitat’s Affordable Homeownership program will contribute two (2) newly constructed units to
the City’s Housing stock. Furthermore, the new units will add value to surrounding properties in
the Nims Neighborhood while adding tax revenue for the City. In addition, home ownership is
proven to strengthen neighborhoods.
                                 ATTACHMENT B
                                PROJECT BUDGET


HOME Share               $79,900

Other* Funds             $149,165

                   Total $229,065


*MSHDA Down Payment Assistance (via HFHM, HFHI In-Kind Donations, Mortgage
Receivables, Community Donation Funds, and MCHFH Operating Funds.
                         ATTACHMENT C
                  CITY OF MUSKEGON, MICHIGAN
            HOME INVESTMENT PARTNERSHIPS PROGRAM

CERTIFICATION OF LEGAL AUTHORITY TO EXECUTE THIS AGREEMENT


The CHDO, hereby assures and certifies that:

(a)    It possesses legal authority to execute the attached agreement, and provide the
       proposed program services agreed to.

(b)    Its governing body has duly agreed to and officially acted by a resolution, motion
       or similar action to authorize the execution of this Agreement, including all
       understandings and assurances contained herein. The governing body further
       authorizes the person identified as the official representative of the CHDO to act
       in connection with the agreement and to provide such additional service
       information as may be required.




                                    ______________________________________
                                    Name and Title
                                  ATTACHMENT D
                           CITY OF MUSKEGON, MICHIGAN
                     HOME INVESTMENT PARTNERSHIPS PROGRAM

  CERTIFICATION TO COMPLY WITH ALL APPLICABLE FEDERAL REGULATIONS


The CHDO hereby assures and certifies to comply with all applicable provisions current and
future laws and regulations related to the administration of the Community Development Block
Grant program. These laws and regulations include, but are not limited to the following:

       Title I of The Housing and Community Development Act of 1974, as amended
       Title 24 Code of Federal Regulations, Part 85
       Title 24 Code of Federal Regulations, Part 92
       Title 24 Code of Federal Regulations, Part 570
       Office of Management and Budget Circular A-110, A-122 and A-133
       Title VI of the Civil Rights Act of 1964, as amended
       Title VIII of the Civil Rights Act of 1968, as amended
       Section 504 of the Rehabilitation Act of 1973
       The Age Discrimination Act of 1975
       The Americans with Disabilities Act of 1990
       Executive Orders 11063, 11246, 11375, and 12086
       Section 3 of the Housing and Urban Development Act of 1968, as amended

The CHDO further assures and certifies that it understands its right to request copies of any and
all laws and regulations applicable to this Agreement. Copies of such laws and regulations may
be requested in writing from the City of Muskegon Department of Community and
Neighborhood Services.

The CHDO further understands that the City shall hold it responsible for knowledge and proper
application of these laws and regulations. If, under any circumstances, the CHDO requires
clarification of these laws or regulations, it shall be the CHDO's responsibility to contact the City
or the U.S. Department of Housing and Urban Development for such clarification.

The CHDO acknowledges that it cannot be absolved of its responsibilities under these laws or
regulations by claiming lack of access, knowledge, or understanding thereof.



                                                            _________________________
                                      Name and Title
                            ATTACHMENT E
             AMENDMENT PERTAINING TO THE USE OF HOME FUNDS
                     BY SECTARIAN ORGANIZATIONS

Pursuant to Title I of the Housing and Community Development Act of 1974, as amended, the
CHDO represents that it is, or may be deemed to be, a religious of denominational institution or
organization or an organization operated for religious purposes which is supervised or controlled
by or in connection with a religious or denominational institution or organization. As such, the
CHDO agrees that, in connection with the services provided under this Agreement:

1.     It will not discriminate against any employee or applicant for employment on the basis of
       religion and will not limit employment or give preference in employment to persons on
       the basis of religion;

2.     It will not discriminate against any person applying for such public services on the basis
       of religion and will not limit such services or give preference to persons on the basis of
       religion;

3.     It will provide no religious instruction or counseling, conduct no religious worship or
       services, engage in no religious proselytizing, and exert no other religious influence in
       the provision of such public services;

4.     The portion of a facility used to provide public services assisted in whole or in part under
       this Agreement shall contain no sectarian or religious symbols or decorations; and

5.     The funds received under this Agreement shall not be used to construct, rehabilitate, or
       restore any facility which is owned by the CHDO and in which the public services are to
       be provided. However, if authorized under the terms of this Agreement, minor property
       repairs may be made to such facility if such repairs (a) are directly related to the public
       services outlined in this Agreement, (b) are located in a structure used exclusively for
       non-religious or non-sectarian purposes, and (c) constitute in dollar terms only a minor
       portion of the HOME expenditure for public services authorized under this Agreement.

The CHDO hereby certifies to comply with the provisions of this Attachment. The CHDO
understands that noncompliance with these provisions shall constitute a breech of this
Agreement, and the City has the right to terminate the Agreement and enforce appropriate
sanctions as allowed by local, state, and federal law.



                                                     _________________________________
                                                     Name, Title
Commission Meeting Date: June 13, 2017


Date:      June 6, 2017
To:        Honorable Mayor and City Commission
From:      Community and Neighborhood Services Department
RE:        Approval of the Fair Housing Agreement with Muskegon Heights and
           Norton Shores
__________________________________________________________________

SUMMARY OF REQUEST: The cities of Muskegon, Muskegon Heights, Norton
Shores are entering into an agreement with the Fair Housing Center of West
Michigan to conduct fair housing testing in the County of Muskegon per the
recommendation of the 2009 Analysis of Impediments Report. This agreement
will be for 2017-2019.

FINANCIAL IMPACT: Based on population, the City of Muskegon will pay
$17,680 of the annual cost.

STAFF RECOMMENDATION:           To approve the attached Agreement and
authorize the Mayor to sign.
                           FAIR HOUSING SERVICES PROPOSAL 2017-2019
                                 Fair Housing Center of West Michigan
The Fair Housing Center of West Michigan (hereinafter the “FHCWM”), a Michigan non-profit
corporation with its principal offices located at 20 Hall Street SE, Grand Rapids, MI 49507, hereby
proposes to provide fair housing services to the Cities of Muskegon, Muskegon Heights and Norton
Shores (hereinafter the “Cities”).

I.      PURPOSE
The purpose of these services is to decrease impediments to housing choice and to promote open,
diverse communities based on the provisions of the federal Fair Housing Act and relevant state and local
fair housing laws.

II.    TERM
The FHCWM proposes to provide the services during the two-year period that begins on July 1, 2017
and ends on June 30, 2019, as outlined below.

III.       AGREEMENT ACTIVITIES AND DEFINITIONS
       A. Education and Outreach. The FHCWM will conduct an ongoing community outreach program
           throughout the Cities to educate housing consumers, professionals and the general public
           concerning fair housing. The FHCWM will complete a minimum of 15 hours of education and
           outreach activities per year throughout the Cities.
          i. As part of a comprehensive, regional program, the FHCWM will disseminate fair housing
               information to housing consumers and housing/human service agencies in order to educate
               about housing rights and to increase awareness and reporting of discriminatory practices.
          ii. The FHCWM will also provide fair housing information to sales, rental, and lending
               professionals in order to encourage their voluntary compliance with federal, state and local
               fair housing laws.
         iii. The FHCWM will disseminate materials on a community-wide basis in order to promote
               understanding of fair housing and the benefits thereof, and to increase general public
               awareness regarding equal access to housing opportunity. Such services will include the
               provision of formal fair housing training upon request.
         iv. The FHCWM will also provide technical assistance to the staff of the Cities in response to
               any and all questions regarding unlawful housing discrimination or fair housing practices.

       B. Complaint Investigation.
           i. The FHCWM will receive, review, investigate and process all real and potential complaints
              of unlawful housing discrimination involving people and/or properties located within the
              Cities which the FHCWM may receive from residents of any of the Cities, a person wishing
              to reside in any of the Cities, or any other source during the Term defined in this proposal.
          ii. The FHCWM may independently initiate and implement systemic investigations, market
              reviews, case development, management and conciliation in order to detect and remove
              barriers to equal housing opportunity.
         iii. In the absence of, or in addition to, an individual complainant, the FHCWM will initiate
              enforcement action in those cases where evidence of potential discrimination exists, as
              deemed necessary and appropriate at the sole discretion of the FHCWM.

       C. Housing Tests. Testing is an investigative tool used to gather evidence. Testing is one way to
          determine whether all housing consumers are being afforded the same information, service,
          treatment, and access without regard to the characteristics protected by fair housing laws.
           i. The FHCWM will conduct fair housing testing throughout the Term for the purpose of
              obtaining credible and objective information about housing practices. This may include
Page 1 of 4
                         FAIR HOUSING SERVICES PROPOSAL 2017-2019
                               Fair Housing Center of West Michigan
            testing in the areas of sales, rental, advertising, insurance, appraisal and/or financing of
            housing, as deemed necessary and appropriate at the sole discretion of the FHCWM.
            1. In line with the recommendations in the Cities’ “2015 Analysis of Impediments to Fair
                Housing Choice”, the FHCWM will place an emphasis on testing the issue of racial
                steering, as deemed appropriate at the sole discretion of the FHCWM.
            2. The FHCWM will conduct a minimum of 10 fair housing tests (at least two (2) per City)
                per year involving people and/or property within any of the Cities.
        ii. The fair housing tests will be based upon bona fide complaints, conducted on a survey basis,
            or completed as part of a systemic investigation, with a focus on complaint-based testing.
       iii. All housing testing will be conducted by trained testers according to generally-accepted
            housing testing methodology.
       iv. In the absence of, or in addition to, an individual complainant, the FHCWM will initiate
            enforcement action in those cases where evidence of potential discrimination exists, as
            deemed necessary and appropriate at the sole discretion of the FHCWM.

    D. HMDA Data Analysis. In line with the recommendation in the Cities’ “2009 Analysis of
       Impediments to Fair Housing Choice”, the FHCWM proposes to conduct a review of HMDA
       data for the Cities that will serve to identify and analyze disparities based on race, ethnicity, and
       poverty.
        i. This will be a systemic, full-scale analysis of HMDA data.
       ii. The FHCWM will begin the analysis on or after July 1, 2018, and the review will be
           completed by June 30, 2019.
      iii. The FHCWM will issue the Cities a report by July 31, 2019 detailing its findings and
           analysis, with relevant recommendations.

IV.    REPORTING
The FHCWM will provide each municipality with program performance reports which contain
information regarding the activities carried out and the results of those activities. Reports will be
submitted bi-annually, within 15 days after the conclusion of each six-month reporting period. The
FHCWM will forward the reports to each of the municipalities by January 15, 2018, July 15, 2018,
January 15, 2019 and July 15, 2019. The complaint and testing activities will be reported by
municipality.

IV.     COMPENSATION
For the performance of the activities under this Agreement, the Cities hereby agree to pay the FHCWM
the total amount of $34,000.00 (thirty-four thousand dollars) throughout the two year Term of the
contract. The total amounts are subject to change if funding sources substantially diminish from HUD
and/or other funding sources arise to substantially cover the Muskegon County area. However, such
modifications must be proposed at least 30 days prior to their effective date, mutually agreed upon by all
parties, and incorporated into written amendments to this contract. Under no circumstances will
compensation be reduced for work or services provided pursuant to this Contract that have been performed in a
timely and satisfactory manner.

                                Agreement Activities Timelines and Costs
 Activities                          Timeframe                                  Amount
A, B and C      Year 1: July 1, 2017 – June 30, 2018                 $12,000.00
A, B and C      Year 2: July 1, 2018 – June 30, 2019                 $12,000.00
D               Year 2: July 1, 2018 – June 30, 2019                 $10,000.00
                                                           TOTAL $34,000.00
Page 2 of 4
                                                          FAIR HOUSING SERVICES PROPOSAL 2017-2019
                                                                Fair Housing Center of West Michigan
The municipalities share of the total is based upon the following agreed upon percentages of the total:
                                                           Share of
         Municipality                 Percentage                          Year 1 Total Year 2 Total
                                                       Contract Total
City of Muskegon                   53%                       $18,020.00      $6,360.00      $11,660.00
City of Muskegon Heights           14%                        $4,760.00      $1,680.00        $3,080.00
City of Norton Shores              33%                       $11,220.00      $3,960.00        $7,260.00
TOTAL                              100%                      $34,000.00     $12,000.00      $22,000.00

The FHCWM will submit invoices to each of the municipalities with each of its four (4) bi-annual
reports reflecting the amount due for services rendered during each six-month reporting period. The
schedule of payments is as follows:
                                            Agreement
Reporting
                     Municipality            Activities              Timeframe                 Amount
  Period
                                            Rendered
                             Due Jan. 15, 2018




                                                 City of Muskegon           A, B and C      July 1, 2017 - December 31, 2017   $3,180.00
                                 Report 1
July 1, 2017-June 30, 2018




                                                 City of Muskegon Heights   A, B and C      July 1, 2017 - December 31, 2017    $840.00

                                                 City of Norton Shores      A, B and C      July 1, 2017 - December 31, 2017   $1,980.00
          Year 1




                                                 City of Muskegon           A, B and C      January 1, 2018 - June 30, 2018    $3,180.00
                             Due Jul. 15, 2018
                                 Report 2




                                                 City of Muskegon Heights   A, B and C      January 1, 2018 - June 30, 2018     $840.00

                                                 City of Norton Shores      A, B and C      January 1, 2018 - June 30, 2018    $1,980.00

                                                 City of Muskegon           A, B, C and D   July 1, 2018 - December 31, 2018   $5,830.00
                             Due Jan. 15, 2019
                                 Report 3
July 1, 2018-June 30, 2019




                                                 City of Muskegon Heights   A, B, C and D   July 1, 2018 - December 31, 2018   $1,540.00

                                                 City of Norton Shores      A, B, C and D   July 1, 2018 - December 31, 2018   $3,630.00
          Year 2




                                                 City of Muskegon           A, B, C and D   January 1, 2019 - June 30, 2019    $5,830.00
                             Due Jul. 15, 2019
                                 Report 4




                                                 City of Muskegon Heights   A, B, C and D   January 1, 2019 - June 30, 2019    $1,540.00

                                                 City of Norton Shores      A, B, C and D   January 1, 2019 - June 30, 2019    $3,630.00




Page 3 of 4
                        FAIR HOUSING SERVICES PROPOSAL 2017-2019
                              Fair Housing Center of West Michigan



XII. CERTIFICATION OF AUTHORITY TO SIGN AGREEMENT

The persons signing this Agreement on behalf of the Cities and FHCWM hereto certify by said
signatures that they are duly authorized to sign this Agreement.

XIII.    APPROVAL AND SIGNATURES

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.


CITY OF MUSKEGON

By:                                                        Date:
        Stephen J. Gawron, Mayor



CITY OF MUSKEGON HEIGHTS

By:                                                        Date:
        Kimberley Sims, Mayor



CITY OF NORTON SHORES

By:                                                        Date:
        Gary Nelund, Mayor


FAIR HOUSING CENTER OF WEST MICHIGAN

By:                                                        Date:
        Nancy Haynes, Executive Director




Page 4 of 4
          Commission Meeting Date: June 13, 2017

Date:      June 5, 2017
To:        Honorable Mayor & City Commission
From:      Planning & Economic Development Department
RE:        CDBG Program Administration Agreement- City of
           Muskegon/City of Norton Shores


SUMMARY OF REQUEST: The City of Muskegon has contracted with
the City of Norton Shores to administer their Community Development
Block Grant (CDBG) program since 2006. The current Agreement
concludes on June 30, 2017. The new Agreement extends for two
years (through June 30, 2019).
FINANCIAL IMPACT: The City of Norton Shores will pay the maximum
allowable CDBG costs per program year to the City of Muskegon, minus
$1,000 to administer their CDBG program.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the attached Agreement and
authorize the Mayor and City Clerk to sign.
                              CDBG Program Administration Agreement
                                            Between the
                                       City of Norton Shores
                                                 And
                                         City of Muskegon


An agreement made and entered into this __________ day of __________, 2017, by and between the
City of Muskegon; a Michigan municipal corporation (“Muskegon”), and the City of Norton Shores, a
Michigan municipal corporation (“Norton Shores”), with reference to the following facts;

                                             Background

       Norton Shores desires that Muskegon assume responsibilities for the administration of the
Norton Shores’ Community Development and Block Grant (“CDBG”) Program.

       Therefore, the parties agree as follows:

       1. Administration of CDBG Program. Muskegon agrees to assume responsibility for the
          preparation and submission of the following CDBG documents on behalf of Norton Shores:
             a. Federal Application 424, narratives, project tables, certifications, Environmental
                 Summary, Combined Notice of no Significant Findings and Intent to Release Funds.
             b. Consolidated Annual Performance and Evaluation Report, publish hearing notice
                 narratives, reports including performance measures criteria (using CPMP format).
             c. Semi-Annual Labor Standard Enforcement Report (form 4710).
             d. Contract and Subcontract Activity Report (form 2516).
             e. CDBG liens for projects, in accordance with HUD guidelines and regulations, as well
                 as any other applicable Norton Shores requirements.
             f. Preparation of quarterly reports to comply with CAPER, maintaining sub-recipient
                 contract format for the City of Norton Shores’ contract with the American Red
                 Cross.

        Norton Shores shall provide Muskegon with a copy of all forms previously used by Norton
Shores, and Muskegon shall provide a copy of the above reports to Norton Shores upon completion.

       2. Terms of CDBG Fund Payments. Muskegon shall submit payment request for release of
          CDBG funds to Norton Shores’ Finance Department, and Norton Shores shall remit payment
          within 10 days of a payment request by Muskegon.
       3. Administration Fee. Norton Shores shall pay Muskegon the maximum CDBG allowable costs
          but not less than $22,000 per program year for administration of CDBG program. Payment
          shall be made by way of quarterly payments beginning on July 1, 2017.
       4. Terms of the Contract. The parties agree that this contract shall be effective July 1, 2017
          through June 30, 2019. In addition, either party may terminate this Agreement at any time,
          and for any reason, upon 45 days written notice to the other party. Upon termination of the
          contract, Muskegon shall owe Norton Shores a pro rata return of the unearned
          Administration Fee paid to date.
       5. Building Inspection. Norton Shores’ Building Inspection Department will perform all
          inspections for CDBG projects and submit the inspection reports to Muskegon for inclusion
          in the relevant project file.
       6. Purchasing Guidelines. Muskegon and Norton Shores agree to evaluate the current CDBG
          program purchasing guidelines used by Norton Shores and establish a written quotation and
          sealed project bid system acceptable to both parties.
       7. General Provision.
               a. Non-Waiver. No waiver by any party of any provision of this Agreement shall
                   constitute a waiver by such party of such provision on any other occasion or a
                   waiver by such party of any other provision of this Agreement.
               b. Severability. Should any provision of this Agreement be determined to be invalid,
                   unlawful, or unenforceable in any respect, the validity, legality, and enforceability of
                   the remaining provisions shall not in any way be impaired or affected.
               c. Assignment or Delegation. Neither party may assign all or any portion of its rights
                   and obligations in this Agreement without the express prior written approval of the
                   other party which approval may be withheld for any reason.




City of Muskegon                                         City of Norton Shores



By _____________________________                         By _____________________________
Stephen J. Gawron, Mayor                                 Gary Nelund, Mayor




By _____________________________                         By _____________________________
Anne Marie Meisch, City Clerk                            Shelly Stibitz, City Clerk
                             AGENDA ITEM NO. _______________
                     CITY COMMISSION MEETING _________________________




TO:        Honorable Mayor and City Commissioners

FROM:      Frank Peterson, City Manager

DATE:      June 13, 2017

RE:        Cemetery Perpetual Care Fund - CFFMC


SUMMARY OF REQUEST:


The City Commission recently approved a change to the fund to allow for a loan in support of
development at 351 West Western. The developers have received a conditional offer from the
MEDC to provide grant assistance to the project. However, the MEDC’s recommendation is
contingent upon the City’s loan terms being adjusted to allow for better cash flow in the project.
Absent a change to our loan, the grant funding is unlikely to be recommended at its current level.


FINANCIAL IMPACT:
None.


BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
To authorize the Community Foundation for Muskegon County to invest $500,000 from the City
of Muskegon Cemetery Perpetual Care Fund in 351 W. Western Ave. LLC, as a piece of the
financing for a six-story residential, commercial and retail development on terms that are as
follows:

The return to the Cemetery Perpetual Care Endowment Fund will be interest at 0% for the first
three years and then at the prime rate beginning in year four, adjusted annually. Years 1-5,
monthly payments will consists of interest only. Beginning in Year six, monthly payments will
consists of principle and interest (prime), based on 25 year amortization. A balloon payment will
be due at year 15. The loan will be secured by a subordinated mortgage on the development.


COMMITTEE RECOMMENDATION:
                              AGENDA ITEM NO. _______________
                      CITY COMMISSION MEETING _________________________




TO:         Honorable Mayor and City Commissioners

FROM:       Frank Peterson, City Manager

DATE:       June 7, 2017

RE:         LC Walker Concession Point of Sale Contract


SUMMARY OF REQUEST:


The LC Walker arena stands grossed nearly $500,000 in sales during the current fiscal year. To better
manage these sales, staff is requesting permission to purchase and implement a point of sales
system. The system, Digital Dining, would be implemented prior to the start of hockey season, and
would be interconnected to any restaurants that lease space in the arena as well.


FINANCIAL IMPACT:
75,000


BUDGET ACTION REQUIRED:
None. This cost is included in the 4th Quarter Budget Reforecast.


STAFF RECOMMENDATION:
To authorize the City Manager to enter into a purchase agreement with Services Integrated
Systems, In of Nunica, MI to install and implement the Digital Dining Point of Sale System at the
LC Walker Arena, and to purchase all necessary equipment to accomplishing the installation
and implementation.


COMMITTEE RECOMMENDATION:
                                                                      Service Integrated Systems, Inc.                                                                Quote
                                                                                 Phone: (616) 837-1111
                                                                                   Fax: (616) 384-3028                                         No.:                   5327
                                                                                     12261-F Cleveland Rd
                                                                                                                                               Date:            6/2/2017
                                                                                      Nunica, MI 49448



Prepared for:                                                                                         Prepared by: John Gerig
Frank Peterson                                                                                        Account No.: 1092
L.C. Walker Arena
955 Fourth Street
Muskegon, MI 49440 U.S.A.


    Quantity Item ID                           Description                                           UOM                   List                   Sell                    Total

    Subtotal Header 1

              1 DD-30                          Digital Dining Professional License for                     EA     $19,800.00             $19,800.00               $19,800.00
                                               29 POS Stations

                  Each assembly includes
                      Qty. Item ID                     Description                                              UOM Sell                                     Total
                         6 DD-Add1-6                   Digital Dining Professional                                EA              $1,000.00               $6,000.00
                                                       License for 1-6 Stations
                        24 DD-Add7+                    Digital Dining Professional                                EA               $500.00               $12,000.00
                                                       License
                            - Digital Dining Software License $500 per station over 6
                         1 SUS-30-Yr1                  Annual Digital Dining Software                             EA              $1,800.00               $1,800.00
                                                       Update Subscription for 29
                                                       POS
                            - Digital Dining Software Subscription 25 POS for Year 1
                            - $1,550.00 Per Year
                                                                                                                                                         $19,800.00

              4 DDCC-H                         Digital Dining Credit Card Module                           EA          $300.00                  $0.00                    $0.00
                  - The Cost for this module is covered if processing with Heartland
              4 DDGift-H                       Digital Dining Gift Card Module                             EA          $300.00                  $0.00                    $0.00
                  - The Cost for this module is covered if processing with Heartland
                  - Gift Cards are available for purchase from Card Marketing Services.
              2 XT38-W/MSR/FP                  All In One - POS Terminal                                   EA       $1,579.00             $1,262.67                   $2,525.34

                  Each assembly includes
                      Qty. Item ID                     Description                                              UOM Sell                                     Total
                         1 XT-38                       FXT3815 15"ProCap,Intel Cel                                EA              $1,086.67               $1,086.67
                                                       J1900,2.42GHz,4G,64GSSD,P
                                                       OS Ready 7(64 bit)
                         1 XT-MSR/FP                   MSR Attachment, 3-Track                                    EA               $176.00                 $176.00
                                                       Encryption Capable, USB
                                                       W/Fingerprint Reader for Staff
                                                       Security.
                                                                                                                                                          $1,262.67

              1 PAX D210                       EMV Enabled Credit Card Terminal -                          EA          $607.00                $485.33                  $485.33
                                               Wireless
            19 PAX S300                        EMV Enabled Credit Card Terminal -                          EA          $484.00                $386.67                 $7,346.73
                                               Tethered
                  Customer will supply iPads.

              1 LP-Mini-MSR+CS-wStr            MSR with Light Weight Case and                              EA          $439.00                $351.67                  $351.67
                ap                             Hand Strap for iPad Mini
                  iPad Mini will be purchased by customer from a retailer of their choice. Purchase of a full replacement protection package
                  is recommended.

                  Each assembly includes

1 - quote - no you saved section.rpt                                         Printed: 6/2/2017 3:40:55PM                                                                 Page 1
                                                                                                                                                                   Quote
                                                                                                                                              No.:                 5327
                                                                                                                                              Date:          6/2/2017

    Quantity Item ID                          Description                                           UOM                     List                  Sell                 Total
                      Qty. Item ID                    Description                                               UOM Sell                                   Total
                         1 LP-Mini-Air-MSR            MSR for iPad Mini & Air                                      EA              $245.00               $245.00
                         1 LP-Mini-LiteW-CaseW/       Light Weight Case for iPad Mini                              EA              $106.67               $106.67
                           Strap                      - Rubber W/Hand Strap
                                                                                                                                                         $351.67

              6 LP Secure Stand Kit           Secure Stand with MSR for iPad Air                          EA            $618.00               $491.67              $2,950.02
                Air2                          Black
                  iPad will be purchased by customer from a retailer of their choice. Purchase of a full replacement protection package is
                  recommended.

                  Each assembly includes
                      Qty. Item ID                    Description                                               UOM Sell                                   Total
                         1 LP-Stand-Air               Secure Stand for iPad Air Black                              EA              $246.67               $246.67
                         1 LP-Air2-MSR                IPC Infinea Tab for iPad Air2                                EA              $245.00               $245.00
                                                      MSR (Encryption Ready)
                                                                                                                                                         $491.67

            21 iPad-POS-Stand                 POS Stand for iPad                                          EA            $266.00               $199.88              $4,197.48
                  Includes Security Cable & Steel Anchoring Point
              1 LP-Mini-Charger-1             Single Unit Charger for Slim Case for                       EA            $199.00               $174.67               $174.67
                                              iPad Mini
            24 BTP R180II                     Thermal Receipt Printer                                     EA            $239.00               $192.00              $4,608.00
                                              (USB/Serial/Ethernet)
              2 TM-220B Ethernet              Kitchen or Bar Prep Printer                                 EA            $455.00               $364.53               $729.06

            23 M-13                           13" Cash Drawer 24V                                         EA             $65.00                $52.00              $1,196.00
                  - Locking Lid and Under Counter Mount available for this model
            23 M-13-Lid                       Locking Lid for 13" Cash Drawer                             EA             $32.00                $25.33               $582.59

          1.00 Instll                         Menu Programing, Installation,                              EA        $3,500.00                $3,500.00             $3,500.00
                                              Training and Live Support
          1.00 OSM-LC                         Monthly On Site Support                                     EA            $350.00               $350.00               $350.00
                  Includes:
                  - Technical Assistance for Digital Dining and Network Related Issues
                  - Remote Control Agent for Accessing Digital Dining Back Office Server
                  - Unlimited Remote Support 9 to 5 Mon-Fri
                  - On Site Technical Support 9 to 5 Mon-Fri
                  - Emergency After Hours Support
                  - 20% Discount on New System Hardware
                  - Scheduled Equipment Diagnostic & Repair
                  - Annual Management & Staff Training (4 Hrs/Yr)
                  - Annual On Site Hardware preventative Manitenance
    Subtotal Footer 1                                                                                                                                         $48,796.89


              1 Dell-Srvr                     Dell - Main Data Server                                     EA        $4,299.00                $3,466.67             $3,466.67

              1 Dell Server for Mobile        Dell Mobile Device Server, Quad Core -                      EA        $4,825.00                $4,133.33             $4,133.33
                                              3 Yr Depot Warranty
                  - Intel® Xeon® E5-2609 v3 1.9GHz,1 Processor
                  - 32GB RDIMM, 2133 RAM
                  - RAID 1+RAID 1
                  - 4 Each - 1TB 7.2K RPM SATA 6Gbps 3.5in Hot-plug Hard Drive
                  - 2 Each - Broadcom 5720 DP 1Gb Network Interface Card
                  - Dual, Hot-plug, Redundant Power Supply (1+1), 495W
                  - 3 Year Dell ProSupport and Next Business Day On-site Service
              2 Win2016SrvrStd                Windows Server 2012R2 Std x64                               EA            $949.00               $949.00              $1,898.00



1 - quote - no you saved section.rpt                                        Printed: 6/2/2017 3:40:55PM                                                               Page 2
                                                                                                                                                Quote
                                                                                                                               No.:              5327
                                                                                                                               Date:          6/2/2017

      Quantity Item ID                   Description                                       UOM                 List                  Sell            Total

              6 Win12-5-RDP              Microsoft Windows Remote Desktop                        EA        $795.00             $749.00           $4,494.00
                                         Services 2012 - License 5 Pack
              2 GG-PV-UPS                Powervar 5 Yr Power Filter UPS-POS                      EA        $379.00             $297.33            $594.66

              8 UU+                      Enterprise Private WiFi                                 EA        $329.00             $265.33           $2,122.64

              1 Cis-320                  Cisco Router                                            EA        $269.00             $214.67            $214.67

              2 24-NetG                  24 Port Netgear Switch 10/100/1000                      EA        $199.00             $159.99            $319.98


                                                                                                                      Your Price:           $66,040.84


                                                                                                                           Total:
                                                                                                                                            $66,040.84

Prices are firm until 8/31/2017                         Terms: Prepaid Cash or Check, Add 3% for Credit Card


Prepared by:               John Gerig, john@sisdd.com                                                                     Date: 6/2/2017
-   This quote does not include Michigan Sales Tax
-   Credit Card and Gift Card Module No Charge if Processing with Heartland
-   Annual Software Subscription Price Based on processing with Heartland
-   Network Data Cabling Provided by Customer

ANNUAL SOFTWARE UPDATE SUBSCRIPTION
_____      For next year's subscription I elect to be billed annually. By choosing this option you will be invoiced for 10% of the
current POS license on the eleventh month following enrollment in the annual software subscription. Delinquent accounts will
forfeit product support until paid in full.

_____    For next year's subscription I elect to pay monthly via ACH. By choosing this option we will collect 1/12th of next years
annual subscription monthly in advance beginning on the first month following enrollment.

We the buyer, agree to purchase this system as described in this quote and agree to pay in full for the system and services
provided to support the system. An authorized signature on this document by the customer indicates acceptance of this quote
and will become a legal contract and notice to proceed.

This sales contract consisting of all signed or initialed documents by customer hereinafter "you") shall become binding only
when accepted in writing by an officer of Service Integrated Systems, Inc (hereinafter "SIS"). Your assent to these terms and
conditions is conclusively presumed from your signature heron and /or from your signature on the summary page. All quotes
are subject to a final review and approval by SIS. If there are any issues or concerns with the scope of work your sales
representative will contact you to have those items addressed prior to beginning work on your quote.

It is agreed that the above listed system is sold and purchased conditionally, and that the title to each is reserved to SIS and
shall not pass to you until the full purchase price of monies due have been paid and all terms and conditions set forth in this
contract have been complied with. This property shall not be resold, pledged mortgaged, removed from the location without
written consent of the Seller until contract is paid in full. If you issue a bad check all equipment must be surrendered
immediately to the seller. You must pay all outstanding balances due, plus bank fees with a credit card, certified check, or
cash in order to proceed. You assume the risk of and agree to indemnify SIS against injury and destruction from any cause
whatsoever to the property, after same has been delivered to and installed on the property of you and also any damage by
the property to person or property and no such injury, damage or destruction shall excuse payment or other liabilities
hereunder. In case of default in the payment of any regular installment or other monies, secured or due hereafter, or breach
of any terms or provisions hereof, SIS, at its option, without being limited thereto, may (a) sue for the amount then due
hereunder without repossession and without accelerating or otherwise affecting future installments; (b) treat all unpaid
installments and other monies which are or may be due hereunder as immediately due and sue therefore; (c) separately
there from or concurrently there with pursue any and all other remedies as then be lawful in the premises, including but not

1 - quote - no you saved section.rpt                               Printed: 6/2/2017 3:40:55PM                                                      Page 3
                                                                                                                                         Quote
                                                                                                                               No.:      5327
                                                                                                                               Date:   6/2/2017

limited to the right to resell the property after repossession and sue for deficiency judgment for any balance due hereunder.
All reasonable expenses incident to such repossession or pursuit or other remedies shall be borne by you, including but not
being limited to reasonable counsel and court fees. If you do not pay the sums due under this sales contract as and when
such sums are due, then SIS shall have and may exercise all rights and remedies available to it at law or in equity, including,
without limitation, the immediate right to enter any premises where the products are located and to take possession of the
products with or without notice or demand and with or without legal proceedings; in such event, you will pay upon demand a
reasonable product rental fee and will reimburse SIS for all expenses that SIS reasonably has incurred including, without
limitation, unreimbursed training and installation expenses, attorneys' fees, and court costs. The parties agree that this sales
contract and the license terms hereunder constitute an executor contract in accordance with section 365 of the US bankruptcy
code; and therefore, in the event you default and file for bankruptcy, this sales contract and the licensing terms of the
software products shall terminate unless you cure all defaults. The foregoing rights and remedies are not and shall not be
deemed to be Service Integrated Systems, Inc's exclusive remedies.

SIS's rights and obligations under this agreement will inure to the benefit and be binding upon SIS's successors and
assignees. The invalidity or unenforceability of any provision of this contract shall not render any other portion of the contract
invalid or unenforceable.

This instrument is the entire agreement. Oral changes have no effect. It may be altered only by a written agreement signed
by the party against whom enforcement of any waiver, change, modification, extension, or discharge is sought.

Jurisdiction and venue for any claim or cause of action arising under this agreement shall be exclusively in the state courts of
Michigan and this agreement shall be governed and construed in accordance with the laws of the state of Michigan.

SIS recommends that all sites with internet connections have a firewall and virus protection software installed on ALL
computers. This helps to protect your system from potential viruses, worms, and malicious code.

The down payment amount is a non-refundable payment as reasonable reimbursement for consultation services, site
evaluation, system presentation, order processing, installation of equipment and custom programming and you expressly
consent thereto. All payments made by credit cards are subject to a 3% surcharge.
Service Integrated Systems, Inc. retains title, ownership, and right of possession of the products (defined as all of the
products listed within this quote including, without limitation, hardware, software, and services) purchased or licensed
hereunder until shipment of the products; upon shipment SIS continues to retain title to the software products, and extends to
customer a license for the software products in accordance with the terms of EULA agreement found in the software.

The prices listed in this sales contract include initial programming and training of personnel in the use and operation of the
products only when expressly indicated. If SIS is providing training, training will be provided only to customer's employees,
and SIS 's sole obligation for training will be to supply a qualified instructor for the designated number of training hours. SIS
does not guarantee that, after such training, the trainees will be able to use or operate the products properly. Upon customer
request, SIS will provide additional training time beyond the amounts stated in this sales contract at SIS 's then-prevailing
rates which do not include standard travel and room and board. All such expenses shall be promptly paid by you upon
presentation of receipts and invoices.

Customer is solely responsible for installation of the requisite AC power lines. SIS does not provide cabling service, and shall
not be responsible for the inspection of such electrical installation. Customer acknowledges and agrees that SIS's warranty is
conditioned upon customer's providing environmental and operating conditions conforming to SIS's specifications.

Title, ownership and right to possession of the equipment listed on this contract shall remain with SIS until all sums due under
this contract are paid. This document is a security agreement allowing us to file a UCC-1 financing statement if any moneys
are still owed after installation. If payment is not made when due, or on other breach by you, SIS has the right to enter or to
network into any premises where the equipment is located and take possession of or disable the equipment without demand
and without the necessity of resorting to legal process. Your signature hereunder expressly grants permission to SIS
personnel or agents for such entry or disablement and you agree not to interfere with and to cooperate in such removal and
to pay for all reasonable expenses, including legal fees.

Upon breach of payment or of other terms, you also agree to pay, a reasonable equipment rental fee for the equipment

1 - quote - no you saved section.rpt                             Printed: 6/2/2017 3:40:55PM                                               Page 4
                                                                                                                                                 Quote
                                                                                                                                   No.:          5327
                                                                                                                                   Date:    6/2/2017

during its use and all expenses which have been incurred by SIS including, but not limited to, attorney's fees, court costs,
training and installation expenses and removal expenses. You shall also pay to SIS interest at a rate of 1.5% per month on
any unpaid balances that are 30 days overdue.

SIS is not liable for any delay in delivery or failure to deliver caused by unavailability of materials, strike or other labor related
difficulties, interruption of production for mechanical or technical reasons, government or court order, your failure to pay in
accordance with this agreement, or force majeure.

All claims for shortage or for damage occurring prior to delivery shall be deemed waived unless made in writing and delivered
to SIS within ten days of delivery of the equipment to you. All risk of loss or damage to equipment after delivery from any
cause whatsoever shall be borne by you. This is the only warranty made as to this installation and is in lieu of all other
warranties, expressed, implied, or statutory, including the warranty of merchantability or fitness for a particular purpose. In
no event shall SIS or its employees be liable for any loss of profits, opportunity, loss of use or other direct, indirect, incidental,
punitive or consequential damages including those associated with improper, under calculated or under-accrued taxes or
government levies. SIS is not responsible for and disclaims any liability associated with failure to process credit card
transactions and for any and all PCI/DSS/PABP compliancy violations, fines, judgments or penalties assessed against you.
Customer acknowledges that the software purchase herein is subject to the terms conditions and limitations contained in the
software manufacturers' licensing agreements, which are not transferable nor assignable.

Warranty is void if you are on "no service" status for non-payment.

Warranty coverage will not be extended for repairs made necessary by damage due to fire, water, wind, rain, storm,
lightning, blackout, burglary, power line fluctuations, spillage, accident, negligence, abuse, acts of God, acts of terror or the
installation or downloading by you, your licensees, employees, agents, or 3rd parties of software of any kind. The warranty
specifically excludes damage to the printer heads or motors caused by paper jams or insertion of foreign objects between the
printer head and the print surface. Any repairs resulting from such causes will be performed at additional charge to you only
after your prior written approval of estimated costs to repair. SIS assumes no responsibility for the repair or maintenance of
any type of communication lines or related equipment, which may be required for SIS to provide remote support. SIS
reserves the right to bill you for on-site service calls made necessary as a result of communication line or equipment
malfunctions which prevent SIS from using remote support software.

SIS has the right to terminate this contract, or to delay shipment pursuant thereto, by reason of the filing of bankruptcy or
insolvency proceedings against you, breach by you of any of the terms of this contract and your failure to make payments in
accordance with the payment schedule, if any, set forth elsewhere in this right to terminate this contract in the event of your
assignment of this contract without advance written approval by SIS.

Payment Schedule:
50% Deposit is due at signing of contract
50% Final Payment is due at delivery (or remote installation)
If paying with a lease or Funmunki all financial arrangements must be secured prior to delivery.
Rush installations are available for additional fees.

Accepted by:                                                                                                                   Date:__________
                                                                                                                               ___________
Disclaimer
IMPORTANT ITEM #1 - Programing for the new MasterCard is in DD version 7.4.3110 and beyond. The compliance deadline to avoid
penalties is June 30, 2017.

IMPORTANT ITEM #2 - Microsoft security updates require .Net 4.5. Windows XP generation operating systems do not support .Net
4.5. DD version 7.4.3200 and beyond require .Net 4.5 and will not load on a Windows XP generation computer. If any of the
computers on your DD system are Windows XP generation your DD software cannot be upgraded beyond version 7.4.3200.




1 - quote - no you saved section.rpt                                Printed: 6/2/2017 3:40:55PM                                                    Page 5
Date:      June 13, 2017
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Meisch, City Clerk
RE:        Community Relations Committee Recommendation for
           Commission Opening




SUMMARY OF REQUEST: To concur with recommendations from the
Community Relations Committee regarding the appointment by City Manager,
Frank Peterson, of Jonathan Wilson to the Housing Commission.

FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To accept the recommendation made by the
Community Relations Committee of Frank Peterson to appointment Jonathan
Wilson to the Housing Commission.
COMMITTEE RECOMMENDATION: To accept the appointment by Frank
Peterson of Jonathan Wilson to the Housing Commissonn.
Date:         June 7, 2017
To:           Honorable Mayor and City Commissioners
From:         City Manager
RE:           Transmittal of 2017-18 Proposed Budget


SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission the
proposed budget for fiscal year 2017-18 which starts July 1, 2017. An electronic version of
the budget has been distributed to Commissioners. Additionally, the budget is available for
public inspection on the City’s website and at the City Clerk’s office or Hackley Public
Library.

The proposed budget will be reviewed in detail with staff at the June 12th Worksession. A
public hearing on the budget will be held at the regular Commission meeting the following
evening on June 13th. City ordinance requires that the budget be adopted by the
Commission on or before the second Commission meeting in June.



FINANCIAL IMPACT: The budget is the City’s financial plan for the coming fiscal year.



BUDGET ACTION REQUIRED: None at this time.



STAFF RECOMMENDATION: Approval of the proposed budget for fiscal year 2017-18.
                    Commission Meeting Date: June 13, 2017




Date:         June 5, 2017
To:           Honorable Mayor and City Commissioners
From:         Finance
RE:           Defined Benefit Plan Amortization Extension Agreement




SUMMARY OF REQUEST: To approve the attached Defined Benefit Plan
Amortization Extension Agreement to extend the amortization periods for funding the
unfunded accrued liability for the provision of the City’s defined benefit pension
benefits through MERS. The extension of the amortization periods will assist the City
by reducing significant financial stress to the budget in coming years.


FINANCIAL IMPACT: It is estimated that the City’s required contribution rate for
the first year (fiscal year 2017-18) would decrease by over $304,000.


BUDGET ACTION REQUIRED: Future budgets will be reflective of this
change.



STAFF RECOMMENDATION: To approve the attached Defined Benefit Plan
Amortization Extension Agreement and authorize the Mayor to sign the agreement.
                               Amortization Extension Agreement


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

Accordingly, the Parties agree as follows:

   1. UAL Defined: As used in this Agreement, the term UAL shall mean the outstanding
      balance remaining as of 12/31/2015 (date of last annual valuation) of the Employer's
      unfunded accrued liability for provision of defined benefit pension benefits through MERS
      as determined by MERS' actuaries.

   2. Purpose: In the exercise of its one-time opportunity to do so as provided by MERS,
      Employer has requested that MERS grant it an extension of the period in which its UAL is
      amortized to assist with the employer's need to address significant financial stress .

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

   4. Representations and Understandings of Employer:

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

   5. Conclusion and Decision of MERS: Based on the foregoing analysis and
      representations of Employer, MERS approves Employer's request with the following terms
      and conditions , with which Employer agrees :




                                                  1
         a. MERS shall extend Employer's amortization period with respect to its UAL as followed:
            •   Division #01 (Non-Union General): UAL to be extended by 5 years (from a 9-yr to a 14-yr
                amortization) such that its UAL is projected to be fully amortized under current
                actuarial assumptions and demographic projections by 06/30/2031 (end of the
                applicable fiscal year).
            • Division #10 (General Ret.) & division #20 (PLC/Fire Ret.): UAL to be extended by 2
               years (from a 9-yr to an 11-yr amortization) such that its UAL is projected to be fully
               amortized under current actuarial assumptions and demographic projections by
               06/30/2028 (end of the applicable fiscal year).
            • Division #22 (Police Comm.): UAL to be extended by 11 years (from a 14-yr to a 25-yr
               amortization) such that its UAL is projected to be fully amortized under current
               actuarial assumptions and demographic projections by 06/30/2042 (end of the
               applicable fiscal year).
            • Divisions #02 (Non-Union Police), #11 (Clerical), #12 (DPW 517M), #21 (Police
               Patrol) & #50 (FF Local 370): UAL to be extended by 16 years (from a 9-yr to a 25-yr
               amortization) such that its UAL is projected to be fully amortized under current
               actuarial assumptions and demographic projections by 06/30/2042 (end of the
               applicable fiscal year).


         b. The extension stated above is based on the provisions in effect in the specified division(s)
            as of the most recent Annual Actuarial Valuation. The projection analysis also reflected
            the following changes since the 12/31/2015 Annual Valuation:
            •    Divisions #01, #12 & #21: Bridged Benefit multiplier adopted
            •    Divisions #02 & #11: Lump sum additional contribution payment made in October
                 2016.


         c. The Employer understands that if changes are made to the provisions used in the
            projection analysis, MERS may require that an updated analysis be prepared to ensure
            the continued sustainability of the plan as described in Section 4(b) of this Agreement.

         d. This Agreement has been authorized by formal action of Employer's governing body.

         e. Representatives of MERS presented and explained the actuarial analysis that forms the
            basis of this Agreement and the full impact of Employer's request to Employer on May 8,
            2017, and responded to all of Employer's questions to Employer's satisfaction.

Adopted by the Employer’s governing body and MERS on this day of        June 13         , 2017



FOR EMPLOYER



Signature
   Stephen J. Gawron
Printed name
    Mayor
Title
                                                   2
(check one):

x
       Authorized designee of the governing body of the Employer

       Chief Judge of the Court

Date:    6/13/2017




FOR MERS


Signature

Printed name

Title

Date:




                                                3
                                           6116 - Muskegon, City of
                           Comparison of Annual Employer Contribution Requirements
                                                  by Division For Fiscal year 2017

                                         Amortization Extension Amortization Extension
                           Division         Phase-in Rates        Full Impact Rates
                              01               $        199,488        $       235,440
                              02               $             -         $            -
                              10               $        242,112        $       300,096
                              11               $          37,212       $         43,404
                              12               $          77,700       $         87,972
                              20               $        552,384        $       670,272
                              21               $        160,764        $       160,764
                              22               $        211,524        $       244,548
                              50               $        286,956        $       330,252
                             Total                 $        1,768,140                 $        2,072,748




                                                       Disclosure Statement

This document is not an actuarial report nor are the contribution amounts or rates certified by an actuary. The contribution amounts
and rates in this document are estimates (not actual contribution amounts or rates) and are for illustrative purposes only. Neither the
employer, nor any other party receiving or reviewing this letter may rely on these calculations as indicative of future contribution
amounts or rates. By requesting and accepting this document, the employer agrees that MERS shall have no liability arising out of
the provisions of these amounts and rates, and agrees to indemnify MERS for any liability arising from same due to the provision of
this letter or any information therein to any other party or individual. Pursuant to MCL 38.1140h and Section 46 of the MERS Plan
Document, there must be a supplemental actuarial analysis conducted before any proposed benefit change is implemented.
                                                                                   Municipal Employees Retirement System of Michigan
                                                                                      Muskegon, City of (6116) - Total of All Divisions
                                                     Estimated Projection Results of Employer Contributions and Funded Ratios - 7.75% Assumed Annual Market Return
                                                                                                                                                                                                                Scenario 4: 11 Years for Divisions 10 & 20, 14
                                                                                                          Scenario 2: 11 Years for Divisions 10 & 20, 14                                                           Years for Division 01, and 25 Years for
                                                                                                             Years for Division 01, and 25 Years for         Scenario 3: Current Amortization without Phase-      Divisions 02, 11, 12, 21, 22, & 50, without
                                                   Scenario 1: Current Amortization with Phase-In        Divisions 02, 11, 12, 21, 22, & 50, with Phase-In                         In                                              Phase-In

Valuation Year   Fiscal Year         Actuarial                                                                                             Minimum                                                                                               Minimum
    Ending       Beginning           Accrued          Valuation        Funded       Total Employer           Valuation        Funded       Employer             Valuation         Funded       Total Employer     Valuation        Funded        Employer
December 31,       July 1,           Liability          Assets          Ratio        Contribution              Assets          Ratio      Contribution            Assets           Ratio        Contribution        Assets          Ratio       Contribution
     2015           2017             105,616,467     90,550,456          86%          2,164,680             90,550,456         86%         1,768,140           90,550,456           86%          2,599,128       90,550,456         86%          2,072,748
     2016           2018             108,204,000     90,105,000         83%           3,016,000             90,105,000         83%         2,310,000           90,105,000          83%           3,288,000       90,105,000         83%          2,501,000
     2017           2019             110,771,000     89,708,000         81%           4,051,000             89,486,000         81%         2,868,000           89,950,000          81%           4,167,000       89,656,000         81%          2,950,000
     2018           2020             113,150,000     89,416,000         79%           4,731,000             88,587,000         78%         3,438,000           90,052,000          80%           4,705,000       89,033,000         79%          3,420,000
     2019           2021             115,283,000     89,676,000         78%           5,432,000             87,819,000         76%         4,010,000           90,543,000          79%           5,280,000       88,427,000         77%          3,904,000
     2020           2022             117,149,000     93,055,000         79%           5,626,000             89,770,000         77%         4,151,000           94,032,000          80%           5,470,000       90,455,000         77%          4,042,000
     2021           2023             118,707,000     96,855,000         82%           5,850,000             91,926,000         77%         4,317,000           97,810,000          82%           5,689,000       92,596,000         78%          4,204,000
     2022           2024             119,898,000     101,586,000        85%           2,931,000             94,772,000         79%         4,415,000           102,456,000         85%           2,765,000       95,382,000         80%          4,298,000
     2023           2025             120,670,000     106,445,000        88%           2,984,000             97,540,000         81%         4,524,000           107,218,000         89%           2,811,000       98,082,000         81%          4,402,000
     2024           2026             121,017,000     109,849,000        91%           3,049,000             100,229,000        83%         4,642,000           110,512,000         91%           2,869,000       100,693,000        83%          4,516,000
     2025           2027             120,934,000     111,618,000        92%           2,648,000             102,822,000        85%         4,703,000           112,155,000         93%           2,472,000       103,198,000        85%          4,579,000
     2026           2028             120,452,000     113,234,000        94%           2,167,000             105,382,000        87%         2,865,000           113,629,000         94%           2,055,000       105,660,000        88%          2,787,000
     2027           2029             119,598,000     114,506,000        96%           1,554,000             107,941,000        90%         2,291,000           114,748,000         96%           1,502,000       108,110,000        90%          2,255,000
     2028           2030             118,341,000     115,122,000        97%            938,000              109,478,000        93%         1,712,000           115,233,000         97%            925,000        109,556,000        93%          1,703,000
     2029           2031             116,691,000     114,957,000        99%            322,000              109,620,000        94%          857,000            114,991,000         99%            325,000        109,644,000        94%           858,000
     2030           2032             114,703,000     113,960,000        99%            220,000              108,995,000        95%          774,000            113,963,000         99%            222,000        108,997,000        95%           776,000
     2031           2033             112,410,000     112,122,000        100%            88,000              107,452,000        96%          667,000            112,120,000         100%            88,000        107,451,000        96%           667,000
     2032           2034             109,836,000     109,689,000        100%            73,000              105,222,000        96%          673,000            109,689,000         100%            73,000        105,222,000        96%           673,000
     2033           2035             106,999,000     106,906,000        100%            62,000              102,681,000        96%          684,000            106,906,000         100%            62,000        102,681,000        96%           684,000
     2034           2036             103,934,000     103,841,000        100%            47,000              99,901,000         96%          698,000            103,842,000         100%            47,000        99,901,000         96%           698,000
     2035           2037             100,669,000     100,580,000        100%            40,000              96,969,000         96%          716,000            100,580,000         100%            40,000        96,969,000         96%           716,000
     2036           2038              97,232,000     97,145,000         100%            34,000              93,916,000          97%         736,000            97,146,000          100%            34,000        93,916,000          97%          736,000
     2037           2039              93,646,000     93,560,000         100%            29,000              90,770,000          97%         758,000            93,561,000          100%            29,000        90,771,000          97%          758,000
     2038           2040              89,932,000     89,849,000         100%            25,000              87,558,000         97%          779,000            89,850,000          100%            25,000        87,558,000         97%           779,000
     2039           2041              86,125,000     86,045,000         100%            21,000              84,319,000         98%          804,000            86,046,000          100%            21,000        84,320,000         98%           803,000
     2040           2042              82,251,000     82,175,000         100%            18,000              81,085,000          99%          17,000            82,175,000          100%            18,000        81,086,000          99%           17,000
     2041           2043              78,332,000     78,259,000         100%            16,000              77,883,000          99%          14,000            78,259,000          100%            16,000        77,883,000          99%           14,000
     2042           2044              74,392,000     74,322,000         100%            15,000              74,323,000         100%          14,000            74,322,000          100%            15,000        74,323,000         100%           14,000

  Notes:
 (1) The Actuarial Accrued Liability, Valuation Asssets, and Funded Ratio are calculated as of December 31.
 (2) Contributions are calculated for the applicable fiscal year.
 (3) The impact of the assumption changes is phased-in over a 5 year period. This phase-in is reflected in scenarios 1 and 2, however scenarios 3 and 4 reflect the full impact of the new assumptions.
 (4) Scenarios 1-4 reflected the additional assets contributed to divisions 02 and 11 on 9/30/2016, and the bridged multiplier adopted since the valuation date for divisions 01, 12, and 21.




                                                                                                                 Disclosure Statement

This document is not an actuarial report nor are the contribution amounts or rates certified by an actuary. The contribution amounts and rates in this document are estimates (not
actual contribution amounts or rates) and are for illustrative purposes only. Neither the employer, nor any other party receiving or reviewing this letter may rely on these calculations as
indicative of future contribution amounts or rates. By requesting and accepting this document, the employer agrees that MERS shall have no liability arising out of the provisions of
these amounts and rates, and agrees to indemnify MERS for any liability arising from same due to the provision of this letter or any information therein to any other party or individual.
Pursuant to MCL 38.1140h and Section 46 of the MERS Plan Document, there must be a supplemental actuarial analysis conducted before any proposed benefit change is
implemented.
                                                                  Municipal Employees' Retirement System of Michigan
                                                                    Muskegon, City of (6116) - Total of All Divisions
                                                                         7.75% Assumed Annual Market Return
                                   Estimation of Projected Funded Ratio                                                                    Estimation of Projected $ Contributions



                   120.0%                                                                                              7,000,000


                                                                                                                       6,000,000
                   100.0%

                                                                                                                       5,000,000
                    80.0%
    Funded Ratio




                                                                                                      $ Contribution
                                                                                                                       4,000,000

                    60.0%
                                                                                                                       3,000,000

                    40.0%
                                                                                                                       2,000,000


                    20.0%
                                                                                                                       1,000,000


                     0.0%                                                                                                     0


                                                                           Baseline Phase-In                                                                                         Baseline Phase-In
                                                                           Proposed Phase-In                                                                                         Proposed Phase-In
                            Valuation Year Ending December 31,             Baseline Full-Impact                                      Fiscal Year Beginning July 1,                   Baseline Full-Impact
                                                                           Proposed Full Impact                                                                                      Proposed Full-Impact

                                 Scenario 1:   Current Amortization with Phase-In
                                 Scenario 2:   11 Years for Divisions 10 & 20, 14 Years for Division 01, and 25 Years for Divisions 02, 11, 12, 21, 22, & 50, with Phase-In
                                 Scenario 3:   Current Amortization without Phase-In
                                 Scenario 4:   11 Years for Divisions 10 & 20, 14 Years for Division 01, and 25 Years for Divisions 02, 11, 12, 21, 22, & 50, without Phase-In



                                                                                          Disclosure Statement

This document is not an actuarial report nor are the contribution amounts or rates certified by an actuary. The contribution amounts and rates in this document are estimates (not
actual contribution amounts or rates) and are for illustrative purposes only. Neither the employer, nor any other party receiving or reviewing this letter may rely on these calculations as
indicative of future contribution amounts or rates. By requesting and accepting this document, the employer agrees that MERS shall have no liability arising out of the provisions of
these amounts and rates, and agrees to indemnify MERS for any liability arising from same due to the provision of this letter or any information therein to any other party or individual.
Pursuant to MCL 38.1140h and Section 46 of the MERS Plan Document, there must be a supplemental actuarial analysis conducted before any proposed benefit change is
implemented.
                                                                          CBIZ Retirement Plan Services
                                                                    CBIZ Benefits & Insurance Services, Inc.
                                                                         17199 Laurel Park North, Ste. 405
                                                                                            Livonia, MI 48152
                                                                                   http://retirement.cbiz.com




Municipal Employees' Retirement System of Michigan

                      Alternate Amortization Study
                        City of Muskegon (6116)




  CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com


April 27, 2017

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


The purpose of this report is to determine whether it is reasonable to extend the period over
which the Unfunded Accrued Liability as of December 31, 2015 (the “UAL”) is amortized, for
participants covered by the MERS Defined Benefit plan sponsored by City of Muskegon (6116).
The City is requesting the following analysis:

      Baseline – this is the current amortization policy that was used in the December 31,
       2015 annual valuation.
      Option 1 – the amortization period for the UAL as of December 31, 2015 is extended to
       the maximum allowable, up to 25 years for closed divisions 01, 02, 10, 11, 12, 20, 21, 22
       and 50. The amortization period declines by one each year until the UAL is fully paid.

Our analysis was prepared in the context of the MERS Defined benefit plan only. Any additional
analysis regarding the financial condition of the employer is outside the scope of this project and
is not our area of expertise.

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

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

This report was prepared at the request of MERS and the municipality and may be
provided only in its entirety by the municipality to other interested parties. CBIZ
Retirement Plan Services is not responsible for the consequences of any unauthorized
use.

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

Background on Funding Policy

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


                                                                                                                        Page 2 of 10

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com


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

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

UAL can develop for a number of reasons, including actual experience being different than
assumed, benefit increases that apply to service already earned, and changes in assumptions
(this list is not all-inclusive). A detailed discussion of the causes of the UAL as of December 31,
2015 for the City of Muskegon is beyond the scope of this assignment, and has not been
prepared.

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

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

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

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

The assumptions and methods adopted by the MERS Retirement Board based on the last
Experience Study, including the funding policy, are designed to mitigate some of these risks.
An Experience Study is completed every five years to review the assumptions and methods.
The next Experience Study will be completed in 2020.



                                                                                                                        Page 3 of 10

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com


Request for Extension of the Amortization Period

The City of Muskegon has requested an amortization extension study for the UAL as of
December 31, 2015. The amortization extension request is described earlier in this letter under
Option 1.

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

Extending the amortization period does not improve the funding goal of adequacy, and runs
counter to the goal of intergenerational equity. Lengthening the amortization period means
missed opportunities for investment earnings, puts a greater burden on future taxpayers, and
reduces the financial security for members covered under the plan.


Analysis

We have prepared projections of the current funding policy and the policy amended by the
requested extension, using the following:

      The same benefits that were used in preparing the December 31, 2015 annual actuarial
       valuation report, except that the projections reflect the adoption of bridged benefits for
       divisions 1, 12 and 21 subsequent to the valuation date. In addition, the projections
       include the impact of additional City contributions made in October 2016 into divisions 2
       and 11.

      Current valuation assumptions (except where otherwise noted), and an assumed annual
       return on the market value of assets of 7.75%. The results of these projections are
       shown on page 7 of this report.

      An assumption that the long term asset return will be 6.75%. Liabilities were based on a
       6.75% discount rate, to reflect the lower asset return in this scenario. This scenario was
       chosen to illustrate the impact of the extended amortization if future asset returns are
       lower than currently assumed. The results of this scenario can be found on page 8. Note
       that the assumptions used in this scenario were chosen to reflect the level of
       contributions required if future asset returns are lower than assumed for an extended
       period of time. The 6.75% assumption is just one of many assumptions of the future that
       could be used; it is not intended to be reflective of a best estimate of future experience.
       Different assumptions would produce different results.

      The calculations reflect the phase-in of the impact of the new assumptions.

In addition, we also analyzed the following statistics for each division in order to reach our
conclusion:

                                                                                                                        Page 4 of 10

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com



      Ratio of retiree AAL to total AAL as of December 31, 2015
      Average age of retirees and average age of actives as of December 31, 2015
      Net cash-flow of the plan during the projection period.
.
The relevant results of our analysis include the following:

      Under Option 1 the UAL as of December 31, 2015 is fully paid off over a longer period
       than under the Baseline, as expected.

      Projected contribution amounts under the alternate asset return scenario are higher than
       under the 7.75% return scenario, because lower investment earnings require higher
       contributions to fund the same level of benefits.

      Reflecting the benefit changes and additional contributions described above, the plan is
       86% funded based on the valuation assets (smoothed assets). Unless offset by larger
       than expected asset returns, this funded ratio is expected to decline over the next
       several years until the past asset losses are fully reflected in the valuation assets.
       Under the Baseline, the funded ratio for City in total does not rise above the current level
       for 7 years. Under Option 1, the funded ratio for the City in total does not rise above the
       current funded level for about 11 years.

      Division 1 is 88% funded as of December 31, 2015, however nearly two-thirds of this
       liability is associated with inactive participants. The division is mature and in a negative
       cash flow position. The maximum amortization period approved for this division is 14
       years.

      Division 10 is 76% funded as of December 31, 2015. It contains only inactive members,
       with an average retiree age of 78. The liability associated with the retirees is only 78%
       funded. The division is mature and in a negative cash flow position. The maximum
       amortization period approved for this division is 11 years.

      Division 20 is 71% funded as of December 31, 2015. It contains only inactive members,
       with an average retiree age of 76. The liability associated with the retirees is only 71%
       funded. The division is mature and in a negative cash flow position. The maximum
       amortization period approved for this division is 11 years.

      Divisions 2, 11, 12, 21, 22 and 50 are between 82% and 103% funded as of December
       31, 2015. The retiree liability for these divisions is fully funded. The divisions that are
       less than 100% funded have more active members than inactive participants, resulting in
       a relatively long future life expectancy. Because of these factors the maximum approved
       amortization extension for these divisions is 25 years.
                                                                                                                        Page 5 of 10

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                       CBIZ Retirement Plan Services
                                                                                 CBIZ Benefits & Insurance Services, Inc.
                                                                                      17199 Laurel Park North, Ste. 405
                                                                                                         Livonia, MI 48152
                                                                                                http://retirement.cbiz.com




Conclusion

The actuaries recommended, and the MERS Retirement Board adopted, the current funding
policy as a result of the 2015 Experience Study. Extending the amortization period runs counter
to current best practices in the Public Plan community and is an exception to the current MERS
funding policy.

Based on the results of this analysis, the actuaries approve the following extensions to the
amortization periods:

             Division         Current Period (years)                   Extended Period (years)
                 1                      9                                        14
                 2                      9                                        25
                10                      9                                        11
                11                      9                                        25
                12                      9                                        25
                20                      9                                        11
                21                      9                                        25
                22                     14                                        25
                50                      9                                        25

Ultimately, whether the plan accumulates enough assets to pay the benefits promised will
depend, among other things, upon the plan sponsor’s and the members’ ability to make the
contributions. If the plan sponsor makes at least the required minimum contributions the plan is
expected to pay the benefits promised if future experience is in line with the actuarial
assumptions used.

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

The undersigned are members of the American Academy of Actuaries (MAAA) and meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinion
contained herein.

If you need further information to make an informed decision, please contact MERS at (800)
767-6377 for assistance.

Sincerely,




                                                                                                                        Page 6 of 10

               CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
             investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                                                                                CBIZ Retirement Plan Services
                                                                                                                                          CBIZ Benefits & Insurance Services, Inc.
                                                                                                                                               17199 Laurel Park North, Ste. 405
                                                                                                                                                                  Livonia, MI 48152
                                                                                                                                                         http://retirement.cbiz.com


                                                              Municipal Employees' Retirement System of Michigan
                                                                Muskegon, City of (6116) - Total of All Divisions
                                                                     7.75% Assumed Annual Market Return
                                     Projected Funded Ratio                                                                             Projected $ Contributions



               120.0%                                                                                             7,000,000



                                                                                                                  6,000,000
               100.0%

                                                                                                                  5,000,000
Funded Ratio




                                                                                                 $ Contribution
                80.0%

                                                                                                                  4,000,000

                60.0%
                                                                                                                  3,000,000


                40.0%
                                                                                                                  2,000,000


                20.0%                                                                                             1,000,000



                 0.0%                                                                                                    0



                                                                     Baseline                                                                                         Baseline
                        Valuation Year Ending December 31,                                                                      Fiscal Year Beginning July 1,
                                                                     Proposed                                                                                         Proposed

                             Current Amortization
                             Alternate Amortization - 11 Years for Divisions 10 & 20, 14 Years for Division 01, and 25 Years for Divisions 02, 11, 12, 21, 22, & 50




                                                                                                                                                                           Page 7 of 10

                                            CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
                                          investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                                                                                CBIZ Retirement Plan Services
                                                                                                                                         CBIZ Benefits & Insurance Services, Inc.
                                                                                                                                              17199 Laurel Park North, Ste. 405
                                                                                                                                                                 Livonia, MI 48152
                                                                                                                                                        http://retirement.cbiz.com


                                                              Municipal Employees' Retirement System of Michigan
                                                                Muskegon, City of (6116) - Total of All Divisions
                                                                     6.75% Assumed Annual Market Return
                                     Projected Funded Ratio                                                                             Projected $ Contributions



               120.0%                                                                                             9,000,000


                                                                                                                  8,000,000

               100.0%
                                                                                                                  7,000,000
Funded Ratio




                                                                                                 $ Contribution
                80.0%                                                                                             6,000,000


                                                                                                                  5,000,000
                60.0%
                                                                                                                  4,000,000


                40.0%                                                                                             3,000,000


                                                                                                                  2,000,000
                20.0%
                                                                                                                  1,000,000


                 0.0%                                                                                                    0



                                                                     Baseline                                                                                         Baseline
                        Valuation Year Ending December 31,                                                                      Fiscal Year Beginning July 1,
                                                                     Proposed                                                                                         Proposed

                             Current Amortization
                             Alternate Amortization - 11 Years for Divisions 10 & 20, 14 Years for Division 01, and 25 Years for Divisions 02, 11, 12, 21, 22, & 50




                                                                                                                                                                           Page 8 of 10

                                            CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
                                          investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                                   CBIZ Retirement Plan Services
                                                                             CBIZ Benefits & Insurance Services, Inc.
                                                                                  17199 Laurel Park North, Ste. 405
                                                                                                     Livonia, MI 48152
                                                                                            http://retirement.cbiz.com




                                          Important Comments

1. The results are based on information provided by the municipality and MERS. The
   actuary is unaware of any additional information that would impact these results.

2. The calculations in this report were prepared based on December 31, 2015,
   demographic and financial information unless noted elsewhere in the report.

3. The valuation date is December 31, 2015.

4. Please note, the assumptions and methods used in these calculations are consistent
   with those used in the December 31 2015, Annual Actuarial Valuation (except where
   noted otherwise) and are summarized in an Appendix. This Appendix is located on the
   MERS website at www.mersofmich.com.

5. The following information, assumptions and funding methods were used in the
   projections:
       a. Demographic, financial information and benefit provisions provided by MERS for
           the December 31, 2015 annual valuation.
       b. The assumptions and methods used in the December 31, 2015 annual valuation,
           except where noted otherwise.
       c. All demographic assumptions will be met during the projection period.
       d. There will be no benefit changes during the projection period.

6. If the user of this report is not sure how to interpret certain results in the report or how to
   read the report, they should contact MERS at (800) 767-6377 before relying on the
   results of this report.




                                                                                                                    Page 9 of 10

           CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
         investment advisory, third party administration, actuarial and other corporate retirement plan services.
                                                                               CBIZ Retirement Plan Services
                                                                         CBIZ Benefits & Insurance Services, Inc.
                                                                              17199 Laurel Park North, Ste. 405
                                                                                                 Livonia, MI 48152
                                                                                        http://retirement.cbiz.com


Additional Disclosures Required by Actuarial Standards of Practice


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

This report should not be relied on for any purpose other than the purpose described in
the primary communication. Determination of the financial results associated with the
benefits described in this report in a manner other than the intended purpose may
produce significantly different results.

The calculation was based upon information furnished by the Employer and MERS
administrative staff, concerning Retirement System benefits and member information.
CBIZ Retirement Plan Services is not responsible for the accuracy or completeness of
the information provided to us for these calculations.

The developed findings included in this report consider data or other information through
December 31, 2015, except where otherwise noted.




                                                                                                                Page 10 of 10

       CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. market
     investment advisory, third party administration, actuarial and other corporate retirement plan services.
                  Commission Meeting Date: June 13, 2017




Date:         June 8, 2017
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Request for approval of a Planned Unit Development at
              former Nims School


SUMMARY OF REQUEST:

Request for Final Planned Unit Development (PUD) approval at the former Nims School
located at 1161 W Southern Ave by Avasure, LLC. This project will reutilize the building
as a number of uses; including offices, research and development and a business
incubator.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends approval of the final PUD.

COMMITTEE RECOMMENDATION:

The request was unanimously approved at the May 22 Special Planning Commission
meeting.
            PLANNING COMMISSION STAFF REPORT EXCERPT

SUMMARY

 1. Nims Elementary School closed in 2012 and has sat vacant since that time.
 2. Since this is a very large building and there are several uses requested, the best option
    for reusing this property is a Planned Unit Development (PUD). The underlying
    zoning of this property is R-1, Single Family Low Density Residential District.
 3. This PUD is being proposed by AvaSure, the potential buyers of the property. They
    are proposing the following uses on site (please see the enclosed floor plans):

        •   AvaSure Offices

            AvaSure will expand its office space into the Nims facility. The expansion is
            needed due to new products, services and markets already in development
            such as the Telemedicine market, the international market, the patient
            monitoring as a service market, the long-term care market and potentially
            other use markets such as education. In addition to the expansion of the
            current AvaSys market, due to the expectation of growth into these new
            products, services and markets, AvaSure will need to add employees in a host
            of roles including division heads, product managers, market managers, sales
            positions, product marketing managers, engineers, both clinical and technical
            deployment experts, project managers, new product testers, technicians and
            other different kinds of office personnel. They are expected to hire 100-150
            new employees over the next five years.

        •   Innovation, Research, Mentoring Center (Research & Development)

            As part of a commitment to the community, AvaSure will open & develop an
            Innovation, Research & Mentoring Center at the Nims location. This center
            will support some of the new AvaSure ideas that will eventually be brought to
            market. It will also support the owners interest in developing non-AvaSure
            innovative ideas. These ideas are pursuant to the free enterprise ideals of job
            creation and community development. The center will also be designed to
            allow community collaboration and involvement in ideas pursuant to either
            free enterprise or a common good. These innovations could be technology
            based or non-technology based. They could be products or services. The
            owner has already received interest from the entities within the community to
            sublease some of this space for their ideas. These innovations are meant to
            create new commercial activity with a goal to be located within the Muskegon
            community area. The aim of the Center will also be to develop community
            based innovation & excitement through prized based competitions for the best
            innovation ideas from the area.



        •   Multi-Tenant Commercial / Business Incubator

            As a follow-on to the Innovation Center, this facility will provide limited
             space for early stage small commercial startup businesses. These businesses
             would include commercial office and assembly (which would include the
             usage of power tools and small machinery that would not to exceed a 110V
             draw on power. Any heavier equipment based will be located offsite).

         •   Community Urban Garden

             Beginning in 2018, and in conjunction with Community encompass, the Nims
             grounds will be in part developed into a commercial urban garden.

         •   Community Ball Parks

             AvaSure intends to preserve one ball diamond backstop and the soccer goals
             on the grounds for community use.



                                Former Nims School




Zoning                                                                         Map
    Aerial Map




CITY OF MUSKEGON
                                 RESOLUTION #2017-
 RESOLUTION FOR FINAL PLANNED UNIT DEVELOPMENT APPROVAL FOR 1161 W
                           SOUTHERN AVE.

WHEREAS, a petition for a Planned Unit Development was received to for a mixed-use
development at the former Nims School at 1161 W Southern Ave; and,

WHEREAS, a planned unit development will allow for mixed-use development; and,

WHEREAS, proper notice was given by mail and publication and public hearings were held by
the City Planning Commission and by the City Commission to consider said petition, during
which all interested persons were given an opportunity to be heard in accordance with provisions
of the Zoning Ordinance and State Law; and

WHEREAS, the Planning Commission and staff have recommended approval of the Preliminary
and Final Planned Unit Development and associated site plan; and

NOW, THEREFORE, BE IT RESOLVED that the recommendation by staff and the Planning
Commission be accepted and the preliminary and final Planned Unit Development is hereby
approved.

Adopted this 13th day of June, 2017

       Ayes:

       Nays:

       Absent:

                                              By:
                                                    Stephen J. Gawron
                                                    Mayor


                                              Attest:
                                                        Ann Marie Cummings
                                                        Clerk, City of Muskegon
                       CERTIFICATE (Final PUD 1161 W Southern Ave)

        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 a
resolution adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the 13th day of June, 2017, 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.

DATED: ___________________, 2017.               _______________________________________
                                                Ann Marie Cummings
                                                Clerk, City of Muskegon
EXECUTIVE SUMMARY
AvaSure proposes to add to its operating facilities in the form of acquisition and expansion
into the two facilities mentioned below in Muskegon. As a resident of the Muskegon area
and an entrepreneur, personally I have interest in the welfare of this area and growing my
company here is a first step in a broader effort of contribute to the Muskegon area economic
vitality. A number of organizations and are planned for these facilities.
Thematically, the eventual interior design of these buildings will be in the motif of the
historical use of the buildings – that is – learning and wonder through the eyes of a child.
Many of the plans below involve forward thinking, further operationalization &
implementation and business execution. Naturally there will be a risk quotient attached to
them. But as a business entrepreneur and pragmatic realist, I am confident that with &
through the success of AvaSure, and with the early partnerships started with the City of
Muskegon, Community encompass, Muskegon County, C3/Fresh Start & others, we will
continue to align and enable a multi-faceted organization to support these and other
additional ideas and endeavors.


CURRENT AVASURE FACILITIES
AvaSure Grand Rapids - 90,000 FT2
5801 Safety Dr Belmont, MI
Employees - 95
AvaSure develops, markets and manufactures technology based clinically innovative
patient safety, communication & work flow solutions for the global healthcare market. It
will continue its operation at it Belmont, MI facility. Office space will expand to Muskegon
Nims facility.
www.avasure.com
                              AGENDA ITEM NO. _______________
                      CITY COMMISSION MEETING _________________________




TO:        Honorable Mayor and City Commissioners

FROM:      Frank Peterson, City Manager

DATE:      June 7, 2017

RE:        Neighborhood Empowerment Program


SUMMARY OF REQUEST:


Staff and City Commissioners have worked hard to encourage strong and vibrant neighborhoods.
One of our greatest assets is to accomplish this is our neighborhood associations. This program is
designed to empower neighborhoods to get more involved in activities that beautify their
neighborhood, engage neighbors, provide positive activities for children, and otherwise improve
quality of life within the neighborhood. This grant program builds on the current neighborhood grant
program and provides opportunities for neighborhood groups to raise additional funds to make
investments in their neighborhoods.


FINANCIAL IMPACT:
$100,000-$150,000 annually.


BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
To adopt the Neighborhood Empowerment Program and encourage neighborhood associations to
utilize the program as a tool to help guide the development and improvement of their neighborhood.


COMMITTEE RECOMMENDATION:
         2017-18 NEIGHBORHOOD
       EMPOWERMENT PROGRAM

A NEIGHBORHOOD ACTIONPLAN ADOPTED BY
        THE MUSKEGON CITY COMMISSION:
PURPOSE
Strong and active neighborhoods are a key component of a successful and vibrant Muskegon.
Our neighborhoods help drive quality of life, as they can help provide activities that engage
residents, improve living conditions, provide social opportunities, and positively affect crime.
Accordingly, this program is designed to empower neighborhood groups to become more
active as a means to access city funds to invest in the quality of life activities that they believe
will improve their neighborhood.
PROPOSED PROGRAMMING
Active neighborhoods associations will be eligible to receive funds from the City of Muskegon
in three ways: Neighborhood Grants, Enhanced Neighborhood Grants, and Earned
Neighborhood Grants.
Neighborhood Grants
All active neighborhood associations are eligible to receive a $1,500 Neighborhood Grant
annually. An active neighborhood association is defined as a neighborhood association that
accomplishes all of the following in a given year:
    1. Holds at least two general membership meetings per year.
    2. Holds at least two additional board meetings per year.
    3. Has a board member in attendance of at least 6 Neighborhoods of Muskegon (NAM)
       meetings each calendar year.
    4. Prepares and delivers at least two neighborhood association newsletters per year.
    5. Actively participates in the City’s designated National Night Out event by hosting a
       National Night Out activity within the boundaries of the neighborhood.
    6. Holds at least two community dumpster day events within the boundaries of the
       neighborhood.

These Neighborhood Grant Dollars are available January 1 of each year, and must be spent on
community-related purchases or activities. These funds may not be rolled over from year-to-
year.

Enhanced Neighborhood Grants
All active neighborhood associations are also eligible to receive up to $3,000 in Enhanced
Neighborhood Grants annually. To be eligible for the Enhanced Neighborhood Grant, the
neighborhood association must undertake a fundraising campaign (raising at least $250 of
private donations for the neighborhood association), and undertake a number of the
following events/activities in a given year:
    1. Create a neighborhood Facebook Page and actively maintain the page with
       neighborhood events, activities, and news.
    2. Submit two articles on topics of importance to the neighborhood to the Community
       and Neighborhood Services Department for use in the city’s annual newsletter.
    3. Hold one family-related event during the months of June or July



                                                                                                  1
   4. Hold one family-related event during the months of September or October
   5. Hold one family-related event during the months of March, April or May
   6. Expend $250 and invest 50 volunteer hours in maintenance/repairs/beautification of
       a community park
   7. Undertake a community beautification project (not-park-related).
   8. Sponsor a youth recreation activity that reaches/involves at least 50 Muskegon
       youths collectively. Examples include coaching, sponsoring, or organizing little
       league teams, soccer teams, football teams, water-safety related events, etc.
   9. Volunteer to paint 15 or more fire hydrants in your neighborhood (city to provide
       paint, brushes, etc.).
   10. Undertake at least 40 volunteer hours at the Muskegon Farmers Market.
   11. Graduate at least one board member from Muskegon Citizen Police Academy.
   12. Implement a neighborhood beautification program that acknowledges efforts by
       property owners to beautify their property, with at least one owner highlighted in
       each neighborhood association newsletter.
   13. Implement a neighborhood beautification program that acknowledges efforts by
       renters to beautify the neighborhood, with at least one renter highlighted in each
       neighborhood association newsletter.
   14. Implement a neighborhood beautification program that acknowledges efforts by
       business owners/operators to beautify the neighborhood, with at least one business
       owner/operator highlighted in each neighborhood association newsletter.
   15. Demonstrate that one neighborhood members is actively serving on at least one City
       Board or Commission, or is actively serving on the NAM Annual Picnic planning
       committee.

Successfully undertaking up to three events/activities:       $750
Successfully undertaking four or more events/activities:      $1,250
Successfully undertaking seven or more events/activities:     $2,000
Successfully undertaking ten of more events/activities:       $3,000
These Enhanced Neighborhood Grant Dollars are available January 1 of each year, and must
be spent on community-related purchases or activities. These funds may not be rolled over
from year-to-year.

Earned Neighborhood Grants
All active neighborhood associations are eligible to earn neighborhood grants by volunteering
to undertake certain beautification activities in the City of Muskegon, as follows:
   1. Adopt-A-Lot Program. The city has more than 300 publicly-owned orphan parcels of
      land spread throughout our neighborhoods. These pieces of property are generally
      maintained by the city on a three-week mowing schedule. In an effort to beautify our
      neighborhoods and raise the maintenance standards, an Adopt-A-Lot Program was
      established in 2015. The program is being extended to active neighborhoods as
      follows:



                                                                                           2
       a. There is no limit to the amount of lots that a neighborhood is eligible to adopt,
          nor is there a requirement that the adopted lots be located within the
          adopting neighborhood’s geographic boundaries. In the event that adoption
          requests exceed available lots, adoptions will be equalized throughout the
          requesting neighborhoods.
       b. Lots must be adopted prior to May 1 of each calendar year.
       c. Lots must be mowed throughout the mowing season (May-September) and
          be in compliance with local ordinances that call for a 6 inch maximum grass
          height.
       d. Trash must be removed from the lots weekly.
       e. Fallen Leaves must be removed from the lots by November 30 of each year.
       f.   A standard lot is between 30 and 60 feet in width. Lots with a width in excess
            of 60 feet will be compensated as multiple lots.
       g. The City will contribute $250 to the neighborhood for each lot adopted and
          successfully maintained, with payments disbursed as follows:
                i. The first payment ($100 for each adopted lot) will be made during the
                   city’s first billing cycle in the month of June.
                ii. The second payment ($150 for each adopted lot) will be made during
                    the city’s first billing cycle in the month of December.
               iii. Payments will not be made in the event code enforcement activities
                    are undertaken by the City’s Code Enforcement Department.
               iv. Repayment may be required in the event that lots are not kept up to
                   the city’s code enforcement standard.
2. Fundraising Match. The City will provide $500 in matching dollars to any active
   neighborhood association that successfully raises more than $1,500 of non-city funds
   for youth-related neighborhood activities. These matching dollars are only available
   to neighborhoods that have met the requirements to receive at least $2,000 in
   Enhanced Neighborhood Grants.
3. Specialized youth-related activities, such as day camps and field trip programs that
   have a great impact on more than one neighborhood may be eligible for up to $2,000
   in funding.
       a. Funding for such activities cannot exceed 50% of the total program cost.
       b. Day camp events must attract an average of 50 youth per day and operate at
          least four days per week for at least 12 hours per week, and the program must
          last at least six consecutive weeks.
       c. Field Trip events must attract at least 50 youth per event. There is no
          requirement that field trip events be held at a particular location, but special



                                                                                         3
                  consideration will be given to field trip events that partner with the following
                  Muskegon-based events/facilities:
                        i.   Lakehawks, Lumberjacks, Ironmen, or Risers sports teams
                       ii.   Muskegon Museum of Art
                      iii.   Muskegon Farmers Market
                      iv.    Muskegon Public Library
                       v.    Muskegon Heritage Museum
                      vi.    Lakeshore Museum Center
                     vii.    LST 393 Museum
                    viii.    Silversides Museum
                      ix.    Muskegon Winter Sports Complex

   4. Other beautification-related activities may be incentivized by the city on a case-by-
      case basis, depending on funding availability.
These Earned Neighborhood Grant Dollars must be spent on community-related purchases
or activities. They may be rolled over from year-to-year as the neighborhood association
saves funds for planned neighborhood needs/activities. Unless otherwise indicated above,
these grants funds will be released upon successful completion of the approved activity.
BUDGET


       Activity                            Number            Value            Budget

       Neighborhood Grants                    15            $1500            $22,500
       Enhanced Grants                        15            $2500            $37,500
       Earned Grants                                                         $40,000
       Total Program Budget                                                  $100,000




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