City Commission Packet 06-27-2017

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     CITY OF MUSKEGON
      CITY COMMISSION MEETING
            JUNE 27, 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:
□    CITY MANAGER’S REPORT:
□    CONSENT AGENDA:
     A. Approval of Minutes City Clerk
     B. One-Time or Occasional Users of Kitchen 242 – User Fee Change City
        Clerk
     C. 2017-2018 Muskegon High School Community Officer Agreement
        Public Safety
     D. Space Fruit, LLC Concession for City of Muskegon Parks     Department
        of Public Works
     E. Amendment to the Zoning Ordinance – Signage          Planning &
        Economic Development
     F. Rezoning Request for Several Properties to R-2, Single Family Medium
        Density Residential District Planning & Economic Development
     G. Rezoning Request for Several Properties to R-3, Single Family High
        Density Residential District Planning & Economic Development
     H. 2017 CDBG/HOME Budget Recommendations Community and
        Neighborhood Services
     I. ITEM REMOVED PER STAFF REQUEST
     J. Set Public Hearing for Amendment to Brownfield Plan – Liberty Building
        (Formerly Ameribank) Planning & Economic Development

                                       Page 1 of 2
□   PUBLIC HEARINGS:
       A. Request for an Industrial Facilities Exemption Certificate – Lakeside
          Surfaces Planning & Economic Development
       B. Request to Transfer Two Industrial Facilities Exemption Certificates to
          KLO Acquisition, LLC Planning & Economic Development
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
       A. Concurrence with the Housing Board of Appeals Notice and Order to
          Demolish     Public Safety
           533 Jackson Avenue
           1440 Jiroch Street
           1460 Hoyt Street
       B. Adoption of 2017-18 Proposed Budget                        Finance
       C. Change Order to add Harris Street Resurfacing from Sherman to
          Sundolphin to the Glenside, Sherman to Glen (H-1708)     Engineering
       D. Adopt Michigan DNR Grant Resolution                        Department of Public Works
       E. Hartshorn Marina Engineering Study                         Department of Public Works
       F. Sewer Rate Adjustment                   Finance
       G. 2017 Sanitation Service Fee Finance
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
►      Reminder: Individuals who would like to address the City Commission shall do the following:
►      Fill out a request to speak form attached to the agenda or located in the back of the room.
►      Submit the form to the City Clerk.
►      Be recognized by the Chair.
►      Step forward to the microphone.
►      State name and address.
►      Limit of 3 minutes to address the Commission.
►      (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

□ CLOSED SESSION:
       A. City Manager Evaluation
□ 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
Date:      June 20, 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 June 12, 2017
Worksession Meeting and the June 13, 2017 Regular City Commission
Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                              CITY OF MUSKEGON
                        CITY COMMISSION WORKSESSION

                               Monday, June 12, 2017
                                      5:30 p.m.
                        Muskegon City Commission Chambers
                       933 Terrace Street, Muskegon, MI 49440


                                 MINUTES
2017-45

Present:     Gawron, Hood (left at 8:43 p.m.), Warren (left at 8:40 p.m.), German,
             Rinsema-Sybenga, Johnson, and Turnquist

Absent:      None

The agenda was rearranged to allow discussion of the LC Walker Arena Concession
Point of Sale Contract with Digital Dining to the beginning of the meeting.

LC Walker Concession Point of Sale Contract
Frank Peterson, City Manager, presented information on the Digital Dining Program he
would like to implement at the Walker Arena. 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. This
item will be on the regular meeting agenda.


2017/18 Proposed Budget and Quarterly Reforecast
Frank Peterson, City Manager, presented information on the 2017-18 Proposed Budget
and 4th Quarter Reforecast highlighting the most significant changes. Department
Heads were in attendance and were able to participate in commenting and answering
Commissioners’ questions. Discussion took place regarding the 2017/18 proposed
budget.

Any Other Business
Frank Peterson, City Manager, discussed some potential changes to the terms of the
loan from the Cemetery Perpetual Care Fund loan that was approved on May 23, 2017
in order to get the best coverage for our investment and possibly be eligible for grant
funds. Discussion took place regarding the terms of the loan from the Community
Foundation – Cemetery Perpetual Care Fund.




                                          1 of 1
Adjournment
Moved by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga, to
adjourn the meeting at 8:50 p.m.

                                              Respectfully Submitted,




                                              Ann Marie Meisch, MMC
                                              City Clerk




                                     1 of 2
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             JUNE 13, 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, June 13, 2017. Pastor
Matt Sharpe, 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., Dan Rinsema-Sybenga, and Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
INTRODUCTIONS/PRESENTATION:
      A. Recognition of Spring 2017 Citizen’s Academy Graduates
         Public Safety
Mayor, Stephen J. Gawron, read the resolution and thanked the 2017 Citizen’s
Police Academy for their faithful attendance, completion, and graduation from
the ten week academy.
2017-46     CONSENT AGENDA:
      A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the May 23, 2017 Regular
City Commission Meeting.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approval of the Minutes.
      C. Approval of a Neighborhood Enterprise Zone Certificate – 325 Terrace
         Point Circle – Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Eric and Michelle Ringelberg for the

                                        Page 1 of 8
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 home
for the next 12 years.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:          Approval of the NEZ certificate.
      D. Approval of a Neighborhood Enterprise Zone Certificate – 311 Terrace
         Point Circle – Planning & Economic Development
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.
      E. Authorization of Community Housing Development Organization
         (CHDO) Agreements – Community & Neighborhood Services
SUMMARY OF REQUEST: The Muskegon County Habitat for Humanity has
proposed to build (2) three-bedroom, single-family homes in the Nims
Neighborhood. 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
decisions last year.

                                        Page 2 of 8
STAFF RECOMMENDATION:           To direct Mayor and Clerk to sign agreements
COMMITTEE RECOMMENDATION:               Citizen District Council approved.
      G. 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 Agreement and authorize the
Mayor and City Clerk to sign.
      H. Cemetery Perpetual Care Fund – CFFMC             City Manager
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.

      J. Community Relations Committee Recommendation for Commission
         Opening City Clerk

                                           Page 3 of 8
SUMMARY OF REQUEST: To concur with the 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 appoint Jonathan Wilson
to the Housing Commission.

COMMITTEE RECOMMENDATION:           To accept the appointment by Frank
Peterson of Jonathan Wilson to the Housing Commission.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the consent agenda as presented, minus items B, F, and I.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
2017-47 ITEMS REMOVED FROM THE CONSENT AGENDA
      B. Special Event Request – Burning Foot Beer Festival at Pere Marquette
         Park - Planning
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 to 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 be 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.
Motion by Commissioner Turnquist, second by Commissioner Johnson to


                                         Page 4 of 8
approve the special event request from Burning Foot Beer Festival at Pere
Marquette Park.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None
MOTION PASSES
      F. Approval of the Fair Housing Agreement with Muskegon Heights and
         Norton Shores – Community & Neighborhood Services
SUMMARY OF REQUEST: The cities of Muskegon, Muskegon Heights, and 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.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:          To approve the Agreement and authorize the
Mayor to sign.
Motion by Commissioner Warren, second by Commissioner German to approve
the Fair Housing Agreement with Muskegon Heights and Norton Shores.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
      I. LC Walker Concession Point of Sale Contract     City Manager
SUMMARY OF REQUEST: The LC Walker arena concession 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 the 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, Inc. of Nunica, MI to
install and implement the Digital Dining Point of Sale System at the LC Walker

                                         Page 5 of 8
Arena, and to purchase all necessary equipment to accomplish the installation
and implementation.
Motion by Commissioner Johnson, second by Commissioner German to
authorize the City Manager to enter into a purchase agreement with Service
Integrated Systems, Inc. of Nunica, MI to install the Digital Dining Point of Sale
System at the LC Walker Arena, and to purchase all necessary equipment to
accomplish the installation and implementation.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
             Nays: None
MOTION PASSES
2017-48   PUBLIC HEARINGS:
      A. Transmittal of 2017-18 Proposed Budget – City Manager
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:            To hold the public hearing.
PUBLIC HEARING COMMENCED:
The following persons offered comments on the proposed budget:
Chris Drake, 1309 Randolph, City of Muskegon Firefighter – Representing Local
370 Union
Mike McPhail, 1345 Lake Dunes Drive – opposes cuts to Fire Department
Terri Gust, 86 N. Bear Lake Road – against cuts to Fire Department
Mr. Murphy, 436 Adams – against cuts to Fire Department
Ruby Clark, Marquette Neighborhood Association President – why cut – should
increase

                                           Page 6 of 8
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
             Nays: None
MOTION PASSES
2017-49      NEW BUSINESS:
      A. Defined Benefit Plan Amortization Extension Agreement – Finance
SUMMARY OF REQUEST: To approve the 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 Defined Benefit Plan Amortization
Extension Agreement and authorize the Mayor to sign the agreement.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the Defined Benefit Plan Amortization Extension Agreement and
authorize the Mayor to sign the agreement.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German
             Nays: None
MOTION PASSES
      B. Request for Approval of a Planned Unit Development at Former Nims
         School – Planning & Economic Development
SUMMARY OF REQUEST: Request for Final Planned Unit Development (PUD)
approval at the former Nims School located at 1161 W. Southern Avenue 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, 2017 Special Planning Commission Meeting.

                                            Page 7 of 8
Motion by Commissioner Johnson, second by Commissioner German, to
approve the Planned Unit Development at the former Nims School.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
      C. Neighborhood Empowerment Program City Manager
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.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to adopt the Neighborhood Empowerment Program.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist.
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: No public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:20 p.m.


                                            Respectfully Submitted,




                                            Ann Marie Meisch, MMC, City Clerk



                                        Page 8 of 8
Date:       June 20, 2017
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Meisch, City Clerk
RE:         One-Time or Occasional Users of Kitchen 242 – User
            Fee Change




SUMMARY OF REQUEST: Current fees for use of Kitchen 242 are $15 per
hour with a Security Deposit of $50. Staff is seeking City Commission approval
to amend the fee schedule for rental for one-time or occasional users to $25
per hour and the Security Deposit to $100, effective July 1, 2017.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the change in fees for one-time or
occasional users effective July 1, 2017.
Commission Meeting Date: June 27, 2017

Date:      June 9, 2017
To:        Honorable Mayor and City Commission
From:      Jeffrey Lewis, Director of Public Safety Office
RE:        2017 – 2018 Muskegon High School Community Officer
           Agreement
_____________________________________________________________________

SUMMARY OF REQUEST: To approve the 2017 – 2018 Muskegon High
School Community Officer Agreement. This agreement provides Muskegon
High School with a Community Officer during the nine months school is in
session.
FINANCIAL IMPACT: Muskegon Public Schools agrees to pay the City of
Muskegon $2,459.74 each month, from September 2017 through May 2018,
totaling $22,137.66.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the 2017 – 2018 Muskegon High
School Community Officer Agreement and authorize the Mayor to sign.
                              AGENDA ITEM NO._____________

                  CITY COMMISSION MEETING ___________________



TO:           Honorable Mayor and City Commission


FROM:         Department of Public Works


DATE:         June 27, 2017


SUBJECT:       Space Fruit LLC Concession Contract for City of Muskegon Parks.


SUMMARY OF REQUEST:
Staff is asking permission to enter into a 1-year contractual agreement with Bri Schott & Kelvin
Pearson of Space Fruit LLC, at Pere Marquette Park, located within the City of Muskegon, to
sell various Fruit Pearl items, as stated in their proposal, from a mobile concession trailer.


FINANCIAL IMPACT:
Concession revenue is 10% of gross receipts.


BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Authorize DPW staff to enter into concession agreement with Bri Schott and Kelvin Pearson of
Space Fruit LLC.


COMMITTEE RECOMMENDATION:
                  Commission Meeting Date: June 27, 2017




Date:         June 22, 2017
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Amendment to the Zoning Ordinance – Signage


SUMMARY OF REQUEST:

Staff-initiated request to amend Section 2334 of the zoning ordinance to amend the
rules on electronic message board signs and to allow them in B-1, Limited Business
Districts and WM, Waterfront Marine Districts, as well as at churches in all zoning
districts and all businesses that have been granted a special use permit in residential
districts.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

To approve the zoning ordinance amendment.

COMMITTEE RECOMMENDATION:

The Planning Commission unanimously recommended approval of the ordinance
amendment, with one member absent.
                                       Staff Report (EXCERPT)
                                          CITY OF MUSKEGON
                                       PLANNING COMMISSION
                                          REGULAR MEETING

Hearing, Case 2017-15: Staff-initiated request to amend Section 2334 of the zoning ordinance to amend the
rules on electronic message board signs and to allow them in B-1, Limited Business Districts and WM,
Waterfront Marine Districts, as well as at churches in all zoning districts and all business that have been
granted a special use permit in residential districts.

SUMMARY
   1. The Mart Dock, located at 560 Mart St (zoned Waterfront Marine), would like to install an electronic
      message board sign. However, these types of signs are prohibited in Waterfront Marine districts.
      They are also prohibited in B-1, Limited Business districts and at churches and approved businesses
      in residential zones.
   2. Electronic message board signs have been allowed by the zoning ordinance for over 10 years and
      staff has not received any major complaints on them.
   3. Staff has had to deny some electronic message board sign requests for some businesses and churches
      because of the current sign ordinance. Staff is requesting to allow these signs in more zoning districts
      to allow these churches and businesses to effectively promote themselves. There currently are some
      churches that are allowed to have electronic message board signs because they are located in business
      districts. However, most churches are located in residential districts.
   4. Where already allowed in the current ordinance, there is a provision that states “electronic message
      boards shall be dimmed at dusk.” This allows staff to enforce on the brightness of any sign that may
      possibly cause a nuisance to any residential uses at night. Staff has not had to enforce using this as of
      yet, but it is good to have if a problem ever arises.
   5. In addition to the electronic message board sign request, the Mart Dock also requested to have a 14’
      tall sign. Signs in Waterfront Marine districts are only allowed to be a maximum of 8’ tall. Staff
      feels that the ordinance is correct here for the most part, given that most Waterfront Marine districts
      are located in Lakeside, and we should limit the height of pole signs in this area to avoid blight and
      diminished lake views. However, an 8’ tall sign would be too small to notice for someone driving on
      Shoreline Dr at 55 MPH. Staff recommends allowing taller signs in these districts as long as the
      property has frontage on a highway.
                          Current Message Board Sign at Mart Dock




Electronic Message Boards Sign at Mount Zion Church (188 W Muskegon Ave). This property is
zoned Form Based Code, where these signs are allowed.
First Congregational Church (1201 Jefferson St).    This property is zoned R-1, where electronic
message board signs are not allowed.




          Various signs in Lakeside, where electronic message board signs are not allowed
This building was recently approved for a SUP to operate a restaurant in an R-1 district, where
electronic message boards are not allowed.
NEW LANGUAGE

Deletions are crossed out and additions are in bold.

   6. Permitted signs in all residential and mobile home park districts:

               a.     Entranceway monument signs are permitted for residential developments of up to
                      twelve (12) square feet. One sign for each major public road frontage may be
                      provided. Signs shall not exceed eight feet in height.

               b.     Internally illuminated monument signs of up to thirty-two (32) square feet, not
                      exceeding eight (8) feet in height, and internally lit wall signs up to twenty-four (24)
                      feet for lawful institutional uses such as churches and schools. [amended 7/06]

               c.     Legal business uses in residential districts are permitted signage as allowed in the B-1
                      zoning district, except for those uses otherwise addressed in this section. [amended
                      4/02]

               d.     One (1) non-illuminated wall sign of up to eight (8) square feet for a home occupation.
                      [amended 12/01]

               e.     Changeable copy or message boards shall be part of a fixed, permanent sign and shall
                      have rigid letters. Electronic message boards are prohibited.

               f.     Electronic message boards shall be permitted for all churches and businesses
                      granted a special use permit to operate in a residential district, provided:

                      1)      One electronic message board shall be permitted per premise.

                      2)      Electronic message boards shall be dimmed at dusk.

                      3)      Electronic message boards shall not be permitted for home businesses.


   8. Permitted signs in the B-1, Waterfront Marine Zone, Open Space Conservation, Open Space
      Recreation, and Lakefront Recreation:

       a.      Scope: Signs shall pertain exclusively to the business carried on within the building.

       b.      Lighting: Signs may be illuminated, but no flashing or moving illumination shall be permitted.

       c.      Number: One monument sign is permitted per property regardless of the number of
               businesses there. Properties with frontage on Muskegon Lake are permitted an additional
               monument or pole sign on the water frontage only.
d.   Wall, Awning or Braquet Signs, Size: Signs shall not exceed ten (10) percent of the surface
     area of the commercial portion of the front building and may be placed on any wall. In the
     case where the building is over one hundred feet (100’) from the road, this allotment may be
     15% of the front face of the storefront. In the case where the building is over 300 feet from
     the road, this allotment may be 20% of the front face of the storefront. In the case where the
     property has parallel frontage on at least one major street or corner frontage on at least one
     major street, this allotment may be 15% of the front face of the storefront.

e.   Wall, Awning or Braquet Signs, Placement: Signs shall be placed against the principal
     building or on a canopy. Signs shall not project above the roof line or cornice. No wall sign
     shall interrupt or conceal the architectural details of a building. A sign attached to a mansard
     shall be considered a wall sign.

f.   Changeable copy or message boards shall be part of a fixed, permanent sign and shall have
     rigid letters. Electronic message boards are prohibited.

g.   Electronic message boards, provided:

            1)     One electronic message board shall be permitted per premise.
            2)     Electronic message boards shall be dimmed at dusk.

h.   Free-standing signs:

     1) Setback: The leading edge of the sign must be out of the public right-of-way. Signs must
        be a minimum of 10 feet from a neighboring sign.

     2) Clear vision: Signs shall not obstruct clear vision requirements for motorists.

     3) Area and height: Signs shall comply with the area requirements of Table II and shall not
        exceed eight feet (8’) in height. However, any parcel with frontage on a highway shall
        be allowed to follow the height restrictions of Table II.
                                           CITY OF MUSKEGON

                                    MUSKEGON COUNTY, MICHIGAN

                                          ORDINANCE NO._____

An ordinance to amend section 2334 of the zoning ordinance to modify the rules on electronic message
board signs and to allow them in B-1, Limited Business Districts and WM, Waterfront Marine
Districts, as well as at churches in all zoning districts and all business that have been granted a special
use permit in residential districts.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

NEW LANGUAGE

Deletions are crossed out and additions are in bold.

   6. Permitted signs in all residential and mobile home park districts:

               a.     Entranceway monument signs are permitted for residential developments of up to
                      twelve (12) square feet. One sign for each major public road frontage may be
                      provided. Signs shall not exceed eight feet in height.

               b.     Internally illuminated monument signs of up to thirty-two (32) square feet, not
                      exceeding eight (8) feet in height, and internally lit wall signs up to twenty-four (24)
                      feet for lawful institutional uses such as churches and schools. [amended 7/06]

               c.     Legal business uses in residential districts are permitted signage as allowed in the B-1
                      zoning district, except for those uses otherwise addressed in this section. [amended
                      4/02]

               d.     One (1) non-illuminated wall sign of up to eight (8) square feet for a home occupation.
                      [amended 12/01]

               e.     Changeable copy or message boards shall be part of a fixed, permanent sign and shall
                      have rigid letters. Electronic message boards are prohibited.

               f.     Electronic message boards shall be permitted for all churches and businesses
                      granted a special use permit to operate in a residential district, provided:

                      4)      One electronic message board shall be permitted per premise.

                      5)      Electronic message boards shall be dimmed at dusk.

                      6)      Electronic message boards shall not be permitted for home businesses.
8. Permitted signs in the B-1, Waterfront Marine Zone, Open Space Conservation, Open Space
   Recreation, and Lakefront Recreation:

   a.     Scope: Signs shall pertain exclusively to the business carried on within the building.

   b.     Lighting: Signs may be illuminated, but no flashing or moving illumination shall be permitted.

   c.     Number: One monument sign is permitted per property regardless of the number of
          businesses there. Properties with frontage on Muskegon Lake are permitted an additional
          monument or pole sign on the water frontage only.

   d.     Wall, Awning or Braquet Signs, Size: Signs shall not exceed ten (10) percent of the surface
          area of the commercial portion of the front building and may be placed on any wall. In the
          case where the building is over one hundred feet (100’) from the road, this allotment may be
          15% of the front face of the storefront. In the case where the building is over 300 feet from
          the road, this allotment may be 20% of the front face of the storefront. In the case where the
          property has parallel frontage on at least one major street or corner frontage on at least one
          major street, this allotment may be 15% of the front face of the storefront.

   e.     Wall, Awning or Braquet Signs, Placement: Signs shall be placed against the principal
          building or on a canopy. Signs shall not project above the roof line or cornice. No wall sign
          shall interrupt or conceal the architectural details of a building. A sign attached to a mansard
          shall be considered a wall sign.

   f.     Changeable copy or message boards shall be part of a fixed, permanent sign and shall have
          rigid letters. Electronic message boards are prohibited.

   g.     Electronic message boards, provided:

                 1)     One electronic message board shall be permitted per premise.
                 2)     Electronic message boards shall be dimmed at dusk.

   h.     Free-standing signs:

          1) Setback: The leading edge of the sign must be out of the public right-of-way. Signs must
             be a minimum of 10 feet from a neighboring sign.

          2) Clear vision: Signs shall not obstruct clear vision requirements for motorists.

          3) Area and height: Signs shall comply with the area requirements of Table II and shall not
             exceed eight feet (8’) in height. However, any parcel with frontage on a highway shall
             be allowed to follow the height restrictions of Table II.
This ordinance adopted:

Ayes:______________________________________________________________

Nayes:_____________________________________________________________

Adoption Date:

Effective Date:

First Reading:

Second Reading:

                                            CITY OF MUSKEGON

                                            By: _________________________________
                                                   Ann Meisch, MMC, City Clerk
                                           CERTIFICATE

        The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted
by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the
27th 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 the
Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and that minutes were kept
and will be or have been made available as required thereby.

DATED: ___________________, 2017.               __________________________________________
                                                Ann Meisch, MMC
                                                Clerk, City of Muskegon



Publish:        Notice of Adoption to be published once within ten (10) days of final adoption.
                                             CITY OF MUSKEGON
                                             NOTICE OF ADOPTION

Please take notice that on June 27, 2017, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2334 of the zoning ordinance to amend the rules on electronic
message board signs and to allow them in B-1, Limited Business Districts and WM, Waterfront
Marine Districts, as well as at churches in all zoning districts and all business that have been
granted a special use permit in residential districts. Copies of the ordinance may be viewed and
purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street,
Muskegon, Michigan, during regular business hours.

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

Published ____________________, 2017.                              CITY OF MUSKEGON

                                                                   By _________________________________
                                                                         Ann Meisch, MMC
                                                                         City Clerk

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

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

Account No. 101-80400-5354




                                                                                                                        12
                   Commission Meeting Date: June 27, 2017



Date:        June 22, 2017
To:          Honorable Mayor and City Commissioners
From:        Planning & Economic Development
RE:          Rezoning request for several properties to R-2, Single Family
             Medium Density Residential District


SUMMARY OF REQUEST:

Staff initiated request to rezone several properties from R-1, Single Family Low Density
Residential District 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 June 15
meeting, with one member absent.




                                                                                      1
2
                                CITY OF MUSKEGON

                             MUSKEGON COUNTY, MICHIGAN

                                 ORDINANCE NO.

 An ordinance to amend the zoning map of the City to provide for a zone change for several
          properties to R-2, Single Family Medium Density Residential District.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

The zoning map of the City of Muskegon is hereby amended to change the zoning for several
properties (see map) to R-2, Single Family Medium Density Residential District.


This ordinance adopted:

Ayes:

Nayes:

Adoption Date:

Effective Date:

First Reading:

Second Reading:

                                                  CITY OF MUSKEGON

                                                  By: __________________________
                                                         Ann Meisch, MMC
                                                         City Clerk




                                                                                             3
                                          CERTIFICATE
    (Rezoning of several properties to R-2, Single Family Medium Density Residential District)

The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the 27th day of 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 the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and
that minutes were kept and will be or have been made available as required thereby.

DATED: ___________________, 2017              ________________________________
                                              Ann Meisch, MMC
                                              Clerk, City of Muskegon



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




                                                                                                     4
                                             CITY OF MUSKEGON
                                            NOTICE OF ADOPTION

Please take notice that on June 27, 2017, the City Commission of the City of Muskegon adopted an
ordinance amending the zoning map to provide for the change of zoning for several properties (see
map) to R-2, Single Family Medium Density Residential District.

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

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

Published ____________________, 2017                           CITY OF MUSKEGON

                                                               By ___________________________
                                                                     Ann Meisch, MMC
                                                                     City Clerk

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

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

Account No. 101-80400-5354




                                                                                                                        5
                   Commission Meeting Date: June 27, 2017



Date:        June 22, 2017
To:          Honorable Mayor and City Commissioners
From:        Planning & Economic Development
RE:          Rezoning request for several properties to R-3, Single Family High
             Density Residential District


SUMMARY OF REQUEST:

Staff initiated request to rezone several properties from R-1, Single Family Low Density
Residential District 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 June 15
meeting, with one member absent.




                                                                                      1
2
                                CITY OF MUSKEGON

                             MUSKEGON COUNTY, MICHIGAN

                                 ORDINANCE NO.

 An ordinance to amend the zoning map of the City to provide for a zone change for several
            properties to R-3, Single Family High Density Residential District.

THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:

The zoning map of the City of Muskegon is hereby amended to change the zoning for several
properties (see map) to R-3, Single Family High Density Residential District.


This ordinance adopted:

Ayes:

Nayes:

Adoption Date:

Effective Date:

First Reading:

Second Reading:

                                                  CITY OF MUSKEGON

                                                  By: __________________________
                                                         Ann Meisch, MMC
                                                         City Clerk




                                                                                             3
                                          CERTIFICATE
      (Rezoning of several properties to R-3, Single Family High Density Residential District)

The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County,
Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance
adopted by the City Commission of the City of Muskegon, at a regular meeting of the City
Commission on the 27th day of 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 the Michigan Zoning Enabling Act, Public Acts of Michigan No. 33 of 2006, and
that minutes were kept and will be or have been made available as required thereby.

DATED: ___________________, 2017              ________________________________
                                              Ann Meisch, MMC
                                              Clerk, City of Muskegon



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




                                                                                                     4
                                             CITY OF MUSKEGON
                                            NOTICE OF ADOPTION

Please take notice that on June 27, 2017, the City Commission of the City of Muskegon adopted an
ordinance amending the zoning map to provide for the change of zoning for several properties (see
map) to R-3, Single Family High Density Residential District .

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

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

Published ____________________, 2017                           CITY OF MUSKEGON

                                                               By ___________________________
                                                                     Ann Meisch, MMC
                                                                     City Clerk

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

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

Account No. 101-80400-5354




                                                                                                                        5
Commission Meeting Date: June 27, 2017


Date:      June 20, 2017
To:        Honorable Mayor and City Commission
From:      Community and Neighborhood Services Department (CNS)
RE:       2017 CDBG/HOME Budget Recommendations
______________________________________________________________


SUMMARY OF REQUEST: To accept the 2017 Budget recommendations
from Citizens District Council for CDBG/HOME Allocations.


FINANCIAL IMPACT: Budget will be published for release of funds request.


BUDGET ACTION REQUIRED: To finalize the budget for the CNS
department and direct staff to publish approved 2017 CDBG/HOME Allocation
and Budget for Release of Funds and Environmental Review of Projects.


STAFF RECOMMENDATION: To accept and approve the recommended
2017 CDBG and HOME Budgets from Citizens District Council.


COMMITTEE RECOMMENDATION: The Citizens District Council has made
their recommendations. (See attached spreadsheet)
CDBG Organization/Agency          Activity                                       2016 Budget      2017 Proposed       2017 CDC Proposed
COM - Affirmative Action          Affirmative Action**                                  $10,000 $         9,700.00    $          10,000.00
COM - Affirmative Action          Youth Opportunities/Summer Internships                     $0 $              -      $           5,000.00
COM - CNS                         CDBG Admin **                                $    167,332.00 $        162,312.04    $         164,308.00
COM - CNS                         Priority Home Repair                                 $235,790 $       228,716.46    $         210,883.00
COM - CNS                         Services Delivery                                     $75,000 $        72,750.00    $          72,750.00
COM - CNS                         Vinyl Siding                                          $50,000 $        48,500.00    $          48,500.00
COM - CNS                         Target Neighborhood                                        $0                  $0                      $0
COM - CNS                         Neighborhood Grants                                        $0 $              -                         $0
COM - Finance                     Fire Station Bond Repayment                          $133,540 $       129,533.64    $         133,401.00
COM - Inspections                 Dangerous Bldgs - Demolition                          $50,000 $        48,500.00    $          48,500.00
COM - Inspections                 Dangerous Bldgs - Board-Ups                           $10,000 $         9,700.00    $           9,700.00
COM - Leisure Services            Youth Recreation*                                     $70,000 $        67,900.00    $          90,000.00
COM - Planning                    Code Enforcement                                      $50,000 $        48,500.00    $          48,500.00
Love INC - Ramps                  Special Projects/Community Based Org.*                     $0 $              -                         $0
Love INC - Utility Assistance     Special Projects/Community Based Org *                     $0 $              -                         $0
COM - Engineering                 Streets                                               $35,000 $        33,950.00    $          30,000.00
                                                        Total CDBG Request             $886,662 $       860,062.14    $         871,542.00
                                                       Total CDBG Allocated            $886,662
                                Expected program income (Debt Recovery)                      $0
NOTE:                                                                    Total         $886,662
* Public Service                                  Allocated/Request Difference              $0
** City CDBG Administration
                                              Total Amt of Public Service*           $70,000
                                        Public Service maximum Amt 15%              $132,999
                                                                Difference          $62,999
                                Total Amt of City Administration Request**         $167,332
                                       Administrative Maximum Amt < 20%          $177,332.40
                                                                 Difference         $10,000
HOME Organization/Agency     Activity                                      2016 Budget        2017 Proposed     2017 CDC Proposed
CHDO Allocation              Housing Affordable Units****                       $39,428   $         38,245.16    $         37,431.00
CHDO Administration          Administration                                      $2,137   $          2,072.89    $          2,072.89
COM - CNS                    HOME Administration***                             $26,285   $         25,496.45    $         24,953.70
COM - CNS                    HOME Infill/New Construction                      $150,000   $        145,500.00    $        145,079.41
COM - CNS                    HOME Rental Rehabilitation                         $45,000   $         43,650.00    $         40,000.00
COM - CNS                    HOME Rehab Construction *                               $0   $               -
COM - CNS                    HOME Homebuyer Assistance *                             $0   $               -
                                                   Total HOME Request          $262,850   $        254,964.50   $         249,537.00
                                                 Total HOME Allocated          $264,277
                                                    (+) Program Income               $0
NOTE:                                                              Total       $264,277
*** Home Administration                     Allocated/Request Difference         $1,427
**** CHDO Request
* To be funded from Program Income
                                 Total Amt of HOME Administration***            $26,285
                                         Total Amt Designated = 10%             $26,864
                                                           Difference             $579

                                        Total Amt of HOME CHDO ****             $41,565
                                         Total Amt mandated >/= 15%             $39,642
                                                          Difference             $1,923
             Commission Meeting Date: June 27, 2017




Date:         June 20, 2017
To:           Honorable Mayor & City Commission
From:         Planning & Economic Development Department
RE:           Set Public Hearing for Amendment to Brownfield
              Plan- Liberty Building (formerly Ameribank)


SUMMARY OF REQUEST: To approve the attached resolution setting a public
hearing for an amendment for the Brownfield Plan, and notifying taxing jurisdictions
of the Brownfield Plan Amendment including the opportunity to express their views
and recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property which will be purchased by Liberty
Development, LLC, located at 880 First Street, in the Brownfield Plan.

FINANCIAL IMPACT: Brownfield Tax Increment Financing will be used to reimburse
the developer and the City for “eligible expenses” incurred in association with
development of the Liberty project, which is approximately $2,564,280. Liberty
Development, LLC cost for the development of the property is approximately $6.85
million in private investment, resulting in a substantial increase in the local and school
taxes generated by the property.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To approve the attached resolution and authorize the
Mayor and Clerk to sign the resolution.

COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met
on June 15, 2017 and approved the Brownfield Plan Amendment and recommends
the approval of the Brownfield Plan Amendment to the Muskegon City Commission.
               RESOLUTION NOTIFYING TAXING UNITS,
                   MICHIGAN STRATEGIC FUND;
             AND CALLING PUBLIC HEARING REGARDING
    APPROVAL OF AMENDMENTS TO THE BROWNFIELD PLAN OF THE
    CITY OF MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY


                                  City of Muskegon
                            County of Muskegon, Michigan
                       ___________________________________

       Minutes of a Regular Meeting of the City Commission of the City of

Muskegon, County of Muskegon, Michigan (the "City"), held in the City offices, on

the 27th day of June, 2017 at 5:30 o'clock p.m., prevailing Eastern Time.

PRESENT:

Members__________________________________________________________

__________________________________________________________________

ABSENT:       Members

__________________________________________________________________

       The following preamble and resolution were offered by Member

_________________ and supported by Member _________________:

       WHEREAS, the City of Muskegon, County of Muskegon, Michigan (the

"City") is authorized by the provisions of Act 381, Public Acts of Michigan, 1996, as

amended ("Act 381"), to create a brownfield redevelopment authority; and

       WHEREAS, pursuant to Act 381, the City Commission of the City duly

established the City of Muskegon Brownfield Redevelopment Authority (the

"Authority"); and
       WHEREAS, in accordance with the provisions of Act 381, the Authority has

prepared and approved Brownfield Plan Amendments to include the Liberty

Building Project, and

       WHEREAS, the Authority has forwarded the Brownfield Plan Amendments

to the City Commission requesting its approval of the Brownfield Plan Amendments

and

       WHEREAS, prior to approval of the Brownfield Plan Amendments, the

Muskegon City Commission desires to hold a public hearing in connection with

consideration of the Brownfield Plan Amendments as required by Act 381; and

       WHEREAS, prior to approval of the Brownfield Plan Amendments, the City

Commission is required to provide notice and a reasonable opportunity to the taxing

jurisdictions levying taxes subject to capture and the Michigan Strategic Fund

(MSF) to express their views and recommendations regarding the Brownfield Plan

Amendments.

       NOW, THEREFORE, BE IT RESOLVED THAT:

       1.     The City Commission hereby acknowledges receipt of the Brownfield

Plan Amendments from the Authority and directs the City Clerk to send notice of

the proposed Brownfield Plan Amendments to the governing body of each taxing

jurisdiction in the City and the MSF notifying them of the City Commission's

intention to consider approval of the Brownfield Plan Amendments [after the public

hearing described below]; and that a copy of the Plan is available for public

inspection at the Muskegon City Clerk’s Office.
       2.     A public hearing is hereby called on the 11th of July, 2017 at 5:30

p.m., prevailing Eastern Time, in the City Hall Commission Chambers to consider

adoption by the City Commission of a resolution approving the Brownfield Plan

Amendments.

       3.     The City Clerk shall notice said public hearing. The notice shall be

not less than 10 days before the date set for the public hearing

       4.     The notice of the hearing shall be in substantially the following form:



                             CITY OF MUSKEGON
                   COUNTY OF MUSKEGON, STATE OF MICHIGAN


 PUBLIC HEARING ON AN AMENDMENT TO THE MUSKEGON BROWNFIELD
    PLAN, AS APPROVED BY THE CITY OF MUSKEGON BROWNFIELD
                  REDEVELOPMENT AUTHORITY


TO ALL INTERESTED PERSONS IN THE CITY OF MUSKEGON:

        PLEASE TAKE NOTICE that the Muskegon City Commission of the City of
Muskegon, Michigan, will hold a public hearing on July 11, 2017, at 5:30 p.m.,
prevailing Eastern Time in the City Hall Commission Chambers located at 933
Terrace Street, Muskegon, Michigan, to consider the adoption of a resolution
approving a Brownfield Plan Amendment for the City of Muskegon Brownfield
Redevelopment Authority pursuant to Act 381 of the Public Acts of Michigan of
1996, as amended.

       The property to which the proposed Brownfield Plan Amendment applies is:

                       Liberty Building Project
                           880 First Street
                     Muskegon, Michigan 49440
Copies of the proposed Brownfield Plan Amendment are on file at the office of the
City Clerk for inspection during regular business hours.

       At the public hearing, all interested persons desiring to address the City
Commission shall be afforded an opportunity to be heard in regard to the approval
of the Brownfield Plan Amendments for the City of Muskegon Brownfield
Redevelopment Authority. All aspects of the Brownfield Plan Amendments will be
open for discussion at the public hearing.

      FURTHER INFORMATION may be obtained from the City Clerk.

     This notice is given by order of the City Commission of the City of
Muskegon, Michigan.


                                        _____________________________
                                        Ann Marie Meisch, City Clerk
        5.    All resolutions and parts of resolutions insofar as they conflict with

the provisions of this resolution be and the same hereby are rescinded.

AYES:        Members

__________________________________________________________________

__________________________________________________________________

NAYS:        Members

__________________________________________________________________

RESOLUTION DECLARED ADOPTED.



                                         _____________________________
                                         Ann Marie Meisch, City Clerk
      I hereby certify that the foregoing is a true and complete copy of a resolution

adopted by the City Commission of the City of Muskegon, County of Muskegon,

State of Michigan, at a regular meeting held on June 27, 2017, and that said

meeting was conducted and public notice of said meeting was given pursuant to

and in full compliance with the Open Meetings Act, being Act 267, Public Acts of

Michigan, 1976, as amended, and that the minutes of said meeting were kept and

will be or have been made available as required by said Act.



                                         _____________________________
                                         Ann Marie Meisch, City Clerk
MUSKEGON BROWNFIELD REDEVELOPMENT AUTHORITY




BROWNFIELD PLAN
AMENDMENT
880 1st Street, Muskegon, Michigan 49440



         PREPARED FOR    Muskegon Brownf eld Redevelopment Authority
                         933 Terrace Street
                         Muskegon, Michigan 49440
                         Contact Person: Mike Franzak
                         Email: mike.franzak@shorelinecity.com
                         Phone: (231) 724-6982

          PREPARED BY    AKT Peerless
                         25 Ionia Avenue
                         Grand Rapids, Michigan 49503
                         Contact Person: Dan Wells
                         Email: wellsd@aktpeerless.com
                         Phone: (616) 608-0229

             PROJECT #   12237F

         REVISION DATE   June 14, 2017

        BRA APPROVAL
        CITY APPROVAL
Table of Contents

1.0       INTRODUCTION ........................................................................................................................... 4

2.0       GENERAL PROVISIONS ................................................................................................................. 4
             2.1     DESCRIPTION OF ELIGIBLE PROPERTY (SECTION 13 (L)(H) ...................................................... 5
             2.2     BASIS OF ELIGIBILITY (SECTION 13 (1)(H) , SECTION 2 (M)), SECTION 2(R)............................. 5
             2.3     SUMMARY OF ELIGIBLE ACTIVITIES AND DESCRIPTION OF COSTS (SECTION 13 (1)(A),(B)) ... 5
             2.4     ESTIMATE OF CAPTURED TAXABLE VALUE AND TAX INCREMENT REVENUES (SECTION
                     13(1)(C)); IMPACT OF TAX INCREMENT FINANCING ON TAXING JURISDICTIONS (SECTION
                     13(1)(G), SECTION 2(EE)) ........................................................................................................ 7
             2.5     PLAN OF FINANCING (SECTION 13(1)(D)); MAXIMUM AMOUNT OF INDEBTEDNESS
                     (SECTION 13(1)(E)) .................................................................................................................. 8
             2.6     DURATION OF BROWNFIELD PLAN (SECTION 13(1)(F)) .......................................................... 8
             2.7     EFFECTIVE DATE OF INCLUSION IN BROWNFIELD PLAN ......................................................... 8
             2.8     DISPLACEMENT/RELOCATION OF INDIVIDUALS ON ELIGIBLE PROPERTY (SECTION 13(1)(I-L))
                     ................................................................................................................................................ 8
             2.9     LOCAL SITE REMEDIATION REVOLVING FUND (“LSRRF”) (SECTION 8, SECTION 13(1)(M)) ..... 9
             2.10 OTHER INFORMATION............................................................................................................. 9

ATTACHMENTS
A. achment A ...................................................................................................... Site Maps and Photographs
            Figure 1 – Scaled Property Loca on Map
            Figure 2 – Eligible Property Boundary Map

A achment B ...................................................................................................................... Legal Descrip on
A achment C ........................................................................................................................................ Tables
            Table 1 – Eligible Ac vi es
            Table 2 – Tax Increment Revenue Es mates
            Table 3 – Reimbursement Alloca on Schedule




I
PROJECT SUMMARY
                PROJECT NAME           Liberty Building - Redevelopment and Reuse of
                                       Proper es Located at 880 1st Street, Muskegon,
                                       Michigan

                    DEVELOPER          Liberty Development, LLC
                                       272 West Clay Avenue PO Box 732
                                       Muskegon, Michigan 49440
                                       Gary Post
                                       (231) 578-2033

 ELIGIBLE PROPERTY LOCATION            The Eligible Property is located at 880 1st Street,
                                       Muskegon, Michigan. Parcel ID Number 61-24-205-310-
                                       0012-00.

   TYPE OF ELIGIBLE PROPERTY           Facility

              SUBJECT PROJECT          The Liberty Building Redevelopment Project (Project)
                 DESCRIPTION           consists of the redevelopment of the subject property,
                                       which is located at 880 1st Street in the City of
                                       Muskegon. This Project will include the rehabilita on of
                                       the exis ng 54,122-square foot, 5-story commercial
                                       building. The building will be rehabilitated to
                                       accommodate f rst f oor retail tenants, second and third
                                       f oor commercial office tenants, and fourth and f h
                                       f oor residen al condominiums. The redevelopment
                                       plans also include the incorpora on of underground
                                       parking. This Project will ul mately put the
                                       underu lized property back to produc ve use and
                                       return it to the City’s tax rolls.

                                       The Project is seeking approval of Tax Increment
                                       Financing (TIF). Rehabilita on and construc on are
                                       expected to begin in late winter of 2017.

            ELIGIBLE ACTIVITIES        Department Specif c Ac vi es, Demoli on, Lead and
                                       Asbestos Survey and Abatement, Site Prepara on,
                                       Infrastructure Improvements, and Prepara on of a
                                       Brownf eld Plan and Act 381 Work Plan.

  DEVELOPER’S REIMBURSABLE             $ 1,161,853 (Est. Eligible Ac vi es & Con ngency)
                     COSTS             $ 780,011 (Interest)
                                       $ 1,941,864




BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                    Page 1
REVISION DATE: JUNE 14, 2017
     MAXIMUM DURATION OF               30 years
                CAPTURE

     ESTIMATED TOTAL CAPITAL
                INVESTMENT             $6.85 million

        INITIAL TAXABLE VALUE          $0 (City Owned)




BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI           Page 2
REVISION DATE: JUNE 14, 2017
LIST OF ACRONYMS AND DEFINITIONS
                            BEA        Baseline Environmental Assessment (Michigan process
                                       to provide new property owners and/or operators with
                                       exemp ons from environmental liability)
                  BFP OR PLAN          Brownf eld Plan
                   DEVELOPER           Liberty Development, LLC
            ELIGIBLE PROPERTY          Property for which eligible ac vi es are iden f ed under
                                       a Brownf eld Plan, referred to herein as “the subject
                                       property”.
                           ESA         Environmental Site Assessment
                         LBRF          Local Brownf eld Revolving Fund
                       MBRA            Muskegon Brownf eld Redevelopment Authority
                       MDEQ            Michigan Department of Environmental Quality
                       MEDC            Michigan Economic Development Corpora on
                          MSF          Michigan Strategic Fund
                   PHASE I ESA         An environmental historical review and site inspec on
                                       (no soil and/or groundwater sampling and analysis)
                   PHASE II ESA        Environmental subsurface inves ga on (includes soil,
                                       soil gas, and/or groundwater sampling and analysis)
                         RCC           Residen al Cleanup Criteria
            SUBJECT PROPERTY           The Eligible Property, located at 880 1st Street,
                                       northeast of the intersec on of 1st Street and W. Clay
                                       Street, in Muskegon, Michigan. It comprises one parcel.
                             TIF       Tax Increment Financing (TIF describes the process of
                                       using TIR—i.e., TIF is the use of TIR to provide f nancial
                                       support to a project)
                            TIR        Tax Increment Revenue (new property tax revenue,
                                       usually due to redevelopment and improvement that is
                                       generated by a property a er approval of a Brownf eld
                                       Plan)




BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                      Page 3
REVISION DATE: JUNE 14, 2017
    BROWNFIELD PLAN
    880 1st Street, Muskegon, Michigan 49440

1.0 Introduction
    The City of Muskegon, Michigan (the “City”), established the Muskegon Brownf eld Plan on April 14,
    1998, pursuant to Michigan Public Act 381 of 1996, as amended (“Act 381”). The primary purpose of Act
    381 is to encourage the redevelopment of eligible property by providing economic incen ves through
    tax increment f nancing for certain eligible ac vi es.

    The main purpose of this Brownf eld Plan is to promote the redevelopment of and investment in certain
    “Brownf eld” proper es within the City. Inclusion of subject property within Brownf eld plans will
    facilitate f nancing of environmental response and other eligible ac vi es at eligible proper es, and will
    also provide tax incen ves to eligible taxpayers willing to invest in revitaliza on of eligible sites,
    commonly referred to as “Brownf elds.” By facilita ng redevelopment of Brownf eld proper es,
    Brownf eld plans are intended to promote economic growth for the benef t of the residents of the City
    and all taxing units located within and benef ted by the Authority.

    The iden f ca on or designa on of a developer or proposed use for the Eligible Property that is the
    subject of this Brownf eld Plan (the “subject property”) shall not be integral to the effec veness or
    validity of this Brownf eld Plan. This Brownf eld Plan is intended to apply to the subject property
    iden f ed in this Brownf eld Plan and, if tax increment revenues are proposed to be captured from that
    subject property, to iden fy and authorize the eligible ac vi es to be funded by such tax increment
    revenues. Any change in the proposed developer or proposed use of the subject property shall not
    necessitate an amendment to this Brownf eld Plan, affect the applica on of this Brownf eld Plan to the
    subject property, or impair the rights available to the Authority under this Brownf eld Plan.

    This Brownf eld Plan is intended to be a living document, which may be modif ed or amended in
    accordance with the requirements of Act 381, as necessary to achieve the purposes of Act 381. The
    applicable sec ons of Act 381 are noted throughout the Brownf eld Plan for reference purposes.

    This Brownf eld Plan contains informa on required by Sec on 13(1) of Act 381.

    The Liberty Building (Project) consists of the redevelopment of the exis ng 54,122-square foot, 5-story
    commercial building. The building will be rehabilitated to accommodate f rst f oor retail tenants, second
    and third f oor commercial office tenants, and fourth and f h f oor residen al condominiums. This
    Project will ul mately put an underu lized property back to produc ve use, increase urban density and
    will return the property to the City’s tax rolls.

    The Project is seeking approval of Tax Increment Financing (TIF). Rehabilita on and construc on are
    expected to begin in late winter of 2017.


2.0 General Provisions
    The following sec ons detail informa on required by Act 381.



   BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                       Page 4
   REVISION DATE: JUNE 14, 2017
2.1 Description of Eligible Property (Section 13 (l)(h)
    The Eligible Property (“subject property”) is located at 880 1st Street, in the southeast ¼ of Sec on 19
    (Township 10 North /Range 16 West) in Muskegon, Michigan. The subject property is situated northeast
    of the intersec on of 1st Street and W. Clay Street. The subject property consists of a 0.46-acre parcel.
    The subject property is located in an area of Muskegon (“City”) that is characterized by commercial and
    residen al proper es and vacant lots. The subject property is located within the City’s Business
    Improvement District and Downtown Development District.

    The following table describes the subject property. See A achment A, Figure 2 – Eligible Property
    Boundary Map.

                                        Eligible Property Informa on
                                       Tax Iden fica on         Basis of Brownfield      Approximate
                     Address
                                            Number                    Eligibility        Acreage
               880 1st Street       61-24-205-310-0012-00    Facility                 0.46

    The subject property is within the Mainstreet Form-Based Code zoning district (FBC-MS). It currently
    contains a 5-story vacant commercial building (the former Ameribank building). Exterior por ons of the
    subject property include landscaped areas.

    A achment A includes site maps of the Eligible Property, refer to: Figure 1, Scaled Property Loca on Map
    and Figure 2, Eligible Property Boundary Map (which includes lot dimensions). The legal descrip on of
    the parcel included in the Eligible Property is presented in A achment B.

    The parcel and all tangible real and personal property located thereon will comprise the Eligible
    Property, which is referred to herein as the “subject property.”

2.2 Basis of Eligibility (Section 13 (1)(h) , Section 2 (m)), Section 2(r)
    The subject property is considered “Eligible Property” as def ned by Act 381, Sec on 2 because: (a) the
    subject property was previously u lized as commercial property; (b) it is located within the City of
    Muskegon, a qualif ed local governmental unit, or “Core Community” under Act 381; and (c) the subject
    property has been determined to be a “facility.”

    The subject property most recently operated as a bank. The parcel was acquired by the City of Muskegon
    through voluntary purchase in December 2015.

    According to previous environmental inves ga ons conducted on the property, polynuclear aroma c
    hydrocarbons (PNAs) (e.g., benzo(a)pyrene and dibenzo(a,h)anthracene) have been iden f ed in soil on
    the property at concentra ons exceeding Michigan Department of Environmental Quality (MDEQ) Direct
    Contact Cleanup Criteria.

2.3 Summary of Eligible Activities and Description of Costs (Section 13 (1)(a),(b))
    The “eligible ac vi es” that are intended to be carried out at the subject property are considered
    “eligible ac vi es” as def ned by Sec 2 of Act 381, because they include department specif c ac vi es,
    demoli on, lead and asbestos survey and abatement, site prepara on, infrastructure improvements, and




    BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                      Page 5
    REVISION DATE: JUNE 14, 2017
the prepara on of Brownf eld and Act 381 work plans (including cost tracking and reimbursement
request prepara on) (see Table 1).

A summary of the eligible ac vi es and the es mated cost of each eligible ac vity intended to be paid
for with Tax Increment Revenues from the subject property are shown in the table below

                          Es mated Cost of Reimbursable Eligible Ac vi es


                                 Description of Eligible Activity                       Estimated Cost*
             1. Department Specific Activities                                        $               9,500
             2. Demolition                                                            $             356,000
             3. Lead and Asbestos Activities                                          $              93,500
             4. Site Preparation                                                      $              68,388
             5. Infrastructure Improvements                                           $             450,310
              Total Environmental and Non-Environmental Eligible Activities           $             977,698
             6. 15% Contingency on Eligible Activities                                $             146,655
             7. Brownfield Plan & Act 381 WP Preparation Activities                   $              37,500
              Total Eligible Activities Cost with 15% Contingency                     $           1,161,853
             8. BRA Administration Fee                                                $             242,078
             9. State Revolving Fund                                                  $             124,845
           10. Local Brownfield Revolving Fund (LBRF)**                               $             255,492
           11. Interest (calculated at 5%, simple)***                                 $             780,011
              Total Eligible Costs for Reimbursement                                  $          2,564,280
*Estimated costs are subject to approval by MSF. Any costs not approved by the MSF may become local only costs
paid out of captured tax increment revenues from locally levied millages (to the extent available).
**LBRF deposits will be made in accordance with Act 381.
***Interest is calculated annually at 5% simple interest on unreimbursed eligible activities, in accordance with
MBRA policy.


A detailed breakout of the eligible ac vi es and the es mated cost of each eligible ac vity intended to
be paid for with Tax Increment Revenues from the subject property is shown in A achment C, Table 1.

It is currently an cipated that construc on will begin in summer 2017 and be completed by spring 2018.

The Developer desires to be reimbursed for the costs of eligible ac vi es. Tax increment revenue
generated by the subject property will be captured by the Authority and used to reimburse the cost of
the eligible ac vi es completed on the subject property a er approval of this Brownf eld Plan and an
associated Reimbursement Agreement.

The costs listed in the table above are es mated costs and may increase or decrease depending on the
nature and extent of environmental contamina on and other unknown condi ons encountered on the
subject property. The actual cost of those eligible ac vi es encompassed by this Brownf eld Plan that
will qualify for reimbursement from tax increment revenues of the Authority from the subject property
shall be governed by the terms of a Reimbursement Agreement with the Authority (the “Reimbursement
Agreement”). No costs of eligible ac vi es will be qualif ed for reimbursement except to the extent



BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                           Page 6
REVISION DATE: JUNE 14, 2017
    permi ed in accordance with the terms and condi ons of the Reimbursement Agreement and/or the
    Development Agreement.

    In accordance with this Brownf eld Plan, and the associated Reimbursement Agreement, the amount
    advanced by the Developer will be repaid by the Authority with interest at the rate set at 5% simple
    interest, solely from the tax increment revenues realized from the Eligible Property. Payments will be
    made to the full extent incremental property tax revenues are or become available for such purpose
    under the Act. Based on the projected cost of eligible ac vi es, interest reimbursement in this
    Brownf eld Plan is es mated at $780,011. However, if the actual cost of eligible ac vi es turns out to be
    lower than the above es mates, interest reimbursement may be lower, subject to the 5% simple interest
    calcula on.

    Tax increment revenues will f rst be used to pay or reimburse administra ve expenses described in the
    table above. The amount of school tax revenues, which will be used to reimburse the costs of
    implemen ng eligible ac vi es at this site, will be limited to the cost of eligible ac vi es approved by
    the MSF, with the interest rate provided above. In the event that the use of school tax revenues to
    reimburse specif c eligible ac vi es is not approved by the MSF, these specif c ac vi es will be
    reimbursed with local-only TIF (to the extent available).

2.4 Estimate of Captured Taxable Value and Tax Increment Revenues (Section 13(1)(c)); Impact of
     Tax Increment Financing On Taxing Jurisdictions (Section 13(1)(g), Section 2(ee))
    This Brownf eld Plan an cipates the capture of tax increment revenues to reimburse the Developer for
    the costs of eligible ac vi es under this Brownf eld Plan in accordance with the Reimbursement
    Agreement. A table of es mated tax increment revenues to be captured is a ached to this Brownf eld
    Plan as A achment C, Table 2. Tax increment revenue capture is expected to begin in 2019.

    The subject property is located within the City of Muskegon’s Downtown Development District, managed
    by the Downtown Development Authority (DDA). The DDA has the authority to capture all tax increment
    revenues other than the state educa on tax and local or intermediate school district taxes. However, it is
    an cipated that an interlocal agreement will be executed between the DDA and the MBRA to allow all of
    the DDA’s incremental revenue to be captured by the MBRA and used for the purposes described in this
    plan.

    The total es mated cost of the eligible ac vi es and other costs (including administra ve fees,
    con ngency, interest and state and local brownf eld revolving fund deposits) to be reimbursed through
    the capture of tax increment revenue is projected to be $2,564,280. The es mated effec ve ini al
    taxable value for this Brownf eld Plan is $0, and is based on land and real property tax only. The ini al
    taxable value of $0 is set in 2017, the year in which the eligible property was included in this plan.
    Redevelopment of the subject property is expected to ini ally generate incremental taxable value in
    2019 with the f rst signif cant increase in taxable value of approximately $1,668,311 beginning in 2019.

    It is es mated that the Authority will capture the 2019 through 2048 tax increment revenues to
    reimburse the cost of the eligible ac vi es, reimburse interest, make deposits to the State Brownf eld
    Redevelopment Fund and LBRF and pay Authority administra ve fees. An es mated schedule of tax
    increment revenue reimbursement is provided as A achment C, Table 3.

    The captured incremental taxable value and associated tax increment revenue will be based on the
    actual increased taxable value from all taxable improvements on the subject property and the actual



   BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                       Page 7
   REVISION DATE: JUNE 14, 2017
    millage rates levied by the various taxing jurisdic ons during each year of the plan, as shown in
    A achment C, Tables 2 and 3. The actual tax increment captured will be based on taxable value set
    through the property assessment process by the local unit of government and equalized by the County
    and the millage rates set each year by the taxing jurisdic ons.

2.5 Plan of Financing (Section 13(1)(d)); Maximum Amount of Indebtedness (Section 13(1)(e))
    Eligible ac vi es are to be f nanced by the Developer. The Authority will reimburse the Developer for the
    cost of approved eligible ac vi es, but only from tax increment revenues generated from the subject
    property as available, and subject to the Reimbursement Agreement and Development Agreement.

    All reimbursements authorized under this Brownf eld Plan shall be governed by the Reimbursement
    Agreement. The Authority shall not incur any note or bonded indebtedness to f nance the purposes of
    this Brownf eld Plan. The inclusion of eligible ac vi es and es mates of costs to be reimbursed in this
    Brownf eld Plan is intended to: (1) authorize the Authority to fund such reimbursements; and (2) provide
    the DDA with relevant informa on necessary to form and execute an interlocal agreement to fund such
    reimbursements. The inclusion of eligible ac vi es and es mates of costs to be reimbursed in this
    Brownf eld Plan does not obligate the Authority to fund any reimbursement or to enter into the
    Reimbursement Agreement providing for the reimbursement of any costs for which tax increment
    revenues may be captured under this Brownf eld Plan, or which are permi ed to be reimbursed under
    this Brownf eld Plan. The amount and source of any tax increment revenues that will be used for
    purposes authorized by this Brownf eld Plan, and the terms and condi ons for such use and upon any
    reimbursement of the expenses permi ed by the Brownf eld Plan, will be provided solely under the
    Reimbursement Agreement contemplated by this Brownf eld Plan.

2.6 Duration of Brownfield Plan (Section 13(1)(f))
    Current tax capture projec ons indicate the tax increment capture will con nue for 30 years. In no event
    shall the dura on of the Brownf eld Plan exceed 35 years following the date of the resolu on approving
    the Brownf eld Plan, nor shall the dura on of the tax capture exceed the lesser of the period authorized
    under subsec on (4) and (5) of Sec on 13 of Act 381 or 30 years. Further, in no event shall the beginning
    date of the capture of tax increment revenues be later than f ve years a er the date of the resolu on
    approving the Brownf eld Plan.

2.7 Effective Date of Inclusion in Brownfield Plan
    The subject property will become a part of this Brownf eld Plan on the date this Brownf eld Plan is
    approved by the City of Muskegon. The date of tax capture shall commence during the year construc on
    begins or the immediate following year—as increment revenue becomes available— but the beginning
    date of tax capture shall not exceed f ve years beyond the date of the governing body resolu on
    approving the Brownf eld Plan amendment.

2.8 Displacement/Relocation of Individuals on Eligible Property (Section 13(1)(i-l))
    There are no persons or businesses residing on the Eligible Property, and no occupied residences will be
    acquired or cleared; therefore there will be no displacement or reloca on of persons or businesses
    under this Brownf eld Plan.




    BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                    Page 8
    REVISION DATE: JUNE 14, 2017
 2.9 Local Brownfield Revolving Fund (“LBRF”) (Section 8, Section 13(1)(m))
     The Authority has established a Local Brownf eld Revolving Fund (LBRF). The Authority will capture
     incremental local and state school taxes to fund the LBRF, to the extent allowed by law. The rate and
     schedule of incremental tax capture for the LBRF will be determined on a case-by-case basis.
     Considera ons may include, but not be limited to the following: total capture dura on, total annual
     capture, project economic factors, level of exis ng LBRF funding, projected need for LBRF funds, and
     amount of school tax capture available in accordance with Act 381.

     The amount of tax increment revenue authorized for capture and deposit in the LBRF is es mated at
     $255,492.

2.10 Other Information
     The tax capture breakdown of tax increment revenues an cipated to become available for use in this
     Brownf eld Plan is summarized below.

     There are 53.3479 non-homestead mills available for capture, with school millage equaling 24.0000 mills
     (45%) and local millage equaling 29.3479 mills (55%). Approximately 35% of the project will include
     homestead residen al property, which impacts the propor on of school and local tax capture. There are
     35.3479 homestead mills available for capture, with school millage equaling 6.000 mills (17%) and local
     millage equaling 29.3479 (83%). The Project is also an cipa ng approval of an Obsolete Property
     Rehabilita on Act (OPRA) tax abatement which would abate 100% of local taxes for up to 12 years and
     50% of state taxes for up to 6 years. The requested tax capture for environmental and non-
     environmental eligible ac vi es breaks down as follows:

                                                     Tax Capture

                                                                     Eligible Activities, Interest,
                               State to Local Tax Capture                    Contingency
                   MSF School tax capture (44.51%)                                         $864,324
                   MSF Local tax capture (55.49%)                                        $1,077,541
                   Local-Only tax capture                                                         $0
                     Total                                                              $1,941,865




     BROWNFIELD PLAN | 880 1ST STREET, MUSKEGON, MI                                                     Page 9
     REVISION DATE: JUNE 14, 2017
A achments
      A achment A
Site Maps and Photographs
                           MUSKEGON EAST QUADRANGLE
                              MICHIGAN - MASKEGON COUNTY
                             7.5 MINUTE SERIES (TOPOGRAPHIC)




    1                                           0                                                   1 MILE

            1000       0     1000   2000       3000    4000    5000    6000         7000 FEET

                   1                            0                             1 KILOMETER


                                                                                                      MICHIGAN
                                                                                                 QUADRANGLE LOCATION




                   IMAGE TAKEN FROM 1972U.S.G.S. TOPOGRAPHIC MAP
                                 PHOTOREVISED 1980


                                           SCALED PROPERTY LOCATION MAP                         DRAWN BY:      ARR
                                                                                                DATE:          04/04/2017

                                                     880 1ST STREET
www.aktpeerless.com                              MUSKEGON, MICHIGAN                                     FIGURE 1
                                              PROJECT NUMBER: 12337F-2-25
                              W. WESTERN AVENUE




                                     142.2'
                                                                          PUBLIC ALLEY
        1ST STREET




                     140.5'                                     140.5'
                                     88
                                       01
                                         ST
                                              ST
                                                RE
                                                   ET




                                     142.2'



                                W. CLAY AVENUE



                                                                                 LEGEND
                                                                                     = PROPERTY LINE




                                                                                   DRAWN BY:         OGO
                                     ELIGIBLE PROPERTY BOUNDARY MAP
                                                                                   DATE:             04/04/2017
                                                   880 1ST STREET
                                               MUSKEGON, MICHIGAN                   0            30         60
                                            PROJECT NUMBER: 12337F-2-25                   SCALE: 1" = 60'
www.aktpeerless.com
                                                                                             FIGURE 2
  A achment B
Legal Descrip on(s)
CITY OF MUSKEGON REVISED PLAT 1903 LOTS 12-15 BLOCK 310 & the westerly 10’ of lot 16 of block
310.
A achment C
  Tables
                                                  Table 1. Eligible Activities
                                                         Liberty Building
                                                          880 1st Street
                                                          Muskegon, MI
                                                  AKT Peerless Project No. 12337
                                                       As of June 12, 2017


ELIGIBLE ACTIVITIES COST SUMMARY
                                                                                                                        Estimated
                                                                                                                           Cost of
                                                                                                                  Eligible Activity
Department Specific Activities                                                                                    $           9,500
Demolition                                                                                                        $        356,000
Lead and Asbestos Activities                                                                                      $          93,500
Site Preparation Activities                                                                                       $          68,388
Eligible Infrastructure Improvement Activities                                                                    $        450,310
TOTAL NON-ENVIRONMENTAL ELIGIBLE ACTIVITIES                                                                       $        968,198
                                            Total Environmental and Non-Environmental Eligible Activities $               977,698
                                                                         15% Contingency on Eligible Activities   $        146,655
Brownfield Plan & Act 381 WP Preparation Activities                                                               $          37,500
                                                      Total Eligible Activities Cost with 15% Contingency $            1,161,853
                                                                            Interest (calculated at 5%, simple)   $        780,011
                                             Total Eligible Activities Cost, with Contingency & Interest $             1,941,865
BRA Administration Fee                                                                                            $        242,078
State Revolving Fund                                                                                              $        124,845
Local Brownfield Revolving Fund (LBRF)                                                                            $        255,492
                                                                 Total Eligible Costs for Reimbursement $              2,564,280




                                                              1 of 1
                                                                                                                         Table 2. Tax Increment Revenue Estimates
                                                                                                                                         Liberty Building
                                                                                                                                          880 1st Street
                                                                                                                                          Muskegon, MI
                                                                                                                                 AKT Peerless Project No. 12337b
                                                                                                                                       As of June 12, 2017




                                            Estimated TV Increase rate: 1.01
                                                         Plan Year              1             2             3              4              5                6             7              8              9              10             11             12             13             14
                                                     Calendar Year             2019          2020          2021           2022           2023             2024          2025           2026           2027           2028           2029           2030           2031           2032
                                             Initial Taxable Value      $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -
Post-Dev TV (Developer Estimated)               Estimated New TV        $ 1,668,311 $ 1,684,994 $ 1,701,844 $ 1,718,862 $ 1,736,051 $ 1,753,411 $ 1,770,945 $ 1,788,655 $ 1,806,541 $ 1,824,607 $ 1,842,853 $ 1,861,281 $ 1,879,894 $ 1,898,693
                              Estimated New TV (Residential Only)       $   583,909 $   589,748 $   595,645 $   601,602 $   607,618 $   613,694 $   619,831 $   626,029 $   632,289 $   638,612 $   644,998 $   651,448 $   657,963 $   664,543
                                    Estimated New TV (Land Only)        $    57,500 $    58,075 $    58,656 $    59,242 $    59,835 $    60,433 $    61,037 $    61,648 $    62,264 $    62,887 $    63,516 $    64,151 $    64,792 $    65,440
                       Incremental Difference (New TV - Initial TV)     $ 1,668,311 $ 1,684,994 $ 1,701,844 $ 1,718,862 $ 1,736,051 $ 1,753,411 $ 1,770,945 $ 1,788,655 $ 1,806,541 $ 1,824,607 $ 1,842,853 $ 1,861,281 $ 1,879,894 $ 1,898,693

School Capture                          Millage Rate             $                0.35
State Education Tax (SET)                 6.0000     Incremental $               6,929 $       6,998 $       7,068 $         7,139 $        7,211 $         7,283 $      10,626 $       10,732 $       10,839 $       10,948 $       11,057 $       11,168 $       11,279 $       11,392
School Operating Tax                     18.0000 Incremental $                  10,277 $      10,380 $      10,484 $        10,589 $       10,694 $        10,801 $      20,720 $       20,927 $       21,137 $       21,348 $       21,561 $       21,777 $       21,995 $       22,215
                            School Total 24.0000                 $              17,206 $      17,378 $      17,552 $        17,728 $       17,905 $        18,084 $      31,346 $       31,659 $       31,976 $       32,296 $       32,618 $       32,945 $       33,274 $       33,607
                                                                                                                                                                                                              `
Abatement Value (school) - OPRA                                         $       12,323 $      12,446 $      12,571 $        12,696 $       12,823 $        12,951

Abatement Value (school taxes)                                          $       12,323 $      12,446 $      12,571 $        12,696 $       12,823 $        12,951 $            -   $          -   $          -   $          -   $          -   $          -   $          -   $          -

Local Capture                              Millage Rate
County Museum                                0.3221       Incremental   $          335   $       338   $       342   $         345   $        349     $       352   $       356    $       359    $       363    $       367    $       370    $       374    $       606    $       612
County Veterans                              0.0752       Incremental   $           78   $        79   $        80   $          81   $         81     $        82   $        83    $        84    $        85    $        86    $        86    $        87    $       141    $       143
Senior Cit Svc                               0.5000       Incremental   $          520   $       525   $       531   $         536   $        541     $       547   $       552    $       558    $       563    $       569    $       575    $       580    $       940    $       949
Central Dispatch                             0.3000       Incremental   $          312   $       315   $       318   $         322   $        325     $       328   $       331    $       335    $       338    $       341    $       345    $       348    $       564    $       570
Comm College                                 2.2037       Incremental   $        2,293   $     2,316   $     2,339   $       2,362   $      2,386     $     2,410   $     2,434    $     2,458    $     2,483    $     2,508    $     2,533    $     2,558    $     4,143    $     4,184
M.A.I.S.D                                    4.7580       Incremental   $        4,950   $     5,000   $     5,050   $       5,100   $      5,151     $     5,203   $     5,255    $     5,308    $     5,361    $     5,414    $     5,468    $     5,523    $     8,945    $     9,034
City Op                                     10.0905       Incremental   $       10,499   $    10,604   $    10,710   $      10,817   $     10,925     $    11,034   $    11,145    $    11,256    $    11,369    $    11,482    $    11,597    $    11,713    $    18,969    $    19,159
City Sanitation                              3.0000       Incremental   $        3,121   $     3,153   $     3,184   $       3,216   $      3,248     $     3,281   $     3,313    $     3,347    $     3,380    $     3,414    $     3,448    $     3,482    $     5,640    $     5,696
Hackley Library                              2.4000       Incremental   $        2,497   $     2,522   $     2,547   $       2,573   $      2,598     $     2,624   $     2,651    $     2,677    $     2,704    $     2,731    $     2,758    $     2,786    $     4,512    $     4,557
County Operating                             5.6984       Incremental   $        5,929   $     5,988   $     6,048   $       6,109   $      6,170     $     6,231   $     6,294    $     6,357    $     6,420    $     6,484    $     6,549    $     6,615    $    10,712    $    10,820
                                Local Total 29.3479                     $       30,535   $    30,840   $    31,149   $      31,460   $     31,775     $    32,093   $    32,413    $    32,738    $    33,065    $    33,396    $    33,730    $    34,067    $    55,171    $    55,723

Abatement Value (local) - OPRA                                          $       15,069 $      15,219 $      15,372 $        15,525 $       15,681 $        15,837 $      15,996 $       16,156 $       16,317 $       16,480 $       16,645 $       16,812

Abatement Value (local taxes)                                           $       15,069 $      15,219 $      15,372 $        15,525 $       15,681 $        15,837 $      15,996 $       16,156 $       16,317 $       16,480 $       16,645 $       16,812 $             -   $          -

Non-Capturable Millages                Millage Rate
Comm College Dbt                         0.3400           Tax Jurisd.   $          218   $       220   $       222   $         225   $        227     $       229   $       231    $       234    $       236    $       239    $       241    $       243    $       639    $       646
Hackley Debt                             0.4962           Tax Jurisd.   $          318   $       321   $       325   $         328   $        331     $       335   $       338    $       341    $       345    $       348    $       352    $       355    $       933    $       942
MPS Debt -1995                           4.1600           Tax Jurisd.   $        2,668   $     2,695   $     2,722   $       2,749   $      2,777     $     2,804   $     2,832    $     2,861    $     2,889    $     2,918    $     2,947    $     2,977    $     7,820    $     7,899
MPS Debt -2009                           2.1900           Tax Jurisd.   $        1,405   $     1,419   $     1,433   $       1,447   $      1,462     $     1,476   $     1,491    $     1,506    $     1,521    $     1,536    $     1,552    $     1,567    $     4,117    $     4,158
MPS Sinking                              1.0000           Tax Jurisd.   $          641   $       648   $       654   $         661   $        667     $       674   $       681    $       688    $       695    $       701    $       709    $       716    $     1,880    $     1,899
            Total Non-Capturable Taxes   8.1862                         $        5,251   $     5,303   $     5,356   $       5,410   $      5,464     $     5,519   $     5,574    $     5,629    $     5,686    $     5,743    $     5,800    $     5,858    $    15,389    $    15,543

Abatement Value (non-capt) - OPRA                                       $        8,406 $       8,490 $       8,575 $         8,661 $        8,748 $         8,835 $       8,924 $        9,013 $        9,103 $        9,194 $        9,286 $        9,379

Abatement Value (non-capturable) taxes)                                 $        8,406 $       8,490 $       8,575 $         8,661 $        8,748 $         8,835 $       8,924 $        9,013 $        9,103 $        9,194 $        9,286 $        9,379 $             -   $          -

Total Annual OPRA Abatement Value                                       $       35,798 $      36,156 $      36,517 $        36,883 $       37,251 $        37,624 $      24,919 $       25,169 $       25,420 $       25,674 $       25,931 $       26,190 $          -   $          -
Total Accumulated OPRA Abatement Value                                  $       35,798 $      71,954 $     108,471 $       145,354 $      182,606 $       220,230 $     245,149 $      270,317 $      295,738 $      321,412 $      347,343 $      373,534 $      373,534 $      373,534




                                                                                                                                             1 of 2
                                                                                                                                          Table 2. Tax Increment Revenue Estimates
                                                                                                                                                              Liberty Building
                                                                                                                                                               880 1st Street
                                                                                                                                                               Muskegon, MI
                                                                                                                                                      AKT Peerless Project No. 12337b
                                                                                                                                                            As of June 12, 2017




                                            Estimated TV Increase rate:
                                                         Plan Year             15             16             17             18              19                20                21             22             23             24             25             26             27             28             29             30
                                                     Calendar Year            2033           2034           2035           2036            2037              2038              2039           2040           2041           2042           2043           2044           2045           2046           2047           2048
                                             Initial Taxable Value        $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -   $       -
Post-Dev TV (Developer Estimated)               Estimated New TV          $ 1,917,680 $ 1,936,857 $ 1,956,225 $ 1,975,788 $ 1,995,545 $ 2,015,501 $ 2,035,656 $ 2,056,012 $ 2,076,573 $ 2,097,338 $ 2,118,312 $ 2,139,495 $ 2,160,890 $ 2,182,499 $ 2,204,324 $ 2,226,367
                              Estimated New TV (Residential Only)         $   671,188 $   677,900 $   684,679 $   691,526 $   698,441 $   705,425 $   712,480 $   719,604 $   726,800 $   734,068 $   741,409 $   748,823 $   756,311 $   763,875 $   771,513 $   779,228
                                    Estimated New TV (Land Only)          $    66,095 $    66,756 $    67,423 $    68,098 $    68,778 $    69,466 $    70,161 $    70,863 $    71,571 $    72,287 $    73,010 $    73,740 $    74,477 $    75,222 $    75,974 $    76,734
                       Incremental Difference (New TV - Initial TV)       $ 1,917,680 $ 1,936,857 $ 1,956,225 $ 1,975,788 $ 1,995,545 $ 2,015,501 $ 2,035,656 $ 2,056,012 $ 2,076,573 $ 2,097,338 $ 2,118,312 $ 2,139,495 $ 2,160,890 $ 2,182,499 $ 2,204,324 $ 2,226,367

School Capture                          Millage Rate
State Education Tax (SET)                 6.0000     Incremental $             11,506 $       11,621 $       11,737 $       11,855 $         11,973 $           12,093 $        12,214 $       12,336 $       12,459 $       12,584 $       12,710 $       12,837 $       12,965 $       13,095 $       13,226 $       13,358
School Operating Tax                     18.0000 Incremental $                 22,437 $       22,661 $       22,888 $       23,117 $         23,348 $           23,581 $        23,817 $       24,055 $       24,296 $       24,539 $       24,784 $       25,032 $       25,282 $       25,535 $       25,791 $       26,048
                            School Total 24.0000                 $             33,943 $       34,282 $       34,625 $       34,971 $         35,321 $           35,674 $        36,031 $       36,391 $       36,755 $       37,123 $       37,494 $       37,869 $       38,248 $       38,630 $       39,017 $       39,407

Abatement Value (school) - OPRA

Abatement Value (school taxes)                                            $          -   $          -   $          -   $          -   $           -      $          -      $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -

Local Capture                              Millage Rate
County Museum                                0.3221       Incremental     $       618    $       624    $       630    $       636    $         643      $         649     $       656    $       662    $       669    $       676    $       682    $       689    $       696    $       703    $       710    $       717
County Veterans                              0.0752       Incremental     $       144    $       146    $       147    $       149    $         150      $         152     $       153    $       155    $       156    $       158    $       159    $       161    $       162    $       164    $       166    $       167
Senior Cit Svc                               0.5000       Incremental     $       959    $       968    $       978    $       988    $         998      $       1,008     $     1,018    $     1,028    $     1,038    $     1,049    $     1,059    $     1,070    $     1,080    $     1,091    $     1,102    $     1,113
Central Dispatch                             0.3000       Incremental     $       575    $       581    $       587    $       593    $         599      $         605     $       611    $       617    $       623    $       629    $       635    $       642    $       648    $       655    $       661    $       668
Comm College                                 2.2037       Incremental     $     4,226    $     4,268    $     4,311    $     4,354    $       4,398      $       4,442     $     4,486    $     4,531    $     4,576    $     4,622    $     4,668    $     4,715    $     4,762    $     4,810    $     4,858    $     4,906
M.A.I.S.D                                    4.7580       Incremental     $     9,124    $     9,216    $     9,308    $     9,401    $       9,495      $       9,590     $     9,686    $     9,783    $     9,880    $     9,979    $    10,079    $    10,180    $    10,282    $    10,384    $    10,488    $    10,593
City Op                                     10.0905       Incremental     $    19,350    $    19,544    $    19,739    $    19,937    $      20,136      $      20,337     $    20,541    $    20,746    $    20,954    $    21,163    $    21,375    $    21,589    $    21,804    $    22,023    $    22,243    $    22,465
City Sanitation                              3.0000       Incremental     $     5,753    $     5,811    $     5,869    $     5,927    $       5,987      $       6,047     $     6,107    $     6,168    $     6,230    $     6,292    $     6,355    $     6,418    $     6,483    $     6,547    $     6,613    $     6,679
Hackley Library                              2.4000       Incremental     $     4,602    $     4,648    $     4,695    $     4,742    $       4,789      $       4,837     $     4,886    $     4,934    $     4,984    $     5,034    $     5,084    $     5,135    $     5,186    $     5,238    $     5,290    $     5,343
County Operating                             5.6984       Incremental     $    10,928    $    11,037    $    11,147    $    11,259    $      11,371      $      11,485     $    11,600    $    11,716    $    11,833    $    11,951    $    12,071    $    12,192    $    12,314    $    12,437    $    12,561    $    12,687
                                Local Total 29.3479                       $    56,280    $    56,843    $    57,411    $    57,985    $      58,565      $      59,151     $    59,742    $    60,340    $    60,943    $    61,552    $    62,168    $    62,790    $    63,418    $    64,052    $    64,692    $    65,339

Abatement Value (local) - OPRA

Abatement Value (local taxes)                                             $          -   $          -   $          -   $          -   $           -      $          -      $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -

Non-Capturable Millages                Millage Rate
Comm College Dbt                         0.3400           Tax Jurisd.     $       652    $       659    $       665    $       672    $         678      $         685     $       692    $       699    $       706    $       713    $       720    $       727    $       735    $       742    $       749    $       757
Hackley Debt                             0.4962           Tax Jurisd.     $       952    $       961    $       971    $       980    $         990      $       1,000     $     1,010    $     1,020    $     1,030    $     1,041    $     1,051    $     1,062    $     1,072    $     1,083    $     1,094    $     1,105
MPS Debt -1995                           4.1600           Tax Jurisd.     $     7,978    $     8,057    $     8,138    $     8,219    $       8,301      $       8,384     $     8,468    $     8,553    $     8,639    $     8,725    $     8,812    $     8,900    $     8,989    $     9,079    $     9,170    $     9,262
MPS Debt -2009                           2.1900           Tax Jurisd.     $     4,200    $     4,242    $     4,284    $     4,327    $       4,370      $       4,414     $     4,458    $     4,503    $     4,548    $     4,593    $     4,639    $     4,685    $     4,732    $     4,780    $     4,827    $     4,876
MPS Sinking                              1.0000           Tax Jurisd.     $     1,918    $     1,937    $     1,956    $     1,976    $       1,996      $       2,016     $     2,036    $     2,056    $     2,077    $     2,097    $     2,118    $     2,139    $     2,161    $     2,182    $     2,204    $     2,226
            Total Non-Capturable Taxes   8.1862                           $    15,699    $    15,855    $    16,014    $    16,174    $      16,336      $      16,499     $    16,664    $    16,831    $    16,999    $    17,169    $    17,341    $    17,514    $    17,689    $    17,866    $    18,045    $    18,225

Abatement Value (non-capt) - OPRA

Abatement Value (non-capturable) taxes)                                   $          -   $          -   $          -   $          -   $           -      $          -      $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -

Total Annual OPRA Abatement Value                                         $       -   $          -   $          -   $          -   $            -   $              -   $           -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -   $          -
Total Accumulated OPRA Abatement Value                                    $   373,534 $      373,534 $      373,534 $      373,534 $        373,534 $          373,534 $       373,534 $      373,534 $      373,534 $      373,534 $      373,534 $      373,534 $      373,534 $      373,534 $      373,534 $      373,534




                                                                                                                                                                  2 of 2
                                                                                            Table 3. Reimbursement Allocation Schedule
                                                                                                                  Liberty Building
                                                                                                                   880 1st Street
                                                                                                                   Muskegon, MI
                                                                                                           AKT Peerless Project No. 12337
                                                                                                                As of June 12, 2017




                                                  Developer
                                                                                                       School & Local          Local-Only
                                                  Projected                          Proportionality
                                                                                                           Taxes                 Taxes           Total
                                               Reimbursement
                                                      State                               46.0%        $       824,790                       $    824,790                       Estimated Total Years of
                                                      Local                               54.0%        $       824,912 $               -     $    824,912                                          Plan:          30
                                                     TOTAL                                             $      1,649,702 $              -     $   1,649,702

                                                      MDEQ                                   0.9%        $      18,260
                                                      MSF                                   99.1%        $ 1,923,605
                                                      *It is projected that insufficient revenue will be produced to fully reimburse the developer. Projected Shortfall: $292,163

                                                    Plan Year              1                2                   3                  4              5               6                 7              8              9              10
Total State Incremental Revenue                                     $       17,206   $       17,378    $         17,552    $        17,728   $     17,905    $     18,084   $        31,346   $     31,659   $     31,976   $     32,296
City Reimbursement                                                  $        1,721   $        1,738    $          1,755    $         1,773   $      1,790    $      1,808   $         3,135   $      3,166   $      3,198   $       3,230
State Brownfield Revolving Fund (3 mills of SET)                    $        1,732   $        1,750    $          1,767    $         1,785   $      3,605    $      3,641   $         5,313   $      5,366   $      5,420   $       5,474
State TIR Available for Reimbursement                               $       13,753   $       15,629    $         15,785    $        15,943   $     14,300    $     14,443   $        26,033   $     26,293   $     26,556   $     26,822

Total Local Incremental Revenue                                     $       30,535   $       30,840    $         31,149    $        31,460   $     31,775    $     32,093   $        32,413   $     32,738   $     33,065   $     33,396
BRA Administrative Fee                                              $        4,774   $        4,822    $          4,870    $         4,919   $      4,968    $      5,018   $         6,376   $      6,440   $      6,504   $      6,569
City Reimbursement                                                  $        3,053   $        3,084    $          3,115    $         3,146   $      3,177    $      3,209   $         3,241   $      3,274   $      3,306   $      3,340
Local TIR Available for Reimbursement                               $       22,707   $       22,934    $         23,164    $        23,395   $     23,629    $     23,866   $        22,796   $     23,024   $     23,254   $     23,487

Total State & Local TIR Available                                   $       36,461 $         38,563 $            38,949 $           39,338 $       37,929 $        38,308 $          48,829 $       49,317 $       49,811 $       50,309
                                                    Beginning
DEVELOPER                                            Balance
DEVELOPER Reimbursement Balance               $         1,941,865 $      1,905,404 $      1,866,841 $         1,827,892 $        1,788,554 $     1,750,625 $     1,712,316 $     1,663,487 $      1,614,170 $    1,564,359 $    1,514,051


 STATE Reimbursement Balance                  $          892,983    $      879,229   $      863,601    $       847,816     $       831,873   $    817,573    $    803,130   $       777,097   $    750,804   $    724,248   $    697,426
    Eligible Activities Reimbursement         $          534,288    $       13,753   $       15,629    $        15,785     $        15,943   $     14,300    $     14,443   $        26,033   $     26,293   $     26,556   $     26,822
      Environmental Eligible Activities       $            5,024    $          129   $          147    $           148     $           150   $        134    $        136   $           245   $        247   $        250   $        252
      Non-Environmental Eligible Activities   $          529,264    $       13,624   $       15,482    $        15,637     $        15,793   $     14,165    $     14,307   $        25,788   $     26,046   $     26,306   $     26,570
    Interest Reimbursement                    $          358,695    $          -     $          -      $           -       $           -     $        -      $        -     $           -     $        -     $        -     $        -
      Environmental Portion                   $            3,373    $          -     $          -      $           -       $           -     $        -      $        -     $           -     $        -     $        -     $        -
      Non-Environmental Portion               $          355,322    $          -     $          -      $           -       $           -     $        -      $        -     $           -     $        -     $        -     $        -
    Total STATE TIR Reimbursement                                   $       13,753   $       15,629    $        15,785     $        15,943   $     14,300    $     14,443   $        26,033   $     26,293   $     26,556   $     26,822

 LOCAL Reimbursement Balance                  $         1,048,882   $    1,026,175   $    1,003,240    $       980,077     $       956,681   $    933,052    $    909,186   $       886,390   $    863,366   $    840,111   $    816,624
    Eligible Activities Reimbursement         $           627,565   $       22,707   $       22,934    $        23,164     $        23,395   $     23,629    $     23,866   $        22,796   $     23,024   $     23,254   $     23,487
      Documentation of Due Care               $             5,901   $          214   $          216    $           218     $           220   $        222    $        224   $           214   $        216   $        219   $        221
      Non-Environmental Eligible Activities   $           621,664   $       22,494   $       22,719    $        22,946     $        23,175   $     23,407    $     23,641   $        22,582   $     22,808   $     23,036   $     23,266
    Interest Reimbursement                    $           421,317   $          -     $          -      $           -       $           -     $        -      $        -     $           -     $        -     $        -     $        -
      Environmental Portion                   $             3,962   $          -     $          -      $           -       $           -     $        -      $        -     $           -     $        -     $        -     $        -
      Non-Environmental Portion               $           417,355   $          -     $          -      $           -       $           -     $        -      $        -     $           -     $        -     $        -     $        -
    Total LOCAL TIR Reimbursement                                   $       22,707   $       22,934    $        23,164     $        23,395   $     23,629    $     23,866   $        22,796   $     23,024   $     23,254   $     23,487

Total Annual Developer Reimbursement                                $       36,461 $         38,563 $            38,949 $           39,338 $       37,929 $        38,308 $         48,829 $        49,317 $       49,811 $       50,309

LOCAL SITE REMEDIATION FUND                         LSRRF Year             0                0                   0                  0              0               0                 0              0              0              0
LSRRF Deposits                                                      $          -     $            -    $            -      $           -     $           -   $        -     $           -     $        -     $         -    $        -
  STATE                                       $            8,397                     $            -    $            -      $           -     $           -   $        -     $           -     $        -     $         -    $        -
  LOCAL                                            no maximum                        $            -    $            -      $           -     $           -   $        -     $           -     $        -     $         -    $        -




                                                                                                                        1 of 3
                                                                                 Table 3. Reimbursement Allocation Schedule
                                                                                                  Liberty Building
                                                                                                   880 1st Street
                                                                                                   Muskegon, MI
                                                                                           AKT Peerless Project No. 12337
                                                                                                As of June 12, 2017




                                              Estimated Capture
                                              Administrative Fees                $     242,078
                                              State Revolving Fund               $     124,845
                                              Local Revolving Fund               $     255,492


                                                                                  $ 23,529,412
                                                                                 End of OPRA                                     End of NEZ

                                                    11                12              13              14              15               16              17             18             19             20
Total State Incremental Revenue                $     32,618    $       32,945    $     33,274    $     33,607    $     33,943    $      34,282    $     34,625    $    34,971    $    35,321    $    35,674
City Reimbursement                             $       3,262   $         3,294   $       3,327   $       3,361   $       3,394   $        3,428   $       3,463   $      3,497   $      3,532   $      3,567
State Brownfield Revolving Fund (3 mills of SE $       5,529   $         5,584   $       5,640   $       5,696   $       5,753   $        5,811   $       5,869   $      5,927   $      5,987   $      6,047
State TIR Available for Reimbursement          $     27,090    $       27,361    $     27,634    $     27,911    $     28,190    $      28,472    $     28,757    $    29,044    $    29,335    $    29,628

Total Local Incremental Revenue               $       33,730   $       34,067    $      55,171   $     55,723    $     56,280    $      56,843    $     57,411    $    57,985    $    58,565    $    59,151
BRA Administrative Fee                        $        6,635   $        6,701    $       8,845   $      8,933    $      9,022    $       9,113    $      9,204    $     9,296    $     9,389    $     9,483
City Reimbursement                            $        3,373   $        3,407    $       5,517   $      5,572    $      5,628    $       5,684    $      5,741    $     5,799    $     5,857    $     5,915
Local TIR Available for Reimbursement         $       23,722   $       23,959    $      40,809   $     41,217    $     41,630    $      42,046    $     42,466    $    42,891    $    43,320    $    43,753

Total State & Local TIR Available             $       50,812 $         51,320 $         68,444 $       69,128 $        69,820 $         70,518 $        71,223 $       71,935 $       72,654 $       73,381

DEVELOPER
DEVELOPER Reimbursement Balance               $    1,463,239 $       1,411,919 $     1,343,475 $     1,274,347 $     1,204,528 $     1,134,010 $      1,062,787 $     990,852 $      918,198 $      844,817


 STATE Reimbursement Balance                  $     670,336    $      642,976    $     615,341   $    587,430    $    559,240    $     530,769    $    502,012    $   472,968    $   443,634    $   414,006
    Eligible Activities Reimbursement         $      27,090    $       27,361    $      27,634   $     27,911    $     28,190    $      28,472    $     28,757    $    29,044    $    29,335    $    29,628
      Environmental Eligible Activities       $         255    $          257    $         260   $        262    $        265    $         268    $        270    $       273    $       276    $       279
      Non-Environmental Eligible Activities   $      26,835    $       27,104    $      27,375   $     27,648    $     27,925    $      28,204    $     28,486    $    28,771    $    29,059    $    29,349
    Interest Reimbursement                    $         -      $          -      $         -     $        -      $        -      $         -      $        -      $       -      $       -      $       -
      Environmental Portion                   $         -      $          -      $         -     $        -      $        -      $         -      $        -      $       -      $       -      $       -
      Non-Environmental Portion               $         -      $          -      $         -     $        -      $        -      $         -      $        -      $       -      $       -      $       -
    Total STATE TIR Reimbursement             $      27,090    $       27,361    $      27,634   $     27,911    $     28,190    $      28,472    $     28,757    $    29,044    $    29,335    $    29,628

 LOCAL Reimbursement Balance                  $     792,903    $      768,944    $     728,134   $    686,917    $    645,287    $     603,241    $    560,775    $   517,884    $   474,564    $   430,811
    Eligible Activities Reimbursement         $      23,722    $       23,959    $      40,809   $     41,217    $     41,630    $         -      $        -      $       -      $       -      $       -
      Documentation of Due Care               $         223    $          225    $         384   $        388    $        391    $         -      $        -      $       -      $       -      $       -
      Non-Environmental Eligible Activities   $      23,499    $       23,734    $      40,426   $     40,830    $     41,238    $         -      $        -      $       -      $       -      $       -
    Interest Reimbursement                    $         -      $          -      $         -     $        -      $        -      $      42,046    $     42,466    $    42,891    $    43,320    $    43,753
      Environmental Portion                   $         -      $          -      $         -     $        -      $        -      $         395    $        399    $       403    $       407    $       411
      Non-Environmental Portion               $         -      $          -      $         -     $        -      $        -      $      41,651    $     42,067    $    42,488    $    42,913    $    43,342
    Total LOCAL TIR Reimbursement             $      23,722    $       23,959    $      40,809   $     41,217    $     41,630    $      42,046    $     42,466    $    42,891    $    43,320    $    43,753

Total Annual Developer Reimbursement          $       50,812 $         51,320 $         68,444 $       69,128 $        69,820 $         70,518 $        71,223 $       71,935 $       72,654 $       73,381

LOCAL SITE REMEDIATION FUND                          0                0                0              0               0                0               0              0              0              0
LSRRF Deposits                                $          -     $          -      $         -     $         -     $          -    $            -   $        -      $       -      $       -      $       -
  STATE                                       $          -     $          -      $         -     $         -     $          -    $            -   $        -      $       -      $       -      $       -
  LOCAL                                       $          -     $          -      $         -     $         -     $          -    $            -   $        -      $       -      $       -      $       -




                                                                                                       2 of 3
                                                                             Table 3. Reimbursement Allocation Schedule
                                                                                             Liberty Building
                                                                                              880 1st Street
                                                                                              Muskegon, MI
                                                                                      AKT Peerless Project No. 12337
                                                                                           As of June 12, 2017




                                                                                                                                                                                            End Plan
                                                   21             22             23              24              25             26             27             28             29               30
Total State Incremental Revenue                $    36,031    $    36,391    $    36,755    $     37,123    $     37,494    $    37,869    $    38,248    $    38,630    $    39,017    $      39,407
City Reimbursement                             $      3,603   $      3,639   $      3,676   $       3,712   $       3,749   $      3,787   $      3,825   $      3,863   $      3,902   $        3,941
State Brownfield Revolving Fund (3 mills of SE $      6,107   $      6,168   $      6,230   $       6,292   $       6,355   $        -     $        -     $        -     $        -     $          -
State TIR Available for Reimbursement          $    29,924    $    30,223    $    30,526    $     30,831    $     31,139    $    37,869    $    38,248    $    38,630    $    39,017    $      39,407

Total Local Incremental Revenue               $     59,742    $    60,340    $     60,943   $     61,552    $     62,168    $    62,790    $    63,418    $    64,052    $    64,692    $       65,339
BRA Administrative Fee                        $      9,577    $     9,673    $      9,770   $      9,868    $      9,966    $    10,066    $    10,167    $    10,268    $    10,371    $       10,475
City Reimbursement                            $      5,974    $     6,034    $      6,094   $      6,155    $      6,217    $     6,279    $     6,342    $     6,405    $     6,469    $        6,534
Local TIR Available for Reimbursement         $     44,191    $    44,633    $     45,079   $     45,530    $     45,985    $    46,445    $    46,909    $    47,378    $    47,852    $       48,331

Total State & Local TIR Available             $     74,115 $       74,856 $        75,605 $       76,361 $        77,124 $       84,314 $       85,157 $       86,009 $       86,869 $          87,737

DEVELOPER
DEVELOPER Reimbursement Balance               $    770,702 $      695,846 $       620,241 $      543,881 $       485,333 $      447,464 $      409,216 $      370,586 $      331,569 $         292,163


 STATE Reimbursement Balance                  $    384,082    $   353,858    $    323,333   $    292,502    $    261,362    $   223,493    $   185,246    $   146,615    $   107,599    $       68,192
    Eligible Activities Reimbursement         $     29,924    $    25,387    $        -     $        -      $        -      $       -      $       -      $       -      $       -      $          -
      Environmental Eligible Activities       $        281    $       239    $        -     $        -      $        -      $       -      $       -      $       -      $       -      $          -
      Non-Environmental Eligible Activities   $     29,643    $    25,148    $        -     $        -      $        -      $       -      $       -      $       -      $       -      $          -
    Interest Reimbursement                    $        -      $     4,837    $     30,526   $     30,831    $     31,139    $    37,869    $    38,248    $    38,630    $    39,017    $       39,407
      Environmental Portion                   $        -      $        45    $        287   $        290    $        293    $       356    $       360    $       363    $       367    $          371
      Non-Environmental Portion               $        -      $     4,791    $     30,239   $     30,541    $     30,846    $    37,513    $    37,888    $    38,267    $    38,650    $       39,036
    Total STATE TIR Reimbursement             $     29,924    $    30,223    $     30,526   $     30,831    $     31,139    $    37,869    $    38,248    $    38,630    $    39,017    $       39,407

 LOCAL Reimbursement Balance                  $    386,620    $   341,988    $    296,909   $    251,379    $    223,970    $   223,970    $   223,970    $   223,970    $   223,970    $      223,970
    Eligible Activities Reimbursement         $        -      $       -      $        -     $        -      $        -      $       -      $       -      $       -      $       -      $          -
      Documentation of Due Care               $        -      $       -      $        -     $        -      $        -      $       -      $       -      $       -      $       -      $          -
      Non-Environmental Eligible Activities   $        -      $       -      $        -     $        -      $        -      $       -      $       -      $       -      $       -      $          -
    Interest Reimbursement                    $     44,191    $    44,633    $     45,079   $     45,530    $     27,409    $       -      $       -      $       -      $       -      $          -
      Environmental Portion                   $        416    $       420    $        424   $        428    $        258    $       -      $       -      $       -      $       -      $          -
      Non-Environmental Portion               $     43,775    $    44,213    $     44,655   $     45,102    $     27,151    $       -      $       -      $       -      $       -      $          -
    Total LOCAL TIR Reimbursement             $     44,191    $    44,633    $     45,079   $     45,530    $     27,409    $       -      $       -      $       -      $       -      $          -

Total Annual Developer Reimbursement          $     74,115 $       74,856 $        75,605 $       76,361 $        58,548 $       37,869 $       38,248 $       38,630 $       39,017 $          39,407

LOCAL SITE REMEDIATION FUND                        0              0               0              0               0              0              0              0              0                 0
LSRRF Deposits                                $        -      $       -      $        -     $         -     $     18,576 $       46,445 $       46,909 $       47,378 $       47,852 $          48,331
  STATE                                       $        -      $       -      $        -     $         -     $        -   $          -   $          -   $          -   $          -   $             -
  LOCAL                                       $        -      $       -      $        -     $         -     $     18,576 $       46,445 $       46,909 $       47,378 $       47,852 $          48,331




                                                                                                  3 of 3
                     Commission Meeting Date: June 27, 2017




Date:         June 22, 2017
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request for an Industrial Facilities Exemption
              Certificate – Lakeside Surfaces


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, Lakeside Surfaces, Inc, 2265 Black Creek
Rd, has requested the issuance of an Industrial Facilities Tax Exemption Certificate (IFT).
The total capital investment will be $2,387,666 in real property and will create 26 new jobs in
the City. They are eligible for a 12-year abatement per the City’s IFT policy.

FINANCIAL IMPACT:

The City will capture certain additional property taxes generated by the expansion.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for
a term of twelve (12) years for real property.



COMMITTEE RECOMMENDATION:

None




6/22/2017
                                             Resolution No. _______

                                       MUSKEGON CITY COMMISSION

                          RESOLUTION APPROVING APPLICATION FOR ISSUANCE
                           OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
                                         Lakeside Surfaces, Inc


WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 26,
     1983, this Commission by resolution established an Industrial Development District as requested
     by the City of Muskegon for Port City Industrial Park, including the property leased by Lakeside
     Surfaces Inc, 2265 Black Creek Rd, Muskegon, Michigan 49444; and

WHEREAS, Lakeside Surfaces Inc has filed an application for the issuance of an Industrial Facilities Tax
     Exemption Certificate with respect to new real property that has been installed within said Industrial
     Development District; and

WHEREAS, said application was filed no later than six months after project commencement and the Muskegon
     City Commission held a public hearing on June 27, 2017, at the Muskegon City Hall in Muskegon,
     Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected
     taxing units were given written notice and were afforded an opportunity to be heard on said application;
     and

WHEREAS, the installation of new real property is calculated to and will have the reasonable likelihood to retain,
     create, or prevent the loss of employment in Muskegon, Michigan; and

WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will
     not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real
     property thus exempted.

NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon,
      Michigan that:

          1) The Muskegon City Commission finds and determines that the Certificate considered together with
             the aggregate amount of certificates previously granted and currently in force under Act No. 198 of
             the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall
             not have the effect of substantially impeding the operation of the City of Muskegon or impairing the
             financial soundness of a taxing unit which levies ad valorem property taxes in the City of
             Muskegon.

          2) The application of Lakeside Surfaces Inc, for the issuance of an Industrial Facilities Tax Exemption
             Certificate with respect to the installation of new machinery and equipment on the following
             described parcel of real property situated within the City of Muskegon to wit:

                  CITY OF MUSKEGON PORT CITY IND CTR #4 LOT 38 ALSO INCL THAT PART NW
                  1/4 SE 1/4 SEC 34 T10N R16W LYING S OF CL LITTLE BLACK CREEK & N OF LOT
                  38 PORT CITY IND CTR #4

          3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
             effect for a period of 12 years on real property.



Adopted this 27th Day of June 2017.




6/22/17
Ayes:

Nays:

Absent:

                                                   BY: __________________________________
                                                          Stephen J. Gawron
                                                          Mayor

                                              ATTEST: __________________________________
                                                         Ann Meisch
                                                         Clerk




                                               CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete a resolution adopted by the Muskegon City
Commission, County of Muskegon, Michigan, at a regular meeting held on June 27, 2017.

                                                            ______________________________
                                                            Ann Meisch
                                                            Clerk




6/22/17
                                 CITY OF MUSKEGON

                         CONTRACT FOR TAX ABATEMENT
                             Act 198 Public Acts of 1974


       AGREEMENT between CITY OF MUSKEGON, a municipal corporation of 933
Terrace Street, Muskegon, Michigan 49441, (“City”) and LAKESIDE SURFACES, INC
(“Company”).
                                     Recitals:

A.      The Company has applied to City for the establishment of an industrial
development district or industrial rehabilitation district pursuant to the provisions of Act
198 of the Public Acts of 1974, as amended, which act requires a contract between the
City and the Company to be agreed and submitted with the Company’s subsequent
anticipated application for an industrial facilities exemption certificate.

B.       That in addition to the statutory requirement, the City has determined that it is in
the best interests of the taxpayers, property owners and residents of the City that this
Agreement be approved and executed prior to the establishment of the requested district,
and the City deems this Contract, together with the conditions set forth in the said Act to
constitute a necessary element in the City’s determination whether or not to create the
district.

C.      The Company intends to install the project set forth in its application (“project”)
which it believes qualifies for the process of establishing the district and the application
for industrial facilities exemption certificate.

D.      The City, provided this Agreement is executed, will determine whether to create
the district based upon the potential for the production of permanent jobs, the
continuation or increase of economic activity, planning and zoning considerations and the
City’s general plan and intentions regarding economic development. In addition to the
City policy considerations and predictions that the Company’s proposed district and
certificate benefit the community in those ways, the City has further determined that the
contractual commitments made by the Company to thereby assist the community shall be
binding on the Company and necessary to continue the tax exemption made possible by
the certificate.

       NOW THEREFORE THE PARTIES AGREE:

1.     COMPANY AGREEMENT. The Company irrevocably commits to the
investment, job retention and job creation promises made in its application, a copy of
which is attached hereto and incorporated herein. In particular the Company agrees:




                                                                                       Page 1
1.1 That 100% of the jobs shall be filled and in existence with full-time
employees by a date no later than two (2) years from the date of the granting of
the certificate by the State Tax Commission.

1.2 The Company shall meet the affirmative action goal included in the
application or in any documents supplied by the City and utilized by the
Company, including any additional representations made to the City Commission
on or before the date two (2) years after the granting of the certificate by the State
Tax Commission. It shall maintain the said levels of employment diversity during
the period of the certificate.

1.3 The Company, by the end of two (2) years from the date of the grant of the
certificate by the State Tax Commission shall have completed the investment of
$2,387,655 in personal property improvements as shown in the application.

1.4 That the improvements and equipment to receive the tax abatement treatment
shall be completed on or before the date two (2) years from the date of granting of
the certificate by the State Tax Commission.

1.5 The Company shall pay its specific taxes required by the act in a timely
manner, and shall not delay payments so as to incur any penalties or interest.

1.6 The Company shall not appeal the valuation of any real or personal property
at the facility to the Michigan Tax Tribunal or the State Tax Commission.

1.7 The Company shall fully cooperate with the City representatives in
supplying all requested and required documentation regarding jobs, investment,
the meeting of all goals and the timely installation and utilization of equipment
and improvements. The City shall be entitled to inspect at reasonable hours the
Company’s premises where the said improvements and equipment have been
installed and where the said jobs are performed.

1.8 The Company shall maintain, during the entire period for which the tax
abatement is granted, the level of jobs, affirmative action goals, production and
utilization of the improvements and equipment at the site where the district has
been created and for which the tax exemption has been granted.

1.9 The Company shall not cause or fail to cure the release of any hazardous
substance, or the violation of any environmental law on its premises in the City.
It shall report any releases to the appropriate governmental authority in a timely
and complete manner, and provide copies of said report documentation to the
City. It shall comply with all orders and actions of any governmental agency
having authority.

1.10 The Company shall maintain the equipment and improvements so as to
minimize physical or functional obsolescence.



                                                                               Page 2
       1.11 The Company shall continue to operate its business location in the City,
       containing the same number of and type of jobs, for the term of the certificate.

2.      AGREEMENT BY THE CITY. Provided this contract has been executed and
further provided all applications to create the district and achieve the industrial facility
exemption certificate have been properly filed, the City shall, in a timely manner,
determine in a public meeting to create the district and receive, process, and approve
thereafter the Company’s application for an industrial facilities exemption certificate.
The City may consider this contract in a meeting separate from and prior to the meeting
in which the City considers the creation of the district and approval of the application for
certificate. Further, the City shall require the submission of this contract signed by the
Company together with its applications, before creating the district.

3.     EVENTS OF DEFAULT. The following actions or failures to comply shall be
considered events of default by the Company:

       3.1 Failure to meet any of the commitments set forth above.

       3.2 The closing of the Company’s facilities in the City. Closing shall mean for
       purpose of this Agreement, the removal, without transfer to another site within the
       City of substantially all of the production facilities, and the elimination of
       substantially all the jobs created or retained thereby, which are set forth in the
       Company’s application.

       3.3 Failure to afford to the City the documentation and reporting required.

       3.4 The failure to create or retain jobs, meet affirmative action goals or expend
       the funds on equipment and improvements as represented in the application
       within the times required hereby.

       3.5 The bankruptcy or insolvency of the Company.

       3.6 The failure to pay any and all taxes and assessments levied on the
       Company’s property or any other taxes, local, state or federal, including but not
       limited to City income taxes and the withholding of said City income taxes from
       employees as required by the City Income Tax Ordinance.

       3.7 The performance or omission of any act which would lead to revocation
       under MCLA 207.565, being §15 of the Act.

       3.8 The violation of any provisions, promises, commitments, considerations or
       covenants of this Agreement.

4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City
shall have the following remedies which it may invoke without notice, except as may be
reasonably required by the Company’s rights to due process:



                                                                                      Page 3
4.1 In the event of closing as determined after investigation of the facts and a
public hearing, the Company shall be immediately liable for penalties to be paid
forthwith to the city as determined as follows:

       4.1.1 The Company shall pay to the City for prorata distribution to the
       taxing units experiencing the abatement, an amount equal to the difference
       between the industrial facilities tax which it has paid, and the total
       property taxes to the relevant taxing units which it would have paid, given
       its installations of improvements and equipment, during the years for
       which the certificate was in effect.

       4.1.2 Immediate Revocation. The Company hereby consents to
       revocation to the IFT certificate before the State Tax Commission, without
       hearing, and the City shall submit a copy of this Agreement to the State
       Tax Commission in connection with its revocation procedure, giving
       notice that the default has occurred and immediate revocation should
       occur.

4.2 In the event the improvements and equipment have not been installed before
the two (2) year period, in addition to the revocation procedures before the State
Tax Commission, the abatement should immediately be reduced by the City
proportionately, and any installations which have not been finished at the end of
said two (2) year period shall not be eligible for the abatement thereafter and shall
be placed on the regular tax roll.

4.3 Failure to Expend the Funds Represented. In the event, (whether or not the
installations have been completed), the Company has not expended the funds it
has represented on its application that it would invest for the installation of
equipment, the abatement shall be reduced prorata, and any remaining value of
equipment shall be placed on the regular tax roll.

4.4 Job Creation and Retention. In the event the promised number of jobs have
not been created or retained at the end of the two (2) years after the grant of the
certificate by the State Tax Commission, the abatement shall be proportionately
reduced.

4.5 Affirmative Action Goals. In the event, after one (1) year from the grant of
the certificate by the State Tax Commission, the affirmative action goals of the
City for additional jobs have not been met on a prorata basis, the abatement shall
be revoked.

4.6 For other violations of this Agreement or for actions or omissions by the
Company amounting to grounds for revocation by statue, the City shall
recommend to the State Tax Commission immediate revocation of the certificate.




                                                                              Page 4
     4.7 Special Assessment. For any amount due to be paid to the City, under this
     Section 4, the Company consents that the City shall have a personal action against
     the Company for the said amount, and in addition, cumulatively, and not by
     election, the City shall have a special assessment lien on all the property of the
     Company personal and real, located in the City, for the collection of the amounts
     due as and in the manner of property taxes and in such case the collection of the
     said special assessment shall be accomplished by addition by the City to the
     Company’s property tax statement regularly rendered.

5. Governing Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of Michigan applicable to contracts made and to be
performed within the State of Michigan.

6. Counterparts. This Agreement may be executed in one or more counterparts.
Notwithstanding such execution all such counterparts shall constitute one and the same
Agreement.

7. Benefit. This Agreement shall be binding upon and inure to the benefit of the
respective parties, their successors and personal representatives.

8. Effective Date. This Agreement shall be effective on the date the State of
Michigan Tax Commission grants the company at Industrial Facilities Exemption
Certificate.
                                               CITY OF MUSKEGON

                                                    By _________________________
                                                        Stephen J. Gawron, Mayor

                                                  Date _________________________


                                                  and___________________________
                                                          Ann Meisch, Clerk

                                                  Date _________________________


                                                  By___________________________

                                                         Its______________________

                                                  Date _________________________




                                                                                Page 5
                     Commission Meeting Date: June 27, 2017




Date:         June 22, 2017
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request to Transfer Two Industrial Facilities
              Exemption Certificate to KLO Acquisition, LLC


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, KLO Acquisition, LLC, 1790 Sun Dolphin
Dr, has requested the transfer of two personal property Industrial Facilities Tax Exemption
Certificates (IFT) from Ameriform Acquisition, LLC. These would include Certificate
numbers 2011-302 (set to expire at the end of 2019) and 2014-435 (set to expire at the end
of 2023).

FINANCIAL IMPACT:

The City will continue to capture the same amount of property taxes generated by the
original IFT.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution granting the transfer of the IFTs.

COMMITTEE RECOMMENDATION:

None




6/22/2017
                                            Resolution No. _______

                                       MUSKEGON CITY COMMISSION

                    RESOLUTION APPROVING APPLICATION FOR TRANSFER
            OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATES #2011-302 & #2014-435
                                      KLO Acquisition, LLC


WHEREAS, pursuant to P.A 198 of 1974, M.C.L. 207.551 et seq., as amended, after duly noticed public hearing
held on July 26, 1983, this Commission by resolution established an Industrial Development District as
requested by the City of Muskegon for Port City Industrial Park, including the property owned by KLO
Acquisition, LLC, 1790 Sun Dolphin Rd, Muskegon, Michigan 49444; and

WHEREAS, the City of Muskegon approved two applications from Ameriform Acquisition, LLC requesting two
Industrial Facilities Exemption Certificates (numbers 2011-302 & 2014-435) for personal property investments
located at 1790 Sun Dolphin Rd, Muskegon, Michigan 49444; and

WHEREAS, KLO Acquisition, LLC has filed an application for a transfer of Industrial Facilities Exemption
Certificates #2011-302 and #2014-435 with respect to $1,700,000 in personal property (#2011-302) and
$4,625,000 in personal property (#2014-435) within the Industrial Development District (Port City Industrial
Park); and

WHEREAS, the applicant, the Assessor, and a representative of the affected taxing units were given written
notice of the transfer application and were offered an opportunity to be heard on said application; and

WHEREAS, KLO Acquisition, LLC has substantially met all the requirements under Public Act 198 of 1974 for
the transfer of Industrial Facilities Exemption Certificates #2011-302 & #2014-435; and

WHEREAS, the aggregate SEV of real and personal property exempt from ad valorem taxes within the City of
Muskegon, after granting this certificate, will not exceed 5% of an amount equal to the sum of the SEV of the
unit, plus the SEV of personal and real property thus exempted; and

NOW, THEREFORE, BE IT RESOLVED BY the City Commission of the City of Muskegon that:

1. The City of Muskegon finds and determines that the granting of the transfer of an Industrial Facilities
Exemption Certificate considered together with the aggregate amount of certificates previously granted and
currently in force under Act No. 198 of the Public Acts of 1974 and Act No. 255 of the Public Acts of 1978, shall
not have the effect of substantially impeding the operation of the City of Muskegon, or impairing the
financial soundness of a taxing unit which levies ad valorem property taxes in the City of Muskegon.

2. The application from KLO Acquisition, LLC for a transfer of Industrial Facilities Exemption Certificates #2011-
302 & #2014-435, with respect to a personal property on the following described parcel of real property situated
within the Industrial Development District (Port City Industrial Park) to wit:

CITY OF MUSKEGON SEC 34 T10N R16W THAT PT S 1/2 SW 1/4 PARCEL 1 DESC AS COM @ S 1/4
COR SD SEC TH S 89D 34M 26S W ALG S LN SD SEC 1382 FT TH N 00D46M 26S E PAR TO N/S 1/4
LN SD SEC 900 FT TH S 89D 34M 26S W PAR TO S LN SD SEC 340 FT FOR POB TH N 00D 46M
26S E PAR TO SD N/S 1/4 LN 440.45 FT TO N LN SD S 1/2 SW 1/4 TH S 89D 46M 13S W ALG SD N
LN 940.12 FT TO W LN SD SEC TH S 01D 08M 39S W AGL SD W LN 7.32 FT TO NELY LN MI ST
HWY DEPT ROW AS DESC IN DEED RECOR'D 703/374 TH S 34D 43M 34S E ALG SD NELY LN
528.10 FT TH N 89D 34M 26S E 633.50 FT TO POB THAT PRT S 1/2 SW 1/4 DESC AS COM @ S 1/4
COR SD SEC TH N 00D 46M 26S E ALG N/S 1/4 LN SD SEC 350 FT TO N LN SHERMAN BLVD TH S
89D 34M 26S W PAR TO S LN SD SEC & ALG N LN SD SHERMAN BLVD 350 FT TH N 00D 46M 26S
E PAR TO N/S 1/4 LN 411.78 FT TH NLY ALG ARC OF 200 FT RD CURVE TO LT DIST OF 19.22 FT



6/22/17
(CNTRL ANG SD CURVE IS 05D 30M 20S & LC SD CURVE BEARS N 01D 58M 44S W 19.21 FT) TO
POB TH NWLY ALG ARC OF 200 FT RD CURVE TO LT DIST 299.13 FT (CENTRAL ANG SD CIRVE
IS 85D 41M 40S & LC SD CURVE BEARS N 47D 34M 44S W 272.02 FT) TH S 89D 34M 26S W
1007.78 FT TH N 30D 12M 47S W 67.97 FT TH S 89D 34M 26S W 125 FT TH N 00D 46M

3. The Industrial Facilities Exemption Certificates when issued shall remain in force for the remaining years
approved under Industrial Facilities Exemption certificates #2011-302 with an end date of 12/31/2019 and
#2014-435 with an end date of 12/31/2023.



Adopted this 27th Day of June 2017.


Ayes:

Nays:

Absent:

                                                    BY: __________________________________
                                                           Stephen J. Gawron
                                                           Mayor

                                               ATTEST: __________________________________
                                                          Ann Meisch
                                                          Clerk




                                                CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete a resolution adopted by the Muskegon City
Commission, County of Muskegon, Michigan, at a regular meeting held on June 27, 2017.

                                                             ______________________________
                                                             Ann Meisch
                                                             Clerk




6/22/17
                                 CITY OF MUSKEGON

                         CONTRACT FOR TAX ABATEMENT
                             Act 198 Public Acts of 1974


       AGREEMENT between CITY OF MUSKEGON, a municipal corporation of 933
Terrace Street, Muskegon, Michigan 49441, (“City”) and KLO Acquisition, LLC
(“Company”).
                                     Recitals:

A.      The Company has applied to City for the establishment of an industrial
development district or industrial rehabilitation district pursuant to the provisions of Act
198 of the Public Acts of 1974, as amended, which act requires a contract between the
City and the Company to be agreed and submitted with the Company’s subsequent
anticipated application for an industrial facilities exemption certificate.

B.       That in addition to the statutory requirement, the City has determined that it is in
the best interests of the taxpayers, property owners and residents of the City that this
Agreement be approved and executed prior to the establishment of the requested district,
and the City deems this Contract, together with the conditions set forth in the said Act to
constitute a necessary element in the City’s determination whether or not to create the
district.

C.      The Company intends to install the project set forth in its application (“project”)
which it believes qualifies for the process of establishing the district and the application
for industrial facilities exemption certificate.

D.      The City, provided this Agreement is executed, will determine whether to create
the district based upon the potential for the production of permanent jobs, the
continuation or increase of economic activity, planning and zoning considerations and the
City’s general plan and intentions regarding economic development. In addition to the
City policy considerations and predictions that the Company’s proposed district and
certificate benefit the community in those ways, the City has further determined that the
contractual commitments made by the Company to thereby assist the community shall be
binding on the Company and necessary to continue the tax exemption made possible by
the certificate.

       NOW THEREFORE THE PARTIES AGREE:

1.     COMPANY AGREEMENT. The Company irrevocably commits to the
investment, job retention and job creation promises made in its application, a copy of
which is attached hereto and incorporated herein. In particular the Company agrees:




                                                                                       Page 1
1.1 That 100% of the jobs shall be filled and in existence with full-time
employees by a date no later than two (2) years from the date of the granting of
the certificate by the State Tax Commission.

1.2 The Company shall meet the affirmative action goal included in the
application or in any documents supplied by the City and utilized by the
Company, including any additional representations made to the City Commission
on or before the date two (2) years after the granting of the certificate by the State
Tax Commission. It shall maintain the said levels of employment diversity during
the period of the certificate.

1.3 That the improvements and equipment to receive the tax abatement treatment
shall be completed on or before the date two (2) years from the date of granting of
the certificate by the State Tax Commission.

1.4 The Company shall pay its specific taxes required by the act in a timely
manner, and shall not delay payments so as to incur any penalties or interest.

1.5 The Company shall not appeal the valuation of any real or personal property
at the facility to the Michigan Tax Tribunal or the State Tax Commission.

1.6 The Company shall fully cooperate with the City representatives in
supplying all requested and required documentation regarding jobs, investment,
the meeting of all goals and the timely installation and utilization of equipment
and improvements. The City shall be entitled to inspect at reasonable hours the
Company’s premises where the said improvements and equipment have been
installed and where the said jobs are performed.

1.7 The Company shall maintain, during the entire period for which the tax
abatement is granted, the level of jobs, affirmative action goals, production and
utilization of the improvements and equipment at the site where the district has
been created and for which the tax exemption has been granted.

1.8 The Company shall not cause or fail to cure the release of any hazardous
substance, or the violation of any environmental law on its premises in the City.
It shall report any releases to the appropriate governmental authority in a timely
and complete manner, and provide copies of said report documentation to the
City. It shall comply with all orders and actions of any governmental agency
having authority.

1.9 The Company shall maintain the equipment and improvements so as to
minimize physical or functional obsolescence.
1.10 The Company shall continue to operate its business location in the City,
containing the same number of and type of jobs, for the term of the certificate.




                                                                               Page 2
2.      AGREEMENT BY THE CITY. Provided this contract has been executed and
further provided all applications to create the district and achieve the industrial facility
exemption certificate have been properly filed, the City shall, in a timely manner,
determine in a public meeting to create the district and receive, process, and approve
thereafter the Company’s application for an industrial facilities exemption certificate.
The City may consider this contract in a meeting separate from and prior to the meeting
in which the City considers the creation of the district and approval of the application for
certificate. Further, the City shall require the submission of this contract signed by the
Company together with its applications, before creating the district.

3.     EVENTS OF DEFAULT. The following actions or failures to comply shall be
considered events of default by the Company:

       3.1 Failure to meet any of the commitments set forth above.

       3.2 The closing of the Company’s facilities in the City. Closing shall mean for
       purpose of this Agreement, the removal, without transfer to another site within the
       City of substantially all of the production facilities, and the elimination of
       substantially all the jobs created or retained thereby, which are set forth in the
       Company’s application.

       3.3 Failure to afford to the City the documentation and reporting required.

       3.4 The failure to create or retain jobs, meet affirmative action goals or expend
       the funds on equipment and improvements as represented in the application
       within the times required hereby.

       3.5 The bankruptcy or insolvency of the Company.

       3.6 The failure to pay any and all taxes and assessments levied on the
       Company’s property or any other taxes, local, state or federal, including but not
       limited to City income taxes and the withholding of said City income taxes from
       employees as required by the City Income Tax Ordinance.

       3.7 The performance or omission of any act which would lead to revocation
       under MCLA 207.565, being §15 of the Act.

       3.8 The violation of any provisions, promises, commitments, considerations or
       covenants of this Agreement.

4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City
shall have the following remedies which it may invoke without notice, except as may be
reasonably required by the Company’s rights to due process:




                                                                                      Page 3
4.1 In the event of closing as determined after investigation of the facts and a
public hearing, the Company shall be immediately liable for penalties to be paid
forthwith to the city as determined as follows:

       4.1.1 The Company shall pay to the City for prorata distribution to the
       taxing units experiencing the abatement, an amount equal to the difference
       between the industrial facilities tax which it has paid, and the total
       property taxes to the relevant taxing units which it would have paid, given
       its installations of improvements and equipment, during the years for
       which the certificate was in effect.

       4.1.2 Immediate Revocation. The Company hereby consents to
       revocation to the IFT certificate before the State Tax Commission, without
       hearing, and the City shall submit a copy of this Agreement to the State
       Tax Commission in connection with its revocation procedure, giving
       notice that the default has occurred and immediate revocation should
       occur.

4.2 In the event the improvements and equipment have not been installed before
the two (2) year period, in addition to the revocation procedures before the State
Tax Commission, the abatement should immediately be reduced by the City
proportionately, and any installations which have not been finished at the end of
said two (2) year period shall not be eligible for the abatement thereafter and shall
be placed on the regular tax roll.

4.3 Failure to Expend the Funds Represented. In the event, (whether or not the
installations have been completed), the Company has not expended the funds it
has represented on its application that it would invest for the installation of
equipment, the abatement shall be reduced prorata, and any remaining value of
equipment shall be placed on the regular tax roll.

4.4 Job Creation and Retention. In the event the promised number of jobs have
not been created or retained at the end of the two (2) years after the grant of the
certificate by the State Tax Commission, the abatement shall be proportionately
reduced.

4.5 Affirmative Action Goals. In the event, after one (1) year from the grant of
the certificate by the State Tax Commission, the affirmative action goals of the
City for additional jobs have not been met on a prorata basis, the abatement shall
be revoked.

4.6 For other violations of this Agreement or for actions or omissions by the
Company amounting to grounds for revocation by statue, the City shall
recommend to the State Tax Commission immediate revocation of the certificate.




                                                                              Page 4
     4.7 Special Assessment. For any amount due to be paid to the City, under this
     Section 4, the Company consents that the City shall have a personal action against
     the Company for the said amount, and in addition, cumulatively, and not by
     election, the City shall have a special assessment lien on all the property of the
     Company personal and real, located in the City, for the collection of the amounts
     due as and in the manner of property taxes and in such case the collection of the
     said special assessment shall be accomplished by addition by the City to the
     Company’s property tax statement regularly rendered.

5. Governing Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of Michigan applicable to contracts made and to be
performed within the State of Michigan.

6. Counterparts. This Agreement may be executed in one or more counterparts.
Notwithstanding such execution all such counterparts shall constitute one and the same
Agreement.

7. Benefit. This Agreement shall be binding upon and inure to the benefit of the
respective parties, their successors and personal representatives.

8. Effective Date. This Agreement shall be effective on the date the State of
Michigan Tax Commission grants the company at Industrial Facilities Exemption
Certificate.
                                               CITY OF MUSKEGON

                                                    By _________________________
                                                        Stephen J. Gawron, Mayor

                                                  Date _________________________


                                                  and___________________________
                                                          Ann Meisch, Clerk

                                                  Date _________________________


                                                  By___________________________

                                                         Its______________________

                                                  Date _________________________




                                                                                Page 5
COMMISSION MEETING DATE: June 27, 2017

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN1709364


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located
at 533 Jackson Ave is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract 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.

Location and ownership: This structure is located on Jackson Ave between
Marshall Street and Herrick Street in the Jackson Hill Neighborhood and is
owned by Doris Johnson, Ypsilanti MI (Land Contractor Holder) and Phyillis
McQuirter, Grand Rapids MI.

Staff Correspondence: A structure fire occurred on 10/3/14. A dangerous
building inspection was conducted on 03/29/17. The Notice and Order to Repair
was issued on 05/01/17. On 06/01/17 the HBA declared the structure
substandard and dangerous.


Financial Impact: General Funds

Budget action required: None

State Equalized value:     $13,300

Estimated cost to repair: $11,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish all structures on the property
Owner Contact: The daughter of the deceased owner, McQuirter, stated her
mother was selling the home on a Land Contact to Johnson and Johnson
defaulted on the payments. McQuirter said they foreclosing on the Land Contract
and once the legal work is complete, she will be demolishing the home.

Permits obtained: None

                   DANGEROUS BUILDING INSPECTION
Enforcement # EN1709364
Parcel # 24-205-023-0001-00

Date completed: March 29, 2017

   1. DEFICENCIES:
   2. Front porch is rotted, pillar supports are rotted and have peeling or
       no paint
   3. Siding are rotted or missing boards, peeling or missing paint
   4. Tree(s) are growing onto the house
   5. Roofing is deteriorated or missing
   6. Roof flashing are missing or not installed correctly on rear half of
       home
   7. Soffits & fascia are missing, rotted or not attached
   8. Window have rotted sills and sashes
   9. Gas service locked out, gas and electric are present on home
   10. Garage has rotted causing the garage to lean. Siding is missing,
       rotted and has peeling paint
   11. Garage service door and overhead door are rotted and damaged
   12. NOTE: Interior inspection of the home was not completed at this time


         If you disagree with the decision of the City Commission, you have the right to
file a petition for superintending control in the Circuit Court for the County of Muskegon
within 21 days after the City Commission concurs.
COMMISSION MEETING DATE: June 27, 2017

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN1708579


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located
at 1440 Jiroch St is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract 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.

Location and ownership: This structure is located on Jiroch Street between Irwin
Ave and Grand Ave and is owned by the Muskegon County Treasurer and Fifth
Third Bank.

Staff Correspondence: A dangerous building inspection was conducted on
04/25/17. The Notice and Order to Repair was issued on 05/01/17. On 06/01/17
the HBA declared the structure substandard and dangerous.


Financial Impact: General Funds

Budget action required: None

State Equalized value:     $3,900

Estimated cost to repair: $40,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
Owner Contact: A structure fire occurred on 11/18/16 causing heavy damage to
the two unit rental dwelling. Fire insurance for a rental dwelling was canceled
prior to the fire. The owner allowed tax foreclosure in 2017. No owner contact.

Permits obtained: None

                      DANGEROUS BUILDING INSPECTION

Enforcement # EN1708579
Property Address: 1440 JIROCH ST
Parcel # 24-205-274-0006-00

Date completed: April 25, 2017

DEFICENCIES:
Note: Structure fire occurred on 11/18/2016.
   1. Upper floor of the 2 story, 2 unit rental dwelling, received heavy fire
      damage.
   2. Smoke and water damage have noted throughout the entire dwelling
   3. Sections of the roof are missing or have caved in
   4. Numerous windows are broken or missing
   5. Several areas of siding are missing, melted or not complete
   6. Electrical service to the home was terminated during firefighting
      operations and meter(s) were removed. Electrical service must be
      brought up to code before service is restored
   7. Gas service was terminated during firefighting operations. Meter for
      upper has been removed, lower unit meter still attached. Piping for
      gas must be brought up to code before service is restored
   8. Fascia and soffits are damaged or missing
   9. Porch windows not damaged have peeling paint
      Note: Exterior only inspection conducted at this time.

         If you disagree with the decision of the City Commission, you have the right to
file a petition for superintending control in the Circuit Court for the County of Muskegon
within 21 days after the City Commission concurs.
COMMISSION MEETING DATE: June 27, 2017

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN1709367


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located
at 1460 Hoyt St is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract 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.

Location and ownership: This structure is located on Hoyt St. between Irwin Ave
and E. Grand Ave is owned by Murray R. Vanderstelt, 1719 S. Getty St,
Muskegon, MI.

Staff Correspondence: The home has been vacant since 2008. A dangerous
building inspection was conducted on 03/29/17. The first Notice and Order to
Repair was issued on 04/03/17. A second Notice of Order to Repair was issued
on 05/01/17. On 06/01/17 the HBA declared the structure substandard and
dangerous.


Financial Impact: General Funds

Budget action required: None

State Equalized value:     $17,000

Estimated cost to repair: $25,500

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
Owner Contact: Owner scheduled a “trade’s inspection” for 5/16/17. Inspectors
met with the owner at the home and the owner would not allow inspectors to
complete an interior inspection. An exterior inspection was conducted and the
owner was advised of the necessary repairs. The owner said, “I want to avoid the
HBA, I will make the repairs”. The owner was advised he must provide a plan
and a time table to complete the repairs. The owner called on 5-23-17 and said
he wanted to paint the home. I informed the owner just painting the exterior
would not keep the home from the HBA meeting. There was no further contact
from the owner until the HBA meeting on 6-1-17.

Permits obtained: None

                  DANGEROUS BUILDING INSPECTION
Enforcement # EN1709367
Parcel # 24-205-272-0008-00
Date completed: March 29, 2017

DEFICENCIES:
  1. Siding has peeling paint or areas with no paint
  2. Siding is rotted or missing
  3. Evasive trees/brush have grown into the foundation
  4. Many window frames and sills are rotted
  5. Many windows are cracked, broke, boarded or missing
  6. Foundation blocks are cracked or missing
  7. Roofing is deteriorated and must be removed and replaced. A
      section of roofing on south side near chimney has collapsed
  8. Fascia and soffits are rotted or missing
  9. Rear steps to upper unit are rotted and must be replaced
  10. Garage roof is deteriorated, foundation is missing and structure is
      leaning. Garage overhead doors are rotted and windows are missing
  11. Electrical service must be replaced and upgraded

         If you disagree with the decision of the City Commission, you have the right to
file a petition for superintending control in the Circuit Court for the County of Muskegon
within 21 days after the City Commission concurs.
Date:         June 20, 2017
To:           Honorable Mayor and City Commissioners
From:         Beth Lewis, Finance Director
RE:           Adoption 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 has been reviewed in detail with staff at the June 12th Worksession. A
public hearing on the budget was 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.
Date:    June 27, 2017

To:      Honorable Mayor and City Commissioners

From: Engineering
RE:      Change Order to add Harris Street resurfacing from Sherman to
         Sundolphin to the Glenside, Sherman to Glen (H-1708)



SUMMARY OF REQUEST:

Authorize staff to execute a change order with McCormick Sand Inc. adding the milling
& resurfacing of Harris to the Glenside project as per the attached proposal.

This request is contingent upon the approval of the proposed CIP projects in the
proposed 2017/2018 budget.



FINANCIAL IMPACT:
Estimated cost for construction is $113,859.28.



BUDGET ACTION REQUIRED:
None at this time assuming the proposed 2017/2018 CIP is adopted.


STAFF RECOMMENDATION:
Authorize staff to execute a change order with McCormick Sand Inc. as per the attached
proposal.



COMMITTEE RECOMMENDATION:
         5430 Russell Rd. · Twin Lake, MI 49457 · Ph. 231-766-0466 · Fax 231-766-5162


Date:         June 14, 2017

To:           Attn: Mohammed Al-Shatel, P.E.
              Engineering Department
              City of Muskegon
              933 Terrace Street
              Muskegon, MI 49440

RE:           Price Proposal for Harris Drive and Sun Dolphin Street Resurfacing

Below is the price proposal for milling and resurfacing of Harris Drive, north of Sherman
Blvd and Sun Dolphin St, from Harris Drive, west to the cul-de-sac.

Work is similar in nature to H-1708 Glenside, Sherman to Glen and will be executed in
accordance with the same specifications.

Description                    QTY        UOM        Unit Price     Total
Mobilization                            1 LS         $ 12,200.00     $ 12,200.00
Milling                              4926 SYD        $       1.75    $ 8,620.50
Agg Base Conditioning                4926 SYD        $       2.50    $ 12,315.00
Dr Struct Adj, Case 1 Mod               4 EA         $ 1,200.00      $ 4,800.00
Valve Box Reconstruct                   6 EA         $ 1,200.00      $ 7,200.00
Traffic Control                         1 LS         $ 1,250.00      $ 1,250.00
HMA 5E3                               867 TN         $     75.84     $ 65,753.28
Pavt Mrkg, WB, 4", Yellow            1531 FT         $       0.50    $    765.50
Pavt Mrkg, WB, 4", White              216 FT         $       0.50    $    108.00
Pavt Mrkg, OCP, 18" Stop Bar           34 FT         $       5.50    $    187.00
Pavt Mrkg, OCP, "ONLY" Sym              3 EA         $ 110.00        $    330.00
Pavt Mrkg, OCP, Arrow Sym               3 EA         $ 110.00        $    330.00
Total                                                               $ 113,859.28

Sincerely,

McCormick Sand, Inc.



David Vander Molen, P.E.
Project Manager
Date:       6/27/2017

To:          Honorable Mayor and City Commission

From:        Department of Public Works

RE:         Adopt Michigan DNR Grant Resolution


SUMMARY OF REQUEST:

To adopt the attached resolution and authorize the mayor and clerk to sign the agreement
(attached) between the Michigan Department of Natural Resources and the City of Muskegon.

FINANCIAL IMPACT:

$30,000 is the city’s match.

BUDGET ACTION REQUIRED:

None is necessary if the proposed budget for 2017/2018 is approved.


STAFF RECOMMENDATION:

To approve the resolution and authorize the mayor and clerk to sign the agreement.




                                                                                            1
                                                RESOLUTION
Upon Motion made by_________________________, second by________________________, the following

resolution was adopted:

“RESOLVED, that the City of Muskegon, Muskegon County, Michigan does hereby accept the terms of the

Agreement as received from the Michigan Department of Natural Resources, and the City does hereby

specifically agree, but not by way or limitation, as follows:

       1. To appropriate the sum of Thirty Thousand dollars ($30,000.00), to match the grant authorized by

           the department.

       2. To maintain satisfactory financial accounts, documents, and records and to make the available to the

           Department for auditing at reasonable times.

       3. To negotiate and enter into a contractual relationship with a registered professional engineer so

           licensed by the State of Michigan to provide for the completion of said preliminary engineering

           study in accordance with the established engineering principles, which contractual relationship shall

           be the subject of approval of the Department.

       4. To comply with any and all terms of the said Agreement, including all terms not specifically set

           forth in the foregoing portions of the Resolution.”

           The following aye votes were recorded: ______

           The following nay votes were recorded: ______

State of Michigan  )
                   ) §
County of Muskegon )




                                                                                                                   2
       I, ________________________, Clerk of the City of Muskegon, Muskegon County, Michigan, do
hereby certify that the above is a true and correct copy of the Resolution relative to the Agreement with the
Michigan Department of Natural Resources, which Resolution was adopted by the City Council at a meeting
held ___________________________, 2017


                                             _____________________________________
                                                    City Clerk, Ann Meisch


Dated:________________




                                                                                                                3
Date:       6/27/2017

To:          Honorable Mayor and City Commission

From:        Department of Public Works

RE:          Hartshorn Marina Engineering Study


SUMMARY OF REQUEST:

Authorize staff to enter into an engineering services agreement with
Abonmarche consulting to provide the preliminary engineering as per the
attached proposal and called for by the MDNR’s grant.

FINANCIAL IMPACT:
$60,000 dollars, State of Michigan match of $30,000

BUDGET ACTION REQUIRED:

None if the proposed budget is approved.

STAFF RECOMMENDATION:

Authorize staff to enter into an engineering services agreement with
Abonmarche
June 5, 2017


City of Muskegon
Kevin Santos, Harbor Master
Harbor Master
920 W. Western Ave.
Muskegon, MI 49441


Re:   Muskegon Hartshorn Marina
      Preliminary Engineering Study (PES) Proposal


Dear Mr. Santos:

Thank you for the opportunity to assist the City of Muskegon in the planning process for
Hartshorn Marina. Abonmarche is pleased to present this proposal to complete a preliminary
engineering study (PES) to identify and initiate improvements to the Muskegon Hartshorn
Marina.

Abonmarche is familiar with Hartshorn Marina, as we have
been involved with several phases of improvements since
2002, as well as a marina master plan in 2001. Abonmarche
also helped prepare the application to the State of
Michigan Waterways Commission for completion of the
preliminary engineering study, a process the Commission
encourages before grant applications are submitted for
construction of facility improvements.

We are currently working on other municipal marinas in the
region and will apply our knowledge of this project and
extensive experience within other Great Lakes marinas to
advance the process efficiently.

UNDERSTANDING
We understand the City of Muskegon would like proceed
with previously identified improvements and building
expansion concepts. We have learned of the City’s desires
to replace aging components of the marina, including the
center “T” dock; to reconfigure slip sizes/slip mix; and to
consider a new, multi-functional, year-round facility for the
marina office with public and private bathrooms and other
                                                                Figure 1: 2016 Google Earth Aerial
community features. The study will assess existing conditions
                                                                                                                 Mr. Kevin Santos
                                                                                                                City of Muskegon
                                                                 Muskegon Hartshorn Marina Preliminary Engineering Study Proposal
                                                                                                                     June 5, 2017
                                                                                                                      Page 2 of 5




and prioritize needs and expansion/improvement plans. Ultimately the findings of the study will
inform the strategy for improving the facility and support decisions regarding phasing, grant
applications, and funding allocations.

SCOPE OF SERVICES
We propose the following Scope of Services:

Task 1 – Project Initiation/Kick-Off
Abonmarche will meet with the City to confirm project goals and establish milestones. We will
begin to identify operational needs, unmet slip demand, opportunities for new amenities, and
recent public/boater feedback. Modern marina design standards/requirements such as ADA
and NEC will also be discussed. The meeting will ideally include the City’s project manager
and harbormaster to ensure all major concerns and opportunities are identified and prioritized.
A site visit/tour will also be incorporated into the meeting to allow the team to observe
needs/opportunities in person.

       Task 1 Deliverables
          Meeting Summary
          Project Schedule

Task 2 – Preliminary Engineering Study

       2A. Conditions Assessment
       Abonmarche will complete an inventory of marina components, assess the conditions,
       and identify issues. We will first inventory and review available data/records including
       drawings, permits, surveys, and soil data. Abonmarche will then conduct a detailed
       review of site conditions, including the following components:

              Seawalls, bulkheads, revetment
              ADA Accessibility
              Fixed and floating dock systems
              Gangways/ramps
              Marina utilities, including electric, potable water, communications, pumpout
              Ice suppression
              Parking & waterfront access
              Fish cleaning station
              Marina buildings

       We will collect measurements and photos for inclusion in the final report. After
       completion of the site visit, Abonmarche will summarize observations and identify issues
       that require improvement, replacement, or repair.



                                       O:\Proposals\_Michigan\Governmental\City of Muskegon\Harsthorn PES Proposal\2017-06-05 Muskegon Hartshorn PES - Proposal.docx
                                                                                                              Mr. Kevin Santos
                                                                                                             City of Muskegon
                                                              Muskegon Hartshorn Marina Preliminary Engineering Study Proposal
                                                                                                                  June 5, 2017
                                                                                                                   Page 3 of 5




2B. Marina Market Analysis
In order to satisfy boater needs, capture market demand, and ensure plans efficiently
utilize the available space and infrastructure, Abonmarche will conduct a marina
market analysis. We will first collect and review data from the marina itself, from other
local marinas within Muskegon Lake, and from select regional marinas in Whitehall and
in Grand Haven. We will compare the data to identify the following local/regional
market trends:
         Seasonal/transient occupancy
         Slip mix
         Rates
         Marina services
         Amenities

We will then reach out to the local boating community to survey boater desires and
needs. The results of the boater survey and marina market data will be combined to
create and prioritize a list of recommended improvements.




Figure 2: Hartshorn Marina - Center Floating Dock, January, 2017



2C. Report & Recommendations
Abonmarche will prepare a report that summarizes the results of the above tasks and
provides recommendations for future development of Hartshorn Marina. We will
consider facility opportunities including the components mentioned above. In addition,
we will reach out to the MDEQ and USACE to ascertain permit feasibility and identify
challenges that may impact marina plans.

The report will be submitted as a draft for review before development of concept
improvement plans below (Task 3). Abonmarche will also plan to present the draft
report to the public. After comments are received and addressed, final concept
improvement plans and construction cost estimates from Task 3 will be generated and
the final report will be assembled.




                                    O:\Proposals\_Michigan\Governmental\City of Muskegon\Harsthorn PES Proposal\2017-06-05 Muskegon Hartshorn PES - Proposal.docx
                                                                                                            Mr. Kevin Santos
                                                                                                           City of Muskegon
                                                            Muskegon Hartshorn Marina Preliminary Engineering Study Proposal
                                                                                                                June 5, 2017
                                                                                                                 Page 4 of 5




       It is anticipated the report will contain additional detail regarding each of the marina
       improvement priorities and will serve as a guide for implementation of the plan. At
       minimum, the report will address the following:

          •   Conditions assessment
          •   Marina market analysis & boater survey
          •   National Electric Code (NEC) & Electric shock drowning (ESD) prevention
          •   2010 Americans with Disabilities Act (ADA) Standards for Accessible Design
          •   2003 MDNR Harbor Development Standards
          •   Slip mix, user groups & unmet demand
          •   Opportunities for new amenities
          •   Permit feasibility (permit applications are excluded)
          •   Identify grants & due dates
              o Michigan Waterways Program Grants
              o USFWS Boating Infrastructure Grant (BIG)
              o USFWS Wildlife & Sport Fish Restoration Program
              o Michigan Clean Vessel Act (CVA) Pumpout Grant

       Task 2 Deliverables
          Meeting Summaries
          Preliminary Engineering Study (Draft & Final)
                 o Conditions assessment
                 o Marina market study & boater survey
                 o Development recommendations


Task 3 - Concept Improvements Plans
After identification and prioritization of recommended improvements, Abonmarche will work
with City staff to prepare up to three schematic concepts for the continued development of
the marina. We will prepare cost estimates for each of the concepts and will then refine these
concepts down to a final concept, based upon feedback from the City. Abonmarche will
prepare a construction cost estimate for the final concept, which will help to inform staging
plans, grant applications, and financial planning. It is anticipated that the final concept will be
used to determine next steps and to begin to scope Phase III of the marina improvements.

       Task 3 Deliverables
          Meeting Summaries
          Schematic concepts (up to 3) & construction cost estimates
          Final concept & construction cost estimate




                                  O:\Proposals\_Michigan\Governmental\City of Muskegon\Harsthorn PES Proposal\2017-06-05 Muskegon Hartshorn PES - Proposal.docx
                                                                                                            Mr. Kevin Santos
                                                                                                           City of Muskegon
                                                            Muskegon Hartshorn Marina Preliminary Engineering Study Proposal
                                                                                                                June 5, 2017
                                                                                                                 Page 5 of 5




EXCLUSIONS
This proposal does not include any fees for obtaining record information or permit application
fees. The following services are specifically excluded from this proposal. If a need is identified,
Abonmarche is available to provide a proposal.
    • Boundary, topographic, or bathymetric survey
    • Special studies such as threatened/endangered species, wetland delineation, etc.
    • Hydraulic modeling/wave studies
    • Soil borings – environmental or geotechnical; Subsurface investigation/test holes
    • Local, state or federal permitting; permit processing
    • Design/Bid Documents – final design & specifications

SCHEDULE
Abonmarche proposes to initiate the project in August, 2017, or earlier if necessary. We
anticipate the scope of work herein can be completed within 15 weeks of the notice to
proceed.

FEES
We propose to complete the above Scope of Services for a lump sum fee of $60,000,
including reimbursables and direct costs.

Your signature in the space provided below and on the attached professional services
agreement will authorize us to commence with the work. If you have any questions or
need further clarification, please feel free to contact me at our office.

Sincerely,
ABONMARCHE



Michael C Morphey, PE, LEED AP                                              Christopher J Cook, PE
Senior Project Engineer/Project Manager                                     President/CEO

AUTHORIZED BY:                                                              DATE:




CC:    Tim Drews, PE, PTOE
       Tony McGhee




                                  O:\Proposals\_Michigan\Governmental\City of Muskegon\Harsthorn PES Proposal\2017-06-05 Muskegon Hartshorn PES - Proposal.docx
                                                                                                  Professional Services Agreement

                                                                                                            Abonmarche Project Number:

 AGREEMENT between         (Client name),      City of Muskegon                                                                       (Date)

 (Client address)       920 W. Western Ave.                                                                                     (Phone)

 (Cell)                         (Fax)                                (Email)                                                 hereinafter referred
 to as the Client, and Abonmarche Consultants, Inc., referred to as Abonmarche, of 95 West Main Street, PO Box 1088, Benton Harbor, MI 49023.

 The Client contracts with Abonmarche to perform professional services with regard to the Client’s project generally referred to as:
 (Project
 Name)            Muskegon Hartshorn Marina – Preliminary Engineering Study                    (Location)     Muskegon, MI

 The professional services to be provided by Abonmarche, collectively referred to as the Work Plan, are as follows:

 (Scope of work)          See attached proposal dated 6/5/2017



 (Project schedule)       See attached proposal dated 6/5/2017

 (Special Provisions)     See attached proposal dated 6/5/2017

 Abonmarche’s proposal/work plan, dated           June 5, 2017                     is incorporated into this Agreement by reference, and is limited to the services
 described therein.

 The Client agrees to promptly pay for services provided by Abonmarche for the Scope of Work according to the following:

 (fee $)      See attached proposal dated 6/5/2017

 Prior to commencement of services, the Client will specify any and all documentation that the Client requires for submission with the invoice for services
 provided by Abonmarche. Absent any special request from the Client, Abonmarche will send its standard form of invoice.

 If, after receipt of an invoice from Abonmarche, the Client has any questions, or if there are any discrepancies in the invoice, the Client shall identify the issue in
 writing within ten (10) days of its receipt. If no written objection is made within the ten (10) day period, any such objection shall be deemed waived.

 Abonmarche invoices are due upon receipt. The parties agree that interest of 1.5% per month will be added to any unpaid balance after 30 days.

 The Client has designated                                                           as its Representative. The Representative shall have the authority to
 execute any documents pertaining to this Agreement or amendments thereto, and for the approval of all change orders, addenda, and additional services to
 be performed by Abonmarche. The representative shall be the contact person for submission of all documents, invoices or communications.

 Authorization to Proceed and Guarantee of Payment: By signing this Agreement the Client authorizes Abonmarche to provide services described above, and
 that the Client is the responsible party for making payment to Abonmarche. By signing below, I acknowledge that I have received and agree to the Terms
 and Conditions on Page 2 of this Agreement, and I understand that the Terms and Conditions take precedence over all prior oral and written understandings.
 These Terms and Conditions can only be amended, supplemented, modified, or canceled by a written instrument signed by both parties. Any notice or other
 communications shall be in writing and shall be considered to have been duly given when personally delivered or upon the third day after being deposited
 into first class certified mail, postage prepaid, return receipt requested.

 Authorized Client Representative                       If Individual                                           Authorized Abonmarche Representative

 Client:                                                Signature:                                              Signature:

 Signature:                                             Printed Name:                                           Printed Name:


 Printed Name:                                          Date of Birth:                                          Title:
                                                                                                                Originating        Abonmarche Consultants, Inc.
 Date Signed:                                           Driver’s License #:                                     Office:            95 W. Main Street
                                                                                                                                   PO Box 1088
 Federal Tax ID:                                        Employed by:                                                               Benton Harbor, MI 49023
                                                                                                                                   T 269.927.2295
                                                        Address:                                                                   F 269.927.1017

                                                        City/State                                              Date Signed:

                                                        Date Signed:




Revised 8-19-2014                                                                                                                                        Page 1 of 2
TERMS AND CONDITIONS OF PROFESSIONAL SERVICES                                                   the Client pursuant to the services under this Agreement. Computer files of text,
                                                                                                data, graphics, or of other types of electronic media are the sole possession of
AGREEMENT                                                                                       Abonmarche, unless specifically stated otherwise in an amendment to this
1. Agreement. These Terms and Conditions shall be incorporated by reference and                 Agreement. Any electronic media provided under this Agreement to the Client
    shall prevail as the basis of the Client’s Agreement to Abonmarche. Any Client              are only for the convenience of the Client. Any conclusions or information
    document or communication in addition to or in conflict with these Terms and                obtained or derived from such electronic files will be at the user’s sole risk.
    Conditions shall be subordinate and subject to these provisions.                        15. Bonds and Permits. The Client will be responsible for the adoption of any site
2. Execution. Abonmarche has the option to render this Agreement null and void,                 access or right of way bonds that may be initiated on their behalf. At
    if it is not executed within thirty (30) days of delivery.                                  completion of Abonmarche’s services, the Client will take responsibility and pay
3. Client Responsibilities. The Client will provide all criteria and information                any ongoing bond or permit costs for any bonded or permitted services.
    concerning the requirements of the Project. The Client will assume responsibility       16. Insurance. The Client will cause Abonmarche and Abonmarche’s employees to
    for interpretation of contract documents and for construction observation and               be listed as additional insured on all general liability and property insurance
    will waive all claims against Abonmarche that may be in any way connected,                  policies carried by the Client that are applicable to the Project. Upon request,
    unless Abonmarche’s services under this Agreement include full-time                         the Client and Abonmarche will each deliver to the other certificates of
    construction observation or review of contractor’s performance.                             insurance evidencing their coverage. The Client will require the Contractor to
4. Performance. The standard of care for services performed by or provided by                   purchase and maintain general liability and other insurance as specified in the
    Abonmarche will be the care and skill ordinarily used by Abonmarche’s                       Contract Documents and to cause Abonmarche and Abonmarche’s
    profession practicing under similar circumstances at the same time and in the               employees to be listed as additional insured with respect to such liability and
    same locality. Abonmarche makes no warranty, expressed or implied, with                     other insurance purchased and maintained by the Contractor for the Project.
    respect to any services provided by Abonmarche. Abonmarche will not be                  17. Third party Invoicing. If the Client directs Abonmarche to invoice third party
    liable for any claim, damages, cost, or expense (including attorney’s fees) or              payers, Abonmarche will do so, but the Client agrees to be ultimately
    other liability or loss not directly and solely caused by the negligent acts, errors,       responsible for Abonmarche’s compensation until the Client provides
    or omissions of Abonmarche.                                                                 Abonmarche with the third party’s written acceptance of all terms of this
5. Hourly Billing Rates. If payment is on an hourly rate, Client will pay Abonmarche            Agreement and until Abonmarche agrees to the substitution.
    at the current hourly billing rates. The hourly rates are adjusted annually or as       18. Third Party Beneficiaries. Nothing contained in this Agreement shall create a
    deemed appropriate.                                                                         contractual relationship with or a cause of action in favor of a third party
6. Reimbursable Expenses. Reimbursable expenses, the actual costs incurred                      against either the Client or Abonmarche. Abonmarche’s services under this
    directly or indirectly for the Client’s Project, will be charged at Abonmarche’s            Agreement are being performed solely for the Client’s benefit, and no other
    current rates. Examples of reimbursable expenses include, but are not limited to:           party or entity shall have any claim against Abonmarche because of this
    mileage, tests and analyses, special equipment services, postage and delivery               Agreement or performance or nonperformance of services hereunder. The
    charges, telephone and telefax charges, copying, printing, and binding                      Client and Abonmarche agree to require a similar provision in all contracts with
    charges, commercial transportation, meals, lodging, special fees, licenses, and             contractors, subcontractors, subconsultants, vendors and other entities involved
    permits. Subconsultant and outside technical or professional services will be               in this Project to carry out the intent of this provision.
    charged on the basis of the actual costs times a factor of 1.15.                        19. Suspension of Services. In the event of non-payment by Client, Abonmarche
7. Additional Services. Additional services that may be provided pursuant to the                will have the absolute right to cease performance of any services.
    Agreement or any subsequent modification of the Agreement will be                       20. Contractor’s Work: Abonmarche shall have no authority to direct or control the
    authorized, when possible, by written amendment signed on behalf of the Client              Work of the Contractor or to stop the Work of the Contractor. Abonmarche shall
    and Abonmarche. Additional services, performed by Abonmarche are subject                    not be liable to any party for the failure of the Contractor to perform the Work
    to all Terms and Conditions and the Client will be responsible for payment.                 consistent with the Plans and Specifications and applicable Codes and
    Should the Client, regulatory agency, or any public body or inspector direct                Regulations. Abonmarche shall have no responsibility or be liable for safety
    modification or addition to services covered by this Agreement, including costs             procedures of the Contractor or its subcontractors.
    relating to the relationship between the Client and a third party i.e. punch lists,     21. Notice of Lien Rights. Abonmarche hereby notifies, and the Client
    change orders, and disputes, the cost will be added to the agreed price.                    acknowledges that Abonmarche has lien rights on the Client’s land and
    Requests for extra services should be made in writing via a change order, but               property when Abonmarche provides labor and materials for Projects on the
    none the less, Abonmarche is entitled to be paid for extra services provided                Client’s land and the Client does not pay for those services.
    whether or not it is in writing.                                                        22. Legal Expenses. If Abonmarche brings a lawsuit against the Client to collect
8. Underground Structures or Buried Utilities.             The Client is responsible for        invoiced fees and expenses, the Client shall be legally liable to pay
    identification and location of all public and private buried structures on the              Abonmarche’s expenses, including its actual attorney fees and costs.
    Client’s property and the Project site, such as, but not limited to, storage tanks      23. Liability Limitation. Client and persons claiming through Client agree to limit the
    and lines, or gas, water, sewer, electrical, phone, cable, or any other public or           liability of Abonmarche, its agents and employees, for all claims arising out of, in
    private utilities. It is agreed that Abonmarche is not responsible for accidental           connection with, or resulting from, the performance of the services under this
    damage to utilities or underground structures, whether known, unknown or                    agreement to an amount of $25,000 or the fee paid to us for professional
    improperly located. The client shall be responsible for design fees if changes are          services on this project, whichever is greater. Client acknowledges that
    necessary. Utility locating or marking services provided by Abonmarche are not              Abonmarche is a corporation and agrees that any claim made by Client arising
    substitutes for complying with the utility owner notification requirements or the           out of any act or mission of any director, officer, or employee of Abonmarche, in
    locating services (811 systems) required prior to an excavation. Utilities shown as         execution or performance of this Agreement, shall be made against
    located by ground penetrating radar are approximate only. No excavation                     Abonmarche and not against such director, officer, or employee.
    took place to verify the positions shown or to verify the type of utility (except as    24. Consequential Damages. The Client and Abonmarche waive consequential
    noted). Careful excavation is required for verification of the buried utility. The          damages for claims, disputes, or other matters in question relating to services
    owner or customer assumes the risk of error and the actual location of the                  provided as a part of this Agreement, including for example, but not limited to,
    underground utility. Abonmarche is not providing any certification or guarantee             loss of business.
    regarding the exact location of any underground utility.                                25. Governing Law. This Agreement will be deemed to have been made in Berrien
9. Underground Conditions. Abonmarche shall have no responsibility for the                      County, Michigan and shall be governed by and construed in accordance with
    identification of existing or unforeseen/differing underground conditions. The              the laws of the State of Michigan.
    Contractor shall have sole responsibility for determining the nature of                 26. Exclusive choice of forum. Each party irrevocably and unconditionally agrees
    underground conditions and the means and methods of dealing with those                      that it will not bring any action, litigation, or proceeding against any other party
    conditions. Abonmarche is entitled to rely upon the information provided by                 in any way arising from or relating to this Agreement in any forum other than the
    geotechnical consultants and shall have no responsibility for the accuracy or               courts of the state of Michigan sitting in Berrien and any applicable Michigan
    correctness of the data contained in the geotechnical reports.                              appellate court. Each party irrevocably and unconditionally submits to the
10. Site Access and Security. With the exception of access rights that land surveyors           exclusive jurisdiction of those courts and agrees to bring any such action,
    are afforded by law, the Client will provide Abonmarche access to the Project               litigation, or proceeding only in those courts. Each party agrees that a final
    site and the Client will be responsible for obtaining any necessary permission              judgment in any such action, litigation, or proceeding is conclusive and may be
    from any affected third party property owners for use of their lands. The Client is         enforced in other jurisdictions by suit on the judgment or in any other manner
    solely responsible for site security.                                                       provided by law.
11. Consultants. Abonmarche may engage Consultants at the request of the Client             27. Considerations. The successors, executors, administrators, and legal
    to perform services which are typically the Client’s responsibility, such as surveys,       representatives of the Client and Abonmarche are hereby bound onto the
    geotechnical and environmental assessments. The Client agrees that                          other with respect to the covenants, Agreements, and obligations of this
    Abonmarche will not be responsible for, or in any manner guarantee, the                     Agreement.
    performance of services by the Consultants. The Client agrees that                      28. Acts of God. Neither the Client nor Abonmarche will have any liability for
    Abonmarche will not be liable for any claim, liability, or defense cost for injury or       nonperformance caused in whole or in part by causes beyond Abonmarche's
    loss sustained by any party allegedly caused by the Consultants’ negligence or              reasonable control. Such causes include, but are not limited to, Acts of God,
    willful misconduct.                                                                         civil unrest and war, labor unrest and strikes, acts of authorities, and events that
12. Opinions of Cost. Any opinions of probable construction cost and/or total                   could not be reasonably anticipated.
    project cost provided by Abonmarche will be on the basis of experience and              29. Termination. Either the Client or Abonmarche may terminate this Agreement by
    judgment, but these are only estimates. Abonmarche does not warrant that bids               giving ten (10) days written notice to the other party. In such an event, the
    or ultimate construction or total project costs will not vary from such estimates.          Client will pay Abonmarche in full for all services previously authorized and
13. Ownership of Work Product. Abonmarche will remain the owner of all original                 performed prior to the effective date of the termination, plus (at the discretion
    drawings, reports, and other materials provided to the Client, whether in hard              of Abonmarche) a termination charge to cover finalization of services necessary
    copy or magnetic media form. The Client is authorized to use the copies                     to bring ongoing services to a logical conclusion. Such charge will not exceed
    provided by Abonmarche only in connection with the Project. Any other use or                thirty (30) percent of all charges previously incurred. Upon receipt of such
    reuse by the Client for any purposes whatever will be at the Client’s risk and full         payment, Abonmarche will return to the Client all documents and information
    legal responsibility, without liability to Abonmarche and the Client will defend,           that are the property of the Client.
    indemnify, and hold Abonmarche harmless from all claims, damages, losses,               30. Entire Agreement. This Agreement contains the entire agreement between the
    and expenses, including attorney fees arising out of or resulting there from.               parties and there are no agreements, representations, statements, or
14. Electronic Media. Copies of data, reports, drawings, specifications, and other              understandings which have been relied on by the parties which are not stated
    materials furnished by Abonmarche that may be relied upon by the Client are                 in this Agreement.
    limited to the printed copies (also known as hard copies) that are delivered to                                             End of Agreement.

Revised 8-19-2014                                                                                                                                                         Page 2 of 2
                     Commission Meeting Date: June 27, 2017




Date:         June 27, 2017
To:           Honorable Mayor and City Commissioners
From:         Finance Director
RE:           Sewer Rate Adjustment



SUMMARY OF REQUEST: In 2016 a resolution with a treatment rate for our
customers that is based on a multiplier of 1.49 times the rate the county bills the city
for wastewater was adopted. The 2017/18 budget calls for the multiplier to be raised
to 1.68 based on the recommendation of H.J. Umbaugh & Associates to cover the
costs of capital improvement needs of our aging infrastructure over the next ten
years. Additionally the monthly sewer administration charge will increase from $2.67
to $3.00.


FINANCIAL IMPACT: None at this time.


BUDGET ACTION REQUIRED: None at this time. The proposed rate change
was incorporated into the FY 2017-18 budget that was recently approved by the City
Commission.



STAFF RECOMMENDATION: Adoption of the attached fee adjustment
resolution.
                                       CITY OF MUSKEGON
                                     RESOLUTION NO.________

At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
June 27, 2017.

RECITALS

A review of the rates for sewer service has been accomplished by the city's staff, recommendations received, and
the City Commission has determined that the following rate changes are justified. Accordingly, this resolution is
made for the purpose of maintaining the financial viability of the city's sewer system.

THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES:

1. Effective July 1, 2017, to rescind City of Muskegon Resolution No. 2016-53(M), which was adopted June 28,
2016.

2. Charges for residential sewer service shall be changed from a multiplier of 1.49 to 1.68 of the rate the county
bills the city for wastewater treatment effective July 1, 2017, with future rates to be adjusted as the county
charges are adjusted. The monthly sewer administration charge shall be changed from $2.67 to $3.00.

3. Charges for commercial/industrial sewer service shall continue to be billed at a rate of 1.25 times (1.25x) the
city rate for residential sewer service. The monthly sewer administration charge shall also be changed to $3.00.

4. Charges for all non-metered residential sewer customers will be calculated based on an assumed usage rate
of 12 hundred cu. ft. per month.

5. Unless there is a separate agreement specifying a different billing method, non-resident users of the city sewer
system will be billed at a rate that is double (2x) the city rate for that class of user.

The above changes to be effective as noted above.

This resolution adopted.


YEAS:



NAYS:


CITY OF MUSKEGON

By: ______________________________
    Ann Marie Meisch, MMC, City Clerk

STATE OF MICHIGAN COUNTY OF MUSKEGON

I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of
Commissioners of the City of Muskegon, Michigan, held on the 27th day of June, 2017 and that the minutes of the
meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting was
given pursuant to and in compliance with Act 267, Public Acts of Michigan, 1976.
City of Muskegon
SAW Grant
Asset Management Financial Plan
May 2017


A primary goal of Asset Management is to develop a long term plan for revenue support of capital
improvements, as well as operating cost. The following Asset Management Financial Plan (AMFP) is
intended to summarize the policy formulation in the areas of rate management, capital spending, and fund
balance.


Methodology
A significant effort has been made by the City and their consulting engineers to inventory assets, evaluate
the infrastructure, and determine asset criticality. The result is the identification of asset investment cost
by project and by year. The AMFP covers an extended forecast period to take this asset evaluation into
account.
The AMFP is a four step process: 1) historical comparison with audits and budgets, 2) test year, or
normalized budget year, along with inflation assumptions for purposes of forecasting, 3) proof of rate to
revenue for reliance on customer data, and 4) cash flow forecast including revenue, operating expense,
capital spending, debt, and fund balance (i.e., actual cash and investment balance). The analysis is a “cash
basis” approach as described in the AWWA Manual of Rate Making Practices.
From year to year, this AMFP may be used to implement policy regarding rate management and
budgeting.


Audit Comparison
One key indicator of financial health is the cash and investments balance found in the Comparative
Statement of Net Position of the Sewer Fund. The City currently has this cash and investment balance at
around two months compared to the Test Year operating expenses. Management of the cash balance will
be discussed further under ‘Forecast - Cash Balance.’
The Sewer Fund audited Revenues, Expenses and Changes in Net Position comparison reveals decreasing
annual revenues due to customer loss. Revenues are expected to increase in the future due to rate increases
and stabilization of customer base. Operating expenses are relatively stable when not taking into account
one-time project related expenses.
Budget Comparison / Test Year
The current year budget is fairly consistent with previous years. Certain adjustments have been made to
reflect a normalized year of expenses. This has been utilized to develop the Test Year budget including
expected percent inflation factors.


Proof of Rate to Revenue
The City bills customers based on customer class. All customers are billed an administration charge per
month. Customers are then charged per ccf for every ccf used. Different commodity charges are used for
residential customers vs. commercial/industrial customers. Non-metered customers are billed based on an
assumed use of volume. The various charges billed at the current rates tie to the revenue reflected in the
audit and budget, such that we can rely on the numbers in forecasting.


Forecast - Capital Cost
Annual costs have been forecasted based on an engineering evaluation of asset inventory, condition
assessment, and criticality. These are expenses not already included in the operating and maintenance
budget. The forecast reflects a mix of cash-funding and debt-funding certain projects. This combination
results in good management of the cash balance and utilizing debt only when needed.


Forecast - Cash Balance
The City’s minimum target of cash and investments to operating expenses (net of depreciation) is three
months. This minimum target is not something that can never be crossed. With the right mix of cash and
debt-funding capital improvements, the cash balance is estimated to stay between 3-4 months throughout
the forecast.


Forecast - Rate Management
The forecast shows revenue needs to support operations, debt, and capital cost while solving to cash
balance. The cash flow forecast demonstrates a rate track with a one-time increase of 12.75% to the
administration charge and residential commodity charge which flow through to the other various charges.
After that, annual increases of 3.00% to those rates are anticipated. Annual increases are highly
recommended to keep up with expected rising expenses over time. Without the annual increases, the cash
balance will quickly fall below the targeted minimum.


Management Summary
   - Rates: one-time increase of 12.75% and then annual increases of 3.00%.
   - Cash Balance: target of three months compared to net operating costs over forecast period.
   - Capital Cost: a mix of cash and debt-funding in order to manage rates and cash balance effectively
      over time.



AMFP – Management Tool
The AMFP is a living document. It is most effective as a tool used annually for budget and user rate
decisions.
May 18, 2017

City of Muskegon
933 Terrace Street
Muskegon, MI 49440

Re: City of Muskegon (Michigan) Sewer Fund – SAW Grant – Asset Management Financial Plan

Dear City of Muskegon:

The attached schedules (listed below) present unaudited and limited information for the purpose of discussion and
consideration in the preliminary planning stage of a SAW financial plan by the appropriate officers, officials and
advisors of the City of Muskegon. The use of these schedules should be restricted to this purpose, for internal use
only, as the information is subject to future revision and final report.

Page
  2      Comparative Statement of Net Position
  3      Comparative Statement of Revenues, Expenses, and Changes in Net Position
 4-7     Comparative Detail of Operating Expenses
 8-9     Schedule of 2016/17 Budgeted Operating Expenses and Adjustments
10-11    County Charges
12-13    Cash Flow Analysis

We would appreciate your questions or comments on this information and would provide additional information
upon request.

                                                             Sincerely,

                                                             UMBAUGH

                                                             Tom Traciak
                                                  CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                                  COMPARATIVE STATEMENT OF NET POSITION


                                                                                                                    As of
                                                                       6/30/2012            6/30/2013             6/30/2014          6/30/2015             6/30/2016
                                                                           (--------------------------------------Per Audit--------------------------------------)
Assets
   Current assets:
       Cash and investments                                             $3,701,462         $4,158,969           $3,545,607          $2,339,749           $1,428,302
       Accounts receivable                                               1,021,398            975,036              902,555             867,045            1,040,325
       Due from other governmental units                                         -                  -              118,946             114,883              277,420
       Inventories                                                          42,173             35,391               27,743              37,399               17,751
       Prepaid items                                                        43,720             41,848               40,957              42,696               42,566
           Total current assets                                          4,808,753          5,211,244            4,635,808           3,401,772            2,806,364

    Noncurrent assets:
       Capital assets:
           Land                                                             16,188             16,188               16,188              16,188               16,188
           Buildings, improvements and systems                          20,580,862         20,787,414           21,201,158          21,429,041           21,524,875
           Machinery and equipment                                          39,722             50,082               83,643              83,643               83,643
           Construction in progress                                        356,994            168,019              112,125               4,578                    -
           Subtotal                                                     20,993,766         21,021,703           21,413,114          21,533,450           21,624,706
           Less: Accumulated depreciation                               (7,990,463)        (8,420,733)          (8,858,011)         (9,307,714)          (9,763,260)
              Total noncurrent assets                                   13,003,303         12,600,970           12,555,103          12,225,736           11,861,446

    Total Assets                                                       $17,812,056        $17,812,214         $17,190,911          $15,627,508         $14,667,810

Deferred Outflows of Resources - Related to Pension                                -                   -                    -            25,261             156,551

Liabilities
   Current liabilities:
         Accounts payable                                                   $9,396             $12,911             $94,455            $130,209            $136,244
         Accrued liabilities                                                 9,742               7,250               8,822               9,311               12,885
         Due to other governmental units                                   439,401             562,732             619,093             568,696            1,070,051
         Bonds and other obligations, due within one year                    7,300               7,300               7,300               7,900                7,700
             Total current liabilities                                     465,839             590,193             729,670             716,116            1,226,880

    Noncurrent liabilities:
       Bonds and other obligations, less amounts due within one year        36,465              36,393               36,263              39,566              38,274
       Net pension liability                                                     -                   -                    -             219,117             411,065
           Total noncurrent liabilities                                     36,465              36,393               36,263             258,683             449,339

    Total Liabilities                                                      502,304             626,586             765,933              974,799           1,676,219

Deferred Inflows of Resources - Related to Pension                                 -                   -                    -                   -              4,853

Net Position
    Net investment in capital assets                                    13,003,303         12,600,970           12,555,103          12,225,736           11,861,446
    Unrestricted                                                         4,306,449          4,584,658            3,869,875           2,452,234            1,281,843

    Total Net Position                                                  17,309,752         17,185,628           16,424,978          14,677,970           13,143,289

    Total Liabilities and Net Position                                 $17,812,056        $17,812,214         $17,190,911          $15,652,769         $14,819,508




                                                                             2
                                        CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                 COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION


                                                                                      Fiscal Year Ended
                                                 6/30/2012            6/30/2013             6/30/2014          6/30/2015             6/30/2016
                                                     (--------------------------------------Per Audit--------------------------------------)
Operating Revenues
   Charges for services                           $6,308,525          $6,502,293          $6,501,812          $6,237,327           $6,183,805
   Other                                             147,109             556,022             132,099             126,481              121,749

          Total operating revenues                 6,455,634           7,058,315           6,633,911            6,363,808           6,305,554

Operating Expenses
   Administration                                    333,857             304,916             291,653              297,397             438,534
   Wastewater treatment                            5,405,696           5,286,893           5,679,994            6,210,557           5,749,839
   Wastewater maintenance                                  -           1,181,143           1,124,966            1,465,445           1,972,093

          Subtotal                                 5,739,553           6,772,952           7,096,613            7,973,399           8,160,466
          Depreciation expense                       421,949             430,270             437,278              449,703             455,546

            Total operating expenses               6,161,502           7,203,222           7,533,891            8,423,102           8,616,012

              Net operating income (loss)            294,132            (144,907)           (899,980)          (2,059,294)         (2,310,458)

Non-Operating Revenues (Expenses)
    Investment earning                                25,008              20,783               20,384              16,106               10,414

Capital Contributions                                        -                   -           118,946              474,681             765,363

Change in net position                               319,140            (124,124)           (760,650)          (1,568,507)         (1,534,681)

Net position, beginning of year                   16,990,612          17,309,752          17,185,628          16,246,477         $14,677,970

Net position, end of year                        $17,309,752         $17,185,628        $16,424,978          $14,677,970         $13,143,289




                                                                 3
                                                                    CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                                                  COMPARATIVE DETAIL OF OPERATING EXPENSES


                                                                                                        Fiscal Year Ended
                                                                                  6/30/2014          6/30/2015      6/30/2016   6/30/2017       Test Year   Multiplier   2017/18

Operating Expenses
   Dept: 30548 - Bond Interest, Insurance & Other
      5300 Contractual Services                                                           $0                $0             $0    $437,298        $437,298         1.0%    441,671
      5319 Other Insurance & Bonds                                                    62,326            62,304         63,979           -               -         0.0%          -
      5353 Printing                                                                      422               440              -           -               -         0.0%          -
      5360 Indirect Cost Allocation                                                  101,185           106,849        110,304           -               -         0.0%          -
      5364 Right of Way Lease                                                             11                11             11           -               -         0.0%          -
      5370 Payment to Other Government                                                 2,709             2,793          3,235           -               -         0.0%          -
      5371 City Service Fee/Contributions                                                  -                 -        106,006                           -         0.0%          -
      5374 Utility Administration Fees                                               125,000           125,000        155,000           -               -         0.0%          -
      5471 Bad Debts                                                                  24,535            16,215          8,969      12,000          12,000         1.0%     12,120
      5990 Depreciation Expense                                                            -                 -              -           - [1]           -         0.0%          -

              Total Bond Interest, Insurance & Other Expenses                        316,188           313,613        447,503     449,298         449,298                 453,791

   Dept: 60550 - Storm Water Management
     5371 Paying Agent Fees/Contributions                                                    -               -          1,764           -               -         0.0%             -

   Dept: 60557 - Muskegon County Wastewater Treatment
     5370 Payment to Other Government                                              5,679,994         6,210,557      5,749,839   6,000,000       5,867,285      [2]       5,988,390

   Dept: 60559 - Water & Sewer Maintenance
     5100 Salaries & Benefits                                                              -                 -              -     781,472         781,472         3.5%    808,824
     5101 Salary Permanent                                                           242,238           232,856        284,550           -               -         0.0%          -
     5110 Lead Person & Shift Premium                                                  1,419                 -              -           -               -         0.0%          -
     5111 Overtime                                                                    31,977            34,006         33,414           -               -         0.0%          -
     5112 Sick Leave Pay                                                              18,343            22,993         31,158           -               -         0.0%          -
     5113 Vacation Pay                                                                29,953            29,230         30,067           -               -         0.0%          -
     5114 Personal & Other Leave                                                       8,832             8,981          9,025           -               -         0.0%          -
     5115 Holiday Pay                                                                 12,207            12,423         10,590           -               -         0.0%          -
     5141 Retiree Healthcare - General                                                12,116            11,153         13,410           -               -         0.0%          -
     5144 MERS Retirement System                                                      19,046            25,462         54,796           -               -         0.0%          -
     5145 Pension Adjustment - GASB 68                                                     -                 -         65,511                           -         0.0%          -
     5151 Health Insurance                                                            89,030            89,007        103,311           -               -         0.0%          -
     5153 Life Insurance                                                                 841               827            970           -               -         0.0%          -
     5155 Dental Insurance                                                             6,797             6,776          7,941           -               -         0.0%          -
     5159 Disability Insurance                                                         1,102             1,067          1,272           -               -         0.0%          -
     5161 Social Security                                                             25,975            25,476         29,886           -               -         0.0%          -
     5163 Workers' Compensation                                                       11,988            11,160         15,286           -               -         0.0%          -
     5165 Unemployment                                                                   297                94             41           -               -         0.0%          -
     5181 Education Incentive Pay                                                        524               971          1,269           -               -         0.0%          -
     5183 Longevity Pay                                                                6,621             6,840          6,526           -               -         0.0%          -
     5200 Operating Supplies                                                               -                 -              -      55,390          55,390         1.5%     56,221
     5201 Office Supplies                                                                  -                 -             88                           -         0.0%          -
     5213 Clothing & Uniforms                                                            724               104            668           -               -         0.0%          -
     5221 Tools                                                                          143               738            860           -               -         0.0%          -
     5225 Motor Fuel & Lubricants                                                         23                 -            144           -               -         0.0%          -
     5227 Licenses                                                                       125                95            380           -               -         0.0%          -
     5231 Miscellaneous Material & Supplies                                              962             1,010          1,391           -               -         0.0%          -
     5239 Sewer/Water System Supplies                                                 19,761            14,926         48,852           -               -         0.0%          -
     5243 Repair Supplies                                                                143               192             68           -               -         0.0%          -
     5249 Equipment Supplies                                                           1,866             1,754            318           -               -         0.0%          -
     5255 Road Maintenance Supplies                                                   33,479            26,350         34,575           -               -         0.0%          -
     5257 Seeding & Planting Supplies                                                      -               259              -           -               -         0.0%          -
     5259 Traffic Control Device Supplies                                              4,545                 -            785           -               -         0.0%          -
     5300 Contractual Services                                                             -                 -              -     440,654         440,654         1.5%    447,264
     5341 Laundry & Uniform Cleaning                                                   1,569             1,855          1,528           -               -         0.0%          -
     5346 Contractual Services                                                        51,012            37,126         18,484           -               -         0.0%          -
     5351 Medical Services                                                               354               300            660           -               -         0.0%          -
     5353 Printing                                                                       115                 -              -           -               -         0.0%          -
     5362 Rental of Buildings                                                         84,612            76,776         69,099           -               -         0.0%          -
     5364 Right of Way Lease                                                             354               354            354           -               -         0.0%          -
     5366 Vehicle Rental                                                             249,600           220,959        275,412           -               -         0.0%          -
     5390 Telephone                                                                    1,077               605          3,436           -               -         0.0%          -
     5391 Electricity                                                                 22,826            24,375         22,913           -               -         0.0%          -
     5400 Other Expenses                                                                   -                 -              -      23,000          23,000         1.0%     23,230
     5405 Inventory Purchases                                                              -            31,540         13,600           -               -         0.0%          -
     5450 Conference, Training and Travel                                                228               254          4,360           -               -         0.0%          -
     5700 Capital Outlays                                                                  -                 -              -       5,900           5,900         1.0%      5,959
     5720 Equipment Purchases                                                          5,484             1,271          4,005           -               -         0.0%          -
     5770 Equipment Repair                                                             1,077             3,499            566           -               -         0.0%          -

              Total Water & Sewer Maintenance Expenses                               999,386           963,665      1,201,570   1,306,416       1,306,416                1,341,497

[1] Depreciation Expense is removed from this report as it is performed on the cash basis.
[2] See County Charges (pages 9-10).




                                                                                                 4
                                           CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                                                   (Continued)
                                          COMPARATIVE DETAIL OF OPERATING EXPENSES




2018/19       2019/20       2020/21        2021/22       2022/23           2023/24       2024/25       2025/26       2026/27        2027/28




 446,088       450,549       455,054        459,605       464,201           468,843       473,531       478,266       483,049         487,880
       -             -             -              -             -                 -             -             -             -               -
       -             -             -              -             -                 -             -             -             -               -
       -             -             -              -             -                 -             -             -             -               -
       -             -             -              -             -                 -             -             -             -               -
       -             -             -              -             -                 -             -             -             -               -
       -             -             -              -             -                 -             -             -             -               -
       -             -             -              -             -                 -             -             -             -               -
  12,241        12,364        12,487         12,612        12,738            12,866        12,994        13,124        13,255          13,388
       -             -             -              -             -                 -             -             -             -               -

 458,329       462,912       467,541        472,217       476,939           481,708       486,525       491,391       496,305         501,268


          -             -             -              -             -                 -             -             -             -              -


6,113,128     6,241,608     6,373,942      6,510,246     6,650,640         6,795,245     6,944,189     7,097,600     7,255,614      6,870,370


 837,132       866,432       896,757        928,144       960,629           994,251      1,029,049     1,065,066     1,102,343      1,140,925
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
  57,064        57,920        58,789         59,671        60,566            61,474         62,396        63,332        64,282         65,247
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
 453,973       460,782       467,694        474,710       481,830           489,058        496,393       503,839       511,397        519,068
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
  23,462        23,697        23,934         24,173        24,415            24,659         24,906        25,155        25,406         25,660
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -
   6,019         6,079         6,140          6,201         6,263             6,326          6,389         6,453         6,517          6,582
       -             -             -              -             -                 -              -             -             -              -
       -             -             -              -             -                 -              -             -             -              -

1,377,650     1,414,910     1,453,314      1,492,898     1,533,703         1,575,767     1,619,134     1,663,845     1,709,946      1,757,483




                                                                       5
                                                              CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                                                                            (Continued)
                                                          COMPARATIVE DETAIL OF OPERATING EXPENSES


                                                                                             Fiscal Year Ended
                                                                         6/30/2014        6/30/2015      6/30/2016   6/30/2017    Test Year    Multiplier    2017/18

Operating Expenses (Continued)
   Dept: 60966 - Muskegon/Webster 9th to Spring
      5346 Contractual Services                                                   -            4,412        12,754            -            -         0.0%              -

   Dept: 90000 - Project Expenditures
     5300 Contractual Services                                                    -                -             -    1,300,000            -         0.0%              -

   Dept: 91131 - Sherman, Estes to Glenside
     5346 Contractual Services                                              73,145                 -             -            -            -         0.0%              -

   Dept: 91134 - Estes, Fair to Lakeshore
     5346 Contractual Services                                              30,358                 -             -            -            -         0.0%              -
     5355 Engineering Services                                               1,331                 -             -            -            -         0.0%              -

             Total Estes, Fair to Lakeshore Expenses                        31,689                 -             -            -            -                           -

   Dept: 91137 - Beidler, Hackley to 700' South
     5346 Contractual Services                                                    -                -        78,668                         -         0.0%              -

   Dept: 91205 - Austin Street Lift Station
     5346 Contractual Services                                             206,438                 -             -            -            -         0.0%              -
     5355 Engineering Services                                              10,674                 -             -            -            -         0.0%              -

             Total Austin Street Lift Station Expenses                     217,112                 -             -            -            -                           -

   Dept: 91307 - Merrill, Fifth to Third
     5346 Contractual Services                                                    -         102,057              -            -            -         0.0%              -
     5355 Engineering Services                                                1,715          13,939              -            -            -         0.0%              -

             Total Merrill, Fifth to Third Expenses                           1,715         115,996              -            -            -                           -

   Dept: 91308 - Palmer, McGraft to Southern
     5346 Contractual Services                                              36,861                 -             -            -            -         0.0%              -

   Dept: 91312 - Sewer Infiltration
     5345 Consultant Fees                                                   62,005           97,995              -            -            -         0.0%              -

   Dept: 91318 - Getty St, Evanston to Apple
     5346 Contractual Services                                                    -             166          4,250            -            -         0.0%              -

   Dept: 91325 - Storm & Waste Water Asset Mgmt - SAW Grant
     5346 Contractual Services                                              49,113          364,385        724,397            -            -         0.0%              -
     5355 Engineering Services                                                   -           22,141         27,559            -            -         0.0%              -

             Total Storm & Waste Water Asset Mgmt - SAW Grant Expenses      49,113          386,526        751,956            -            -                           -

   Dept: 91408 - Henry St, Sherman to Hackley
     5355 Engineering Services                                                    -            1,666             -            -            -         0.0%              -

   Dept: 91502 - Monroe Street Between 4th and 5th
     5355 Engineering Services                                                    -                -         4,448            -            -         0.0%              -

   Dept: 99012 - GIS Training
     5346 Contractual Services                                                  43                 -             -            -            -         0.0%              -
     5355 Engineering Services                                              45,309                 -         7,940            -            -         0.0%              -

             Total GIS Training Expenses                                    45,352                 -         7,940            -            -                           -


                  Total Sewer Operating Expenses                         $7,512,559       $8,094,595    $8,260,691   $9,055,714   $7,622,999                $7,783,678




                                                                                      6
                                              CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                                                           (Continued)
                                             COMPARATIVE DETAIL OF OPERATING EXPENSES




 2018/19        2019/20        2020/21        2021/22        2022/23            2023/24        2024/25        2025/26        2026/27        2027/28




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

           -              -              -              -              -                  -              -              -              -              -


           -              -              -              -              -                  -              -              -              -              -


           -              -              -              -              -                  -              -              -              -              -


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

           -              -              -              -              -                  -              -              -              -              -


$7,949,107     $8,119,430     $8,294,797     $8,475,361     $8,661,281         $8,852,721     $9,049,848     $9,252,836     $9,461,865     $9,129,120




                                                                           7
                                           CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                          SCHEDULE OF 2016/17 BUDGETED OPERATING EXPENSES AND ADJUSTMENTS


                                                                  2016/17 Budget       Adjustments       Test Year
                                                                    (Per Client)
Operating Expenses
  Dept: 30548 - Bond Interest, Insurance & Other
    5300 Contractual Services                                           $437,298                             $437,298
    5319 Other Insurance & Bonds                                               -                                    -
    5353 Printing                                                              -                                    -
    5360 Indirect Cost Allocation                                              -                                    -
    5364 Right of Way Lease                                                    -                                    -
    5370 Payment to Other Government                                           -                                    -
    5371 City Service Fee/Contributions                                        -                                    -
    5374 Utility Administration Fees                                           -                                    -
    5471 Bad Debts                                                        12,000                               12,000
    5990 Depreciation Expense                                                  -                                    -

           Total Bond Interest, Insurance & Other Expenses               449,298                     -        449,298

   Dept: 60550 - Storm Water Management
    5371 Paying Agent Fees/Contributions                                           -                                 -

   Dept: 60557 - Muskegon County Wastewater Treatment
    5370 Payment to Other Government                                    6,000,000          ($113,118)       5,886,882

   Dept: 60559 - Water & Sewer Maintenance
    5100 Salaries & Benefits                                             781,472                              781,472
    5101 Salary Permanent                                                      -                                    -
    5110 Lead Person & Shift Premium                                           -                                    -
    5111 Overtime                                                              -                                    -
    5112 Sick Leave Pay                                                        -                                    -
    5113 Vacation Pay                                                          -                                    -
    5114 Personal & Other Leave                                                -                                    -
    5115 Holiday Pay                                                           -                                    -
    5141 Retiree Healthcare - General                                          -                                    -
    5144 MERS Retirement System                                                -                                    -
    5145 Pension Adjustment - GASB 68                                          -                                    -
    5151 Health Insurance                                                      -                                    -
    5153 Life Insurance                                                        -                                    -
    5155 Dental Insurance                                                      -                                    -
    5159 Disability Insurance                                                  -                                    -
    5161 Social Security                                                       -                                    -
    5163 Workers' Compensation                                                 -                                    -
    5165 Unemployment                                                          -                                    -
    5181 Education Incentive Pay                                               -                                    -
    5183 Longevity Pay                                                         -                                    -
    5200 Operating Supplies                                               55,390                               55,390
    5201 Office Supplies                                                       -                                    -
    5213 Clothing & Uniforms                                                   -                                    -
    5221 Tools                                                                 -                                    -
    5225 Motor Fuel & Lubricants                                               -                                    -
    5227 Licenses                                                              -                                    -
    5231 Miscellaneous Material & Supplies                                     -                                    -
    5239 Sewer/Water System Supplies                                           -                                    -
    5243 Repair Supplies                                                       -                                    -
    5249 Equipment Supplies                                                    -                                    -
    5255 Road Maintenance Supplies                                             -                                    -
    5257 Seeding & Planting Supplies                                           -                                    -
    5259 Traffic Control Device Supplies                                       -                                    -
    5300 Contractual Services                                            440,654                              440,654
    5341 Laundry & Uniform Cleaning                                            -                                    -
    5346 Contractual Services                                                  -                                    -
    5351 Medical Services                                                      -                                    -
    5353 Printing                                                              -                                    -
    5362 Rental of Buildings                                                   -                                    -
    5364 Right of Way Lease                                                    -                                    -
    5366 Vehicle Rental                                                        -                                    -
    5390 Telephone                                                             -                                    -
    5391 Electricity                                                           -                                    -
    5400 Other Expenses                                                   23,000                               23,000
    5405 Inventory Purchases                                                   -                                    -
    5450 Conference, Training and Travel                                       -                                    -
    5700 Capital Outlays                                                   5,900                                5,900
    5720 Equipment Purchases                                                   -                                    -
    5770 Equipment Repair                                                      -                                    -

           Total Water & Sewer Maintenance Expenses                     1,306,416                    -      1,306,416




                                                             8
                                               CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                                (Continued)
                            SCHEDULE OF 2016/17 BUDGETED OPERATING EXPENSES AND ADJUSTMENTS


                                                                        2016/17 Budget       Adjustments       Test Year
                                                                          (Per Client)
Operating Expenses (Continued)
  Dept: 60966 - Muskegon/Webster 9th to Spring
    5346 Contractual Services                                                            -                 -               -

   Dept: 90000 - Project Expenditures
    5300 Contractual Services                                                 1,300,000          (1,300,000)               -

   Dept: 91131 - Sherman, Estes to Glenside
    5346 Contractual Services                                                            -                 -               -

   Dept: 91134 - Estes, Fair to Lakeshore
    5346 Contractual Services                                                            -                                 -
    5355 Engineering Services                                                            -                                 -

            Total Estes, Fair to Lakeshore Expenses                                      -                 -               -

   Dept: 91137 - Beidler, Hackley to 700' South
    5346 Contractual Services                                                            -                 -               -

   Dept: 91205 - Austin Street Lift Station
    5346 Contractual Services                                                            -                                 -
    5355 Engineering Services                                                            -                                 -

            Total Austin Street Lift Station Expenses                                    -                 -               -

   Dept: 91307 - Merrill, Fifth to Third
    5346 Contractual Services                                                            -                                 -
    5355 Engineering Services                                                            -                                 -

            Total Merrill, Fifth to Third Expenses                                       -                 -               -

   Dept: 91308 - Palmer, McGraft to Southern
    5346 Contractual Services                                                            -                 -               -

   Dept: 91312 - Sewer Infiltration
    5345 Consultant Fees                                                                 -                 -               -

   Dept: 91318 - Getty St, Evanston to Apple
    5346 Contractual Services                                                            -                 -               -

   Dept: 91325 - Storm & Waste Water Asset Mgmt - SAW Grant
    5346 Contractual Services                                                            -                                 -
    5355 Engineering Services                                                            -                                 -

            Total Storm & Waste Water Asset Mgmt - SAW Grant Expenses                    -                 -               -

   Dept: 91408 - Henry St, Sherman to Hackley
    5355 Engineering Services                                                            -                 -               -

   Dept: 91502 - Monroe Street Between 4th and 5th
    5355 Engineering Services                                                            -                 -               -

   Dept: 99012 - GIS Training
    5346 Contractual Services                                                            -                                 -
    5355 Engineering Services                                                            -                                 -

            Total GIS Training Expenses                                                  -                 -               -


                 Total Sewer Operating Expenses                              $9,055,714         ($1,413,118)     $7,642,596




                                                                   9
                                         CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                                           COUNTY CHARGES


                                                                     Fiscal Year Ended
                                                                         6/30/2016        Multiplier   Test Year   2017/18

Gallonage       Flow per County (Mgal)                      1,882
                Rate from County                        $2,082.71
                                                       $3,919,244             3,919,244         3.0%   4,036,821   4,157,926

$17MM Bond      Flow per County (Mgal)                     1,882
                Rate from County                         $291.21
                                                        $547,999                547,999         0.0%     547,999    547,999

Phase I         Flow per County (Mgal)                     1,882
                Rate from County                         $192.92
                                                        $363,037                363,037         0.0%     363,037    363,037

Phase II        Flow per County (Mgal)                     1,882
                Rate from County                         $152.97
                                                        $287,859                287,859         0.0%     287,859    287,859

60" Segment 1   Flow per County (Mgal)                     1,882
                Rate from County                         $155.25
                                                        $292,149                292,149         0.0%     292,149    292,149

60" Segment 2   Flow per County (Mgal)                     1,882
                Rate from County                         $180.37
                                                        $339,420                339,420         0.0%     339,420    339,420

                Total County Charges per Calculation                          5,749,708                5,867,285   5,988,390




                                                                    10
                                    CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                                 (Continued)
                                                COUNTY CHARGES




2018/19     2019/20     2020/21     2021/22     2022/23          2023/24     2024/25     2025/26     2026/27      2027/28




4,282,663   4,411,143   4,543,478   4,679,782   4,820,175        4,964,781   5,113,724   5,267,136   5,425,150    5,587,904




 547,999     547,999     547,999     547,999     547,999          547,999     547,999     547,999     547,999




 363,037     363,037     363,037     363,037     363,037          363,037     363,037     363,037     363,037       363,037




 287,859     287,859     287,859     287,859     287,859          287,859     287,859     287,859     287,859       287,859




 292,149     292,149     292,149     292,149     292,149          292,149     292,149     292,149     292,149       292,149




 339,420     339,420     339,420     339,420     339,420          339,420     339,420     339,420     339,420       339,420

6,113,128   6,241,608   6,373,942   6,510,246   6,650,640        6,795,245   6,944,189   7,097,600   7,255,614    6,870,370




                                                            11
                                                         CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                                                       CASH FLOW ANALYSIS


                                                                                          2016/17                      2017/18                   2018/19
Assumptions                                                                                              Increase                  Increase
 Customers billed - month                                                                     13,055                      13,055                    13,055
 Administration charge - month                                                                 $2.67         12.75%        $3.01        3.00%        $3.10
 Non-metered City customers billed - month                                                        22                          22                        22
 Non-metered City flat charge - month                                                         $40.80                      $46.00                    $47.38
 Non-metered non-resident customers billed - month                                               101                         101                       101
 Non-metered non-resident flat charge - month                                                 $81.60                      $92.00                    $94.76
 Residential volume billed - annual ccf                                                      731,411                     731,411                   731,411
 Residential Commodity charge - ccf                                                            $3.40         12.75%        $3.83        3.00%        $3.95
 Commercial/Industrial City volume billed - annual ccf                                     1,059,667                   1,059,667                 1,059,667
 Commercial/Industrial City commodity charge - ccf                                             $4.25                       $4.79                     $4.94

Revenues
 Rates & charges
  Administration charge                                                                     $418,282                    $471,613                  $485,762
  Non-metered City flat rate charge                                                           10,771                      12,145                    12,509
  Non-metered non-resident flat rate charge                                                   98,899                     111,509                   114,854
  Residential commodity charge                                                             2,486,797                   2,803,864                 2,887,980
  Commercial/Industrial City commodity charge                                              4,503,585                   5,077,792                 5,230,126
    Total rates & charges revenue                                                          7,518,335                   8,476,922                 8,731,230
 Other                                                                                       126,481                     126,481                   126,481
     Total revenues                                                                        7,644,816                   8,603,403                 8,857,711

Total operating expenditures                                                               7,622,999                   7,783,678                 7,949,107

Net operating revenue                                                                         21,816                     819,725                   908,604

Less: Estimated cash-funded capital improvements                                                                                                   260,000
      Estimated debt service #1 2017/18 Bonds [1]                                                                                                  244,500
      Estimated debt service #2 2018/19 Bonds [2]
      Estimated debt service #3 2019/20 Bonds [3]
      Estimated debt service #4 2020/21 Bonds [4]
      Estimated debt service #5 2021/22 Bonds [5]
      Estimated debt service #6 2022/23 Bonds [6]
      Estimated debt service #7 2023/24 Bonds [7]
      Estimated debt service #8 2024/25 Bonds [8]
      Estimated debt service #9 2025/26 Bonds [9]
      Estimated debt service #10 2026/27 Bonds [10]

Net cash flow                                                                                                           $819,725                  $404,104

Cash & investments                                                                       $1,400,000                   $2,219,725                $2,623,829

Typical City homeowner's bill (6 ccf/month)                                                   $23.07                     $26.01                    $26.79


[1] Estimated debt service payments based on a $3,808,524.61 20-year bond issue at current SRF rates.
[2] Estimated debt service payments based on a $3,343,854.58 20-year bond issue at current SRF rates.
[3] Estimated debt service payments based on a $3,832,944.90 20-year bond issue at current SRF rates.
[4] Estimated debt service payments based on a $3,696,844.62 20-year bond issue at current SRF rates.
[5] Estimated debt service payments based on a $3,255,601.49 20-year bond issue at current SRF rates.
[6] Estimated debt service payments based on a $2,979,677.44 20-year bond issue at current SRF rates.
[7] Estimated debt service payments based on a $3,297,982.45 20-year bond issue at current SRF rates.
[8] Estimated debt service payments based on a $3,225,062.09 20-year bond issue at current SRF rates.
[9] Estimated debt service payments based on a $4,162,336.31 20-year bond issue at current SRF rates.
[10] Estimated debt service payments based on a $3,863,252.97 20-year bond issue at current SRF rates.




                                                                                    12
                                        CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                                 (Continued)
                                                   CASH FLOW ANALYSIS


 2019/20      2020/21       2021/22          2022/23      2023/24       2024/25       2025/26       2026/27       2027/28

    13,055       13,055        13,055           13,055       13,055        13,055        13,055        13,055        13,055
     $3.19        $3.29         $3.39            $3.49        $3.59         $3.70         $3.81         $3.93         $4.05
        22           22            22               22           22            22            22            22            22
    $48.80       $50.27        $51.78           $53.33       $54.93        $56.58        $58.27        $60.02        $61.82
       101          101           101              101          101           101           101           101           101
    $97.61      $100.54       $103.55          $106.66      $109.86       $113.15       $116.55       $120.04       $123.65
   731,411      731,411       731,411          731,411      731,411       731,411       731,411       731,411       731,411
     $4.07        $4.19         $4.31            $4.44        $4.58         $4.71         $4.86         $5.00         $5.15
 1,059,667    1,059,667     1,059,667        1,059,667    1,059,667     1,059,667     1,059,667     1,059,667     1,059,667
     $5.08        $5.24         $5.39            $5.56        $5.72         $5.89         $6.07         $6.25         $6.44




  $500,334     $515,344      $530,805         $546,729     $563,131      $580,025      $597,425      $615,348      $633,809
    12,884       13,271        13,669           14,079       14,501        14,936        15,384        15,846        16,321
   118,300      121,849       125,504          129,269      133,147       137,142       141,256       145,494       149,859
 2,974,619    3,063,858     3,155,774        3,250,447    3,347,960     3,448,399     3,551,851     3,658,407     3,768,159
 5,387,029    5,548,640     5,715,099        5,886,552    6,063,149     6,245,043     6,432,395     6,625,367     6,824,128
 8,993,167    9,262,962     9,540,851        9,827,076   10,121,889    10,425,545    10,738,312    11,060,461    11,392,275
   126,481      126,481       126,481          126,481      126,481       126,481       126,481       126,481       126,481
 9,119,648    9,389,443     9,667,332        9,953,557   10,248,370    10,552,026    10,864,793    11,186,942    11,518,756

 8,119,430    8,294,797     8,475,361        8,661,281    8,852,721     9,049,848     9,252,836     9,461,865     9,129,120

 1,000,218    1,094,646     1,191,971        1,292,276    1,395,649     1,502,179     1,611,956     1,725,077     2,389,636

   490,000      670,000        55,000           55,000       55,000        55,000        55,000        55,000        55,000
   244,500      244,500       244,500          244,500      244,500       244,500       244,500       244,500       244,500
   214,750      214,750       214,750          214,750      214,750       214,750       214,750       214,750       214,750
                246,000       246,000          246,000      246,000       246,000       246,000       246,000       246,000
                              237,250          237,250      237,250       237,250       237,250       237,250       237,250
                                               209,250      209,250       209,250       209,250       209,250       209,250
                                                            191,250       191,250       191,250       191,250       191,250
                                                                          211,500       211,500       211,500       211,500
                                                                                        207,250       207,250       207,250
                                                                                                      267,250       267,250
                                                                                                                    248,000

   $50,968    ($280,604)     $194,471          $85,526      ($2,351)    ($107,321)    ($204,794)    ($358,923)      $57,636

$2,674,797   $2,394,193    $2,588,664       $2,674,190   $2,671,839    $2,564,518    $2,359,724    $2,000,801    $2,058,437

   $27.60       $28.42        $29.28           $30.15       $31.06        $31.99        $32.95        $33.94        $34.96




                                                            13
                     Commission Meeting Date: June 27, 2017




Date:         June 27, 2017
To:           Honorable Mayor and City Commissioners
From:         Finance Director
RE:           2017 Sanitation Service Fee



SUMMARY OF REQUEST: To adopt the resolution to beginning charging a
sanitation service fee of $1.20 per month per residential utility bill. This charge will
cover the difference between what is currently being collected through property taxes
and what the City currently pays for residential sanitation.


FINANCIAL IMPACT: None at this time.


BUDGET ACTION REQUIRED: None at this time. The proposed rate was
incorporated into the FY 2017-18 budget that was recently approved by the City
Commission.



STAFF RECOMMENDATION: Adoption of the attached resolution.
                                         CITY OF MUSKEGON
                                       RESOLUTION NO.________

At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
June 27, 2017.

RECITALS

After reviewing the cost to provide sanitation services for the residents of the City of Muskegon, the City
Commission has determined that the funds generated from the 3 mills dedicated to sanitation currently does not
cover the costs to provide the service at its current level.

THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES:

1. Effective July 1, 2017, a monthly service fee of $1.20 will be charged to all residential utility billings.

2. This rate increase will be in effect until June 30, 2018 at which time it will be re-evaluated with the proposed
budget.


The above changes to be effective as noted above.

This resolution adopted.


YEAS:



NAYS:


CITY OF MUSKEGON

By: ______________________________
    Ann Marie Meisch, MMC, City Clerk

STATE OF MICHIGAN COUNTY OF MUSKEGON

I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of
Commissioners of the City of Muskegon, Michigan, held on the 28th day of June, 2016 and that the minutes of the
meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting was
given pursuant to and in compliance with Act 267, Public Acts of Michigan, 1976.

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