City Commission Packet 09-25-2007

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                   SEPTEMBER 25, 2007
     CITY COMMISSION CHAMBERS@ 5:30 P.M.
                               AGENDA

o   CALL TO ORDER:
o   PRAYER:
o   PLEDGE OF ALLEGIANCE:
o   ROLL CALL:
o   HONORS AND AWARDS:
o   INTRODUCTIONS/PRESENTATION:
o   CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
      B. Resolution to Sell 280 Iona. COMMUNITY & NEIGHBORHOOD SERVICES
      C. Vacation of the East 106 feet of the Dead-End Alley in Block 757
          Bounded by Simpson Avenue, Beach Street and Watson Avenue.
          PLANNING & ECONOMIC DEVELOPMENT
      D. Payment for Fire Station Site Work. CITY MANAGER
      E. Service Agreement with Roosevelt Parl<. PUBLIC WORKS
      F. Budgeted Equipment Replacement. PUBLIC WORKS
      G. "City- MDOT Agreement for Federal Money Loan to Reconstruct Division
          Street, Laketon to Southern. ENGINEERING
      H. City - MDOT Agreement for the Reconstruction of Division Street,
          Laketon to Southern. ENGINEERING
      I. City - MDOT Agreement for the Whitetopping of Sherman Blvd. at Henry
          St. Intersection plus the Sidewalk Installation along Sherman Blvd.
          between Henry & Barclay. ENGINEERING
      J. Nutritional Services for Older Americans, Inc/City of Muskegon
         Agreement. PLANNING & ECONOMIC DEVELOPMENT
      K. Michigan Natural Resources Trust Fund Grant Application for Smith­
          Ryerson Park Increase in Match Due to Items That Can be Done In­
         house (Force Account Labor/Materials). PLANNING & ECONOMIC
          DEVELOPMENT /LEISURE SERVICES
o PUBLIC HEARINGS:
         A. Request for a Time Extension for the Obsolete Property Rehabilitation
            Exemption Certificate at 790 Terrace.     PLANNING & ECONOMIC
            DEVELOPMENT
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o   UNFINISHED BUSINESS:
         A. 2008 Budget Adoption. FINANCE
         B. Concurrence with the Housing Board of Appeals Notice and Order to
             Demolish 2409 Crozier. PUBLIC SAFETY
         C. Restrictive Covenant Purchase. PUBLIC WORKS
o   NEW BUSINESS:
         A. Consideration of Bids for the Spring Street, 24" Sanitary Sewer
            Replacement (S-627). ENGINEERING
         B. Vacation of the West 200 feet of the Dead-End Alley in Block 690
            Bounded by Crozier Avenue, Fountain Street and Harding Avenue.
            PLANNING & ECONOMIC DEVELOPMENT
         C. MERS Administrative Cleanup Issues. FINANCE
         D. Participation in MML Legal Defense Fund to Intervene in Consumers
            Energy Rate Filing. WATER FILTRATION
         E. Concurrence with the Housing Board of Appeals Notice and Order to
            Demolish the Following: PUBLIC SAFETY
             1235 Ransom - Area 11 b
             1497 Division - Area 12
             740 Wesley
             273 Sumner
             222 E. Forest - Area 13
o ANY OTHER BUSINESS:
o   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 Hie room.
•    Submit the form to the City Clerk.
•   Be recognized by lhe 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.)
o 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 BECKER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD:
(231) 724-4172.
Date:    September 25, 2007
To:       Honorable Mayor and City Commissioners
From:    Ann Marie Becker, City Clerk
RE:      Approval of Minutes




                                                          th
SUMMARY OF REQUEST: To approve minutes for the September 10
Commission Worksession, and the September 1 fh Regular
Commission Meeting.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
      CITY OF MUSKEGON
        CITY COMMISSION MEETING
                     SEPTEMBER 25, 2007
     CITY COMMISSION CHAMBERS@ 5:30 P.M.
                                 MINUTES
   The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, September 25, 2007.
  Mayor Warmington opened the meeting with a prayer from Reverend Dennis
Remenschneider from St. Paul's Episcopal Church after which the Commission and
public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
  Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Clara Shepherd, Lawrence Spataro, Sue Wierengo, and Chris
Carter, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Ann Marie Becker.
   Mayor Warmington presented a resolution to Jeannine Davis and family in
remembrance of Commissioner Kevin Davis who passed away September 2, 2007.
2007-82 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the September 10 th Commission
Worksession, and the September 11 th Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Resolution to Sell 280 Iona. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the resolution to sell the City-owned house at
280 Iona to Mr. James E. Evans of 1502 Peck Street, Apt. #8, Muskegon, for the
appraised value of $103,000 minus the $18,000 subsidy.
The house at 280 Iona was part of an acquisition and clearance project where the
original house that was on the City's dangerous building list was obtain from the
State of Michigan through the tax reversion process. Once it was acquired, it was
demolished and the new structure was built. A few years ago the house next door
at 284 Iona went through the same process the previous structure was demolished
and a new home was built in its' place. This project at 280 Iona entitled a
"Metamorphosis from Old to New" is one more example of the City's aggressive
efforts to redevelop our neighborhoods.
FINANCIAL IMPACT: The program income derived from this transaction will be
deposited in the City's HOME account.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and the sale of 280 Iona to
Mr. James E. Evans.
COMMITTEE RECOMMENDATION:               The City Commission approved both the
acquisition of the original structure and the construction of the new home.
      C. Vacation of the East 106 feet of the Dead-End Alley in Block 757 Bounded
         by Simpson Avenue. Beach Street and Watson Avenue. PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request for vacation of the East 106 feet of the dead- end
alley bounded by Simpson Avenue, Beach Street, and Watson Avenue, located in
Muskegon Revised Plat of 1903, Bock 757.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends vacation of the east 106 feet of the
dead-end alley bounded by Simpson Avenue, Beach Street, and Watson Avenue,
with the condition that unrestricted utility easement be retained.
COMMITTEE RECOMMENDATION:              The Planning Commission recommended
vacation of the alley at their September 13, 2007 meeting, with the condition that
unrestricted utility easement rights be retained. The vote was unanimous with T.
Michalski, J. Aslakson, and B. Smith absent.
      D. Payment for Fire Station Site Work. CITY MANAGER
SUMMARY OF REQUEST: To approve a request to pay Muskegon Downtown
Believers for site work associated with the new Central Fire Station. This work was
done in conjunction with site work for the new Harley Davidson building.
FINANCIAL IMPACT: $64,940.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:           To approve payment to Muskegon Downtown
Believers in the amount of $64,940.
      F. Budgeted Equipment Replacement. PUBLIC WORKS
SUMMARY OF REQUEST: Approval to purchase one BC l S00XL brush chipper from
Vermeer of Michigan.
FINANCIAL IMPACT: $38,872.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve purchase.
      G. City - MOOT Agreement for Federal Money Loan to Reconstruct Division
         Street, Laketon to Southern. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with MOOT for the reconstruction
of Division St. from Laketon Ave. to Southern Ave. and to approve the resolution
authorizing the Mayor and City Clerk to sign the contract for the Federal Funds
Loan from the State.
The advantage on this project is that this whole agreement is merely a paper- work
matter since the City could not have spent any construction money against the
Federal Funds to accrue any interest until those funds become available.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time. The City's share of the cost will
come out of the Major Street and Water funds as will be shown in the 2008 budget.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize the
Mayor and Clerk to sign both.
      H. City - MOOT Agreement for the Reconstruction of Division Street, Laketon
         to Southern. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with MOOT for the reconstruction
of Division St. from Laketon Ave. to Southern Ave. and to approve the resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT's participation is limited to the Federal funds of $252,875
and $63,218.75 of State funds (Local Jobs Today Grant) for a total grant of
$316,093.75.    The estimated total construction cost, without engineering, is
$911,500.    The engineering cost is estimated at an additional 15% of the
construction cost.
BUDGET ACTION REQUIRED: None at this time. The City's share of the cost will
come out of the Major Street fund and will appear in the 2008 budget.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize the
Mayor and Clerk to sign both.
      I.   City - MOOT Agreement for the Whitetopping of Sherman Blvd. at Henry
           St. Intersection plus the Sidewalk Installation along Sherman Blvd.
           between Henry & Barclay. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with MOOT for the whitetopping
of Sherman Blvd. at the Henry St. intersection plus the sidewalk installation along
Sherman Blvd. between Henry St. and Barclay St. and to approve the resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT's participation is limited to the Federal funds of $209,800
and $52,400 of State funds (Local Jobs Today Grant) for a total grant of $262,200.
The estimated total construction cost, without engineering, is $262,000. The
engineering cost is estimated at an additional 15% of the construction cost.
BUDGET ACTION REQUIRED: None at this time. The City's share of the cost will
come out of the Major Street fund and will appear in the 2008 budget.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize the
Mayor and Clerk to sign both.
      J. Nutritional Services for Older Americans, Inc/City             of   Muskegon
         Agreement. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon has had an Agreement with
Nutritional Services for Older American, Inc. (NSOA). They are requesting that this
Agreement be renewed for another year (through September 30, 2008). NSOA will
pay the City $200 a month for expenses associated with the McGraft Park
Community Building, where they operate as a location for senior meals and
support services for seniors in the area. The City will provide financial support in the
amount of $8,316 for staff time for recreational programs provided at McGraft Park
and their other locations.
FINANCIAL IMPACT: The City will receive $200 a month in rent from NSOA and will
provide $8,316 in staff time and recreational programming.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Agreement between NSOA and the
City and authorize the Mayor to sign the Agreement.
Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the
Consent Agenda as read minus items E and K.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, and Gawron
             Nays: None
MOTION PASSES
2007-83 ITEMS REMOVED FROM THE CONSENT AGENDA:
      E. Service Agreement with Roosevelt Park. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize the Mayor and Clerk to sign the agreement with
Roosevelt Park to maintain their fleet.
FINANCIAL IMPACT: Potential revenue of $5,000 to $15,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the service agreement with Roosevelt Park
and authorize the Mayor and Clerk to sign the agreement.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the
Service Agreement with Roosevelt Park to maintain their fleet.
ROLL VOTE: Ayes: Spataro, Warmington, Wierenga, Carter, Gawron, and Shepherd
            Nays: None
MOTION PASSES
       K. Michigan Natural Resources Trust Fund Grant Application for Smith­
          Ryerson Pork Increase in Match Due to Items That Can be Done In-house
          (Force Account Labor/Materials).            PLANNING & ECONOMIC
          DEVELOPMENT/LEISURE SERVICES
SUMMARY OF REQUEST: The State has requested more information for the City's
Michigan Natural Resources Trust Fund Grant Application regarding the first phase
of proposed upgrades to Smith-Ryerson Park. The City is allowed to increase their
points for the grant by including any in-house services that can be done to
increase the match. The removal of one baseball/softball field, creation of two
educational signs (dune and the creek), pier at the creek, trimming of enough
overgrowth for placement of the pier, and the cost to re-stripe the current parking
lot with appropriate handicap signage will be added as the City in-house (force
account labor/materials) costs.
FINANCIAL IMPACT: There is no impact for the 2007 budget year. If the application
is approved, it will be budgeted in the 2008 budget year.
BUDGET ACTION REQUIRED: The total estimated cost for the in-house (force
account labor/materials) is $13,850. This will be budgeted in the 2008 budget year.
STAFF RECOMMENDATION: To approve the resolution to increase the match by
doing additional items in-house (force account labor/materials), and to have the
Mayor and Clerk sign the resolution.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the
Michigan Natural Resources Trust Fund Grant Application for Smith-Ryerson Park
increase in match due to items that can be done in-house (force account
labor/materials).
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Gawron, Shepherd, and Spataro
             Nays: None
MOTION PASSES
□ PUBLIC HEARINGS:
      A. Request for a Time Extension for the Obsolete Property Rehabilitation
         Exemption Certificate at 790 Terrace.     PLANNING & ECONOMIC
         DEVELOPMENT
(REMOVED PER STAFF REQUEST)
o COMMUNICATIONS:
o   CITY MANAGER'S REPORT:
2007-84 UNFINISHED BUSINESS:
      A. 2008 Budget Adoption. FINANCE
SUMMARY OF REQUEST: The City Commission may take action to adopt the 2008
budget with whatever changes or adjustments it deems necessary. City Charter
requires the budget be adopted no later than September 25, 2007.
FINANCIAL IMPACT: The budget sets forth the priorities and overall financial plan
for operations in the year 2008. As proposed, the budget includes no property tax
increase.
BUDGET ACTION REQUIRED: Adoption of the budget resolution provides the legal
appropriation authority necessary for City departments to conduct operations in
2008.
STAFF RECOMMENDATION: Approve the proposed 2008 City of Muskegon Budget
resolution.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the
budget as presented.
ROLL VOTE: Ayes: Wierengo, Carter, Gawron, Shepherd, and Spataro
            Nays: Warmington
MOTION PASSES
      B. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish 2409 Crozier. PUBLIC SAFETY
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 2409 Crozier
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.
FINANCIAL IMPACT: General Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to concur with
the Housing Board of Appeals notice and order to demolish 2409 Crozier.
ROLL VOTE: Ayes: Gawron, Shepherd, and Spataro
            Nays: Carter, Warmington, and Wierengo
MOTION FAILED
      C. Restrictive Covenant Purchase. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to make a $10,000 offer for restrictive
covenant on 1385 E. Keating. The City had made a $9,000 offer which was
rejected by the owner.
FINANCIAL IMPACT: $10,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve purchase.
Motion by Commissioner Carter, second by Commissioner Wierengo to approve
the restrictive covenant purchase of $10,000 for 1385 E. Keating.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Wierengo, and Carter
            Nays: None
            Absent: Warmington (stepped out of the room)
MOTION PASSES
2007-85 NEW BUSINESS:
      A. Consideration of Bids for the Spring         Street,   24"   Sanitary Sewer
         Replacement (S-627). ENGINEERING
SUMMARY OF REQUEST: Authorize staff to enter into an emergency repair contract
with McCormick Sand Inc. out of Twin Lake to replace approximately 11 O' of
partially collapsed 24" sanitary sewer in Spring Street at Wood since they were the
lowest responsible bidder with a bid price of $48,410. The bid prices are inclusive
of all labor, material and traffic control necessary to perform the replacement.
Also, the bids were based on non-prevailing wage standards.
FINANCIAL IMPACT: The construction cost of $48,410 plus engineering costs which
is estimated at an additional 5%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to McCormick Sand, Inc.
Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the
consideration of bids for the Spring Street, 24" sanitary sewer replacement (S-627).
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, and Gawron
            Nays: None
MOTION PASSES
      B. Vacation of the West 200 feet of the Dead-End Alley in Block 690 Bounded
         by Crozier Avenue, Fountain Street and Harding Avenue. PLANNING &
          ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request for vacation of the west 200 feet of the dead-
end alley bounded by Crozier Avenue, Fountain Street, and Harding Avenue,
located in Muskegon Revised Plat of 1903, Block 690.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends vacation on the west 200 feet of the
dead-end alley bounded by Crozier Avenue, Fountain Street, and Harding
Avenue, with the condition that all utility easement rights be retained.
COMMITTEE RECOMMENDATION: The Planning Commission recommended denial
of the vacation of the alley at their September 13, 2007 meeting. The vote was T.
Harryman, L. Spataro, B. Larson, B. Turnquist, S. Warmington, and B. Mazade
opposed, J. Aslakson in favor of the vacation and T. Michalski and B. Smith absent.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to deny the
vacation of the dead-end alley in block 690 bounded by Crozier Avenue, Fountain
Street, and Harding Avenue.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Gawron, and Shepherd
             Nays: None
MOTION TO DENY PASSES
      C. MERS Administrative Cleanup Issues. FINANCE
SUMMARY OF REQUEST: The transfer of retirement assets to MERS is complete. A
couple of "cleanup" issues have emerged, however, which we would like to
address at this time.
Definition of "Hours per Month" for Firefighters.
Rebalancing of Assets Among MERS Group Accounts.
FINANCIAL IMPACT: rebalancing assets among the various MERS groups will help
reduce the City's required contribution rates.
BUDGET ACTION REQUIRED: None at this time. Any identified pension contribution
savings will be factored in future quarterly budget reforecasts.
STAFF RECOMMENDATION:           Approval of the resolutions implementing these
changes.
Motion by Vice Mayor Gawron, second by Commissioner Shepherd to approve the
resolutions implementing the changes for the MERS administrative cleanup issues.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Gawron, Shepherd, and Spataro
             Nays: None
MOTION PASSES
      D. Participation in MML Legal Defense Fund to Intervene in Consumers
         Energy Rate Filing. WATER FILTRATION
SUMMARY OF REQUEST: To approve a financial contribution to the Michigan
Municipal League Legal Defense Fund to intervene in the Consumers Energy rate
filing request to the Michigan Public Service Commission to increase its rates for
generation and distribution of electricity.
FINANCIAL IMPACT: An in-kind contribution, along with the Cities of Grand Rapids
and Wyoming, not to exceed $5,500.
BUDGET ACTION REQUIRED: The in-kind contribution will be taken from the Water
Fund.
STAFF RECOMMENDATION:         Staff recommends the Mayor and Commission
authorize staff to make this contribution in an effort to mitigate the proposed
twenty-one percent increase to the present cost of electricity at the Water
Filtration Plant.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to authorize
staff to make the contribution so that we may participate in the Michigan
Municipal League Legal Defense Fund to intervene in the Consumers Energy rate
filing.
ROLL VOTE: Ayes: Wierengo, Carter, Gawron, Shepherd, Spataro, and Warmington
            Nays: None
MOTION PASSES
      E. Concurrence with the Housing Board of Aooeals Notice and Order to
         Demolish the Following: PUBLIC SAFETY
         1235 Ransom - Area 11 b
         740 Wesley
         273 Sumner
         222 E. Forest - Area 13
         1497 Division -Area 12 (REMOVED PER REQUEST OF STAFF)
SUMMARY OF REQUEST: This is to request that the City Commission concur with the
findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
days. It is further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized and
directed to execute a contract for demolition with the lowest responsible bidder.
FINANCIAL IMPACT: CDBG Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Spataro, second by Commissioner Shepherd to concur
with the Housing Board of Appeals notice and order to demolish 1235 Ransom, 740
Wesley, and 273 Sumner.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, and Wierengo
           Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Vice Mayor Gawron to concur with
the Housing Board of Appeals notice and order to demolish 222 E. Forest.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, and Carter
           Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commissioner Spataro commented on the houses at 299
Houston and 775 Washington and on the County jail proposal dislocating
businesses. Mayor Warmington welcomed our new City Commissioner Steven
Wisneski.
ADJOURNMENT: The City Commission Meeting adjourned at 6:33 p.m.


                                         Respectfully submitted,




                                         Ann Marie Becker, MMC
                                         City Clerk
      Commission Meeting Date:              September 18, 2007

Date:       September 11, 2007
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Resolution to sell 280 Iona

SUMMARY OF REQUEST: To approve the attached resolution to sell
the city owned house at 280 Iona to Mr. James E Evans of 1502 Peck
Street Apt.# 8 Muskegon for the appraised value of $103,000 minus the
$18,000 subsidy.

The house at 280 Iona was part of an acquisition and clearance project
where the original house that was on the City's dangerous building list
was obtain from the State of Michigan through the tax reversion process.
Once it was acquired it was demolished and the new structure was built.
A few years ago the house next door at 284 Iona went through the same
process the previous structure was demolished and a new home was
built in its' place. This project at 280 Iona entitled a "Metamorphosis from
old to New" is one more example of the City's aggressive efforts to
redevelop our neighborhoods.

FINANCIAL IMPACT: The program income derived from this transaction
will be deposited in the City's HOME account.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the resolution and the sale of
280 Iona to Mr. James E. Evans.

COMMITTEE RECOMMENDATION: The City Commission approved
both the acquisition of the original structure and the construction of the
new home.
                               MUSKEGON CITY COMMISSION

                                      2007-82(b)
                          RESOLUTION TO APPROVE THE SALE OF
                            CITY-OWNED PROPERTY AT 280 Iona


WHEREAS, the City of Muskegon is dedicated to the redevelopment of its neighborhoods and its
housing stock;



WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;


WHEREAS, the City of Muskegon is dedicated to promoting homeownership for its low and
moderate-income residents throughout its neighborhoods;



NOW THEREFORE, BE IT RESOLVED that the City Commission hereby approved the sale of
the newly rehabilitated single family home located at 280 Iona to Mr. James Evans for the
estimated price of $103,000.

Adopted this 25 th' day of September, 2007

Ayes: Shepherd, Spataro, Warmington, Wierenga, Carter, and Gawron

Nays: None




                                   B~\\.,::::- "\ ~\.,~, ~. \.-( '-'\
                                     Ann Marie Becker MMC
                                          City Clerk
                                      CERTIFICATION
                                        2007-82(b)

This resolution was adopted at a regular meeting of the City Commission, held on September 25,
2007. The meeting was properly held and noticed pursuant to the Open Meetings Act of the
State of Michigan, Act 267 of the Public Acts of 1976.

                                           CITY OF MUSKEGON



                                              \ l      'i\, . . 0     .
                                           By:   :0,>"\< \~v\,, \2 c, \L ,.,
                                                    Ann Marie Becker, MMC
                                                    City Clerk
              Commission Meeting Date: September 25, 2007




Date:         September 14, 2007
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Vacation of the East 106 feet of the dead end alley Block
              757 Bounded by Simpson Avenue, Beach Street and Watson
              Avenue


SUMMARY OF REQUEST:

Request for vacation of the East 106 feet of the dead end alley bounded by Simpson
Avenue, Beach Street, and Watson Avenue, located in Muskegon Revised Plat of
1903, Block 757.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends vacation of the east 106 feet of the dead end alley bounded by
Simpson Avenue, Beach Street, and Watson Avenue, with the condition that
unrestricted utility easement be retained.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended vacation of the alley at their 9/13/07 meeting,
with the condition that unrestricted utility easement rights be retained. The vote was
unanimous with T. Michalski, J. Aslakson, and B. Smith absent.




9/14/2007                                                                          1
                               RESOLUTION#                2007-82(c)

               RESOLUTION TO VACATE A PORTION OF A PUBLIC ALLEY

WHEREAS, a petition has been received to vacate the east 106 feet of the dead end alley in Block
757 of the City of Muskegon Revised Plat of 1903, bounded by Simpson Avenue, Beach Street
and Watson Avenue; and,

WHEREAS, the Planning Commission held a public hearing on September 13, 2007, to consider
the petition and, subsequently, recommended the vacation; and,

WHEREAS, due notice had been given of said hearing as well as the September 25, 2007, City
Commission meeting to consider the recommendation of the Planning Commission;

NOW, THEREFORE, BE IT RESOLVED that the City Commission deems it advisable for the
public interest to vacate and discontinue the east 106 feet of the dead end alley in Block 757 of the
City of Muskegon Revised Plat of 1903, bounded by Simpson Avenue, Beach Street and Watson
Avenue, County of Muskegon, State of Michigan.

BE IT FURTHER RESOLVED that the City Commission does hereby declare the said east 106
feet of the alley vacated and discontinued, provided, however, that this action on the part of the
City Commission shall not operate so as to conflict with fire access or the utility rights heretofore
acquired by the City or by any public service utility in the City of Muskegon operating in, over and
upon said portion of alley hereby vacated, and it is hereby expressly declared that such rights shall
remain in full force and effect.

BE IT FURTHER RESOLVED that after any maintenance and repair by the City, the City shall
restore the disturbed area to the grade and paving in existence at the time of vacation. The City
shall not be responsible to replace special planting, landscaping, fences or any structure. No
structure shall be placed in the easement which, in the sole judgment of the City, will inte1fere with
the repair or maintenance of utilities in the easement, public or private.

Adopted this 25th day of September, 2007.

       Ayes: Shepherd, Spataro, Warmington, Wierenga, Carter, and Gawron

       Nays: None

       Absent: None




                                                Attest:
                                                       ~'v1 "-1\\""-k\.J\,A.),
                                                                           -      ')J2-~   ·,1
                                                                                       , , \.
                                                                                                 0

                                                                                                 '- ' \




                                                          Ann Marie Becker, MMC, City Clerk
                                        CERTIFICATION              2007-82(c)

(Alley Vacation of the east 106 feet of alley in Block 757 of the City of Muskegon Revised Plan of
                                                 1903)


I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by
the City Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular
meeting held on September 25, 2007.


                                                       ~     \ ~      \ ~ \,\ _,,; 1_
                                                        Ann Marie Becker, MMC
                                                                                        ~~ l L,l/ \ \
                                                        Clerk, City of Muskegon
                      View of the east end of the alley that would be vacated.

City of Muskegon
Planning Commission
Case # 2007-036

                                                                                 -      Selected Property

                                                                                 c:~   surrounding properties




                        '"

                       ~[1ihhi
                             -~ATSOf\lAVEI\IUE
                             --   .. ---- ,-,.~·-
                                                            a
                                                    ;-~--.,----
                (]
                                 Staff Report [EXCERPT)
                                   CITY OF MUSKEGON
                                 PLANNING COMMISSION
                                   REGULAR MEETING

                                      September 13, 2007



Hearing: Case 2007-36: Request to vacate a dead end alley in Block 757 bounded by
Simpson Avenue, Beach Street, and Watson Avenue, by Kimberly Mahone, 3692 Simpson
Avenue.

BACKGROUND
The alley that is the subject of this request dead ends off of Beach Street, between Simpson
and Watson, into a sand dune. The applicant lives in the home located on the second parcel
from the east end of the alley. The parcel located farthest to the east on Simpson Avenue is
actually located on the sand dune. Although the original request was to vacate the entire
alley, it appears there may be some issues with access for some of the neighbors. Several
homes on the west end of the alley have garages that face the alley. The neighbor at 3700
Beach has his boat stored in his rear yard. The rear yard is a legal place to store recreational
vehicles. He has no other place to park it, as well as no other access to his back yard except
off the alley. DPW requires unrestricted access in order to maintain the sewer which is
located in the alley.
Staff has received no public comments on this request.




                             View of the alley from Beach Street.
                           View of the east end of the alley that would be vacated.

     City of Muskegon
     Planning Commission
     Case# 2007-036

                                                                                                           -     Selected Properly

                                                                                                           c-=·1 surrounding properties




O:\Planning\COMMON\Zoning\City Commission Items\vacations\2007 Vacations\Case 2007-36 east 106 ft bounded by simpson, beach and watson
vacation.doc
STAFF RECOMMENDATION

Staff recommends approval of the request, with the conditions listed below.


DELIBERATION


I move that the vacation of the east I 06 feet of the alley located in Block 757, bounded by
Simpson Avenue, Beach Street, and Watson Avenue, be recommended to City Commission
for (approval/denial), based on (compliance/lack of compliance), with the City's 1997 Master
Land Use Plan, with the following conditions:

I.        All utility easements will be retained.
2.        No fences or any other structures may be erected in the portion of vacated alley in order to
          allow for unrestricted DPW access.




O:\Planning\COMMON\Zoning\City Commission Items\vacations\2007 Vacations\Case 2007-36 ea51: 106 ft bounded by simpson, beach and watson
vacation.doc
                              AGENDA ITEM NO. _ _ _ _ __

                   CITY COMMISSION MEETING



TO:          Honorable Mayor and City Commissioners

FROM:        Bryon L. Mazade, City Manager

             September 14, 2007

             Payment for Fire Station Site Work




SUMMARY OF REQUEST
To approve a request to pay Muskegon Downtown Believers for site work associated with the
new Central Fire Station. This work was done in conjunction with site work for the new Harley
Davidson building.


FINANCIAL IMPACT:
$64,940.00




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve payment to Muskegon Downtown Believers in the amount of $64,940.00.




COMMITTEE RECOMMENDATION:
None.




pb\AGENDA\CENTRAL FIRE STA SITE WK PAYMENT 091407
                                                                            SEP 1 0 2007
                                                                              MUSKEGON
Muskegon Downtown Believers                                             CITY MANAGER'S OFFICE
 149 Shoreline Drive
 Muskegon, Ml 49440
 (231) 722-3653

                                           Date: September 7, 2007

     TO:         City of Muskegon



                  DESCRIPTION                           LINE TOTAL
Remove asphalt, concrete tooters & tunnels            s     39,800.00
500 yards crushed concrete base@ $9/yard                     4,500.00
Trees, stumps and buried debris removed                     10,840.00
consumers Energy cost to property Line                       9,800.00
                                                                    .




                                   TOTAL              s   64,940.00


      Make all checks payable to Muskegon Downtown Believers, LLC
                       Payment Due Upon Receipt
Date:     09/25/07
To:       Honorable Mayor and City Commission
From:     DPW
RE:       Budgeted Equipment Replacement




SUMMARY OF REQUEST: Approval to purchase one BC 1800XL brush
chipper from Vermeer of Michigan.



FINANCIAL IMPACT: $38,872.00



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approve purchase.
Memorandum
To:     Honorable Mayor and Commissioners
From: DPW
Date: 9/18/2007
Re:     Budgeted Brush Chipper Purchase



    The Equipment Division has been trying out brush chippers for the last several
months to replace the 1998 Vermeer chipper that we are currently using. This unit is
used on a daily basis by our Forestry Department to trim and remove trees on city
terraces as well as Parks and Cemeteries.

    There are many companies that manufacture chippers in the size that we use. We
subsequently narrowed our choices to three. All three of the chippers would fulfill
our needs. We decided to purchase the Vermeer because of cost, safety features, and
availability of parts.

   Therefore, we are requesting permission to purchase one 2007 Vermeer
BC 1800XL chipper from Vermeer Midwest.




                                                                                       1
                                                   Equipment Purchase - 2007
                                                                                                                        __._
                          Com11lete Egui11rnent            Dxnamic Manufacturing!                            Vermeer
                             479 North St                   5059 W Weidman Rd                      1196 Franklin St
                                 Edmore Mi 48829             Weidman Mi 48893                                Marne Mi
                                                                                                     - ---   ----                                       ------   -----------

18" Brush Chipper                       $42,560.00                    $48,244.20                                 $38,872.00
                                                                                             --- -----                                  --   ,.



                                                                                                                                                  ---


                                                                           --·'"   -- ----
                                             -----------


             --   -- -   -----                                                                                                 ------
Date:         September 25, 2007
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City - MOOT Agreement for:
              Federal money loan to reconstruct
              Division St., Laketon Ave. to Southern Ave.


SUMMARY OF REQUEST:
To approve the attached contract with MOOT for the reconstruction of Division St.
from Laketon Ave. to Southern Ave. and to approve the attached resolution
authorizing the Mayor and City Clerk to sign the contract for the federal funds loan
from the state.

The advantage on this project is that this whole agreement is merely a paper work
matter since the city could not have spent any construction money against the federal
funds to accrue any interest until those funds become available.

FINANCIAL IMPACT:
None

BUDGET ACTION REQUIRED:
None at this time. The City's share of the cost will come out of the Major Street
and water funds as will be shown in the 2008 budget.

STAFF RECOMMENDATION:
Approve the attached contract and resolution and authorize the mayor & clerk to sign
both.

COMMITTEE RECOMMENDATION:
                                  RESOLUTION 2007-82(g)


RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE
RECONSTRUCTION OF DIVISION ST. FROM LAKETON AVE. TO SOUTHERN AVE. TOGETHER
WITH OTHER NECESSARY RELATED WORK AND AUTHORIZATION FOR THE MAYOR,
STEPHEN J. WARMINGTON AND CITY CLERK, ANN MARIE BECKER TO EXECUTE SAID
CONTRACT

Moved by   Commissioner Carter                         and supported by



Vice Mayor _G_a_w_r_on_ _ _ _ _ _ _ _that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 07-7402 between the Michigan
Department of Transportation and the City of Muskegon for the reconstruction of Division St. within
the City is in the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 07-7402 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.



Adopted this.__2_5_t_h__ day of September , 2007.




                                               \
                                        ATTES~ ~ \ J \ M                  ~ Q (,L~
                                                   Ann Marie Becker, City Clerk

                                       CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on
September 25, 2007. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.


                                                         CITY OF MUSKEGON

                                                   B~._),[)o,J:,\ '\.\J\M ~ Ii. vf ,h
                                                          Ann Marie Becker, City Clerk
                                                                           CAB
                                                            Control Section: STUL 61407
                                                            Job No.:          84369
                                                            Project:          STP 0761(026)
                                                            Federal Item No.: RR 5836
                                                            CFDA No.:         20.205 (Highway
                                                                              Research Planning
                                                                              & Construction)
                                                            Contract No.:     07-7402



                  MICHIGAN DEPARTMENT OF TRANSPORTATION

                                    CITY OF MUSKEGON

                             LOCAL JOBS TODAY PROGRAM

                                     LOAN CONTRACT



THIS LOAN CONTRACT, hereinafter referred to as the "CONTRACT," is made and entered
into this date of      OCT O9 2007           by and between the Michigan Department of
Transportation, of 425 West Ottawa Street, P.O. Box 30050, Lansing, MI 48909, hereinafter
referred to as the "DEPARTMENT," and the CITY OF MUSKEGON, MICHIGAN, of 933
Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536, hereinafter referred to as the
"RECIPIENT."


WITNESSETH:

WHEREAS, Act 51, Public Acts of 1951, as amended, authorizes the DEPARTMENT to enter
into contracts with boards of county road commissioners, incorporated cities, and villages for the
loaning of funds for the purpose of constructing transportation infrastructure improvements, as
described in the second paragraph of Article IX, Section 9, of the Michigan Constitution of 1963,
as amended;

NOW, THEREFORE, the parties agree to the following:

Section 1.     PURPOSE

       The purpose of this CONTRACT is to assist the RECIPIENT in financing transportation
       infrastructure improvements, as described in the second paragraph of Article IX, Section
       9, of the Michigan Constitution of 1963, as amended, through the project described
       below, hereinafter referred to as the "PROJECT." Such assistance will be provided by
       the DEPARTMENT in the form of a loan. Funds will be used for pre-approved purposes
       only. The DEPARTMENT has the discretion and the authority to recall, freeze, or limit
       disbursement of any funds or a portion thereof if the purpose or manner of expenditure by

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       the RECIPIENT is inconsistent with this CONTRACT and/or with federal or state laws,
       regulations, rules, or policies.

       Reconstruction work along Division Street from Laketon Avenue to Southern Avenue;
       including pavement removal, concrete curb and gutter, sidewalk ramps, storm sewer,
       drainage structure adjustments, hot mix asphalt paving, and pavement marking work; and
       all together with necessary related work.

Section 2.    CONTRACT TERM

       This CONTRACT will be in effect from the date of award through September 30, 2009.

Section 3.    PROJECT FUNDING, BILLINGS, AND PAYMENTS

       The DEPARTMENT will loan the RECIPIENT $252,875. The RECIPIENT will pay
       interest at the rate of 4 percent annually. The loan funds will be used only for the
       PROJECT. The DEPARTMENT will retain the loan funds and make payments to
       PROJECT contractors and subcontractors on the RECIPIENT's behalf. The RECIPIENT
       directs the DEPARTMENT to convert federal advanced construction funds as soon as
       they become available. The assessment of interest will begin when the DEPARTMENT
       expends loan funds on the RECIPIENT's behalf. It is understood that the loan funds
       provided under this CONTRACT will not be sufficient to pay all PROJECT costs.

       The loan under this CONTRACT is subject to the RECIPIENT's repayment in the
       following manner: federal aid reimbursement applicable to the PROJECT will be used to
       pay principal on the loan, and the DEPARTMENT will invoice the RECIPIENT annually
       for the actual amount of interest. The invoiced amounts will be due and payable within
       thirty days. Final payment of all principal and interest on the loan must be made on or
       before September 30, 2009.

       If the RECIPIENT fails to make any of its required payments when they are due, the
       DEPARTMENT will immediately notify the RECIPIENT of such default and of the
       amount thereof, and if such default is not corrected by payment within ten (10) days, the
       DEPARTMENT is then authorized and directed to withhold from the first of such monies
       thereafter allocated by law to the RECIPIENT from the Michigan Transportation Fund,
       but only after sufficient money has been returned to the county road commission, city, or
       village to provide for the payment of contractual obligations incutTed or to be incurred
       and principal and interest on notes or bonds issued or to be issued under 1941 PA 205,
       1943 PA 143, 1952 PA 175, or Section 18c or 18d of 1951 PA 51, sufficient monies to
       remove the default and to credit the RECIPIENT with payment thereof and to notify the
       RECIPIENT in writing of such fact.

       The RECIPIENT agrees that the costs reported to the DEPARTMENT for this
       CONTRACT will represent only those items that are properly chargeable in accordance
       with this CONTRACT. The RECIPIENT also certifies that it has read the CONTRACT
       terms and has made itself aware of the applicable laws, regulations, and terms of this
       CONTRACT that apply · to the reporting of costs incurred under the terms of this
       CONTRACT.


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Section 4.    ADMINISTRATION

       The DEPARTMENT will administer all phases of the PROJECT on behalf of the
       RECIPIENT, including advertising and awarding the construction contract for the
       PROJECT or portions of the PROJECT, in accordance with the Local Agency Cost
       Participation Contract, as described in Section 9.

       Any change in the scope or character of the PROJECT or in the cost, term, or other
       provision of the CONTRACT will be by a prior written amendment to this CONTRACT
       awarded by the parties.

       In case of any discrepancies between the body of this CONTRACT and any exhibits
       hereto, the body of the CONTRACT will govern. The headings used in this
       CONTRACT are for convenience and identification purposes only and do not form a
       binding part of this CONTRACT.

Section 5.    COMPLIANCE ACTIVITIES

       The RECIPIENT will, in the performance of this CONTRACT, comply with and require
       its contractors and subcontractors to comply with all applicable federal, state, and local
       statutes, ordinances, and regulations and will obtain or have its contractors and
       subcontractors obtain all permits that are applicable to the entry into and performance of
       this CONTRACT.

       The RECIPIENT will secure any agreements or approvals from railroad companies,
       utility companies, governmental agencies, or private parties required for construction of
       the PROJECT.

       This CONTRACT will be interpreted, construed, and enforced in accordance with the
       laws of the State of Michigan.

       By signing this CONTRACT, the RECIPIENT certifies that it has obtained or will obtain
       all necessary environmental protection permits and clearances prior to the beginning of
       the construction of the PROJECT.

Section 6.    BREACH AND TERMINATION

       In the event that any of the following occur, the DEPARTMENT may consider the
       RECIPIENT to be in default with respect to this CONTRACT:

       a.     The RECIPIENT misrepresents any documentation or information provided to the
              DEPARTMENT to secure loan financing.

       b.     The RECIPIENT fails to make a payment of any installment of interest under this
              CONTRACT or fails to make a due payment of any other debt or obligation now
              or later owed by RECIPIENT to the DEPARTMENT.

       c.     The RECIPIENT defaults in the performance of any other obligation to the
              DEPARTMENT under this CONTRACT.


7/2/2007                                       3                      LocalJobsTodayLoan vlw
       d.     The RECIPIENT becomes insolvent or makes an assignment for the benefit of
              creditors.

       e.     Any guarantee or pledge made by the RECIPIENT that now or later secures
              payment for any or all indebtedness arising from this CONTRACT becomes
              terminated or limited for any reason (except as otherwise set forth herein or in
              1951 PA 5 I) without the prior written consent or agreement of the
              DEPARTMENT.

       f.     At any time the DEPARTMENT, acting in good faith, has cause to believe that
              the prospect of payment or performance under this CONTRACT is impaired.

       In the event that the RECIPIENT fails to comply with the provisions of this
       CONTRACT, including the default provisions herein, and such noncompliance by the
       RECIPIENT continues for a period of ten (10) days after written notification of such
       noncompliance without an effort by the RECIPIENT to begin to diligently pursue
       remedies for such noncompliance, the DEPARTMENT will have the right, at its option
       and notwithstanding any waiver by the DEPARTMENT or any prior noncompliance, to
       demand the immediate return of the full outstanding balance of the loan financing and to
       terminate this CONTRACT.

       The exercise of such right by the DEPARTMENT will not impair any other rights of the
       DEPARTMENT under this CONTRACT or any rights of action against the RECIPIENT
       for the collection of remaining monies due the DEPARTMENT and/or the recovery of
       damages.

Section 7.    CONTRACTUAL OBLIGATIONS

       Both parties will make reasonable efforts to satisfy promptly their surviving obligations
       to each other necessary to complete their contractual relationships after expiration or
       termination of this CONTRACT. This provision is not intended to nor does it create or
       confer any rights upon any person or entity not a party to this CONTRACT.

Section 8.    PERFORJVIANCE RESPONSIBILITY

       Each party to this Contract will remain responsible for any claims arising out of that
       party's perfo1mance of this Contract, as provided by this Contract or by law.

       This Contract is not intended to increase or decrease either party's liability for or
       immunity from tott claims.

Section 9.    LOCAL AGENCY COST PARTICIPATION CONTRACT

       The DEPARTMENT and the RECIPIENT agree that, with respect to the PROJECT, the
       RECIPIENT will enter into a Local Agency Cost Participation Contract consisting of Part
       I and Part II (Standard Agreement Provisions) with the DEPARTMENT prior to the
       disbursement of loan funds.



7/2/2007                                       4                      LocalJobsTodayLoan v!w
Section 10.   NOTICES

       All notices required hereunder will be in writing and will be deemed to have been duly
       given if personally delivered or sent by certified mail, return receipt requested, postage
       paid, or by telegram addressed as shown below, or by confirmed facsimile machine
       message, unless notified differently in writing by the other party.

       Ifto the DEPARTMENT:

              Michigan Department of Transportation
              Financial Operations Division
              425 West Ottawa Street
              P.O. Box 30050
              Lansing, MI 48909

       Ifto the RECIPIENT:

              City of Muskegon
              933 Terrace Street, P.O. Box 536
              Muskegon, MI 49443-0536


Section 11.   SEVERABILITY

       If any term, covenant, condition, or provision (or any part thereof) of this CONTRACT
       or the application thereof to any party or circumstance will at any time or to any extent be
       held to be invalid or unenforceable, the remainder of this CONTRACT or the application
       of such term or provision (or remainder thereof) to parties or circumstances other than
       those to which it is held to be invalid or unenforceable will not be affected thereby, and
       each term, covenant, condition, and provision of this CONTRACT will be valid and will
       be enforced to the fullest extent permitted by law.

Section 12.   ASSIGNMENT

       This CONTRACT may not be assigned without the express prior written approval of the
       non-assigning party, which approval will not be unreasonably withheld.

Section 13.   ACCESS AND AUDIT

       a.     The RECIPIENT will establish and maintain accurate records, in accordance with
              generally accepted accounting principals, of all expenses incurred for which
              payment is sought or made under this CONTRACT, said records to be hereinafter
              referred to as the "RECORDS." Separate accounts will be established and
              maintained for all costs incurred under this CONTRACT.

       b.     The RECIPIENT will maintain the RECORDS for at least three (3) years from the
              date of final payment made by the DEPARTMENT under this CONTRACT. In
              the event of a dispute with regard to the allowable expenses or any other issue
              under this CONTRACT, the RECIPIENT will thereafter continue to maintain the


7/2/2007                                         5                      Loca!JobsTodayLoan vlw
                 RECORDS at least until that dispute has been finally decided and the time for all
                 available challenges or appeals of that decision has expired.

           c.    The RECIPIENT will allow the DEPARTMENT or its representative to inspect,
                 copy, or audit the RECORDS at any reasonable time after giving reasonable
                 notice.

       d.        The RECIPIENT will comply with the Single Audit Act of 1984, as amended,
                 including, but not limited to, the Single Audit Amendments of 1996 (31 U.S.C.
                 7501-7507).

       e.        The RECIPIENT will comply with the requirements of the federal Office of
                 Management and Budget (0MB) Circular A-133, as revised or amended.

                1.     Recipients expending a total of Five Hundred Thousand Dollars
                       ($500,000.00) or more in federal funds from one or more funding sources
                       in their fiscal year will submit two (2) copies to the address in part ii
                       below:

                       - The Reporting Package
                       - The Data Collection Form
                       - The audit firm management letter to the recipient, if issued.

                       The 0MB Circular A-133 audit must be submitted to the address below in
                       accordance with the time frame established in the circular, as revised or
                       amended.

                II.    Recipients expending less than Five Hundred Thousand Dollars
                       ($500,000.00) in federal funds must submit a letter to the DEPARTMENT
                       advising that an 0MB Circular A-133 audit was not required. The letter
                       will indicate the applicable fiscal year, the amount of federal funds spent,
                       and the name(s) of the DEPARTMENT federal programs.                    This
                       information must also be submitted to the address below.

                       Address:       Michigan Department of Transportation
                                      Financial Operations Division
                                      425 West Ottawa Street
                                      P. 0. Box 30050
                                      Lansing, MI 48909

                iii.   Recipients must also comply with applicable state laws and regulations
                       relative to audit requirements.

                1v.    Recipients will not charge audit costs to the DEPARTMENT's federal
                       programs that are not in accordance with the aforementioned 0MB
                       Circular A-133 requirements.

                v.     All recipients are subject to the federally-required monitoring activities,
                       which may include limited scope reviews and other on-site monitoring.

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       f.     If any part of the work is subcontracted, the RECIPIENT will assure compliance
              with subsections (a), (b), (c), (d), and (e) above for all subcontracted work.


Section 14.   PROHIBITION OF DISCRIMINATION

       a.     In connection with the performance of the PROJECT under this CONTRACT, the
              RECIPIENT (hereinafter in Appendix A referred to as the "contractor") agrees to
              comply with the State of Michigan provisions for "Prohibition of Discrimination
              in State Contracts," as set forth in Appendix A, dated March 1998, attached hereto
              and made a part hereof. This provision will be included in all subcontracts relating
              to this CONTRACT.

       b.     During the perfonnance of this CONTRACT, the RECIPIENT, for itself, its
              assignees, and its successors in interest (hereinafter in Appendix B referred to as
              the "contractor") agrees to comply with the Civil Rights Act of 1964, being P.L.
              88-352, 78 Stat. 241, as amended, being Title 42 U.S.C. Sections 1971, 1975a-
              1975d, and 2000a-2000h-6, and the Regulations of the Department of
              Transportation (49 CFR Part 21) issued pursuant to said Act, including Appendix
              B, dated June 2003, attached hereto and made a part hereof. This provision will be
              included in all subcontracts related to this CONTRACT.

Section 15.   ASSIGNMENT OF ANTITRUST RIGHTS

       With regard to claims based on goods or services that were used to meet the
       RECIPIENT's obligation to the DEPARTMENT under this CONTRACT, the
       RECIPIENT hereby irrevocably assigns its right to pursue any claims for relief or causes
       of action for damages sustained by the State of Michigan or the DEPARTMENT due to
       any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL 445.771 - .788,
       excluding Section 4a, to the State of Michigan or the DEPARTMENT.

       The RECIPIENT shall require any subcontractors to irrevocably assign their rights to
       pursue any claims for relief or causes of action for damages sustained by the State of
       Michigan or the DEPARTMENT with regard to claims based on goods or services that
       were used to meet the RECIPIENT's obligation to the DEPARTMENT under this
       CONTRACT due to any violation of 15 USC, Sections 1 - 15, and/or 1984 PA 274, MCL
       445.771 - .788, excluding Section 4a, to the State of Michigan or the DEPARTMENT as
       a third-party beneficiary.

       The RECIPIENT shall notify the DEPARTMENT if it becomes aware that an antitrust
       violation with regard to claims based on goods or services that were used to meet the
       RECIPIENT's obligation to the DEPARTMENT under this CONTRACT may have
       occurred or is threatened to occur.        The RECIPIENT shall also notify the
       DEPARTMENT if it becomes aware of any person's intent to commence, or of
       commencement of, an antitrust action with regard to claims based on goods or services
       that were used to meet the RECIPIENT's obligation to the DEPARTMENT under this
       CONTRACT.




7/2/2007                                       7                       LocalJobsTodayLoan vlw
Section 16.   AWARD CONTINGENCY

       Award of this CONTRACT will be contingent upon the RECIPIENT providing the
       DEPARTMENT with a duly adopted resolution authorizing a representative of the
       RECIPIENT to award this CONTRACT and undertake the PROJECT.

Section 17.   FEDERAL TAX CODE

       The RECIPIENT is a political subdivision of the State of Michigan that qualifies as a
       "government unit" within the meaning of Sections 141 (b )( 6)(A) and 141 (c)(I) of the
       Internal Revenue Code of 1986, as amended, hereinafter referred to as the "CODE."

       The RECIPIENT hereby covenants and agrees for the benefit of the DEPARTMENT that
       it will comply with the applicable requirements of Section 149 of the CODE.

       The RECIPIENT will not permit at any time or times any of the property financed with
       the proceeds of the loan funds that would result in the exclusion of any bonds of the
       DEPARTMENT from the treatment afforded by Section 103(a) of the CODE, as from
       time to time amended, by reason of the classification of such bonds as "private activity
       bonds" within the meaning of Section 14l(a) of the CODE, or as obligations guaranteed
       by the United States of America, as provided in Section l 49(b) of the CODE, or cause
       interest on the bonds to be includable in gross income for federal income tax purposes.




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 Section 18.   AWARD

        This CONTRACT will become binding on the parties and of full force and effect upon
        signing by the duly authorized representatives of the RECIPIENT and the
        DEPARTMENT and upon adoption of a resolution approving said CONTRACT and
        approving the signature(s) thereto of the respective representative(s) of the RECIPIENT,
        a certified copy of which resolution will be sent to the DEPARTMENT with this
        CONTRACT, as applicable.


IN WITNESS WHEREOF, the parties have caused this CONTRACT to be awarded.


CITY OF MUSKEGON




MICHIGAN DEPARTMENT OF TRANSPORTATION



                                                                   tt/i•1 I •'l
           e:' Department Director
                                                                    f;i,NI\




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                                                 APPENDIX A
                              PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

 In connection with the performance of work under this contract; the contractor agrees as follows:

 1.      In accordance with Act No. 453, Public Acts of 1976, the contractor hereby agrees not to discriminate against an
         employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or
         as a matter directly or indirectly related to employment, because of race, color, religion, national origin, age, sex,
         height, weight, or marital status. Further, in accordance with Act No, 220, Public Acts of 1976 as amended by Act No.
         478, Public Acts of 1980 the contractor hereby agrees not to discriminate against an employee or applicant for
         employment with respect to hire, tenure, terms, conditions, or privileges of employment, or a matter directly or
         indirectly related to employment, because of a disability that is unrelated to the individual's ability to perform the
         duties of a particular job or position. A breach of the above covenants shall be regarded as a material breach of this
         contract.

 2.     The contractor hereby agrees that any and all subcontracts to this contract, whereby a portion of the work set forth in
        this contract is to be performed, shall contain a covenant the same as hereinabove set forth in Section 1 of this
        Appendix.

 3.     The contractor will take affirmative action to insure that applicants for employment and employees are treated
        without regard to their race, color, religion, national origin, age, sex, height, weight, marital status or a disability that
        is unrelated to the individual's ability to perform the duties of a particular job or position. Such action shall include,
        but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment advertising; layoff or
        termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

4.      The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state
        that all qualified applicants will receive consideration for employment without regard to race, color, religion, national
        origin, age, sex, height, weight, marital status or disability that is unrelated to the individual's ability to perform the
        duties of a particular job or position.

5.      The contractor or his collective bargaining representative will send to each labor union or representative of workers
        with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said
        labor union or workers' representative of the contractor's commitments under this appendix.

6.      The contractor will comply with all relevant published rules, regulations, directives, and orders of the Michigan Civil
        Rights Commission which may be in effect prior to the taking of bids for any individual state project.

7.      The contractor will furnish and file compliance reports within such time and upon such forms as provided by the
        Michigan Civil Rights Commission, said forms may also elicit information as to the practices, policies, program, and
        employment statistics of each subcontractor as well as the contractor himself, and said contractor will permit access to
        his books, records, and accounts by the Michigan Civil Rights Commission and/or its agent, for purposes of
        investigation to ascertain compliance with this contract and relevant with rules, regulations, and orders of the
        Michigan Civil Rights Commission.

8.     In the event that the Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor has
       not complied with the contractual obligations under this agreement, the Civil Rights Commission may, as part of its
       order based upon such findings, certify said findings to the Administrative Board of the State of Michigan, which
       Administrative Board may order the cancellation of the contract found to have been violated and/or declare the
       contractor ineligible for future contracts with the state and its political and civil subdivisions, departments, and
       officers, and including the governing boards of institutions of higher education, until the contractor complies with said
       order of the Civil Rights Commission. Notice of said declaration of future ineligibility may be given to any or all of
       the persons with whom the contractor is declared ineligible to contract as a contracting party in future contracts. In
       any case before the Civil Rights Commission in which cancellation of an existing contract is a possibility, the
       contracting agency shall be notified of such possible remedy and shall be given the option by the Civil Rights
       Commission to participate in such proceedings.

9.     The contractor will include, or incorporate by reference, the provisions of the foregoing paragraphs (1) through (8) in
       every subcontract or purchase order unless exempted by the rules, regulations or orders of the Michigan Civil Rights
       Commission, and will provide in every subcontract or purchase order that said provisions will be binding upon each
       subcontractor or seller.                                                                                  March, 1998
                                                                                                    (Rev. 03/92)

                                                 APPENDIXB

During the performance of this contract, the contractor, for itself, its assignees, and successors in interest
(hereinafter referred to as the "contractor") agrees as follows:

1.      Compliance with Regulations: The contractor shall comply with the Regulations relative to
        nondiscrimination in Federally assisted programs of the Department of Transportation, Title 49,
        Code of Federal Regulations, Part 27, as they may be amended from time to time (hereinafter
        referred to as the Regulations), which are herein incorporated by reference and made a part of this
        contract.

2.      Nondiscrimination: The contractor, with regard to the work performed by it during the contract,
        shall not discriminate on the grounds of race, color, or natural origin in the selection and retention of
        subcontractors, including procurements of materials and leases of equipment. The contractor shall
        not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the
        Regulations, including employment practices when the contract covers a program set forth in
        Appendix B of the Regulations.

3.      Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all
        solicitations either by competitive bidding or negotiation made by the contractor for work to be
        performed under a subcontract, including procurements of materials or leases of equipment, each
        potential subcontractor or supplier shall be notified by the contractor of the contrnctor's obligations
        under this contract and the Regulations relative to nondiscrimination on the grounds of race, color,
        or national origin.

4.      Information and Reports: The contractor shall provide all information and reports required by the
        Regulations, or directives issued pursuant thereto, and shall permit access to its books, records,
        accounts, other sources of information, and its facilities as may be determined by the Michigan
        Department of Transportation or the Federal Highway Administration to be pertinent to ascertain
        compliance with such Regulations or directives. Where any information required of a contractor is
        in the exclusive possession of another who fails or refuses to furnish this information, the contractor
        shall so certify to the Michigan Department of Transportation, or the Federal Highway
        Administration as appropriate, and shall set forth what efforts it has made to obtain the information.

5.      Sanctions for Noncompliance:         In the event of the contractor's noncompliance with the
        nondiscrimination provisions of this contract, the Michigan Department of Transportation shall
        impose such contract sanctions as it or the Federal Highway Administration may determine to be
        appropriate, including, but not limited to:

        (a)      Withholding of payments to the contractor under the contract until the contractor complies,
                 and/or

        (b)      Cancellation, termination, or suspension of the contract, in whole or in part.

6.      Incorporation of Provisions: The contractor shall include the provisions of paragraphs 1 through 6
        of every subcontract, including procurements of materials and leases of equipment, unless exempt by
        the Regulations, or directives issued pursuant thereto. The contractor shall take such action with
        respect to any subcontract or procurement as the Michigan Department of Transportation or the
        Federal Highway Administration may direct as a means of enforcing such provisions including
        sanctions for nonwcompliance; provided, however, that in the event a contractor becomes involved in,
        or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the
        contractor may request the Michigan Department of Transportation to enter into such litigation to
        protect the interests of the State, and, in addition, the contractor may request the United States to
        enter into such litigation to protect the interests of the United States.
Date:         September 25, 2007
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City - MOOT Agreement for the reconstruction of:
              Division St., Laketon Ave. to Southern Ave.


SUMMARY OF REQUEST:
To approve the attached contract with MDOT for the reconstruction of Division St.
from Laketon Ave. to Southern Ave. and to approve the attached resolution
authorizing the Mayor and City Clerk to sign the contract.

FINANCIAL IMPACT:
MDOT's participation is limited to the federal funds of $252,875 & $63,218.75 of state
funds (Local Jobs Today Grant) for a total grant of $316,093.75. The estimated total
construction cost, without engineering, is $911,500. The engineering cost is
estimated at an additional 15% of the construction cost.

BUDGET ACTION REQUIRED:
None at this time. The City's share of the cost will come out of the Major Street
fund and will appear in the 2008 budget.

STAFF RECOMMENDATION:
Approve the attached contract and resolution and authorize the mayor & clerk to sign
both.



COMMITTEE RECOMMENDATION:
                                      RESOLUTION 2007-82(h)


RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE
RECONSTRUCTION OF DIVISION ST. FROM LAKETON AVE. TO SOUTHERN AVE. TOGETHER
WITH OTHER NECESSARY RELATED WORK AND AUTHORIZATION FOR THE MAYOR,
STEPHEN J. WARMINGTON AND CITY CLERK, ANN MARIE BECKER TO EXECUTE SAID
CONTRACT

Moved by Commissioner Carter                                 and supported by



Vice Mayor----=G=-=a::..:.:wc::.r-=-on::..:.__ _ _ _ _ _that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 07-5402 between the Michigan
Department of Transportation and the City of Muskegon for the reconstruction of Division St. within
the City is in the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 07-5402 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.



                        th
Adopted th is      25        day of September , 2007.




                                                        Ann Marie Becker, City Clerk

                                            CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on
September 2?, 2007. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.


                                                               CITY OF MUSKEGON

                                                       B~,~\       ~ 1.,W '&~cLh
                                                          Ann Marie Becker, City Clerk
                                                        STATE OF MICHIGAN
JENNIFER M. GRANHOLM                     DEPARTMENT OF TRANSPORTATION                                     KIRK T. STEUDLE
                                                                                                             DIRECTOR
         GOVERNOR
                                                             LANSING


                                                   October 17, 2007




            Ms. Anne M. Becker
            Clerk
            City of Muskegon
            933 Terrace Street, P.O. Box 536                     City CJe,ri,," 8 0 ,,.
                                                               --·-----             ITICe
            Muskegon, MI 49443-0536                                    ~-
            Dear Ms. Becker:

            RE:     MDOT Contract No.: 07-5402
                    Control Section:   STUL 61407
                    Job Number:        84369


            Enclosed is a fully executed copy of the above noted agreement.

                                                              Sincerely,




                                                              Jackie Burch
                                                              Contract Processing Specialist
                                                              Design Support Area

            Enclosure

             cc:    Project Accounting
                    M. Harbison, Design Support Area
                    Grand




                               MURRAY 0. VAN WAGONER BUILDING• P.O. BOX 30050 • LANSING, MICHIGAN 48909
                                                  www.michigan.gov • {517) 373-2090
LH-LAN-0 (01/03)
(ADVANCE CONSTRUCTION CONTRACT)                                  CAB
STP & LJT                                          Control Section       STUL 61407
                                                   Job Number            84369
                                                   Project               STP 0761 (026)
                                                   Federal Item No.      RR 5836
                                                   CFDANo.               20.205 (Highway
                                                                         Research Planning &
                                                                         Construction)
                                                   Contract No.          07-5402


                                           PART!


                                                            f
        THIS CONTRACT, consisting of PART I and MI II (Standard Agreement
Provisions), is made and entered into this date of     OCT I ZDU7              , by and between
the MICHIGAN DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the
"DEPARTMENT"; and the CITY OF MUSKEGON, a Michigan municipal corporation,
hereinafter referred to as the "REQUESTING PARTY"; for the purpose of fixing the rights and
obligations of the parties in agreeing to the following improvements, in the City of Muskegon,
Michigan, hereinafter referred to as the "PROJECT" and estimated in detail on EXHIBIT "I",
dated July 2, 2007, attached hereto and made a part hereof:

       PART A-FEDERAL AND STATE PARTICIPATION
       Reconstruction work along Division Street from Laketon Avenue to Southern Avenue;
       including pavement removal, concrete curb and gutter, sidewalk ramps, storn1 sewer,
       drainage structure adjustments, hot mix asphalt paving, and pavement marking work; and
       all together with necessary related work.

       PART B- NO FEDERAL OR STATE PARTICIPATION
       Sanitary sewer and watermain work along Division Street from Laketon Avenue to
       Southern Avenue; and all together with necessary related work.


       WITNESSETH:

       WHEREAS, pursuant to Federal and State law, monies have been provided for the
performance of certain improvements on public roads; and

      WHEREAS, the PROJECT has been approved for financing in part with State Local Jobs
Today Program Funds; and

       WHEREAS, the PROJECT will be perforn1ed as an advance construction project; and




06/19/96 AdvconstLJTLoan.FOR 7/2/07
      WHEREAS, the reference "FHWA" in PART I and PART II refers to the United States
Department of Transportation, Federal Highway Administration; and

        WHEREAS, the PROJECT, or portions of the PROJECT at the request of the
REQUESTING PARTY, are being programmed with the FHWA, for implementation with the
use of Federal Funds under the following Federal program(s) or funding:

                        SURFACE TRANSPORTATION PROGRAM

        WHEREAS, the parties hereto have reached an understanding with each other regarding
the performance of the PROJECT work and desire to set forth this understanding in the form of a
written contract.

        NOW, THEREFORE, in consideration of the premises and of the mutual undertakings of
the parties and in conformity with applicable law, it is agreed:

        I.      The patiies hereto shall undertake and complete the PROJECT in accordance with
the terms of this contract.

       The PROJECT work shall be performed as an advance construction PROJECT and shall
meet applicable Federal requirements set forth on 23 CFR Subpart G; 23 U.S.C. 115.

       It is understood that authorization to undertake the performance of the work under this
contract as an advance construction PROJECT does not constitute any commitment of
DEPARTMENT or Federal Funds for this PROJECT.

        Expenditures incurred on this PROJECT as advance construction will not be subject to
reimbursement with Federal Funds until the PROJECT is converted to a regular Federal-aid
project as provided under 23 CFR 630.705(2); CFR 630.709.

       2.      The term "PROJECT COST", as herein used, is hereby defined as the cost of the
physical construction necessary for the completion of the PROJECT.

       Costs for construction engineering and inspection incurred by the DEPARTMENT will
be charged 100 percent to the REQUESTING PARTY. Any other costs incutTed by the
DEPARTMENT as a result of this contract will be at PROJECT COST.

       The costs incurred by the REQUESTING PARTY for preliminary engineering,
construction engineering, construction materials testing, inspection, and right-of-way are
excluded from the PROJECT COST as defined by this contract.




06/19/96 AdvconstLJTLoan.FOR 7/2/07            2
       3.      The DEPARTMENT is authorized by the REQUESTING PARTY to administer
on behalf of the REQUESTING PARTY all phases of the PROJECT including advertising and
awarding the construction contract for the PROJECT or portions of the PROJECT. Such
administration shall be in accordance with PART II, Section II of this contract.

      Any items of the PROJECT COST incurred by the DEPARTMENT may be charged to
the PROJECT.

     4.  The REQUESTING PARTY, at no cost to the PROJECT or to the
DEPARTMENT, shall:

              A.      Design or cause to be designed the plans for the PROJECT.

              B.      Appoint a project engineer who shall be in responsible charge of the
                      PROJECT and ensure that the plans and specifications are followed.

              C.      Perform or cause to be perfmmed the construction engineering,
                      construction materials testing, and inspection services necessary for the
                      completion of the PROJECT.

        The REQUESTING PARTY will furnish the DEPARTMENT proposed t1mmg
sequences for trunkline signals that, if any, are being made part of the improvement. No timing
adjustments shall be made by the REQUESTING PARTY at any trunkline intersection, without
prior issuances by the DEPARTMENT of Standard Traffic Signal Timing Permits.

       5.     The PROJECT COST shall be met in accordance with the following:

              PART A
              The PART A portion of the PROJECT COST shall be met in part by contributions
              by the State Local Jobs Today Program and the REQUESTING PARTY.

              State Local Jobs Today Grant Funds shall be applied to the eligible items of the
              PART A portion of the PROJECT COST at a participation ratio equal to 20
              percent up to an amount not to exceed $63,218.75. The balance of the PART A
              portion of the PROJECT COST, after deduction of State Funds, shall be charged
              to and paid by the REQUESTING PARTY in the manner and at the times
              hereinafter set forth.

              Contingent upon availability of Federal Funds and Federal approval, Federal
              Surface Transportation Funds, for future fiscal years, may be applied to that
              portion of the PART A cost incurred as advance construction in an amount such
              that the Federal Surface Transportation Funds equal a participation ratio of 80
              percent up to an amount not to exceed $252,875.



06119196 AdvconstLJTLoan.FOR 7/2/07           3
              The State Local Jobs Today Program loan, through a separate contract, is an
              amount equivalent to the estimated Federal Surface Transportation Funding
              applicable to the PART A portion of the PROJECT that is not currently available.
              Said loan shall be used as advance construction dollars. Contingent upon
              availability of Federal Funds and Federal approval, Federal Surface
              Transportation Funds, for future fiscal years, will be applied to any outstanding
              principal balance of the State Local Jobs Today Program loan for costs incurred
              on the PART A p011ion of this PROJECT as advance construction.

              PARTB
              The PART B portion of the PROJECT COST is not eligible for Federal or State
              participation and shall be charged to and paid I 00 percent by the REQUESTING
              PARTY in the manner and at the times hereinafter set forth.

       Any items of PROJECT COST or any advance construction expenditure not reimbursed
by Federal Funds or State Funds will be the sole responsibility of the REQUESTING PARTY.

       6.    No working capital deposit will be required from the REQUESTING PARTY for
this PROJECT.

       In order to fulfill the obligations assumed by the REQUESTING PARTY under the
provisions of this contract, the REQUESTING PARTY shall make prompt payments of its share
of the PROJECT COST upon receipt of progress billings from the DEPARTMENT as herein
provided. All payments will be made within IO days of receipt of billings from the
DEPARTMENT. Billings to the REQUESTING PARTY will be based upon the REQUESTING
PARTY'S share of the actual costs incurred less available Federal Funds, State Local Jobs Today
Loan Funds, and State Local Jobs Today Grant Funds as the PROJECT progresses.

        Failure to make such payments within IO days of receipt of billings from the
DEPARTMENT, the DEPARTMENT is hereby authorized to withhold without further notice an
equal amount from the REQUESTING PARTY'S share of any future Act 51 monthly
allocations.

       In the event of any discrepancies between PART I and PART II of this contract, the
provisions of PART I shall prevail.

       7.      At such time as traffic volumes and safety requirements warrant, the
REQUESTING PARTY will cause to be enacted and enforced such ordinances as may be
necessary to prohibit parking in the traveled roadway throughout the limits of the PROJECT.

        8.      The performance of the entire PROJECT under this contract, whether Federally
funded or not, will be subject to the provisions and requirements of PART II that are applicable
to a Federally funded project.



06/19/96 AdvconstLJTLoan.FOR 7/2/07            4
       9.       The REQUESTING PARTY certifies that it is a person under the Natural
Resources and Environmental Protection Act (NREPA); I 995 PA 71 and is not aware of and has
no reason to believe that the property on which the work under this agreement is to be performed
is a facility as defined in MCL 324.20101(0); MSA 13A.20101(1)(1). The REQUESTING
PARTY certifies that it is not a person liable under Part 201 or Part 213 of the Natural Resource
and Environmental Protection Act (NREPA); MCL 324.20101 et seq. and Part 213 ofNREPA;
MCL 324.21301a et seq. The REQUESTING PARTY is a local unit of government that has
acquired or will be acquiring property for a transportation corridor or public right-of-way and
was not responsible for any activities causing a release or threat of release at or on the property.
Pursuant to MCL 324.20126, the REQUESTING PARTY is not a person who is liable for
response activity or response activity costs as defined by MCL 324.2010l(ee) and (ff).

         10.     Both the REQUESTING PARTY and the DEPARTMENT certify that the
DEPARTMENT is not a person liable under Parts 201 and 213 of the NREPA; that the
DEPARTMENT is not an owner or operator of any property within the PROJECT limits; that the
DEPARTMENT has not arranged for the disposal of hazardous substances within the PROJECT
limits, nor has the DEPARTMENT transported any hazardous substances to the PROJECT
limits; that the DEPARTMENT has not conducted any activities which have resulted in a release
or threat of release of hazardous substances at the facility or within the PROJECT limits and that
the DEPARTMENT is otherwise not liable for any response activities or response activity costs
at the facility.

         11.    If subsequent to execution of this contract, previously unknown hazardous
 substances are discovered within the PROJECT limits, which require the incurrence of response
 costs for response activity pursuant to state or federal law, the REQUESTING PARTY, in
addition to reporting that fact to the Department of Environmental Quality, shall notify the
DEPARTMENT, both orally and in writing within 24 hours of such discovery. The
DEPARTMENT shall consult with the REQUESTING PARTY to determine whether the area
within the PROJECT limits constitutes a facility and whether the REQUESTING PARTY is
required to incur response costs to address the contamination under state or federal law. If the
REQUESTING PARTY is liable for response activities or response costs under state or federal
laws, the DEPARTMENT will consult with the FHWA to determine the eligibility of such
response costs for reimbursement. In the event that the response costs and other incidental costs
including, but not limited to delay costs, are deemed not to be eligible for reimbursement by the
FHWA, the REQUESTING PARTY shall be charged for and shall pay to the DEPARTMENT
all response costs and delay costs of the contractor for the PROJECT. If the REQUESTING
PARTY refuses to participate in such costs, the DEPARTMENT shall terminate the PROJECT.
The parties agree that any costs or damages that the DEPARTMENT incurs as a result of such
termination shall be considered a PROJECT COST.

        12.     If federal and/or state funds administered by the DEPARTMENT are used to pay
the cost of remediating any hazardous substances discovered after the execution of this contract
and if there is a reasonable likelihood of recovery, the REQUESTING PARTY, in cooperation
with the Department of Environmental Quality and the DEPARTMENT, shall make a diligent


06/19/96 AdvconstLJTLoan.FOR 7/2/07             5
 effort to recover such costs from all other possible entities. If recovery is made, the
 DEPARTMENT shall be reimbursed from such recovery for the proportionate share of the
 amount paid by the FHWA and/or the DEPARTMENT and the DEPARTMENT shall credit
 such sums to the appropriate funding source.

       13.     The DEPARTMENT'S sole reason for entering into this contract is to enable the
 REQUESTING PARTY to obtain and use funds provided by the Federal Highway
 Administration pursuant to Title 23 of the United States Code.

         Any and all approvals of, reviews of, and recommendations regarding contracts,
agreements, permits, plans, specifications, or documents, of any nature, or any inspections of
work by the DEPARTMENT and its agents pursuant to the terms of this contract are done to
assist the REQUESTING PARTY in meeting program guidelines in order to qualify for available
funds. Such approvals, reviews, inspections and recommendations by the DEPARTMENT and
its agents shall not relieve the REQUESTING PARTY and the local agencies, as applicable, of
their ultimate control and shall not be construed as a warranty of their propriety or that the
DEPARTMENT and its agents is assuming any liability, control or jurisdiction.

        The providing of recommendations or advice by the DEPARTMENT and its agents does
not relieve the REQUESTING PARTY and the local agencies, as applicable of their exclusive
jurisdiction of the highway and responsibility under MCL 691.1402, MSA 3 .996(102).

     When providing approvals, reviews and recommendations under this contract, the
DEPARTMENT and its agents is performing a governmental function, as that term is defined in
MCL 691.1401; MSA 3.996(101), which is incidental to the completion of the PROJECT.

        14.    The DEPARTMENT, by executing this contract, and rendering services pursuant
to this contract, has not and does not assume jurisdiction of the highway, described as the
PROJECT for purposes of MCL 691.1402; MSA 3.996(102). Exclusive jurisdiction of such
highway for the purposes of MCL 691.1402; MSA 3.996(102) rest with the REQUESTING
PARTY and other local agencies having respective jurisdiction.

        15.    The REQUESTING PARTY shall approve all of the plans and specifications to
be used on the PROJECT and shall be deemed to have approved all changes to the plans and
specifications when put into effect. It is agreed that ultimate responsibility and control over the
PROJECT rests with the REQUESTING PARTY and local agencies, as applicable.

         16.    The REQUESTING PARTY agrees that the costs reported to the DEPARTMENT
for this contract will represent only those items that are properly chargeable in accordance with
this contract. The REQUESTING PARTY also certifies that it has read the contract terms and
has made itself aware of the applicable laws, regulations, and te1ms of this contract that apply to
the reporting of costs incurred under the tem1s of this contract.




06/19/96 AdvconstLJTLoan.FOR 7/2/07             6
        17.    The parties shall promptly provide comprehensive assistance and cooperation in
defending and resolving any claims brought against the DEPARTMENT by the contractor,
vendors or suppliers as a result of the DEPARTMENT'S award of the construction contract for
the PROJECT. Costs incurred by the DEPARTMENT in defending or resolving such claims
shall be considered PROJECT COSTS.

       18.    The DEPARTMENT shall require the contractor who is awarded the contract for
the construction of the PROJECT to provide insurance in the amounts specified and in
accordance with the DEPARTMENT'S current standard specifications for construction, and to:

              A      Maintain bodily injury and property damage insurance for the duration of
                     the PROJECT.

              B.     Provide owner's protective liability insurance naming as insureds the State
                     of Michigan, the Michigan State Transportation Commission, the
                     DEPARTMENT and its officials, agents and employees, the
                     REQUESTING PARTY and any other county, county road commission,
                     or municipality in whose jurisdiction the PROJECT is located, and their
                     employees, for the duration of the PROJECT and to provide, upon request,
                     copies of certificates of insurance to the insureds. It is understood that the
                     DEPARTMENT does not assume jurisdiction of the highway described as
                     the PROJECT as a result of being named as an insured on the owners
                     protective liability insurance policy.

             C.     Comply with the requirements of notice of cancellation and reduction of
                    insurance set forth in the current standard specifications for construction
                    and to provide, upon request, copies of notices and reports prepared to
                    those insured.




06/19/96 AdvconstLJTLoan.FOR 7/2/07           7
        19.     This contract shall become binding on the parties hereto and of full force and
effect upon the signing thereof by the duly authorized officials for the parties hereto and upon the
adoption of the necessary resolution approving said contract and authorizing the signatures
thereto of the respective officials of the REQUESTING PARTY, a certified copy of which
resolution shall be attached to this contract.

       IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the
day and year first above written.

CITY OF MUSKEGON                                     MICHIGAN DEPARTMENT
                                                     OF TRANSPORTATION


By ,:
 Title:


 \,'       "'"-·       . -;      I
By -~""' ,\ "-'¼,\ ., , ,;, ~ '- \ '"·
 Title: Ann Marie Becker
        City Clerk




06119196 AdvconstLJTLoan.FOR 7/2/07             8
                                                                                     July 2, 2007


                                           EXHIBIT I

                             CONTROL SECTION              STUL 61407
                             JOB NUMBER                   84369
                             PROJECT                      STP 076 I (026)


                                     ESTIMATED COST

CONTRACTED WORK
                                                   PART A         PART B           TOTAL
Estimated Cost                                     $430,600.00    $480,900.00      $911,500.00




                                   COST PARTICIPATION

GRAND TOTAL ESTIMATED COST                         $430,600.00    $480,900.00      $911,500.00
Less State Local Jobs Today Grant Funds*           $ 63,218.75    $      0.00      $ 63,218.75
Balance                                            $367,381.25    $480,900.00      $848,281.25


Less State Local Jobs Today Program Loan/Federal Funds
  (Advance Construction) Future Fiscal Year**    $252,875.00      $         0.00   $252,875.00
REQUESTING PARTY'S SHARE
 (Future Fiscal Year)                            $114,506.25      $480,900.00      $595,406.25


*State Local Jobs Today Grant Funds shall be applied to the eligible items of the PART A
portion of the PROJECT COST at a participation ratio equal to 20 percent up to an amount not to
exceed $63,218.75.

**Contingent upon availability of Federal Funds and Federal approval, Federal Surface
Transportation Funds, for future fiscal years, may be applied to that portion of the PART A cost
incurred as advance construction in an amount such that the Federal Surface Transportation
Funds equal a participation ratio of 80 percent up to an amount not to exceed $252,875.


NO DEPOSIT



06/19/96 AdvconstLJTLoan.FOR 7/2/07            9
DOT                                                            TYPEB
                                                 BUREAU OF HIGHWAYS
                                                              03-15-93




                                 PART II

                   STANDARD AGREEMENT PROVISIONS


           SECTION I   COMPLIANCE WITH REGULATIONS AND DIRECTIVES

           SECTION II PROJECT ADMINISTRATION AND SUPERVISION

           SECTION III ACCOUNTING AND BILLING

           SECTION IV MAINTENANCE AND OPERATION

           SECTION V   SPECIAL PROGRAM AND PROJECT CONDITIONS




03-15-93                           1
                                         SECTION I

                   COMPLIANCE WITH REGULATIONS AND DIRECTIVES

A.     To qualify for eligible cost, all work shall be documented in accordance with the
       requirements and procedures of the DEPARTMENT.

B.     All work on projects for which reimbursement with Federal funds is requested shall be
       performed in accordance with the requirements and guidelines set forth in the following
       Directives of the Federal-Aid Policy Guide (FAPG) of the FHWA, as applicable, and as
       referenced in pertinent sections of Title 23 and Title 49 of the Code of Federal
       Regulations (CFR), and all supplements and amendments thereto.

       1.     Engineering

              a.      FAPG (6012.1): Preliminary Engineering

              b.      FAPG (23 CFR 172): Administration of Engineering and Design Related
                      Service Contracts

              c.      FAPG (23 CFR 635A): Contract Procedures

              d.      FAPG (49 CFR 18.22): Uniform Administrative Requirements for Grants
                      and Cooperative Agreements to State and Local Governments-Allowable
                      Costs


       2.    Construction

             a.       FAPG (23 CFR 140E): Administrative Settlement Costs-Contract Claims

             b.      FAPG (23 CFR 140B): Construction Engineering Costs

             C,      F APG (23 CFR 17): Recordkeeping and Retention Requirements for
                     Federal-Aid Highway Records of State Highway Agencies

             d.      FAPG (23 CFR 635A): Contract Procedures

             e.      FAPG (23 CFR 635B): Force Account Construction

             f.      F APG (23 CFR        645A):    Utility   Relocations,   Adjustments   and
                     Reimbursement



03-15-93                                     2
             g.      FAPG (23 CFR 645B): Accommodation of Utilities (PPM 30-4. 1)

             h.      FAPG (23 CFR 655F): Traffic Control Devices on Federal-Aid and other
                     Streets and Highways

             1.      FAPG (49 CFR 18.22): Uniform Administrative Requirements for Grants
                     and Cooperative Agreements to State and Local Governments-Allowable
                     Costs

      3.     Modification Or Construction Of Railroad Facilities

             a.      FAPG (23 CFR 1401): Reimbursement for Railroad Work

             b.      FAPG (23 CFR 646B): Railroad Highway Projects

C.    In conformance with FAPG (23 CFR 630C) Project Agreements, the political
      subdivisions party to this contract, on those Federally funded projects which exceed a
      total cost of $100,000.00 stipulate the following with respect to their specific
      jurisdictions:

      1.     That any facility to be utilized in performance under or to benefit from this
             contract is not listed on the Environmental Prote<;tion Agency (EPA) List of
             Violating Facilities issued pursuant to the requirements of the Federal Clean Air
             Act, as amended, and the Federal Water Pollution Control Act, as amended.

      2.     That they each agree to comply with all of the requirements of Section 114 of the
             Federal Clean Air Act and Section 308 of the Federal Water Pollution Control
             Act, and all regulations and guidelines issued thereunder.

      3.     That as a condition of Federal aid pursuant to this contract they shall notify the
             DEPARTMENT of the receipt of any advice indicating that a facility to be
             utilized in performance under or to benefit from this contract is under
             consideration to be listed on the EPA List of Violating Facilities.

D.    Ensure that the PROJECT is constructed in accordance with and incorporates all
      committed environmental impact mitigation measures listed in approved environmental
      documents unless modified or deleted by approval of the FHWA.

E.    All the requirements, guidelines, conditions and restrictions noted in all other pertinent
      Directives and Instructional Memoranda of the FHWA will apply to this contract and will
      be adhered to, as applicable, by the parties hereto.




03-15-93                                      3
                                        SECTION II

                   PROJECT ADMINISTRATION AND SUPERVISION


A.    The DEPARTMENT shall provide such administrative guidance as it determines is
      required by the PROJECT in order to facilitate the obtaining of available federal and/or
      state funds.

B.    The DEPARTMENT will advertise and award all contracted portions of the PROJECT
      work. Prior to advertising of the PROJECT for receipt of bids, the REQUESTING
      PARTY may delete any portion or all of the PROJECT work. After receipt of bids for
      the PROJECT, the REQUESTING PARTY shall have the right to reject the amount bid
      for the PROJECT prior to the award of the contract for the PROJECT only if such
      amount exceeds by twenty percent (20%) the final engineer's estimate therefor. If such
      rejection of the bids is not received in writing within two (2) weeks after letting, the
      DEPARTMENT will assume concurrence. The DEPARTMENT may, upon request,
      readvertise the PROJECT. Should the REQUESTING PARTY so request in writing
      within the aforesaid two (2) week period after letting, the PROJECT will be cancelled
      and the DEPARTMENT will refund the unused balance of the deposit less all costs
      incurred by the DEPARTMENT.

C.    The DEPARTMENT will perform such inspection services on PROJECT work
      performed by the REQUESTING PARTY with its own forces as is required to ensure
      compliance with the approved plans & specifications.

D.    On those projects funded with Federal monies, the DEPARTMENT shall as may be
      required secure from the FHW A approval of plans and specifications, and such cost
      estimates for FHWA participation in the PROJECT COST.

E.    All work in connection with the PROJECT shall be performed in conformance with the
      Michigan Department of Transportation Standard Specifications for Construction, and the
      supplemental specifications, Special Provisions and plans pertaining to the PROJECT
      and all materials furnished and used in the construction of the PROJECT shall conform to
      the aforesaid specifications. No extra work shall be performed nor changes in plans and
      specifications made until said work or changes are approved by the project engineer and
      authorized by the DEPARTMENT.




03-15-93                                      4
F.    Should it be necessary or desirable that portions of the work covered by this contract be
      accomplished by a consulting firm, a railway company, or governmental agency, firm,
      person, or corporation, under a subcontract with the REQUESTING PARTY at
      PROJECT expense, such subcontracted arrangements will be covered by formal written
      agreement between the REQUESTING PARTY and that party.

      This formal written agreement shall: include a reference to the specific prime contract to
      which it pertains; include provisions which clearly set forth the maximum reimbursable
      and the basis of payment; provide for the maintenance of accounting records in
      accordance with generally accepted accounting principles, which clearly document the
      actual cost of the services provided; provide that costs eligible for reimbursement shall be
      in accordance with clearly defined cost criteria such as 49 CFR Part 18, 48 CFR Part 31,
      23 CFR Part 140, 0MB Circular A-87, etc. as applicable; provide for access to the
      department or its representatives to inspect and audit all data and records related to the
      agreement for a minimum of three years after the department's final payment to the local
      unit.

      All such agreements will be submitted for approval by the DEPARTMENT and, if
      applicable, by the FHWA prior to execution thereof, except for agreements for amounts
      less than $100,000 for preliminary engineering and testing services executed under and in
      accordance with the provisions of the "Small Purchase Procedures" FAPG (23 CFR 172),
      which do not require prior approval of the DEPARTMENT or the FHWA.

      Any such approval by the DEPARTMENT shall in no way be construed as a warranty of
      the subcontractor's qualifications, financial integrity, or ability to perform the work being
      subcontracted.

G.    The REQUESTING PARTY, at no cost to the PROJECT or the DEPARTMENT, shall
      make such arrangements with railway companies, utilities, etc., as may be necessary for
      the performance of work required for the PROJECT but for which Federal or other
      reimbursement will not be requested.

H.    The REQUESTING PARTY, at no cost to the PROJECT, or the DEPARTMENT, shall
      secure, as necessary, all agreements and approvals of the PROJECT with railway
      companies, the Railroad Safety & Tariffs Division of the DEPARTMENT and other
      concerned governmental agencies other than the FHWA, and will forward same to the
      DEPARTMENT for such reviews and approvals as may be required.

I.    No PROJECT work for which reimbursement will be requested by the REQUESTING
      PARTY is to be subcontracted or performed until the DEPARTMENT gives written
      notification that such work may commence.




03-15-93                                       5
J.     The REQUESTING PARTY shall be responsible for the payment of all costs and
       expenses incurred in the performance of the work it agrees to undertake and perform.

K.     The REQUESTING PARTY shall pay directly to the party performing the work all
       billings for the services performed on the PROJECT which are authorized by or through
       the REQUESTING PARTY.

L.     The REQUESTING PARTY shall submit to the DEPARTMENT all paid billings for
       which reimbursement is desired in accordance with DEPARTMENT procedures.

M.     All work by a consulting firm will be performed in compliance with the applicable
       provisions of 1980 PA 299, Subsection 2001, MCL 339.2001; MSA 18.425(2001), as
       well as in accordance with the provisions of all previously cited Directives of the FHWA.

N.     The project engineer shall be subject to such administrative guidance as may be deemed
       necessary to ensure compliance with program requirement and, in those instances where
       a consultant firm is retained to provide engineering and inspection services, the personnel
       performing those services shall be subject to the same conditions.

0.    The DEPARTMENT, in administering the PROJECT in accordance with applicable
      Federal and State requirements and regulations, neither assumes nor becomes liable for
      any obligations undertaken or arising between the REQUESTING PARTY and any other
      party with respect to the PROJECT.

P.    In the event it is determined by the DEPARTMENT that there will be either insufficient
      Federal funds or insufficient time to properly administer such funds for the entire
      PROJECT or portions thereof, the DEPARTMENT, prior to advertising or issuing
      authorization for work performance, may cancel the PROJECT, or any portion thereof,
      and upon written notice to the parties this contract shall be void and of no effect with
      respect to that cancelled portion of the PROJECT. Any PROJECT deposits previously
      made by the parties on the cancelled portions of the PROJECT will be promptly
      refunded.

Q.    Those projects funded with Federal monies will be subject to inspection at all times by
      the DEPARTMENT and the FHWA.




03-15-93                                       6
                                       SECTION III

                             ACCOUNTING AND BILLING


A.    Procedures for billing for work undertaken by the REQUESTING PARTY:

      1.    The REQUESTING PARTY shall establish and maintain accurate records, in
            accordance with generally accepted accounting principles, of all expenses
            incurred for which payment is sought or made under this contract, said records to
            be hereinafter referred to as the "RECORDS". Separate accounts shall be
            established and maintained for all costs incurred under this contract.

            The REQUESTING PARTY shall maintain the RECORDS for at least three (3)
            years from the date of final payment of Federal Aid made by the DEPARTMENT
            under this contract. In the event of a dispute with regard to the allowable
            expenses or any other issue under this contract, the REQUESTING PARTY shall
            thereafter continue to maintain the RECORDS at least until that dispute has been
            finally decided and the time for all available challenges or appeals of that decision
            has expired.

            The DEPARTMENT, or its representative, may inspect, copy, or audit the
            RECORDS at any reasonable time after giving reasonable notice.

            If any part of the work is subcontracted, the REQUESTING PARTY shall assure
            compliance with the above for all subcontracted work.

            In the event that an audit performed by or on behalf of the DEPARTMENT
            indicates an adjustment to the costs reported under this contract, or questions the
            allowability of an item of expense, the DEPARTMENT shall promptly submit to
            the REQUESTING PARTY, a Notice of Audit Results and a copy of the audit
            report which may supplement or modify any tentative findings verbally
            communicated to the REQUESTING PARTY at the completion of an audit.

            Within sixty (60) days after the date of the Notice of Audit Results, the
            REQUESTING PARTY shall: (a) respond in writing to the responsible Bureau or
            the DEPARTMENT indicating whether or not it concurs with the audit report, (b)
            clearly explain the nature and basis for any disagreement as to a disallowed item
            of expense and, (c) submit to the DEPARTMENT a written explanation as to any
            questioned or no opinion expressed item of expense, hereinafter referred to as the
            "RESPONSE". The RESPONSE shall be clearly stated and provide any
            supporting documentation necessary to resolve any disagreement or questioned or
            no opinion expressed item of expense. Where the documentation is voluminous,
            the REQUESTING PARTY may supply appropriate excerpts and make alternate


03-15-93                                      7
           arrangements to conveniently and reasonably make that documentation available
           for review by the DEPARTMENT. The RESPONSE shall refer to and apply the
           language of the contract. The REQUESTING PARTY agrees that failure to
           submit a RESPONSE within the sixty (60) day period constitutes agreement with
           any disallowance of an item of expense and authorizes the DEPARTMENT to
           finally disallow any items of questioned or no opinion expressed cost.

           The DEPARTMENT shall make its decision with regard to any Notice of Audit
           Results and RESPONSE within one hundred twenty (120) days after the date of
           the Notice of Audit Results. If the DEPARTMENT determines that an
           overpayment has been made to the REQUESTING PARTY, the REQUESTING
           PARTY shall repay that amount to the DEPARTMENT or reach agreement with
           the DEPARTMENT on a repayment schedule within thirty (30) days after the
           date ofan invoice from the DEPARTMENT. If the REQUESTING PARTY fails
           to repay the overpayment or reach agreement with the DEPARTMENT on a
           repayment schedule within the thirty (30) day period, the REQUESTING PARTY
           agrees that the DEPARTMENT shall deduct all or a portion of the overpayment
           from any funds then or thereafter payable by the DEPARTMENT to the
           REQUESTING PARTY under this contract or any other agreement, or payable to
           the REQUESTING PARTY under the terms of 1951 PA 51, as applicable.
           Interest will be assessed on any partial payments or repayment schedules based on
           the unpaid balance at the end of each month until the balance is paid in full. The
           assessment of interest will begin thirty (30) days from the date of the invoice.
           The rate of interest will be based on the Michigan Department of Treasury
           common cash funds interest earnings. The rate of interest will be reviewed
           annually by the DEPARTMENT and adjusted as necessary based on the Michigan
           Department of Treasury common cash funds interest earnings.                    The
           REQUESTING PARTY expressly consents to this withholding or offsetting of
           funds under those circumstances, reserving the right to file a lawsuit in the Court
           of Claims to contest the DEPARTMENT'S decision only as to any item of
           expense the disallowance of which was disputed by the REQUESTING PARTY
           in a timely filed RESPONSE.

           The REQUESTING PARTY shall comply with the Single Audit Act of 1984,
           P.L. 98-502.

           The REQUESTING PARTY shall adhere to the following requirements
           associated with audits of accounts and records:

           a. Agencies expending a total of $500,000 or more in federal funds, from one or
           more funding sources in its fiscal year, shall comply with the requirements of the
           federal Office of Management and Budget (0MB) Circular A-133, as revised or
           amended.



03-15-93                                    8
           The agency shall submit two copies of:

                   The Reporting Package
                   The Data Collection Form
                   The management letter to the agency, if one issued by the audit firm

           The 0MB Circular A-133 audit must be submitted to the address below m
           accordance with the time frame established in the circular, as revised or amended.

           b. Agencies expending less than $500,000 in federal funds must submit a letter to
           the Department advising that a circular audit was not required. The letter shall
           indicate the applicable fiscal year, the amount of federal funds spent, the name(s)
           of the Department federal programs, and the CFDA grant number(s). This
           information must also be submitted to the address below.

           c. Address:     Michigan Department of Transportation
                           Bureau of Highways Technical Services
                           425 W. Ottawa, P.O. Box 30050
                           Lansing, MI 48909

           d. Agencies must also comply with applicable State laws and regulations relative
           to audit requirements.

           e. Agencies shall not charge audit costs to Department's federal programs which
           are not in accordance with the 0MB Circular A-133 requirements.

           f. All agencies are subject to the federally required monitoring activities, which
           may include limited scope reviews and other on-site monitoring.

      2.   Agreed Unit Prices Work - All billings for work undertaken by the
           REQUESTING PARTY on an agreed unit price basis will be submitted in
           accordance with the Michigan Department of Transportation Standard
           Specifications for Construction and pertinent FAPG Directives and Guidelines of
           theFHWA.

      3.   Force Account Work and Subcontracted Work - All billings submitted to the
           DEPARTMENT for Federal reimbursement for items of work performed on a
           force account basis or by any subcontract with a consulting firm, railway
           company, governmental agency or other party, under the terms of this contract,
           shall be prepared in accordance with the provisions of the pertinent FHPM
           Directives and the procedures of the DEPARTMENT. Progress billings may be
           submitted monthly during the time work is being performed provided, however,
           that no bill of a lesser amount than $ I ,000.00 shall be submitted unless it is a final


03-15-93                                      9
            or end of fiscal year billing. All billings shall be labeled either "Progress Bill
            Number _ _ _ ", or "Final Billing".

      4.    Final billing under this contract shall be submitted in a timely manner but not later
            than six months after completion of the work. Billings for work submitted later
            than six months after completion of the work will not be paid.

      5.    Upon receipt of billings for reimbursement for work undertaken by the
            REQUESTING PARTY on projects funded with Federal monies, the
            DEPARTMENT will act as billing agent for the REQUESTING PARTY,
            consolidating said billings with those for its own force account work and
            presenting these consolidated billings to the FHWA for payment. Upon receipt of
            reimbursement from the FHWA, the DEPARTMENT will promptly forward to
            the REQUESTING PARTY its share of said reimbursement.

      6.    Upon receipt of billings for reimbursement for work undertaken by the
            REQUESTING PARTY on projects funded with non-Federal monies, the
            DEPARTMENT will promptly forward to the REQUESTING PARTY
            reimbursement of eligible costs.

B.    Payment of Contracted and DEPARTMENT Costs:

       I.   As work on the PROJECT commences, the initial payments for contracted work
            and/or costs incurred by the DEPARTMENT will be made from the working
            capital deposit. Receipt of progress payments of Federal funds, and where
            applicable, State Critical Bridge funds, will be used to replenish the working
            capital deposit. The REQUESTING PARTY shall make prompt payments of its
            share of the contracted and/or DEPARTMENT incurred portion of the PROJECT
            COST upon receipt of progress billings from the DEPARTMENT. Progress
            billings will be based upon the REQUESTING PARTY'S share of the actual costs
            incurred as work on the PROJECT progresses and will be submitted, as required,
            until it is determined by the DEPARTMENT that there is sufficient available
            working capital to meet the remaining anticipated PROJECT COSTS. All
            progress payments will be made within thirty (30) days of receipt of billings. No
            monthly billing of a lesser amount than $1,000.00 will be made unless it is a final
            or end of fiscal year billing. Should the DEPARTMENT determine that the
            available working capital exceeds the remaining anticipated PROJECT COSTS,
            the DEPARTMENT may reimburse the REQUESTING PARTY such excess.
            Upon completion of the PROJECT, payment of all PROJECT COSTS, receipt of
            all applicable monies from the FHWA, and completion of necessary audits, the
            REQUESTING PARTY will be reimbursed the balance of its deposit.




03-15-93                                     JO
       2.     In the event that the bid, plus contingencies, for the contracted, and/or the
              DEPARTMENT incurred portion of the PROJECT work exceeds the estimated
              cost therefor as established by this contract, the REQUESTING PARTY may be
              advised and billed for the additional amount of its share.

C.     General Conditions:

       I.    The DEPARTMENT, in accordance with its procedures in existence and covering
             the time period involved, shall make payment for interest earned on the balance of
             working capital deposits for all projects on account with the DEPARTMENT.
             The REQUESTING PARTY in accordance with DEPARTMENT procedures in
             existence and covering the time period involved, shall make payment for interest
             owed on any deficit balance of working capital deposits for all projects on
             account with the DEPARTMENT. This payment or billing is processed on an
             annual basis corresponding to the State of Michigan fiscal year. Upon receipt of
             billing for interest incurred, the REQUESTING PARTY promises and shall
             promptly pay the DEPARTMENT said amount.

      2.     Pursuant to the authority granted by law, the REQUESTING PARTY hereby
             irrevocably pledges a sufficient amount of funds received by it from the Michigan
             Transportation Fund to meet its obligations as specified in PART I and PART II.
             If the REQUESTING PARTY shall fail to make any of its required payments
             when due, as specified herein, the DEPARTMENT shall immediately notify the
             REQUESTING PARTY and the State Treasurer of the State of Michigan or such
             other state officer or agency having charge and control over disbursement of the
             Michigan Transportation Fund, pursuant to law, of the fact of such default and the
             amount thereof, and, if such default is not cured by payment within ten (10) days,
             said State Treasurer or other state officer or agency is then authorized and
             directed to withhold from the first of such monies thereafter allocated by law to
             the REQUESTING PARTY from the Michigan Transportation Fund sufficient
             monies to remove the default, and to credit the REQUESTING PARTY with
             payment thereof, and to notify the REQUESTING PARTY in writing of such fact.

      3.     Upon completion of all work under this contract and final audit by the
             DEPARTMENT or the FHWA, the REQUESTING PARTY promises to
             promptly repay the DEPARTMENT for any disallowed items of costs previously
             disbursed by the DEPARTMENT. The REQUESTING PARTY pledges its
             future receipts from the Michigan Transportation Fund for repayment of all
             disallowed items and, upon failure to make repayment for any disallowed items
             within ninety (90) days of demand made by the DEPARTMENT, the
             DEPARTMENT is hereby authorized to withhold an equal amount from the
             REQUESTING PARTY'S share of any future distribution of Michigan
             Transportation Funds in settlement of said claim.



03-15-93                                     11
       4.   The DEPARTMENT shall maintain and keep accurate records and accounts
            relative to the cost of the PROJECT and upon completion of the PROJECT,
            payment of all items of PROJECT COST, receipt of all Federal Aid, if any, and
            completion of final audit by the DEPARTMENT and if applicable, by the FHWA,
            shall make final accounting to the REQUESTING PARTY. The final PROJECT
            accounting will not include interest earned or charged on working capital
            deposited for the PROJECT which will be accounted for separately at the close of
            the State of Michigan fiscal year and as set forth in Section C(l).

       5.   The costs of engineering and other services performed on those projects involving
            specific program funds and one hundred percent ( I 00%) local funds will be
            apportioned to the respective portions of that project in the same ratio as the
            actual direct construction costs unless otherwise specified in PART I.




03-15-93                                   12
                                          SECTION IV

                              MAINTENANCE AND OPERATION


A.     Upon completion of construction of each part of the PROJECT, at no cost to the
       DEPARTMENT or the PROJECT, each of the parties hereto, within their respective
       jurisdictions, will make the following provisions for the maintenance and operation of the
       completed PROJECT:

       1.     All Projects:

             · Properly maintain and operate each part of the project, making ample provisions
               each year for the performance of such maintenance work as may be required,
               except as qualified in paragraph 2b of this section.

       2.     Projects Financed in Part with Federal Monies:

              a.     Sign and mark each part of the PROJECT, in accordance with the current
                     Michigan Manual of Uniform Traffic control Devices, and will not install,
                     or permit to be installed, any signs, signals or markings not in
                     conformance with the standards approved by the FHWA, pursuant to 23
                     USC 109(d).

              b.     Remove, prior to completion of the PROJECT, all encroachments from the
                     roadway right-of-way within the limits of each part of the PROJECT.

                     With respect to new or existing utility installations within the right-of-way
                     of Federal Aid projects and pursuant to FAPG (23 CFR 645B):
                     Occupancy of non-limited access right-of-way may be allowed based on
                     consideration for traffic safety and necessary preservation of roadside
                     space and aesthetic quality. Longitudinal occupancy of non-limited access
                     right-of-way by private lines will require a finding of significant economic
                     hardship, the unavailability of practicable alternatives or other extenuating
                     circumstances.

             C.      Cause to be enacted, maintained and enforced, ordinances and regulations
                     for proper traffic operations in accordance with the plans of the
                     PROJECT.

             d.      Make no changes to ordinances or regulations enacted, or traffic controls
                     installed in conjunction with the PROJECT work without prior review by
                     the DEPARTMENT and approval of the FHWA, if required.



03-15-93                                      13
B.     On projects for the removal of roadside obstacles, the parties, upon completion of
       construction of each part of the PROJECT, at no cost to the PROJECT or the
       DEPARTMENT, will, within their respective jurisdictions, take such action as is
       necessary to assure that the roadway right-of-way, cleared as the PROJECT, will be
       maintained free of such obstacles.

C.     On projects for the construction of bikeways, the pa1iies will enact no ordinances or
       regulations prohibiting the use of bicycles on the facility hereinbefore described as the
       PROJECT, and will amend any existing restrictive ordinances in this regard so as to
       allow use of this facility by bicycles. No motorized vehicles shall be permitted on such
       bikeways or walkways constructed as the PROJECT except those for maintenance
       purposes.

D.     Failure of the parties hereto to fulfill their respective responsibilities as outlined herein
       may disqualify that party from future Federal-aid participation in projects on roads or
       streets for which it has maintenance responsibility. Federal Aid may be withheld until
       such time as deficiencies in regulations have been corrected, and the improvements
       constructed as the PROJECT are brought to a satisfactory condition of maintenance.




03-15-93                                       14
                                         SECTIONV

                    SPECIAL PROGRAM AND PROJECT CONDITIONS

A.     Those projects for which the REQUESTING PARTY has been reimbursed with Federal
       monies for the acquisition of right-of-way must be under construction by the close of the
       twentieth (20th) fiscal year following the fiscal year in which the FHWA and the
       DEPARTMENT projects agreement covering that work is executed, or the
       REQUESTING PARTY may be required to repay to the DEPARTMENT, for forwarding
       to the FHWA, all monies distributed as the FHWA'S contribution to that right-of-way.

B.     Those projects for which the REQUESTING PARTY has been reimbursed with Federal
       monies for the performance of preliminary engineering must be under construction by the
       close of the tenth (10th) fiscal year following the fiscal year in which the FHWA and the
       DEPARTMENT projects agreement covering that work is executed, or the
       REQUESTING PARTY may be required to repay to the DEPARTMENT, for forwarding
       to the FHWA, all monies distributed as the FHWA'S contribution to that preliminary
       engmeenng.

C.    On those projects funded with Federal monies, the REQUESTING PARTY, at no cost to
      the PROJECT or the DEPARTMENT, will provide such accident information as is
      available and such other information as may be required under the program in order to
      make the proper assessment of the safety benefits derived from the work performed as the
      PROJECT. The REQUESTING PARTY will cooperate with the DEPARTMENT in the
      development of reports and such analysis as may be required and will, when requested by
      the DEPARTMENT, forward to the DEPARTMENT, in such form as is necessary, the
      required information.

D.    In connection with the performance of PROJECT work under this contract the parties
      hereto (hereinafter in Appendix "A" referred to as the "contractor") agree to comply with
      the State of Michigan provisions for "Prohibition of Discrimination in State Contracts",
      as set forth in Appendix A, attached hereto and made a part hereof. The parties further
      covenant that they will comply with the Civil Rights Acts of 1964, being P.L. 88-352, 78
      Stat. 241, as amended, being Title 42 U.S.C. Sections 1971, 1975a-1975d, and 2000a-
      2000h-6 and the Regulations of the United States Department of Transportation (49
      C.F.R. Part 21) issued pursuant to said Act, including Appendix "B ", attached hereto and
      made a part hereof, and will require similar covenants on the pa1t of any contractor or
      subcontractor employed in the performance of this contract.

E.    The parties will carry out the applicable requirements of the DEPARTMENT'S
      Disadvantaged Business Enterprise (DBE) program and 49 CFR, Part 26, including, but
      not limited to, those requirements set forth in Appendix C.




03-15-93                                      15
                                                       APPE1"DiX A
                                    PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

     In connection with the performance of work under this contract; the contractor agrees as foilows:

     1.      In accordance with Act No . ..t53. Public Act~ of 1976, the contractor hereby agrees not to discriminate against an employet
             or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, or as a matter
             directly or indirectly related to employment, because of race, color, religion, national origin, age. sex. height. weight, or
             marital status. Further, in accordance with Act No. 220, Public Acts of 1976 as amended by Act No. -178, Public Acts of
             1980 the contractor hereby agrees not to discriminate against an employee or applicant for employment with respect to
             hire, tenure, terms, conditions, or privileges of employment, or a matter directly or indirectly related to employment,
             because of a disability that is unrelated to the individual's ability to perform the duties of a particular job or position.
            A breach of the above covenants shall be regarded as a material breach of this contract.

     2.     The contractor hereby agrees that any and all subcontracts to this contract, whereby a portion of the work set forth in
            this contract is to be performed, shall contain a covenant the same as hereinabove set forth in Section l of this Appendix.

 3.         The contractor will take affirmative action to insure that applicants for employment and employees are treated without
            regard to their race, color, religion, national origin, age, sex, height, weight, marital status or a disability that is unrelated
            to the individual's ability to perform the duties of a particular job or position. Such action shall include, but noi be limited
            to, the following: employment, upgrading, demotion or transfer, recruitment advertising; layoff or termination; rates of
            pay or other forms of compensation; and selection for training, including apprenticeship.

 4.         The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that
            all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin,
            age;sex, height, weight, marital status or disability that is unrelated to the individual's ability to perform the duties of a
            particular job or position.

 5:         The contractor or his coJlective bargaining representative will send to each labor union or representative of workers with
           which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union
           or workers' representative of the contractor's commitments under this appendix.

 6.        The contractor will comply with all relevant published rules, regulations, directives, and orders of the Michigan Civil
           Rights Commission which may be in effect prior to the taking of bids for any individual state project.

 7.        The contractor will furnish and file compliance reports within such time and upon such forms as provided by the Michigan
           Civil Rights Commission, said forms may also elicit information as to the practices, policies, program, and employment
           statistics of each subcontractor as well as the contractor himself, and said contractor will permit access to his books,
           records, and ac.counts by the Michigan Civil Rights Commission and/or its agent, for purposes of investigation to ascertain
           compliance with this contract and relevant with rules, regulations, and orders of the Michigan Civil Rights Commission.


8.         In the event that the Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor has not
           complied with the contractual obligations under this agreement, the Civil Rights Commission may, as part of its order
           based upon such findings, certify said findings to the Administrative Board of the State of Michigan, which Administrative
           Board may order the cancellation of the contract found to have been violated and/or declare the contractor ineligible for
           future contracts with the state and its political and civil subdivisions, departments, and officers, and including the
           governing boards of institutions of higher education, until the contractor complies with said order of the Civil Rights
           Commission. Notice of said declaration of future ineligibility may be given to any or all of the persons with whom the
           contractor is declared ineligible to contract as a contracting party in future contracts. In any case before the Civil Rights
           Commission in which cancellation of an existing contract is a possibility, the contracting agency shall be notified of such
           possible remedy and shall be given the option by the Civil Rights Commission to participate in such proceedings.

9.        The contractor will include, or incorporate by reference, the provisions of the foregoing paragraphs (1) through (8) in
          every subcontract or purchase order unless exempted by the rules, regulations or orders of the Michigan Civil Rights
          Commission, and will provide in every subcontract or purchase order that said provisions will be binding upon each
          subcontractor or seller.                                                                               March. 1998
                                                                                                       (Re'". 03/92)

                                                   APPENDIX B

 During the performance of this contract, the contractor, for itself, its assignees, and successors in interest
 (hereinafter referred to as the "contractor") agrees as follows:

 J.      Compliance with Regulations: The contractor shall comply with the Regulations relative to
         nondiscrimination in Federally assisted programs of the Department of Transportation, Title ~9, Code
         of Federal Regulations, Part 27, as they may be amended from time to time (hereinafter referred to as
         the Regulations), which are herein incorporated by reference and made a part of this contract.

 2.      Nondiscrimination: The contractor, with regard to the work performed by it during the contract, shall
         not discriminate on the grounds of race, color, or natural origin in the selection and retention of
         subcontractors, including procurements of materials and leases of equipment. The contractor shall not
         participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the
         Regulations, including employment practices when the contract covers a program set forth in Appendix
         B of the Regulations.

3.       Solicitations for Subcontracts. Including Procurements of Materials and Equipment: In all solicitations
         either by competitive bidding or negotiation made by the contractor for work to be performed under a
         subcontract, including procurements of materials or leases of equipment, each potential subcontractor
         or supplier shall be notified by the contractor of the contractor's obligations under.this contract and the
         Regulations relative to noil.discrimination on the grounds of race, color, or national origin.

4.      Information and Reports: The contractor shall provide all information and reports required by the
        Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts,
        other sources of information, and its facilities as may be determined by the Michigan Department of
        Transportation or t.he Federal Highway Administration to be pertinent to ascertain compliance with such
        Regulations or directives. Where any information required of a contractor is in the exclusive possession
        of another who fails or refuses to furnish this information, the contractor shall so certify to the Michigan
        Department of Transportation, or the Federal Highway Administration as appropriate, and shall set
        forth what efforts it has made to obtain the information.

5.      Sa.nctions for Noncompliance:         In the event of the contractor's noncompliance with the
        nondiscrimination provisions of this contract, the Michigan Department of Transportation shall impose
        such contract sanctions as it or the Federal Highway Administration may determine to be appropriate,
        including, but not limited to:

        (a)      Withholding of payments to the contractor under the contract until the contractor complies,
                 and/or

        (b)      Cancellation, termination, or suspension of the contract, in whole or in part:.

6.      Incorporation of Provisions: The contractor shall include the provisions of paragraphs 1 through 6 of
       every subcontract, including procurements of materials and leases of equipment, unless exempt by the
       Regulations, or directives issued pursuant thereto. The contractor shall take such action with respect
       to any subcontract or procurement as the Michigan Department of Transportation or the Federal
       Highway Administration may direct_ as a means of enforcing such provisions including sanctions for non•
       compliance; provided, however, that in the event a contractor becomes involved in, or is threatened with,
       litigation with a subcont.ractor or supplier as a result of such direction, the contractor may request the
       Michigan Department of Transportation to enter into such litigation to protect the interests of the State,
       and, in addition, the contractor may request the United States to enter into such litigation to protect the
       interests of the United States.
                                      APPENDIXC

              TO BE INCLUDED IN ALL FINANCIAL ASSISTANCE
                  AGREEMENTS WITH LOCAL AGENCIES

               Assurance that Recipients and Contractors Must Make
                (Excerpts from US DOT Regulation 49 CFR 26.13)


A.   Each financial assistance agreement signed with a DOT operating administration (or
     a primary recipient) must include the following assurance:

           The recipient shall not discriminate on the basis of race, color,
           national origin, or sex in the award and performance of any US
           DOT-assisted contract or in the administration of its DBE
           program or the requirements of 49 CFR Part 26. The recipient
           shall take all necessary and reasonable steps nuder 49 CFR Part
           26 to ensure nondiscrimination in the award and administration
           of US DOT-assisted contracts. The recipient's DBE program, as
           required by 49 CFR Part 26 and as approved by US DOT, is
           incorporated by reference in this agreement. Implementation of
           this program is a legal obligation and failure to carry out its
           terms shall be treated as a violation of this agreement. Upon
           notification to the recipient of its failure to carry out its approved
           program, the department may impose sanctions as provided for
           under Part 26 and may, in appropriate cases, refer the matter for
           enforcement under 18 U.S.C. 1001 and/or the Program Fraud
           Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).

B.   Each contract MDOT signs with a contractor (and each subcontract the prime
     contractor signs with a subcontractor) must include the following assurance:

           The contractor, sub recipient or subcontractor shall not
           discriminate on the basis of race, color, national origin, or sex in
           the performance of this contract. The contractor· shall carry out.
           applicable requirements of 49 CFR Part 26 in the award and
           administration of US DOT-assisted contracts. Failure by the
           contractor to carry out these requirements is a material breach
           of this contract, which may result in the termination of this
           contract or such other remedy as the recipient deems
           appropriate.
Date:         September 25, 2007
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City - MDOT Agreement for the whitetopping of the:
              Sherman Blvd. @ Henry St. Intersection plus the
              Sidewalk Installation along Sherman Blvd. Between
              Henry St. & Barclay St.


SUMMARY OF REQUEST:
To approve the attached contract with MOOT for the whitetopping of Sherman Blvd. from@
Henry St. Intersection plus the Sidewalk Installation along Sherman Blvd. between Henry St.
& Barclay St. and to approve the attached resolution authorizing the Mayor and City Clerk to
sign the contract.

FINANCIAL IMPACT:
MDOT's participation is limited to the federal funds of $209,800 & $52,400 of state funds
(Local Jobs Today Grant) for a total grant of $262,200. The estimated total construction
cost, without engineering, is $262,000. The engineering cost is estimated at an additional
15% of the construction cost.

BUDGET ACTION REQUIRED:
None at this time. The City's share of the cost will come out of the Major Street fund
and will appear in the 2008 budget.

STAFF RECOMMENDATION:
Approve the attached contract and resolution and authorize the mayor & clerk to sign both.



COMMITTEE RECOMMENDATION:
                                      RESOLUTION 2007-82 ( i)


RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE WHITETOPPING OF
SHERMAN BLVD. FROM@ HENRY ST. INTERSECTION PLUS THE SIDEWALK INSTALLATION ALONG
SHERMAN BLD. BETWEEN HENRY ST. & BARCLAY ST. TOGETHER WITH OTHER NECESSARY
RELATED WORK AND AUTHORIZATION FOR THE MAYOR, STEPHEN J. WARMINGTON AND CITY
CLERK, ANN MARIE BECKER TO EXECUTE SAID CONTRACT

Moved by___C_o_mm_i_s_s_i_on_e_r_C_a_r_t_er
                                         _ _ _ _and supported by



Vice Mayor_G_a_w_r_o_n_ _ _ _ _ _ _that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 07-5474 between the Michigan Department of
Transportation and the City of Muskegon for the whitetopping of Sherman Blvd. AT Henry St. Intersection
and the Sidewalk Installation along Sherman Blvd. between Henry St. and Barclay St. within the City is in
the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 07-5474 be and the same is hereby
authorized and approved and the Mayor and Clerk are authorized to execute said contract for and on behalf of
the City of Muskegon.



             25_t_h_ _day of September , 2007.
Adopted this__




                                                 \

                                        ATTEST       ~\""-'"','...__\\"-lv\,.,(.x ~ -~ vl   ~
                                                     Ann Marie Becker, City Clerk

                                           CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on September 25, 2007.
The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of
Michigan, Act 267 of the Public Acts of 1976.


                                                            CITY OF MUSKEGON

                                                     By ~    \ "> ; ~ ~ ' ~L                J.1l~,
                                                            Ann Marie Becker, City Clerk
                                                           STATE OF MICHIGAN
 JENNIFER M. GRANHOLM                       DEPARTMENT OF TRANSPORTATION                                    KIRK T. STEUDLE
          GOVERNOR                                                                                             DIRECTOR
                                                                 LANSING


                                                      October 17, 2007




              Ms. Anne M. Becker
              Clerk
              City of Muskegon
              933 Terrace Street, P.O. Box 536
              Muskegon,MI 49443-0536

              Dear Ms. Becker:

             RE:     MDOT Contract No.: 07-5474
                     Control Section:   STH 61609
                     Job Number:        100365


             Enclosed is a fully executed copy of the above noted agreement.

                                                                 Sincerely,




                                                                 Jackie Burch
                                                                 Contract Processing Specialist
                                                                 Design Support Area

             Enclosure

             cc:     Project Accounting
                     M. Harbison, Design Support Area
                     Grand




            C:




                                 MURRAY D. VAN WAGONER BUILDING• P.O. BOX 30050 • LANSING, MICHIGAN 48909
                                                      www.michigan.gov • (517) 373-2090
LH-LAN-0 (01/03)
 STP&LJT                                                         CAB
                                                   Control Section   STH 61609
                                                   Job Number        100365
                                                   Project           STP 0761(029)
                                                   Federal Item No.  RR 5931
                                                   CFDANo.           20.205 (Highway
                                                                     Research Planning &
                                                                     Construction)
                                                   Contract No.      07-5474


                                           PART I


        THIS CONTRACT, cons1stmg of PART I and PART II (Standard Agreement
Provisions), is made and entered into this date of OCT J 7 2DD7                , by and between
the MICHIGAN DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the
"DEPARTMENT"; and the CITY OF MUSKEGON, a Michigan municipal corporation,
hereinafter referred to as the "REQUESTING PARTY"; for the purpose of fixing the rights and
obligations of the parties in agreeing to the following improvements, in the City of Muskegon,
Michigan, hereinafter referred to as the "PROJECT" and estimated in detail on EXHIBIT "I",
dated August 21, 2007, attached hereto and made a part hereof:

       Concrete white topping, cold milling, hot mix asphalt paving, concrete paving, and
       pavement marking work at the intersection of Sherman Boulevard and Henry Street;
       sidewalk work along Sherman Boulevard from Barclay Street to Henry Street; and all
       together with necessary related work.


       WITNESSETH:

       WHEREAS, pursuant to Federal and State law, monies have been provided for the
performance of certain improvements on public roads; and

      WHEREAS, the PROJECT has been approved for financing in part with Local Jobs
Today Program Funds; and

      WHEREAS, the reference "FHWA" in PART I and PART II refers to the United States
Department of Transportation, Federal Highway Administration; and




09/06/90 STP.FOR 8/21/07                      1
        WHEREAS, the PROJECT, or portions of the PROJECT, at the request of the
REQUESTING PARTY, are being programmed with the FHWA, for implementation with the
use of Federal Funds under the following Federal program(s) or funding:

                        SURFACE TRANSPORTATION PROGRAM

        WHEREAS, the parties hereto have reached an understanding with each other regarding
the performance of the PROJECT work and desire to set forth this understanding in the form of a
written contract.

        NOW, THEREFORE, in consideration of the premises and of the mutual undertakings of
the parties and in conformity with applicable law, it is agreed:

        I.      The parties hereto shall undertake and complete the PROJECT in accordance with
the terms of this contract.

       2.      The term "PROJECT COST", as herein used, is hereby defined as the cost of the
physical construction necessary for the completion of the PROJECT.

      Costs for construction engineering and inspection incurred by the DEPARTMENT will
be charged 100 percent to the REQUESTING PARTY. Any other costs incurred by the
DEPARTMENT as a result of this contract will be at PROJECT COST.

       The costs incurred by the REQUESTING PARTY for preliminary engineering,
construction engineering, construction materials testing, inspection, and right-of-way are
excluded from the PROJECT COST as defined by this contract.

       3.      The DEPARTMENT is authorized by the REQUESTING PARTY to administer
on behalf of the REQUESTING PARTY all phases of the PROJECT including advertising and
awarding the construction contract for the PROJECT or portions of the PROJECT. Such
administration shall be in accordance with PART II, Section II of this contract.

      Any items of the PROJECT COST incurred by the DEPARTMENT may be charged to
the PROJECT.

     4.  The REQUESTING PARTY, at no cost to the PROJECT or to the
DEPARTMENT, shall:

              A.     Design or cause to be designed the plans for the PROJECT.

              B.     Appoint a project engineer who shall be in responsible charge of the
                     PROJECT and ensure that the plans and specifications are followed.




09/06/90 STP .FOR 8/21/07                      2
               C.      Perform or cause to be performed the construction engineering,
                       construction materials testing, and inspection services necessary for the
                       completion of the PROJECT.

          The REQUESTING PARTY will furnish the DEPARTMENT proposed llmmg
 sequences for trunkline signals that, if any, are being made part of the improvement. No timing
 adjustments shall be made by the REQUESTING PARTY at any trunkline intersection, without
 prior issuances by the DEPARTMENT of Standard Traffic Signal Timing Permits.

        5.      The PROJECT COST shall be met in part by contributions by the Federal
Government and the State Local Jobs Today Program. Federal Surface Transportation Funds
shall be applied to the eligible items of the PROJECT COST at the established Federal
participation ratio equal to 80 percent. State Local Jobs Today Grant Funds shall be applied to
the eligible items of the PROJECT COST at a participation ratio equal to 20 percent up to an
amount not to exceed $54,000. The balance of the PROJECT COST, after deduction of Federal
Funds and State Funds, shall be charged to and paid by the REQUESTING PARTY in the
manner and at the times hereinafter set forth.

        Any items of PROJECT COST not reimbursed by Federal Funds or State Funds will be
the sole responsibility of the REQUESTING PARTY.

       6.      No working capital deposit will be required for this PROJECT.

       In order to fulfill the obligations assumed by the REQUESTING PARTY under the
provisions of this contract, the REQUESTING PARTY shall make prompt payments of its share
of the PROJECT COST upon receipt of progress billings from the DEPARTMENT as herein
provided. All payments will be made within 30 days of receipt of billings from the
DEPARTMENT. Billings to the REQUESTING PARTY will be based upon the REQUESTING
PARTY'S share of the actual costs incurred less Federal Funds and State Local Jobs Today Grant
Funds earned as the PROJECT progresses.

       In the event of any discrepancies between PART I and PART II of this contract, the
provisions of PART I shall prevail.

       7.     Upon completion of construction of the PROJECT, the REQUESTING PARTY
will promptly cause to be enacted and enforced such ordinances or regulations as may be
necessary to prohibit parking in the roadway right-of-way throughout the limits of the
PROJECT.

        8.      The perfotmance of the entire PROJECT under this contract, whether Federally
funded or not, will be subject to the provisions and requirements of PART II that are applicable
to a Federally funded project.




09/06/90 STP.FOR 8/21/07                       3
        9.     The REQUESTING PARTY certifies that a) it is a person under 1995 PA 71 and
is not aware of and has no reason to believe that the property is a facility as defined in MSA
13A.20101(1)(1); b) the REQUESTING PARTY further certifies that it has completed the tasks
required by MCL 324.20126 (3)(h); MSA 13A.20126(3)(h); c) it conducted a visual inspection
of property within the existing right of way on which construction is to be performed to
determine if any hazardous substances were present; and at sites on which historically were
located businesses that involved hazardous substances, it performed a reasonable investigation to
determine whether hazardous substances exist. This reasonable investigation should include, at a
minimum, contact with local, state and federal environmental agencies to determine if the site
has been identified as, or potentially as, a site containing hazardous substances; d) it did not
cause or contribute to the release or threat of release of any hazardous substance found within the
PROJECT limits.

        The REQUESTING PARTY also certifies that, in addition to repo1ting the presence of
any hazardous substances to the Department of Environmental Quality, it has advised the
DEPARTMENT of the presence of any and all hazardous substances which the REQUESTING
PARTY found within the PROJECT limits, as a result of performing the investigation and visual
inspection required herein. The REQUESTING PARTY also certifies that it has been unable to
identify any entity who may be liable for the cost of remediation. As a result, the
REQUESTING PARTY has included all estimated costs of remediation of such hazardous
substances in its estimated cost of constrnction of the PROJECT.

         10.    If, subsequent to execution of this contract, previously unknown hazardous
substances are discovered within the PROJECT limits, which require environmental remediation
pursuant to either state or federal law, the REQUESTING PARTY, in addition to repo1ting that
fact to the Department of Environmental Quality, shall immediately notify the DEPARTMENT,
both orally and in writing of such discovery. The DEPARTMENT shall consult with the
REQUESTING PARTY to determine if it is willing to pay for the cost of remediation and, with
the FHWA, to determine the eligibility, for reimbursement, of the remediation costs. The
REQUESTING PARTY shall be charged for and shall pay all costs associated with such
remediation, including all delay costs of the contractor for the PROJECT, in the event that
remediation and delay costs are not deemed eligible by the FHWA. If the REQUESTING
PARTY refuses to participate in the cost of remediation, the DEPARTMENT shall tetminate the
PROJECT. The parties agree that any costs or damages that the DEPARTMENT incurs as a
result of such termination shall be considered a PROJECT COST.

        11.     If federal and/ or state funds administered by the DEPARTMENT are used to pay
the cost of remediating any hazardous substances discovered after the execution of this contract
and if there is a reasonable likelihood of recovery, the REQUESTING PARTY, in cooperation
with the Depaitment of Environmental Quality and the DEPARTMENT, shall make a diligent
effort to recover such costs from all other possible entities. If recovery is made, the
DEPARTMENT shall be reimbursed from such recovery for the proportionate share of the
amount paid by the FHW A and/or the DEPARTMENT and the DEPARTMENT shall credit
such sums to the appropriate funding source.


09/06/90 SIP .FOR 8/21/07                      4
       12.     The DEPARTMENT'S sole reason for entering into this contract is to enable the
 REQUESTING PARTY to obtain and nse funds provided by the Federal Highway
 Administration pursuant to Title 23 of the United States Code.

        Any and all approvals of, reviews of, and recommendations regarding contracts,
agreements, permits, plans, specifications, or documents, of any nature, or any inspections of
work by the DEPARTMENT or its agents pursuant to the terms of this contract are done to assist
the REQUESTING PARTY in meeting program guidelines in order to qualify for available
funds. Such approvals, reviews, inspections and recommendations by the DEPARTMENT or its
agents shall not relieve the REQUESTING PARTY and the local agencies, as applicable, of their
ultimate control and shall not be const:med as a warranty of their propriety or that the
DEPARTMENT or its agents is assuming any liability, control or jurisdiction.

        The providing of recommendations or advice by the DEPARTMENT or its agents does
not relieve the REQUESTING PARTY and the local agencies, as applicable of their exclusive
jurisdiction of the highway and responsibility under MCL 691.1402, MSA 3.996(102).

     When providing approvals, reviews and recommendations under this contract, the
DEPARTMENT or its agents is performing a governmental function, as that term is defined in
MCL 691.1401; MSA 3.996(101), which is incidental to the completion of the PROJECT.

        13.    The DEPARTMENT, by executing this contract, and rendering services pursuant
to this contract, has not and does not assume jurisdiction of the highway, described as the
PROJECT for purposes of MCL 691.1402; MSA 3.996(102). Exclnsive jurisdiction of such
highway for the purposes of MCL 691.1402; MSA 3.996(102) rests with the REQUESTING
PARTY and other local agencies having respective jurisdiction.

        14.    The REQUESTING PARTY shall approve all of the plans and specifications to
be used on the PROJECT and shall be deemed to have approved all changes to the plans and
specifications when put into effect. It is agreed that ultimate responsibility and control over the
PROJECT rests with the REQUESTING PARTY and local agencies, as applicable.

        15.     The REQUESTING PARTY agrees that the costs reported to the DEPARTMENT
for this contract will represent only those items that are properly chargeable in accordance with
this contract. The REQUESTING PARTY also certifies that it has read the contract terms and
has made itself aware of the applicable laws, regulations, and terms of this contract that apply to
the reporting of costs incmTed under the terms of this contract.

        16.    The parties shall promptly provide comprehensive assistance and cooperation in
defending and resolving any claims brought against the DEPARTMENT by the contractor,
vendors or suppliers as a result of the DEPARTMENT'S award of the construction contract for
the PROJECT. Costs incurred by the DEPARTMENT in defending or resolving such claims
shall be considered PROJECT COSTS.


09/06/90 STP.FOR 8/21/07                        5
        18.        This contract shall become binding on the parties hereto and of full force and
effect upon the signing thereof by the duly authorized officials for the parties hereto and upon the
adoption of the necessary resolutions approving said contract and authorizing the signatures
thereto of the respective officials of the REQUESTING PARTY, a certified copy of which
resolution shall be attached to this contract.

       IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the
day and year first above written.

CITY OF MUSKEGON                                                MICHIGAN DEPARTMENT
                                                                OF TRANSPORTATION




    \
        \   .)
                    .
                   /\:\..      .   •
                                       ')
                                       i         .. !
By '-.....,-;'v,..>r-s .___•~"'---.'-·' • 2 '--- , \'-. <                             "' 3, J,1
 Title: Ann Marie Becker
            City Clerk

                                                                                      r



09/06/90 STP.FOR 8/21/07                                    7
                                                                          August 21, 2007


                                       EXHIBIT I

                           CONTROL SECTION            STH 61609
                           JOB NUMBER                 100365
                           PROJECT                    STP 0761(029)


                                   ESTIMATED COST

CONTRACTED WORK

      Estimated Cost                                                       $262,200



                                COST PARTICIPATION

             GRAND TOTAL ESTIMATED COST                                    $262,200
             Less Federal Funds                                            $209,800
             Less State Local Jobs Today Grant Funds*                      $ 52,400
             BALANCE (REQUESTING PARTY'S SHARE)                            $      0


*State Local Jobs Today Grant Funds shall be applied to the eligible items of the PROJECT
COST at a participation ratio equal to 20 percent up to an amount not to exceed $54,000.

NO DEPOSIT




09/06/90 STP.FOR 8/21/07                    8
DOT                                                          TYPEB
                                                BUREAU OF HIGHWAYS
                                                             03-15-93




                                PART II

                   STANDARD AGREEMENT PROVISIONS


           SECTION I   COMPLIANCE WITH REGULATIONS AND DIRECTNES

           SECTION II PROJECT ADMINISTRATION AND SUPERVISION

           SECTION III ACCOUNTING AND BILLING

           SECTION IV MAINTENANCE AND OPERATION

           SECTION V   SPECIAL PROGRAM AND PROJECT CONDITIONS




03-15-93                           1
                                        SECTION I

                  COMPLIANCE WITH REGULATIONS AND DIRECTIVES

A.    To qualify for eligible cost, all work shall be documented in accordance with the
      requirements and procedures of the DEPARTMENT.

B.    All work on projects for which reimbursement with Federal funds is requested shall be
      performed in accordance with the requirements and guidelines set forth in the following
      Directives of the Federal-Aid Policy Guide (FAPG) of the FHWA, as applicable, and as
      referenced in pe1tinent sections of Title 23 and Title 49 of the Code of Federal
      Regulations (CFR), and all supplements and amendments thereto.

      1.     Engineering

             a.      FAPG (6012.1): Preliminary Engineering

             b.      FAPG (23 CFR 172): Administration of Engineering and Design Related
                     Service Contracts

             c.      FAPG (23 CFR 635A): Contract Procedures

             d.      FAPG (49 CFR 18.22): Uniform Administrative Requirements for Grants
                     and Cooperative Agreements to State and Local Governments-Allowable
                     Costs


      2.     Construction

             a.      FAPG (23 CFR 140E): Administrative Settlement Costs-Contract Claims

             b.      FAPG (23 CFR 140B): Construction Engineering Costs

             c.      FAPG (23 CFR 17): Recordkeeping and Retention Requirements for
                     Federal-Aid Highway Records of State Highway Agencies

             d.      F APG (23 CFR 635A): Contract Procedures

             e.      FAPG (23 CFR 635B): Force Account Construction

             f.      FAPG (23 CFR         645A):   Utility   Relocations,   Adjustments   and
                     Reimbursement



03-15-93                                     2
              g.     FAPG (23 CFR 645B): Accommodation of Utilities (PPM 30-4.1)

              h.     FAPG (23 CFR 655F): Traffic Control Devices on Federal-Aid and other
                     Streets and Highways

              1.     FAPG (49 CFR I 8.22): Uniform Administrative Requirements for Grants
                     and Cooperative Agreements to State and Local Governments-Allowable
                     Costs

       3.    Modification Or Construction Of Railroad Facilities

              a.     FAPG (23 CFR 1401): Reimbursement for Railroad Work

             b.      FAPG (23 CFR 646B): Railroad Highway Projects

C.    In conformance with FAPG (23 CFR 630C) Project Agreements, the political
      subdivisions party to this contract, on those Federally funded projects which exceed a
      total cost of $100,000.00 stipulate the following with respect to their specific
      jurisdictions:

       l.    That any facility to be utilized in performance under or to benefit from this
             contract is not listed on the Environmental Protection Agency (EPA) List of
             Violating Facilities issued pursuant to the requirements of the Federal Clean Air
             Act, as amended, and the Federal Water Pollution Control Act, as amended.

      2.     That they each agree to comply with all of the requirements of Section 114 of the
             Federal Clean Air Act and Section 308 of the Federal Water Pollution Control
             Act, and all regulations and guidelines issued thereunder.

      3.     That as a condition of Federal aid pursuant to this contract they shall notify the
             DEPARTMENT of the receipt of any advice indicating that a facility to be
             utilized in performance under or to benefit from this contract is under
             consideration to be listed on the EPA List of Violating Facilities.

D.    Ensure that the PROJECT is constructed in accordance with and incorporates all
      committed environmental impact mitigation measures listed in approved environmental
      documents unless modified or deleted by approval of the FHW A.

E.    All the requirements, guidelines, conditions and restrictions noted in all other pertinent
      Directives and Instructional Memoranda of the FHWA will apply to this contract and will
      be adhered to, as applicable, by the parties hereto.




03-15-93                                      3
                                        SECTION II

                   PROJECT ADMINISTRATION AND SUPERVISION


A.    The DEPARTMENT shall provide such administrative guidance as it determines is
      required by the PROJECT in order to facilitate the obtaining of available federal and/or
      state funds.

B.    The DEPARTMENT will advertise and award all contracted portions of the PROJECT
      work. Prior to advertising of the PROJECT for receipt of bids, the REQUESTING
      PARTY may delete any portion or all of the PROJECT work. After receipt of bids for
      the PROJECT, the REQUESTING PARTY shall have the right to reject the amount bid
      for the PROJECT prior to the award of the contract for the PROJECT only if such
      amount exceeds by twenty percent (20%) the final engineer's estimate therefor. If such
      rejection of the bids is not received in writing within two (2) weeks after letting, the
      DEPARTMENT will assume concurrence. The DEPARTMENT may, upon request,
      readvertise the PROJECT. Should the REQUESTING PARTY so request in writing
      within the aforesaid two (2) week period after letting, the PROJECT will be cancelled
      and the DEPARTMENT will refund the unused balance of the deposit less all costs
      incurred by the DEPARTMENT.

C.    The DEPARTMENT will perform such inspection services on PROJECT work
      performed by the REQUESTING PARTY with its own forces as is required to ensure
      compliance with the approved plans & specifications.

D.    On those projects funded with Federal monies, the DEPARTMENT shall as may be
      required secure from the FHW A approval of plans and specifications, and such cost
      estimates for FHWA participation in the PROJECT COST.

E.    All work in connection with the PROJECT shall be performed in conformance with the
      Michigan Department of Transportation Standard Specifications for Construction, and the
      supplemental specifications, Special Provisions and plans pertaining to the PROJECT
      and all materials furnished and used in the construction of the PROJECT shall conform to
      the aforesaid specifications. No extra work shall be performed nor changes in plans and
      specifications made until said work or changes are approved by the project engineer and
      authorized by the DEPARTMENT.




03-15-93                                     4
F.    Should it be necessary or desirable that portions of the work covered by this contract be
      accomplished by a consulting firm, a railway company, or governmental agency, firm,
      person, or corporation, under a subcontract with the REQUESTING PARTY at
      PROJECT expense, such subcontracted arrangements will be covered by formal written
      agreement between the REQUESTING PARTY and that party.

      This formal written agreement shall: include a reference to the specific prime contract to
      which it pertains; include provisions which clearly set forth the maximum reimbursable
      and the basis of payment; provide for the maintenance of accounting records in
      accordance with generally accepted accounting principles, which clearly document the
      actual cost of the services provided; provide that costs eligible for reimbursement shall be
      in accordance with clearly defined cost criteria such as 49 CFR Part 18, 48 CFR Part 31,
      23 CFR Part 140, 0MB Circular A-87, etc. as applicable; provide for access to the
      department or its representatives to inspect and audit all data and records related to the
      agreement for a minimum of three years after the department's final payment to the local
      unit.

      All such agreements will be submitted for approval by the DEPARTMENT and, if
      applicable, by the FHWA prior to execution thereof, except for agreements for amounts
      less than $100,000 for preliminary engineering and testing services executed under and in
      accordance with the provisions of the "Small Purchase Procedures" FAPG (23 CFR 172),
      which do not require prior approval of the DEPARTMENT or the FHWA.

      Any such approval by the DEPARTMENT shall in no way be construed as a warranty of
      the subcontractor's qualifications, financial integrity, or ability to perform the work being
      subcontracted.

G.    The REQUESTING PARTY, at no cost to the PROJECT or the DEPARTMENT, shall
      make such arrangements with railway companies, utilities, etc., as may be necessary for
      the performance of work required for the PROJECT but for which Federal or other
      reimbursement will not be requested.

H.    The REQUESTING PARTY, at no cost to the PROJECT, or the DEPARTMENT, shall
      secure, as necessary, all agreements and approvals of the PROJECT with railway
      companies, the Railroad Safety & Tariffs Division of the DEPARTMENT and other
      concerned governmental agencies other than the FHWA, and will forward same to the
      DEPARTMENT for such reviews and approvals as may be required.

I.    No PROJECT work for which reimbursement will be requested by the REQUESTING
      PARTY is to be subcontracted or performed until the DEPARTMENT gives written
      notification that such work may commence.




03-15-93                                        5
J.    The REQUESTING PARTY shall be responsible for the payment of all costs and
      expenses incurred in the performance of the work it agrees to unde1take and perform.

K.    The REQUESTING PARTY shall pay directly to the party performing the work all
      billings for the services performed on the PROJECT which are authorized by or through
      the REQUESTING PARTY.

L.    The REQUESTING PARTY shall submit to the DEPARTMENT all paid billings for
      which reimbursement is desired in accordance with DEPARTMENT procedures.

M.    All work by a consulting firm will be performed in compliance with the applicable
      provisions of 1980 PA 299, Subsection 2001, MCL 339.2001; MSA 18.425(2001), as
      well as in accordance with the provisions of all previously cited Directives of the FHWA.

N.    The project engineer shall be subject to such administrative guidance as may be deemed
      necessary to ensure compliance with program requirement and, in those instances where
      a consultant firm is retained to provide engineering and inspection services, the personnel
      performing those services shall be subject to the same conditions.

0.    The DEPARTMENT, in administering the PROJECT in accordance with applicable
      Federal and State requirements and regulations, neither assumes nor becomes liable for
      any obligations undertaken or arising between the REQUESTING PARTY and any other
      party with respect to the PROJECT.

P.    In the event it is determined by the DEPARTMENT that there will be either insufficient
      Federal funds or insufficient time to properly administer such funds for the entire
      PROJECT or portions thereof, the DEPARTMENT, prior to advertising or issuing
      authorization for work performance, may cancel the PROJECT, or any portion thereof,
      and upon written notice to the parties this contract shall be void and of no effect with
      respect to that cancelled portion of the PROJECT. Any PROJECT deposits previously
      made by the parties on the cancelled portions of the PROJECT will be promptly
      refunded.

Q.    Those projects funded with Federal monies will be subject to inspection at all times by
      the DEPARTMENT and the FHWA.




03-15-93                                       6
                                       SECTION III

                             ACCOUNTING AND BILLING


A.    Procedures for billing for work undertaken by the REQUESTING PARTY:

      1.    The REQUESTING PARTY shall establish and maintain accurate records, in
            accordance with generally accepted accounting principles, of all expenses
            incurred for which payment is sought or made under this contract, said records to
            be hereinafter referred to as the "RECORDS". Separate accounts shall be
            established and maintained for all costs incurred under this contract.

            The REQUESTING PARTY shall maintain the RECORDS for at least three (3)
            years from the date of final payment of Federal Aid made by the DEPARTMENT
            under this contract. In the event of a dispute with regard to the allowable
            expenses or any other issue under this contract, the REQUESTING PARTY shall
            thereafter continue to maintain the RECORDS at least until that dispute has been
            finally decided and the time for all available challenges or appeals of that decision
            has expired.

            The DEPARTMENT, or its representative, may _inspect, copy, or audit the
            RECORDS at any reasonable time after giving reasonable notice.

            If any part of the work is subcontracted, the REQUESTING PARTY shall assure
            compliance with the above for all subcontracted work.

            In the event that an audit performed by or on behalf of the DEPARTMENT
            indicates an adjustment to the costs reported under this contract, or questions the
            allowability of an item of expense, the DEPARTMENT shall promptly submit to
            the REQUESTING PARTY, a Notice of Audit Results and a copy of the audit
            report which may supplement or modify any tentative findings verbally
            communicated to the REQUESTING PARTY at the completion ofan audit.

            Within sixty (60) days after the date of the Notice of Audit Results, the
            REQUESTING PARTY shall: (a) respond in writing to the responsible Bureau or
            the DEPARTMENT indicating whether or not it concurs with the audit report, (b)
            clearly explain the nature and basis for any disagreement as to a disallowed item
            of expense and, (c) submit to the DEPARTMENT a written explanation as to any
            questioned or no opinion expressed item of expense, hereinafter referred to as the
            "RESPONSE". The RESPONSE shall be clearly stated and provide any
            supporting documentation necessary to resolve any disagreement or questioned or
            no opinion expressed item of expense. Where the documentation is voluminous,
            the REQUESTING PARTY may supply appropriate excerpts and make alternate


03-15-93                                      7
           arrangements to conveniently and reasonably make that documentation available
           for review by the DEPARTMENT. The RESPONSE shall refer to and apply the
           language of the contract. The REQUESTING PARTY agrees that failure to
           submit a RESPONSE within the sixty (60) day period constitutes agreement with
           any disallowance of an item of expense and authorizes the DEPARTMENT to
           finally disallow any items of questioned or no opinion expressed cost.

           The DEPARTMENT shall make its decision with regard to any Notice of Audit
           Results and RESPONSE within one hundred twenty (120) days after the date of
           the Notice of Audit Results. If the DEPARTMENT determines that an
           overpayment has been made to the REQUESTING PARTY, the REQUESTING
           PARTY shall repay that amount to the DEPARTMENT or reach agreement with
           the DEPARTMENT on a repayment schedule within thirty (30) days after the
           date ofan invoice from the DEPARTMENT. If the REQUESTING PARTY fails
           to repay the overpayment or reach agreement with the DEPARTMENT on a
           repayment schedule within the thirty (30) day period, the REQUESTING PARTY
           agrees that the DEPARTMENT shall deduct all or a portion of the overpayment
           from any funds then or thereafter payable by the DEPARTMENT to the
           REQUESTING PARTY under this contract or any other agreement, or payable to
           the REQUESTING PARTY under the terms of 1951 PA 51, as applicable.
           Interest will be assessed on any partial payments or repayment schedules based on
           the unpaid balance at the end of each month until the balance is paid in full. The
           assessment of interest will begin thirty (30) days from the date of the invoice.
           The rate of interest will be based on the Michigan Department of Treasury
           common cash funds interest earnings. The rate of interest will be reviewed
           annually by the DEPARTMENT and adjusted as necessary based on the Michigan
           Department of Treasury common cash funds interest earnings.                    The
           REQUESTING PARTY expressly consents to this withholding or offsetting of
           funds under those circumstances, reserving the right to file a lawsuit in the Court
           of Claims to contest the DEPARTMENT'S decision only as to any item of
           expense the disallowance of which was disputed by the REQUESTING PARTY
           in a timely filed RESPONSE.

           The REQUESTING PARTY shall comply with the Single Audit Act of 1984,
           P.L. 98-502.

           The REQUESTING PARTY shall adhere to the following requirements
           associated with audits of accounts and records:

           a. Agencies expending a total of $500,000 or more in federal funds, from one or
           more funding sources in its fiscal year, shall comply with the requirements of the
           federal Office of Management and Budget (0MB) Circular A-133, as revised or
           amended.



03-15-93                                    8
           The agency shall submit two copies of:

                  The Reporting Package
                  The Data Collection F01m
                  The management letter to the agency, if one issued by the audit firm

           The 0MB Circular A-133 audit must be submitted to the address below m
           accordance with the time frame established in the circular, as revised or amended.

           b. Agencies expending less than $500,000 in federal funds must submit a letter to
           the Department advising that a circular audit was not required. The letter shall
           indicate the applicable fiscal year, the amount of federal funds spent, the name( s)
           of the Department federal programs, and the CFDA grant number(s). This
           infonnation must also be submitted to the address below.

           c. Address:    Michigan Department of Transportation
                          Bureau of Highways Technical Services
                          425 W. Ottawa, P.O. Box 30050
                          Lansing, MI 48909

           d. Agencies must also comply with applicable State laws and regulations relative
           to audit requirements.

           e. Agencies shall not charge audit costs to Department's federal programs which
           are not in accordance with the 0MB Circular A-133 requirements.

           f. All agencies are subject to the federally required monitoring activities, which
           may include limited scope reviews and other on-site monitoring.

      2.   Agreed Unit Prices Work - All billings for work undertaken by the
           REQUESTING PARTY on an agreed unit price basis will be submitted in
           accordance with the Michigan Department of Transportation Standard
           Specifications for Construction and pertinent FAPG Directives and Guidelines of
           theFHWA.

      3.   Force Account Work and Subcontracted Work - All billings submitted to the
           DEPARTMENT for Federal reimbursement for items of work performed on a
           force account basis or by any subcontract with a consulting firm, railway
           company, governmental agency or other party, under the terms of this contract,
           shall be prepared in accordance with the provisions of the pertinent FHPM
           Directives and the procedures of the DEPARTMENT. Progress billings may be
           submitted monthly during the time work is being performed provided, however,
           that no bill of a lesser amount than $1,000.00 shall be submitted unless it is a final


03-15-93                                     9
            or end of fiscal year billing. All billings shall be labeled either "Progress Bill
            Number _ _ _", or "Final Billing".

      4.    Final billing under this contract shall be submitted in a timely manner but not later
            than six months after completion of the work. Billings for work submitted later
            than six months after completion of the work will not be paid.

      5.    Upon receipt of billings for reimbursement for work undertaken by the
            REQUESTING PARTY on projects funded with Federal monies, the
            DEPARTMENT will act as billing agent for the REQUESTING PARTY,
            consolidating said billings with those for its own force account work and
            presenting these consolidated billings to the FHWA for payment. Upon receipt of
            reimbursement from the FHWA, the DEPARTMENT will promptly forward to
            the REQUESTING PARTY its share of said reimbursement.

      6.    Upon receipt of billings for reimbursement for work undertaken by the
            REQUESTING PARTY on projects funded with non-Federal monies, the
            DEPARTMENT will promptly forward to the REQUESTING PARTY
            reimbursement of eligible costs.

B.    Payment of Contracted and DEPARTMENT Costs:

      1.    As work on the PROJECT commences, the initial payments for contracted work
            and/or costs incurred by the DEPARTMENT will be made from the working
            capital deposit. Receipt of progress payments of Federal funds, and where
            applicable, State Critical Bridge funds, will be used to replenish the working
            capital deposit. The REQUESTING PARTY shall make prompt payments of its
            share of the contracted and/or DEPARTMENT incurred portion of the PROJECT
            COST upon receipt of progress billings from the DEPARTMENT. Progress
            billings will be based upon the REQUESTING PARTY'S share of the actual costs
            incurred as work on the PROJECT progresses and will be submitted, as required,
            until it is determined by the DEPARTMENT that there is sufficient available
            working capital to meet the remaining anticipated PROJECT COSTS. All
            progress payments will be made within thirty (30) days of receipt of billings. No
            monthly billing of a lesser amount than $1,000.00 will be made unless it is a final
            or end of fiscal year billing. Should the DEPARTMENT determine that the
            available working capital exceeds the remaining anticipated PROJECT COSTS,
            the DEPARTMENT may reimburse the REQUESTING PARTY such excess.
            Upon completion of the PROJECT, payment of all PROJECT COSTS, receipt of
            all applicable monies from the FHWA, and completion of necessary audits, the
            REQUESTING PARTY will be reimbursed the balance of its deposit.




03-15-93                                      10
      2.     In the event that the bid, plus contingencies, for the contracted, and/or the
             DEPARTMENT incurred portion of the PROJECT work exceeds the estimated
             cost therefor as established by this contract, the REQUESTING PARTY may be
             advised and billed for the additional amount of its share.

C.    General Conditions:

      1.     The DEPARTMENT, in accordance with its procedures in existence and covering
             the time period involved, shall make payment for interest earned on the balance of
             working capital deposits for all projects on account with the DEPARTMENT.
             The REQUESTING PARTY in accordance with DEPARTMENT procedures in
             existence and covering the time period involved, shall make payment for interest
             owed on any deficit balance of working capital deposits for all projects on
             account with the DEPARTMENT. This payment or billing is processed on an
             annual basis corresponding to the State of Michigan fiscal year. Upon receipt of
             billing for interest incurred, the REQUESTING PARTY promises and shall
             promptly pay the DEPARTMENT said amount.

      2.     Pursuant to the authority granted by law, the REQUESTING PARTY hereby
             irrevocably pledges a sufficient amount of funds received by it from the Michigan
             Transportation Fund to meet its obligations as specified in PART I and PART II.
             If the REQUESTING PARTY shall fail to make any of its required payments
             when due, as specified herein, the DEPARTMENT shall immediately notify the
             REQUESTING PARTY and the State Treasurer of the State of Michigan or such
             other state officer or agency having charge and control over disbursement of the
             Michigan Transportation Fund, pursuant to law, of the fact of such default and the
             amount thereof, and, if such default is not cured by payment within ten (IO) days,
             said State Treasurer or other state officer or agency is then authorized and
             directed to withhold from the first of such monies thereafter allocated by law to
             the REQUESTING PARTY from, the Michigan Transportation Fund sufficient
             monies to remove the default, and to credit the REQUESTING PARTY with
             payment thereof, and to notify the REQUESTING PARTY in writing of such fact.

      3.     Upon completion of all work under this contract and final audit by the
             DEPARTMENT or the FHWA, the REQUESTING PARTY promises to
             promptly repay the DEPARTMENT for any disallowed items of costs previously
             disbursed by the DEPARTMENT. The REQUESTING PARTY pledges its
             future receipts from the Michigan Transportation Fund for repayment of all
             disallowed items and, upon failure to make repayment for any disallowed items
             within ninety (90) days of demand made by the DEPARTMENT, the
             DEPARTMENT is hereby authorized to withhold an equal amount from the
             REQUESTING PARTY'S share of any future distribution of Michigan
             Transportation Funds in settlement of said claim.



03-15-93                                     11
      4.   The DEPARTMENT shall maintain and keep accurate records and accounts
           relative to the cost of the PROJECT and upon completion of the PROJECT,
           payment of all items of PROJECT COST, receipt of all Federal Aid, if any, and
           completion of final audit by the DEPARTMENT and if applicable, by the FHWA,
           shall make final accounting to the REQUESTING PARTY. The final PROJECT
           accounting will not include interest earned or charged on working capital
           deposited for the PROJECT which will be accounted for separately at the close of
           the State of Michigan fiscal year and as set forth in Section C(l ).

      5.   Tbe costs of engineering and other services performed on those projects involving
           specific program funds and one hundred percent ( 100%) local funds will be
           apportioned to the respective portions of that project in the same ratio as the
           actual direct construction costs unless otherwise specified in PART I.




03-15-93                                   12
                                        SECTION IV

                             MAINTENANCE AND OPERATION


A.    Upon completion of constrnction of each part of the PROJECT, at no cost to the
      DEPARTMENT or the PROJECT, each of the parties hereto, within their respective
      jurisdictions, will make the following provisions for the maintenance and operation of the
      completed PROJECT:

       I.    All Projects:

             Properly maintain and operate each part of the project, making ample provisions
             each year for the performance of such maintenance work as may be required,
             except as qualified in paragraph 2b of this section.

      2.     Projects Financed in Part with Federal Monies:

             a.      Sign and mark each part of the PROJECT, in accordance with the current
                     Michigan Manual of Uniform Traffic control Devices, and will not install,
                     or permit to be installed, any signs, signals or markings not in
                     conformance with the standards approved by the FHWA, pursuant to 23
                     USC 109(d).

             b.      Remove, prior to completion of the PROJECT, all encroachments from the
                     roadway right-of-way within the limits of each part of the PROJECT.

                    With respect to new or existing utility installations within the right-of-way
                    of Federal Aid projects and pursuant to FAPG (23 CFR 645B):
                    Occupancy of non-limited access right-of-way may be allowed based on
                    consideration for traffic safety and necessary preservation of roadside
                    space and aesthetic quality. Longitudinal occupancy of non-limited access
                    right-of-way by private lines will require a finding of significant economic
                    hardship, the unavailability of practicable alternatives or other extenuating
                    circumstances.

             C.      Cause to be enacted, maintained and enforced, ordinances and regulations
                     for proper traffic operations in accordance with the plans of the
                     PROJECT.

             d.     Make no changes to ordinances or regulations enacted, or traffic controls
                    installed in conjunction with the PROJECT work without prior review by
                    the DEPARTMENT and approval of the FHWA, if required.



03-15-93                                      13
B.    On projects for the removal of roadside obstacles, the parties, upon completion of
      construction of each part of the PROJECT, at no cost to the PROJECT or the
      DEPARTMENT, will, within their respective jurisdictions, take such action as is
      necessary to assure that the roadway right-of-way, cleared as the PROJECT, will be
      maintained free of such obstacles.

C.    On projects for the construction of bikeways, the parties will enact no ordinances or
      regulations prohibiting the use of bicycles on the facility hereinbefore described as the
      PROJECT, and will amend any existing restrictive ordinances in this regard so as to
      allow use of this facility by bicycles. No motorized vehicles shall be permitted on such
      bikeways or walkways constructed as the PROJECT except those for maintenance
      purposes.

D.    Failure of the parties hereto to fulfill their respective responsibilities as outlined herein
      may disqualify that party from future Federal-aid participation in projects on roads or
      streets for which it has maintenance responsibility. Federal Aid may be withheld until
      such time as deficiencies in regulations have been corrected, and the improvements
      constructed as the PROJECT are brought to a satisfactory condition of maintenance.




03-15-93                                       14
                                        SECTIONV

                   SPECIAL PROGRAM AND PROJECT CONDITIONS

A.    Those projects for which the REQUESTING PARTY has been reimbursed with Federal
      monies for the acquisition of right-of-way must be under construction by the close of the
      twentieth (20th) fiscal year following the fiscal year in which the FHWA and the
      DEPARTMENT projects agreement covering that work is executed, or the
      REQUESTING PARTY may be required to repay to the DEPARTMENT, for forwarding
      to the FHW A, all monies distributed as the FHWA'S contribution to that right-of-way.

B.    Those projects for which the REQUESTING PARTY has been reimbursed with Federal
      monies for the performance of preliminaiy engineering must be under construction by the
      close of the tenth (I 0th) fiscal year following the fiscal year in which the FHWA and the
      DEPARTMENT projects agreement covering that work is executed, or the
      REQUESTING PARTY may be required to repay to the DEPARTMENT, for forwarding
      to the FHWA, all monies distributed as the FHWA'S contribution to that preliminary
      engmeermg.

C.    On those projects funded with Federal monies, the REQUESTING PARTY, at no cost to
      the PROJECT or the DEPARTMENT, will provide such accident information as is
      available and such other information as may be required under the program in order to
      make the proper assessment of the safety benefits derived from the work performed as the
      PROJECT. The REQUESTING PARTY will cooperate with the DEPARTMENT in the
      development of reports and such analysis as may be required and will, when requested by
      the DEPARTMENT, forward to the DEPARTMENT, in such form as is necessary, the
      required information.

D.    In connection with the performance of PROJECT work under this contract the parties
      hereto (hereinafter in Appendix "A" referred to as the "contractor") agree to comply with
      the State of Michigan provisions for "Prohibition of Discrimination in State Contracts",
      as set forth in Appendix A, attached hereto and made a part hereof. The parties further
      covenant that they will comply with the Civil Rights Acts of 1964, being P.L. 88-352, 78
      Stat. 241, as amended, being Title 42 U.S.C. Sections 1971, 1975a-1975d, and 2000a-
      2000h-6 and the Regulations of the United States Department of Transportation (49
      C.F.R. Part 21) issued pursuant to said Act, including Appendix "B", attached hereto and
      made a part hereof, and will require similar covenants on the part of any contractor or
      subcontractor employed in the performance of this contract.

E.    The parties will carry out the applicable requirements of the DEPARTMENT'S
      Disadvantaged Business Enterprise (DBE) program and 49 CFR, Part 26, including, but
      not limited to, those requirements set forth in Appendix C.




03-15-93                                      15
                                                       APPENDiX A
                                    PROHIBITION OF DISCR!Mll'iA TION IN STATE CONTRACTS

     In connection with the performance of work under this contract; the contractor agrees as follows:

     1.      In accordance with Act No . .t53. Public Acts ofl 976, the contractor hereby agrees not to discriminate against an employee
             or applicant for employment with respect tO hire, tenure, terms, conditions, or privileges of employment, or as a matter
             directly or indirectly related to employment, because of race, color, religion, national origin, age. sex. height. weight, or
             marital status. Further, in accordance with Act No. 220, Public Acts of 1976 as amended by Act No. -178, Public Acts of
             1980 the contractor hereby agrees not to discriminate against an employee or applicant for employment with respect to
             hire, tenure, terms, conditions, or privileges of employment, or a matter directly or indirectly related to employment,
             because of a disability that is unrelated to the individual's ability to perform the duties of a particular job or position.
             A breach of the above covenants shall be regarded as a material breach of this contract.

 2.         The contractor hereby agrees that any and all subcontracts to this contract, whereby a portion of the work set forth in
            this contract is to be performed, shall contain a covenant the same as hereinabove set forth in Section l of this Appendix.

 3.         The contractor will take affirmative action to insure that applicants for employment and emp.loyees are treated without
            regard to their race, color, religion, national origin, age, sex, height, weight, marital status or a disabilit.Y that is unrelated
            to the individual's ability to perform the duties of a particular job or position. Such action shall include, but not be limited
            to, the following: employment, upgrading, demotion or transfer, recruitment advertising; layoff or termination; rates of
            pay or other forms of compensation; and selection for training, including apprenticeship.

 4.         The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that
            all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin,
            age, sex, height, weight, marital status or disability that is unrelated to the individual's ability to perform the duties of a
            particular job or position.

5.          The contractor or his collective bargaining representative will send to each labor union or representative of workers with
            which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union
            or workers' representative of the contractor's commitments under this appendix.

6.          The contractor will comply with all relevant published rules, regulations, directives, and orders of the Michigan Civil
            Rights Commission which may be in effect prior to the taking of bids for any individual state project.

7.          The contractor will furnish and file compliance reports within such time and upon such forms as provided by the Michigan
            Civil Rights Commission, said forms may also elicit information as to the practices, policies, program, and employment
            statistics of each subcontractor as well as the contractor himself, and said contractor will permit access to bis books,
            records, and accounts by the Michigan Civil Rights Commission and/or its agent, for purposes ofinvestigation to ascertain
            compliance with this contract and relevant with rules, regulations, and orders of the Michigan Civil Rights Commission.


8.         In the event that the Civil Rights Commission finds, after a hearing held pursuant to its rules, that a contractor bas not
           complied with the contractual obligations under this agreement, the Civil Rights Commission may, as part of its order
           based upon such findings, certify said findings to the Administrative Board of the State ofMichigan,which Administrative
           Board may order the cancellation of the contract found to have been violated and/or declare the contractor ineligible for
           future contracts with the state and its political and civil subdivisions, departments, and officers, and including the
           governing boards of institutions of higher education, until the contractor complies with said order of the Civil Rights
           Commission. Notice of said declaration of future ineligibility may be given to any or all of the persons with whom the
           contractor is declared ineligible to contract as a contracting party in future contracts. In any case before the Civil Rights
           Commission in which cancellation of an existing contract is a possibility, the contracting agency shall be notified of such
           possible remedy and shall be given the option by the Civil Rights Commission to participate in such proceedings.

9.         The contractor will include, or incorporate by reference, the provisions of the foregoing paragraphs (I) through (8) in
           every subcontract or purchase order unless exempted by the rules, regulations or orders of the Michigan Civil Rights
           Commission, and will provide in every subcontract or purchase order that said provisions will be binding upon each
           subcontractor or seller.                                                                                            March. 1998
                                                                                                       (Rev. 03/92)

                                                   APPENDIX B
                                                                                                                       s
 During the performance of this contract, the contractor, for itself, its assignees, and successors in interest        C
 (hereinafter referred to as the "contractor") agrees as follows:

 l.      Compliance with Regulations: The contractor shall comply with the Regulations relative to
         nondiscrimination in Federally assisted programs of the Department of Transportation, Title -19, Code
         of Federal Regulations, Part 27, as they may be amended from time to time (hereinafter referred to as
         the Regulations), which are herein incorporated by reference and made a part of this contract.
                                                                                                                       0
2.       Nondiscrimination: The contractor, with regard to the work performed by it during the contract, shall
         not discriminate on the grounds of race, color, or natural origin in the selection and retention of           Cl
         subcontractors, including procurements of materials and leases of equipment. The contractor shall not
         participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the              (
         Regulations, including employment practices when the contract covers a program set forth in Appendix
                                                                                                                       II
         B of the Regulations.
                                                                                                                       ,n
3.       Solicitations for Subcontracts. Including Procurements of Materials and Equipment: In all solicitations
         either by competitive bidding or negotiation made by the contractor for work to be performed under a
         subcontract, including procurements of materials or leases of equipment, each potential subcontractor
         or supplier shall.be notified by the contractoi of the contiactor's obligations under this contract and the
         Regulations relative to nondiscrimination on the grounds of race, color, or national origin.

4.      Information and Reports: The contractor shall provide all information and reports required by the
        Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts,
        other sources of information, and its facilities as may be determined by the Michigan Department of
        Transportation or the Federal Highway Administration to be pertinent to ascertain compliance with such
        Regulations or directives. Where any information required of a contractor is in the exclusive possession
        of another who fails or refuses to furnish this information, the contractor shall so certify to the Michigan
        Department of Transportation, or the Federal Highway Administration as appropriate, and shall set
        forth what efforts it has made to obtain the information.

5.      Sanctions for Noncompliance:          In the event of the contractor's noncompliance with the                  I·
        nondiscrimination provisions of this contract, the Michigan Department of Transportation shall impose
        such contract sanctions as it or the Federal Highway Administration may determine to be appropriate,           e:
        including, but not limited to:                                                                                  f
        (a)      Withholding of payments to the contractor under the contract until the contractor complies,
                 and/or
                                                                                                                       :t
                                                                                                                       H
        (b)      Cancellation, termination, or suspension of the contract, in Whole or in part:                         s
                                                                                                                       ti
6.      Incorporation of Provisions: The contractor shall include the provisions of paragraphs 1 through 6 of
                                                                                                                       Ji
        every subcontract, including procurements of materials and leases of equipment, unless exempt by the
        Regulations, or directives issued pursuant thereto. The contractor shall take such action with respect
        to any subcontract or procurement as the Michigan Department of Transportation or the Federal
        Highway Administration may direct as a means of enforcing such provisions including sanctions for non-
        compliance; provided, however, that in the event a contractor becomes involved in, or is threatened with,
        litigation with a subcont.ractor or supplier as a result of such direction, the contractor may request the
        Michigan Department of Transportation to enter into such litigation to protect the interests of the State,
        and, in addition, the contractor may request the United States to enter into such litigation to protect the
        interests of the United States.
        Commission Meeting Date: September 25, 2007




Date:       September 19, 2007
To:         Honorable Mayor & City Commission
From:       Planning & Economic Development Department

RE:         Nutritional Services for Older Americans, Inc/City
            of Muskegon Agreement


SUMMARY OF REQUEST: The City of Muskegon has had an
Agreement with Nutritional Services for Older Americans, Inc. (NSOA).
They are requesting that this Agreement be renewed for another year
(through September 30, 2008). NSOA will pay the City $200.00 a month
for expenses associated with the McGraft Park Community Building,
where they operate as a location for senior meals and support services
for seniors in the area. The City will provide financial support in the
amount of $8,316.00 for staff time for recreational programs provided at
McGraft Park and their other locations.
FINANCIAL IMPACT: The City will receive $200.00 a month in rent from
NSOA and will provide $8,316.00 in staff time and recreational
programming.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Agreement between
NSOA and the City and authorize the Mayor to sign the Agreement.



COMMITTEE RECOMMENDATION:
                                                                                          RECEIVED
 ·~•~Nutritional Services                                                         • 1 '



                                                                                          SEP 1 8 2007.
    '                      MEALS ON WHEELS

                    Sharon TerH aar, Executive Director
                                                                                     CITY OF MUSKEGON
                                                                                     LEISURE SERVICES
               September 13, 2007
                                                                                                    RECEIVED
               Leisure Services                                                                      f-., I ) 1°~7
               City of Muskegon
               933 Terrace                                                                        ( , fl' Or MUSKEGON
                                                                                                PLANNING DEPARTMENT
               Muskegon, MI 49440

               Thank you for your collaboration in the past to work with us and allow us to provide
               programs for older adults in the City of Muskegon. Statistics show that seniors want to
               remain in their communities where they worked and raised their families and not retire
               somewhere else. It is important that we continue to provide an 'elder friendly community'
               within the City of Muskegon and continue to expand that philosophy as the aging
               population surges.

               This letter is the formal request for the two hours of staffing time for recreation and
               activities provided in the City of Muskegon for the fiscal year 2008 (October 1, 2007-
               September 30, 2009) as per our agreement. The amount for this period is$ 8316.00.

              Our programs for seniors in the City of Muskegon continue to be strong. Our focus
              remains at the McGraft Park Community Building for the City of Muskegon but we
              operate programs at other city locations as well. Seniors in the community are looking to
              City Centre Programs @ McGraft Park for their source for health and wellness. Our
              emphasis is on Nutrition, Enrichment and Wellness. We feel that offering a variety of
              programs will keep them active and healthy and involved in the community they live in.

              While our focus is at McGraft Park, we are offering programs and meals at:
              Jefferson Towers, Nelson Place, M-Tec and Bayview Towers. At the locations we also do
              recreation programs and health screenings, nutrition education and information and
              referral. We worked to provide assistance and enrollment for seniors in the Medicare
              Prescription Plan and secured a federal grant to help enroll over 3400 seniors in plans.
              And we continue to provide home delivered meals to the seniors throughout the City of
              Muskegon using the centers as satellite operations to coordinate the service and the drivers.

              As I said, McGraft Park- City Centre@ the Park as we call it is the focal center for senior
              activities. I am attaching a listing of the variety of programs we offer and some statistics
              on which it is we are reaching. Your support of our program keeps it going in the City of
              Muskegon.

              We are only able to provide this service in the City of Muskegon with your financial
              support. Without it, we could not provide the health and wellness programs that are
              keeping seniors more active. (See attached story of a client).


                                                Muskegon • Oceana • Ottawa Counties '
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1540 W. Sherman Blvd.• Muskegon, Ml 49441 • Phone (231) 755-0434 or Toll Free 1-800-442-6769 • Fax (231) 755-7805 • Email nsoamow@gte.net
Our staffing costs and operational costs continue to rise as does yours. We have not asked
for any increases in the funding for 3 years now and will not again this 4 th year. We just
ask you to continue to help us and we will work to secure additional grants to help with the
costs. We try to keep the costs for programs as low as possible to ensure the low income
have access to services they need. Based on the $8316, it cost the city only $14 per
unduplicated person that went to a center. When adding in the homebound served, the cost
is only $5.20 per senior.

The lease for McGraft Park is currently at $200 per month. We appreciate your flexibility
in the hours we use the facility. I know this is a community center and a source ofrental
revenue and that comes first. So allowing us to use it occasionally in the evenings or later
afternoon when available is very helpful to us.



Should you have any questions, please contact me. And again, thank you for your past
support and I look forward to working with you in the future.


Sincerely,



Sharon TerHaar
Director
City of Muskegon Senior Statistics for the fiscal year
October 1, 2006-September 30, 2007**

Number of Registered Seniors at our City Locations:
--- Seniors are not asked to register with us for attending occasionally, so these numbers
are 'regular attendees' ---

Bayview Towers - 46
M-Tec-27
McGraft Park - 173
Muskegon Jefferson Towers - 56
Nelson Place - 55
City Centre @ McGraft Park - 23 7


Of the above who attend regularly and participate in our programs:
13% are minority participants
68% live alone
29% are at a high nutrition risk
36% report being at the poverty level


MEAL SERVICES
Number of Meals Served to Senior's at a center in the City of Muskegon
25,955


Number of Meals Served to the Homebound Seniors due to one of the above locations
who coordinate the meal service: 112,383



Number of Homebound Seniors receiving meals in the City of Muskegon: 1006


**   Last few weeks ofSeptember are estimated
PROGRAMS CONDUCTED AT McGRAFT PARK
And other City of Muskegon locations

NUTRITION PROGRAMS - Continue to be held at least monthly at all locations
with special programs occasionally held mostly at McGraft Park
   • Osteoporosis
   • Diabetic Eating - Counting Carbs
   • Lowfat Cooking
   • Eating Healthy in Restaurants
   • 12 week nutrition class
   • Hypertension
   • Healthy Heart
   • Benefits of Calcium - 3 a day!
   • Guilt Free Fast Foods
   • Special Diets and Eating Choices
   • Good Nutrition Choices
   • Eat to beat the Flu
   • Lower your Cholesterol
   • Taking Vitamins & Supplements
   • Getting more Fruits and Vegetables into your diet

ENRICHMENT PROGRAMS
   •   Coffee Hour and Social Hour
   •   Cards - Cribbage, Spades, Pinochle, Euchre
   •   Bingo
   •   Scrabble
   •   Social Parties: Halloween, St Patrick's Day, Thanksgiving, Christmas, Mothers
       and Fathers Day, Grandparents Day, Valentines Day, Monthly Birthday Parties
   •   Picnics - visited Heritage Landing, Bronson, Margaret Elliot Drake Park, and
   •   Trivia Games
   •   Travel Opportunities & Tours
   •   Computer Classes - Intro to Computers, Googling, Web Based Email, Intro to
       Windows, Internet Genealogy, Intro to Word, Intro to Excel, On-line Shopping,
       Virus, spasm and Cookies, Email Basics, Internet Games
  •    Yard Sale, Antique Road Show
  •    Concert nights and Picnic
  •    Gardening Group
  •    Senior Stitching
  •    Videos
  •    Kitchen Band
  •    Soup Supper and Chinese Auction
  •    Volunteer Day
  •    Visits by Local Candidates and Politicians
  •    Dances and Dance Lessons
  •    Fine Arts Fest
  •    Recorder Music Lessons and Class
  •    Make Ahead Meals
WELLNESS PROGRAMS - Health Related
   •   211 Services
  •    Arthritis Information
  •    Osteoporosis ( RECEIVED A SPECIAL GRANT)
  •    Brown Bag Medicine with Pharmacist
  •    Medicare Prescription Drug Program (RECEIVED A SPECIAL GRANT)
  •    Hypertension Program & Blood Pressures weekly
  •    Diabetes
  •    Pro-Med Services
  •    Brain Aerobics
  •    Fire Safety
  •    Healthy Heart
  •    Alzheimers' Program & Support Network
  •    Stress and Anxiety
  •    Health Education
  •    Blood Pressure
  •    Parkinsons
  •    Lower Your Cholesterol
  •    Talking to Your Doctor
  •    Funeral Services
  •    Foot Care
  •    Trusts and Wills for Health Reasons

WELLNESS PROGRAMS - FITNESS
  •    National Senior Health & Fitness Day Event
  •    Walking Daily
  •    Walking Weekly
  •    Hiking in the Park
  •    Tai Chi- this includes beginning, intermediate, specialized programs for Diabetes
       and Arthritis in which we are the only certified program in Muskegon
 •     Senior Stretching and Weight Training
 •     Shuffleboard
 •     Tennis
 •     Line Dancing - Beginning and Intermediate
 •     Summer Slim Down
 •     Summer Wellness Challenge - exercise & nutrition
 •     Neurobics - Mind Exercise
 •     Golf
 •     Cross Country Skiing
     SENIOR HEALTH & FITNESS DAY IN
     THE BANDSHELL @ MCGRAFT PARK

A lonely, depressed 80 year old woman who is caregiving for her husband is
invited to participate in TaiChi classes. Her friend is worried about her as she is
so stressed and not doing a good job taking care of herself. But the woman
says it will be too hard to learn, she can't leave her frail husband unattended,
she is not steady on her feet...she is too old. She gives 1000 excuses but her
friend insisted and she tried the class.

After one year she is a changed person .. . .. . she has made new friends ... she is
not depressed ... she no longer walks with a hunched over shuffle ... her balance
has improved as has her arthritic hip ... she is a better care giver for her husband
not too AND she now takes line dancing class right after Tai Chi. ... and is
dancing to the Boot Scootin Boogie!

This story is one example of many stories that we could share. We try to target
programs to help with Chronic Disease Management.




                                                                                       6
                               AGREEMENT BETWEEN

        NUTRITIONAL SERVICES FOR OLDER AMERICANS, INC. (NSOA)
                                  AND
                          The City of Muskegon

               FOR THE MCGRAFT PARK COMMUNITY BUILDING
                 and Senior Citizen Programs in the city of Muskegon

The purpose of the agreement is to establish the working arrangements for the occupancy
of the City owned McGraft Park Community Building by the Senior Nutrition Program
operated by'Nutritional Services for Older American, Inc. (NSOA). The specifics of this
agreement shall be as follows:

I. The City of Muskegon agrees to allow use of the McGraft Park Community Building
    to NSOA to operate as a location for senior meals and support services for seniors in
    the area.

2. NSOA will pay to the City $200.00 per month as a fee for expenses of rent and
   utilities including garbage service.

3. A telephone will be provided at the expense ofNSOA.

4. The City will provide a locked office for the program. A locked cupboard for storage
   in the kitchen will also be provided.

5. NSOA will provide all materials for the program meal. NSOA has full and complete
   responsibility for the operation of the program.

6. NSOA agrees to work with City personnel to promote recreational opportunities for
   seniors.

7. NSOA agrees to try to secure grants if available towards facility improvements or for
   special programs within the facility.

8. The building will be available to NSOA from Monday through Friday during business
   hours -typically 9 - 3. Exceptions are voting days and the third Wednesday of the
   month "Shuffleboard Potlucks" during the summer. NSOA may use the building for
   an evening event when approved by the City.

9. The care and maintenance of the facility is the City's responsibility with NSOA
   responsible for routine daily clean-up; which is wiping tables, counters, sinks, and
   spills, and disposing of food and supply waste; leaving kitchen and dining area ready
   for use by any other tenants.
10. NSOA provides liability insurance for its centers. Written evidence is available upon
    request.

11. The City agrees to financial support in the amount of$ 8316.00 for staff time for
    recreational programs provided at McGraft Park and other locations within the city of
    Muskegon for seniors. These locations typically are: Bayview Towers, Nelson
    Place, Jefferson Towers, and M-TEC. These activities are wellness programs
    including exercise and health and a diversity of enrichment programs.

12. Either party with sixty- (60) day notice may terminate this agreement.

The inclusive dates of this agreement are October 1, 2007 through September 30, 2008.



FOR: City of Muskegon                        FOR: Nutritional Services
                                                  Meals on Wheels
       933 Terrace Street                         1540 W. Sherman Blvd.
       Muskegon,MI 49440                          Muskegon, MI 49441




                                             J et E. Hansen 47
                                             Chairperson of the Board

  9- JJl-o z                                    9-13·0'/
Date                                         Date
Date:        September 25, 2007
To:           Honorable Mayor and City Commissioners
From:        DPW
RE:           Service Agreement with Roosevelt Park




SUMMARY OF REQUEST:
Authorize the mayor & Clerk to sign the attached agreement with Roosevelt Park to maintain their fleet.

FINANCIAL IMPACT:
Potential revenue of $5,000 to $15,000



BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
Approve the service agreement with Roosevelt Park and authorize the Mayor & Clerk to sign agreement.
SERVICE AGREEMENT


      Effective October 1, 2007, the City of Muskegon, 933 Terrace Street, Muskegon,
Michigan 49440 ("Muskegon") and the City of Roosevelt Park, 900 Oak Ridge,
Roosevelt Park, Michigan 49441 ("Roosevelt Park") agree as follows:

                                      BACKGROUND

        Roosevelt Park has police and public works vehicles which have specific
performance requirements needing specialized service and maintenance work. Roosevelt
Park is seeking assistance to properly service and maintain its police and public works
vehicles. Muskegon has a facility at its Department of Public Works building located at
1350 East Keating Avenue, Muskegon, Michigan that houses the Muskegon Fleet
Division. The Muskegon Fleet Division maintains a vehicle repair facility which is able
to properly repair and maintain police and public works vehicles. It is the desire of
Muskegon and Roosevelt Park (hereinafter collectively referred to as "Parties") to seek
opportunities for functional consolidation of services to the mutual benefit of the parties.


         I.     TERM. The Parties acknowledge that performance under this contract
will commence immediately upon the full execution of this Agreement and shall continue
in full force and effect through October O1, 2008 unless terminated in accordance with
Paragraphs 5 through 8 of this Agreement.

2.      MUSKEGON'S COMMITMENTS. Muskegon agrees as follows:

               a.     To provide repair and maintenance services during regular business
                      hours from 7:30 a.m. until 3:30 p.m. Monday through Friday;

               b.     To provide a mechanic on call 24 hours a day, 7 days a week. The
                      mechanic can be reached at 231-737-2680; and 231-724-4100
                      during regular hours.

               c.     To use the highest standards for repairs to all police, fire and public
                      works vehicles and will not deviate from these standards even at
                      the request of Roosevelt Park; and

               d..     That Muskegon will give priority to its own vehicles before
                      servicing Roosevelt Park's vehicles, but will make every effort to
                      make timely repairs for Roosevelt Park's vehicles.

3.    ROOSEVELT PARK'S COMMITMENTS Roosevelt Park agrees as follows:
               a.     To pay compensation to Muskegon for the maintenance and repair
                      services of the Muskegon Fleet Division at the rate of $60.00 per
                      hour; calculated on a flat rate basis where possible.

               b.     To pay compensation to Muskegon for the maintenance and repair
                      services of the Muskegon Fleet Division at the rate of $75.00 per
                      hour for all services provided outside of regular business hours of
                      7:30 a.m. until 3:30 p.m. Monday through Friday;

               c.     To pay the actual costs plus 15% of all parts and supplies used in
                      the repair and/or maintenance of police and public works vehicles;

               d.      To pay all invoices with thirty days;

               e.      To pay 1% interest per month on all invoices unpaid after thirty
                       days;and

               f.      If its account with Muskegon reaches a balance of $5,000 more
                      than 30 days past due, all work must be paid for in advance. So
                      long as there is a balance of $5,000 more than 30 days past due,
                      Muskegon may refuse to perform any services pursuant to this
                      Agreement.

               g.     If Roosevelt Park has any concerns with the performance
                      completed by the City of Muskegon, it shall promptly notify the
                      City of Muskegon so that both cities can address such concerns.

         4.       COST REVIEW. Before February 1st of each year, Muskegon shall
review its personnel costs, including mechanics' time, and any costs directly related to the
ability of Muskegon to provide services under this Agreement. If these costs have
increased, Muskegon shall notify Roosevelt Park in writing of the increase in cost and the
justification for the increase in costs under this Agreement. The increase in costs will be
effective March 1st of each year.

       5.      TERMINATION. This Agreement shall remain in effect until terminated
by either party. Muskegon and Roosevelt Park may terminate this Agreement for any
reason, including the convenience of either party, and without penalty. Termination
notice shall be in writing and comply with Paragraph 7 and/or 8 of this Agreement.
Termination shall become effective thirty days from the date of the Termination Notice.

        6.      TERMINATION BY ROOSEVELT PARK. Upon receipt of the
Termination Notice from Roosevelt Park, Muskegon shall have thirty days to invoice
Roosevelt Park for any outstanding balances that have not previously been invoiced.
Roosevelt Park shall be responsible for all costs of services, maintenances and supplies
either invoiced prior to receiving the Termination Notice or performed or purchased by
Muskegon before receipt of the Termination Notice. Muskegon will attempt to return
any parts and supplies ordered for Roosevelt Park's vehicles that it is unable to use on
non-Roosevelt Park's vehicles. If Muskegon is unable to obtain full refunds or partial
refunds, Muskegon will send Roosevelt Park invoices for those non-refundable or
partially refundable parts and supplies. If Roosevelt Park exercises its right to terminate
this Agreement, it shall pay all outstanding invoices within ten days from the date of
termination. If Muskegon has vehicles belonging to Roosevelt Park on its site, the
Termination Notice shall state whether it is authorizing Muskegon to complete any
necessary work on those vehicles or immediately cease all work on those vehicles. If the
Termination Notice states that Muskegon is to cease work on all Roosevelt Park vehicles
on its property, Roosevelt Park shall remove these vehicles within five days from the date
of the Termination Notice. If the Termination Notice requests that Muskegon complete
all work on vehicles on its site, this work shall be completed and payment in accordance
with this Agreement.

       7.       TERMINATION BY MUSKEGON. Upon receipt of the Termination
Notice from Muskegon, Roosevelt Park shall have thirty days to pay for all work,
services, parts and materials provided or ordered pursuant to this Agreement, whether
invoiced or not. Roosevelt Park shall have five days to remove all its vehicles, parts and
materials from Muskegon's property.

       8. NOTICES. Any notice that either party may give or is required to give
under this agreement shall be in writing and, if mailed, be effective three days after being
sent by certified or registered mail, postage prepaid, addressed to the City Clerk at the
other party's address set forth in this agreement or at any other address the other party
provides in writing.

       9.      GENERAL PROVISIONS.

               a.      Entire Agreement. This agreement shall constitute the entire
       agreement, and shall supersede any other agreements, written or oral, that may
       have been made or entered into, by and between the parties with respect to the
       subject matter of this agreement and shall not be modified or amended except in a
       subsequent writing signed by the party against whom enforcement is sought. All
       contemporaneous or prior negotiations and representations have been merged into
       this agreement.

              b.      Binding Effect. This agreement shall be binding upon, and inure
       to the benefit of and be enforceable by, the parties and their respective legal
       representatives, permitted successors and assigns.

               c.     Counterparts. The agreement may be executed in counterparts,
       and each set of duly delivered identical counterparts which includes all signatories
       shall be deemed to be one original document.
                   d.      Non-Waiver. No waiver by any party of any provision of this
            agreement shall constitute a waiver by such party of such provision on any other
            occasion or a waiver by such party of any other provision of this agreement.

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

                    f.       Assignment or Delegation. Except as otherwise specifically set
            forth in this agreement, neither party shall assign all or any portion of its rights
            and obligations contained in this agreement without the express prior written
            approval of the other party, which approval may be withheld in the other party's
            sole discretion.

                    g.     Fax or Electronic Signatures. The parties have agreed that
            electronic or fax copies of the signed agreement shall constitute a valid,
            enforceable agreement. Each party will mail originals to the respective party
            upon their execution of this agreement.


CITY OF MUSKEGON                                          CITY OF ROOSEVELT PARK


                                                          By:     W. J)O...V:~--
                                                                W. David Boehm,
                                                                Its Manager

   \    '
        .                .
                             \(
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                 \')            •.

          Ann Becker,               ·
          Its Clerk


Date:   -~9_-=cl,_'J'__, 2007                             Date:    9/-21            , 2007
            Commission Meeting Date: September 25, 2007

Date:                 September 19, 2007
To:                   Honorable Mayor & City Commission
From:                 Planning & Economic Development & Leisure
                      Services�
RE:                   Michigan Natural Resources Trust Fund Grant
                      Application for Smith-Ryerson Park increase in
                      Match Due to Items that can be done In-house
                      (Force Account Labor/Materials).


SUMMARY OF REQUEST:
The State has requested more information for the City's Michigan Natural Resources Trust
 Fund Grant Application regarding the first phase of proposed upgrades to Smith-Ryerson
Park. The City is allowed to increase their points for the grant by including any in-house
services that can be done to increase the match. The removal of one baseball/softball field,
creation of two educational signs (dune and the creek), pier at the creek, trimming of enough
overgrowth for placement of the pier, and the cost to re-stripe the current parking lot with
appropriate handicap signage will be added as the City in-house (force account
labor/materials) costs.

FINANCIAL IMPACT:
There is no impact for the 2007 budget year.        If the application is approved, it will be
budgeted in the 2008 budget year.

BUDGET ACTION REQUIRED:
The total estimated cost for the in-house (force account labor/materials) is $13,850. This will
be budgeted in the 2008.

STAFF RECOMMENDATION:
To approve the resolution to increase the match by doing additional items in-house (force
account labor/materials), and to have the Mayor and Clerk sign the attached resolution.

COMMITTEE RECOMMENDATION:
None.
                          RESOLUTION NO. 2007-83 (k)
                           MUSKEGON CITY COMMISSION

RESOLUTION APPROVING THE SUBMITTAL OF THE MICHIGAN NATURAL
RESOURCES TRUST FUND GRANT APPLICATION FOR SMITH-RYERSON
PARK UPGRADES AND COMMITTING THE CITY'S IN-HOUSE SERVICES
(FORCE ACCOUNT LABOR/MATERIAL) FOR A TOTAL OF $13,850 TO BE
ADDED TO THE CURRENT MATCH AMOUNT OF $144,458.

WHEREAS, the City is going to perform in-house (force account labor/materials)
services and the costs for the removal of one of the existing baseball/softball fields
($1,000), the construction and installation of two informative signs for the dunes and the
creek ($3,000), the construction and installation of a pier at the creek ($9,000), the
trimming of enough overgrowth for the installation of the pier ($400), and the cost to re-
stripe the current parking lot with the appropriate handicap signage ($450) for the
Michigan Natural Resources Trust Fund Grant application for the Smith-Ryerson Park
upgrades, and

WHEREAS, the addition of a pier and the educational signage for the dunes and creek
are new to the application; and

WHEREAS, a total in-house (force account labor/materials) would be $13,850, and

WHEREAS, the City Commission of the City of Muskegon must approve a resolution
committing to the in-house services (force account labor) to increase the match for the
grant, and

NOW, THEREFORE BE IT RESOLVED by the Muskegon City Commission of the City
of Muskegon, Michigan that after holding the public hearing, the City Commission is
approving the submittal of the additional in-house (force account labor/materials) to the
Michigan Natural Resources Trust Fund Grant application for the Smith-Ryerson Park
upgrades, committing to an additional $13,850 for the grant, and authorizing the Mayor
and Clerk to sign the resolution for the grant.
                th
Adopted this 25 day of September, 2007

Ayes: Warmington, Wierenga, Carter, Gawron, Shepherd, and Spataro

Nays: None

Excused: None
•   I




                                                   Atte~ ''-',; Ji\c.v1 ,)~\!            Jt
                                                          Ann Marie Becker, MMC, City Clerk
                                                                                                 J




        I do hereby certify that the foregoing is a true and original copy of a resolution adopted
        by the City Commission of the City of Muskegon at a regular meeting thereof held on
        September 25, 2007.
*                                                               Smith-Ryerson Park Updated (Proposed)
     Current non ADA compliant restrooms

Irrigation will be placed underground throughout the park site.                                                                                                                            W
                                                                                                                                                                                           +E s
The trail will be constructed in a manner to go with the flow of the creek and will be tied into the rest of the park. In the future, we will be connecting this with the trail system.




                                                      SUMNER AVENUE

                                                                                            Parking Lot

                                                                   Basketball
                                                                    Courts

                                                                                                                                 Parfri1J9 l.01
                                                                                                                                                                                           1unes
                                     Universal Football
                                     & Soccer Field




                                                                                                                                                                                    Sign with info
                                                                                                                                                                                    on dunes




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 0
                Commission Meeting Date: September 24, 2007




Date:         September 17, 2007
To:           Honorable Mayor and City Commissioners

From:         Planning & Economic Development

RE:           Public Hearing - Request for a time extension for the Obsolete
              Property Rehabilitation Exemption Certificate at 790 Terrace



SUMMARY OF REQUEST:

Promised Land Associates, 420 Carmen Street, Spring Lake Ml 49456, was issued an
Obsolete Property Rehabilitation Exemption Certificate (resolution number 2005-54 b,
issued June 14, 2005) for the property located at 790 Terrace Street Muskegon, Ml. The
timeline to complete the rehabilitation was one year, giving them until June 14, 2006 to do
so. However, a number of unforeseen problems occurred during this time, making the
applicant unable to complete the rehabilitation. The applicant is now requesting an
additional two (2) years to rehabilitate the building. The two (2) year extension would give
the applicant until September 24, 2009 to complete the rehabilitation. Total capital
investment for this project was stated to be $1,200,000. The project was to consist of a
restaurant/banquet hall that would also feature live entertainment. This project was to
result in the creation of 40+ new jobs in the City. Because of the new jobs, and the
amount of investment, the applicant was granted a 12 year certificate.

FINANCIAL IMPACT:

If an extension to the Obsolete Property Rehabilitation Exemption Certificate is granted,
the property taxes would be frozen for the duration of the certificate.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

If the City Commission decides to grant an extension for the Obsolete Property
Rehabilitation Exemption Certificate, it is recommended that only one (1) additional year
be granted. That would give the applicant until September 24, 2008 to rehabilitate the
building.

COMMITTEE RECOMMENDATION:
Date: September 11, 2007
To:       Honorable Mayor and City Commissioners

From: Finance Director
RE:       2008 Budget Adoption



SUMMARY OF REQUEST: This is the time set for a public hearing on the City's
proposed budget for the year 2008. The proposed budget has been made available
for public inspection at City Hall, Hackley Public Library and the City's website
(www.shorelinecity.com). After hearing public comments, the City Commission may
take action to adopt the 2008 budget with whatever changes or adjustments it deems
necessary. In any event, City Charter requires the budget be adopted no later than
September 25, 2007.

FINANCIAL IMPACT: The budget sets forth the priorities and overall financial
plan for operations in the year 2008. As proposed, the budget includes no property
tax increase.

BUDGET ACTION REQUIRED: Adoption of the attached budget resolution
provides the legal appropriation authority necessary for City departments to conduct
operations in 2008.

STAFF RECOMMENDATION: After receiving comments, close the public
hearing and approve the proposed 2008 City of Muskegon Budget resolution that is
attached. Also, approval of the 3rd Quarter 2007 Budget Reforecast as shown in the
Budget Book is recommended at this time.

COMMITTEE RECOMMENDATION: The Committee of the Whole will review
the budget at their September 10th work session.




9/18/97
                                                                                 2007-84(a)
                                    CITY OF MUSKEGON
                               RESOLUTION OF APPROPRIATION
                                       2008 BUDGET


        WHEREAS, the City Manager has submitted a proposed Budget for 2008 in accordance
with the City Charter and Michigan Public Act 621 of 1978 known as the "Uniform Budgeting and
Accounting Act"; and,
        WHEREAS, the 2008 proposed Budget has been reviewed by the City Commission
following a public hearing for which due notice was given; NOW, THEREFORE, BE IT RESOLVED
that the Budget for the City of Muskegon for the fiscal year beginning January 1, 2008 is hereby
determined and adopted as follows:

                                       GENERAL FUND
 FUND
ACTIVITY
NUMBER             FUND/ACTIVITY NAME                                        AMOUNT

101-10101           City Commission                                             83,128
101-10102           City Promotions & Public Relations                          10,935
101-10145           City Attorney                                              426,338
101-10172           City Manager                                               218,527
101-10875           Contributions to Outside Agencies                          184,324
101-10891           Contingency and Bad Debt Expense                           400,000
101-20173           Administration                                             130,461
101-20215           City Clerk & Elections                                     333,051
101-20220           Civil Service                                              180,555
101-20228           Affirmative Action                                          77,924
101-30202           Finance Administration                                     431,098
101-30205           Income Tax Administration                                  380,443
101-30209           Assessing Services                                         431,366
101-30805           Arena Administration                                       235,000
101-30248           Information Systems Administration                         358,656
101-30253           City Treasurer                                             418,156
101-30851           Insurance Premiums                                         368,834
101-30906           Debt Retirement                                            264,145
101-30999           Transfers to Other Funds                                   848,046
101-40301           Police                                                   8,412,756
101-50336           Fire                                                     3,471,316
101-50387           Fire Safety Inspections                                  1,011,807
101-60265           City Hall Maintenance                                      267,714
101-60446           Community Event Support                                     31,100
101-60448           Streetlighting                                             634,000
101-60523           Sanitation                                               1,653,479
101-60528           Recycling                                                  168,179
101-60550           Stormwater Management                                       16,991
101-60770           Senior Citizen Transit                                      61,368
101-70276           Cemeteries Maintenance                                     527,196
101-70585           Parking Operations                                           7,269
101-70751           Parks Maintenance                                        1,321,663
101-70357           Graffiti Removal                                             4,644
101-70757           McGraft Park Maintenance                                    55,200
101-70775           General Recreation                                         276,612
101-70863           Farmers' Market and Flea Market                             46,500
101-80387           Environmental Services                                     391,382
101-80400           Planning, Zoning and Economic Development                  505,274
101-90000           Major Capital Improvements                                 134,000
                    Grand Total General Fund Appropriations                $24 779 437
                                OTHER BUDGETED FUNDS

 FUND
ACTIVITY
NUMBER           FUND/ACTIVITY NAME                                    AMOUNT

202,204           Major Streets and State Trunklines                    5,110,997
203               Local Streets                                         2,779,631
264               Criminal Forfeitures                                     63,000
285               Tree Replacement                                          3,800


   BE IT FURTHER RESOLVED that the revenues and other financing sources (including use of
prior year balances) for Fiscal Year 2008 are estimated as follows:


                                     GENERAL FUND

                   FUND/ACTIVITY NAME                                   AMOUNT

                  Taxes                                              $14,977,731
                  Licenses and Permits                                 1,028,000
                  Federal Grants                                          45,718
                  State Grants                                            28,000
                  State Shared Revenue                                 4,487,972
                  Charges for Sales & Services                         2,290,813
                  Interest & Rentals                                     483,900
                  Fines & Fees                                           572,000
                  Other Revenue                                          395,919
                  Other Financing Sources                                395,000
                  Use of Fund Balance                                     74 384


                  Total General Fund Revenue
                  Appropriations                                     $24 779 437


                                OTHER BUDGETED FUNDS

 FUND
ACTIVITY
NUMBER           FUND/ACTIVITY NAME                                    AMOUNT

202,204           Major Streets and State Trunklines                    5,110,997
203               Local Streets                                         2,779,631
264               Criminal Forfeitures                                     63,000
285               Tree Replacement                                          3,800




  BE IT FURTHER RESOLVED that the operating expense projections for the following non-
budget funds are hereby approved:
 FUND
ACTIVITY
 NUMBER             FUND/ACTIVITY NAME                                           AMOUNT

305                  TIFA Debt Service                                            $50,000
394                  Downtown Development Authority Debt                          449,292
290                  Local Finance Development Authority Debt                     283,547
402                  Arena Improvement Fund                                        25,000
403                  Sidewalk Improvement Fund                                    344,285
404                  Public Improvement Fund                                      512,419
482                  State Grants Fund                                            877,000
590                  Sewer                                                      5,711,614
591                  Water                                                      7,256,583
594                  Marina/Launch Ramp                                           284,982
661                  Equipment                                                  2,527,667
642                  Public Service Building                                      561,312
643                  Engineering Services Fund                                    667,069
677                  General Insurance Fund                                     4,716,508


   BE IT FURTHER RESOLVED, that there is hereby appropriated for said fiscal year the several
amounts set forth above which, pursuant to the "Uniform Budget and Accounting Act", define the
City of Muskegon's appropriation centers, and

  BE IT FURTHER RESOLVED, that the City Manager is hereby empowered to transfer
appropriations within appropriation centers, and

   BE IT FURTHER RESOLVED, that there is hereby levied a general tax as herein fixed on each
dollar of taxable valuation for the purposes herein outlined, said levy to be applied on all taxable
real and personal property in the City of Muskegon as set forth in the assessment roll dated May
2007:

                          PURPOSE                                        MILLAGE (MILLS)

                     General Operating                                             8.5000
                     Sanitation Service                                            2.5000
                     Promotion                                                      .0685

                     Total                                                        11.0685

At a regular meeting of the City Commission of the City of Muskegon, on the twenty-fifth Day of
September 2007, the foregoing resolution was moved for adoption by Commissioner
   Spataro                    . Vice Mayor Gawron                       supported the motion.

Resolution declared adopted.



                                                          r---
                                                           ~ ~ \\~                    3-,li~\
                                                            City Clerk
DATE:             August 21, 2007

TO:               Honorable Mayor and Commissioners

FROM:             Mark Kincaid, Deputy Director of Public Safety

RE:               Concurrence with the Housing Board of Appeals Notice and Order
                  to Demolish. Dangerous Building Case#: EN-060030


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
2409 Crozier 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.

Case# & Project Address: # EN-060030 - 2409 Crozier

Location and ownership: This structure is located on Crozier between Lincoln St
and Fountain and is owned by Carl/Louie Hadix and Mary J. Bartels/Marilee
Dolisager on a land contract.

Staff Correspondence: A dangerous building inspection was conducted on
05/04/06. The Notice and Order to Repair was issued on 05/05/06. A permit was
issued 05/16/06 and expired in 90 days then the permit was renewed 03/15/07
and expired 06/01/07. A progress inspection was conducted on 08/24/06. The
case went before the HBA January 4, 2007 and was tabled until March 2007. On
03/01/07 the HBA declared the structure substandard and dangerous. A progress
inspection was conducted 04/12/07.

Owner Contact: The owner was present for the HBA meeting dated 01/04/07
and stated he was told to secure building, so he installed steel door and was
waiting for tax refund to complete electrical work and planned on finishing project
by February of 2007. Permits were renewed but have now expired again and
project has not been completed.

Financial Impact: General Funds

Budget action required: None

State Equalized value:              $21,500

Estimated cost to repair: $10,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.



O:\Inspcctions\Grabinski~Lonainc\Word\CC MEETINGS\AGENDA-2409 Crozier.doc   page 1 of I
                              INSPECTION SUMMARY

FOR 2409 Crozier

This is a wood frame single family dwelling that is essentially stripped out inside.
Initially the property owner made structural repairs and some cosmetic repairs. However
during the past year progress has come to a standstill. All permits have expired and there
has been no contact from the property owner since permits were renewed last winter.
                                    CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, Ml 49443 (231) 724-6715
                       DANGEROUS BUILDING INSPECTION
                                 REPORT
                                        Thursday, May 4, 2006

Enforcement# EN060030           Property Address 2409 CROZIER AVE
Parcel #24-205-673-0001-00     Owner HADIX CARUHADIX LOUIE

Inspector: Henry Faltinowski

Date completed: 05/04/2006

DEFICENCIES:

 Uncorrected
1. Rotted siding, siding falling off home.
2. Sags in rafter system.
3. Interior ceiling missing sections of drywall.
4. Front concrete steps tilting.
5. Provide protection from decay on siding and framing on back section of
home per section R 319 MRC 2003
6. Repairs windows - falling out.



Request interior inspection by all trades, electrical, mechanical and
plumbing. Please contact Inspection Services with any questions or to
schedule an inspection at 933 Terrace St., Muskegon, Ml 49440 (231) 724
6758.

Based upon my recent inspection of the above property I determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.


Henry Faltinowski, Building Inspector                      Date
                                CITY OF MUSKEGON

         DANGEROUS BUILDING PROGRESS INSPECTION REPORT


                                  2409 CROZIER A VE
                                       04/12/2007


Uncorrected
1. Installed main beaiing beam on interior.
2. Completing framing on interior 85% complete.
3. Needs to install fire blocking on balloon portions of home interior.
4. Needs to complete elect1ical.

Making good progress.


BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, I HAVE
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A
DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION
10-61 OF THE MUSKEGON CITY CODE.



HENRY FALTINOWSKI, BUILDING INSPECTOR                               DATE
                              CITY OF MUSKEGON

         DANGEROUS BUILDING PROGRESS INSPECTION REPORT


                                2409 CROZIER A VE
                                     08/25/2006



 Uncorrected
1. Cleaning up home ready to start demo walls and framing.
2. Roof Investigation
3. Painted and installed new doors.


BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, I HAVE
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A
DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION
10-61 OF THE MUSKEGON CITY CODE.



HENRY FALTINOWSKI, BUILDING INSPECTOR                        DATE
Date:        09/25/07
To:          Honorable Mayor and City Commission
From:        DPW
RE:          Restrictive Covenant Purchase



SUMMARY OF REQUEST:

Authorize staff to make a $10,000 offer for restrictive covenant on 1385
E. Keating. The City had made a $9,000 offer which was rejected by the
owner.



FINANCIAL IMPACT:

$10,000.00



BUDGET ACTION REQUIRED:

None.



STAFF RECOMMENDATION:

Approve purchase.
Date:             September 25, 2007
To:               Honorable Mayor and City Commissioners
From:             Engineering
RE:               Consideration of Bids
                  Spring St., 24" Sanitary Sewer Replacement (S-627)


SUMMARY OF REQUEST:
Authorize staff to enter into an emergency repair contract with McCormick Sand Inc. out of
Twin Lakes to replace approximately 11 O' of partially collapsed 24" sanitary sewer in
Spring Street at Wood since they were the lowest responsible bidder with a bid price of
$48,410. The bid prices are inclusive of all labor, material and traffic control necessary to
perform the replacement. Also; the bids were based on non-prevailing wage standards.

FINANCIAL IMPACT:
The construction cost of $48,410.00 plus engineering costs which is estimated at an
additional 5%.

BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
Award the contract to McCormick Sand, Inc.



COMMITTEE RECOMMENDATION:




C:\Documents and Settings\Potter\Local SettingsITemporary Internet Files\OLKI A\CONA WA Spring SS 09-25-07 (2).doc
               S-627 SPRING STREET SEWER REPLACEMENT
                                   BID TABULATION 09/18/07

    CONTRACTOR FELCO CONTRACTORS, INC. JACKSON-MERKEY CONTRACTORS, INC                 MCCORMICK SAND, INC.
        ADDRESS    874 PULASKI AVE.           555 E. WESTERN AVE.                        5430 RUSSELL RD.
 CITY/STATE/ZIP   MUSKEGON, Ml 49441          MUSKEGON, Ml 49441                        TWIN LAKE, Ml 49457
  DESCRIPTION
  OPTION "A"*   $             54,80.0.00 . $                   79,700.00           $                 48,410.00
  OPTION "B" ** $             35,200.00 $                      28,500.00           $                 24,750.00



*Consists of the replacement of the existing 115 feet of 24" clay sanitary sewer in Spring St. with 24" SOR 35
piping and all other related duties as necessary.

**Consists of the repair of the most damaged sections of the existing 24" clay sanitary sewer in Spring St.
with 24" SDR 35 piping and all other related duties as necessary.
              Commission Meeting Date: September 25, 2007




Date:         September 14, 2007

To:           Honorable Mayor and City Commissioners

From:         Planning & Economic DevelopmentCil.--- -

RE:           Vacation of the West 200 feet of the dead end alley Block
              690 Bounded by Crozier Avenue, Fountain Street and
              Harding Avenue


SUMMARY OF REQUEST:

Request for vacation of the west 200 feet of the dead end alley bounded by Crozier
Avenue, Fountain Street, and Harding Avenue, located in Muskegon Revised Plat of
1903, Block 669-. ~'to.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends vacation of the west 200 feet of the dead end alley bounded by
Crozier Avenue, Fountain Street, and Harding Avenue, with the condition that all utility
easement rights be retained .

COMMITTEE RECOMMENDATION:

The Planning Commission recommended denial of the vacation of the alley at their
9/13/07 meeting. The vote was T. Harryman, L. Spataro, B. Larson, B. Turnquist, S.
Warmington, and B Mazade opposed, J. Aslakson in favor of the vacation and T.
Michalski and B. Smith absent.




9/14/2007
                                   Staff Report [EXCERPT]
                                     CITY OF MUSKEGON
                                   PLANNING COMMISSION
                                     REGULAR MEETING

                                        September 13, 2007



Hearing; Case 2007-31: Request to vacate the west 200 feet of the dead end alley in Block
690 of the City of Muskegon Revised Plat of 1903, bounded by Crozier Avenue, Fountain
Street, and Harding Avenue, by Joseph Sidock, 2596 Crozier Avenue.


BACKGROUND
The applicant is the official owner of both 2596 and 2580 Crozier Avenue. These two
properties are located at the end of the alley on the south side. The alley ends at the
Muskegon Country Club property to the west. None of the homes bordering on this section of
the alley need alley access, as they all have driveways off of either Crozier or Harding. Since
the east half of the alley is used by adjacent property owners, the request is to vacate only the
west 200 feet.

Staff has receive no public comments on this request.




   Easterly portion of alley currently used.       Westerly portion of alley requested to vacate.
City of Muskegon
Planning Commission
Case# 2007-31
                                                                                                       -     Selected Property

                                                                                                              Mfecled properties




                                    l 111 rrorrNUEI                 11111            bd
                                   1111111111111                                      I       I

                                   11 HARrGTNr1 111 R
                                            1                       1 1



                                  11 1CRJ,JAVEN1 11 1 1 1R
       ~ : 11                               I      I    111 ]      1[I[] !
         ~~ 1111                                   I    11
                                                CUTLERAVENUE
                                                                  /§ I 111111 i       -   ·




                                 I I      IIIIIFl

  STAFF RECOMMENDATION

  Staff recommends approval of the request.


  DELIBERATION


  I move that the vacation of the west 200 feet of the alley located in Block 690, bounded by
  Crozier Avenue, Fountain Street, and Harding Avenue, be recommended to City Commission
  for (approval/denial), based on (compliance/lack of compliance), with the City's 1997 Master
  Land Use Plan, with the following conditions:

  I.        All utility easements will be retained.


  O:\Planning\COMMON\Zoning\City Commission ltems\vacations\2007 Vacations\Case 2007-31 west 200 ft bounded by crozier, fountain and harding
  vacation.doc
                               RESOLUTION #2006-_ __

                RESOLUTION TO VACATE A PORTION OF A PUBLIC ALLEY

WHEREAS, a petition has been received to vacate the West 200 feet of the dead end alley in Block
690 of the City of Muskegon Revised Plat of 1903, bounded by Crozier Avenue, Fountain Street
and Harding Avenue; and,

WHEREAS, the Planning Commission held a public hearing on September 13, 2007, to consider
the petition and, subsequently, recommended the vacation; and,

WHEREAS, due notice had been given of said hearing as well as the September 25, 2007, City
Commission meeting to consider the recommendation of the Planning Commission;

NOW, THEREFORE, BE IT RESOLVED that the City Commission deems it advisable for the
public interest to vacate and discontinue the west 200 feet of the dead end alley in Block 690 of the
City of Muskegon Revised Plat of 1903, bounded by Crozier Avenue, Fountain Street and Harding
Avenue, County of Muskegon, State of Michigan.

BE IT FURTHER RESOLVED that the City Commission does hereby declare the said west 200
feet of the alley vacated and discontinued, provided, however, that this action on the pait of the
City Commission shall not operate so as to conflict with fire access or the utility rights heretofore
acquired by the City or by any public service utility in the City of Muskegon operating in, over and
upon said portion of alley hereby vacated, and it is hereby expressly declai·ed that such rights shall
remain in full force and effect.

BE IT FURTHER RESOLVED that after any maintenance and repair by the City, the City shall
restore the disturbed area to the grade and paving in existence at the time of vacation. The City
shall not be responsible to replace special planting, landscaping, fences or any structure. No
structure shall be placed in the easement which, in the sole judgment of the City, will interfere with
the repair or maintenance of utilities in the easement, public or private.

Adopted this 25 th day of September, 2007.

        Ayes:

        Nays:

       Absent:

                                                By:. _ _ _ _ _ _ _ _ _ _ _ _ __
                                                    Stephen J. Warmington, Mayor


                                                Attest:. _ _ _ _ _ _ _ _ _ _ _ _ __
                                                         Ann Marie Becker, MMC, City Clerk
                                                       CERTIFICATION

 (Alley Vacation of the west 200 feet of alley in Block 690 of the City of Muskegon Revised Plan
                                              of 1903)


I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by
the City Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular
meeting held on September 25, 2007.



                                                                            Ann Marie Becker, MMC
                                                                            Clerk, City of Muskegon




O:\Planning\COMMON\Zoning\City Commission Items\vacations\2007 Vacations\Case 2007-31 west 200 ft bounded by crozier, fountain and harding
vacation.doc
Date: September 25, 2007
To:        Honorable Mayor and City Commissioners

From: Finance Director
RE:        MERS Administrative Cleanup Issues



SUMMARY OF REQUEST: The transfer of retirement assets to MERS is
complete. A couple of "cleanup" issues have emerged, however, which we would
like to address at this time:

Definition of "Hours per Month" for Firefighters

Rebalancing of Assets Among MERS Group Accounts

FINANCIAL IMPACT: Rebalancing assets among the various MERS groups will
help reduce the City's required contribution rates.

BUDGET ACTION REQUIRED: None at this time. Any identified pension
contribution savings will be factored in future quarterly budget reforecasts.

STAFF         RECOMMENDATION:             Approval     of   the   attached      resolutions
implementing these changes.

COMMITTEE RECOMMENDATION: None.




• Page 3
                                                               Finance
                                                               Administration




Memo
To:      City Commission

From: Finance Director
Date: September 17, 2007
Re:      MERS Administrative Cleanup Issues



The transfer of retirement assets and retirement system administrative
responsibilities to MERS (Municipal Employees' Retirement System of Michigan) is
complete. However, a couple of administrative cleanup issues have emerged which
we would like to address at this time:

      1. Definition of "Hours per Month" for Firefighters - When the firefighters'
         unit was moved to MERS, we set the number of hours that defined a month of
         work at 216, based on the atypical work schedule followed by most
         firefighters. Overlooked was the fact that two members of the firefighters' unit
         have 40-hour workweeks (Fire Marshall, Fire Inspector). In discussions with
         MERS, it appears the best fix is to define the firefighters' minimum work
         month at the same level (150 hours) as other employees. The minimum work
         month is a factor only in determining service credit for partial month situations
         such as at the end of employment or the month in which an employee goes
         on unpaid leave or long-term disability. Partial months worked related to
         vacation, sick, workers compensation and other paid leave would not be
         affected.

   2. Reallocation of Assets - Prior to joining MERS, the City maintained two
      pension funds - General Employees and Police & Fire. Pension assets for
      employee groups within each fund were not segregated. With the move to
      MERS, we are now maintaining eight employee groups and 2 legacy retiree




O:\FINANCE\PAUL\MyDocumenls\MEMO-CITY COMMISSION MERS CLEANUP ISSUES.doc
           groups as separate accounts. Overall, City retirement accounts are 101.5%
           funded, however, due to some employee misclassifications and the liming
           differences when assets for each group were moved to MERS, we have
           groups that are unintentionally better funded than others. MERS has
           recommended that by rebalancing accounts to a consistent funding ratio, we
           can eliminate the unfunded actuarial liabilities that exist in some accounts and
           marginally reduce the City's 2008 required contribution rates.

Staff recommends approval of these actions and requests Commission consideration
of the attached implementing resolutions.

Thank you




• Page 2
                                                                                                                           2007-SS(c)



                          MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM OF MICHIGAN


                      RESOLUTION FOR DEFINING A DAY OF WORK OR
                    HOURS PER MONTH FORMERS RETIREMENT PURPOSES

Note: To adopt the part-time to full-time employee service credit program under Plan Document Section 4(6),
the governing body must adopt the Uniform Resolution Defining Hours Per Month For Part-Time Employees
and Service Credit Conversion Upon Promotion to Full-Time Status.


           In accordance with Section 3(1) of the MERS Plan Document, as the _ _ _ _ _ _ _ __

                                                                                       ,
                    (Governing Body)                                                                 (Municipality)


does hereby certify that a day of work, or the number of hours of work in a month, for

----<(,L½-'-'M"-''l'--'M"''-.------',6'----"';1,,e,,,·,,,e:...,,.6"--'""'-~;ll!LA,-.%s,,_V,.,,;"-.--/   d-D re /)




2/912007   2/9/2007




2/9/2007   2/9/2007
DATE:             September 18, 2007

TO:                Honorable Mayor and Commissioners

FROM:              Mark Kincaid, Deputy Director of Public Safety

RE:               Concurrence with the Housing Board of Appeals Notice and Order
                  to Demolish. Dangerous Building Case#: EN-060431


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
273 Sumner 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.

Case# & Project Address: # EN-060431 273 Sumner Ave.

Location and ownership: This structure is located on Sumner between Erickson
and Yuba Streets and is owned by James Kitchen, 1445 Hillcrest, Muskegon, Ml
49442

Staff Correspondence: A dangerous building inspection was conducted on
10/11 /06. The Notice and Order to Repair was issued on 10/18/06. On 12/07/06
the HBA declared the structure substandard and dangerous. An interior
inspection was conducted 04/13/07.

Owner Contact: No one was present at the HBA meeting. Owner met with Don
LaBrenz 03/16/07 and an interior inspection was conducted 04/13/07. Owner
met with Don LaBrenz again 06/28/07 but no timeline was submitted and no
permits have been applied for.

Financial Impact:           CDBG Funds

Budget action required: None

State Equalized value:               $21,900

Estimated cost to repair: $25, 000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.




O:\lnspections\Grabinski_Lorraine\Word\CC MEETINGS\AGENDA - 273 Sumner.doc   page 1 of 1
                                    CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, Ml 49443 (231) 724-6715
                       DANGEROUS BUILDING INSPECTION
                                 REPORT
                                    Tuesday, October 17, 2006

Enforcement# EN060431           Property Address 273 SUMNER AVE
Parcel #24-205-154-0014-00     Owner KITCHEN JAMES

Inspector: Henry Faltinowski

Date completed: 10/11/2006

DEFICENCIES:

 Uncorrected
1. Replace/repair all damaged missing siding.
2. Repair/replace all damaged missing windows.
3. Scrape and paint all exterior window frames.
4. Repair-replace all damaged fascia - soffitt.
5. Scrape and paint all exterior wood trim.
6. Replace all damaged roof covering and flashing.
7. Repair -replace doors thresholds.
8. Repair-replace front/back steps.



Request interior inspection by all trades, electrical, mechanical and
plumbing. Please contact Inspection Services with any questions or to
schedule an inspection at 933 Terrace St., Muskegon, Ml 49440 (231) 724
6758.

Based upon my recent inspection of the above property I determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.


Henry Faltinowski, Building Inspector                      Date
                           City of Muskegon
              933 Terrace St., P.O. Box 536, Muskegon, Ml 49443
                            (231) 724-6715

                                 Tuesday, April 24, 2007

       DANGEROUS BUILDING INTERIOR INSPECTION REPORT

Property Address: 273 SUMNER AVE            Parcel# 24-205-154-0014-00

Owner: KITCHEN JAMES

Inspection Type:   DB Interior Inspection      Inspector: Hemy Faltinowski

Date completed: 04/13/2007

DEFICIENCIES:

 Uncorrected
1. House to be wired to current code.
2. Replace electric service to current code.
3. Install smoke alarms to current code.
4. Insure all habital spaces have supply & return air.
5. Inspect & repair plumbing & vents.
6. Need bath vent fans
7. Perform gas pressure test.
8. Inspect & certify water heater & furnace.
9.Inspect & certify chinmey & vents.
10. Clean ductwork.
11. Hose spigots to have vac breakers.
12. Plumbing & mechanical to meet 2003 Mich Code.
13. Structural chimney damage.
14. Replace damaged ceilings interior -throughout numerous.
15. Replace all damaged flooring.
16. Replace all damaged walls windows - numerous.
17. Numerous floor system damage cracked main beams, cut floor joists, clean out entire
home of debris and reschedule to analize damaged; numerous amounts of debris


Based upon my recent inspection of the above property I determined that the structure
meets the definition of a Dangerous Building and/or Substandard Building as set forth in
Section 10-61 of the Muskegon City Code.




HENRY FALTINOWSKI BUILDING INSPECTOR                          DATE
                              INSPECTION SUMMARY

FOR: 273 Sumner

This is a 2 story wood frame single family dwelling. This dwelling needs siding,
windows, and roofing repairs. Dming an interior inspection of this building in April
2007, numerous deficiencies were noted including structural damage to the floors,
chimney, numerous holes in walls and ceiling, and an electrical system that must be
replaced. To date, no timeline has been submitted, no permit applications have been
made and no permits issued.
DATE:                September 17, 2007

TO:                  Honorable Mayor and Commissioners

FROM:                Mark Kincaid, Deputy Director of Public Safety

RE:                  Concurrence with the Housing Board of Appeals Notice and Order
                     to Demolish. Dangerous Building Case#: EN-060394


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
222 E. Forest (Area 13) 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.

Case# & Project Address: # EN-060394 222 E. Forest

Location and ownership: This structure is located on Forest between E. Dale
and E. Forest Streets and is owned by Nationstar Mortgage LLC, 350 Highland
Dr, Lewisville, TX 75067

Staff Correspondence: A dangerous building inspection was conducted on
06/05/07 and the Notice and Order to Repair was issued on 06/05/07. On
08/02/07 the HBA declared the structure to be dangerous, substandard and a
public nuisance.

Owner Contact: No one was present to represent case at HBA meeting dated
11/02/06. A letter was received by the mortgage company stating their plans to
sell "as is" within 60 days and new owners would be responsible to make repairs.

Financial Impact:              General Funds

Budget action required: None

State Equalized value:                    $ 26,300

Estimated cost to repair: $ 25,000 (Exterior Only)

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.




C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLKIA\Agenda 222 E Forest (2).doc   page 1 of 1
                                    CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, Ml 49443 (231) 724-6715
                        DANGEROUS BUILDING INSPECTION
                                  REPORT
                                        Tuesday, June 5, 2007

Enforcement# EN070107           Property Address 222 E FOREST AVE
Parcel #24-205-281-0008-10      Owner CONNOLLY KEVIN

Inspector: Henry Faltinowski

Date completed: 06/05/2007

DEFICENCIES:

 Uncorrected
1. Roof has structural problems large sags in rafter system. Deteriorated
roof covering. Large blue tarp on roof.
2. Scrape and paint all exterior wood on home.
3. Front porch deteriorated rotting deck pin and landing boards.
4. Chimney structural failure.
5. Front entry steps deteriorated, replace to code.



Request interior inspection by all trades, electrical, mechanical and
plumbing. Please contact Inspection Services with any questions or to
schedule an inspection at 933 Terrace St., Muskegon, Ml 49440 (231) 724
6758.

Based upon my recent inspection of the above property I determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.


Henry Faltinowski, Building Inspector                      Date
                              INSPECTION SUMMARY

FOR: 222 E. Forest

This is a two story single family wood frame building. The roof system is failing
structurally and is covered by a tarp to keep the weather out. The front porch is
deteriorated. No interior inspection has been done and has to be rebuilt. The property is
currently owned by a mortgage company and it is their intention to sell the property
without making any repairs to the building.
            ,::;'\'_
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                                           Residential SWMRIC Client Detail Report
                                                         MLS#:       2742577      St: Active                    PT: RESI                    LP: 21,400
                                                         Area:       M - 71      City of Muskegon E                                        SPT: Single Farnily
                                                         Address: 222 E Forest Ave Muskegon, Ml 49442
                                                         Municipality: Muskegon City
                                                         County: Muskegon
                                                         TaxlD: 6124205281000810                     Acres:       0.090
                                                         LotDim: 48x80                                Rd Front:   48
                                                         Body ofWtr:                                 Water Frontage:                        WtrFrnt: No

                                                                             Upper         Main       Lower          Bsmt        Total
                                                         Bedrooms              2            1                                      3
                                                         Full Baths                                                                0
                                                         Half Baths                                                                0
                                                         Fin/Level            864              884                               1748
                                                         Total Sqft                                                  864
                                                                                                              Total Sqft Above Grade:                        1748

Directions:        Laketon to Hoyt to East Forest to home
Cross St:          hoyt & terrace

Room Dimensions/Levels:                                               Bedroom 2:                                              # of Fireplaces:
Kitchen:                        Recreation:                           Bedroom 3:                                            Approx Year Built: 1937
FrmlDin:                        Den/Study:                            Bedroom 4:                                                Income Prop: No
DinArea:                        Laundry:                              Bedroom 5:                                                    Assn Fee:
Family:                         Mstr Bath:                            #of Rooms: 7                                             Assn Fee Pay:
Living:                         Mstr                                    Additional                                          Assoc Buy In Fee:
                                Bedroom:                                   Room:

Legal:       On file
Taxable Value:            15953                                            SEV: 24600                            For Tax Year: 2006
Annual Prop Taxes:        912                                       Tax Year: 2006                              Homestead%: 0
Special Assmt/Typ:        None Known                                             Zoning:                    Residential
School District           Muskegon                                               High School:
Middle School:                                                                   Elementary School:

Design:                  Traditional                                                Stories:                2
Sewer:                   Public                                                     Water:                  Public
Driveway:

Garage None                                            Exterior Material Wood                               Roofing Comp Shingle
Substructure Full Basement                             Heat Source Gas                                      Heat Type Forced Air
Street Type Paved                                      Terms Available Cash/Conventional


Owner says bring me an offer I Can't refuse, on this large 3 bedroom home in the city of Muskegon near hospital and high school, needs lots of TLC, but could
make a wonderful first time or investment, full basement.


Presented By:                   Doug J Loper                                                           Greenridge Realty - Muskegon
                                Primary:            231-733-8117                           570 Seminole Rd. Ste. 201
                                Secondary:          231-828-7653                           Muskegon, Ml 49444
                                Other:              231-830-3066                           231-733-8117
                                E-mail:             dougsellhm@aol.com                     Fax: 231-733-7533
                                Web Page:           http://www.greenridge.com/douglasloper

Se !ember 2007
                                        Featured properties may not be listed by the office/agent presenting this brochure.
 All information contained herein should be deemed reliable but not guaranteed, all representations are approximate, and individual verification is recommended .
7 1 ' ''   u r
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         ,
DATE:              September 17, 2007

TO:                Honorable Mayor and Commissioners

FROM:              Mark Kincaid, Deputy Director of Public Safety

RE:                Concurrence with the Housing Board of Appeals Notice and Order
                   to Demolish. Dangerous Building Case#: EN-070067


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
1497 Division - Area 12 is unsafe, substandard, a public nu isance 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.

Case# & Project Address: # EN-070067 1497 Division

Location and ownership: This structure is located on Division between Grand
and Southern Streets and is owned by Anthony Gomez, 16500 Hickory St,
Spring Lake, Ml 49456.

Staff Correspondence: A dangerous building inspection was conducted on
04/04/07 and the Notice and Order to Repair was issued on 04/09/07. On
06/07/07 the HBA tabled case until August 2007 meeting. On 08/02/07 the HBA
declared the home to be dangerous, substandard and a public nuisance.

Owner Contact: Anthony Gomez was present for HBA case dated 06/07/07
stating he planned to rehab home but wouldn't be available to start work until
July 2007. The HBA board advised interior inspection needs to take place and
then provide timeline and then apply for permits. A interior inspection was
scheduled for 08/28/07 but no one was there. No permits have been issued, no
inspections scheduled, no timeline provided and no contact with owner since
June 2007.

Financial Impact: CDBG

Budget action required: None

State Equalized value:                 $ 27,700

Estimated cost to repair: $ 10,000 (Exterior Only)

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.




O:\lnspections\Grabinski_Lorraine\Word\CC MEETINGS\Agenda 1497 Division.doc   page I o f 1
                                    CITY OF MUSKEGON
        933 Terrace St., P.O. Box 537, Muskegon, Ml 49443 (231) 724-6715
                        DANGEROUS BUILDING INSPECTION
                                  REPORT
                                        Monday, April 9, 2007

Enforcement# EN070067           Property Address 1497 DIVISION ST
Parcel #24-205-486-0019-00      Owner GOMEZ ANTHONY S

Inspector: Henry Faltinowski

Date completed: 03/30/07

DEFICENCIES:

 Uncorrected
1. Foundation failing on front porch 1497 structural damage.
2. Roof sag on front porch.
3. Missing siding.
4. Back porch loaded on lower roof not to code on bearing points rebuild to
code.
5. Guardrails and handrails not to code.
6. Repair chimney
7. Roof soffit falling out.
8. Interior by Trade Inspectors.



Request interior inspection by all trades, electrical, mechanical and
plumbing. Please contact Inspection Services with any questions or to
schedule an inspection at 933 Terrace St., Muskegon, Ml 49440 (231) 724
6758.

Based upon my recent inspection of the above property I determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.


Henry Faltinowski, Building Inspector                       Date
                              INSPECTION SUMMARY

FOR: 1497 Division

This is a two story wood frame, two family dwelling. This building cmrently does not
have a current Certificate of Compliance. The front porch foundation is failing and the
roof is sagging. The back and front porches must be repaired or replaced to meet code.
No interior inspections have occun-ed. An inte1ior inspection was scheduled by the
property owner for August 28, 2007, but no one met the inspectors to open the building.
To date, no timeline for repairs has been submitted, no permits have been applied for or
issued.
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