City Commission Packet 08-12-2003

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                 CITY OF MUSKEGON
                 CITY COMMISSION MEETING
                              AUGUST 12, 2003
          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   PRESENTATIONS:
o   CONSENT AGENDA:
                 a. Approval of Minutes. CITY CLERK
                 b. Community Relations Committee Recommendations. CITY CLERK
                 c. Request to Raise the Mexican Flag. CITY CLERK
                 d. Healthcare Provider - Retirees Over 65. FINANCE
                 e. Amendment to the "Policy for Acquisition and Disposition of
                    Residential Properties". PLANNING & ECONOMIC DEVELOPMENT
                 f.   Vacation of a Portion of Mclaren Street. PLANNING & ECONOMIC
                      DEVELOPMENT
                 g. Consent Agreement Policy. INSPECTION SERVICES
                 h. Professional Services Agreement with Muskegon Charter Township.
                    INSPECTION SERVICES
                 i.   Approval of 2003-2004 Subrecipient and Community Housing
                      Development Organization {CHDO) Agreements. COMMUNITY &
                      NEIGHBORHOOD SERVICES
                 j.   Purchase of Lot on Octavius.    COMMUNITY & NEIGHBORHOOD
                      SERVICES
                 k. Approval of Contractor for Construction of House at 361 Oak.
                    COMMUNITY & NEIGHBORHOOD SERVICES
                 I.   Approval of Contractor for Construction of House at 1668 Beidler.
                      COMMUNITY & NEIGHBORHOOD SERVICES
•   PUBLIC HEARINGS:
                       a. Amendments to Brownfield Plan - Gillespie Development. Loft
                          Properties, LLC and Parmenter O'Toole. PLANNING & ECONOMIC
                          DEVELOPMENT
•   COMMUNICATIONS:
•   CITY MANAGER'S REPORT:
•   UNFINISHED BUSINESS:
•   NEW BUSINESS:
                       a. Employee Suggestion Award Program. CIVIL SERVICE
                       b. Disadvantaged               Contractor          Recommendations.                AFFIRMATIVE
                          ACTION
                       c. Request for Final Planned Unit Development Approval for a 40-Unit
                          Senior Housing Development at Mclaren St. and Wesley Ave.
                          PLANNING & ECONOMIC DEVELOPMENT
                       d. Proposed Water Rate Increase. FINANCE
                       e. Energy Savings Performance Contract - L. C. Walker Arena. CITY
                          MANAGER
                       f.   Designation of Voting Delegate and Alternate Voting Delegate for
                            MML Annual Meeting. CITY CLERK
                       g. Concurrence With the Housing Board of Appeals Notice and Order
                          to Demolish the Following:
                            1. 1253 Calvin (tabled from last meeting)
                            2. 1032 Wood
                            3.   509 Adams
                            4. 424 Orchard
•   ANY OTHER BUSINESS:
•   PUBLIC PARTICIPATION:
•   CLOSED SESSION: To discuss pending litigation
•   Reminder: Individuals who would like to address the City Commission shall do the following:
•   Be recognized by the Chair.
•   Step forward to the microphone.
•   State name and address.
•   Limit of 3 minutes to address the Commission.
•   {Speaker representing a group may be allowed l O minutes if previously registered with City Clerk.)
•   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 GAIL A. KUNDINGER,
CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD: (231) 724-4172.
Date:       August12,2003
To:         Honorable Mayor and City Commissioners
from:       Karen Scholle, Director of Civil Service/Personnel
R.IE:       Employee Suggestion Award Program




SUMMARY OF REQUEST: Presentation of 2003 first quarter employee
suggestion award to Barb Shullenberger of Administration for her
suggestion to switch to computer template for letterhead rather than pay
the cost of printing it.



FINANCIAL IMPACT: $250 award from 2003 budget.



BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION: Approval
Date:    August12,2003
To:      Honorable Mayor and City Commissioners
From:    Gail A. Kundinger, City Clerk
RE:      Approval of Minutes




SUMMARY OF REQUEST: To approve the minutes of the Regular
Commission Meeting that was held on Tuesday, July 22, 2003.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
              CITY OF MUSKEGON
              CITY COMMISSION MEETING
                         AUGUST 12, 2003
          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 5:30pm, Tuesday, August 12, 2003.
   Mayor Warmington opened the meeting with a prayer from Reverend Tyrone
Matthew's from the Walkers Memorial Church of God in Christ, after which members
of the City Commission and members of the public joined in reciting the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
   Present: Mayor Stephen Warmington, Vice Mayor Karen Buie; Commissioners
Stephen Gawron, William Larson, Robert Schweifler, Clara Shepherd and Lawrence
Spataro; Assistant City Manager Lee Slaughter, City Attorney John Schrier and City
Clerk Gail Kundinger.
HONORS AND AWARDS:
              a.   Employee Suggestion Award Program. CIVIL SERVICE
   Mayor Warmington presented a Employee Suggestion Award Certificate with
$250.00 worth of coupons from the Chamber of Commerce to Barb Shullenberger for
her suggestion regarding saving of monies on letter head paper.
2003-61 CONSENT AGENDA:
              a. Approval of Minutes. CITY CLERK
  SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
  meeting that was held on Tuesday, July 22, 2003.
   FINANCIAL IMPACT: None
   BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: Approval of the minutes.
              b. Community Relations Committee Recommendations. CITY CLERK
  SUMMARY OF REQUEST: At the August 4, 2003 Community Relations Committee
  meeting the following was recommended by the committee members:
   l. Removal of Toya Davis from the Land Reutilization Committee
  2. Appointment of Robert Hill to the Land Reutilization Committee.
  3. Acceptance of resignation of Pat Strum from the Public Relations Committee
4. Appointment of Bob Henry to the Public Relations Committee.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Concur with the Community Relations Committee
recommendations.
            c. Request to Raise the Mexican Flag. CITY CLERK
SUMMARY OF REQUEST: "Latino's Working for the Future" requests permission to fly
the Mexican Flag outside City Hall on Saturday, September 13, 2003, in honor of
Mexican Independence Day.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
            d. Healthcare Provider - Retirees Over 65. FINANCE
SUMMARY OF REQUEST: For several years the City has offered retirees over age 65
the option of receiving a $50.00 per month stipend towards the cost of a
commercially-provided Medigap policy. This was done in response to complaints
that the City's regular healthcare coverage for retirees over 65 was inadequate.
The City works with a third party service provider (MagnaCare) to find the best
medigap policy values for retirees and, to coordinate premium billings.
MagnaCare is recommending that the current provider (Oxford Life) be replaced
with Hartford Life Insurance effective October l, 2003. The documents the City
needs to sign to effect this change have been reviewed by the City Attorney.
FINANCIAL IMPACT: no direct financial impact on the city. The monthly stipend
remains $50.00.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize Mayor and Clerk to sign the necessary
documents.
            e. Amendment to the "Policy for Acquisition and Disposition of
               Residential Properties" PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Due to several situations that have arisen in the past few
months regarding illegal property splits due to foreclosure, staff has worked with
the City Attorney to develop language to address this issue. The language is
proposed to be an amendment to the "Policy for Acquisition and Disposition of
Residential Properties".
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the amendment to the policy and have
the Mayor and City Clerk sign the resolution.
            f.   Vacation of a Portion of Mclaren Street. PLANNING & ECONOMIC
                 DEVELOPMENT
SUMMARY OF REQUEST: Request for the vacation of a portion of McLaren St., north
of Wesley Ave.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends vacation of the portion of McLaren
St., with the conditions listed in the first resolution, and to allow the Mayor and
Clerk to execute the second resolution once those conditions have been met.
COMMITTEE RECOMMEDATION: The Planning Commission recommended the
vacation, with the conditions listed in the resolution. The vote was unanimous with
T. Johnson and T. Harryman absent.
            g. Consent Agreement Policy. INSPECTION SERVICES
SUMMARY OF REQUEST: This is to request the City Commission approve the
Consent Agreement Policy. This policy will allow staff to enter into a consent
agreement with a property owner without taking the agreement to the
Commission for approval. This will be utilized by staff in an effort to expedite the
approval allowing the property owner to begin the repairs ordered.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to sign
the policy.
            i.   Approval of 2003-2004 Subrecipient and Community Housing
                 Development Organization (CHDO) Agreements. COMMUNITY &
                 NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign all of the 2003-
2004 approved agreements for the City's sub-recipients and CHDO's. The City
Commission approved the funding for each of the non-profits last spring during
the City's Consolidated Planning process.
FINANCIAL IMPACT: Funding will be allocated from the 2003-2004 CDBG and
HOME programs
BUDGET ACTION REQUIRED: None. The City Commission made budgeting decision
last spring.
STAFF RECOMMENDATION: To direct the Mayor and Clerk to sign agreements.
            j.   Purchase of Lot on Octavius.     COMMUNITY & NEIGHBORHOOD
                 SERVICES
SUMMARY OF REQUEST: To approve the purchase of a lot on Octavius from a Mr.
James Douglas for $200.00. The property description is City of Muskegon Revised
Plat of 1903 South ½ Lot 10 Block 149. It is adjacent to 503 Octavius, a current City
rehabilitation project. If this is approved, the two lots will be combined in order to
create a lot in compliance with the City's current zoning guidelines.
FINANCIAL IMPACT: The $200.00 will be added to the cost of the rehabilitation
project at 503 Octavius.
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: To approve the purchase.
              k. Approval of Contractor for Construction of House at 361 Oak.
                 COMMUNITY & NEIGHBORHOOD SERVICES
  SUMMARY OF REQUEST: To approve the contract with Holden Construction 291
  Washington, Muskegon, Ml for the construction of the house at 36 l Oak for the
  price $116,083. The house at 36 l Oak will replace a former Turnkey 3 home that
  was recently demolished by the City of Muskegon. The project at 361 Oak is
  under the Operation "At Long Last" AKA Shangaliwa program. After the house is
  completed, it will be sold to a qualified first-time homebuyer as part of the City of
  Muskegon's aggressive neighborhood revitalization efforts. The funding for this
  project will be supplied from the City of Muskegon HOME funds from the U.S.
  Department of Housing and Urban Development.
  FINANCIAL IMPACT: The funding for the project will be taken from the City's 2002
  HOME funds.
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: To approve the contract with the fore mentioned
  contractor and direct the Mayor and Clerk to sign the contract.
              I.   Approval of Contractor for Construction of House at 1668 Beidler.
                   COMMUNITY & NEIGHBORHOOD SERVICES
  SUMMAY OF REQUEST: To approve the contract with Top Notch Design, 4740
  Jensen Rd., Fruitport Ml for the construction of the new home to be located at
  1668 Beidler for the cost of $112, 829. The site at 1668 Beidler formerly was
  occupied by a Turnkey 3 home that was recently demolished. After the
  construction is completed, the new home will be sold to a qualified first-time
  homebuyer continuing the City's aggressive neighborhood revitalization efforts
  under the Operation "At Long Last."
  FINANCIAL IMPACT: The funding for the project will be taken from the City's 2003
  HOME funds.
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: To approve the contract with Top Notch Design and
  direct the Mayor and Clerk to sign the contract.
  Motion by Vice Mayor Buie, second by Commissioner Gawron to accept the
  Consent Agenda as presented with the exception of item h.
  ROLL VOTE: Ayes: Spataro,      Warmington,    Buie,   Gawron,   Larson,   Schweifler,
             Shepherd
              Nays: None
  MOTION PASSES
2003-62 ITEMS REMOVED FROM AGENDA
              h. Professional Services Agreement with Muskegon Charter Township.
                 INSPECTION SERVICES
  SUMMARY OF REQUEST: This is to request the City Commission approve the
  Professional Service Agreement between the City of Muskegon and Muskegon
  Charter Township. This agreement is to allow the Inspection Services to conduct
  the electrical inspections and plan reviews for Muskegon Charter Township on a
  contractual basis. It is also requested that if approved, the Commission authorize
  the Mayor and City Clerk to sign the agreement.
  FINANCIAL IMPACT: None
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to sign
  the service agreement after it has been approved by Muskegon Charter Township
  officials.
  Motion by Commissioner Schweifler, second by Commissioner Spataro to approve
  the Professional Service Agreement between the City of Muskegon and Muskegon
  Charier Township, and have the Mayor and City Clerk sign the agreement after it
  has been approved by Township officials.
  ROLL VOTE: Ayes: Warmington,      Buie, Gawron, Larson, Schweifler, Shepherd,
             Spataro
              Nays: None
  MOTION PASSES
2003-63 PUBLIC HEARINGS:
              a. Amendments to Brownfield Plan - Gillespie Development, Loft
                 Properties, LLC and Parmenter O'Toole. PLANNING & ECONOMIC
                 DEVELOPMENT
  SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
  approving and adopting amendments for the Brownfield Plan. The amendments
  are for the inclusion of property owned by Lakefront LLC (which will be sold to
  Gillespie Development and Loft Properties, LLC and leased to Parmenter O'Toole)
  in the Brownfield Plan.
  FINANCIAL IMPACT: There is no direct financial impact in approving the Brownfield
  Plan amendments, although the development of the offices, condominiums and
  retail space, proposed by the owner/developers of the Edison landing site, will
  add to the tax base of the City of Muskegon.
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: To hold the public hearing and approve the resolution
  and authorize the Mayor and Clerk to sign the resolution.
  The Public Hearing opened at 5:46pm to hear any comments from the public. No
  comments were heard at this time.
  Motion by Commissioner Schweifler, second by Vice Mayor Buie to close the
  Public Hearing at 5:48pm and to approve the resolution adopting amendments for
  the Bownfield Plan and authorize the Mayor and City Clerk to sign said resolution.
  ROLL VOTE: Ayes:    Buie,   Gawron,   Larson,   Schweifler,   Shepherd,   Spataro,
             Warmington
             Nays: None
  MOTION PASSES
2003-64 NEW BUSINESS:
             a. Disadvantaged    Contractor   Recommendations.      AFFIRMATIVE
                ACTION
  SUMMARY OF REQUEST: To approve the list of recommendations to the City's bid
  proposal process.
  FINANCIAL IMPACT: None
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: Staff recommends approval (The              City's   Equal
  Opportunity Committee approved this document on 6/23/03)
  Motion by Commissioner Spataro, second by Commissioner Shepherd to approve
  the list of recommendations to the City's bid proposal process.
  ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington,
             Buie
             Nays: None
  MOTION PASSES
             b. Request for Final Planned Unit Development Approval for a 40-Unit
                Senior Housing Development at Mclaren St. and Wesley Ave.
                PLANNING & ECONOMIC DEVELOPMENT
  SUMMARY OF REQUEST: Request for final approval for a 40-unit senior housing
  development at McLaren St. and Wesley Ave. in the Jackson Hill neighborhood.
  The request is from the Sterling Group.
  FINANCIAL IMPACT: None
  BUDGET ACTION REQUIRED: None
  STAFF RECOMMENDATION: Staff recommends final PUD approval for the
  development and approval of the associated plans provided that the conditions
  listed in the resolution are met.
  COMMITTEE RECOMMENDATION: The Planning Commission recommended final
  approval of the PUD and associated plans, with the conditions listed on the
  resolution, at a special meeting held on 7/28. The vote was unanimous, with T.
  Johnson and T. Harryman absent.
  Motion by Commissioner Larson, second by Commissioner Shepherd to approve
  the final Planned Unit Development for a 40-unit senior housing development at
  Mclaren St. and Wesley Ave. and approve the associated plans provided the
  conditions listed on the resolution are met.
  ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington, Buie,
             Gawron
                  Nays: None
MOTION PASSES
                  c. Proposed Waler Rate Increase. FINANCE
SUMMARY OF REQUEST: The City's water rates were last adjusted in April 1999. Last
year, the City retained the consulting engineering firm Tetra-Tech to study the
City's water rate structure in light of 1) costly improvements to the filtration plant
being mandated by the state and, 2) significant new legal developments
impacting the structure of municipal user fees. The Tetra-Tech "Water Cost of
Service Study" has previously been distributed to City Commissioners. The
resolution implements the 2003 and 2004 rate recommendations contained in the
study.
FINANCIAL IMPACT: The proposed rate increase will generate an estimated
$975,000 per year of additional revenue for the water system in 2004. The
following table shows how the rate increase will impact typical residential
households:
 Sami;1le Users        Quarterly   Water     Bill   Quarterly    Water    Bill   Quarterly     Water    Bill
                       before Increase              After 10L01 L03 Increase     After 01 L0l L04 Increase

 Using        7,5000                       $9.20                        $8.80                        $10.90
 gallons per month
 Using        15,000                   $15. 90                         $17.60                        $21.80
 gallons per month



BUDGET ACTION REQUIRED: None at this time. The 2004 water fund budget will
incorporate the projected revenues from the rate increase.
STAFF RECOMMENDATION: Approval of the resolution implementing the proposed
water rate increase.
Motion by Commissioner Spataro, second by Commissioner Schweifler to approve
the resolution implementing the proposed water rate increase.
ROLL VOTE: Ayes: Schweifler, Shepherd, Spataro, Warmington, Buie, Gawron,
           Larson
                  Nays: None
MOTION PASSES
                  d. Energy Savings Performance Contract - L. C. Walker Arena. CITY
                     MANAGER
SUMMARY OF REQUEST: To approve a Letter of Intent with Siemens Building
Technologies, Inc., to enter into a Guaranteed Savings Performance Contract for
the L.C. Walker Arena.
FINANCIAL IMPACT: $15,000
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve.
Motion by Commissioner Larson, second Commissioner Gawron to approve a
letter of Intent with Siemens Building Technologies, Inc., to enter into a Guaranteed
Savings Performance Contract for the L.C. Walker Arena.
ROLL VOTE: Ayes: Shepherd,       Spataro,    Warmington,   Buie,   Gawron,    Larson,
           Schweifler
            Nays: None
MOTION PASSES
            e. Designation of Voting Delegate and Alternate Voting Delegate for
               MML Annual Meeting. CITY CLERK
SUMMARY OF REQUEST: To designate by action of the Commission, one of our
officials who will be in attendance at the Convention as an official representative
to cast the vote of the municipality at the annual meeting, and, if possible, to
designate one other official to serve as alternate.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
COMMITTEE   RECOMMENDATION:                 Community      Relations     Committee
recommended approval.
Motion by Commissioner Spataro, second by Vice Mayor Buie to designate
Commissioner Shepherd to attend the MML Annual Meeting and designate Gail
Kundinger as alternate attendee.
ROLL VOTE: Ayes: Spataro, Warmington, Buie, Gawron, Larson, Schweifler,
           Shepherd
            Nays: None
MOTION PASSES
            f.   Concurrence With the Housing Board of Appeals Notice and Order
                 to Demolish the Following: INSPECTION SERVICES
SUMMARY OF REQUEST: This is to request that the City Commission concur with the
findings of the Housing Board of Appeals that the structures located at 1253 Calvin
(tabled from last meeting), 1032 Wood, 509 Adams, and 424 Orchard are unsafe,
substandard, public nuisances 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.
            1. 1253 Calvin
CASE# & PROJECT ADDRESS: #01-37-1253 Calvin, Muskegon, Ml
LOCATION AND OWNERSHIP: This structure is located on Calvin between Roberts
and Creston and is owned by Elizabeth Klein.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted on
7/23/0 l and an interior inspection was conducted 8/21 /0 l. A Notice and Order to
repair was issued 8/2/01. The case was heard by the HBA on 9/6/01 and the case
was tabled for 60 days at that time. The case was heard again 12/6/01 and the
owner was again granted 60 days to complete the exterior repairs. On 6/6/02 the
HBA granted 120 days to complete the exterior repairs. On 10//7 /02 the HBA
declared the property substandard and dangerous. On July 22,2003 the City
Commission tabled the case for 14 days to allow an inspection to be conducted
for an update on the status of repairs. The report from the inspectors is that no
progress has been made since their last inspection.
OWNER CONTACT: Owner appeared before the City Commission at their July 22,
2003 meeting. At that time the case was tabled until the August 12, 2003 meeting
in order to complete an interior inspection. This inspection took place on July 28,
2003 and noted that no permits have been taken for interior repairs. The roof
structure and electrical system have not been completed. Although the exterior
appears to be improved, the structure is not habitable at this time.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: General Funds
STATE EQUALIZED VALUE: $16,200
ESTIMATED COST TO REPAIR: $10,000
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Spataro, second by Commissioner Larson to concur with
the Housing Board of Appeals to demolish 1253 Calvin St. and have staff obtain a
bid for the demolition and have the Mayor and Clerk execute the contract.
ROLL VOTE: Ayes: Buie,      Gawron,    Larson,   Schweifler,   Shepherd,   Spataro,
           Warmington
            Nays: None
MOTION PASSES
            2. 1032 Wood
CASE# & PROJECT ADDRESS: #02-46-1032 Wood, Muskegon, Ml
LOCATION AND OWNERSHIP: The structure is located on Wood between Ada and
Apple and is owned by Dean Pranger.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted on
9I 6/02 and the notice and order to repair or remove was issued 11 /25/02. On
2/6/03 the HBA declared the structure substandard and dangerous. On 5/2/03 an
interior inspection was conducted with a potential buyer. He was given a copy of
the inspection report and was in contact with the building inspector and director.
There has been no contact since May 2003.
OWNER CONTACT: Dean Pranger has not contacted the Inspection Department
at all. The only certified mail he has accepted is the Notice and Order to repair or
remove.
FINANCIAL IMPACT: CDBG
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $16, l 00
ESTIMATED COST TO REPAIR: $8,000 plus the cost to repair any interior defects.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
            3. 509 Adams
CASE# & PROJECT ADDRESS: #03-18-509 Adams, Muskegon, Ml
LOCATION AND OWNERSHIP: This structure is located on Adams between Marshall
and Langley in the Jackson Hill neighborhood and is owned by the State of
Michigan.
STAFF CORRESPONDENCE: A dangerous building exterior inspection was
conducted 3/19/03 and Notice and Order to repair or remove was issued 3/21 /03.
There has been no interior inspection. On 6/5/03 the HBA declared the structure
substandard and dangerous.
OWNER CONTACT: There has been no contact.
FINANCIAL IMPACT: CDBG
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $0 (state owned since 2001)
ESTIMATED COST TO REPAIR: $8,000 not including interior repairs.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
            4. 424 Orchard
CASE# & PROJECT ADDRESS: #03-02-424 Orchard, Muskegon, Ml
LOCATION AND OWNERSHIP: This structure is located on Orchard between Wood
and Williams and is owned by the State of Michigan.
STAFF CORRESPONDENCE: A        dangerous building inspection was conducted on
4/18/03 with the housing and   building inspector. A Notice and Order to repair or
remove was issued 4/23/03      and on 6/5/03 the HBA declared the structure
substandard and dangerous.      The structure has recently gone back to the state
for back taxes.
OWNER CONTACT: There has been not contact.
FINANCIAL IMPACT: CDBG
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $8,700
ESTIMATED COST TO REPAIR: $12,000
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Spataro, second by Commissioner Gawron to concur
with the Housing Board of Appeals decision to demolish 1032 Wood St., 509 Adams
St., and 424 Orchard St,, and direct staff to obtain bids for the demolitions and
   have the Mayor and Clerk execute the contract.
   ROLL VOTE: Ayes: Warmington,    Buie, Gawron,    Larson, Schweifler, Shepherd,
              Spataro
              Nays: None
  MOTION PASSES
2003-65 CLOSED SESSION: To discuss pending litigation
  Motion by Commissioner Schweifler, second by Vice Mayor Buie to go into Closed
  Session at 6:44pm.
   ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington,
              Buie
              Nays: None
  MOTION PASSES
  Motion by Commissioner Schweifler, second by Commissioner Gawron to go into
  open session at 7:30pm.
   ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington,      Buie,
              Gawron
              Nays: None
  MOTION PASSES
  The Regular Commission Meeting for the City of Muskegon was adjourned at
   7:31 PM.
                                         Respectfully submitted,




                                         Gail Kundinger, Mfl,~C
                                                                      \g   ' bl
TO:           Mayor and City Commission

FROM:          City Clerk

DATE:         August 5, 2003    (

RE:           Community Relations Committee Recommendations




At the August 4, 2003 Community Relations Committee meeting the following
was recommended by the committee members:

1.      Removal of Toya Davis from the Land Reutilization Committee.
2.      Appointment of Robert Hill to the Land Reutilization Committee.
3.      Acceptance of resignation of Pat Strum from the Public Relations
        Committee.
4.      Appointment of Bob Henry to the Public Relations Committee.


SUMMARY OF REQUEST: Concur with the Community Relations Committee
recommendations.
Date:     August12,2003
To:       Honorable Mayor and City Commissioners
From:     Gail Kundinger, City Clerk
RE:       Request to Fly the Mexican Flag




SUMMARY OF REQUEST: Latina's Working For The Future requests
permission to fly the Mexican Flag outside City Hall on Saturday,
September 13, 2003, in honor of Mexican Independence Day.



FINANCIAL IMPACT: None



BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION: Approval
LATINO'S WORKING FOR THE FUTURE
LA VILLITA
                                                               I    I   II

                                                       "I               \II I·nI1
                                                    l'I, ,,,




July 30, 2003


Muskegon City Hall
933 Terrace Street
Muskegon, MI 49442

Dear Friend,

Mayor Steve Warmington and Muskegon City Commissioners,
   Latino's Working For the Future is again requesting permission from the City of
Muskegon to raise the Mexican Flag on Saturday the thirteenth day of September as the
sixteenth falls on a Tuesday. As in past years we do this in honor of Mexican
Independence Day.
   We thank you in advance and cordially invite you and the honorable members of the
City Commission to join with us on this day. We hope to hear from you in the
forthcoming days so we can plan accordingly

Sincerely,




Connie Navarro




                                                                   RECEIVED
                                                                        AUG         1 2003
                                                                             MUSKEGON
                                                                   CITY MANAGER'S OFFICE
                                 CITY OF MUSKEGON

                             FLAG PLACEMENT POLICY

                                        2001-139 ( b)
A.     Purpose

       To provide a procedure to consider requests to the City to fly flags on City owned
       or occupied property or facilities (herein "City property"). The flying of the
       United States of America, State of Michigan, the County of Muskegon and the
       City of Muskegon flags are exempt (except as set forth herein), from this policy
       and can be flown on City property or at City property by authorized City
       employees or officials.

B.     City Control of Flag Placement.

       Except as permitted by the City Commission or City staff members with
       authority, no flag, including "exempt" flags shall be placed on City property by
       any person except authorized city employees or officials. The procedures and
       standards set forth in this policy document shall govern the City's decision to
       permit or deny permission to have a particular flag flown or displayed on City
       property.

       The flying of flags on City property is peculiarly within the prerogatives of the
       City. Flags which are permitted to be flown on City property have the effect of
       representing to the community the City's support for the organization or point of
       view which is represented by the flag. The City reserves the right to refuse or
       terminate the flying of any flag for the reason that unintended endorsements by
       the City shall not result from this policy. It is this concern, together with the
       City's acknowledgement that the flying of flags is a form of speech, which shall
       guide the City in administering this policy.


C.     Review Process. The Procedure.

       1.     Request

              A request to fly a flag(s) must be submitted in writing to the City Clerk at
              least 30 days prior to when the flag is proposed to be raised. The request
              shall state in writing:

                      a.. All the reasons for the request.

                      b. Describe and display the flag, which shall not be changed in the
                      event permission is given.




G:\EDSI\F!LES\00I00\085011\RESOLUT\9V6160.DOC
                        c. State the name, address, and the names and addresses of all the
                        officers, of the organization submitting the request. Indicate the
                        legal form of organization, and the name and address of the contact
                        person who shall be responsible for the flag's condition and
                        presentation.

                        d. State the period for which the flag is requested to be flown.

                        e. The desired location. (Locations shall be determined by the
                        City based on availability and ability to display the flag without
                        infringing on the display by others, including the City itself).


        2.      City Staff Review

               The City staff will review the request and make a recommendation to the
               City Commission based on the following:

                       a. Appropriateness of the organization and the flag. Flags which
                       support illegal activities, take political positions or support
                       candidates for any office, advocate against City policies or involve
                       obscene language, symbols or activities are prohibited.

                       b.   The number of other flags already approved.

                       c.   The availability of locations.

                       d. The time period during which the flag shall be permitted to be
                       flown on City property. No permission shall be given for
                       permanent flag placement. In the event an applicant desires a
                       longer time period than that granted, renewal applications shall be
                       submitted at least 30 days before the end of the initial period in
                       order to afford the City Commission opportunity to decide on the
                       extension.

D.             City Commission Consideration and Decision.

               The City Commission will consider the request after the review and
               recommendation from City staff. The City Commission will consider the
               determination of City staff when making their decision as well as any
               other criteria they deem appropriate, to the extent that the criteria are
               legally and constitutionally supportable. In the event a request is denied by
               the Commission, a decision with the reasons set forth shall be adopted at
               the time of the refusal, and set forth in the minutes in writing as part of the
               motion (or resolution) adopted.




G:\EDSI\FILES\00100\085011 \RESOLU1\9V6 l 60.DOC
E.      Grant by City Commission; Location and Term

        Any request that is approved will be accomplished by City Commission
        resolution that will include the specific location(s) where the flag(s) can be flown
        and the time period for which the request is granted.

        Policy regarding term of the permission: No permanent permission shall be
        granted. The City's policy is to favor shorter term flying periods to accommodate
        a reasonable number of requests and avoid unintended endorsements which can
        arise not only by the message of the flag itself, but also by the duration a flag is
        flown other than flags of the City, County, State and the United States.

        Applicants are encouraged to apply for periods of display which are shorter, as
        stated above. However, the Commission will consider periods up to one year for
        flags which represent long term or continuing organizations, activities or public
        (non-political) concerns. More typical will be permission granted for periods of a
        week to thirty days.

       The term of any permission granted shall be subject to the City's determination to
       fly another flag in the location of and instead of the permitted flag in a time of
       emergency or of critical public concern.


F.     Flag Maintenance

       It shall be the responsibility of the requesting organization to maintain the flag(s)
       in good repair. Failure to do so will result in revocation of the permission to fly
       the flag(s). The City shall afford access to the flag for repair and maintenance.

G.     Revocation

       The City Commission shall have the sole discretion to revoke the permission to
       fly a flag permitted under this policy for whatever reasons they deem appropriate
       and which are legally and constitutionally supportable. Claims made by any
       person to whom permission has been granted concerning the import of the City's
       permission to fly a flag which are not intended or acceptable to the City shall be,
       without limitation, grounds for revocation without notice.

       Any revocation of permission before the term permitted has expired shall be
       accomplished by the City removing the flag and notifying the applicant to come
       to the City's offices to retrieve the flag or flags removed. In such case the City
       shall indicate by written memorandum delivered to the applicant the reason(s) for
       revocation.



G:IEDSIIFILES\0010010850 l l \RESOLUT\9V6160.DOC
                                   2001-139(b)
                                 CERTIFICATION


This policy was adopted at a regular meeting of the City Commission, held on November
27, 2001. 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~,~~~a~il=~~--K-9-'-'d~in~~-er-,-C~rt~~-C-le-r4~~P!~·----
Date: August 12, 2003
To:       Honorable Mayor and City Commissioners

From: Finance Director
RE:       Healthcare Provider - Retirees Over 65



SUMMARY OF REQUEST: For several years the city has offered retirees over
age 65 the option of receiving a $50.00 per month stipend towards the cost of a
commercially-provided Medigap policy. This was done in response to complaints
that the city's regular healthcare coverage for retirees over 65 was inadequate. The
City works with a third party service provider (MagnaCare) to find the best Medigap
policy values for retirees and, also, to coordinate premium billings. MagnaCare is
recommending that the current provider (Oxford Life) be replaced with Hartford Life
Insurance effective October 1, 2003 (see attached). The documents the city needs
to sign to effect this change have been reviewed by the City Attorney.

FINANCIAL IMPACT: No direct financial impact on the city. The monthly stipend
remains $50.00.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: Authorize Mayor and Clerk to sign the
necessary documents.

COMMITTEE RECOMMENDATION: The Committee of the Whole will meet
                 th
Monday, August 11 to further discuss this item.




9/18/97
                                   IMPORTANT
                   OXFORD LIFE INSURANCE COMPANY

Last October, Oxford Life Insurance Company defaulted on a $100,000,000 loan and
their parent company AMERCO could not assist them with the payments. Since then
Oxfords rating has been lowered from A- (Excellent) to C+ (Marginal) and AMERCO
has filed Chapter 11 Bankruptcy.

Although Oxford states your coverage is safe and medical bills will be paid, MagnaCare
Group feels it is in your best interest to use another healthcare provider to avoid the
possibility of some excessive rate increases and/or delays in claim payments.

                  INDIVIDUAL MEDICARE SUPPLEMENT

Several retirees have individual Medicare Supplement Plans with different carriers that
have been experiencing some very large increase the past few years. Soon the carriers
will be announcing their 2004 increases, which we expect will exceed 15%. Again,
MagnaCare Group thinks it is in the best interest of moving those retirees into a true
group retiree medical plan.

                 HARTFORD LIFE INSURANCE COMPANY

MagnaCare Group has secured coverage for you with Hartford Life Insurance Company,
a leader in Senior Medical with an A++ (Superior) rating.

You have been automatically enrolled with Hartford. You will receive your new ID Card
and Certificate of Coverage prior to the effective date. On the reverse side of this letter is
a more detailed explanation about premium or procedural changes and your effective
date.

We will use one plan design for all retirees. All Medicare Approved expenses and excess
charges will be covered by the Plan (equivalent to Plan F). Then starting January I, 2004
you will be responsible to pay the $100 Medicare Part B deductible each year. This is not
a standard Medicare Supplement Plan Design. We made this change because we were
able to get a greater premium discount than the $100 deductible.

                           MAGNACARE GROUP INC.

MagnaCare Group will continue to administer your retiree health plan. If you have any
questions, please call our offices at 1-800-278-2323.
                                EFFECTIVE DATE

Your coverage with Hartford becomes effective October 1, 2003.

You will receive your ID Card and Certificate of Coverage prior to October 1, 2003.

Please remember to show you doctor your new Hartford Identification Card after October
1'\ Until then continue to use your Oxford ID Card.

With any conversion claim problems can occur especially if your doctor does not fill out
your claim form correctly. If you have any questions or encounter any problems please
call MagnaCare Group at 1-800-278-2323 and their customer service representatives will
assist you.

                             PRESCRIPTION DRUGS

If you have prescription drug coverage their will be no changes in plan design or
premiums at this time.

                              MONTHLY PREMIUM

Effective October 1, 2003 your new rate will be:


                             65-69             $114.88
                             70-74             $128.11
                             75-79             $146.95
                             80-84             $155.04
                              85+              $166.66

Rates will be increased 10.5% January 1, 2004 and will be reviewed every January 1st
thereafter.


                             65-69             $126.94
                             70-74             $141.56
                             75-79             $162.38
                             80-84             $171.32
                              85+              $184.16
                                          PARMENTER O'TOOLE
                                                              Allomeys at law
John M. Briggs, Ill
Michael L. Rolf                                                                                             Scott R. Sewick
George W. Johnson                    175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786   Scott M. Knowlton
W. Brad Groom                                                                                               Jeffery A. Jacobson
Eric R. Gielow                              Phone 231.722.1621 • Fax 231.722.7866 or 231 .728.2206          Dawn M. Goodwin
John C. Schrier                                              www.Parmenterlaw.com                           Thad N. McCollum
Chrislopher L. Kelly
                                                                                                            O/Ccu11scl
Linda S. Kaare
                                                                                                            Thomas J. O'Toole
James R. Scheuerle
                                                                                                            Eric J. Faun
Philip M. Steffan
                                                                                                            Michael M. Knowlton
William J. Meler
Keith L. McEvoy                                                                                             George A. Parmenter, 1903-1993
Anna Urick Duggins




      August 7, 2003

     Timothy J. Paul
     City of Muskegon
     933 TeITace
     Muskegon,11!49443-0536

      Re:          Retiree Health Plan

      Dear Mr. Paul:

      We have reviewed the revised documents that you forwarded regarding the City of Muskegon's
      proposed retiree health plan. According to your discussions with the policy representative, the
      "Participation Agreement" that the City was initially requested to sign is no longer required.
      Therefore, we reviewed the "Acceptance Form" which was revise to remove various references
      to a "Trust Agreement".

      The only revision we suggest to the Acceptance Form is to add an additional line on the
      signature page so that the Mayor and Clerk for the City may both sign the documents.
      Othe1wise, the document is satisfactory to cover the terms proposed to you by the policy
      representative and should be submitted the City Council for their approval of the agreement. If
      you have any questions, please contact me.




                   Jacobson
         i ect: 31. 722.5405
               ], 722. 7866


      Enclosures




      G:\EDSI\FILES\00100\1 398\LTR\B25917.DOC
                 Commission Meeting Date: August 12, 2003
                                                             lD\
                                                        ~- J/)
Date:         July 24, 2003
                                                   'JrP
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Amendment to the "Policy for Acquisition and Disposition of
              Residential Properties"


SUMMARY OF REQUEST:

Due to several situations that have arisen in the past few months regarding illegal
property splits due to foreclosure, staff has worked with the City Attorney to develop
language to address this issue. The language is proposed to be an amendment to the
"Policy for Acquisition and Disposition of Residential Properties".

FINANCIAL IMPACT:

None.

BUDGET ACTION REQUIRED:

None.

STAFF RECOMMENDATION:

To approve the amendment to the policy and have the Mayor and City Clerk sign the
resolution.

COMMITTEE RECOMMENDATION:

The Land Reutilization Committee and Legislative Policy Committee recommend
approval of the request.




7/24/2003
                                               RESOLUTIONNO. 2003-                       61   (e)

                                       MUSKEGON CITY COMMISSION

RESOLUTION TO ADOPT AN AMENDMENT TO THE "POLICY AND PROCEDURE FOR
       ACQUISITION AND DISPOSITION OF RESIDENTIAL PROPERTIES"

WHEREAS, the City of Muskegon owns many unbuildable lots and wishes to sell these lots to
adjoining property owners to expand their yards, and;

WHEREAS, foreclosure or tax reversion may cause an illegal lot split to occur, and;

WHEREAS, the City of Muskegon wishes to regain ownership of these unbuildable lots should
foreclosure or tax reversion occur;

NOW, THEREFORE, BE IT RESOLVED that the City Commission hereby adopts the
following policy amendment to assure reversion of these lots to the City of Muskegon:

(to be added under II., B)

                    4. For buildable lots, deeds issued by the City will be conditional. A reverter
                       clause will be included to require the buyer to commence construction within
                        18 months of the date of purchase, or the property will revert to the City.
                    5. For non-buildable lots, the property shall be offered to adjoining property
                       owners only. The City Assessor will be requested to join the non-buildable
                       lot to the adjoining property and a single tax parcel identification number
                       be provided. A reverter clause will be included in the deed so that if the
                       buyer/adjoining property owner loses the adjoining property due to
                       foreclosure or non-payment of taxes, the non-buildable lot shall revel't to
                       the City. At the point in time when any lein covers both p"rcels or there are
                       no leins on eithel' parcel, the property ownel' may l'equest and the City shall
                       agl'ee to W{live and tel'minate the reverter clause.

Adopted this 12th day of August, 2003.

          Ayes: 7

          Nays: 0

          Absent: o




                                                                                 Gail A. Kundinger, MMC
                                                                                 City Clerk

O:\Planning\COMMON\Property\Policy and Procedures\policy amendment 8- 12 -03 resolution.doc
                                  CERTIFICATION




This resolution was adopted at a regular meeting of the City Commission, held on
August 12,      2003 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
                                               'J.Oo3 ,
                                                        eflP\   p
                 Commission Meeting Date: August 12, 2003




Date:         August 4, 2003
To:           Honorable Mayor and City Commiss~                 rs
From:         Planning & Economic Development
RE:           Vacation of a portion of McLaren St.


SUMMARY OF REQUEST:

Request for the vacation of a portion of McLaren St., north of Wesley Ave.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends vacation of the portion of McLaren St., with the conditions listed in
the first attached resolution, and to allow the Mayor and Clerk to execute the second
attached resolution once those conditions have been met.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended the vacation, with the conditions listed in the
attached resolution . The vote was unanimous with T. Johnson and T. Harryman
absent.
-0
                                      Staff Report [EXCERPT]
                                       CITY OF MUSKEGON
                                     PLANNING COMMISSION
                                        SPECIAL MEETING
                                             July 28, 2003


Case 2003-22: Request to vacate the 274 linear feet of McLaren St. north of Wesley Ave.,
by the Sterling Group (tabled).


UPDATE
Staff has been working with Sterling Group for the past several months on the possible vacation
of McLaren St., which was tabled by the Planning Commission at their June 25 Special Meeting.
A meeting was held on July 1. In attendance were the City Manager, Zoning Administrator,
City Engineer, Fire Marshal, City Attorney and a representative from the Sterling Group. The
discussion centered on the issues brought up at the special Planning Commission meeting.
It was determined that the only portion of street that is absolutely necessary to be vacated is the
portion of McLaren, which is south of the proposed Sumner St. extension. Sterling has provided
a legal description for that portion of street. The vacation request will only address that
description.
Sterling absolutely requires that the City Commission vacates the portion of street before July
31st or they will not pursue the project. Staff and the Planning Commission have been hesitant to
vacate a street without some form of guarantee that the project will proceed. A letter was
prepared by City Attorney to Sterling Group giving two different options for vacating the street
(see attached letter). After further discussion between Sterling Group and the City Attorney, it
was determined that Option 2 was the prefe1Ted option, with two changes. These changes are
minor and help protect the City's concerns. The changes are shown in italics in the attached
letter.
Staff recommends approval of this request, provided that all the conditions listed in the proposed
motion below are met.


MOTION FOR CONSIDERATION
I move that the vacation of a portion of McLaren St., as described in the attached legal
description, be recommended to the City Commission for (approval/denial) based on the
following conditions (only if approved):

1. The Planned Unit Development for the proposed development by the Sterling Group is
   approved by the City Commission.
2. All units in the proposed development will be fire suppressed, as agreed to by the Sterling
   Group in their 7/9/03 letter.



City of Muskegon Planning Commission - 7/28/03                                                    1
3. The fire hydrants must comply with International Fire Code Appendix C for placement and
   amount.
4. The effective date of the vacation will be when the following are completed (as agreed to by
   the Sterling Group in their 7/9/03 letter):
    a. The pulling of building permits and issuance of certificates of occupancy.
    b. Plans are presented and approved by City staff for the construction of the proposed
       Sumner Street and reconstruction of McLaren Street.
    c. Posting a bond in the amount determined by the City to cover the cost of construction of
       proposed Sumner Street and reconstruction of McLaren Street north of proposed Sumner.
5. This vacation will reserve unto the City the right to retain and maintain all utilities in the
   vacated street.
6. A new 8" water main will be installed between Alva St. and the east line of the property
   owned by Findlay Group.
7. A new 8" water main will be constructed in McLaren St. from the newly proposed street to
   the nmth limits of the Findlay Group property.
8. A new street will be constructed and dedicated for public use or an easement provided for the
   would-be constructed water main.
9. The applicant will pmticipate in the construction of the 8" water main from the north limits
   of the Findlay Group property to Jackson St. in the amount not more than $30,000 with the
   rest of the Cost by the City.
10. The City will not maintain a sewer lift station should the proposed project require a station by
    design. Maintenance of a sewer lift station either individually or collectively will be the
    responsibility of the property owner.




City of Muskegon Planning Commission-7/28/03                                                        2
                              PARMENTER OTOOLE
                                              Attorneys at Law

                         175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786
                                Phone 231.722.1621 • Fax 231.722.7866or231.728.2206
                                                www.Parmenterlaw.com




July 2, 2003

                                                                VIA E-MAIL AND FIRST CLASS

Jeffrey Boss, P.E.
Sterling Development, LLC
3900 Edison Lakes Parkway
Suite 201
PO Box2008
Mishawaka, IN 46546-2008

Dear Mr. Boss:

It was a pleasure meeting you yesterday and discussing your project. I believe all of us, both city
staff and Sterling Development LLC, fully understand the concerns with the vacation of
McLaren Street, South of the proposed Sumner Street. As such, a recitation of concerns may not
be necessary. Sterling Development does not presently own the property subject to this
discussion. I recognize that some of the obligations may be performed by an entity other than the
Sterling Development LLC. In order to accomplish the desires of Sterling Development, LLC,
while protecting the City if development does not ultimately occur, two different options appear
viable:

Option One

The City and Sterling Development, LLC would agree as follows:

1.      City would immediately vacate McLaren Street South of the proposed Sumner Street.
        The partial vacation of McLaren Street South of the proposed Sumner Street will reserve
        unto the City the right to retain and maintain all utilities in the vacated street;

2.      A deed would be prepared and executed from the owner of the property, which I believe
        to be Sterling Development, LLC to the City of Muskegon for partially vacated portion of
        McLaren Street South of the proposed Sumner Street. The deed would be held in escrow
        by an appropriate title company. If construction of the development occurs and the
        proposed Sumner Street is open to traffic by December 31, 2004, the deed would be
        returned to the Sterling Development, LL. If the work is not completed and/or Sumner
        Street is not open for use by December 31, 2004 then the deed would be recorded;

City of Muskegon Planning Commission - 7/28/03                                                    3
3.      No physical change will be made to McLaren Street until Sterling Development, LLC
        posts a bond, or other alternative acceptable form of financial assurance, to cover the cost
        of construction of proposed Sumner Street and reconstrnction of McLaren Street North of
        proposed Sumner.

Option Two

The City and Sterling Development, LLC would agree as follows:

I.      City would immediately commit to vacate McLaren Street south of the proposed Sumner
        Street. The effective date of the vacation will be when the following are completed:

                a)      the pulling of building permits and issuance of certificates of occupancy;

                b)      plans are presented and approved by City staff for the construction of the
                        proposed Sumner Street and reconstruction of McLaren Street;

                c)      posting a bond or irrevocable letter of credit in the amount determined by
                        the City to cover the cost of construction of proposed Sumner Street and
                        reconstruction of McLaren Street Nmih of proposed Sumner.

2.      The vacation of McLaren Street south of the proposed Sumner Street will reserve unto the
        City the right to retain and maintain all utilities in the vacated street.

Recognizing the concerns of the City, if there are any other options that should be considered,
please feel free to communicate such.

Very truly yours,



John C. Schrier
Direct: 231.722.5401
Fax: 231. 728.2206
E-Mail Address: [email protected]

c:      Bryon Mazade
        Deb Steenhagen
        Mohammed Al-Shatel
        Major Metcalf




City of Muskegon Planning Commission - 7/28/03                                                       4
                                               CITY OF MUSKEGON

                                            RESOLUTION# 2003-61 ( f)

     RESOLUTION TO VACATE A PORTION OF A PUBLIC ALLEY UPON FULFILLMENT OF CERTAIN
                                     CONDITIONS

WHEREAS, a petition has been received to vacate McLaren Street south of the proposed Sumner Avenue, City
of Muskegon; and,

WHEREAS, the Planning Commission held a public hearing on Monday July 28, 2003, to consider the petition,
and, subsequently, conditionally recommended the vacation; and,

WHEREAS, due notice had been given of said hearing, as well as the August 12, 2003, City Commission
meeting to consider the recommendation of the Planning Commission.

NOW, THEREFORE, BE IT RESOLVED, that the City Commission deems ii advisable and will grant a vacation
of McLaren Street south of the proposed Sumner Avenue upon satisfaction of the following conditions:

                  1)      The pulling of building permits and issuance of certificates of occupancy for 40 units at
         The Village of Jackson Hill, at McLaren and Wesley Avenue;

                  2)       Plans are presented and approved by city staff for the construction of the proposed
                           Sumner Avenue and reconstruction of McLaren Street;

                  3)       Posting a bond in the amount determined by the City to cover the cost of construction
                           of proposed Sumner Avenue and reconstruction of McLaren Street North of proposed
                           Sumner.

BE IT FURTHER RESOLVED, that upon satisfaction of the conditions, the Mayor and Clerk shall execute the
attached Resolution vacating McLaren Street south of proposed Sumner Avenue.

BE IT FURTHER RESOLVED, that such vacation 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 interfere with the repair or maintenance of utilities in the easement,
public or private.

Adopted this 12th day of August, 2003.

         Ayes: Spataro, Warmington, Buie, Gawron, Larson,
                Schweifler, Shepherd

        Nays: None
        Absent: None
                                              CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City
Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular meeting held on August 12,
2003.



                                                                   Gail A Kundingar, MMC
                                                                   Clerk, City of Muskegon

PREPARED BY:
John C. Schrier
Parmenter O'Toole
175 W. Apple Avenue
P.O. Box 786
Muskegon, Ml 49443-0786
                                             CITY OF MUSKEGON

                                           RESOLUTION# 2003-61 ( f)

     RESOLUTION TO VACATE A PORTION OF A PUBLIC ALLEY UPON FULFILLMENT OF CERTAIN
                                     CONDITIONS

WHEREAS, a petition has been received to vacate McLaren Street south of the proposed Sumner Avenue, City
of Muskegon; and,

WHEREAS, the Planning Commission held a public hearing on Monday July 28, 2003, to consider the petition,
and, subsequently, recommended the vacation; and,

WHEREAS, due notice had been given of said hearing, as well as the August 12, 2003, City Commission
meeting to consider the recommendation of the Planning Commission, and

WHEREAS, the City Commission indicated a willingness to vacate McLaren Street south of proposed Sumner
Avenue upon satisfaction of certain conditions; and

WHEREAS, the following conditions have been satisfied:


                 1)       The pulling of building permits and issuance of certificates of occupancy for 40 units at
                          The Village of Jackson Hill, located at McLaren Street and
                          Wesley Avenue;

                 2)       Plans are presented and approved by city staff for the construction of the proposed
                          Sumner Avenue and reconstruction of McLaren Street;

                 3)       Posting a bond in the amount determined by the City to cover the cost of construction
                          of proposed Sumner Avenue and reconstruction of McLaren Street North of proposed
                          Sumner.


         NOW, THEREFORE, BE IT RESOLVED, that the City Commission deems it advisable to vacate and
discontinue said portion of McLaren Street south of the proposed Sumner Avenue legally described as:




That portion of McLaren St. (33 feet in width) described as: BEGINNING at the intersection of the North right-of-
way line of Wesley Avenue and the west right of way line of McLaren Street; thence north 151.39 feet along the
West right-of-way line of McLaren Street; thence East to the East right-of-way of McLaren Street; thence South
151 .48 feet along the East right-of-way line of McLaren Street to the North right-of-way line of Wesley Avenue;
thence West to the point of beginning; all in Lot 10, Block 20 of the Revised Plat of 1903 of the City of
Muskegon. Containing 0.1147 acres of land.
BE IT FURTHER RESOLVED, that the City Commission does hereby declare 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 interfere with the repair or maintenance of utilities in the easement,
public or private.

Effective this ...!1._ day of_, A)ill_U st_ _, 2003.



                                                                 By-------------
                                                                   Stephen J. Warmington, Mayor
                                                                 and _ _ _ _ _ _ _ _ _ _ _ __
                                                                          Gail A. Kundinger, MMC, Clerk


                                                  CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution authorized by the City
Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular meeting held on August 12,
2003.



                                                                          Gail A. Kundinger, MMC
                                                                          Clerk, City of Muskegon




PREPARED BY:
John C. Schrier
Parmenter O'Toole
175 W. Apple Avenue
P.O. Box786
Muskegon, Ml 49443-0786
                                                      ;,co?,- le, I -       (~j
DATE:          August 5, 2003

TO:            Honorable Mayor and City Commissioners

FROM:          Robert B. Grabinski, Director of Inspection Services

RE:            Consent Agreement Policy


SUMMARY OF REQUEST: This is to request the city commission approve the attached
Consent Agreement Policy. This policy will allow staff to enter into a consent agreement
with a property owner without taking the agreement to the commission for approval.
This will be utilized by staff in an effort to expedite the approval allowing the property
owner to begin the repairs ordered.

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

CITY COMMISSION RECOMMENDATION: The commission will consider tJµs item
at its meeiing held on Tuesday, August 12, 2003.
                                           2003- 61 (g)




                                      i11Jil
                         CONSENT AGREEMENT POLICY

In an effort to expedite routine consent agreements in cases where the agreement does not
arrive at the time appropriate for commission approval the following policy is
implemented. This will allow the property owner to begin repairs and not have a wait of
an additional two weeks when the matter is a routine and customary consent agreement.
It is intended that this policy is a guideline allowing for discretion by the Director of
Inspections, City Manager, and City Attorney in approving said agreement.

The following guidelines are to be met prior to granting approval without commission
action:

   1. There is a specific date by which the property owner and/or the contractors must
      pull all necessary permits. This date is between 10-14 working days of the
      documents approval with a specific date listed; i.e. "on or before July 1, 2003 at
      5:00 PM".

   2. A specific date where all work must be completed, inspected, and approved. This
      date is arrived at after a review of the deficiencies, the amount of work required,
      and the difficulty of repairs. Other factors may include consideration of past
      scheduling problems and/or discussions held with the property owner. It is
      intended that the time given is adequate to complete the requirements, but not
      allow the repairs to linger without resolution.

   3. The property owner is required to escrow $5,000.00 with the City of Muskegon.
      This money is to be used for demolition if the consent agreement terms are not
      met.

   4. That all fees, fines, taxes, and other charges owed to the City of Muskegon are
      paid on or before the "permit date" and prior to issuance of the permit.

   5. That this agreement is the final order of the court for this case.

   6. If the basic terms listed above are met the City Commission authorizes the City
      Manager and the Director of Inspections with assistance from the City Attorney to
      enter into the agreement.

   7. Any consent agreements approved in this manner will be presented to the
      commission at their next meeting as part of the city manager's report.
   8. Deviations from the basic format or staff concerns will result in the consent
      agreement being placed on the closed session agenda at the next regularly
      scheduled meeting of the Muskegon City Commission.

Adopted:             August 12, 2003

Last Update:

Approved By:
                                             CITY OF MUSKEGON

                                           RESOLUTION# 2003-61 ( f)
                                                            ~J:ET
     RESOLUTION TO VACATE A PORTION OF A PUBLIC:~ UPON FULFILLMENT OF CERTAIN
                                     CONDITIONS

WHEREAS, a petition has been received to vacate McLaren Street south of the proposed Sumner Avenue, City
of Muskegon; and,

WHEREAS, the Planning Commission held a public hearing on Monday July 28, 2003, to consider the petition,
and, subsequently, recommended the vacation; and,

WHEREAS, due notice had been given of said hearing, as well as the August 12, 2003, City Commission
meeting to consider the recommendation of the Planning Commission, and

WHEREAS, the City Commission indicated a willingness to vacate McLaren Street south of proposed Sumner
Avenue upon satisfaction of certain conditions; and

WHEREAS, the following conditions have been satisfied:


                  1)      The pulling of building permits and issuance of certificates of occupancy for 40 units at
                          The Village of Jackson Hill, located at McLaren Street and
                          Wesley Avenue;

                 2)       Plans are presented and approved by city staff for the construction of the proposed
                          Sumner Avenue and reconstruction of McLaren Street;

                 3)       Posting a bond in the amount determined by the City to cover the cost of construction
                          of proposed Sumner Avenue and reconstruction of McLaren Street North of proposed
                          Sumner.


         NOW, THEREFORE, BE IT RESOLVED, that the City Commission deems it advisable to vacate and
discontinue said portion of McLaren Street south of the proposed Sumner Avenue legally described as:




That portion of McLaren St. (33 feet in width) described as: BEGINNING at the intersection of the North right-of-
way line of Wesley Avenue and the west right of way line of McLaren Street; thence north 151.39 feet along the
West right-of-way line of McLaren Street; thence East to the East right-of-way of McLaren Street; thence South
151.48 feet along the East right-of-way line of McLaren Street to the North right-of-way line of Wesley Avenue;
thence West to the point of beginning; all in Lot 10, Block 20 of the Revised Plat of 1903 of the City of
Muskegon. Containing 0.1147 acres of land.
BE IT FURTHER RESOLVED, that the City Commission does hereby declare 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 interfere with the repair or maintenance of utilities in the easement,
public or private.

Effective this£(~ day of      #Jr,J     4()(/~




                                                  CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution authorized by the City
Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular meeting held on August 12,
2003.                                                                                          .   I
                                                                            L O-~~·
                                                                         Gail A Kundinger, MMC
                                                                         Clerk, City of Muskegon




PREPARED BY:
John C. Schrier
Parmenter O'Toole
175 W. Apple Avenue
P.O. Box786
Muskegon, Ml 49443-0786
                                                    .lD\   j)

      Commission Meeting Date:            August 12, 2003




Date:       August 5, 2003
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Approval of 2003 - 2004 Subrecipient and
            Community Housing Development Organization
            (CHDO) Agreements


SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign
all of the 2003-2004 approved agreements for the City's subrecipients
and CHDO's. The City Commission approved the funding for each of
the nonprofits last spring during the City's Consolidated Planning
process.
After the Mayor and Clerk sign the contracts, the CNS office will retain
one copy of our files and a copy will be supplied to the appropriate
nonprofit for their records.
FINANCIAL IMPACT: Funding will be allocated from the 2003-2004
CDBG and HOME programs.
BUDGET ACTION REQUIRED: None. The City Commission made
budgeting decision last Spring.

STAFF RECOMMENDATION: To direct Mayor and Clerk to sign
agreements.

COMMITTEE RECOMMENDATION: None needed.
                          CHDO AGREEMENT - 2003 - 2004


This CHDO AGREEMENT, made this 1st day of June, 2003, by and between the City of
Muskegon, Michigan, A Municipal Corporation, (hereinafter "Recipient") _ _ _ _ _ __
whose office is located at _ _ _ _ _ _ _ _ _, (hereinafter "CHDO")


WITNESS ETH:

       WHEREAS, CHDO will receive Community Development Block Grant
(CDBG/HOME) funds from the Recipient, in the amount of $____, to be used for the
following:



      WHEREAS, the parties wish to set fmth the conditions on which the funds are to be
made available;

       NOW THEREFORE, in consideration of the covenants herein contained, the parties do
mutually agree as follow:

      I.     GENERAL CONDITIONS

             1.     Services to be delivered are eligible activities as defined in Section 92.205
                    and 92.206 of HOME Administrative Regulations (CFR 92)

             2.     The CHDO certifies that the service is either:

                    a. a new service or
                    b. a quantifiable increase in the level of a service above the level which
                       has been provided by or in behalf of the applicant from local revenue
                       sources or State funds received by the applicant in the twelve (12)
                       calendar months prior to submission of the proposal, or
                    c. a continuation of a service that would othe1wise be decreased due to
                       events beyond the control of the CHDO.

             3.     The CHDO is incorporated as a non-profit organization in good standing
                    under Michigan Law.

             4.     The CHDO WatTants that a current copy of its charter (if applicable),
                    Articles of Incorporation and By-Laws are on file with the department of
                    Community and Neighborhood Services. The CHDO shall also keep a
                    current list of its board members, its officers and their addresses on file
                    with the Community and Neighborhood Services department.

                                                                                                1
               5.     By resolution, the CHDO's Board of Directors shall certify to the City a
                      responsible contact person, who shall be considered their representative in
                      all matters relating to this Agreement for communication and
                      administrative purposes.

Until further written notice from the CHDO, said contact person shall be:




II.    PERSONNEL

       1.     The CHDO shall maintain direct control of all personnel employed by it and to
              provide the necessary training and supervision of its employees in carrying out
              contracted programs. However, implementation of the "project" must meet the
              requirement and approval of Community and Neighborhood Services.

       2.     In all work made possible by or resulting from this agreement, affirmative action
              will be taken to insure that low income persons, particularly minorities and
              women, are given maximum opportunity for training and employment; and that
              minority business concerns located in the area, to the greatest extent feasible, are
              awarded sub-contracts when permitted by this Agreement (Section 3, CDP 135).

       3.     Incorporated by reference are Title VI of the Civil Rights Act of 1964, Executive
              Order 11246 and 0MB Circular A-102, Attachment O which relates to equal
              opportunity. Copies are available at the Community Development Office.

       4.     The CHDO (including its membership body, Board of Directors, committees, and
              paid and other volunteer staff) agrees that it will comply with City policies and
              procedures concerning equal opportunity, affirmative action, and non-
              discrimination in employment practices because of age, religion, race, color,
              national origin, sex, education association, marital status or physical limitation.


III.   SCOPE OF SERVICES

       The CHDO shall provide the services specified in Attachment "A", Scope of Services, in
       exchange for financial compensation detailed in Attachment "B".




                                                                                                2
IV.   COMPENSATION AND METHOD OF PAYMENT

      I.   The maximum amount which the CHDO may receive pursuant to this Agreement
           is$_ _ __

      2.   The CHDO warrants that its Board of Directors has approved a budget request to
           provide services detailed in this Agreement (attachment "B''). The budget total of
           $_____ , shall remain unchanged during the year unless amended as
           permitted in this Agreement. The CHDO may not, without City Commission
           approval, make transfer between categories not exceeding 10% of the overall
           budget total, or $2,000.00, or whichever is greater.

      3.   Upon approval of CHDO's request for payment, the CHDO shall be reimbursed
           for expenses within a maximum of twenty (20 days.)

      4.   To receive payments, the CHDO must complete and submit the following:

           a.     Request for Payment
           b.     Detailed Invoice for Actual Expenditures
           c.     Quarterly Performance Reports

      5.   All program income, received by the CHDO, (if any) shall be disbursed by the
           CHDO prior to request for payments from the Recipient. Program income
           resulting from the project will be handled in accordance with the requirements of
           24 CPR 570.503 applicable to CDBG Recipients and 24 CPR 92.503 for HOME
           CHDO's. All program income derived from the HOME activities by CHDO must
           be reinvested to the recipient (City) to the HOME Investment Trust Fund.

      6.   If at the end of the term of this Agreement there are unexpended portions of the
           contract amount set forth in this Agreement, the City may recapture said amount
           for reallocation to other purposes.

      7.   If CHDO fails to comply with terms specified in this Agreement or refused to
           accept and meet conditions imposed by the Department of Housing and Urban
           Development (HUD), the Recipient may immediately terminate payments to the
           CHDO and recover any funds it has advanced. In the event of the inability of
           CHDO to perfotm or complete the project, or termination of the Agreement by the
           City Commission, Recipient will pay only invoices for work performed or
           satisfactorily completed.

      8.   The Recipient shall not be held liable for expenditures or obligations incurred in
           excess of the authorized total budget, nor shall the City be held liable for
           expenditures or obligations for ineligible cost pursuant to Section 570.200 and
           570.201 of the Housing and Community Development Act. And 92.206, 92.207
           and 92.208 ofNational Affordable Housing Act of 1990.

                                                                                            3
IV.   FINANCING AUDITS AND INSPECTIONS

      1.   The CHDO shall document the costs incurred with CDBG/HOME funds with the
           support of properly executed payrolls, time records, invoices, contracts, vouchers,
           receipts, or other official documentation that shows in proper detail the nature and
           propriety of charges. All such documents must be clearly identifiable and readily
           assessable during the term of the Agreement to City and HUD officials or their
           authorized representative for audit and examination as often as the City may deem
           necessary. Additionally, the CHDO agrees to securely maintain such documents
           for a period of three (3) years after termination of this Agreement.

      2.   The CHDO is to act within thirty (30) days after the signing of this Agreement to
           establish a procedure for its accounting operation that will not be inconsistent
           with Federal Management Circular A-102, Attachment G, and can be certified
           auditable by the Accountant for the Community Development Department. The
           auditable procedure shall insure that monies provided by the Community
           Development Block Grant HOME program can be separately traced from other
           funds of the CHDO.

      3.   The Recipient shall provide the CHDO with a copy of any account requirements
           established by HUD, and the CHDO shall thenceforth be responsible for
           compliance with such requirements.

      4.   Program Income earned by the Service Agency during the grant period shall be
           retained by the CHDO, and in accordance with 0MB Circulars A-102, A-110 and
           A-122 shall be:

           a. Added to funds committed to the project by the City and the CHDO to be used
              to further eligible program objectives as defined in the scope of services of
              this Agreement (see Attachment A).
           b. Deduct from the total project costs for the purposes of determining the net
              costs on which the Federal (CDBG / HOME) share of the cost will be based.

      5.   No CDBG I CHDO funds shall be disbursed under this Agreement by the CHDO
           or any others contracted by the CHDO unless those contracted are in compliance
           with City and HUD requirements with regard to fiscal matter and civil rights to
           the extent such requirements are applicable. The CHDO shall provide the
           Recipient with a copy of such contracts.

      6.   The CHDO shall provide proof of Bonding Insurance for all employees who
           handle funds.




                                                                                              4
V.    INSURANCE COVERAGE

      The CHDO shall indemnify, defend, and hold the Recipient, its officers, and the
      employees harmless with respect to any damage claim arising out of activities specified
      by this Agreement. This CHDO shall maintain for the entire period of this Agreement a
      valid policy of liability insurance naming the City of Muskegon (Recipient) as an insured
      paity with limits of not less than $300,000 per occurrence. The CHDO shall also
      maintain coverage during the Agreement period for Workers' Compensation as required
      by law. The CHDO shall submit proof of insurance and amount of coverage to the
      Community Development office prior to receiving any funds.



VI.   REPORTS, MONITORING AND EVALUATION

      1.     The CHDO agrees to cooperate fully with the Community and Neighborhood
             Services office, City and HUD officials, Citizen Committees, or any other
             individuals appointed by City Commission to evaluate and monitor the
             requirements and performance of programs financed with CDBG HOME funds.
             The CHDO agrees to provide to the same parties listed information and reports,
             oral or written, as may reasonably be required or requested during the te1m of this
             Agreement on mattes relating to prograin activities, performance, or contract
             compliance.

      2.     The CHDO agrees to complete and submit to the Community and Neighborhood
             Services Office in a timely maimer a Quarterly Performance Report.

The report forms are to be provided by the City. The CHDO agrees to collect and make
available to the Community and Neighborhood Services Department the following information
on its clients or prograin participants:

             a. Street (only) address of the client: (inside or outside City);
             b. Month and year of initial services;
             c. Number of services units rendered to each client served under this agreement;
             d. Age and sex of the client or participant;
             e. Whether the client or participant is the head of household;
             f. Whether client or participant is a member of a minority group (which group);
             g. Fainily income by fainily size (which will be indicated by checking an income
                range category);
             h. Whether client or participant head of household is handicapped;




                                                                                              5
              The information is to be collected on a "Client Card" or tabulation sheets
              provided by the City. The form will state that the client/patticipant information
              being collected is required in order for the CHDO to receive HOME funds from
              the City of Muskegon. Client information will be submitted quarterly with the
              Performance Repmts.

              Alternate systems of collecting data required in this section can be developed in
              consultation with the Community and Neighborhood Services Office. The
              Recipient retains the final right to approve any waiver of, or amendment to, this
              reporting requirement.


VII.   CONTRACT AMENDMENT

       That except as expressly provided elsewhere in this Agreement, any modifications or
       amendments to this Agreement may be made by mutual Agreement of the CHDO and the
       City Commission. It is expressly understood that this Agreement is subject to HUD
       HOME funding regulations. Should HUD act to make changes in regulations or suspend
       or terminate funding, such actions shall automatically amend this Agreement, if
       applicable.


VIII. ASSIGNABILTIY

       The CHDO shall not assign or transfer any interest in this Agreement without consent of
       the City Commission.


IX.    POLITICAL ACTIVITIES

       None of the funds, materials, prope1ty or services provided directly or indirectly under
       this Agreement shall be used for any partisan political activities, or to further the election
       or defeat of any candidate for office.


X.     CONFLICT OF INTEREST

       No employee, officer or agent of the Recipient shall participate in the award or
       administration of this Agreement if a conflict of interest real or apparent, would be
       involved, or any type of benefit financially, politically or asset wise. (i.e. obtain housing,
       illegal obtaining of contracts, etc.) See CFR24.92.356 and CFR 570.611.




                                                                                                   6
XI.    CITY'S RIGHT TO ENFORCE

       1.     The Community and Neighborhood Services Department may unilaterally
              suspend (on a temporary basis) or alter this Agreement, including the amount of
              funds allocated, for failure to comply with the terms and conditions of this
              Agreement or failure to comply with regulations for the U.S. Government, or
              directives of the Muskegon City Commission, some examples of which follow:

              a. Ineffective or improper use of the HOME funds:
              b. Failure to submit complete and correct performance or financial reports;
              e. Failure to provide services called for in the Scope of Services section within
                 the time frame stated: and
              d. If for any reason, the program cannot be completed.

       2.     The City Commission may unilaterally terminate this Contract for failure to
              comply with the terms and conditions of the Agreement, the regulations of the
              U.S. government, or directives of the Muskegon City Commission.

       3.     The Community and Neighborhood Services Department office shall provide
              reasonable notice to the CHDO before action is taken to suspend, alter or
              terminate this Agreement. Such notice shall include the reasons for the
              contemplated action and the CHDO shall be give a right to protest.

       4.     In the event this Agreement is terminated by the City Commission, the Ownership
              of all documents, equipment and properties acquired by HOME or Program
              Income funds shall revert to the Recipient with the decision for final disposition
              being left to the City Commission. However, the CHDO shall receive just
              compensation for any work satisfactorily completed prior to such termination.



XII.   PURSUIT OF ADDITIONAL RESOURCES

       The CHDO shall make bona fide efforts to secure funds and resources from other
       sources. Further, the CHDO shall cooperate with the Community and Neighborhood
       office, as requested, in its effmts to pursue additional or alternative funding. The CHDO
       shall report these efforts as part of the required Quarterly Performance Report.


XIII. TIME PERFORMANCE AGREEMENT TERM

       All services rendered hereunder shall be completed by May 31, 2004. This Agreement
       automatically terminates at that time unless specifically extended by the City
       Commission. All funds allocated which are unspent or encumbered for services under
       this Agreement shall be repaid to the City within fifteen (15) days of this date.

                                                                                              7
XIV. OTHER

    1.   That it will comply with all requirements applicable to HUD Block Grant
         Subrecipients set forth in the HOME Program Requirements contained in 24 Code
         of Federal Regulation Part 570. Such requirements pe1tain to, but are not limited
         to, compliance with 0MB Circular A-102, reports and information, audits and
         inspection, unearned payment, non-discrimination, disposition of real property,
         and miscellaneous grant administration requirements.

    2.   That should the CHDO utilize any portion of HOME funds for acquisition of
         property or relocation of individuals, families, or businesses as a result of a
         project involving federal financial assistance from HUD, as defined in regulations
         at 24CFR Part 42.79, all acquisition and/or relocation shall conform to the
         Uniform Relocation Assistance and Real Property Acquisition Policies Act of
         1970 (P.L. 91.646), and the regulations which implement the Act (24 CFR Prut
         42).

    3.   That except with respect to the rehabilitation of residential use for less than eight
         families, all contractors engaged under contracts in excess of $2000 for the
         construction prosecution, completion or repair of any building or work financed in
         whole or in part with assistance provided under this agreement, shall comply with
         HUD requirements pertaining to such Contracts and the applicable requirements
         of the regulations of the Department of Labor under 29 CFR Parts 2, 5, and 5a,
         governing the payment of wages and the ratio of apprentices and trainees to
         journeymen; provided, that if wage rates higher tan those required under such
         regulations are imposed by State or local law, nothing hereunder is intended to
         relieve the CHDO of its obligations, if any, to require payment of the higher rates.
         The CHDO shall require to be inserted in full in all such contracts subject to such
         regulations, provisions meeting the requirements of 29 CFR 5.5 and for such
         contracts in excess of$10,000, 29n CFR 5a.3.

    4.   The CHDO agrees to abide by all other Federal requirements not highlighted in
         this Agreement, but included in the regulations HOME Regulation available at the
         Community and Neighborhood Services Department, or other regulations
         subsequently supplied to the Subrecipeint.

    5.   That should the CHDO funding involve construction work, the CHDO
         contractors(s) agree to allow access to the City or its representative for inspection
         purposes.




                                                                                            8
       6.     Should the CHDO acquire any real or personal property with funds provided
              under this Agreement, it will not dispose of such prope1ty through sale or
              otherwise without written permission of Recipient. If property is disposed of
              without written permission, the proceeds shall be returned to the Recipient, and
              CHDO may be required to reimburse the Recipient for the Federal portion of
              participation in the project, subject to requirements in the Office of Management
              and Budget Circular A-102, Attachment N, Property Management Stands.


XV.    CONTRACT CLOSEOUT

       All contracts will be closed out in accordance with the procedures specified in 0MB
       Circular A-102, Attachment L, and P01tions of 0MB Circulars A-110 and A-122
       applicable to non-profit organizations.


In Witness Whereof, the parties hereto have caused this contract to be executed the day and year
above written.

Signed In the Presence Of:                         CITY OF MUSKEGON, MICHIGAN
                                                   A Municipal Corporation

Witness- - - - - - - - - -                         By:_ _ _ _ _ _ _ _ _ _ _ __
                                                        Steve Warmington, Mayor


Witness- - - - - - - - - -                         By: _ _ _ _ _ _ _ _ _ _ _ __
                                                         Gail Kundinger, City Clerk



                                                   Agency Name


Witness- - - - - - - - - ~                         By: _ _ _ _ _ _ _ _ _ _ _ __
                                                         It's President


Witness- - - - - - - - - - -                       By: _ _ _ _ _ _ _ _ _ _ _ __
                                                         It's Secretary




                                                                                               9
                                     ATTACHMENT "A"

                                    SCOPE OF SERVICES


CHDO's Name _ _ _ _ _ _ _ _ _ _ _ _ _ _~


SCOPE OF SERVICES

The Scope of Services section below lists the services to be provided under the terms of the
CHDO Agreement. This description shall establish the basis for the Community and
Neighborhood Services Office assessment of actual program accomplishments.

I.     Location and Hours

       The Service Agency shall provide the contracted services at the following locations(s):




II.    Eligible Clients

       The CHDO shall take affirmative action to insure that the primary beneficiaries of
       services rendered under this Agreement are eligible HOME clients. Eligible clients are
       defined as those persons of household who:

       a. Reside in the City of Muskegon and
       b. Have household incomes less than or equal to 80 percent of the median of the City.




                                                                                                 10
                                      ATTACHMENT "A"

                                     SCOPE OF SERVICES


III. Description and Quantity of Services to be provided

Describe and number each service to be provided separately. Include the job title of the person
(s) who will primarily render the service, the time span, which the service will be offered, if less
than the total contract yeaT, and how the service will be rendered.




Estimated quantity of service to be provided (number of persons to be served).




                                                                                                 11
                                      ATTACHEMENT "B"

                                            BUDGET

REVENUES

HOME FUNDS                                       $. _ _ __

     *Other (Specify Below)

 Program Income

TOTAL REVENUES                                   $

                                                  Total        Portion to be
                                                 Budgeted    Funded by HOME
EXPENDITURES

Salaries & Fringes                               $                 $

Consultant & Contract Services                   $                 $

Office Supplies                                  $                 $

Telephone                                        $                 $

Rent & Related Expenses                          $                 $

Equipment                                        $                 $

Office Furniture                                 $                 $

Travel                                           $                 $

Specific Assistance to Individuals               $                 $

Miscellaneous (Specify)

                                 $_ _ _ _
                                 $_ _ _ _
                                 $_ _ __

TOTAL EXPENDITURES                               $_ _ __           $ _ _ __

*LIST OTHER REVENURE SOURCES:

I.                               $_ _ __
2.                               $_ _ _ _
3.                               $_ _ __
4.                               $_ _ _ _
5.                               $_ _ _ _

                                                                               12
                        SUBRECIPIENT / CHDO AGREEMENT
                                   2003-2004


This SUBRECIPIENT/CHDO AGREEMENT, made this 1st day of June, 2003, by and between
the City of Muskegon, Michigan, A Municipal Corporation, (hereinafter "Recipient") and  whose offices are located at , (hereinafter "Subrecipient/CHDO"),

WITNESSETH:

     WHEREAS, Subrecipient/CHDO will receive Community Development Block Grant
(CDBG/HOME) funds from the Recipient, in the amount of$ , to be used for the following:




      WHEREAS, the parties wish to set forth the conditions on which the funds are to be
made available;

       NOW THEREFORE, in consideration of the covenants herein contained, the parties do
mutually agree as follow:

      I.     GENERAL CONDITIONS

             1.     Services to be delivered are eligible act1v1ttes as defined in Section
                    570.200 and 570.201 of the CDBG Administrative Regulations (CFR
                    570). And or Section 92.205 and 92.206 of HOME Administrative
                    Regulations (CFR 92)

             2.     The Subrecipient/CHDO certifies that the service is either:

                    a. a new service or
                    b. a quantifiable increase in the level of a service above the level which
                       has been provided by or in behalf of the applicant from local revenue
                       sources or State funds received by the applicant in the twelve (12)
                       calendar months prior to submission of the proposal, or
                    c. a continuation of a service that would otherwise be decreased due to
                       events beyond the control of the Subrecipient.

             3.     The Subrecipient/CHDO is incorporated as a non-profit organization in
                    good standing under Michigan Law.

                                              1
               4.     The Subrecipient/CHDO waITants that a current copy of its charter (if
                      applicable), Articles of Incorporation and By-Laws are on file with the
                      Department of Community Development. The Subrecipient shall also
                      keep a cuITent list of its board members, its officers and their addresses on
                      file with the Community Development Department.

               5.     By resolution, the Subrecipient's/CHDO's Board of Directors shall certify
                      to the City a responsible contact person, who shall be considered their
                      representative in all matters relating to this Agreement for communication
                      and administrative purposes.

Until further written notice from the Subrecipient/CHDO, said contact person shall be:




II.    PERSONNEL

       1.     The Subrecipient/CHDO shall maintain direct control of all personnel employed
              by it and to provide the necessary training and supervision of its employees in
              carrying out contracted programs. However, implementation of the "project"
              must meet the requirement and approval of Community and Neighborhood
              Services.

       2.     In all work made possible by or resulting from this agreement, affirmative action
              will be taken to insure that low income persons, particularly minorities and
              women, are given maximum opportunity for training and employment; and that
              minority business concerns located in the area, to the greatest extent feasible, are
              awarded sub-contracts when permitted by this Agreement (Section 3, CDF 135).

       3.     Incorporated by reference are Title VI of the Civil Rights Act of 1964, Executive
              Order 11246 and 0MB Circular A-102, Attachment O which relates to equal
              opportunity. Copies are available at the Community Development Office.

       4.     The Subrecipient/CHDO (including its membership body, Board of Directors,
              committees, and paid and other volunteer staff) agrees that it will comply with
              City policies and procedures concerning equal opportunity, affirmative action,
              and non-discrimination in employment practices because of age, religion, race,
              color, national origin, sex, education association, marital status or physical
              limitation.


                                                2
III.   SCOPE OF SERVICES

       The Subrecipient/CHDO shall provide the services specified in Attachment "A", Scope
       of Services, in exchange for financial compensation detailed in Attachment "B".


IV.    COMPENSATION AND METHOD OF PAYMENT

       I.    The maximum amount which the Subrecipient/CHDO may receive pursuant to
             this Agreement is $ ~ - - - - - -

       2.    The Subrecipient/CHDO watrnnts that its Board of Directors has approved a
             budget request to provide services detailed in this Agreement (attachment "B").
             The budget total of $ _ _ _ _ _, shall remain unchanged during the year
             unless amended as permitted in this Agreement. The Subrecipient/CHDO may
             not, without City Commission approval, make transfer between categories not
             exceeding 10% of the overall budget total, or $2,000.00, or whichever is greater.

       3.    Upon approval of Subrecipient's/CHDO request for payment, the
             Subrecipient/CHDO shall be reimbursed for expenses within a maximum of
             twenty (20 days.)

       4.    To receive payments, the Subrecipient/CHDO must complete and submit the
             following:

             a.     Request for Payment
             b.     Detailed Invoice for Actual Expenditures
             c.     Quarterly Performance Reports

       5.    All program income, received by the Subrecipient, (if any) shall be disbursed by
             the Subrecipient prior to request for payments from the Recipient. Program
             income resulting from the project will be handled in accordance with the
             requirements of 24 CFR 570.503 applicable to CDBG Recipients and 24 CFR
             92.503 for HOME CHDO's. All program income derived from the HOME
             activities by CHDO must be reinvested to the recipient (City) to the HOME
             Investment Trust Fund.

       6.    If at the end of the term of this Agreement there are unexpended portions of the
             contract amount set forth in this Agreement, the City may recapture said amount
             for reallocation to other purposes.

       7.    If Subrecipient fails to comply with terms specified in this Agreement or refused
             to accept and meet conditions imposed by the Department of Housing and Urban
             Development (HUD), the Recipient may immediately terminate payments to the

                                             3
           Subrecipient and recover any funds it has advanced. In the event of the inability
           of Subrecipient to perfonn or complete the project, or termination of the
           Agreement by the City Commission, Recipient will pay only invoices for work
           performed or satisfactorily completed.

      8.   The Recipient shall not be held liable for expenditures or obligations incurred in
           excess of the authorized total budget, nor shall the City be held liable for
           expenditures or obligations for ineligible cost pursuant to Section 570.200 and
           570.201 of the Housing and Community Development Act. And 92.206, 92.207
           and 92.208 of National Affordable Housing Act of 1990.


IV.   FINANCING AUDITS AND INSPECTIONS

      1.   The Subrecipient/CHDO shall document the costs incurred with CDBG/HOME
           funds with the support of properly executed payrolls, time records, invoices,
           contracts, vouchers, receipts, or other official documentation that shows in proper
           detail the nature and propriety of charges. All such documents must be clearly
           identifiable and readily assessable during the term of the Agreement to City and
           HUD officials or their authorized representative for audit and examination as
           often as the City may deem necessary. Additionally, the Subrecipient agrees to
           securely maintain such documents for a period of three (3) years after termination
           of this Agreement.

      2.   The Subrecipient/CHDO is to act within thirty (30) days after the signing of this
           Agreement to establish a procedure for its accounting operation that will not be
           inconsistent with Federal Management Circular A-102, Attachment G, and can be
           certified auditable by the Accountant for the Community Development
           Department. The auditable procedure shall insure that monies provided by the
           Community Development Block Grant HOME program can be separately traced
           from other funds of the Subrecipient.

      3.   The Recipient shall provide the Subrecipient/CHDO with a copy of any account
           requirements established by HUD, and the Subrecipient shall thenceforth be
           responsible for compliance with such requirements.

      4.   Program Income earned by the Service Agency during the grant period shall be
           retained by the Subrecipient, and in accordance with 0MB Circulars A-102, A-
           110 and A-122 shall be:

           a. Added to funds committed to the project by the City and the
              Subrecipeint/CHDO to be used to further eligible program objectives as
              defined in the seope of services of this Agreement (see Attachment A).
           b. Deduct from the total project costs for the purposes of determining the net
              costs on which the Federal (CDBG / HOME) share of the cost will be based.

                                            4
       5.     No CDBG/ CHDO funds shall be disbursed under this Agreement by the
              Subrecipient or any others contracted by the Subrecipient/CHDO unless those
              contracted are in compliance with City and HUD requirements with regard to
              fiscal matter and civil rights to the extent such requirements are applicable. The
              Subrecipient/CHDO shall provide the Recipient with a copy of such contracts.

       6.     The Subrecipient/CHDO shall provide proof of Bonding Insurance for all
              employees who handle funds.


V.     INSURANCE COVERAGE

       The Subrecipient shall indemnify, defend, and hold the Recipient, its officers, and the
       employees harmless with respect to any damage claim arising out of activities specified
       by this Agreement. This Subrecipient shall maintain for the entire period of this
       Agreement a valid policy of liability insurance naming the City of Muskegon (Recipient)
       as an insured party with limits of not less than $300,000 per occurrence. The
       Subrecipient/CHDO shall also maintain coverage during the Agreement period for
       Workers' Compensation as required by law. The Subrecipient/CHDO shall submit proof
       of insurance and amount of coverage to the Community Development office prior to
       receiving any funds.

VI.    REPORTS, MONITORING AND EVALUATION

       1.     The Subrecipient/CHDO agrees to cooperate fully with the Community and
              Neighborhood Services office, City and HUD officials, Citizen Committees, or
              any other individuals appointed by City Commission to evaluate and monitor the
              requirements and performance of programs financed with CDBG HOME funds.
              The Subrecipient agrees to provide to the same parties listed information and
              reports, oral or written, as may reasonably be required or requested during the
              term of this Agreement on mattes relating to program activities, performance, or
              contract compliance.

       2.     The Subrecipient agrees to complete and submit to the Community and
              Neighborhood Services Office in a timely manner a Quarterly Performance
              Report.


The report forms are to be provided by the City. The Subrecipient/CHDO agrees to collect and
make available to the Community and Neighborhood Services Department the following
information on its clients or program participants:




                                              5
               a. Street (only) address of the client: (inside or outside City);
               b. Month and year of initial services;
               c. Number of services units rendered to each client served under this agreement;
               d. Age and sex of the client or participant;
               e. Whether the client or participant is the head of household;
               f. Whether client or participant is a member of a minority group (which group);
               g. Family income by family size (which will be indicated by checking an income
                  range category);
               h. Whether client or participant head of household is handicapped;

               The information is to be collected on a "Client Card" or tabulation sheets
               provided by the City. The form will state that the client/participant information
               being collected is required in order for the Subrecipient to receive Community
               Development Block Grant HOME funds from the City of Muskegon. Client
               information will be submitted quarterly with the Performance Reports.

               Alternate systems of collecting data required in this section can be developed in
               consultation with the Community and Neighborhood Services Office. The
               Recipient retains the final right to approve any waiver of, or amendment to, this
               reporting requirement.

VII.   CONTRACT AMENDMENT

       That except as expressly provided elsewhere in this Agreement, any modifications or
       amendments to this Agreement may be made by mutual Agreement of the Subrecipient
       and the City Commission. It is expressly understood that this Agreement is subject to
       HUD Community Development Block Grant/HOME funding regulations. Should HUD
       act to make changes in regulations or suspend or terminate funding, such actions shall
       automatically amend this Agreement, if applicable.

VIII. ASSIGNABIL TIY

       The Subrecipient/CHDO shall not assign or transfer any interest in this Agreement
       without consent of the City Commission.

IX.    POLITICAL ACTIVITIES

       None of the funds, materials, property or services provided directly or indirectly under
       this Agreement shall be used for any partisan political activities, or to further the election
       or defeat of any candidate for office.




                                                 6
X.     CONFLICT OF INTEREST

       No employee, officer or agent of the Recipient shall paiticipate in the award or
       administration of this Agreement if a conflict of interest real or apparent, would be
       involved, or any type of benefit financially, politically or asset wise. (i.e. obtain housing,
       illegal obtaining of contracts, etc.) See CFR 24.92.356 and CFR 570.611.

XI.    CITY'S RIGHT TO ENFORCE

       1.     The community and Neighborhood Services Department may unilaterally suspend
              ( on a temporary basis) or alter this Agreement, including the amount of funds
              allocated, for failure to comply with the terms and conditions of this Agreement
              or failure to comply with regulations for the U.S. Government, or directives of the
              Muskegon City Commission, some examples of which follow:

              a. Ineffective or improper use of the Community Development Block
                 Grant/HOME funds:
              b. Failure to submit complete and c01Tect perf01mance or financial repo1ts;
              c. Failure to provide services called for in the Scope of Services section within
                 the time frame stated: and
              d. If for any reason, the program cannot be completed.

       2.     The City Commission may unilaterally te1minate this Contract for failure to
              comply with the terms and conditions of the Agreement, the regulations of the
              U.S. government, or directives of the Muskegon City Commission.

       3.     The Community and Neighborhood Services Department office shall provide
              reasonable notice to the Subrecipient before action is taken to suspend, alter or
              terminate this Agreement. Such notice shall include the reasons for the
              contemplated action and the Subrecipient shall be give a right to protest.

       4.     In the event this Agreement is te1minated by the City Commission, the Ownership
              of all documents, equipment and properties acquired by CDBG / HOME or
              Program Income funds shall revert to the Recipient with the decision for final
              disposition being left to the City Commission. However, the Subrecipient shall
              receive just compensation for any work satisfactorily completed prior to such
              termination.

XII.   PURSUIT OF ADDITIONAL RESOURCES

       The Subrecipient/CHDO shall make bona fide efforts to secure funds and resources from
       other sources. Fmther, the Subrecipient/CHDO shall cooperate with the Community and
       Neighborhood office, as requested, in its efforts to pursue additional or alternative
       funding. The Subrecipient shall report these efforts as part of the required Quarterly
       Performance Repo1t.

                                                7
XIII. TIME PERFORMANCE AGREEMENT TERM

    All services rendered hereunder shall be completed by May 31, 2004. This Agreement
    automatically terminates at that time unless specifically extended by the City
    Commission. All funds allocated which are unspent or encumbered for services under
    this Agreement shall be repaid to the City within fifteen (15) days of this date.

XIV. OTHER

    1.    That it will comply with all requirements applicable to HUD Block Grant
          Subrecipients set forth in the CDBG Program Requirements contained in 24 Code
          of Federal Regulation Part 570. Such requirements petiain to, but are not limited
          to, compliance with 0MB Circular A-102, reports and information, audits and
          inspection, unearned payment, non-discrimination, disposition of real property,
          and miscellaneous grant administration requirements.

    2.    That should the Subrecipient/CHDO utilize any portion of CDBG/HOME funds
          for acquisition of property or relocation of individuals, families, or businesses as a
          result of a project involving federal financial assistance from HUD, as defined in
          regulations at 24CFR Part 42.79, all acquisition and/or relocation shall conform to
          the Uniform Relocation Assistance and Real Property Acquisition Policies Act of
          1970 (P .L. 91.646), and the regulations which implement the Act (24 CFR Part
          42).

    3.    That except with respect to the rehabilitation of residential use for less than eight
          families, all contractors engaged under contracts in excess of $2000 for the
          constrnction prosecution, completion or repair of any building or work financed in
          whole or in part with assistance provided under this agreement, shall comply with
          HUD requirements pertaining to such Contracts and the applicable requirements
          of the regulations of the Department of Labor under 29 CFR Parts 2, 5, and Sa,
          governing the payment of wages and the ratio of apprentices and trainees to
          journeymen; provided, that if wage rates higher tan those required under such
          regulations are imposed by State or local law, nothing hereunder is intended to
          relieve the Subrecipient of its obligations, if any, to require payment of the higher
          rates. The Subrecipient shall require to be inserted in full in all such contracts
          subject to such regulations, provisions meeting the requirements of 29 CFR 5.5
          and for such contracts in excess of$10,000, 29n CFR 5a.3.

    4.    The Subrecipient/CHDO agrees to abide by all other Federal requirements not
          highlighted in this Agreement, but included in the Community Development
          Block Grant regulations HOME Regulation available at the Community and
          Neighborhood Services Department, or other regulations subsequently supplied to
          the Subrecipeint.



                                            8
       5.      That should the Subrecipient/CHDO funding involve construction work, the
               Subrecipient CHDO contractors(s) agree to allow access to the City or its
               representative for inspection purposes.

       6.      Should the Subrecipient/CHDO acquire any real or personal property with funds
               provided under this Agreement, it will not dispose of such property through sale
               or otherwise without written permission of Recipient. If prope1iy is disposed of
               without written permission, the proceeds shall be returned to the Recipient, and
               Subrecipient may be required to reimburse the Recipient for the Federal portion of
               pmiicipation in the project, subject to requirements in the Office of Management
               and Budget Circular A-102, Attachment N, Property Management Stands.

XV.    CONTRACT CLOSEOUT

       All contracts will be closed out in accordance with the procedures specified in 0MB
       Circular A-102, Attachment L, and Portions of 0MB Circulars A-110 and A-122
       applicable to non-profit organizations.

In Witness Whereof, the parties hereto have caused this contract to be executed the day at1d year
above written.

Signed In the Presence Of:                          CITY OF MUSKEGON, MICHIGAN
                                                    A Municipal Corporation

Witness,_ _ _ _ _ _ _ _ __                          By:._ _ _ _ _ _ _ _ _ _ _ __
                                                          Steve Warmington, Mayor


Witness._ _ _ _ _ _ _ _ __                          By:. _ _ _ _ _ _ _ _ _ _ _ __
                                                           Gail Kundinger, City Clerk



                                                    Agency Name


Witness,_ _ _ _ _ _ _ _ __                          By:. _ _ _ _ _ _ _ _ _ __
                                                           It's President


Witness,_ _ _ _ _ _ _ _ _ __                       By:. _ _ _ _ _ _ _ _ _ _ _ __
                                                          It's Secretary




                                               9
                                     ATTACHMENT "A"

                                    SCOPE OF SERVICES


Subrecipient N a m e - - - - - - - - - - - - - - - ~


SCOPE OF SERVICES

The Scope of Services section below lists the services to be provided under the terms of the
Subrecipient/CHDO Agreement. This description shall establish the basis for the Community
and Neighborhood Services Office assessment of actual program accomplishments.

I.     Location and Hours

       The Service Agency shall provide the contracted services at the following locations(s):




IL    Eligible Clients

      The Subrecipient/CHDO shall take affirmative action to insure that the primary
      beneficiaries of services rendered under this Agreement are eligible CDBG clients and
      HOME clients. Eligible clients are defined as those persons of household who:

      a. Reside in the City of Muskegon and
      b. Have household incomes less than or equal to 80 percent of the median of the City.




                                               10
                                       ATTACHMENT "A"

                                      SCOPE OF SERVICES


III. Description and Quantity of Services to be provided

Describe and number each service to be provided separately. Include the job title of the person
(s) who will primarily render the service, the time span, which the service will be offered, ifless
than the total contract year, and how the service will be rendered.




Estimated quantity of service to be provided (number of persons to be served).




                                                11
                                     ATTACHMENT "B"

                                        BUDGET

REVENUES

     CDBG/HOME FUNDS                           $_ _ __

     *Other (Specify Below)

     Program Income

TOTAL REVENUES                                 $_ _ __



                                                Total            Po1tion to be
                                               Budgeted   Funded by CDBG/HOME

EXPENDITURES

Salaries & Fringes                             $                $

Consultant & Contract Services                 $                $

Office Supplies                                $                $

Telephone                                      $                $

Rent & Related Expenses                        $                $

Equipment                                      $                $

Office Furniture                               $                $

Travel                                         $                $

Specific Assistance to Individuals             $                $

Miscellaneous (Specify)

                                 $
                                 $
                                 $

TOTAL EXPENDITURES                             $                $

*LIST OTHER REVENURE SOURCES:

I.                               $
2.                               $
3.                               $
4.                               $
5.                               $
                                          12
                                     hi   (J)
      Commission Meeting Date:            August 12, 2003




Date:       August 5, 2003
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Purchase of lot on Octavius


SUMMARY OF REQUEST: To approve the purchase of a lot on
Octavius from a Mr. James Douglas for $200.00. The property
description is City of Muskegon Revised Plat of 1903 South ½ Lot 10
Block 149. It is adjacent to 503 Octavius, a current City rehabilitation
project. If this is approved, the two lots will be combined in order to
create a lot in compliance with the City's current zoning guidelines.



FINANCIAL IMPACT: The $200.00 will be added to the cost of the
rehabilitation project at 503 Octavius.



BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION: To approve the purchase.



COMMITTEE RECOMMENDATION: None needed.
                                                   QUIT-CLAIM DEED


KNOW ALL MEN BY THESE PRESENTS: That J. James Douglas, a married man whose address is 4220 E.
Fruitport Road , Fruitport, MI

QUIT CLAIMS TO: City of Muskegon 933 Terrace Muskegon, Michigan 49443,

the following described premises situated in the City of Muskegon, County ofMnskegon, State of Michigan, to wit:

                    City of Muskegon revised plat of 1903 S ½ lot 10 Block 149

for the sum of Two Hundred and no/100 Dollars ($200.00)

This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).

Dated this 11.___ day of_A_u=g_u_s_t_ _ _ _ _ ., 2063_

                                                                   Seller

                                                                   By_ _ _ _ _ _ _ _ _ _ _ _ __
                                                                     J. James Douglas

STATE OF MICIDGAN
COUNTY OF MUSKEGON

         The foregoing instrumeut was acknowledged before me this __ day of _ _ _ _ _~ 200~


PREPARED BY:
John C. Schrier                                                    Notary Public, Muskegon County, Michigan
Parmenter O'Toole                                                  My commission expires: _ _ _ _ _ __
175 W. Apple Ave., P. 0. Box 786
Muskegon, Ml 49443-0786
Telephone: 616/722-1621
SEND SUBSEQUENT TAX BILLS TO: Grantee                     WHEN RECORDED RETURN TO: Grantee




O:\CNS\COMMON\WPDATA\HOME\Tax-Reverted\322 Arnity\quit-claim.doc
      Commission Meeting Date:           August 12, 2003




Date:      August 5, 2003
To:        Honorable Mayor & City Commission
From:      Community and Neighborhood Services
           Department
RE:        Approval of Contractor for Construction of House
           at 361 Oak.


SUMMARY OF REQUEST: To approve the contract with Holden
Construction 291 Washington, Muskegon Ml for the construction of the
house at 361 Oak for the price $116,083. The house at 361 Oak will
replace a former Turnkey 3 home that was recently demolished by the
City of Muskegon. The project at 361 Oak is under the Operation "At
Long Last" aka Shangaliwa program. After the house is completed, it
will be sold to a qualified first-time homebuyer as part of the City of
Muskegon's aggressive neighborhood revitalization efforts. The funding
for this project will be supplied from the City of Muskegon HOME funds
from the U.S. Department of Housing and Urban Development.

FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2002 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the contract with the fore
mentioned contractor and direct the Mayor and Clerk to sign the
contract.
COMMITTEE RECOMMENDATION: None needed.
FYI


The City of Muskegon's Community and Neighborhood Services received a total of four
bids for new construction services for 361 Oak and 1668 Beidler.

                                     361 Oak             1668 Beidler
Holden Construction **               $116,083            $121,698
291 Washington
Muskegon,MI49441

Whitelake Builders                   $106,010*           $105,000
8800 Ferry St.
Montague, MI 49437

Top Notch Design **                  $122,470            $112,829
4740 Jenson
Fruitport, MI 49415

Bantam                               $144,268*           $129,110
1290 Wood St.
Muskegon,Ml49442

* Errors found in calculations

** Eliminated item, bid decreased by $2,000



White Lake Builder's did not have positive references.
                           RESIDENTIAL CONSTRUCTION AGREEMENT

      This Residential Construction Agreement is made as of the 13th day of August, 2003
between City of Muskegon (the "Owner") and Holden Contruction ("General Contractor").

                                                  BACKGROUND

        A.      General Contractor and Purchaser agree that General Contractor shall construct a
single family residence (the "Residence") for Purchaser pursuant to the Infill Program, according
to terms of this Agreement.

         THEREFORE, the parties agree as follows:

        1.     Building Site. Owner has signed a binding purchase agreement with Purchaser to
give a building site located on the real estate located at 361 Oak (Va cant Land) and legally
described on Exhibit B (the "Prope1ty"). Owner has agreed to hire General Contractor to build
the Residence on the Prope1ty.

        2.      The Residence. General Contractor shall build the Residence in accordance with
the plans and specifications, a copy of which is attached as Exhibit C (the "Plans"). Any features
of the Residence that are not explicitly described in the Plans shall be determined in the sole
discretion of General Contractor. For example, unless specifically set forth on the Plans, the
location of all electrical outlets shall be as determined by General Contractor.

       3.    Price. The price for constructing the Residence shall be $116,083 ("Price"). The
Price may change in the event Owner and General Contractor and/or Purchaser, agree to
change orders, modifications or extras, as defined below, in writing and signed by all the
above.

                 3 .1    The price is based on certain allowances. Allowances are merely
         estimates of costs for items to be added to the Residence at Purchaser's and Owner's
         discretion, snch as carpeting, light fixtures, window treatments, etc. The allowances nsed
         in determining the Price are set fo1th on Exhibit D. The Price will increase or decrease
         depending on the actual cost of the items listed as allowances. In the event the actual cost
         of any allowance exceeds the estimated amount ("Additional Allowance Amount"),
         Purchaser shall pay the Additional Allowance Amount within 30 days of General
         Contractor's invoice. No Additional Allowance Amount shall be billed through General
         Contractor without the express prior written consent of Owner.

        4.      Costs Included. The Price shall include the cost of the building permit and all
sales taxes incurred by General Contractor for materials purchased and installed in the
Residence, but shall exclude sales tax for those items purchased either by General Contractor or
Purchaser as an allowance. The Price shall not include any other costs whatsoever associated
with the construction of the Residence, including, but not limited to, utility bills, heating costs,
sewer or water hook-up charges, trunkage fees, regional fees, or any other water, sewer or
property tax assessments, each of which shall be Purchaser's sole responsibility.

O:\CNS\COMMON\WPDATA\HOME\INFILL\NEW CONSTRUCTION AGREEMENnCTIY CONTRACTOR AGREEMENT.DOC
                                                                                              Page 1
       5.     Payment of the Price. The Price shall be paid in accordance with the following
schedule ("Payment Schedule").

               General Contractor may request draws from Transnation Title Insurance Co.
("Transnation"), which is acting as escrow agent. Draws may be requested no more than once
per month. Requests for draws and documentation required will be in a format acceptable
Transnation, and shall include at a minimum lien waivers. The total amount of a draw may never
exceed the percentage of completion, less a 10% holdback. The balance owed on the contract,
including any holdback, shall be paid upon completion and issuance of a certificate of
occupancy.

        6.      Modifications/Extras. No modifications to the Plans ("Modifications") or
requests for additional construction ("Extras") shall be binding upon either party, unless the
Modifications and/or Extras are set forth on a written change order that is signed by General
Contractor, future Purchaser of property ("Purchaser"), and Owner ("Change Order"). The
Change Order must provide a detailed description of the Modifications and/or Extras and the cost
or credit to be charged. Where a Change Order increases or decreases the Price ("Adjusted
Price"), the Adjusted Price shall be paid according to the remaining portion of the Payment
Schedule.

        7.     Possession. Purchaser shall be entitled to possession of the Residence upon
payment of the Price or Adjusted Price in full. Upon payment in full, General Contractor shall
deliver to Purchaser a completed sworn statement and a full unconditional waiver of lien.
Payment of the Price or Adjusted Price by Purchaser shall constitute the acceptance of the
Residence.

         8.    Estimated Completion Date. General Contractor shall commence construction
of the Residence within 30 days from the date the patiies sign this agreement August 13, 2003
("Commencement Date"). General Contractor shall endeavor to complete the Residence by
December 31, 2003("Completion Date"). Provided, that both the Commencement Date and the
Completion Date may be extended as a result of circumstances beyond the control of General
Contractor, including, but not limited to, delays caused by suppliers or subcontractors, delays for
utility hook-ups, Acts of God, labor disputes, governmental inspections, regulations, or permit
processes, material back orders, Purchaser's requests for Change Orders, fire, injury or disability
to General Contractor or weather.




O:\CNS\COMMON\WPDATAIHOME\!NFILL\NEW CONSTRUCTION AGREEMENnCTIY CONTRACTOR AGREEMENT.DOC
                                                                                             Page 2
        8.     General Contractor Conditions. This Agreement is subject to and includes all
of the Contractor Conditions attached to this Agreement as Exhibit A.

                                                                  Owner- City of Muskegon

                                                                  By: _ _ _ _ _ _ _ _ _ _ _ _~
                                                                         Stephen J. Warmington
                                                                  Its: Mayor

                                                                  By: _ _ _ _ _ _ _ _ _ _ _ _~
                                                                          Gail Kundinger, MMC
                                                                  Its: City Clerk


                                                                 General Contractor - Holden Construction

Dated: - - - - - -                                                By: _ _ _ _ _ _ _ _ _ _ _ _ _ __
                                                                       Cutiis Holden
                                                                  Its: Owner




O:\CNS\COMMON\WPDATA\HOME\!NFILL\NEW CONSTRUCTION AGREEMENT\CTIY CONTRACTOR AGREEMENT.DOC
                                                                                                   Page 3
                                                      EXHIBIT A

                                            Contractor CONDITIONS


           I.      General Contractor's Warranties. All building materials used in the construction of
the Residence shall be new. General Contractor guarantees its workmanship for a period of one year
from the date of final completion. Within that period, General Contractor may replace, at its option, any
materials incorporated into the Residence which are defective, provided the manufacturer's warranty is
still in full force and effect and, in fact, the manufacturer honors that warranty. To make a claim under
this warranty, Purchaser must give General Contractor written notice of any such defect in the
workmanship and/or materials promptly upon discovery and not later than expiration of the one year
warranty period. This warranty does not apply to workmanship or materials requiring repair or
replacement because of normal wear and tear or natural settling. General Contractor shall turn over and
transfer to Purchaser all manufacturer's warranties that are delivered directly to General Contractor by the
manufacturer. All warranties under this agreement shall transfer upon the date of sale to Buyer as the
Purchaser's successor in interest.

        2.       Purchaser's Warranties. Purchaser covenants and warrants that the Property is subject
to a binding purchase agreement. Purchaser shall locate the exact location of the Residence on the
Property. All corners of Residence shall be clearly marked with surveyor stakes. Purchaser covenants
and agrees that such location is in compliance with all applicable federal, state and local rules and
regulations, including, but not limited to, building restrictions, set-back requirements, sand dune and
wetland laws, and regulations and zoning ordinances. In the event the location of the Residence is moved
for any reason, General Contractor expressly reserves the right to increase the Price accordingly to the
extent and in such amounts as the new location increases the cost to General Contractor.

        3.       License. General Contractor is a residential General Contractor and a residential
maintenance and alteration contractor and is required to be licensed under article 24 of Act 299 of the
Public Acts of 1980, as amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws.
An electrician is required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being
sections 338.881 to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under
Act No. 266 of the Public Acts of 1929, as amended being sections 338.90 I to 338.917 of the Michigan
Compiled Laws. General Contractor is licensed by the State of Michigan as a licensed Michigan
Contractor and maintains its license in good standing. General Contractor's License and ID numbers are
2101076141 and 5286548, respectively.

        4.     Laws, Ordinances and Regulations. In connection with the construction of the
Residence, General Contractor shall meet and comply with all applicable laws, ordinances, and
regulations.

       5.      Notice of Commencement. Purchaser shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.

         6.     Diligent Pursuit. General Contractor shall diligently pursue its obligations under this
Agreement. If Purchaser believes that General Contractor has failed to comply with this paragraph, it
shall provide General Contractor not less than I 5 days written notice of such non-compliance, a list of
Purchaser's specific complaints, and a reasonable time within which General Contractor shall cure any
such reasonable complaints. Until Purchaser fully complies with the notice provisions set forth in this
paragraph, Purchaser may not replace General Contractor with any other party to complete construction

O:\CNS\COMMONIWPDATA\HOME\INFILL\NEW CONSTRUCTION AGREEMEN1'CTIY CONTRACTOR AGREEMENT.DOC
                                                                                                   Page 1
and may not deduct from the Price any amount paid by Purchaser to complete construction in accordance
with the Plans.

         7.        Insurance. Purchaser shall procure and maintain an "all risk" insurance policy and shall
name General Contractor as an additional named insured. Purchaser shall provide General Contractor
with evidence of such insurance upon request. General Contractor shall maintain a policy of General
Contractor's insurance fully insuring the Residence from the date construction commences until the date
of substantial completion. Purchaser and their mmtgagee may also maintain a policy of insurance upon
their interest in the Residence. General Contractor shall also carry public liability insurance with
coverage limits not less than $300,000 single-limit coverage and worker's compensation insurance in an
amount not less than the statutory minimum. Such policies shall name Purchaser and their mmtgagee as
additional named insured. General Contractor shall provide Purchaser with evidence of such insurance
upon request. Purchaser and General Contractor waive all rights against each other for damages caused
by fire or other perils to the extent covered by insurance provided under this paragraph.

         8.        Miscellaneous.

                 9.1     Applicable Law. This Agreement is executed in, shall be governed by, and
         construed and interpreted in accordance with the laws of the State of Michigan.

                  9.2   Binding Effect. This Agreement shall be binding upon, inure to the benefit of,
         and be enforceable by the pmties and their respective legal representatives, successors, and
         assigns.

                 9.3       Full Execution. This Agreement requires the signature of both parties. Until
         fully executed on a single copy or in counterparts, this Agreement is of no binding force or effect,
         and if not fully executed, this Agreement is void.

                  9.4     Counterpa1ts. This Agreement may be executed in two or more counterparts,
         each of which shall be deemed an original as against any party whose signature appears thereon,
         and all of which together shall constitute one and the same instrument. This Agreement shall
         become binding upon the pmties when one or more counterparts, individually or taken together,
         shall bear the signatures of all pmties.

                 9.5     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
         pmty of any other provision of the Agreement.

                 9.6     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 shall not in any way be impaired or affected.

                 9.7      No Discrimination. Discrimination on the basis ofreligion, race, creed, color,
         national origin, age, sex, marital status, or handicapped condition by either party in respect to the
         construction of the Residence is prohibited.

                 9.8      Assignment or Delegation. Neither General Contractor nor Purchaser may
         assign all or any pmt of this Agreement. Provided, that General Contractor may delegate all or
         any pmt of its obligations to perform the services under this Agreement, to any persons or entities



O:\CNS\COMMON\WPDATA\HOMEIINFILL\NEW CONSTRUCTION AGREEMENnCTIY CONTRACTOR AGREEMENT.DOC
                                                                                                      Page2
         that General Contractor, in its sole discretion, deems appropriate, including sub-contractors.
         Such delegation shall be at the sole expense of General Contractor unless otherwise provided.
                  9.9     Notices. All required or permitted written notices shall be deemed effective and
         duly given when: (i) personally delivered; (ii) sent by fax; (iii) one day after depositing in the
         custody of a nationally recognized receipted overnight delivery service; or (iv) two days after
         posting in the U.S. first class, registered or certified mail, postage prepaid, to the recipient party
         at the address as set forth at the outset of this Agreement, or to such other address as the recipient
         paiiy shall have furnished to the sender in accordance with the requirements for the giving of
         notice.

                9.10    Pronouns. For convenience, Purchaser has been referred to this Agreement
         sometimes in the singular and at other times in the plural.

                                                                   Owner- City of Muskegon

                                                                  By:--------------
                                                                    Stephen J. Warmington, Mayor

                                                                  By: _ _ _ _ _ _ _ _ _ _ _ _~
                                                                        Gail Kundinger, MMC City Clerk


                                                                  General Contractor- Holden Construction

Dated: ___________                                                By:. _ _ _ _ _ _ _ _ _ _ _ _ __
                                                                       Cmiis Holden
                                                                  Its: Owner




O:\CNS\COMMON\WPDATA\HOME\INF!Ll\NEW CONSTRUCTION AGREEMENTICTIY CONTRACTOR AGREEMENT.DOC
                                                                                                       Page 3
                                                      EXHIBITB
                                                  Legal Description




                        The City of Muskegon revised plat of 1903 Lot 4 Block 202




O:\CNS\COMMON\WPDATA\HOME\INFILL\NEW CONSTRUCTION AGREEMENT\CTlY CONTRACTOR AGREEMENT.DOC
                                    ~00~-      ,lo\   ~)


      Commission Meeting Date:           August 12, 2003




Date:       August 5, 2003
To:         Honorable Mayor & City Commission
From:       Community and Neighborhood Services
            Department
RE:         Approval of Contractor for Construction of House
            at 1668 Beidler.


SUMMARY OF REQUEST: To approve the contract with Top Notch
Design, 4740 Jension Rd, Fruitport Ml for the construction of the new
home to be located at 1668 Beidler for the cost of $112,829. The site at
1668 Beidler formerly was occupied by a Turnkey 3 home that was
recently demolished. After the construction is completed, the new home
will be sold to a qualified first-time homebuyer continuing the City's
aggressive neighborhood revitalization efforts under the Operation "At
Long Last."

FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2003 HOME funds.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the contract with Top Notch
Design and direct the Mayor and Clerk to sign the contract.

COMMITTEE RECOMMENDATION: None needed.
FYI


The City of Muskegon's Conununity and Neighborhood Services received a total of four
bids for new construction services for 361 Oak and 1668 Beidler.

                                     361 Oak             1668 Beidler
Holden Construction * *              $116,083            $121,698
291 Washington
Muskegon,MI49441

Whitelake Builders                   $106,010*           $105,000
8800 Ferry St.
Montague, MI 49437

Top Notch Design**                   $122,470            $112,829
4740 Jenson
Fruitport, MI 49415

Bantam                               $144,268*           $129,110
1290 Wood St.
Muskegon,MI49442

* Errors found in calculations

** Eliminated item, bid decreased by $2,000



White Lake Builder's did not have positive references.
                            RESIDENTIAL CONSTRUCTION AGREEMENT

       This Residential Construction Agreement is made as of the 13th day of August, 2003
between City of Muskegon (the "Owner") and Top Notch Design Contractors ("General
Contractor").

                                                    BACKGROUND

        A.      General Contractor and Purchaser agree that General Contractor shall construct a
single family residence (the "Residence") for Purchaser pursuant to the Infill Program, according
to terms of this Agreement.

         THEREFORE, the parties agree as follows:

        1.     Building Site. Owner has signed a binding purchase agreement with Purchaser to
give a building site located on the real estate located at 1668 Beidler (Vacant Land) and legally
described on Exhibit B (the "Property"). Owner has agreed to hire General Contractor to build
the Residence on the Property.

        2.      The Residence. General Contractor shall build the Residence in accordance with
the plans and specifications, a copy of which is attached as Exhibit C (the "Plans"). Any features
of the Residence that are not explicitly described in the Plans shall be determined in the sole
discretion of General Contractor. For example, unless specifically set forth on the Plans, the
location of all electrical outlets shall be as determined by General Contractor.

       3.    Price. The price for constructing the Residence shall be $112,829 ("Price"). The
Price may change in the event Owner and General Contractor and/or Purchaser, agree to
change orders, modifications or extras, as defined below, in writing and signed by all the
above.

                 3. I   The price is based on certain allowances. Allowances are merely
         estimates of costs for items to be added to the Residence at Purchaser's and Owner's
         discretion, such as carpeting, light fixtures, window treatments, etc. The allowances used
         in determining the Price are set forth on Exhibit D. The Price will increase or decrease
         depending on the actual cost of the items listed as allowances. In the event the actual cost
         of any allowance exceeds the estimated amount (" Additional Allowance Amount"),
         Purchaser shall pay the Additional Allowance Amount within 30 days of General
         Contractor's invoice. No Additional Allowance Amount shall be billed through General
         Contractor without the express prior written consent of Owner.

        4.      Costs Included. The Price shall include the cost of the building permit and all
sales taxes incurred by General Contractor for materials purchased and installed in the
Residence, but shall exclude sales tax for those items purchased either by General Contractor or
Purchaser as an allowance. The Price shall not include any other costs whatsoever associated
with the construction of the Residence, including, but not limited to, utility bills, heating costs,


O:\CNS\COMMONIWPDATA\HOME\INFILL\1668 BEIDLER\CONSTRUCTION AGREE.DOC
                                                                                              Page 1
sewer or water hook-up charges, trunkage fees, regional fees, or any other water, sewer or
property tax assessments, each of which shall be Purchaser's sole responsibility.

       5.     Payment of the Price. The Price shall be paid in accordance with the following
schedule ("Payment Schedule").

               General Contractor may request draws from Transnation Title Insurance Co.
("Transnation"), which is acting as escrow agent. Draws may be requested no more than once
per month. Requests for draws and documentation required will be in a format acceptable
Transnation, and shall include at a minimum lien waivers. The total amount of a draw may never
exceed the percentage of completion, less a 10% holdback. The balance owed on the contract,
including any holdback, shall be paid upon completion and issuance of a ce1iificate of
occupancy.

        6.      Modifications/Extras. No modifications to the Plans ("Modifications") or
requests for additional construction ("Extras") shall be binding upon either pmty, unless the
Modifications and/or Extras are set forth on a written change order that is signed by General
Contractor, future Purchaser of prope1ty ("Purchaser"), and Owner ("Change Order"). The
Change Order must provide a detailed description of the Modifications and/or Extras and the cost
or credit to be charged. Where a Change Order increases or decreases the Price (" Adjusted
Price"), the Adjusted Price shall be paid according to the remaining portion of the Payment
Schedule.

        7.     Possession. Purchaser shall be entitled to possession of the Residence upon
payment of the Price or Adjusted Price in full. Upon payment in full, General Contractor shall
deliver to Purchaser a completed sworn statement and a full unconditional waiver of lien.
Payment of the Price or Adjusted Price by Purchaser shall constitute the acceptance of the
Residence.

         8.    Estimated Completion Date. General Contractor shall commence construction
of the Residence within 30 days from the date the parties sign this agreement August 13, 2003
("Commencement Date"). General Contractor shall endeavor to complete the Residence by
December 31, 2003("Completion Date"). Provided, that both the Commencement Date and the
Completion Date may be extended as a result of circumstances beyond the control of General
Contractor, including, but not limited to, delays caused by suppliers or subcontractors, delays for
utility hook-ups, Acts of God, labor disputes, governmental inspections, regulations, or permit
processes, material back orders, Purchaser's requests for Change Orders, fire, injury or disability
to General Contractor or weather.




O:\CNS\COMMON\WPDATA\HOME\INFILL\1668 BEIDLER\CONSTRUCT10N AGREE.DOC
                                                                                             Page 2
        8.     General Contractor Conditions. This Agreement is subject to and includes all
of the Contractor Conditions attached to this Agreement as Exhibit A.

                                                                       Owner- City of Muskegon

                                                                       By:--------------
                                                                              Stephen J. Warmington
                                                                       Its: Mayor

                                                                       By:--------------
                                                                                Gail Kundinger, MMC
                                                                       Its: City Clerk


                                                                       General Contractor -Top Notch Design
                                                                                           Contractors

Dated: - - - - - -                                                     By: _ _ _ _ _ _ _ _ _ _ _ _ __
                                                                            Donald Beach
                                                                       Its: Owner




O:\CNS\COMMON\WPDATA\HOME\INFILL\1668 BEIOLER\CONSTRUCT!ON AGREE DOC
                                                                                                        Page 3
                                                        EXHIBIT A

                                             Contractor CONDITIONS


          1.       General Contractor's Warranties. All building materials used in the construction of
the Residence shall be new. General Contractor guarantees its workmanship for a period of one year
from the date of final completion. Within that period, General Contractor may replace, at its option, any
materials incorporated into the Residence which are defective, provided the manufacturer's warranty is
still in full force and effect and, in fact, the manufacturer honors that warranty. To make a claim under
this warranty, Purchaser must give General Contractor written notice of any such defect in the
workmanship and/or materials promptly upon discovery and not later than expiration of the one year
warranty period. This warranty does not apply to workmanship or materials requiring repair or
replacement because of normal wear and tear or natural settling. General Contractor shall turn over and
transfer to Purchaser all manufacturer's warranties that are delivered directly to General Contractor by the
manufacturer. All warranties under this agreement shall transfer upon the date of sale to Buyer as the
Purchaser's successor in interest.

        2.       Purchaser's Warranties. Purchaser covenants and warrants that the Prope1ty is subject
to a binding purchase agreement. Purchaser shall locate the exact location of the Residence on the
Prope1ty. All corners of Residence shall be clearly marked with surveyor stakes. Purchaser covenants
and agrees that such location is in compliance with all applicable federal, state and local rules and
regulations, including, but not limited to, building restrictions, set-back requirements, sand dune and
wetland laws, and regulations and zoning ordinances. In the event the location of the Residence is moved
for any reason, General Contractor expressly reserves the right to increase the Price accordingly to the
extent and in such amounts as the new location increases the cost to General Contractor.

        3.       License. General Contractor is a residential General Contractor and a residential
maintenance and alteration contractor and is required to be licensed under article 24 of Act 299 of the
Public Acts of 1980, as amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws.
An electrician is required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being
sections 338.881 to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under
Act No. 266 of the Public Acts of 1929, as amended being sections 338.901 to 338.917 of the Michigan
Compiled Laws. General Contractor is licensed by the State of Michigan as a licensed Michigan
Contractor and maintains its license in good standing. General Contractor's License and ID numbers are
2101123555 and 2929181 , respectively.

        4.    Laws, Ordinances and Regulations. In connection with the construction of the
Residence, General Contractor shall meet and comply with all applicable laws, ordinances, and
regulations.

       5.      Notice of Commencement. Purchaser shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.

         6.     Diligent Pursuit. General Contractor shall diligently pursue its obligations under this
Agreement. If Purchaser believes that General Contractor has failed to comply with this paragraph, it
shall provide General Contractor not less than 15 days written notice of such non-compliance, a list of
Purchaser's specific complaints, and a reasonable time within which General Contractor shall cure any
such reasonable complaints. Until Purchaser fully complies with the notice provisions set forth in this
paragraph, Purchaser may not replace General Contractor with any other patty to complete construction

O:\CNS\COMMON\WPDATA\HOME\!NFILL\1668 BEIDLER\CONSTRUCTION AGREE.DOC
                                                                                                    Page 1
and may not deduct from the Price any amount paid by Purchaser to complete construction in accordance
with the Plans.

         7.        Insurance. Purchaser shall procure and maintain an "all risk" insurance policy and shall
name General Contractor as an additional named insured. Purchaser shall provide General Contractor
with evidence of such insurance upon request. General Contractor shall maintain a policy of General
Contractor's insurance fully insuring the Residence from the date construction commences until the date
of substantial completion. Purchaser and their mmigagee may also maintain a policy of insurance upon
their interest in the Residence. General Contractor shall also carry public liability insurance with
coverage limits not less than $300,000 single-limit coverage and worker's compensation insurance in an
amount not less than the statutory minimum. Such policies shall name Purchaser and their mortgagee as
additional named insured. General Contractor shall provide Purchaser with evidence of such insurance
upon request. Purchaser and General Contractor waive all rights against each other for damages caused
by fire or other perils to the extent covered by insurance provided under this paragraph.

          8.        Miscellaneous.

                  9. 1    Applicable Law. This Agreement is executed in, shall be governed by, and
          construed and interpreted in accordance with the laws of the State of Michigan.

                   9.2   Binding Effect. This Agreement shall be binding upon, inure to the benefit of,
          and be enforceable by the pmiies and their respective legal representatives, successors, and
          assigns.

                  9.3       Full Execution. This Agreement requires the signature of both patties. Until
          fully executed on a single copy or in counterparts, this Agreement is of no binding force or effect,
          and if not fully executed, this Agreement is void.

                  9.4      Counterpatis. This Agreement may be executed in two or more counterparts,
         each of which shall be deemed an original as against any patty whose signature appears thereon,
         and all of which together shall constitute one and the same instrument. This Agreement shall
         become binding upon the parties when one or more counterparts, individually or taken together,
         shall bear the signatures of all parties.

                 9.5     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 the Agreement.

                 9.6     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 shall not in any way be impaired or affected.

                  9. 7     No Discrimination. Discrimination on the basis of religion, race, creed, color,
          national origin, age, sex, marital status, or handicapped condition by either party in respect to the
          construction of the Residence is prohibited.

                  9.8      Assignment or Delegation. Neither General Contractor nor Purchaser may
          assign all or any pati of this Agreement. Provided, that General Contractor may delegate all or
          any part of its obligations to perform the services under this Agreement, to any persons or entities



O:\CNS\COMMON\WPOATA\HOME\INFILL\1668 BEIDLER\CONSTRUCTION AGREE.DOC
                                                                                                       Page 2
          that General Contractor, in its sole discretion, deems appropriate, including sub-contractors.
          Such delegation shall be at the sole expense of General Contractor unless otherwise provided.
                   9.9     Notices. All required or permitted written notices shall be deemed effective and
          duly given when: (i) personally delivered; (ii) sent by fax; (iii) one day after depositing in the
          custody of a nationally recognized receipted overnight delivery service; or (iv) two days after
          posting in the U.S. first class, registered or certified mail, postage prepaid, to the recipient patty
          at the address as set forth at the outset of this Agreement, or to such other address as the recipient
          patty shall have furnished to the sender in accordance with the requirements for the giving of
          notice.

                 9.10    Pronouns. For convenience, Purchaser has been referred to this Agreement
          sometimes in the singular and at other times in the plural.

                                                                       Owner- City of Muskegon

                                                                       By: - - - - - - - - - - - - - - - - -
                                                                              Stephen J. Warmington, Mayor

                                                                       By: - - - - - - - - - - - - - - - - -
                                                                              Gail Kundinger, MMC City Clerk


                                                                       General Contractor-Top Notch Design
                                                                                         Contractors

Dated: - - - - - - -                                                   By: _ _ _ _ _ _ _ _ _ _ _ _ __
                                                                            Donald Beach
                                                                       Its: Owner




O:\CNS\COMMON\WPDATA\HOME\INFILL\1668 BEIDLER\CQNSTRUCTION AGREE.DOC
                                                                                                        Page 3
                                                        EXHIBITB
                                                    Legal Description




              The City of Muskegon revised plat of 1903 Block 436 S 85 Ft Lots 17 & 18




O:\CNS\COMMON\WPDATA\HOME\INFlll\1668 BEIOLER\CONSTRUCTION AGREE.DOC
DATE:         August 5, 2003

TO:           Honorable Mayor and City Commissioners

FROM:         Robert B. Grabinski, Director of Inspection Services

RE:           Professional Services Agreement with Muskegon Charter Township


SUMMARY OF REQUEST: This is to request the city commission approve the attached
Professional Service Agreement between the City of Muskegon and Muskegon Charter
Township. This agreement is to allow the Inspection Services to conduct the electrical
inspections and plan reviews for Muskegon Charter Township on a contractual basis. It
is also requested that if approved, the commission authorize the Mayor and City Clerk to
sign the agreement.

STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to sign
the attached service agreement after it has been approved by Muskegon Charter
Township officials.

CITY COMMISSION RECOMMENDATION: The commission will consider this item
at it's meeting held on Tuesday, August 12, 2003.
                            City of Muskegon
                     Professional Services Agreement
                          Electrical Inspections

Agreement made and entered into this _ _ day of _ _ _ _ _ _ _ _ by
and between the City of Muskegon, a Home Rule City (hereinafter referred
to as "City"), and Muskegon Charter Township, a Municipal Corporation
(hereinafter referred to as "Township").

   1. It is agreed by the City and the Township that Electrical Inspection
      Services shall be performed upon Township request under conditions
      set by the Township.
          a. The City shall receive 80% of the electrical permit fees
              collected by the Township.
          b. The City shall receive $35.00 per requested complaint
              inspection of property not related to a permit.
          c. Scheduling: Upon notification of a request for inspection, the
              City Inspection Services Department will schedule accordingly.
          d. Plan Review shall be paid at $35.00 per hour.
          e. The Township will compensate the City monthly based on
              permits issued, other work performed, and an invoice for plan
              review fees.

   2. The City will maintain the certifications of the Electrical Inspector(s)
      as required by the State of Michigan in accordance with P.A. No. 54.

   3. This agreement may be amended upon the mutual consent of both
      parties.

   4. It is understood that the Electrical Inspector(s) is/are employees of the
      City and not the Township.

   5. Liability insurance coverage shall be provided by the Township. To
      the fullest extent permitted by law, Muskegon Charter Township
      agrees to defend, pay in behalf of, and hold harmless the City of
      Muskegon, its elected and appointed officials, employees, and
      volunteers and others working in behalf of the City of Muskegon
      against any and all claims, demands, suits, or loss, including all costs
      connected therewith, and for any damages which may be asserted,
      claimed or recovered against or from the City of Muskegon, its
      elected and appointed officials, employees, volunteers, or others
      working in behalf of the City of Muskegon by reason of personal
      injury, including bodily injury and death and/or property damage,
      including loss of use thereof, which arises out of or is in any way
      connected or associated with this contract.

   6. This agreement may be cancelled, upon written notification, within 30
      days by either party for any reason.

In witness whereof, the parties hereto have signed this Agreement.

WITNESSES:



James Nielsen, Clerk                         Gail A. Kundinger, Clerk
Muskegon Charter Township                    City of Muskegon


P. Don Aley, Supervisor                      Stephen Warmington, Mayor
Muskegon Charter Township                    City of Muskegon

STATE OF MICHIGAN
COUNTY OF MUSKEGON

The foregoing instrument was acknowledged before me this _ _ day of
_ _ _ _ _ _,2003,by _ _ _ _ _ _ _ _ _ _ __
                      ioo':>- 'J.,,;~ ~
            Commission Meeting Date: August 12, 2003




Date:          July 16, 2003
To:            Honorable Mayor & City Commission
From:          Planning & Economic Development Department Cf!f!_.
RE:           Public Hearing for Amendments to Brownfield
              Plan- Gillespie Development, Loft Properties, LLC
              and Parmenter O'Toole


SUMMARY OF REQUEST: To hold a public hearing and approve the attached
resolution approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by Lakefront LLC (which will be
sold to Gillespie Development and Loft Properties, LLC and leased to Parmenter
O'Toole) in the Brownfield Plan.

FINANCIAL IMPACT: There is no direct financial impact in approving the Brownfield
Plan amendments, although the development of the offices, condominiums and retail
space, proposed by the owner/developers of the Edison landing site, will add to the
tax base of the City of Muskegon.

BUDGET ACTION REQUIRED: None.

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

COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for August 12, 2003, at their July 8, 2003 meeting. Since that time, a notice
of the public hearing has been sent to taxing jurisdictions, and it has been published
twice In the Muskegon Chronicle. In addition, the Brownfield Redevelopment
Authority approved the Plan amendment on July 7, 2003 and further recommends
that the Muskegon City Commission approve the Plan amendment.
                                  2003- 63 (a)


        RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT

                                   City of Muskegon

                            County of Muskegon, Michigan



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

County of Muskegon, Michigan (the "City"), held in the City Commission Chambers,

on the 1 2tb day of August            , 2003, at!i.;_3.Q__ o'clock p.m., prevailing Eastern

Time.

PRESENT:       Members

 Warrni~gton, Buie, Gawron, Larson, Schweifler, Shepherd, Spataro




ABSENT:       Members

      None

        The   following    preamble   and    resolution   were    offered   by   Member

 Schweifler               and supported byMember_---"'B~u=i~e_ _ __

        WHEREAS, in accordance with the provisions of Act 381, Public Acts of

Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield

Redevelopment Authority (the "Authority") has prepared and approved a Brownfield

Plan Amendment at its meeting of July 8, 2003; and

        WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to

the City Commission requesting its approval of the Brownfield Plan Amendment;

and
        WHEREAS, the City Commission has provided notice and a reasonable

opportunity to the taxing jurisdictions levying taxes subject to capture to express

their views and recommendations regarding the Brownfield Plan, as required by Act

381; and

       WHEREAS, not less than 20 days has passed since the City Commission

provided notice of the proposed Brownfield Plan to the taxing units; and

       WHEREAS, the City Commission held a public hearing on the proposed

Brownfield Plan on August 12, 2003.

       NOW, THEREFORE, BE IT RESOLVED, THAT:

       1.      Definitions. Where used in this Resolution the terms set forth below

shall have the following meaning unless the context clearly requires otherwise:

       "Eligible Property" means the property designated in the Brownfield Plan as

the Eligible Property, as described in Act 381.

       "Brownfield Plan" means the Brownfield Plan prepared by the Authority, as

transmitted to the City Clerk by the Authority for approval, copies of which

Brownfield Plan are on file in the office of the City Clerk.

       "Taxing Jurisdiction" shall mean each unit of government levying an ad

valorem property tax on the Eligible Property.

       2.      Public Purpose.    The City Commission hereby determines that the

Brownfield Plan Amendment constitutes a public purpose.

       3.      Best Interest of the Public. The City Commission hereby determines

that it is in the best interests of the public to promote the revitalization of eligible

properties in the City to proceed with the Brownfield Plan Amendment.
4.     Review Considerations. As required by Act 381, the City Commission has,

       in reviewing the Brownfield Plan Amendment, taken into consideration

       whether the Brownfield Plan Amendment meets the requirements set forth in

       Section 13 of Act 381.

5.     Approval and Adoption of Brownfield Plan Amendment.           The Brownfield

       Plan Amendment as submitted by the Authority is hereby approved and

       adopted. A copy of the Brownfield Plan and all amendments thereto shall be

       maintained on file in the City Clerk's office.

6.     No Capture of Tax Increment Revenues by Authority. The Authority shall

       not capture Tax Increment Revenues on the Eligible Property, as described

       in the Brownfield Plan Amendment.

7.     Disclaimer. By adoption of this resolution and approval of the Brownfield

       Plan Amendment, the City assumes no obligation or liability to the owner,

       developer or lessor of the Eligible Property for any loss or damage that may

       result to such persons from the adoption of this resolution and Brownfield

       Plan Amendment The City makes no guarantees or representations as to

       the determinations of the appropriate state officials regarding the ability of

       the owner, developer or lessor to qualify for a single business tax credit

       pursuant to Act 228, Public Acts of Michigan, 1975, as amended, or as to

       the ability of the Authority to capture tax increment revenues from the State

       and local school district taxes for the Brownfield Plan.

8.     Repealer. All resolutions and parts of resolutions insofar as they conflict

with the provisions of this resolution be and the same hereby are rescinded.
AYES:    Members

Buie, Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington




NAYS:

Members---"-'-=-'~------------------------
        None



RESOLUTION DECLARED ADOPTED.
I hereby certify that the foregoing is a true and complete copy of a resolution

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

State of Michigan, at a regular meeting held on August 12, 2003, and that said

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

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

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

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



                                                               L
                                         Gail A. Kundinger, City Clerk
            CITY OF MUSKEGON
   BROWNFIELD REDEVELOPMENT AUTHORITY

         BROWNFIELD PLAN AMENDMENT

Original Plan Approved by the Board of the City of Muskegon Brownfield
Redevelopment Authority on February 23, 1998.

Original Plan Approved by the City Commission of the City of Muskegon on
April 14, 1998.


Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on August 10, 1998

Amended by the City Commission of the City of Muskegon on August 11, 1998


Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on June 13, 2000.

Amended by the City Commission of the City of Muskegon on July 11, 2000.


Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on April 15, 2003.

Amended by the City Commission of the City of Muskegon on May 27, 2003.


Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on July 7, 2003.

Amended by the City Commission of the City of Muskegon on August 12, 2003.
                     City of Muskegon Brownfield Plan Amendment
                                      July 2003




                       CITY OF MUSKEGON
              BROWNFIELD REDEVELOPMENT AUTHORITY
                       BROWNFIELD PLAN

                                     INDEX




I.     INTRODUCTION
II.    GENERAL PROVISIONS

       A.   Costs of the Brownfield Plan
       B.   Maximum Amount of Indebtedness
       C.   Duration of the Brownfield Plan
       D.   Displacement/Relocation of Individuals on
            Eligible Properlies
       E.   Local Site Remediation Revolving Fund

Ill.   SITE SPECIFIC PROVISIONS

       A.   Kirksey/Anaconda Property (Approved 4/14/98)

       B.   Dilesco Corporation Property (Approved 8/11/98)

       C.   Beacon Recycling (Approved 7/11/00)

       D.   Verplank Dock Company (Approved 5/27/03)

       E.   Gillespie Development Property (Approved _ _ _ __,

       F.   Loft Properties, LLC Property (Approved _ _ __,

       G.   Parmenter O'Toole Property (Approved _ _ _ _ __,
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003




II. GENERAL PROVISIONS

A Costs of the Brownfield Plan (Section 13(1)(a))

         Any site-specific costs of implementing this Plan are described in the site-
specific section of the Plan. Site-specific sources of funding may include tax
increment financing revenue generated from new development on eligible
brownfield properties, state and federal grant or loan funds, and/or private
parties. Where private parties finance the costs of eligible activities under the
Plan, tax increment revenues may be used to reimburse the private parties. The
initial costs related to preparation of the Brownfield Plan were funded by the
City's general fund. Subsequent amendments to the Plan are funded by the
person requesting inclusion of a project in the Plan.

         The Authority intends to pay for administrative costs and all of the things
necessary or convenient to achieve the objectives and purposes of the Authority
including, but not limited to:
    i)      the cost of financial tracking and auditing the funds of the Authority,
    ii)     costs for amending and/or updating this Plan, including legal fees, and
    iii)    costs for Plan implementation
with any eligible tax increment revenues collected pursuant to the Plan.
However, at this time, there are no properties included in this plan that will utilize
tax increment financing and therefore there are currently no tax increment
revenues to pay for these costs. As noted above, most costs related to the
preparation of Plan amendments are borne by the person requesting inclusion of
a project within the Plan.

B. Method for Financing Costs of Plan (Section 13(1)(d) and (e)))

The Authority does not intend at this time to incur debt, such as through the
issuance of bonds or other financing mechanisms. In the future, the City or
Brownfield Authority may incur some debt on a site-specific basis. Please refer
to the site-specific section of this Plan for details on any debt to be incurred by
the City or Authority. When a property proposed for inclusion in the Plan is in an
area where tax increment financing is a viable option, the Authority intends to
enter into Development Agreements with the property owners/developers of a
properties included in the Plan to reimburse them for the costs of eligible
activities undertaken pursuant to this Plan. Financing arrangements will be
specified in the Development Agreement, and also identified in the Site Specific
section of the Plan.
                        City of Muskegon Brownfield Plan Amendment
                                         July 2003


I. INTRODUCTION

In order to promote the revitalization of commercial, industrial, and residential
properties within the boundaries of the City of Muskegon (the "City"), the City
established the City of Muskegon Brownfield Redevelopment Authority (the
"Authority") pursuant to Act 381, Public Acts of Michigan, as amended ("Act
381"), and a resolution adopted by the Muskegon City Commission on February
10,1998.

The major purpose of this Brownfield Plan ("Plan") is to promote the
redevelopment of eligible properties within the City that are impacted by the
presence of hazardous substances in concentrations that exceed Michigan's Part
201 Generic Cleanup Criteria Criteria ("facilities') or that have been determined
to be Functionally Obsolete or Blighted. Inclusion of property within this Plan can
facilitate financing of environmental response activities, infrastructure
improvements, demolition, lead or asbestos abatement, and site preparation
activities at eligible properties; and may also provide tax incentives to eligible
taxpayers willing to invest in revitalization of eligible properties. By facilitating
redevelopment of underutilized eligible properties, the Plan is intended to
promote economic growth fro the benefit of the residents of the City and all taxing
units located within and benefited by the Authority.

This plan is intended to be a living document, which can be amended as
necessary to achieve the purposes of Act 381. It is specifically anticipated that
properties will be continually added to the Plan as new projects are identified.
The Plan contains general provisions applicable to each site included in the Plan,
as well as property-specific information for each project. The applicable Sections
of Act 381 are noted throughout the Plan for reference purposes.

This Brownfield Plan contains the information required by Section 13(1) of Act
381, as amended. Additional information is available from the City Manager.
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003


C. Duration of the Brownfield Plan (Section 13(1)(())

        The Plan, as it applies to a specific eligible property, shall be effective up
to five (5) years after the year in which the total amount of any tax increment
revenue captured is equal to the total costs of eligible activities attributable to the
specific eligible property, or thirty (30) years from the date of approval of the Plan
as it relates to an individual site, whichever is less. The total costs of eligible
activities include the cost of principal and interest on any note or obligation
issued by the Authority to pay for the costs of eligible activities, the reasonable
costs of a work plan or remedial action plan, the actual costs of the Michigan
Department of Environmental Quality's or Michigan Economic Growth Authority's
review of the work plan or remedial action plan, and implementation of the
eligible activities.

D. Displacement/Relocation of Individuals on Eligible Properties
   (Section 13(1)i, j,k,I))

        At this time, eligible properties identified in this Plan do not contain
residences, nor are there any current plans or intentions by the City for
identifying eligible properties that will require the relocation of residences.
Therefore the provisions of Section 13(1)(i-l) are not applicable at this time.

E. Local Site Remediation Revolving Fund (Section 8; Section 13(1)(m))

         At the time this Plan includes a property for which taxes will be captured
through the increment financing authority provided by Act 381, it is the Authority's
intent to establish a Local Site Remediation Revolving Fund ("Fund"). The Fund
will consist of tax increment revenues that exceed the costs of eligible activities
incurred on an eligible property, as specified in Section 13(5) of Act 381. Section
13(5) authorizes the capture of tax increment revenue from an eligible property
for up to 5 years after the time that capture is required for the purposes of paying
the costs of eligible activities identified in the Plan. It is the intention of the
Authority to continue to capture tax increment revenues for 5 years after eligible
activities are funded from those properties identified for tax capture in the Plan.
The amount of school operating taxes captured for the Revolving Fund will be
limited to the amount of school operating taxes captured for eligible activities
under this Plan. It may also include funds appropriated or otherwise made
available from public or private sources.

The Revolving Fund may be used to reimburse the Authority, the City, and
private parties for the costs of eligible activities at eligible properties and other
costs as permitted by Act 381. It may also be used for eligible activities on
eligible properties for which there is no ability to capture tax increment revenues.
The establishment of this Revolving Fund will provide additional flexibility to the
Authority in facilitating redevelopment of brownfield properties by providing
another     source      of   financing     for     necessary      eligible  activities.
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003


SITE SPECIFIC PROVISIONS


E.     Gillespie Development

Eligibility and Project Summary (Sec. 13(1 )(h))

Gillespie Development intends to acquire Lots J, K, L, and M of the Muskegon
SmartZone, a site condominium known as Edison Landing located in downtown
Muskegon ("Gillespie Property"). A Legal Description and map of the Gillespie
Property is included in Attachment E-1.

A Baseline Environmental Assessment and Due Care compliance analysis
conducted pursuant to Part 201 of Michigan's Natural Resources and
Environmental Protection Act is currently being prepared for the Gillespie
Property on behalf of Muskegon Lake, L.L.C. through Muskegon's CMI
Brownfield Redevelopment Grant. The Property is also part of the "facility"
addressed by a Remedial Action Plan (RAP) prepared on behalf of TOY
Industries for the former Continental Motors/Teledyne site. The BEA and RAP
both conclude that the property is a "facility" pursuant to Part 201, and is
therefore an eligible properly pursuant to Act 381. This eligible properly includes
all personal property.

The planned Gillespie project spans 4 (four) lots on the 16-lot Edison Landing
project. Called "The MarketPlace at Edison Landing", the development will
include residential, commercial, retail, and office uses. Current plans envision 50
residential units, 4-5 restaurants/bistros, banks, an art studio, day spa/salons, a
gym, and offices. Pending completion of the Shoreline Drive extension,
Gillespie intends to initiate site preparation in Fall 2003. Based on the estimated
                                               2                     2
square footage to be constructed (46,800 ft residential, 33,400 ft commercial),
Gillespie estimates that approximately 266 new jobs will be created by this
project. These positions will be concentrated in the restaurants and bank; a
smaller number of positions will be created by the tenants in the main
commercial buildings. Current estimates indicate that this project will involve
over $10 million in private investment.

Eligible Activities, Financing, Cost of Plan (Sec. 13(1)(a),(b),(c),(d),(g))

Eligible activities that have been conducted on the property include additional
response activities through implementation of a RAP; and preparation of a
Baseline Environmental Assessment and Section 7a (Due Care) Compliance
Analysis. Future eligible activities would likely be related to Due Care response
activities, which may be funded by the CMI Brownfield Grant. Therefore, there
are no eligible costs proposed to be financed with tax increment revenues.
Further, the property is in the LDFA District thereby making brownfield tax
increment financing unavailable. As such, there are no costs to the City of
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003


Muskegon or its taxing jurisdictions as a result of the Gillespie Property being
included in this Plan.

Single Business Tax Credit

The Gillespie Property is included in the Plan to enable "qualified taxpayers" as
defined by Act 228 of 1975, as amended, to avail themselves of eligibility for a
credit against their Michigan single business tax liability for "eligible investments"
as defined by P.A. 228. "Eligible investments" include demolition, construction,
restoration, alteration, renovation, or improvement of buildings or site
improvements on eligible property and the addition of machinery, equipment, and
fixtures to eligible property after the effective date of this Plan Amendment.

Effective Date of Inclusion in Brownfield Plan

The Gillespie Property was added to this Plan on _ _ _ _ _ 2003.
      City of Muskegon Brownfield Plan Amendment
                       July 2003




        ATTACHMENT E-1

   SITE MAP, LEGAL DESCRIPTION
GILLESPIE DEVELOPMENT PROPERTY
                                                                                                                    l!!;t fltf.5{~?'
                                                                                                   -~•,"· ~,- ·:,,~:/,;:,)H:'_,· ...;;.i;;;.fif,-,..,,,.W,
                                                                                         \;4i":::t~"'f9-'1i>fw/4.;" Mtiske            1




~~
                                    New Business-31
     ,:'li,:,E,l.;,Q:Q'Q Q   ,,\;;cc'.Q:.Q'.6,,'Gll::Q-: a::,.,a.,a':&:


                                     UNIT         SQUARE FT. -          '   - USE ,. -      -    i_   >"-" ' "''!':;,·,:•;/:,' j ~ ,-' '~ " "                        ~
                                      A'                 30,000        Residential                                                                    Sale Pending
                                       B                 30,000 .    · Residential                                                                    Sale Pending
                                       C                 25,000       Grand Valley State University                                                   SOLD
                                       D ..              40,000       Office                                                                          $500,000
                                       E                 40,000       Office                                                                          $500,000
                                       F                  6,500 .     Retail & Restaurant                                                             $195,000
                                       G          '' 18,500            Retail & Restaurant                                                            $525,000
                                      H-             20,000            Parmenter O'Toole                                                              SOLD
                                      y              20,000            Office                                                                         $600,000
                                   '-/J'                 22,000        Retail, Office & Residential                                                   Sale Pending
                                 <:::K•:,                22,000      · Retail, Office & Residential                                                   Sale Pending
                                       L                  4,500 ·_     Retail, Office & Residential                                                   Sale Pending
                                       M                  4,500        Residential                                                                    Sale Pending
                                       N.                14,000        Retail & Restaurant                                                            $750,000
                                     ',O                              . Residential (condominiums)                                                    $1,190,000
                                       p                  3,000      · Convenience Store I Gasoline                                                   $495,000
                                            All prices subject to change without notice. Contact broker for current prices
                                              ,.,.~ ..   --~.--"
                                                                r~2=~:C..:Cic:c:cc:c.i=,,'2~,Si.c;'lcc'.::~~.·E£D__ l:S OYN _ ,L.A. N D I N G




               ,,::~~-- business development incentives. Each site within the SmartZone is qualified
components.                                                                               • to be designated as a "Brownfield," which translates into a time-limited
                                                        ·                        _ .- _·: : opportunity to receive a Single Business Tax Credit equal to 10% of the
Featuring 34 acres of land with Muskegon Lake on one side and new · ·· purchaser's eligible investment at the site. Commercial businesses locating
Business 31 on the other, Edison Landing presents a unique development                         within this Enterprise Community Zone before the end of 2004 are eligible to
opportunity. The developer, Lakefront Development, LLC, has divided this · receive a substantial five-year tax abatement. In addition, Michigan law
parcel into .16 site condominium units ranging from 0.8 to over 6 acres. One of" . provides for 12-year; 50% property tax abatements for certain high-tech
the parcels will house the new home of Parmenter O'Toole, the. largest law- •. ···-research. and development offices and engineering buildings located within
firm along the lakeshore. On another parcel, Grand Valley State University.                    the SmartZone. Finally, 6ecause of the City's status as an Enterprise
will operate an energy-related research · and develof)ment facility and a··                    Community, commercial construction projects of up to $3 million may be
business incubator closely linked to its business and engineering schools. The               financed with tax-exempt revenue bonds. As part of a Local Development
 remaining sites are available for construction of buildings with uses consistent . Finance Authori(Ycb nearly all of the property tax revenue generated from this
with the Planned Unit Development already approved by the City of . ·.. SmartZone must e utilized on the site
 Muskegon. The master deed and Bylaws of the site condominium will provide                    .            ·         .
for many open areas, including th~ "'.Vaterfront, .w~ich "'{ill all9w f~r ac9ess.from .. Locating in Edison Landing offers additional b~nefi)s: This is the only
 both land and water. The conaomImum association will maintain stnct control . · waterfront SmartZone and tne only SmartZone with direct access to Lake
 over both the uses and architectural design of each of the buildings to be - Michigan. In addition, Edison Landing is on a major traffic route in a
 constructed, ensuring a harmonious look for Muskegon's new downtown. ·                 -. · - Metropolitan Statistical Area with one of tfle highest growth rates in the United
                                                                 .                  _ .•.· States and a population of our MSA exceeding one million people.
 It is easy to look at the site and see just the beautiful waterfront butthe ·
 impact and importance of Shoreline Drive is significant. The Michigan _.· It. has been. decades since the Muskegon lakeshore could be developed.
 Department of Transportation has approved the reairection of existing traffic · Now1 Edison Landing offers developers the first opportunity in generations to
 from Webster and Muskegon Avenues to the new Shoreline Drive,,_ wnIch will · ·. buila along the beautiful Muskegon Lake shoreline,. they can -do so with the
 be designated as Business U.S. 31. Once completed, Shor.eline urive traffic                    added benefits of new Business 31 and the SmartZone.




                                                                                                                  SmartZone'" ia a service mark of the Michiaan EconomicDeveloomentCorooration.
                       City of Muskegon Brownfield Plan Amendment
                                        July 2003


                          LEGAL DESCRIPTION
                   GILLESPIE DEVELOPMENT PROPERTY


The land is situated in the City of Muskegon, County of Muskegon, State of
Michigan and described as follows:

Units J, K, L, and M, Muskegon Lakeshore Smart Zone, a Site Condominium,
according to the Master Deed dated October 10, 2002, recorded October 11,
2002 in Liber 3503. Page 491, Muskegon County Records, and designated as
Muskegon County Condominium Subdivision Plan No. 100, together with the
rights in general common elements and limited common elements as set forth in
the above Master Deed and as described in Act 59 of the Public Acts of 1978, as
amended.
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003


SITE SPECIFIC PROVISIONS


F.     Loft Properties, LLC

Eligibility and Project Summary (Sec. 13(1)(h))

Loft Properties, LLC intends to acquire Lots A and B of the Muskegon Lakeshore
SmartZone, a site condominium known as Edison Landing located in downtown
Muskegon ("Loft Property"). A legal Description and map of the Loft Property is
included in Attachment F-1.

Several eligible activities have been conducted on the Loft Property. A Baseline
Environmental Assessment (BEA) and Due Care compliance analysis pursuant
to Part 201 of Michigan's Natural Resources and Environmental Protection Act
were conducted on the Property to facilitate its acquisition by Lakefront
Development LLC. A BEA will also be prepared on behalf of Loft Properties, LLC
prior to acquisition. The Property is also part of the "facility" addressed by a
Remedial Action Plan (RAP) prepared on behalf of TOY Industries for the former
Continental Motors/Teledyne site. The BEA and the RAP both conclude that the
Property is a "facility" pursuant to Part 201, and is therefore an eligible property
pursuant to Act 381. This eligible property includes all personal property.

Loft Properties, LLC intends to construct a 72-unit residential condominium
development on Lots A and B of Edison Landing. It is estimated that 10 new jobs
would be created by this development, with a capital investment of approximately
$1 O million. After completion of the Shoreline Drive East extension (estimated
Fall 2003), the project timetable calls for 4 phases of the project to be
constructed over a 5-year period.

Eligible Activities, Financing, Cost of Plan (Sec. 13(1)(a),(b),(c),(d),(g))

Eligible activities that have been conducted on the Property include preparation
of a Baseline Environmental Assessment and Section 7a (Due Care) Compliance
Analysis, and implementation of additional response activities as part of a RAP.
Future eligible activities on the Property will include preparation of a BEA on
behalf of Loft Properties LLC, and Due Care response activities, which may be
funded by the Muskegon CMI Brownfield Grant. Therefore, there are no eligible
costs proposed to be financed with tax increment revenues. Further, the
Property is in the LDFA District thereby making brownfield tax increment
financing unavailable. As such, there are no costs to the City of Muskegon or its
taxing jurisdictions as a result of the Loft Properties, LLC Property being included
in this Plan.
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003


Single Business Tax Credit

The Loft Property is included in the Plan to enable "qualified taxpayers" as
defined by Act 228 of 1975, as amended, to avail themselves of eligibility for a
credit against their Michigan single business tax liability for "eligible investments"
as defined by P.A. 228. "Eligible investments" include demolition, construction,
restoration, alteration, renovation, or improvement of buildings or site
improvements on eligible property and the addition of machinery, equipment, and
fixtures to eligible property after the effective date of this Plan Amendment.

Effective Date of Inclusion in Brownfield Plan

The Loft Properties, LLC Property was added to this Plan on _ _ _ _ _2003.
 City of Muskegon Brownfield Plan Amendment
                  July 2003




   ATTACHMENT F-1
 Site Map, Legal Description
Loft Properties, LLC Property
                                                                                                                       ---------




   .. 'NSW:sTisiness:11--,.
\t)1;t~Q,;Qf,:6».:GJ:;g~;;a?:Z-LG: ,;a;:~czi;}&:tr~\;{~>(Q'.i;'fu,4{4,· :;..4·:· 9 -4-4 'A '
       /:\:;;(\,·,'.>.\::                 . ' ..       '.
        '-~[,"'


         UNIT               SQUARE FT.             USE           " .        • ,•   , •. lr-llTIAtlO]j~lf{~~!ii!lfil\
                            :30,000        :. Residential                                 Sale Pendin.9.
                               30,000 "     Residential                                   Sale Pendin.9.
                             . 25,0.00"     Grand Valley State University                 SOLD
                               40,000       Office                                        $500,000
                               40,000.      Office                                        $500,000
         ..F:                . 6,500       ·· Retail & Restaurant                         $195,000
           G:               -18,500 •       Retail & Restaurant                           $525,000
           H.               . 20,000       -Parmenter O'Toole                             SOLD
           I                   20,000       Office                                        $600,000
     ·•VJ                      22,000 -     Retail, Office & Residential                  Sale Pending
       •·-K·                   22,000       Retail, Office & Residential                  Sale Pending_
           L                    4,500       Retail, Office & Residential                  Sale Pending_
           M                    4,500       Residential                                   Sale Pendin_g
           N                   14,000       Retail & Restaurant                           $750,000
           0                                Residential (condominiums)                    $1,190,000
           p                  3,000         Convenience Store I Gasoline                  $495,000
                  All prices subject to change without notice. Contact broker for current prices
                                                                                                            .Ei::D::LS,_:O.N:L.. L.cA.N_.D . 1· N .G




T H E O"Ji";'[~, ~t
In the spring of 2001, Muskegon joined an elite group of 11 Michigan: : .is expected to exceed 20,000 vehicles per day. This will make Shoreline Drive
communities receiving a SmartZone designation from the State of Michigan. ;: Muskegon's main roadway, a gateway to downtown Muskegon and Muskegon
The Muskegon Lakes~ore Smartzqne, called Edison Landin_g, is ~ Joint : Lake.... · · . . ,                             ._       ·           .   ·      ·
venture between the private and public sector to re-develop a critical piece of ..:· :: · .: ., ,.. · .. . ..•                •
Downtown Muskegon's shoreline as a mixed-use development that includes',, ..Participation in Edison Landing is sul)ported by the aggressive use of
residential, commercial, retail,· office/commercial .and recreational i ,b.usiness development incentives..Each site within the Smartzone is qualified
components.                                                               ·                : to be designated as a "Brownfield," which translates into a time-limited
                                                                             .       , . ·, opportuni!}'. to receive a Single Business Tax Credit equal to 10% of the
Featuring 34 acres of land with Muskegon Lake on one side . and new:- . purchasers. eligible investment at the site. Commercial businesses locating
Business. 31 on the other, Edison Landing presents a unique d~vE!llopme(lF . ·· withi)1 this Enterpri~e C9mmunity Zone before the end of .~004 ar/3 eiligible to
opportyrnty. Th!) develop~r,. Lakefront D~velopment, LLC, has d1v1ded this-::; •· rece!ve · a substantial five-year tax abatement. In addition, ~1ch1gan law
parcel into 16 site condominium urnts ranging from 0.8 to over 6 acres. One of•·.:.: :•. prov1des., . for 12-year, 50%. property tax abatements for certain high-tech
the parcels will house the new home of Parmenter O'Toole, the largest law , : ; research and development, offices and engineering buildings located within
firm along the lakeshore. On another parcel, Grand Valley State University:,. the,SmartZone. · Finally, because of the City's status as an Enterprise
will . oper<1.te an energy-re!ated re~earch. and developmenr facility and ·a:: ,:Qommunity, commercial construction projects of up to $3 million may be
business incubator closely linked to its business and engineering schools. The ., : ,• financed with taxaexempt revenue bonds. As part of a Local Development
remaining sites are available for construction of buildings with uses consistent. .· Finance Authorityb nearly all of the property tax revenue generated from this
with the Planned Unit Development already. approved. ~y thei City_ of ' SmartZo[le must e utilized on the site                                      .
Muskegon. The master deed and Bylaws of the site condomIrnum will provide •·. : ,. , · · ·                         - ... -                              ·.
for many open areas, including the waterfront, which will allow for access from .· Locating in Edison Landing offers additional benefits: This is the only
both land and water. The conaominium association will maintain strict control                  waterfront Smartzone and tfle only SmartZone with direct access to Lake
 over both the uses and architectural design of each of the buildings to be                    Michigan. In addition, Edison Landing is on a major traffic route in a
constructed, ensuring a harmonious look for Muskegon's new downtown. ; •.·•. ·: · Metropolitan Statistical Area with one of tfle highest growth rates in the United
                                                                             ·     ..·. States and a population of our MSA exceeding one million people.
 It is easy to .look at the site and ::;ee ju~t th\3 beiau\iful waterfront put; the ..          . ·. ·.      .           · .
 impact and importance of Shoreline Dnve Is s1grnf1cant. The M1ch1gan                          It has been· decades. since the Muskegon lakeshore could be developed.
 Department of Transportation has approved the redirecti9n of !)Xisting tra.ffi_c• . .· ·. -.· Nqwi:i. Edis.on La.nding _.offers developers the first 9pportunity in generati9ns to
 from Webster and Muskegon Avenues to the new Shoreline Dnve,_ wti1ch w111. ·- .: ·... bu1I along the beautiful Muskegon Lake shoreline, they can do so with the
 be designated as Business U.S. 31. Once completed, Shoreline urive traffi~ :. ; .added benefits of new Business 31 and the Smartzone. .




                                                                                                                    SmartZone'M ia a service mark of the Michigan EconomicDeveloomentCorooration.
                       City of Muskegon Brownfield Plan Amendment
                                        July 2003


                         LEGAL DESCRIPTION
                     PARMENTER O'TOOLE PROPERTY


The land is situated in the City of Muskegon, County of Muskegon, State of
Michigan and described as follows:

Unit H, Muskegon Lakeshore Smart Zone, a Site Condominium, according to the
Master Deed dated October 10, 2002, recorded October 11, 2002 in Liber 3503.
Page 491, Muskegon County Records, and designated as Muskegon County
Condominium Subdivision Plan No. 100, together with the rights in general
common elements and limited common elements as set forth in the above
Master Deed and as described in Act 59 of the Public Acts of 1978, as amended.
                                                                 ~~~--·,---=---             ~---------tE::otl . s_io _ N•.-iL_,A_"_N- (ll _ ._N_ G




THE

In the spring of 2001, Muskegon,joined an elite groui:i of 11 Michigan            is expected to exceed 20,000 vehicles per day. This will make Shoreline Drive
communities receiving a Smartzone designation from the State of Michigan. _ Muskegon's main roadway, a gateway to downtown Muskegon and Muskegon
The Muskegon Lakeshore Smartzone, called Edison Landing, is a Joint               Lake.
venture between the private and public sector to re-develop a crifical piece of
Downtown Muskegon's shoreline as a mixed-use development that includes __ Participation in Edison Landing is sul)ported by the aggressive use of
residential, commercial, retail, office/commercial and recreational -- -business development incentives. Each site within !he Smartzone is qualified
components.                                                                       to be designated as a "Brownfield," which translates into a time-limited
                                                                               _  opportuni!Y- to receive a Single Business Tax Credit equal to 10% of the
Featuring 34 acres of Jang, with Muskegon Lake on one side and new_--__ ·•- -purchasers eligible investment at the site. Commercial businesses locating
Business 31 on the other, t:dison Landing presents a unique development _ within this Enterprise Community Zone before the end of 2004 are eligible to
opportunity. The developer, Lakefront Development, LLC, has divided this - receive_ a substantial five-year tax abatement. In addition, Michigan law
parcel into 16 site condominium units ranging from 0.8 to over 6 acres, One of,,_ provides for 12-year, 50% property tax abatements for certain high-tech
the parcels will house the new home of Parmenter O'Toole, the largest law , -research and developmentboffices and engineering buildings located within
firm along the lakeshore. On another parcel, Grand Valley State Lrniversity.      the Smartzone. Finally, _ ecause of the City's status as an Enterprise
will operate an energy-related research and develol)ment facility and
business incubator closely linked to its business and engineering schools. The
                                                                              a - -,
                                                                                  Community, commercial construction projects of up to $3 million may be
                                                                                  financed with tax-exempt revenue bonds_ As part of a Local Development
remaining sites are available for construction of buildings with uses consistent  Finance Authorityb nearly all of the 1:>roperty tax revenue generated from this
with the Planned Unit Development already approved by the City of                 SmartZone must e utilize_d on the site
Muskegon. The master deed and Bylaws of the site condominium will provide          .-_   ,_         _
for many open areas, including the waterfront, which will allow for access from ' Locating in ,Edison Landing offers additional benefits: This is the only
both land and water. The condominium association will maintain strict control --- waterfront Smartzone and tfie only SmartZone with direct access to Lake
over both the uses and architectural design of each of the buildings to be - Michigan. _In addition Edison Landing is on a major traffic route in a
constructed, ensuring a harmonious look for Muskegon's new downtown.               Metropolitan Statistical Area with one of tfie highest growth rates in the United
                                                                                   States and a population _of our MSA exceeding one million people.
It is easy to look at the site and see jJJst the beautiful waterfront out the
impact and importance of Shoreline Drive is significant. The Michigani It has been decades since the Muskegon lakeshore could be developed.
Department of Transportation has approved the redirection of existing traffic      Now, Edison Landing offers developers the first opportunity in generations to
from Webster and Muskegon Avenues to the -new Shoreline Drive,_ wnIch will         buila along the beautiful Muskegon Lake shoreline, they can do so with the
be designated as Business U.S. 31. Once completed, Shoreline urive traffic         added.benefits of new Business 31 and the Smartzone_




                                                                                                          SmartZone'" ia a service mark of the Michigan Economic Development Corporation.
                                                                                                                                                     -----------




UNIT   - SQUARE FT-~   ~   ,;- --     ·:::1-~.'·u·ss~- i:-:t;:: ,:;;r..:;,,::::4-;"-;('t-"l~•:'"':'.-;1-";''f:!liNIJJA•i<'a L~i'i'"i"""''"'·~"''-:,
                  •         •         'J")   -        ,-;"--•      -:,.."'-.   ~   • - _,~' •~   -~-!:,,~   ~o=eottice                                                                    $600,000
                                · /Retail,:Office & Residential                                              Sale Pendin.9.
                                  . : Retail, Office &•Residential                                           Sale Pendin.9.
                                · ·• ·Retail, Office.& Residential                                          •Sale Pendin.9.
                                      Residential                                                            Sale Pendin.9.
                                    . Retail & Restauranf. . ·                                               $750,000
                                     Residential (condominiums) ·                                            $1,190,000
City of Muskegon Brownfield Plan Amendment
                 July 2003




  ATTACHMENT G-1
Site Map, Legal Description
    Parmenter Property
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003


Further, the Property is in the LDFA District thereby making brownfield tax
increment financing unavailable. As such, there are no costs to the City of
Muskegon or its taxing jurisdictions as a result of the Parmenter Property being
included in this Plan.

Single Business Tax Credit

The Parmenter Property is included in the Plan to enable "qualified taxpayers" as
defined by Act 228 of 1975, as amended, to avail themselves of eligibility for a
credit against their Michigan single business tax liability for "eligible investments"
as defined by P.A. 228. "Eligible investments" include demolition, construction,
restoration, alteration, renovation, or improvement of buildings or site
improvements on eligible property and the addition of machinery, equipment, and
fixtures to eligible property after the effective date of this Plan Amendment.

Effective Date of Inclusion in Brownfield Plan

The Parmenter Property was added to this Plan on ------'2003.
                         City of Muskegon Brownfield Plan Amendment
                                          July 2003


SITE SPECIFIC PROVISIONS


G.     Parmenter O'Toole

Eligibility and Project Summary (Sec. 13(1 )(h))

Parmenter O'Toole intends to lease Unit H of the Muskegon SmartZone, a site
condominium known as Edison Landing located in downtown Muskegon
("Parmenter Property") from an entity that will be owned by the shareholders of
Parmenter O'Toole. A Legal Description and map of the Parmenter Property is
included in Attachment G-1.

Several eligible activities have been conducted on the Parmenter Property. A
Baseline Environmental Assessment (BEA) and Due Care compliance analysis
pursuant to Part 201 of Michigan's Natural Resources and Environmental
Protection Act were conducted on the Parmenter Property to facilitate its
acquisition by Lakefront Development LLC. A BEA will also be prepared on
behalf of Parmenter O'Toole prior to execution of its lease. The Parmenter
Property is also part of the "facility" addressed by a Remedial Action Plan (RAP)
prepared on behalf of TOY Industries for the former Continental Motorsrreledyne
site. The BEA and the RAP both conclude that the Parmenter Property is a
"facility" pursuant to Part 201, and is therefore an eligible property pursuant to
Act 381. This eligible property includes all personal property.

The planned Parmenter project involves the construction of the law offices of
Parmenter O'Toole. The building will contain approximately 20,000 square feet
of office space. Pending completion of the Shoreline Drive extension and the
infrastructure improvements within Edison Landing, Parmenter intends to initiate
site preparation in Fall 2003. Parmenter currently employs 38 FTE's, which will
relocate from their current Apple Ave. location to the Edison Landing site.
Parmenter also estimates that it will employ an extra four (4) to eight (8) people
following the relocation to its new offices. These positions will include attorneys,
paralegals, legal secretaries, administrative personnel and support staff. Current
estimates indicate that this project will involve over $4 million in private
investment.

Eligible Activities, Financing, Cost of Plan (Sec. 13(1)(a),(b),{c),{d),{g))

Eligible activities that have been conducted on the Parmenter Property include
preparation of a Baseline Environmental Assessment and Section 7a (Due Care)
Compliance Analysis, and implementation of additional response activities as
part of a RAP. Future eligible activities on the Parmenter Property will include
preparation of a BEA on behalf of Parmenter O'Toole and Due Care response
activities, which may be funded by the CMI Brownfield Grant. Therefore, there
are no eligible costs proposed to be financed with tax increment revenues.
                       City of Muskegon Brownfield Plan Amendment
                                        July 2003


                          LEGAL DESCRIPTION
                    LOFT PROPERTIES, LLC PROPERTY


The land is situated in the City of Muskegon, County of Muskegon, State of
Michigan and described as follows:

Units A & B, Muskegon Lakeshore Smart Zone, a Site Condominium, according
to the Master Deed dated October 10, 2002, recorded October 11, 2002 in Liber
3503. Page 491, Muskegon County Records, and designated as Muskegon
County Condominium Subdivision Plan No. 100, together with the rights in
general common elements and limited common elements as set forth in the
above Master Deed and as described in Act 59 of the Public Acts of 1978, as
amended and together with those riparian rights appurtenant to Unit A and 8
owned by Seller as determined by survey.
Date:               August 5, 2003

To:                 Honorable Mayor and City Commissioners

From:               Ken James, Affirmative Action Director

Re:                 Disadvantaged Contractor Recommendations


Summary of Request:

To approve the attached list of recommendations to the City's bid proposal
process.

Financial Impact:

None

Budget Action Required:

None

Staff Recommendation:

Staff recommends approval (The City's Equal Opportunity Committee
approved this document on 6/23/03)

Committee Recommendation:

NA
.-·                            PARMENTER a-TOOLE
                                                   Attomqs at Law


                          175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786
                                 Phone 231.722.1621 • Fax 231.722.7866 or 231.728.2206
                                                 www.Parmenterlaw.com




  July 3, 2003

  Ken James, Affirmative Action Director
  City of Muskegon
  933 Terrace
  P.O. Box 536
  Muskegon, MI 49443-0536

  Dear Mr. James:

  You requested our opinion regarding the recommendations to amend sections of the bid proposal
  process, a copy of which is attached. I presume this applies to all bids for construction projects
  regardless of which department is overseeing the project. The only changes arising from the
  amendments are the inclusion of paragraphs· la, le, and 7.

  The amendments would:

  1.     Require contractors to contract disadvantaged subcontractors or explain why the
         disadvantaged subcontractors were not contacted;

  2.     Provide bid approval authority to the Affirmative Action Director for the purpose of
         ensuring that City regulations were followed; and

  3.     Add the Urban League to the list of bid document holders.

  While there is no legal impediment, you may wish to consider the following:

  1)     You may wish to define "disadvantaged contractor" so that contractors and
         subcontractors can comply;

  2)     You may wish to treat the Urban League as you do any other bid holder.

  If you have any other questions, please feel free to contact me.

  Very truly yours,

  ") c\_ "'-- C . SC ti~'-'
  John C. Schrier
  Direct: 231.722.5401
  Fax: 231.728.2206
  E-Mail Address: [email protected]
  Attachment
                                                            Last Updated, August 5, 2003


                     Disadvantaged Contractor Recommendations

   1. Bid contract changes
          a. Disadvantaged Contractor Affidavit
          b. Diversity Participation and Local Employment Effort
          c. Affirmative Action Director review oflowest responsible bidder
   2. Bidder list information
   3. County Wide Certification
   4. List of Local Disadvantaged Contractors*
   5. Best practice efforts of other communities
   6. Scope of project breakdown
   7. Urban League as a bid document holder


Definition: Disadvantaged Contractor
For the purpose of this document a disadvantaged contractor refers to businesses that are
owned and controlled by minorities, women, and other socially and economically
disadvantaged persons. The overall goal is to create a level playing field on which
disadvantaged contractors can compete fairly for contracts and sub-contracts with the
City of Muskegon.
    Introduction

The Affirmative Action Department recommends seven changes concerning the City of
Muskegon's current bid proposal process. By implementing the recommended changes
the City will be able to enhance its bidding process to include more participation from
disadvantaged business professionals .

   .L Bid contract changes:

           a.   Disadvantaged Contractor Affidavit

The recommendation is that a disadvantaged contractor affidavit be added to the City of
Muskegon current bidding forms. This affidavit would require all bidders to list all
disadvantaged contractors that were contacted to participate on the project as sub-
contractors. The bidder must clearly state which disadvantaged contractors were
contacted and, if not considered, the reason why.

           b. Diversity Participation and Local Employment Effort

The recommendation is that attention is called to pages "v" and "vi" under the Invitation
for Bids section, and page 55 of part 3, section 2, Affirmative Action to Ensure Equal
Employment Opportunity. This department further recommends that City language
includes that Qualified Disadvantaged Contractors must be considered on City projects
and Prime Contractors/Bidders must consider utilizing Disadvantaged Contractors as sub-
contractors on City projects.

           c. Affirmative Action Director Review of lowest responsible bidder

The recommendation is that any lowest responsible bidder referred to the City
Commission by any City Department includes the approval of the Affirmative Action
Director. This is to ensure that all regulations were met by the bidder during the bid
process.

   2. Bidder list information:

The recommendation is that an official list of all bid holders be maintained in City
Clerk's office. The list should include name of business, contact person, business
address, telephone number, fax number, and email address if applicable. This
information is to be available upon request to any individual wishing to be considered as
sub-contractor.

   .1. County Wide Certification:
This department recommends that the City of Muskegon continues to work with other
county agencies in formalizing a certification process.
    4. List of Local Disadvantaged Contractors:

The Affirmative Action Department will maintain an accurate list of local disadvantaged
contractors and this same list will be provided to all bid holders.

Please note, once the County Wide Certification process is complete, the Affirmative
Action Department will maintain a certified list of local disadvantaged contractors.

   ~   Best practice efforts of other communities:

The Affirmative Action Department will remain abreast of new practices and current
trends utilized by other communities that may enhance our efforts. If deemed necessary,
new recommendations will be made.

   6. Scope of project breakdown:

The City of Muskegon will continue to include on its construction sheets all jobs broken
down by job specification. This is to ensure that sub-contractors can know the specific
needs of the project and focus their particular trade.

   7. Urban League as a bid document holder:

The recommendation is that the Urban League of Greater Muskegon, located at 425
Catawba, Muskegon, MI, 49442, is named as a bid document holder. Bids mailed to the
Urban League are for viewing purposes only. Anyone interested in bidding on a City of
Muskegon project must pick up bidding forms from the City Clerk's office. By naming
the Urban Leagues as a bid holder, bid documents will be available for view at the City of
Muskegon in the Clerk's, Engineer's, and Affirmative Action offices, as well as the
Urban League of Greater Muskegon.




Adopted by the Equal Opportunity Committee on, June 23, 2003
                                                                   Chahperson




Approved by the Muskegon City Commission on, August 12, 2003 _ _ _ _ _ _ __
                                                             Mayor
                                                 INVITATION FOR BIDS

                                          CITY OF MUSKEGON, MICHIGAN

  Project Title       H-1564 NIMS ST. & IRWIN AVE., WOOD ST. TO GETTY ST.

  The City of Muskegon, Michigan will receive sealed bids until 2:00 p.m. local time on May 20,
  2003 at the City Clerk's Office, City Hall 933 Terrace Street, Muskegon, Michigan, at which time
  and place all bids will be publicly opened and read aloud for the following Project:

  *Items of work include:
  Asphalt: 7,495 Sq. Yd. Aggregate Base Course 22A @8" C.I.P.; 1,838 Tons Various Bit
  Mix (3C@ 165#/Sq. Yd. & 4C Mod. Polymer Asphalt@ 220#/Sq. Yd.); 4,910 Lin. Ft.
  Concrete Curb & Gutter F-4 Mod.; 1,972 Cu. Yd. Excavation; 7,130 Sq. Yd. Removing
  Pavement; and other related items (Engineer's estimate is $324,104.30)
  or:
  Concrete: 270 Tons Various Bit. Mix (3C@ 165#/Sq. Yd. & 4C Mod. Polymer Asphalt@
  220#/Sq. Yd.); 8,555 Sq. Yd. Concrete Pavement w/6" Integral Curb Non-Reinforced;
  1,047 Cu. Yd. Excavation; 7,130 Sq. Yd. Removing Pavement; and other related items
  (Engineer's estimate is $426,419.30)
  Copies of Plans and Specifications may be obtained on or after, May 5, 2003 by depositing $25
  with the City Clerk for each set. Deposit will be refunded if Documents are returned in good
  condition within 10 days after Bid Opening. An amount equal to five percent (5%) of the Bid
  must be submitted with each Bid Proposal in one of three forms acceptable to the City of
  Muskegon. Contract documents may be examined at the following locations:

               Builders & Traders Exchange, Grand Rapids
               F.W. Dodge Publishers, Grand Rapids
               City Engineer's Office, Muskegon City Hall

  Attention is called to the fact that the City requires: that the Contractor consider hiring local
  work force insofar as possible; that not less than the salaries and wages set forth in the
  Specifications must be paid; that 14% minority and 6.9% female are the goals established for
  participation in each trade; that the Contractor must ensure employees and applicants for
  employment are not discriminated against based upon their race, creed, color, religion, sex,
  national origin, handicapped condition nor veteran background; and that all pertinent regulations
  must be complied with. No bid may be withdrawn within sixty (60) days after bid opening.

  :he City of Muskegon reserves the right to reject any or all bids or to waive any informalities or
  irregularities in the bidding.

· A Pre-Bid Conference will be held in the second floor conference room (Rm. 203) at City Hall,
  at 10: 00 a.m. on May 13, 2003, at which time and place any questions regarding this Project
  should be presented. Minutes from said Pre-Bid Conference will become and Addendum to the
  Contract.
                                                                     CITY OF MUSKEGON, MICHIGAN
                                                                     By: Gail A. Kundinger, City Clerk
  PUBLISH:            May 3, 2003

1frhe       City ·11   .                                       ADA POLICY                                     . .     .
 ~a<',~~(Uo. ta ~s provide ~ecess~ry a?propriate auxilliary aids services, for example, signers for the hearing impaired,
       · rs noi' tfor th e v_,sually impaired, etc .. for disabled persons who want at attend the meeting, upon twenty-four
                  O
        :..,-· ice the City. Contact:
      l>i,,·

                                              Gail A. Kundinger. City City Clerk
                                          933 Terrace Street, Muskegon, Ml 49440
                                           (231) 724-6705 or TDD (231) 724-6773
                                                                V
      NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO ENSURE EQUAL
               EMPLOYMENT OPPORTUNITY (Executive Order 11246)

1. The Bidder's attention is called to the "Equal Opportunity Clause" and the "Standard
   Adopted Equal Employment Specifications" set forth in Part 3, Section II, of the these
   Documents.

2. The goals and the timetables for minority and female participation, expressed in
   percentage terms for the Contractor's aggregate workforce in each trade on all
   construction work in the covered area, are as follows:

             TRADE                       GOALS FOR PARTICIPATION IN EACH TRADE
                                              MINORITY               FEMALE

             ALL                                    14%                        6.9%


   These goals are applicable to all the Contractor's construction work (whether or not
   it is Federal or Federally-assisted) performed in the covered area. If the Contractor
   performs construction work in a geographical area located outside of the covered
   area, it shall apply the goals established for such geographical area where the work
   is actually performed. With regard to this second area, the Contractor also is subject
   to the goals for both its Federally involved and nonfederally involved construction.


   The Contractor's compliance with the Executive Order and regulations in 41 CFR Part
   60-4 shall be based on its implementation of the Equal Opportunity Clause, specific
   affirmative action obligations required by the specifications set forth in 41 CFR 60-
   4.3(a), and its efforts to meet the goals. The hours of minority and female
   employment and training must be substantially uniform throughout the length of the
   Contract, and in each trade, and the Contractor shall make a good faith effort to
   employ minorities and women evenly on each of its projects. The transfer of minority
   or female employees or trainees from contractor to contractor for from project to
   project for the sole purpose of meeting the contractor's goals shall be a violation of
   the Contract, the Executive Order, and the regulations in 41 CFR Part 60-4.
   Compliance with the goals will be measured against the total work hours performed.

3. The Contractor shall provide written notification to the Director of the Office of
   Federal Contract Compliance Programs within 10 working days of award of any
   construction subcontract in excess of $10,000 at any tier for construction work under
   the Contract resulting from this solicitation. The notification shall list the name,
   address and telephone number of the subcontractor; employer identification number
   of the subcontractor; estimated dollar amount of the subcontract; estimated starting
   and completion dates of the subcontract; and the geographical area in which the
   contract is to be performed.
4
 · ~s Used in this Notice, and in the Contract resulting from this solicitation, the
    covered area" is the City of Muskegon, County of Muskegon, State of Michigan.




                                           vi
                   NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION

                   TO INSURE EQUAL EMPLOYMENT OPPORTUNITY AND

                       PROHIBITING DISCRIMINATION IN EMPLOYMENT

                                  (Federal Executive Order 112461

                               Michigan: Elliot-Larson Civil Rights Act


The attention of bidders fa particularly called lo the requfrements for ensuring that employees and
applicants for employment are not discriminated against.

During the performance of this contract, the contractor agrees as foflows:

       The contractor will not discriminate against any employee or applicant for employment
       because of religion, race, color, national origin, age, sex, height, weight, familial status,
       marital status, handicapped, or status as a Vietnam era veteran. The contractor will take
       affirmative action to ensure that applicants are employed and that employees are treated
       during employment, without regard to their religion, race, color, national origin, age, sax,
       hsight, weight, familial status, marital status, handicapped condition or veteran
       background. Such action shall include, but not be limited to, the following: employment,
       upgrading, demotion, or transfer; recruitment or recruitment advertising, layoff or
       tennlnatlon; rates of pay or other forms of compensation; selection for training, including
       apprenticeship.

                                 LOCAL EMPLOYMENT EFFORT

       The City of Muskegon requires that the contractor must hire local trades and labor
       employees from the City of Muskegon, County of Muskegon and/or this SMSA (Standard
       Metropolitan Stallstlcal Area, for the duration of this project, Insofar as these are avallable
       to perform the necessary work. Supervisory and/or technical staff officlals are exempt
       from this requirement.

                      LABOR STANDARDS PROVISIONS
         EMPLOYMENT AND PREVAILING WAGE AND SALARY REQUIREMENTS

\ .. • attention of bidders Is particularly ca fled to the requirements covered In these documents
 ,concemlng the payment of not less than the prevailing wage and salary rates specified, and In
 ',"81nl to conditions of employment with respect to certain categories and classlflcatlons of
 lnlployees.

    laborers and mechanics employed by this contract shall be paid unconditionally and not less
    none, each week, and without subsequent deduction or rebate on any account (except euch
    roll deductions as are permitted by the applicable regulations Issued by the City or
     kegon).




                                                  55
                                     Disadvantaged Contractor Affidavit

Please provide the name(s) of all Disadvantaged subcontractors from whom you solicited bids for this project
and additional information below.

Disadvantaged Contractor:     Contact Person:        Contact Method/Date:          Decision (Yes or No):

1.- - - - - -- - -



2._ _ _ __ _ __ _




3.-   -   - - - -- - -




4.- - - --     ----


Of the Disadvantaged Contractors listed above, please indicate why they will not be used on this project.

Disadvantage Contractor:             Decision/Reason:

1.- -- -- - - -




2.- - - -- - - -
                 Commission Meeting Date: August 12, 2003




Date:         July 29, 2003
To:            Honorable Mayor and City Commissio
From:          Planning & Economic Development:
RE:
                                                       - ---
              Request for final Planned Unit Development approval for a
              40-unit senior housing development at McLaren St. and
              Wesley Ave.


SUMMARY OF REQUEST:

Request for final approval for a 40-unit senior housing development at McLaren St. and
Wesley Ave. in the Jackson Hill neighborhood. The request is from the Sterling Group.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends final PUD approval for the development and approval of the
associated plans provided that the conditions listed in the attached resolution are met.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended final approval of the PUD and associated
plans, with the conditions listed on the attached resolution, at a special meeting held on
7/28. The vote was unanimous, with T. Johnson and T. Harryman absent.




7/29/2003
                                  CITY OF MUSKEGON

                                   RESOLUTION #2003-. 64 ( b)

   RESOLUTION FOR FINAL PLANNED UNIT DEVELOPMENT APPROVAL FOR THE
        PROPOSED DEVELOPMENT AT MCLAREN ST. AND WESLEY AVE.

WHEREAS, a petition for a planned unit development was received from the Sterling Group and,

WHEREAS, a planned unit development will allow a 40-unit senior residential development; and,

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

WHEREAS, the Planning Commission and staff have recommended approval of the final Planned
Unit Development and associated site and landscaping plans, with conditions as follows:

I. The development will remain a senior complex for ages 55 and older as long as the PUD is in
   effect.
2. The proposed vacation ofa portion of McLaren St. and the proposed re-alignment of McLaren
   St. and Sumner Ave. must be approved by the City Commission or this PUD approval will be
   void.
3. Sign permits will be obtained for all proposed signage and signs will meet ordinance
   requirements.
4. The construction plans for Sumner and McLaren must be submitted to and approved by the
   Engineering Department and must contain local street dimensions such as width of street a
   minimum of 27 feet back-to-back and right-of-way of no less than 50 feet, to be dedicated to
   the City.
5. Fire hydrants shall comply with International Fire Code Appendix C.
6. The walking trail shown on the site plan will be paved with asphalt.

NOW, THEREFORE, BE IT RESOLVED that the recommendation by staff and the City
Planning Commission be accepted and the final planned unit development is hereby approved
with conditions.

Adopted this 12th day of August, 2003

        Ayes: 7

        Nays:   o

        Absent: O
                    CERTIFI CATE (Final PUD for McLaren St/Wesley Ave.)

        The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of a
resolution adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the 12th day of August, 2003, at which meeting a quorum was present and
remained throughout, and that the original of said ordinance is on file in the records of the City of
Muskegon. I further certify that the meeting was conducted and public notice was given pursuant
to and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended, and
that minutes were kept and will be or have been mad available as required ereby.

DATED:     Au3      1.!J. 'fh.     , 2003.
                                                Gail A. Kundinger, MMC
                                                Clerk, City of Muskegon
                                                                                                                                                                                                                                                                                              N
City of Muskegon
Planning Commission                                                                                                                                                                                                                                                                    W~E

Case# 2003-28                                                                                                                                                                                                                                                                                 s

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  600                                                        0                                                             600                                        1200 Feet
                                             CITY OF MUSKEGON
                                           PLANNING COMMISSION
                                              SPECIAL MEETING
                                             MINUTES [EXCERPT]

                                                   July 28, 2003

P. Sartorius called the meeting to order at 4:06 p.m., and roll was taken.

MEMBERS PRESENT:                        J. Aslakson, B. Mazade, S. Warmington, P. Sartorius, B. Smith,
                                        T. Michalski, L. Spataro

MEMBERS ABSENT:                         T. Johnson, excused; T. Harryman, excused.

STAFF PRESENT:                          D. Steenhagen, H. Griffith

OTHERS PRESENT:                         S. Czadzeck, Driesenga & Associates; K. Heckaman, Vice-
                                        President of Sterling Group; J. Boss, Sterling Group; B. Holmes,
                                        Jackson Hill Neighborhood Association; J. Schrier, City Attorney.

APPROVAL OF MINUTES

A motion to approve the minutes of the regular meeting of July 10, 2003 was made by L.
Spataro, supported by S. Warmington and nnanimously approved.

OLD BUSINESS

Case 2003-28: Request for final Planned Unit Development approval for a senior housing
development at McLaren St. and Wesley Ave., by The Sterling Group (tabled). D. Steenhagen
gave the staff report. The applicant has submitted a revised site plan for the proposed
development, as well as a building floorplan which is to scale. The site plan shows 16 duplex
buildings (32 units) and two 4-unit buildings (8 units) for a total of 40 units for the
development. There is also a proposed office and clubhouse building. The proposed buildings
are situated along the proposed re-aligned McLaren St., and Sumner Ave. and the existing
Wesley Ave. There are 14 two-bedroom units shown and 26 one-bedroom units. Each unit is
proposed to have a one-stall garage with an additional parking space in the driveway in front of
the garage. There are tlu·ee proposed spaces for the office and clubhouse. The zoning
ordinance requires 15% common, usable open space for a residential development. The newest
site plan does show 20% open space including a walking trail. Setbacks for the structures from
the streets are shown on the revised site plan. The structures appear to average about 11 feet
from the roads with the garages recessed further to allow room for one car to park in the
driveways in front of the garages. The site plan shows screening in all required areas and
indicates that the screening will meet ordinance requirements. Building dimensions are shown
on the revised site plan. An elevation of a proposed design has been provided. The revised site
plan states that "exteriors of buildings will have varying sidings, colors, and aesthetic
treatments".


Planning Commission Minutes - 7/28/03                                                                  1
A landscape plan has been submitted. The exact locations of existing trees are not shown, but
the developer has agreed to walk the site with staff and the landscape architect in order to
develop a comprehensive tree protection plan. This is indicated and agreed to on the landscape
plan. The plan also states that all effmts will be made to "replace vegetation in a manner that is
reasonable and effective". The landscape plan shows a variety of species of trees (canopy,
evergreen and flowering), shrubs and other landscaping materials, including street trees along
the proposed Sumner Ave. extension and the Wesley Ave. cul-de-sac, as well as landscaping
buffers along the adjoining residential prope1ties. Staff has spoken to the developer about
working together with the landscape architect on a tree protection plan and on a plan for tree
replacement (in addition to already proposed landscaping) for the site. This type of approach
has worked well with another recent development and staff feels comfortable that the developer
and landscape architect understand the City requirements for tree replacement. A performance
guarantee for landscaping should be required, to be put in place during the construction process
to ensure that all landscaping is in place before any Certificates of Occupancy are issued for the
development. The landscaping plan shows details of placement, size and species. A good mix
of landscaping materials is provided. Street trees are provided as well. Sidewalk is shown
along both sides of most of the proposed McLaren and Sumner Streets as well as the Wesley
Ave. cul-de-sac. A location for an identification sign is shown on the site plan. Any site
signage must meet ordinance requirements for size and placement and sign permits must be
obtained at the time that signs are placed on the property. The ordinance permits entranceway
monument signs for residential developments of up to 12 square feet. One sign for each major
public road frontage may be provided. Signs shall not exceed eight feet in height. Site signage
will be addressed when sign permits are applied for, as is common practice. Staff has received
a letter committing to fire suppression in all buildings. This meets the requirements of the Fire
Marshal. Other requirements of the Fire Marshal (regarding hydrants) and the City Engineer
can be addressed during the construction plan and building permit process.

A floorplan has been submitted which is to scale. Staff has calculated that the one-bedroom
units are proposed to have approximately 730 square feet while the two-bedroom units are
proposed to have approximately 900 square feet. The unit sizes are below the ordinance
requirements for one and two-family residential dwelling units (the ordinance requires 960 for a
one-bedroom and 1060 for a two-bedroom). The Zoning Ordinance is structured so that it has
one set of requirements for living space for one or two-family units and a separate set for
apmtments (defined as more than two units). It may not in some cases be appropriate to require
a duplex unit to have the smne living space as a single-family home as duplexes are generally
smaller sized in many cases. Requiring a duplex to meet the smne living space requirements as
single-family homes in essence, requires them to be the same size as two single-family homes
stuck together, which is not the case for many duplexes. In this case, two of the proposed
buildings are four-units, and therefore those buildings need to meet the requirements for
apartment living sizes anyway. For apmtment units, the ordinance requires 650 square feet for a
one-bedroom unit, and 875 square feet for a two-bedroom unit. The proposed units meet these
requirements. Treating this development as a series of apartment units seems reasonable to
staff. The zoning ordinance requires storage space of at least 15% of the interior living space of
each dwelling unit, exclusive of auto storage or attic storage, to be provided within the structure.
The proposed units do not meet this requirement. Both the one and two-bedroom units have
approximately 4% of storage space, comprised of storage closet areas. Staff has spoken with
Billie Joy Holmes, Vice-President of the Jackson Hill Neighborhood Association. The former
Planning Commission Minutes - 7/28/03
                                                                                                  2
president of the association has resigned his position and Ms. Holmes is the current
spokesperson for the group. Staff made sure that Ms. Holmes understood the development
plans and invited her to come and look at the site plan if she so wished. Ms. Holmes stated that
she would bring the issue up at the next neighborhood board meeting and would either get back
to staff with the neighborhood's comments on the development or a representative would come
to the special meeting.

T. Michalski stated that the walkway is proposed to be gravel according to the site plan. He
asked if this was acceptable according to zoning ordinance requirements. D. Steenhagen stated
that staff would propose that it be a paved surface. K. Heckaman stated that they would be
using normal black asphalt for the walkway. S. Czadzeck described the process for the
walkway. J. Aslakson asked if the applicant was aware of the proposed conditions for approval.
J. Boss stated that they were. T. Michalski asked if there was any way to insure that this would
remain a senior complex. B. Mazade stated that it would be done through the PUD process and
enforced. D. Steenhagen added that it was also required in order for the applicant to get the tax
credits. J. Schrier stated that the court doesn't like deed covenants. It is also hard to say what
the appropriate zoning would be 30 years from now. K. Heckaman asked once the PUD is
recorded, wouldn't it stay with the property. J. Schrier stated that it is always subject to change.
P. Sartorius stated that as long as the PUD is in place, it would be. J. Aslakson would like to
see the first condition changed to "The development will remain a senior complex as long as the
PUD is in effect". K. Heckaman asked if "55 and older" could be added in order to define
"senior". L. Spataro asked why there wasn't any sidewalk between building H & G. S.
Czadzeck stated that the curb is right up to the property line at that point, leaving no room for
sidewalk there. B. Holmes asked questions in regards to the proposal for the street placement.
D. Steenhagen explained the way the street connections would be.

A motion that the final PUD and associated site plan for a senior residential development at
McLaren St., Sumner Ave. and Wesley Ave. be approved pursuant to the determination of
compliance with the intent of the City Zoning Ordinance and City Master Land Use Plan based
on the following conditions: 1) The development will remain a senior complex for 55 and older
as long as the PUD is in effect. 2) The proposed vacation of a portion of McLaren St. and the
proposed re-alignment of McLaren St. and Sumner Ave. must be approved by the City
Commission or this PUD approval will be void. 3) Sign permits will be obtained for all
proposed signage and signs will meet ordinance requirements. 4) The construction plans for
Sumner and McLaren must be submitted to and approved by the Engineering Department and
must contain local street dimensions such as width of street a minimum of 27 feet back-to-back
and right-of-way of no less than 50 feet, to be dedicated to the City. 5) Fire hydrants shall
comply with International Fire Code Appendix C. 6) The walking trail shown on the site plan
will be paved, was made by J. Aslakson, suppmied by T. Michalski and unanimously approved.




Planning Commission Minutes-7/28/03
                                                                                                  3
Date: August 12, 2003
To:       Honorable Mayor and City Commissioners

From:       Finance Director

RE:       Proposed Water Rate Increase



SUMMARY OF REQUEST: The City's water rates were last adjusted in April 1999. Last
year, the City retained the consulting engineering firm Tetra-Tech to study the City's water rate
structure in light of 1) costly improvements to the filtration plant being mandated by the state and, 2)
significant new legal developments impacting the structure of municipal user fees. The Tetra-Tech
'Water Cost of Service Study" has previously been distributed to City Commissioners. The attached
resolution implements the 2003 and 2004 rate recommendations contained in the study.

FINANCIAL IMPACT: The proposed rate increase will generate an estimated $975,000 per
year of additional revenue for the water system in 2004. The following table shows how the rate
increase will impact typical residential households:


    Sample Users          Quarterly Water   Quarterly Water Bill Quarterly Water Bill
                          Bill Before       After 10/01/03       After 01/01/04
                          Increase          Increase             Increase
    Using 7,500 gallons
    per 111011th
                             $9.20                $8.80               $10.90
    Using 15,000
    gallons per month        $15.90               $17.60              $21.80

BUDGET ACTION REQUIRED: None at this time. The 2004 water fund budget will
incorporate the projected revenues from the rate increase

STAFF RECOMMENDATION:                         Approval of the attached resolution implementing the
proposed water rate increase.

COMMITTEE RECOMMENDATION:                              The Committee of the Whole will meet on
                   th
Monday, August 11 to further discuss this item.




9/18/97                                                                                               1
                                      PARMENTER o-TOOLE
                                                         Altomeys at Law


                                175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786
                                       Phone 231.722.1621 • Fax 231.722.7866 or 231 .728.2206
                                                       www.Parmenterlaw.com




 July 23, 2003



 Timothy J. Paul
 Director of Finance
 City of Muskegon
 933 Te1rnce Street
 P.O. Box 536
 Muskegon,MI49443-0536

 Re:      Water Rates

 Dear Mr. Paul:

Enclosed is a revised water resolution.

 Very truly yours,

  9s:he_!:)ter Hills                                                                                              10.10 12
 Port Hur_Q_n                                                                                                     10.63 13
South~                                                                                                            1o.5414·~
Allen Park                                                                                                        10.78   15
Southfield                                                                                                        10.86   16
Kentwood                                                                                                          10.92   17
Warren                                                                                                            11.03 ·-18"
TrO                                                                                                               11.06   19
Portage
Hp_l_l_;;lfl9_
                                                                                                                  11.u~   20
                                                                                                                  ,, ...,..,
                                                                                                                  ••  ""          -,,
Inkster                                                                                                           11.85             22
Gi-aricfHaven                                                                                                     11.93             23
_l,i.D_c;oln P~rk                                                                                                 12.43             24
                                                                                                                  .,,   --.o
Battle Creek
Livonia
                                                                                                                   ,..:..,c
                                                                                                                  ....
                                                                                                                   1.<.aufi~      --,,
                                                                                                                                    25

_lij_;;it~rford                                                                                                   12.82 27
Kalamazoo                                                                                                         13.04 28
~ Heights                                                                                                         13.12 29
Royal Oak                                                                                                         13.15 30
Farmington Hills                                                                                                  13.3231
Muskegon'rownshi                                                                                                  13.60 32
Westland
c;;n1on·
                                                                                                                  1~.ou
                                                                                                                  ,_,_.,_,
                                                                                                                  1<1 a.c::       -,.
                                                                                                                                    33

Gard"en Ci                                                                                                        14.07 35
yvyomin,                                                                                                          14.17 36
Whitehall                                                                                                         14.18 37
OakPark                                                                                                           14.34 38
RedfordTownshi1                                                                                                   14.40 39
Bloomfiaj_d_"townshi1                                                                                             14.93 40
.B_qp~velt Park                                                                                                   15.18 41
West ~]flomfield Town~i                                                                                           16.00 42
Midland                                                                                                           16.50 43
East Lansin                                                                                                       16.57 44
Novi                                                                                                              16.69 45
St Clair Shores                                                                                                   16.82--~
Shelby 19Wrl$hi                                                                                                   17.02 47
Ann Arbo1_                                                                                                        17.50 48
Lansing                                                                                                           •, ..,, .oo
                                                                                                                           <><>
                                                                                                                             49
fily_Q_tv                                                                                                         1R     Rn ~
Montague                                                                                                          18.89      51
Norton Shores                                                                                                     19.47      52
Pontiac --                                                                                                        21.30             53
G_r_a_ric:IRapid.!_                                                                                               22.42             54
                                                                                                                                         -
Jackson                                                                                                           22.52             55
Flint-- -
                                                                                                                  23.29             56
£!}1.[!!;!ort Towns hi[                                                                                           23.72             57
 Burton                                                                                                           24.50             58
North Muskegon                                                                                                    32.00             59

Average                                                                                                          m:Ta
Mediafl                                                                                                          !13.15

Note: Assumes 7,500 gallons (or 1,000 cubic feet) monthly usage and a 5/8" (or nearest equivalent) meter size.


Source: April 2000 Michigan Water/Wastewater Rate Survey conducted by
Black & Veatch Corporation, Management Consulting Division and
supplemented by local area survey as of June 2003.
                                                 Typical Monthly Water Bill
                                          Ranked from Lowest (1) to Highest {59}
                                       Residential Customers -15,000 Gallons Usage
                                       (Bold Type Indicates Local Area Communities)
                                                                                                                                                        PROJECTED FOR MUSKEGON BY YEAR
Commun!!l                                                                                                         Water

Sagins!_w                                                                                                        S12.95
                                                                                                                                  "'"'
                                                                                                                                    1
                                                                                                                                         2003    Rank   2004 Rank 2005 Rank 2006 Rank          2007    Rank


Waterford Townshi!                                                                                                13.33             2
Wyandotte                                                                                                         14.35             3
SteriingHeights                                                                                                   14.91                   1.8%          23.9%        16.5%         0.8%         0.8%
Muskegon                                                                                                           1~.~u
                                                                                                                   ~~    -~        s
                                                                                                                                    4
                                                                                                                                         17.60     6    21.80   22   25.40   32   25.60   32   25.80    33
Ferndale                                                                                                                ....
                                                                                                                   •,,.,. ""
                                                                                                                           ,.,   --6
Dearborn                                                                                                           17.96            7
Taylor                                                                                                             18.26            8
Muskegon Heights                                                                                                   ,u .....
                                                                                                                   ~0 AA

Eastpointe                                                                                                         1R ,i:fi
                                                                                                                   •¥«¥          -c;o'
Clinton Towns~iJ                                                                                                  18.53            11
Detr~--
                                                                                                                  18.62            12
Holland                                                                                                           18.95            13
P_qrt__t,uron                                                                                                     19.10            14
KalamE~OO                                                                                                         19.98            15
Rochester Hil~                                                                                                    20.20            16
Kentwood                                                                                                          20.42            17
Po~~                                                                                                              20.95            18
Allen Park                                                                                                        21.06            19
Southgate                                                                                                         21.28            20
Southfield                                                                                                        21.44            21
Warren                                                                                                            21.64            22
~~le Creek                                                                                                        21.88            23
l,.ipcqln Park                                                                                                    22.01            24
Tro'                                                                                                              22.12            25
Grand Haven                                                                                                       22.35            26
Wyomin                                                                                                            22.67            27
Inkster                                                                                                           23.35            28
~                                                                                                                 24.00            29
Livonia                                                                                                           24.10            30
Muskegon Township                                                                                                 24.70            31
Roosevelt Park                                                                                                    25.15            32
w_~~!:!®ri:!                                                                                                      25.64            33
Royal Oak                                                                                                         25.86            34
Fannington Hills                                                                                                  26.29            35
Garden Ci                                                                                                         27,05            36
OakPark                                                                                                           27.42            37
W§[email protected]                                                                                                          27.60            36
Canton                                                                                                            27.90            39
Redf.Qr_(I Townshi                                                                                                28.12            40
Whitehall                                                                                                         28.35            41
~ Townshi                                                                                                         29.85            42
Montague                                                                                                          30.14            43
Novi                                                                                                              30.64            44
Noriori'siiores                                                                                                   30.72            45
West BLqqmfield Townshi                                                                                           32.00            46
East Lan_§in                                                                                                      33,15            47
ShelbyTOWlJ~!li                                                                                                   33.21            48
St Clair Shores                                                                                                   33.64            49
Lansin                                                                                                            34.01            so
Ann-Arbor                                                                                                         35.00            51
Pontiac                                                                                                           35.10            52
BayO                                                                                                              35.20            53
Gram;! Rapids                                                                                                     35.32            54
Jacks.2_n                                                                                                         37.94            55
Burton                                                                                                            41.00            56
Fruitport Township                                                                                                41.59            57
North M_u_skegon                                                                                                  44.00            58
Flint                                                                                                             45.17            59

Average                                                                                                          $25.73 ...
Mediari                                                                                                          _!24.10

Note: Assumes 15,000 gallons {or 1,000 cublcfeet) monthly usage and a 518" {or nearest equivalent) meter size.


Source: April 2000 Michigan Water/Wastewater Rate Survey conducted by
Black & Veatch Corporation, Management Consulting Division and
                                              CITY OF MUSKEGON

                                              Resolution No. 2003-264 ( c)

                      A Resolution amending the general fee resolution of the City.

                                                  RECITALS

                  A review of the water rates has been undertaken by staff and consultants, City
                  staff recommends and City commission has determined that an increase in the
                  rates for water service and elimination of the ready-to-serve (RTS) charge is
                  justified in the opinion of the City Commission.

         THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION:

         1.        For service provided after October 1, 2003, the water ready-to-serve (RTS)
                   charge, except for fire lines, shall be eliminated.

         2.        The ready to serve charge for fire lines shall be:

                   Description                                    Monthly Amount Billed

                  FIRELINE READY TO SERVE 2 INCH                        $6.50
                  FIRELINE READY TO SERVE 3 INCH                        $13.25
                  FIRELINE READY TO SERVE 4 INCH                        $21.00
                  FIRELINE READY TO SERVE 6 INCH                        $39.00
                  FIRELINE READY TO SERVE 8 INCH                        $66.60
                  FIRELINE READY TO SERVE 10 INCH                       $103.00
                  FIRELINE READY TO SERVE 12 INCH                       $132.00
                  FIRELINE READY TO SERVE 16 INCH                       $210.00


                  Description                                    Quarterly Amount Billed

                  FIRELINE READY TO SERVE 2 INCH                        $19.50
                  FIRELINE READY TO SERVE 3 INCH                        $39.75
                  FIRELINE READY TO SERVE 4 INCH                        $63,00
                  FIRELINE READY TO SERVE 6 INCH                        $117.00
                  FIRELINE READY TO SERVE 8 INCH                        $198.00
                  FIRELINE READY TO SERVE 10 INCH                       $309.00
                  FIRELINE READY TO SERVE 12 INCH                       $396.00
                  FIRELINE READY TO SERVE 16 INCH                       $630.00




G:\EDSIIFILES\00100\0966\RESOLUT\805282.DOC
          3.       For service provided after October 1, 2003 the rate for water shall be changed
                   from $0.67 per hundred cubic feet to $0.88 per hundred cubic feet.

          4.       For service provided after January 1, 2004, the rate for water shall be changed
                   from $0.88 per hundred cubic feet to $1.09 per hundred cubic feet.

          This resolution passed.

                   Ayes___7_ _ _ _ _ __

                   Nays_ _ _o_ _ _____



                                                                ::TY~a.7SQ,-G1_O__::_:__=-=---,F--
                                                                   Gail A Kundinger, Clerk

                                             CERTIFICATE

       This resolution was adopted at a meeting of the City Commission, held on _ _ __ _
2003. 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.




                                                                B Y--1.:::::3~~   6..._~~~~f/Zt',.._,
                                                                   Gail A. Kundinger, Clerk




G:\EDSIIFILES\00100\0966\RESOLUnB05282.DOC
    CITY OF MUSKEGON, MICHIGAN




            Water Cost of Service Study




I

                        Prepared by

                       Tetra Tech MPS

                         May 2003
                                         ACKNOWLEDGEMENT

     We would like to acknowledge the efficient assistance and useful data provided to our

     representatives throughout the course of this project. We would like to recognize the following City
     of Muskegon personnel:



     Mr. Timothy Paul, Finance Director

     Mr. Derrick Smith, City Treasurer




!



    Muskegon Water Cost of Service Study                                                      Page iii
                                       CONTENTS



                                                                    Page
                                                                                I
ACKNOWLEDGEMENT
LIST OF TABLES
                                                                          iii
                                                                           V
                                                                                I
EXECUTIVE SUMMARY                                                         vi
INTRODUCTION                                                               1

       WATER RATE STRUCTURE DEVELOPMENT                                    1

       ANNUAL REVENUE REQUIRED                                             1
       RATE DESIGN                                                         2

IMPACT OF THE BOLT OPINION ON THE CITY'S WATER RATE STRUCTURE              3

WATER RATE CALCAULTIONS                                                    6
IMPACT OF PROJECTED WATER RATES                                            8


APPENDICES
A      Tables
B      Glossary of Terms




Muskegon Water Cost of Service Study                            Page iv
                                        LIST OF TABLES


 1·     Water Rate History
 2      Projected Water Rates
 3      Historical Billable Flows
 4      Projected Billable Flows
 5      Projected Equivalent Billable Flows
 6      Water Revenue History
 7      Water System Budgeted Capital Improvements 2003 Through 2007
 8      Water System Schedule of Indebtedness 2003 Through 2007
 9      Water System Expenses
 10     Water System Expense Allocations
 11     Projected Water Rate Calculations
 12     Water System Revenues
 13     Water Cost Comparison
 14     Revenue Percent-to-Billable Flow Percent by User Class




Muskegon Water Cost of Service Study                                   Pagev
                                     EXECUTIVE SUMMARY


 This Water Cost of Service Study presents recommendations for revisions to the City of Muskegon's
 water rate structure.
                                                                                                           I
 A water cost of service study follows this three-step process:
     1. Determine how much money the City needs to fund its water operating and capital programs.
        These are the City's water revenue requirements.
    2. Detennine what it costs the City to provide water, wastewater and various related services.
                                                                                                           i
        This is called cost allocation.                                                                    I

    3. Develop a water rate structure to recover the cost of service from each customer or class of
        customers who cause the costs to be incurred.             New rates must comply with existing
        intermunicipal service contract provisions. This is the rate design.




There are three reasons for reviewing the City's current water utility service rate structure:


    1. Ensure the financial stability of the City's water utility m light of significant capital
                                                                                                           I
                                                                                                           I

        improvements being planned.
    2. The current water rate structure has been m use for many years and the December 1998
        Michigan Supreme Court ruling of Bolt v. the City of Lansing may affect the City's water rate
        structure because the ruling established a criteria that municipal user fees should be based on
       the cost of providing the service to its customers.
    3. The City may apply for State Revolving Fund low interest loan funding for the upcoming
       capital improvements. One State requirement for obtaining this low interest loan is that the
       City prepare a Water User Charge System. This report will develop a water rate structure that
       could serve as the basis for the required Water User Charge System.


This cost of service study utilizes the Tetra Tech MPS SmartRate financial model to calculate water
revenue requirements and to allocate these to water customers.          The SmaitRate financial model


Muskegon Water Cost of Service Study                                                             Page vi
                                                                                                           j
 consists of linked Excel software program spreadsheets, which can be used by the City to set future
 water rates by entering new budget and customer usage data. It is recommended that the City conduct
 such reviews annually and, if necessary, adjust the rates. This will help prevent the "rate shock" that
 occurs when rates are not adjusted for many years. Financial and customer usage data used in the
 SmartRate financial model were provided by the City and were adjusted based on several review
 discussions with City staff.




Muskegon Water Cost of Service Sh1dy                                                        Page vii
                                          INTRODUCTION


 WATER RA TE STRUCTURE DEVELOPMENT
 The proposed water rate structure developed in this repo11 are based on the following cost of service
 procedures:


 1. Determination of the total annual revenue required for the year the rates are to be effective.


 2. Distribution of the costs to user classes in accordance with their requirements for service.


 3. Design of water rates that will recover from each class, within practical limits, the costs allocated
    to each user class based on the cost to serve these user classes.


Rates must also comply with existing intermunicipal water service contracts.


ANNUAL REVENUE REQUIRED
The annual revenue required was determined using the cash basis of revenue determination and was
based on the City's fiscal year 2003 budget escalated to fiscal year 2007. Rates projected beyond
fiscal year 2003 are presented for information purposes only, using estimates of future expenses and
usage.


                                                                                                            )


                                                                                                            r


                                                                                                            f
                                                                                                            I

Muskegon Water Cost of Service Study                                                               Page 1
RATE DESIGN


The City of Muskegon's water rate structure consists of a Ready-to-Serve charge and a Commodity
charge. Appendix A, Table 1, "Water Rate History" shows the water rate structure from 1998 to 2002.
The December 1998 Michigan Supreme Court ruling of Bolt v. the City of Lansing may affect the
City's water rate structure because this ruling established a criteria that municipal user fees should be
proportional to the cost of providing the service to its customers. NOTE: All references to the Bolt
Opinion by Tetra Tech MPS should receive a legal review by the City Attorney and/or his/her
designee. Tetra Tech MPS's opinions regarding the Bolt Opinion are strictly limited to our previous
rate study work done in support of legal representation. In addition, the City is pursuing a Michigan
Drinking Water Revolving Fund (DWRF) low interest loan to lower the City's cost to construct
necessary improvements to its water system. The City's water rate structure must be designed so as to
meet both the Bolt and the DWRF requirements.




Muskegon Water Cost of Service Study                                                            Page2
      IMPACT OF THE BOLT OPINION ON THE CITY'S WATER RA TE STRUCTURE


 The December 1998 Michigan Supreme Court decision Bolt v. City of Lansing asserted that three primary
 ~riteria are to be considered when distinguishing between a fee and a tax:
     1. A user fee must serve a regulatory purpose rather than a revenue-raising purpose;
     2. User fees must be proportional to the necessary costs of the service;
    3. A user fee must be voluntary in that the customer must be able to refuse or limit his/her use of   ,\
                                                                                                           I
        the service.


                                                                                                          'I
 The City's Ready-to-Serve charge is a fixed charge that increases based on the customer's meter size.
 It is charged to any City customer who is connected to the City's water service regardless of their
 volume of use. This is commonly known as a "minimum charge" or a "base customer charge". This
 type of charge could be subject to a Bolt court challenge if the City cannot document that the costs
recovered by the Ready-to-Serve charge are proportional to the service as given in point two, above.
The reason is that a customer using no City metered water during a billing period could argue that his
water bill should be zero.   Such a customer could also argue that the Ready-to-Serve charge violates
point three, above, because such a fee prevents the customer from limiting the use of the service.


The Commodity charge is charge that is based on the volume of metered water used by the customer.          \
There are three common types of Commodity charges:


    1. Inclining Block: This is a pricing process where the price per unit of water increases with
       increased volume of usage.
    2. Declining Block: This is a pricing process where the price per unit of water decreases with
       increased volume of usage.
   3. Level Rate: This is a pricing process where the price per unit remains the same regardless of the
       volume of usage.


                                                                                                               I
Muskegon Water Cost of Service Srudy                                                            Page3
The following table summarizes the advantages and disadvantages of each of these rate structures.
Muskegon uses a level block type of Commodity charge. It is recommended that the City retain the use
of this type of a level block Commodity charge in light of the City's desire to pursue a DWRF low
interest loan and to help protect itself from a Bolt court challenge.




Muskegon Water Cost of Service Study                                                       Page4
 Advantages and Disadvantages of the Three Common Types of Commodity Charge Rate Structures
  Rate Strun1.1re                     Advantages                           Disadvantages
 Inclining Block      •    Best match of price to cost of service   •    Adds instability to revenue

                      •    Considers both volume and rate of use        stream

                      •   Can apply seasonally or continually       •   Can be difficult to apply

                                                                    •   May not meet MDEQ SRF             Ii       '
                                                                        low        interest        loan
                                                                        requirements                      ,I
                                                                    •   Difficult to defend against
                                                                        a Bolt challenge
Declining Block       •   Historically standard practice            •   Does       not        encourage
                                                                                                           !
                                                                        conservation                      I,


                                                                    •   Does       not         consider
                                                                                                           I
                                                                        customer's rate of use            L


                                                                    •   Can be difficult to apply

                                                                    •   May not meet MDEQ SRF
                                                                        low        interest        loan
                                                                        requirements

                                                                    •   Difficult to defend against
                                                                        a Bolt court challenge
Level Block          •    Has a conservation element                •   Assumes      all   customers       )'
                                                                                                           '
                     •    Recognizes some rate of use factor            have the same rate of use
                                                                                                               !
                     •    Easy to understand                            patterns
                                                                                                          I
                     •    Stable revenue stream

                     •    Meets MDEQ SRF low interest loan
                          requirements

                     •    Easiest to defend against a Bolt court
                          challenge




Muskegon Water Cost of Service Study                                                           Pages
                               WATER RATE CALCULATIONS


The City's water system expenses, using current budgets coupled with projections to the year 2007, are
given in Appendix A, Tables 7, 8, 9 and 10.


In Appendix A, Table 4 projects metered water billable flows for City and Outside City based on
percentage usage increases provided by the City. In order to calculate the Commodity charge, the total
billable flows must be converted to "equivalent" billable flows.        This is because Outside City
customers are billed, by contract, Commodity charges based on multipliers applied to their billable
flows.   These multipliers are shown in the first column of Table 11, "Projected Water Rate
Calculations" and are as follows:


                                    Outside City Customer Multipliers


                   Contract Customer                           Multiplier
                   Muskegon County Northside                   1.25
                   Roosevelt Park                              1.35
                   N01th Muskegon                              1.35
                   Muskegon Township                           1.35
                   Norton Shores (Miscellaneous Services)      2.00
                   Miscellaneous Outside                       1.50




The City's water system expenses were reviewed and then allocated to the Commodity charge. Outside
City customers Commodity charges were then calculated in Table 11. The results are given in the
following table.




Muskegon Water Cost of Service Study                                                         Page 6
                Commodity Charges, Proposed Through 2007, $ per 100 Cubic Feet


    Customer         Proposed     2004         2005          2006         2007
    City             0.88         1.09         1.27          1.28         1.29

    Muskegon         1.10         1.36         1.58          1.60         1.61
    County
    Northside
    Roosevelt        1.18         1.47         1.71          1.72         1.74
    Park
    North            1.18         1.47         1.71          1.72         1.74
    Muskegon
    Muskegon         1.18         1.47         1.71          1.72         1.74
    Township
    Norton Shores    1.75         2.18         2.53          2.55         2.57
    (Miscellaneous
    Services)
    Miscellaneous    1.32         1.63         1.90          1.92         1.93
    Outside




                                                                                          l
                                                                                          I
                                                                                          \


Muskegon Water Cost of Service Study                                             Page 7
                          IMPACT OF PROJECTED WATER RA TES


As shown in Appendix A, Table 14, "Revenue Percent-to-Billable Flow Percent by User Class", in
1998 the City used 77.37% of the total system metered flow and contributed 70.17% of the total system
revenue, a difference of 7 .20%. However, by 2002, these percentages were 72.49% and 68.87%,
respectively, for a difference of 3.62%. By eliminating the City's Ready-to-Serve charge, this trend
will be reversed.    Under the proposed water rate structure, it is projected that, by 2007, these
percentages could be 69.94% and 61.45%, respectively, for a difference of 8.49%.


As shown in Table 6, "Water Rate History", the revenue generated by the City's Ready-to-Serve
charges has been just under 20% of total revenue from 1998 through 2002. By eliminating its Ready-
to-Serve charges, the City will face a greater risk to it's revenue stability because all revenue will be
charged on the basis of amount of metered flow. The major water users (inside and outside the City)
use approximately 33% of the total water produced. For example, according to Table 6, in 2002
revenue from Ready-to-Serve charges was $685,303 and revenue from Commodity charges was
$2,838,874 for a total of $3,524,177. If billable flow had dropped by 25% in all service areas, Ready-
to-Serve charge revenue would have still been $685,303 and Commodity charge revenue would have
been 75% of $2,838,874, or $2,129,155.         Total revenue would be $685,303 plus $2,129,155 =
$2,814,458. This would equate to a total net revenue reduction of approximately 20%. However, if all
the $3,524,177 revenue was Commodity charge based, the total net revenue reduction would also be
25%. If billable flow was reduced by 50%, total revenue would be equal to $685,303 + (0.50 x
$2,838,874) = $2,104,740 for a total net revenue reduction of approximately 40%.               Under a
Commodity charge rate structure, the total net revenue reduction would be 50%. This is summarized
in the following table:




Muskegon Water Cost of Service Study                                                            Page 8
  2002 Revenues Under Current and Proposed Water Rate Structures and 25% and ·:v;.;, Reductions in
                                           Billable Flow


Rate Structure           Ready-to-Serve            Commodity                Total Revenue
Current                  $685,303                  $2,838,874               $3,524,177


Current, with 25 drop $685,303                    $2,129,155                $2,814,458
in Billable Flow
Proposed,   with   25% $0                         $2,643,132                $2,643,132
drop in Billable Flow


Current, with 50 drop $685,303                    $1,419,437               $2,104,740
in Billable Flow
Proposed,   with   50% $0                         $1,762,088               $1,762,088
drop in Billable Flow




                                                                                                     I

                                                                                                     l




Muskegon Water Cost of Service Study                                                      Page 9
The effect on water costs for various customers using the proposed rate structure is shown in Table 13,
"Water Cost Comparison" as summarized in the following table:


                       Cost Comparisons and Annual Percentage Cost Increases


               User                      Current Cost               2007 Cost           Average
                                                                                        Annual
                                                                                        Increase
 Average Residential - City:        $24.92 per Quarter      $33.43 per Quarter          7%
 5/8" Meter & 26 CF per Quarter
 High Residential - City:           $85.75 per Quarter      $128.59 per Quarter         10%
 l" Meter & I 00 CF per Quarter


 Low Commercial - City:             $395.00 per Quarter     $642.93 per Quarter         13%
 2" Meter & 500 CF per Quarter
 High Commercial - City:            $1,452.50 per Quarter $2,571.74 per Quarter         15%
 3" Meter & 2,000 CF/Quarter


) Largest Six Customers - City                                                         ) 18%


 Muskegon County Northside          $146,889 per Year       $281,911 per Year           18%
 Roosevelt Park                     $197,776 per Year       $409,938 per Year           21%
 North Muskegon                     $262,666 per Year       $544,439 per Year           21%
 Muskegon Township                  $433,483 per Year       $746,708 per Year           14%




Muskegon Water Cost of Service Study                                                           Page 10
                                       APPENDIX A
                                         Tables




                                                    I




Muskegon Water cost of Service Study
                                                   Table 1
                                              Water Rate History

             CITY
             Quarterly Ready-to-Serve
             Charges:
                              Meter Size:         1998     1999     2000     2001     2002
                                     5/8"          7.50     7.50     7.50     7.50     7.50
                                     3/4"         10.25    10.25    10.25    10.25    11.25
                                       1"         15.75    15.75    15.75    15.75    18.75
                                   1 1/4"         22.63    22.63    22.63    22.63    28.25
                                   1 1/2"         29.50    29.50    29.50    29.50    37.50
                                       2"         46.00    46.00    46.00    46.00    60.00
                                        3"        84.50    84.50    84.50    84.50 112.50
                                       4"        139.50 139.50 139.50 139.50 187.50
                                       6"        277.00 277.00 277.00 277.00 377.00
                                       8"        497.00 497.00 497.00 497.00 600.00
                                      10 11      799.50 799.50 799.50 799.50 862.50
                                      12 11    1,184.50 1,184.50 1,184.50 1,184.50 1,612.50
             Commodiry Charge:
                    Per 100 Cubic Feet:            0.60     0.67    0.67     0.67     0.67


             MUSKEGON COUNTY
             NORTHS IDE
             Quarterly Ready-to-Serve
             Charaes:
                              Meter Size:         1998     1999     2000     2001     2002
                                     5/8"         7.50     7.50     7.50     7.50     7.50
                                     3/4"        10.25    10.25    10.25    10.25    11.25
                                       1"        15.75    15.75    15.75    15.75    18.75
                                   1 1/4"        22.63    22.63    22.63    22.63    28.25
                                   1 1/2"        29.50    29.50    29.50    29.50    37.50
                                       211    ' 46.00     46.00    46.00    46.00    60.00
                                       3"        84.50    84.50    84.50    84.50 112.50
                                       4"       139.50 139.50 139.50 139.50 187.50
                                       6"       277.00 277.00 277.00 277.00 377.00
                                       8"       497.00 497.00 497.00 497.00 600.00
                                      10 11     799.50 799.50 799.50 799.50 862.50
                                      12 11   1,184.50 1,184.50 1,184.50 1,184.50 1,612.50
             Commodiry Charge:
                    Per 100 Cubic Feet:           0.75     0.84     0.84     0.84     0.84


             ROOSEVELT PARK
             Quarterly Ready-to-Serve
             Charges:
                              Meter Size:         1998     1999    2000     2001     2002
                                     5/8"         7.50     7.50     7.50     7.50     7.50
                                     3/4"        10.25    10.25    10.25    10.25    11.25
                                       1"        15.75    15.75    15.75    15.75    18.75
                                   1 1/4"        22.63    22.63    22.63    22.63    28.25
                                   1 1/2"        29.50    29.50    29.50    29.50    37.50
                                       2"        46.00    46.00    46.00    46.00    60.00

Tetra Tech
SmartRate
0482.034                           Muskegon Water Rate Study                           6/11/2003 9:47 AM
                                                    Table 1
                                               Water Rate History

                               Meter Size:          1998    1999     2000     2001     2002
                                        3"         84.50    84.50    84.50    84.50 112.50
                                        4"        139.50 139.50 139.50 139.50 187.50
                                        6"        277.00 277.00 277.00 277.00 377.00
                                        8"        497.00 497.00 497.00 497.00 600.00
                                       10 11      799.50 799.50 799.50 799.50 862.50
                                       12 11    1,184.50 1,184.50 1,184.50 1,184.50 1,612.50
             Commoditv Charge:
                    Per 100 Cubic Feet:             0.81     0.90    0.90     0.90      0.90


             NORTH MUSKEGON
             Quarterly Ready-to-Serve
             Charges:
                              Meter Size:          1998     1999    2000      2001     2002
                                     5/8"          7.50     7.50     7.50     7.50     7.50
                                     3/4"         10.25    10.25    10.25    10.25    11.25
                                       1"         15.75    15.75    15.75    15.75    18.75
                                   11/4"          22.63    22.63    22.63    22.63    28.25
                                   1 1/2"         29.50    29.50    29.50    29.50    37.50
                                       2"         46.00    46.00    46.00    46.00    60.00
                                       3"         84.50    84.50. 84.50      84.50 112.50
                                       4"        139.50 139.50 139.50 139.50 187.50
                                       6"        277.00 277.00 277.00 277.00 377.00
                                       8"        497.00 497.00 497.00 497.00 600.00
                                      10 11      799.50 799.50 799.50 799.50 862.50

             Commodttv Charge:
                                       12 11   1,184.50 1,184.50 1,184.50 1,184.50 1,612.50                 1
                   Per 100 Cubic Feet:             0.81     0.90     0.90     0.90     0.90


             MUSKEGON TOWNSHIP
             Quarterly Ready-to-Serve
             Charges:
                              Meter Size:          1998     1999    2000     2001     2002
                                     5/8"      7.50    7.50    7.50    7.50    7.50
                                     3/4"     10.25   10.25   10.25   10.25   11.25
                                       1"     15.75   15.75   15.75   15.75   18.75
                                   1 1/4"     22.63   22.63   22.63   22.63   28.25
                                   11/2"      29.50   29.50   29.50   29.50   37.50
                                       2"     46.00   46.00   46.00   46.00   60.00
                                       3"     84.50   84.50   84.50   84.50 112.50
                                       4"    139.50 139.50 139.50 139.50 187.50
                                       6" 277.00 277.00 277.00 277.00 377.00
                                       8"    497.00 497.00 497.00 497.00 600.00
                                         11
                                      10     799.50 799.50 799.50 799.50 862.50
                                      12 11 1184.50 1184.50 1184.50 1184.50 1612.50
             Commodity Charge:
                    Per 100 Cubic Feet:            1.50     1.50    1.50     1.11      1 .11



Tetra Tech
SmartRate
0482.034                            Muskegon Water Rate Study                           6/11/2003 9:47 AM
                                             Table 1
                                        Water Rate History

                              Meter Size:   1998      1999     2000    2001    2002
             NORTON SHORES
              Miscellaneous Services)
             Commodity Charge:              1998     1999      2000    2001    2002
                      Per 100 Cubic Feet:   1.20     1.34       1.34    1.34    1.34

             MISC. OUTSIDE
             Commoditv Charae:              1998     1999      2000    2001    2002
                     Per 100 Cubic Feet:    0.90     1.01       1.01    1.01    1.01




Tetra Tech
SmartRate
0482.034                           Muskegon Water Rate Study                    6/11/2003 9:47 AM
                                               Table 2
                                        Projected Water Rates

             CITY
             Quarterly Ready-to-Serve
             Charges:
                               Meter Size : Proposed     2004   2005    2006     2007
                                      5/8"       0.00    0.00   0.00     0.00     0.00
                                      3/4"       0.00    0.00   0.00     0.00     0.00
                                        1"       0.00    0.00   0.00     0.00     0.00
                                    1 1/4"       0.00    0.00   0.00     0.00     0.00
                                    11/2"        0.00    0.00   0.00     0.00     0.00
                                        2"       0.00    0.00   0.00     0.00     0.00
                                        3"       0.00    0.00   0.00     0.00    0.00
                                        4"       0.00    0.00   0.00     0.00    0.00
                                        6"       0.00    0.00   0.00    0.00     0.00
                                        8"       0.00    0.00   0.00    0.00     0.00
                                      10 11      0.00    0.00   0.00    0.00     0.00
                                      12 11      0.00    0.00   0.00    0.00     0.00
             Commoditv Charge:
                      Per 100 Cubic Feet:        0.88    1.09    1.27    1.28    1.29


             MUSKEGON COUNTY
             NORTHS IDE
             Quarterly Ready-to-Serve
             Charges:
                              Meter Size: Proposed      2004    2005    2006    2007
                                     5/8"      0.00     0.00    0.00    0.00    0.00
                                     3/4"      0.00     0.00    0.00    0.00    0.00
                                       1"      0.00     0.00    0.00    0.00    0.00
                                   1 1/4"      0.00     0.00    0.00    0.00    0.00
                                   1 1/2"      0.00     0.00    0.00    0.00    0.00
                                       2"      0.00     0.00    0.00    0.00    0.00
                                       3"      0.00     0.00    0.00    0.00    0.00
                                       4"      0.00     0.00    0.00    0.00    0.00
                                       6"      0.00     0.00    0.00    0.00    0.00
                                       8"      0.00     0.00    0.00    0.00    0.00
                                      10 11    0.00     0.00    0.00    0.00    0.00
                                      12 11    0.00     0.00    0.00    0.00    0.00
             Commodity Charge:
                      Per 100 Cubic Feet:      1.10     1.36    1.58    1.60    1.61


             ROOSEVELT PARK
             Quarterly Ready-to-Serve
             Charges:
                              Meter Size: Proposed      2004    2005    2006    2007
                                     5/8"      0.00      0.00   0.00    0.00     0.00
                                     3/4"      0.00      0.00   0.00    0.00     0.00
                                       1"      0.00     0.00    0.00    0.00    0.00
                                   1 1/4"      0.00     0.00    0.00    0.00    0.00
                                   1 1/2"      0.00     0.00    0.00    0.00    0.00
                                       2"      0.00     0.00    0.00    0.00    0.00

Tetra Tech
SmartRate
0482.034                            Muskegon Water Rate Study                   6/11/2003 9:47 AM
                                                Table 2
                                         Projected Waler Rates

                            Meter Size: Proposed         2004    2005    2006    2007
                                     3"      0.00        0.00    0.00     0.00    0.00
                                     4"      0.00        0.00    0.00     0.00    0.00
                                     6"      0.00        0.00    0.00    0.00     0.00
                                     8"      0.00        0.00    0.00     0.00   0.00
                                   10 11     0.00        0.00    0.00    0.00    0.00
                                   12"       0.00        0.00    0.00    0.00    0.00
             CommoditY Charge:
                    Per 100 Cubic Feet:      1.18        1.47     1.71    1.72    1.74


             NORTH MUSKEGON
             Quarterly Ready-to-Serve
             Chari:ies:
                                Meter Size: Proposed    2004     2005    2006    2007
                                       5/8"      0.00   0.00     0.00     0.00   0.00
                                       3/4"      0.00   0.00      0.00    0.00   0.00
                                         1"      0.00   0.00     0.00    0.00    0.00
                                     1 1/4"      0.00   0.00     0.00     0.00   0.00
                                     1 1/2"      0.00   0.00     0.00    0.00    0.00
                                         2"      0.00   0.00     0.00    0.00    0.00
                                         3"      0.00   0.00     0.00    0.00    0.00
                                         4"      0.00   0.00     0.00    0.00    0.00
                                         6"      0.00   0.00     0.00    0.00    0.00
                                         8"      0.00   0.00     0.00    0.00    0.00
                                        10 11    0.00   0.00     0.00    0.00    0.00
                                        12 11    0.00   0.00     0.00    0.00    0.00
             Commoditv Charge:
                        Per 100 Cubic Feet:      1.18    1.47    1.71    1.72    1.74


             MUSKEGON TOWNSHIP
             Quarterly Ready-to-Serve
             Charaes:
                              Meter Size: Proposed      2004     2005    2006    2007
                                     5/8"      0.00      0.00     0.00    0.00    0.00
                                     3/4"      0.00      0.00     0.00    0.00    0.00
                                       1"      0.00      0.00     0.00    0.00    0.00
                                   1 1/4"      0.00      0.00     0.00    0.00   0.00
                                   11/2"       0.00      0.00     0.00    0.00    0.00
                                       2"      0.00     0.00     0.00    0.00    0.00
                                       3"      0.00     0.00     0.00     0.00   0.00
                                       4"      0.00     0.00     0.00    0.00    0.00
                                       6"      0.00     0.00     0.00    0.00    0.00
                                       8"      0.00     0.00     0.00    0.00    0.00
                                         11
                                      10       0.00     0.00     0.00    0.00    0.00
                                      12 11    0.00     0.00     0.00    0.00    0.00
             Commodity Charge:
                      Per 100 Cubic Feet:      1.18      1.47    1.71    1.72    1.74



Tetra Tech
SmartRate
0482.034                             Muskegon Water Rate Study                   6/11/2003 9:47 AM
                                              Table 2
                                       Projected Water Rates

                              Meter Size: Proposed     2004    2005   2006   2007
             NORTON SHORES
             'Miscellaneous Services)
             Commoditv Charge:            Proposed    2004     2005   2006   2007
                      Per 100 Cubic hiat:      1.75    2.18    2.53   2.55   2.57

             MISC. OUTSIDE
             Commoditv Charge:           Proposed     2004     2005   2006   2007
                     Per 100 Cubic Feet:      1.32     1.63    1.90   1.92   1.93

                                                                                                 1


                                                                                                 I




Tetra Tech
SmartRate
0482.034                           Muskegon Water Rate Study                 6/11/2003 9:47 AM
                                                    Table 3
                                           Historical Billable Flows



                                              Annual Billable Flows, 100 Cubic Foot Units
                                         1998        1999         2000        2001        2002 *
                            Cil'J       3,030,907   2,910,031    2,871,081   3,011,411   2,753,381
               Muskegon County
                       Northside         109,387     149,340      198,890       187,710     175,390
                 Roosevelt Park          121,391      97,269       89,968       154,266     236,150
                North Muskegon           319,533     300,428      229,008       304,957     313,631
             Muskegon Townshic           330,878     284,681      323,273       316,295     314,938
                  Norton Shores
                 (Miscellaneous
                       Services            4,545       4,031           3,977      3,870       4,064

         Miscellaneous Outside                888         860         755            845         887
                       TOTAL            3,917,529   3,746,640   3,716,952      3,979,354   3,798,441

         • Assumed 2002 over
         2001 Percentage
         Increases:
                    Norton Shores
                   (Miscellaneous
                        Services): 5%
           Miscellaneous Outside: 5%




Tetra Tech
SmartRate
0482.034                                 Muskegon Water Rate Study                         6/11/2003 9:49 AM
                                                 Table 4
                                         Projected Billable Flows



                                            Annual Billable Flows, 100 Cubic Foot Units*
                                        2003        2004        2005         2006        2007
      ,,
                                Citv    2,780,915   2,808,724   2,836,811     2,865,179    2,893,831

       Muskegon County Northside         184,160      193,367       203,036    213,188       223,847
                    Roosevelt Park       238,512      240,897       243,306    245,739       248,196
                   North Muskegon        323,040      332,731       342,713    352,994       363,584
              Muskegon Townshi•          330,685      347,219       364,580    382,809       401,950
                    Norton Shores
          /Miscellaneous Services           4,267       4,480       4,704         4,939        5,186
            Miscellaneous Outside             932         978       1,027         1,078        1,132
                           TOTAL        3,862,509   3,928,397   3,996,177     4,065,927    4,137,727


      'Assumed Annual Increases:
                               City:     1%
        Muskegon County Northside:       5%
                    Roosevelt Park:      1%
                   North Muskegon:       3%
               Muskegon Township:        5%
       Norton Shores (Miscellaneous
                          Services):     5%
             Miscellaneous Outside:      5%




                                                                                                              I

Tetra Tech                                                                                                    I-
SmartRate                                                                                                     '
0482.034                               Muskegon Water Rate Study                          6/11/2003 9:49 AM
                                              Table 5
                                 Projected Equivalent Billable Flows



                                      Annual E uivalent Billable Flows, 100 Cubic Foot Units
                                      2003        2004         2005         2006       2007
                             Ci!',    2,780,915   2,808,724   2,836,811   2,865,179     2,893,831

      Muskegon County Northside        230,199     241,709     253,795     266,485       279,809
                   Roosevelt Park      321,991     325,210     328,463     331,747       335,065
                  North Muskegon       436,104     449,187     462,663     476,543       490,839
             Muskegon Townshio         446,425     468,746     492,183     516,792       542,632
                   Norton Shores
         (Miscellaneous Services'         8,533       8,960       9,408       9,878       10,372
           Miscellaneous Outside          1,397       1,467       1,541       1,618        1,699
                          TOTAL       4,225,564   4,304,004   4,384,863   4,468,242    4,554,246




Tetra Tech
SmartRate
0482.034                             Muskegon Water Rate Study                        6/11/2003 9:49 AM
                                                  Table 6
                                           Water Revenue History

                 Revenue Description                  1998      1999      2000      2001      2002

     !l_eady-to-Serve Charge Revenue:
      -
                                  City of Muskegon    548,820   505,569   552,299   526,416   582,291
    '--.
                               Muskegon   Township     74,824    65,954    81,344    82,259    83,902
                                Other Outside-City     14,253    16,290    15,106    14,445    19,110
                                              Total   637,897   587,813   648,749   623,120   685,303
                       Percentage of Total Revenue       19%       17%       18%       17%       19%

     Commodity Charge Revenue:
                              City of Muskegon 1,818,544 1,862,420 1,923,624 2,017,646 1,844,765
                           Muskegon Township      496,317 427,022 463,896 351,088 349,581
                            Other Outside-City 421,249      497,765 485,324 577,071       644,528
                                          Total 2,736,110 2,787,207 2,872,844 2,945,805 2,838,874
                   Percentage of Total Revenue       81%       83%       82%       83%       81%

    Total Revenue:
                                City of Muskegon 2,367,364 2,367,989 2,475,923 2,544,062 2,427,056
                              Muskegon Township     571,141   492,976 545,240 433,347 433,483
                               Other Outside-City 435,502     514,055 500,430 591,516 663,638
                                            Total 3,374,007 3,375,020 3,521,593 3,568,925 3,524,177




Tetra Tech
SmartRate
0482.034                               Muskegon Water Rate Study                       6/11/2003 9:50 AM
                                                                    Table 7
                                          Water System Budgeted Capital improvements 2003 Through 2007

                                                                          2003                           2004
                                                           2003         (Revised          2004         (Revised
             591                   Water                 (Budget)       Estimate)       (Budget)       Estimate)        2005        2006        2007
                     Street Projects, Associated
                     Utility Work:
             90075   Thompson, Plum/Edgewater              50,000          50,000                                  -           -           -           -
             90074   Edgewater, Thompson/Wilcox            15,000          15,000                                  -           -           -           -
             91031   Hackley Ave, Huson/Seaway              5,000           5,000                                  -           -           -           -
             92005   Nims Street Tank Painting            200,000         200,000                                  -           -           -           -
             91027   Terrace St., Iona to Peck            150,000         150,000                                  -           -           -           -
             91025   Washington, Hudson/Lakeshore         140,000         140,000                                  -           -           -           -
             96017   Shoreline Drive East                 100,000         100,000                                  -           -           -           -
             92006   Water Main Replacements              200,000         200,000                                  -           -           -           -
             92007   Breakwall - Beach Street              60,000          60,000                                  -           -           -           -
                                             Subtotal:    920,000         920,000                        750,000       750,000     750,000     750,000
                     Water System Bonded
                     Improvements:
             92008   Filter Rehabilitation                      -                   -   1,392,300                  -           -           -           -
             92009   Sediment Basin Rehabilitation                  -               -   3,422,950                  -           -           -           -
             92010   NPDES Discharge Elimination                -                   -     816,850                  -           -           -           -
             92011   Aux Pump Sta Conversion                    -                   -   1,939,700                  -           -           -           -
                     Water Filtration Plant
                     Improvements ($16,262,000,
                     100% City) **:                                                 -              -   16,262,000              -           -           -
                     Cross Channel Water Main
                     ($6,838,000, 0% Ctty) **:                                      -              -               -           -           -           -
                     Muskegon Township Storage
                     Tank and Pump Station
                     ($1,808,000, 0% City) **:                                      -              -               -           -           -           -




Tetra Tech
SmartRate                                                      Muskegon Water Rate Study
0482.034                                                                                                                                          5/30/2003 8:40 AM


                                                                                                                                                                -----
                                                                  Table7
                                        Water System Budgeted Capital improvements 2003 Through 2007

                                                                         2003                           2004
                                                                                                                                                  ,_
                                                                                                                                              .....


                                                          2003         (Revised          2004         (Revised
             591                Water                   (Budget)       Estimate)       (Budget)       Estimate)       2005       2006       2007

                   Bronze Intake Screens, Carbon
                   Feed Pump Replacement,
                   Harvey Street Booster Station
                   Improvements, Harvey Street
                   Reservoir Fill Valve, Keating
                   Street Booster Station, Intake
                   Sampling Line and Pump,
                   NaOCI Carrier Water Softener
                   ($797,000, 100% City, to be
                   completed by 2013.
                   Construction assumed to be
                   done after 2007 in this table)                                  -              -               -          -          -             -
                                            Subtotal:              -               -   ·7,571,800     16,262,000             -          -             -
                      Less Previous Bond Proceeds
                                           Available:              -               -              -    4,500,000             -          -             -
                     Less Muskegon Twp Payment:                    -               -              -    1,000,000             -                        -
                                    Grand Total:         920,000         920,000       7,571,800      11,512,000      750,000    750,000    750,000

                   * Amount for 2004 - 2007:             750,000
                   ** Per Reliability Studv




Tetra Tech
SmartRate                                                     Muskegon Water Rate Study
0482.034                                                                                                                                         5/30/2,'c.3 8:40 AM
                                                                Table 8
                                        Water System Schedule of Indebtedness 2003 Through 2007




             Date of Issue            Amount of Issue               2003       2004       2005       2006       2007
             October 1, 1993                      $5,465,000
                                            Interest Payable         40,500    40,500      40,500     40,500     40,500
                                         Prinicipal Payable*               -          -          -          -          -
                                   Total Principal and Interest      40,500    40,500      40,500     40,500     40,500

                               * Interest rate is 0% until 2012.
                                  In 2012 interest rate is 4.5%.
                                     Total principal and interest
                                 payments will be $480,375 in
                                    2012 and $460,125 in 2013
                                                  (final payment)

              March 2, 1999                        $9,575,000
                                              Interest Payable      377,059    361,380    344,704    326,899    308,168
                                             Prinicipal Payable     405,000    420,000    435,000    455,000    470,000

                                   Total Principal and Interest     782,059    781,380    779,704    781,899    778,168

                       2004                        $10,800,000
                                  Total Principal and Interest**           -          -   692,820    692,820    692,820
                               ** Bond Issue = $16,262,000
                               less $4,500,000 less
                               $1,000,000 = $10,762,000
                               (Use $10,800,000). Per City:
                               20 years at 2.5% with level
                               payments beginning in 2005




Tetra Tech
SmartRate                                                  Muskegon Water Rate Study
0482.034                                                                                                               5/30/2003 8:59 AM
                                                                          Table 9
                                                                  Water System Expenses



                                    2000           2001           2002           2003             2004         2004(Rev
 Acct       591 WATER FUND        (Actual)       (Actual)       (Actual)       (Budget)         (Budget)         Est)          2005        2006          2,007
          Operating
          Expenditures
  30548   Administration
   5100   Salaries & Benefits                -              -              -              -                -            -             -            -             -
   5200   Operating Supplies                 -         10                  "              "                -            -             -            -             -
          Contractual Services
          (Insurance/Indirect
          Costs/Administration
   5300   Fee)*                    359,581        453,613        389,093         513,566          536,676        536,676       560,827     586,064       612,437
   5400   Other Expenses             7,431          6,144          7,966                  -                -              -           -            -             -
   5700   Capital Outlays               45                  -              -              -                -              -           -            -             -
          Other Financing Uses
          (Interest on Water
   5900   Bonds)                   495,727        471,301        453,666         417,559          401,880        401,880       385,204     367,399       348,668
          Other Cash Uses and
          Adjustments
          (Prinicipal on Water
          Bonds)                   302,213        591,739        360,596         405,000          420,000        420,000       435,000     455,000       470,000

          Debt Service for 2004
          $10,800,000 Bond                   -              -              -              "                -              -     692,820     692,820       692,820
                       Subtotal   1,164,997      1,522,807      1,211,321      1,336,125         1,358,556      1,358,556     2,073,851   2,101,283     2,123,925




Tetra Tech
SmartRate                                                        Muskegon Water Rate Study
0482.034                                                                                                                                          5/30/2003 9:07 AM
                                                                                          _,   ___
                                                                         Table9
                                                                 Water System Expenses



                                   2000           2001           2002           2003           2004         2004 (Rev
  Acct   591 WATER FUND          (Actual)       (Actual)       (Actual)       (Budget)       (Budget)          Est)       2005        2006        2,007
        Operating
        Expenditures
  60559 Maintenance   - City
   5100 Salaries & Benefits *     698,628        788,512        712,770         610,798        638,284        638,284     667,007     697,022     728,388
   5200 Operating Supplies **     237,968        235,205        169,124         107,431        110,654        110,654     113,974     117,393     120,915

   5300 Contractual Services *    293,031        350,528        336,967        335,775        350,885         350,885     366,675     383,175     400,418
   5400 Other Expenses ***         71,680         12,356         33,577          9,480         10,000          10,000      10,000      10,000      10,000
   5700 Capital Outlays ***         5,129          7,327          2,256          9,500         10,000          10,000      10,000      10,000      10,000

   5900 Other Financing Uses                -              -              -              -              -            -           -           -            -
                      Subtotal   1,306,436      1,393,928      1,254,694      1,072,984      1,119,823       1,119,823   1,167,655   1,217,590   1,269,720

        uperating
        Expenditures
        Maintenance -
  60660 Township
   5100 Salaries & Benefits *       3,190        206,700        203,610         286,738        299,641        299,641     313,125     327,216      341,940
   5200 Operating Supplies **         863          9,526         10,219          14,491         14,926         14,926      15,374      15,835       16,310

   5300 Contractual Services *         47        120,508        126,067         129,494        135,321        135,321     141,411     147,774      154,424
   5400 Other Expenses ****                 -        469            792             443            500            500         500         500          500
   5700 Capital Outlays *****               -        800          3,289           4,350          5,000          5,000       5,000       5,000        5,000

    5900 Other Financing Uses               -              -              -              -              -
                      Subtotal       4,100       338,003        343,977         435,516        455,388        455,388     475,409     496,325      518,174




Tetra Tech
SmartRate                                                       Muskegon Water Rate Study
0482.034                                                                                                                                   5/30/2003 9:07 AM
                                                                             Table 9
                                                                     Water System Expenses



                                      2000           2001            2002           2003           2004         2004 (Rev
 Acct       591 WATER FUND          (Actual)       (Actual)        (Actual)       (Budget)       (Budget)          Est)          2005        2006            2,007
           Operating
           Expenditures•
     60558 Filtration
      5100 Salaries & Benefits *     469,642         440,416        476,572         521,626        545,099        545,099        569,629     595,262          622,049
      5200 Operating Supplies **     121,252       . 115,076        129,191         112,195        115,561        115,561        119,028     122,599          126,276

      5300 Contractual Services *    285,375         349,281        340,767         441,100        460,950        460,950        481,692     503,368          526,020
      5400 Other Expenses *****        3,546           2,374          4,067           4,150          5,000          5,000          5,000       5,000            5,000
      5700 Capital Outlays ******     27,339         104,236         37,326          72,700         25,000         25,000         25,000      25,000           25,000

      5900 Other Financing Uses                .               .              .              .              .
                         Subtotal    907,154       1,011,383        987,923       1,151,771      1,151,610       1,151,610      1,200,349   1,251,229        1,304,345

     90000 Project Expenditures
      5200 Operating Supplies                  .               .              -              -              -               -           .             -              -
           Contractual Services
           (Budgeted Capital
      5300 Improvements)             665,056       1,363,419       1,253,024        920,000      7,571,800      11,512,000       750,000     750,000.. ,;·    750,000
      5700 Capital Outlays                     .               .              .              .              -               .           .             .              .
           Equipment
            Replacement *******                                                                             .      140,000        140,000     140,000          140,000
                        Subtotal      665,056      1,363,419       1,253,024        920,000       7,571,800     11,652,000        890,000     890,000          890,000
                    Grand Total     4,047,743      5,629,540       5,050,939      4,916,396      11,657,177     15,737,377      5,807,264   5,956,426        6,106,165

•           Increase 2004/2007:        4.50%       per year
••          Increase 2004/2007:        3.00%       per year
•••         Amount 2004/2007:         10,000       all years
****        Amount 2004/2007:            500       all years
*****       Amount 2004/2007:          5,000       all years
******      Amount 2004/2007:         25,000       all years
*******     Amount 2004/2007:        140,000       all years




Tetra Tech
Smart Rate                                                          Muskegon Water Rate Study
0482.034                                                                                                                                            5/30/2003 9:07 AM
                                                            Table 10
                                                Water System Expense Allocations

             •"" VV,.. I t:H
                FUND                                                      2004
               Account                                      2004        (Revised
              Number(s)             Allocated To:         (Budget)      Estimate)        2005         2006         2007
             30548, 60559,
             60558, 60660,
                90000          All Customers              11,657,177     15,737,377     5,807,264    5,956,426    6,106,165
                               Less State Grant             (100,000)               -           -             -           -
                               Less Bond Proceeds         (7,600,000)   (10,800,000)            -            -            -
                               Less Interest Income          (50,000)        (50,000)     (50,000)     (50,000)     (50,000)
                               Less Muskegon
                               Township Contract
                               Operations Income            (200,000)      (200,000)     (200,000)    (200,000)    (200,000)

                               Net to All Customers
                               (Expenses less State
                               Grant, Bond Proceeds,
                               Interest Income, and
                               Muskegon Township
                               Contract Operations
                               Income)                     3,707,177      4,687,377     5,557,264    5,706,426    5,856,165




Tetra Tech
SmartRate                                             Muskegon Water Rate Study
0482.034                                                                                                                       5/29/2003 4:40 PM
                                                   Table 11
                                       Projected Water Rate Calculations


         CITY:                                         Proposed   2004     2005     2006      2007
         vommomty 1.,;narge t'er 100 1.,;uoIc r-eet
        •" (Expenses Allocated to All
         Customers/Total Equivalent Billable
         Flow) x 1.00                                      0,88     1.09     1.27     1.28       1.29

        MUSKEGON COUNTY NORTHSIDE:
        "ommouIty u,arge l'er 100 l.;UDJc t-eet
        = (Expenses Allocated to All
        Customers/Total Equivalent Billable
        Flow) X 1.25                                       1.10    1.36      1.58     1.60       1.61

        ROOSEVELT PARK:
        ..,ommomty "narge Per 100 (;UoJc t-eet
        =  (Expenses Allocated to All
        Customers/Total Equivalent Billable
        Flow) x 1.35                                       1.18    1.47     1.71     1.72       1.74

        NORTH MUSKEGON:
        ..;ommodIty "narge Per Iu0 cuoIc Feet
        =  (Expenses Allocated to All
        Customers/Total Equivalent Billable
        Flow) x 1.35                                       1.18    1.47     1.71     1.72       1.74

        MUSKEGON TOWNSHIP:
        i:,ase CommoaIty 1.,;narge t'er 100 1.,;uoIc
             =
        Feet (Expenses Allocated to All
        Customers/Total Equivalent Billable
        Flow) x 1.35                                       1.18    1.47     1.71     1.72       1.74
                                                .


        NORTON SHORES (MISCELLANEOUS
        SERVICES):
        Commodity v11arge t'er 100 vUDIC i-eet
        = (Expenses Allocated to All
        Customers/Total Equivalent Billable
        Flow) x2.00                                        1.75    2.18     2.53     2.55       2.57

        MISCELLANEOUS OUTSIDE:
        vommomty 1.,;narge t'er 100 1.,;uoIc r-eet
        = (Expenses Allocated to All
        Customers/Total Equivalent Billable
        Flow) x 1.50                                       1.32    1.63     1.90     1.92       1.93




Tetra Tech
SmartRate
0482.034                                 Muskegon Water Rate Study                         6/11/2003 9:52 AM
                                                                    Table 12
                                                             Water System Revenues

                            2000               2001        2002       2003          2004         2004
      591 WATER FUND      (Actual)           (Actual)    (Actual)   (Budget)      (Budget)     (RevEst)      2005        2006          2007
                Subtotal 3,936,337          4,717,919   4,169,079   5,100,000    11,657,177   15,737,377 , 5,807,264   5,956,426     6,106,165

    Expenditures                4,047,743   5,629,540   5,050,939   4,916,396    11,657,177   15,737,377   5,807,264   5,956,426     6,106,165

    Available Cash Balance,
    Beginning of Year*'         6,094,347   5,982,941   5,071,320   4,189,460     4,373,064    8,873,064   4,373,064   4,373,064     4,373,064
    Transfer from Cash
    Balance**                    111,406     911,621     881,860     (183,604)            -    4,500,000           -           -              -
    Available Cash
    Balance, End of Year        5,982,941   5,071,320   4,189,460   4,373,064     4,373,064    4,373,064   4,373,064   4,373,064     4,373,064


    *' 2004 (Revised
    Estimate) Available Cash
    Balance increased by
    $4,500,000 to account
    for previous bond issue
    proceeds available)
         ** Amount for 2004 -
                        2007:      50,000




Tetra Tech
SmartRate                                                   Muskegon Water Rate Study
0482.034                                                                                                                           6/11/2003 9 :54 AM
                                                                         Table 12
                                                                  Water System Revenues

                                 2000           2001           2002           2003           2004           2004
      591 WATER FUND           (Actual)       (Actual)       (Actual)       (Budget)       (Budget)       (RevEst)        2005        2006           2007
   Revenues
   Special Assessments                    -              -              -              -              -              -           -           -              -
   EDA Grant Seaway Ind
   Park                                   -              -              -              -              -              -           -           -              -
   State Grant Shoreline
   Drive                                  -              -              -     100,000        100,000
   State Shared Revenue                   -              -              -              -              -              -           -           -              -
   Charges: City (2000,
   2001 included all
   customers; 2002 Rev
   Est, 2003 Budget
   included all except
   Muskegon Twp)               3,531,540      3,980,059      4,084,612      4,500,000      2,439,756      3,058,907      3,595,302   3,659,143     3,721,088
   Charges: Muskegon
   County Northside                                                                          201,959        263,239       321,653     340,329        359,797

    Charges: Roosevelt Park                                                                  282,489        354,178       416,285     423,677        430,849
    Charges: North
    Muskegon                                                                                 382,603        489,198       586,367     608,596        631,154
    Charges: Muskegon
    Township                              -              -              -     450,000        391,658        510,499       623,780     659,999        697,754
    Muskegon Township
    Contract Operations
    Income                                -              -              -              -     200,000        200,000       200,000     200,000        200,000

    Charges: Norton Shores
    (Miscellaneous Services)                                                                   7,486          9,758         11,923      12,616        13,337
    Charges: Miscellaneous
    Outside                               -              -              -              -       1,226          1,598          1,953       2,066         2,184
    Hydrant Rental -
    Muskegon Twp                          -              -              -              -              -              -           -           -              -
    Interest Income*             320,696        230,864         84,467         50,000         50,000         50,000         50,000      50,000        50,000
    Operating Transfers In                -     454,812                 -              -              -              -           -           -              -
    Other (NEW BOND
    ISSUANCE)                     84,101         52,184                 -              -   7,600,000      10,800,000             -           -              -
Tetra Tech
SmartRate                                                        Muskegon Water Rate Study
0482.034                                                                                                                                         6/11/2003 9:54 AM
                                                                                                    Table 13

I                                                                                          Water Cost Comparison

                                                                                                                                                                                               nverage
                                                                                                                                                                                               Annual
                                                                                                                                                                                               Percent
                                                                                                                                                                                               Change:
                                                                                                Percent               Percent              Percent              Percent              Percent Current
                 CITY                                                     Current Proposed ChanQe         2004        Change    2005       Change    2006       Change    2007       Change to 2007
                 Quarterly Bill for a 5/8" Average Usage Residential
                 Customer and 26 Units Der Quarter:
                                                            Meter Size:
                                                                   5/8"       7.50      0.00                   0.00                0.00                 0.00                 0.00
                                                 100 Cubic Foot Usaae:
                                                                     26      17.42     22.81                28.32                 32.95                33.20                33.43
                                                                Total:       24.92     22.81       -8%      28.32        24%      32.95       16%      33.20        1%      33.43        1%             7%

                        Quarterly Bill for a 1" High Usage Residential
                                Customer and 100 Units oer Quarter:
                                                            Meter Size:
                                                                     1"      18.75      0.00                   0.00                0.00                 0.00                 0.00
                                                  100 Cubic Foot Usage:
                                                                    100      67.00     87.73               108.91                126.74               127.71               128.59
                                                                Total:       85.75     87.73        2%     108.91        24%     126.74       16%     127.71        1%     128.59        1%         10%

                    Quarterly Bill for a 2" Commercial Customer and
                                               500 Units per Quarter:
                                                          Meter Size:
                                                                   2"        60.00      0.00                   0.00                 0.00                 0.00                0.00          .


                                                100 Cubic Foot Usage:
                                                                  500       335.00    438.66               544.54                633.69               638.55               6~.93
                                                               Total:       395.00    438.66       11%     544.54        24%     633.69       16%     638.55        1%     642.93        1%         13%

                    Quarterly Bill for a 3" Commercial Customer and
                                              2,000 Units per Quarter:
                                                           Meter Size:
                                                                    3"      112.50       0.00                  0.00                 0.00                 0.00                0.00
                                                 100 Cubic Foot Usage:
                                                                 2,000    1,340.00   1,754.64             2,178.15              2,534.75             2,554.22             2,571.74
                                                                Total:    1,452.50   1,754.64      21%    2,178.15       24%    2,534.75      16%    2,554.22       1%    2,571.74       1%         15%

                    Quarterly Bills (Commodity Charge Portion Only)
                      for Quarterlv 100 Cubic Foot Usaae as Noted:
                                                   Lorin Industries:
                                                              43,496 29142.32 38,159.96            31% 47,370.34         24% 55,125.72        16% 55,549.08         1% 55,930.17         1%         18%
                                                       state Prison:
                                                             42,669 28,587.90 37,433.98            31% 46,469.14         24% 54,076.97        16% 54,492.27         1% 54,866.11         1%         18%
                                           Sealed Power Comcanv:
                                                              12,805 8,579.35 11,234.10            31% 13,945.59         24"/o 16,228.73      16% 16,353.36         1% 16,465.55         1%         18%
                                               West Michicran Steel:
                                                              10,455 7,004.52 9,171.95             31'% 11,385.72        24% 13,249.77        16% 13,351.52         1% 13,443.12         1%         18%
                                                  Hacklev Hosoital:
                                                               9,623 6,447.24 8,442.24             31% 10,479.88         24% 12,195.63        16% 12,289.29         1% 12,373.60         1%         18%
                                                        Hv-Lift Inc.:
    Tetra Tech
    SmartRate
    0482.034                                                                             Muskegon Water Rate Study                                                                                           6/11/2003 9;55 AM
                                                                                               Table13
                                                                                        Water Cost Comparison
                                                                                                                                                                           ttVerage
                                                                                                                                                                           Annual
                                                                                                                                                                           Percent
                                                                                                                                                                           Change:
                                                                                         Percent             Percent             Percent          Percent          Percent Current
              CITY                                                    Current Proposed Chanae        2004    Change      2005    Change   2006    Change   2007    Change to 2007
                                                           9,008       6,035.36 7,902.91    31%     9,810.37    24°/4, 11,416.51    16% 11,504.19     1% 11,583.11     1%        18%
                                  Mercv General Health Partners:
                                                           8,885      5,952.78   7,794.78    31%    9,676.15    24% 11,260.31    16% 11,346.78       1% 11,424.63      1%       18%


              MUSKEGON COUNTY NORTHSIDE: Annual
              Commoditv Charae Revenue
              100 Cubic Foot Usaoe, {based on Actual 2002):
                                                        175,390        146,889   192,342     31%    238,766     24%   277,856     16%   279,990      1%    281,911     1%       18%

              ROOSEVELT PARK: Annual Commodity Charge
              Revenue
              100 Cubic Foot Usaae, £based on Actual 2002\:
                                                        236,150        197,776   258,974     31%    347,199     34%   347,199      0%   404,042     16%    409,938     1%       21%

              NORTH MUSKEGON: Annual Commodity Charge
              Revenue
              100 Cubic Foot Usaae, £based on Actual 2002\:
                                                        313,631        262,666   343,944     31%    461,116     34%    536,609    16%    540,730     1%    544,439,    1%       21%

                                     : 1.,ommou1ty .....arge
              Revenue (based on 2002 billable flow) vs. 2002
              Total Ready-to-Serve and Commodity Charge
              Revenue
              100 Cubic Foot Usaae, {based on Actual 2002\:
                                                            314,938
                                                  Readv-to..Serve       83,902         0
                                                        Commodi        349,581   373,007
                                             Contract Orierations            0         0            200,000            200,000           200,000           200,000
                                                              Total    433,483   373,007     -14%   663,037     78%    738,845    11%    742,983     1%    746,708     1%       14%

              NORTON SHORES fMiscellaneous Services\
              CommoditV CharQe:
                                         Per 100 Cubic Feet               1.34       1.75    31%        2.18    24%       2.53    16%       2.55     1%       2.57     1%       18%

              MISCELLANEOUS OUTSIDE
              Commoditv Charae:
                                               Per 100 Cubic Feet:        1.01       1.32    31%        1.63    24%       1.90    16%       1.92     1%       1.93     1%       18%




Tetra Tecti
SmartRate
0482.034                                                                              Muskegon Water Rate Study                                                                        6/11/2003 9:55 AM
                                                                  Table 14
                                           Revenue Percent-to-Billable Flow Percent by User Class

USER CLASS                 1998        1999        2000        2001        2002        2003        2004        2005        2006        2007
                  Citv:

 Flow, 100 Cubic Feet:    3,030,907   2,910,031   2,871,081   3,011,411   2,753,381   2,780,915   2,808,724   2,836,811   2,865,179   2,893,831
 Percent of Total Flow:      77.37%     77.68%     77.25%      75.68%    72.49%     72.00%     71.50%     70.99%     70.47%     69.94%
             Revenue:     $2,367,364 $2,367,989 $2,475,923 $2,544,062 $2,427,056 $2,439,756 $3,058,907 $3,595,302 $3,659,143 $3,721,088
      Percent of Total
             Revenue:        70.17%     70.17%      70.31%      71.29%      68.87%      62.45%      62.59%      62.45%      61.96%      61.45%

     Muskeaon Two:

  Flow, 100 Cubic Feet      330,878    284,681     323,273     316,295     314,938     330,685     347,219     364,580     382,809     401,950

 Percent of Total Flow:       8.45%     7.60%       8.70%       7.95%       8.30%       8.57%       8.84%       9.13%       9.42%       9.72%
             Revenue:      $571,141   $492,976    $545,240    $433,347    $433,483    $591,658    $710,499    $823,780    $859,999    $897,754
      Percent of Total
             Revenue:        16.93%     14.61%      15.49%      12.15%      12.31%      15.15%      14.54%      14.31%      14.57%      14.83%

  Other Outside-Citv:

  Flow, 100 Cubic Feet      555,744    551,928     522,598     651,648      730,122    750,909     772,453     794,786     817,938      841,946

 Percent of Total Flow:     14.19%     14.74%       14.06%     16.38%      19.23'¾     19.45%      19.67%     19.89%    20.12%     20.35%
             Revenue:      $435,502   $514,055    $500,430    $591,516    $663,638    $875,764 $1,117,971 $1,338,181 $1,387,284 $1,437,323
      Percent of Total
             Revenue:        12.91%     15.24%      14.22%      16.58%      18.84%      22.42%      22.88%      23.25%      23.49%      23.74%

           City Flow%        77.37%     77.68%      77.25%      75.68%      72.49%      72.00%      71.50%      70.99%      70.47%      69.94%
      Citv Revenue %         70.17%     70.17%      70.31%      71.29%      68.87%      62.45%      62.59%      62.45%      61.96%      61.45%
     Non-City Flow %         22.64%     22.34%      22.76%      24.33%      27.53%      28.02%      28.51%      29.02%      29.54%      30.07%
  Non-Citv Revenue %         29.84%     29.85%      29.71%      28.73%      31.15%      37.57%      37.42%      37.56%      38.06%      38.57%

       Total Flow 100
          Cubic Feet:      3,917,529 3,746,640 3,716,952 3,979,354 3,798,441      3,862,509 3,928,397 3,996,177 4,065,927 4,137,727
       Total Revenue:     $3,374,007 $3,375,020 $3,521,593 $3,568,925 $3,524,177 $3,907,177 $4,887,377 $5,757,264 $5,906,426 $6,056,165


Tetra Tech
SmartRate
0482.034                                                  Muskegon Water Rate Study                                           5/29/2003 4:52 PM
 Glossary of Terms


 Ancillary Charges - Charges for services not recovered through water rates. These services are not
 directly related to general water service and are to benefit specific customers.
 Bond Coverage - A ratio of revenues in excess of expenses to cover debt service payment.
 Bond Covenants - Contractual commitments to bondholders.
 Cash-needs Approach - A method of determining user charges based on the annual cash requirements
 of the utility operation.
 Cost Allocation - The procedure for assigning costs to utility service functions.
 Cost of Service - Operating expenses, capital expenditures, and other cash requirements to provide
 utility service.

Debt Service - Cash requirements for the payment of interest and principal on revenue bonds.
Rate Blocks - A rate design method where different rates are charged for defined volumes of usage.
Revenue Bonds - Long-term debt payable from the revenues derived from user charges and fees.
Revenue Requirements - Financial resources required to fund the utilities operation and maintenance
expenses, annual debt service payments, and capital replacement/renewal costs.
User Charges - Costs assessed to customers for utility services including volume rates, billing and
customer service charges.




Muskegon Water cost of Service Study
                                                                   · toL\dJ
                               AGENDA ITEM NO.        .2..003-, . to    ?u\)
                           CITY COMMISSION MEETING            8/12/03


TO:           Honorable Mayor and City Commissioners

FROM:         Bryon L. Mazade, City Manager

DATE:         July 30, 2003

RE:           Energy Savings Performance Contract - L. C. Walker Arena


SUMMARY OF REQUEST:

To approve a Letter of Intent with Siemens Building Technologies, Inc., to enter into a
Guaranteed Savings Performance Contract for the L. C. Walker Arena.



FINANCIAL IMPACT:

$15,000



BUDGET ACTION REQUIRED:

None at this time.



STAFF RECOMMENDATION:

To approve.



COMMITTEE RECOMMENDATION:




O:COMMON\DEPTMENT\ADMIN\AGNDAFRM
JMS - 0: (SIEMENS-LCW CONTRACT)
                                                                   c)ooJ ·· c; ,;   (al Estala
                                                                                                    Transfer fa:,.: and Stale Real Estate
 STATE TREASURER DEED                                                                               Transfer Tax under MCL secUons 207.505
                                                                                                    (H) and 207.526 (H)(I) ,espaclively
 Issued under aulhonly or Sed1on 21167a, ..icL               184882

 On this 2nd of May, 2000        the grantor, Mark A. Murray, Stale Treasurer,    Stale of Michigan, 430 W. Allegan St., Lansing,
 Michigan 48922, by his aut1!Prized representa!lve Thomas E. Willard, quit-claims the following described property to the State of
 Michigan, whose address is,;iepartment of Natural Resources, Real Estate Division,P.O. Box 30448, Lansing, Michigan 48909-7948.


 Title became absolute in lhe Slate or Michigan by court decree of tile Circuit Court of the County named below and nonredemptlon
from lhe 1999         tax sale within the slalulory period. Under section 67a of P.A. 206 of 1893,as amended, the grantor, for and in
consideration of lhe premises, conveys lo the grantee, Slate of Michigan, the followlng;

 MUSKEGON                                          County, State of Michigan.
         Township of Blue Lake SN186
         FRUITVALE
         Lois 1 to 48 incl Blk 22
         610423200100

         Township of Blue Lake SN190
         FRUITVALE
         Lots 37 & 38 Blk 46
         610425603700

         Township of Blue Lake SN195
         SUPERVISOR'S PLAT OF LAKEVIEW ADDITION TO FRUITVALE
         Lots 55 & 56 Blk 3
         610434305500

         Continued on next page
Witnesses:




                                                                          Drafted b      Jan Rial
                                                                                     y Local Property Services Division
                                                                                      Treasury Building
STATE OF MICHIGAN                )                                                    Lansing, Michigan 48922
                                 )SS
County of Ingham                 )


On this       28th                 day of          August              ,2000 , the foregoing instrument was acknowledged before me
by Thomas E. W,llard. aulhonzed representallve ot the State Treasurer.          /I
My commission expires November 07, 2002
                                                                       ~-@-:,~d~v--4'
                                                                                 . . . .«=L~---
                                                                          Tom L. Falcon, Notary Public, Ingham County                    r-0
                                                                                                                                     C\✓




                                                                                                                                             r.
                                                                                                                                             i_._;
                 NOTICE OF HEARING BEFORE THE CITY COMMISSION


 DA TE August 1. 2003


        509 Adams

        (Address of Property)


TO:     All owners and interested parties:


        State of Michigan, P.O. Box 30735, Lansing, Ml 48909-8235
        Owner

        None
        (Other interested parties)




On June 5 2003 the Muskegon Housing Board of Appeals made a determination that
the subject property is sub-standard, a public nuisance and a dangerous building under
the City Code and ordered that it be repaired or demolished.

The City Commission will hold a hearing on Tuesday, August 12, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, August 12, 2003, at the Muskegon City Hall, 933 Terrace
Street, Muskegon, Michigan, with counsel, if you desire, to present any relevant
evidence and arguments concerning the decision to demolish the above structures.



                                     CITY OF MUSKEGON INSPECTIONS DEPT.
                                     ~ E HOOSING BOARD OF~PPEALS

                                     By{cGJ-? lfil,
                                     Robtrt B. Grabinski, Director of Inspections




O\INSPECTIONS\GRABINSKI LORRAINE\WORD\CC MEETINGS\STANDARD FORMS\NOTICE OF CITY COMMISSION
HEARING DOC            -
                           CITY OF MUSKEGON
          CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS



Date:          June 6, 2003

        To:    State of Michigan, P.O. Box 30735, Lansing, Ml 48909-8235
               Owners Name & Address

               None
               Names & Addresses of Other Interested Parties



                           ORDER TO DEMOLISH STRUCTURE



       The Housing Board of Appeals, having received evidence at a scheduled and
noticed meeting held on Thursday, June 5, 2003 does hereby order that the following
structure(s) located at 509 Adams, Muskegon, Michigan, shall be demolished for the
reason that the said structure or structures are found, based upon the evidence before
the Board of Appeals, to be dangerous, substandard and a public nuisance.

The owners or persons interested shall apply for the required permits to demolish the
structure(s) within 30 days from the final determination to concur and demolish, if it is
made by the City Commission. Demolition shall be accomplished no later than 60 days
after a concurrence by the City Commission.

       The director of inspections is ordered to place before the Muskegon City
Commission this order and the record in this case to seek concurrence by the City
Commission with the decision of this board, and further to give notice to the owner and
interested parties of the date and time when this matter shall be considered by the City
Commission. This order is not final until concurred with by the City Commission.




O:\INSPECTIONS\GRABINSKI_LORRAINE\WORDIHBA MEETINGS\STANDARD FORMSIORDER TO DEMOLISHDOC
                    NOTICE TO OWNER AND INTERESTED PARTIES

Please take notice that this decision of the Housing Board of Appeals will be presented
to the City Commission of the City of Muskegon on the date and at a time to be noticed
to you by the Director of Inspections. You are hereby notified that you will have an
opportunity to appear before the said City Commission at that time and to present any
and all evidence or matters relevant to the issue of demolition or repair of the said
structures. This order of the Housing Board of Appeals is not final, but will become final
if and when the City Commission has considered the record and this order, and has
concurred.

         The City Commission may concur with this order, or disapprove or modify the
order.




                                                        .r
                                             Robert   Ei.   Grabinski, Director of Inspections




0:IINSPECTIONS\GRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\ORDER TO DEMOLISH.DOC
                              CITY OF MUSKEGON
                 CITY OF MUSKEGON HOUSING BOARD OF APPEALS

                                     NOTICE OF HEARING

Date: May 22, 2003

Address of the Property:       509 Adams


TO:     State of Michigan, P.O. Box 30735, Lansing, Ml 48909-8235
        [Name & Address of Owner]

        None
        [Names & Addresses of Other Interested Parties]




Please take notice that on Thursday, June 5, 2003, the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, Ml at 5:30 o'clock
p.m., and at the said hearing consider whether or not the following structure should be
determined to be dangerous, substandard and a nuisance, and demolished, or
repaired.

The reason for this hearing is that you have not complied with the Notice and Order to
Repair or Demolish issued 3/21/03.

At the hearing on Thursday, June 5, 2003, at 5:30 o'clock p.m., at the Muskegon City
Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire, to show cause why the structure should not be allowed or
ordered demolished.


                              CITY Of,.Ml,/SKEGON INSPECTION DEPARTMENT,

                              : : Brn,:z:~t=_-~/),:                ,~:~ck·F      APPEALS

                              Robert B. Grabinski, Director of Inspections




0 IINSPECTIONSIGRABINSKI_LORRAINEIWORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARING.DOC
                                                      CITY OF MUSKEGON)-~
                                                      Inspections Services--'..
                                                      Department - · · ··· ·· "




Memo
To:           PIONEER RESTORATION
              ATTN: DEB

From:         Lorraine

CC:

Date:         February 13, 2003

Re:           REQUEST FOR BOARD UP



PLEASE BOARD THE FOLLOWING PROPERTIES:
--------------------------~
ADDRESS LOCATION TO BOARD/SECURE
>-------------+--------------------~--
509Adams                 Any broken windows and unsecured doors



IF YOU HAVE ANY QUESTIONS PLEASE DON'T HESITATE TO CALL ME AT
(231) 724-6757.

THANKS!




:11: Page 1
                                   CITY OF MUSKEGON

      NOTICE AND ORDER TO REPAIR OR REMOVE (DEMOLISH) A STRUCTURE

DATE:          March 21, 2003

Address of the Property:       509 Adams



TO:     State of Michigan, P.O. Box 30735. Lansing. Ml 48909-8235
        [Name & Address of Owner]

        None
        (Interested Parties)




        The Building Inspection Department of the City of Muskegon has determined that
the structures above described are dangerous, substandard, and constitute a nuisance
in violation of the Dangerous Buildings Ordinance of the City.

       You are hereby notified that the City will proceed to demolish or cause the
demolition and removal of the said structure unless you accomplish the actions
indicated below within the time limits indicated (only one to be checked):

        1.    X       Obtain the issuance of all permits required to accomplish the repair
                      of the structure defects listed in the attached schedule within
                      30 days of this notice. All repairs shall be accomplished within the
                      times set forth in the permits. All work must be physically
                      commenced within 30 days of the date of this notice.

        2. _ __      Obtain the issuance of the appropriate permit for the demolition of
                     structures within 30 days, and accomplish the demolition thereof
                     within 60 days of this notice.



The conditions which cause the said structures to be dangerous, substandard and a
nuisance are listed in the attached schedule.
                                 FAILURE TO COMPLY

After 30 days from mailing this notice, if you have not complied with this notice, a
hearing will be scheduled before the City of Muskegon Housing Board of Appeals for
the purpose of enforcing this notice and order and instituting City action to remove the
structure. You will receive notice of that hearing. You may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire. You will have the opportunity to show cause why the structure
shall not be ordered demolished.


                             SCHEDULE OF CONDITIONS

The following conditions are present at the structure at 509 Adams, Muskegon,
Michigan, and cause said structure to be a dangerous or substandard building and a
public nuisance.

       Please see the attached inspection report


                    CITY OF MU~ON INSPECTION DEPART[y1ENT


                                     iM~lLJ~~-
                                   Ro~ert B. Grabinski, Director of Inspections
                                CITY OF MUSKEGON

                 DANGEROUS BUILDING INSPECTION REPORT

                                     509 ADAMS

                                        3/19/03


Inspection noted:

I.     Interior inspection required by the Inspection Services Dept. Trade inspectors
       (plumbing, mechanical, electrical and building).
2.     Severe damage to roof system, roof covering must be removed and inspection of
       sheathing and rafters will be required.
3.     Replace all damaged siding.
4.     Repair or replace all damaged doors, windows, and screens on home.


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
4-23 OF THE MUSKEGON CITY CODE.




             TINOWSKI, BUILDING JNSP            TOR               DATE
                                            \




O:\Inspections\Grabinski_ Lorrainc\Word\DANGEROUS BUILD ING INSPECTION REPORTS\509
ADAMS.doc
 HBA Minutes 615/03




 DANGEROUS BUILDING NEW CASES:

 Case# 03-18 - 509 Adams - State of Ml

 There was no one present to represent this case.

 Staff Recommendation: Declare this building substandard, a public nuisance,
 and dangerous building and forward to city commission for their concurrence.

 A motion was made by Clara Shepherd and seconded by Nick Kroes to accept
 staff recommendation.

 A roll call vote was taken:

 AYES:                 NAYES:             EXCUSED:            ABSENT:

 John Warner                              Greg Borgman
 Randy Mackie
 Jon Rolewicz
 Nick Kroes
 Jerry Bever
 Clara Shepherd

 The motion carried.

·. ase #03-07 - 2037 Kinsey - Harry & Katherine Jour

 There    s no one present to represent this case. r. Grabinski gave a history of
             ich began with a Police Departme investigation.

 Staff Recommen     ·on: Declare this buil · g substandard, a public nuisance,
 and dangerous buildin and forward t city commission for their concurrence.

A motion was made by Nick         s and seconded by Clara Shepherd to accept
staff recommendation.

A roll call vote was tak

AYES:                  NAYES:             EXCU                ABSENT:

 John Warner.                             Greg Borgma
 Randy M     ie
 Jon Ro wicz




                                       4 of 8
DATE:                August4,2003

TO:                   Honorable Mayor and Commissioners

FROM:                Robert B. Grabinski, Director of Inspection Services

RE:                  Concurrence with the Housing Board of Appeals Notice and Order
                     to Demolish. Dangerous Building Case#: 03-02 Address: 424
                     Orchard.


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
424 Orchard 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: #03-02, 424 Orchard, Muskegon , Ml

Location and ownership: This structure is located on Orchard between Wood
and Williams and is owned by the State of Michigan.

Staff Correspondence: A dangerous building inspection was conducted on
4/18/03 with the housing and building inspector. A notice and order to repair or
remove was issued 4/23/03 and on 6/5/03 the HBA declared the structure
substandard and dangerous. The structure has recently gone back to the state
for back taxes.

Owner Contact:                  There has been no contact.

Financial Impact:               CDBG

Budget action required:                    None

State Equalized value:                     $8 ,700

Estimated cost to repair:                  $12,000

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

City Commission Recommendation: The commission will consider this item at it's
meeting Tuesday, August 12, 2003.




O:\l nspect ions\Grab inski_ Lorraine\ Word\CC MF.F.TINCiS\Agcnda 424 Orchard.doc   p;ige I of l
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     \
 For The Inspection Department                                                             File#: 424584
 City of Muskegon



                               FROM CITY ASSESSOR'S RECORDS


 OWNER:                            Scott Flaska - SJ LLC


 PROPERTY:                         424 Orchard

 PARCEL NO:                        24-205-045-0014-00

 DESCRIPTION:                      S 60 ft. Lot 14 Blk 45


                        FROM RECORDS OF TRANSNATION TITLE


LIBER:                            2295

PAGE:                             566

DATE OF DEED:                                October 1, 1999

GRANTOR NAME & ADDRESS: S & J LLC, PO Box 81, Cedar, MI 49621


GRANTEE NAME & ADDRESS:                                 Scott L. Flaska, PO Box 81, Cedar, MI
49621

LIENS OR MORTGAGES: 3417/210

TODAY'S DATE:                     February 3, 2003

EFFECTIVE DATE:                              January 8, 2003 at 8:00 AM

Abstracted by: TRAN~~T\~~ TKL~\~~~~
                                                                             2~(~lz
The above information is to be used for reference purposes only and not to be relied upon as evidence of title and/or
encumbrances. Accordingly, said information is furnished at a reduced rate, and the Company's liability shall in no event
exceed the amount paid for said infonnation, should evidence of title and/or encumbrances be desired, application for title
insurance should be placed with Transnation Title Insurance Company.
                                                                                                    STATE OF MIC1IIGAN
                                                                                                   COIJNTY OF MUS,EGLN
                                                                                                   RECEIVl'O l'OR RECORD
                                                                                                   1999 OCT -I AH II• Io

                                                                                                  ~£',i7.
                                                                                                  REG -7?'
                                                                                                                          ,!.,",If'
                                                                                                                      .,.J,tt~~
                                                                                                         isren '·    ,   ·:,ws
                                         QUIT CLAIM DEED

  Dated _ _10TH,_ _ _THIS DAYOF_ _JULY_ _1997_.

  The Grantor(s) _,.s,.&J._L.,,L.,c,__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~

  Whose AddreH la/are       P.O. BOX 81. CEDAR, Ml 49621

  Convey(s) and Quit Clalm(s) to    SCOTT L. FLASKA, A MARRIED MAN                                        ("GRANTEE($)"),

  Whose address la/are      P.O. BOX 81, CEDAR, Ml 49621

  the following described premises situated In the        CITY     of _,MnU""Se,K:,,Es,Ga.,O<>N,__ _ _ _ _ _ _ __

  County of   MUSKEGON and State of Michigan :

         ORIGINAL PLAT
         S 60 FT LOT 14 BLK 45

         AKA: 424 ORCHARD, MUSKEGON, Ml 49442

         61-31-20-455-020
  exempt under County transfer tax sec S(a) and State transfer tax 6(a)
  for the sum of LESS THAN ONE HUNDRED DOLLARS AND 001100                                       Do/lars($1esa than 100.00).



                                                       s~oed
                                                        --scorr L. FLASKA -GEN PARTNER




  STATE OF MICHIGAN                             )
                                                ss.
  COUNTY OF_ _LEELANAU_ _ __                    )

  The foregoing lnstrumsnt wao acknowledged before me th/1__1OTH_day of_JULY_1997_

  by_SCOTT, TOM & SHELLY.

                                                                                                         NOTARY PUBLIC,


  _ _LEELANAU_ _COUNTV, MICHIGAN

                                         MY COMMISSION EXPIRES,_ _ _5"'--,::_J,._,lS':;...·-e:,0,_.,o()<:.:...:J-..::...=...._ __
/4RAFTED BY:
  SCOTT L. FLASKA
  P.O. BOX81
  CEDAR, MICH. 49621
                                          ll3ER 3 . . l 1A6£ 2 I 0
                                                                                             -~?.,tr:· OF M:C! W}4N
                                                                                           CO!J.1, ,y OF MUS,i:GON
                                                                                                                            j
                                                                                           RECEt>'ED FOR RECORD

                                                                                           ~111 11,\Y -8 Alt 8: 33




Mknlg-, D°"art"""'I ol T,-.ry, LPS
                                                                                   This lormis Issued under !he authority
3121/1-00,
                                                                                   of Mel, Section 211.78g
CERTIFICATE OF FORFEITURE OF REAi. PROPERTY

On March 1, 2002 the following real property was forfeited to the MUSKEGON
County Treasurer for NON PAYMENT OF PROPERTY TAXES forthe
 year(s) 2000
This propeiiy will             be
                      tilled absolutely In the name of the foreclosing-governmental unit if not
redeemed within 21 days after entry of a judgment of foreclosure pursuant to Section 211.78k
of P.A. 123 of 1999. After this date parties of interest In this property will have NO FURTHER
RIGHT TO REDEEM.

 noperty             IU NO.:

     61-24-205-045-0014-00

 UW"!er accorutng lO ,ax recoru
      S J LLC'

 ,...,...... ress:     424 ORCRAJlD AVE                          Amount for Wllch property 'MS forfeited
                       MUSKEGON                           MI        $     1,360.64

r-rope ,, ....... scnpuon:
   S 60 FT LOT 1-4 BLK 45




      Prepared by:                                         Sign ture of County Treasurer




                                                     -                          kc.--,
   JAN A. KOENS
   990 Terrace
   Muskegon HI 49442
                                                               "'
                                                           Prin Name:
                                                                        ~-




                                                         ~      ,\. KOtNS
City of Muskegon Property lnfrinnation



     jHome         Help" Tools            T   Oep /r:ir; /h,H' hn., \ i r-fn, ')T r'l=')'){)Ll_                      Q/jt)(l/\'";.
               NOTICE OF HEARING BEFORE THE CITY COMMISSION


DATE: August 1, 2003


       424 Orchard

       (Address of Property)


TO:    All owners and interested parties:


       State of Michigan, 3rd Floor, Treasury Dept., Lansing, Ml 48922
       Owner

       None
       (Other interested parties)




On June 5, 2003 the Muskegon Housing Board of Appeals made a determination that
the subject property is sub-standard, a public nuisance and a dangerous building under
the City Code and ordered that it be repaired or demolished.

The City Commission will hold a hearing on Tuesday, August 12, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, August 12, 2003, at the Muskegon City Hall, 933 Terrace
Street, Muskegon, Michigan, with counsel, if you desire, to present any relevant
evidence and arguments concerning the decision to demolish the above structures.



                                     CITY OF MUSKEGON INSPECTIONS DEPT.
                                     F~.~--J,~f-HOUSING BOARD OF APPEALS


                                     s>      U-- f _ ~ J1 ·                     •
                                     Robe,,.,, B. Grabinski, Director of Inspections




OIINSPECTIONSIGRABINSKI_LORRAINEIWORDICC MEETINGSISTANDARD FORMSINDTICE OF CITY COMMISSION
HEARll'
                                                                                      L
                                                                                   ., <   .,
                                                                                               ~
                                                                                                   '


                                            Rob1rrt B. Grabinski, Director of Inspections




O:\INSPECTIONS\GRABINSKI_LORRAINE\WORDIHBA MEETINGS\STANDARD FORMS\ORDER TO DEMOLISH.DOC
                             CITY OF MUSKEGON
                CITY OF MUSKEGON HOUSING BOARD OF APPEALS

                                   NOTICE OF HEARING

Date: May 22, 2003

Address of the Property:     424 Orchard


TO:    Scott Flaska, P.O. Box 81, Cedar, Ml 49621
       [Name & Address of Owner]

       Muskegon County Treasurer. P.O. Box 177, Muskegon, Ml 49443
       [Names & Addresses of Other Interested Parties]




Please take notice that on Thursday, June 5, 2003, the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon. Ml at 5:30 o'clock
p.m., and at the said hearing consider whether or not the following structure should be
determined to be dangerous, substandard and a nuisance, and demolished, or
repaired.

The reason for this hearing is that you have not complied with the Notice and Order to
Repair or Demolish issued 4/23/03.

At the hearing on Thursday, June 5, 2003, at 5:30 o"clock p.m., at the Muskegon City
Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire, to show cause why the structure should not be allowed or
ordered demolished.


                             CITY OF MUSKEGON INSPECTION DEPARTMENT,
                             O4LF/OF THE HOrf ING ~OARD OF APPEALS

                             By     J{CJi::._f v<          ,~ A,. Jz.
                             Robert B. Grabinski, Director of Inspections




0 IINSPECTIONSIGRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARINGDOC
                                 CITY OF MUSKEGON

      NOTICE AND ORDER TO REPAIR OR REMOVE (DEMOLISH) A STRUCTURE

DATE:         April 23, 2003

Address of the Property:    424 Orchard



TO:     Scott L. Flaska, P.O. Box 81, Cedar. Ml 49621
        [Name & Address of Owner]

        Muskegon County Treasurer. P.O. Box 177. Muskegon, Ml 49443
        (Interested Parties)



        The Building Inspection Department of the City of Muskegon has determined that
the structures above described are dangerous, substandard, and constitute a nuisance
in violation of the Dangerous Buildings Ordinance of the City.

       You are hereby notified that the City will proceed to demolish or cause the
demolition and removal of the said structure unless you accomplish the actions
indicated below within the time limits indicated (only one to be checked):

        1. _.,_,X_   Obtain the issuance of all permits required to accomplish the repair
                     of the structure defects listed in the attached schedule within
                     30 days of this notice. All repairs shall be accomplished within the
                     times set forth in the permits. All work must be physically
                     commenced within 30 days of the date of this notice.

        2. _ __      Obtain the issuance of the appropriate permit for the demolition of
                     structures within 30 days, and accomplish the demolition thereof
                     within 60 days of this notice.



The conditions which cause the said structures to be dangerous, substandard and a
nuisance are listed in the attached schedule.
                                 FAILURE TO COMPLY

After 30 days from mailing this notice, if you have not complied with this notice, a
hearing will be scheduled before the City of Muskegon Housing Board of Appeals for
the purpose of enforcing this notice and order and instituting City action to remove the
structure. You will receive notice of that hearing. You may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire. You will have the opportunity to show cause why the structure
shall not be ordered demolished.


                             SCHEDULE OF CONDITIONS

The following conditions are present at the structure at 424 Orchard
Muskegon, Michigan, and cause said structure to be a dangerous or substandard
building and a public nuisance.

       Please see the attached inspection report


                     CITY OF MUS~J l~SPECTION ~PARTMENT

                                       {c/lXJ__v] ,{JJ;."1,
                                   Robert B. Grabinski, Director of Inspections
               DANGEROUS BUILDING INTERIOR INSPECTION
                           424 ORCHARD
                               4/18/03




1. Back porch needs structural repair - no footings, rotted floor joists, ceiling
    damage, rafter collapsed, new sheeting and roofing needed.
2. Kitchen roof sagging. Needs structural repair, new sheeting and roofing in that
    area.
3. Kitchen wall is bowing out. Structural or siding needs to be addressed.
4. No footings.
5. Interior floors have numerous areas that are unlevel.
6. Light fixtures throughout are missing globes and hardware.
7. Smoke detectors missing.
8. Wiring above dropped ceiling s has open splices and missing J boxes.
9. Flashing missing where service passes through roof.
10. Must provide exterior lighting at all egress doors.
11. Need water heater replaced.
12. Needs to have heat runs cleaned and furnace certified safe for operation by
    licensed mechanical contractor. If furnace is found to be unsafe, must be
    replaced.
13. Cooper water line in kitchen has come apart at coupling and needs to be
    repaired.
14. Water line in bathroom needs to be connected to the faucet and water stopper
    is missing.


BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, I
HAVE DETERMINED THAT THE STRUCTURE DOES MEET THE DEFINITION
OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN
SECTION 4-23 OF THE MUSKEGON CITY CODE.


                                                                    4-\fO ")
              INOWSKI, BUILDING IN       ECTOR                     DATE
HBA Minules 6/5/03




Case #03-02 - 424 Orchard - Scott Flaska

No one was present to represent this case.
Staff Recommendation: Declare this building substandard, a public nuisance,
and dangerous building and forward to city commission for their concurrence.

A motion was made by Clara Shepherd and seconded by Jerry Bever to accept
staff recommendation.

A roll call vote was taken:

AYES:                 NAYES:                EXCUSED:               ABSENT:

John Warner                                 Greg Borgman
Randy Mackie
Jon Rolewicz
Nick Kroes
Jerry Bever
Clara Shepherd

The motion carried.

Case #02-87 - 719 Orchard - John Lester & Faye Gil            rt

Mr. Gr · ski gave a history of this case and state oth parties involved have
been in con      with the Inspection Department. wnership is the issue in this
case. John Lester       ned it with Gennie Kell      (now deceased) and he and
Gennie's daughter, Fay        ilbert, have no eached an agreement on what to do
with the property. Mr. Leste as an at rney, but Ms. Gilbert stated she has not
heard from him. Mr. Grabinski s e e understands, but the reality is that if
they don't resolve the issue and            ething, the property will be a vacant lot.

Staff Recommendation: De re this building      standard, a public nuisance,
and dangerous building, t delay forwarding to c commission for their
concurrence for 60 da .

A motion was m e by Randy Mackie and seconded by Jon                lewicz to accept
staff recomme elation.

A roll caly ote was taken:
      /               NAYES:                EXCUSED:               ABSENT:
A/,S
John Warner                                 Greg Borgman
Randy Mackie



                                         5 of 8
DATE:                   August4,2003

TO:                     Honorable Mayor and Commissioners

FROM:                   Robert B. Grabinski, Director of Inspection Services

RE:                    Concurrence with the Housing Board of Appeals Notice and Order
                       to Demolish. Dangerous Building Case#: 01-37 Address: 1253
                       Calvin.


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
1253 Calvin 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: #01-37 - 1253 Calvin, Muskegon, Ml

Location and ownership: This structure is located on Calvin between Roberts
and Creston and is owned by Elizabeth Klein.

Staff Correspondence: A dangerous building inspection was conducted on
7/23/01 and an interior inspection was conducted 8/21/01. A notice and order to
repair was issued 8/2/01. The case was heard by the HBA on 9/6/01 and the
case was tabled for 60 days at that time. The case was heard again 12/6/01 and
the owner was again granted 60 days to complete the exterior repairs. On 6/6/02
the HBA granted 120 days to complete the exterior repairs. On 10/7/02 the HBA
declared the property substandard and dangerous. On July 22, 2003 the City
Commission tabled the case for 14 days to allow an inspection to be conducted
for an update on the status of repairs. The report from the inspectors is that no
progress has been made since their last inspection.

Owner Contact:       Owner appeared before the City Commission at their July
22, 2003 meeting. At that time the case was tabled until the August 12, 2003
meeting in order to comp lete an interior inspection. This inspection took place on
July 28, 2003 and noted that no permits have been taken for interior repairs. The
roof structure and electrical system have not been completed. Although the
exterior appears to be improved, the structure is not habitable at this time.

Financial Impact:                  None

Budget action required :                       General Funds

State Equalized value:                         $16,200


O :\ l 11spcctio11s\Grabi 11ski_ l .orrni 11c\ Word\CC lvlFF.TINGS\Agcnda 1253 Calvin.doc   page I of2
Estimated cost to repair:                    $10,000

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

City Commission Recommendation: The commission will consider this item at it's
meeting Tuesday, August 12, 2003.




O:\l nsper.:li{ms\(irahinski_l .orraine\ Word\CC IVIEETIN(iS\Agenda 1253 Calvin.doc   page 2 of2
 -1;
----1
    ~




                                ;   -----




        -'~--·~1-'" __   1247




        __J_   I
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                   d   2Z DO!




DSC00l 27.JPG                   DSCDD1 28•• IPCT




                  \253
o scnn1 29..IPG                 DSC00 I 30.,IPG
l"R                    arbor Title
                     955 West Broadway
                     Muskegon, MI 49441
                                                     Title Search
                                                                                                Case No.: I 00120955
                                                                                                        July 3 !, 2001

 1.    Beginning Date: 5/13/97, at 8:00 A.M.

      Please See Attached Liber 1983, Page 202, County Records, for Legal Description:

 2.   We have searched the records in the office of the Register of Deeds for County, Michigan covering the subject
      property, and find the following conveyances and undischarged encumbrances, from said beginning date to
      6/22/2001, at 8:00 A.M.

                                                        Documents
                         Deeds:                                                               Mortgages:
                  Liber 1982, Page 202                                                           NONE

                                                          Taxes:
                               Possible Sidewalk Assessment in the year 2002.

                               Possible Water/Sewer Usage Fees.

                               Proof of payment of invoice fees, due and payable to City
                               of Muskegon Treasurer in the amount of$60.00.

                               Payment of the 2000 delinquent taxes, due and
                               payable to the Muskegon County Treasurer in the
                               amount of$582.64, if paid by August 31, 2001.

                              Note:
                              Permanent Parcel No.: 61-24-685-008-0013-00.
                              2001 State Equalized Value: $13,400.00.
                              2001 Taxable Value: $10,087.00.
                              Non-Homestead Property.

3     We find no United States Internal Revenue Liens recorded in the office of the Register of Deeds of County,
      Michigan. against:

      Elizabeth Gubocki

4.    No search has been made for any instrument, however designated, which has been filed as a financing statement
      pursuant to the Uniform Commercial Code.

5.    No search has been made of the records of the Circuit, Probate or other Courts, or of any record other than those in
      the office of the Register of Deeds.

6.    Under this form of search this company is not an insurer of above title, nor does it guarantee the title or any
      evidence of title thereto.

7.    Note: In consider~tion of the fact that the above info1mation is to be used for reference purposes only and not
      relied upon as evidence of title, it is furnished at a reduced rate and this Company's liability is limited to the amount
                 NOTICE OF HEARING BEFORE THE CITY COMMISSION


DA TE: August 1, 2003


        1253 Calvin

        (Address of Property)


TO:    All owners and interested parties:


        Elizabeth Klein. 1940 Woodward, Muskegon, Ml 49442
        Owner

       None
       (Other interested parties)




On October 3. 2002 the Muskegon Housing Board of Appeals made a determination
that the subject property is sub-standard, a public nuisance and a dangerous building
under the City Code and ordered that it be repaired or demolished.

The City Commission will hold a hearing on Tuesday, August 12, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, August 12, 2003, at the Muskegon City Hall, 933 Terrace
Street, Muskegon, Michigan. with counsel. if you desire. to present any relevant
evidence and arguments concerning the decision to demolish the above structures.



                                      CITY OF MUSKEGON INSPECTIONS DEPT.
                                      FOR THE HOUSING BOARD OF APPEALS
                                          ~               -
                                          ~-
                                           \
                                                                                     •
                                        \\
                                      By'::
                                      Robert




0 \INSPECTIONSIGRABINSKI_LORRAINEIWORO\CC MEETll"GS\STANDARD FORMSINOTICE OF CITY COMMISSION
HEARING.DOC
Grabinski, Lorraine

From:                         LaBrenz, Don
Sent:                         Monday, July 28, 2003 445 PM
To:                           Grabinski, Bob; Grabinski, Lorraine
Subject:                      1253 Calvin


During a progress inspection at the above address, I observed that no progress has been made to the interior of the house
since my visit to inspect the service in 2001.

There currently are no permits on file to do any interior of the building.

When I spoke with the property owner, she stated that she has not had any money for repairs, and that her intention is to
"get in and clean it out so I can sell it"
                    NOTICE OF CITY COMMISSION DETERMINATION


 Date:    July 23, 2003

Address of the Property:      1253 Calvin


Description of the Structure:     Ramona Park Addition Lots 13 & 14 Blk 8 &
                            E ½ Garden St. Vac. Adj.



To:      Elizabeth Klein, 1940 Woodward, Muskegon, Ml 49442
         [Name & Address of Owner]

         None
         [Names & Addresses of Other Interested Parties]




        Please take notice that on July 22, 2003, the City Commission determined to
table your case for 14 days. This case may be brought back to the commission at the
discretion of the Director of Inspections for their concurrence with the order of the
Housing Board of Appeals that the above structure is a dangerous building,
substandard and a public nuisance after the 14 days.

        If you disagree with the decision of the City Commission, you have the right to
file a petition for superintending control in the Circuit Court for the County of Muskegon
within 21 days after the date of mailing of this notice.




                                     Robert B. Grabinski, Director of Inspections




0 \INSPECTIONS\GRABINSKI_LORRAINE\WORD\CC MEETINGS\STANDARD FORMS\CC DET. 30DAYSOOC
                 NOTICE OF HEARING BEFORE THE CITY COMMISSION


 DATE: July 11, 2003


        1253 Calvin

        (Address of Property)


TO:     All owners and interested parties:


        Elizabeth Gubocki, 1940 Woodward, Muskegon, Ml 49442
        Owner

        None
        (Other interested parties)




On October 3, 2002 the Muskegon Housing Board of Appeals made a determination
that the subject property is sub-standard, a public nuisance and a dangerous building
under the City Code and ordered that it be repaired or demolished.

The City Commission will hold a hearing on Tuesday, July 22, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, July 22, 2003, at the Muskegon City Hall, 933 Terrace Street,
Muskegon, Michigan, with counsel, if you desire, to present any relevant evidence and
arguments concerning the decision to demolish the above structures.



                                      CITY OF MUSKEGON INSPECTIONS DEPT.
                                      FO~.=jH?USjN~OAt,D                 or   ('P~~~LS

                                     B y _ 1_
                                            -!--
                                               _ ~             vi_JJ._.cJb_,_._~,X_,_·- -
                                     Robert   i/3.   Grabinski, Director of Inspections




0 \INSPECTIONS\GRABINSKI LORRAINE\WORD\CC MEETINGS\STANDARD FORMS\NOTICE OF CITY COMMISSION
HEARING.DOC             -
                           CITY OF MUSKEGON
          CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS



Date:          October 7, 2002

        To:    Elizabeth Klein, 1940 Woodward, Muskegon, Ml 49442
               Owners Name & Address

               None
               Names & Addresses of Other Interested Parties



                           ORDER TO DEMOLISH STRUCTURE

        The Housing Board of Appeals, having received evidence at a scheduled and
noticed meeting held on Thursday, October 3, 2002 does hereby order that the
following structure(s) located at 1253 Calvin, Muskegon, Michigan, shall be demolished
for the reason that the said structure or structures are found, based upon the evidence
before the Board of Appeals, to be dangerous, substandard and a public nuisance.

The owners or persons interested shall apply for the required permits to demolish the
structure(s) within 30 days from the final determination to concur and demolish, if it is
made by the City Commission. Demolition shall be accomplished no later than 60 days
after a concurrence by the City Commission.

       The director of inspections is ordered to place before the Muskegon City
Commission this order and the record in this case to seek concurrence by the City
Commission with the decision of this board, and further to give notice to the owner and
interested parties of the date and time when this matter shall be considered by the City
Commission. This order is not final until concurred with by the City Commission.




0:IINSPECTIONS\GRABINSKI_LORRAINEIWORDIHBA MEETINGSISTANDARD FORMSIORDER TO DEMOLISH DOC
                    NOTICE TO OWNER AND INTERESTED PARTIES

Please take notice that this decision of the Housing Board of Appeals will be presented
to the City Commission of the City of Muskegon on the date and at a time to be noticed
to you by the Director of Inspections. You are hereby notified that you will have an
opportunity to appear before the said City Commission at that time and to present any
and all evidence or matters relevant to the issue of demolition or repair of the said
structures. This order of the Housing Board of Appeals is not final, but will become final
if and when the City Commission has considered the record and this order, and has
concurred.

         The City Commission may concur with this order, or disapprove or modify the
order.




                                            ~pv1ru!J;.EALS
                                             Robrt B. Grabinski, Director of Inspections




0 IINSPECTIONSIGRABINSKI_LORRAINEIWORD\HBA MEETINGS\STANDARD FORMSIORDER TO DEMOLISH.DOC
                           CITY OF MUSKEGON
          CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS

                                    NOTICE OF HEARING

Date: September 19, 2002

Address of the Property:      1253 Calvin


TO:    Elizabeth Gubocki, 12689 Patricia Ave. Grant, Ml 49327
       [Name & Address of Owner]

       None
       Names & Addresses of Other Interested Parties]



Please take notice that on Thursday, October 3, 2002 , the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, Ml at 5:30 o'clock
p.m., and at the said hearing consider whether or not the following structure should be
determined to be dangerous, substandard and a nuisance, and demolished, or
repaired.

The reason for this hearing is to review the status of the repairs.

At the hearing on Thursday, October 3, 2002 , at 5:30 o'clock p.m., at the Muskegon
City Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire, to show cause why the structure should not be allowed or
ordered demolished.

                              CITY OF MUSKEGON INSPECTION DEPARTMENT,
                              ON BEHALF OF THE HOUSI G BOARD OF APPEALS

                                             i2.
                                      B. Grabinski, Director of Inspections




O:\INSPECTIONS\GRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARING DOC
                              CITY OF MUSKEGON
                 CITY OF MUSKEGON HOUSING BOARD OF APPEALS

                          ORDER TO TABLE THIS CASE 120 DAYS


Date of Order:           June 11, 2002

Address of the property:       1253 Calvin



       To:    Elizabeth Gubocki. 12689 Patricia Ave. Grant. Ml 49327
              Owners Name & Address

              None
              Names & Addresses of Other Interested Parties




                 '   '

                               CASE TABLED FOR 120 DAYS


The Housing Board of Appeals of the City of Muskegon has reviewed your case and
ordered that it be tabled for 120 days to finish the exterior repairs. All exterior repairs
are to be completed in that time and inspections called for.

This case will be reviewed again at the October Housing Board of Appeals meeting,
which you will be notified of.

If you have any questions, please call the Inspection Department at 231-724-6715.



                                             CITY OF MUSKEGON
                                             HOUSING BOARD OF APPEALS




                                                  rt B.Grabinski, Director of Inspections




                                              2
                                                           CITY OF MUSKEGON
                                                           Inspection Services




Memo                                         ff( \ ---
                                              \\-\ c,
                                                            7 LI l( --
                                                        i\] -
                                                                         Lc;s L(
                                                                -1 '.:-; C- -   L\ ct -~ L-/
 To:          Robert Grabinski

 From: Lorraine Grabinski

 CC:          File

 Date: 06/05/02
 Re:          1253 Calvin



 Beth Guqocki contacted the office this morning. She cannot make the HBA meeting
 6/6, due to her work schedule. She is asking for a 120 day extension to finish the
 roof because of finances and personal reasons. She is getting married August 17
 and will then be able to sell her house and have the money to finish the roof. She
 talked to Ardyce (CNS) about getting help, but didn't qualify because the roof doesn't
 leak.

 She wanted to schedule a meeting with Bob Grabinski. I told her that might not be
 necessary if she could update me on where she's at with repairs. I will call her on
 Friday or Monday to let her know Bob's decision.




 it: Page 1
                           CITY OF MUSKEGON
          CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS

                                    NOTICE OF HEARING

Date:   May 23. 2002

Address of the Property:      1253 Cal\'in




TO:     Elizaheth Gubocki. 12689 Patricia Ave. Grant Ml 49377
        [Name & Address of Owner]

        None
        Names & Addresses of Other Interested Parties]




        Please take notice that on Thursday, June 6, 2002. the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, MI at 5:30 o'clock p.m.,
and at the said hearing consider whether or not the following structure should be determined to
be dangerous, substandard and a nuisance, and demolished, or repaired.

        The reason for this hearing is to review your progress on the said structure.

        At the hearing on Thursday. June 6. 2002 , at 5:30 o'clock p.m .. at the Muskegon City
Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any relevant
evidence to the Housing Board of Appeals and have counsel of your choice present, if you desire.
to show cause why the structure should not be allowed or ordered demolished.




                                     ~ F MUSKEGON IN PECTIO DEPARTMENT,
                                     t'SNBEt:t:.:f:._.f/!J
                                                 1-1 S ~ BO    OF APPEALS     R;)
                                     By_ _,__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
                                        Robert B. Grabinski, Director of Inspections




F:\INSPECTIONS\GRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARINGDOC
                           CITY OF MUSKEGON
          CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS

                                     NOTICE OF HEARING

Date:   February 26, 2002

Address of the Property:        1253 Calvin, Muskegon MI

Description of the Structure:   Pomona Park Addition Lots 13 & 14 Blk 8 & E ½ Garden St.
                                vacated


TO:     Elizabeth Gubocki, 12689 Patricia Ave, Grant, MI 49327
        [Name & Address of Owner]

        None
        Names & Addresses of Other Interested Parties)




        Please take notice that on Thursday, March 7, 2002, the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, MI at 5:30 o'clock p.m,
and at the said hearing consider whether or not the following structure should be determined to
be dangerous, substandard and a nuisance, and demolished, or repaired.

        The reason for this hearing is to review your progress on the exterior repairs.

       At the hearing on Thursday, March 7, 2002 , at 5:30 o'clock p.rn., at the Muskegon
City Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any relevant
evidence to the Housing Board of Appea.ls and have counsel of your choice present, if you desire,
to show cause why the structure should not be allowed or ordered demolished.




                                       CITY      MUSKEGON INSPECTION DEPARTMENT,

                                      :y B E H ~ ~ ] : J : - ~ , : r ; . OF APPEALS

                                         Rob rt B. Grabinski, Director of Inspections




F:IINSPECTIONSIGRABINSKI_LORRAINE\WORDIHBA MEETINGS\STANDARD FORMSINOTICE OF HBA HEARING.DOC
 Affirmath·e Action
 231/724-6703
 FAX/722-1214

 Assessor
 231/724-6708
 FAX/726-5181

Cemetery
231/724---6783
FAX/726-5617

Civil Sen·ke
231/724-6716
FAX/724-4405                                            ,West Mlchlgan's Shoreline City
Clerk
231/724-6705
FAX/724-4178

Comm. & Neigh.
   Services
231/724-6717           December 10, 2001
FAX1726-2501

Engineering            Elizabeth Gubocki
231/724-6707
F AX/727-6904
                       12689 Patricia Ave.
                       Grant, Ml 49327
Finance
231/724-6713
FAX/724-6768           Re: 1253 Calvin
Fire Dept.
231/724-6792
FAX/724-6985
                       Dear Ms. Gubocki:
Income TaI
231/724-6770           On December 6, 2001 the Housing Board of Appeals heard your case on the
FAX/724-6768           above structure.
Info. Systems
231/724-6744
FAX/722-4301
                       The board's determination on this case is to grant you a sixty day extension to
                       complete the exterior repairs.
Leisure Service
231/724-6704
FAX/724-1196           If you have any questions, please contact this office at (231) 724-6715.
Manager's Office
231/724-6714           Sincerely,
FAX/722-1214




                       ~~·
Mayor's Office
231/724-6701
FAX/722-1214

Inspection Services
231/724-6715           Director of Inspections
FAX1726-2501
                       RBG/lg
Plannlng/Zonlng
231/724-6702
FAX/724-6790

Police Dept.
23 l /724-6750
FAX/722-5140
                                                                                                          :,:r··-·
Public Works
231/724-4100
FAX/722-4188

Treasurer
231/724-6720
FAX1724-6768

W111er Billing Dept.
231/724-6718
FAX/724-6768

Water Flltrutlon
231/724-4106
FAX1755-5290


                               City of Muskegon, 933 Terrace Street, P.O. Box 536, ~luskcgon, ~II 49443-0536
     CITY OF MUSKEGON
                                                            ~"
                                                                    0
                                                                        \r~S
          INSPECTION DEPARTMENT                                 '2.~f0C~-
          (231)724-671s         , ..-,- 9        f\"        1       ,
    INSPg_:tlON SHEET For -(-1 <:::J- 'l-~         1 ~-------
                                                 ~,=
    .a-1Julldlng        O Eiectrloo    O Mechanical             O Pfumblng        D Zoning
      , ___              f ___         , ___                    I
     0 F001lng          •   s..ic.      • Un,JA F OF THE HO SING BOARD OF APPEALS

                                                                                   •
                                              rt B. Grabinski, Director of Inspections




F:\INSPECTIONS\GRABINSl

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