City Commission Packet 04-24-2007

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      CITY                    F MUSKEGON
        CITY COMMISSION Ml:ETING
                           APRIL 24, 2007
     CITY COMMISSION CHAMBERS@ 5:30 P.M.
                                 AGENDA

o   CALL TO ORDER:
o   PRAYER:
o   PLEDGE OF ALLEGIANCE:
o   ROLL CALL:
o   HONORS AND AWARDS:
o   INTRODUCTIONS/PRESENTATION:
o   CONSENT AGENDA:
       A. Approval of Minutes. CITY CLERK
       B. Rezoning Request for Property Located at 527 Young Street. PLANNING
          & ECONOMIC DEVELOPMENT
       C. Donation of Bicycles - Muskegon County Health Department.     PUBLIC
          SAFETY
       D. Beach Leveling. PUBLIC WORKS
       E. 2007 Water Treatment Chemical Bids. PUBLIC WORKS
       F. Purchase of 2265 Lincoln. COMMUNITY & NEIGHBORHOOD SERVICES
      G. Consideration of Bids for Knollwood Ct., Beach Street to End (H-1625).
         ENGINEERING
      H. Multiple Special    Event Liquor License   Request.   ASSISTANT CITY
         MANAGER
o   PUBLIC HEARINGS:
o   COMMUNICATIONS:
o   CITY MANAGER'S REPORT:
o   UNFINISHED BUSINESS:
o   NEW BUSINESS:
      A. 2007-2008 Healthcare Renewal. FINANCE
         B. Resolution to Sell l 122 Spring.                         COMMUNITY & NEIGHBORHOOD
            SERVICES
         C. City - MDOT Agreement for the Reconstruction of Second, First,
            Jefferson and Market Streets. ENGINEERING
         D. City - MDOT Agreement for Federal Money Loan to Reconstruct Phase II
            of the Downtown Development. ENGINEERING
         E. City - MOOT Agreement for the Reconstruction of Creston Street,
            Laketon to Evanston. ENGINEERING
         F. Concurrence with the Housing Board of Appeals Notice and Order to
            Demolish the Following: PUBLIC SAFETY
             1885 Mcilwraith
             1178 Chestnut (Area 13) REMOVED PER STAFF REQUEST
             460 Houston (Area 10)
             369 Isabella (Area 11)
•   ANY OTHER BUSINESS:
•   PUBLIC PARTICIPATION:
•   Reminder: Individuals who would like to address the City Commission shall do the fol/owing:
•   Fill out a request to speak form attached to the agenda or located in the back of the room.
•    Submit the form to the City Clerk.
•   Be recognized by the Chair.
•   Step forward to the microphone.
•   State name and address.
•   Limit of 3 minutes to address the Commission.
•   (Speaker representing a group may be allowed JO minutes if previously registered with City Clerk.)

•   ADJOURNMENT:
ADA POLICY; THE CJTY OF MUSl(EG0N WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOT!CE TO THE CITY OF MUSl'--vLV\
                                                                                              1

                                                           Ann Marie Becker, MMC
                                                           City Clerk
               CERTIFICATE        (Rezoning of527 Young Street I-1 to I-2)

        The undersigned, being the duly qualified clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the 24 th day of April, 2007, at
which meeting a quorum was present and remained throughout, and that the original of
said ordinance is on file in the records of the City of Muskegon. I further certify that the
meeting was conducted and public notice was given pursuant to and in full compliance
with Act No. 267, Public Acts of Michigan of 1976, as amended, and that minutes were
kept and will be or have been made available as required thereby.
                                            \                                                                                    I
                    . ~~\_ _ _, 2007.
DATED: _ _'-_1_-_-_L_                           """,\'\__:.~--........,\.j\~
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                                                  Ann Marie Becker, MMC
                                                  Clerk, City of Muskegon



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

      Please take notice that on April 24, 2007, the City Commission of the City of Muskegon
      adopted an ordinance amending the zoning map to provide for the change of zoning of
      the following property from 1- l, "Light Industrial" to 1-2 "General Industrial":

                                          CITY OF MUSKEGON
             COM AT SECOR OF NW FRL ¼ SEC 31 T10N R16W TH N 00D QOM 00S E 1295.50
             FT ALG E LN OF SD NW FRL ¼ TH S 89D 46M 54S W 672.43 FT ALG S R/W LN
             OF YOUNG AVE & ITS EXTENSION IN YOUNG & WILLIAMS ADON FOR POB
             TH S 00D QOM O0S E 320.00 FT ALG W R/W LN TEMPLE ST TH S 89D 46M 54S W
             349.77 FT TH N 33D 14M 47S W 381.68 FT ALG THE NE R/W LN OF CSX RR
             TH N 89D 46M 54S E 559.02 FT ALG SD S R/W LN OF YOUNG AVE TO POB
             PROPOSED ESMT OVER RUDDIMAN CREEK DRAIN THAT PT OF FOL DESC ESMT
             LYING OVER AND ACROSS ABOVE PARCEL A 50 FT WIDE STRIP OF LAND C/L
             DESC AS COM AT THEW 1/4 COR OF SEC 31 T10N R16W TH S 89D 49M 59S E
             1031.12 FT ALG S LN OF NW FRL 1/4 SD SEC 31 FOR POB OF SD C/L
             TH N 45D 25M 16S E 354.00 FT TH N 02D 08M 16S E 495.50 FT TH N 43D 12M 46S E
             749.75 FT FOR POE OF SD C/L ON THE S R/W LN OF YOUNG AVE IN YOUNG &
             WILLIAMS ADON THE SIDELINES OF SD 50 FT WIDE STRIP OF LAND EXTEND OR
             SHORTEN TO ALLOW NO GAPS OR OVERLAPS

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

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

      Published                                          CITY OF MUSKEGON
                      - -1- - - -, 2007
                  - - Ma
                                                          By _ _ _ _ _ _ _ _ _ _~
                                                               Ann Marie Becker, MMC
                                                               City Clerk



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

Account No. 101-80400-5354
                                         Staff Report [EXCERPT]
                                          CITY OF MUSKEGON
                                        PLANNING COMMISSION
                                          REGULAR MEETING

                                                  April 12, 2007

Hearing; Case 2007-09: Request to rezone the property at 527 Young Ave., parcel 24-131-
100-0006-10, from 1-1, Light Industrial District, to 1-2, General Industrial, by Dan Posma, Dan
Hoe Excavating.

Applicant:                                  Dan Posma, Dan Hoe Excavating
Property Address/Location:                  527 Young Avenue
Request:                                    Request to rezone from I-1, Light Industrial, to 1-2, General
                                            Industrial
Present Land Use:                           Vacant parcel
Zoning:                                     I-1, General Industrial


STAFF OBSERVATIONS
1.   A site plan was approved for a truck garage on the site at the March 15, 2007 Planning
     Commission meeting.
2.   Although the City allowed the new owner to use this prope1ty last construction season for
     some concrete recycling in conjunction with a public works project, that use is not
     allowed in an I-1 zone. The applicant has since indicated that he wishes to continue to do
     concrete recycling, along with storage of aggregate on the site. Since Dan Hoe
     Excavating works on many road construction projects in the area, a site to store and
     recycling concrete from these projects is essential to their operation.
3.   Properties to the south, east, and west are zoned I-1, Light Industrial. The property to the
     north is zoned I-2, General Industrial, and is the rear of the Brunswick property. A
     rezoning for this site would be a continuation of the existing I-2 zone.
4.   The prope1ties to the south, east, and west, as well as the subject property, are included in
     the Seaway Industrial Park. It was originally thought that all properties in the park
     should be zoned I-1, however, Staff feels that the location of the prope1ty is such that
     adjacent properties would be not be adversely affected by this zone change.
5.   The City's 1997 Master Plan's Future Land Use Map indicates the subject property as
     "Industrial".
6.   A Special Land Use Permit is also required for the use intended for this propetty, and is
     the subject of the next case.
7.   Staff has received no comments on this request.




               O:\Planning\COMMON\Zoning\City Commission Items\rezone\Approvc\2007 Approvals\527 Young St.doc   5
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O:\Planning\COMMON\Zoning\Cily Commission ltems\rezone\Approve\2007 Approvals\527 Young St.doc        6
     City of Muskegon
     Planning Commission
     Case# 2007-9 & 10

                                                                                                     *      Selected Property

                                                                                                     D     Properties w/in 300 ft




                                                                                                 = Single:Fam;ly R_asiden~al
                                                                                              R· \
                                                                                              RM-2 = Med,um Dens,ty Multi.Family Res;,fanliol
                                                                                             8-2 =Convenience&. Comparison Business
                                                                                             B-4 = General Busioess
                                                                                             ~ 1 = Light Industrial
                                                                                             1·2 = General Industrial




STAFF RECOMMENDATION
Staff recommends approval of the request to rezone the subject properties from I-1, Light
Industrial, to I-2, General Industrial, because the request confonns to the goals and
recommendation of the City's 1997 Master Plan.


DELIBERATION
Criteria-based questions typically asked during a rezoning include:

I.      What, if any, identifiable conditions related to the petition have changed which justify
        the petitioned change in zoning.

2.      What are the precedents and the possible effects of precedent that might result from the
        approval or denial of the petition?


                 O:\Planning\COMMON\Zoning\City Commission Itcms\rezone\Approvc\2007 Approvals\527 Young St.doc                                 7
3.     What is the impact of the amendment on the ability of the city to provide adequate
       public services and facilities and/or programs that might reasonably be required in the
       future if the petition is approved?

4.     Does the petitioned zoning change adversely affect the environmental conditions or value
       of the surrounding property?

5.     Does the petitioned zoning change generally comply with the adopted Future Land
       Use Plan of the City?

6.     Are there any significant negative environmental impacts which would reasonably
       occur if the petitioned zoning change and resulting allowed structures were built such as:

       a.      Surface water drainage problems
       b.      Waste water disposal problems
       c.      Adverse effect on surface or subsurface water quality
       d.      The loss of valuable natural resources such as forest, wetland, historic sites,
               or wildlife areas.

7.     Is the proposed zoning change a "Spot Zone"?

       a.     Is the parcel small in size relative to its surroundings?
       b.     Would the zoning change allow uses that are inconsistent with those allowed in
              the vicinity?
       c.     Would the zoning change confer a benefit to the property owner that is not
              generally available to other properties in the area?
       d.     A spot zone is appropriate if it complies with the Master Plan.



DETERMINATION

The following motion is offered for consideration:

I move that the request to rezone the property located at 527 Young Avenue from I-1, Light
Industrial district to I-2, General Industrial district, as described in the public notice, be
recommended for (approval/denial) to the City Commission pursuant to the City of Muskegon
Zoning Ordinance, and the determination of ( compliance/lack of compliance) with the intent of
the City Master Land Use and zoning district intent.




              O:\Planning\COMMON\Zoning\City Commission ltems\rczone\Approve\2007 Approvals\527 Young St.doc   8
                             City Commission Meeting
                                Tuesday April 24, 2007



TO:            Honorable Mayor and City Commissioners

FROM:          Anthony L. Kleibecker, Director of Public Safety

DATE:          April 16, 2007

SUBJECT:       Donation of Bicycles-Muskegon County Health Department


Summary of Request:

The Director of Public Safety is requesting commission approval to donate four (4)
abandoned/recovered bicycles to the Muskegon County Health Department. This
summer the health department will be piloting a community bicycle program within the
city. The program will work as follows: A person pays a $5.00 registration fee and is
issued an identification card. When a bicycle is needed the registrant is issued a bicycle
and a lock. The registrant is responsible for returning the bicycle to the health
department, where the bicycles will be stored.

Financial Impact:



Budget Action Required:

None

Staff Recommendation:

Approval of the agreement.
Date:       4/24/07
To:         Honorable Mayor and City Commission
From:       DPW
RE:         Beach Leveling




SUMMARY OF REQUEST:

Authorize staff to enter into a three years contract with JSN Excavating to
perform the beach leveling contract for the years 2007, 2008 & 2009 at a cost
of $41,500.00, $45,000.00, $47,500.00 respectively (total cost of the contract is
$134,000.00). JSN was the lowest responsible bidder.



FINANCIAL IMPACT:

Cost $41,500 in 2007, $45,000 in 2008, and 47,500.00 in 2009



BUDGET ACTION REQUIRED:

None.



STAFF RECOMMENDATION:

Authorize staff to enter into contract with JSN
Memorandum
To:     Honorable Mayor and City Commissioners
From: DPW
Date: 4/24/07
Re:     Beach Leveling



   The Depaitment of Public Works has again solicited bid for the snow fence
removal and beach leveling. This work was previously done in house but due to the
extreme wear and tear on our equipment and the high cost of renting equipment, we
began outsourcing this activity in 2004.

   Bid packets were distributed to contractors at a pre-bid meeting held a Pere
Marquette Park. The bid is for a three year period. (Attached is a summery of bids.)

     In accordance with established policy, we are requesting permission to award
the 2007-2009 beach leveling contract to JSN Excavating.




                                                                                       1
  ------------~-----
                                              2007 Beach Leveling                                                1




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Beach leveling                     :

~~~~ ... : =7 =:~: 1!~t ~]~ .                                          : ;:~~~:~~ ·.              : ~:!:~~~~ ·.        ::~:~~~:~~
2009 ... ......   .....................   $47,000.00 .· .... _   ..   .S~?,?0.0~0~]·· ............ $5~~7~0..   ~~ .. ~$52,0.QO.OO
Commission Meeting Date: April 24, 2007



Date: April 17, 2007

From: Community and Neighborhood Services Department             I
                                                                 ' .1    b
                                                                        , ~   '



RE:    Purchase of 2265 Lincoln


SUMMARY OF REQUEST: To approve the purchase of 2265 Lincoln from the U. S.
Department of Housing and Urban Development for $1.00 through its" Good Neighbor"
program. Under the Good Neighbor program guidelines a municipality can purchase a
house for $1.00, if a property that is for sale by HUD is on the market for six months or
more.

After 2265 Lincoln is obtained by the City, the CNS Department will contract to have the
current 2- unit structure converted back to a single-family unit.

FINANCIAL IMPACT: The dollar will come from Community and Neighborhood
Services HOME program fund.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the request.
24-205-676-0006-20   2265 LINCOLN ST   07/00-STREET VIEW
Date:             April 24, 2007
To:               Honorable Mayor and City Commissioners
From:             Engineering
RE:               Consideration of Bids
                  Knollwood Ct., Beach St. to End (H-1625)


SUMMARY OF REQUEST:
Award the contract for the in Knollwood Ct. from Beach St. to End to Felco Contractors,
Inc. of Muskegon, Ml since they were the lowest responsible bidder with a bid price of
$73,385.00.


FINANCIAL IMPACT:
The construction cost of $73,385.00 plus engineering cost which is estimated at an
additional 15%.

BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
Award the contract to Felco Contractors, Inc.



COMMITTEE RECOMMENDATION:




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Date:      April 24, 2007
To:        Honorable Mayor and City Commission
From:      Water Filtration Plant
RE:        2007 Water Treatment Chemical Bids



SUMMARY OF REQUEST:

Recommend endorsement of lowest responsible bidders to supply
aluminum sulfate, sodium hypochlorite, and fluoride for the water
filtration plant

FINANCIAL IMPACT:

Annual cost of $116943.00 (based on average annual water pumped to
mains).

BUDGET ACTION REQUIRED:

None at this time. These chemicals are budgeted annually.

STAFF RECOMMENDATION:

Staff recommends the Mayor and City Commission endorse the low bids
received and the contract renewal and enter into contracts with US
Aluminate, Rowell Chemical, and Lucier Chemical for aluminum sulfate,
sodium hypochlorite, and fluoride respectively.
                                      MEMORANDUM

                                           4/16/07

TO:            M. AL-SHATEL - DEPUTY DPW

FROM:          R. VENEKLASEN

RE:            CHEMICAL BIDS - WATER FILTRATION



BACKGROUND
In 1996 the Water Filtration Plant began the process of competitively bidding water
treatment chemicals jointly with the cities of Grand Haven, Grand Rapids, Wyoming and
Holland. The groups' bids are commonly addressed as the 'West Michigan Cooperative
Purchasing Group". Recently Muskegon Heights has joined in this cooperative
purchasing group. The original bids (1996) allowed for contract renewal in two or three
year intervals.


HISTORICAL CHEMICAL COSTS
This process has worked in the City's favor as the cost for chemicals has remained low
over the years and increases have been limited and usually modest.

            ALUMINUM
YEAR        SULFATE                   CHLORINE                              FLUORIDE
 1996           $136.29                $395.00                               $138.80
 1997           $125.00                $332.00                               $129.00
 1998           $125.00                $332.00         (gaseous chlorine)    $129.00
                                                        (sodium
 1999             $125.00              $107.67         hypochlorite)         $141.50
 2000             $136.50              $107.67                               $141.50
 2001             $136.50              $107.20                               $145.00
 2002             $136.05              $107.20                               $142.30
 2003             $136.50              $107.20                               $142.30
 2004             $146.94               $98.00                               $146.30
 2005             $149.52              $145.60                               $156.30
 2006             $174.72              $138.42                               $230.00

Historical annual average chemical use in tons, based on annual average water pumpage is:
               CHEMICAL                          TONS
               Aluminum Sulfate                  210
               Sodium Hypochlorite               300
               Fluoride                          70


CHEMICAL BIDDING FOR 2007
The bidding process is performed by the City of Grand Rapids (aluminum sulfate and
fluoride) and the City of Holland (hypochlorite) purchasing departments with bidding
solicited for the respective City and the West Michigan Cooperative.
The chemical bids for the West Michigan Cooperative Purchase in 2007 are as follows:

Fluoride                              $347.00
        Lucier Chemical Industries, Ltd. (LCI)
       Jacksonville Beach, FL
Aluminum Sulfate                      $224.72
        US Aluminate
        Baltimore, MD
Sodium Hypochlorite                   $129.65
        Rowell Chemical Corp.
        Lisle, IL
Date:          April 18, 2007
To:             Honorable Mayor and City Commissioners
From:          Lee Slaughter, Assistant City Manager
RE:            Multiple Special Event Liquor License Request



SUMMARY OF REQUEST: Racquets Downtown Grill, located at 446 W. Western
Ave. is requesting an extension of their liquor license to be able to host an outside
entertainment area during their scheduled Taste of Muskegon/Main St. Car show
event, scheduled for June 21 st thru June 24th • The first license is held by Party in the
Park for the June 22 nd date only.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: None. Commission action required.

COMMITTEE RECOMMENDATION: This event was approved by the Leisure
Services Board at their April 16th meeting.
Taste of Muskegon/Main St. Car Show 6/21/2007                                                      Page I of I


Taste of Muskegon/Main St. Car Show

web format

 Event Information
                                                                               app
 event date      6/21/2007 to 6/24/2007 length                 4 days          date    3/20/2007
 location                                      start time                      crowd
                 Third & Fourth St.                            4:00 pm         size    8000
 description     Four day event featuring beverage tent, live                  work
                 music and Muskegon Main St. Car show.                         order

 comments        First time event

 Organization Information
 name        Racquets Downtown                        Ron                         QBE Insurance
                                            contact                   Insurance
             Grill                                    Madison                     Corp.
 address     900 Third St.                  phone
                                                      Day:231-750-4610 Home:
             Muskegon, MI 49440

 Event Details
 alcohol:   yes id checked: by licensed security
 services required:    Parks Dept
 streets walks:    Highway dept.

 Approvals
 engineering - $0.00         inspections - $0.oo            zoning .>c $0.oo
 treasurer - $0.00           fire x $0.00                   clerk - $0.00
 parks - $0.00               dpw - $0.00                    traffic - $0.00
 manager - $0.oo             police - $0.00                 leisure services board - $0.00
 final approval - $0.00
 estimated total cost $0.00




http://intranet/ specialEvents/viewevent. asp ?ID=28 9&print= I                                    4/18/2007
Date: April 24, 2007
To:       Honorable Mayor and City Commissioners

From: Finance Director
RE:       2007-08 Healthcare Renewal



SUMMARY OF REQUEST: It is time to renew the City's healthcare coverage for
the 2007-08 plan year. Healthcare costs for the City, like all employers, continue to
rise rapidly. Renewal rates for the City's current healthcare program came in at
$817.28/employee/month, about 10% higher than the current rate ($744.43). In
dollar terms, this translates into an annual cost increase of $218,550. Staff believes
certain adjustments must be made to bring the amount of cost increase down to a
more manageable level given our budget uncertainties and the likelihood of state
revenue sharing cuts. Accordingly, we are proposing a healthcare benefit renewal
that includes the following adjustments:

1. Increase in office co-pay visits from the current $10.00/visit to $15.00/visit
2. Increase in the co-pay for emergency room care from $25 to $50
3. Increase in the co-pay for "urgent care" (e.g. Norton Medi Center) from$10 to $25
4. Increase in the co-pay for brand name prescriptions from $25 to $30 (generic Rx
co-pays remain $15)


Fl NANCIAL IMPACT: With these adjustments, the City's costs will increase
6.20% ($130,320) - a still significant, but manageable level. Attached for your
information a more detailed analysis of the healthcare proposal.
BUDGET ACTION REQUIRED: None. With the proposed adjustments, the
healthcare cost increase will be within budget.

STAFF RECOMMENDATION: Approval of the healthcare renewal with Priority
Health incorporating the benefit changes outlined above.

COMMITTEE RECOMMENDATION: None.



9/18/97
CITY OF MUSKEGON
RENEWAL 2007
                  Benefit Level                                        Current           Renewal            Prooosed
Hospital Coverane                                                            100%              100%                100%
Office Visit/Uraent Care Cooav                                                 $10               $10             $15/$25
Prescriotion Drua Caoav w/CM                                               $15/$25           $15/$25             $15/$30
Durable Medical Eauipment                                                      80%               80%                80%
Prosthetic & Orthotics                                                         80%               80%                80%
Emerqencv Room Cooav                                                           $25               $25                $50
Ambulance Cooav                                                                $50               $50                $50
Deductible                                                                      No                No                 No

Vision Coveraqe                                                       Exam & Sunnlies everv 12 months
Premium                                                           $         744.43   $       817.28 $            787.87
Increase/Decrease                                                                             9.78%               5.83%
HMO 100% Base Rate                                $     671.10                       $       671.10     $        671.10
$10 Office Visit Cooav                            $        -                         $           -      $           -
$15 Office Visit Copay/$25 Uraent Care            $     (10.01                                          $        (10.01
$1.000/$2,000 Deductible                          $     (75.00                                          $           -
$15/$25 w/CM-MO2x Prescriotion                    $     126.34                       $        126.34
$15/$30 w/CM-MO2x Prescriotion                    $     108.57                                                    108.57
DME 20% CooaY                                     $       2.55                       $          2.55    $          2.55
DME 50% Copay                                     $         -
P & 0 20% Cooav                                   $        0.62                      $          0.62    $          0.62
P & 0 50% Cooav                                   $         -
Vision - Hiah Plan - 24 months                    $        7.52
Vision - Hiah Plan - 12 months                    $       15 04                      $         15 04    $         15.04
Ambulance $50 Conav                               $         -                        $           -      $           -
Emeraencv Room $50                                $         -                                           $           -
Emeraencv Room $25                                $        1.63                      $          1.63
EmeraencY Room $75                                $       (1.63
Total                                                             $         744.43   $        817.28    $        787.87

AnnualCostPerEmolovee                                             $       8,933.16   $      9,807.36    $       9,454.44
Annual EmoloYee Premium Co-Pav                                    $        (520.00   $       (520.00    $        (520.00
Net City Cost Per Employee                                        $       8,413.16   $      9,287.36    $       8,934.44
% Increase to City                                                                            10.39%               6.20%
Total Citv Cost {(nl 250)                                         $      2,103,290   $     2,321,840 $         2,233,610
Additional Citv Cost                                              $              -   $       218,550 $           130,320

Key Changes With Proposal:

1.   Office Co-pay for Dr. office visits goes from $10 to $15
2.   Co-pay for "urgent care" (e.g. Medi-Center) goes from $10 to $25
3.   Co-pay for Emergency Room goes from $25 to $50 (still lower than typical)
4.   Co-pay for "brand-name" Rx goes from $25 to $30
Commission Meeting Date: April 24, 2007



Date: April 16, 2007

To:   Honorable Mayor and City Commission

From: Community and Neighborhood Services Department

RE:    Resolution to sale 1122 Spring


SUMMARY OF REQUEST: To approve the attached resolution to sale the city owned
house at 1122 Spring to Mr. William Holland of 596 Howell Apt B Muskegon Heights,
MI for the price of $76,800 minus subsidy and some closing cost.

The City of Muskegon through the State tax reversion process obtained the house at 1122
Spring. The house was rehabilitated as a part of Operation R & R (Reawakening and
Resurgence) also known as " Spring Street Reawakening"

The intent of Operation R & R is to rehabilitate 10 abandoned homes in the targeted area
in one fiscal year. The house at 1122 Spring is the 8th home to be rehabilitated this year.

The Hollands will be purchasing the house at 1122 Spring as an owner- occupied
structure. Operation R & R is continuing the City's aggressive neighborhood
revitalization efforts.

FINANCIAL IMP ACT: The revenues derived from the sale will be deposited in the
City's HOME account.

BUDGET ACTION REQUIRED: To approve the sale.

COMMITTEE RECOMMENDATION: Operation R & R was approved by the Land
Reutilization Committee. The City Commission approved Operation R & Rand the
Spring St. project.

STAFF RECOMMENDATION: To approve the resolution and instruct the CNS office to
complete the sale.
                                 2007-36(b)
                       MUSKEGON CITY COMMISSION



                 RESOLUTION TO APPROVE THE SALE OF
                 CITY-OWNED PROPERTY AT 1122 SPRING


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



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



WHEREAS, the City of Muskegon is dedicated to promoting homeownership
throughout its neighborhoods;



NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approved the sale of the totally rehabilitated home for $76,800 which is located at
1122 Spring to be used as a single family owner-occupied home to William
Holland with a subsidy of $16,800 in its current rehabilitated condition.

Adopted this 24 th day of April, 2007

Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron,
      and Shepherd
Nays: None
                                    CERTIFICATION
                                      2007-36(b)


This resolution was adopted at a regular meeting of the City Commission, held on April 24,
2007. The meeting was proper! y 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


                                         C ·. "        I\\ .      . n . 1)
                                         B y ~ ~ \ --...J.µ\.;u '.~,A... :U\
                                               Ann Marie Becker, MMC
                                               City Clerk
                                                  '
                                             '~



                                    --   I
                                         I
                                             /




        I


        '
- - ~lI,_   ___,;,___   _____,;u,
Date:         April 24, 2007
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City - MDOT Agreement for the reconstruction of:
              Second, First, Jefferson & Market Streets


SUMMARY OF REQUEST:
To approve the attached contract with MDOT for the reconstruction of Second, First,
Jefferson & Market Streets within the Downtown Development (former Mall Area)
between Clay-Morris-Third & Terrace and to approve the attached resolution
authorizing the Mayor and City Clerk to sign the contract.



FINANCIAL IMPACT:
MDOT's participation is limited to the federal funds of $1,111,900 & $177,900 of state
funds for a total grant of $1,289,800.

BUDGET ACTION REQUIRED:
None at this time.

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



COMMITTEE RECOMMENDATION:
                                     RESOLUTION           2007-36(c)



RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE
RECONSTRUCTION OF SECOND, FIRST, JEFFERSON & MARKET WITHIN THE DOWNTOWN
DEVELOPMENT BETWEEN CLAY, MORRIS, THIRD & TERRACE ALONG WITH WATER,
SIDEDWALK & SEWER WORK TOGETHER WITH OTHER NECESSARY RELATED WORK AND
AUTHORIZATION FOR MAYOR STEPHEN J. WARMINGTON AND CITY CLERK ANN BECKER TO
EXECUTE SAID CONTRACT

Movedby       Commissioner Carter                             and supported by



Commissioner_--=D'---'a-'-v'---'i::..:s=---_ _ _ _ _ _that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 07-5158 between the Michigan
Department of Transportation and the City of Muskegon for the reconstruction of SECOND, FIRST,
JEFFERSON & MARKET within the City is in the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 07-5158 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.



Adopted this_--=2=-4c____,day of        Apr i 1     , 2007.



                                                  BY




                                                         Ann Marie Becker, City Clerk

                                           CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on
 Apr i 1 24 , 2007. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.

                                                               CITY OF MUSKEGON

                                                       By\      J,f,J'~\''--OvvC.. 8-vcvi(,J-,
                                                                 Ann Marie Becker, City Clerk
                                                        STATE OF MICHIGAN
JENNIFER M. GRANHOLM                     DEPARTMENT OF TRANSPORTATION                                     KIRK T. STEUDLE
         GOVERNOR                                                                                            DIRECTOR
                                                              LANSING


                                                          May 17, 2007



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

             Dear Ms. Kundinger:

             RE:    MDOT Contract Number:            07-5158
                    Control Section:                 HPSL 61407
                    Job Number:                      90137



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

                                                              Sincerely,

                                                              ~i~J
                                                              Jackie Burch
                                                              Contract Processing Specialist
                                                              Design Support Area

            Enclosure

             Cc:    M. Harbison, Design Support Area
                    Project Accounting, Financial Operations Division
                    Grand Region Engineer




                               MURRAY D. VAN WAGONER BUILDING• P.O. BOX 30050 • LANSING, MICHIGAN 48909
                                                  www.michigan.gov • (517) 373-2090
LH-LAN-0 (01/03)
(ADVANCE CONSTRUCTION CONTRACT)                                   CAB
HPSL&LJT                                           Control Section       HPSL61407
                                                   Job Number            90137
                                                   Project               HPSL 0761(012)
                                                   Federal Item No.      RR5629
                                                   CFDANo.               20.205 (Highway
                                                                         Research Planning &
                                                                         Construction)
                                                   Contract No.          07-5158


                                           PART I


        THIS CONTRACT, consisting of PART I and PART II (Standard Agreement
Provisions), is made and entered into this date of MAY 1 6 2007              by and between the
MICHIGAN DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the
"DEPARTMENT"; and the CITY OF MUSKEGON, a Michigan municipal corporation,
hereinafter referred to as the "REQUESTING PARTY"; for the purpose of fixing the rights and
obligations of the parties in agreeing to the following improvements, in the City of Muskegon,
Michigan, hereinafter referred to as the "PROJECT" and estimated in detail on EXHIBIT "I",
dated April 2, 2007, attached hereto and made a part hereof:

       PART A-FEDERAL AND STATE PARTICIPATION
       Hot mix asphalt paving work along First Street from Morris Avenue to Clay Avenue,
       along Second Street from Morris Avenue to Clay Avenue, and along Jefferson Street
       from Terrace Street to Clay Avenue; including storm sewer, grading, concrete curb and
       gutter, and pavement marking work; and all together with necessary related work.

       PART B - NO FEDERAL OR STATE PARTICIPATION
       Wate1main and sanitary sewer work within the limits as described in PART A; and all
       together with necessary related work.


       WITNESSETH:

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

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

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


12/01/05 HPSL&LJT.FOR          4/3/07          1
      WHEREAS, the reference "FHWA" in PART I and PART II refers to the United States
Department of Transportation, Federal Highway Administration; and

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

                  HIGH PRIORITY PROJECTS PROGRAM - SAFETEA LU

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

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

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

       The part of the PROJECT work that shall be performed as an advance construction
PROJECT shall meet applicable Federal requirements set forth on 23 CFR Section 630.701
through 630.711; 23 U.S.C. 115.

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

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

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

        Costs for construction engineering, construction materials testing, and inspection as may
be incurred by the DEPARTMENT and the REQUESTING PARTY, including any other costs
incurred by the DEPARTMENT as a result of this contract, will be at PROJECT COST. Costs
for construction engineering, construction materials testing, and inspection incurred by the
REQUESTING PARTY for the PART A pmtion of the PROJECT shall be limited to the lesser
of: ( 1) 100 percent of the actual costs for construction engineering, construction materials
testing, and inspection for the PART A portion of the PROJECT, or (2) 15 percent of the actual
contracted physical construction costs for the PART A pmtion of the PROJECT.




12/01/05 HPSL&LJT.FOR          4/2/07          2
        The costs incurred by the REQUESTING PARTY for construction engineering,
construction materials testing, and inspection for the PART B portion of the PROJECT,
preliminary engineering, and right-of-way are excluded from the PROJECT COST as defined by
this contract.

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

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

       4.     The REQUESTING PARTY, under the terms of this contract, shall:

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

              B.     At PROJECT COST

                     (1)     Perform or cause to be performed the street lighting work
                             necessary for the completion of the PART A portion of the
                             PROJECT.

                     (2)     Perform or cause to be performed the construction engineering,
                             construction materials testing, and inspection services necessary
                             for the completion of the PART A portion of the PROJECT.

              C.     At no cost to the PROJECT

                     (1)     Design or cause to be designed the plans for the PROJECT.

                     (2)     Perform or cause to be performed the construction engineering,
                             construction materials testing, and inspection services necessary
                             for the completion of the PART B portion of the PROJECT.

       The REQUESTING PARTY shall submit biweekly pay estimates and construction
contract modifications to the DEPARTMENT in a timely manner.

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



12/01/05 HPSL&LJT.FOR          4/2/07         3
    The method of performing the work will be indicated on the work authorization. The
REQUESTING PARTY will comply with PART II, Section IIF, when applicable.

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

             PART A
             The PART A portion of the PROJECT COST shall be met in part by contributions
             from the Federal High Priority Project Program - SAFETEA LU and the State
             Local Jobs Today Program.

             The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
             for Users (SAFETEA-LU), Subtitle G - High Priority Projects, authorizes Federal
             High Priority Project funding and establishes the maximum amount of funding for
             the PART A portion of the PROJECT and associated phases under SAFETEA-LU
             Number 320, including work performed under job number 87289, to be
             $2,320,000. It is understood that this amount is subject to obligational authority
             limitation and after applying that estimated limitation only $2,018,400 may be
             available for the PART A portion of the PROJECT and associated phases. It is
             further understood that according to SAFETEA-LU, funds for the PART A
             portion of the PROJECT and associated phases are to be allocated over a period
             of 5 years.

             Federal High Priority Project - SAFETEA LU Funds shall be applied to the
             eligible items of the PART A portion of the PROJECT COST at the established
             Federal participation ratio equal to 80 percent. There are no current available
             Federal High Priority Project - SAFETEA LU Funds for the PART A portion of
             this PROJECT .. State Local Jobs Today Grant Funds shall be applied to the
             eligible items of the PART A portion of the PROJECT COST at a participation
             ratio equal to 20 percent up to an amount not to exceed $264,600. The balance of
             the PART A portion of the PROJECT COST, after deduction of Federal Funds
             and State Funds, shall be charged to and paid by the REQUESTING PARTY in
             the manner and at the times hereinafter set forth.

             Contingent upon availability of Federal Funds and Federal approval, Federal High
             Priority Project - SAFETEA LU Funds, for future fiscal years, may be applied to
             the PART A cost incurred as advance construction in an amount such that the
             Federal High Priority Project-SAFETEA LU Funds equal a participation ratio of
             80 percent subject to obligational authority limitation.

             The State Local Jobs Today Program loan, through a separate contract, is an
             amount equivalent to the estimated Federal High Priority Project-SAFETEA LU
             Funding applicable to the PART A portion of the PROJECT that is not currently
             available. Said loan shall be used as advance construction dollars. Contingent
             upon availability of Federal Funds and Federal approval, Federal High Priority


12/01/05 HPSL&LJT.FOR         4/3/07          4
              Project - SAFETEA LU Funds, for future fiscal years, will be applied to any
              outstanding principal balance of the State Local Jobs Today Program loan for
              costs incurred on the PART A portion of this PROJECT as advance construction.

              PARTB
              The PART B portion of the PROJECT COST is not eligible for Federal or State
              participation and shall be charged to and paid 100 percent by the REQUESTING
              PARTY in the manner and at the times hereinafter set forth.

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

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

       In order to fulfill the obligations assumed by the REQUESTING PARTY under the
provisions of this contract, the REQUESTING PARTY shall make prompt payments of its share
of the PROJECT COST upon receipt of progress billings from the DEPARTMENT as herein
provided. All payments will be made within 10 days of receipt of billings from the
DEPARTMENT. Billings to the REQUESTING PARTY will be based upon the REQUESTING
PARTY'S share of the actual costs incurred less available Federal Funds, State Local Jobs Today
Loan Funds, and State Local Jobs Today Grant Funds as the PROJECT progresses.

        Failure to make such payments within 10 days of receipt of billings from the
DEPARTMENT, the DEPARTMENT is hereby authorized to withhold without further notice an
equal amount from the REQUESTING PARTY'S share of any future Act 51 monthly
allocations.

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

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

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

        9.    The REQUESTING PARTY certifies that a) it is a person under 1995 PA 71 and
is not aware of and has no reason to believe that the property is a facility as defined in MSA
13A.20101(1)(1); b) the REQUESTING PARTY further certifies that it has completed the tasks
required by MCL 324.20126 (3)(h); MSA 13A.20126(3)(h); c) it conducted a visual inspection
of property within the existing right of way on which construction is to be performed to


12/01/05 HPSL&LJT.FOR          4/3/07          5
dete1mine if any hazardous substances were present; and at sites on which historically were
located businesses that involved hazardous substances, it performed a reasonable investigation to
determine whether hazardous substances exist. This reasonable investigation should include, at a
minimum, contact with local, state and federal enviromnental agencies to determine if the site
has been identified as, or potentially as, a site containing hazardous substances; d) it did not
cause or contribute to the release or threat of release of any hazardous substance found within the
PROJECT limits.

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

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

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

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



12/01/05 HPSL&LJT.FOR            4/3/07          6
         Any and all approvals of, reviews of, and recommendations regarding contracts,
agreements, permits, plans, specifications, or documents, of any nature, or any inspections of
work by the DEPARTMENT and its agents pursuant to the terms of this contract are done to
assist the REQUESTING PARTY in meeting program guidelines in order to qualify for available
funds. Such approvals, reviews, inspections and recommendations by the DEPARTMENT and
its agents shall not relieve the REQUESTING PARTY and the local agencies, as applicable, of
their ultimate control and shall not be construed as a warranty of their propriety or that the
DEPARTMENT and its agents is assuming any liability, control or jurisdiction.

        The providing of recommendations or advice by the DEPARTMENT and its agents does
not relieve the REQUESTING PARTY and the local agencies, as applicable of their exclusive
jurisdiction of the highway and responsibility under MCL 691.1402, MSA 3.996( I 02).

     When providing approvals, reviews and recommendations under this contract, the
DEPARTMENT and its agents is performing a governmental function, as that term is defined in
MCL 691 .1401; MSA 3.996(101), which is incidental to the completion of the PROJECT.

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

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

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

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

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



12/01/05 HPSL&LJT.FOR           4/2/07          7
           A.    Maintain bodily injury and property damage insurance for the duration of
                 the PROJECT.

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

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




12/01/05 HPSL&LJT.FOR     4/2/07           8
        18.     This contract shall become binding on the parties hereto and of full force and
effect upon the signing thereof by the duly authorized officials for the parties hereto and upon
the adoption of the necessary resolution approving said contract and authorizing the signatures
thereto of the respective officials of the REQUESTING PARTY, a certified copy of which
resolution shall be attached to this contract.

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

CITY OF MUSKEGON                                   MICHIGAN DEPARTMENT
                                                   OF TRANSPORTATION




12/01/05 HPSL&LJT.FOR         4/2/07          9
                                                                                 April 2, 2007
                                         EXHIBIT I

                             CONTROL SECTION              HPSL61407
                             JOB NUMBER                   90137
                             PROJECT                      HPSL 0761(012)

                                     ESTIMATED COST
CONTRACTED WORK
                                                            PART A    PARTB TOTAL
 Estimated Cost                                             $ 866,900 $177,900 $1,044,800

FORCE ACCOUNT WORK (REQUESTING PARTY)

 Street Lighting Work                                      $ 115,000 $          0 $ 115,000
 Construction Engineering, Construction Materials Testing,
   and Inspection                                          $ 130,000 $          0 $ 130,000
 TOTAL ESTIMATED COST (FORCE ACCOUNT, ETC.)$ 245,000 $                          0 $ 245,000

GRAND TOTAL                                                 $1,111,900 $177,900 $1,289,800

                                    COST PARTICIPATION
Grand Total Estimated Cost                             $1,111,900        $177,900 $1,289,800
Less Federal High Priority Project - SAFETEA LU Funds
 (Current fiscal year)                                 $        0        $      0 $       0
Less State Local Jobs Today Grant Funds*               $ 222,400         $      0 $ 222,400
Balance                                                $ 889,500         $177,900 $1,067,400

Less State Local Jobs Today Program Loan/Federal High
 Priority Project - SAFETEA LU Funds (Advance
 construction) Future fiscal year**                         $ 889,500 $      0 $ 889,500
REQUESTING PARTY'S SHARE (Future fiscal year)               $       0 $177,900 $ 177,900

*State Local Jobs Today Grant Funds shall be applied to the eligible items of the PART A
portion of the PROJECT COST at a participation ratio equal to 20 percent up to an amount not to
exceed $264,600.

**Contingent upon availability of Federal Funds and Federal approval, Federal High Priority
Project-SAFETEA LU Funds, for future fiscal years, may be applied to the PART A cost
incurred as advance construction, in an amount such that the Federal High Priority Project-
SAFETEA LU Funds equal a participation ratio of 80 percent subject to the obligational
authority limitation.

NO DEPOSIT


12/01/05 HPSL&LJT.FOR          4/3/07         10
DOT                                                           TYPEB
                                                 BUREAU OF HIGHWAYS
                                                              03-15-93




                                PART II

                   STANDARD AGREEMENT PROVISIONS


           SECTION I   COMPLIANCE WITH REGULATIONS AND DIRECTIVES

           SECTION II PROJECT ADMINISTRATION AND SUPERVISION

           SECTION III ACCOUNTING AND BILLING

           SECTION IV MAINTENANCE AND OPERATION

           SECTION V   SPECIAL PROGRAM AND PROJECT CONDITIONS




03-15-93                           1
                                        SECTION I

                  COMPLIANCE WITH REGULATIONS AND DIRECTIVES

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

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

      1.     Engineering

             a.      FAPG (6012.1): Preliminary Engineering

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

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

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


      2.     Construction

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

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

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

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

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

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



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

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

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

      3.     Modification Or Construction Of Railroad Facilities

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

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

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

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

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

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

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

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




03-15-93                                      3
                                        SECTION II

                   PROJECT ADMINISTRATION AND SUPERVISION


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

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

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

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

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




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

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

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

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

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

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

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




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

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

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

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

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

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

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

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




03-15-93                                       6
                                       SECTION III

                             ACCOUNTING AND BILLING


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

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

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

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

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

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

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


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

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

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

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

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



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

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

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

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

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

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

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

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

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

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


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

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

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

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

B.    Payment of Contracted and DEPARTMENT Costs:

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




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

C.    General Conditions:

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

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

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



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

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




03-15-93                                   12
                                        SECTION IV

                             MAINTENANCE AND OPERATION


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

      1.     All Projects:

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

      2.     Projects Financed in Part with Federal Monies:

             a.      Sign and mark each part of the PROJECT, in accordance with the current
                     Michigan Manual of Uniform Traffic control Devices, and will not install,
                     or permit to be installed, any signs, signals or markings not in
                     conformance with the standards approved by the FHWA, pursuant to 23
                     use I09(d).
             b.     Remove, prior to completion of the PROJECT, all encroachments from the
                    roadway right-of-way within the limits of each part of the PROJECT.

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

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

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



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

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

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




03-15-93                                       14
                                         SECTIONV

                    SPECIAL PROGRAM AND PROJECT CONDITIONS

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

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

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

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

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




03-15-93                                      15
                                                 APPENDIX A
                              PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

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

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

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

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

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

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

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

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

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

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

                                                APPENDIXB

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

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

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

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

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

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

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

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

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

             TO BE INCLUDED IN ALL FINANCIAL ASSISTANCE
                 AGREEMENTS WITH LOCAL AGENCIES

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


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

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

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

           The contractor, sub recipient or subcontractor shall not
           discriminate on the basis of race, color, national origin, or sex
           in the performance of this contract. The contractor shall carry
           out applicable requirements of 49 CFR Part 26 in the award
           and administration of US DOT-assisted contracts. Failure by
           the contractor to carry out these requirements is a material
           breach of this contract, which may result in the termination of
           this contract or such other remedy as the recipient deems
           appropriate.
Date:         April 24, 2007
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City - MDOT Agreement for:
              Federal money loan to reconstruct
              Phase II of the Downtown Development


SUMMARY OF REQUEST:
To approve the attached contract with MOOT for the reconstruction of Second, First,
Jefferson & Market Streets within the Downtown Development (Former Mall Area)
and to approve the attached resolution authorizing the Mayor and City Clerk to sign
the contract.

As part of the "jobs today's program" the state made available to local governments
the ability to advance construct projects on the 2007 & 2008 transportation plan by
lending the federal allocation for those projects as long as the local governments
agreed to two conditions;

   1- The projects would be advertised and awarded a year ahead of their
       scheduled time.

   2- The local governments would have to enter into the attached agreement with
      the state which outlines the terms and conditions of the loan.

The advantage on this project is that this whole agreement is merely a paper work
matter since the city could not have spent any money against the federal funds to
accrue any interest since the actual construction will take place in the 2008/2009
fiscal years.

FINANCIAL IMPACT:
None

BUDGET ACTION REQUIRED:
None at this time. The City's share of the cost will come out of the Major Street
and water, sewer funds as shown in the 2007 budget.

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

COMMITTEE RECOMMENDATION:
                                     RESOLUTION 2007-36 ( d)


RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BE1WEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE
RECONSTRUCTION OF SECOND, FIRST, JEFFERSON & MARKET WITHIN THE DOWNTOWN
DEVELOPMENT BE1WEEN CLAY, MORRIS, THIRD & TERRACE ALONG WITH WATER,
SIDEDWALK & SEWER WORK TOGETHER WITH OTHER NECESSARY RELATED WORK AND
AUTHORIZATION FOR MAYOR STEPHEN J. WARMINGTON AND CITY CLERK ANN BECKER TO
EXECUTE SAID CONTRACT

Movedby      Commissioner Spataro                                  and supported by



Vice Mayor           __.G,,_,a,._w.,__,r.,_,o"'n"----_ _ _ _that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 07-7158 between the Michigan
Department of Transportation and the City of Muskegon for the reconstruction of SECOND, FIRST,
JEFFERSON & MARKET within the City is in the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 07-7158 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.



Adopted this---'2.._4_.___ _day of    Apr i 1        , 2007.



                                                   BY



                                                      (




                                             ATTES~\vr(\\ °\\.,\J\...,'v_ •i.sLl()/\
                                                           Ann Marie Becker, City Clerk

                                            CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on
 Apr i 1 24 , 2007. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.

                                                               (    ;ITY ~F MUSKEGON

                                                          By   "'-..,\v~ \~ ' v u q>c....JL' '
                                                                      Ann Marie Becker, City Clerk
                                                         STATE OF MICIIIGAN
 JENNIFER M. GRANHOLM                     DEPARTMENT OF TRANSPORTATION                                     KIRK T. STEUDLE
          GOVERNOR                                                                                            DIRECTOR
                                                               LANSING


                                                           May 17, 2007



             Ms. Gail Kundinger
             Clerk
             City of Muskegon
             933 Tenace Street
             P.O. Box 536
             Muskegon,MI 49443-0536

             Dear Ms. Kundinger:

             RE:     MDOT Contract Number:            07-7158
                     Control Section:                 HPSL 61407
                     Job Number:                      90137



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

                                                               Sincerely,

                                                              zy)Gvpi~
                                                              Jackie Burch
                                                              Contract Processing Specialist
                                                              Design Support Area

             Enclosure

             Cc:     M. Harbison, Design Suppo1i Area
                     Project Accounting, Financial Operations Division
                     Grand Region Engineer




                               MURRAY 0 . VAN WAGONER BUILDING• P.O. BOX 30050 • LANSING, MICHIGAN 48909
                                                   www.michigan.gov • (517) 373-2090
LH-LAN-0 (01/03)
                                                                           CAB
                                                            Control Section: HPSL 61407
                                                            Job No.:          90137
                                                            Project:          HPSL 0761(012)
                                                            Federal Item No.: RR 5629
                                                            CFDA No.:         20.205 (Highway
                                                                              Research Planning
                                                                              & Construction)
                                                            Contract No.:     07-7158



                   MICHIGAN DEPARTMENT OF TRANSPORTATION

                                    CITY OF MUSKEGON

                             LOCAL JOBS TODAY PROGRAM

                                      LOAN CONTRACT



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


WITNESSETH:

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

NOW, THEREFORE, the parties agree to the following;

Section 1.    PURPOSE

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

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

       Hot mix asphalt paving work along First Street from Morris Avenue to Clay Avenue,
       along Second Street from Morris Avenue to Clay Avenue, and along Jefferson Street
       from Terrace Street to Clay Avenue; including storm sewer, grading, concrete curb and
       gutter, and pavement marking work; and all together with necessary related work.

Section 2.    CONTRACT TERM

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

Section 3.    PROJECT FUNDING, BILLINGS, AND PAYMENTS

       The DEPARTMENT will loan the RECIPIENT $1,058,400. The RECIPIENT will pay
       interest at the rate of 4 percent annually. The loan funds will be used only for the
       PROJECT. The DEPARTMENT will retain the loan funds and make payments to
       PROJECT contractors and subcontractors on the RECIPIENT's behalf. The RECIPIENT
       directs the DEPARTMENT to convert federal advanced construction funds as soon as
       they become available. The assessment of interest will begin when the DEPARTMENT
       expends loan funds on the RECIPIENT's behalf. It is understood that the loan funds
       provided under this CONTRACT will not be sufficient to pay all PROJECT costs.

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

       If the RECIPIENT fails to make any of its required payments when they are due, the
       DEPARTMENT will immediately notify the RECIPIENT of such default and of the
       amount thereof, and if such default is not corrected by payment within ten (I 0) days, the
       DEPARTMENT is then authorized and directed to withhold from the first of such monies
       thereafter allocated by law to the RECIPIENT from the Michigan Transportation Fund,
       but only after sufficient money has been returned to the county road commission, city, or
       village to provide for the payment of contractual obligations incurred or to be incurred
       and principal and interest on notes or bonds issued or to be issued under 1941 PA 205,
       1943 PA 143, 1952 PA 175, or Section 18c or 18d of 1951 PA 51, sufficient monies to
       remove the default and to credit the RECIPIENT with payment thereof and to notify the
       RECIPIENT in writing of such fact.

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


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 Section 4.    ADMINISTRATION

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

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

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

Section 5.    COMPLIANCE ACTIVITIES

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

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

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

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

Section 6.    BREACH AND TERMINATION

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

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

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

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

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        d.     The RECIPIENT becomes insolvent or makes an assignment for the benefit of
               creditors.

        e.     Any guarantee or pledge made by the RECIPIENT that now or later secures
               payment for any or all indebtedness arising from this CONTRACT becomes
               terminated or limited for any reason (except as otherwise set forth herein or in
               1951 PA 51) without the prior written consent or agreement of the
               DEPARTMENT.

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

       In the event that the RECIPIENT fails to comply with the provisions of this
       CONTRACT, including the default provisions herein, and such noncompliance by the
       RECIPIENT continues for a period of ten (I 0) days after written notification of such
       noncompliance without an effort by the RECIPIENT to begin to diligently pursue
       remedies for such noncompliance, the DEPARTMENT will have the right, at its option
       and notwithstanding any waiver by the DEPARTMENT or any prior noncompliance, to
       demand the immediate return of the full outstanding balance of the loan financing and to
       terminate this CONTRACT.

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

Section 7.    CONTRACTUAL OBLIGATIONS

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

Section 8.    PERFORMANCE RESPONSIBILITY

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

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

Section 9.    LOCAL AGENCY COST PARTICIPATION CONTRACT

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




4/2/2007                                      4                      Loca!JobsTodayLoan vlw
 Section 10.   NOTICES

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

       Ifto the DEPARTMENT:

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

       If to the RECIPIENT:

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


Section 11.    SEVERABILITY

       If any term, covenant, condition, or provision (or any part thereof) of this CONTRACT
       or the application thereof to any party or circumstance will at any time or to any extent be
       held to be invalid or unenforceable, the remainder of this CONTRACT or the application
       of such term or provision (or remainder thereof) to paiiies or circumstances other than
       those to which it is held to be invalid or unenforceable will not be affected thereby, and
       each term, covenant, condition, and provision of this CONTRACT will be valid and will
       be enforced to the fullest extent pe1mitted by law.

Section 12.    ASSIGNMENT

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

Section 13.    ACCESS AND AUDIT

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

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

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             under this CONTRACT, the RECIPIENT will thereafter continue to maintain the
             RECORDS at least until that dispute has been finally decided and the time for all
             available challenges or appeals of that decision has expired.

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

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

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

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

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

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

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

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

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

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




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

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


Section 14.   PROHIBITION OF DISCRIMINATION

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

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

Section 15.   ASSIGNMENT OF ANTITRUST RIGHTS

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

       The RECIPIENT shall require any subcontractors to irrevocably assign their rights to
       pursue any claims for relief or causes of action for damages sustained by the State of
       Michigan or the DEPARTMENT with regard to claims based on goods or services that
       were used to meet the RECIPIENT's obligation to the DEPARTMENT under this
       CONTRACT due to any violation of15 USC, Sections I - 15, and/or 1984 PA 274, MCL
       445.771 - .788, excluding Section 4a, to the State of Michigan or the DEPARTMENT as
       a third-pmiy beneficiary.

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



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       that were used to meet the RECIPIENT's obligation to the DEPARTMENT under this
       CONTRACT.

Section 16.   AWARD CONTINGENCY

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

Section 17.   FEDERAL TAX CODE

       The RECIPIENT is a political subdivision of the State of Michigan that qualifies as a
       "government unit" within the meaning of Sections 141(b)(6)(A) and 14l(c)(l) of the
       Internal Revenue Code of 1986, as amended, hereinafter refened to as the "CODE."

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

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




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Section 18.   AWARD

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


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


CITY OF MUSKEGON




                                                  -.

MICHIGAN DEPARTMENT OF TRANSPORTATION




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                                                 APPENDIX A
                              PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

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

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

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

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

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

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

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

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

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

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

                                                APPENDIX B

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

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

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

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

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

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

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

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

6.      Incorporation of Provisions: The contractor shall include the provisions of paragraphs 1 through 6
        of every subcontract, including procurements of materials and leases of equipment, unless exempt by
        the Regulations, or directives issued pursuant thereto. The contractor shall take such action with
        respect to any subcontract or procurement as the Michigan Department of Transportation or the
        Federal Highway Administration may direct as a means of enforcing such provisions including
        sanctions for non~compliance; provided, however, that in the event a contractor becomes involved in,
        or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the
        contractor may request the Michigan Department of Transportation to enter into such litigation to
        protect the interests of the State, and, in addition, the contractor may request the United States to
        enter into such litigation to protect the interests of the United States.
Date:         April 24, 2007
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City - MDOT Agreement for the reconstruction of:
              Creston Street, Laketon to Evanston


SUMMARY OF REQUEST:
To approve the attached contract with MDOT for the reconstruction of Creston
between Laketon & Evanston and to approve the attached resolution authorizing the
Mayor and City Clerk to sign the contract.



FINANCIAL IMPACT:
MDOT's participation is limited to the federal funds of $219,559. The estimated total
construction cost is $313,000.

BUDGET ACTION REQUIRED:
None at this time.

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



COMMITTEE RECOMMENDATION:
                                      RESOLUTION 2007-36(e)



RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE
RECONSTRUCTION OF CRESTON BETWEEN LAKETON & EVANSTON TOGETHER WITH
OTHER NECESSARY RELATED WORK AND AUTHORIZATION FOR MAYOR STEPHEN J.
WARMINGTON AND CITY CLERK ANN BECKER TO EXECUTE SAID CONTRACT

Moved by     Vice Mayor Gawron                             and supported by



Commissioner      Carter                         that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 07-5131 between the Michigan
Department of Transportation and the City of Muskegon for the reconstruction of Creston between
Laketon & Evanston within the City is in the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 07-5131 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.        ·



Adopted this, _ ___._2~4.___~day of    Apr i 1   , 2007.




                                                      Ann Marie Becker, City Clerk

                                          CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on
  Apri 1 24, 2007. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.
                                                       STATE OF MICHIGAN
                                                                                                          KIRK T. STEUDLE
JENNIFER M. GRANHOLM                     DEPARTMENT OF TRANSPORTATION                                        DIRECTOR
        GOVERNOR
                                                              LANSING


                                                          May 17, 2007



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

            Dear Ms. Kundinger:

            RE:    MDOT Contract Number:            07-5131
                   Control Section:                 STUL 61407
                   Job Number:                      84358



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

                                                              Sincerely,

                                                               ~1w                      (>f,,y~J-
                                                              Jackie Burch
                                                              Contract Processing Specialist
                                                              Design Support Area

            Enclosure

            Cc:    M. Harbison, Design Support Area
                   Project Accounting, Financial Operations Division
                   Grand Region Engineer




                               MURRAY 0. VAN WAGONER BUILDING• P.O. BOX 30050 • LANSING, MICHIGAN 48909
                                                    www.michigan.gov • (517) 373-2090
LH-LAN-0 (01/03)
STP                                                              DAB
                                                   Control Section       STUL 61407
                                                   Job Number            84358
                                                   Project               STP 0761(011)
                                                   Federal Item No.      HH 4997
                                                   CFDANo.               20.205 (Highway
                                                                         Research Planning &
                                                                         Construction)
                                                   Contract No.          07-5131


                                           PART!


        THIS CONTRACT, consisting of PART I and PART II (Standard Agreement
Provisions), is made and entered into this date of      MAY 1 6 2007           , by and between
the MICHIGAN DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the
"DEPARTMENT"; and the CITY OF MUSKEGON, a Michigan municipal corporation,
hereinafter referred to as the "REQUESTING PARTY"; for the purpose of fixing the rights and
obligations of the parties in agreeing to the following improvements, in the City of Muskegon,
Michigan, hereinafter referred to as the "PROJECT" and estimated in detail on EXHIBIT "I",
dated March 29, 2007, attached hereto and made a part hereof:

       Reconstrnction work along Creston Street from Laketon Avenue to Evanston Avenue;
       including pavement removal, storm sewer, drainage structures, hot mix asphalt paving,
       and pavement marking work; and all together with necessary related work.


       WITNESSETH:

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

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

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

                        SURF ACE TRANSPORTATION PROGRAM




09/06/90 STP.FOR 3/29/07                      1
        WHEREAS, the patties hereto have reached an understanding with each other regarding
the pe1formance of the PROJECT work and desire to set forth this understanding in the form of a
written contract.

        NOW, THEREFORE, in consideration of the premises and of the mutual unde1takings of
the parties and in conformity with applicable law, it is agreed:

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

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

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

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

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

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

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

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

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

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




09/06/90 STP.FOR 3/29/07                     2
        The REQUESTING PARTY will furnish the DEPARTMENT proposed timing
sequences for trnnkline signals that, if any, are being made part of the improvement. No timing
adjustments shall be made by the REQUESTING PARTY at any trunkline intersection, without
prior issuances by the DEPARTMENT of Standard Traffic Signal Timing Permits.

        5.      The PROJECT COST shall be met in part by contributions by the Federal
Government. Under the terms of this contract, Federal Surface Transportation Funds shall be
applied to the eligible items of the PROJECT COST at the established Federal participation ratio
equal to 81.85 percent up to an amount not to exceed $219,559. The balance of the PROJECT
COST, after deduction of Federal Funds, shall be charged to and paid by the REQUESTING
PARTY in the manner and at the times hereinafter set f01th.

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

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

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

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

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

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

        9.     The REQUESTING PARTY certifies that a) it is a person under 1995 PA 71 and
is not aware of and has no reason to believe that the property is a facility as defined in MSA
13A.20101(1)(1); b) the REQUESTING PARTY further certifies that it has completed the tasks
required by MCL 324.20126 (3)(h); MSA 13A.20126(3)(h); c) it conducted a visual inspection
of property within the existing right of way on which construction is to be performed to
determine if any hazardous substances were present; and at sites on which historically were
located businesses that involved hazardous substances, it performed a reasonable investigation to
determine whether hazardous substances exist. This reasonable investigation should include, at a


09/06/90 SIP.FOR 3/29/07                       3
minimum, contact with local, state and federal environmental agencies to determine if the site
has been identified as, or potentially as, a site containing hazardous substances; d) it did not
cause or contribute to the release or threat of release of any hazardous substance found within the
PROJECT limits.

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

         I 0.   If, subsequent to execution of this contract, previously unknown hazardous
substances are discovered within the PROJECT limits, which require environmental remediation
pursuant to either state or federal law, the REQUESTING PARTY, in addition to reporting that
fact to the Department of Environmental Quality, shall immediately notify the DEPARTMENT,
both orally and in writing of such discovery. The DEPARTMENT shall consult with the
REQUESTING PARTY to determine if it is willing to pay for the cost of remediation and, with
the FHWA, to determine the eligibility, for reimbursement, of the remediation costs. The
REQUESTING PARTY shall be charged for and shall pay all costs associated with such
remediation, including all delay costs of the contractor for the PROJECT, in the event that
remediation and delay costs are not deemed eligible by the FHWA. If the REQUESTING
PARTY refuses to participate in the cost of remediation, the DEPARTMENT shall terminate the
PROJECT. The parties agree that any costs or damages that the DEPARTMENT incurs as a
result of such termination shall be considered a PROJECT COST.

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

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

      Any and all approvals of, reviews of, and recommendations regarding contracts,
agreements, permits, plans, specifications, or documents, of any nature, or any inspections of
work by the DEPARTMENT or its agents pursuant to the terms of this contract are done to assist


09/06/90 STP.FOR 3/29/07                        4
the REQUESTING PARTY in meeting program guidelines in order to qualify for available
funds. Such approvals, reviews, inspections and recommendations by the DEPARTMENT or its
agents shall not relieve the REQUESTING PARTY and the local agencies, as applicable, of their
ultimate control and shall not be construed as a wan-anty of their propriety or that the
DEPARTMENT or its agents is assuming any liability, control or jurisdiction.

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

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

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

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

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

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

       17.     The DEPARTMENT shall require the contractor who is awarded the contract for
the construction of the PROJECT to provide insurance in the amounts specified and in
accordance with the DEPARTMENT'S current Standard Specifications for Construction and to:

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



09/06/90 STP.FOR 3/29/07                        5
            B.     Provide owner's protective liability insurance naming as insureds the State
                   of Michigan, the Michigan State Transportation Commission, the
                   DEPARTMENT and its officials, agents and employees, the
                   REQUESTING PARTY and any other county, county road commission,
                   or municipality in whose jurisdiction the PROJECT is located, and their
                   employees, for the duration of the PROJECT and to provide, upon request,
                   copies of certificates of insurance to the insureds. It is understood that the
                   DEPARTMENT does not assume jurisdiction of the highway described as
                   the PROJECT as a result of being named as an insured on the owner's
                   protective liability insurance policy.

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




09/06/90 STP.FOR 3/29/07                     6
        18.        This contract shall become binding on the parties hereto and of full force and
effect upon the signing thereof by the duly authorized officials for the parties hereto and upon the
adoption of the necessary resolutions approving said contract and authorizing the signatures
thereto of the respective officials of the REQUESTING PARTY, a certified copy of which
resolution shall be attached to this contract.

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

CITY OF MUSKEGON                                                  MICHIGAN DEPARTMENT
                                                                  OF TRANSPORTATION


By     -                              --- .   ·,-'=:""-   ~                 -~-L
 Tit~:     17Jiry;
      ,,   .   .   .   .   .   ·,.   __)

Bv\i~~¼~~
   Citf Clerlf
 Title:
               fb,e_c\lt,




09/06/90 STP.FOR 3/29/07                                      7
                                                                             March 29, 2007


                                        EXHIBIT I

                            CONTROL SECTION             STOL 61407
                            JOB NUMBER                  84358
                            PROJECT                     STP 0761(011)


                                    ESTIMATED COST

CONTRACTED WORK

       Estimated Cost                                                         $271,900




                                 COST PARTICIPATION

              GRAND TOT AL ESTIMATED COST                                     $271,900
              Less Federal Funds*                                             $219,559
              BALANCE (REQUESTING PARTY'S SHARE)                              $ 52,341


*Federal Funds shall be applied to the eligible items of the PROJECT COST at a participation
ratio equal to 81.85 percent up to an amount not to exceed $219,559.

NO DEPOSIT




09/06/90 STP.FOR 3/29/07                     8
DOT                                                           TYPEB
                                                 BUREAU OF HIGHWAYS
                                                              03-15-93




                                PART II

                   ST AND ARD AGREEMENT PROVISIONS


           SECTION I   COMPLIANCE WITH REGULATIONS AND DIRECTIVES

           SECTION II PROJECT ADMINISTRATION AND SUPERVISION

           SECTION III ACCOUNTING AND BILLING

           SECTION IV MAINTENANCE AND OPERATION

           SECTION V   SPECIAL PROGRAM AND PROJECT CONDITIONS




03-15-93                           l
                                        SECTION I

                  COMPLIANCE WITH REGULATIONS AND DIRECTIVES

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

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

      1.     Engineering

             a.      FAPG (6012.1): Preliminary Engineering

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

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

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


      2.     Construction

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

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

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

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

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

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



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

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

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

      3.     Modification Or Construction Of Railroad Facilities

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

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

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

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

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

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

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

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




03-15-93                                      3
                                        SECTION II

                   PROJECT ADMINISTRATION AND SUPERVISION


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

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

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

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

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




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

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

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

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

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

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

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




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

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

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

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

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

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

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

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




03-15-93                                      6
                                       SECTION III

                             ACCOUNTING AND BILLING


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

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

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

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

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

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

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


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

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

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

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

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



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

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

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

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

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

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

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

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

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

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


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

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

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

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

B.    Payment of Contracted and DEPARTMENT Costs:

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




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

C.     General Conditions:

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

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

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



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

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




03-15-93                                   12
                                        SECTION IV

                             MAINTENANCE AND OPERATION


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

      1.     All Projects:

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

      2.     Projects Financed in Part with Federal Monies:

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

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

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

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

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



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

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

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




03-15-93                                       14
                                        SECTIONV

                   SPECIAL PROGRAM AND PROJECT CONDITIONS

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

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

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

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

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




03-15-93                                      15
                                                 APPENDIX A
                              PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

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

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

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

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

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

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

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

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

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

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

                                                 APPENDIXB

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

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

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

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

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

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

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

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

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

             TO BE INCLUDED IN ALL FINANCIAL ASSISTANCE
                 AGREEMENTS WITH LOCAL AGENCIES

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


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

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

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

           The contractor, sub recipient or subcontractor shall not
           discriminate on the basis of race, color, national origin, or sex
           in the performance of this contract. The contractor shall carry
           out applicable requirements of 49 CFR Part 26 in the award
           and administration of US DOT-assisted contracts. Failure by
           the contractor to carry out these requirements is a material
           breach of this contract, which may result in the termination of
           this contract or such other remedy as the recipient deems
           appropriate.
 DATE:              April 13, 2007

 TO:                Honorable Mayor and Commissioners

 FROM:              Mark Kincaid, Deputy Director of Public Safety

 RE:                Concurrence with the Housing Board of Appeals Notice and Order
                    to Demolish. Dangerous Building Case#: EN-070007


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
1885 Mclllwraith - is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN-070007 - 1885 Mcilwraith

Location and ownership: This structure is located on Mcilwraith between E.
Laketon and Holbrook St and is owned by Federal Home Loan Mortgage, 8250
Jones Branch Dr. Mailstop A61, McLean, VA 22102

Staff Correspondence: A dangerous building inspection was conducted on
01/10/07. The Notice and Order to Repair was issued on 01 /11 /07. The HBA on
03/01 /07 declared the structure dangerous, substandard and a public nuisance.

Owner Contact: Troy Haltom representing Century 21 Lumbertown and Fannie
Mae arrived at the HBA meeting late after the structure had been declared
dangerous, substandard and a public nuisance. A phone call was received from
Mr. Haltom 04/12/07 stating the mortgage company had decided not to
rehabilitate the home.

Financial Impact: General Funds

Budget action required: None

State Equalized value:                $4,800

Estimated cost to repair: $60,000

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




O:\lnspections\Grabinski_Lorraine\Word\CC MEETINGS\AGENDA - 1885 Mcilwraith.doc   page I of I
                    INSPECTION SUMMARY

                       1885 Mcillwraith

This is a single family wood frame structure. This building
experienced a fire in December 2005 that caused extensive damage
to basement and first floor framing system. There have been no
attempts to make repairs to this building.
7/14/2006   7/14/2006




7/14/2006   7/14/2006
                                                                                                                     Page I of l



 Potter, Linda

  From:     Kincaid, Mark
  Sent:     Friday, April 20, 2007 8:59 AM
  To:       Potter, Linda
  Cc:       LaBrenz, Don; Smith, Carmen
  Subject: 1178 Chestnut

Good Morning Linda,

I have had contact with the mortgage holder for 1178 Chestnut. He has requested that we give him some time to effect repairs.
Evidently he has just learned of the houses' condition and wants to do something about it. Could we do like last month and put in
a staff recommendation to remove it from the agenda?

Thanks,
Mark




4/20/2007
DATE:              April 13, 2007

TO:                Honorable Mayor and Commissioners

FROM:              Mark Kincaid, Deputy Director of Public Safety

RE:                Concurrence with the Housing Board of Appeals Notice and Order
                   to Demolish. Dangerous Building Case#: EN-060464


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
1178 Chestnut Area -13 is unsafe, substandard, a public nuisance and that it
be demolished within thirty (30) days. It is further requested that administration
be directed to obtain bids for the demolition of the structure and that the Mayor
and City Clerk be authorized and directed to execute a contract for demolition
with the lowest responsible bidder.

Case# & Project Address: # EN-070007 - 1178 Chestnut

Location and ownership: This structure is located on McLaughlin between
Chestnut and Scott St and is owned by Mark James, 2538 Jameswood Ct.,
Holland, Ml 49424.

Staff Correspondence: A dangerous building inspection was conducted on
12/08/06. The Notice and Order to Repair was issued on 12/19/06. The HBA on
02/01 /07 declared the structure dangerous, substandard and a public nuisance.

Owner Contact: No one was present to represent case for the HBA meeting
dated 02/01/07. No permits have been issued, no inspections scheduled and no
owner contact.

Financial Impact: General Funds

Budget action required: None

State Equalized value:               $12,900

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

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




O:\Inspections\Grabinski_Lorrainc\Word\CC MEETINGS\AGENDA- 1178 Chestnut.doc   page I of I
                                    CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, Ml 49443 (231) 724-6715
                       DANGEROUS BUILDING INSPECTION
                                 REPORT
                                    Monday, December 11, 2006

Enforcement# EN060464           Property Address 1178 CHESTNUT ST
Parcel #24-205-081-0005-10               Owner JAM ES MARK

Inspector: Henry Faltinowski

Date completed: 12/08/2006

DEFICENCIES:

 Uncorrected
1. Repair/replace siding on both home and garage.
2. Repair/replace to code roof covering on home and garage - soffit -fascia.
3. Replace broken out doors and windows on home and garage.
4. Replace landings at back exterior to code MRC 2003.
5. Repair damaged foundation walls.
6. Interior requested.



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

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


Henry Faltinowski, Building Inspector                      Date
                     INSPECTION SUMMARY

                         1178 Chestnut

This is a single story wood frame single family dwelling. This
building has numerous broken windows. The exterior of dwelling
is exposed to weather because of missing and damaged siding, the
interior walls appear to be damaged from vandalism. Currently the
roof system appears to be allowing inclement weather to enter the
structure this building is in a general state of disrepair.
2006 12 8
DATE:              April 13, 2007

TO:                Honorable Mayor and Commissioners

FROM:              Mark Kincaid, Deputy Director of Public Safety

RE:                Concurrence with the Housing Board of Appeals Notice and Order
                   to Demolish. Dangerous Building Case#: EN-060420


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
460 Houston - Area 1O is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN-060420 - 460 Houston
                                                                              th
Location and ownership: This structure is located on Houston between 6 and
7th Streets and is owned by Katherine Earnest on land contract.

Staff Correspondence: A dangerous building inspection was conducted on
10/06/06. The Notice and Order to Repair was issued on 10/12/06. The HBA on
12/07/06 declared the structure dangerous, substandard and a public nuisance.

Owner Contact: No one was present to represent case at the HBA meeting
dated 12/07/06. No permits have been issued, no inspections scheduled and no
owner contact.

Financial Impact: General Funds

Budget action required: None

State Equalized value:               $18,200

Estimated cost to repair: $30,000

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




O:\lnspections\Grabinski_Lorraine\Word\CC MEETINGS\AGENDA - 460 Houston.doc   page 1 of I
                                   CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, Ml 49443 (231) 724-6715
                       DANGEROUS BUILDING INSPECTION
                                 REPORT
                                     Monday, October 9, 2006

Enforcement# EN060420           Property Address 460 HOUSTON AVE
Parcel #24-205-347-0008-10     Owner EARNEST KATHERINE

Inspector: Henry Faltinowski

Date completed: 10/06/2006

DEFICENCIES:

 Uncorrected
1. House to be rewired to 2003 MRC.
2. Service to be replaced to 2003 MRC.
3. Smoke alarms to be installed to 2003 MRC.
Electricity was called in for a disconnect on 10/6/06.

4. Replace all floor joists beams to MRC 2003 Code.
5. Cracked floor joists replace.
6. Joist sections on flat plates danger of collapse.
7. Construction without permits. (Drywall,framing).
8. Replace - sister - cracked rafters.
9. Roof covering not installed to code shingled over shakes - no new
sheathing.
10. Back door has 4 inch gap at bottom improper landing.
11. Configure water service/distribution piped properly.
12. Need T & P drain line at water heater.
13. Must have union disconnect at furnace.
14. Inspect & Certify furnace.
15. Support water distribution to code.
16. Support drain lines insure they are installed to code.
17. Inspect & certify chimney.
18. Shower faucet to be scald free design.
19. Clean ductwork- Insure they are installed properly.
20. Wash machine to be trapped.
21. Insure supply air and return air provided to all habital spaces.
22. Inspect & certify fireplace (wood).
23. Vent drainage system to code.
24. Hose spigots to have vacuum breakers.
25. Pressure test gas lines.
26. Insure furnace is appropriate for this house.
27. All plumbing & mechanical to conform with 2003 Michigan Plumbing &
Mechanical Codes.

 Not included in this report is 26 items by Housing Inspector dated
10/10/06.



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

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


Henry Faltinowski, Building Inspector                      Date
                     INSPECTION SUMMARY

                          460 Houston

This is a wood frame single family dwelling. Some repairs appear
to have commenced, however many of those repairs have been
done incorrectly and no permits have been applied for or issued.
This building is currently abandoned and was boarded up by the
Inspections Department in December 2006.
DATE:              April 13, 2007

TO:                Honorable Mayor and Commissioners

FROM:              Mark Kincaid, Deputy Director of Public Safety

RE:                Concurrence with the Housing Board of Appeals Notice and Order
                   to Demolish. Dangerous Building Case#: EN-060390


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
369 Isabella Area -11 is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN-060390 - 369 Isabella

Location and ownership: This structure is located on Isabella between Ambrosia
and Sophia Streets and is owned by REO Acceptance Corp Ltd, P.O. Box 1711,
West Palm Beach, FL 33402.

Staff Correspondence: A dangerous building inspection was conducted on
09/01 /06. The Notice and Order to Repair was issued on 09/14/06. The HBA on
11 /02/06 tabled case until December 2006. An interior inspection was conducted
11 /07/06. The case came back before the HBA 12/07/06 and was declared
dangerous, substandard and a public nuisance.

Owner Contact: Realtor, Barb Delello, was present to represent case with a
potential buyer and stated that an offer had been accepted. No one was present
to represent case at the HBA meeting dated 12/07/06

Financial Impact: General Funds

Budget action required: None

State Equalized value:                $18,200

Estimated cost to repair: $30,000

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




O:\Inspections\Grabinski_Lorraine\Word\CC MEETINGS\AGENDA - 369 Isabella.doc   page I of 1
                           City of Muskegon
              933 Terrace St., P.O. Box 536, Muskegon, Ml 49443
                            (231) 724-6715

                                 Tuesday, November 14, 2006

       DANGEROUS BUILDING INTERIOR INSPECTION REPORT

Property Address: 369 E ISABELLA AVE         Parcel# 24-205-249-0010-00

Owner: DLJ MORTGAGE CAPITAL INC

Inspection Type:   DB Interior Inspection    Inspector: Herny Faltinowski

Date completed: 11/0712006

DEFICIENCIES:

 Uncorrected - Exterior
1. Yard broken down fence- large amounts of debris left in yard.
2. Home partially boarded.
3. Garage missing siding - exposed to weather.
4. Rotting fascia on home.
5. Interior inspection required by trade inspectors.
6. Rotting windowsills.
7. Roof covering and drip edge need repair-replace.
8. Back shed - collapsed.

 Uncorrected Interior
1. Re-frame all walls interior to code. Headers and proper jacks needed at opening.
2., Header porch windows on beams.
3. Beam needed for garage rafters sagging.
4. Re-support stairs - in basement with proper columns, trimmers & header.
5. Re-support main beam & columns (Beam basement)
6. Re-support rafters to code.
7. Rebuild back porch to code.
8. Electric service to be replaced to current code.
9. Smoke alarms to be installed to current code.
10. House to be rewired to current code.
11. Abate presumed asbestos.
12. Hose spigots 1- needs a handle, 1 -need vacuum breaker.
13. Provide bathroom facility.
14. Inspect & insure water & drainage work.
15. Perform gas pressure test - hookup.
16. Gas for water heater, furnace disconnect (gas).
17. Be outside furnace - inspect & certify.
18. Water heater & furnace - provide filter rack for return air for furnace.
19. Inspect chimney.
20. Cap off unused drain lines.
21. Insure supply air and return air to habitable spaces.
22. All - work to conform with 2003 Michigan plumbing & Mechanical to code.



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




HENRY FALTINOWSKI BUILDING INSPECTOR                      DATE
                     INSPECTION SUMMARY

                          369 Isabella

This is a single family wood frame structure. This building is
currently vacant and uninhabitable. Some repairs and renovations
appear to have been started without permits or inspections.
However none of this work was done correctly. The list of
violations is lengthy and extensive. The Inspection Department
has received numerous neighborhood complaints.
9/8/2006   9/8/2006




9/8/2006   9/8/2006
                         EASEMENT FOR UNDERGROUND ELECTRIC LINE
Form 468 9-2006
Tax Code: 616029 W.0.#: 06668965

Parties: "Owner" is _,C"'i,.,ty_,o"'f...,_M'-'-u""s"'"k'-"e.,,g""o'"'n_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Owner's address is 933 Terrace St., Muskegon, Ml 49443

"Consumers" is CONSUMERS ENERGY COMPANY, a Michigan corporation. Consumers' address is
One Energy Plaza, Jackson, Michigan 49201.

Grant of Easement: For good and valuable consideration, Owner grants Consumers a permanent
easement for underground electric line in, on, under, and across a portion of "Owner's Land," called the
"Easement Area." Owner's Land is in the City of Muskegon, County of Muskegon, and State of Michigan
and is described in the attached Exhibit A. The Easement Area is within Owner's Land and is described
in the attached Exhibit B.

Purpose: The purpose of the easement is to grant Consumers the right to enter Owner's Land to
construct, operate, inspect, maintain, replace, improve, remove, and enlarge an underground electric
line in the Easement Area. The underground electric lines may consist of underground cables (including
fiber-optic cable), conduits, wires, conductors, subsurface junction vaults, surface-mounted transformers
and enclosures, and other equipment for transmitting and distributing electrical energy and
communications signals.

Trees and Other Vegetation: Consumers shall have the right from time to time hereafter to enter
Owner's Land to trim, cut down, and otherwise remove and control any trees, brush, roots, and other
vegetation, whether inside or outside the Easement Area, that Consumers believes may interfere with
the construction, operation, and maintenance of the underground electric line or lateral lines.

Buildings/Structures: Owner shall not: 1) locate any buildings, structures, septic systems, drain fields,
ponds, or swimming pools within the Easement Area, 2) plant any trees within the Easement Area, or 3)
change the ground elevation within the Easement Area. If Owner violates this provision, Owner shall
reimburse Consumers for any expenses Consumers incurs correcting the violation. If Consumers
corrects the violation by relocating the electric line or lateral line on Owner's Land, this easement shall
automatically apply to such relocated line.

Exercise of Easement: Consumers' nonuse or limited use of this Easement shall not preclude
Consumers' later use of this Easement to its full extent.

Successors: This easement shall bind and benefit Owner's and Consumers' respective heirs,
successors, lessees, licensees, and assigns.
Date:




                                                   ·g    ·     azade, City M;,1 ager
                                                   A•/<>n.3
                                                             ' ( f'),J   'Y · ,2 '(·Cl


                                          Acknowledgment

The foregoing instrument was acknowledged before me in       0 "-..v<; lCl.2010..,
                                                                            J
                                                                                         County, Michigan,

on   'f"-Q c, \   '1--\.\, L007      by BP@ft Mazade, City Manager of the City of Muskegon, on
                      Date              B,·y,,1
Behalf of the city.




                                                                                      Notary Public
                                                      Sj\.N        ,)V

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