City Commission Packet 06-28-2016

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    CITY OF MUSKEGON
     CITY COMMISSION MEETING
                          JUNE 28, 2016
    CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                AGENDA
□   CALL TO ORDER:
□   PRAYER:
□   PLEDGE OF ALLEGIANCE:
□   ROLL CALL:
□   HONORS AND AWARDS:
□   INTRODUCTIONS/PRESENTATION:
□   CITY MANAGER’S REPORT:
□   CONSENT AGENDA:
    A. Approval of Minutes City Clerk
    B. Gaming License Request from Muskegon Polish Festival            City Clerk
    C. Approval of Resolution Regarding Precinct Boundary Adjustments
       City Clerk
    D. Community Relations Committee Recommendation City Clerk
    E. Interview Room Audio & Visual Recording Device Public Safety
    F. Backhoe Purchase DPW/Equipment
    G. Fuel System Upgrade DPW/Equipment
    H. New Plow Truck         DPW/Equipment
    I. Plow Truck Build       DPW/Equipment
    J. A & E Barbecue Concession Contract for City of Muskegon Parks
       Department of Public Works
    K. Vinyl Siding Supplier Contract for Fiscal Year 2016       Community and
       Neighborhood Services
    L. Vinyl Siding Installer Contracts for Fiscal Year 2016     Community and
       Neighborhood Services
    M. Sewer Rate Adjustment Finance Director
    N. Reese Field Management Agreement               Department of Public Works

                                        Page 1 of 2
□   PUBLIC HEARINGS:
       A. Public Hearing – Request to Create a New Neighborhood Enterprise
          Zone District at 285 W. Western Avenue Planning and Economic
          Development
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
       A. Concurrence with the Housing Board of Appeals Notice and Order to
          Demolish     Public Safety
           330 Washington
           1592 5th Street
           1761 Getty Street
           1363 7th Street
           1524 Hoyt Street
       B. Skate Park Fund Agreement                        City Manager
       C. LC Walker Arena Lease Agreement                            City Manager
□ ANY OTHER BUSINESS:
□      PUBLIC PARTICIPATION:
►      Reminder: Individuals who would like to address the City Commission shall do the following:
►      Fill out a request to speak form attached to the agenda or located in the back of the room.
►      Submit the form to the City Clerk.
►      Be recognized by the Chair.
►      Step forward to the microphone.
►      State name and address.
►      Limit of 3 minutes to address the Commission.
►      (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1- TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.




                                                       Page 2 of 2
Memorandum
To:    Mayor and Commissioners

From: Frank Peterson

Re:    City Commission Meeting

Date: June 23, 2016

Here is a quick outline of the items on next week’s agenda:

1.     Under the consent agenda, we are asking the Commission for approval of the following:
       a. Last meeting’s minutes.
       b. A gaming license for the Muskegon Polish Festival.
       c. Adjusting a precinct boundary to accommodate the new houses at Terrace Point
          Landing. They will vote at City Hall.
       d. Approval of the purchase of new audio and visual recording devices for the interview
          room to better document our police interview efforts.
       e. The purchase of a backhoe for the Department of Public Works
       f. The purchase of an upgrade to our current fuel system at the Public Services Building.
       g. Approval of the purchase of a new plow truck chassis. One was previously approved
          earlier this year. This will leave us with two new plow trucks for the upcoming
          season.
       h. Approval of a contract to build the two plow trucks – including the installation of the
          dump box and plowing equipment.
       i. Approval of a concession agreement with A&E Barbeque for Pere Marquette Park.
          There are requirements that they stay a certain distance away from The Deck
          restaurant, but still allows them access to serve food to the volleyball courts north of
          the bathhouse.
       j. Approval of our vinyl siding supplier for the coming year – to service the CNS
          Department.
       k. Approval of our vinyl siding installer for the coming year – to service the CNS
          Department.
       l. Approval of an agreement to manage Reese Field. The management group has
          agreed to provide Muskegon Residents with free access to the clinics and programs
          that they offer.
2.     We are holding a public hearing for the creation of a new Neighborhood Enterprise Zone
       District at 285 West Western Avenue. The zone is expected to help facilitate the
       redevelopment of the Highpoint Flats project. At this time, staff is only asking for the
       creation of the district, and not the issuance of any certificates. Staff is still
       analyzing/reviewing the request from Parkland Properties, and will be ready to make a
       recommendation in terms of length of the NEZ Certificates in the coming weeks.
3.     Under New Business, we have the following items:
           a. Concurrence with the HBA’s decision to demolish 5 structures.
           b. Authorization of the sewer rate adjustment included in the 2016-17 budget. This
               will set the multiplier for of the County billing rate at 1.49. No water rate
               adjustment is requested.
           c. Approval of the management agreement with the Community Foundation
               regarding collecting funds for the replacement of the skate park at Seyferth Park.
               We have budgeted $10,000 at this time to initially establish the fund.
           d. Authorization of a development agreement and subsequent lease with the West
               Michigan Rum Company to develop and occupy space in the LC Walker Arena. The
               tenant would operate a restaurant and distillery out of facility. If approved, the
               next steps would be for the city and tenant to design the improvements and take
               bids on the construction. If the construction is higher than estimated or feasible,
               we have the opportunity to reevaluate and/or cancel the lease. The goal here is
               to take otherwise unused /extra space at the LC Walker arena and generate
               additional capital for the facility’s operations. We are expecting a return on our
               $300,000-$350,000 investment within 7-8 years, based on the proposed rental
               rate. We are still in the due diligence period and have a few variables to work out,
               but overall, the concept is a positive for the LC Walker and all of downtown
               Muskegon.

If there are questions on any agenda items, please try to let staff know in advance, and we will
be sure to have the appropriate data/research available at the meeting.
Date:     June 21, 2016
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Meisch, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the June 10, Special City
Commission Meeting, June 13, 2016 Worksession Meeting and the June 14,
2016 Regular City Commission Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                                       City of Muskegon
                               Special City Commission Meeting
                                         June 10, 2016
                                      Central Fire Station
                                           12:30 PM

                                          MINUTES
2016-47
Present: Commissioners German (left at 3:45 p.m.), Hood, Gawron, Johnson, Turnquist,
Rinsema-Sybenga, and Warren.
Absent: None.

Action Plan
Lew Bender facilitated the meeting. Commissioners discussed certain items in the action plan
adopted earlier this year. Items included in the discussion is as follows:

Potential Revenue Sources:

   1. Rental space at City Hall. Must be a company that fits well in City Hall with similar
      hours as the city. Space must be consolidated to create more space to rent.

   2. Provide services to other agencies. Consideration of a metro authority or fire authority is
      a possibility.

   3. Raise revenues through taxes and maintain/provide serves.

   4. Pension millage for police and fire.

   5. Vacation rentals of $500 for cleaning of the beach. 100% of the funds would go back
      into the parks.

   6. Raise the fee at the Farmers Market.

   7. Selling naming rights at the LC Walker Arena

   8. Add recycling depot centers, keep it at 3 mils, and add the deficit of the cost of trash
      pick-up to water bill.

   9. Special Assessment – streetlighting.

   10. Bond Sale for $5 million

City Manager Frank Peterson, provided more detailed information on his vision of the proposed
revenue streams. Commissioners asked questions and voiced their opinion. Some of the proposed
ideas to raise revenue will be brought to future Commission Meetings to be considered by
Commissioners.
Adjournment.
Adjourned at 4:20 p.m.



                         ____________________________
                          Ann Marie Meisch, MMC
                                  City Clerk
                                       City of Muskegon
                                 City Commission Worksession
                                         June 13, 2016
                                      Smith Ryerson Park
                                            5:30 PM

                                          MINUTES
2016-47.5
Present: Commissioners German, Hood, Gawron, Johnson, Turnquist, Rinsema-Sybenga, and
Warren.
Absent: None.

Budget Review.
The proposed 2016/2017 budget was reviewed department by department. Commissioners asked
for clarification on some items and explanations were given. A public hearing on the budget will
be held on June 14, 2016.

The City Manager presented several revenue sources the city could implement. The possibilities
include:

Rental space at City Hall
Providing additional services to other agencies for a fee
Creating a Public Safety Authority, Parks Authority, or Building Authority
Parking fees at Pere Marquette Park and/or Kruse Park for non-residents
Development of a temporary food and retail event at Pere Marquette Park
Registration of vacation rentals with fees dedicated to Pere Marquette Park
Increase fees in 2017 for Farmers Market
Allowing the sale of alcohol in support of Farmers Market projects
Selling naming rights at the LC Walker Arena
Consider changing the way certain services are paid for
Consider increasing the income tax and reducing the property tax
Consider a special assessment for street lighting
Bond sale
Reorganization of workforce
Consider updating and readopting fiscal policies as ordinances vs. resolutions
Sewer rate increase

Additional discussion took place about a potential streetlight assessment.

The Commission will take the suggestions into consideration for discussion at a future meeting.

Adjournment.
Motion by Hood, seconded by Johnson to adjourn the meeting.



                                                            ____________________________
                                                             Ann Marie Meisch, MMC
                                                                     City Clerk
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                          JUNE 14, 2016
    CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                   MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, June 14, 2016.
Pastor Marcy Miller, Crestwood United Methodist Church, opened the meeting
with prayer, after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Eric Hood, Commissioners Ken
Johnson, Debra Warren, Willie German, Jr., Dan Rinsema-Sybenga, and Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2016-48     INTRODUCTIONS/PRESENTATIONS:
      A. Recognition of Spring 2016 Citizen’s Academy Graduates Public
         Safety
Mayor, Stephen J. Gawron, read the resolution and thanked the 2016 Citizen’s
Police Academy for their faithful attendance, completion, and graduation from
the ten week academy.
2016-49     CONSENT AGENDA:
      A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the May 24, 2016 Regular City
Commission Meeting.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval of the minutes.
      B. Gaming License Request from Lakeshore Museum Center City Clerk
SUMMARY OF REQUEST: The Lakeshore Museum Center is requesting a resolution
recognizing them as a non-profit organization operating in the City for the
purpose of obtaining a Gaming License.
FINANCIAL IMPACT:        None.

                                     Page 1 of 8
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:             Approval.
      C. Special Event Liquor License – Farmer’s Market City Clerk
SUMMARY OF REQUEST: At the May 9, 2016 Commission meeting, staff
requested approval for a special liquor license on June 30, July 7, July 28,
August 11, and September 24.
After further review, staff has decided not to utilize a liquor license for Thursday
events this year. We are requesting to modify the request for a special liquor
license on July 30th, September 10th, and September 24th (this date was
previously approved by Commission). The two added dates are fundraisers at
the market.
FINANCIAL IMPACT:         $50 permit from the State for every date requested.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:          To approve a special liquor license for the dates
of July 30, September 10, and September 24, 2016.
      D. Special Event Request – Burning Foot Beer Festival Request to Allow
         Overnight Camping at Pere Marquette Park – Planning & Economic
         Development
SUMMARY OF REQUEST: The Lakeshore Brewer’s Guild is holding their 2nd annual
Burning Foot Beer Festival at Pere Marquette Park on Saturday, August 27, 2016.
This year, they are requesting permission to allow tent camping overnight on the
beach on Saturday night. They plan to limit the number of tents to 75 for the first
year. The designated camping area is 150 feet by 250 feet and will be defined
by a fence as shown on the site plan. They will have security present overnight
and portajons available in the camping area. Event volunteers will be there to
check people in. There will be no alcohol in the camping area.
In addition, they would like to allow an estimated 24 RVs to park across the
street in the large Ovals parking lot on Friday night and Saturday night. The RVs
will be for brewers and festival organizers, who will start setting up on Friday night
and Saturday morning.
FINANCIAL IMPACT:         None.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:             Staff recommends approval.
      E. Love Bites Treatery Concession Contract for City of Muskegon Parks
         Department of Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year
contractual agreement with Devin “Josie” Richardson of Love Bites Treatery LLC,


                                      Page 2 of 8
at Kruse Park, located within the City of Muskegon, to sell organic dog treats
from a concession stand/informational booth.
FINANCIAL IMPACT:         Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:        Authorize DPW staff to enter into concession
agreement with Devin “Josie” Richardson of Love Bites Treatery, LLC.
      G. Memorandum of Understanding – Justice Assistance Grant Public
         Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the Director and the City Manager to enter into an
agreement with the City of Muskegon Heights and Muskegon County in regards
to the disbursement of the FY 2016 Justice Assistance Grant. It is further
requested that the Mayor be authorized to sign the Memorandum of
Understanding. Note that time is of the essence as this grant requires a 30-day
governing body review period and the grant submission and the grant deadline
is June 30.
Although the Bureau of Justice Assistance (BJA) has designated us as being in a
disparate funding situation due to the County providing more than 50% of the
jail facilities, our proposal is to keep the allocations exactly as they initially came
down from the BJA which is as follows: County of Muskegon $ 0; City of
Muskegon $26,703 and City of Muskegon Heights $19,085. Note that BJA uses
crime data versus population in making these allocation decisions.
The City of Muskegon portion is planned to be used in continuation of the
manner in which the previous year’s JAG funding was used, which is for the
prosecution of City ordinance cases dealing primarily with neighborhood issues.
FINANCIAL IMPACT:         None.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:             Staff recommends approval of this request.
      I. Sale of Buildable Vacant Lot at 88 Monroe          Planning & Economic
         Development
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 88
Monroe to William Galy, to combine with his property at 1140 Jefferson St.,
Muskegon, MI. The lot is 66 x 132 ft. and is being offered to Mr. Galy for $2,500
plus the fee to register the deed. The City has owned the property since
December 2013 with no inquiries for potential construction. By combining this
with Mr. Galy’s property; this will give him a back yard. The City has spent an
average of $202.00 per year in maintenance of the vacant lot since 2013.
FINANCIAL IMPACT:         The sale of this lot will generate additional tax revenue

                                       Page 3 of 8
for the City and will place the property back on the City’s tax rolls thus relieving
the City of continued maintenance costs.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:          To approve the resolution and to authorize the
Mayor and the Clerk to sign said resolution and deed.
      J. MDOT-City 2nd Amendment of the Agreement for Muskegon & Webster
         Engineering
SUMMARY OF REQUEST: Authorize staff to sign the amendment to the
agreement with Michigan Department of Transportation extending the
completion date of the project to June 30, 2016 instead of the May 27, 2016
date in the previous amendment and to adopt a resolution authorizing
Mohammed Al-Shatel to execute said agreement.
FINANCIAL IMPACT:         None.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:    Authorize Mohammed Al-Shatel to sign the
agreement/contract amendment.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the Consent Agenda as presented with the exception of Items F and H.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
             Nays: None
MOTION PASSES
2016-50 ITEMS REMOVED FROM THE CONSENT AGENDA:
      F. Keep in Touch Massage Concession/Business Contract for City of
         Muskegon Parks     Department of Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year
contractual agreement with Laura Crawford of Keep in Touch Massage, at
various parks as outlined in the proposal, located within the City of Muskegon, to
provide chair massages.
FINANCIAL IMPACT:         Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:       Authorize DPW staff to enter into
concession/business agreement with Laura Crawford of Keep in Touch
Massage.
Motion by Commissioner Turnquist, second by Commissioner German, to
authorize DPW staff to enter into concession/business agreement with Laura

                                      Page 4 of 8
Crawford of Keep in Touch Massage.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
      H. Special Liquor Licenses – Rebel Road      Public Safety
SUMMARY OF REQUEST: To approve a Special Liquor License for the Child Abuse
Council to serve spirits at the following locations, dates, and times:
LC Walker Arena Parking Lot, 477 W. Western Avenue
July 14, 2016 from 6:00 PM until 12 midnight
July 15 and 16, 2016 from 11:00 AM until 12 midnight
July 17, 2016 from 10:00 AM until 6:00 PM
LC Walker Arena Terrace, 470 W. Western Avenue
July 15 and 16, 2016 from 11:00 AM until 12 midnight
Sand Lot, 351 W. Western Avenue
July 15 and 16, 2016 from 11:00 AM until 12 midnight
Muskegon County Convention and Visitor’s Bureau, 610 W. Western Avenue
July 15 and 16, 2016 from 11:00 AM until 12 midnight
They have already submitted a Special Event Application. Each serving of spirits
must be in a pre-measured format. This event is a four-day music and
motorcycle festival with food, merchandise vendors, music stages, and spirits
tents.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of this request.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to approve a Special Liquor License for the Child Abuse Council.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES




                                     Page 5 of 8
2016-51   PUBLIC HEARINGS:
      A. Transmittal of 2016-17 Proposed Budget City Manager
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2016-17 which starts July 1, 2016. An
electronic version of the budget has been distributed to Commissioners.
Additionally, the budget is available for public inspection on the City’s website
and at the City Clerk’s office or Hackley Public Library.
The proposed budget will be reviewed in detail with staff at the June 13 work
session. A public hearing on the budget will be held at the regular Commission
meeting the following evening on June 14th. City ordinance requires that the
budget be adopted by the Commission on or before the second Commission
meeting in June.
FINANCIAL IMPACT:        The budget is the City’s financial plan for the coming
fiscal year.
BUDGET ACTION REQUIRED:          None at this time.
STAFF RECOMMENDATION:            Approval of the proposed budget for fiscal year
2016-17.
PUBLIC HEARING COMMENCED:                NO PUBLIC COMMENTS WERE RECEIVED
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and approve the proposed budget for fiscal year
2016-17.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
            Nays: None
MOTION PASSES
      B. Public Hearing – Request to Establish an Obsolete Property District –
         1129 3rd Street Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Hamburger Mikey, LLC, has requested the establishment of an Obsolete
Property District for their property at 1129 3rd Street. The establishment of the
Obsolete Property District would allow them to apply for an Obsolete Property
Rehabilitation Exemption Certificate.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Staff recommends approval of the Obsolete
Property District.
PUBLIC HEARING COMMENCED:                PUBLIC COMMENTS WERE RECEIVED

                                      Page 6 of 8
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the obsolete property district.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German
            Nays: None
MOTION PASSES
      C. Public Hearing – Request to issue an Obsolete Property Certificate –
         Hamburger Mikey, LLC – 1129 3rd Street Planning & Economic
         Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Hamburger Mikey, LLC, has requested the issuance of an Obsolete
Property Certificate for their property located at 1129 3rd Street. Total capital
investment for this project is $134,000. The applicant is eligible for a nine-year
abatement because of the amount of investment.
FINANCIAL IMPACT:       If an Obsolete Property Certificate is issued, the
property taxes would be frozen at the pre-rehabilitated rate for the duration of
the certificated.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:          Staff recommends approval of the Obsolete
Property Rehabilitation Exemption Certificate.
PUBLIC HEARING COMMENCED:               NO PUBLIC COMMENTS WERE RECEIVED
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the obsolete property rehabilitation
certificate.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
2016-52   CLOSED SESSION:
      A. Discuss City Manager Evaluation
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to go
into closed session to discuss the City Manager’s evaluation.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None

                                     Page 7 of 8
MOTION PASSES
Motion by Commissioner Johnson, second by Commissioner Warren, to come
out of closed session.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission adjourned at 7:37 p.m.


                                  Respectfully Submitted,




                                  Ann Marie Meisch, MMC, City Clerk




                                Page 8 of 8
Date:      June 21, 2016
To:        Honorable Mayor and City Commissioners
From:      Ann Marie Meisch, City Clerk
RE:        Gaming License Request from Muskegon Polish
           Festival




SUMMARY OF REQUEST:                 The Muskegon Polish Festival is
requesting a resolution recognizing them as a non-profit organization
operating in the City for the purpose of obtaining a Gaming License.


FINANCIAL IMPACT: None


BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION: Approval
                       City of Muskegon
                                   RESOLUTION


WHEREAS; voter registration adjustments are needed between Precinct 5 and
            Precinct 7; and

WHEREAS; County District and City Precinct lines were adjusted in 2012 after the
            2010 Census; and

WHEREAS; Terrace Point Circle did not exist at the time of redistricting, there are
            now a number of newly constructed residential properties at that
            location;

WHEREAS; the current precinct boundary runs through the subdivision and is not
            a natural boundary as required by Michigan State Law; and

WHEREAS; recognizing voters on Viridian Drive will benefit from a closer polling
            location by voting at City Hall (Precinct 7); and

WHEREAS; Terrace Point Circle and Viridian Drive voters will be adjusted from
            Precinct 5 to Precinct 7 by new boundaries set as indicated in the
            attached map.

NOW THEREFORE BE IT RESOLVED, all voters located in Terrace Point Circle
            subdivision shall be added to the Michigan Qualified Voter File in
            Precinct 7 effective immediately and voters in the area of Viridian
            Drive will be moved into Precinct 7, effective January 1, 2017 as
            mandated by State law.

Signed the 28th day of June 2016



                                                   __________________________
                                                   Stephen J. Gawron, Mayor
Date:       June 22, 2016
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Meisch, City Clerk
RE:         Approval of Resolution Regarding Precinct Boundary
            Adjustments




SUMMARY OF REQUEST: To approve a resolution to allow for the
adjustment of precinct boundaries in precincts 5 and 7. Terrace Point Circle
did not exist when the current precinct boundaries were decided. Terrace
Point Circle is currently sitting in two precincts with no natural boundary.
Further adjustments will be made to this area to include the voters on Viridian
Drive, the natural boundary used for the new precinct division is the census
block where the properties are located. Voters registered on Viridian will have
a new polling place of City Hall effective January 1, 2017 if the resolution is
approved. Changes to Terrace Point Circle will become effective immediately.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval the resolution.
                       City of Muskegon
                                   RESOLUTION


WHEREAS; voter registration adjustments are needed between Precinct 5 and
            Precinct 7; and

WHEREAS; County District and City Precinct lines were adjusted in 2012 after the
            2010 Census; and

WHEREAS; Terrace Point Circle did not exist at the time of redistricting, there are
            now a number of newly constructed residential properties at that
            location;

WHEREAS; the current precinct boundary runs through the subdivision and is not
            a natural boundary as required by Michigan State Law; and

WHEREAS; recognizing voters on Viridian Drive will benefit from a closer polling
            location by voting at City Hall (Precinct 7); and

WHEREAS; Terrace Point Circle and Viridian Drive voters will be adjusted from
            Precinct 5 to Precinct 7 by new boundaries set as indicated in the
            attached map.

NOW THEREFORE BE IT RESOLVED, all voters located in Terrace Point Circle
            subdivision shall be added to the Michigan Qualified Voter File in
            Precinct 7 effective immediately and voters in the area of Viridian
            Drive will be moved into Precinct 7, effective January 1, 2017 as
            mandated by State law.

Signed the 28th day of June 2016



                                                   __________________________
                                                   Stephen J. Gawron, Mayor
Date:      June 28, 2016
To:        Honorable Mayor and City Commissioners
From:      City Clerk
RE:        Community Relations Committee Recommendation


SUMMARY OF REQUEST: To concur with recommendations from the Community Relations
Committee to appoint Barbara VanFossen to the District Library Board.

FINANCIAL IMPACT:

BUDGET ACTION REQUIRED:

STAFF RECOMMENDATION: To concur with recommendations

COMMITTEE RECOMMENDATION:
COMMISSION MEETING DATE: June 28, 2016




Date:        June 14, 2016

To:          Honorable Mayor and City Commissioners

From:        Director of Public Safety Jeffrey Lewis

RE:          Interview Room Audio & Visual Recording Device

_______________________________________________________

SUMMARY OF REQUEST:

The Director of Public Safety requests that the Commission authorize the amount of
$15,361.00 for an audio & visual recording device for the Detective Bureau interview room.
This recording system, with needed attachments, accessories, and backend storage server,
will replace the current out-of-date recording system. This upgrade will also assist the
Muskegon Police Department to be in compliance with the Audio Recording of Custodial
Interrogations ~ Public Act 479 of 2012 (see attachments for details). The equipment
enhancement should be completed by August 15, 2016. *This equipment is a sole source
purchase which is compatible with the L3 Communications Dash Cam system in our patrol
vehicles.

FINANCIAL IMPACT:

N/A – Budgeted

BUDGET ACTION REQUIRED:

Equipment was budgeted in the 2015/2016 (amended) budget cycle to support the
equipment upgrade (Police Forfeiture Fund).

STAFF RECOMMENDATION:

Staff recommends approval of this equipment purchase to update & enhance essential
audio & visual recording during criminal interrogations.
Date:    6/28/16

To:      Honorable Mayor and City Commissioners

From: DPW/Equipment
RE:      Backhoe Purchase


SUMMARY OF REQUEST:

Authorize staff to purchase one (1) Michigan Cat Backhoe from Michigan Caterpillar, the
Mi Deal State Contract holder. This machine will replace the 2000 model that we will
retire from service.

FINANCIAL IMPACT:
$111,000.00 on State Contract.
BUDGET ACTION REQUIRED:
None. Amount is within what was budgeted.
STAFF RECOMMENDATION:
Authorize staff to purchase one (1) Michigan Cat Backhoe from Michigan Caterpillar, the Mi
Deal State Contract holder.




O:\CLERK\Common\Word\Agenda Items for Next Meeting\2016\062816\07a_agenda item for
2016CatBackhoe.doc
Date:    6/28/16

To:      Honorable Mayor and City Commissioners

From: DPW/Equipment
RE:      Fuel System Up-grade


SUMMARY OF REQUEST:

Authorize staff to purchase new Fuel Master Fuel Dispensing Module and Fuel pumps
from Van Manen Petroleum Group. This is the second phase of our up-grade that
started last year when our monitoring and leak detection system failed requiring
emergency repairs to keep us compliant with DEQ regulations. This purchase is product
exclusive to the previous repairs done last year due to the age of our system, we are
reaching the point where it is getting hard to find replacement parts for our pumps. With
the Police and Fire as well as DPW staff fueling at our facility it would not be good for
our pumps to be down for an extended period of time.

FINANCIAL IMPACT:
$23,000.00
BUDGET ACTION REQUIRED:
None. Amount is what was budgeted.

STAFF RECOMMENDATION:
Authorize staff to purchase new Fuel Master Module and Pumps.




O:\CLERK\Common\Word\Agenda Items for Next Meeting\2016\062816\08_Fuel Masterpumps2016.doc
Date:    June 28, 2016

To:      Honorable Mayor and City Commissioners

From: DPW/Equipment
RE:      New Plow Truck


SUMMARY OF REQUEST:

The Equipment Division is requesting permission to purchase one new plow truck from
West Michigan International the State Mi-Deal contract holder.


FINANCIAL IMPACT:
$84,292.85

BUDGET ACTION REQUIRED:
None. This is the amount budgeted for.

STAFF RECOMMENDATION:
Authorize staff to purchase (1) one new plow truck from West Michigan International,LLc




O:\CLERK\Common\Word\Agenda Items for Next Meeting\2016\062816\09_PlowTruck2015 (4).doc
Date:    6/28/16

To:      Honorable Mayor and City Commissioners

From: DPW/Equipment
RE:      Plow Truck Build


SUMMARY OF REQUEST:

Authorize staff to allow Arista Truck Systems to build two new Plow trucks, the lowest
qualified bidder.

FINANCIAL IMPACT:
$111,224.00
BUDGET ACTION REQUIRED:
None. Amount is with in what was budgeted.
STAFF RECOMMENDATION:
Authorize staff to allow Arista Truck Systems to build two new Plow trucks, the lowest
qualified bidder.




O:\CLERK\Common\Word\Agenda Items for Next Meeting\2016\062816\10a_2016Truck Build (6).doc
                              AGENDA ITEM NO._____________

                  CITY COMMISSION MEETING ___________________



TO:           Honorable Mayor and City Commission


FROM:         Department of Public Works


DATE:         June 28, 2016


SUBJECT:       A & E Barbecue Concession Contract for City of Muskegon Parks.


SUMMARY OF REQUEST:
Staff is asking permission to enter into a 1-year contractual agreement with Eric Jewel of A & E
Barbecue LLC, at Pere Marquette Park, located within the City of Muskegon, to sell various
Barbecue items from a mobile “smoker on wheels”.


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


BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Authorize DPW staff to enter into concession agreement with Eric Jewel of A & E Barbecue
LLC.


COMMITTEE RECOMMENDATION:
        Commission Meeting Date:         June 28, 2016


Date:       June 21, 2016

To:         Honorable Mayor & City Commission

From:       Community and Neighborhood Services Department

Re:      Vinyl Siding Supplier Contract for Fiscal Year 2016
____________________________________________________________

SUMMARY OF REQUEST: To authorize Community and Neighborhood
Services to enter a new contract with Keene Lumber Company to be the
Vinyl Siding Supplier for 2016 fiscal year. Keene Lumber has agreed to
honor the existing contract price of $46.95 (forty-six dollars and ninety-five
cents) per building square for standard siding and $85.00 (eighty-five
dollars) per building square for premium siding.

FINANCIAL IMPACT:      Funding will be disbursed from the 2016
Community Development Block Grant Vinyl Siding fund.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: To approve request.

COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding
Program was approved by the Citizens District Council during the 2016
CDBG Grant process.
                                                              Community and
                                                           Neighborhood Services
                                                               City of Muskegon
MEMO                                                           933 Terrace Street
                                                                 Second Floor
                                                              Muskegon, MI 49442
                                                               Ph: 231-724-6717
Date:        May 25, 2016                                      Fax: 231-726-2501

To:          Vinyl Siding Supplier Bidders

From:        Carrie Kotchka, Housing Rehabilitation Counselor
             Community and Neighborhood Services
             City of Muskegon

Re:        Vinyl Siding Supplier Bids – 2016 - 2017 Program
______________________________________________________________________

The following is a list of installers with the price per square to install vinyl siding.

Keene Lumber                      $46.95 – standard
                                  $85.00 – premium

Foundation Building Material      $54.25 – standard
                                  $60.25 – premium
                                  $62.25 – elite

Weber Lumber                      $65.40 – standard



The City of Muskegon reserves the right to accept or reject any and all bids. The
City of Muskegon is also not restricted to accept the lowest bid.

We appreciate everyone’s interest in being a part of the City of Muskegon’s
neighborhood revitalization efforts.
Commission Meeting Date:            June 28, 2016


Date:       June 21, 2016

To:         Honorable Mayor and City Commission

From:      Community and Neighborhood Services Department

Re:      Vinyl Siding Installer Contracts for Fiscal Year 2016
____________________________________________________________

SUMMARY OF REQUEST: To authorize Community and Neighborhood
Services to enter a new contract with JR Tucker Construction to install vinyl
siding at an agreed price of $52.00 (fifty-two dollars) per building square for the
Vinyl Siding Program’s 2016 fiscal year.

FINANCIAL IMPACT: Funding will be disbursed from the July 1, 2016 – June
30, 2017 Community Development Block Grant Vinyl Siding fund.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: To approve request.

COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding Program
was approved by the Citizens District Council during the 2016 CDBG Grant
process.
                                                              Community and
                                                           Neighborhood Services
                                                                City of Muskegon
MEMO                                                            933 Terrace Street
                                                                  Second Floor
                                                               Muskegon, MI 49442
                                                                Ph: 231-724-6717
Date:         May 25, 2016                                      Fax: 231-726-2501

To:           Vinyl Siding Installer Bidders

From:         Carrie Kotchka, Housing Rehabilitation Counselor
              Community and Neighborhood Services
              City of Muskegon

Re:        Vinyl Siding Installer Bids – 2016 - 2017 Program
______________________________________________________________________

The following is a list of installers with the price per square to install vinyl.

Mark Tucker                       $52.00
JR Walker Construction            Incomplete Bid Package

The City of Muskegon reserves the right to accept or reject any and all bids. The
City of Muskegon is also not restricted to accept the lowest bid.

We appreciate everyone’s interest in being a part of the City of Muskegon’s
neighborhood revitalization efforts. The selected bidder will be contacted in the
next few days.
                      Commission Meeting Date: June 28, 2016




Date:         June 22, 2016
To:           Honorable Mayor and City Commissioners
From:         Finance Director
RE:           Sewer Rate Adjustment



SUMMARY OF REQUEST: Prior to 2015, there had not been a sewer rate
increase since 2010. The 2015 sewer rate resolution that was adopted has not
adequately addressed the needs of the sewer fund. Accordingly, we are asking the
City Commission to rescind the sewer rate resolution that was adopted in 2015 and
now approve a new resolution with a treatment rate for our customers that is based
on a multiplier of 1.49 times the rate the county bills the city for wastewater treatment.



FINANCIAL IMPACT: None at this time.


BUDGET ACTION REQUIRED: None at this time. The proposed rate change
was incorporated into the FY 2016-17 budget that was recently approved by the City
Commission.



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

At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
June 28, 2016.

RECITALS

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

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

1. Effective July 1, 2016, to rescind City of Muskegon Resolution No. 2015-44(B-1), which was adopted June 9,
2015.

2. Charges for residential sewer service shall be changed from $2.76 per 100 cubic feet to a rate based on a
multiplier of the rate the county bills the city for wastewater treatment as follows: effective July 1, 2016 – 1.49
multiplier with future rates to be adjusted as the county charges are adjusted.

3. Charges for commercial/industrial sewer service shall be changed from $3.45 per 100 cubic feet to a rate of
1.25 times (1.25x) the city rate for residential sewer service.

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

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

The above changes to be effective as noted above.

This resolution adopted.


YEAS:



NAYS:


CITY OF MUSKEGON

By: ______________________________
    Ann Marie Meisch, MMC, City Clerk

STATE OF MICHIGAN COUNTY OF MUSKEGON

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

                                         COMPARATIVE STATEMENT OF NET POSITION

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

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

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

Deferred Outflows of Resources                                                    -                   -                   -            25,261

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

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

    Total Liabilities                                                     502,304             626,586             765,933            974,799

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

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

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




                                                                   1
                                  CITY OF MUSKEGON (MICHIGAN) SEWER FUND

          COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

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

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

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

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

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

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

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

Capital Contributions                                       -                   -           118,946             474,681

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

Net position, beginning of year                 16,990,612          17,309,752          17,185,628           16,246,477 [1]

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


[1] Restated, per client.




                                                       2
                                                                         CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                                                        COMPARATIVE DETAIL OF OPERATING EXPENSES

                                                                                                  Fiscal Year Ended
                                                                                  6/30/2014           6/30/2015       6/30/2016        Test Year    Multiplier      2016/17     2017/18

Operating Expenses
   Dept: 30548 - Bond Interest, Insurance & Other
   ###### Contractual Services                                                            $0                    $0      $435,352         $435,352            1.0%     439,706     444,103
   ###### Other Insurance & Bonds                                                     62,326                62,304             -                -            0.0%           -           -
   ###### Printing                                                                       422                   440             -                -            0.0%           -           -
   ###### Indirect Cost Allocation                                                   101,185               106,849             -                -            0.0%           -           -
   ###### Right of Way Lease                                                              11                    11             -                -            0.0%           -           -
   ###### Payment to Other Government                                                  2,709                 2,793             -                -            0.0%           -           -
   ###### Utility Administration Fees                                                125,000               125,000             -                -            0.0%           -           -
   ###### Bad Debts                                                                   24,535                16,215        12,000           12,000            1.0%      12,120      12,241
   ###### Depreciation Expense                                                             -                     -             - [1]            -            0.0%           -           -

              Total Bond Interest, Insurance & Other Expenses                        316,188               313,613       447,352          447,352                     451,826     456,344

   Dept: 60557 - Muskegon County Wastewater Treatment
   ###### Payment to Other Government                                               5,679,994          6,210,557       6,200,000        5,673,628      [2]          5,808,986   5,949,082

   Dept: 60559 - Water & Sewer Maintenance
   ###### Salaries & Benefits                                                              -                     -       710,898          710,898            3.5%     735,779     761,532
   ###### Salary Permanent                                                           242,238               232,856             -                -            0.0%           -           -
   ###### Lead Person & Shift Premium                                                  1,419                     -             -                -            0.0%           -           -
   ###### Overtime                                                                    31,977                34,006             -                -            0.0%           -           -
   ###### Sick Leave Pay                                                              18,343                22,993             -                -            0.0%           -           -
   ###### Vacation Pay                                                                29,953                29,230             -                -            0.0%           -           -
   ###### Personal & Other Leave                                                       8,832                 8,981             -                -            0.0%           -           -
   ###### Holiday Pay                                                                 12,207                12,423             -                -            0.0%           -           -
   ###### Retiree Healthcare - General                                                12,116                11,153             -                -            0.0%           -           -
   ###### MERS Retirement System                                                      19,046                25,462             -                -            0.0%           -           -
   ###### Health Insurance                                                            89,030                89,007             -                -            0.0%           -           -
   ###### Life Insurance                                                                 841                   827             -                -            0.0%           -           -
   ###### Dental Insurance                                                             6,797                 6,776             -                -            0.0%           -           -
   ###### Disability Insurance                                                         1,102                 1,067             -                -            0.0%           -           -
   ###### Social Security                                                             25,975                25,476             -                -            0.0%           -           -
   ###### Workers' Compensation                                                       11,988                11,160             -                -            0.0%           -           -
   ###### Unemployment                                                                   297                    94             -                -            0.0%           -           -
   ###### Education Incentive Pay                                                        524                   971             -                -            0.0%           -           -
   ###### Longevity Pay                                                                6,621                 6,840             -                -            0.0%           -           -
   ###### Operating Supplies                                                               -                     -        55,340           55,340            1.5%      56,170      57,013
   ###### Clothing & Uniforms                                                            724                   104             -                -            0.0%           -           -
   ###### Tools                                                                          143                   738             -                -            0.0%           -           -
   ###### Motor Fuel & Lubricants                                                         23                     -             -                -            0.0%           -           -
   ###### Licenses                                                                       125                    95             -                -            0.0%           -           -
   ###### Miscellaneous Material & Supplies                                              962                 1,010             -                -            0.0%           -           -
   ###### Sewer/Water System Supplies                                                 19,761                14,926             -                -            0.0%           -           -
   ###### Repair Supplies                                                                143                   192             -                -            0.0%           -           -
   ###### Equipment Supplies                                                           1,866                 1,754             -                -            0.0%           -           -
   ###### Road Maintenance Supplies                                                   33,479                26,350             -                -            0.0%           -           -
   ###### Seeding & Planting Supplies                                                      -                   259             -                -            0.0%           -           -
   ###### Traffic Control Device Supplies                                              4,545                     -             -                -            0.0%           -           -
   ###### Contractual Services                                                             -                     -       430,830          430,830            1.5%     437,292     443,852
   ###### Laundry & Uniform Cleaning                                                   1,569                 1,855             -                -            0.0%           -           -
   ###### Contractual Services                                                        51,012                37,126             -                -            0.0%           -           -
   ###### Medical Services                                                               354                   300             -                -            0.0%           -           -
   ###### Printing                                                                       115                     -             -                -            0.0%           -           -
   ###### Rental of Buildings                                                         84,612                76,776             -                -            0.0%           -           -
   ###### Right of Way Lease                                                             354                   354             -                -            0.0%           -           -
   ###### Vehicle Rental                                                             249,600               220,959             -                -            0.0%           -           -
   ###### Telephone                                                                    1,077                   605             -                -            0.0%           -           -
   ###### Electricity                                                                 22,826                24,375             -                -            0.0%           -           -
   ###### Other Expenses                                                                   -                     -        11,000           11,000            1.0%      11,110      11,221
   ###### Inventory Purchases                                                              -                31,540             -                -            0.0%           -           -
   ###### Conference, Training and Travel                                                228                   254             -                -            0.0%           -           -
   ###### Capital Outlays                                                                  -                     -        18,000           18,000            1.0%      18,180      18,362
   ###### Equipment Purchases                                                          5,484                 1,271             -                -            0.0%           -           -
   ###### Equipment Repair                                                             1,077                 3,499             -                -            0.0%           -           -

              Total Water & Sewer Maintenance Expenses                               999,386               963,665     1,226,068        1,226,068                   1,258,532   1,291,979

[1] We have removed Depreciation Expense from this report as it is performed on the cash basis.
[2] See County Charges (page 8).




                                                                                                       3
                                                                 CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                                                                                        (Continued)
                                                                COMPARATIVE DETAIL OF OPERATING EXPENSES

                                                                                         Fiscal Year Ended
                                                                         6/30/2014           6/30/2015       6/30/2016       Test Year       Multiplier   2016/17        2017/18

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

   Dept: 90000 - Project Expenditures
   ###### Contractual Services                                                       -                  -     1,795,000         125,000            0.0%     125,000        125,000

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

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

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

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

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

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

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

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

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

   Dept: 91318 - Getty St, Evanston to Apple
   ###### Contractual Services                                                       -               166                 -               -         0.0%             -              -

   Dept: 91325 - Storm & Waste Water Asset Mgmt - SAW Grant
   ###### Contractual Services                                               49,113               364,385                -               -         0.0%             -              -
   ###### Engineering Services                                                    -                22,141                -               -         0.0%             -              -

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

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

   Dept: 99012 - GIS Training
   ###### Contractual Services                                                   43                     -                -               -         0.0%             -              -
   ###### Engineering Services                                               45,309                     -                -               -         0.0%             -              -

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


                  Total Sewer Operating Expenses                         $7,512,559          $8,094,595      $9,668,420      $7,472,048                   $7,644,344    $7,822,405




                                                                                              4
                                           CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                          SCHEDULE OF 2015/16 BUDGETED OPERATING EXPENSES AND ADJUSTMENTS

                                                                  2015/16 Budget    Adjustments       Test Year
                                                                    (Per Client)
Operating Expenses
  Dept: 30548 - Bond Interest, Insurance & Other
    5300 Contractual Services                                           $435,352                          $435,352
    5319 Other Insurance & Bonds                                               -                                 -
    5353 Printing                                                              -                                 -
    5360 Indirect Cost Allocation                                              -                                 -
    5364 Right of Way Lease                                                    -                                 -
    5370 Payment to Other Government                                           -                                 -
    5374 Utility Administration Fees                                           -                                 -
    5471 Bad Debts                                                        12,000                            12,000
    5990 Depreciation Expense                                                  -                                 -

           Total Bond Interest, Insurance & Other Expenses               447,352                  -        447,352

   Dept: 60557 - Muskegon County Wastewater Treatment
    5370 Payment to Other Government                                    6,200,000       ($526,372)       5,673,628

   Dept: 60559 - Water & Sewer Maintenance
    5100 Salaries & Benefits                                             710,898                           710,898
    5101 Salary Permanent                                                      -                                 -
    5110 Lead Person & Shift Premium                                           -                                 -
    5111 Overtime                                                              -                                 -
    5112 Sick Leave Pay                                                        -                                 -
    5113 Vacation Pay                                                          -                                 -
    5114 Personal & Other Leave                                                -                                 -
    5115 Holiday Pay                                                           -                                 -
    5141 Retiree Healthcare - General                                          -                                 -
    5144 MERS Retirement System                                                -                                 -
    5151 Health Insurance                                                      -                                 -
    5153 Life Insurance                                                        -                                 -
    5155 Dental Insurance                                                      -                                 -
    5159 Disability Insurance                                                  -                                 -
    5161 Social Security                                                       -                                 -
    5163 Workers' Compensation                                                 -                                 -
    5165 Unemployment                                                          -                                 -
    5181 Education Incentive Pay                                               -                                 -
    5183 Longevity Pay                                                         -                                 -
    5200 Operating Supplies                                               55,340                            55,340
    5213 Clothing & Uniforms                                                   -                                 -
    5221 Tools                                                                 -                                 -
    5225 Motor Fuel & Lubricants                                               -                                 -
    5227 Licenses                                                              -                                 -
    5231 Miscellaneous Material & Supplies                                     -                                 -
    5239 Sewer/Water System Supplies                                           -                                 -
    5243 Repair Supplies                                                       -                                 -
    5249 Equipment Supplies                                                    -                                 -
    5255 Road Maintenance Supplies                                             -                                 -
    5257 Seeding & Planting Supplies                                           -                                 -
    5259 Traffic Control Device Supplies                                       -                                 -
    5300 Contractual Services                                            430,830                           430,830
    5341 Laundry & Uniform Cleaning                                            -                                 -
    5346 Contractual Services                                                  -                                 -
    5351 Medical Services                                                      -                                 -
    5353 Printing                                                              -                                 -
    5362 Rental of Buildings                                                   -                                 -
    5364 Right of Way Lease                                                    -                                 -
    5366 Vehicle Rental                                                        -                                 -
    5390 Telephone                                                             -                                 -
    5391 Electricity                                                           -                                 -
    5400 Other Expenses                                                   11,000                            11,000
    5405 Inventory Purchases                                                   -                                 -
    5450 Conference, Training and Travel                                       -                                 -
    5700 Capital Outlays                                                  18,000                            18,000
    5720 Equipment Purchases                                                   -                                 -
    5770 Equipment Repair                                                      -                                 -

           Total Water & Sewer Maintenance Expenses                     1,226,068                 -      1,226,068




                                                             5
                                               CITY OF MUSKEGON (MICHIGAN) SEWER FUND
                                                                                                               (Cont'd)
                           SCHEDULE OF 2015/16 BUDGETED OPERATING EXPENSES AND ADJUSTMENTS

                                                                        2015/16 Budget       Adjustments       Test Year
                                                                          (Per Client)
Operating Expenses (Cont'd)
  Dept: 60966 - Muskegon/Webster 9th to Spring
    5346 Contractual Services                                                            -                 -               -

   Dept: 90000 - Project Expenditures
    5300 Contractual Services                                                 1,795,000         (1,670,000)         125,000

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

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

            Total Estes, Fair to Lakeshore Expenses                                      -                 -               -

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

            Total Austin Street Lift Station Expenses                                    -                 -               -

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

            Total Merrill, Fifth to Third Expenses                                       -                 -               -

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

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

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

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

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

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

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

            Total GIS Training Expenses                                                  -                 -               -


                 Total Sewer Operating Expenses                              $9,668,420        ($2,196,372)      $7,472,048




                                                                   6
                  CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                    PROOF OF RATES

Administration Charge

Total Number of Customers                                     13,055
Monthly Administration Charge                                  $2.67
Times: 12 months                                                  12
    Administration Charge Revenue                           $418,282


Non-metered Flat Charge

Total Number of Non-Metered City customers                        22
Non-metered City charge                                       $29.52
Times: 12 months                                                  12
    Non-metered City flat charge Revenue                      $7,793

Total Number of Non-Metered Non-resident customers               101
Non-metered non-resident charge                               $59.04
Times: 12 months                                                  12
    Non-metered Non-resident flat charge Revenue             $71,556


Commodity Charge

Residential
    2014/15 estimated flow (ccf)                              731,411
    Times: Flow rate per 100 cf                                 $2.46
      Residential Commodity Charge Revenue                 $1,799,271

Commercial/Industrial Inside City
   2014/15 estimated flow (ccf)                             1,059,667
   Times: Flow rate per 100 cf                                  $3.10
     Commercial Commodity Charge Revenue                   $3,284,968

Commercial/Industrial Outside City
   2014/15 estimated flow (ccf)                               96,676
   Times: Flow rate per 100 cf                                 $6.20
     Commercial Commodity Charge Revenue                    $599,391

                   Total revenue from all sources          $6,181,262
                   Less: 6/30/2015 revenue per audit        6,237,327
                   Difference                                ($56,065)




                                             7
                                                     CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                                                      COUNTY CHARGES

                                                                         Fiscal Year Ended
                                                            6/30/2014        6/30/2015       6/30/2016    Test Year    Multiplier    2016/17     2017/18

Gallonage       Flow per County (Mgal)            1,857
                Rate from County              $2,082.71
                                             $3,867,384                                       3,867,384    3,867,384          3.5%   4,002,743   4,142,839
                                                                                                   1.95                                   2.06        2.10

$17MM Bond      Flow per County (Mgal)            1,857
                Rate from County                $291.21
                                               $540,748                                         540,748      540,748          0.0%     540,748     540,748
                                                                                                   0.27                                   0.28        0.28

Phase I         Flow per County (Mgal)            1,857
                Rate from County                $192.92
                                               $358,233                                         358,233      358,233          0.0%     358,233     358,233
                                                                                                   0.18                                   0.18        0.19

Phase II        Flow per County (Mgal)            1,857
                Rate from County                $152.97
                                               $284,050                                         284,050      284,050          0.0%     284,050     284,050
                                                                                                   0.14                                   0.15        0.15

60" Segment 1   Flow per County (Mgal)            1,857
                Rate from County                $155.25
                                               $288,284                                         288,284      288,284          0.0%     288,284     288,284
                                                                                                   0.15                                   0.15        0.15

60" Segment 2   Flow per County (Mgal)            1,857
                Rate from County                $180.37
                                               $334,929                                         334,929      334,929          0.0%     334,929     334,929
                                                                                                   0.17                                   0.17        0.18

                                         Total County Charges per Calculation                 5,673,628    5,673,628                 5,808,986   5,949,082

                                                                                                   2.86                                   2.98        3.04




                                                                                8
                                                                                            CITY OF MUSKEGON (MICHIGAN) SEWER FUND

                                                                                                        SEWER CASH FLOW ANALYSIS


                                                                                          2014/15          2015/16            2016/17      2017/18      2018/19      2019/20      2020/21      2021/22     2022/23
Assumptions                                                                 Increase
 Customers billed - month                                                                    13,055           13,055             13,055       13,055       13,055       13,055       13,055       13,055       13,055
 Administration charge - month                                                   0.00%        $2.67            $2.67              $2.67        $2.67        $2.67        $2.67        $2.67        $2.67        $2.67
 Non-metered City customers billed - month                                                       22               22                 22           22           22           22           22           22           22
 Non-metered City flat charge - month                                                        $29.52           $33.12             $40.80       $41.92       $43.07       $44.26       $45.48       $46.73       $48.01
 Non-metered non-resident customers billed - month                                              101              101                101          101          101          101          101          101          101
 Non-metered non-resident flat charge - month                                                $59.04           $66.24             $81.60       $83.84       $86.15       $88.52       $90.95       $93.45       $96.02
 Residential volume billed - annual ccf                                                     731,411          731,411            731,411      731,411      731,411      731,411      731,411      731,411      731,411
 Residential Commodity charge - ccf                                              2.75%        $2.46            $2.76              $3.40        $3.49        $3.59        $3.69        $3.79        $3.89        $4.00
 Commercial/Industrial City volume billed - annual ccf                                    1,059,667        1,059,667          1,059,667    1,059,667    1,059,667    1,059,667    1,059,667    1,059,667    1,059,667
 Commercial/Industrial City commodity charge - ccf                                            $3.10            $3.45              $4.25        $4.37        $4.49        $4.61        $4.74        $4.87        $5.00
 Commercial/Industrial outside City volume billed - annual ccf [1]                           96,676
 Commercial/Industrial outside City commodity charge - ccf                                    $6.20

Revenues
 Rates & charges
  Administration charge                                                                   $418,282         $418,282           $418,282     $418,282     $418,282     $418,282     $418,282     $418,282     $418,282
  Non-metered City flat rate charge                                                           7,793            8,744             10,771       11,067       11,372       11,684       12,006       12,336       12,675
  Non-metered non-resident flat rate charge                                                  71,556           80,283             98,899      101,619      104,413      107,285      110,235      113,267      116,381
  Residential commodity charge                                                            1,799,271        2,018,694          2,486,797    2,555,184    2,625,452    2,697,652    2,771,837    2,848,063    2,926,385
  Commercial/Industrial City commodity charge                                             3,284,968        3,655,851          4,503,585    4,627,433    4,754,688    4,885,442    5,019,791    5,157,836    5,299,676
  Commercial/Industrial outside City commodity charge                                       599,391                -                  -            -            -            -            -            -            -
   Total rates & charges revenue                                                          6,181,262        6,181,854          7,518,335    7,713,586    7,914,207    8,120,345    8,332,152    8,549,783    8,773,399
 Other                                                                                      126,481          126,481            126,481      126,481      126,481      126,481      126,481      126,481      126,481
     Total revenues                                                                       6,307,743        6,308,335          7,644,816    7,840,067    8,040,688    8,246,826    8,458,633    8,676,264    8,899,880

Total operating expenditures                                                              7,708,069        7,472,048          7,644,344    7,822,405    8,006,430    8,196,625    8,393,201    8,596,378    8,806,384

Net operating revenue                                                                     (1,400,326)      (1,163,713)              472       17,662       34,258       50,201       65,432       79,886       93,496

Less: Estimated cash-funded capital improvements
      Estimated debt-funded capital improvements

Net cash flow                                                                            ($1,400,326)     ($1,163,713)            $472       $17,662      $34,258      $50,201      $65,432      $79,886      $93,496

Unrestricted cash & investments                                                          $2,339,749       $1,176,036         $1,176,508   $1,194,170   $1,228,428   $1,278,629   $1,344,061   $1,423,947   $1,517,443


[1] This flow pertained to Peerless Plating who is no longer in business.




                                                                                                                         9
                               AGENDA ITEM NO._____________

                  CITY COMMISSION MEETING ___________________



TO:            Honorable Mayor and City Commission


FROM:          Department of Public Works


DATE:          June 28, 2016


SUBJECT:       Reese Field Management Agreement


SUMMARY OF REQUEST:
Authorize the Mayor and City Clerk to execute the attached “Reese Field Soccer Facility
Management Agreement” with Sailors Soccer Club DBA, West Michigan Storm Soccer Club
(WMSSC).


FINANCIAL IMPACT:
West Michigan Storm Soccer Club will expand the operations of this facility and will invest in
improvements to the facility.


BUDGET ACTION REQUIRED:
None. The contract will offer savings in maintenance costs for the City and create opportunities
for capital improvements by WMSSC that the City is unable to accomplish at this time.


STAFF RECOMMENDATION:
Approve request.


COMMITTEE RECOMMENDATION:
To:      Honorable Mayor and City Commission
From:    DPW Staff
Date:    6/22/2016
Re:      Reese Field Management Agreement



The Department of Public Works Staff is requesting permission to enter into a three
(3) year contractual agreement, with annual one (1) year extensions, thus creating a
perpetual three (3) year contract, with the West Muskegon Storm Soccer Club
(WMSSC), of Muskegon MI.

Previous Management Agreements have in the past proven to be not only a cost
savings to the City, through reduced maintenance and utility costs, but has also
realized major improvements to the facilities.

Staff has met with WMSSC and is negotiating a contract with the following
proposed contract items referenced in the individual sections below:

•     WMSSC responsibilities under the Maintenance section of the contract states
      that they are to “Perform all maintenance/repair/purchasing of all items
      pertaining to the soccer playing surface, perform mowing of grass, garbage
      clean-up and providing of ADA portable restrooms within the Soccer Facility,

•     The City’s’ responsibilities under the Maintenance section of the contract states
      that the “City is responsible to provide Dumpster service and trash cans for the
      soccer facility and provide mowing and maintenance outside the Soccer Facility
      and throughout Reese Field Park”.

•     Electrical and Water/Sewer usage shall be paid by the “City” at this time with
      WMSSC paying for any usage above the normal usage for the Park/Facility (3-5
      year averages used in calculating normal usage).

•     Improvements may be made to the facility by WMSSC subject to the “City’s”
      approval including but not limited to:

      Field upgrades, landscape improvements and seating/bleacher improvements
      Reseeding, fertilizing and weed control as needed
      Soccer goal and netting installation/upgrades
      Field lighting upgrades and improvements


                                                                                          1
          REESE FIELD SOCCER FACILITY MANAGEMENT AGREEMENT



        This Agreement is made this ____ day of June, 2016 by and between the City of
Muskegon, a Michigan municipal corporation, 933 Terrace Street, Muskegon, Michigan 49443-
0536 (“the City”) and Sailors Soccer Club DBA, West Michigan Storm Soccer Club, 2743 Henry
Street, PO Box 2743, Muskegon, MI 49441, a Michigan 501-C-3 Entity, (“WMSSC”).

                                           Background

WHEREAS, Reese Field Soccer Facility (RFSF) is a soccer field located within Reese Field
Park, within the park system of the City and is located at 1345 E. Forest Avenue, Muskegon,
Michigan, at the intersection of Creston Street and Forest Avenue;

WHEREAS, Reese Field consists of a soccer facility, softball facility, basketball court, tennis
court a playground, picnic equipment, and “green space”;

WHEREAS, the City owns the RFSF and WMSSC wishes to operate and maintain the RFSF for
eight months of the year;

       In consideration of the mutual promises of the parties set forth in this Agreement
and other valuable consideration, the receipt and adequacy of which are acknowledged, the
parties agree as follows:

Definitions. The “Season” shall be defined as the period beginning on March 1st of any given
year and ending on October 31st of the same year.

The “Soccer Facility” shall be defined as the semi-fenced area surrounding the soccer fields
inclusive of the perimeter fencing, outfield lighting, and spectator seating areas.

Term. This Agreement shall be for a period of three (3) years. At the end of each “Season”
during the term of the agreement, the parties may agree to extend the life of the agreement by
one (1) year, thus creating a perpetual three (3) year contract. Both parties must agree in writing
to the extension of the term of the contract. In the event that the results of operations, for any
year during the term, are insufficient to allow WMSSC to fulfill its obligations hereunder,
WMSSC shall be permitted to terminate this Agreement upon ninety (90) days advance written
notice. In the event that WMSSC fails to provide the services, as outlined on page 2, under
“Maintenance”, in the sole discretion of the City, the City shall be permitted to terminate this
Agreement upon ninety (90) days advance written notice.




                                                 1
Maintenance. WMSSC shall operate and maintain the RFSF in an efficient and competent
manner, reflecting the standards and expectations of the City as provided and outlined in the City
of Muskegon’s’ Vision/Value/Mission Statement, throughout the “Season”. During the off-
Season period, from November 1 until March 1 of the following year, the WMSSC may use the
RFSF only with prior approval and permission from the City, which approval and permission
shall not be unreasonably withheld or delayed. During the “Season”, WMSSC shall have the
exclusive right to control the use of and have sole responsibility for maintaining the schedule for
use of the RFSF.


WMSSC shall be responsible for the following during the “Season”:

       Repair or replace as needed all goals/poles, netting, marking/painting of said soccer
       fields, purchasing of paint/chalk for marking/painting said surfaces or any other soccer
       related items pertaining to the playing surface (i.e. outfield lighting).

       Maintenance of the RFSF, including but not limited to, picking up trash/emptying
       garbage cans within the “Soccer Facility” and the maintenance of the permanent
       restrooms, as needed, during WMSSC scheduled and non-scheduled events. The City
       assists in cleaning of restrooms from Memorial Day thru Labor Day, during our normal
       business hours. The usage/control of permanent restrooms is at the sole discretion of the
       City.

       Performance of mowing of grass and maintenance within the “Soccer Facility” is to be
       done by WMSSC staff or designee throughout the “growing season”.

       Provide an adequate supply of trash bags, paper products, and cleaning supplies for the
       permanent restrooms and “Soccer Facility” area.

       Provide “current ADA standard” portable restrooms, as needed, to be located at a
       mutually agreed upon location between the City and WMSSC, from on or around March
       1st to November 30th of each contract year.


The City shall be responsible for the following year-round, including during the “Season”:

       Provide dumpster service and trash cans.

       Mowing and maintenance outside of the “Soccer Facility” area and surrounding facility.



Concessions. WMSSC shall control all concessions directly or through its designated vendor or
licensee and receive any profits from these concessions. WMSSC or its designated vendor or
licensee will be responsible for all sales tax reports and remittance. WMSSC shall be responsible
for maintenance and cleaning of concession areas.



                                                2
Improvements. WMSSC may upgrade the assets of the RFSF to make the facility more
desirable for future tournaments and leagues, in a manner subject to review and approval of the
City, which shall not be unreasonably withheld or delayed. All such improvements must comply
with all current laws and ordinances, including but not limited to the Americans with Disabilities
Act. WMSSC shall apply for all necessary permits associated with such improvements through
the City or its designated contractor.

ADA Compliance. WMSSC shall insure that reasonable accommodations will be met as
required by the Americans with Disabilities Act.

Entrance and Parking Fees. WMSSC may charge a gate entrance fee or other use fee, for
spectators attending events within the RFSF. All parking shall be free of charge to accommodate
the “general public” and non-soccer related activities.

Historic Character and Reese Field Name. WMSSC shall protect and promote the unique
history, character and charm of the Reese Field/Park, including the “Reese Field” name. The
name of the facility shall not be changed, but WMSSC shall be permitted a license to use and
promote the name in any of its advertising, promotions, fundraising and other activities as it may
conduct from time to time at the RFSF.

Electrical Utilities. The City shall pay and WMSSC shall reimburse the City for the costs for
above normal usage of electrical service for the “Soccer Facility” area including but not limited
to the concessions, outfield lights and irrigation within the RFSF facility during the “Season” (3-
5 years averages used in calculations).

Water and Sewer. WMSSC shall reimburse the City for the cost of water and sewer service for
above normal usage for the restrooms and concession stands during the operational period
covered by this contract. Irrigation water is separately metered and the WMSSC shall pay for all
sprinkling/irrigation above normal usage (3-5 year averages used in calculations).

Improvements. During the term of this contract, WMSSC may make the following
      improvements, subject to site and other environmental conditions:

       Field upgrades (Immediately upon approval of this contract)
       Reseeding, fertilizing, weed control, as needed
       Goal and netting installation/upgrades
       Field lighting upgrades and improvement
       Seating improvement
       Landscaping improvements

WMSSC will retain possession of any “portable” improvements and the City shall retain
possession of any “attached” improvements.




                                                 3
Promotions, advertising, fund-raising. WMSSC may operate and promote soccer leagues and
tournaments and events to increase use of WMSSC and provide activities for our residents and
guests, for which it may charge a fee. WMSSC shall promote participation of local City of
Muskegon youth in tournaments. The City shall assist WMSSC in recruiting City of Muskegon
youth to participate in existing leagues or programs offered by or through soccer organizations
using the RFSF. The City’s Events Committee may assist WMSSC in the promotion of soccer
leagues and tournaments.

WMSSC may advertise and obtain sponsors for a fee. Non-permanent banners may be displayed
inside the RFSF on the fences for the duration of the “Season”, subject to the City’s right to
approve or disapprove the material, size and content of banners. The City shall not unreasonably
withhold approval.

WMSSC may charge team fees, entry fees, and tournament fees to provide funds for RFSF
operating expenses and to provide funds for future upgrades of the RFSF facility.

Programs. WMSSC will continue to provide recreational soccer opportunities similar to those
previously provided by the City of Muskegon, and to expand and promote additional
opportunities whenever possible.

WMSSC, either directly or through a third party, may at times conduct soccer camps. WMSSC
will waive registrations fees for City of Muskegon youth upon proof of residency. WMSSC shall
coordinate with the City for the promotion of these events.

WMSSC will cooperate with the City for the scheduling of any special non-soccer events that
may need to use the RFSF. The City shall pay all extraordinary expenses incurred for such non-
soccer events and WMSSC shall have no liability with respect thereto.

Use of Other City Facilities. The City shall assist WMSSC whenever practical to use additional
City of Muskegon soccer facilities at cost to WMSSC as specified in the City User Fee Schedule.
The use of these facilities will be subject to scheduling and availability (other management
agreements may limit the use of such facilities/fields). The modification of these additional
facilities to accommodate play/use will be at the expense of WMSSC.

Reports. WMSSC shall provide an annual report of participation and demographics to the City.
MCBC shall provide an annual financial report showing revenues and expenses and the amounts
invested in the facility to the City.

Portable Restrooms. WMSSC will provide additional portable restrooms at RFSF and at any
other City facilities if needed.

Notice of Schedule. WMSSC will notify the City of any scheduled events as far in advance as
possible so that the City can assist in answering questions and to assist in promotion both
through its Events Committee and through its website.




                                               4
Insurance. WMSSC shall obtain the following types of insurance with the minimum coverage
amounts as follows:

       Comprehensive General Liability Insurance. WMSSC shall obtain a comprehensive
       liability policy acceptable to the City carrying limits of at least $1,000,000, single limit.

        Automobile Liability. WMSSC shall obtain automobile liability insurance in an amount
        not less than minimum state requirements.

        Workers Compensation insurance. WMSSC shall carry workers’ compensation
        insurance in the amounts required by law for any of its employees.

The City shall be named as additional insured on the Comprehensive General Liability Insurance
and Automobile Liability policies. Each policy shall carry the commitment by the company that
no cancellation shall be effective against the City with less than thirty (30) days written notice to
the City.

Language on the above named insurance certificates shall read specifically:

“The City of Muskegon, all elected and appointed officials, all employees and volunteers, all
boards, commissions and/or authorities and board members, including employees and volunteers
thereof: it is understood and agreed that by naming the City of Muskegon as additional insured,
coverage afforded is considered to be primary and any other insurance the City of Muskegon
may have in effect shall be considered secondary and/or excess”.

Liens. WMSSC shall be responsible for protecting the City from any and all liens, mortgages,
and security interests or claims for any interest in any property owned by the City relating to
WMSSC’s use thereof.




                                                  5
This Agreement was entered into on the date set forth above.


                                    BY:
                                    City of Muskegon, a Michigan municipal
                                    corporation


                                    By: ______________________________________
                                        Stephen Gawron, Mayor


                                    By: ______________________________________
                                        Ann Marie Meisch, MMC, Clerk

                                    AND:

                                    West Michigan Storm Soccer Club, a Michigan
                                    501-C-3 Entity


                                    By: ______________________________________

                                          Jason Fisher, Its: President




                                        6
                     Commission Meeting Date: June 28, 2016

Date:         June 21, 2016
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request to Create a New Neighborhood
              Enterprise Zone District at 285 W Western Ave


SUMMARY OF REQUEST:

Pursuant to Public Act 147 of the Michigan Public Acts of 1992, the developer of the
Highpoint Flats project has requested to create a new Neighborhood Enterprise Zone
(NEZ) district for the parcel at 285 W Western Ave. Properties located in NEZ districts are
eligible to apply for NEZ certificates, which will lower the residential property taxes on new
or rehab construction. The State requires that notices are to be sent to the local taxing
jurisdictions regarding the request and that the resolution may not be passed until after 60
days of the notice letters being sent. Also, a public hearing must be held no more than 45
days after the notice is sent. Notices were mailed on June 20, 2016. The resolution is
planned to come back in front of the City Commission on August 23, 2016. This project
will include between 49-61 apartment units with first floor retail and/or office space. The
NEZ will only affect the residential component of the project. The City is allowed to
designate up to 15% of its total area as NEZ designations, which calculates out to 2.802
square miles. We currently have 2.06 square miles designated as NEZ districts. This new
district would only add 0.0004 square miles for an overall total of 2.0604 square miles of
designated NEZ districts in the City.

FINANCIAL IMPACT:

For those properties that are approved for a NEZ Certificate, taxation will be levied using
half of the State average of millages of local entities.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends approval of the mew NEZ district.

COMMITTEE RECOMMENDATION:

None
COMMISSION MEETING DATE: June 28,, 2016

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order to
             Demolish. Dangerous Building Case #: EN1600653


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 330 Washington
Ave. is unsafe, substandard, a public nuisance and that it be demolished within thirty
(30) days or infraction tickets may be issued. It is further requested that administration
be directed to obtain bids for the demolition of the structure and that the Mayor and City
Clerk be authorized and directed to execute a contract for demolition with the lowest
responsible bidder or staff may issue infraction tickets to the owner, agent or
responsible party if they do not demolish the structure.

Case# & Project Address: # EN1600653 – 330 Washington

Location and ownership: This structure is located on Washington Ave. between 7th and
6th Streets and is owned by Fred Pfeiffer & Monroe Davis.

Staff Correspondence: A fire inspection was conducted on 3/22/2013. The Notice and
Order to Repair was issued on 3/25/2016. On 5/5/2016 the HBA declared the structure
substandard and dangerous.




Financial Impact: CDBG or General Funds

Budget action required: None

State Equalized value:     $ 13,500.

Estimated cost to repair: $ 40,000.

Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
Notification procedures:
   1) Title search is performed so all interested parties are notified.
   2) All notifications are posted on the structure.
   3) All notifications are mailed by certified mail with a return card for signature.
Owner Contact: None since the Notice & Order.
Permits obtained:
    PE140727 – Upgrade electrical service – Completed 11/6/2014.
    No other permits were obtained.
Additional Information:
   **12/8/14 – Mr. Pfeifer had contacted SAFEbuilt to state that no one was living there. He
stated that his cleaning crew had been there cleaning & he had someone there giving him cost
estimates for the repairs only. The VA was going to give him enough money to do the repairs. As
of 6/20/16 – nothing more was completed in regards to the VA providing any funds for repairs.
        If you disagree with the decision of the City Commission, you have the right to file a petition for
superintending control in the Circuit Court for the County of Muskegon within 21 days after the City
Commission concurs.




Front of home.                                            Rear of structure showing 2nd floor.




Rear of structure from fire.                              Side after fire-rear windows boarded.
                           CITY OF MUSKEGON/SAFEbuilt
                933 Terrace St. Ste 204, P.O. Box 536, Muskegon, MI 49443
                               FIRE INSPECTION REPORT
                                       10/23/2013

Owner PFEIFFER FRED/DAVIS MONROE
     330 WASHINGTON AVE
     MUSKEGON, MI 49441
Property Address: 330 WASHINGTON AVE                 Parcel # 24-205-390-0007-00
Inspector: Red Sloan, Ken Murar, Jim Hoppus
Date completed: 10/22/13
DEFICENCIES:
  1. Main floor system will need to be replaced – all new subfloor, new floor joist & hangers
  2. Smoke damage to all walls – must be properly cleaned or repaired
  3. Must install smoke alarms to code
  4. Stairs to basement must be replaced
  5. Electric service to be replaced to code
  6. Replace all burned/damaged wiring
  7. All wiring throughout home to meet current code
  8. Gas system must be pressure tested
  9. Ductwork must be cleaned
  10. All house plumbing must be inspected and certified; repair or replace as needed
  11. Furnace, water heater and chimney must be inspected and certified
  12. All repairs must conform to current codes
The above repairs must be completed in a timely manner before a certificate of occupancy can be
issued. Proper permits must be in place before any work can commence.

_____________________________                              _______________
Kirk Briggs, Building Inspector                                      Date
COMMISSION MEETING DATE: June 28, 2016

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order to
             Demolish. Dangerous Building Case #: EN158002


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 1592 5th St. is
unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days
or infraction tickets may be issued. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and City
Clerk be authorized and directed to execute a contract for demolition with the lowest
responsible bidder or staff may issue infraction tickets to the owner, agent or
responsible party if they do not demolish the structure.

Case# & Project Address: # EN158002 – 1592 5th St.

Location and ownership: This structure is located on 5th St. between W. Southern and
W. Forest and is owned by Donald Cheeks.

Staff Correspondence: A dangerous building inspection was conducted on 5/27/2015.
The Notice and Order to Repair was issued on 8/14/2015. On 5/5/2016 the HBA
declared the structure substandard and dangerous.




Financial Impact: CDBG

Budget action required: None

State Equalized value:     $ 20,800.

Estimated cost to repair: $ 50,000

Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
Notification procedures:
   1) Title search is performed so all interested parties are notified.
   2) All notifications are posted on the structure.
   3) All notifications are mailed by certified mail with a return card for signature.
Owner Contact/Mailings:
    •   8/14/15 - Notice & Order
    •   8/28/15 – Owner contacted SAFEbuilt & would schedule an interior inspection the
        following week. – No contact & nothing scheduled.
    •   9/21/15 – HBA Meeting notice posted & mailed certified for the 10/1/15 meeting.
    •   9/28/15 – Owner scheduled Interior Inspection for 10/5/15.
    •   10/1/15 – HBA Declared as Dangerous at their meeting. Owner did not attend.
    •   10/5/15 – Trades inspection was performed. After the Trades inspection was completed;
        staff decided to take the case back to the HBA with the new information.
    •   10/23/15-HBA Meeting notice posted & mailed certified for the 11/5/15 meeting.
This property had been before the HBA 5 times & tabled for most of them so the owner could
either submit a timeline with costs to repair the home or to sell it. Nothing had been submitted
nor any sales.
Permits obtained: None.
        If you disagree with the decision of the City Commission, you have the right to file a petition for
superintending control in the Circuit Court for the County of Muskegon within 21 days after the City
Commission concurs.

SAFEbuilt pictures from Interior Inspection:




Ceiling.
                                                          Sink area.
                              Basement.
Interior electrical outlet.




Bathroom.
                              Basement.
Exterior Pictures:




Front of home.                2nd floor wood exposure-paint.




Garage roof-moss
                              Mossy side roof.
Roofing materials falling.
              CITY OF MUSKEGON - CODE COMPLIANCE DEPARTMENT
                  933 TERRACE ST STE 202, MUSKEGON, MI 49440
                      (231) 724-6702 (Office), (231) 724-6790 (Fax)
                    DANGEROUS BUILDING REPORT - 1592 5TH ST
Exterior Inspection noted:
   1) Shed - Accessory structure is not maintained in good repair. Siding is missing & wood is
       exposed & not properly sealed, painted, or varnished.
   2) Garage - Overhead, sliding, or swing door is broken or missing parts so it may not work
       properly.
   3) Garage - Roof is totally deteriorated - must be replaced.
   4) Have eave boards that are rotted or missing.
   5) Trim is broken, missing, loose, or incomplete.
   6) Trim is bare wood - must be painted, varnished or sealed.
   7) Exterior trim has peeling paint that needs to be properly scraped and needs to be
       protected from weather by properly applied water-resistant paint or waterproof finish.
   8) Foundation walls have missing mortar or open cracks.
   9) Window trim is broken or missing.
   10) Window sill is broken, missing or rotted.
   11) Window has glazing that is missing or deteriorated.
   12) All structures - Roof has shingles that are deteriorated, missing, and need replacing.
       Many areas are moss covered.
   13) There are areas of the roof where the roof and home meet that are badly deteriorated.
   14) Contact SAFEbuilt for a Trades Inspection of the interior if you dispute any of this within
       15 days of this notice.


This listing is a list of exterior items. An interior inspection had not been completed. You would
need to contact SAFEbuilt for a trades inspection to get a complete listing of any additional items
that need to be completed.

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT
THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING
AS SET FORTH IN SECTION 10-61 OF THE MUSKEGON CITY CODE.
                 DANGEROUS BUILDING INSPECTION REPORT
                              10/07/2015

Owner CHEEKS DONALD W/BETTY J TRUST
     1488 OAK AVE
     MUSKEGON, MI 49442
Enforcement # EN158002
Property Address: 1592 5TH ST
Parcel # 24-205-426-0005-00
Date completed: 10/5/15
DEFICENCIES:
  1. House to be rewired to code
  2. Smoke alarms to be installed to code
  3. Electric service to be replaced to code
  4. The furnace and water heater have been removed and some ducts are missing.
      Need to replace both and all missing ducts including a new thermostat.
  5. New garage door
  6. New roof on garage
  7. Needs all new plumbing and water heater and tubs
  8. New drywall
  9. Lead abatment
  10. new doors and windows
  11. Needs insulation
  12. New floor coverings
  13. Paint inside and out

_____________________________                    _______________
Kirk Briggs, Building Official                               Date
COMMISSION MEETING DATE: June 28, 2016

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order to
             Demolish. Dangerous Building Case #: EN1600650


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 1761 S Getty St.
is unsafe, substandard, a public nuisance and that it be demolished within thirty (30)
days or infraction tickets may be issued. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and City
Clerk be authorized and directed to execute a contract for demolition with the lowest
responsible bidder or staff may issue infraction tickets to the owner, agent or
responsible party if they do not demolish the structure.

Case# & Project Address: # EN1600650 – 1761 S. Getty St.

Location and ownership: This structure is located on Getty St. between E. Larch Ave.
and E. Laketon Ave. and is owned by Jeffery York.

Staff Correspondence: A dangerous building inspection was conducted on 9/25/2015.
The Notice and Order to Repair was issued on 3/25/2016. On 5/5/2016 the HBA
declared the structure substandard and dangerous.




Financial Impact: General Funds

Budget action required: None

State Equalized value:     $ 13,900.

Estimated cost to repair: $ 55,000.

Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
Notification procedures:
   1) Title search is performed so all interested parties are notified.
   2) All notifications are posted on the structure.
   3) All notifications are mailed by certified mail with a return card for signature.
Owner Contact: None.
Permits obtained: None.
        If you disagree with the decision of the City Commission, you have the right to file a petition for
superintending control in the Circuit Court for the County of Muskegon within 21 days after the City
Commission concurs.

Interior:




Front of home:                                            Rear of home/garge:
                    CITY OF MUSKEGON - CODE COMPLIANCE DEPARTMENT
                        933 TERRACE ST STE 202, MUSKEGON, MI 49440
                            (231) 724-6702 (Office) (231) 724-6790 (Fax)
                        DANGEROUS BUILDING REPORT - 1761 S GETTY ST
Inspection noted (exterior only):
Garage:
1) Overhead, sliding, or swing door is broken or missing parts so it may not work properly.
2) Is open and not secure.
Roof:
1) Roof is totally deteriorated - must be replaced.
2) Rafter tails are broken or rotted.
3) Rafters are bowed and the roof is sagging. Roof rafters need bracing in the attic.
4) Has eave boards that are rotted or missing.
5) Roof has shingles that are deteriorated and need replacing.
Siding, Trim, Windows & Doors:
1) Siding has holes in it or is rotted or missing.
2) Siding is loose or falling off.
3) Has broken siding.
4) Siding has peeling paint--and is not protected from weather by a properly applied water resistant paint
or finish. This must be properly scraped before painting.
5) Is not protected from weather by a properly applied water-resistant paint or waterproof finish. Surface
must be scraped prior to applying any water -resistant paint or waterproof finish.
6) Trim is broken, missing or incomplete.
7) Trim is rotted.
8) Trim is bare wood - must be painted, varnished or sealed.
9) Exterior trim has peeling paint that needs to be properly scraped and needs to be protected from
weather by properly applied water-resistant paint or waterproof finish.
10) Window is not weathertight and in good repair.
11) Window(s) has/have broken or cracked glass.
12) Window(s) are painted shut and are needed for egress or ventilation-make windows operable.
13) Operable window(s) does/do not have a screen - - must cover the complete bottom sash from April
30th thru September 30th.
14) Window has glazing that is missing or deteriorated.
15) Door hardware is broken, missing or incomplete.
16) Door does not have a lock.
17) Door does not fit tight-install weatherseal.
18) Screen door is missing.
19) Door threshold is broken, rotted or missing.
Foundation:
1) Foundation walls have missing mortar or open cracks.
2) Foundation walls have peeling paint. Paint must be properly scraped prior to painting.
This listing is a list of exterior items. An interior inspection had not been completed. You would need to contact
SAFEbuilt for a trades inspection to get a complete listing of any additional items that need to be completed.
BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN DETERMINED THAT THE
STRUCTURE MEETS THE DEFINITION OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN
SECTION 10-61 OF THE MUSKEGON CITY CODE.
COMMISSION MEETING DATE: June 28, 2016

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order to
             Demolish. Dangerous Building Case #: EN1600654


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 1363 7th St. is
unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days
or infraction tickets may be issued. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and City
Clerk be authorized and directed to execute a contract for demolition with the lowest
responsible bidder or staff may issue infraction tickets to the owner, agent or
responsible party if they do not demolish the structure.

Case# & Project Address: # EN1600654 – 1363 7th St.

Location and ownership: This structure is located on 7th St. which is bounded by 7th St.,
Park St. & Washington Ave. (triangle shaped block) and is now owned by the County of
Muskegon Treasurer.

Staff Correspondence: A fire had happened to this structure on 10/17/2015. The main
fire damage is most noticeable to the rear of the structure which faces Park St. The
Notice and Order to Repair was issued on 3/3/2016. On 5/5/2016 the HBA declared the
structure substandard and dangerous.


Financial Impact: CDBG

Budget action required: None

State Equalized value:     $ 20,200.

Estimated cost to repair: Loss due to fire.

Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
Notification procedures:
   1) Title search is performed so all interested parties are notified.
   2) All notifications are posted on the structure.
   3) All notifications are mailed by certified mail with a return card for signature.
Additional Notes:
The owner had not made any contact with SAFEbuilt at the time of the fire for a fire inspection
to be performed. They also did not have insurance.
Since the fire; the County Treasurer had foreclosed on this for delinquent taxes. They have also
been notified since the beginning of this case through certified letters as they showed up as
having an interest in the property.
Owner Contact: None.
Permits obtained: None.
        If you disagree with the decision of the City Commission, you have the right to file a
petition for superintending control in the Circuit Court for the County of Muskegon within 21
days after the City Commission concurs.




Front of the home.                                  Rear of the structure.




South side from the rear.                           2nd floor from the rear.
COMMISSION MEETING DATE: June 28, 2016

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order to
             Demolish. Dangerous Building Case #: EN1600652


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 1524 Hoyt St. is
unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days
or infraction tickets may be issued. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and City
Clerk be authorized and directed to execute a contract for demolition with the lowest
responsible bidder or staff may issue infraction tickets to the owner, agent or
responsible party if they do not demolish the structure.

Case# & Project Address: # EN1600652 – 1524 Hoyt St.

Location and ownership: This structure is located on Hoyt St. between E. Grand Ave.
and E. Forest Ave. and is now owned by the Muskegon County Treasurer.

Staff Correspondence: A dangerous building inspection was conducted on 5/22/2015.
The Notice and Order to Repair was issued on 3/25/2016. On 5/5/2016 the HBA
declared the structure substandard and dangerous.




Financial Impact: CDBG or General Funds

Budget action required: None

State Equalized value:     $ 14,200.

Estimated cost to repair: $ 60,000.

Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
Notification procedures:
   1) Title search is performed so all interested parties are notified.
   2) All notifications are posted on the structure.
   3) All notifications are mailed by certified mail with a return card for signature.
Additional Notes:
The County Treasurer had foreclosed on this for delinquent taxes. They have also been notified
since the beginning of this case through certified letters as they showed up as having an interest
in the property.
Owner Contact: None.
Permits obtained: None.
        If you disagree with the decision of the City Commission, you have the right to file a petition for
superintending control in the Circuit Court for the County of Muskegon within 21 days after the City
Commission concurs.




Front of home.                                            Electric mass knocked off of home.




Branch inside of home.
                                                          Tree on roof (south side).
                               AGENDA ITEM NO. _______________
                       CITY COMMISSION MEETING __________________________




TO:        Honorable Mayor and City Commissioners

FROM:      Frank Peterson, City Manager

DATE:      June 23, 2016

RE:        Skate Park Fund Agreement


SUMMARY OF REQUEST:
The City Commission’s 4th Quarter Budget Reforecast for FY 2015-16 included a $10,000 expenditure
for improvements to the Skate Park at Seyferth Park. Staff is requesting permission to utilize those
dollars to establish a fund at the Community Foundation for Muskegon County to allow for additional
contributions to be made by interested community members.


FINANCIAL IMPACT:
None.


BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
To approve the Non-Profit Support Services Agreement with the Community Foundation for Muskegon
County, and authorize the Mayor to sign.


COMMITTEE RECOMMENDATION:
                    COMMUNITY FOUNDATION for MUSKEGON COUNTY
                      NONPROFIT SUPPORT SERVICES AGREEMENT

                               MUSKEGON SKATE PARK FUND


AGREEMENT made June ____, 2016, between the City of Muskegon (the “Client”) and the
COMMUNITY FOUNDATION for MUSKEGON COUNTY (the "Foundation"), a Michigan
nonprofit corporation.

The Foundation shall provide the Client the services outlined in Schedule A, for the fees
described. Either party may terminate this agreement upon 60 days written notice to the other
party.

The Client agrees to provide the Foundation with any and all records and data necessary for the
Foundation to provide the Client with the services set forth. Further, the Client warrants that
such records and data provided shall be accurate and true and the Foundation may rely on such
records and data in fulfilling its obligations hereunder. Further, the Client shall cooperate in any
audit of the Foundation for which information related to the services provided hereunder is
requested by the Foundation’s auditors. The Client agrees to provide the Foundation with any
and all information needed to fulfill the Foundation’s obligations hereunder on such forms and in
such format as may be requested by the Foundation.

This Agreement and its Schedule contain the entire understanding of the parties and shall not
be supplemented with any other term or condition unless such term or condition is in writing and
specifically incorporated by amendment to this agreement.

The Foundation accepts the property transferred to it by the Client and its contributors and
agrees to hold, administer and distribute it as provided in this document.


                                      MUSKEGON SKATE PARK FUND



                                      By:____________________________________________
                                            Stephen Gawron, Mayor, City of Muskegon



                                      COMMUNITY FOUNDATION for MUSKEGON COUNTY



                                      By:____________________________________________
                                            Chris A. McGuigan, President/CEO




                                           06/22/16
                                                     SCHEDULE A


The Foundation agrees to accept gifts and other deposits designated for the Muskegon Skate
Park Fund (the “Fund”). The purpose of the Fund is to support the efforts to repair, upgrade
and install (or re-install) a skate park in the City of Muskegon.

•   A minimum deposit of $500 is required to open the Fund and a balance of $250 must be
    maintained unless the Client requests to close the Fund.

•   The Foundation agrees to provide tax receipts to individuals or organizations that make gifts
    to the Fund. Gift solicitations by the Client must be in accordance with the Foundation’s
    Donor Initiated Fundraising Policy.

•   The Foundation agrees to maintain a database of the donors and will provide online access
    to the Client.

•   The Foundation will invest the gifts in a money market account and/or certificates of deposit
    and will add the interest earned to the Fund on a monthly basis.

•   The Foundation agrees to make disbursements from the Fund to qualified 501(c)(3)
    organizations, schools, or units of government upon the receipt of a written request from the
    Client’s Commission, including minutes of the meeting authorizing the disbursement.

•   If the balance of the Fund falls below the minimum, the Foundation may choose to pay out
    the balance to the Client or other qualified organization and close the Fund.

•   Any disbursements from the Fund must be for the stated purpose of the Fund. The
    Foundation reserves the right to withhold a disbursement from the Fund if it is not for the
    stated purpose cited above.

•   Each calendar year, the Foundation will charge an administrative fee of 1% of any amounts
    received in that year, with a minimum fee level of $250. The $250 minimum administrative
    fee will be deducted from the Fund in the first calendar quarter of each year. The remaining
    administrative fee, if any, will be calculated and deducted from the Fund on a quarterly
    basis. In the year the Fund is created, the minimum administrative fee level of $250 will be
    prorated and deducted in the calendar quarter in which the Fund is created. The fee
    structure may periodically be evaluated and adjusted.




k:\dvlp\funds\agreements\2016\city of muskegon skate park 6-16.docx




                                                      06/22/16
                                 AGENDA ITEM NO. _______________
                         CITY COMMISSION MEETING __________________________




TO:         Honorable Mayor and City Commissioners

FROM:       Frank Peterson, City Manager

DATE:       June 23, 2016

RE:         LC Walker Arena Lease Agreement


SUMMARY OF REQUEST:
As the City continues to manage the LC Walker Arena, staff’s top priorities are to reduce or eliminate
General Fund subsidies and strategically improve the arena in a manner that provides for more
frequent use and higher-quality experience for tenants and event attendees. The greatest way to
accomplish this is to add value in ways that do not disrupt ice utilization, which is the facility’s greatest
revenue source. Accordingly, staff is proposing a lease agreement and corresponding development
agreement with West Michigan Rum Company, LLC to provide for the buildout and leasing of
approximately 5,000 square feet of space in the concourse area of the Arena, adjacent to the corner
of Western Avenue and 4th Street. The West Michigan Rum Company will operate a distillery and
restaurant in this space that will active the Western Avenue side of the building and add to the food
and beverage opportunities in the LC Walker Arena on event days. The lease has an initial 5- year
term with nine three-year extension options. Rent shall be $10.00 per square foot – or approximately
$4,166.66 per month initially.


FINANCIAL IMPACT:
Development costs are estimated between $300,000 and $350,000. Annual rental income is estimated at
$50,000.


BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
To authorize staff to sign the agreements and begin the due diligence period as outlined in the
Development Agreement.


COMMITTEE RECOMMENDATION:
                                             LEASE

       This lease (“Lease”), is made effective as of _________________, 2016 (Effective
Date”) by and between the City of Muskegon Downtown Development Authority, a Michigan
municipal corporation , 933 Terrace Street, Muskegon, MI 49440 (“Landlord”), and West
Michigan Rum Company, LLC, a Michigan limited liability company, of 470 W. Western
Ave., Muskegon, MI 49440 (“Tenant”).

       1.      Description of Premises and Leased Premises. In consideration of the rents and
covenants to be paid, performed and observed by Tenant, Landlord leases to Tenant and Tenant
accepts from Landlord that certain space in what is commonly known as the LC Walker Arena,
including the Annex located at 470 W. Western Ave., Muskegon, MI 49440 as legally described
on Exhibit A and consisting of _______________ square feet (“Premises”) and depicted on the
drawing attached as Exhibit B (“Leased Premises”). The parties shall work together
cooperatively with respect to the design of the Leased Premises, which may result in a change to
Exhibit B and the number of square feet being leased.

        2.      Term. The term of this lease shall be for five years, with nine three year options,
which may be exercised by Tenant providing Landlord with written notice of such not less than
sixty days from the expiration of the application term or option. The term shall commence on
either the date the Tenant receives its Distilled Spirits Plant License from the Michigan Liquor
Control Commission for its intended use or the Delivery Date (as defined herein) whichever last
occurs. Each renewal period shall be on the same terms and conditions as this Lease.

       3.      Rent

               a.      Base Rent. Tenant shall pay to Landlord annual rent of $10.00 per square
       foot of rentable lease space as shown on Exhibit A. The rent shall be payable in equal
       monthly installments (the “Rent”) in advance on the 1st day of each month of the term.
       The Rent shall be payable at the above office of Landlord without abatement, deduction
       or setoff. For example, if Tenant rents 5,000 square feet, rent would be $4,166.66 per
       month. No rent shall be due during the first six months of the term during which Tenant
       will be conducting pre-opening equipment installation, and testing and development of its
       product. In the seventh month of the term, Rent shall be reduced to 25% of its original
       amount, and increase by 25% each month until the full Rent rate is achieved.

               b.       Additional Rent. Tenant shall also pay to Landlord as “Additional Rent,”
       on demand, an amount equal to its “Pro-Rata Share” (which for purposes of this Lease
       shall be a fraction, the numerator of which is the square footage of the Leased Premises
       and the denominator of which is the total square footage of the Premises) of all expenses
       actually incurred by Landlord for (a) CAM (as defined below) expenses incurred by
       Landlord; (b) commonly used dumpsters; and, (c) garbage service. Tenant shall pay a
       monthly amount equal to Landlord’s reasonable estimate of these annual costs, and which
       Tenant shall pay in advance, on the first day of each month during the Term.
       Not less often than once every 12 months, Landlord shall provide to Tenant a statement
       of costs, and with the statement a reconciliation of the monthly estimate of Tenant’s Pro-



                                                                                          1
       Not less often than once every 12 months, Landlord shall provide to Tenant a statement
       of costs, and with the statement a reconciliation of the monthly estimate of Tenant’s Pro-
       Rata Share as appropriate, with any excess or deficiency being applied or added to
       Tenant’s next installment of Additional Rent. All other sums that Tenant is required to
       pay under the terms of this Lease shall also be paid as Additional Rent. Tenant shall be
       entitled on reasonable advance written notice to Landlord, and at Tenant’s cost, to inspect
       Landlord’s books and records as they may relate to the statements submitted by Landlord
       to Tenant for Additional Rent.

               c.      Property Taxes. Tenant shall also pay before delinquent, all real estate
        taxes for the Leased Premises and personal property taxes for personal property used
        therein.

         4.      Common Areas. So long as Tenant is not in default under this Lease, Tenant, its
agents, employees, customers, and invitees, shall have the use, in common with all others to
whom the Landlord has granted or may later grant rights to use them, of the sidewalks, parking
areas, and drives designated by Landlord, as these shall exist from time to time, for the Premises
(“Common Areas”). During the Term Landlord, Landlord’s agents or permitted third parties
shall perform all necessary maintenance (“CAM”) to the Common Areas (including, without
limitation, general cleaning, snow removal, grass cutting, parking lot cleanup, repairs of exterior
light fixtures, and light bulb replacement).

        5.      Utilities. The Leased Premises shall be separately metered for gas, electricity,
water and sewer. Tenant shall pay all charges for gas, electricity, water, power, telephone cable
television and internet service used, rendered or supplied upon or in connection with the Leased
Premises, and shall indemnify the Landlord against any liability or damages on such account.
Tenant will have no responsibility to pay for utilities outside of the Leased Premises, provided all
of Tenants exterior signage shall be wired through meter serving the Leased Premises.

        6.     Right of Landlord to Lease. The Landlord covenants and warrants that it is in
lawful possession and control of said Leased Premises, and has the authority to enter into this
lease agreement.

        7.      Quiet Enjoyment. Landlord covenants that Tenant, on payment of all the
aforesaid installments and performing all the covenants aforesaid, shall and may peacefully and
quietly have, hold and enjoy the said Leased Premises for the term hereof. Landlord agrees that
there are no restrictions applicable to the Leased Premises which affect and limit the right of
Tenant to exercise any of the rights granted to Tenant by this lease. Landlord agrees that it will
not grant any easements on the Leased Premises, or create any restrictions thereto, during the
term of the lease without the prior consent of Tenant.

         8.     Use of Premises. Tenant is granted the right during the term of this lease, or any
renewals hereof, to occupy and use the Leased Premises for operating a distillery, bar and
restaurant. In the event Tenant does not obtain all necessary licenses for the operation of the
distillery and bar from the Michigan Liquor Control Commission within (18) months of the
Effective Date, either party may terminate this Lease immediately thereafter.



                                                                                           2
         9.      Tenant's Acceptance of Leased Premises As Is. Landlord shall deliver the
Leased Premises with “Landlord’s Work,” as defined herein, completed (“Delivery Date”). If
Tenant takes possession of the Leased Premises, Tenant shall be deemed to accept the same in its
then “AS IS, WHERE IS” condition, subject to Landlord’s obligation to complete any so-called
punchlist items and repair any defects in construction. Tenant acknowledges that Landlord shall
not be required to make any renovations or improvements to the Leased Premises except for
Landlord’s Work as defined in this Lease. Landlord shall construct the Leased Premises in
accordance with the blueprints attached Exhibit C (“Landlord’s Work”). Tenant shall not be
liable for any cost or expense incurred by Landlord in completing Landlord’s Work, all of which
shall be Landlord’s obligation. Tenant waives any warranties, express or implied, of fitness,
liability, and usefulness for Tenant’s particular purpose or otherwise, except to the extent
specifically set forth in Exhibit C hereto.

        Landlord covenants to deliver to Tenant possession of the Leased Premises with
Landlord’s Work complete and all regulatory approvals and sign-offs received by the Delivery
Date but not later than 120 days from the date of the Agreement to Proceed as defined in the
Development Agreement (“Development Agreement”) among Landlord, Tenant and the City of
Muskegon of even date (“Delivery Date Deadline”). If for any reason Landlord is unable to
deliver possession of the Leased Premises by the Delivery Date Deadline, Landlord, prior to the
Delivery Date Deadline, shall provide written notice to Tenant of the date on which Landlord
anticipates delivery to Tenant of the Leased Premises (the “Late Delivery Date”), which date
shall be no later than Sixty Days (60) after the Delivery Date Deadline. If Landlord does not
deliver the Leased Premises to Tenant in accordance with the Lease by the Late Delivery Date,
then Tenant shall have the right to terminate this Lease (“Delivery Termination Right”) without
penalty upon the Thirtieth (30th) day following the date on which Tenant provides written notice
(“Delivery Termination Notice”) to Landlord of Tenant’s intent to exercise its Delivery
Termination Right (“Effective Termination Date”), which notice must be given, if at all, anytime
during the period commencing on the day following the Late Delivery Date and continuing until
the Thirtieth (30th) day following the Late Delivery Date (provided, however, that Tenant may
not terminate the Lease, even if Tenant has provided Delivery Termination Notice, if Landlord
has delivered the Leased Premises to Tenant in accordance with this Lease prior to the Effective
Termination Date). Upon such termination on the Effective Termination Date, neither party
shall have any further obligation or liability to the other relating to this Lease.

        10.     Maintenance. Tenant shall, at its own expense, make all necessary repairs and
replacements within the Leased Premises, including pipes, heating system, plumbing system,
window glass, fixtures and all other appliances belonging thereto, all equipment used in
connection with the Leased Premises, and the sidewalks, curbs and vaults adjoining or
appurtenant to the Leased Premises. Such repairs and replacements ordinary as well as
extraordinary and structural and non-structural, shall be made promptly, when necessary. All
repairs and replacements shall be in quality and class at least equal to the original work. On
default of Tenant in making necessary repairs or replacements, Landlord may, but shall not be
required to make such repairs and replacements for Tenant's account, and the expenses thereof
shall constitute and be collectible as Additional Rent. Landlord shall be solely responsible for all
necessary repairs and maintenance of the Premises except for the Leased Premises.



                                                                                           3
        11.     Alterations or Improvements. Except as provided in the Development Plan,
Tenant shall not make any alterations, additions, or improvements to the Premises except with
the written consent of Landlord. Any alteration, addition or improvement made by the Tenant
after such consent shall have been given, and any fixtures installed as part thereof, shall at the
Landlord's option become the property of the Landlord upon the expiration or other sooner
termination of this lease, provided, however, that Landlord shall have the right to require Tenant
to remove such fixtures, additions or improvements at the Tenant's cost upon such termination of
this lease provided that in the event of any such removal, Tenant shall make all repairs
necessitated by such removal so as to leave the premises in like condition as when taken except
for ordinary wear and tear.

        12.      Public Orders and Zoning. Tenant shall, at its own expense, make all
alterations, improvements, or repairs in the Leased Premises that may be ordered by public
authorities, or required by changes in or additions to state and local zoning ordinances.

        13.     Mechanical Failures. Landlord shall not be liable for any damage to persons or
property on account of the stoppage or failure of operation of any part of the mechanical plant of
the building, or heating, air conditioning, plumbing or electrical facilities, whether for necessary
or desirable repairs or improvements thereof, or occasioned by accident or other cause. All
personal property in the Leased Premises shall be at the risk of Tenant only, and Landlord shall
not be liable for any loss of or damage to said personal property, to said premises or to Tenant
arising from the bursting, stoppage or leaking of water, gas, sewer or steampipes, the stoppage or
failure of operation of any part of the mechanical plant of the building, or heating, air
conditioning, plumbing or electrical facilities, or from any acts or neglect of co-tenants or other
occupants of the building, or any other persons.

       14.     Security. Landlord shall not be liable for any injury to the person or property of
the Tenant or any other persons caused by the criminal acts of third persons occurring at the
Leased Premises.

       15.     Insurance.

              (a)     Tenant shall, at its own expense, maintain policies of fire and extended
coverage insurance on the Leased Premises and on all of its trade fixtures, furnishings and
equipment in an amount equal to the full insurable value of such property. At the request of
Landlord at any time, Tenant shall furnish Landlord evidence that such insurance is in force.

                 (b)    Tenant shall, at its own expense, provide and keep in force general public
liability insurance protecting Tenant and Landlord against all claims for damages to person or
property or for loss of life or of property occurring upon, in, or about the Leased Premises, the
streets, gutters, sidewalks, curbs, or vaults adjacent thereto, to such limits as Landlord may
reasonably, from time to time, require in respect to injuries to any one person, in respect to any
one accident or disaster or incident of negligence, and in respect to property damage. Limits of
$1,000,000 in respect to injuries to any one person, $1,000,000 in respect to any one accident or
disaster or incident of negligence and $1,000,000 in respect to property damage are deemed
reasonable as of the date hereof.



                                                                                           4
               (c)     Tenant shall, at its own expense, provide and keep in force such other
insurance against other insurable hazards in such amounts as may from time to time be required
by Landlord, provided that such insurable hazards are commonly insured against with respect to
similar premises, due regard being given to the height and type of construction, location, use and
occupancy.

                (d)  Landlord shall obtain insurance on the Premises in amounts and with such
terms that are commercially reasonable for a building of similar size and with similar uses.

        16.     Compliance with Laws. Tenant, under penalty of forfeiture and damages, agrees
to promptly comply with all requirements of law and with all ordinances, regulations or orders of
any state, municipal or other public authority affecting all or any part of the Leased Premises and
with all requirements of the Board of Fire Underwriters or similar body and of any liability
insurance company insuring the Landlord against liability for accidents in or connected with all
or any part of the Leased Premises, and Tenant further agrees to save Landlord harmless from
any and all penalties, fines or liabilities that may result from Tenant's failure to so comply.

        17.      Destruction of Building. In the event the Premises or Leased Premises shall be
partially or totally destroyed by fire or other casualty insured under the insurance carried by
Landlord, as to become partially or totally untenantable, the damage to the Premises and Leased
Premises shall be promptly repaired by Landlord, unless Landlord shall elect not to rebuild as
provided below. The obligation of Landlord to reconstruct the Leased Premises shall be limited
to the City’s obligations under the Development Plan. All other reconstruction within the Leased
Premises shall be the sole responsibility of Tenant. In no event shall Landlord be required to
repair or replace Tenant’s trade fixtures, furnishings or equipment.
If any such fire or other casualty shall occur within eighteen (18) months of the end the term of
this Lease or any renewal term, Landlord or Tenant may, at its option, terminate this Lease with
written notice to the other party within thirty days of the destruction.

        18.      Risk of Loss. During the term of this lease, and any extension or renewal thereof,
the risk of loss with respect to all risks insurable under a fire and extended coverage insurance
policy meeting the requirements of the laws of the State of Michigan, together with the risk of
loss with respect to all uninsurable losses to the premises which are subject to the control or
prevention by Tenant, shall rest upon Tenant. (The parties agree that for purposes of interpreting
the foregoing provision, an example of an uninsurable loss which shall be the responsibility of
Tenant would be Tenant's failure, as possessor of the premises, to detect a malfunction in the
heating system during the winter, resulting in the freezing and bursting of water pipes in the
premises. If the freezing and bursting of the water pipes and consequent damage flowing
therefrom is not covered by the insurance required to be maintained by Tenant, all such damages
resulting therefrom are the responsibility of and must be paid for by Tenant.)

        19.    Subrogation. Tenant, its officers, agents or employees shall not be liable for
damage to the Leased Premises or for interruption of rent resulting from any of the perils covered
by fire and extended coverage insurance, or which would be covered if such insurance were in
force, and Landlord agrees not to sue for such damage and that every applicable policy of
insurance will contain or be endorsed with the standard waiver of subrogation clause. Landlord



                                                                                          5
shall not be liable for damage to the property or business of Tenant in or on the Leased Premises
resulting from any of the perils covered if such insurance were in force, and Tenant agrees not to
sue for such damage and that every applicable policy of insurance will contain or be endorsed
with the standard waiver of subrogation clause.

        20.     Liens and Encumbrances. Tenant covenants that Tenant will not create or
permit to be created or to remain, and will promptly discharge, at Tenant's sole cost and expense,
any lien, encumbrance or charge upon the Leased Premises or any part thereof, or upon Tenant's
leasehold interest therein, which lien, encumbrance or charge arises out of the use or occupancy
of the Leased Premises by Tenant or by reason of any labor or materials furnished or claimed to
have been furnished to Tenant or by reason of any construction, alteration, addition, repair or
demolition of any part of the Leased Premises. The existence of any construction, mechanic's,
laborer's, materialman's, supplier's or vendor's lien, or any right in respect thereof, shall not
constitute a violation of this paragraph, if payment is not yet due upon the contract or for the
goods or services in respect of which any such lien has arisen or where there is a good faith
dispute relating thereto, provided that in such event Tenant shall promptly prosecute an action to
resolve the validity of the lien. Nothing in this lease contained shall be construed as constituting
the consent or request of Landlord, expressed or implied, to any contractor, subcontractor,
laborer, materialman or vendor to or for the performance of any labor or construction, alteration,
addition, repair or demolition of or to the Leased Premises or any part thereof. Notice is hereby
given that Landlord will not be liable for any labor, services or materials furnished or to be
furnished to Tenant, or to anyone holding the Leased Premises or any part thereof through or
under Tenant, and that no mechanic's or other liens for any such labor or materials shall attach to
the interest of Landlord in and to the Leased Premises.

        21.     Assignment or Subletting. Tenant shall not sublease, assign, mortgage, or
encumber this lease without the prior written consent of the Landlord in each instance, which
consent shall not be unreasonably withheld. If this lease is assigned, or if the Leased Premises or
any part thereof is sublet, or occupied by anybody other than the Tenant, the Landlord may, after
default by the Tenant, collect rent from the assignee, subtenant, or occupant and apply the net
amount collected to the rent herein reserved. No such assignment, subletting, occupancy or
collection shall be deemed a waiver of this covenant, or the acceptance of the assignee as tenant,
or a release of the Tenant from the further performance by the Tenant of the covenants in this
lease. The consent by the Landlord to an assignment shall not be construed to relieve the Tenant
from obtaining the consent in writing of the Landlord to any further assignment.

        22.    Eminent Domain. If the Leased Premises are taken by a public authority under
power of eminent domain, Tenant shall be entitled to a pro rata refund of any rent paid in
advance. Landlord and Tenant, in any condemnation proceedings, shall each be entitled to
recover their own damages, provided that Tenant agrees to cooperate with Landlord in
Landlord's attempt to recover damages in any such condemnation proceedings and to furnish any
and all information that Landlord may request in such attempt and provided further that Landlord
agrees to cooperate with Tenant in Tenant's attempt to recover damages in any such
condemnation proceedings and to furnish any and all information that Tenant may request in
such attempt.




                                                                                           6
        23.      Default and Repossession. If the Leased Premises shall be deserted or vacated,
or if proceedings are commenced against the Tenant in any court under a bankruptcy act or for
the appointment of a trustee or receiver of the Tenant's property either before or after the
commencement of the lease term, or if there shall be a default in the payment of rent or any part
thereof for more than five days after written notice of such default by the Landlord, or if there
shall be default in the performance of any other covenant, agreement, condition, rule or
regulation herein contained or hereafter established on the part of the Tenant for more than
twenty days after written notice of such default by the Landlord, this lease (if the Landlord so
elects) shall thereupon become null and void, and the Landlord shall have the right to reenter or
repossess the Leased Premises, either by force, summary proceedings, surrender, or otherwise,
and dispossess and remove therefrom the Tenant, or other occupants thereof, and their effects,
without being liable to any prosecution therefor. In such case, the Landlord may, at its option,
relet the Leased Premises or any part thereof, as the agent of the Tenant, and the Tenant shall pay
the Landlord the difference between the rent hereby reserved and agreed to be paid by the Tenant
for the portion of the term remaining at the time of reentry or repossession and the amount, if
any, received or to be received under such reletting for such portion of the term. The Tenant
hereby expressly waives the service of notice of intention to reenter or of instituting legal
proceedings to that end. Tenant agrees to pay all expenses and damages incurred by Landlord as
a result of Tenant's default, including Landlord's attorney fees.

        24.    Curing of Tenant's Default. If Tenant shall fail to perform any of its obligations
hereunder, Landlord may, if it so elects, and after five (5) days prior notice to Tenant, cure such
default at Tenant's expense, and Tenant agrees to reimburse Landlord (as Additional Rent) for all
costs and expenses incurred as a result thereof upon demand.

        25.     Right to Show the Premises. Tenant agrees that ninety (90) days prior to the
expiration of the term of this lease, or any extension hereof, Landlord may display in and about
the Leased Premises “For Rent” or “For Sale” signs and may have reasonable access to the
Leased Premises for the purpose of exhibiting same to prospective tenants.

        26.     Surrender. Tenant shall quit and surrender the premises at the expiration of the
lease term, in as good a state and condition as the premises were at the commencement of the
term, reasonable use and wear thereof excepted.

        27.     Holding Over. It is agreed that any holding over by the Tenant upon expiration
of the term of this lease or any extension hereof, shall operate as an extension of this lease from
month to month only.

        28.     Notices. Any notice required to be given in writing under the provisions of this
lease shall be deemed to be delivered if given personally to the party entitled to such notice or if
deposited in the U.S. mail and addressed with the business address of the party entitled to such
notice with postage thereon fully prepaid.

       29.     Waiver. One or more waivers of any covenant or condition by Landlord shall not
be construed as a waiver of a subsequent breach of the same covenant or condition.




                                                                                            7
       30.      Laws of Michigan to Govern. This lease agreement shall be interpreted under
the laws of the State of Michigan.

        31.     Binding upon Successors and Assigns. This lease shall be binding upon the
parties hereto and their respective heirs, administrators, personal representatives, successors and
assigns.

                          {Signatures appear on the following 2 pages.}




                                                                                           8
Landlord –
City of Muskegon Downtown Development Authority,
a Michigan municipal corporation


By:      ________________________________
Name:    Eugene Fethke
Title:   President
Date:    June ____, 2016




                                                   9
Tenant–
West Michigan Rum Company,
a Michigan limited liability company


By:      ________________________________
Name:    Peter C. Johnson
Title:   Manager
Date:    June ____, 2016




                                            10
EXHIBIT A

 Premises




            11
 EXHIBIT B

Leased Premises




                  12
EXHIBIT C

Blueprints




             13
                              DEVELOPMENT AGREEMENT

       This Development Agreement (the “Agreement”) is effective _____________, 2016
(“Effective Date”), among the City of Muskegon, a Michigan municipal corporation, (“City”),
City of Muskegon Downtown Development Authority, a Michigan municipal corporation
(“DDA”), and West Michigan Rum Company, LLC, a Michigan limited liability company
(“Developer”).

                                       BACKGROUND

       A.      City owns a building known as the LC Walker Arena (the “Building”), which is
located at 470 W. Western Ave., Muskegon, MI 49440 on the real property described on Exhibit
A (“Project Property”).

       B.     Developer has proposed to lease and develop a portion of the Building, as shown
on the diagram attached as Exhibit B (the “Project Space”). The City will build out the Project
Space in accordance with the Development Plan submitted by Developer and attached to this
Agreement as Exhibit C (the “Development Plan”) and the Project Plans as defined herein and
attached as Exhibit D.

       C.      In order for Developer to obtain licensing with the Michigan Liquor Control
Commission (“License”), City has agreed to convey the Building to DDA, and DDA has agreed
to accept ownership of the Building (“Property Transfer”). In no event shall the Property
Transfer take place until after the License has been granted.

      D.     The development and operation of the Project Space in accordance with the
Development Plan and this Agreement is referred to in this Agreement as the “Project”.

                                        AGREEMENT

                                         ARTICLE I
                                        DEFINITIONS

       The following definitions shall apply in the interpretation of this Agreement:

        “Applicable Law” means all mandatory laws, statutes, codes, acts, ordinances, orders,
judgments, decrees, injunctions, rules, regulations, permits, licenses, authorizations, directions
and requirements of all federal, state or local governments, departments, commissions, boards,
courts, authorities, agencies, officials and officers of governments which now or at any time
hereafter may be applicable to and enforceable against the relevant work in question.



                                                1
        “Development Schedule” means the development schedule set out in the Development
Plan as the same may be amended or modified from time to time with the approval of City;

        “Event of Default” means if City, DDA or Developer fails or defaults, in the
performance of an obligation under this Agreement, including, without limitation, failure to meet
any deadlines or milestones set forth in the Development Schedule, and if such failure or default
continues unremedied for a period of 20 days after written notice from a non-defaulting party of
such failure or default.

       “Project” means, collectively, the Project Space and all improvements to be constructed
thereon;

       “Project Property” means real property depicted on Exhibit A hereto; and,

       “Project Plans” means the blue prints, construction plans and specifications relating to
the construction and development of the Project evolving from the Development Plan, as
amended from time to time, with the written approval of all parties.

                                    ARTICLE 2
                           DEVELOPMENT OF PROJECT SPACE

       2.1     Objectives.

               Both City and Developer acknowledge common objectives which include the
construction of a distillery, bar and restaurant within the Project Space to increase foot traffic in
and around the Building, and the downtown Muskegon area in general.

       2.2.    Development of Project Space.

               City agrees to construct the Project Space in accordance with the Development
Plan and the Project Plans (“City Work”), including obtaining all necessary approvals and
permits to complete City Work. Once City Work is complete and the Project Space is turned
over to Developer, Developer shall install interior finishes, décor and electronics as more
specifically described in the Development Plan (“Developer Work”) including obtaining all
necessary approvals and permits to complete Developer Work. Upon completion of Developer
Work, Developer shall operate the Project within the Project Space. In constructing the Project,
both Parties agree to comply with all Applicable Laws as well as the terms of this Agreement.

               The Development Plan shall track with the following phases:

                     (i)    Upon full execution of this Agreement, the parties shall engage
       Concept Design Studio to prepare the Project Plans. Once the Project Plans are complete
       and approved in writing by both the City and the Developer, City will seek bids for the
       City Work. The cost of such drawings shall be shared equally between City and
       Developer.




                                                 2
                      (ii)    After the parties agree as to the Project Plans, Developer shall
       enter into the lease with the DDA attached as Exhibit E (the “Lease”), and Developer
       shall apply for licensure (“Licenses”) with the Michigan Liquor Control Commission
       (“MLCC”). The legal fees incurred in connection with the preparation and execution of
       this Agreement and the Lease shall be shared equally between City and Developer. The
       cost obtaining the Licenses shall be paid solely by Developer.

                       (iii) After Developer has received initial approval of the Licenses from
       MLCC and the City has received all bids for City Work, City and the Developer shall
       agree in writing to proceed with the Project (“Agreement to Proceed”) Upon full
       execution of the Agreement to Proceed, City shall commence the City Work and transfer
       title to the Building to the DDA. Either party may elect not proceed.The cost of the City
       Work shall be paid solely by City.

                      (iv)   Once the City work is complete or sooner if all Parties agree,
       Developer shall commence the Developer Work. The cost of the Developer Work shall
       be paid solely by Developer.

                       (v)    Following completion of the City Work and Developer Work and
       complete all necessary testing. Developer will then conduct pre-opening operations and
       open for business to the public. The cost of testing, pre-operations and opening the
       Project shall be paid solely by Developer.

       2.3    City Obligations.

               With respect to the City Work, the City shall, at its own cost and expense, except
as otherwise provided in this Agreement:

              (a)     retain and oversee the performance of the Project architect and any other
                      consultants for the Project;

              (b)     ensure that all agreements with the Project architect and other consultants
                      are on terms that provide for a release of any copyright in plans, designs,
                      and other similar property (to the extent that such plans, designs, and other
                      similar property may be used in the Project) and on terms that permit City
                      the right to assume such agreements without interference by the other
                      contracting party and without payment of any penalty;

              (c)     obtain all other necessary governmental and other third party approvals
                      pertaining to the City Work, including any necessary site plan approvals;

              (d)     enter into all necessary development, site plan, servicing and other
                      governmental and utility agreements in respect of the Project;




                                                3
              (e)    obtain the building permit and other necessary governmental approvals,
                     consents, permits and licenses required for construction and operation of
                     the Project in accordance with the Project Plans, Development Plan and
                     this Agreement.

              (g)    oversee the preparation of the tender packages, the bidding process and the
                     selection of the successful contractors for the Project;

              (h)    ensure that the general construction contract and the other construction
                     contracts and consulting agreements permit City the right to assume such
                     contracts without interference by the other contracting party and without
                     payment of any penalty;

              (i)    ensure that such performance bonds, labor and materials bonds, other
                     bonds and sureties and such guarantees and warranties as are required by
                     City have been provided or arranged, with City being shown as an obligee
                     thereunder or other party benefited thereby;

              (j)    arrange for satisfactory insurance for the Project;

              (k)    except as specifically stated in the Development Plan, be responsible for
                     all costs pertaining to the proposed development of the Project and all
                     third party costs and expenses incurred by or on behalf of the City during
                     the preconstruction and construction phases in respect of the Project and
                     the preconstruction and construction activities pertaining to the Project;
                     and,

              (l)    establish, review, update and finalize the Development Schedule.

       2.4    Project Integration.

               The following terms shall apply to the integrated development and operation of
the Project Space:

              (a)    Developer will use reasonable efforts to coordinate construction activities
                     so as to minimize disruption to the Building outside the Project Space;

              (b)    City shall use all reasonable efforts to organize and coordinate the
                     Building in a manner which minimizes disruption to Development Work
                     and which ensures convenient access to the Project Space.




                                               4
           2.5   Developer Access.

         Developer and its representatives and consultants shall have access to the Project Space
at all times during construction and shall have the right to attend site meetings, among other
things, for the purpose of monitoring preconstruction activities and confirming that such
preconstruction activities are being proceeded with substantially in accordance with the Project
Plans, Development Plan and shall have access, upon reasonable prior notice at all reasonable
times, to all of the material, reports (including inspection and testing reports), studies, models
and other documentation related to the Development Plan, including, without limitation, shop
drawings, working drawings and construction details and, upon request, Developer shall be
expeditiously provided with copies of all such documentation. Any cost in providing such
materials shall be shared equally by City and Developer.

           2.6   Standard of Performance.

                 City and Developer shall both perform the services and functions to be performed
by it in a diligent and efficient manner, in keeping with the standards of the industry for projects
comparable to the Project and in that regard, shall exercise the same degree of care, skill and
supervision as would be exercised by a reasonable and prudent person who is experienced in
performing like services and functions for projects of similar size, quality and use to those of the
Project.

                                            ARTICLE 3
                                          TERMINATION

           3.1   Rights of Termination.

                In addition to any other rights or remedies available to the parties under this
Agreement or Applicable Law, if an Event of Default shall have occurred the non-defaulting
party may immediately terminate this Agreement upon written notice to the other party. In
addition, either City or Developer may terminate this agreement upon written notice to the other
parties at any time prior to execution of the Agreement to Proceed or in the event Developer is
unable to obtain the License. In the event this Agreement is terminated, the Lease shall become
null and void.

           3.2   Remedies.

           Any termination of this Agreement shall be with prejudice and the sole remedy of the
Parties.

                                      ARTICLE 4
                                   MISCELLANEOUS

        4.1.    Amendment. Except as hereafter provided, this Agreement and any document or
plan referred to herein may only be amended in writing, signed by all Parties.




                                                 5
        4.2.   Recording and Binding Effect. The obligations under this Agreement are
covenants that run with the land, and thus bind successors in title of the Property. Any Party may
record this Agreement at any time with the Muskegon County Register of Deeds.

       4.3.  Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the enforceability or validity of the remaining provisions and this
Agreement shall be construed in all respects as if any invalid or unenforceable provision were
omitted.

        4.4.    Notices. All notices, approvals, consents and other communications hereunder
shall be in writing and, except when receipt is required to start the running of a period of time,
shall be deemed given: (i) when delivered in person; (ii) when sent by fax or email (the sender
shall also send "hard copy" following the fax or email; however, the notice shall be effective
upon the transmission of the fax or email); (iii) two (2) days after depositing in the custody of a
nationally-recognized receipted overnight delivery service with delivery fees prepaid; or (iv) five
(5) days after posting in the United States Mail first-class or registered or certified mail, postage
prepaid and return receipt requested. Notices shall be sent to the parties as follows:

To City:       Frank Peterson
               City Manager
               933 Terrace Street
               Muskegon, MI 49443-0536
               231-724-6724
               frank.peterson@shorelinecity.com

To Developer: Peter C. Johnson
              468 East Circle Drive
              North Muskegon, MI 49445
              231-726-2550
              pj@powerhousedistillery.net

To DDA:        Gene Fethke
               71 West Webster
               Muskegon, MI 49440
               616-722-2375
               Email:

       4.5     Waiver. No failure or delay on the part of any party in exercising any right,
power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, power, or privilege under this Agreement preclude further
exercise thereof or the exercise of any other right, power, or privilege. The rights and remedies
provided in this Agreement are cumulative and not exclusive of any rights and remedies
provided by law.




                                                 6
       4.6.    Governing Law. This Agreement is being executed and delivered and is
intended to be performed in the State of Michigan and shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of the State of
Michigan that are applied to contracts made and to be performed in the State of Michigan
without reference to conflicts of law principles.

       4.7.    Authorization. The parties affirm that their representatives executing this
Agreement on their behalf are authorized to do so and that all resolutions or similar actions
necessary to approve this Agreement have been adopted and approved.

        4.8.   Assignment. This Agreement may not be assigned by any party without the prior
written consent of both other parties.

        4.9     Counterparts. This Agreement may be executed in any number of counterparts,
either by original or electronic signature, all of which when taken together shall be treated as the
fully executed Agreement.

                          {Signatures appear on the following 3 pages.}




                                                 7
DEVELOPER-
West Michigan Rum Company,
a Michigan limited liability company

By:      ______________________________
Name:    Peter C. Johnson
Title:   Manager
Date:    June ____, 2016




                                          8
CITY-
City of Muskegon,
a Michigan municipal corporation


By:
Name: Stephen Gawron
Title: Mayor
Date: June ____, 2016


By:
Name: Ann Cummings
Title: City Clerk
Date: June ____, 2016




                                   9
DDA-
City of Muskegon Downtown Development Authority,
a Michigan municipal corporation


By:
Name: Eugene Fethke
Title: President
Date: June ____, 2016




                                         10
  EXHIBIT A

Project Property




      11
EXHIBIT B

Project Space




     12
                                            EXHIBIT C

                                         Development Plan

        Description of City Work                              Description of Developer Work
All Demolition                                        Acquisition and installation of all equipment,
                                                      furniture and fixtures to operate the Project
Construction of all walls, insulation, windows        Installation of all plumbing from shut-off valve
and doors all with fire rating standards              installed as part of City Work to equipment
applicable for the Project                            that needs plumbing and sinks
Construction of ceiling with the Project Space        Wiring and installation of secondary lighting
Installation of all plumbing for the water            Construction of the Bar, including bar finishes,
supply (hot and cold), fire suppression and           electrical, lighting and plumbing
drainage for the Project, including shut-off
valves and installation of all rest room fixtures,
toilets, urinals, sinks and partitions. City may
use current fixtures from current rest rooms.
Wiring and installation of all power for the          All network infrastructure, including
Project per code, including primary lighting          computers, routers, CAT 5, cabling and wiring
and stubbed power for Project including
secondary lighting and equipment.
Installation of all HVAC ductwork and                 All necessary software for operation of the
equipment, including kitchen hoods, hot water         Project, including POS systems, spirit
heaters, boiler, and distillery ventilation.          manufacturing software and management
                                                      systems, website and apps
Construction of a new entrance to the Project         All exterior signage
Space at the corner of fourth and W. Western,
including a roof (canopy), foyer, doors, door
hardware, railings façade and sidewalks
All floor repairs and finishes                        Installation of sound systems, surveillance
                                                      equipment
Installation of all gas supply lines and stubbed      All wall/décor treatments with the Project
shut off valves for the Project.                      Space


      This list may be modified during the creation of the complete Development Plan.




                                                     13
EXHIBIT D

Project Plans




     14
EXHIBIT E

  Lease




   15

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