City Commission Packet 05-13-2008

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     CITY OF MUSKEGON
      CITY COMMISSION MEETING
                         MAY 13, 2008
    CITY COMMISSION CHAMBERS@ 5:30 P.M.
                                AGENDA
□ CALL TO ORDER:
o PRAYER:
□ PLEDGE OF ALLEGIANCE:
o ROLL CALL:
o HONORS AND AWARDS:
o INTRODUCTIONS/PRESENTATION:
□ CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
     B. Membership Agreement - Middle Atlantic-Great Lakes Organized
        Crime Law Enforcement Network. PUBLIC SAFETY
     C. 2008 Water Treatment Chemical Bids - Hydrofluorosilic Acid. WATER
        FILTRATION
     D. 2008 Water Treatment Chemical Bids - Aluminum Sulfate.          WATER
        FILTRATION
     E. Accept Resignations and Make Appointments to Various Boards and
        Committees. CITY CLERK
     F. Consideration of Bids for Roblane. Quarterline to Marlane (H-1636).
        ENGINEERING
     G. Consideration of Bids for Hudson, Barney to Wilson {W-696) and Ireland,
        Hudson to Franklin (W-697). ENGINEERING
     H. Conveyance of Easement to MDEQ. ENGINEERING
□ PUBLIC HEARINGS:
     A. Amendments to Brownfield Plan for Betten Auto Dealerships Project.
        PLANNING & ECONOMIC DEVELOPMENT
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
•   UNFINISHED BUSINESS:
•   NEW BUSINESS:
        A. MERS Health Care Savings Program {HCSP) for Medicare Eligible
           Retirees. FINANCE
         B. First Quarter 2008 Budget Reforecast. FINANCE
        C. Brownfield Development and Reimbursement Agreement -                                              Betten.
             PLANNING & ECONOMIC DEVELOPMENT
         D. Dangerous            Buildina            Muskegon           Hotel          Bids     for      Demolition.
             INSPECTIONS
•   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 localed 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 lO minutes if previously registered with City Clerk.)
•   ADJOURNMENT:
ADA POLICY'. THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON, PLEASE CONTACT ANN
MARIE BECKER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TOO:
(231) 724-4172.
Date:     May 13, 2008
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Becker, City Clerk
RE:       Approval of Minutes




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



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         MAY 13, 2008
    CITY COMMISSION CHAMBERS@ 5:30 P.M.
                               MINUTES

   The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, May 13,
2008.
   Mayor Warmington opened the meeting with a prayer from Pastor Penny
Johnson from the Oakcrest Church of God after which the Commission and
public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
  Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Clara Shepherd, Lawrence Spataro, Sue Wierenga, and Chris
Carter, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Ann Marie Becker.
   Absent: Commissioner Steve Wisneski (excused}.
2008-41 INTRODUCTIONS/PRESENTATION:
Mayor Warmington announced that Tom Powers of the United Way presented
the City of Muskegon with the 2007 Bronze Award plaque.
Commissioner Shepherd recognized Stephanie Frey, Miss Shoreline: and Anais
Felt, Miss Teen Shoreline.
2008-42 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, April 22nd_
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Membership Agreement - Middle Atlantic-Great Lakes Organized
         Crime Law Enforcement Network. PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is requesting approval to
enter into a membership agreement with the Middle Atlantic-Great Lakes
Organized Crime Law Enforcement Network (MAGLOCLEN). MAGLOCLEN
facilities inlerjurisdictional information and intelligence exchange, in addition lo
providing analytical and technical support to aid member agencies in their
efforts to identify and apprehend organized criminals and criminal groups across
jurisdictional boundaries. Annual cost of the membership is $350.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the agreement.
      C. 2008 Water Treatment Chemical Bids - Hydrofluorosilic Acid.        WATER
         FILTRATION
SUMMARY OF REQUEST: Recommend endorsement of the lowest responsible
bidder to supply hydrofluorosilic acid - fluoride for the water filtration plant.
FINANCIAL IMPACT: Annual cost of $44,450 (based on average annual water
pumped lo mains).
BUDGET ACTION REQUIRED: None at this time. These chemicals are budgeted
annually. However, the cost increase may require a budget adjustment at a
later date.
STAFF RECOMMENDATION: Staff recommends the Mayor and City Commission
endorse the low bid received and enter into a contract with Lucier Chemical
Incorporated for fluoride.
      D. 2008 Water Treatment Chemical Bids - Aluminum Sulfate.             WATER
         FILTRATION
SUMMARY OF REQUEST: Recommend endorsement of lowest responsible bidder
to supply aluminum sulfate for the water filtration plant.
FINANCIAL IMPACT: Annual cost of $74,645 (based on average annual water
pumped to mains).
BUDGET ACTION REQUIRED: None at this time. These chemicals are budgeted
annually. However, the cost increase may require a budget adjustment at a
later date.
STAFF RECOMMENDATION: Slaff recommends the Mayor and City Commission
endorse the low bid received and enter into a contract with US Aluminate Co.
for aluminum sulfate.
      E. Accept Resignations and Make Appointments to Various Boards and
         Committees. CITY CLERK
SUMMARY OF REQUEST: To accept resignations from Brenda Loyd, James Davies
and Greg Roberts: and appoint Barbara Vanfossen to the District Library Board,
Ofelia Jimenez to the Equal Opportunity Committee, and Kevin Woods to the
Income Tax Board of Review.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval
COMMITTEE RECOMMENDATION:         The Community           Relations   Committee
recommended approval at their May 5th meeting.
      F. Consideration of Bids for Roblane, Quarterline to Marlane (H-1636).
         ENGINEERING
SUMMARY OF REQUEST:           Award the Roblane reconstruction contract to
Thompson Brothers of 388 McMillan Rd. since they were the lowest responsible
bidder with a total bid price of $85,312.
FINANCIAL IMPACT: The reconstruction cost of $85,312 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Thompson Brothers.
      G. Consideration of Bids for Hudson, Barney to Wilson (W-696) and Ireland,
         Hudson to Franklin (W-697). ENGINEERING
SUMMARY OF REQUEST: Award the Hudson and Ireland construction contract to
Brenner Excavating out of Hopkins since they were the lowest responsible bidder
with a total bid price of $194,173.10. The contract consists of water main and
services replacement in Hudson and Ireland as per the referenced limits.
FINANCIAL IMPACT: The construction cost of $194,173.10 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Brenner Excavating.
      H. Conveyance of Easement to MDEQ. ENGINEERING
SUMMARY OF REQUEST: Convey an easement to MDEQ for the wetland area
north of Shoreline Drive east and west of the Ryerson Creek south of the railroad
tracks as was required by the permit which was issued for the construction of
Shoreline Drive. Also, authorize the Mayor to sign the easement documents.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION:          Authorize the Mayor to sign the easement
documents.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the consent agenda as read.
ROLL VOTE: Ayes:  Shepherd, Spataro, Warmington, Wierengo, Carter, and
           Gawron
            Nays: None
MOTION PASSES
2008-43 PUBLIC HEARINGS:
      A. Amendments to Brownfield Plan for Betten Auto Dealerships Project.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan.                 The
amendments are for the inclusion of the Betten Auto Dealerships project in the
Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax Increment Financing would be used to
reimburse the developer and the City for Act 381 "eligible expenses" incurred in
association with development of the Betten properties, starting in 2008. The
developers/owners estimate that full development of the Betten properties will
involve over $13 million in private investment (in addition to property
acquisition), resulting in a substantial increase in the city income, and local and
school property taxes generated by the property.
"Eligible expenses" of over $3 million would be reimbursed. The estimated tax
capture schedule is included as Attachment S-3 in the proposed Brownfield Plan
Amendment. The City is also authorized by law to capture up to $75,000/year to
pay for "reasonable and actual administrative and operating costs" of the
Brownfield Redevelopment Authority. As such, $10,000/year of the local tax
increment will be captured to reimburse the Brownfield Authority for its
administrative costs, for the duration of the Brownfield Plan.
After all eligible costs incurred by the parties are reimbursed, the BRA is
authorized to continue to capture local taxes for five more years for deposit into
a Local Site Remediation Revolving Fund. Current tax capture estimates
indicate that approximately $1,048,000 could be captured from the taxes on the
Betten properties for deposit into this local fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for May 13, 2008 at their April 22, 2008 meeting. Since that time, a
notice of the public hearing has been sent to the taxing jurisdictions, MDEQ, and
MEGA of the proposed amendment and its financial impact on each
jurisdiction, and has been published twice in the Muskegon Chronicle. In
addition, the Brownfield Redevelopment Authority approved the Plan
amendment on April 1, 2008 and recommended that the Muskegon City
Commission approve the Plan amendment. The BRA will review the Plan
revisions at their May 13, 2008 meeting and will make an additional
recommendation to the Commission regarding the revised Plan.
The public hearing opened to hear and consider any comments from the
public. No public comments were made.
Motion by Commissioner Carter, second by Commissioner Shepherd to close the
public hearing and approve the amendments to the Brownfield Plan for Belten
Auto Dealerships Project.
ROLL VOTE: Ayes:   Spataro, Warmington, Wierengo, Carter, Gawron, and
           Shepherd
             Nays: None
MOTION PASSES
2008-44 NEW BUSINESS:
      A. MERS Health Care Savings Program (HCSP} for Medicare Eligible
         Retirees. FINANCE
SUMMARY OF REQUEST: You may recall that several months ago the City
switched from subsidizing MediGap insurance coverage through a company
called Magna Care to paying an equivalent cash stipend directly to retirees.
This was done both to simplify administration and to give retires greater flexibility
in choosing insurance coverage to best meet their needs. One of the issues that
came up was that, as direct cash payments to the retiree, the stipend would be
subject to federal income tax. Working with MERS we have found a way to
address this issue. This involves the establishment of healthcare savings program
accounts (HCSP) for eligible retirees. Basically, running the money through the
HCSP accounts will allow us to provide the retiree with the same benefit level,
tax-free.
Active non-union and 517M (DPW) employees currently have HCSP accounts
that they will carry into retirement. Additional employee groups are expected
to participate. As these employees attain Medicare eligibility, the need to
maintain separate retiree HCSP accounts will diminish.
FINANCIAL IMPACT: Approximately $3,500/year administrative fee to be paid
from the City's retiree healthcare funding vehicle account at MERS. The cash
stipend option helps to control the City's retiree healthcare obligation. Being
able to make these payments in a tax-advantaged manner will make this
option much more attractive to both current and future retirees.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of three MERS Healthcare Savings Program
Participation Agreements for Medicare eligible retirees receiving cash stipend
for healthcare and/or Rx. The three agreements are structured around whether
the retiree has opted out of medical benefits ($52.08/mo) Rx benefits
($43.08/mo) or both medical and Rx ($93.08/mo).
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the three MERS Healthcare Savings Program Participation Agreements for
Medicare eligible retirees.
ROLL VOTE: Ayes:   Warmington, Wierengo, Carter, Gawron, Shepherd, and
           Spataro
             Nays: None
MOTION PASSES
      B. First Quarter 2008 Budget Reforecast. FINANCE
SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2008
Budget Reforecast which outlines proposed changes to the original budget that
have come about as result of changes in policy priorities, labor contracts,
updated economic conditions, or other factors. For the next meeting, an action
item will be placed on the agenda for adoption of the budget reforecast
together with any additional changes deemed necessary by Commissioners.
FINANCIAL IMPACT: The biggest change is an adjustment of projected income
tax revenues from $6.9 million to ·$7.2 million. This upward adjustment is based on
an analysis of recent collection history and allows us to eliminate from the 2008
budget the projected transfer of $300,000 from the Budget Stabilization fund.
Other revenue items are generally on target with projections as are most
operating budgets. We are, of course, hopeful that the Governor's proposal to
increase revenue sharing by four percent is successful. This would impact the
last three payments (of six) for the City's 2008 fiscal year. Significantly, employee
healthcare coverage was renewed at a 6% increase which is within our budget
projection.
Aside from income tax, the other significant changes to the 2008 budget
included in the first quarter reforecast are in the area of capital improvements.
Most of these changes reflect the reallocation of costs due to failed/withdrawn
special assessment projects.
BUDGET ACTION REQUIRED: Self-explanatory.
STAFF RECOMMENDATION: The City Commission should review the Reforecast to
ensure it reflects their policy initiatives. At the next City Commission meeting,
staff will request formal approval of the Reforecast and related budget
amendments.
No action needed.
      C. Brownfield Development and Reimbursement Agreement - Belten.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: As part of the Brownfield Plan and Tax Increment
Finance (TIF) capture for the Betten project, it is necessary to have a
Development Agreement in place. In addition, the document includes a
Reimbursement Agreement for the Site Assessment Loan, in the amount of
$250,000.
FINANCIAL IMPACT: The Agreement will insure that the taxes are captured and
Betten is reimbursed for the agreed upon eligible expenses. In addition, the Site
Assessment Loan will be repaid through the TIF capture in a timely manner.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the resolution.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the resolution and authorize staff to approve any and all other necessary
documents and authorize the Mayor and/or Clerk to execute such.
ROLL VOTE: Ayes:   Carter, Gawron, Shepherd, Spataro, Warmington, and
           Wierengo
            Nays: None
MOTION PASSES
     D. Dangerous Building      -   Muskegon    Hotel   -   Bids   for   Demolition,
        INSPECTIONS
SUMMARY OF REQUEST: The Inspection department requests that the City
Commission award a bid for demolition of the property located at 593 W.
Western to the lowest responsible bidder.
FINANCIAL IMPACT: General Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:        To award the bid to Griffelle in the amount of
$33,999.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the bid for demolition of 593 W. Western Avenue.
ROLL VOTE: Ayes:   Carter, Gawron, Shepherd, Spataro, Warmington, and
           Wierengo
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 5:58 p.m.


                                           Respectfully submitted,



                                            \i,v~ \         \Tuc,L,      fc.c   1   f'_J_,
                                                                                             1
                                           Ann Marie Becker, MMC
                                           City Clerk
                             City Commission Meeting
                                Tuesday May 13, 2008



TO:           Honorable Mayor and City Commissioners

FROM:         Anthony L. Kleibecker, Director of Public Safety

DA TE:        April 29, 2008

SUBJECT:      Membership Agreement-Middle Atlantic-Great Lakes Organized Crime
              Law Enforcement Network


Summary of Request:

The Director of Public Safety is requesting approval to enter into a membership
agreement with the Middle Atlantic-Great Lakes Organized Crime Law Enforcement
Network (MAGLOCLEN). MAGLOCLEN facilitates interjurisdictional information and
intelligence exchange, in addition to providing analytical and technical support to aid
member agencies in their efforts to identify and apprehend organized criminals and
criminal groups across jurisdictional boundaries. Annual cost of the membership is $350.


Financial Impact:

None

Budget Action Required:

None

Staff Recommendation:

Approval of the agreement.
                                          AGREEMENT

 THIS AGREEMENT, made t h i s ~ - - - day of _ _ _ _ _ _ _ _ _ _ _ _20
 b-etween the Middle Atlantic - Great Lakes Organized Crime Law Enforcement Network (the
 "Association") which was established in 1981 by the following original member agencies, the
 Delaware State Police, Indiana State Police, Maryland State Police, New Jersey State
.commission of Investigation, New Jersey State Police, New York County District Attorney's
 Office, New York State Organized Crime Task Force, New York State Police, Pennsylvania
 Crime Commission, and the Pennsylvania State Police, and any member agency subsequently
added in accordance with the Association's Bylaws ("member agencies"), and


                                       ("THE AGENCY")

pr<;>vides. that:

WHEREAS, the Association and the Agency recognize the serious problems posed by the
continuing presence and growth of organized criminal activities in our society; and

WHEREAS, the Agency recognizes that it has the legal and equitable obligation to investigate
this criminal activity for the purposes of preventing future criminal activity or of seeing proven
offenders brought to justice; and

 WHEREAS, the Agency recognizes that the nature of this criminal activity necessitates the
.structured cooperation of.the Agency and the Association in order for the Agency to meet its
 legal and equitable obligation,

THEREFORE, it is agreed that:

FIRST: The Agency will regularly contribute information to a pointer information system to be
developed and maintained by the Association.

SECOND: The Agency will cooperate with other member agencies in activities undertaken to
further the goals and policies of the Association when the Agency is reasonably called upon to
do so by an act, decision or resolution of the Policy Board.

THIRD: The Agency will abide by the decisions of the Association's Policy Board, as
determined by vote of the Board in accordance with the Association's Bylaws.

FOURTH: The Agency agrees to abide by the Association's Bylaws, and any amendment to
the Bylaws which are duly made.
FIFTH: The Agency agrees to participate in the Association in compliance with 28 CFR 23 of
the United States Federal Criminal Intelligence Systems Operating Policies.

SIXTH: The Pennsylvania Office of Attorney General as Grantee of the Association nor the
Agency accepts liability for damages resulting from the acts of agents. of individual members of
the Association. Each agency accepts liability for damages resulting from the acts of its own
agents to the extent covered by applicable law. However, to the extent consistent with
applicable sovereign immunity laws, the Grantee accepts liability for damages resulting from
the acts of its agents only.                 ·

SEVENTH: Notwithstanding any other provision of this agreement, the Agency is not required
to take any action which is contrary to any applicable statute, law or regulation, or contrary to ·
the best interests and priorities of the Agency as determined by the Agency.

The Agency agrees that the terms of this Agreement are binding between the Agency and the
Association and also between the Agency and each Association member agency which signs or
has signed an Agreement containing the tenns of this Agreement. Accordingly, the Agency
agrees with the Association and with each Association member agency to abide by the terms of
this Agreement.                                                    ·

This Agreement shall remain in force until. such time as the Association is dissolved by three-
quarters vote of the Association's Policy Board, or until such time as the Agency withdraw&, or
until such time as the Agency is removed from the Association in accordance with procedures
contained in the Association's Bylaws.



                                                                Chairman
                                             The Middle Atlantic-Great Lakes Organized Crime
                                                  Law Enforcement Network Association



                                                                  Signature
                                                           Chief Executive Officer



                                                                   Agency

Rev. 12/6/97
     01/13/00
Date:       May 13, 2008
To:         Honorable Mayor and City Commission
From:       Water Filtration Plant
RE:         2008 Water Treatment Chemical Bids



SUMMARY OF REQUEST:

Recommend endorsement of lowest responsible bidder to supply
hydrofluorosilic acid - fluoride for the water filtration plant

FINANCIAL IMPACT:

Annual cost of $44,450.00 (based on average annual water pumped to
mains).

BUDGET ACTION REQUIRED:

None at this time. These chemicals are budgeted annually. However
the cost increase may require a budget adjustment at a later date.

STAFF RECOMMENDATION:

Staff recommends the Mayor and City Commission endorse the low bid
received and enter into contract with Lucier Chemical Incorporated (LCI)
for fluoride.
                                      MEMORANDUM

                                           5/6/08

TO:            M. AL-SHA TEL, DEPUTY DIRECTOR

FROM:          R. VENEKLASEN, WATER FILTRATION SUPERVISOR

RE:            FLUORIDE (HYDROFLUORISILIC ACID)



HISTORY
Fluoride is applied to the water being treated to enhance the prevention of dental caries
(cavaties). In 1955 Muskegon was the control sample for the City of Grand Rapids when
they became the first city to apply fluoride for improved dental health. The test was to
run for ten-years but was abandoned after about five-years because the results were so
compelling. That is when the application of fluoride began in Muskegon.

We bid fluoride similarly to aluminum sulfate - in a cooperative effort with Holland,
Wyoming, Grand Rapids, Grand Haven, and Muskegon Heights - through the City of
Grand Rapids purchasing department.

CONDITIONS
As with the previous chemical bids, it was anticipated there would be a significant
increase in the cost of fluoride for a couple of obvious reasons. First, the increase in fuel
costs for transport. Second, fluoride has been more difficult to procure for the past year.
In fact, we must order a minimum of thirty days in advance of our need. On a couple of
occasions the lead time has been six-weeks. The bids received reflect an 83% increase
in cost from last year.

BIDS AND RECOMMENDATION
Attached is a bid tabulation sheet. Note that only two companies participated in the
bidding this year. The lowest responsible bidder is our present supplier; Lucier Chemical
Incorporated (LCI).

It is my recommendation that the Mayor and City Commission endorse the lowest
responsible bidder, Lucier Chemical Inc. (LC!) and enter into a one-year contract to
supply fluoride for the Water Filtration Plant at a cost of $635.00 per ton FOB.
                                                                                                   FOR REFERENCE IJSE ONLY
                                                                         BID TAB
BID REFnsss-ss-o,                          ITl;M1A    ll EM 1B   .'Yf~1C       ,g:;~ 2
BID OPENING DArn: MAY 2, 2008             420 'rQ""  420TONS    4 'f•NS       EM    ENCY
FOR: HYDROFLUORISILIC ACID                 HYDRO·     HYDRO•     HYDRO·       AS NEEDED

BUYER: ~e~y
# BIDDERS SOLICITED: 10
nr:::op L
               WOJC~~~OWSKI
            r::n TghT N
                                         FLUOR~ILIC FLU•-"" IC FLU•-"'LIC
                                           !-2!?..    ..A2PN      !-21.f!..
                                                                               DELIVERY
                                                                                 c~:::,-i;
                                                                              LlllHID     111\11



                                YEAR1

                                YEARZ

                                V""R 3
                                           •e•s.oo    •636.00    <635.00       •15 388.00
   LCILrD
                                             NB         NB          NB             NB

                                             NB         NB          NB             ....
                                           •s7o.oo    <870.00     •870.00       $350.00
   ALEXANDER CHEMICAL
                                             NB         NB          NB             NB

                                             N"         "B          NB             NB




    SOLVAY FLUORIDES                         NB

    PENCCOINC                                NB
                                                                                                                                   FOR REFERENCE USE ONLY
                                                                             BID TAB
BID REF #885-66-06                            SUBMITTAL    DISCOUrio: DISCOUNT:   DISCOUNT:   DIS-,vvN,:   DISCOUNT: DISCOUNT:
BID OPENING DATE: IIIIAY 2, 2008
FOR: HYDROFLUORlSILIC ACID                    LITERATURE   2m,TIER     JOlru _,
                                                                                WORKFW::T• 1 .,,., FIL

                                   YEAR1

                                   YEAR2
                                   y,,,,, '
                                                 •~o

    LCILTD                                       YE~



                                                 "'"
    ALEXANDER CHEMICAL




    SOLVAY FLUORIDES

    PENCCOfNC
Date:      May 13, 2008
To:        Honorable Mayor and City Commission
From:      Water Filtration Plant
RE:        2008 Water Treatment Chemical Bids



SUMMARY OF REQUEST:

Recommend endorsement of lowest responsible bidder to supply
aluminum sulfate for the water filtration plant

FINANCIAL IMPACT:

Annual cost of $74645.00 (based on average annual water pumped to
mains).

BUDGET ACTION REQUIRED:

None at this time. These chemicals are budgeted annually. However
the cost increase may require a budget adjustment at a later date.

STAFF RECOMMENDATION:

Staff recommends the Mayor and City Commission endorse the low bid
received and enter into contract with US Aluminate Co. (USALCO) for
aluminum sulfate.
                                 MEMORANDUM

                                      5/1/08

TO:           M. AL-SHATEL, DEPUTY DIRECTOR

FROM:         R. VENEKLASEN, WATER FILTRATION SUPV

RE:          ANNUAL ALUMINUM SULFATE (ALUM) BID




PURPOSE
Aluminum sulfate, or alum, is the coagulant used at the Water Filtration Plant to
remove the material suspended in the raw, Lake Michigan, water being treated.
The suspended particles are attracted to the alum molecules, the particles and
molecules agglomerate, then settle by gravity.

HISTORY
We have been bidding alum in conjunction with the cities of Holland, Wyoming,
Grand Rapids, Grand Haven, and Muskegon Heights. The City of Grand Rapids
purchasing department performs the bidding process on behalf of the other
municipalities.

Similarly to the recent sodium hypochlorite bid, alum was bid separately from the
other chemicals due to various reasons such as advantageous contract
extensions.

CONDITIONS
It was anticipated the chemical costs would rise in 2008 due to increased
transportation costs and the global market. In the case of Alum, the global
market has a high demand for sulfuric acid - an integral component of alum. The
result is a cost increase of approximately 75% from last year - $202.08 to
$355.45 per ton.

BIDS AND RECOMMENDATION
Attached is the bid tabulation sheet. Please note that only two manufacturers
elected to bid with the low bid being our current supplier.

It is my recommendation that the Mayor and City Commission endorse the lowest
responsible bidder, US Aluminate Company (USALCO) and enter into a one-year
contract to supply aluminum sulfate for the Water Filtration Plant at a cost of
$355.45 per ton FOB.
                                                                                                             FOR REFERENCE USE ONLY
                                                                       BID TAB
BID Re, eo85•77-10                         ITEM 1A           ITEM 1B               ITE :1c          ITEM2
BID OPENING DATE: APRIL 22, 2008          =oToNs:          1170 TflNS:        2oooro• ·llUISITION      TAX     TARGET
BUYER: TONY WOJCIAKOWSKI                                                                             INCENTIVE   AREA
DEPT• 1 'KR FIL

                              YEAR1

                              YEAR2
                              VCH>3
                                       r-r\RtU'\L


   GENERAL CHEMICAL



                                          •~v

   US ALUMINATE CO (USALCO)              YcS




   CHRYSAN INDUSTRIES

    C & S CHEMICAL
Date:        May 13, 2008
To:          Honorable Mayor and City Commissioners
From:        City Clerk
RE:          Accept Resignations and Make Appointments to
             Various Boards and Committees



SUMMARY OF REQUEST: To accept resignations from Brenda Loyd, James Davies and
Greg Roberts; and appoint Barbara VanFossen to the District Library Board, Ofelia Jimenez
to the Equal Opportunity Committee, and Kevin Woods to the Income Tax Board of Review.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval.



COMMITTEE RECOMMENDATION: The Community Relations Committee recommended
approval at their May 5th meeting.
Date:         May 13, 2008
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:     Consideration of Bids for:
        Roblane, Quarterline to Marlane (H-1636)
SUMMARY OF REQUEST:
Award the Roblane reconstruction contract to Thompson Brothers of 388 McMillan Rd.
since they were the lowest responsible bidder with a total bid price of $85,312, see
attached bid tabulation.


FINANCIAL IMPACT:
The reconstruction cost of $85,312 plus engineering cost which is estimated at an
additional 15%.

BUDGET ACTION REQUIRED:
None.



STAFF RECOMMENDATION:
Award the contract to Thompson Brothers



COMMITTEE RECOMMENDATION:




O:\ENGINEERING\COMMON\2008 PROJECTS MASTER\PROJECTS\ROB LANEICONAWA rob lane 05-13-08.doc
                                                                                                      H· 1636 ROBLANE AVE., QUARTERLINE RD. TO MARLANE ST.

                                                                                                                                BID TABULATION - 04/15/08
                                        CONTRACTOR     SCHIPPERS EXC., INC.  CL TRUCKING & EXC., LLC KAMMINGA & ROODVOETt rvADEL STABILIZATION, IN(   VAN'S CONTRACTING     EE'S TRENCHING SVC, IN(
                                            ADDRESS 9829 LAKE MICHIGAN DR.      256 PARMETER RD.      435 BROADMOOR AVE., S    2500 N. OCEANA DR.       41 E. CLEVELAND        120176TH ST. SW
                                           CITY/ST/ZIP WEST OLIVE, Ml 49460       IONIA, Ml 48846     GRAND RAPIDS Ml 49512       HART, Ml 49420     COOPERSVILLE Ml 49404 BYRON CENTER, Ml 493'15
              ITEM OF WORK                 UNIT  QTY  UNIT PRICE TOTAL PRICE UNIT PRICE  TOTAL  PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL  PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
 AGGREGATE BASE, 6 INCH                    SYD 1550     $     4.75   $      7,362.50     $     3,80   $      5,890.00 $       5.25   $      8,137.50   $    6.50   $     10,075.00   $     4.85   $      7,517.50    $     4.90 $        7,595.00
 CATCH BASIN SPECIAL DETAIL                EACH     4 $ 1,500.00 $           6,000.00    $ 1,185.00   $      4,740.00   $ 1,000.00 $        4,000.00   $ 1,450.00 $       5,800.00   $ 1,350.00 $        5,400.00    $ 1,035.00 $        4,140.00
 CURB AND GUTTER, STD, DET 1                FT    1061 $      9.00   $      9,549.00     $     8.75   $      9,283.75   $    13.35 $       14,164.35 $     15.50 $       16,445.50 $      15.00 $       15,915.00 $       15.70 $       16,657.70
 DR STRUCTURE COVER, ADJ, CASE 1           EACH     1 $     575.00   $        575.00 $       330.00 $          330.00 $     360.00 $          360.00 $     550.00 $         550.00 $     450.00   $        450.00    $   370.00 $          370.00
 DR STRUCTURE COVER, MODIFIED              LB 4600 $          1.20 $        5,520.00 S         1.25 $        5,750.00 $       1.50 $        6,900.00 $      1.30 $        5,980.00 $       1.30 $        5,980.00    $     1.25 $        5,750.00
 DRIVEWAY, NONREINF CONC, 6 INCH, MODIFIE SYD   81 $         26.00   $      2,106.00     $    26.40   $      2,138.40   $    30.00 $        2,430.00 $     33.SO $        2,713.50   $    46.44 $        3,761.64 $       39.25 $        3,179.25
 HMA,3C                                    TON     140 $     66.50   $      9,310.00     $    63.35   $      8,869.00   $    63.35   $      8,869.00 $     64.00   $      8,960.00   $    81.12 $       11,356.80 $       73.50   $     10,290.00
 HMA,4C                                    TON     140 $     72.50   $ 10,150.00 $            68.98 $        9,657.20   $    68.98   $      9,657.20   $   69.00   $      9,660.00   $    87.12 $       12,196.80 S       73.50   $     10,290.00
 HVDROSEEDING                              SYD    700 $       1.00 $          700.00     $     0.70   $       490.00    $     0.75   $        525.00   $    1.00 $         700.00    $     1.25 $          875.00 S        1.05 $         735.00
l MACHINE GRADING, MODIFIED                STA    5.45 $ 2,500.00    $     13,625.00 $ 1,055.00 $            5,749.75   $ 1,200.00 $        6,540.00   S 1,250.00 $       6,812.50   $ 1,750.00   $      9,537.50    $ 1,400.00 $        7,630.00
I MANHOLE SPECIAL DETAIL                   EACH     7 $ 1,400.00 $          9,800.00     $ 1,495.00 $       10,465.00 $ 1,600.00 $         11,200.00 $ 1,450.00 $        10,150.00 $ 1,550.00 $         10,850.00 $ 1,160.00 $           8,120.00
! PAVE, REM, MODIFIED                      SYD 1347 $         2.50   $      3,367.50 $         4.05   $      5,455.35 $       4.00   $      5,388.00   $    5.50   $      7,408.50   $     4.68 $        6,303.96    $     2.75   $      3,704.25
! PLUG, CL C76 V, 15 lNCH                  EACH     2 $     150.00 $          300.00 $       205.00   $       410.00    $   300.00 $          600.00   $   150.00 $        300.00 $      250.00   $        500.00 S      150.00 $         300.00
I SEWER,CLC76V,121NCH                       FT     54 $      24.00   $      1,296.00 $        33.00 $        1,782.00 $      32.00   $      1,728.00 $     31.50 $        1,701.00 $      27.74 $        1,497.96 S       38.60 $        2,084.40
i SEWER,CLC76V,151NCH                       FT    578 $      26.00   $ 15,028.00 $            40.00   $     23,120.00   $    36.00 $       20,808.00 $     33.50 $       19,363.00 $      30.56 $       '17,663.68   $    51.25 $       29,622.50
i SEWER, CL C76, 18 lNCH                    FT      8 $      30.00 $           240.00    $    83.00   $        664.00   $    69.00   $        552.00   $   50.00   $       400.00 $       62.73 $          501.84    $   460.00   $      3,680.00
' SIDEWALK, CONC, 6 INCH                   SFT    340 $       3.00 $        1,020.00 $         2.85   $        969.00   $     3.40 $        1,156.00 $      3.20 $        1,088.00 $       5.16 $        1,754.40 $        5.35   $      1,819.00
l TOPSOIL SURFACE, FURN, 4 INCH            SYD    700 $       4.00   $      2,800.00     $     2.20   $      1,540.00 $       3.00 $        2,100.00   $    3.50 $        2,450.00   $     5.50 $        3,850.00 $        1.85 $        1,295.00
I TRAFFIC CONTROL                           LS      1 $ 2,000.00     $      2,000.00     $ 4,600.00   $      4,600.00   $ 4,800.00   $      4,800.00   $ 3,500.00 $       3,500.00 $ 1,718.00 $          1,718.00 $ 1,255.00 $           1,255.00
I WATER VALVE BAX AND COVER, COMPLETE      EACH     3 $     200.00   $        600.00     $   210.00   $        630.00   $   380.00 $        1,140.00 $     350.00 $       i,050.00 $     300.00 $          900.00    $   375.00 $        i,125.00
                                   TOTAL                                 $1 Oi ,349.00                    $102,533.45                    $111,055.05                   $115,107.00                    $118,530.08                     $119,642.10
                                                                    H- 1636 ROBLANE AVE., QUARTERLINE RD. TO MARLANE ST.

                                                                                         BID TABULATION - 04/15/08
                                                 CONTRACTOR    THOMPSON BROS, INC. ACKSON-MERKEY CONTR, IN BRENNER EXC, INC.    JACK DYKSTRA EXC., INC. FELCO CONTRACTORS, IN MCCORMICK SAND, INC.
                                                    ADDRESS     388 W. MCMILLAN RD.   555 E. WESTERN AVE.    284'1 '132ND AVE.    3677 3 MILE RD. NW        856 PULASKI AVE.     5430 RUSSELL RD.
                                                   CITY/ST/ZIP MUSKEGON, Ml 49445     MUSKEGON, Ml 49441    HOPKINS, Ml 49328   GRANO RAPIDS, Ml 49534    MUSKEGON Ml 49441    TWIN LAKE, Ml 49457
                 ITEM OF WORK                     UNIT QTY UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
1    AGGREGATE BASE, 6 INCH                       SYD    1550      $4.80     $7,440.00       $5.50     $8,525.00       $4.80     $7,440.00      $6.70    $10,385.00       $4.90      $7,595.00 S        5.18 $        8,029.00
2    CATCH BASIN SPECIAL DETAIL                   EACH      4   $1,274.00    $5,096.00     $960.00     $3,840.00    $1,260.00    $5,040.00   $1,170.00    $4,680.00    $1,100.00     $4,400.00    $ 1,400.00 $        5,600.00
3    CURB AND GUTTER, STD, DET 1                   FT    1061     $10.50    $11,140.50      $10.35    $10,981.35       $9.75    $10,344.75      $9.05     $9,602.05       $9.15      $9,708.15    $     8.05 $        8,541.05
4    DR STRUCTURE COVER, ADJ, CASE 1              EACH      1    $300.00      $300.00     $1,070.00   $1,070.00      $554.00      $554.00     $250.00      $250.00      $300.00       $300:00     $   500.00 $         500.00
5    DR STRUCTURE COVER, MODIFIED                  LB    4600      $1.25     $5,750.00        $1.80   ·$8,280.00       $1.60     $7,360.00      $1.20     $5,520.00       $1.05      $4,830.00    $     1.75 $        8,050.00
6    DRIVEWAY, NONREINF CONC, 6 INCH, MODIFIE[    SYD      81     $24.00     $1,944.00      $25.80     $2,089.80      $28.30     $2,292.30     $24.45     $1,980.45      $30.00      $2,430.00    $    23.45 $        1,899.45
7    HMA,3C                                       TON     140     $64.00     $8,960.00      $63.35     $8,869.00      $67.00     $9,380.00     $64.00     $8,960.00      $65.00      $9,100.00    $    63.35 $        8,869.00
8    HMA,4C                                       TON     140     $69.00     $9,660.00      $69.00     $9,660.00      $73.00    $10,220.00     $69.00     $9,660.00      $70.00      $9,800.00    $    68.98 S        9,657.20
9    HYDROSEEDING                                 SYD     700      $1.43     $1,001.00       $0.75      $525.00        $1.00      $700.00       $1.00      $700.00        $3.00      $2,100.00    $     0.57 $         399.00
10   MACHINE GRADING, MODIFIED                    STA    5.45    $700.00     $3,815.00     $920.00     $5,014.00     $882.00     $4,806.90   $2,000.00   $10,900.00    $1,500.00     $8,175.00    $ 1,142.75 $        6,227.99
11   MANHOLE SPECIAL DETAIL                       EACH      7   $1,428.00    $9,996.00    $1,070.00    $7,490.00    $1,190.00    $8,330.00   $1,020.00    $7,140.00    $1,400.00     $9,800.00    $ 1,693.00 $       11,851.00
12   PAVE, REM, MODIFIED                          SYD    1347      $0.50      $673.50        $3.30     $4,445.10       $3.50     $4,714.50      $4.00     $5,388.00       $2.00      $2,694.00    $     1.73 $        2,330.31
13   PLUG, CL C76 V, 15 lNCH                      EACH      2    $250.00      $500.00      $150.00      $300.00      $118.00      $236.00      $75.00      $150.00      $400.00        $800.00    $    74.00 $         148.00
!4   SEWER, CL C76 V, 12 INCH                      FT      54     $20.00     $1,080.00      $36.60     $1,976.40      $23.00     $1,242.00     $21.25     $1,'147.50     $28.00      $1,512.00    $    22.91   $      1,237:14
15   SEWER, Cl C76 V, 15 INCH                      FT     578     $21.50    $12,427.00      $33.50    $19,363.00      $25.00    $14,450.00     $25.75    $14,883.50      $32.00     $18,496.00    $    31.33 $       18,108.74
16   SEWER, Cl C76, 18 INCH                        FT       8     $28.00      $224.00       $42.80      $342.40       $34.00      $272.00      $30.00      $240.00       $50.00        $400.00    $    60.41   $       483.28
17   SIDEWALK, CONC, 6 INCH                       SFT     340      $3.00     $1,020.00        $2.95    $1,003.00       $3.20     $1,088.00      $2.85      $969.00        $4.00      $1,360.00    $     2.65   $       901.00
18   TOPSOIL SURFACE, FURN, 4 INCH                SYD     700      $2.00     $1,400.00        $4.00    $2,800.00       $2.30     $1,610.00      $4.50     $3,150.00        $6.00     $4,200.00    $     5.13   $      3,591.00
9    TRAFFIC CONTROL                               LS       1   $1,775.00    $1,775.00    $1,310.00    $1,310.00    $8,000.00    $8,000.00   $3,000.00    $3,000.00    $2,000.00     $2,000.00    $ 4,271.00   $      4,271.00
10   WATER VALVE BAX AND COVER, COMPLETE          EACH      3    $370.00     $1,110.00     $310.00      $930.00      $363.00     $1,089.00    $320.00      $960.00      $200.00        $600.00 $      208.00   $       624.00
                                        TOTAL                               $85,312.00                $98,8'14.05               $99,169.45               $99,665.50                $'100,300.15                    $101,318.16
Date:         May 13, 2008
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:     Consideration of Bids for:
        Hudson, Barney to Wilson 0/V- 696) &
        Ireland, Hudson to Franklin 0JV-697)
SUMMARY OF REQUEST:
Award the Hudson & Ireland construction contract to Brenner Excavating out of Hopkins
since they were the lowest responsible bidder with a total bid price of $194,173.10, see
attached bid tabulation. The contract consists of water main & services replacement in
Hudson & Ireland as per the referenced limits.

FINANCIAL IMPACT:
The construction cost of $194,173.10 plus engineering cost which is estimated at an
additional 15%.

BUDGET ACTION REQUIRED:
None.



STAFF RECOMMENDATION:
Award the contract to Brenner Excavating.



COMMITTEE RECOMMENDATION:




O:IENGINEERING\COMMON\2008 PROJECTS MASTER\PROJECTS\IRELAND\WORD\CONAWA Ireland & Hudson 05-13-
08.doc
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Date:         May 13, 2008
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           Conveyance of Easement to MDEQ


SUMMARY OF REQUEST:
Convey an easement to MDEQ for the wetland area north of Shoreline Dr. east &
west of the Ryerson Creek south of the rail road tracks as was required by the permit
which was issued for the construction of Shoreline Drive. Also, authorize the Mayor
to sign the easement documents.



FINANCIAL IMPACT:
None



BUDGET ACTION REQUIRED:
None at this time.



STAFF RECOMMENDATION:
Authorize the Mayor to sign the easement documents.



COMMITTEE RECOMMENDATION:
                                                                             Received   & Sealed    For Record
                                                                          MARK F. FAIRCMILD REGISTER OF DEEDS
                                                                             Muskegon    Counly    Michigan
                                                                          03/30/2009 11:50A LIBER 3806 PAGE 155




                                                    IIll 111111111111111111 111111 k!~}g~~
                                                    Mark Fa.1rchdd    I   Muskegon Co ROD 034     Page: 1 of 10 ·
                                                                                                                    S~A




                                    AGREEMENT FOR
                                 CONSERVATION EASEMENT
                            (This instrument is exempt from County and State transfer
                      taxes pursuant to MCL 207.505(a) and MCL 207.526(a), respectively)

This CONSERVATION EASEMENT is created              l'fl¾    l "/    , 2oo8, by and    between

the City of Muskegon, municipality whose address
is 933 Terrace Street, Muskegon, Michigan 49440 (Grantor) and the Michigan Department of Environmental
                                                           st
Quality (MDEQ), whose address is, Constitution Hall, 1 Floor South, P.O. Box 30458, Lansing, Michigan
48909-7958; or 525 West Allegan Street, Lansing, Michigan 48933 (Grantee);

The Gran tor is the fee simple title holder of real property located in the City of
Muskegon, Muskegon County, and State of Michigan, legally described in Exhibit A

MDEQ is the agency charged with administering Part 303, Wetlands Protection, of the Natural Resources and
Environmental Protection Act, 1994 PA 451, as amended (NREPA), and

Permittee/Grantor has applied for a Permit (MDEQ File Number 01-61-0045-P) pursuant to Part 303 to
authorize activities that will impact regulated wetland. The MDEQ evaluated the permit application and
determined that a permit could be authorized for certain activities within regulated wetlands provided certain
conditions are met, and

Permittee/Grantor has agreed to grant the MDEQ a Conservation Easement that protects the wetland
mitigation site and/or the remaining wetlands on the property and restricts further development to the area
legally described in Exhibit B. The Conservation Easement (the Easement Premises) consists of
approximately   0.30,       acres. A survey map depicting the easement premises is attached as Exhibit C. The
MDEQ shall record this Agreement with the county register of deeds.

ACCORDINGLY, Grantor conveys this Conservation Easement to Grantee pursuant to Subpart 11 of Part 21,
Conservation and Historic Preservation Easement, of the NREPA, MCL 324.2140 et seq., on the terms and
conditions stated below.

1.   The purpose of this Agreement is to protect the functions and values of existing or established wetlands
     and its natural resource values on the Easement Premises consistent with the Permit and the protection
     of the benefits to the public derived from wetlands and integral habitat, by requiring Grantor to maintain
     the Easement Premises in its natural and undeveloped condition.

2.   Except as authorized under MDEQ Permit Number 01-61-0045-P issued on _ l / :li /20 • ::i. or as
     otherwise provided in this Agreement, Granter shall refrain from, and prevent any other person from
     altering or developing the Easement Premises in any way. This includes, but is not limited to:




                                                           1
         a) Alteration of the topography;
         b) Creation of paths, trails, or roads;
         c) The placement of fill material as defined in Part 303 of the NREPA, MCL 324.30301 et seq., as
             amended;
        d) Dredging, removal, or excavation of any soil or minerals;
        e) Drainage of surface or groundwater;
        f) Construction or placement of any structure;
        g) Plowing, tilling, or cultivating the soils or vegetation;
        h} Alteration or removal of vegetation, including the planting of non-native species;
        i) Ranching
       j) Construction of unauthorized utility or petroleum lines;
       k) Storage or disposal of garbage, trash, debris, abandoned equipment or accumulation of machinery,
            or other waste materials, including accumulated vegetative debris such as grass clippings, leaves,
            yard waste, or other material collected and deposited from areas outside the Easement Premises;
       I) Use or storage of off-road vehicles including, but not limited to, snowmobiles, dune buggies, all-
            terrain vehicles, and motorcycles;
       m) Placement of billboards or signage, except as otherwise allowed in the Permit or this Agreement;
       n) Use of the wetland for the dumping of untreated stormwater at a volume that adversely impacts the
            hydrology of the wetland.

3.     Cutting down, destroying, or otherwise altering or removing trees, tree limbs, shrubs, or other vegetation,
       whether living or dead, is prohibited within the Easement Premises, except with the written permission of
       Grantee, expressly for the removal of trees or limbs to eliminate danger to health and safety; to reduce a
       threat of infestation posed by diseased vegetation; or to control invasive non-native plant species that
       endanger the health of native species.

4.    Granter is not required to restore the Easement Premises due to alterations resulting from causes beyond
      the owner's control, including, but not limited to, unauthorized actions by third parties that were not
      reasonably foreseeable; or natural disasters such as unintentional fires, floods, storms, or natural earth
      movement.

5.    Granter may perform activities within the Easement Premises consistent with the Permit or the mitigation
      requirements. Granter shall provide 5 days notice of undertaking any mitigation activity even if the
      mitigation project has been conceptually approved. Any activities undertaken pursuant to the Permit, a
      mitigation project, or this Agreement, shall be performed in a manner to minimize the adverse impacts to
      existing wetland or mitigation areas.

6.    Granter warrants that Granter has good and sufficient title to the Ease_ment Premises described in
      Exhibit B.

7.    Grantor warrants that any other existing interests or encumbrances in the Easement Premises have been
      disclosed to the M DEO.

8.    Granter warrants that to the best of Grantor's knowledge no hazardous substances or hazardous or toxic
      wastes have been generated, treated, stored, used, disposed of, or deposited in or on the property.

9.    This Agreement does not grant or convey to Grantee or members of the general public any right to
      possession or use of the Easement Premises.

10. Granter shall continue to have all rights and responsibilities as owner of the property subject to this
    Agreement. Granter shall continue to be solely responsible for the upkeep and maintenance of the
    Easement Premises, to the extent it may be required by law.                    ·

11. Grantee and its authorized employees and agents may enter the Easement Premises upon reasonable
    notice to Granter to determine whether the Easement Premises are being maintained in compliance with
    the terms of this Agreement, mitigation, or other conditions of the Permit; and for the purpose of taking
     .. ·-·- --'-'•·- __ .. : ___ l-- e-: 1, ·-~ i,... ,..,.........,nh, If r-Mntac. ic. antarinn the easement premises for purposes of




     11111111111111111111111111111 IIIII IIIII Ill 1111111111111   r-~~l~~ 1
       taking corrective actions, Granter shall be provided with 14 days notice to provide the opportunity to cure
       the failure to comply.

 12. This Agreement shall be binding upon the successors and assigns of the parties and shall run with the
     land in perpetuity unless modified or terminated by written agreement of the parties.

 13. This Agreement may be modified only in writing through amendment of the Agreement. Any modification
     shall be consistent with the purpose and intent of the Agreement.

 14. This Agreement may be enforced by either an action at law or in equity and shall be enforceable against
     any person claiming an interest in the Easement Premises despite a lack of privily of estate or contract.

 15. Grantor shall indicate the existence of this Agreement on all future deeds, mortgages, land contracts,
     plats, and any other legal instrument used to convey an interest in the Easement Premises.

 16. A delay in enforcement shall not be construed as a waiver of the Grantee's rights to enforce the
     conditions of this Agreement.

17. This Agreement shall be liberally construed in favor of maintaining the purpose of the Conservation
    Easement.

18.   If any portion of this Agreement is determined to be invalid by a court of law, the remaining provisions will
      remain in force.

19. This Agreement will be construed in accordance with Michigan law.

20.   In addition to the terms of the Permit issued by Grantee, this document sets forth the entire agreement of
      the parties. It is intended to supercede all prior discussions or understandings.

21.   Within 90 days after this Agreement is executed, Granter shall place and maintain at Grantor's expense,
      signs, fences, or other suitable markings along the Easement Premises to clearly demarcate the
      boundary of the Easement Premises.


                                         LIST OF ATTACHED EXHIBITS

Exhibit A:       A legal description of the Grantor's property, inclusive of the Easement Premises.

Exhibit B:       A legal description of the Easement Premises.

Exhibit C:       A survey map depicting the Easement Premises that also includes identifiable landmarks
                 such as nearby roads to clearly identify the easement site.

Exhibit D:      A legal description that provides a path of legal access to the Easement Premises and a map
                that indicates this access site that MDEQ staff will use for ingress and egress to and from the
                Easement Premises; or if the Easement is directly connected to a publicly accessible point,
                such as a public road, a statement is required that authorizes MDEQ staff ingress and egress
                to and from the Easement Premises with a map that clearly indicates the connection of the
                public access site to the Easement Premises.




                                              5307261
                                              L-3806 P-155
  1111111111111111 IIII II
 Mark Fairchild, Muskegon Co ROD 034
                                              03/30/2009 11:50A
                                              Pase: 3 of 10
   IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. In signing
   this Agreement, the Signatory warrants that he or she has the authority to convey the Conservation Easement
   on behalf of the Gran tor.



                                                                                         -----==--

                                                                       rfor the City of Muskegon



  STATE OF MICHIGAN }
                         } ss
  COUNTY OF tv1,5~"'.)'"'}

                IF SIGNING ON BEHALF OF AN ORGANIZATION, THIS MUST BE COMPLETED:

  The foregoing instrument was acknowledged before me this       Jj_ day of   /1Jo. 1./.
                                                                                   (1/
                                                                                                , 2orJJ'

  by Stephen J.   Warmington, the City Mayor

  of the City of Muskegon, a Municipality in the state of Michigan.

                                   ciJIJ1&J           IU!u
                                  (Signature of Notary Public)

                                   l.,nJ/;1      /Jo ffc./'"
                                  (Typed or Printed name of Notary Public)

                                         -~t?J~tA~s~£~2i,:-.Z~o~a,______ County, Michigan
                                 Acting in:

                                  My Commission Expires: -~9~-cJ='_S_-~o'l~'~O~/.~'//_-----

                                  ( c,MM,J~         IS'-" Hers ¥.<8'°"" CocN"\~
  (OR) IF SIGNING AS AN INDIVIDUAL OR MARRIED PERSON, THIS MUST BE COMPLETED:

  The foregoing instrument was acknowledged before me this _ _ day of _ _ _ _ _~ 20_

  by _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ (name[s]) _ _ _ _ _ _ _ _ (marital status).


                                 (Signature of Notary Public)


                                 (Typed or Printed name of Notary Public)

                                 Acting in: _ _ _ _ _ _ _ _ _ _ _ _ County, Michigan

                                 My Commission Expires: _ _ _ _ _ _ _ _ _ _ __




 1111111111111111 111111 Page:
Mark Fairchild, Muskeaon Co ROD 034
                                          ~!;J~rs5~A
                                                4 of 10 ·
                                                         GRANTEE:

                                                        STATE OF MICHIGAN
                                                        DEPARTMENT OF ENVIRONMENTAL QUALITY
                                                        LAND AND WATER MANAGEMENT DIVISION


                                                        ~~___, /•'L                   n~
                                                    /Eiizabet%owoo, Acting Division Chief


                STATE OF MICHIGAN}
                                                 } ss
                COUNTY OF INGHAM}

                                                                                      -t-l-..
                The foregoing instrument was acknowledged before me this~ day of          Q f"      M ck 20 0 .       q
                by Elizabeth M. Browne, Acting Division Chief, Land and Water Management Division, State of Michigan, on
                behalf of the Michigan Department of Environmental Quality.




         LYNDA KAY JONES
 NOTARY PUBLIC • STATE OF MICHIGAN
        COUNTY OF CLINTON
   My Commission Exp.!£11§._0ct. l, 20~3
Atflflg In the County of   I r-. a r,CLl::D-..
                              1__)                      Acting in: Ingham County, Michigan

                                                                                                          3___
                                                        My Commission Expires: _ _)_o=--;/~0_1__,/_,).,_0_I
                                                                                                I   I


                                                                       AFTER RECORDING, RETURN TO:
              Form Drafted By:
              The Honorable Mike Cox, Attorney General
              Department of Attorney General                           Michigan Department of Environmental Quality
              Environment, Natural Resources, and                      Land and Water Management Division
                                                                                           st
                 Agriculture Division                  ~
                                                       1
                                                                       Constitution Hall, 1 Floor South
               P.O. Box 30755                          ~               P.O. Box 30458
              Lansing, Michigan 48909                  Qc              Lansing, Michigan 48909-7958




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                                                        1111111111111111111111111111111111111111111111111111111   r.ral1~~1
                                 EXHIBIT B
                        CONSERVATION   EASEMENT - OESCRIPTION.txt

                  Easement#1
   Conservation Easement - west of Ryerson creek
An easement for conservation purposes located in Block 554 of
the Revised Plat of 1903 of the City of Muskegon (recorded in
Liber 3 of Plats, Page 71),City of Muskegon, Muskegon county,
State of Michigan described as follows
commencing at the most southerly corner of Block 556;
thence North 58A27'32" East 417.80 feet along the Northwesterly line of
lvestern Avenue;
thence North 58A23'09" East 698.10 feet along the Northwesterly line of
Western Avenue;
thence Nor·th 04Al7 '03" East 79. 03 feet to point "A" of the shoreline
Drive easement;
sa·id point "A" also being located as follows:
commence at the southwest Corner of section 30, Town 10 North, Range 16 west;
thence south 88A05'48" East 827.55 feet along the south line of said Section;
thence North 02Al7'47" East 2509.76 feet along the construction centerline
of u.s. 31-BR (seaway Drive);
thence North 40A30' 01" East 6393. 80 feet to the point ca11 ed "A";
thence North 72A28' 00" west 37. 40 feet to the POINT OF BEGINNING of the
conservation easement;
                                                 the shoreline Drive easement;
thence North 85A53 00 west 227.28 feet along
                    1   11




                                                    Shoreline Drive easement;
thence North 39,155•00" west 11.80 feet along the
                                                    shoreline Drive easement;
thence North 28A55'00" East 10.60 feet along the
thence   North 83A25'00" East   41. 60 feet;
thence   North 87"43'00" East   42.20 feet;

thence   North 78A02'00" East   121. 09 feet;

thence   North 81A07'00" East   31.80 feet;
thence   North 7lA02'00" East   29.80 feet;

thence south 05A20'00" East     7.30 feet along the westerly bank of
Ryerson creek;
thence south 25Al7' 00" west    47.50 feet along the Westerly bank of
Ryerson creek;
                                                           bank of
thence south 22A41' 56" west 33.15 feet along the westerly
Ryerson Creek to the POINT OF BEGINNING.
Note:    all distances are grid distances.
         grid distance divided by 0.99992 ~ ground distance.
                      Easement#2
   conserva·tion Easement - East of Ryei·son creek
An easement for conservation purposes located in Block 553 of
t~e Revised Plat of 1903 of the city of Muskegon (recorded in
L1ber 3 of Plats, Page 71), city of Muskegon, Muskegon county,
state of Michigan, described as follows:
commencing at the most southerly corner of Block 556;
thence North 58A27'32" East 417.80 feet along the Northwesterly line of
western Avenue;
thence North 58A23' 09" East 698 .10 feet a 1ong the Northwesterly line of
western Avenue;
thence North 04A17'03" East 79.03 feet to point "A" of the shoreline
01·i ve easement;
said point "A" also being located as follows:
commence at the southwest comer of section 30, Town 10 North, Range 16 \'/est;
thence south 88A05'48" East 827.55 feet alonq the south line of said section;
thence North 02Al7'47" East 2509.76 feet along the construction centerline
of u.s. 31-BR (Seaway Drive);
thence North 40A30' 01" East 6393. 80 feet to the point ca 11 ed "A";
thence North 18A25'25'' East 82.71 feet to the POINT OF BEGINNING of the
conservation easement;
                                          along the Easterly bank of
thence North 17A02'34" East 25.14 feet
Ryerson creek;
thence North 62A47'00" East 72.39 feet;
thence   south 87A07'Q0" East     8.70 feet;

thence   south 15A57'00" East     3.30 feet;

thence   south 49A32'00"   West   15.00 feet;

thence   south 15f.41'00" west    21.80 feet;

thence   North 81A31'00" west     16.40 feet;

thence   South 47A55'QQ" west     23.00 feet;

thence   south 84A39'00" East     24.00 feet;

thence   south 05A50'00" East     19.20 feet;

thence   south 85A54'00" west     23.60 feet;

thence   North 68Al4'00" west     35.60 feet to the POINT OF BEGINNING.

Note:    a 11 di stances are grid di stances.                       (                 ....,_
         grid di stance divided by O. 99992 = ground di stance.         0 • 05 'a A       J




             1111111111111111 111111
           Mar·k Fairchild, Muskegon Co ROD 034
                                                  ~i;}~1~~A
                                                  Pase: 8 of 1121




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                                                                                 ..
                                                              Exhibit D (Access)

The easement can be accessed through Shoreline Dr. which is a public road that is adjacent to the easement.

MDEQ staff can use said road to gain access to this easement.




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                    ~IIIIIIIIIIIIIIIIIIIIIll llllll Illllll
                     d, Muskegon Co ROD 034
                                                      .
                                                              ~~:~~~ 1
                                                              03/30/2009 11 :50A
                                                              Pase: 10 of 10




                                                                      6
               Commission Meeting Date: May 13, 2008




Date:          May 1, 2008
To:            Honorable Mayor & City Commission
From:          Planning & Economic Development Department
RE:            Public Hearing for Amendments to Brownfield
               Plan - Betten Auto Dealerships Project


SUMMARY OF REQUEST: To hold a public hearing and approve the attached
resolution approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of the Bellen Auto Dealerships project in the
Brownfield Plan.

FINANCIAL IMPACT: Brownfield Tax Increment Financing would be used to
reimburse the developer and the City for Act 381 "eligible expenses" incurred in
association with development of the Bellen properties, starting in 2008. The
developers/owners estimate that full development of the Bellen properties will involve
over $13 million in private investment (in addition to property acquisition), resulting in
a substantial increase in the city income, and local and school property taxes
generated by the property.

"Eligible expenses" of over $3 million would be reimbursed The estimated tax
capture schedule is included as Attachment S-3 in the proposed Brownfield Plan
Amendment. The City is also authorized by law to capture up to $75,000/year to pay
for "reasonable and actual administrative and operating costs" of the Brownfield
Redevelopment Authority. As such, $10,000/year of the local tax increment will be
captured to reimburse the Brownfield Authority for its administrative costs, for the
duration of the Brownfield Plan.

After all eligible costs incurred by the parties are reimbursed, the BRA is authorized
to continue to capture local taxes for five more years for deposit into a Local Site
Remediation Revolving Fund.            Current · tax capture estimates indicate that
approximately $1,048,000 could be captured from the taxes on the Bellen properties
for deposit into this local fund.
BUDGET ACTION REQUIRED: None.

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

COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for May 13, 2008 at their April 22, 2008 meeting. Since that time, a notice of
the public hearing has been sent to the taxing jurisdictions, MDEQ, and MEGA of the
proposed amendment and its financial impact on each jurisdiction, and has been
published twice in the Muskegon Chronicle. In addition, the Brownfield
Redevelopment Authority approved the Plan amendment on April 1, 2008 and
recommended that the Muskegon City Commission approve the Plan amendment.
The BRA will review the Plan revisions at their May 13, 2008 meeting and will make
an additional recommendation to the Commission regarding the revised Plan.
                                                                         2008-43{a)



      RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT

                    BETTEN AUTO DEALERSHIPS PROJECT

                                  City of Muskegon

                           County of Muskegon, Michigan




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

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

on the 13th of May, 2008, at 5:30 o'clock p.m., prevailing Eastern Time.

PRESENT:      Members

   Gawron, Shepherd, Spataro, Warmington, Wierenga, and

   Carter




ABSENT:       Members

   Wisneski

       The   following    preamble   and   resolution   were   offered     by   Member

   carter                and supported by Member        Shepherd

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

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

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

Plan Amendment to include the Betten Auto Dealerships Project (Betten Brownfield

Plan Amendment); and
       WHEREAS, the Authority has foiwarded the Bellen Brownfield Plan

Amendment to the City Commission requesting its approval of the Bellen

Brownfield Plan Amendment; and

       WHEREAS, the City Commission has provided notice and a reasonable

opportunity to the public, the taxing jurisdictions levying taxes subject to capture,

the Michigan Department of Environmental Quality, and the Michigan Economic

Growth Authority to express their views and recommendations regarding the Bellen

Brownfield Plan Amendment, as required by Act 381; and

       WHEREAS, not less than 10 days has passed since the City Commission

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

       WHEREAS, a notice of the Public Hearing on the proposed Bellen

Brownfield Plan Amendment was published twice in the Muskegon Chronicle, the

first of which was not less than 1O days before the scheduled Public Hearing; and

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

Bellen Brownfield Plan on May 13, 2008.

       NOW, THEREFORE, BE IT RESOLVED, THAT:

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

       have the following meaning unless the context clearly requires otheiwise:

      "Brownfield Plan" means the Brownfield Plan and its Amendments prepared

      by the Authority, as transmitted to the City Clerk by the Authority for

      approval, copies of which Brownfield Plan and Amendments are on file in

      the office of the City Clerk.

      "Eligible Activities" means those activities as defined by Act 381.
     "Eligible Property" means the property designated in the Brownfield Plan as

     the Eligible Property, as described in Act 381.

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

     valorem property tax on the Eligible Property.

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

     Brownfield Plan Amendment for the Betten Auto Dealership Project

     constitutes a public purpose.

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

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

     properties in the City to proceed with the Betten Brownfield Plan

     Amendment.

4.   Review Considerations. As required by Act 381, the City Commission has,

     in   reviewing   the   Betten   Brownfield    Plan   Amendment,     taken   into

     consideration    whether the     Brownfield   Plan   Amendment      meets the

     requirements set forth in Section 13 of Act 381.

5.   Capture of Tax Increment Revenues by Authority. The Authority intends to

     capture Tax Increment Revenues on the Eligible Property, as described in

     the Brownfield Plan Amendment.        The amount of captured taxable value

     estimated to result from adoption of the Brownfield Plan Amendment is

     reasonable, given the current information available. The financing of eligible

     activities as described by the Brownfield Plan appears to be feasible, and

     the Authority has the ability to arrange such financing.
    6.      Costs of Eligible Activities. The costs of eligible activities as described in the

            Brownfield Plan Amendment are reasonable and necessary to carry out the

            purposes of Act 381.

    7.      Approval and Adoption of Brownfield Plan Amendment.                  The Bellen

            Brownfield Plan Amendment as submitted by the Authority is hereby

            approved and adopted. A copy of the Brownfield Plan and all amendments

            thereto shall be maintained on file in the City Clerk's office.

    8.      Disclaimer. By adoption of this resolution and approval of the Brownfield
•           Plan Amendment, the City assumes no obligation or liability to the owner,

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

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

            Plan Amendment. The City makes no guarantees or representations as to

            the determinations of the appropriate state officials regarding the ability of

            the owner, developer or lessor to qualify for a Michigan Business Tax credit

            pursuant to, Michigan Public Act 36 of 2007, as amended, or as to the ability

            of the Authority to capture tax increment revenues from the State and local

            school district taxes for the Brownfield Plan.

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

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

    AYES:          Members

         Spataro, Warmington, Wierenga, Carter, Gawron, and

         Shepherd
NAYS:

Members   None




RESOLUTION DECLARED ADOPTED.

                               \~ ):,,~V"\),,J\\\\.,?(_L
                                     ~-       . n       (l ' \
                                Ann Marie Becker, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution

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

State of Michigan, at a regular meeting held May 13, 2008, and that said meeting

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

compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan,

1976, as amended, and that the minutes of said meeting were kept and will be or

have been made available as required by said Act.


                                      \· . . .          )\_     ·(2- . ,/
                                                      :::\W\, N, ~ > '-- ,\L,
                                        ~.v-,,_,\---..... \ \                   ,
                                        Ann Marie Becker, City Clerk
    CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT
        AUTHORITY
BROWNFIELD PLAN AMENDMENT

  BETTEN AUTO DEALERSHIPS

         May, 2008
                         City of Muskegon Brownfield Plan Amendment
                                    Bellen Auto Dealerships




            CITY OF MUSKEGON
        BROWNFIELD REDEVELOPMENT
                AUTHORITY
          BROWNFIELD PLAN AMENDMENT

              BETTEN AUTO DEALERSHIPS

Original Plan Approved by the Board of the City of Muskegon Brownfield Redevelopment
Authority on February 23, 1998, with amendments approved 8/10/98; 6/13/00; 4/15/03;
717103; 4/20104; 6/21/04; 9/8/04; 9/5/06; 2/23/07; 5/15/07, and 11/12/07.

Original Plan Approved by the City Commission of the City of Muskegon on
April 14, 1998, with amendments approved 8/11/98; 7/11/00; 5/27/03; 8/12/03; 5/25/04;
7/13/04; 7/27/04; 10/12/04; 10/24/06; 3/27/07; 6/12/07, and 1/8/08.




                                            ii                                4/30/2008
                      City of Muskegon Brownfield Plan Amendment
                                 Bellen Auto Dealerships




                         CITY OF MUSKEGON
                BROWNFIELD REDEVELOPMENT AUTHORITY
                         BROWNFIELD PLAN

                                       INDEX
                                                                   Page

I.     INTRODUCTION                                                  1
11.    GENERAL PROVISIONS                                            1

       A.   Costs of the Brownfield Plan                            1
       B.   Maximum Amount of Indebtedness                          2
       C.   Duration of the Brownfield Plan                         2
       D.   Displacement/Relocation of Individuals on
            Eligible Properties                                     2
       E.   Local Site Remediation Revolving Fund                   2

Ill.   SITE SPECIFIC PROVISIONS                                     4

       A.   Kirksey/Anaconda Property (Approved 4/14/98)
       B.   Dilesco Corporation Property (Approved 8111/98)
       C.   Beacon Recycling (Approved 7/11/00)
       D.   Verplank Dock Company (Approved 5/27/03)
       E.   Gillespie Development Property (Approved 8/12/03))
       F.   Loft Properties, LLC Property (Approved 8/12/03)
       G.   Parmenter O'T oole Property (Approved 8/12/03)
       H.   "The WaterMark" Project (Approved 5/25/04)
       I.   Northern Machine Tool (Approved July 13, 2004)
       J.   Terrace Lots Office Building (Approved July 13, 2004)
       K.   Art Works Apartments (Approved July 27, 2004)
       L    Former Muskegon Mall (Approved October 12, 2004)
       M.   Vida Nova at Edison Landing (Approved 10/10/06)
       N.   Western Ave. Properties LLC and Port City Development Services, LLC
            (Approved 10/10/06)
       0.   Viridian Place at Edison Landing (Approved 10/24106)
       P.   Hot Rod Harley (Approved March 27, 07)
       Q.   Sidock Building Project (Approved June 12, 07)
       R.   Heritage Square Town Homes (Approved 1/8/08)
       S.   Betten Auto Dealerships (Proposed for approval 4122108)
            1.     Eligibility and Project Summary                4
            2.     Eligible Activities                            8
            3.     Eligible Investment                           11
            4.     Project Financing                             12
            5.     Local Site Remediation Revolving Fun          13




                                         iii                              4130/2008
                           City of Muskegon Brownfield Plan Amendment
                                      Betten Auto Dealerships




I. INTRODUCTION

In order to promote the revitalization of commercial, industrial, and residential properties
within the boundaries of the City of Muskegon (the "City"), the City established the City
of Muskegon Brownfield Redevelopment Authority (the "Authority") pursuant to the
Brownfield Redevelopment Financing Act, P.A. 381 of 1996, as amended ("Act 381 "),
and a resolution adopted by the Muskegon City Commission on February 10, 1998.

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

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

This Brownfield Plan contains the information required by Section 13(1) of Act 381, as
amended. Additional information is available from the Muskegon City Manager or the
Director of Planning and Economic Development.

II. GENERAL PROVISIONS

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

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

The Authority intends to pay for administrative costs and all of the things necessary or
convenient to achieve the objectives and purposes of the Authority with fees charged
applicants to be included in the Plan, and any eligible tax increment revenues collected


                                                                                     4130/2008
                            City of Muskegon Brownfield Plan Amendment
                                       Bellen Auto Dealerships




pursuant to the Plan, in accordance with the provisions of Act 381, including, but not
limited to:
     i)     the cost of financial tracking and auditing the funds of the Authority,
     ii)    costs for amending and/or updating this Plan, and
     iii)   costs for Plan implementation

Tax increment revenues that may be generated and captured by this plan are identified
in the site-specific sections of this Plan.

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

The City or Brownfield Authority may incur some debt on a site-specific basis. Please
refer to the site-specific section of this Plan for details on any debt to be incurred by the
City or Authority. When a property proposed for inclusion in the Plan is in an area where
tax increment financing is a viable option, the Authority intends to enter into
Development Agreements with the property owners/developers of properties included in
the Plan to reimburse them for the costs of eligible activities undertaken pursuant to this
Plan. Financing arrangements will be specified in a Development and Reimbursement
Agreement, and also identified in the Site Specific section of the Plan.

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

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

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

At this time, eligible properties identified in this Plan do not contain existing residences,
Therefore the provisions of Section 13(1)(i-l) are not applicable at this time.

E. Local Site Remediation Revolving Fund (Section B: Section 13(1)(m))

Whenever this Plan includes a property for which taxes will be captured through the tax
increment financing authority provided by Act 381, it is the Authority's intent to establish
a Local Site Remediation Revolving Fund ("Fund"). The Fund will consist of tax
increment revenues that exceed the costs of eligible activities incurred on an eligible
property. as specified in Section 13(5) of Act 381. Section 13(5) authorizes the capture
of tax increment revenue from an eligible property for up to 5 years after the time that
capture is required for the purposes of paying the costs of eligible activities identified in



                                                2                                       4/30/2008
                          City of Muskegon Brownfield Plan Amendment
                                     Be/ten Auto Dealerships




the Plan. It is the intention of the Authority to continue to capture tax increment
revenues for 5 years after eligible activities are funded from those properties identified
for tax capture in the Plan, provided that the time frame allowed by Act 381 for tax
capture is sufficient to accommodate capture to capitalize a Fund. The amount of school
operating taxes captured for the Revolving Fund will be limited to the amount of school
operating taxes captured for eligible environmental response activities under this Plan. It
may also include funds appropriated or otherwise made available from public or private
sources.

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




                                             3                                      4/30/2008
                                 City of Muskegon Brownfield Plan Amendment
                                            Bellen Auto Dealerships




Ill.   SITE SPECIFIC PROVISIONS

       s.      Betten Auto Dealerships

       1.      Eligibility and Project Description/Sec. 13/1)/h))

       Project Description

       The eligible property included in this plan is located at 2410, 2474, 2477, and 2501
       South Henry Street, Muskegon, Michigan. The legal descriptions of the properties are
       included in Attachment S-1. This eligible property includes all real and personal
       property.

       The Proposed Project would include redevelopment on both sides (east and west) of
       South Henry Street in the City of Muskegon. The parcels with even-numbered
       addresses are on the east side of the street, and the parcels with odd-numbered
       addresses are on the west side of the street. A site map and preliminary proposed site
       plan is attached as Attachment S-2. If the Proposed Project is not constructed at this
       site, the entire Betten family of full service automobile dealership businesses will be
       relocated to a 23 acre greenfield site located along Ellis Road in the City of Norton
       Shores, which is already owned by the Bellen family.

       The part of the Proposed Project on the east side of South Henry Street would include
       new automobile dealership facilities for four (4) General Motors automobile lines and a
       new automobile body shop and repair facility, and would be located on two contiguous
       parcels located at 2410 South Henry Street (formerly the location of the Doo Drop Inn)
       and 2474 South Henry Street (the current location of the existing Bellen Chevrolet and
       Cadillac dealerships). This part of the Proposed Project will sometimes herein be
       referred to as the "East Project".

       The portion of the Proposed Project which is on the west side of South Henry Street
       would include two separate new automobile dealership facilities and a used car
       dealership facility, and would be located on two contiguous parcels located at 2477
       South Henry Street (currently the Robinson Body Shop) and 2501 South Henry Street
       (formerly the Tom Miller Pontiac-GMC-Honda automobile dealership and currently home
       to the Bellen Honda-Pontiac-GMC automobile dealership). These parcels are directly
       across South Henry Street from the East Project. This part of the Proposed Project will
       sometimes be referred to herein as the "West Project", and the three new facilities to be
       constructed in the West Project will sometimes be individually referred to herein as the
       "Honda Project", the "Hyundai Project" and the "Used Car Project".

       The East Project would include substantial expansion and rehabilitation of the existing
       functionally obsolete, outdated and undersized automobile dealership facilities at 2474
       South Henry Street, to create a larger, more modern, efficient and visually appealing full
       service automobile dealership facility encompassing both the 2410 South Henry Street
       and 2474 South Henry Street parcels, as well as a new automobile body shop and repair
       facility which would be located on the back (east side) of the dealership facility. This
       automobile dealership facility would be home to the Betten automobile dealership


                                                    4                                   4/30/2008
                          City of Muskegon Brownfield Plan Amendment
                                     Bellen Auto Dealerships




operations for Chevrolet, Cadillac, Pontiac and GMC. This part of the Proposed Project
is driven by practical needs and legal requirements relating to the recent addition of the
Pontiac and GMC businesses to the Betten family of dealerships, and by the
requirements of the four automobile manufacturers to enlarge and improve the
dealership facilities. The existing automobile dealership structure is approximately
30,000 square feet, and the East Project would reuse, rehabilitate, and expand the
existing building to the north and east to a total size of approximately 70,000 square feet.
The new body shop located on the back (east side) of the dealership facility would serve
all of the Betten dealerships, and would incorporate state-of-the-art systems and
equipment, which would provide environmental protections superior to those provided by
existing older operations.

The West Project would include demolition of the former Tom Miller auto dealership
facility and the Robinson Body Shop, to be replaced by construction of three new
facilities. The Honda Project and the Hyundai Project would replace the existing
functionally obsolete automobile dealership building, which is undersized, suffering
deterioration, and inefficient in its layout.

The construction of these new dealership facilities is also driven by requirements of the
automobile manufacturers to separate and improve Betten's dealership facilities as a
condition of acquisition (as to recent acquisitions of Pontiac, GMC and Honda), a
condition of obtaining (as to Hyundai) the dealership business, and a condition of the
continuing relationship with General Motors.

The Used Car Project would be a new facility which would replace the existing "trailer"
(i.e., manufactured-housing-type building) which currently serves as the inadequate and
relatively unappealing home to the used car sales operation on the west side of South
Henry Street.

Both the East Project and the West Project would be designed to be more visually
appealing than the current buildings, and would include landscaping and other site
improvements to improve layout, traffic flow, and storm water management, among other
things. Both the East Project and West Project also would include reconstruction and
improvement of parking lot facilities, which would improve vehicle display and customer
traffic efficiency.

Estimate of Capital Investment

The Proposed Project would result in substantial new and increased capital investment
ad valorem tax base in the City of Muskegon, as well as increased City income taxes.
Investment in demolition; infrastructure improvements; site preparation and site
improvements; building construction, restoration, rehabilitation, renovation and
improvement; and new or additional machinery, equipment and fixtures is currently
estimated at $10,808,500 Those costs are broken down in Sections 2 and 3 of this Plan.

In addition, Betten has or will incur substantial costs of several million dollars for land
acquisition (parcels referred to as 241 O and 2501 South Henry Street have already been
acquired; acquisition of the parcel referred to as 2477 South Henry Street has not yet
been completed and acquisition of the 2474 South Henry Street parcel is currently under



                                             5                                     4/30/2008
                          City of Muskegon Brownfield Plan Amendment
                                     Bet/en Auto Dealerships




lease but must be acquired outright by the applicant in the future); as well as additional
legal and consulting costs. By locating the Proposed Project at this site, the applicant
would also incur substantial costs as a result of interference with its continuing business
operations while site work, construction, etc., is underway.

Job Retention and Creation

The Proposed Project would result in substantial job retention and job creation, with all
the benefits that follow from those jobs including substantial increased City income
taxes. The existing Betten businesses in Muskegon currently employ approximately 125
employees among all of the locations affected. The Proposed Project would result in
retention of these jobs in the City of Muskegon. The Proposed Project likely would also
result in retention of several jobs associated with the Robinson Body Shop at the 2477
South Henry Street parcel. In addition, we estimate that there would be an additional 30
to 40 new jobs created in the City of Muskegon at the various Betten entities as part of
the Proposed Project, including automobile technicians, office staff, and sales personnel.
Furthermore, the firm which would design and construct the Proposed Project has
indicated that approximately 100 jobs would be created or retained with regard to its
design, construction and related activities to complete the Proposed Project. The jobs
which would be created or retained for the construction of the Proposed Project are not
limited to employees of the general contractor that may (in part) be brought to the City of
Muskegon from elsewhere; local tradesmen would be expected to benefit as well.

Sustainable Development Principles

In many ways, the Proposed Project is not only consistent with sustainable development
principles, it goes right to the core of those principles. The very heart of the Proposed
Project is that it would result in redevelopment/reuse of four parcels historically used for
commercial activities in a neighborhood that has long been extensively developed for
commercial and industrial use and which is served by existing roads, utilities and other
public infrastructure. Two of the parcels to be reused are impacted by environmental
contamination (i.e., the parcels at 2410 and 2501 South Henry Street) and another is
currently an automobile body shop for the environmental due is underway (i.e., 2477
South Henry Street). Furthermore, the East Project is based on redevelopment and
reuse of the existing large dealership building structure at 2474 South Henry Street.

Additional specific elements and benefits of the Proposed Project are also consistent
with or based on sustainable development principles. For example, the buildings which
are part of the Proposed Project will harmonize with and improve the appearance of the
neighborhood. As a further example, the Proposed Project is anticipated to include
modernized energy efficient and resource efficient buildings and fixtures, which are also
anticipated to be more healthy and user friendly than the existing buildings. The
Proposed Project would also incorporate well designed storm water management
facilities and practices, which likely will include low impact bio-retention concepts. The
Proposed Project would be anticipated to improve traffic flow, offer parking for alternative
fuel vehicles, and encourage employees to ride bicycles to work by including a bicycle
rack and shower facilities for the bicyclists to shower upon arrival. The Proposed Project
would also include substantially enhanced landscaping, which is anticipated to include
plants native to and compatible with the local and regional ecosystem.



                                             6                                     4/30/2008
                          City of Muskegon Brownfield Plan Amendment
                                     Be/fen Auto Dealerships




As further evidence of the implementation of sustainable development principles, we
anticipate that "LEED" certification would be sought through the U.S. Green Building
Council for the Proposed Project. However, as noted above, the new and rehabilitated
dealership facilities contemplated in the Proposed Project are subject to requirements
set by the automobile manufacturers for which the applicant is a dealer; these
requirements and specifications are beyond the control of the applicant, and may limit
the potential for maximizing such certification.

Public Benefits

The public benefits that would result from completion of this Proposed Project include:

    •   A very substantial multi-million-dollar investment (estimated to exceed
        $13,000,000 including land acquisition costs) and substantially increased tax
        base in the City of Muskegon as described in more detail elsewhere in this
        application;
    •   The substantial job retention and creation described above, including the
        resulting continued and increased City income taxes;
    •   The overall improved appearance of the facilities and site;
    •   Renovation and construction of new buildings in a traditional commercial corridor
        of the City;
    •   The improved traffic flow, continued and increased utilization of local public
        utilities, storm water management, protection from pre-existing potential
        environmental hazards;
    •   Other benefits inherent to implementation of sustainable development principles
        and consistent with "smart growth" tenets.

Site Plan Information

As indicated above, a site map and preliminary proposed site plan is attached as
Attachment S-2. To summarize the information in that site depiction, the Proposed
Project includes approximately 19.8 acres of land in total. The East Project is located on
approximately nine acres of land. When complete, the East Project full service
automobile dealership facility would be approximately 70,000 square feet, which is an
expansion that would more than double the 30,000 square feet of the existing building.
The West Project is located on approximately 1O acres of land, and would replace the
outdated automobile dealership facility at 2501 South Henry Street (approximately
30,000 square feet) and the existing manufactured-housing-type used car facility
(approximately 1,500 square feet) with the new 28,000 square foot Honda facility, the
new 16,000 square foot Hyundai facility and the new 6,500 square foot newly-
constructed used car facility.

"Facility" Status

Environmental due diligence performed with regard to the 241 O South Henry Street site
in conjunction with the 2007 acquisition of that site revealed that the 2410 South Henry
Street parcel is a Part 201 "facility" due to environmental contamination. Based on
information available, the environmental impacts at the 241 O South Henry Street site


                                              7                                  4/30/2008
                          City of Muskegon Brownfield Plan Amendment
                                     Bellen Auto Dealerships




were not caused by the applicant or its family of businesses; the contamination was
apparently the result of the long-past practice of using impacted foundry waste as fill
material, as well as a plume of impacted groundwater migrating onto the site, apparently
from a neighboring plating company. A Baseline Environmental Assessment (BEA) was
prepared in August 2007 and submitted to the Michigan Department of Environmental
Quality for the 2410 South Henry Street parcel. The BEA and a Part 201 Due Care Plan
were funded by the City's MDEQ Site Assessment Grant.                                   ·

Environmental due diligence performed in conjunction with the 2007 acquisition of the
2501 South Henry Street parcel revealed that this parcel is a "facility" due to
environmental contamination; based on the available information, the environmental
contamination of this parcel was not caused by the applicant or its family of businesses,
but was apparently caused by the long-past practice of disposing of impacted foundry fill
in the area (this parcel was apparently owned long ago by the Campbell, Wyant &
Cannon Company, a local foundry) and by historical underground storage tanks (which
were removed in 1989 and properly "closed" in accordance with law). A Baseline
Environmental Assessment was prepared February, 2007 and submitted to the Michigan
Department of Environmental Quality with regard go the 2501 South Henry Street parcel.
The BEA and a Part 201 Due Care Plan were funded by the City's MDEQ Site
Assessment Grant.

Project Timetable

The Proposed Project timetable is generally based on and measured from a starting
date which is assumed to be the date when the applicant makes a final decision to
proceed with the Proposed Project. In turn, this is contingent (in significant part) on the
completion and timing of final approval of the tax benefits and tax increment financing
enabled by this Brownfield Plan. However, it is also important to note that the Proposed
Project is contemplated in order to meet requirements of various automobile
manufacturers for which the applicant is or will become a dealer. These manufacturers
have demanded construction of new, improved, modernized and enlarged facilities, and
to meet the time limits they have demanded of the applicant, this Proposed Project must
proceed as soon as possible. Therefore, because of the time required to proceed
through the Brownfield process, the most pressing item on the applicant's timetable is to
obtain all necessary approvals for the Brownfield financial incentives, in order to make
the Proposed Project financially viable at the existing site.

This tight timeline due to the requisite commitments by the applicant to various
automobile manufacturers also imposes an additional difficulty in undertaking the
Proposed Project at this location. The timeline for the Proposed Project at this site
would be extended due to the need to plan around and/or relocate existing utilities and
infrastructure, and work around the operation of the existing automobile dealership
businesses on the same site during site work and construction.

Completion of the Proposed Project is targeted for December 31, 2008, which will
require commencement of the Proposed Project as soon as possible. If this application
process becomes overly protracted, the Proposed Project may have to be abandoned in
favor of the alternative greenfield site where new full service automobile dealership
facilities can be constructed more expeditiously (as well as at less cost).


                                              8                                   4/30/2008
                                                              City of Muskegon Brownfield Plan Amendment
                                                                         Bellen Auto Dealerships




   The East Project and West Project, including all of the separate facilities to be
   constructed (East Project General Motors automobile dealership facilities and body
   shop, Honda Project, Hyundai Project and Used Car Project) would be constructed on
   an overlapping and concurrent basis, to the maximum extent possible consistent with the
   requirements of the ongoing Betten businesses currently at this site, as well as the
   practical limitations of the site and the contractor's resources.

  2.                     Eligible Activities (Sec. 13(1l(al(b)l

  Some eligible activities have already been conducted on the Proposed Project property
  and included preparation of a Baseline Environmental Assessment and Section 7a (Due
  Care) Compliance Analysis for the 2501 Henry St. property and also the 2410 Henry
  Street Property. As noted previously, these environmental response activities were paid
  for through the City's MDEQ Brownfield Site Assessment Grant. However, several
  additional eligible activities have been identified that are necessary to implement the
  Proposed Project. They are summarized in the table below.


                                                                                                               :::c ,.. .... 'Yi •.;\ .·. / start/Epd••.9~tej ':\
                                                                                                         ';,              '
,OE}EligibleActivities·(fo(taxjncr.ernent_;(
.   -:-{\  -:-~,_/:- >·: ·"-" <: .-.-.:.:._'.,
      ..·,::,,..·,_         ·;:;:-:,c·
       ,-·;y.-.,·,, -,. ·:-';ct
.·-:.·-"''
                                           ti'fib.:'C_,,_,.
                                                                                      •c·,
                                                                                      },.)   ,;_;   ){\ \{}    . G:Ci•' ff<': :·   "
                                                                                                                             ••y\.i. (all d~tes ei;tirriatecl))·••
                                                                                                                                       ·. ··,.•<.·>--:-:ti\\:((/-/~--,-',>''"
  Phase I & II Environmental Site                                                                                         $33,000       Immediate/Day 45
  Assessment,    Baseline Environmental
  Assessment and Due Care Plan (2477
  South Henry Street)

  Due Care Response Activities and                                                                                                      Concurrent with other
  Additional Response Activities: 2410,                                                                                                 site preparation and
  2474, 2501, 2477 South Henry Street                                                                                                   site improvement
                                                                                                                                        activities
             •          Due Care Plan update and                                                                          $50,000
                        documentation; Due Care
                        oversight during construction
             •          Impacted soils/fill excavation,                                                                  $866,415
                        characterization, disposal, and
                        clean backfill (as necessary)

  Due Care Response Activities and                                                                                        $50,000       If such activities are
  Additional Response Activities: 2477                                                                                                  necessary or
  South Henry Street:                                                                                                                   appropriate at this
  Impacted Soil excavation and disposal is                                                                                              parcel, it is anticipated
  included in the above category; however,                                                                                              they will occur
  until the Phase I & II ESA is completed,                                                                                              concurrently with other
  this budget includes an allocation for Due                                                                                            site preparation and
  Care Response activities that may be                                                                                                  improvement activities
  identified during the environmental due
  diligence.




                                                                                                               9                                                        4/30/2008
                                              City of Muskegon Brownfield Plan Amendment
                                                         Bet/en Auto Dealerships




         Eligible Activities (fortaX incremE'![1t c · Estimated
                                                                                                                                                        :·'
                                                                                                          Costi, • , ,.start/End Date*,
                                                                                                                                                              ,'


 ,,.,"                                                                         -~·:·--_ ''. :
I.
                                                                                          '•'
                                                                                                  .,---,.        \:>i'' '/ (all dates 'estirrjafed) · •·
                     . fir]i;lhcing)                   '.%{.\f_: }'.i :-·-,:·>-"
                                      .......
                                                                                                 "·--
                         -·--·-;:,-·· •· /:··.'?•}:·('                  \;/           .   ;. ?(~),:;i:.·'.?i?'"'                 ,, ..i// -/;· ;-.:;->:--· ~

 Preparation of Brownfield Plan, and Work                                                        $50,000           Immediate/Day 30
 Plans for Due Care Activities and
 Additional Response Activities

 Demolition
 - East Project                                                                                  $60,000           Immediate/Day 30
 - West Project                                                                                 $100,000           Day 30 - Day 60

 Asbestos/Lead Paint Survey
 - East Project                                                                                    $3,000          Immediate/Day 10
 - West Project                                                                                    $6,000

 Lead Abatement
 -  2410, 2474 and 2501                            South Henry                 N/A                                 N/A
 Street
 - 24 77 South Henry Street                                                   It is not yet known                 If necessary, they will
                                                                              whether any such                    occur concurrently with
                                                                              activities will be                  other site preparation
                                                                              necessary or                        and improvement
                                                                              appropriate for the                 activities
                                                                              2477 South Henry
                                                                              Street oarcel
 Asbestos Abatement
 - East Project                                                               $30,000 total                       N/A
 - West Project:                                                              preliminary                         N/A
        2501 South Henry Street                                               estimate for all                    If such activities are
        2477 South Henry Street                                               buildings; it is not                necessary or
                                                                              known whether                       appropriate at this
                                                                              any such activities                 parcel, it is anticipated
                                                                              will be necessary                   they will occur
                                                                              or appropriate                      concurrently with other
                                                                              until surveys are                   site preparation and
                                                                              performed                           improvement activities

 Public Infrastructure Improvements                                                                                Concurrent with other
 (Infrastructure improvements that directly                                                                        site preparation and
 benefit the project, such as public streets,                                                                      site       improvement
 sidewalks, parking facilities, sewer and                                                                          activities
 water)
 East Proiect: Sewer relocation                                                                 $200,000
 West Proiect: Sewer televising, cleaning,                                                      $150,000
 spot repairs
 Total Qroiect:                                                                                 $300,000           Spring 2009
 Mill and resurface Henry St between                                                                               (After improvements)
 Sherman & Hackley




                                                                             10                                                             4/30/2008
                           City of Muskegon Brownfield Plan Amendment
                                      Bet/en Auto Dealerships




Site Preparation (Activities necessary to
prepare site for construction including
relocation of utilities, addition/removal of
soils, clearing and grubbing, land
balancing/grading; foundation to address
special soil concerns)
- East Project                                            $550,000
- West Project                                            $465,000      Immediate/Day 150
                                                                        Immediate/Day 150
Preparation of Work Plans for Public                       $50,000      Immediate/Day 30
Infrastructure Improvements and Site
Preparation Activities; engineering,
design, legal and professional costs and
fees

Costs to review 381 Work Plans:
MDEQ                                                        $2,500
MEDC/MSHDA                                                 $10,000
Contingencies                                               24,085

TOTAL ELIGIBLE ACTIVITY COSTS                          $3,000,000.



*      All starting dates are based on a timeline commencing with a final decision of the
       applicant to proceed, which is contingent (in significant part) on approval of this
       Brownfield Plan and final approval of the tax incentives sought pursuant to it.

3.     Eligible Investments, Tax Increment Revenue Estimates (Sec. 13I1llcllfll

The Bellen Automobile Dealerships project is included in this Plan to enable qualified
taxpayers, as defined by Section 437(31)(m) of Michigan Public Act 36 of 2007, an
amendment to the Michigan Business Tax Act, to avail themselves of eligibility for a
credit against their Michigan Business Tax liability for eligible investments as defined by
P.A. 36 of 2007. Eligible investment includes demolition, construction, restoration,
alteration, renovation, or improvement of buildings or site improvements on eligible
property and the addition of machinery, equipment, and fixtures to eligible property after
the effective date of this Plan, and after the date the State pre-approval letter is issued,
if the costs of the eligible investment are not otherwise reimbursed to the qualified
taxpayer or paid for on behalf of the taxpayer from any source other than the taxpayer.
Michigan Business Tax credits of up to 20% of the eligible investment are available to
certain qualified taxpayers on certain projects. The Bellen Auto Dealerships project
appears to meet the criteria for eligibility of up to 20% Michigan Business tax Credit,
pursuant to new pending new amendments to the Michigan Business Tax Act, 2007 P.A.
36. The following summarizes the eligible investment for the Proposed Project:



                                               11                                   4/3012008
                               City of Muskegon Brownfield Plan Amendment
                                          Bet/en Auto Dealerships




    Eligibl~ Investments (For,IVIBI,Crecfit) ----•------ _Estimated Costs )-• -__ -_--.- Start/End Date•---.
- '-•··< >·--"·'"    ; ;' -.- :-;: ;:. -•- -__ :\·:>   ; -, - •.- •.   >-       •'" _·,i-.• •.. •---· ; ,-   <-_   '.

Site Improvements (Clearing land; adding
sewer, water lines, or other utilities;
landscaping;       soil     addition/removal;
fencing; lighting; walkways, driveways, or
parking lots; related site improvements)

- East Project                                                               $175,000     Immediate/Day
                                                                                          150
- West Project
       - Honda Project                                                        $60,000     Immediate/Day
       - Hyundai Project                                                      $40,000     150
       - Used Car Project                                                     $25,000     Immediate/Day
                                                                                          150
                                                                                          Immediate/Day
                                                                                          150
Construction,   Restoration,  Alteration,
Renovation, or improvements of Buildings
- East Project                                                              $3,800,000    ASAP /December
                                                                                          31, 2008
- Honda Project                                                             $2,519,000    ASAP/December
                                                                                          31, 2008
- Hyundai Project                                                           $1,693,000    ASAP/December
                                                                                          31,2008
- Used Car Project                                                           $400,000     ASAP/December
                                                                                          31,2008
Addition of Machinery, Equipment and
Fixtures
- East Project                                                               $300,000     To be completed
                                                                                          by December 31,
                                                                                          2008
- West Project                                                               $200,000     To be completed
                                                                                          by December 31,
                                                                                          2008
TOTAL ELIGIBLE INVESTMENTS                                                  $9,212,000


*        All starting dates are based on a timeline commencing with a final decision of the
         applicant to proceed, which is contingent (in significant part) on approval of this
         Brownfield Plan and final approval of the tax incentives sought pursuant to it

Based on these eligible investments, an estimate of the captured taxable value and tax
increment revenues from the Proposed Project property have been estimated. The tax
increment revenue estimates are included in Attachment S-3. These estimates include
both local taxes and school operating taxes. .




                                                       12                                               4/30/2008
                           City of Muskegon Brownfield Plan Amendment
                                      Bet/en Auto Dealerships




4. Project Financing (Sec.13(1l(dl(e))

The primary source of financing for the eligible activities identified in this Plan will be
private financing arranged by the developer. The City and the Developer have also
negotiated a Brownfield Reimbursement Agreement that will provide for reimbursement
of Betten's eligible costs, including interest, as provided for by law and the terms of the
Reimbursement Agreement, through the Brownfield tax increment generated by the
project. Eligible costs will be capped at $3 million; or until 2025, whichever occurs first.

Initial costs to prepare this Brownfield Plan and associated work plans were financed by
the City's Brownfield Plan application fee (paid by the applicant), city funds, and the
developers funds. These costs are eligible to be reimbursed through the Brownfield tax
capture. In addition, the City intends to capture $10,000 per year of the local tax
increment from this project to pay for the reasonable and actual administrative expenses
of the Authority, as provided by Act 381.

To capture school operating taxes for reimbursement the costs of eligible activities,
MDEQ must approve a work plan for the eligible environmental response activities, and
MEDC must approve a work plan for the Site Preparation and Public Infrastructure
activities.

In addition to the private financing by the developer, the City intends to utilize its MDEQ
Brownfield Loan to pay $250,000 of the environmental response activity costs
summarized above. The terms for repayment of this MDEQ Loan will be integrated into
the Development Agreement, and consistent with the Loan Contract between MDEQ
and the City.

5. Local Site Remediation Revolving Fund ( Sec. 13(1l(m)

Upon completion of reimbursement of all the eligible activity expenses as described
above, the Authority will continue to capture taxes from this project to finance a Local
Site Remediation Revolving Fund, as provided for by Act 381. Section 13(5) authorizes
the capture of tax increment revenue from an eligible property for up to 5 years after the
time that capture is required for the purposes of paying the costs of eligible activities
identified in the Plan. It is the intention of the Authority to continue to capture tax
increment revenues for 5 years after eligible activities are funded from those properties
identified for tax capture in the Plan. The amount of school operating taxes captured for
the Revolving Fund will be limited to the amount of school operating taxes captured for
reimbursement of eligible environmental response activities under this Plan. This
Project is estimated to generate $1,048,484 in tax increments for the Revolving Fund.

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



                                              13                                     4/30/2008
          City of Muskegon Brownfield Plan Amendment
                     Bellen Auto Dealerships




          ATTACHMENT S-1

          Legal Descriptions
Betten Auto Dealerships Brownfield Plan
        MUSKEGON, MICHIGAN




                                                       4/30/2008
                        City of Muskegon Brownfield Plan Amendment
                                   Betten Auto Dealerships




241 O South Henry Street Legal Description:

Located in the City of Muskegon. Muskegon County, Michigan, legally described
as follows:
Commencing on the North line, 33 feet East of the Northwest corner of the
Southwest fractional 1/4 of the Southwest fractional 1/4 of Section 31 , Town 10
North, Range 16 West; thence South, parallel to the West line of said Section, 303
feet: thence East, parallel with the North line, 456. 76 feet; thence North 303 feet;
thence West 456. 76 feet to the point of beginning.

2474 South Henry Street Legal Description

Real property in the City of Muskegon, County of Muskegon, State of Michigan, described
as follows:

 PARCELi:
That part of the North 22 rods of the Southwest fractional quarter of the Southwest
fractional quarter of Section 31, Town 10 North, Range 16 West, described as
follows: Commence 33 feet East and 333 feet South of the Northwest corner of
said Southwest fractional quarter of Southwest fractional quarter; thence East
parallel to the north line of said Southwest fractional quarter of Southwest
fractional quarter 456.16 feet, more or less, to a point 250 feet West of the West
right of way line of the Norton-Glade Express Highway; thence South parallel to
the West line of said Highway 30 feet; thence East parallel to the north line of said
Southwest fractional quarter of Southwest fractional quarter, a distance of 250
feet to the West right-of-way line of the Norton-Glade Express Highway; thence
North along the West right of way line of said Highway 200 feet; thence West
parallel to the north line of said Southwest fractional quarter of Southwest
fractional quarter 250 feet; thence South parallel with the West right-of-way line of
the Norton-Glade Express Highway, 140 feet; thence West parallel to the north
line of said Southwest fractional quarter of Southwest fractional quarter 456.16
feet; more or less, to a point 33 feet East of the West line of said Section 31;
thence South 30 feet to the place of beginning.

PARCEL II:

All that part of the South 250 feet of the North 613 feet of the Southwest fractional
quarter of the Southwest quarter of Section 31, Town 10 North, Range 16 West;
City of Muskegon, Muskegon County, Michigan, which lies West of a line 100 feet
West of, measured at right angles and parallel to the construction centerline of
Highway US-16 and US-31. The construction centerline of Highway US-31 and US-
16 is described as: Beginning at a point 474.31 feet South of the North quarter
corner of Section 7, Town 9 North, Range 16 West, Norton Township, now known
as City of Norton Shores, Muskegon County, Michigan; thence North 88°54' West



                                            2                                  4/30/2008
                         City of Muskegon Brownfield Plan Amendment
                                    Betten Auto Dealerships




319.11 feet to the point of curve of a 5°45' curve to the right; thence Northwesterly
along the arc of the curve 1572.17 feet to the point of tangent; thence North 1°30'
East 4927.39 feet to a point of deflection; thence 1°06'50" East 2600 feet to the
point of ending.

 PAACELIII:
Part of the North 22 rods of the Southwest fractional quarter of the Southwest
fractional quarter of Section 31, Town 10 North, Range 16 West, Muskegon County,
Michigan, described as follows: Commence 33 feet East and 363 feet South of the
Northwest corner of said Southwest fractional quarter of the Southwest fractional
quarter; thence East parallel to the North line of said Southwest fractional quarter of
the Southwest fractional quarter a distance of 456.16 feet more or less to a point
250 feet West of the West right-of-way line of the Norton-Glade Express Highway;
thence Northerly parallel to said West right-of-way line of said Highway 30 feet;
thence West parallel to the North line of said Southwest fractional quarter of the
Southwest fractional quarter, 456.16 feet to a point 33 feet East of the West line of
said Section 31; thence South 30 feet to place of beginning.

2477 South Henry Street Legal Description:

The land referred to herein below is situated in the City of Muskegon, County of
Muskegon, and State of Michigan, to wit: That part of the Southeast 1/4 of the
Southeast 1/4 of Section 36, Town 10 North, Range 17 West, described as
follows: Commence at the Southeast corner of the North 1O acres of said
Southeast 1/4 of Southeast 1/4 thence West along the South line of said North 1O
acres, 672.04 feet to the West line of the East 1/2 of said Southeast 1/4 of
Southeast 1/4, thence South along said West line of said East 1/2 of Southeast
1/4 of Southeast 1/4, 150 feet, thence East parallel to the South line of said
North 1O acres 671.83 feet to the East line of said Section 36, thence North
along the East line of said Section 36,150 feet to the place of beginning, except
the East 33 feet thereof which are reserved for highway purposes.

2501 South Henry Street Legal Description:

City of Muskegon, County of Muskegon and State of Michigan: That part of the
Southeast 1/4 of the Southeast 1/4 of Section 36, Town 10 North, Range 17
West, described as follows: Commencing at a point on the East line of said Section
36,150 feet South of the Southeast corner of the North 10 acres of said
Southeast 1/4 of the Southeast 1/4; thence West parallel to the South line of the
North 10 acres of said Southeast l/4of the Southeast 1/4, 671.83 feet to the
West line of the East 1/2 of said Southeast 1/4 of the Southeast 1/4; thence South
along said West line of the East 1/2 of the Southeast 1/4 of the Southeast 1/4,
400 feet; thence East parallel to the South line of the North 1O acres of said
Southeast 1/4 of the Southeast 1/4 to the East line of Section 36; thence North
along the East line of Section 36,400 feet to the point of beginning.


                                            3                                 4/30/2008
          City of Muskegon Brownfield Plan Amendment
                     Be/ten Auto Dealerships




          ATTACHMENT S-2

         Preliminary Site Plan
Betten Auto Dealerships Brownfield Plan
        MUSKEGON, MICHIGAN




                             4                         4/30/2008
                   City of Muskegon Brownfield Plan Amendment
                              Bet/en Auto Dealerships




INSERT SITE PLAN




                                      5                         4/30/2008
          City of Muskegon Brownfield Plan Amendment
                     Bellen Auto Dealerships




          ATTACHMENT S-3

   Tax Increment Revenue Estimates
Betten Auto Dealerships Brownfield Plan
        MUSKEGON, MICHIGAN




                             6                         4/30/2008
                               City of Muskegon Brownfield Plan Amendment
                                          Betten Auto Dealerships




Insert tax capture estimate tables




                                                   7                        413012008
                                        CITY OF MUSKEGON
                               BROWNFIELD REDEVELOPMENT AUTHORITY
                            Cll=TTl=I\I A 'IT() nc: A I                                nP1   HI
                                                                       "
  Fiscal Years               Total School        Total Local           Total Tax
Ended or Ending             Tax Increment       Tax Increment          Increment                   Excess         Cumulative
 December 31        Year      Revenues            Revenues             Revenues                   (Shortfall)     Increment
      2007                 $              -       $            -   $               -          $                 - $           -
      2008            1                 410               441                  850                        850               850
      2009           2               89,006            95,778              184,784                    184,784           185,634
      2010            3            101,006            108,691              209,697                    209,697           395,331
      2011           4             101,006            108,691              209,697                    209,697           605,028
      2012            5            101,006            108,691              209,697                    209,697           814,725
      2013           6             101,006            108,691              209,697                    209,697         1,024,421
      2014            7            101,006            108,691              209,697                    209,697         1,234,118
      2015            8            101,006            108,691              209,697                    209,697         1,443,815
      2016            9            101,006            108,691              209,697                    209,697         1,653,512
      2017           10            101,006            108,691              209,697                    209,697         1,863,209
      2018           11            101,006            108,691              209,697                    209,697         2,072,906
      2019           12            101,006            108,691              209,697                    209,697         2,282,602
      2020           13             101,006           108,691              209,697                    209,697         2,492,299
      2021           14            101,006            108,691              209,697                    209,697         2,701,996
      2022           15             101,006           108,691              209,697                    209,697         2,911,693
      2023           16             101,006           108,691              209,697                    209,697         3,121,390
      2024           17             101,006           108,691              209,697                    209,697         3,331,087
      2025           18            101,006            108,691              209,697                    209,697         3,540,783
      2026           19             101,006           108,691              209,697                    209,697         3,750,480
      2027           20             101,006           108,691              209,697                    209,697         3,960,177
      2028           21             101,006           108,691              209,697                    209,697         4,169,874
      2029           22             101,006           108,691              209,697                    209,697         4,379,571
      2030           23             101,006           108,691              209,697                    209,697         4,589,268

Source: City of Muskegon

Total Eligible Expenses for Reimbursement                                                     $     3,000,000

Total Amount to Administration
 Total Local Taxes to BRA Administration                                                      $       220,000

Total Amount to Local Revolving Fund                                                          $     1,048,484

TOTAL Project TIF                                                                             $     4,268,484


                                                           1                                                                      4/30/2008
                     EXHIBIT A
                         To
Brownfield Redevelopment MBT Credit Application       Part 1

       Site Map and Preliminary Proposed Site Plans
                                                        HENRY STREET



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co      6
Date:    May 13, 2008

To:    Honorable Mayor and City Commissioners

From:     Finance Director

RE:    MERS Health Care Savings Program (HCSP) for Medicare Eligible Retirees



SUMMARY OF REQUEST: You may recall that several months ago the City switched from
subsidizing MediGap insurance coverage through a company called Magna Care to paying an equivalent
cash stipend directly to retirees. This was done both to simplify administration and to give retirees
greater fiexibility in choosing insurance coverage to best meet their needs. One of the issues that came
up was that, as direct cash payments to the retiree, the stipend would be subject to federal income tax.
Working with MERS we have found a way to address this issue. This involves the establishment of
healthcare savings program accounts (HCSP) for eligible retirees. Basically, running the money through
the HCSP accounts will allow us to provide the retiree with the same benefit level, tax-free.

Active non-union and 517M (DPW) employees currently have HCSP accounts that they will carry into
retirement. Additional employee groups are expected to participate. As these employees attain
Medicare eligibility, the need to maintain separate retiree HCSP accounts will diminish.

FINANCIAL IMPACT: Approximately $3,500/year administrative fee to be paid from the City's
retiree healthcare funding vehicle account at MERS. The cash stipend option helps to control the City's
retiree healthcare obligation. Being able to make these payments in a tax-advantaged manner will make
this option much more attractive to both current and future retirees.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: Approval of three MERS Healthcare Savings Program
Participation Agreements for Medicare eligible retirees receiving cash stipend for healthcare and/or Rx.
The three agreements are structured around whether the retiree has opted out of medical benefits
($52.08/mo), Rx benefits ($43.08/mo) or both medical and Rx ($93.08/mo).

COMMITTEE RECOMMENDATION: None.
Affirmative Action
(23 1)724-6703
FAX (231)722-1214

Assessor
(231 )724-6708
FAX (231)726-5181

Cemetery
(231 )724-6783
FAX (231)726-5617
                                                      West Michigan's Shoreline City
City Manager                                              www.shorelinecity.com
(231 )724-6724
FAX (231)722-1214
                      Dear Retiree,
Civil Service
(231)724-6716
FAX (231 )724-4405    You may recall that a few months ago, when the City began paying a monthly healthcare stipend in
Clerk                 lieu of subsidizing coverage through Magna Care, one of the issues that arose was taxability of the
(231)724-6705
FAX (23 l )724-4178
                      payments to the retiree. Because the payments are added to your regular pension, they are considered
                      subject to federal taxes.
Comm. & Neigh.
Services
(23 1)724-6717        I'm happy to let you know that we have found a way to make these payments to you so that they are
FAX (231)726-2501
                      tax-free. The change will not reduce or enhance your benefit; it is simply an administrative change.
Engineering
(23 1)724-6707
FAX (231)727-6904     The City has partnered with MERS to assist in coordinating this benefit. With this partnership, the
Finance
                      City has set up a MERS Health Care Savings Program account for you. The Health Care Savings
(231)724-6713         Program account is an IRS-approved, tax-favored medical savings account for post-employment
FAX (231)724-6768
                      healthcare.
Fire Department
(231)724-6792
FAX (231)724-6985     In lieu of paying the stipend in your monthly pension check, the City will deposit your health care
Income Tax
                      stipend payment into this account. MERS will then automatically remit the payment via direct
(231 )724-6770        deposit back to your personal checking or savings account. The only change you will see is that
FAX (231)724-6768
                      instead of a single direct deposit amount, you will have two deposit items on your monthly bank
Info. Technology      statement: one for your pension and another for the healthcare stipend.
(231)724-4126
FAX (231)722-4301
                      To begin processing healthcare stipend payments this way, we will need a copy of your Medicare card
Inspection Services
(231 )724-6715        and the three enclosed forms completed and signed by you.
FAX (231 )728-4371
                                                                                              th
Leisure Services      The City will conduct informational meetings on this matter June 10 at I 0AM and 2PM in the City
(23 l )724-6704
FAX (231)724-1196     Commission Chambers. Feel free to attend one of these meetings to have your questions answered. At
                      that time we can collect the needed documents or assist you in filling out any forms. If you cannot
Mayor's Office
(231)724-6701         attend the meetings, please mail the completed and signed Enrollment & Beneficiary Form,
FAX (231)722-1214     Reimbursement Claim form, Direct Deposit Agreement and a copy of your Medicare card to:
Planning/Zoning
(231)724-6702
FAX (231 )724-6790    MERS
                      Attn: Cara Doerfler
Police Department
(231)724-6750         1134 Muncipal Way
FAX (231)722-5140     Lansing, MI. 48917
Public Works
(231)724-4100
FAX (23 1)722-4188
                      Thank you for your patience. If you have any questions please contact the City's Finance Department
                      at 231-724-6713 or Tara Gist at MERS 1-800-767-6377 ext. 356.
Treasurer
(231)724-6720
FAX (231)724-6768     Sincerely,
Water Billing
(23 l )724-67 l 8
FAX (231)724-6768
                      Timothy J. Paul
Water Filtration
(231)724-4106         Finance Director
FAX (231)755-5290            City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
                                                    http://www.shorelinecity.com
                                       -         -


                                   HEA:J.TH CARE SA\' INGS PIIIOGIIIAM



                      HEALTH CARE SAVINGS PROGRAM
                        PARTICIPATION AGREEMENT




                                      City of Muskegon
                                  (Participating Employer)




                Municipal Employees' Retirement System of Michigan
                               1134 Municipal Way
                                Lansing, 1\11 48917
                                  517-703-9030




                                                                         Restated: November 15, 2005
                                                                         (Approved May 14, 2003 and
                                                                         amended August 19, 2004)      '-


HCSP-Program-Part Agmt 11-15-05
               HEALTH CARE SAVIN GS PROGRAM EMPLOYER


Effective Date of this Participation Agreement _M_a_y_1_,2_0_0_8_ _ _ _ _ _ _ _ _ _ _ __

Health Care Savings Program Coordinator (Name and title) Tim Paul, Finance Director


Address 933 Terrace Street, Muskegon, Ml 49443-0536

Phone ( 231     ) 724 - 6709       Facsimile ( 231 ) 726 . 2325

E-mail [email protected]



                              COVERED EMPLOYEE GROUPS
        A participating Employer may cover all of its employee groups, bargaining units or
personnel/employee classifications ("Covered Group"), in Health Care Savings Program or
select from the listing below. Contributions shall be made on the same basis within each
Covered Group identified by this agreement, and remitted as directed by the Program
Administrator. If the Employer has varying coverage or contribution structures between
groups, a separate agreement will need to be completed for each covered group. This agreement
encompasses the group( s) listed below:
        All Eligible Employees within the following bargaining unit(s) or personnel/employee
classification(s) (must specify below, e.g., MERS Division l; All Police & Fire; or Police
Command):
All Medicare eligible retirees who opt out of the city's Rx Coverage




                                  ELIGIBLE EMPLOYEES

        Only Employees of a "municipality" may be covered by the Health Care Savings
Program Participation Agreement. Independent contractors may not participate in the Health
Care Savings Program. 2. Subject to other conditions in the Trust Document and this
Participation Agreement, the following Covered Group of Employees are deemed to be
"qualified persons" eligible to participate in the Health Care Savings Program:

        Check one or both:

        IZI      With respect to Covered Groups, this Participation Agreement covers all
                 employees who are in a collective bargaining unit, subject to the terms of the
                 collective bargaining agreement.



HCSP-Program-Part Agmt 11-15-05
         0       With respect to Covered Groups, this Participation Agreement covers all
                 employees who are subject to the same personnel policy, according to the terms of
                 the policy.

The Employer shall provide MERS with the name, address, Social Security Number, and date of
birth for each Eligible Employee, as defined by the Participation Agreement on Employee
Enrollment and Beneficiary Designation forms to be provided by MERS Health Care Savings
Program.


                          EMPLOYER CONTRIBUTIONS
                    TO THE HEALTH CARE SAVIN GS PROGRAM

        The Participating Employer hereby elects to make contributions to the Trnst. Once you
have detem1ined the contribution structure, language should be added in the appropriate area
below. Contributions shall be made on the same basis within each Covered Group specified in
this agreement, and remitted to MERS as directed by the Program Administrator along with the
Participation Report, to be credited to the individual accounts of Eligible Employees as follows:

        Check one or more, as applicable:

        IZI      Basic Employer (Before-Tax) Contributions

These employer contributions may be made as a percentage of salary and/or by a specified dollar
amount. Identify below the basic employer contribution fonnula to be applied to the covered
groups within the Health Care Savings Program identified in this agreement.

Contribution structure (specify): All employees will receive $43.08 per month




        •        Vesting Cycle For Basic Employer Contributions Only

        The employer contributions identified in this Participation Agreement are subject to the
        following vesting cycle.

                                  Years of Service       Percentage Vested




                                                              100%




HCSP-Program-Part Agmt 11-15-05                      2
        FORFEITURE PROVISION. Upon separation from the service with the Employer
prior to meeting required vesting schedule set out above, or upon Death of the Participant, prior
to meeting the required vesting schedule, a Participant's account assets shall:

        Check only one, as applicable:

                D        Remain in the HCSP sub-trust to be reallocated among all Plan
                         Participants in on equal dollar basis
                D        Remain in the HCSP sub-trust to be used to offset future Employer
                         Contributions
                 D       Be transferred to the Employer's Health Funding Vehicle ("RHFV").

        •       Mandatory Salary Reduction (Before-Tax} Contributions

Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory salary reduction resulting from collective bargaining or the
establishment of a personnel policy. These reductions may be made as a percentage of salary or
a specific dollar amount.
Contribution structure (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __




        D        Mandatory Leave Conversion (Before-Tax) Contributions

Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory conversion of accrued leave including, but not limited to vacation,
holiday, sick leave, or severance amounts otherwise paid out, to a cash contribution. These
contributions may be calculated as a percentage of accrued leave or a specific dollar amount
representing the accrued leave. Leave conversions may be made on an armual basis or at
separation from service, or at such other time as the Employer indicates. (Note: The leave
conversion program shall not permit employees the option of receiving cash in lieu of the
employer contribution.)

The following type of leave shall be convetted to an employer cash contribution to Health Care
Savings Program:

        Check one or more, as applicable:

        D        Vacation Leave Conversion Contribution Structure:

                 D   As of _ _ _ _ _ _ _ _, _ _ _% of vacation leave must be contributed to HCSP.
                         (Annual Date or X weeks prior to termination)


                 D    Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __




HCSP-Program-Part Agmt 11-15-05                                          3
        •        Sick Leave Conversion Contribution Structure:
                 D   As of _ _ _ _ _ _ _ _ _ _ _ _% of sick leave must be contributed to HCSP.
                            (Annual Date or X weeks prior to termination)



                 D   Other{specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __




        D        Personal Leave Conversion Contribution Structure:

                 D   As of _ _ _ _ _ _ _ _ _ _ _% of personal leave must be contributed to HCSP.
                         (Annual Date or X weeks prior to termination)




                 D    Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __




        D        Severance Pay Conversion Contribution Structure:
                 D    As of _ _ _ _ _ _ _ _~ ---~% of severance pay must be con1Iibuted to HCSP.
                         (Annual Date or X weeks prior to termination)




                 D    Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __




        •        Post-Tax Employee Contributions

The Participating Employer hereby elects to permit post-tax Employee Contributions to be made
by Eligible Employees within the Covered Group(s), which shall be remitted as directed by the
Program Administrator, to be credited to the individual accounts of Eligible Employees. All
Employee Contributions must be remitted to MERS along with the Participation Report.



         MODIFICATION OF THE TERMS OF THE PARTICIPATION
                          AGREEMENT
        If a Participating Employer desires to amend any of its previous elections contained in
this Participation Agreement, including attachments, the Governing Body by official action must
adopt a new Participation Agreement and forward it to the Board for approval. The amendment
of the new Participation Agreement is not effective until approved by the Board and other
procedures required by the Trust Plan Document have been implemented.




HCSP-Program-Part Agmt I 1-15-05                                            4
                                      STATE LAW
       To the extent not preempted by federal law, this agreement shall be interpreted in
accordance with Michigan law.



           TERMINATION OF THE PARTICIPATION AGREEMENT
     This Pa1ticipation Agreement may be terminated only in accordance with the Trust Plan
Document.



          EXECUTION BY GOVERNING BODY OF MUNICIPALITY
        The foregoing Participation Agreement is hereby adopted and approved on the ~ day

of_-4-/l}
       ~ C!:)~ll- - - ~ ' 20.QL__.



                                           GOVERNING BODY




                                           Title - --,l-~'-L-~
                                                             ~,..;,t.l
                                                                   "--'O
                                                                       "'--L-r_ __ _ _ _ _ __

                                           Date of Signature - -"'5'--__,_
                                                                        I .,_
                                                                           9_- ---"c2.""'"o
                                                                                          '"'--=
                                                                                               o _,,!?
                                                                                                     L --_ _ _




                                   MERS APPROVAL
        The Participation Agreement is approved by MERS. Contributions shall first be remitted
beginning with the month of _ _ _ _ _ _ __ _ _ , 20_ _ .




Dated: _ _ _ __ __ _ , 20_ _                By
                                                                  (Authorized MERS signatory)

                                            Title _ _ _ __ _ __ __ __ __ __



HCSP-Program- Part Agml 11-15-05                 5
                                   -      -   -   --   - -- - -   --   -
                                       HEAUH CARE SAVINGS PROGRAM



                       HEALTH CARE SAVINGS PROGRAM
                         PARTICIPATION AGREEMENT




                                         City of Muskegon
                                   (Participating Employer)




                 Municipal Employees' Retirement System of Michigan
                                1134 Municipal Way
                                 Lansing, MI 48917
                                   517-703-9030




                                                                           Restated: November 15, 2005
                                                                           (Approved May 14, 2003 and
                                                                           amended August 19, 2004)


HCSP-Program- Part Agmt 11-15-05
               HEAL TH CARE SAVIN GS PROGRAM EMPLOYER


Effective Date of this Participation Agreement _M_a_y_1,_2_o_o_a_ _ _ _ _ _ _ _ _ _ _ __

Health Care Savings Program Coordinator (Name and title) Tim Paul, Finance Director



Address 933 Terrace Street, Muskegon, Ml 49443-0536

Phone ( 231     ) 724 . 6709       Facsimile ( 231   ) 726 - 2325

E-mail [email protected]




                              COVERED EMPLOYEE GROUPS
        A participating Employer may cover all of its employee groups, bargaining units or
personnel/employee classifications ("Covered Group"), in Health Care Savings Program or
select from the listing below. Contributions shall be made on the same basis within each
Covered Group identified by this agreement, and remitted as directed by the Program
Administrator. If the Employer has varying coverage or contribution structures between
groups, a separate agreement will need to be completed for each covered group. This agreement
encompasses the group(s) listed below:
        All Eligible Employees within the following bargaining unit(s) or personnel/employee
classification(s) (must specify below, e.g., MERS Division 1; All Police & Fire; or Police
Command):
All Medicare eligible retirees who opt out of the city's Medical and Rx coverage




                                  ELIGIBLE EMPLOYEES

        Only Employees of a "municipality" may be covered by the Health Care Savings
Program Participation Agreement. Independent contractors may not participate in the Health
Care Savings Program. 2. Subject to other conditions in the Trust Document and this
Participation Agreement, the following Covered Group of Employees are deemed to be
"qualified persons" eligible to participate in the Health Care Savings Program:

        Check one or both:

        0        With respect to Covered Groups, this Participation Agreement covers all
                 employees who are in a collective bargaining unit, subject to the terms of the
                 collective bargaining agreement.



HCSP-Program-Part Agmt 11-15-05
        IZl     With respect to Covered Groups, this Participation Agreement covers all
                employees who are subject to the same personnel policy, according to the terms of
                the policy.

The Employer shall provide MERS with the name, address, Social Security Number, and date of
birth for each Eligible Employee, as defined by the Participation Agreement on Employee
Enrollment and Beneficiary Designation forms to be provided by MERS Health Care Savings
Program.


                         EMPLOYER CONTRIBUTIONS
                   TO THE HEALTH CARE SAVIN GS PROGRAM

        The Participating Employer hereby elects to make contributions to the Trust. Once you
have determined the contribution structure, language should be added in the appropriate area
below. Contributions shall be made on the same basis within each Covered Group specified in
this agreement, and remitted to MERS as directed by the Program Administrator along with the
Participation Report, to be credited to the individual accounts of Eligible Employees as follows:

        Check one or more, as applicable:

        IZl     Basic Employer (Before-Tax) Contributions

These employer contributions may be made as a percentage of salary and/or by a specified dollar
amount. Identify below the basic employer contribution formula to be applied to the covered
groups within the Health Care Savings Program identified in this agreement.

Contribution structure (specify): All employees will receive $93.08 per month




        •        Vesting Cycle For Basic Employer Contributions Only

        The employer contributions identified in this Participation Agreement are subject to the
        following vesting cycle.

                                  Years of Service       Percentage Vested




                                                              100%




HCSP-Program-Part Agmt 11-15-05                      2
        FORFEITURE PROVISION. Upon separation from the service with the Employer
prior to meeting required vesting schedule set out above, or upon Death of the Participant, prior
to meeting the required vesting schedule, a Participant's account assets shall:

        Check only one, as applicable:

                 D        Remain in the HCSP sub-trust to be reallocated among all Plan
                          Participants in on equal dollar basis
                 D        Remain in the HCSP sub-trust to be used to offset future Employer
                          Contributions
                 •        Be transferred to the Employer's Health Funding Vehicle ("RHFV").

        •        Mandatory Salary Reduction (Before-Tax) Contributions

Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory salary reduction resulting from collective bargaining or the
establishment of a personnel policy. These reductions may be made as a percentage of salary or
a specific dollar amount.
Contribution structure (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __




        •        Mandatory Leave Conversion (Before-Tax) Contributions

Before-tax Employer Contributions to the Health Care Savings Program Sub-Trust shall be made
that represent a mandatory conversion of accrued leave including, but not limited to vacation,
holiday, sick leave, or severance amounts otherwise paid out, to a cash contribution. These
contributions may be calculated as a percentage of accrued leave or a specific dollar amount
representing the accrued leave. Leave conversions may be made on an annual basis or at
separation from service, or at such other time as the Employer indicates. (Note: The leave
conversion program shall not permit employees the option of receiving cash in lieu of the
employer contribution.)

The following type of leave shall be converted to an employer cash contribution to Health Care
Savings Program:

        Check one or more, as applicable:

        •        Vacation Leave Conversion Contribution Structure:

                 D   As of _ _ _ _ _ _ _ _, _ _ _% of vacation leave must be contributed to HCSP.
                         (Annual Date or X weeks prior to termination)


                 D   Other (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __



HCSP-Program-Part Agmt 11-15-05                                          3
        •        Sick Leave Conversion Contribution Structure:
                 0 As of _ _ _ _ _ _ _ _ _ _ _ _% of sick leave must be contributed to HCSP.
                            (Annual Date or X We/o $     22,500    $                   0.00%
5200     Operating Supplies                                1,137                970             800                113         14%              800                        0.00%
5300     Contractual Services                             24,176             24,615          23,200                900          4%           23,100              (100)    -0.43%
5400     Other Expenses                                                                                             75         75%              100               100      0.00%
5700     Capital Outlays                                                                                                        NIA                                        0.00%
5900     other Financin Uses                                                                                                    N/A                                        0.00%
                                                $         45,406   $         43,578   $       46,500   $         1,240          3% $          46,500   $                   0.00%
                                                $      4,357,541   $      4.498,897   $    4,527,589   $       345,311          8% $       4,527,589   $                   0.00%
       First Quarter 2008 Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                 Actual As                                   % Change
                                                                                                Original Budget Actual Through    % of          Revised      Change From     From 2008
                                                              Actual 2006        Actual 2007    Estimate 2008    March 2008      Revised     Estimate 2008   2008 Original    Original

70775 General Recreation
5100     Salaries & Benefits                              $         86,047   $        88,539    $     101,748    $     25,405         25% $       101,748    $                0.00%
5200     Operating Supplies                                         24,263            24,170           29,000           1,305          5%          29,000                     0.00%
5300     Contractual Services                                      186,107           150,924          135,364          10,543          8%         138,169            2,805    2.07%
5400     other Expenses                                              1,861               889            3,500             440         13%           3,500                     0.00%
5700     Capital Outlays                                             1,182                              7,000           1,175         17%           7,000                     0.00%
5900     other Financing Uses                                                                                                          N/A                                    0.00%
                                                          $        299,460   $       264,522    $     276,612    $     38,868         14% $       279,417    $       2,805    1.01%
80387 Environmental Services
5100     Salaries & Benefits                              $        116,175   $       123,848    $     136,296    $     30,486         22% $       136,296    $                0.00%
5200     Operating Supplies                                          6,520              7,047           6,000             515          9%           6,000                     0.00%
5300     Contractual Services                                      202,397           199,019          245,586           6,982          3%         245,586                     0.00%
5400     Other Expenses                                                                                   500                          0%             500                      0.00%
5700     Capital Outlays                                               404              2,852           3,000                          0%           3,000                      0.00%
5900     Other Financing Uses                                                                                                          N/A                                     0.00%
                                                          $        325,496   $        332,766   $     391,382    $     37,983         10% $       391,382    $                 0.00%
                                                          $        624,956   $        597,288   $     667,994    $     76,851         11% $       670,799    $       2,805

10875 Other - Contributions to Outside Agencies
        Muskegon Area Transit (MATS)                      $        80,164    $       180,880    $      80,164    $     20,041         25% $        80,164                      0.00%
        Neighborhood Association Grants                            19,450                              19,500          19,252         99%          19,500                      0.00%
        Muskegon Area First                                        45,568                              45,660          22,784         50'%         45,660                      0.00%
        Veterans Memorial Day Costs                                 2,044                               6,000                          0%            6,000                     0.00%
        Neighborhoods of Choice                                                                                                        N/A                                     0.00%
        Lakeside Business District                                  2,500                               2,500                          0%            2,500                     0.00%
        211 Service                                                                                     2,500                          0%            2,500                     0.00%
        Institute for Healing Racism                                                                    1,000                          0%            1,000                     0.00%
        MLK Diversity Program                                                                           1,000           1,000        100%            1,000                     0.00%
        Muskegon Area Labor Management (MALMC)                       1,000                              1,000                          0%            1,000                     0.00%
        Muskegon County and Humane Society - Feral Cats            25,287                              25,000           6,770         27%          25,000                      0.00%
        Other                                                                                                                          N/A                                     0.00%
       Contributions To Outside Agencies                  $        176,013   $        180,880   $     184,324    $     69,847         38% $       184,324    $                 0.00%
                                                          $        176,013   $        180,880   $     184,324    $     69,847         38% $       184,324    $                 0.00%



       Total Customer Value Added Activities              $     18,104,979   $     18,131,496   $ 18,275,786 $       3,514,758        19% $ 18,308,591       $      32,805     0.18%
       As a Percent of Total General Fund
       Expenditures                                                  73.9%              73.1%            73.8%           74.1%                       73.8%
       First Quarter 2008 Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                         Actual As                                          %Change
                                                                                      Original Budget Actual Through       % of         Revised       Change From           From 2008
                                                    Actual 2006        Actual 2007    Estimate 2008       March 2008     Revised     Estimate 2008        2008 Original      Original

       II. Business Value Added Activities

10101 City Commission
5100     Salaries & Benefits                    $         62,186   $         62,251   $      64,428   $        15,264         24% $        64,428     $                      0.00%
5200     Operating Supplies                               12,925             11,824          12,000                            0%          12,000                            0.00%
5300     Contractual Services                              3,023              2,335           1,800               228         13%           1,800                            0.00%
5400     Other Expenses                                    1,811              3,064           4,000               256          6%           4,000                            0.00%
5700     Capital Outlays                                   8,724                988             900               225         25%             900                            0.00%
5900     Other Financing Uses                                                                                                  N/A                                           0.00%
                                                $         88,669   $         80,462   $      83,128   $        15,973         19% $        83,1'.?8   $                      0.00%
10102 City Promotions & Public Relations
5100     Salaries & Benefits                    $                  $                  $               $                        N/A $                  $                      0.00%
5200     Operating Supplies                                  168                985                                34         34%             100                    100      0.00%
5300     Contractual Services                              5,235             10,708          10,935             1,829         17%          10,835                   (100)    -0.91%
5400     Other Expenses                                                           2                                            N/A                                            0.00%
5700     Capital Outlays                                                                                                       N/A                                           0.00%
5900     Other Financing Uses                                                                                                  N/A                                           0.00%
                                                $          5,403   $         11,695   $      10,935   $         1,863         17% $        10,935     $                      0.00%
10172 City Manager
5100     Salaries & Benefits                    $        204,228   $       208,363    $     212,103   $        59,868         28% $       212,103     $                       0.00%
5200     Operating Supplies                                1,790             1,613            1,800                40          2%           1,800                             0.00%
5300     Contractual Services                              3,035             2,446            2,800               316         11%           2,800                             0.00%
5400     other Expenses                                      639             1,153            1,300               150         12%           1,300                             0.00%
5700     Capital Outlays                                                       272              524             1,520        290%             524                             0.00%
5900     Other Financing Uses                                                                                                  N/A                                            0.00%
                                                $        209,692   $        213,847   $     218,527   $        61,894         28% $       218,527     $                       0.00%
10145 City Attorney
5100     Salaries & Benefits                    $                  $                  $               $                        N/A $                  $                       0.00%
5200     Operating Supplies                                                     790           1,338                            0%           1,338                             0.00%
5300     Contractual Services                            424,117            439,644         425,000           111,765         26%         425,000                             0.00%
5400     Other Expenses                                                                                                        N/A                                            0.00%
5700     Capital Outlays                                                                                                       N/A                                            0.00%
5900     Other Financing Uses                                                                                                  N/A                                            0.00%
                                                $        424,117   $        440,434   $     426,338   $       111,765         26% $       426,338     $                       0.00%
                                                $        727,881   $        746,438   $     738,928   $       191,495         26% $       738,928     $                       0.00%

20173 Administration
5100     Salaries & Benefits                    $        150,764   $        117,263   $     120,108   $         8,372           7% $       120,108    $                       0.00%
5200     Operating Supplies                                1,511              1,083           1,200               (10)         -1%           1,200                            0.00%
5300     Contractual Services                              6,767              7,782           8,400               135           2%           8,400                            0.00%
5400     Other Expenses                                      235                109             500                             0%             500                            0.00%
5700     Capital Outlays                                     564                206             253                             0%             253                            0.00%
5900     Other Financing Uses                                                                                                  N/A                                            0.00%
                                                $        159,841   $        126,443   $     130,461   $         8,497           7% $       130,461    $                       0.00%
       First Quarter 2008 Budget Reforecast • General Fund
       General Fund Expenditure Summary By Function

                                                                                                                       Actual As                                          %Change
                                                                                      Original Budget Actual Through     % of         Revised           Change From       From 2008
                                                    Actual 2006        Actual 2007    Estimate 2008    March 2008       Revised    Estimate 2008        2008 Original      Original
20228 Affirmative Action
5100     Salaries & Benefits                    $         30,393   $         68,661   $      72,247   $      18,438         26% $        72,247     $                      0.00%
5200     Operating Supplies                                 219                512              750             103         14%             750                            0.00%
5300     Contractual Services                              1,544              1,533           3,027             144          5%            3,027                           0.00%
5400     Other Expenses                                                         856           1,000               4          0%            1,000                           0.00%
5700     Capital Outlays                                                        163             900                          0%            1,200                  300      33.33%
5900     Other Financin Uses                                                                                                 N/A                                           0.00%
                                                $         32,156   $         71,725   $      77,924   $      18,689         24% $        78,224     $             300      0.38%
20744 Julia Hackley Internships
5100     Salaries & Benefits                    $          4,350   $          5,374   $               $                       0% $         1,000 $              1,000      0.00%
5200     Operating Supplies                                                                                                   0%             877                  877       0.00%
5300     Contractual Services                                                                                                N/A                                            0.00%
5400     Other Expenses                                                                                                      N/A                                            0.00%
5700     Capital Outlays                                                                                                     N/A                                            0.00%
5900     Other Financin Uses                                                                                                 N/A                                            0.00%
                                                $          4,350   $          5,374   $               $                       0% $         1,877 $               1,877      0.00%
20215 City Clerk & Elections
5100     Salaries & Benefits                    $        241,766 $          241,725 $       286,184 $        64,017         22% $       286,184 $                           0.00%
5200     Operating Supplies                               31,892             21,443          26,617           3,519         13%          26,617                             0.00%
5300     Contractual Services                             21,830             11,670          16,750           2,562         15%          16,750                             0.00%
5400     Other Expenses                                    1,778              1,383           2,500             308         12%           2,500                             0.00%
5700     Capital Outlays                                     275              1,388           1,000                          0%           1,000                             0.00%
5900     Other Financin Uses                                                                                                 N/A                                            0.00%
                                                $        297,541   $        277,609   $     333,051   $      70,406         21% $       333,051     $                       0.00%
20220 Civil Service
5100     Salaries & Benefits                    $        145,934 $          131,159 $       152,219 $        35,200         23% $        152,219 $                          0.00%
5200     Operating Supplies                                8,594              5,621           7,000           1,034         15%            7,000                            0.00%
5300     Contractual Services                             18,071             22,713          17,509           2,104         12%           17,509                            0,00%
5400     Other Expenses                                    3,300              3,651           3,550                          0%            2,550                (1,000)    -28.17%
5700     Capital Outlays                                                        617             277             848         66%            1,277                 1,000     361.01%
5900     Other Financin Uses                                                                                                 NIA                                            0.00%
                                                $        175,899   $        163,761   $     180,555 $        39,186         22% $        180,555 $                          0.00%
                                                $        669,787   $        644,912   $     721,991 $       136,778         19% $        724,168 $               2,177      0,30%

30202 Finance Administration
5100     Salaries & Benefits                    $        325,506   $        331,273   $     345.455 $        92,335          27% $       345,455 $                          0.00%
5200     Operating Supplies                                6,627              5,488           5,293             925          17%           5,293                            0.00%
5300     Contractual Services                             93,703             78,509          76,100          26,653          35%          76,100                            0.00%
5400     Other Expenses                                      303                413           2,750             473          17%           2,750                            0.00%
5700     Capital Outlays                                   4,176              7,829           1,500                           0%           1,500                            0.00%
5900     Other Financin Uses                                                                                                 N/A                                            0.00%
                                                $        430,315   $        423,512    $    431,098   $     120,386          28% $       431,09_8   $                       0.00%
       First Quarter 2008 Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                       Actual As                                        %Change
                                                                                      Original Budget Actual Through     % of          Revised          Change From     From 2008
                                                    Actual 2006        Actual 2007    Estimate 2008    March 2008      Revised     Estimate 2008        2008 Original    Original
30209 Assessing Services
5100     Salaries & Benefits                    $          6,343   $          6,703   $       6,366    $      5,439         85% $          6,366    $                    0.00%
5200     Operating Supplies                                                                                                  N/A                                         0.00%
5300     Contractual Services                           436,274            453,134          425,000           1,320          0%          425,000                         0.00%
5400     Other Expenses                                                                                                      N/A                                         0.00%
5700     Capital Outlays                                                                                                     N/A                                         0.00%
5900     Other Financing Uses                                                                                                N/A                                         0.00%
                                                $       442,617    $       459,837    $     431,366    $      6.759          2% $        431,366    $                    0.00%
30805 Arena Administration
5100     Salaries & Benefits                    $                  $                  $                $                     N/A $                  $                     0.00%
5200     Operating Supplies                                                                                                  N/A                                          0.00%
5300     Contractual Services                            141,030           267,883          235,000                           0%         235,000                          0.00%
5400     other Expenses                                        2               129                                           N/A                                          0.00%
5700     Capital Outlays                                                     1,422                                           N/A                                          0.00%
5900     Other Financin Uses                                                                                                 N/A                                          0.00%
                                                $        141,032   $       269,434    $     235,000    $                      0%   $     235,000    $                     0.00%
30205 Income Tax Administration
5100     Salaries & Benefits                    $       248,514    $       287,511    $     302,472    $     74,243         25% $        302,472    $                     0.00%
5200     Operating Supplies                               16,853             18,228          17,110           4,408         26%           17,110                          0.00%
5300     Contractual Services                             66,912             66,375          59,761          20,393         34%           59,761                          0.00%
5400     Other Expenses                                      629                960             600              33          6%              600                          0.00%
5700     Capital Outlays                                   2,867                360             500                          0%              500                          0.00%
5900     Other Flnancin Uses                                                                                                 N/A                                          0.00%
                                                $        335,775   $        373,434   $     380,443    $     99,077         26% $        380,443    $                     0.00%
30253 City Treasurer
5100     Salaries & Benefits                    $        273,532   $        245,360   $     312,634    $     61,879         20% $         312,634   $                     0.00%
5200     Operating Supplies                               29,099             28,725          34,200           5,640         16%            34,200                         0.00%
5300     Contractual Services                             79,985             66,420          67,822           9,548         14%            67,822                         0.00%
5400     other Expenses                                      568                553            1,500                         0%             1,500                         0.00%
5700     Capital Outlays                                   8,591                              2,000             600         30%             2,000                         0.00%
5900     Other Financin Uses                                                                                                 N/A                                          0.00%
                                                $        391,775   $        341,058   $     418,156    $     77,667         19% $         418,156   $                     0.00%
30248 Information Systems Administration
5100     Salaries & Benefits                    $        241,116   $        250,554   $     260,697    $     70,373         27% $         260,697   $                     0.00%
5200     Operating Supplies                                   81                170           5,500              52          1%             5,500                         0.00%
5300     Contractual Services                             28,103             50,392          61,759          31,623         51%            61,759                         0.00%
5400     Other Expenses                                    6,765                328          11,000              19          0%            11,000                         0.00%
5700     Capital Outlays                                  39,001             62,801          19,700              48          0%            19,700                         0.00%
5900     Other Financin Uses                                                                                                 N/A                                          0.00%
                                                $        315,066   $        364,245   $      358,656   $    102,115         28% $         358,656   $                     0.00%
                                                $      2,056,580   $      2,231,520   $    2,254,719   $    406,004         18% $       2,254,719   $                     0.00%
       First Quarter 2008 Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                         Actual As                                        %Change
                                                                                      Original Budget Actual Through       % of        Revised       Change From          From 2008
                                                    Actual 2006        Actual 2007    Estimate 2008        March 2008    Revised     Estimate 2008       2008 Original     Original


60265 City Hall Maintenance
5100     Salaries & Benefits                    $         63,507   $         67,232   $      66,339    $        18,923        29% $        66,339    $                     0.00%
5200     Operating Supplies                               13,764             10,883          13,375                700         5%          13,375                          0.00%
5300     Contractual Services                           186,976             177,747         180,000             14,917         8%         180,000                          0.00%
5400     Other Expenses                                                                                                        N/A                                         0.00%
5700     Capital Outlays                                                        719           8,000                            0%            8,000                         0.00%
5900     Other Financin Uses                                                                                                   N/A                                         0.00%
                                                $       264.247    $       256,581    $     267,714    $        34,540        13% $       267,714 $                        0.00%
                                                $       264,247    $       256,581    $     267,714    $        34,540        13% $       267,714 __ $                     0.00%


80400 Planning, Zoning and Economic Development
5100     Salaries & Benefits                    $        397,226   $        403,843   $     446,174 $          112,249        25% $       446,174    $                      0.00%
5200     Operating Supplies                                6,381              4,821           5,600              1,435        26%           5,600                           0.00%
5300     Contractual Services                             28,840             44,965          46,500             19,100        41%          46,500                           0.00%
5400     other Expenses                                    2,776              3,391           5,000                358         7%           5,000                           0.00%
5700     Capital Outlays                                   2,492              5,093           2,000                            0%           2,000                           0.00%
5900     Other Financin Uses                                                                                                   N/A                                          0.00%
                                                $        437,715   $        462,113   $     505,274    $       133,142        26% $       505,274    $                      0.00%
                                                $        437,715   $        462,113   $     505,274    $       133,142        26% $       505,274    $                      0.00%

       Total Business Value Added Activities    $      4,156,210 $        4,341,564   $   4,488,626 $          901,959        20% $      4,490,803   $            2,177     0.05%
       As a Percent of Total General Fund
       Expenditures                                        17.0%              17.5%            18.1%             19.0%                       18.1%
        First Quarter 2008 Budget Reforecast - General Fund
        General Fund Expenditure Summary By Function

                                                                                                                                    Actual As                                        % Change
                                                                                                   Original Budget Actual Through     % of         Revised      Change From          From 2008
                                                                 Actual 2006        Actual 2007    Estimate 2008    March 2008      Revised     Estimate 2008       200~ Original     Original
        Ill. Fixed Budget Items

30999 Transfers To Other Funds
          Major Street Fund                                  $       300,000    $       200,000    $               $                      N/A $                 $                     0.00%
          Local Street Fund                                          480,000            480,000          480,000         120,000         25%         480,000                          0,00%
          Budget Stabilization Fund                                  150,000            250,000                                           NIA                                         0.00%
          LC. Walker Arena Fund (Operating Subsidy)                  310,000                                                              N/A                                         0.00%
          Arena Improvement Fund                                      60,000                                                              N/A                                         0.00%
          Public Improvement Fund (Fire Equipment Reserve)           150,000             150,000         150,000          37,500         25%         150,000                          0.00%
          State Grants Fund (Grant Matches)                                              154,880                                          N/A                                         0.00%
          Marina                                                       40,000             40,000          40,000                          0%          40,000                          0.00%
          Sidewalk                                                    150,000           300,000                                           N/A                                         0.00%
          MOD State Rehab Loan Fund                                                                                                       N/A                                         0.00%
          LDFA Debt Service Fund (Smartzone)                           31,262            100,000         150,000          37,500         25%         150,000                          0.00%
          General Insurance                                                               28,046          28,046           7,011         25%          28,046                          0.00%
                                                             $      1,671,262   $      1,702,926   $     848,046   $     202,011         24% $       848,046    $                     0.00%

30851   General Insurance                                    $       334,748    $       350,385    $     368,834   $                      0% $       368,834    $                     0.00%
30906   Debt Retirement                                                 3,336            208,859         264,145         120,501         46%         264,145                          0.00%
10891   Contingency and Bad Debt Expense                              222,802                            400,000             135          0%         400,000                          0.00%
90000   Major Capital Improvements                                      5,439             65,580         134,000           1,122          1%         134,000                          0.00%
        Total Fixed-Budget Items                             $      2,237,587   $      2,327,750   $   2,015,025   $     323,769         16% $     2,015,025    $                     0.00%
        As a Percent of Total General Fund
        Expenditures                                                     9.1%               9.4%            8.1%            6.8%                         8.1%


         Total General Fund                                  $     24,498,776   $     24,800,810   $ 24,779,437    $   4,740,486         19% $ 24,814,419       $          34,982     0.14%




        Recap: Total General Fund By Expenditure Object
5100      Salaries & Benefits                                $     14,675,373   $     14,634,795   $ 15,082,550    $   3,525,969         23% $ 15,083,550       $           1,000      0.01%
5200      Operating Supplies                                          545,721            484,841        535,164           60,399         11%      526,521                  (8,643)    -1.62%
5300      Contractual Services                                      7,318,724          7,434,746      7,700,278          788,356         10%    7,712,443                  12,165      0.16%
5400      Other Expenses                                               59,725             58,031         77,200           11,084         15%       76,360                    (840)    -1.09%
5700      Capital Outlays                                             224,635            276,612        272,054           32,166         11%      303,354                  31,300     11.51%
5900      All other Financing: Uses                                 1,674,598          1,911,785      1,112,191          322,512         29%    1,112,191                              0.00%
         Total General Fund                                  $     24,498,776   $     24,800,810   $ 24,779,437    $   4,740,486         19% $ 24,814,419       $          34,982      0.14%
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                   Original Budget   Actual Through    Actual As% of   Revised Estimate   Change From
                                               Actual 2005        Actual 2007                                                                                                          Comments
                                                                                   Estimate 2008         March 2008       Revised            2008         2008Original


202 Major Streets and State Trunklines Fund
        Avallab!e Fund Balance - BOY       $       847,149    $       708,102      $     495,031     $    1,169,135                    $    1,169,135     $   674,104


        Means of Financing
         Special assessments               $       254,840    $       272,291      $     250,000     $                                 $     250,000      $
         Federal & state grants                  1,290,725          2,303,829          1,623,000                  23                        1,933,000         310,000
         Shoreline Drive Residual
         State shared revenue                    2,634,633          2,629,710          2,930,818            237,364                         2,930,818
         Interest income                           123,726            116,227            100,000               8,137                         100,000
         Operating transfers in                    200,000            200,000
         Other                                     272,589            370,376             40,000              34,810                           40,000
                                           $     4,776,513    $     5,892,433      $   4,943,818     $      280,334                    $    5,253,818     $   310.000


60900   Operating Expenditures
5100       Salaries & Benefits             $       693,692    $       663,738      $     931,004     $      254,682        27%         $     931,004      $
5200       Operating Supplies                      196,458            284,582            227,900            145,459        64%               227,900
5300       Contractual Services                    935,335          1,093,974            930,000            327,089        35%               930,000
5400       Other Expenses                             3,740                1,803            5,000                250        5%                  5,000
5700       Capital Outlays                                                                                                  NIA
                                                                                                                                                                         TRANSFER TO LOCAL IN 2007
5900       Other Financing Uses                    863,710            968,638            396,093                            0%               396,093                     ($1,200,000); DEBT SERVICE 2007
                                                                                                                                                                         ($668,137) 2008 ($396,093)

                                           $     2,692,935    $     3,012,735      $   2,489,997     $       727,480       29%          $   2,489,997     $


90000   Project Expenditures
5200       Operating Supplies              $                  $                    $                 $                      NIA         $                 $
                                                                                                                                                                       SEE "BUDGETED CAPITAL
5300       Contractual Services                  2,222,625          2,418,665          2,621,000             243,815        7%              3,361,000           4
                                                                                                                                                               ? 0,000 IMPROVEMENTS" FOR DETAIL
5700       Capital Outlays                                                                                                  NIA
                                           $     2,222,625    $     2,418,665      $   2,621,000     $       243,815        7%          $   3,361,000     $    740,000
                                           $     4,915,560    $     5,431,400      $   5,110,997     $       971,295       17%          $   5,850,997


        Available Fund Balance• EOY        $       708,102    $     1,169,135      $     327,852     $       478,174                    $     571,956     $    244,104


                                                                       '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                 Original Budget   Actual Through    Actual As% of   Revised Estimate   Change From
                                               Actual 2005        Actual 2007                                                                                                           Comments
                                                                                 Estimate 2008         March2008       Revised             2008             2008Otiginal



203     Local Streets Fund
                                                   561,833    $       648,231    $   1,725,028     $    1,389,910                    s                         (335,118)
        Available Fund Balance - BOY
                                           '                                                                                              1,389,910
                                                                                                                                                        '
        Mean:s of Financing
                                                                                 s                                                                      s
         Special assessments
         Federal & state grants            '       182,841
                                                 1,981,524    '       705,740
                                                                      240,000
                                                                                        18,000
                                                                                                   '                                 $     120,000              102,000


         Metro act fees                            140,645            140,010          140,000                                             140,000
         State shared revenue                      662,550            658,387          675,652             51,866                          675,652
         Interest income                            59,856            243,947           25,000              1,082                            25,000
         Operating transfers in                    783,219            780,000          480,000            120,000                          480,000                          FROM GENERAL FUND ($480,000)

         Other                                     247.453             15,747            5,000                475                             5,000
                                                 4,058,088          2,783,831        1,343,652 $          173,423                    s    1,445,652
                                           $                  $
                                                                                 '                                                                      $       102,000


60900   Operating Expenditures
5100      Salaries & Benefits              s       581,113    $       607,155    s     468,253     $      173,670        37%         $     468,253      s
5200      Operating Supplies                        93,783            110,130          110,000             17,117        16%               110,000
5300      Contractual Services                     791,783            863,047          790,378            224,859        28%               790,378
5400      Other Expenses                                195                384            1,000               358        36%                  1,000
5700       Capital Outlays                                                                                                NIA
5900       Other Financing Uses                                                                                           NIA
                                                 1,466,874          1,580,716        1,369,631            416,004        30%         s    1,369,631
                                           '                  $                  $                 $                                                    $


90000   Project Expenditures
5200                                       s                  $                  s                                        NIA         $                 s
5300
           Operating Supplies

           Contractual Services                  2,504,816            461,436        1,410,000
                                                                                                   '      122,709        19%               650,000
                                                                                                                                                                          SEE "BUDGETED CAPITAL
                                                                                                                                                                (?SO,OOO) IMPROVEMENTS" FOR DETAIL

                                           $     2,504,816    $       461,436    $   1,410,000     s      122,709        19%          $    650,000      $       (760,000)
                                           $     3,971,690    s     2,042,152    $   2,779,631     $      538,713        27%              2,019,631
                                                                                                                                      '
                                                                                                         1,024,620                    s     815,931
        Available Fund Balance - EOY       $       648,231    $     1,389,910

                                                                       '
                                                                                 '     289,049     $
                                                                                                                                                        '        526,882
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                       Original Budget   Actual Through    Actual As% of   Revised Estimate   Change From
                                                       Actual2005        Actual 2007                                                                                                      Comments
                                                                                       Estimate 2ooe         March 2008      Revised             2008             2008Original




257     Budget Stabilization Fund
        Available Fund Balance• BOY                $     1,350,000   $     1,500,000   $   1,350,000     $    1,750,000                    $    1,750,000     $       400,000


        Means of Financing
         Special assessments                       s                 $                 s                 $                                 $                  s
         Federal & state grants
         State shared revenue
         Charges for services
         Interest income
         Operating transfers in - General Fund            150,000            250,000
         Operating transfers in - TIFA Fund
         Operating transfers in - Insurance Fund

         Other

                                                   $      150,000    $       250,000   s                 $                                  $            - $


70805   Operating Expenditures
5100       Salaries & Benefits                     $                 $                 $                 $                      NIA         $                 $
5200       Operating Supplies                                                                                                   NIA
5300       Contractual Services                                                                                                 NIA
5400       Other Expenses                                                                                                       NIA
5700       Capital Outlays                                                                                                      NIA

5900       Other Financing Uses                                                              300,000                            NIA                                   (300,000) TRANSFER TO GENERAL FUND


                                                   $                 $                 $     300,000     $                      NIA         $                 $       (300,000)


90000   Project Expenditures
5200       Operating Supplies                      s                 $                 $                 $                      NIA         $             - s
5300       Contractual Services                                                                                                 NIA
                                                   $                 s                 $                 s                      NIA         $                 $
                                                   $                 $                 $     300,000     $                      NIA         $


        Available Fund Balance• EOY                s     i ,500,000 $      1,750,000   $   1,050,000     $     1,750,000                    s   1,750,000     $        700,000
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                          Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                       Actuat2005        Actual 2007                                                                                                 Comments
                                                                                          Estimate 2008      March 2008         Revised            2008             2008Original



260     Farmers' Market Improvement Fund
        Available Fund Balance• BOY                $       24,483    s        25.465 $           26,765     s      26,755                    $      26,755      $             (10)


        Means of Financing
         Special assessments                       $                 $                    $                 $                                $                  $
         Federal & state grants
         State shared revenue
         Charges for services
         Interest income                                       982                1,290              700              250                               700
         Operating transfers in - General Fund
         Operating transfers in - TIFA Fund
         Operating transfers in - Insurance Fund
         Other                                                                                       300                                                300
                                                   $           982   $            1,290   $        1,000    $         250                    s        1,000     $


70805   Operating Expenditures
5100       Salaries & Benefits                     s                 $                    s                 $                     NIA         $            - s
5200       Operating Supplies                                                                                                     NIA
5300       Contractual Services                                                                                                   NIA
5400       Other Expenses                                                                                                         NIA
5700       Capital Outlays                                                                                                        NIA
5900       Other Financing Uses                                                                                                   NIA
                                                   s                                                                              NIA         s            - $
                                                                     '
                                                                                          $
                                                                                                            '
90000   Project Expenditures
                                                                     s                                      s                     NIA         $
                                                   '                                      '
5200       Operating Supplies                                                                                                                                   $

5300       Contractual Services                                                                   25,000                          0%                 25,000
                                                   $                 $                    $       25,000    $                     0%          $      25,000     $
                                                   $                                      $       25,000                          0%          s      25,000
                                                                     '                                      '
                                                   s                           26,755              2,765           27,005                     s       2,755     $             (10)
        Available Fund Balance• EOY                         25,465   $

                                                                              '
                                                                                          $
                                                                                                            '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                          Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                       Actual 2005        Actual2007                                                                                           Comments
                                                                                          Estimate 2008         March2008      Revised            2008          2008Original



264     Criminal Forfeitures Fund
        Available Fund Balance - BOY               $       133,244    $      157,835      $     115,835     $      138,160                   s     138,160      $     22,325


        Means of Financing
         Special assessments                       s                  $                   s                 $                                $                  s
         Federal & state grants
         State shared revenue
         Charges for services
         Interest income                                     6,023                7,566           3,000              1,337                            3,000
         Operating transfers in - General Fund
         Operating transfers in - TIFA Fund
         Operating transfers in - Insurance Fund
         Other                                              74,331             21,143            16,000             14,849                           16,000
                                                            80,354             28,709                               16,186                   s
                                                   '                  $                   $      19,000     $                                        19,000     $


70805   Operating Expenditures
5100       Salaries & Serieflts                                                                             s                     NIA                           s
5200       Operating Supplies
                                                   $
                                                                      '                   $
                                                                                                                                  NIA
                                                                                                                                             $


5300       Contractual Services                               1,644                949           45,000                           0%                 45,000
5400       Other Expenses                                                                                                         NIA
5700       Capital Outlays                                  54,119             47,435            18,000             37,494      208%                 18,000
5900       Other Financing Uses                                                                                                   NIA
                                                   $        55,763    $        48,384     $      63,000     $       37,494       60%         s       63,000     $


90000   Project Expenditures
           Operating Supplies                                                                                                     NIA                           s
5200
5300       Contractual Services
                                                   $                  $                   $
                                                                                                            '                     NIA
                                                                                                                                              $


                                                   $                  s                   $                 s                     NIA         $                 $
                                                   $        55,763    s        48,384     $      63,000     s       37,494       60%          $      63,000


        Available Fund Balance - EOY               $       157,835    $       138,160     $      71,835     $      116,852                    $      94,160     $     22,325

                                                                              '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                          Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                       AClual2005        Actual 2007
                                                                                          Estimate 2008      March 2008        Revised            2008              2008Original
                                                                                                                                                                                     Comments



285     Tree Replacement Fund
        Available Fund Balance - BOY               $        13,561   $        10,210      $      10,910     $       9,108                    $        9,108     $         (1,802)


        Means of Financing
         Special assessments                       $                 $                    $                 $                                $                  $
         Federal & state grants                                                                    3,000                                              3,000
         State shared revenue
         Charges for services                                                                        400              545                                400
         Interest income                                       488                 522               500               93                                500
         Operating transfers in - General Fund
         Operating transfers in - TIFA Fund
         Operating transfers in - Insurance Fund
         Other                                                                    1,400                               400
                                                   $           488   $            1,922   $        3,900    $       1,038                     $       3,900     $


70805   Operating Expenditures
5100       Salaries & Benefits                     $                 $                    $                 $                     NIA         $                 $
5200       Operating Supplies                                3,839                3,024            3,800              163         4%                  3,800
5300       Contractual Services                                                                                                   NIA
5400       Other Expenses                                                                                                         NIA
5700       Capital Outlays                                                                                                        NIA
5900       Other Financing Uses                                                                                                   NIA
                                                   $         3,839   $            3,024   $        3,800    $         163         4%          $       3,800     $


90000   Project Expenditures
5200       Operating Supplies                      $                 $                    $                 $                     NIA         $                 $
5300       Contractual Services                                                                                                   NIA
                                                   $                 $                    $                 $                     NIA         $                 $
                                                   $         3,839   $            3,024   $        3,800    $          163        4%          $       3,800


        Available Fund Balance• EOY                $        10,210   $            9,108   $       11,010    $        9,983                    $       9,208     $          (1,802)

                                                                              '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                            Original Budget   Actu;,I Through      Actual As% of   Revised Estimate   Change From
                                                       Actual 2005           Actual 2007                                                                                                     Comments
                                                                                            Estimate 2008         March 2008          Revised           2008              2008Original



289     Local Development Finance Authori!}' I Fund - Port Ci!}' Industrial Park
        Available Fund Balance - BOY               $            312      $            323   $          333    $           335                      $           335    $                  2


        Means of Financing
         Property taxes                            $                     $                  $                 $                                    $                  $
         Federal & state grants
         State shared revenue
         Charges for seNices
         Interest income                                         11                    12               10                     3                                10
         Operating transfers in - General Fund
         Operating transfers in - TIFA Fund
         Operating transfers in - Insurance Fund
         other
                                                   $             11      $             12 $             10 $                   3                    $           10 $


70805   Operating Expenditures
5100       Salaries & Benefits                     $                     $                  $                 $                         NIA         $                 s
5200       Operating Supplies                                                                                                           NIA
5300       Contractual Services                                                                                                         NIA
5400       Other Expenses                                                                                                               NIA
5700       Capital Outlays                                                                                                              NIA
5900       Other Financing Uses                                                                                                         NIA
                                                   $                 .   $                  $                 $                         NIA         $            • $


90000   Project Expenditures
5200       Operating Supplies                      s                     $                  $                 $                         NIA         $            .    $

5300       Contractual Services                                                                                                         NIA
                                                   $                     $                  s                 s                         NIA         $                 $
                                                   $                     $                  $                 $                         NIA         $


        Available Fund Balance - EOY               $            323      s            335   $          343    $           338                       $          345    $                  2


                                                                                  '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                           Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                       Actual 2005        Actual 2007                                                                                               Comments
                                                                                           Estimate 2008      March200B         Revised            2008              2008Original




288     Local Development Finance Authori!Y II Fund - Medendorp Industrial Park
        Available Fund Balance - BOY               $        22,321    $        23,216      $      24,216     $      24,393                    $      24,393      $            177


        Means of Financing
         Property taxes                            $                  $                    $                 $                                $                  $
         Federal & state grants
         State shared revenue
         Charges for services
         Interest income                                        895                1,177            1,000              228                             1,000
         Operating transfers in - General Fund
         Operating transfers in - TIFA Fund
         Operating transfers in - Insurance Fund
         Other
                                                   $            895   $            1,177   $        1,000    $         228                    $        1,000     $


70805   Operating Expenditures
5100       Salaries & Beriefits                    $                  $                    $                 $                     NIA        $                  $
5200       Operating Supplies                                                                                                      NIA
5300       Contractual Services                                                                                                    NIA
5400       Other Expenses                                                                                                          NIA
5700       Capital Outlays                                                                                                         NIA
5900       Other Financing Uses                                                                                                    NIA
                                                   $                  $                    $                 $                     NIA         $                 $


90000   Project Expenditures
5200       Operating Supplies                      $                  $                    $                 $                     NIA         $                 $
5300       Contractual Services                                                                                                    NIA
                                                   $
                                                   $                  '
                                                                      $
                                                                                           $
                                                                                           $
                                                                                                             $
                                                                                                             $
                                                                                                                                   NIA
                                                                                                                                   NIA
                                                                                                                                               $
                                                                                                                                               $
                                                                                                                                                                 $




        Available Fund Balance - EOY               $        23,216    $        24,393      $       25,216    $      24,621                     $      25,393     $            177

                                                                               "
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                         Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                     Actual 2005        Actual 2007                                                                                                          Comments
                                                                                         Estimate 2008      March 2008         Revised           2008              2008Original



290     Local Development Finance Aulhori!,1 Ill Fund - Edison Landing (Smartzone)
        Available Fund Balance - BOY             $       282,397    $       104,991      $      26,344     $      27,275                    $      27,275      $            931


        Means of Financing
         Property taxes                          $        17,908    $        28,901      $      38,000 $                                    $      38,000      $
         Federal & state grants
         State shared revenue
         Charges for services
         Interest income                                  10,183                 4,881            1,500              749                             1,500
         Operating transfers in - General Fund                              100,000            150,000            37,500                          150,000
                                                                                                                                                                                  COMMUNITY FOUNDATION
         Other                                                               75,000             75,000                                              75,000
                                                                                                                                                                                  CONTRIBUTION
                                                 $        28,091    $       208,782      $     264,500     $      38,249                    $     264,500      $


70805   Operating Expenditures
5100       Salaries & Benefits                   $                  $                    $                 $                    NIA         $                  $
5200       Operating Supplies                                                                                                    NIA
5300       Contractual Services                               350                1,000            1,000                          0%                  1,000
5400       Other Expenses                                                                                                        NIA
5700       Capital Outlays                                                                                                       NIA
5900       Other Financing Uses                          205,147            285,498            282,547          102,573         36%               282,547
                                                 $       205,497    $       286,498      $     283,547     $     102,573        36%         $     283,547      s

90000   Project Expenditures
5200       Operating Supplies                    $                  $                    $                 $                     NIA        $                  $
5300       Contractual Services                                                                                                  NIA
                                                 $                  $                    $                 $                     NIA         $                 $
                                                 $       205,497    $       286,498      $     283,547     $     102,573        36%          $    283,547


        Available Fund Balance - EOY             $       104,991             27,275      s        7,297          (37,049)                            8,228
                                                                    $

                                                                             '
                                                                                                           $                                 $
                                                                                                                                                               '            931
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds

                                                       Actual2005        Actual 2007
                                                                                          Original Budget   Actual Through   Actual As % of Revised Estimate   Change From
                                                                                                                                                                                               Comments
                                                                                          Estimate 2008      March 2008         Revised           2008             2008Original



305     Tax Increment Finance Authority Fund
        Available Fund Balance - BOY               $         3,355   $            8,758   $       5,893     s       6,352                    $       6,352     s            459

        Means of Financing
         Property taxes                            $        58,740   $        56,835 $           47,000     $                                $      47,000     $
         Federal & state grants
         State shared revenue
         Charges for services
         Interest Income                                       663                 759               200               72                              200
         Operating transfers in - General Fund
         Operating transfers in - TIFA Fund
         Operating transfers in - Insurance Fund
         Other
                                                   $        59,403   $        57,594      $      47,200     $          72                    $      47,200     $


70805   Operating Expenditures
5100      Salaries & Benefits                      s                 $                    s                 $                     NIA        $                 s
5200       Operating Supplies                                                                                                     NIA
5300      Contractual Services                                                                                                    NIA
5400       Other Expenses                                                                                                         NIA
5700       Capital Outlays                                                                                                        NIA

5900       Other Financing Uses                             54,000            60,D00             50,000                           0%                50,000                        • TO GENERAL FUND FOR ARENA

                                                   $        54,000   $        60,000      $      50,000     $                     0%         $      50,000     $


90000   Project Expenditures
5200       Operating Supplies                      $                 $                    $                 $                     NIA        $                 $
5300       Contractual SeNices                                                                                                    NIA
                                                   $                 $                                                            NIA        s
                                                   $        54,0D0   $        60,000      '
                                                                                          $      50,000     '
                                                                                                            $                     0%         $      50,000
                                                                                                                                                               $




        Available Fund Balance - EOY               s         8,758   $            6,352   $                 $                                s                              459

                                                                              '
                                                                                                   3,093            6,424                            3,552
                                                                                                                                                               '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                       Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                       Actual 2005       Actual2007                                                                                                           Comments
                                                                                       Estimate 2008      March2008         Revised             2008             2008Original

394     Downtown Development Authori!}r Fund
        Available Fund Balance - BOY               $        50,072 $        (103,996) $       26.472 $         (58,608)                   s      (58,608) $           (85,080}


        Means of Financing
         Property taxes                            s       350,401   $      476,460    s     456,000     $                                $     456,000      s
         Federal & state grants
         State proposal A reimbursement revenue            499,537
         Charges for services
         Interest income                                     3,664                             1,500                                               1,500
         Operating transfers in - General Fund
         Operating transfers in - TJFA Fund
         Operating transfers in - Insurance Fund
         Other
                                                   $       853,602   $      476,460    $     457,500     $                                s     457,500      $


70805   Operating Expenditures
5100       Salaries & Benefits                     $                 $                 $                 $                     N/A        $                  $
5200       Operating Supplies                                                                                                  NIA
5300       Contractual Services                            661,927            83,330                                           N/A
5400       Other Expenses                                                                     10,000            10,000       100%                 10,000                        - MAIN STREET PROGRAM
5700       Capital Outlays                                                                                                     N/A
                                                                                                                                                                                 DEBT SERVICE ($339,292 BONDS;
5900       Other Financing Uses                            345,743           347,742         439,292                           0%               439,292
                                                                                                                                                                                 $100,000 ULA)
                                                   $     1,007,670   $       431,072   $     449,292     $      10,000         2%          $    449,292      $


90000   Project E:,,:penditures
5200       Operating Supplies                      $                 $                 $                 $                     N/A         $                 $
5300       Contractual Services                                                                                                N/A
                                                   $                 $                 $                 $                     N/A        s
                                                   s     1,007,670   $       431,072   $     449,292     $      10,000         2%          $    449,292


                                                          (103,996) $        (58,608) $
        Available Fund Balance - EOY               $                                          34,680
                                                                                                         '     (68,608)                    $     {50,400) $           (85,080)
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                   Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                               Actual 2005        Actual 2007                         March 2008         Revised            2008          2008Original
                                                                                                                                                                          Comments
                                                                                   Estimate 2008



408 Arena Improvement Fund
        Available Fund Balance - BOY       $                  $        79,386      s      76.486     $      76,724                    $       76,724     s         238


        Means of Financing
         Special assessments               $                  $                    $                 $                                $             - $
         Federal & state grants
         State shared revenue
         Charges for services                       11,978             37,363             40,000            17,937                            40,000
         Interest income                                395                3,603            2,000              826                             2,000
         Operating transfers in                     74.743
         Other
                                           $        87,116    $        40,966      $      42,000     $      18,763                     $      42,000     $


30906   Operating Expenditures
5100       Salaries & Benefits             $                  $                    $                 $                     NIA         $            -    $
5200       Operating Supplies                                                                                              0%
5300       Contractual Services                       7,730            43,628             25,000             5,850         NIA                25,000
5400       Other Expenses                                                                                                  NIA
5700       Capital Outlays                                                                                                 NIA
5900       Other Financing Uses                                                                                            NIA
                                           $          7,730   $        43,628      $      25,000     $       5,850        23%          $      25,000


90000   Project Expenditures
5200       Operating Supplies              $                  $                    $                 $                     NIA         $            -    $
5300       Contractual Services                                                                                            NIA
5400       Other Expenses                                                                                                  NIA
5900       Other Financing Uses                                                                                            NIA
                                           $                  $                    $                 $                     NIA         $                 $
                                           $          7,730   $         43,628     $       25,000    $       5,850        23%          $      25,000


        Available Fund Balance. EOY        $         79,386   $         76,724     $       93,486    $      89,637                     $      93,724     $          238
                                                                       X
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                               Actual2005        Actual 2007                                                                                                         Comments
                                                                                Estimate 2008      March2008         Revised             2008             2008Original



403     Sidewalk lmerovement Fund
        Available Fund Balance - BOY       $      919,113    $       902,104    $     751,276
                                                                                                  '
                                                                                                      1,017,584
                                                                                                                                   '    1,017,584     $       266,308


        Means of Financing
                                                                                                                                         150,000
         Special assessments
         Federal & state grants            '
                                                   196,684   $       142,505
                                                                                '     150,000
                                                                                                  '                                $
                                                                                                                                                      '
         State shared revenue
         Charges for seivices
         Interest income                            77,177            69,753           65,000             7,777                            65,000
         Operating transfers in                    150,000           300,000
         Other


                                           '
                                                   423,861   $       512,258
                                                                                '
                                                                                      215,000     $       7,777
                                                                                                                                   '     215,000
                                                                                                                                                      '
30906   Operating Expenditures
                                                                                                                        NIA
                                                                                                  '
                                                                                                                                    $                 $
5100
5200
           Salaries & Benefits
           Operating Supplies
                                           $
                                                             '                  $
                                                                                                                        NIA
5300       Contractual Services                        950                950                                           NIA
5400       other Expenses                                                                                               NIA
5700       Capital Outlays                                                                                              NIA

                                                                                                                                                                         DEBT SERVICE ON SIDEWALK
5900       Other Financing Uses                    433,175           395,828          344,285           188,973        55%                344,285
                                                                                                                                                                         ASSESSMENT BONDS

                                                                                                                                          344,285
                                                                                                  '
                                                   434,125           396,778          344,285           188,973        55%          $                 $
                                           $
                                                             '                  '
90000   Project Expenditures
5200
5300
           Operating Supplies
           Contractual Services            '         6,745
                                                             $                  $                 $                     NIA
                                                                                                                        NIA         '                 $


5400       Other Expenses                                                                                               NIA
5900       Other Financing Uses                                                                                         NIA
                                                                                $                                       NIA         $                 $
                                           $         6,745
                                                             '                                    '
                                           $       440,870   $       396,778
                                                                                '
                                                                                      344,285     $     188,973        55%
                                                                                                                                    '     344,285


                                                                                                                                                               266,308
        Available Fund Balance. EOY
                                           '
                                                   902,104   $     1,017,584

                                                                      '
                                                                                '
                                                                                      621,991
                                                                                                  '
                                                                                                        836,388
                                                                                                                                    '     888,299
                                                                                                                                                      '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                               Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                               Actual 2005       Actual 2007                                                                                                         Comments
                                                                               Estimate 2008      March2008         Revised            2008              2008Original



404     Public Improvement Fund
        Available Fund Balance - BOY       $     1,755,346   $     4,842,311   $   1,805,088     $   2,151,037                    s    2,151,037     $       345,949


        Means of Financing
         Special assessments               $                 $                 s                 s                                $                  s
         Property taxes
         Federal & state grants
         Contributions
         Fisherman's landing Repayment
         Sales of Property                         557,066           126,736         150,000                15                          150,000
         Interest income                            97,956           198,398          60.000            34,780                            60,000
                                                                                                                                                                        GENERAL FUND TRANSFER - FIRE
         Operating transfers in                    262,965           154,047         250,000            37,500                          250,000                         EQUIPMENT RESERVE ($150,000);
                                                                                                                                                                        FROM ODA FOR ULA ($100,000}

         Other                                   5,463,335            40,592

                                           s     6,381,322   $       519,773   s     460,000     $      72,295                    $     460,000      s

30936   Operating Expenditures
5100       Salaries & Benefits             $                 s                 $                 $                     NIA        $                  $
5200       Operating Supplies                                                                                          NIA
5300       Contractual Services                                                         5.000                          0%                  5,000
5400       Other Expenses                                                                                              NIA
5700       Capital Outlays                                                                                             NIA
                                                                                                                                                                        DEBT SERVICE ($292,419); TRANSFER
5900       Other Financing Uses                  1,360,797           292,223         442,419                           0%                442,419                        TO STATE GRANTS FOR SMITH-
                                                                                                                                                                        RYERSON ($150,000)

                                           s                                   s                                                                     s
                                                 1,360,797   $       292,223         447,419
                                                                                                 '                     0%          $     447,419


90000   Project Expenditures
                                                                               I                 $                     NIA                           $
5200
5300
           Operating Supplies
           Contractual Services
                                           $                 $
                                                                                                                       NIA         '
5400       Other Expenses                                                                                              NIA

5700       Capital Outlays                       1,933,560         2,918,824          65,000            74,828        35%                215,000              150,000

                                                                   2,918,824                     s      74,828                                       s
                                           $
                                           $
                                                 1,933,560
                                                 3,294,357   's    3,211,047
                                                                               $
                                                                               $
                                                                                      65,000
                                                                                     512,419     s      74,828
                                                                                                                      35%
                                                                                                                      11%
                                                                                                                                   $
                                                                                                                                   $
                                                                                                                                         215,000
                                                                                                                                         662,419
                                                                                                                                                              150,000




        Available Fund Balance - EOY       $     4,842,311   $     2,151,037   $   1,752,669     $   2,148,504                     $   1,948,618     $        195,949

                                                                      '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                               Actual 2005        Actual 2007                                                                                                     Comments
                                                                                Es~rnate 2008      March 2008         Revised           2008              2008Original



482     State Grants Fund
        Available Fund Balance - BOY       s           102             77,048   s                      150,102                                        s       150,054
                                                              '                             48    $                                $     150,102


        Means of Financing
                                                              s                                   s
                                                                                                                                   '
         Special assessments               $                                    $                                                                     $
         Federal & state grants                  1,538,744            386,535         727,000          263,001                          1,197,000             470,000
         Sales of Property
         Interest income

         Operating transfers in                    500,673            150,833         150,000                                              30,000            (120,000) FROM PUBLIC IMPROVEMENT FUND


         Other                                       5,000             10,000                            10,000

                                                                                                                                   s
                                                              '
                                           $     2,044,417            547,368         877,000          273,001                          1,227,000             350,000
                                                                                $
                                                                                                  '                                                   $


30936   Operating Expenditures
5100      Salaries & Benefits                                                                                           NIA                           $
5200      Operating Supplies
                                           $                  $                 $                 $
                                                                                                                        NIA        '
5300       Contractual Services                                                                                         NIA
5400       Other Expenses                                                                                               NIA
5700       Capital Outlays                                                                                              NIA
5900       Other Financing Uses                       9,276            11,473                                           NIA

                                                                                                                                    s
                                                              '                                   '
                                           $          9,276            11,473   $                                       NIA


90000   Project Expenditures
                                                                                                  $
                                           '                                                                                       '
5200       Operating Supplies                                 $                 $                                       NIA                           $
5300       Contractual Services                                                                                         NIA
                                                                                                                                                                       SEE "BUDGETED CAPITAL
5700       Capital Outlays                       1,958,195            462,841         877,000            43,927         3%              1,377,000              500,000 IMPROVEMENTS" FOR DETAIL


                                           '     1,958,195
                                                              '       462,841
                                                                                '     877,000
                                                                                                  '      43,927         3%
                                                                                                                                   '    1,377,000
                                                                                                                                                      '
                                                                                                                                                               500,000

                                                 1,967,471
                                                              '       474,314   $     877,000
                                                                                                  '      43,927         3%          $   1,377,000



                                           $                                    $                                                   $          102
                                                              '
        Available Fund Balance - EOY                77,048            150,102               48    $     379,176                                       $              54

                                                                       '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                            Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                         Actual 2005        ActuaJ 2007                                                                                                      Comments
                                                                                            Estimate 2008      March 2008        Revised            2008          2008Original




594     Marina & Launch Rame Fund
        Available Cash Balance - BOY               _!_       {13,384) S         (39,617) $          (4,943) $        20,509                    $      20,509      $     25.452

        Means of Financing
         Special assessments                       $                    $                   $                 $                                $                  $
         Federal & state grants                              534,220
         State shared revenue
         Charges for services                                267,104            281,679           260,000            75,849                          260,000
         Interest income                                                              38                                 73
                                                                                                                                                                                 $40,000 GENERAL FUND OPERATING
         Operating transfers in                              540,000             40,000            40,000                                             40,000
                                                                                                                                                                                 SUBSIDY
         Other                                                   307
                                                   s       1,341,631    $       321,717     s     300,000     $      75,922                    $     300,000      s

70756   Operating Expenditures - Marina
5100       Salaries & Benefits                     $         109,507    $       121.489     $     118,082     s      10,923         9%         $     118,082      $
5200       Operating Supplies                                  6,838             10,338              9,900              650         7%                  9,900
5300      Contractual Services                               135,350            130,462           135,000            13,806        10%               135,000
5400       Other Expenses                                         100                510                                 43        NIA
5700       Capital Outlays                                      3,836             1,641                                            NIA
5900       Other Financing Uses                                                                                                    NIA
           Other Cash Uses (e.g. Debt Principal)                                  (2,849)                                           NIA
                                                   $         255,631    $       261,591     $     262,982     $      25,422        10%         $     262,982      $


70759   Operating Expenditures• Ramps
5100       Salaries & Benefits                     $                    s                   $      15,000     s                     0%         $       15,000     s
5200       Operating Supplies                                                                        2,000                          0%                  2,000
5300       Contractual Services                                                                      5,000              923        18%                  5,000
5400       Other Expenses                                                                                                           NIA
5700       Capital Outlays                                                                                                          NIA
5900       Other Financing Uses                                                                                                     NIA
           Other Cash Uses (e.g Debt Principal)               43,794                                                                NIA
                                                   s          43,794    $                   s      22,000     $         923         4%          $      22,000     $

90000   Project Expenditures
5200       Operating Supplies                       $                   s                   $                 s                     NIA         $                 $
5300       Contractual Services                                                                                                     NIA
5700       Capital Outlays                                 1,068,439                                                                NIA
                                                    $      1,068,439    $                   $                 $                     NIA         $                 $
                                                    $      1,367,864    $       261,591     $     284,982     $      26,345         9%          s    284,982


        Available Cash Balance - EOY                $         (39,617) $         20,509     $       10,075    $      70,086                     $      35,527     $     25,452
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                             Original Budget   Actual Through    Actual As% of   Revised Estimate   Change From
                                                       Actual 2005           Actual 2007                                                                                                         Comments
                                                                                             Estimate 2008         March2008        Revised            2008         2006Original




661     Eguiement Fund
        Available Cash Balance - BOY               $     1,493,873       $     1,614,451     $   1,956,058     $    2,004,577                    $    2,004,577     $     48,519


        Means of Financing
         Special assessments                       $                 -   $                   $                 $                                 $                  $
         Federal & state grants
         State shared revenue
         Charges for services                            2,190,015             2,520,803         2,300,000            726,708                         2,300,000                      INTERDEPARTMENTAL CHARGES
         Interest income                                    59,520                85,618            60,000             17,602                            60,000
         Operating transfers in
         Other                                             136,297                80,000           100,000             16,848                          100,000                       OUTSIDE SALES OF FUEL, ETC.
                                                   $     2,385,832       $     2,686,421     $   2,460,000     $      761,158                    s    2.460,000


60932   Operating Expenditures
5100       Salaries & Benefits                     s       501,358       $       515,579     s     565,047     $      148,798        26%         $     565,047      $
5200       Operating Supplies                              817,482               844,914           649,500            205,790        32%               649,500
5300       Contractual Services                            487,678               494,272           490,370             78,516        16%               490,370
5400       Other Expenses                                     4,129                 1,351             5,000                46         1%                  5,000
                                                                                                                                                                                     SEE "BUDGETED CAPITAL
5700       Capital Outlays                                 595,851               445,596           817,750             89,699        i1%                814,370
                                                                                                                                                                          (3 ,3 BO) IMPROVEMENTS" FOR DETAIL
5900       Other Financing Uses                                                                                                       NIA
           Other Cash Uses (e.g. Debt Principal)          (141,244)                (5,417)                                            NIA
                                                   s     2,265,254       $     2,296,295     s   2,527,667     $      522,849        21%          $   2,524,287     s      (3,380)


90000   Project Expenditures
5200       Operating Supplies                      $                     $                   $                 s                      NIA         $                 $
5300       Co11tractual Services                                                                                                      NIA
5700       Capital Outlays                                                                                                            NIA
                                                   $                     $                   $                 $                      NIA         s                 $
                                                         2,265,254       $     2,296,295         2,527,667     $      522,849        21%              2,524,287
                                                   $
                                                                                             '                                                    $


        Available Cash Balance - EOY               s     1,614,451       $     2,004,577     $   1,888,391     $     2,242,886                    $   1,940,290     s     51,899
        City of Muskegon
        First Quarter 2008 Budget Reforecast • Other Funds
                                                                                         Original Budget   Actual Through    Actual As% of   Revised Estimate   Change From
                                                    Actual2005           Actual 2007                                                                                                          Comments
                                                                                         Esbmate 2008       March 2008          Revised           2008              2008Original



642     Public Service Building Fund
        Avaltab!e Cash Balance - BOY            $      176,596       $       270,889     $     296,143     $    375,313                      $     375,313      $        79,170


        Means of Financing
         Special assessments
         Federal & state grants
                                                $                    $                   $                 $
                                                                                                                                             '                  $


         State shared revenue
         Charges for seivices                          581,270               581,270           581,270          143,517                            581,270                         INTERDEPARTMENTAL CHARGES
         Interest income                                  7,755               14,061              9,000            3,132                              9,000
         Operating transfers in
         Other                                                                    100                                100
                                                $      589,025
                                                                     '       595,431     $     590,270     $    146,749                       $    590,270      $


60442   Operating Expenditures
5100       Salaries & Benefits                  $      209,305       $       214,017     $     212,047     $      53,297         25%          $    212,047      $
5200       Operating Supplies                            26,685               18,609            31,400             2,219          7%                 31,400
5300       Contractual Services                        245,699               241,077           278,965            38,473         14%               278,965
5400       Other Expenses                                 5,334                 2,056               500               (82)       -16%                    500
5700       Capital Outlays                               11,514               23,229            38,400                 41         0%                 38,400
5900       Other Financing Uses                                                                                                   NIA
        Other Cash Uses and Adjustments {e.g.
                                                         (3,805)               {7,981)                                            NIA
        Debt Principal)
                                                        494,732              491,007           561,312            93,948         17%                561,312
                                                '                    $
                                                                                         '                 $                                  $
                                                                                                                                                                '
90000   Project Expenditures
5200       Operating Supplies                   $                -   $                   $                 $                      NIA         $                 $
5300       Contractual Services                                                                                                   NIA
5700       Capital Outlays                                                                                                        NIA
                                                $                    $                   $                 $                      NIA                           $
                                                $       494,732      $       491,007     $     561,312     $      93,948         17%          '
                                                                                                                                              $     561,312


        Available Cash Balance - EOY            $       270,889      $       375,313     $     325,101     $     428,114                      $     404,271     $         79,170
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                        Original Budget   Actual Through   Actual As% of   Revised Estimate   Change From
                                                    Actual2005         Actual 2007                                                                                                           Comments
                                                                                        Estimate 2008      March 2008         Revised           2008              2008Original



643     Engineering Services Fund
        Available Cash Balance. BOY             $      145,183     s       149,528      $     147,231     $      96,427                    $       96,427     $        (50,804)


        Means of Financing
         Special assessments                    $                  $                    $                 $                                $                  $
         Federal & state grants
         State shared revenue
         Charges for services                          514,467             513,556            640,000            90,896                          640,000                          INTERDEPARTMENTAL CHARGES
         Interest income                                  4,878                 6,361            5,000            1,383                             5,000
         Operating transfers in
         Other                                                                                 25,000                                              25,000
                                                $      519,345     $       519,917      $     670,000     $      92,279                    $     670,000 $


60447   Operating Expenditures
5100       Salaries & Benefits                  $       398,181    $       321,641      $     450,474     $      70,284        16%         s     450,474      $
5200       Operating Supplies                            16,090             16,894             19,180             7,345        38%                 19,180
5300       Contractual Services                        121,761             126,832            127,915            30,381        24%               127,915
5400       Other Expenses                                 1,158                  532             2,500              558        22%                  2,500
5700       Capital Outlays                                7,377             17,093             42,000               886         2%                 42,000
5900       Other Financing Uses                                                                                                 NIA
        Other Cash Uses and Adjustments (e.g.
                                                        (36,401)            82,557                                              NIA
        Debt Princi al
                                                $       508.166    $       565,549      $     642.069     $     109,454        17%          $    642,069      $


90000   Project Expenditures
5200       Operating Supplies                   $                  $                    $                 $                     NIA         $
5300       Contractual Services                           6,834                 7,469          25,000                           0%                 25,000
5700       Capital Outlays                                                                                                      NIA
                                                $         6,834    $            7,469   s      25,000     s                     0%          $      25,000     $
                                                $       515,000    $       573,018      $     667,069     $     109,454        16%          $     667,069


        Available Cash Balance• EOY             $       149,528    $        96.427      $     150,162     s      79,252                     $      99,358     $        (50,804)

                                                                            '
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                     Original Budget   Actual Through    Actual As % of   Revised Esti!IUlle   Change From
                                                   Actual 2005        Actual 2007
                                                                                     Estimate 2008         March2008        Revised             2008               20080riginal
                                                                                                                                                                                             Comments



677     General Insurance Fund
        Available Cash Balance - BOY           $       745,060    $       841,326    $   1,064,372     $    1,206,249                     $    1,206,249               141,877
                                                                                                                                                               '
        Means of Financing
         Special assessments                                                                                                                              -
         Federal & state grants
                                               $
                                                                  '                  '                 '                                  $                    $


         State shared revenue
         Charges for seNices                         2,945,466          4,551,973        3,185,868            927,657                          3,185,868                          INTERDEPARTMENTAL CHARGES
         Interest income                                20,374             39,250           25,000              9,861                             25,000
         MERS Retireee Health Reimbursement                                              1,500,000                                             1,500,000
         Medicare Part D Rx Reimbursement                                                   35,000                                                 35,000
         Repayment of ODA Advance
                                                                                                                                                                                   LOAN REPAYMENT ARENA
         Operating transfers in                      1,157,522             28,045           28,046              7,011                              28,046
                                                                                                                                                                                  IMPROVEMENTS
         Other                                           3,248                              20,000                                                 20,000
                                                                                     $
                                               $     4,126,610    $     4,619,268        4,793,914     $      944,529
                                                                                                                                          '    4,793,914       $     4,773,914


30851   Operating Expenditures
5100
5200
           Salaries & Benefits
           Operating Supplies                  '                  $
                                                                                     '      27,640     $        6,711        24%
                                                                                                                              NIA         '
                                                                                                                                                   27,640
                                                                                                                                                               '
5300       Contractual Services                      4,014,747          4,062,168        4,685,868            884,802        19%               4,685,868
5400       Other Expenses                                                                     1,500                           0%                    1,500
5700       Capital Outlays                                  956                250            1,500                           0%                    1,500
5900       Other Financing Uses                                            31,189                                             NIA
        Other Cash Uses and Adjustments (e.g
                                                        14,641            160,738                                             NIA
        Debt Princi al
                                                     4,030,344          4,254,345        4,716,508
                                               $                  $                  $                 $      891,513         19%
                                                                                                                                           '   4,716,508       $     4,716,508


90000   Project Expenditures
5200
5300
           Operating Supplies
           Contractual Services                '
                                                                  $
                                                                                     '                 $                      NIA
                                                                                                                              NIA          '                   '
5700       Capital Outlays                                                                                                    NIA


                                               '                  '                  '                 '                      NIA          $
                                                                                                                                                               '
                                               $     4,030,344
                                                                  '
                                                                        4,254,345
                                                                                     '
                                                                                         4,716,508
                                                                                                       '      891,513         19%          $   4,716,508


        Available Cash Balance. EOY            $       841,326          1,206,249        1,141,778           1,259,265                     $
                                                                  '                  $
                                                                                                       '                                       1,283,655
        City of Muskegon
        First Quarter 2008 Budget Reforecast - Other Funds
                                                                                        Original Budget    Actual Through       Actual As% of Revised Estimate    Change From
                                                    Actual2005        Actual 2007                                                                                                             Comments
                                                                                        Estimate2008           March 2008          Revised          2008          2008Original




590     Sewer Fund
        Available Cash Balance - BOY            $     1,270,352   $       895,306       $   1,144,190      $      767,541                      $     767,541     $    (376,649)

        Means of Financing
         Special assessments                    $                 $                 -   $              -   $                                   $                 $
         Federal & state grants
         State shared revenue
         Charges for services                        4,739,774          5,033,881           5,439,669             777,349                          5,439,669
         Interest income                                 39,199            34,046              30,000                6,168                            30,000
         Repayment of DOA advance
         Operating transfers in                        107,356
         Other                                          63,928            145,213              80,000                3,657                            80,000
                                                $    4,950,257    $     5,213,140       $   5,549,669      $      787,174                      $   5,549,669     .-
30548   Operating Expenditures Administration
5100      Salaries & Benefits                   s                 $                     $                  $                         NIA       $                 $
5200      Operating Supplies                                                        8                                       8        NIA
                                                                                                                                                                                  INSURANCE/INDIRECT
5300      Contractual Services                         393,064            296,385             325,199               61,827          19%              325,199
                                                                                                                                                                                  COSTS/ADMINISTRATION FEE
5400       Other Expenses                                 5,939                (70)                                                  NIA
5700       Capital Outlays                                                                                                           NIA
5900       Other Financing Uses                          63,233            25,221              37,771                                0%               37,771                      INTEREST ON SEWER BONDS
        Other Cash Uses and Adiustments (e.g.           645,041           598,586             523,520                                0%              523,520                      PRINCIPAL ON SEWER BONDS
                                                $     1,107,277   $       920,130       $     886,490      $        61,835           7%        $     886,490     $

60559   Operating Expenditures Maintenance
5100      Salaries & Benefits                   $       767,901   $       881,660       $     953,069      $      204,960           22%        $     953,069     $
5200      Operating Supplies                             71,508            57,366              66,650               1,705            3%               66,650
5300      Contractual Services                        3,024,363         3,192,714           2,972,105             628,990           21%            2,972,105
5400      Other Expenses                                    717               222               1,350                 400           30%                1,350
5700      Capital Outlays                                 6,804             6,925              11,950                 269            2%               11,950
5900      Other Financing Uses                                                                                                       NIA
                                                $     3,871,293   $     4,138,887       $   4,005,124      $       836,324          21%        $   4,005,124     $

90000   Project Expenditures
5200       Operating Supplies                   $                 $                     $                  $                         NIA       $                 $
                                                                                                                                                                                  SEE "BUDGETED CAPITAL
5300       Contractual Services                         346,733           281,888             820,000                7,312           1%              839,000            lS,OOO IMPROVEMENTS" FOR DETAIL
5700       Capital Outlays                                                                                                           NIA
                                                $       346,733   $       281,888       $     820,000      $         7,312           1%        $     839,000     s      19,000
                                                $     5,325,303   $     5,340,905       $   5,711,614      $       905,471          16%        $   5,730,614


        Available Cash Balance• EOY             $       895,306   $       767,541       $     982,245      $       649,244                     $     586,596

                                                                           '
Citv of r,foskenon
Quarterlv Budoet Reforecast and 2008 Prooosed 8udoet
                                                                                                                   1st Quarter     2nd Quarter   3rd Quarter
                                                                                 Original      Associated
                                                            Responsibility                                           Budget          Budget        Budget                              Comments
                                                                                 Budget          Grant
                                                                                                                   Reforecast      Reforecast    Reforecast


                                                                                              2008 PROJECTS
 101    General Fund

        City Hall - New Roof Over Police Department                          $       27,500
                                                                                               '               $        33,000     $
                                                                                                                                                 '             -I
                                                                                                                                                                I

        Police Departement - Men's Locker Room Remodeling                            10000                               4 500                                                     Design/Engineering

                                                                                     37,500                             37,500

 202 Maior Streets

99118 Bridges Maintenance and Repairs Per Evaluation          Af-Shalel              35,000                             35,000                                                  Preventative Maintenance
                                                                                                                                                                    White topping and Water Main/Services Work STP&
97125 Clay Street, Third to Terrace                           Af-Shatel             450,000         400,000            400,000
                                                                                                                                                                                      UT Grant Funds
                                                                                                                                                                             Reconstruction With All New Ulilities
90019 Division Street, Laketon to Southern                    Af-Shatel             516,000         316,000            516,000
                                                                                                                                                                         (Mains/Services\ - STP & LJT Grant Funds

97120 McGrafl, Glen to Addison                                Af-Shatel             325,000         247,000            325,000                                           Reconstruction - STP & LJT Grant Funds
                                                                                                                                                                      Reconstruct With New 2000' ofWatennain and
94045 Pine Street, Apple to Western {2000')                   Af-Shatel             325,000                            400,000
                                                                                                                                                                         Services Alona, Minor Storm Sewer Work -
                                                                                                                                                                    WhitetopinglResurfacing, Sidewalk.Along NorthSk!e-
94025 Sherman/Henry Intersection                              AI-Shatel             300,000         270,000            325,000
                                                                                                                                                                            From Barclau to Plaia - Saferu Grant
                                                                                                                                                                     Milling and Resurface, HPP/LJT Grant Funding of
98117 Quarter1ine, Apple to Stebbins                          AI-Shatel             440,000         700,000            715,000
                                                                                                                                                                            $700,000 - Joint ProiectWith MCRC

98115 Stale Job (US-318R} at Sherman and Hackley)             Al-Shale!              10,000                             10,000                                                   11.25% of State's Share

        Lakeshore Drive, Laketon to Michigan                  Al-Shale!                                                 55,000                                        Microsurfacing, Approv'd By Commission 4122/08

        Beidler. Laketon to Southern                          Al-Shatel                                                395,000                                       Reconstruction, Approv'd By Commission 2/12/06
                                                                                                                                                                        On-StreeUOff-Street Bike Path, Approv·dB~
        lakeshore Drive Trail. McCracken to Cottage Grove     AI..Shatel                                               100,000
                                                                                                                                                                                  Commission 4122/06
      West Branch of Ruddima11 Creek - Culvert                                                                                                                       Ba56d on FTC H's Report - Renects City's Share of
98116                                                         AI-Shatel             220000                              l;!~ OQQ                                             Cost Onlv 1$550,000 Total Cost)
      Reclacement
                                                                                  2,621,000        1,933,000         3,361,000




 203 Local Streets

98101 Harbor Towne Circle (5000')                             AI-Shatel             490,000                              5,000                                             Petition Withdrawn, Project Removed
                                                                                                                                                                     Reconstruct and Replace Watennain and Sanitary·
96102 Isabella, Terrace to Ambrosia (1400')                   Al-Sha tel            225,000                            135,000
                                                                                                                                                                                         s=c
98103 Dale, Peck to Sanford                                   N-Shatel               65,000                             65,000                                                       Reconstruction

98104 Roblane, Quarterline to Marlane (550')                  Af-Shalel              80,000                            100,000                                                 Reconstruction, Storm Sewer

98105 Seventh Street, Muskegon to Webster                     Al-Shale!              85,ooo                             85,000                                                       Reconstruction

98106 Estes Street, Lakeshore Drive to Fair                   N-Shatel              135,000                             15,000                                                  Failed Special Assessment

96103 Vincent/Park, Barclay to North End (1200'}              Af-Shatel             165,000                             20,000                                                  Failed Special Assessment

98107 Jiroch, Southern to lrv,111, Reconstruction (1000')     AI-Shatel             165 000                            225 000                                          Reconstruction - Water - Sewer & Services

                                                                                  1,410,000                            650,000




 260 Fanners' Market lrng:rovement Fund
        Farmers market upgrades                                                      25,000                             25,000




 404 Public fm!;!rovement Fung
        Richard's Park Building Demolition                                           65,000                             65,000

        City Hall Generator                                   Af-Shatel                                                150 000                                               Emergency Generator from 2007

                                                                                     65,000                            215,000




 482 S!i!te Qri!n!!i! F!!n~
98114 Smilh-Ryeraon Improvements                              AI-Shatel             577,000         427,000            577,001)                                        $150,000 local Match from GF Made in 2007

                                                              Brubaker-                                                                                                                 No Match
94013 CMI Site Assessme11t Projects (General)                                        50,000          50,000             50,000
                                                               Clarlwha             90,000                          90,000                                        Replacements for 1995 Vehicles
.glfY.. of 'Muskegon
(;juarterl Budaet Reforecast and 2008 Prooosed Bud<>et
                                                                                                                1st Quarter        2nd Quarter       3rd Quarter
                                                                              Original      Associated
                                                         Responsibility                                           Budget             Budget            Budget               Comments
                                                                              Budget            Grant
                                                                                                                Reforecast         Reforecast        Re forecast


                                                                                           2008 PROJECTS                ----~-
   2     3/4 ton Pickup                                      Kuhn                 66,000                             52,772                                        Replacements for 2000 Vehicles


   '1
         Sedans

         Plow Truck
                                                             Kuhn

                                                             Kuhn
                                                                                  60,000

                                                                                  90,000
                                                                                                                     45,648

                                                                                                                     !l0,000
                                                                                                                                                                   Replacements for 2000 Malibus

                                                                                                                                                                    Replacement for 1993 Vehicle

   2     4x4 Trucks for Fire Department                      Kuhn                 50,000                             50,000                                                Replacements

    1    Parking Checker Vehicle                             Kuhn                 20 000                             20000

                                                                                 817,750                            814,370



                                                                                            s                     9,276,870
                                                                          $    8,848.250        2,880,000
                                                                                                            '                  '                 '
             Commission Meeting Date: May 13, 2008




Date:        May 2, 2008
To:          Honorable Mayor & City Commission
From:        Planning & Economic Development Department Cl3G
RE:          Brownfield Development & Reimbursement
             Agreement- Betten


SUMMARY OF REQUEST: As part of the Brownfield Plan and Tax Increment
Finance (TIF) capture for the Betten project, it is necessary to have a Development
Agreement in place.      In addition, the document includes a Reimbursement
Agreement for the Site Assessment Loan, in the amount of $250,000.

FINANCIAL IMPACT: The Agreement will insure that the taxes are captured and
Betten is reimbursed for the agreed upon eligible expenses. In addition, the Site
Assessment Loan will be repaid through the TIF capture in a timely manner.

BUDGET ACTION REQUIRED: None.

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

COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority will
review the Agreement and make a recommendation to the City Commission at their
May 13, 2008 meeting.
                                     2008-44(c)

      RESOLUTION APPROVING THE BETTEN BROWNFIELD PROJECT

             DEVELOPMENT AND REIMBURSEMENT AGREEMENT

                                 City of Muskegon

                           County of Muskegon, Michigan



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

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

Chambers, on the 13th of May, 2008, at 5:30 o'clock p.m., prevailing Eastern Time.

       PRESENT:      Members

   Gawron, Shepherd, Spataro, Warmington 1 Wierenga, and

    Carter




      ABSENT:        Members

    Wisneski

       The   following    preamble   and   resolution    were   offered   by   Member

  Gawron                 and supported by Member        Wierenga

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

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

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

Plan Amendment to include the Bellen Auto Dealerships Project (Bellen Brownfield

Plan Amendment); and

       WHEREAS, the City Commission has approved and adopted the Bellen

Brownfield Plan Amendment; and
        WHEREAS, a Development and Reimbursement Agreement has been

negotiated between the City and Betten to provide for reimbursement of "eligible

expenses" through tax increment financing as provided by the Betten Brownfield

Plan Amendment.

        NOW, THEREFORE, BE IT RESOLVED, THAT:

        1. The Development and Reimbursement Agreement between the City

and Bellen for the Betten Auto Dealerships Brownfield Plan Amendment is

necessary to facilitate the implementation of the Brownfield Plan,

        2. The Betten Brownfield Project Development and Reimbursement

Agreement, as submitted by the Authority, is hereby approved.

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

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

AYES:          Members

   Carter, Gawron, Shepherd, Spataro, Warmington, and

   Wierenga



NAYS:          Members

              None




RESOLUTION DECLARED ADOPTED","'_                     ,    .        .

                                           ~~\             \,\J\   ,l.A (hL LK ,\_.,
                                           Ann Marie Becker, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution

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

State of Michigan, at a regular meeting held May 13, 2008, and that said meeting

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

compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan,

1976, as amended, and that the minutes of said meeting were kept and will be or

have been made available as required by said Act


                                      (;    .
                                            ·~
                                                       '
                                                     (\ \            .      (i      /
                                       \'\., \ \   )'>, \   '\i ;\   !) ,   \> \ cl( A-::,
                                           Ann Marie Becker, City Clerk
                                            2008-44(c)
                              BROWNFIELD DEVELOPMENT AND
                               REIMBURSEMENT AGREEMENT


          THIS AGREEMENT, made this _D___day of May, 2008, (the "Agreement") by and
among:

                                    the CITY OF MUSKEGON
                   of 933 Terrace Street, Muskegon, Michigan 49440 (the "City");

                     the BROWNFIELD REDEVELOPMENT AUTHORITY
                     OF THE CITY OF MUSKEGON, an authority established
               pursuant to Act 3 81 of the Public Acts of 1996, as amended ("Act 381 "),
                of 933 Terrace Street, Muskegon, Michigan 49440 (the "Authority");

                                                 and

                     BETTEN CHEVROLET, INC., a Michigan corporation,
                    of2474 South Henry Street, Muskegon, Michigan 49441; and

                BETTEN AUTOMOTIVE GROUP, INC., a Michigan corporation,
                    of2474 South Henry Street, Muskegon, Michigan 49441

                                 (both collectively the "Developer"),

with reference to the following facts and circumstances:

                                             RECITALS

          A.     Pursuant to Act 3 81, the Authority has prepared a Brownfield Plan which was

duly approved by the Commissioners of the City, and an Amendment thereto which incorporates

the Betten Automotive Dealerships project; which Amendment was duly approved by the

Authority on April 1, 2008, then approved by the Authority as revised on May 13, 2008, and

approved as revised by the Commissioners of the City on May 13             , 2008 (the "Brownfield

Plan").

          B.     The Developer leases those parcels of real property commonly known as 2410,

2474, 2477 and 2501 South Henry Street, Muskegon, Michigan, from other entities which the

Developer controls. Notwithstanding, with reference to 24 77 South Henry Street, as of the date


                                                   1
of this Agreement, an entity which the Developer controls has an agreement with the owner of

the 2477 South Heruy Street parcel to purchase that parcel. Collectively, these four (4) parcels

are referred to herein as the "Property", and are legally described on the attached Exhibit A.

The Property is included in the Brownfield Plan as a "facility" and "eligible property" due to the

presence on the Property of certain hazardous substances as described in the Brownfield Plan,

and it is therefore commonly referred to as a "brownfield."

       C.      The Developer plans to redevelop and utilize the Property for commercial

purposes as full service automobile dealerships. The project has and will require one or more

baseline environmental assessments ("BEAs") and due care plans as well as due care activities,

including the placement of fill and/or other barrier(s) to protect the public from direct contact

with contaminated soils and/or groundwater, and additional response activities to properly

dispose of contaminated soil and/or groundwater encountered. Completion of the project will

provide protection to workers and visitors from direct contact with the existing soil

contamination and will provide an engineeri,ng control to distinguish future releases from

existing contamination.

       ·D.     Act 381 permits the use of the real and personal property tax revenues generated

from the increase in value to brownfield sites constituting "eligible property" under Act 3 81

resulting from their redevelopment to pay or reimburse the payment of costs (including interest)

of conducting activities that meet the requirements under Act 381 of "eligible activities"

(hereinafter "Eligible Costs") and, unless the property owner or developer is a "liable party" for

the site contamination, permits the reimbursement to the property owner or developer of such

Eligible Costs incurred by the property owner or developer.




                                                2
       E.      In order to make the improvements on the Property, the Developer has incurred

and will incur Eligible Costs in connection with certain Eligible Activities, which may include,

but are not limited to, the preparation of one or more BEAs and due care plans, certain due care

activities, including the placement of fill and/or other barrier(s) to protect against direct human

contact with contaminated soil and/or groundwater, and additional activities that are not response

activities such as demolition of structures, infrastructure improvements, lead or asbestos

abatement, and site preparation, all of which will require the services of various contractors,

engineers, environmental consultants, attorneys and other professionals.

       F.      In accordance with Act 381 and the Brownfield Plan, the parties desire to use the

property tax revenues from all taxing jurisdictions (local & State) that are generated from an

increase in the tax value of the Property resulting from its development ("Tax Increment

Revenues") to reimburse the Developer for Eligible Costs it incurs in redeveloping the Property;

to reimburse the City for Eligible Costs it incurs in making infrastructure improvements that will

directly benefit the project, and to fund a local site remediation revolving fund pursuant to Act

381 (the "Revolving Fund").

       G.      The parties are entering into this Agreement to establish the procedure for such

reimbursement from Tax Increment Revenues.

       NOW, THEREFORE, the parties agree with each other as follows:

1.     Defmitions

        "Additional Response Activities" are defined by Section 2(a) of Act 381;

        "Baseline Environmental Assessment Activities" is defined by Section 2(d) of Act 381;

        "Brownfield Redevelopment Financing Act" means Act No. 381 of the Public Acts of
        1996, as amended, MCLA 125.2651 et seq.;

        "Brownfield Plan or Plans" is defined by Section 2(g) of Act 381;


                                                  3
        "Due Care Activities" is defined by Section 2(k) of Act 381;

        "Eligible Activities" is defined by Section 2(m) of Act 381;

        "Eligible Property or Property" is defined by Section 2(n) of Act 381;

        "Eligible Party" is defined by Section 2(m) of Act 381;

        "Tax Increment Revenues" is defined by Section 2(ee) of Act 381.

2.      The Plan

        The Betten Auto Dealerships Brownfield Redevelopment Plan approved by the Authority

and the City Commission is attached hereto as Exhibit B and incorporated herein (the "Plan").

3.      Term of Agreement

       Pursuant to the Plan, the Authority shall capture I 00% of the Tax Increment Revenues

(local & State) from the real and personal property taxes assessed by all taxing jurisdictions on

the Eligible Property for all tax years from 2008 through 2030.

        (a)    The Eligible Costs reimbursable to the Developer under this Agreement shall be

those Eligible Costs which are paid by or the responsibility of the Developer, including interest

as provided in paragraph I 0( c).

        (b)    Reimbursement to Developer for its Eligible Costs shall be limited to the earliest

or least of the following: (I) reimbursement of all Eligible Costs under this Agreement; (2)

reimbursement of the Eligible Costs other than the City's cost for the Henry Street Resurfacing,

together with the City's cost for the Henry Street Resurfacing (as described in Section 7) in an

amount not to exceed Three Hundred Thousand and No/I 00 Dollars ($300,000), in the total

maximum amount of Three Million and No/100 Dollars ($3,000,000) (the "3,000,000 Cap"); or

(3) in recognition that the build-out of the project will likely not be substantially complete and

available for Developer's productive use until after the effective date for the 2009 tax year



                                                4
assessment, and in recognition of the City's desire to cap the reimbursement to the Developer for

Developer's Eligible Costs after sixteen (16) years from the substantial completion of the project,

after reimbursement to Developer for Developer's Eligible Costs in the total amount of all Tax

Increment Revenues billed and eligible for capture under the Plan and this Agreement from the

date of this Agreement through December 31, 2025 (the "16 Year Cap").

4.     Eligible Activities

       The Authority and the City recognize that prior to the date of this Agreement, Developer

may have initiated Eligible Activities, the cost of which may be submitted with a Request for

Cost Reimbursement for Eligible Activities. The Developer will be reimbursed for Eligible

Costs which were incurred by it prior to this Agreement only if permitted under Act 381. The

Developer shall diligently pursue completion of the Eligible Activities set forth in the Plan. No

activities completed after January 1, 2030 shall be considered Eligible Activities. This deadline

may be extended at the discretion of the Authority. Such extension to be effective shall be in

writing.

5.     East Sewer Line Relocation and West Sewer Line Work

           (a)   The Developer and the City agree that Developer shall undertake and complete to

the City's reasonable satisfaction the relocation of a sanitary sewer line located in the east side of

the project.     Notwithstanding any other provision of this Agreement, reimbursement to the

Developer for up to Seventy-Five Thousand and NO/100 Dollars ($75,000) of its costs for this

sewer line relocation shall, for accounting purposes only, not be considered in calculation of the

$3,000,000 Cap or the 16 Year Cap, insofar as reimbursement for such Eligible Costs would

limit reimbursement to Developer of its other Eligible Costs per the terms of this Agreement; in

such case, reimbursement for the Eligible Costs would continue if and as necessary to reach the



                                                   5
$3,000,000 Cap or the 16 Year Cap, whichever comes first. The Developer's costs for this sewer

line relocation in excess of Seventy-Five Thousand and No/100 Dollars ($75,000) shall be

considered part of Developer's Eligible Costs and included in and applied against the $3,000,000

Cap and/or the 16 Year Cap, and subject to reimbursement to the Developer as such as otherwise

provided under this Agreement.

       (b)     The Developer shall use a "sewer camera" to investigate the condition of the

existing sewer line located in the West side of the Project, and shall undertake reasonably

necessary cleaning and repairs to the portion of that sewer line within the Project site, at a cost to

Developer not to exceed One Hundred Fifty Thousand and No/100 Dollars ($150,000). The

costs associated with televising, cleaning, and/or repairing this West side sewer line shall be

Eligible Costs. Notwithstanding, if the foregoing costs exceed One Hundred Fifty Thousand and

NO/100 Dollars ($150,000), such excess amounts will be paid by the City but may, at the City's

option, only be reimbursed to the City from the captured Tax Increment Revenues at any time

after the earliest of the fulfillment of the 16 Year Cap, the $3,000,000 Cap, or reimbursement of

all of Developer's Eligible Costs under this Agreement.

6.     MDEQ Brownfield Loan

        The Developer and City agree that the City shall utilize its Michigan Department of

Environmental Quality ("MDEQ") Brownfield Loan; and thereunder shall loan to Developer the

amount of Two Hundred Fifty Thousand and No/100 Dollars ($250,000) to pay the first Two

Hundred Fifty Thousand and No/100 Dollars ($250,000) of the environmental response activity

costs incurred by the Developer in this project, to the extent authorized by law and/or the

MDEQ. The terms for repayment of this MDEQ loan shall be consistent with the loan contract

between the MDEQ and the City ("MDEQ Loan Contract"). To the extent not inconsistent



                                                   6
with the MDEQ Loan Contract, the principle amount of this loan and any interest thereon shall

be repaid to the City by the Developer pursuant to the terms of a promissory note or other

agreement between the parties ("Promissory Note"). This Promissory Note shall provide that no

interest shall accrue on the principle balance of this loan until March 18, 20 l 0, with interest

thereafter at two percent (2%) per annum, and repayment over a ten (10) year period

commencing with a principal payment of Twenty-Five Thousand and No/100 Dollars ($25,000)

due on March 18, 2010, then nine equal annual installments of Twenty-Seven Thousand Five

Hundred Ninety and 23/100 Dollars ($27,590.23) due on the eighteenth day of March each year

from 2011 through 2019. Developer shall provide a mortgage subordinated to the security

interests of its primary lenders for the project, or such other subordinated security for this loan as

may be agreed by the parties.        Developer's principle and interest payments for this loan

reimbursement shall be considered part of Developer's Eligible Costs, and subject to

reimbursement as otherwise provided under this Agreement.

7.     Henry Street Resurfacing

       The parties agree that the City shall undertake and pay for a certain additional public

infrastructure improvement that directly benefits the project, as described herein.

       (a)     The City shall undertake and pay for milling and resurfacing Henry Street

between Sherman Street and Hackley Street (the "Henry Street Resurfacing"), if Developer

provides written notice to the City requesting the City to proceed with the Henry Street

Resurfacing. Provided that if Developer does not provide such written notice before January 1,

2013, such request shall be deemed made on January 1, 2013, even if Developer does not

provide any such written notice, and the City shall proceed with the Henry Street Resurfacing.




                                                  7
 The costs for this work shall be considered part of the Eligible Costs, and subject to

 reimbursement as specifically provided in this Agreement.

        (b)     The City's costs for the Henry Street Resurfacing, up to a maximum of Three

 Hundred Thousand and NO/100 Dollars ($300,000), shall be reimbursable to the City over a

 period of years from the captured Tax Increment Revenues. The amount of such reimbursement

 in any year shall be determined by multiplying the total dollar amount incurred and paid by the

 City for the Henry Street Resurfacing as of December 31 of the then most recent past calendar

 year by ten percent (I 0%), provided that the amount of such reimbursement in any year shall not

 exceed Thirty Thousand and No/I 00 Dollars ($30,000). Reimbursement under this formula shall

 continue until all such costs incurred and paid by the City for the Henry Street Resurfacing (to

the maximum amount of Three Hundred Thousand and NO/100 Dollars ($300,000)) have been

paid in full.   All such reimbursement(s) to the City in a total amount not to exceed Three

Hundred Thousand and No/100 ($300,000) shall be included in and applied against the 16 Year

Cap and the $3,000,000 Cap, and shall be paid in full by the time the earlier of the 16 Year Cap

or the $3,000,000 Cap is reached. Notwithstanding any other provision of this Section 7(b), if in

the year that the $3,000,000 Cap or the 16 Year Cap is reached, the City has not yet been fully

reimbursed for the lesser of all of its Eligible Costs or Three Hundred Thousand and No/100

Dollars ($300,000) for the Henry Street Resurfacing, the City may be reimbursed in that year in

an amount which exceeds Thirty Thousand and No/100 Dollars ($30,000).

        ( c)    The City shall not be paid or reimbursed for any interest from the Captured Tax

•Increment Revenues or by the Developer on the City's cost for the Henry Street Resurfacing.

        ( d)    If the City incurs and pays more than for Three Hundred Thousand and NO/100

Dollars ($300,000) for the Henry Street Resurfacing during the term of this Agreement, such



                                                8
excess amount may, at the City's option, be reimbursed to the City from the captured Tax

Increment Revenues at any time after the earliest of the fulfillment of the 16 Year Cap, the

$3,000,000 Cap, or reimbursement of all of Developer's Eligible Costs under this Agreement.

8.     Reimbursement Source

       During the term of this Agreement, the Developer shall be reimbursed for its Eligible

Costs from 100% of the Tax Increment Revenues (except amounts paid to or retained by the

Authority for the Authority Fee and reimbursed to the City for the Henry Street Resurfacing)

collected from all taxing jurisdictions (local & State) as to real and personal property taxes on the

Eligible Property, in the order provided in section l0(d) of this Agreement.

9.     Administration Fee to Authority

       From the Tax Increment Revenues collected during the term of this Agreement, the

Authority shall be paid the sum of Ten Thousand and No/100 Dollars ($10,000) per calendar

year for its administration of the Plan (the "Authority Fee"), provided that if the total Tax

Increment Revenues captured (or, if Developer fails to timely pay its property taxes on the

project, the amount capturable if such taxes were timely paid) in any calendar year are

insufficient to pay the Authority Fee under the Payment Priority Schedule in that year, the unpaid

amount of the Authority Fee for that year shall accrue and be paid according to the Payment

Priority Schedule in the next year in which sufficient captured Tax Increment Revenues are

available. Notwithstanding anything to the contrary in this Agreement, the Authority Fee shall

not be considered as part of or applied to the calculation of the 16 Year Cap or the $3,000,000

Cap (as is the case for the $75,000 of the sewer costs detailed in section 5 of this Agreement),

and for accounting purposes shall be deemed to be collected and paid after the Developer has

been repaid the entirety of its Eligible Costs per the terms of this Agreement.



                                                  9
10.    Reimbursement Process

       (a)     On a quarterly basis beginning with the period ending June 30, 2008, the

Developer shall submit to the Authority a Request for Cost Reimbursement for Eligible

Activities paid by the Developer during the prior period within thirty (30) days after the end of

any such quarter for Eligible Costs paid by Developer. For Eligible Costs incurred prior to April

I, 2008, such request may be submitted by May 31, 2008. Notwithstanding the foregoing, if

Developer fails to submit a request or documentation for any Eligible Costs in the thirty (30) day

period after the quarter in which such costs were paid by Developer, such request or

documentation may be submitted in a later quarter. The request for reimbursement shall be in

the form attached hereto as Exhibit C ("Petition"). Documentation of the costs incurred shall be

inclu~ed with the Petition including invoices for the costs incurred sufficient to determine

whether the costs incurred were for Eligible Activities. The Petition shall be signed by a duly

authorized representative of Developer.

       (b)     Twice a year, after the summer and winter taxes are billed and collected on the

Property, from such taxes the Authority shall pay the reimbursement to Developer for

Developer's Eligible Costs within forty-five (45) days from the date such taxes are collected, in

the amount determined by application of the Payment Priority Schedule described below.

Notwithstanding the foregoing, if any such taxes are collected during the first thirty (30) days

after a summer tax bill is issued, such taxes shall be deemed collected on the thirtieth day after

such tax bill is issued, and if any such taxes are collected during December in any year, such

taxes shall be deemed collected on December 31 of that year for purposes of calculating the

forty-five (45) day period by which the Authority shall pay the reimbursement to the Developer.




                                                 10
Each such collection and reimbursement cycle shall be herein referred to as a "Reimbursement

Period."

       (c)    Interest shall accrue on the Developer's costs for Eligible Activities at the rate of

six and one-half percent (6.5%) per annum. Such interest shall be included in the Eligible Costs

for purposes of this Agreement. Interest shall begin to accrue on any such costs on the date that

Developer submits to the Authority evidence of its payment of such Eligible Costs and shall

continue to accrue on all unreimbursed costs for Eligible Activities submitted by Developer until

the earlier of the 16 Year Cap or upon payment of all Eligible Costs up to the $3,000,000 Cap.

       (d)     All captured Tax Increment Revenues shall be paid or applied pursuant to the

following schedule (''Payment Priority Schedule"):

               (i)     First, the Developer shall be reimbursed in the amount of all principle and

interest due and owing by Developer to the City under the Promissory Note in that

Reimbursement Period and any principal and interest accrued but unreimbursed from prior

Reimbursement Period(s).

               (ii)    Second, provided that additional captured Tax Increment Revenues are

available, they shall then be used to pay the Authority Fee for that calendar year and any

Authority Fee(s) accrued but unpaid from prior year(s).

               (iii)   Third, provided that additional captured Tax Increment Revenues are

available, they shall then be used to pay the annual installment for the Henry Street Resurfacing

as determined pursuant to Section 7(b).

               (iv)    Fourth, provided that additional captured Tax Increment Revenues are

available, they shall then be used to reimburse the Developer for its Eligible Costs associated

with the East sewer line relocation.



                                                 11
               (v)     Fifth, provided that additional captured Tax Increment Revenues are

available, they shall be used to reimburse the other Eligible Costs.

       (e)     In the event there are no funds available in any Reimbursement Period from taxes

captured from the sources identified in this Paragraph 10 for Developer, then there shall be no

repayment obligation in that Reimbursement Period to Developer or City, or payment obligation

to the Authority for the Authority Fee.

       (f)     The City or the Authority shall provide, upon Developer's request, an accounting

of its (their) calculations apportioning any reimbursement or payment under this Agreement.

       (g)     Reimbursement of Eligible Costs shall be effectuated to Developer with:



       Checks payable to:                     BETTEN CHEVROLET, INC.

       Delivered to the following address:    2474 South Henry Street
                                              Muskegon, Michigan 49441

                                              By first class mail.

11.    Legislative Authorization

       This Agreement is governed by and subject to the restrictions set forth in the Act. In the

event that there is legislation enacted in the future which alters or affects the amount of Tax

Increment Revenues subject to capture, Eligible Properties, or Eligible Activities, then the

Developer's rights and the Authority's obligations under this Agreement may be modified

accordingly by agreement of the parties.

12.    Freedom of Information Act

       Developer stipulates that all Petitions and documentation submitted by Developer shall

be open to the public under the Freedom of Information Act, Act No. 442 of the Public Acts of

1976, being Sections 15.23 to 15.24 of the Michigan Compiled Laws and no claim of trade


                                                 12
secrets or other privilege or exception to the Freedom of Information Act will be claimed by

Petitioners as it relates to this Agreement, Petitions for Reimbursement and supporting

documentation.

13.    Plan Modification

       The Plan and this Agreement may be modified to the extent allowed under the Act by

mutual agreement of the Parties affected by the modification. This Agreement is subject to the

MDEQ and Michigan Economic Development Corporation approvals of the Act 381 Work Plan

for Eligible Activities which are not materially inconsistent with the provisions of this

Agreement.

14.    Notices

       All notices shall be given by registered or certified mail addressed to the parties at their

respective addresses as shown above. Either party may change the address by written notice sent

by registered or certified mail to the other party.

15.     Assignment

        The interest of each party under this Agreement shall not be assignable without the other

party's written consent, which shall not be umeasonably withheld.

16.     Entire Ag:reement

        This Agreement, together with all instruments and agreements referred to in this

Agreement, supersedes all agreements previously made between the parties relating to the

subject matter. There are no other understandings or agreements between them.

17.     Non-waiver




                                                      13
       No delay or failure by either party to exercise any right under this Agreement, and no

partial or single exercise of that right, shall constitute a waiver of that or any other right, unless

otherwise expressly provided herein.

18.    Headings

       Headings in this Agreement are for convenience only and shall not be used to interpret or

construe its provisions.

19.    Governing Law

       This Agreement shall be construed in accordance with and governed by the laws of the

State of Michigan.

20.    Counterparts

       This Agreement may be executed in two or more counterparts, each of which shall be

deemed an original but all of which together shall constitute one and the same instrument.

21.    Binding Effect

       The provisions of this Agreement shall be binding upon and inure to the benefit of each

of the parties and their respective heirs, legal representatives, successors, and assigns.



                                  [SIGNATURE PAGE TO FOLLOW]




                                                   14
      The parties have executed this Agreement in duplicate original on the date set forth above.




THE CITY OF MUSKEGON                              BROWNFIELD REDEVELOPMENT
                                                  AUTHORITY OF THE CITY OF MUSKEGON

By:

                                                  Its: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __




BETTEN CHEVROLET, INC.,                           BETTEN AUTOMOTIVE GROUP, INC.,
a Michigan corporation                            a Michigan corporation



By: - - - - - - - - - - - - -                     By: - - - - - - - - - - - - - -
     Bryan Betten                                       Bryan Betten
Its: President                                    Its:  President




                                                   15
                                         EXHIBIT A

                               PROPERTY DESCRIPTIONS

Property Address:    2410 South Henry Street
                     Muskegon, Michigan 49441

Tax Parcel No.:      61-24-131-300-0035-00

Legal Description:

     Commencing on the North line, 33 feet East of the Northwest comer of the
     Southwest fractional¼ of the Southwest fractional¼ of Section 31, Town 10 North,
     Range 16 West; thence South, parallel to the West line of said Section, 303 feet;
     thence East, parallel with the North line, 456.76 feet; thence North 303 feet; thence
     West 456.76 feet to the point of beginning;


Property Address:    2474 South Henry Street
                     Muskegon, Michigan 49441

Tax Parcel No.:      61-24-131-300-00-37

Legal Description:

     PARCELi:
     That part of the North 22 rods of the Southwest fractional quarter of the Southwest
     fractional quarter of Section 31, Town 10 North, Range 16 West, described as
     follows: Commence 33 feet East and 333 feet South of the Northwest comer of said
     Southwest fractional quarter of Southwest fractional quarter; thence East parallel to
     the north line of said Southwest fractional quarter of Southwest fractional quarter
     456.16 feet, more or less, to a point 250 feet West of the West right of way line of
     the Norton-Glade Express Highway; thence South parallel to the West lien of said
     Highway 30 feet; thence East parallel to the north line of said Southwest fractional
     quarter of Southwest fractional quarter, a distance of250 feet to the West right of
     way line of the Norton-Glade Express Highway; thence North along the West right
     of way line of said Highway 200 feet; thence West parallel to the north line of said
     Southwest fractional quarter of Southwest fractional quarter 250 feet; thence
     South parallel with the West right of way line of the Norton-Glade Express
     Highway, 140 feet; thence West parallel to the north line of said Southwest
     fractional quarter of Southwest fractional quarter 456.16 feet, more or less, to a
     point 33 feet East of the West line of said Section 31; thence South 30 feet to the
     place of beginning.



                                              A-1
      PARCEL II:

      All that part of the South 250 feet of the North 613 feet of the Southwest fractional
      quarter of the southwest quarter of Section 31, Town 10 North, Range 16 West, City
      of Muskegon, Muskegon County, Michigan, which lies West ofa line 100 feet West
      of, measured at right angles and parallel to the construction centerline of Highway
      US-16 and US-31. The construction centerline of Highway US-31 and US-16 is
      described as: Beginning at a point 474.31 feet South of the North quarter comer of
      Section 7, Town 9 North, Range 16 West, Norton Township, now known as City of
      Norton Shores, Muskegon County, Michigan; thence North 88°54' West 319.11
      feet to the point of curve of a 5°45' curve to the right; thence Northwesterly along
      the arc of the curve 1572.17 feet to the point of tangent; thence North 1°30' East
      4927.39 feet to a point of deflection; thence 1°06'50" East 2600 feet to the point of
      ending.

      PARCEL III:

     Part of the North 22 rods of the Southwest fractional quarter of the Southwest
     fractional quarter of Section 31, Town 10 North, Range 16 West, Muskegon
     County, Michigan, described as follows: Commence 33 feet East and 363 feet South
     of the Northwest comer of said Southwest fractional quarter of the Southwest
     fractional quarter; thence East parallel to the North line of said Southwest fractional
     quarter of the Southwest fractional quarter a distance of 456.16 feet more or less to a
     point 250 feet West of the West right of way line of the Norton-Glade Express
     Highway; thence Northerly parallel to said West right of way line of said Highway
     30 feet; thence West parallel to the North line of said southwest fractional quarter of
     the Southwest fractional quarter, 456.16 feet to a point 33 feet East of the West line
     of said Section 31; thence South 30 feet to place of beginning.


Property Address:      2477 South Henry Street
                       Muskegon, Michigan 49441

Tax Parcel No.:        61-24-036-400-0027-00

Legal Description:

     That part of the Southeast 1/4 of the Southeast 1/4 of Section 36, Town 10 North, Range 17
     West, described as follows: Commence at the Southeast comer of the North 10 acres of said
     Southeast 1/4 of Southeast 1/4 thence West along the South line of said North 10 acres,
     672.04 feet to the West line of the East 1/2 of said Southeast 1/4 of Southeast 1/4, thence
     South along said West line of said East 1/2 of Southeast 1/4 of Southeast 1/4150 feet, thence
     East parallel to the South line of said North 10 acres 671.83 feet to the East line of said
     Section 36, thence North along the East line of said Section 36,150 feet to the place of
     beginning, except the East 33 feet thereof which are reserved for highway purposes.

                                                 A-2
Property Address:     2501 South Henry Street
                      Muskegon, Michigan 49441

Tax Parcel No.:       6\-24-036-400-0029-00

Legal Description:

     That part of the Southeast 1/4 of the Southeast 1/4 of Section 36, Town 10 North. Range
     17 West, described as follows: Commencing at a point on the East line of said Section 36,
     150 feet South of the Southeast comer of the North 10 acres of said Southeast 1/4 of the
     Southeast 1/4; thence West parallel to the South line of the North 10 acres of said
     Southeast 1/4 of the Southeast 1/4, 671.83 feet to the West line of the East 1/2 of said
     Southeast 1/4 of the Southeast 1/4; thence South along said West line of the East 1/2 of
     the Southeast 1/4 of the Southeast 1/4, 400 feet thence East parallel to the South line of
     the North 10 acres of said Southeast 1/4 of the Southeast 1/4 to the East line of Section
     36; thence North along the East line of Section 36, 400 feet to the point of beginning.




                                                A-3
EXHIBITB

THE PLAN




   B-1
                                          EXHIBIT C

                        BROWNFIELD REQUEST FOR COST
                    REIMBURSEMENT FOR ELIGIBLE ACTIV1TIES


Date: - - - - - - - - -




                     Reimbursement Cost Item                           Eligible Cost

     1.

    2.

     3.

    4.

     5.

     6.

     7.


I certify that the information submitted on and with this Request for Cost Reimbursement is
accurate and is an eligible cost described in the Brownfield Plan for this project approved by the
Township Board.

Developer:
Signature:
Title:
Address:




Each reimbursement cost item must have documentation that is attached to this request form.
This documentation shall include detailed invoices.
                                              D-1
DATE:         05/06/2008

TO:           Honorable Mayor and Commissioners

FROM:         Mark Kincaid, Deputy Director of Public Safety

RE:           Dangerous Building Case#: EN030170 Bids for Demolition


SUMMARY OF REQUEST: The Inspections department requests that the City
Commission award a bid for demolition of the property located at 593 W. Western to the
lowest responsible bidder.

593 W. Western Ave (Commercial)- To execute a contract for demolition with the
lowest responsible bidder.

Press LLC $55,450.00* I Franklins Contractors $18, 400      I   Griffelle $33, 999*
*(Includes engineer study)

Case# & Project Address: # EN030170 - 593 W. Western

Location and ownership: This structure is located on Western Ave. and is owned by
Muskegon Hotel LLC, 15877 Lake Ave, Grand Haven, Ml 49417.


Staff Correspondence: A dangerous building inspection was conducted on 11/10/03.
The Notice and Order to Repair was issued on 11/10/03. On 01/08/04 the HBA
declared the structure substandard and dangerous. On 03/02/04 the HOC concurred
with their decision. The City Commission concurred with the findings of the Housing
Board of Appeals on May 25, 2004.

An inspection conducted in April 8, 2008 revealed continuing deterioration of the
building. In the opinion of inspection staff the structure presents a danger the public.
The director of public safety has determined that the structure needs to be demolished
prior to the start of the summer events season.

The current owner has obtained a demolition permit and has been given until June 1O·
2008 to complete demolition of the structure. Should he fail to do so, the City needs to
be prepared to begin demolition on June 11, 2008.

Owner Contact:

Financial Impact: General Funds

Budget action required: None

Staff Recommendation:

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