City Commission Packet 10-24-2006

View the PDF version Google Docs PDF Viewer

    CITY OF MUSKEGON
      CITY COMMISSION MEETING
                   OCTOBER 24, 2006
   CITY COMMISSION CHAMBERS@ 5:30P.M.
                              AGENDA

o CALL TO ORDER:
o PRAYER:
o PLEDGE OF ALLEGIANCE:
o ROLL CALL:
o HONORS AND AWARDS:
     A. Community Relations Committee Members.
o INTRODUCTIONS/PRESENTATION:
o CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
     B. Housing Commission Appointment. CITY MANAGER
     C. Vacation of the Alley in Block 12 of the Continental Addition.
        PLANNING & ECONOMIC DEVELOPMENT
     D. FIRST READING: Zoning Ordinance Amendment- Planning Commission
        Notice Mailing Area. PLANNING & ECONOMIC DEVELOPMENT
     E. FIRST READING: Zoning Ordinance Amendment - Aggrieved Parties
        Language. PLANNING & ECONOMIC DEVELOPMENT
     F. FIRST READING: Zoning Ordinance Amendment - Zoning Board of
        Appeals Newspaper Public Notice.   PLANNING & ECONOMIC
        DEVELOPMENT
     G. City - Michigan Department of Transportation Agreement for the
        Reconstruction of Getty Street. Hovey to Keating. ENGINEERING
     H. City - Michigan Department of Transportation Agreement for Federal
        Money Loan to Reconstruct Getty Street. Hovey to Keating.
        ENGINEERING
     I. Michigan Main Street/Community Requirements and Expectations
        Agreement. PLANNING & ECONOMIC DEVELOPMENT
         J. lead-Based Paint Abatement at 1122 Spring Street.                                     COMMUNITY &
            NEIGHBORHOOD SERVICES
         K. Approval of Contractor for Rehabilitation of House at 1122 Spring Street.
            COMMUNITY & NEIGHBORHOOD SERVICES
o PUBLIC HEARINGS:
         A. Amendments to Brownfield Plan - Viridian Place at Edison landing.
            PLANNING & ECONOMIC DEVELOPMENT
         B. Request to Establish an Obsolete Property District - 67 W. Western
            Avenue. PLANNING & ECONOMIC DEVELOPMENT
         C. Request to Issue an Obsolete Property Certificate - Witt Buick. 67 W.
            Western Avenue. PLANNING & ECONOMIC DEVELOPMENT
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o UNFINISHED BUSINESS:
o NEW BUSINESS:
         A. Donation Program for 2006 Individual Income Tax Returns.                                     INCOME
            TAX
         B. Request to Construct Improvements in Right-of-Way and Maintenance
            Agreement with Witt Buick. PLANNING & ECONOMIC DEVELOPMENT
         C. Harbour Towne Dockominium. CITY MANAGER
         D. Concurrence with the Housing Board of Appeals Notice and Order to
            Demolish the Following: PUBLIC SAFETY
             856 Fork - Area 11
             775 Washington- Area 12
             1957 Continental
o ANY OTHER BUSINESS:
o PUBLIC PARTICIPATION:
> Reminder: Individuals who would like to address the City Commission shall do the following:
> Fill out a request to speak form attached to the agenda or located in the back of the room.
> Submit the form to the City Clerk.
> Be recognized by the Chair.
> Step foJWard to the microphone.
>   State name and address.
>   limit of 3 minutes to address the Commission.
>   (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

o ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATIEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT LINDA
POTTER, ACTING CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TOO:
(231) 724·4172.
      You Are Cordially Invited
                 To
         City of Muskegon
      Volunteer Appreciation
             Reception
         October 24, 2006
             4:30p.m.
       Muskegon City Hall
        933 Terrace Street
           RSVP to 724-6705




- T
Date:     October 24, 2006
To:       Honorable Mayor and City Commissioners
From:     City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes for the October gth
Commission Worksession, and the October 1oth Regular Commission
Meeting.



FINANCIAL IMPACT: None.



BUDGET ACTION REQUIRED: None.



STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     OCTOBER 24, 2006
    CITY COMMISSION CHAMBERS@ 5:30P.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, October 24,
2006.
   Mayor Warmington opened the meeting with a prayer from Vice Mayor
Gawron 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,
Commissioner Chris Carter, Kevin Davis, Clara Shepherd, and Lawrence Spataro,
City Manager Bryon Mazade, City Attorney John Schrier, and Acting City Clerk
Linda Potter.
   Absent: Commissioner Sue Wierenga (excused)
HONORS AND AWARDS:
      A. Community    Relations Committee Members.      Mayor Warmington
recognized and thanked the committee members for their service.
2006-87 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the October 9th Commission
Worksession, and the October 10th Regular Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
      B. Housing Commission Appointment. CITY MANAGER
SUMMARY OF REQUEST: To appoint Angela Anthony to the Housing Commission
as the Resident Commissioner, to serve out the remaining term (expires 1/31/07)
of Bobbie Jones who no longer resides at Hartford Terrace.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To confirm the appointment.
      C. Vacation of the Alley in Block 12 of the Continental Addition.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request for vacation of the alley located in Block 12,
Continental Addition bounded by E. Keating Avenue, Brunswick Street, E.
Holbrook Avenue, and Huizenga Street.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends vacation of the alley, with the
condition that all utility easement rights be retained.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
vacation of the alley at their October 12th meeting, with the condition that all
utility easement rights be retained. The vote was unanimous with T. Harryman, S.
Warmington, and J. Aslakson absent.
      D. FIRST READING: Zoning Ordinance Amendment- Planning Commission
         Notice Mailing Area. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2405 (Petitions, Fees,
paragraph #2) of Article XXIV (Administration and Enforcement) regarding the
300 foot notice mailing area for Planning Commission public hearings.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION:    Staff recommends amendment of the Zoning
Ordinance to amend the language for Planning Commission public hearing
notices.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their October 12th meeting. The vote was unanimous
with T. Harryman, S. Warmington, and J. Aslakson absent.
(Requires second reading)
      E. FIRST READING: Zoning Ordinance Amendment - Aggrieved Parties
         Language. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2503 (Appeals, Applications,
Filing Procedure and Fees, paragraph # 1) of Article XXV (Zoning Board of
Appeals) regarding "aggrieved parties" language.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION:      Staff recommends amendment of the Zoning
Ordinance to amend the language for "aggrieved parties".
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their October 12th meeting. The vote was unanimous
with T. Harryman, S. Warmington, and J. Aslakson absent.
(Requires second reading)
      F. FIRST READING: Zoning Ordinance Amendment - Zoning Board of
         Appeals Newspaper Public Notice.   PLANNING & ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2504 (Hearings, Notices, and
Adjournments, # 1) of Article XXV (Zoning Board of Appeals) regarding
newspaper public notice for Zoning Board of Appeals public hearings.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION:         Staff recommends amendment of the Zoning
Ordinance to amend the language regarding newspaper notice of Zoning
Board of Appeals public hearings.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their October 12th meeting. The vote was unanimous
with T. Harryman, S. Warmington, and J. Aslakson absent.
(Requires second reading)
      G. City - Michigan Department of Transportation Agreement for the
         Reconstruction of GeHy Street. Hovey to Keating. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with Michigan Department of
Transportation for the reconstruction of Getty Street from Hovey Avenue to
Keating Avenue and to approve the resolution authorizing the Mayor and City
Clerk to sign the contract.
FINANCIAL IMPACT: MOOT's participation is limited to the federal funds of
$467,448 and $116,862 of state funds for a total grant of $584,310. The estimated
total construction cost, without engineering, including the non-participating
item of watermain is $750,200. The engineering cost is estimated at 15% of the
construction cost, which would be split equally with the City of Muskegon
Heights.
BUDGET ACTION REQUIRED: None at this time. The City's share of the cost will
come out of the Major Street and water funds as shown in the 2007 budget.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize
the Mayor and Clerk to sign both.
      H. City - Michigan Department of Transportation Agreement for Federal
         Money Loan to Reconstruct Getty Street. Hovey to Keating.
         ENGINEERING
SUMMARY OF REQUEST: To approve the contract with Michigan Department of
Transportation for the reconstruction of Getty Street from Hovey Avenue to
Keating Avenue and to approve the resolution authorizing the Mayor and Clerk
to sign the contract. As part of the "jobs today's program" the state made
available to local governments the ability to advance construct projects on the
2007 and 2008 transportation plan by lending the federal allocation for those
projects as long as the local governments agreed to two conditions:
   1. The projects would be advertised and awarded a year ahead of their
      scheduled time (Getty was scheduled for 2007 and we completed the
      design in 2006).
   2. The local governments would have to enter into the agreement with the
      state which outlines the terms and conditions of the loan.
The advantage on this project is that this whole agreement is merely a paper
work matter since the city could not have spent any money against the federal
funds to accrue any interest since the actual construction will take place in the
2007 fiscal year.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None at this time. The City's share of the cost will
come out of the Major Street and water funds as shown in the 2007 budget.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize
the Mayor and Clerk to sign both.
      I. Michigan Main Street/Community Requirements and Expectations
         Agreement. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Michigan Economic Development Corporation
(MEDC) requires that the local community (i.e., City of Muskegon) enter into an
agreement with the local Main Street Board and MEDC. The Commission
approved the Agreement in 2005. However, the Michigan Main Street has
revised the Agreement from three years to five years. They have also made the
reporting requirements stricter. Therefore, the Commission is being asked to
approve the new Agreement. The Agreement outlines the support to be
provided. There is no financial obligation by the City of Muskegon to support
the program. The commitments relate to cooperation and support. If, for some
reason, the Agreement is not adhered to, the only repercussion is that the
Agreement would be null and void.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Agreement and authorize the City
Manager to sign.
       J. Lead-Based Paint Abatement at 1122 Spring Street.         COMMUNITY &
          NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Success Enterprise of 2722
East Broadway, Michigan, for the lead base paint abatement of the city-owned
home at 1122 Spring for the cost of $24,400. The City received two additional
bids:
   •   Specialty Builders, 2434 Annette, Muskegon, Ml for $25,650
   •   Statewide Abatement, 1720 Creston, North Muskegon, Ml for $27,810
After the lead base paint abatement is complete, the structure will be totally
rehabilitated and then sold to a qualified low to moderate income homebuyer.
The structure at 1122 Spring is a part of the Community and Neighborhood
Services departments' Operation R & R (Resurgence and Reawakening), which
is an attempt to rehabilitate ten houses throughout the City before the end of
this fiscal year.
FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2006-2007
HOME budget.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve Community and Neighborhood Services
office to develop a contract with Success Enterprises of Muskegon, Michigan,
and direct the Mayor and Clerk to sign the contract.
COMMITIEE RECOMMENDATION: The Operation R & R project was approved by
the Land Reutilization Committee.
       K. Approval of Contractor for Rehabilitation of House at 1122 Spring Street.
          COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Beattie Bros. Construction
LLC, 2786 Holton-Whitehall Road, Twin Lake, Ml for the completion of the
rehabilitation to be located at 1122 Spring Street for the cost of $43,065. After
the total rehabilitation is completed, the home will be sold to a qualified first-
time homebuyer; continuing the City's aggressive neighborhood revitalization
efforts in the Mclaughlin Neighborhood area under the Operation: Spring Street
Reawakening. This is under the umbrella of Operation R & R (Resurgence and
Reawakening) which is a planned rehabilitation blitz by the Community and
Neighborhood Services department to rehabilitate ten houses throughout the
City before May 31, 2006.
The City received three additional bids:
   •   Obenauf DePender Construction LLC, 4471 Thompkins Trail, Muskegon, MI.
       for $45,195
   •   Specialty Builders, 2434 Annette Ave., Muskegon, Ml, for $55,195
   •   J2 Development & Construction, 109 West Laketon Avenue, Muskegon,
       Ml, for $60,894
FINANCIAL IMPACT: The funding for the project will be taken from the City's
2006-2007 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services office to develop a contract with Beattie Bros. Construction of Twin
Lake, Ml, and direct the Mayor and Clerk to sign the contract.
COMMITTEE RECOMMENDATION: Operation R & R was approved by the Land
Reutilization Committee.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
Consent Agenda as read.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, and Carter
             Nays: None
MOTION PASSES
2006-88 PUBLIC HEARINGS:
       A. Amendments to Brownfield Plan - Viridian Place at Edison Landing.
          PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan.            The
amendments are for the inclusion of property owned by Edison Landing Lot I,
LLC ("ELLI") in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the
Brownfield Plan amendments, although the redevelopment of the property into
a mixed-use development will add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for October 24, 2006, at their September 26, 2006, meeting. Since that
time, a notice of the public hearing has been sent to taxing jurisdictions, and it
has been published twice in the Muskegon Chronicle.            In addition, the
Brownfield Redevelopment Authority approved the Plan amendment on
September 18, 2006, and further recommends that the Muskegon City
Commission approve the Plan amendment.
The Public Hearing opened at 5:48 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Carter, second by Commissioner Shepherd to close the
Public Hearing at 5:52 p.m. and approve the amendments to the Brownfield Plan
for Viridian Place at Edison Landing.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Carter, and Davis
            Nays: None
MOTION PASSES
      B. Request to Establish an Obsolete Property District - 67 W. Western
         Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Witt Buick, 67 W. Western Avenue, Muskegon, Ml 49442, has requested
the establishment of an Obsolete Property District. The district would be located
at 67 W. Western Avenue, Muskegon, MI. Total capital investment for this project
is $60,000.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property
taxes would be frozen for the duration of the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval.
The Public Hearing opened at 5:55 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Spataro, second by Commissioner Shepherd to close
the Public Hearing at 5:59 p.m. and approve the request to establish an
Obsolete Property District at 67 W. Western Avenue.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, and Gawron
            Nays: None
MOTION PASSES
      C. Request to Issue an Obsolete Property Certificate - Witt Buick, 67 W.
         Western Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Witt Buick, 67 W. Western Avenue, Muskegon, Ml has requested the
issuance of an Obsolete Property Certificate for the property located at 67 W.
Western Avenue, Muskegon, MI. Total capital investment for this project is
$60,000. Because of the amount of investment. the applicant is eligible for an
eight-year certificate.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property
taxes would be frozen for the duration of the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval.
The Public Hearing opened at 6:01 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Vice Mayor Gawron, second by Commissioner Carter to close the
Public Hearing at 6:03 p.m. and issue an Obsolete Property Certificate to Witt
Buick at 67 W. Western Avenue for eight years.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, and Shepherd
            Nays: None
MOTION PASSES
2006-89 NEW BUSINESS:
      A. Donation Program for 2006 Individual Income Tax Returns.      INCOME
         TAX
SUMMARY OF REQUEST: Approval to designate donations from the 2006 income
tax returns towards the upkeep of the Dog Park or the Muskegon's Smith Ryerson
Recreational Center. Income tax refunds voluntarily donated from taxpayers will
go to either the Dog Park or the Recreational Center.
FINANCIAL IMPACT: The average amount collected each year is $2,000.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval recommended.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the designated donations from the 2006 income fax returns to go to the
Smith Ryerson Recreational Center.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Shepherd, and Spataro
            Nays: None
MOTION PASSES
      B. Request to Construct Improvements in Right-of-Way and Maintenance
         Agreement with Witt Buick. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Witt Buick, 67 W. Western Avenue, Muskegon, Ml 49442,
has requested to be allowed to construct certain improvements on the City
rights-of-way at the locations on the map.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the maintenance
agreement, allowing Witt Buick to construct improvements on the City rights-of-
way.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the maintenance agreement with Witt Buick.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, and Warmington
            Nays: None
MOTION PASSES
       C. Harbour Towne Dockominium. CITY MANAGER
SUMMARY OF REQUEST: To approve an agreement with Harbour Towne
Commercial Development and Harbour Towne Marina Association to complete
a development component of the Harbour Towne Condominium project.
FINANCIAL IMPACT: $3,000
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the agreement.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the agreement with Harbour Towne Commercial Development and Harbour
Towne Marina Association to complete a development component of the
Harbour Towne Condominium project.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, and Warmington
            Nays: None
MOTION PASSES
       D. Concurrence with the Housing Board of Appeals Notice and Order to
          Demolish the Following: PUBLIC SAFETY
         856 Fork- Area 11 (REMOVED PER STAFF REQUEST)
         775 Washington- Area 12
         1957 Continental
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It
is further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
FINANCIAL IMPACT: General Funds
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION:       To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to concur with
the Housing Board of Appeals notice and order to demolish 1957 Continental.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, and Carter
            Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Commissioner Carter to concur
with the Housing Board of Appeals notice and order to demolish 775
Washington, but not proceed with the demolition for 60 days allowing it to be
brought up to code.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Carter, and Davis
            Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commission discussed various items.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:40p.m.


                                         Respectfully submitted,




                                         Linda Potter, CMC
                                         Acting City Clerk
                        AGENDA ITEM N O . - - - - - - -

              CITY COMMISSION M E E T I N G - - - - - - - - - -


TO:          Honorable Mayor and City Commissioners

FROM:        Bryon L. Mazade, City Manager

DATE:        October 16, 2006

RE:          Housing Commission Appointment



SUMMARY OF REQUEST:
To appoint Angela Anthony to the Housing Commission as the Resident Commissioner, to
serve out the remaining term (expires 1/31/07) of Bobbie Jones who no longer resides at
Hartford Terrace.



FINANCIAL IMPACT:
None.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To confirm the appointment.




COMMITTEE RECOMMENDATION:
None.




pb\0\AGENDA- HOUSING COMMISSION APPT 101606
                 Commission Meeting Date: October 24, 2006




Date:          October 13, 2006
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development G(bL
RE:            Vacation of the alley in Block 12 of the Continental Addition


SUMMARY OF REQUEST:

Request for vacation of the alley located Block 12, Continental Addition bounded by E.
Keating Avenue, Brunswick Street, E. Holbrook Avenue, and Huizenga Street.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends vacation of the alley, with the condition that all utility easement rights
be retained.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended vacation of the alley at their 10/12/06
meeting, with the condition that all utility easement rights be retained. The vote was
unanimous with T. Harryman, S. Warmington, and J. Aslakson absent.




10/13/2006
                               RESOLUTION#2006- 87(b)
                         RESOLUTION TO VACATE A PUBLIC ALLEY

WHEREAS, a petition has been received to vacate the alley in Block 12, Continental Addition,
bounded by E. Keating Avenue, Brunswick Street, E. Holbrook Avenue and Huizenga Street; and,

WHEREAS, the Plarming Commission held a public hearing on October 12, 2006, to consider the
petition and, subsequently, recommended the vacation; and,

WHEREAS, due notice had been given of said hearing as well as the October 24, 2006, City
Commission meeting to consider the recommendation of the Planning Commission;

NOW, THEREFORE, BE IT RESOLVED that the City Commission deems it advisable for the
public interest to vacate and discontinue the alley in Block 12, Continental Addition bounded by E.
Keating Avenue, Brunswick Street, E. Holbrook Avenue, and Huizenga Streeet, County of
Muskegon, State of Michigan.

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

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

Adopted this 24th day of October, 2006.

        Ayes:     Davis, Gawron, Shepherd, Spataro, Warmington, Carter

        Nays:     None

        Absent:    Wi erengo




                                                Attest:   ~               ..J.  li?tzi
                                                          Linda S. Potter, CMC, Acting City Clerk
                                        2006-87(b)
                                      CERTIFICATION

                  (Vacation of alley in Block 12 of the Continental Addition)

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular
meeting held on October 24, 2006.




                                                           Linda S. Potter, CMC
                                                           Acting Clerk, City of Muskegon
'
    I




        City of Muskegon                                                •
        Planning Commission
        Case t# 2006-46                                                -~·
                                                                        •




                                         -     • SubjtelProptoly(~l)

                                             D •   NoiiOt Art•




         ooo          0       800 Feat
                                  Staff Report [EXCERPT]
                                    CITY OF MUSKEGON
                                  PLANNING COMMISSION
                                    REGULAR MEETING
                                       October 12, 2006



Hearing; Case 2006-46: Request to vacate the alley in Block 12 of the Continental Addition
bounded by E. Keating Avenue, Brunswick Street, E. Holbrook Avenue, and Huizenga Street,
by Tri-State Aluminum.

BACKGROUND

The alley splits the two parcels that are owned by Tri-State Aluminum. Conducting business
would be much easier for the applicant, if this alley was vacated. No homes bordering the alley
need access from it for either a garage or driveway. They all have access off either Brunswick or
Huizenga. The alley appears to be used very little, if at all, on the residential end.

The Fire Department and DPW has no issues with this vacation. The Engineering Department had
no comments regarding this request.

Staff has received no comments regarding this request.




Alley looking nmth from E. Keating Ave.                  Alley looking south from E. Holbrook.
     City of Muskegon
                                                                                                                                   .
     Planning Commission
     Case# 2006-46
                                                                                                                                  ·~·
                                                                                                                                   .

                                                                                               -       ~   Subjl
                                                                          II T
RECOMMENDATION

Staff recommends approval of the request, subject to the conditions offered below.


DELIBERATION
I move that the vacation of the alley located in Block 12 of the Continental Addition, bounded by
E. Keating Avenue, Brunswick Street, E. Holbrook Avenue, and Huizenga Street, be
recommended to the City Commission for (approval/denial), based on (compliance/lack of
compliance), with the City's 1997 Master Land Use Plan, with the following conditions:

1.          All utility easements will be retained.




0:\Planning\COMMON\Zoning\City Commission Items\vacations\2006 Vacations\Case 200646 e keating alley vacation.doc
                 Commission Meeting Date: October 24, 2006




Date:          October 13, 2006
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development              CJ!;C.
RE:            Zoning Ordinance Amendment- Planning Commission
               Notice Mailing Area


SUMMARY OF REQUEST:

Request to amend Section 2405 (Petitions, Fees, paragraph #2) of Article XXN (Administration
and Enforcement) regarding the 300 foot notice mailing area for Planning Commission public
hearings.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff reconunends amendment of the Zoning Ordinance to amend the language for Planning
Commission public hearing notices.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the request at their 10/12 meeting. The
vote was unanimous with T. Harryman, S. Warmington, and J. Aslakson absent.




10/13/2006
                  Commission Meeting Date: October 24, 2006




Date:          October 13, 2006
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development ~
RE:            Zoning Ordinance Amendment- Aggrieved Parties Language


SUMMARY OF REQUEST:

Request to amend Section 2503 (Appeals, Applications, Filing Procedure and Fees, paragraph
#1) of Article XXV (Zoning Board of Appeals) regarding "aggrieved parties" language.


FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends amendment of the Zoning Ordinance to amend the language for "aggrieved
parties".

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the request at their 10112 meeting. The
vote was unanimous with T. Harryman, S. Warmington, and J. Aslakson absent.




10/13/2006
                 Commission Meeting Date: October 24, 2006




Date:          October 13, 2006
To:            Honorable Mayor and City Commissioners
From:          Planning & Economic Development              CJK-
RE:            Zoning Ordinance Amendment- ZBA Newspaper Public
               Notice


SUMMARY OF REQUEST:

Request to amend Section 2504 (Hearings, Notices, and Adjournments, #1) of Article XXV
(Zoning Board of Appeals) regarding newspaper public notice for Zoning Board of Appeals
public hearings.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Staff recommends amendment of the Zoning Ordinance to amend the language regarding
newspaper notice of ZBA public hearings.

COMMITTEE RECOMMENDATION:

The Planning Commission recommended approval of the request at their 10/ 12 meeting. The
vote was unanimous with T. Harryman, S. Warmington, and J. Aslakson absent.




10/13/2006
Date:         October 24, 2006
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City- MDOT Agreement for the reconstruction of:
              Getty Street, Hovey Ave. to Keating Ave.


SUMMARY OF REQUEST:
To approve the attached contract with MOOT for the reconstruction of Getty Street
from Hovey Ave. to Keating Ave. and to approve the attached resolution authorizing
the Mayor and City Clerk to sign the contract.



FINANCIAL IMPACT:
MOOT's participation is limited to the federal funds of $467,448.00 & $116,862.00 of
state funds for a total grant of $584,310. The estimated total construction cost,
without engineering, including the non-participating item of watermain is $750,200.
the engineering cost is estimated at 15% of the construction cost, which would be
split equally with the City of Muskegon Heights.



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



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



COMMITTEE RECOMMENDATION:
                                     RESOLUTION 2006-87(g)


RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE
RECONSTRUCTION OF GETTY STREET FROM HOVEY AVE. TO KEATING AVE. AVE. ALONG
WITH WATER AND SIDEDWALK WORK TOGETHER WITH OTHER NECESSARY RELATED
WORK AND AUTHORIZATION FOR MAYOR STEPHEN J. WARMINGTON AND CITY CLERK GAIL
A KUNDINGER TO EXECUTE SAID CONTRACT

Moved by       Commissioner Carter                        and supported by



Commissioner_ _. : :.D. . ;_a-'v--=i:c.:...._
                                       .s _ __ _ _that the following Resolution be adopted:
WHEREAS, entry by the City of Muskegon into Contract no. 06-6470 between the Michigan
Department of Transportation and the City of Muskegon for the reconstruction of Getty Street from
Hovey Ave. to Keating Ave. within the City is in the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 06-6470 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.



Adopted this    24 t h      day of   October, 2006.




                                          ATTEST     dawia d. ~
                                                    LindaA'. Potter, Acting City Clerk

                                         CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on
october 24 2006. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State ofMichigan, Act 267 of the Public Acts of 1976.


                                                           CITY OF MUSKEGON

                                                   By ~                    lt6&
                                                            Linda Potter, Acting City Clerk
                                                                           CAB
                                                            Control Section: STUL 61407
                                                            Job No.:          84364
                                                            Project:          STP 0661(025)
                                                            Federal Item No.: RR 5346
                                                            CFDA No.:         20.205 (Highway
                                                                              Research Planning
                                                                              & Construction)
                                                            Contract No.:     06-6470



                  MICHIGAN DEPARTMENT OF TRANSPORTATION

                                    CITY OF MUSKEGON

                             LOCALJOBSTODAYPROGRAM

                                      LOAN CONTRACT



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


WITNESSETH:

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

NOW, THEREFORE, the parties agree to the following:

Section 1.     PURPOSE

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

9/27/2006                                       I                      Loca!JobsTodayLoan vlw
       the RECIPIENT is inconsistent with this CONTRACT and/or with federal or state laws,
       regulations, rules, or policies.

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


Section 2.    CONTRACT TERM

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

Section 3.    PROJECT FUNDING, BILLINGS, AND PAYMENTS

       The DEPARTMENT will loan the RECIPIENT $467,448. The RECIPIENT will pay
       interest at the rate of 4 percent annually. The loan funds will be used only for the
       PROJECT. The DEPARTMENT will retain the loan funds and make payments to
       PROJECT contractors and subcontractors on the RECIPIENTs behalf. The RECIPIENT
       directs the DEPARTMENT to convert federal advanced construction funds as soon as
       they become available. The assessment of interest will begin when the DEPARTMENT
       expends loan funds on the RECIPIENTs behalf. It is understood that the loan funds
       provided under this CONTRACT will not be sufficient to pay all PROJECT costs.

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

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

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

9/27/2006                                     2                      Loca!JobsTodayLoan vlw
Section 4.    ADMINISTRATION

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

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

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

Section 5.    COMPLIANCE ACTIVITIES

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

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

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

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

Section 6.    BREACH AND TERMINATION

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

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

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




9/27/2006                                      3                      LocalJobsTodayLoan vlw
        c.     The RECIPIENT defaults in the pelformance of any other obligation to the
               DEPARTMENT under this CONTRACT.

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

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

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

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

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

Section 7.    CONTRACTUAL OBLIGATIONS

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

Section 8.    PERFORMANCE RESPONSIBILITY

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

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

Section 9.    LOCAL AGENCY COST PARTICIPATION CONTRACT

       The DEPARTMENT and the RECIPIENT agree that, with respect to the PROJECT, the
       RECIPIENT will enter into a Local Agency Cost Participation Contract consisting of Part

9/27/2006                                     4                      Loca!JobsTodayLoan vlw
        I and Part II (Standard Agreement Provisions) with the DEPARTMENT prior to the
        disbursement of loan funds.

Section 10.    NOTICES

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

       If to the DEPARTMENT:

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

       If to the RECIPIENT:

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


Section 11.   SEVERABILITY

       If any te1m, covenant, condition, or provision (or any part thereof) of this CONTRACT
       or the application thereof to any party or circumstance will at any time or to any extent be
       held to be invalid or unenforceable, the remainder of this CONTRACT or the application
       of such term or provision (or remainder thereof) to pmties or circumstances other than
       those to which it is held to be invalid or unenforceable will not be affected thereby, and
       each term, covenant, condition, and provision of this CONTRACT will be valid and will
       be enforced to the fullest extent pe1mitted by law.

Section 12.   ASSIGNMENT

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

Section 13.   ACCESS AND AUDIT

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




9/27/2006                                       5                      Loca!JobsTodayLoan vlw
       b.   The RECIPIENT will maintain the RECORDS for at least three (3) years from the
            date of final payment made by the DEPARTMENT under this CONTRACT. In
            the event of a dispute with regard to the allowable expenses or any other issue
            under this CONTRACT, the RECIPIENT will thereafter continue to maintain the
            RECORDS at least until that dispute has been finally decided and the time for all
            available challenges or appeals of that decision has expired.

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

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

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

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

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

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

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

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

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




9/27/2006                                   6                       LocalJobsTodayLoan vlw
               IV.    Recipients will not charge audit costs to the DEPARTMENT's federal
                      programs that are not in accordance with the aforementioned OMB
                      Circular A-133 requirements.

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

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


Section 14.   PROHIBITION OF DISCRIMINATION

       a.     In connection with the performance of the PROJECT under this CONTRACT, the
              RECIPIENT (hereinafter in Appendix A referred to as the "contractor") agrees to
              comply with the State of Michigan provisions for "Prohibition of Disc1imination
              in State Contracts," as set forth in Appendix A, dated March 1998, attached hereto
              and made a pait hereof. This provision will be included in all subcontracts relating
              to this CONTRACT.

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

Section 15.   ASSIGNMENT OF ANTITRUST RIGHTS

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

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

      The RECIPIENT shall notify the DEPARTMENT if it becomes aware that an antitrust
      violation with regard to claims based on goods or services that were used to meet the
      RECIPIENT's obligation to the DEPARTMENT under this CONTRACT may have

9/27/2006                                     7                       Loca!JobsTodayLoan vlw
       occuned or is threatened to occur.         The RECIPIENT shall also notify the
       DEPARTMENT if it becomes aware of any person's intent to commence, or of
       commencement of, an antitrust action with regard to claims based on goods or services
       that were used to meet the RECIPIENT's obligation to the DEPARTMENT under this
       CONTRACT.

Section 16.   A WARD CONTINGENCY

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

Section 17.   FEDERAL TAX CODE

       The RECIPIENT is a political subdivision of the State of Michigan that qualifies as a
       "government unit" within the meaning of Sections 141(b)(6)(A) and 141(c)(1) of the
       Internal Revenue Code of 1986, as amended, hereinafter refened to as the "CODE."

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

       The RECIPIENT will not permit at any time or times any of the property financed with
       the proceeds of the loan funds that would result in the exclusion of any bonds of the
       DEPARTMENT from the treatment afforded by Section 103(a) of the CODE, as from
       time to time amended, by reason of the classification of such bonds as "private activity
       bonds" within the meaning of Section 141(a) of the CODE, or as obligations guaranteed
       by the United States of America, as provided in Section 149(b) of the CODE, or cause
       interest on the bonds to be includable in gross income for federal income tax purposes.




9/27/2006                                     8                     Loca!JobsTodayLoan vlw
Section 18.   AWARD

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


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


CITY OF MUSKEGON




MICHIGAN DEPARTMENT OF TRANSPORTATION




B~




9/27/2006                                    9                      Loca!JobsTodayLoan vlw
                                                  APPENDIX A
                               PROHIBITION OF DISCRIMINATION IN STATE CONTRACTS

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

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

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

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

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

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

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

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

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

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

                                                 APPENDIXB

During the performance of this contract, the contractor, for itself, its assignees, and successors in interest
(hereinafter referred to as the "contractor 11 ) agrees as follows:

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

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

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

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

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

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

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

6.     Incorporation of Provisions: The contractor shall include the provisions of paragraphs 1 through 6
       of every subcontract, including procurements of materials and leases of equipment, unless exempt by
       the Regulations, or directives issued pursuant thereto. The contractor shall take such action with
       respect to any subcontract or procurement as the Michigan Department of Transportation or the
       Federal Highway Administration may direct as a means of enforcing such provisions including
       sanctions for non-compliance; provided, however, that in the event a contractor becomes involved in,
       or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the
       contractor may request the Michigan Department of Transportation to enter into such litigation to
       protect the interests of the State, and, in addition, the contractor may request the United States to
       enter into such litigation to protect the interests of the United States.
Date:         October 24, 2006
To:           Honorable Mayor and City Commissioners
From:         Engineering
RE:           City- MOOT Agreement for:
              Federal money loan to reconstruct
              Getty Street, Hovey Ave. to Keating Ave.


SUMMARY OF REQUEST:

To approve the attached contract with MDOT for the reconstruction of Getty Street
from Hovey Ave. to Keating Ave. and to approve the attached resolution authorizing
the Mayor and City Clerk to sign the contract.

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

   1- The projects would be advertised and awarded a year ahead of their
       scheduled time (Getty was scheduled for 2007 and we completed the design
       in 06).

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

The advantage on this project is that this whole agreement is merely a paper work
matter since the city could not have spent any money against the federal funds to
accrue any interest since the actual construction will take place in the 2007 fiscal
year.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

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

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

COMMITTEE RECOMMENDATION:
                                    RESOLUTION 2006-87(h)


RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN
DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE
RECONSTRUCTION OF GETIY STREET FROM HOVEY TO KEATING AVE. ALONG WITH
WATER AND SIDEDWALK WORK TOGETHER WITH OTHER NECESSARY RELATED WORK
AND AUTHORIZATION FOR MAYOR STEPHEN J . WARMINGTON AND ACTING CITY CLERK
LINDA POTIER TO EXECUTE SAID CONTRACT

Moved by        Commissioner Carter                          and supported by



Commissioner       Davis                          that the following Resolution be adopted:

WHEREAS, entry by the City of Muskegon into Contract no. 06-5470 between the Michigan
Department of Transportation and the City of Muskegon for the reconstruction of Getty Street from
Hovey Ave. to Keating Ave. within the City is in the best interests of the City of Muskegon.

RESOLVED, that entry by the City into Contract Agreement Number 06-5470 be and the same is
hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for
and on behalf of the City of Muskegon.



Adopted this_..=:.2....::
                    4_t _h __day of 0 c to be r   , 2006 .




                                          ATIEST      ciUu/A J dlit
                                                     Linda &. Potter, Acting City Clerk

                                         CERTIFICATION

This resolution was adopted at a meeting of the City Commission, held on
October 24, 2006. The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State ofMichigan, Act 267 ofthe Public Acts of 1976.

                                                              CITY OF MUSKEGON

                                                    By__,_a~dtz
                                                           fm .·. . . . ._fl&
                                                                          ~-=----
                                                               Linda Potter, Acting City Clerk
(ADVANCE CONSTRUCTION CONTRACT)                                   CAB
STP &LJT                                            Control Section      STUL61407
                                                    Job Number           84364
                                                    Project              STP 0661(025)
                                                    Federal Item No.     RR 5346
                                                    CFDANo.              20.205 (Highway
                                                                         Research Planning &
                                                                         Construction)
                                                   Contract No.          06-5470


                                           PART I


        THIS CONTRACT, cons1stmg of PART I and PART II (Standard Agreement
Provisions), is made and entered into this date of                             , by and between
the MICHIGAN DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the
"DEPARTMENT"; and the CITY OF MUSKEGON, a Michigan municipal corporation,
hereinafter referred to as the "REQUESTING PARTY"; for the purpose of fixing the rights and
obligations of the parties in agreeing to the following improvements, in the City of Muskegon,
Michigan, hereinafter referred to as the "PROJECT" and estimated in detail on EXHIBIT "I",
dated September 27, 2006, attached hereto and made a part hereof:

       PART A- FEDERAL AND STATE PARTICIPATION
       Reconstruction work along Getty Street from Hovey Avenue to Keating Avenue;
       including pavement removal, concrete curb and gutter, sidewalk ramps, storm sewer,
       drainage structure adjustment, hot mix asphalt paving, and pavement marking work; and
       all together with necessary related work.

       PART B- NO FEDERAL OR STATE PARTICIPATION
       Watermain work along Getty Street from Hovey Avenue to Keating Avenue; and all
       together with necessary related work.


       WITNESSETH:

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

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

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



06/19/96 AdvconstUTLoan.FOR 9/27/06           1
      WHEREAS, the reference "FHW A" in PART I and PART II refers to the United States
Department of Transportation, Federal Highway Administration; and

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

                        SURFACE TRANSPORTATION PROGRAM

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

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

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

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

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

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

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

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

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




06/19/96 AdvconstLJTLoan.FOR 9/27/06          2
       3.      The DEPARTMENT is authorized by the REQUESTING PARTY to administer
on behalf of the REQUESTING PARTY all phases of the PROJECT including advertising and
awarding the construction contract for the PROJECT or portions of the PROJECT. Such
administration shall be in accordance with PART II, Section II of this contract.

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

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

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

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

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

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

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

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

              State Local Jobs Today Grant Funds shall be applied to the eligible items of the
              PART A portion of the PROJECT COST at a participation ratio equal to 20
              percent up to an amount not to exceed $116,862. The balance of the PART A
              portion of the PROJECT COST, after deduction of State Funds, shall be charged
              to and paid by the REQUESTING PARTY in the manner and at the times
              hereinafter set forth.




06119/96 AdvconstLJTLoan.FOR 9/27/06          3
              Contingent upon availability of Federal Funds and Federal approval, Federal
              Surface Transportation Funds, for future fiscal years, may be applied to that
              portion of the PART A cost incurred as advance construction in an amount such
              that the Federal Surface Transportation Funds equal a participation ratio of 80
              percent up to an amount not to exceed $467,448.

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

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

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

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

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

        Failure to make such payments within 10 days of receipt of billings from the
DEPARTMENT, the DEPARTMENT is hereby authorized to withhold without fm1her notice an
equal amount from the REQUESTING PARTY'S share of any future Act 51 monthly
allocations.

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




06/19/96 AdvconstLJTLoan.FOR 9/27/06          4
       7.    Uppon completion of constgruction of the PROJECT, the REQUESTING
PARTY will promptly caust to be enacted and enforced such ordinances or regulations as may be
necessary to prohibit parking in the roadway right-of-way throughout the limits of the
PROJECT.

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

       9.       The REQUESTING PARTY certifies that it is a person under the Natural
Resources and Environmental Protection Act (NREPA); 1995 PA 71 and is not aware of and has
no reason to believe that the property on which the work under this agreement is to be performed
is a facility as defined in MCL 324.20101(o); MSA 13A.20101(1)(1). The REQUESTING
PARTY certifies that it is not a person liable under Part 201 or Part 213 of the Natural Resource
and Environmental Protection Act (NREPA); MCL 324.20101 et seq. and Part 213 of NREPA;
MCL 324.21301a et seq. The REQUESTING PARTY is a local unit of government that has
acquired or will be acquiring property for a transportation corridor or public right-of-way and
was not responsible for any activities causing a release or threat of release at or on the property.
Pursuant to MCL 324.20126, the REQUESTING PARTY is not a person who is liable for
response activity or response activity costs as defined by MCL 324.20101(ee) and (ff).

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

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


06/19/96 AdvconstLJTLoan.FOR 9/27/06            5
all response costs and delay costs of the contractor for the PROJECT. If the REQUESTING
PARTY refuses to participate in such costs, the DEPARTMENT shall terminate the PROJECT.
The parties agree that any costs or damages that the DEPARTMENT incurs as a result of such
termination shall be considered a PROJECT COST.

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

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

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

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

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

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




06119/96 AdvconstLJTLoan.FOR 9/27/06          6
        15.    The REQUESTING PARTY shall approve all of the plans and specifications to
be used on the PROJECT and shall be deemed to have approved all changes to the plans and
specifications when put into effect. It is agreed that ultimate responsibility and control over the
PROJECT rests with the REQUESTING PARTY and local agencies, as applicable.

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

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

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

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

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

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




06/19/96 AdvconstUTLoan.FOR 9/27/06             7
        19.     This contract shall become binding on the parties hereto and of full force and
effect upon the signing thereof by the duly authorized officials for the parties hereto and upon the
adoption of the necessary resolution approving said contract and authorizing the signatures
thereto of the respective officials of the REQUESTING PARTY, a certified copy of which
resolution shall be attached to this contract.

       IN WITNESS WHEREOF, the pa1ties hereto have caused this contract to be executed the
day and year first above written.

CITY OF MUSKEGON                                     MICIDGAN DEPARTMENT
                                                     OF TRANSPORTATION




06/19/96 AdvconstUTLoan.FOR 9/27/06             8
                                                                            September 27, 2006


                                           EXHIBIT I

                             CONTROL SECTION               STUL61407
                             JOB NUMBER                    84364
                             PROJECT                       STP 0661 (025)


                                     ESTIMATED COST

CONTRACTED WORK
                                                       PART A         PARTB        TOTAL
Estimated Cost                                         $741,600       $8,600       $750,200


                                   COST PARTICIPATION

GRAND TOTAL ESTIMATED COST                             $741,600       $8,600       $750,200
Less State Local Jobs Today Grant Funds*               $116,862       $     0      $116,862
Balance                                                $624,738       $8,600       $633,338


Less State Local Jobs Today Program Loan/Federal
 Funds (Advance Construction) Future Fiscal Year** $467,448           $     0      $467,448
REQUESTING PARTY'S SHARE (Future Fiscal Year) $157,290                $8,600       $165,890


*State Local Jobs Today Grant Funds shall be applied to the eligible items of the PART A
portion of the PROJECT COST at a participation ratio equal to 20 percent up to an amount not to
exceed $116,862.

**Contingent upon availability of Federal Funds and Federal approval, Federal Surface
Transportation Funds, for future fiscal years, may be applied to that portion of the PART A cost
incurred as advance construction in an amount such that the Federal Surface Transportation
Funds equal a participation ratio of80 percent up to an amount not to exceed $467,448.


NO DEPOSIT




06/19/96 AdvconstLJTLoan.FOR 9/27/06           9
DOT                                                           TYPEB
                                                 BUREAU OF HIGHWAYS
                                                              03-15-93




                                 PART II

                   STANDARD AGREEMENT PROVISIONS


           SECTION I   COMPLIANCE WITH REGULATIONS AND DIRECTIVES

           SECTION II PROJECT ADMINISTRATION AND SUPERVISION

           SECTION III ACCOUNTING AND BILLING

           SECTION IV MAINTENANCE AND OPERATION

           SECTION V   SPECIAL PROGRAM AND PROJECT CONDITIONS




03-15-93                           1
             g.      FAPG (23 CFR 645B): Accommodation of Utilities (PPM 30-4.1)

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

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

      3.     Modification Or Construction Of Railroad Facilities

             a.      FAPG (23 CFR 140I): Reimbursement for Railroad Work

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

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

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

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

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

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

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




03-15-93                                      3
                                        SECTION II

                   PROJECT ADMINISTRATION AND SUPERVISION


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

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

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

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

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




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

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

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

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

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

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

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




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

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

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

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

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

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

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

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




03-15-93                                      6
                                       SECTION III

                             ACCOUNTING AND BILLING


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

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

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

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

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

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

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


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

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

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

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

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



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

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

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

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

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

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

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

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

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

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


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

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

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

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

B.    Payment of Contracted and DEPARTMENT Costs:

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




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

C.     General Conditions:

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

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

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



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

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




03-15-93                                  12
                                        SECTION IV

                             MAINTENANCE AND OPERATION


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

       1.    All Projects:

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

      2.     Projects Financed in Part with Federal Monies:

             a.     Sign and mark each part of the PROJECT, in accordance with the current
                    Michigan Manual of Uniform Traffic control Devices, and will not install,
                    or permit to be installed, any signs, signals or markings not in
                    conformance with the standards approved by the FHW A, pursuant to 23
                    usc 109(d).
             b.     Remove, prior to completion of the PROJECT, all encroachments from the
                    roadway right-of-way within the limits of each part of the PROJECT.

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

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

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



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

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

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




03-15-93                                       14
                                        SECTION V

                   SPECIAL PROGRAM AND PROJECT CONDITIONS

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

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

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

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

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




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

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

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

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

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

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

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

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

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

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

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

                                                 APPENDIXB

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

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

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

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

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

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

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

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

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

             TO BE INCLUDED IN ALL FINANCIAL ASSISTANCE
                 AGREEMENTS WITH LOCAL AGENCIES

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


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

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

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

           The contractor, sub recipient or subcontractor shall not
           discriminate on the basis of race, color, national origin, or sex
           in the performance of this contract. The contractor shall carry
           out applicable requirements of 49 CFR Part 26 in the award
           and administration of US DOT -assisted contracts. Failure by
           the contractor to carry out these requirements is a material
           breach of this contract, which may result in the termination of
           this contract or such other remedy as the recipient deems
           appropriate.
          Commission Meeting Date: October 24, 2006




Date:         October 17, 2006
To:           Honorable Mayor & City Commission
From:         Planning & Economic Development Department cj3C
RE:           Michigan Main Street/Community Requirements
              and Expectations Agreement


SUMMARY OF REQUEST: The Michigan Economic Development Corporation
(MEDC) requires that the local community (i.e., City of Muskegon) enter into an
agreement with the local Main Street Board and MEDC. The Commission approved
the Agreement in 2005. However, the Michigan Main Street has revised the
Agreement from three years to five years. They have also made the reporting
requirements stricter. Therefore, the Commission is being asked to approve the new
Agreement. The Agreement outlines the support to be provided. There is no
financial obligation by the City of Muskegon to support the program. The
commitments relate to cooperation and support. If, for some reason, the Agreement
is not adhered to, the only repercussion is that the Agreement would be null and void.

FINANCIAL IMPACT: None.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To approve the attached Agreement and authorize
the City Manager to sign.

COMMITIEE RECOMMENDATION: None.
                  Michigan Main Street/
     Community Requirements and Expectations Agreement

THIS AGREEMENT is entered into and executed by the Michigan Main Street Program,
(MMS) whose address is 735 East Michigan Avenue, Lansing, MI 48909, the City of
Muskegon, County of Muskegon, State of Michigan (the "Community") whose address
is 933 Terrace St, and its local Main Street Program (the "Local Main Street Program"),
Muskegon Main Street, whose address is 900 Third St, for the purpose of implementing
the Michigan Main Street Program in the Community.

WHEREAS, the MMS Program has entered into a contract with the National Trust for
Historic Preservation, National Main Street Center, Washington, D.C. (the "NTHP
NMSC"), to provide technical expertise, training and services to selected Michigan
communities.

WHEREAS, this agreement is for the purpose of setting forth the MMS Program
requirements and expectations for the Community's Local Main Street Program, pursuant
to its selection as a Michigan Main Street Program Community and pursuant to
contractual arrangements between the NTHP NMSC and the MMS Program, so as to
assist in the revitalization of the designated Main Street project area of Muskegon,
Michigan;

NOW THEREFORE, in consideration of the foregoing mutual covenants and agreements
contained herein, the parties have agreed to do as follows:

    SECTION I. The Community and its Local Main Street Program agree to:

   1. Employ a full-time (no less than forty (40) hours per week) program director for
      the Local Main Street Program who will be responsible for the day-to-day
      administration of the Main Street program in the Community, and develop an
      employment contract to describe the above administrative duties for which the
      program director is responsible.

   2. Complete and accurate monthly reports must be submitted by the I 01h of each
      month on the form provided by the MMS program. If two monthly reports per
      year are not submitted, this will result in the suspension of all services. Once
      services are suspended a written warning to the chair of the board and program
      director will be issued requesting and explanation on why reports have not been
      submitted. Services will be reinstalled once all reports are up to date.

      Complete and accurate annual performance reports submitted on the 2"d Friday of
      August each year on the form provided by the MMS program. Annual reports that
      are not submitted would result in the suspension of all services. If the annual
      report is not submitted by the 2"d Friday of September, then the MMS/Community
    Requirements and Expatiations Agreement will be terminated and the community
    will no longer be a MMS community.

    Annual and monthly repmts must still meet these deadlines, regardless of changes
    in the program at the local level, such as temporary displacement of program
    director.

3. Funding for the first three years of the program must comply with the budget
   outlined and approved by MMS. Funding for years four and five should consist of
   fundraising activities from the MMS program.

4. Use the MMS Program name and logo is trademark protected. MMS communities
   are welcome to use the name and/or logo with MSHDA pre-approval. The use of
   the name and logo can be used for marketing material, window signs, flags,
   letterhead, banners, pins, etc.

5. The program director is required to participate in all scheduled MMS program
   training sessions (outlined in Section II of this agreement). If two training session
   are missed within a year by a program director, this will result in the suspension
   of all services. Once services are suspended a written warning to the chair of the
   board and program director will be issued requesting and explanation on why
   training sessions have not been attended. Services will be reinstalled once training
   issues are resolved. Travel expenses to any required sessions are the sole
   responsibility of the Local Main Street Program. If a community is with out a
   program director, then a representative from the community is required to attend
   in their place.

6. Require its Board, Chair, Committee Chairs and the 4-point approach committee
   volunteers to actively lead, through work plan and volunteer development and
   implementation, the Local Main Street Program. Fully utilize and successfully
   complete all state programmatic activities.

7. Maintain a current membership in the National Main Street Center Network.

I 0. Assume full responsibility for all costs and expenses associated with the
     performance of the Local Main Street Program and the performance of its rights
     and responsibilities under this Agreement. The Community and the Local Main
     Street Program further acknowledge that MMS is not responsible to the
     Community and the Local Main Street Program for any costs associated with this
     Program or the services provided under this Agreement, including but not limited
     to those costs or expenses incurred as a result of anticipated or actual participation
     in the MMS Program, the NTHP NMSC Program or pursuant to the Community's
     selection or participation as a Michigan Main Street Program Community.
                        SECTION II. The MMS agrees to:
1. Provide five years of customized program training and technical assistance, to
   each Michigan Main Street community. Training and technical assistance are
   anticipated as follows, but may be modified by MMS, in its sole discretion, to
   meet programmatic needs:

   RAMPING UP PROGRAM: FIRST THREE YEARS

   Year One
   Program Orientation (!day in Lansing)
   Reconnaissance Team (2 days in community)
   Basics 101 Training (!evening in community
   Manager Training (!day in Lansing)
   Work Plan Development (2 days in community)
   Volunteer Training (I day in community)
   Design Services for up to three buildings/for five years
   Design 101 (!evening in community)
   Design Services signs (6 signs for buildings)
   Historic District submission assistance to Parks Service (in community)
   Market Study including orientation (in Lansing and in community)
   Placement of community entranceway MMS signs
   Listserv opportunities
   Quarterly Forum Trainings (in communities)
   State efforts to market and advertise the local main streets
   Year End Visit with Memo (!day in community)
   National Main Street Conference Registration (one registration per community)

   Year Two
   Manager Training (I day in Lansing)
   Resource Team Visit (4 days in community)
   Design Services for up to three buildings/for five years
   Design Services 101 (I evening in community)
   Listserv opportunities
   Quarterly Forum Trainings (in communities)
   Year End Evaluation with Final Report (I day in community)
   State efforts to market and advertise the local main streets
   National Main Street Conference Registration (one registration per community)

   Year Three
   Manager Training (I day in Lansing)
   Design Services for up to three buildings/for five years
   Design Services 101 (I evening in community)
   Technical Assistance Visit Workshop (Lansing)
   Listserv opportunities
   Quarterly Forum Trainings (in communities)
   Year End Evaluation with Final Report (1 day in community)
    State efforts to market and advertise the local main streets
    Technical Assistance Visit (in community)
            (only accredited communities)
    National Main Street Conference Registration (one registration per community)

    Year Four
    Manager Training (I day in Lansing)
    Design Services for up to three buildings/for five years
    Quarterly Forum Trainings (in communities)
    Year End Evaluation with Final Report (1 day in community)
    Technical Assistance Visits (in community)
           (only accredited communities)
    National Main Street Conference Registration (one registration per community)

   Year Five
   Manager Training (I day in Lansing)
   Design Services for up to three buildings/for five years
   Quatierly Forum Trainings (in community)
   Resource Team Visit (in community)
          (only accredited communities)
   Year End Evaluation with Final Report (in community)
   Technical Assistance Visits (in community)
          (only accredited communities)
   National Main Street Conference Registration (one registration per community)

2. Conduct quarterly forum trainings statewide for program directors and local Main
   Street volunteers based on the combined needs of all Michigan Main Street
   Communities.

3. Conduct a year end evaluation for each community for five years. In order to
   receive the year end evaluation service the community must be in compliance
   with the program requirements including training and reporting. Community in
   the first year of the program will receive a year end memo. Community in years
   two through five will receive a written report.

4. Provide advice and information to the Local Main Street Program, its staff and
   board. MMS may, if requested and subject to schedule and program constraints,
   conduct on-site technical assistance visits by the Main Street Coordinator. Upon
   request by the Local Main Street Program and subject to agency availability,
   MMS may also request the assistance of other State or Federal agencies.

5. The design assistance package will include up to three buildings per year for a
   total of fifteen. The fifteen design assistance packages maybe scheduled
   according to the community needs and maybe used any time as long as the
   program is in compliance. If services are desired after year five, then the program
   must be accredited.
5. INDEMNIFICATION AND LIABILITY INSURANCE. To the extent allowed
   by law, the Community and its Local Main Street Program shall indemnify,
   defend, and hold harmless MMS or its subsidiaries from any damages that it may
   sustain through the negligence of the Community and/or its Local Main Street
   Program pertaining to the performance of this Agreement. The Community and
   its Local Main Street Program shall maintain such insurance to protect the MMS
   from claims that might arise out of or as a result of the Community's and/or Local
   Main Street Program's operations pursuant to this agreement. The Community
   and/or Local Main Street Program will provide and maintain its own general
   liability, property damage, and workers compensation insurance, which shall be
   written for not less than any limits of liability required by law.

6. TOTAL AGREEMENT. This Agreement contain the entire agreement between
   the parties superseding any prior or concurrent agreements as to the services being
   provided, and no oral or written terms or conditions which are not contained in
   this Agreement shall be binding. This Agreement may not be changed except by
   mutual agreement of the parties, reduced to writing and signed.

7. ASSIGNMENT/TRANSFER/SUBCONTRACTING. Except as contemplated
   by the Agreement, the Community and its Local Main Street Program shall not
   assign, transfer, convey, subcontract, or otherwise dispose of any duties or rights
   under this Agreement without the prior specific written consent of MMS. Any
   future successors of the Community and/or Local Main Street Program will be
   bound by the provisions of this Agreement unless MMS otherwise agrees in a
   specific written consent.

8. COMPLIANCE WITH LAWS. The Community and/or Local Main Street
   Program is not, and will not during the term of this Agreement, be in violation of
   any laws, ordinances, regulations, rules, orders, judgments, decrees or other
   requirements imposed by any governmental authority to which it is subject, and
   will not fail to obtain any licenses, permits or other governmental authorizations
   necessary to carry out its duties hereunder.

9 WAIVER. A failure or delay in exercising any right with respect to this
  Agreement will not be presumed to operate as a waiver unless otherwise stated in
  this Agreement, and a single or partial exercise of any right will not be presumed
  to preclude any subsequent or further exercise of that right, or the exercise of any
  other right.

I 0. NOTICES.        Any notice, approval, request, authorization, direction or other
     communication under this Agreement shall be given in writing and shall be
     deemed to have been delivered and given for all purposes (i) on the delivery date
     if delivered by electronic mail or by confirmed facsimile; (ii) on the delivery date
     if delivered personally to the Party to whom the same is directed; (iii) one (I)
     business day after deposit with a commercial overnight carrier, with written
    verification of receipt; or (iv) three (3) business days after the mailing date,
    whether or not actually received, if sent by U.S. mail, return receipt requested,
    postage and charges prepaid, or any other means of rapid mail delivery for which
    a receipt is available. The notice address for the Parties shall be the address as set
    forth in this Agreement, with the other relevant notice information, including the
    recipient for notice and, as applicable, such recipient's fax number or e-mail
    address, to be as reasonably identified by notifying Party. The MMS, the
    Community and the Local Main Street Program may, by notice given hereunder,
    designate any further or different addresses to which subsequent notices shall be
    sent.

8. NON-DISCRIMINATION AND UNFAIR LABOR PRACTICES.                                   In
   connection with this Agreement, the Community and its Local Main Street
   Program shall not discriminate against an employee or applicant for employment
   with respect to hire, tenure, terms, conditions or privileges of employment, or a
   matter directly or indirectly related to employment because of race, color,
   religion, national origin, age, gender, height, weight, marital status or handicap.
   In connection with this Agreement, the Community and its Local Main Street
   Program shall not violate 1980 Public Act 278, as amended, MCL 423.321, et seq,
   by entering into a sub-contract with any individual person, firm or entity who has
   been found in contempt of court by a Federal Court of Appeals on not less than
   three (3) occasions involving different violations during the preceding seven (7)
   years for failure to correct an unfair labor practice as prohibited by Section 8 of
   Chapter 372 of the National Labor Relations Act. Violations of the law after the
   beginning date of this Agreement may result in its termination.

9. SEVERABILITY. The invalidity or unenforceability of a particular provision of
   this Agreement shall not affect the validity or enforceability of any other
   provision of this Agreement, provided that the principal intent of this Agreement
   can be preserved.

10. GOVERNING LAW AND JURISDICTION. This Agreement is made and
    entered into in the State of Michigan and shall in all respects be interpreted,
    enforced and governed under the laws of the State of Michigan. The parties agree
    that any legal actions concerning this Agreement shall be brought in the Ingham
    County Circuit Court in Ingham County, Michigan, USA. The terms of this
    provision shall survive the termination of the cancellation of this agreement.

14. NO EMPLOYMENT, PARTNERSHIP OR AGENCY RELATIONSHIP.
    The MMS Program is limited to furnishing its technical services to the
    Community and its Local Main Street Program and thus nothing contained herein
    shall create any employer-employee relationship. Further, this Agreement does
    not create a partnership relationship.

15. NO THIRD PARTY BENEFICIARIES. There are no express or implied third
    party beneficiaries to this Agreement.
16. COUNTERPARTS. This Agreement may be executed in one or more
    counterparts and by facsimile, each of which shall constitute an original, and all
    of which together shall constitute one and the same instrument.

17. TERMINATION OR CANCELLATION.

   A.     This Agreement may be terminated by MMS by providing written notice
          of default and termination to the Community and its Local Main Street
          Program ("Notice of Default and Intent to Terminate") upon the
          occurrence of any of the following events or conditions ("Event of
          Default"):

          (i)    any representation or covenant made by the Community and/or its
                 Local Main Street Program is determined by MMS, in its reasonable
                 judgment, to be incorrect at the time that such representation or
                 covenant was made in any material respect, including, but not
                 limited to, the Reports and compliance with laws as required under
                 this Agreement;

          (ii)   the Community and/or its Local Main Street Program's failure to
                 comply with any of the covenants of this Agreement;

          (iii) use of the program training, technical assistance, and resources
                provided pursuant to this Agreement for purposes other than as set
                forth in this Agreement.

   B.     Notwithstanding the foregoing, the Community and its Local Main Street
          Program acknowledges that MMS's performance of its obligations under
          this Agreement is dependent upon the continued approval of funding
          and/or the continued receipt of state funding. In the event that the State
          Legislature, the State Government or any State official, public body
          corporate, commission, authority, body or employees, or the federal
          government (a) takes any legislative or administrative action, which fails
          to provide, terminates or reduces the funding or programmatic support
          necessary for this Agreement, or (b) takes any legislative or administrative
          action, which is unrelated to the source of funding or programmatic
          support for this Agreement, but which affects the MMS' s ability to fund
          and administer the MMS Program, then the MMS may cancel this
          Agreement by providing notice to the Community and its Local Main
          Street Program of cancellation. Cancellation may be made effective
          immediately, upon delivery of notice to the Community or its Local Main
          Street Program, or with such other time period as the MMS, in its sole
          discretion, deems reasonable.

  C.      In addition to the above, either party may terminate its obligations under
          this Agreement without cause by giving the other party a 30-calendar day
          written notice of such termination.

   D.     In the event that this Agreement is terminated, neither the MMS nor the
          Community or its Local Main Street Program shall have any further
          obligation to perform under this Agreement. The Community and/or the
          Local Main Street Program shall, unless otherwise directed by the MMS in
          writing, immediately take all reasonable steps to terminate operations
          under this Agreement.

18. AUTHORITY TO EXECUTE THIS AGREEMENT. The signatories below
    warrant that they are empowered to enter into this Agreement.

19. SEVERABILITY. The invalidity or unenforceability of a particular provision of
    this Agreement shall not affect the validity or enforceability of any other
    provision of this Agreement, provided that the principal intent of this Agreement
    can be preserved.

20. Failure to sign and submit this agreement to MMS on or before October 31,
    2006, will result in the termination of the community's participation in the
    MMS program.
IN WITNESS WHEREOF, the parties have executed this agreement.




                                                                                          (Date)


_,{!~!_t~~"-----'o"'-'/'----'-Z.L.L.l< -                             I
locatoon of obsol(~'~-~-ility
                      ""'"~
                                 (L: / u_ . ,. \:o;-
                                  ~{
                                    arl:d stret; P;O.               City. State. Z~Code)
                                                                {··~ /1
                                                                1               ,. {/(             //) u     .\k r-'CC; .·_ !h  V'i'/<(2.
 City. Township. Village (indi.?J.whichJ' /:.·                                                           I
                                                                                                         County    1
                                  }},:.      ~        (.'(     [-;                                                      lhuslool .:ode)
 Dale of Comrnencement of Rehabilitation
              !C           ~J-   2 t·o G~
                                                          '             Planned date of Compte lion or Rehabilitation
                                                                                        7- 1-        ). oc, ..7                      /)'/U'            r'c"·     ~r/10,/S           (;,/CJ!J
Estimat&tof Retmbiii!Jition                                             Number of years Hemptian req.rested; · ;,. .
                                                                                                                          '' rv:•
                                                                                                                                     ::;:;r     L_egal de_!!c~ptlon o~Obsolet& Proptrtyon separate
     "'       I   ['(U f·;,,;                /)           •(                                                      ,,
Expected projecllikehhood (check all that apply):
                                                                                                                            '1'''
                                                                                                                        .. -·;                                                       '
                                                                                                                                     '"
    0     Increase Commercial activity                                    0     Retain employment                                0        Revitalize urban areas

    n     Create employment                                               0     Prevent a loss of employment                     0        Increase number of residents in the
                                                                                                                                          community ln which the facility is situated
    Indicate the number of jobs to be retained or created as a result of rehabilitating the facility, including expected construction employment _ _
i
                                                                                 D
:Each )'f'ar, tho Stale Treasurer may approve 25 additio~al reductions of hall the school operating and state educaHon taxes for a psriod not to e~cead six years. CMeck the
ltollov.,.,g box of you w•sh to be considered for thos axdus•on.



APPLICANT'S CERTIFICATION
The undersigned, au\horiz:ed officer of the company making this application certifies that, to the best of his/her knowledge, no information contained
herein or in the attachments hereto is false in any way and that all of the information is truly descriptive of the property for which this application is being
submitted. Further, the undersigned is aware that. if any statement or information provided is untrue, the exemption provided by P.A. 146 of 2000 may
be In jeopardy.
The applicant certifies that this application relates to a rehabilitation program that, when completed, constitutes a rehabilitated facility, as
defined by P.A. 146 of 2000 and that the rehabilitation of the facility would not be undertaken without the applicant's receipt of the exemption
certificate.                                                                                                                                    '
tt is further certified that the undersigned is familiar with the provisions of P.A. 146 of 2000, of the Michigan Compiled Laws; and to the best of his/her
knowledge and belief, (s)he has complied or will be able to comply with all of the requirements themof which am prerequisite to the approval of the
application by the local unit of government and the issuance of an Obsolete Property Rehabilitation Exemption Certificate by the State Tax Commission.

Nam( ~~ ~-fl~{/ O~iceto·~~thorized agents)                            ITelephone l)l~.>mber        ~ _                                Fax Number-·
       (,'           (.,..,(      . / )!(                                     2/o I· 7!.Z 3rt(                                   .          .            I~~·           7?J' 3(C(i
MaollllQ Address
                                                          {                                                                                                                  1f f.!C1•t k..
                                                                            ll?tr~K'ra,, ;)}; 1/iJ,_
                  /}2 ,,
                                                      I

Sogna!ure (
             '~ 1
              'i
                                    I

                                  ta~
                                                                                                                                      Title
                                                                                                                                                  v j,,
                                                                                                                                                   I      )
                                                                                                                                                                  ('
                                                                                                                                                                  ·>


LOCAL GelVERNMENT UNIT CLERK CERTIFICATION
Clerll must also complete Parts 1, 2 and 4 on Page 2. Part 3 to be completed by the assessor.
S•gnature                                                                 ___c____________>=o-,,c,-,,-,clic-,ctio-,-,-,,-,c,,-,,c------------------,




                                                                        FOR STATE TAX COMMISSIOiilliSE''!''''''" '' ''                                        '·''' .
~-N_'_m_b_•·--------------------------------cc----LD_'_''_"_'_''_"_'_'________________________________________"
Form 3674, Page 2

LOCAL GOVERNMENT ACTION
This section is to be completed by the dark of the local governing unit before submitting the application to the State Tax Commission. Include a copy of
the resolution which approves the application. All ser.lions must be completed in order to process.

PART 1: ACTION TAKEN
    Action Dale: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

 D         Exemption Approved for _ _ _ _ Years, ending December 30, _ _ _ _ _ (not to exceed 12 years)

 Ooenied

PART 2: RESOLUTIONS {the following statements must be Included In resolutions approving)

 A statement that the local unit is   a Qualified Local Governmental Uni!          A statement that the application Is for obsolete" property as defined in
                                                                                   secUon 2(h) of Public Act 146 of 2000,
 A statement that the Obsolete Property Rehabilitation District was legally
 established including the date established and the date of hearing as             A statement that the commencement of the rehabilitation of the facility
 provided by section 3 of P.A. 146 of 2000.                                        did not occur before the establishment of the Obsolete Property
                                                                                   Rehab!lltatlon Dl.s.tricl
! A statement indicating whether the taxable value of the property proposed       A statement that th6 application relates to a rehabilitation program that
· to be e~empt plus the aggregate taxable value of property already exempt
                                                                                  when completed constitutes a rahabilitated facility within the meaning of
  under P .A. 146 o12000 and under P.A 198 of 1974 (1FT's) exceeds 5% of
                                                                                  P.A. 146 of 2000 and that Is situated within an Obsolete Property
  the total taxable value of the unit
                                                                                  Rehablll\aUon District establ!shed in a Qualified Local Governmental Unit
 A statement of the factors, criteria and objectives, if any, necessary for       elig.ible under P.A. 146 of 2000 to establish such a district.
 extending the exemption, when the certificate is for lass than 12 years.
                                                                                  A statement that compleUon~of the reh,abllltated facmty is calculated to,
 A statement that the application was approved at a publlc hearing as             and >M!I at the time of Issuance of the certificate, have the reasonable
 provided by section 4{2) of P.A 146 of 2000 including the date of the            likelihood to, Increase commercial activity, create employment. retain
 hearing.                                                                         employment, prevent a loss of employment, revitalize urban areas, or
 A statement that tt1e applicant Is not delinquent in any ta~es related to the    increase the number of residents in the coinmunity In which the facility is
 facility.                                                                        situated. The slatement should indicate which of these the rehabilitation
 If it exceeds 5% {see above), a statement that exceeding 5% '1-iill not have     is likely to result in.
 the effect of substantiat1y impeding the operation of the Qualified Local        A statement that the   rehabilitation Includes Improvements aggregating
 Governmental Unit or of impairing the finane1"al soundness of an affected        10% or more of the true cash value of the property at commencement of
 ta~ing unit.                                                                     the rehabilitation as provided by section 2{1) of P.A. 146 of2000.
 A statement that   an of the items described on line 9 under "Instructions"
                                                                                   A statement of the period of time authorized by the Qualilled Loca
 {a) through {I) of the Application for Obsolete Property Rehabilitation
                                                                                   Governmental Unit for complelion of lhe rehabilitation.

IExemption Certificate have been provided to the Qualified Local
 Governmental Un\1 by the applicant.

PART 3: ASSESSOR RECOMMENDATIONS
Current Taxable Value and State Equalized Value of obsolete properties
                                                  Taxable Value                   State Equalized Value (SEV)
    Land

    Buildings

    Buildings on Leased Land

    Other Personal Property

    Prior Year Values

Name of Local Government Body                                                    Date o! Action on app\icatiofl



PART 4: CLERK CERTIFICATION
The undersigned clark certiffes lhaL to the best of his/her knowledge, no information contained herein or In the attachments hereto is false in any way
Further the undersigned is aware !hal if any information provided is untrue tile exemption provided by P A 146 of 2000 may be in jeopardy
Name of Clerk                                         Clerk Signature                                         Date



Clerk's Mailmg Address                                City                                                    State                 !ZIP Code


                                                      Telephone Number                   !Fa~ Number                       J~mail Address

Mall completed application and attachments to: State Tax Comm1ss1on
                                               Michigan Department of Treasury                        If you have any quesUons, catl (517) 373-3272.
                                               P.O. Box 30471
                                               Lansing, Michigan 489og-7971
APPLICATION FOR OBSOLETE PROPERTY REHABILITATION EXEMPTION
CERTIFICATE

APPLICANT: WITT BUICK INC.
LOCATION: 67 W WESTERN AVE., MUSKEGON, MI 49442
PHONE: 231-722-3771

DESCRJPTION OF OBSOLETE PROPERTY:
The original building was constructed about 1912 by the Witt family as an automobile sales and
repair facility. The facility is still being used as a franchised automobile facility by the Witt
family. The facility has been improved upon over the years. The most recent improvement was
to add on a customer waiting area, completed in 1995. The building is mostly one story with a
couple areas having 2 stories. The square footage of this facility is 23,914.

PROPOSED USE OF THE REHABILITATED FACILITY:
The facility will remain as a franchised automobile facility to sale and service automobiles.

DESIRED REHABILITATION TO BE DONE:
During the process of changing the Western Avenue and Spring Street road bed, the sidewalk
and access to the Western Avenue entrance no longer exists. The construction of Shoreline
Drive, soon to become Business 31, has changed the focus of our signage.
The area of initial rehabilitation will be to landscape an area for access to our Western Avenue
entrance and to allow for a display ofvehicles. This will include adding sidewalk, display pad
and landscaping.
The fact that all signage was focused on Clay A venue because Western Avenue was not a well
traveled road, we will need to change the signage. We need to let people driving on Shoreline
Drive know what we are. Many Muskegon people have no idea where Witt Buick is located.
The signage needs to be relocated for Shoreline Drive and Western Avenue visibility.
With the exposure we will gain from Shoreline Drive traffic, I will need to plan for additional
hoists for repair of automoblies.

FIXED EQUIPMENT:
The following will be added permanently to our facility.
I- Sidewalk to Western Avenue entrance.
2- Display pad for automobiles.
3 -Removal of some on the signage and adding additional signage to take advantage of the
Shoreline Drive exposure. This will include removal of current awnings and adding awnings that
more closely achieve the image GM is now requesting from dealers.
4- The addition of two or possibly 4 hoists.
5 - The possible addition of a restroom that will be handicap assessable.
6- The addition of energy efficient cooling/heat pump/furnace for the main show room and
office area.

TIME SCHEDULE FOR COMPLETION:
I plan to begin as quickly as possible. Due to inclement weather, the completion will be in the
spring/summer of2007.
                  AGENDA ITEM NO . _ _ _ __
              CITY COMMISSION MEETING_ _ _ __


TO:               HONORABLE MAYOR AND CITY COMMISSIONERS

FROM:             Kenneth D. Grant, Income Tax Administrator

DATE:             October 5, 2006

RE:               Donation program for 2006 Individual Income Tax Returns


SUMMARY OF REOUEST:
Approval to designate donations from the 2006 income tax returns towards the upkeep of
the Dog Park or the Muskegon's Smith Ryerson Recreational Center. Income tax refunds
voluntarily donated from taxpayers will go to either the Dog Park or the Recreational
Center.

FINANCIAL IMPACT:
The average amount collected each year is $2,000.00.

BUDGET ACTION REQUIRED:
None

STAFF RECOMMENDATION:
Approval recommended

COMMITTTEE RECOMMENDATION:
                                                      Muskegon Recreational Center
                                                      550 Wood St.
                                                      Muskegon, MI 49442
                                                      Phone: 2311 744 0071
October 11, 2006

City of Muskegon Commission
933 Terrace St.
Muskegon, MI 49443

Dear Commission,

Enclosed is some information about Muskegon Recreational Center (MRC) regarding our
request to be placed on the City income tax return for donation consideration. MRC is a
non-profit corporation registered with the State of Michigan. Our 501 C 3 designation
from the IRS is expected in early 2007. MRC has a contract with the City of Muskegon
to manage the city owned Smith Ryerson Community Center. MRC offers athletic,
recreational and educational programming. Our contract to manage Smith Ryerson was
effective 10/4/06. The Smith Ryerson building has been in long need of a face lift and
MRC has taken on that responsibility. In summer 2006, exterior painting and
maintenance was completed. The interior will be completed in October 2006. These
improvements include painting of the banquet room, removing years of dirt build up on
all floors, re-waxing, and the replacement of ceiling tiles and window coverings. We
have a Spring 2007 goal oflandscaping the entire perimeter of the building including
bringing in top soil, adding irrigation, complete sodding and providing new planting of
flowers, bushes and shrubs. Specific to our programming, we have purchased equipment
and offer a top notch boxing training facility. Our Educational Resource Room will be
completed in Nov. 2006 and the internet is provided to our participants. Approximately
$1,500.00 is being spent on completion of the Educational Resource Room. MRC needs
to purchase a variety of games for the game room including an air hockey table valued at
approximately $1 ,800.00. MRC has twenty currently enrolled participants in the boxing
program. We anticipate 25 participants per night once the game room and ER room are
completed. Our target age is youth and young persons 14-24 years of age.

MRC will be initiating its New Experience Program in spring/summer 2007. We will be
taking our participants on field trips and our focus will be activities that they have never
experienced. This program will be costly based on our level of participation and the
types of activities involved that include charter boat fishing, golfing, horseback riding
and others. MRC has entered into a agreement with Webster House Outreach who will
pay MRC rent for the building and offer their program in the Smith Ryerson center.
Webster House started moving items in October 2006 and will officially be a tenant on
December 1, 2006.
Our motto at MRC is "helping youth become successful citizens" and hopefully you will
find our organization one worthy of being placed on the 2006 City income tax return. I
can be reached at the Muskegon Police Department at phone 724 6762 with questions.



                                                  Sincerely,

                                                  Matt Kolkema
                                                  President, MRC


cc: Ken Grant- Income Tax Director
October 16, 2006


Mayor and City Commissioners;

Re: Dog Beach Request


During this past summer the numerous articles and commission
appearances of visitors and citizens it became very apparent that the
City of Muskegon's Dog Beach located at Kruse Park has become a major
tourist attraction and destination point. The controversy that resulted
put into motion an education program by our summer Park Rangers. It
was found that many dog park users did not know they were required to
pick up after their animals nor did they know that a fine could be given.
In addition more excrement removal devices (doggy mittens) were used
than in previous years. The City parks crew dispensed over $600 worth
of doggy mittens in 2006. Because of expected additional usage we
estimate that our future needs will be about $1000 per year.

As a result of customer comments we need to revise our current signage
to make it clearer to park users what is expected of them. It is our
intention to revise the existing signage and not to add additional signage
if at all possible.

It is also desired to publish a pamphlet for animals within our park
system, the rules and regulations as set forth in our ordinance. This
pamphlet could be distributed at the Animal Shelter when people come
to register their animals as well as at the Dog Beach. We are also
hopeful that citizens who enjoy these facilities will consider giving a
donation to their upkeep.

The City of Muskegon Parks Department is offering the suggestion that
the City Commission consider designating the Kruse Park Dog Beach as
the recipient of any donated refunds in the upcoming taxable year.

Thank You;
1(o/grf Ktthl? PE
Director of Public Works (and Parks)
                              Commission Meeting Date: October 24, 2006



Date:                 October 16, 2006
To:                   Honorable Mayor and City Commissioners
From:                 Planning & Economic Development                              Uc
RE:                   Request to construct improvements in Rights of way and
                      Maintenance Agreement with Witt Buick



SUMMARY OF REQUEST:

Witt Buick, 67 W. Western Avenue, Muskegon, Ml 49442, has requested to be allowed to
construct certain irnprovernents on the City rights-of-way at the locations on the attached
rnap.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None



STAFF RECOMMENDATION:

Staff recornrnends approval of the attached maintenance agreement, allowing Witt Buick to
construct irnprovernents on the City rights of way.



COMMITTEE RECOMMENDATION:

None.




C:\Documents and Settings\fitzpaaj\Desktop\Witt Buick maintenance agreement. DOC
                                                                                              2006-89(b)


                                                 Maintenance Agreement
       This Agreement is made October 24, 2006 ("Effective Date"), by and between the City of
Muskegon ("City"), of933 Ten·ace Street, Muskegon, Michigan 49440, and Witt Buick ("Company") of
67 W. Westem, Muskegon, Michigan, 49442.

                                                              Background

        A. "City" is the owner of the rights of way located ncar 67 W. Western as illustrated on the
attached map. ("Property").

         B. The pm1ies wish to enter into an agreement regarding the installation and maintenance of
certain improvements located at the Propet1y.

        C. Company has agreed to pcrfonn the installation and physical maintenance of the garden at the
Property pursuant to the tenns set fotih in this maintenance agreement.

           Therefore, the parties agree as follows:

          1. General Agreement. Company agrees, at the sole cost of the Company, to perfmm the
installation and physical maintenance of the Property.

         2. Site Design. Company shall submit a design for the Property, and receive approval from the
City, prior to installation. City agrees not to umeasonably withhold its approval of the design. Any
necessary permits or variances (fencing, lighting, electrical, plumbing, etc.) are the responsibility of the
Company and not the City and must be obtained prior to perfonning any work.

        3. Maintenance. Company shall be responsible for the physical installation and continuing
maintenance of the Property, including i) mowing, trimming, weed control and any other routine
maintenance of the grass, trees, shrubs imd plantings at the Property, and ii) trash and litter removal from
the Property.

        4. Utilities/Removal of Improvements. Company is aware that various utilities are located in
the areas where improvements are proposed. Company is aware that removal of improvements may be
necessary to access utilities for maintenance and repair. City shall not be liable for any damages to the
improvements resulting fi·om removal of improvements for utility repair/ maintenance.

        5. Term. This maintenance agreement shall continue in effect until tenninated by either party.
Upon tennination, Company waives any claim against City for installation or maintenance of any item on
the Property.

        6. Insurance. Should the Company place any items that are to remain on the propet1y for an
extended period of time, the Company must purchase liability insurance and provide proof of the
insurance to the City.

         7. Hold Harmless. Company shall indemnify, defend and save City hannless from and against
any and all claims, actions, damages, liability and expense in connection with the loss of life, personal
injmy or damage to property arising from any occurrence in or about the Propct1y or from the occupancy
or use by Company of the Propet1y or any part thereof or resulting in whole or pm1 from any act or
omission of Company, its employees, invitees, licensees, contractors or agents. City shall not be liable
for any injury to the person or propet1y of Company or any other persons on the Property resulting from
the criminal or negligent acts of third persons occurring on or nearby the Property.

                                             [Signatures appear on following page]
C:\Documents and Settings\fitzpaaj\Desktop\Witt Buick maintenance agreement. DOC
                                                                                                 ol ~ clOO~

                                                                      By     cZcmd.a           ~
                                                                      Name:        Linda Potter,
                                                                      Title:       Acting City Clerk
                                                                      Date:        Oc f aber     o2s;




C:\Documents and Settings\fitzpaaj\Desktop\Witt Buick maintenance agreement. DOC
                     .:.c::
                     ·-u

                                 /
                       Ill
                     ~
                      Ill
                     .....s:::                             w
                                                           :::::
                      Ql                                   0::
                      E
                      Ql
                                                           0
                                                           w
                                                           z
                      >
                      e
                      a.
                                                           -'
                                                           w
                                                           0::
                                                           0
                      E                                    I
                                                           0)

                     "0
                      Ql
                      Ill
                      0
                      a.
                      ...
                      0
                     a..

                                                                                   I

C:\Documents and Settings\fitzpaaj\Desktop\Witt Buick maintenance agreement. DOC
                       AGENDA ITEM N O . - - - - - - - -

             CITY COMMISSION M E E T I N G - - - - - - - - - -


TO:         Honorable Mayor and City Commissioners

FROM:       Bryon L. Mazade, City Manager

DATE:       October 16, 2006

RE:         Harbour Towne Dockominium



SUMMARY OF REQUEST:
To approve an agreement with Harbour Towne Commercial Development and Harbour
Towne Marina Association to complete a development component of the Harbour Towne
Condominium project.



FINANCIAL IMPACT:
$3,000.




BUDGET ACTION REQUIRED:
None.




STAFF RECOMMENDATION:
To approve the attached agreement.




COMMITTEE RECOMMENDATION:
None.




pb\0\AGENDA- HARBOUR TOWNE DOCKOMINIUM 101606
                                             PARMENTER O'TOOLE
                                                                 Attomeys at Law
                                                                                                              Thomas H Thornhill
John M Bnggs, !11
Michael L. Rolf                                                                                               Scott R. Sew1ck
                                         601 Terrace Street • P.O. Box 786 .. Muskegon, Michigan 49443-0786
George W. Johnson                                                                                             Jeffery A Jacobson
W_ Brad Groom                                  Phone 231.722.1621 ., Fax 231.722.7866 or 231.728.2206
                                                                                                              Dawn M_ Goodwm
Enc R. G1elow                                                   \'>'Ww.Permenteriaw com                       Nancy Ann Hornacek
John C. Schner                                                                                                Adam G Zuweflnk
Chnslopher L Kelly
Linda S. Kaare
James R Scheuerle
                                                                                       RECEIVED               Douglas J Winkle


William J. Meier                                                                                              Oj("mm.wl
Keith L McEvoy
Anna Urick Duggins
Scott M. Knowlton
                                                                                        OCT 1 0 2006          Thomas J O'Toole
                                                                                                              Eric J. Fauri
                                                                                                              Michael M Knowlton

                                                                                           MUSKEGON           George A Parmenter, 1903-1993

                                                                                     G/TY MANAGER'S OFFICE

     October 10, 2006



     Bryon Mazade
     City Manager
     City of Muskegon
     933 Terrace Street
     Muskegon, Michigan 49440


     Re:         Harbour Towne Dockominium


     Dear Mr. Mazade:

     Enclosed please find a proposed Agreement between the City of Muskegon, Harbour Towne
     Commercial Development, Inc., and Harbour Towne Marina Association.

    Pursuant to several 1994 agreements between the above-referenced parties, Harbour Towne
    Commercial Development, Inc. had an obligation to construct a parking lot and a bathhouse.
    Until the parking lot and bathhouse were constructed, Transamerica Title n/k/a LandAmerica
    Transnation Title was to escrow $500 from the sale of each dock in order to assure completion.
    Both were constructed, but not to the specifications included in the Agreements.

    Subject to City Commission approval, the parties have agreed as follows:

     I)         The patiies agree that the constructed parking lot and bathhouse are acceptable; and

    2)          The $6,000 held by LandAmerica shall be split evenly between the City of Muskegon
                and Harbour Towne Marina Association.

    If the City Commission approves the attached Agreement and Discharge of Mortgage, please do
    the following:

     I)         Three original Agreements should be executed and returned to me for circulation; and




    G:\EDSI\FILES\001 00\087201 \l TR\03 7529. DOC
2)       One Discharge of Mortgage should be executed and returned to me. Upon receipt of a
         fully executed Agreement, I will then record the Discharge of Mortgage.

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

Very truly yours,


Jt-IL.K             (I_ /jd/rLi'~l{
John C. Schrier
Phone: (231) 722-5401
Fax: (231) 728-2206
E-mail: jcs@parmenterlaw.com

Enclosure




G:\EOSI\FILES\00 100\087201 \L TR\D37529.DOC
                                                                                        2006-89(c)
.'



                                                      AGREEMENT

              This Agreement is effective on October       24 , 2006, between the City of Muskegon,
      a Michigan municipal corporation (the "City"), Harbour Towne Commercial Development,
      Inc., a Michigan corporation ("Developer"), and the Harbour Towne Marina Association,
      Inc., a Michigan non-profit corporation ("Association").

                                                      Background

              A.      The City, the Developer and Association entered into a number of agreements
      relating to the purchase of 49 dockominiums located at Harbour Towne Marina Condominiums
      ("Property"), dated June 24, 1994.

            B.     Pursuant to paragraph 4.2 of an Agreement between Developer and City, the
     Developer was to escrow $500 from each dockominium closing with Transamerica Title n/k/a
     LandAmerica Transnation Title ("LandAmerica") to secure the completion of a parking lot and
     bathhouse on an easement located on the Association property and to be used by Association
     members.

             C.      The parking lot and bathhouse have been built by Developer, but were not built to
     specifications agreed to by the City pursuant to paragraph 4.2 of the Agreement. The City
     desires to waive the specification requirement for the parking lot and bathhouse pursuant to the
     te1ms of this Agreement.

             D.      LandAmerica is holding $6,000 in escrow ("Escrowed Funds"), and the parties
     desire to enter into this Agreement to provide for the disbursement of the escrowed funds.

               Therefore, the parties agree as follows:

             I. Waiver of City Approval; Discharge of Mortgage. The Developer agrees to
     release the Escrowed Funds to the City and the Association in accordance with this Agreement,
     in exchange for which the City and Association agree to waive their rights to approve
     construction of the parking lot and bathhouse under paragraph 4.2 of the Purchase Agreement.
     City shall execute the discharge of mortgage attached as Exhibit A.

             2. Return of Earnest Money. Upon execution of this Agreement, the parties agree that
     the earnest money paid by the Developer to LandAmerica in connection with the Purchase
     Agreement shall be distributed by LandAmerica in equal amounts to the City and the
     Association.

            3. Mutual Release of Claims. Effective upon the execution of this Agreement, the City
     Developer and Association hereby fully and unconditionally release and discharge each other
     from any and all obligations relating to the construction of the parking lot and bathhouse under
     the Agreements executed on or about June 24, 1994.



     G 'lEOS !IF! LES\00 I 00108720 JIAGID26660.DOC
        The parties have executed this Agreement on the date written below their name, to be
effective as of the date first written above.


Harbour Towne Commercial                            City of Muskegon
Development, Inc.

By: _____________________
Name: Richard B. Anderson
Title: President
Date:


Harbour Towne Marina Association, Inc.             Attest:

By: ______________________
Name: Bernard deWit                                Name: Linda ~ . Potter
Title: President                                   Title: Acting City Clerk
Date:                                              Date:    1/-t! -o t




G:\EDSIIFILES\00 I00\08720 I\AG\026660. DOC
                                                      Exhibit A
                                                Discharge of Mortgage




G :lEOS 1\FILES\00 I 00\08720 IIAGID26660.DOC
                                     DISCHARGE OF MORTGAGE

THE MORTGAGE between Harbour Towne Commercial Development, Inc., as mortgagor, and the City of
Muskegon, as mortgagee, recorded on August 24, 1994 in Liber 1789, Pages 783-785, Muskegon County
Records is fully discharged.



This instrument is dated this _ _ _ day of October, 2006.




STATE OF MICHIGAN
COUN1Y OF MUSKEGON

        The foregoing instrument was acknowledged before me this Cj'tr, day of D tl\l-!C~))."
2006, by STEPHEN J. WARMINGTON and LINDA POTIER, the Mayor and Acting Clerk, respectively, of
the CITY OF MUSKEGON, a municipal corporation, on behalf of the City.

                                                 -if1~~. K'tav~s L-
                                                   (;f\ctl VY\ l<'ru K&w

Top of Page