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CITY OF MUSKEGON
CITY COMMISSION MEETING
FEBRUARY 22, 2022 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS, AWARDS, AND PRESENTATIONS:
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Sale – 760 Leonard Economic Development
C. Peck Street – Change Order #006 Public Works
D. Western Avenue Fifth to Third Parking Lane Improvements – Contract
Award Public Works
E. Hartshorn Marina Village Brownfield Repayment City Manager
F. Deficit Elimination Plan – BRA – Hartshorn Village (combined) Finance
G. Development Agreement Williams Construction Development
Services/Economic Development
H. Development Agreement LRS Enterprises Development
Services/Economic Development
I. Development Agreement Kramer Builders Development
Services/Economic Development
J. Amendment to Community enCompass Infill Housing Agreement (EACH
Program) Development Services/Economic Development
K. Request for Water Utility Connection Fee Waiver Development
Services/Economic Development
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L. Precinct Boundary Changes City Clerk
M. Unmarked Police Vehicle Lease Plan Public Safety
□ PUBLIC HEARINGS:
□ UNFINISHED BUSINESS:
A. Amendment to the Marihuana Facilities Overlay District – 1314 E Apple
Avenue – 2nd Reading Planning
□ NEW BUSINESS:
A. HBA Demolitions Public Safety
2123 Henry
507 E Apple
743 Amity
867 Scott
B. Interim City Manager City Manager
□ ANY OTHER BUSINESS:
□ PUBLIC COMMENT ON NON-AGENDA ITEMS:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
Page 2 of 2
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the January 25, 2022 Regular Meeting.
Detailed Summary: N/A
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve the minutes.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
CITY COMMISSION MEETING
JANUARY 25, 2022 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
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, January 25, 2022.
Reverend Eileen B. Stoffan, St. Paul’s Episcopal Church, opened the meeting
with prayer, after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners Eric
Hood, Teresa Emory, Rachel Gorman, and Rebecca St.Clair, City Manager
Franklin Peterson, City Attorney John Schrier, and City Clerk Ann Marie Meisch.
Absent: Commissioner Michael Ramsey
PUBLIC COMMENT ON AGENDA ITEMS: No comments were received.
2022-06 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the December 13, 2021
Worksession Meeting and the January 4, 2022 Organizational Meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. Non-Profit Recognition for Breakthrough Believers Recovery and Healing
Center City Clerk
SUMMARY OF REQUEST: Breakthrough Believers Recovery and Healing Center is
requesting recognition as a non-profit in the City of Muskegon for the purpose of
obtaining charitable gaming licenses for raffles to raise money for various
underserved community needs.
STAFF RECOMMENDATION: To approve the request from Breakthrough
Believers Recovery and Healing Center to be recognized as a non-profit
operating in the City for the purpose of obtaining a charitable gaming license.
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C. Chamber of Commerce Proposal City Manager’s Office
SUMMARY OF REQUEST: Staff is requesting approval of a partnership and
funding agreement with the Muskegon Lakeshore Chamber of Commerce.
The Chamber continues to partner with the city to promote our community and
support our local businesses. They have been instrumental in attracting cruise
ships, improving our public image, administering the Silent Observer program,
and bolstering our business community. The proposal includes funding allocation
and benefits to the city in the areas of event and program sponsorship,
membership, Silent Observer promotion, and community promotion activities.
The city currently pays $16,000 annually for various Chamber services,
membership, and events, and those funds come from various budgets. The
amount requested will require adjustments in the 2nd quarter reforecast.
AMOUNT REQUESTED: $20,000 AMOUNT BUDGETED: $16,000
FUND OR ACCOUNT: 80400, 10101
STAFF RECOMMENDATION: To approve the partnership and funding
agreement with the Muskegon Lakeshore Chamber of Commerce.
D. MDOC Utility Easements Public Works
SUMMARY OF REQUEST: Staff is seeking approval to purchase utility easements
from the State of Michigan Department of Corrections.
Staff is pursuing several utility easements from the state of Michigan to provide
utility service to the former prison site. The utilities easements cross through a 100
FT strip of property that was retained by the State of Michigan during the land
transaction. The city is requesting and the state has issued preliminary approval
for five (5) utility easements across this 100 FT strip of property.
The cost of the easements is determined by the state to be $1,750.00 which
would be paid from the remaining funds in the State Grant Fund dedicated to
this project.
AMOUNT REQUESTED: $1,750.00 AMOUNT BUDGETED: $1,750.00
FUND OR ACCOUNT: 482-91908-5700
STAFF RECOMMENDATION: Authorize staff to issue payment in the amount
noted and sign the agreement, inclusive of any immaterial revisions that are
noted during the final state reviews.
E. Mini-Excavator Purchase Public Works
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one Mini-Excavator from Michigan CAT, the Mi-Deal State contract
holder. The cost for the Mini-Excavator will be $84,975.00 coming from the
Equipment Fund.
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This equipment is expected to compliment a smaller mini-excavator that already
exist within the equipment fleet. This particular piece of equipment is larger than
our existing mini-excavator, yet still substantially smaller than other equipment
that could be used for similar functions (tractor backhoe) and will provide much
needed versatility to the fleet.
AMOUNT REQUESTED: $84,975.00 AMOUNT BUDGETED: $85,000
FUND OR ACCOUNT: 661-60932-5700
STAFF RECOMMENDATION: Authorize staff to move forward with the
purchase of a Mini-Excavator through the Mi-Deal State Contract.
F. Traffic Control Order Public Works
SUMMARY OF REQUEST: Staff is requesting approval of Traffic control order 2022-
001, to add a stop sign on Clay at Pine, converting the intersection to an all-way
Stop. Traffic Control Order #2022-001 includes addition of stop signs on Clay at
Pine Street converting this intersection into an all-way stop. The site was
reviewed for sight distance for NW bound Pine Street obstructions.
STAFF RECOMMENDATION: To approve traffic control orders #2022-001 and
authorize staff to make the necessary signing changes.
G. Engine 24 Repairs Public Safety
SUMMARY OF REQUEST: Final repair estimate to rebuild the motor in Engine 24
(2015). This is a front-line Engine (24) and has already been down for weeks while
they diagnosed, etc. The concern is running our only Reserve truck (21) weeks
on end, and running the new 41 in the dead of winter.
AMOUNT REQUESTED: $39,493.73 AMOUNT BUDGETED: $0
STAFF RECOMMENDATION: Approval of the amount for repair to Engine 24.
H. Deficit Elimination Plan – Sewer Finance
SUMMARY OF REQUEST: To approve the Deficit Elimination plan and resolution
for the Sewer Fund and direct staff to submit plan to the State of Michigan.
On June 30, 2021 the Sewer Fund had a $1,222,053 deficit unrestricted net
position. Act 275 of Public Acts of 1980 requires the City to formulate a deficit
elimination plan and submit it to the Michigan Department of Treasury. The
deficit elimination plan and resolution for the Sewer Fund are provided.
STAFF RECOMMENDATION: To approve the deficit elimination resolution for
the Sewer Fund.
I. Deficit Elimination Plan – Public Improvement Finance
SUMMARY OF REQUEST: To approve the Deficit Elimination plan and resolution
for the Public Improvement Fund and direct staff to submit plan to the State of
Michigan.
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On June 30, 2021 the Public Improvement fund had a $1,026,966 deficit. Act 275
of Public Acts of 1980 requires the City to formulate a deficit elimination plan
and submit it to the Michigan Department of Treasury. The deficit elimination
plan and resolution for the Public Improvement Fund are provided.
STAFF RECOMMENDATION: To approve the deficit elimination resolution for
the Public Improvement Fund.
J. Deficit Elimination Plan – Marina Finance
SUMMARY OF REQUEST: To approve the Deficit Elimination plan and resolution
for the Marina Fund and direct staff to submit plan to the State of Michigan.
On June 30, 2021 the Marina Fund had a $146,718 deficit. Act 275 of Public Act
of 1980 requires the City to formulate a deficit elimination plan and submit it to
the Michigan Department of Treasury. The deficit elimination plan and resolution
for the Marina are provided.
STAFF RECOMMENDATION: To approve the deficit elimination resolution for
the Marina Fund.
L. Community Relations Committee Recommendations City Clerk
SUMMARY OF REQUEST: To concur with the CRC Recommendations to accept
resignations, make appointments, and amend the composition of the DDA.
The CRC recommends:
- Accepting the resignation of and Randy Mackie – Housing Code Board of
Appeals – Term Expires 1/31/2024.
- Appointing the following citizens to each of the stated boards:
o Board of Review – Reappoint David Mendendorp & Martha
Bottomley (Citizens)
o Business Improvement District – Reappoint Dan Castle & John
Riegler; Appoint Kiel Reid (Assessed property owners or their
representatives)
o Citizen’s Police Review Board – Reappoint Josie James (Member of
a minority-based organization) & Ruby Clark (Neighborhood
association representative)
o Citizen’s District Council – Appoint Bre’Onna Sanders (Citizen At-
Large)
o Construction Code Board of Appeals – Reappoint Brion Boucher
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(Architect) & Michael McPhall (Fire)
o Downtown Development Authority – Reappoint Heidi Sytsema
(Member with interest in the property in the district), Jeanette
Moore (Citizen) & John Rielger (Resident of the district)
o Election Commission – Reappoint Wanda Matsey (Citizen)
o Equal Opportunity Committee – Reappoint Charlotte Johnson,
Tonya Pell & Ana Zuber (At-Large Citizens)
o Farmers Market Advisory Board – Appoint Jeanine Platt (Citizen At-
Large)
o Historic District Commission – Reappoint Emilio Trejo (Member who
resides or has occupational or financial interest in one or more of
the historic districts); appoint Jacquelyn Huss (Member of a local
preservation society)
o Housing Code Board of Appeals – Appoint Jordan Potter and Corey
Bickford (Citizens)
o Housing Commission – Reappoint Jonathon Wilson (Citizens)
o Income Tax Board of Review – Reappoint Michael Haueisen
(Resident)
o Lakeside Business Improvement District – Appoint Andrea
Chambers (Assessed property owner or their representative)
o Local Development Finance Authority – Reappoint Jeffrey Burr;
Appoint Patsy Petty (Citizens)
o Local Officer’s Compensation Commission – Reappoint Paul
Edbrooke (Citizen)
o Zoning Board of Appeals – Appoint Roberta King (Resident)
- Amending the composition of the Downtown Development Authority as
follows:
A 6 Members must have an interest in the property in the district
B 4 Citizens
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C 2 Resident of the district
D 1 City Manager
STAFF RECOMMENDATION: To approve the resignations, appointments and
reappointments, and amendments to the composition of the DDA.
M. DDA/BRA Resignation City Clerk
SUMMARY OF REQUEST: To accept the resignation of Don Kalisz from the
Downtown Development Authority/Brownfield Redevelopment Board, effective
immediately. Term expires 1/31/2025
STAFF RECOMMENDATION: To approve the resignation.
Motion by Commissioner Gorman, second by Commissioner Emory, to accept
the consent agenda as presented, minus item K.
ROLL VOTE: Ayes: Gorman, Emory, St.Clair, Johnson, Hood, and German
Nays: None
MOTION PASSES
2022-07 REMOVED FROM CONSENT AGENDA:
K. Deficit Elimination Plan – Convention Center Finance
SUMMARY OF REQUEST: To approve the Deficit Elimination plan and resolution
for the Convention Center Fund and direct staff to submit plan to the State of
Michigan.
On June 30, 2021 the Convention Center Fund had a $1,892,438 deficit. Act 275
of Public Acts of 1980 requires the City to formulate a deficit elimination plan
and submit it to the Michigan Department of Treasury. The deficit elimination
plan and resolution for the Convention Center Fund are provided. The City has
received a $1,000,000 Grant to help with the negative impact of Covid-19. The
City will transfer $2,668,933.07 from the General Fund to eliminate the deficit.
STAFF RECOMMENDATION: To approve the deficit elimination resolution for
the Convention Center Fund.
Motion by Vice Mayor German, second by Commissioner Gorman, to approve
the deficit elimination resolution for the Convention Center Fund.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, Hood, German, and Gorman
Nays: None
MOTION PASSES
2022-08 PUBLIC HEARINGS:
A. Parks and Recreation 5-Year Plan Public Works
SUMMARY OF REQUEST: To host a public hearing and adopt a resolution of
Page 6 of 10
adoption relative to the updated City of Muskegon Park and Recreation 5-year
plan.
Staff along with assistance from MCSA, Inc. have prepared an update to the
city’s Parks and Recreation 5-Year Plan. The previous plan from 2016 has expired
and an update was required. The draft update is available for review online at
the link below, and can be viewed in person during normal business hours at the
City of Muskegon DPW Offices (1350 East Keating Avenue, 49442).
https://www.muskegon-mi.gov/community-parks-recreation-plan/
In order to be eligible for state grant funding through the MDNR (and other
sources) a current 5-year plan must be filed with the MDNR no later than
February 1, 2022.
Through hosting of this public hearing, adoption of the enclosed resolution, and
a final update of the plan to reflect any comments received through the public
hearing the City will be in a position to submit the updated plan by the required
deadline.
STAFF RECOMMENDATION: To close the public hearing, approve the 5-year
Parks and Recreation Plan, and authorize the Mayor and Clerk to sign a
resolution in support of the plan.
PUBLIC HEARING COMMENCED: The following comments were received:
Wenda Hannah – 2293 Moon Street – did not see any reference to Charter Park
Ordinance and feels that it should be included and Charter Parks identified.
Tom Weatherby – 1747 Edgewater – concerns about walkway width proposed
for Pere Marquette Park and feels 16 feet is excessive and suggested a study be
done. He also has concerns about striping of the walkway.
Darlene DeHudy – 4356 Lake Harbor Road – concurs with Mr. Weatherby –
recommends following National Standards for determining width of walkway.
Designate in plan which are charter parks and add Critical Dunes Ordinance.
Would like to see a use study which usually precludes an engineering plan or
construction.
Mark Poletti - 3244 Thompson – we don’t know the map of the trail system.
Would like to contribute to planning the pathway. Is concerned about the
amount of traffic and safety issues.
Motion by Commissioner St.Clair, second by Commissioner Hood, to close the
public hearing and approve the 5-year Parks and Recreation Plan and authorize
the Mayor and Clerk to sign a resolution in support of the plan.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, German, Gorman, and Emory
Nays: None
MOTION PASSES
Page 7 of 10
2022-09 NEW BUSINESS:
A. Amendment to the Form Based Code Planning
SUMMARY OF REQUEST: Staff initiated request to amend the Form Based Code,
Urban Residential and Lakeside Residential context areas of the zoning
ordinance to reduce the minimum side setback (at non-street locations)
requirement from six feet to five feet and reduce the side build-to-zone (at side
street) from 10-25 feet to 5-25 feet. The Planning Commission recommended in
favor of the request by a 6-1 vote.
STAFF RECOMMENDATION: To approve the request to amend the Form
Based Code, Urban Residential and Lakeside Residential context areas of the
zoning ordinance to reduce the minimum side setback (at non-street locations)
requirement from six to five feet and reduce the side build-to-zone (at side
street) from 10-25 feet to 5-25 feet.
Motion by Commissioner Gorman, second by Commissioner Hood, to approve
the request to amend the Form Based Code, Urban Residential and Lakeside
Residential context areas of the zoning ordinance to reduce the minimum side
setback (at non-street locations) requirement from six to five feet and reduce
the side build-to-zone (at side street) from 10-25 feet to 5-25 feet.
ROLL VOTE: Ayes: Johnson, Hood, Gorman, and St.Clair
Nays: German and Emory
MOTION PASSES – 2nd READING REQUIRED
B. Mercy Health Arena Floor Scrubber Mercy Health Arena
SUMMARY OF REQUEST: Mercy Health Arena is seeking funding for a new floor
scrubber for Arena concourse, lower level, and locker rooms.
Mercy Health Arena is in desperate need of a new floor scrubber. We have
been using an old one left behind by our previous cleaning contract, but we are
spending time, energy and finances to keep it going as efficiently as we need.
The Arena concourse gets a considerable amount of traffic, as well as the lower
level and locker rooms. With limited resources and labor costs, we believe the
proposed scrubber is necessary as we continue to keep the Arena in its best
condition. Our cleaning regiment has increased substantially because of
COVID, and a new modern machine is required. We are recommending to
purchase the equipment from Pacific Floor Care, as they are located in the city
limits. The machines will be manufactured in the City, and available to us within
just a few days of ordering. We will be seeking partial reimbursement from FEMA,
as their programming provides for reimbursement of COID-19 related
cleaning/sanitizing equipment.
Page 8 of 10
AMOUNT REQUESTED: $21,774.69
FUND OR ACCOUNT: State and Federal Grants
STAFF RECOMMENDATION: To approve the purchase of a floor scrubber from
Pacific Floor Care at a cost not to exceed $21,774.69.
Motion by Commissioner Gorman, second by Commissioner Hood, to approve
the purchase of a floor scrubber from Pacific Floor Care at a cost not to exceed
$21,774.69.
ROLL VOTE: Ayes: Hood, German, Gorman, Emory, St.Clair, and Johnson
Nays: None
MOTION PASSES
C. Sales Agreement 2725 Olthoff City Manager
SUMMARY OF REQUEST: Staff is seeking approval to sell approximately 20 acres
of property at 2725 Olthoff Drive.
The site was originally procured from the Michigan State Land Bank, and
previously housed the West Shoreline Correctional Facility. The property has a
total of 64 acres, and approximately 34 are in the City of Muskegon. Staff seeks
to sell approximately 20 acres of the property within the city limits for the
purpose of redevelopment.
STAFF RECOMMENDATION: Approve the sales agreement and authorize the
Mayor and Clerk to sign.
PUBLIC COMMENTS WERE RECEIVED ON THIS ITEM.
Motion by Commissioner Hood, second by Commissioner Gorman, to approve
the sales agreement and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, Johnson, and Hood
Nays: None
MOTION PASSES
D. Watch Muskegon Marketing City Clerk
SUMMARY OF REQUEST: The Watch Muskegon Committee put out a Request for
Qualifications to put a campaign together to continue with the Watch
Muskegon brand. After reviewing all proposals, the committee determined that
Kindred closely matched the needs of the campaign at this stage.
The City received proposals from Kindred, CMF Marketing, Fine Line, RCP
Productions, and Revel. After reviewing all proposals, the committee felt that
Kindred most closely matched the needs of the campaign at this time.
AMOUNT REQUESTED: Up to $60,000 – The Watch Campaign account will
contribute $20,000, the Public Relations Committee will contribute $20,000. The
Page 9 of 10
rest will be obtained from private donors.
FUND OR ACCOUNT: Public Relations - $20,000
STAFF RECOMMENDATION: To authorize the City Clerk to enter into an
agreement with Kindred for an amount not to exceed $60,000.
Motion by Commissioner Gorman, second by Commissioner Emory, to authorize
the City Clerk to enter into an agreement with Kindred for an amount not to
exceed $60,000.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, Johnson, and Hood
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Mayor Johnson discussed the idea of requesting
alternate bids for different width pathways and the Commission agreed that it
would be a good idea to receive alternate options and information before
making a final decision. Director Evans should seek alternates bids for a 12 ft, 14
ft, and 16 ft width for the proposed pathway at Pere Marquette.
Senator Bumstead was in attendance and updated the Commission on several
different bills that could have a significant impact on the community. The
proposed bills include funding in several areas.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were
received.
ADJOURNMENT: The City Commission meeting adjourned at 7:45 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 10 of 10
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Sale – 760 Leonard
Submitted By: Hope Griffith Department: Economic Development
Brief Summary: City staff is seeking authorization to sell the city-owned home at 760 Leonard in
Jackson Hill to Brittany Alexander.
Detailed Summary: The city is constructing this single family detached home as part of our infill housing
program. Our contract to construct two homes was for $425,000, and the estimated finished costs of this
home will be $215,000. We also anticipated $12,900 in sales commissions. The accepted purchase price is
$206,000, and the incurred sales commissions are $10,000, and sellers’ concession of $6,000. The City will
not contribute funds toward closing costs outside of seller’s concession and agent commission. The
proceeds of this home will repay a portion of the Priority Related Investment made by the Community
Foundation for Muskegon County. The sale of the second home in this project should repay the remainder,
and any additional funds will reimburse the Economic Development Fund for the $75,000 investment in the
project.
Amount Requested: None at this time Amount Budgeted: $0
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Authorize the Code Coordinator to complete the sale of 760 Leonard Street, as
described in the purchase agreement and for the Mayor and Clerk to sign the deed.
Check if the following Departments need to approve the item first:
Police Dept. Fire Dept. IT Dept.
For City Clerk Use Only:
Commission Action:
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 2/22/2022 Title: Peck Street – Change Order #006
Submitted By: Leo Evans Department: DPW
Brief Summary: Staff is requesting approval of Change Order #006 on the Peck Street project as
the overall project has exceeded staff approval levels for change orders.
Detailed Summary:
Change Order #006 represents final balancing of all items on the project and will bring the project to a
close. Change Order #006 requests a net increase to the project of $100,647.98 above the previously
approved requests.
This change order will result in the following final values for the project:
As-Bid Cost = $3,481,438.91
Final Cost = $4,186,417.34
Net Chagne = $704,978.43 (20.2% Increase)
As a note of clarification several of the previously approved change orders were the result of additional
work undertaken at the request of Muskegon Public Schools to facility utility relocations for capital
projects at the High School and Middle School sites. Of the $704,978.43 net increase to the project it
is expected that MPS will reimburse the City $467,454.93 resulting in the true cost increase of the
project really being $237,523.50 (6.8% Increase)
This increase is still slightly above the 6% budgeted contingency on the projects and will require a
slight reforecast adjustment in the future. It should be noted that this project was bundled and bonded
in conjunction with the Amity Avenue project (92009). The Amity Avenue project is nearing final
closeout and is on track to be finalized at or slightly below the as-bid amount resulting in nearly all of
the budgeted 6% contingency from that project being able to cover the slight overrun on Peck Street.
Amount Requested: $100,647.98 Amount Budgeted: $63,090.94
(Remaining Contingency 92010)
Fund(s) or Account(s): 202/590/591-92010 Fund(s) or Account(s): 202/590/591-92010
Recommended Motion:
Authorize staff to approve Change Orders #006 to Project 92010 in the amount of $100,647.98 for
the additional work as noted.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
CHANGE ORDER NO.: 6
Owner: City of Muskegon Owner’s Project No.: 92010
Engineer: Prein&Newhof Engineer’s Project No.: 2190730
Contractor: Kamminga & Roodvoets Contractor’s Project No.:
Project: Street and Utility Improvements - Peck Street: Laketon to Merrill
Date Issued: 2/1/2022 Effective Date of Change Order: 2/1/2022
The Contract is modified as follows upon execution of this Change Order:
Description:
- Add non-eligible irrigation repair item for restoration on Southern Avenue.
- Adjust all item base quantities to reflect final quantities at the completion of the project.
Attachments:
- Contract Modification Summary
- Change Order 6 Pricing
Change in Contract Price Change in Contract Times
Original Contract Price: Original Contract Times:
Substantial Completion: September 2, 2021
$ 3,481,438.91 Ready for final payment: September 17, 2021
Increase from previously approved Change Orders No. 1 to [Increase] [Decrease] from previously approved
No. 5: Change Orders No.1 to No. [Number of previous
Change Order]:
Substantial Completion: 60 days
$ 604,330.45 Ready for final payment: 60 days
Contract Price prior to this Change Order: Contract Times prior to this Change Order:
Substantial Completion: November 1, 2021
$ 4,085,769.36 Ready for final payment: November 15, 2021
Increase this Change Order: Increase this Change Order:
Substantial Completion: N/A
$ 100,647.98 Ready for final payment: 167 days
Contract Price incorporating this Change Order: Contract Times with all approved Change Orders:
Substantial Completion: November 1, 2021
$ 4,186,417.34 Ready for final payment: May 1, 2022
Recommended by Engineer (if required) Accepted by Contractor
By: By:
Title: Project Engineer Title:
Date: Date:
Authorized by Owner Approved by Funding Agency (if applicable)
By: By:
Title: Director of Public Works Title:
Date: Date:
This document is a Modified version of EJCDC® C 941, Change Order.
Copyright© 2018 NSPE, ACEC and ASCE. All rights reserved.
Page 1 of 1
S:\2019\2190730 City of Muskegon\PEC\Change Orders\Change Order 6\change order 6 2022-02-01
Contract Modification
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Prein&Newhof
FieldManager 5.3c
Contract: _2190730, Peck Street
Cont. Mod. Revision Cont. Mod. Electronic Net Change Awarded Contract Amount
Number Number Date File Created
6 3 2/1/2022 No $100,647.96 $3,481,438.91
Route Managing Office District Entered By
PN Muskegon 0 Tyler A DeNooyer
Contract Location
City of Muskegon
Short Description
CO 6
Description of Changes
- Add non-eligible irrigation repair item for restoration on Southern Avenue.
- Adjust all item base quantities to reflect final quantities at the completion of the project.
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Tree, Rem, 6 inch to 8507050 0004 0020 2190730 001 Original -6.000 Ea 395.00000 $-2,370.00
18 inch
_ Tree, Rem, 19 inch 8507050 0005 0025 2190730 001 Original 5.000 Ea 1,150.00000 $5,750.00
to 36 inch
_ Dr Structure, Rem 8507050 0006 0030 2190730 001 Original 7.000 Ea 250.00000 $1,750.00
_ Sewer Rem, Less 8507001 0007 0035 2190730 001 Original -223.500 Ft 7.00000 $-1,564.50
than 24 inch
_ Sewer Rem, 24 inch 8507001 0008 0040 2190730 001 Original -212.000 Ft 10.00000 $-2,120.00
and Greater
_ Sewer, Abandon, 8507001 0009 0045 2190730 001 Original -310.000 Ft 5.00000 $-1,550.00
Less than 20 inch
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 1 of 13
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Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Sewer, Abandon, 20 8507001 0010 0050 2190730 001 Original 173.000 Ft 15.00000 $2,595.00
inch and Greater
_ Curb and Gutter, 8507001 0011 0055 2190730 001 Original -512.200 Ft 3.50000 $-1,792.70
Rem
_ Pavt, Rem 8507011 0012 0060 2190730 001 Original -3,150.550 Syd 5.50000 $-17,328.03
_ HMA Surface, Rem 8507011 0013 0065 2190730 001 Original -1,670.460 Syd 2.50000 $-4,176.15
_ Irrigation Repair 8507060 0015 0075 2190730 001 Original 2.518 Dlr 15,000.00000 $37,770.00
Allowance
Reason: Extra irrigation repair required on Peck Street in excess of allowance
_ Erosion Control, Inlet 8507050 0016 0080 2190730 001 Original -25.000 Ea 170.00000 $-4,250.00
Protection, Fabric
Drop
_ Machine Grading, 8507002 0017 0085 2190730 001 Original 0.990 Sta 2,500.00000 $2,475.00
Modified
_ Aggregate Base, 9 8507011 0018 0090 2190730 001 Original -676.900 Syd 12.00000 $-8,122.80
inch, Modified
_ HMA, 5E1 8507031 0019 0095 2190730 001 Original 16.640 Ton 82.80000 $1,377.79
_ HMA, 4E3 8507031 0020 0100 2190730 001 Original -176.270 Ton 81.98000 $-14,450.61
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 2 of 13
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Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ HMA, 3E3 8507031 0021 0105 2190730 001 Original -133.940 Ton 74.32000 $-9,954.42
_ Driveway, Nonreinf 8507011 0022 0110 2190730 001 Original -48.020 Syd 40.00000 $-1,920.80
Conc, 6 inch
_ Curb and Gutter, 8507001 0023 0115 2190730 001 Original 67.080 Ft 14.00000 $939.12
Conc. Det F4
_ Sidewalk, Conc, 4 8507010 0024 0120 2190730 001 Original -10.000 Sft 3.00000 $-30.00
inch
_ Sidewalk, Conc, 6 8507010 0025 0125 2190730 001 Original 832.830 Sft 4.25000 $3,539.53
inch
_ Sidewalk Ramp, 8507010 0026 0130 2190730 001 Original -53.620 Sft 5.50000 $-294.91
Conc, 6 inch
_ Detectable Warning 8507001 0027 0135 2190730 001 Original -1.550 Ft 48.00000 $-74.40
Surface
_ Turf Restoration 8507002 0028 0140 2190730 001 Original 0.740 Sta 500.00000 $370.00
_ Pavt Mrkg, Polyurea, 8507001 0031 0155 2190730 001 Original -435.000 Ft 0.95000 $-413.25
4 inch, Yellow
_ Pavt Mrkg, Polyurea, 8507001 0032 0160 2190730 001 Original -5,976.250 Ft 0.95000 $-5,677.44
4 inch, White
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 3 of 13
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Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Pavt Mrkg, Polyurea, 8507001 0033 0165 2190730 001 Original 5,660.800 Ft 0.99000 $5,604.19
6 inch, White
_ Pavt Mrkg, Polyurea, 8507001 0034 0170 2190730 001 Original 1,253.000 Ft 2.95000 $3,696.35
6 inch Crosswalk,
White
_ Pavt Mrkg, Polyurea, 8507001 0035 0175 2190730 001 Original -230.000 Ft 5.95000 $-1,368.50
12 inch Crosswalk,
White
_ Pavt Mrkg, Polyurea, 8507001 0036 0180 2190730 001 Original -913.000 Ft 7.50000 $-6,847.50
18 inch, Stop Bar,
White
_ Sign Type IIIB 8507010 0037 0185 2190730 001 Original 22.250 Sft 25.00000 $556.25
_ Post, Steel 3 LB 8507001 0038 0190 2190730 001 Original 60.000 Ft 8.00000 $480.00
_ Sanitary Sewer, 8", 8507001 0039 0195 2190730 001 Original -18.000 Ft 60.00000 $-1,080.00
Tr Det B
_ Sanitary Sewer, 10", 8507001 0040 0200 2190730 001 Original 5.000 Ft 90.00000 $450.00
Tr Det B
_ Sanitary Sewer, 8507050 0043 0215 2190730 001 Original -5.000 Ea 375.00000 $-1,875.00
Wye, 8 inch x 6 inch
_ Sanitary Lateral, 6 8507001 0044 0220 2190730 001 Original -77.750 Ft 45.00000 $-3,498.75
inch
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 4 of 13
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Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Sanitary Lateral, 6 8507001 0045 0225 2190730 001 Original 2.000 Ft 66.00000 $132.00
inch, Pipe Burst
_ Sanitary Lateral, 8507050 0046 0230 2190730 001 Original -9.000 Ea 150.00000 $-1,350.00
Connect to Ex.
_ Sanitary Sewer, 8507050 0047 0235 2190730 001 Original -1.000 Ea 950.00000 $-950.00
Connect to Ex. 8"
_ Sanitary Sewer, 8507050 0049 0245 2190730 001 Original -1.000 Ea 300.00000 $-300.00
Plug, 8 inch
_ Sanitary Sewer, 8507001 0051 0255 2190730 001 Original -8.000 Ft 2.25000 $-18.00
CCTV
_ Sewer, Cl E, 12 inch, 8507001 0052 0260 2190730 001 Original -265.000 Ft 50.00000 $-13,250.00
Tr Det B
_ Sewer, Cl E, 15 inch, 8507001 0053 0265 2190730 001 Original 53.000 Ft 70.00000 $3,710.00
Tr Det B
_ Sewer, Cl E, 18 inch, 8507001 0054 0270 2190730 001 Original -8.500 Ft 72.00000 $-612.00
Tr Det B
_ Sewer, Cl E, 24 inch, 8507001 0055 0275 2190730 001 Original -4.000 Ft 75.00000 $-300.00
Tr Det B
_ Sewer, Connect to 8507050 0056 0280 2190730 001 Original -1.000 Ea 650.00000 $-650.00
Ex. 12"
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 5 of 13
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FieldManager 5.3c
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Sewer, Connect to 8507050 0058 0290 2190730 001 Original 1.000 Ea 900.00000 $900.00
Ex. 18"
_ Sewer, Connect to 8507050 0059 0295 2190730 001 Original -1.000 Ea 950.00000 $-950.00
Ex. 24"
_ Dr Structure, 24 inch 8507050 0061 0305 2190730 001 Original -2.000 Ea 1,000.00000 $-2,000.00
dia
_ Dr Structure, 48 inch 8507050 0062 0310 2190730 001 Original 3.000 Ea 1,700.00000 $5,100.00
dia
_ Dr Structure Cover 8507050 0067 0335 2190730 001 Original -1.000 Ea 550.00000 $-550.00
Adj, Case 1
_ Water Main, DI, 4 8507001 0068 0340 2190730 001 Original 34.000 Ft 70.00000 $2,380.00
inch, Tr Det G
_ Water Main, DI, 6 8507001 0069 0345 2190730 001 Original 13.700 Ft 70.00000 $959.00
inch, Tr Det G
_ Water Main, DI, 8 8507001 0070 0350 2190730 001 Original 246.550 Ft 73.00000 $17,998.15
inch, Tr Det G
_ Water Main, DI, 16 8507001 0072 0360 2190730 001 Original 10.000 Ft 140.00000 $1,400.00
inch, Tr Det G
_ Water Main, Bend, 8507050 0073 0365 2190730 001 Original 2.000 Ea 763.83000 $1,527.66
22.5 Degree. 8 inch
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 6 of 13
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Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Water Main, Bend, 8507050 0074 0370 2190730 001 Original 6.000 Ea 700.00000 $4,200.00
45 Degree, 6 inch
_ Water Main, Bend, 8507050 0075 0375 2190730 001 Original 3.000 Ea 900.00000 $2,700.00
45 Degree, 8 inch
_ Water Main, Sleeve, 8507050 0078 0390 2190730 001 Original 1.000 Ea 1,200.00000 $1,200.00
4 inch
_ Water Main, Sleeve, 8507050 0080 0400 2190730 001 Original 3.000 Ea 1,800.00000 $5,400.00
8 inch
_ Water Main, Sleeve, 8507050 0081 0405 2190730 001 Original -1.000 Ea 2,000.00000 $-2,000.00
10 inch
_ Water Main, Tee, 8 8507050 0084 0420 2190730 001 Original 1.000 Ea 700.00000 $700.00
inch x 8 inch x 4 inch
_ Water Main, Tee, 8 8507050 0086 0430 2190730 001 Original -1.000 Ea 850.00000 $-850.00
inch x 8 inch x 8 inch
_ Water Main, Valve 8507050 0089 0445 2190730 001 Original 1.000 Ea 1,000.00000 $1,000.00
and Box, 4 inch
_ Water Main, Valve 8507050 0091 0455 2190730 001 Original -2.000 Ea 1,600.00000 $-3,200.00
and Box, 8 inch
_ Water Main, Cap, 8 8507050 0096 0480 2190730 001 Original -4.000 Ea 150.00000 $-600.00
inch
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 7 of 13
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FieldManager 5.3c
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Water Main, 8507001 0100 0500 2190730 001 Original -8,250.000 Ft 2.50000 $-20,625.00
Abandon
_ Water Main, Rem 8507001 0101 0505 2190730 001 Original -272.000 Ft 5.00000 $-1,360.00
_ Water Service, 8507050 0103 0515 2190730 001 Original 1.000 Ea 775.00000 $775.00
Corporation Stop, 2
inch
_ Water Service, Curb 8507050 0104 0520 2190730 001 Original 7.000 Ea 300.00000 $2,100.00
Stop and Box, 1 inch
_ Water Service, Curb 8507050 0105 0525 2190730 001 Original 1.000 Ea 800.00000 $800.00
Stop and Box, 2 inch
_ Water Service, 1 8507001 0106 0530 2190730 001 Original 2,048.000 Ft 35.00000 $71,680.00
inch
Reason: Additional length due to site conditions and additional piping required to make connections in homes
_ Water Service, 2 8507001 0107 0535 2190730 001 Original 147.000 Ft 88.00000 $12,936.00
inch
_ Water Service, Meter 8507050 0108 0540 2190730 001 Original -7.000 Ea 1,000.00000 $-7,000.00
Pit
_ Water Service 8507050 0109 0545 2190730 001 Original -27.000 Ea 50.00000 $-1,350.00
Restoration, Private
_ Sidewalk, Rem 8507011 0112 0560 2190730 002 Original -64.060 Syd 5.00000 $-320.30
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 8 of 13
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FieldManager 5.3c
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Sidewalk, Conc, 4 8507010 0113 0565 2190730 002 Original 2,355.000 Sft 3.00000 $7,065.00
inch
_ Sidewalk, Conc, 6 8507010 0114 0570 2190730 002 Original 1,085.330 Sft 4.25000 $4,612.65
inch
_ Sewer, Cl E, 10 inch, 8507001 0115 0575 2190730 002 Original -14.000 Ft 45.00000 $-630.00
Tr Det B
_ Sewer, Cl E, 12 inch, 8507001 0116 0580 2190730 002 Original 92.500 Ft 50.00000 $4,625.00
Tr Det B
_ Dr Structure, 24 inch 8507050 0120 0600 2190730 002 Original -1.000 Ea 1,000.00000 $-1,000.00
dia
_ Dr Structure, 48 inch 8507050 0121 0605 2190730 002 Original 1.000 Ea 1,700.00000 $1,700.00
dia
_ Dr Structure, Tap, 8 8507050 0122 0610 2190730 002 Original 1.000 Ea 900.00000 $900.00
inch
_ Dr Structure Cover, 8507050 0123 0615 2190730 002 Original 1.000 Ea 800.00000 $800.00
Type B
_ Frontier Duct Bank, 8507001 0159 0655 2190730 001 Extra 1,136.000 Ft 10.63000 $12,075.68
Hand Chipping
_ Dr Structure, Rem 8507050 0199 0695 2190730 002 Extra 1.000 Ea 250.00000 $250.00
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 9 of 13
Contract Modification
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Prein&Newhof
FieldManager 5.3c
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Sewer Rem, Less 8507001 0204 0700 2190730 002 Extra 7.000 Ft 7.00000 $49.00
than 24 inch
_ Sewer Rem, 24 inch 8507001 0209 0705 2190730 002 Extra 11.000 Ft 10.00000 $110.00
and Greater
_ Curb and Gutter 8507001 0214 0710 2190730 002 Extra -33.500 Ft 3.50000 $-117.25
Rem
_ Pavt, Rem 8507011 0219 0715 2190730 002 Extra -261.070 Syd 5.50000 $-1,435.89
_ HMA Surface, Rem 8507011 0224 0720 2190730 002 Extra 89.670 Syd 2.50000 $224.18
_ Erosion Control, Inlet 8507050 0229 0725 2190730 002 Extra -4.000 Ea 170.00000 $-680.00
Protection, Fabric
Drop
_ Machine Grading, 8507002 0234 0730 2190730 002 Extra 0.440 Sta 2,500.00000 $1,100.00
Modified
_ Aggregate Base, 9 8507011 0239 0735 2190730 002 Extra 88.670 Syd 12.00000 $1,064.04
inch, Modified
_ HMA, 5E1 8507031 0244 0740 2190730 002 Extra 13.570 Ton 82.80000 $1,123.60
_ HMA, 4E3 8507031 0249 0745 2190730 002 Extra 22.170 Ton 81.98000 $1,817.50
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 10 of 13
Contract Modification
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Prein&Newhof
FieldManager 5.3c
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Driveway, Nonreinf 8507011 0254 0750 2190730 002 Extra 9.030 Syd 40.00000 $361.20
Conc, 6 inch
_ Curb and Gutter, 8507001 0259 0755 2190730 002 Extra 80.500 Ft 14.00000 $1,127.00
Conc. Det F4
_ Sidewalk Ramp, 8507011 0264 0760 2190730 002 Extra -215.000 Syd 5.50000 $-1,182.50
Conc, 6 inch
_ Detectable Warning 8507001 0269 0765 2190730 002 Extra -15.000 Ft 48.00000 $-720.00
Surface
_ Turf Restoration 8507002 0274 0770 2190730 002 Extra -0.430 Sta 500.00000 $-215.00
_ Sewer, Cl E, 36 inch, 8507001 0289 0785 2190730 002 Extra 2.500 Ft 129.61000 $324.03
Tr Det B
_ Sewer, Cl E, 18 inch, 8507001 0304 0800 2190730 002 Extra -7.000 Ft 72.00000 $-504.00
Tr Det B
_ Sewer, Abandon, 8507001 0334 0830 2190730 002 Extra -65.000 Ft 5.00000 $-325.00
Less than 20 inch
_ Pavt Mrkg, Polyurea, 8507001 0339 0835 2190730 002 Extra -57.000 Ft 0.95000 $-54.15
4 inch, Yellow
_ Pavt Mrkg, Polyurea, 8507001 0344 0840 2190730 002 Extra 331.000 Ft 2.95000 $976.45
6 inch Crosswalk,
White
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 11 of 13
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Prein&Newhof
FieldManager 5.3c
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Pavt Mrkg, Polyurea, 8507001 0349 0845 2190730 002 Extra 3.000 Ft 7.50000 $22.50
18 inch, Stop Bar,
White
_ Sanitary Sewer, 8507050 0364 0860 2190730 002 Extra 1.000 Ea 375.00000 $375.00
Wye, 8 inch x 6 inch
_ Sanitary Lateral, 6 8507001 0369 0865 2190730 002 Extra 93.000 Ft 45.00000 $4,185.00
inch
_ Sanitary Lateral, 8507050 0374 0870 2190730 002 Extra 1.000 Ea 150.00000 $150.00
Connect to Ex.
_ Sewer, Cl E, 15 inch, 8507001 0389 0885 2190730 002 Extra 20.000 Ft 70.00000 $1,400.00
Tr Det B
_ Dr Structure Cover 8507050 0404 0900 2190730 002 Extra -2.000 Ea 550.00000 $-1,100.00
Adj, Case 1
_ Water Main, DI, 6 8507001 0409 0905 2190730 002 Extra 13.000 Ft 70.00000 $910.00
inch, Tr Det G
_ Water Main, Sleeve, 8507050 0419 0915 2190730 002 Extra -1.000 Ea 1,300.00000 $-1,300.00
6 inch
_ Valve Box, Adjust 8507050 0424 0920 2190730 002 Extra 3.000 Ea 485.00000 $1,455.00
_ Water Main, Rem 8507001 0429 0925 2190730 002 Extra 13.000 Ft 5.00000 $65.00
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 12 of 13
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FieldManager 5.3c
Increases / Decreases
Item Prop. Proj. Quantity
Item Description Code Line Line Project Catg. Item Type Change Unit Unit Price Dollar Value
_ Sanitary Sewer, 8”, 8507001 0469 0965 2190730 002 Extra 5.000 Ft 106.50000 $532.50
Tr Det B, Southern
_ Sewer, Cl E, 21 Inch, 8507001 0474 0970 2190730 002 Extra -8.000 Ft 150.00000 $-1,200.00
Tr Det B
_ Sewer, Bulkhead, 8” 8507050 0489 0985 2190730 002 Extra 1.000 Ea 1,000.00000 $1,000.00
_ Sewer, Bulkhead, 36 8507050 0504 1000 2190730 002 Extra 1.000 Ea 950.00000 $950.00
Inch
Total Dollar Value: $96,842.52
New Items
Item Prop. Proj. Proposed
Item Description Code Line Line Project Catg. ItemType Quantity Unit Unit Price Dollar Value
_ Irrigation Repair, 8507051 0544 1040 2190730 002 Extra 1.000 LS 3,805.44000 $3,805.44
Southern Avenue
Reason: CO 6
Total Dollar Value: $3,805.44
Project / Category Summary
Project/Category Federal Finance Control
Project/Catg Description Number Project Status System Section Dollar Value
2190730 Peck Street 0 CNST
001 SRF/DWRF Eligible $68,351.96
002 SRF/DWRF Ineligible $32,296.00
Total: $100,647.96
Total Net Change Amount: $100,647.96
Contract: _2190730 Cont. Mod.: 6, Rev. 3 Page 13 of 13
February 2, 2022
2190730
Leo Evans
City of Muskegon
1350 E Keating Avenue
Muskegon, MI 49442
RE: Peck Street: Laketon to Merrill
Dear Leo:
Enclosed is Change Order 6 with signatures for the referenced project. This Change Order adds an
item for the non-eligible irrigation repair on Southern Avenue. The remainder of the Change Order
balances base quantities.
Additionally, Payment Application 8 with signatures for the referenced project is enclosed. This
Payment Application includes additional miscellaneous quantities that were not paid for during
construction and agreed upon with Kamminga & Roodvoets during final quantity review. $10,000
was withheld as retainage until the remaining restoration punch list items are rectified in the spring of
2022.
The final breakdown by fund through Payment Application 9 is as follows:
SRF Eligible: $2,081,664.09
DWRF Eligible: $1,512,500.37
Non-Eligible: $592,252.89
Total: $4,186,417.34
For simplicity we recommend withholding $10,000 from the SRF Eligible fund in retainage to be
released in the spring for the final Payment Application. Based on what has been paid from each fund
to date, and after subtracting retainage, we recommend the following payment breakdown for
Payment Application 9 to match the final payment totals listed above:
SRF Eligible: $87,444.67
DWRF Eligible: $41,586.76
Non-Eligible: ($10,356.41)
Total: $118,675.01
The final fund breakdown shows that there was a slight overpayment of $10,356.41 in Non-Eligible
funds and will be need to be rebalanced to match the final fund breakdown.
Please review the Change Order and Payment Application and once approved, return one signed
copy of each to Kamminga & Roodvoets with payment. Additionally, please return one signed copy
of each to our office.
4910 Stariha Drive Muskegon, MI 49441 t. 231-798-0101 f. 231-798-0337 www.preinnewhof.com
If you have any questions regarding this recommendation and the project in general, please do not
hesitate to contact me.
Sincerely,
Prein&Newhof
Matthew Hulst, P.E.
Enclosures: Payment Application 9
Change Order 6
4910 Stariha Drive Muskegon, MI 49441 t. 231-798-0101 f. 231-798-0337 www.preinnewhof.com
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Western Ave. Fifth to Third Parking
Lane Improvements – contract award
Submitted By: Joel Brookens Department: Public Works
Brief Summary:
Staff is requesting authorization to approve a contact with Anlaan Corporation in the amount of
$332,863.00.
Detailed Summary:
Bids were solicited for a construction project to improve the parking lane along Western Ave, between
Fifth and Third. Anlaan provided the low bid. The bid tabulation is attached.
Two alternated were also solicited. Alternate #1 is a different type of bollard post system. Alternate #2
is a different concrete surface finish and texture. The base bid is the preferred construction method,
therefore staff recommends acceptance of the base bid and rejection of the alternates.
Amount Requested: $332,863.00 Amount Budgeted: $400,000
Upcoming reforecast
Fund(s) or Account(s): Fund(s) or Account(s):
101-91116 (ADA Projects) 101-91116 ($100K)
202-92201 (Western Ave ADA) 202-92201 ($200K)
420-91801 (Convention Center) 420-91801 ($100K)
Recommended Motion:
Authorize staff to approve a contact with Anlaan Corporation in the amount of $332,863.00
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
1.10 BID TABULATION
City of Muskegon Project Engineer: JDB Date: 11/23/2021
Engineering Department Project Number:
Project description: WESTERN AVE, FIFTH TO THIRD
Engineer's Estimate: $ 294,857.00
Anlaan Corp Wadel Stabilization McCromick Sand Inc Accurate Excavators Jackson Merkey
Line Item Pay Code Description Units Quantity Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total
1 1100001 Mobilization, Max LSUM 1 $ 24,000.00 $ 24,000.00 $ 39,000.00 $ 39,000.00 $ 39,000.00 $ 39,000.00 $ 15,000.00 $ 15,000.00 $ 54,000.00 $ 54,000.00
2 2030011 Dr Structure, Rem Ea 4 $ 1,000.00 $ 4,000.00 $ 600.00 $ 2,400.00 $ 1,000.00 $ 4,000.00 $ 650.00 $ 2,600.00 $ 695.00 $ 2,780.00
3 2030015 Sewer, Rem, Less than 24 inch Ft 40 $ 35.00 $ 1,400.00 $ 11.00 $ 440.00 $ 24.00 $ 960.00 $ 24.00 $ 960.00 $ 49.00 $ 1,960.00
4 2040020 Curb and Gutter, Rem Ft 794 $ 10.00 $ 7,940.00 $ 9.00 $ 7,146.00 $ 10.00 $ 7,940.00 $ 7.00 $ 5,558.00 $ 16.00 $ 12,704.00
5 2040050 Pavt, Rem Syd 925 $ 12.50 $ 11,562.50 $ 10.00 $ 9,250.00 $ 10.00 $ 9,250.00 $ 10.00 $ 9,250.00 $ 22.00 $ 20,350.00
6 2040055 Sidewalk, Rem Syd 25 $ 35.00 $ 875.00 $ 19.00 $ 475.00 $ 30.00 $ 750.00 $ 75.00 $ 1,875.00 $ 79.00 $ 1,975.00
7 2050010 Embankment, CIP Cyd 90 $ 50.00 $ 4,500.00 $ 15.00 $ 1,350.00 $ 15.00 $ 1,350.00 $ 40.00 $ 3,600.00 $ 48.00 $ 4,320.00
8 4021203 Sewer Tap, 10 inch Ea 1 $ 385.00 $ 385.00 $ 510.00 $ 510.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 530.00 $ 530.00
9 4030010 Dr Structure Cover, Type B Ea 2 $ 525.00 $ 1,050.00 $ 850.00 $ 1,700.00 $ 500.00 $ 1,000.00 $ 880.00 $ 1,760.00 $ 845.00 $ 1,690.00
10 4030025 Dr Structure Cover, Type D Ea 6 $ 650.00 $ 3,900.00 $ 1,250.00 $ 7,500.00 $ 750.00 $ 4,500.00 $ 950.00 $ 5,700.00 $ 975.00 $ 5,850.00
11 4030200 Dr Structure, 24 inch dia Ea 5 $ 2,300.00 $ 11,500.00 $ 2,500.00 $ 12,500.00 $ 2,500.00 $ 12,500.00 $ 1,365.00 $ 6,825.00 $ 1,830.00 $ 9,150.00
12 4030210 Dr Structure, 48 inch dia Ea 1 $ 3,400.00 $ 3,400.00 $ 3,500.00 $ 3,500.00 $ 2,600.00 $ 2,600.00 $ 1,765.00 $ 1,765.00 $ 2,550.00 $ 2,550.00
13 8030010 Detectable Warning Surface Ft 20 $ 33.00 $ 660.00 $ 35.00 $ 700.00 $ 33.00 $ 660.00 $ 220.00 $ 4,400.00 $ 38.50 $ 770.00
14 8030030 Curb Ramp Opening, Conc Ft 795 $ 18.40 $ 14,628.00 $ 15.00 $ 11,925.00 $ 17.00 $ 13,515.00 $ 26.50 $ 21,067.50 $ 26.14 $ 20,781.30
15 8030048 Sidewalk, Conc, 8 inch Sft 8600 $ 5.20 $ 44,720.00 $ 5.00 $ 43,000.00 $ 6.00 $ 51,600.00 $ 10.50 $ 90,300.00 $ 10.30 $ 88,580.00
16 8037010 POLYMER CEMENT SURFACING Sft 8600 $ 7.35 $ 63,210.00 $ 7.35 $ 63,210.00 $ 7.35 $ 63,210.00 $ 8.10 $ 69,660.00 $ 7.35 $ 63,210.00
17 8037010 Sidewalk, Conc, 8 inch, colored and stamped Sft 475 $ 11.90 $ 5,652.50 $ 11.00 $ 5,225.00 $ 12.00 $ 5,700.00 $ 16.50 $ 7,837.50 $ 14.00 $ 6,650.00
18 8107050 Removal Bollard System (TrafficGuard) Ea 70 $ 1,480.00 $ 103,600.00 $ 2,000.00 $ 140,000.00 $ 2,200.00 $ 154,000.00 $ 2,525.00 $ 176,750.00 $ 3,033.70 $ 212,359.00
19 8120012 Barricade, Type III, High Intensity, Double Sided, Lighted, Furn Ea 5 $ 65.00 $ 325.00 $ 65.00 $ 325.00 $ 65.00 $ 325.00 $ 72.00 $ 360.00 $ 76.00 $ 380.00
20 8120013 Barricade, Type III, High Intensity, Double Sided, Lighted, Oper Ea 5 $ 5.00 $ 25.00 $ 5.00 $ 25.00 $ 5.00 $ 25.00 $ 6.00 $ 30.00 $ 5.80 $ 29.00
21 8120026 Pedestrian Type II Barricade, Temp Ea 10 $ 85.00 $ 850.00 $ 85.00 $ 850.00 $ 85.00 $ 850.00 $ 94.00 $ 940.00 $ 99.00 $ 990.00
22 8120027 Pedestrian Type II Channelizer, Temp Ft 800 $ 14.00 $ 11,200.00 $ 14.00 $ 11,200.00 $ 14.00 $ 11,200.00 $ 15.50 $ 12,400.00 $ 16.50 $ 13,200.00
23 8120170 Minor Traf Devices LSUM 1 $ 11,000.00 $ 11,000.00 $ 32,000.00 $ 32,000.00 $ 10,000.00 $ 10,000.00 $ 2,550.00 $ 2,550.00 $ 20,000.00 $ 20,000.00
24 8120252 Plastic Drum, Fluorescent, Furn Ea 20 $ 16.00 $ 320.00 $ 16.00 $ 320.00 $ 16.00 $ 320.00 $ 18.00 $ 360.00 $ 18.50 $ 370.00
25 8120253 Plastic Drum, Fluorescent, Oper Ea 20 $ 1.00 $ 20.00 $ 1.00 $ 20.00 $ 1.00 $ 20.00 $ 2.00 $ 40.00 $ 1.20 $ 24.00
26 8120350 Sign, Type B, Temp, Prismatic, Furn Sft 190 $ 3.00 $ 570.00 $ 3.00 $ 570.00 $ 3.00 $ 570.00 $ 4.00 $ 760.00 $ 3.50 $ 665.00
27 8120351 Sign, Type B, Temp, Prismatic, Oper Sft 190 $ 1.00 $ 190.00 $ 1.00 $ 190.00 $ 1.00 $ 190.00 $ 2.00 $ 380.00 $ 1.20 $ 228.00
28 8257001 SEWER, PVC SDR 35, 10 INCH, TR DET B Ft 12 $ 115.00 $ 1,380.00 $ 95.00 $ 1,140.00 $ 45.00 $ 540.00 $ 50.00 $ 600.00 $ 84.50 $ 1,014.00
BASE BID TOTAL: $ 332,863.00 $ 396,471.00 $ 397,075.00 $ 443,828.00 $ 547,109.30
Alternate #1 - Delete line item #18 and add the following
18 8107050 Removal Bollard System (TrafficGuard) Ea 70 $ (1,480.00) $ (103,600.00) $ (2,000.00) $ (140,000.00) $ (2,200.00) $ (154,000.00) $ (2,525.00) $ (176,750.00) $ (3,033.70) $ (212,359.00)
29 8107050 Removal Bollard System (Gorilla Post) Ea 70 $ 470.00 $ 32,900.00 $ 1,300.00 $ 91,000.00 $ 200.00 $ 14,000.00 $ 500.00 $ 35,000.00 $ 700.00 $ 49,000.00
Net change $ (70,700.00) $ (49,000.00) $ (140,000.00) $ (141,750.00) $ (163,359.00)
Alternate #2 - Delete line item #16 and add the following
16 8037010 POLYMER CEMENT SURFACING Sft 8600 $ (7.35) $ (63,210.00) $ (7.35) $ (63,210.00) $ (7.35) $ (63,210.00) $ (8.10) $ (69,660.00) $ (7.35) $ (63,210.00)
30 8037010 Concrete Surface Finshing - Sand washed and stainded finsh SFT 8600 $ 2.30 $ 19,780.00 $ 3.50 $ 30,100.00 $ 5.75 $ 49,450.00 $ 13.25 $ 113,950.00 $ - $ -
Net change $ (43,430.00) $ (33,110.00) $ (13,760.00) $ 44,290.00 $ (63,210.00)
Bid Tabulation 1 of 1
CITY OF MUSKEGON
PLAN AND PROFILE OF PROPOSED
WESTERN AVE, FIFTH TO THIRD
PARKING LANE IMPROVEMENTS
PROJECT NUMBER: UTILITIES
ELECTRIC
JOEL BROWN
CONSUMERS ENERGY
700 E STERNBERG ROAD
NORTON SHORES, MI 49441
(231) 332-2682
STANDARD PLANS TELEPHONE
SHEET INDEX R-01-G DRAINAGE STRUCTURES
DAVID B. FLERMOEN
FRONTIER COMMUNICATIONS
SHEET DESCRIPTION R-28-J SIDEWALK RAMP AND DETECTABLE WARNING DETAILS 860 TERRACE STREET
R-30-G CONCRETE CURB & GUTTER MUSKEGON MI 49440
1. TITLE SHEET
(231) 727-1319
2. CROSS SECTION & PLAN R-96-E SOIL EROSION & SEDIMENTATION CONTROL MEASURES
3. TRAFFIC CONTROL PLAN NATURAL GAS
VINCENT DUCA
DTE ENERGY
2359 OLTHOFF DRIVE
MUSKEGON MI 49444
(231) 578-0488 (CELL)
TRAFFIC/SAFETY STANDARD PLANS
CABLE
WZD-125-E TEMPORARY TRAFFIC CONTROL DEVICES COMCAST
TBA
WATER & SEWER
DAVE BAKER
CITY OF MUSKEGON - DPW
1350 E KEATING AVENUE
U E MUSKEGON MI 49442
U E EN
(231) 724-4100
VE N AV U E
A R N EN
IS T E AV
R R E S Y
A
NOTE:
MO W
CL
E
JE
U
EN
THE IMPROVEMENTS COVERED BY THESE PLANS SHALL BE DONE IN ACCORDANCE WITH THE MICHIGAN
3 WORKING DAYS
FF
DEPARTMENT OF TRANSPORTATION 2020 STANDARD SPECIFICATIONS FOR CONSTRUCTION AND THE 2011
AV EXCLUDING SAT, SUN & HOLIDAYS
N
N
ER
MICHIGAN MANUAL OF UNIFORM TRAFFIC CONTROL DEVICES. THESE IMPROVEMENTS HAVE BEEN DESIGNED IN
ACCORDANCE WITH THE 2018 AASHTO GUIDELINES. G O
KE
SO
FI
TH
U S
RS
N
M
IR
T
POE, STA 7+50
D
GENERAL NOTES: Know what's below.
ST
ST
Call before you dig.
RE
R
1. EXISTING CONDITIONS INCLUDING ELEVATIONS ARE SUBJECT TO CHANGE DUE TO CONSTRUCTION E
EE
PROJECT LOCATION U
SE
E
OUTSIDE THE CONTROL OF THE CITY OF MUSKEGON. CONTRACTOR IS TO VERIFY EXISTING
E N
T
T
CO
CONDITIONS OF THE SITE, MATCH ALL EXISTING MEETS AND COORDINATE WORK ACTIVES WITH
NEIGHBORING CONTRACTORS.
A V
N
Y
D
2. UPON REQUEST AND APPROVAL, THE CONTRACTOR MAY OBTAIN A WATER SUPPLY FROM THE CITY A
CL APPLE AVENUE
ST
OF MUSKEGON FIRE HYDRANTS AT NO COST, PROVIDED THAT THEY FOLLOW THE CONDITIONS OF
THE CITY WATER DEPARTMENT.
RE
POB, STA 0+00 CONSTRUCTION INCLUDES REMOVAL AND REPLACEMENT OF 800
3. FOR PROTECTION OF UNDERGROUND UTILITIES, THE CONTRACTOR SHALL CALL MISS DIG,
E
FEET CONCRETE CURB, 8,600 SFT OF CONCRETE SIDEWALK, AND
T
1-800-482-7171, A MINIMUM OF 3 WORKING DAYS EXCLUDING SATURDAYS, SUNDAYS, AND HOLIDAYS
PRIOR TO EXCAVATING IN THE VICINITY OF ALL UTILITY LINES. ALL MISS DIG PARTICIPATING U E SEVERAL STORM SEWER CATCH BASIN MODIFICATIONS IN THE CITY
MEMBERS WILL THUS BE NOTIFIED, THIS DOES NOT RELIEVE THE CONTRACTOR THE
EN OF MUSKEGON, MUSKEGON COUNTY.
AV
RESPONSIBILITY OF NOTIFYING OWNERS WHO MAY NOT BE PART OF THE MISS DIG ALERT SYSTEM.
HAMILTON AVENUE
4. PUBLIC UTILITIES OF ALL TYPES HAVE BEEN SHOWN ON THE PLAN USING AVAILABLE
ON
FIRST STREET
INFORMATION, BUT ARE NOT GUARANTEED AS ACCURATE OR THAT UTILITIES OTHER THAN THOSE
SHOWN ARE NOT PRESENT. E G
E S K
5. THE CONTRACTOR SHALL SAW CUT ALL MEETS RELATIVE TO SIDEWALK OR PAVEMENT
N U M U
CONSTRUCTION UNLESS WAIVED BY THE ENGINEER. PAYMENT FOR SAW CUTTING SHALL BE
V E E
INCLUDED IN THE PAYMENT FOR THE PAY ITEMS PAVT, REM, MODIFIED; CURB AND GUTTER, REM;
AND/OR SIDEWALK, REM. NO ADDITIONAL PAYMENT WILL ALLOWED FOR SAW CUTTING. A N U HOUSTON AVENUE PREPARED UNDER THE SUPERVISION OF:
N E
6. THE CONTRACTOR SHALL PREVENT EROSION AND CONTROL SEDIMENTATION ASSOCIATED WITH E R AV
THE PROJECT. KEEP SEDIMENTATION WITHIN THE RIGHT OF WAY (OR CONSTRUCTION LIMITS) AND
E ST ER
OUT OF SURFACE WATERS. CONSTRUCT AND MAINTAIN TEMPORARY EROSION AND SEDIMENTATION
W S T
FI
CONTROLS, TO INCLUDE INLET PROTECTION, FABRIC DROPS ON ALL INLET STRUCTURES NEW AND
B
WE
SE
FT
EXISTING AND INSTALL TEMPORARY EROSION, SEDIMENTATION CONTROLS AS DIRECTED BY THE
SI
ENGINEER. THE CONTRACTOR SHALL REMOVE ON A DAILY BASIS SOIL TRACKED ONTO EXISTING
VE
MONROE AVENUE
XT
H
PAVED ROADS, (VACUUM METHODS ARE PREFERRED BUT BROOM SWEEPING IS ACCEPTABLE IF THE
NT
ST
H
MATERIAL IS REMOVED) THE CONTRACTOR SHALL INSPECT ALL SOIL EROSION / SEDIMENTATION
CONTROL MEASURES ON A WEEKLY BASIS OR AFTER EACH RAIN FALL EVENT, CLEAN REPAIR, OR
U E
ST
TH
R
H
REPLACE, AS NECESSARY, TO ENSURE PROPER FUNCTION. ALL SOIL EROSION / SEDIMENTATION
N
EE
E
ST
RE
IR
CONTROLS SHALL REMAIN UNTIL ALL DISTURBED AREAS ARE STABILIZED. ALL SOIL EROSION /
AV LEO EVANS, P.E.
T
SEDIMENTATION CONTROL, EXCEPT FOR THE EROSION CONTROL, INLET PROTECTION, FABRIC DROP
D
RE
ET
CITY ENGINEER CITY OF MUSKEGON
ON
AND SILT FENCE SHALL BE INCLUDED WITH THE PAY ITEM PROJECT CLEAN UP. NO OTHER
ST
PAYMENT SHALL BE MADE. ENGINEERING DEPARTMENT
ET
T MERRILL AVENUE
UE S
RE
UE
1350 E KEATING AVE
N U E 55599
EN E HO U
E
MUSKEGON MI 49442
N
AV E
T
V
FO
A A V REGISTRATION NUMBER
EI
R N
UR
E O E CITY OF MUSKEGON Western Sidewalk Imprv.
GH
T EG O
TH
BS K R OFFICE OF THE CITY ENGINEERFifth to Third
TH
E S E N
W U MO
ST
M N U 09/2021 PROJECT NO
FI
ST
DRAWN J BROOKENS 10/2021 REVISION FP
VE
SURVEY
RE
STRO x
NI
NG AVENUE REVISION
F
A CHECKED
RE
AS-BUILT
TH
E
NT
. N APPROVED
T
REVISION SHEET NO. 01 of 03
E O
E
V T
H
T
ST
A US
Y
ST
RE
LA HO
RE
C
ET
E
STA 0+50 TO 3+50
29 EA REMOVAL BOLLARD SYSTEM
STA 0+50 LT STA 0+42 TO 3+57 LT
10 SYD SIDEWALK, REM 320 LFT CURB AND GUTTER, REM
200 SFT SIDEWALK, CONCRETE, 8 INCH, 130 SYD PAVT, REM
COLORED AND STAMPED (RED) 320 LFT CURB RAMP OPENING, CONCRETE STA 3+50 LT
3500 SFT SIDEWALK, CONC, 8 INCH, 5 SYD SIDEWALK, REM
STA 0+67 LT 3500 SFT POLYMER CEMENT SURFACING 100 SFT SIDEWALK, CONC, 8 INCH, COLORED
1 EA DR STRUCTURE COVER, TYPE B AND STAMPED (RED)
1 EA DR STRUCTURE, 24 INCH (CB 101) STA 1+63 LT 10 LFT DETECTABLE WARNING SURFACE
12 FT SEWER, PVC SDR 35, 10 INCH 1 EA DR STRUCTURE, REM
1 EA SEWER TAP, 10 INCH 10 FT SEWER, REM, LESS THAN 24 INCH
MH 1 EA DR STRUCTURE COVER, TYPE D M3 EX 24" STORM 1 EA DR STRUCTURE, 24 INCH (CB 102) MH
1 EA DR STRUCTURE COVER, TYPE D M3
5TH ST.
LP LP LP
Y D HH
H
MH CB
CB
W W
V V
W
V
10.0' TYP. W
V W
V W
V
0+50
0+00
2+50
3+50
2+00
3+00
4+00
1+50
1+00
NOTES:
MH
MH
EX 18" STORM
EX 18" STORM MH EX 18" STORM
MH
4TH ST.
CB CB CB
LP HH LP HH HHL
P
WESTERN AVE.
Date:
STA 4+50 TO 7+60 LT
310 LFT CURB AND GUTTER, REM
135 SYD PAVT, REM CB
310 LFT CURB RAMP OPENING, CONCRETE
QUANTITIES THIS SHEET 3600 SFT SIDEWALK, CONC, 8 INCH
3600 SFT POLYMER CEMENT SURFACING
DESCRIPTION QUANTITY UNIT STA 6+34 LT
STA 4+75 LT
BENCHMARK #01
1 EA DR STRUCTURE, REM 1 EA DR STRUCTURE, REM
DR STRUCTURE, REM 4 HYDRANT NE QUAD WESTERN & FORTH
EA ELEVATION: 101.30
15 FT SEWER, REM, LESS THAN 24 INCH 15 FT SEWER, REM, LESS THAN 24 INCH STA 7+50 LT
1 EA DR STRUCTURE, 24 INCH (CB 103) 1 EA DR STRUCTURE, 24 INCH (CB 105) 1 EA DR STRUCTURE, REM
Revisions:
SEWER, REM, LESS THAN 24 INCH 40 FT 1 EA DR STRUCTURE COVER, TYPE D M3 1 EA DR STRUCTURE COVER, TYPE D M3 1 EA DR STRUCTURE, 24 INCH
1 EA DR STRUCTURE COVER, TYPE D M3
CURB AND GUTTER, REM, 794 FT
2.
3.
1.
PAVT, REM 325 SYD
SIDEWALK, REM 25 SYD
EMBANKMENT, CIP 90 CYD LP LP
HH HH HH Y D
HH
H
Y D
MH
H
CB CB
SEWER TAP, 10 INCH 1 EA CB
DR STRUCTURE COVER, TYPE B 2 EA
WESTERN SIDEWALK CONSTRUCTION PLAN Date: 10/2021
DR STRUCTURE COVER, TYPE D 6 EA W
V W
V W
Drawn: J.B.
W W V
V V
6+50
6+00
4+00
4+50
5+50
Checked:
7+00
7+50
5+00
DR STRUCTURE, 24 INCH DIA 5 EA
Date:
DR STRUCTURE, 48 INCH DIA 1 EA MH
25
.0
DETECTABLE WARNING SURFACE 20 FT EX 18" STORM MH '
CURB RAMP OPENING, CONC 795 FT EX 18" STORM MH EX 18" STORM
4TH ST.
MH
SIDEWALK, CONC, 8 INCH 8600 SFT CB CB CB
LP HH HH HH
LP
SIDEWALK, CONC, 8 INCH, COLORED AND STAMPED
SEWER, PVC SDR 35, 10 INCH, TR DET B
475
12
SFT
FT
HH
MH MH WESTERN AVE.
POLYMER CEMENT SURFACING 8600 SFT STA 4+50 TO 7+50 LT & RT
CB
41 EA REMOVAL BOLLARD SYSTEM
REMOVAL BOLLARD SYSTEM 70 EA
STA 4+29 TO 5+90 RT
164 LFT CURB AND GUTTER, REM
60 SYD PAVT, REM
STA 4+75 RT 165 LFT CURB RAMP OPENING, CONCRETE
PL EXISTING CROSS SECTION PL
STA 4+29 TO 4+52 RT
1 EA
1 EA
DR STRUCTURE COVER, TYPE B
DR STRUCTURE, 48 INCH (MH 104)
1500 SFT
1500 SFT
SIDEWALK, CONC, 8 INCH
POLYMER CEMENT SURFACING
1 EA DR STRUCTURE, COVER, TYPE D M3
10 SYD SIDEWALK, REM
24' 24' 175 SFT SIDEWALK, CONCRETE, 8 INCH,
COLORED AND STAMPED (RED)
10 LFT DETECTABLE WARNING SURFACE
OFFICE OF THE CITY ENGINEERIMPROVEMENTS
2' 10' 12' 12' 10' 2'
DECORATIVE TRAVEL LANE TRAVEL LANE DECORATIVE
STAMPED PARKING PARKING STAMPED
CONCRETE CONCRETE
EXISTING DRAINAGE STRUCTURE INFO. PROPOSED DRAINAGE STRUCTURE INFO.
TYP. 1% SLOPE
APPX. 1% SLOPE
Structure # Station - Offset Rim Elev. Inverts Notes Structure # Station - Offset Rim Elev. Inverts Notes
1 STA 0+67 LT 21 93.68 90.98 SW 12" CONC CB 101 STA 0+67 LT 11 93.8 91 NW 12" CONC
TO REMAIN EXCEPT WHERE 14' 14'
SHOWN ON PLANS (TYP.) 2 STA 1+70 LT 21 95.10 90.60 SE 12" CONC REMOVE CB 102 STA 1+67 LT 11 95.22 90.5 SE 12" CONC
SAW-CUT
3 STA 1+57 RT 17 95.21 90.31 NW 12" CONC MH CB 103 STA 4+75 LT 11 99.37 95.26 SE 12" CONC
CITY OF MUSKEGON
89.01 NE/SW 21" CONC
MH 104 STA 4+75 RT 11 99.39 95.26 W 12" CONC 48" MH
4 STA 4+75 LT 21 99.25 95.25 SW 12" CONC REMOVE 95.26 E 12" CONC
5 STA 4+75 RT 21 99.27 95.27 SW 12" CONC NEW CASTING CB 105 STA 6+35 LT 11 100.96 96.12 SE 12" CONC
6 STA 6+30 RT 19 101.18 96.18 N 12" CONC CB 106 STA 7+50 LT 18 101.70 97.9 SE 12" CONC
PL PROPOSED CROSS SECTION PL 7 STA 6+38 LT 21 100.84
94.68 NE/SW 18" CONC
96.09 SE 12" CONC REMOVE
8 STA 7+50 LT 18 101.68 97.98 E 12" CONC REMOVE, 48" STRUCTURE
24' 24'
EXISTING
DECORATIVE
12' 2' 10' 10' 2' 12' EXISTING
STAMPED
TRAVEL LANE DECORATIVE NOTES:
CONCRETE TRAVEL LANE
VARIABLE USE VARIABLE USE STAMPED 1. CASTING TYPE D M3 IS TO BE EJ 5100 WITH
CONCRETE TYPE M3 GRATE, OR AS APPROVED BY
ENGINEER
2. ALL SIGN WORK, INCLUDING REMOVAL,
SIDEWALK, CONC, 8 INCH
RELOCATION AND INSTALLATION WILL BE
NON-REINFORCED SIDEWALK, CONC, 8 INCH DONE BY CITY.
NON-REINFORCED
CLASS II FILL HMA TO REMAIN
CURB RAMP OPENING
CURB RAMP OPENING
CLASS II FILL
02
TRAFFIC CONTROL PLAN TRAFFIC CONTROL NOTES:
1. THE CONTRACTOR SHALL CLOSE WESTERN COMPLETELY, ACCORDING
TO THIS TRAFFIC CONTROL PLAN.
2. THE CONTRACTOR SHALL MAINTAIN ACCESS TO BUSINESSES,
RESIDENCES, AND CROSS STREETS AS DIRECTED BY THE ENGINEER.
CONTRACTOR MAY USE AGGREGATE OR HMA MILLINGS. NO
ADDITIONAL PAYMENT WILL BE MADE FOR MAINTAINING TRAFFIC.
3. WESTERN IS THE HEART OF MUSKEGON'S DOWNTOWN. CONTRACTOR
CAN EXPECT A LARGE AMOUNT OF PEDESTRIANS WITHIN THE
CONSTRUCTION AREA. ENGINEER WILL BE INSPECTING PEDESTRIANS
BARRICADES REGULARLY FOR SAFETY.
NOTES:
Date:
PROPOSED QUANTITIES
SIGN, TYPE B, TEMPORARY
QUANTIT AREA TOTAL AREA
SIGN DESCRIPTION (SFT) (SFT)
Y
RII-2 ROAD CLOSED 0 16 0
RII-4 ROAD CLOSED TO THRU TR 5 16 80
W20-3 ROAD CLOSED AHEAD 3 16 48
Revisions:
W21-4 ROAD WORK AHEAD 3 16 48
R3-2 NO LEFT TURN 0 4 0
2.
3.
1.
R3-1 NO RIGHT TURN 0 4 0
R5-1a WRONG WAY 0 6 0
UE R6-1 RT ONE WAY (RIGHT) 0 3 0
U E E N R8-3 NO PARKING SYMBOL 0 1 0
N V
VE
N
A
N UE
A
Date: 10/2021
R9-8 PEDESTRIAN CROSSWALK 0 4.5 0
S E R V E
Drawn: J.B.
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: HMV Brownfield Repayment
Submitted By: Frank Peterson Department: City Manager
Brief Summary: Staff is seeking approval of the repayment schedule for the Hartshorn Marina
Village Brownfield project.
Detailed Summary. In 2020 the City Commission authorized this issuance of up to $8 Million in
general obligation bonds for a number of municipal projects. One of the projects included was the
infrastructure for Hartshorn Marina Village. The $600,000 expense was to be repaid via Brownfield
tax capture. The Brownfield is approximately two years behind schedule as the developers have
dealt with various environmental issues. This delay has left the Brownfield Fund with inadequate
cashflow to cover the debt payments today, and we expect that will be the case for the next 1-2
years as well.
The Finance Department has reviewed the obligations and is recommending that the General Fund
assume the debt obligation and make the payments. In return, the General Fund will retain the tax
capture to reimburse itself with interest over the life of the Brownfield. We have attached an
amortization schedule. Note that the $600,000 original principal has already incurred interest for
one year, resulting in a starting balance above $600,000.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s): N/A
Recommended Motion: Authorize the repayment schedule to reimburse the General Fund
$600,000 plus 5% interest from the Brownfield Fund.
02/08/2022 6:03 PM
Hartshorn Marina Village
Compounding Period: Annual
Nominal Annual Rate: 5.000%
Cash Flow Data - Loans and Payments
Event Date Amount Number Period End Date
1 Loan 09/21/2020 600,000.00 1
2 Payment 09/21/2021 0.00 1
3 Payment 09/21/2022 0.00 1
4 Payment 09/21/2023 56,588.83 18 Annual 09/21/2040
TValue Amortization Schedule - Normal, 365 Day Year
Date Payment Interest Principal Balance
Loan 09/21/2020 600,000.00
2020 Totals 0.00 0.00 0.00
1 09/21/2021 0.00 30,000.00 -30,000.00 630,000.00
2021 Totals 0.00 30,000.00 -30,000.00
2 09/21/2022 0.00 31,500.00 -31,500.00 661,500.00
2022 Totals 0.00 31,500.00 -31,500.00
3 09/21/2023 56,588.83 33,075.00 23,513.83 637,986.17
2023 Totals 56,588.83 33,075.00 23,513.83
4 09/21/2024 56,588.83 31,899.31 24,689.52 613,296.65
2024 Totals 56,588.83 31,899.31 24,689.52
5 09/21/2025 56,588.83 30,664.83 25,924.00 587,372.65
2025 Totals 56,588.83 30,664.83 25,924.00
6 09/21/2026 56,588.83 29,368.63 27,220.20 560,152.45
2026 Totals 56,588.83 29,368.63 27,220.20
7 09/21/2027 56,588.83 28,007.62 28,581.21 531,571.24
2027 Totals 56,588.83 28,007.62 28,581.21
8 09/21/2028 56,588.83 26,578.56 30,010.27 501,560.97
2028 Totals 56,588.83 26,578.56 30,010.27
9 09/21/2029 56,588.83 25,078.05 31,510.78 470,050.19
Page 1 of 3
02/08/2022 6:03 PM
Hartshorn Marina Village
Date Payment Interest Principal Balance
2029 Totals 56,588.83 25,078.05 31,510.78
10 09/21/2030 56,588.83 23,502.51 33,086.32 436,963.87
2030 Totals 56,588.83 23,502.51 33,086.32
11 09/21/2031 56,588.83 21,848.19 34,740.64 402,223.23
2031 Totals 56,588.83 21,848.19 34,740.64
12 09/21/2032 56,588.83 20,111.16 36,477.67 365,745.56
2032 Totals 56,588.83 20,111.16 36,477.67
13 09/21/2033 56,588.83 18,287.28 38,301.55 327,444.01
2033 Totals 56,588.83 18,287.28 38,301.55
14 09/21/2034 56,588.83 16,372.20 40,216.63 287,227.38
2034 Totals 56,588.83 16,372.20 40,216.63
15 09/21/2035 56,588.83 14,361.37 42,227.46 244,999.92
2035 Totals 56,588.83 14,361.37 42,227.46
16 09/21/2036 56,588.83 12,250.00 44,338.83 200,661.09
2036 Totals 56,588.83 12,250.00 44,338.83
17 09/21/2037 56,588.83 10,033.05 46,555.78 154,105.31
2037 Totals 56,588.83 10,033.05 46,555.78
18 09/21/2038 56,588.83 7,705.27 48,883.56 105,221.75
2038 Totals 56,588.83 7,705.27 48,883.56
19 09/21/2039 56,588.83 5,261.09 51,327.74 53,894.01
2039 Totals 56,588.83 5,261.09 51,327.74
20 09/21/2040 56,588.83 2,694.82 53,894.01 0.00
2040 Totals 56,588.83 2,694.82 53,894.01
Grand Totals 1,018,598.94 418,598.94 600,000.00
Last interest amount increased by 0.12 due to rounding.
Page 2 of 3
02/08/2022 6:03 PM
Hartshorn Marina Village
ANNUAL FINANCE Amount Financed Total of Payments
PERCENTAGE CHARGE
RATE The amount of credit The amount you will
The dollar amount the provided to you or on have paid after you
credit will cost you. your behalf. have made all
The cost of your credit
payments as
as a yearly rate.
scheduled.
5.000% $418,598.94 $600,000.00 $1,018,598.94
Page 3 of 3
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Deficit Elimination Plan – BRA –
Hartshorn Village
Submitted By: Kenneth Grant Department: Finance
Brief Summary: To approve the Deficit Elimination plan and resolution for the Brownfield
Redevelopment Authority (combined) and direct staff to submit plan to the State of Michigan
Detailed Summary: At June 30, 2021 the Brownfield Redevelopment Authority (combined) had a
$567,040 deficit. Act 275 of Public Acts of 1980 requires the City to formulate a deficit elimination
plan and submit it to the Michigan Department of Treasury. The deficit elimination plan and
resolution for the Brownfield Redevelopment Authority are attached.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the deficit elimination resolution for the Brownfield
Redevelopment Authority Fund.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
DEFICIT ELIMINATION PLAN
City of Muskegon
State ID Number 61-2020
Brownfield Redevelopment Authority (Hartshorn Village)
February 22, 2022
At June 30, 2021 the City of Muskegon’s Brownfield Redevelopment Authority (combined) had a deficit of $567,040.
Last year the Hartshorn Village Brownfield received $600,000 from the General Fund to cover the initial costs of the
infrastructure. The $600,000 came from our 2020 Capital Improvement Bond. The General Fund is set up to pay off the
bond debt. However, the Hartshorn Village Brownfield must pay back the $600,000 plus interest to the General Fund.
The $600,000 City expenses will be the first repaid via Brownfield tax capture. The official Brownfield
Repayment allows us to move the $600,000 from a current liability to a long-term liability (advances from primary
government).
CITY OF MUSKEGON
BROWNFIELD REDEVLOPMENT AUTHORITIES
CORRECTED
FY2020-21 FY2021-22
ASSETS
Cash and Investments $ 105,942 100,000
Total Assets $ 105,942 $ 100,000
LIABILITIES
Accounts Payable $ 20,550 $ 20,000
Accrued Liabilities
Due to primary government $ 652,132 $ 50,000
Advances from primary government $ 593,307 $ 1,110,000
Total Liabilities $ 1,265,989 $ 1,180,000
FUND BALANCES (DEFICIT)
Unassigned $ (1,160,047) $ (1,080,000)
Total Liabilities and fund balances $ 105,942 $ 100,000
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO.______________
WHEREAS City of Muskegon’s Brownfield Redevelopment Authority (combined) had a
$567,040 deficit balance June 30, 2021; and
WHEREAS, Act 275 of the Public Acts of 1980 requires that a Deficit Elimination Plan
be formulated by the local unit of government and filed with the Michigan Department of
Treasury:
NOW THEREFORE, IT IS RESOLVED that the City Commission of the City of
Muskegon adopts the following as the City of Muskegon’s Brownfield Redevelopment
Authority (combined) Deficit Elimination Plan.
CITY OF MUSKEGON
BROWNFIELD REDEVLOPMENT AUTHORITIES
CORRECTED
FY2020-21 FY2021-22
ASSETS
Cash and Investments $ 105,942 100,000
Total Assets $ 105,942 $ 100,000
LIABILITIES
Accounts Payable $ 20,550 $ 20,000
Accrued Liabilities
Due to primary government $ 652,132 $ 50,000
Advances from primary government $ 593,307 $ 1,110,000
Total Liabilities $ 1,265,989 $ 1,180,000
FUND BALANCES (DEFICIT)
Unassigned $ (1,160,047) $ (1,080,000)
Total Liabilities and fund balances $ 105,942 $ 100,000
Adopted this _______day of February 2022
By:__________________________________
Ken Johnson
Its Mayor
By:__________________________________
Ann Marie Meisch, MMC
Its Clerk
CERTIFICATION
This resolution was adopted at a regular meeting of the City commission, held on
February 22, 2022. The meeting was properly held and noticed pursuant to Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1967.
CITY OF MUSKEGON
By: ________________________________
Ann Marie Meisch, MMC
City Clerk
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Development Agreement Williams
Construction
Submitted By: Jake Eckholm Department: Dev. Svcs/Economic Dev.
Brief Summary: Staff is seeking approval of the attached development agreement.
Detailed Summary. Williams Construction was selected as one of four contractors for the ARPA-
funded infill housing program. The goal of the program is to continue in-filling vacant lots in our core
neighborhoods while ensuring the housing units are offered in a more-affordable manner.
There is not crystal-clear guidance from the US Treasury related to required level of affordability, but
we expect that a portion of the homes will be designated to families with incomes between 60% and
80% of AMI. The City will maintain ownership of the infill sites throughout the construction process,
and will control the sale process. The City Commission will vote on each formal sale at the time of
the sale – similarly to the Midtown Square projects. This will allow the City Commission more
discretion in determining the depth of the affordability component of the program.
The most notable change from the model agreement previously presented to the City Commission
in 2021 is the anticipated cost per house. We have raised the maximum to $235,000 to address
increases in materials.
Access to housing at all levels of affordability is difficult now. We are in a prime position to lead the
county in new housing, and I recommend that we do so. Note that the addresses are not included.
There are hundreds of addresses to select from, but many were acquired via the tax foreclosure
process and have title issues to address. Staff feels comfortable working with the builder to identify
the most-appropriate building sites that have clear title.
Amount Requested: $750,000 Amount Budgeted: N/A
Fund(s) or Account(s): State/Federal Grants Fund(s) or Account(s): N/A
Recommended Motion: Approve the agreement and authorize the City Manager to sign.
WEST UBAN PROPERTIES ARP INFILL HOUSING DEVELOPMENT AGREEMENT
RESIDENTIAL CONSTRUCTION AGREEMENT
This ARP InFill Housing Development Agreement (the “Agreement”) is between the
City of Muskegon, of 933 Terrace Street, Muskegon, MI 49441 (“Owner”) and Williams
Construction, a Michigan Sole Proprietorship, whose address is 1482 Morgan Street, Muskegon,
Michigan 49442 (Builder”).
Background
Builder and Owner agree that Builder shall construct 6 single family residences (the
"Residences") for Owner on the terms and conditions set forth in this Agreement and in the
general conditions attached as Exhibit A ("General Conditions"). Builder will be paid by Owner
from funds obtained by Owner pursuant to the American Rescue Plan (“ARP Funds”). As such,
there are limitations on potential Buyers of the residences exist and will be more formally
declared by the federal government in the future.
The parties agree as follows:
1. Building Site. Owner owns the building sites located in the City of Muskegon
and described on Exhibit B (the "Properties"). Owner has agreed to hire Builder to build the
Residences on the Properties.
2. The Residence. Builder and City staff shall agree, in writing, as to the materials, floor
plan design, and all cost impacting details, and the construction cost for each of the Properties
attached as Exhibit B. Each Property shall have a not to exceed construction cost of $235,000.
Allowances provided for certain items, such as carpeting, light fixtures, window treatments, etc.,
and shall be set forth in the above referenced document. for The Price may change in the
event Builder and Owner agree to change orders, modifications or extras as defined below.
Builder shall build the Residences in accordance with the mutually agreed to plans and
specifications. Any features of the Residence that are not explicitly described in the Plans shall
be determined in the sole discretion of Builder. For example, unless specifically set forth on the
Plans, the location of all electrical outlets shall be as determined by Builder.
3. Price. The price for constructing the Residences as determined in Paragraph 2
above shall be paid one half by Owner and one half by Builder. As to Owner’s obligations,
Owner shall establish the “ARP In Fill Housing Fund – Williams ” (“Fund”) and deposit
$750,000 into that Fund. All monies owed by Owner to Builder pursuant to this Agreement shall
be paid from the Fund. Owner shall have no obligation to pay any monies to Builder pursuant to
this Agreement from any other source of funds. Upon termination of this Agreement or
construction of all Residences provided for pursuant this Agreement, all monies left in the Fund
shall revert to the Owner.
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In the event the actual cost of any allowance exceeds the estimated amount ("Additional
Allowance Amount"), Owner shall pay the Additional Allowance Amount within 30 days of
Builder's invoice. No Additional Allowance Amount shall be billed through Builder without the
express prior written consent of Builder.
4. Costs Included. The Price shall include the cost of the building permits and
materials purchased and installed in the Residences. Owner shall waive or pay for all water and
sewer connection fees and Builder shall be responsible for all other fees, specifically including
mechanical, plumbing, electrical and any other construction and building permit fees.
5. Payment of the Price. Builder shall be responsible for 50% of the purchase price
for each residence. As to the remaining 50% of the purchase price Owner shall pay in
accordance with the following schedule ("Payment Schedule"):
a. Foundation installed................................. 25% of the Owner’s portion of the Price
b Roof sheeting installed.............................35% of the Owner’s portion of the Price
c Plaster or drywall installed....................... 30% of the Owner’s portion of the Price
d Substantial completion/certificate of occupancy.......................Balance due in full
6. Modifications/Extras. No modifications to the Plans ("Modifications") or
requests for additional construction ("Extras") the cost of which exceeds $200 shall be binding
upon either party, unless the Modifications and/or Extras are set forth on a written change order
that is signed by Builder and City Manager for Owner ("Change Order"). The Change Order
must provide a detailed description of the Modifications and/or Extras and the cost or credit to be
charged. In those instances where a Change Order increases or decreases the Price by more than
$200 ("Adjusted Price"), the Adjusted Price shall be paid according to the remaining portion of
the Payment Schedule.
7. Minor Modifications. Builder and Owner may from time to time agree on minor
modifications, the cost for which is less than $200 ("Minor Modifications"). Minor
Modifications may be made either in writing or by a verbal agreement between Builder and City
Manager for Owner. The cost or credit for Minor Modifications shall be added to or credited
against the Price and paid according to the remaining portion of the Payment Schedule.
8. Possession. Owner shall be entitled to possession of the Residence upon payment
of the Price or Adjusted Price in full. Upon payment in full, Builder shall deliver to Owner a
completed sworn statement and a full unconditional waiver of lien. Payment of the Price or
Adjusted Price by Owner shall constitute the acceptance of the Residence and a waiver of all
known claims of Owner against Builder.
9. Failure to Pay. If Owner fails to make a payment within 30 days from the date
due, Builder may, upon written notice to Owner, terminate this Agreement and recover from
Owner the Owner’s portion of the Price if the Residence is complete or, if the Residence is not
complete, the 50% of the fair market value for all work performed by Builder and any laborer or
sub-contractor of Builder and 50% of the actual cost of all materials provided and for any loss
sustained by Builder in connection with the construction of the Residence, including, but not
limited to, lost profits in connection. Notwithstanding the foregoing, Builder, in the event Owner
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fails to make the required payments, reserves the right to complete the Residence and Owner
shall pay 50% of the Price in full.
10. Estimated Completion Date. Builder shall commence construction of the
Residences within 60 days from the date this Agreement is fully executed. ("Commencement
Date"). Builder shall endeavor to complete the Residences within 365 days of the
Commencement Date ("Completion Date"). Provided, that both the Commencement Date and
the Completion Date may be extended as a result of circumstances beyond the control of Builder,
including, but not limited to, delays caused by suppliers or subcontractors, delays for utility
hook-ups, Acts of God, labor disputes, governmental inspections, regulations, or permit
processes, material back orders, Owner requests for Change Orders, fire, injury or disability to
Builder or weather.
11. Sale of Properties. Owner is using ARP funds for its portion of the construction
costs. As such, Owner shall comply with all applicable rules implementing the ARP program, in
particular all Buyers shall have income levels under 120% of the Area Median Income (AMI) for
Muskegon County, as defined by the Michigan State Housing Development Authority
(“MSHDA”). Owner shall be responsible for verifying Buyer’s eligibility and income to ensure
Buyer’s qualifications to participate as a Buyer.
Owner shall maintain ownership of the Properties described in Exhibit B during
the construction and marketing period. Once Builder has been reimbursed its portion of the
Construction costs of a Property, City may sell the Property free and clear of any obligations
imposed by this Agreement.
12. Sale Proceeds. Upon sale of a Property to the extent that Builder has not already
been reimbursed its cost of construction, Builder shall be reimbursed its cost of construction.
Owner may use the balance of the proceeds for any purpose or deposit in the City of Muskegon
Public Improvement Fund or any other fund so specified by the Muskegon City Commission.
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13. General Conditions. This Agreement is subject to and includes all of the General
Conditions attached to this Agreement as Exhibit A and Warranty attached to this Agreement as
Exhibit C.
Builder - ______________________
Dated: ___________ ___, ______ ____________________________________
Owner -
Dated: ____________ ___, _______ ____________________________________
Dated: ____________ ___, _______ ____________________________________
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EXHIBIT A
GENERAL CONDITIONS
1. Evidence of Credit. Builder's obligation to commence construction of the Residences is
expressly conditioned on Owner depositing $750,000 into the ARP In-Fill Housing Fund – Williams
Construction ("Credit Evidence"). Payments required by the Payment Schedule shall be made by Owner
directly to Builder within five days after presentation of a proper partial unconditional waiver of lien,
request for payment, and sworn statements before making payments at each stage of completion as
required above. Builder shall not under any circumstances be required to waive any future lien rights that
it may have by reason of work and/or materials thereafter furnished.
2. Builder's Warranties. Refer to attached Exhibit C “Limited Warranty.”
3. Owner's Warranties. Owner covenants and warrants that the Property is owned by
Owner in fee simple, free and clear of all liens. Owner shall locate the exact location of the Residence on
the Property. All corners of the Property and the Residence shall be clearly marked with surveyor stakes.
Owner covenants and agrees that such location is in compliance with all applicable federal, state and local
rules and regulations, including, but not limited to, building restrictions, set-back requirements, sand dune
and wetland laws, and regulations and zoning ordinances.
4. License. Builder is a residential builder and a residential maintenance and alteration
contractor and is required to be licensed under article 24 of Act 299 of the Public Acts of 1980, as
amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws. An electrician is
required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being sections 338.881
to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under Act No. 266 of
the Public Acts of 1929, as amended being sections 338.901 to 338.917 of the Michigan Compiled Laws.
Builder is licensed by the State of Michigan as a licensed Michigan Contractor and maintains its license
in good standing. Builder's License and ID numbers are and ,
respectively.
5. Laws, Ordinances and Regulations. In connection with the construction of the
Residence, Builder shall meet and comply with all applicable laws, ordinances, and regulations.
6. Notice of Commencement. Owner shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.
7. Diligent Pursuit. Builder shall diligently pursue its obligations under this Agreement. If
Owner believes that Builder has failed to comply with this paragraph, it shall provide Builder not less
than 15 days written notice of such non-compliance, a list of Owner's specific complaints, and a
reasonable time within which Builder shall cure any such reasonable complaints. Until Owner fully
complies with the notice provisions set forth in this paragraph, Owner may not replace Builder with any
other party to complete construction and may not deduct from the Price any amount paid by Owner to
complete construction in accordance with the Plans.
8. Insurance. Builder shall carry public liability insurance with coverage limits not less
than $300,000 single-limit coverage and worker's compensation insurance in an amount not less than the
statutory minimum. Such policies shall name Owner and their mortgagee as additional named insured.
Builder shall provide Owner with evidence of such insurance upon request. Owner and Builder waive all
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rights against each other for damages caused by fire or other perils to the extent covered by insurance
provided under this paragraph.
9. Miscellaneous.
a. Applicable Law. This Agreement is executed in, shall be governed by, and
construed and interpreted in accordance with the laws of the State of Michigan.
b. Entire Agreement. This writing shall constitute the entire Agreement, and shall
supersede any other Agreements, written or oral, that may have been made or entered into by the
parties with respect to the subject matter hereof and shall not be modified or amended, except in a
subsequent writing signed by the party against whom enforcement thereof is sought.
c. Binding Effect. This Agreement shall be binding upon, inure to the benefit of,
and be enforceable by the parties and their respective legal representatives, successors, and
assigns.
d. Full Execution. This Agreement requires the signature of both parties. Until
fully executed on a single copy or in counterparts, this Agreement is of no binding force or effect,
and if not fully executed, this Agreement is void.
e. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original as against any party whose signature appears thereon,
and all of which together shall constitute one and the same instrument. This Agreement shall
become binding upon the parties when one or more counterparts, individually or taken together,
shall bear the signatures of all parties.
f. Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of such provision on any other occasion or a waiver by such
party of any other provision of the Agreement.
g. Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions shall not in any way be impaired or affected.
h. No Discrimination. Discrimination on the basis of religion, race, creed, color,
national origin, age, sex, marital status, or handicapped condition by either party in respect to the
construction of the Residence is prohibited.
i. Assignment or Delegation. Neither Builder nor Owner may assign all or any part
of this Agreement. Provided, that Builder may delegate all or any part of its obligations to
perform the services under this Agreement, to any persons or entities that Builder, in its sole
discretion, deems appropriate, including sub-contractors. Such delegation shall be at the sole
expense of Builder unless otherwise provided.
j. Notices. All required or permitted written notices shall be deemed effective and
duly given when: (i) personally delivered; (ii) sent by telephone facsimile; (iii) one day after
depositing in the custody of a nationally recognized receipted overnight delivery service; or (iv)
two days after posting in the U.S. first class, registered or certified mail, postage prepaid, to the
recipient party at the address as set forth at the outset of this Agreement, or to such other address
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as the recipient party shall have furnished to the sender in accordance with the requirements for
the giving of notice.
k. Pronouns. For convenience, Owner has been referred to this Agreement
sometimes in the singular and at other times in the plural.
Builder -
Dated: ___________ ___, _____ ____________________________________
Owner -
Dated: ___________ ___, _____ ____________________________________
Dated: ___________ ___, _____ ____________________________________
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EXHIBIT B
Property Addresses, Plans and Specifications, and Construction Cost
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EXHIBIT C
LIMITED WARRANTY
These are additional terms to the New Home Construction Agreement between the undersigned Buyer
and Owner. At the time of closing, Owner shall enjoy a limited warranty on the New Home which
contains the following terms:
LIMITED WARRANTY
NOTE: CONSEQUENTIAL AND INCIDENTAL DAMAGES ARE EXCLUDED AND THERE ARE
LIMITATIONS IN THE DURATION OF IMPLIED WARRANTIES.
1. Term. The terms of the various coverages of this warranty begin on the date of closing or the date of
the Certificate of Occupancy issued by the Building Department, whichever comes first.
2. Coverage. Builder warrants that all construction related to the New Home has been in substantial
conformity with the plans and specifications and change orders for the New Home under the New Home
Construction Agreement. Within one (1) year from the date of certificate of occupancy, Builder will
repair or replace, at the Builder's option, any latent defects in material or workmanship of the New Home.
All workmanship and materials shall satisfy the standards of construction described in the current version
of The Residential Construction Performance Guidelines -- For Professional Builders and Remodelers,
published by the National Association of Home Builders (the "Guidelines"). A latent defect is defined as
one which was not apparent/ascertainable at the time of occupancy. The owner agrees to accept a
reasonable match in any repair or replacement in the event the original item is no longer available. If any
latent defects in material or workmanship results in water, mold, insect or animal infestation, or damage
from any other agent, Builder’s responsibility will be limited to repairing or replacing the portions of the
dwelling which allowed water, mold, insects, animals, or other agents to enter or occupy the New Home.
Builder is not responsible for any damages caused by water, mold, insect or animal infestation, or damage
by some other agent, that may be associated with defects in our construction, to include but not be limited
to property damage, personal injury, loss of income, emotional distress, death, loss of use, loss of value,
and adverse health effects, or any other effects.
3. Manufacturers' Warranties. Builder assigns and passes through to Owner, to the extent they are
assignable, the manufacturers' warranties on all appliances and equipment. The following are examples of
such appliances and equipment, though not every home includes all of these items and some homes may
include appliances or equipment not in this list: refrigerator, range, space heater, washing machine,
dishwasher, garbage disposal, ventilating, attic fan, and air conditioner.
4. Exclusions from Coverage. WE DO NOT ASSUME RESPONSIBILITY FOR ANY OF THE
FOLLOWING, ALL OF WHICH ARE EXCLUDED FROM THE COVERAGE OF THIS LIMITED
WARRANTY:
(a) Consequential or incidental damages, including but not limited to claims asserting a diminution in the
value of the dwelling, or damages arising from the presence of insect or animal infestation, mold, or other
biological agents in or about the dwelling.
(b) Defects in appliances and equipment that are covered by manufacturers' warranties. (We have
assigned these manufacturers' warranties to you, to the extent they are assignable, and you should follow
the procedures in these warranties if defects appear in these items.)
(c) Damage resulting from fires, floods, storms, electrical malfunctions, accidents, acts of God; or
damages from alterations, misuse or abuse of the covered items by any person; or damage resulting from
the owner's failure to observe any operating instructions furnished by the builder at the time of
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installation; or damage resulting from a malfunction of telephone, gas company, power company, or
water company equipment or lines.
(d) Damage due to ordinary wear and tear, abusive use, or lack of proper maintenance of your home, or
animals/pets.
(e) Defects that are the results of characteristics common to the materials used, such as (but not limited to)
warping and deflection of wood, fading, chalking, and checking of paint due to sunlight; cracks due to
drying and curing of concrete, stucco, plaster, bricks, and masonry; drying, shrinking and cracking of
caulking and weather-stripping.
(f) Defects in items purchased or installed by you or anyone else except us or, if requested by us, our
subcontractors.
(g) Work done by you or anyone else except us or, if requested by us, our subcontractors.
(h) Conditions resulting from condensation on, or expansion or contraction of, materials.
(i) Paint applied over newly plastered interior walls.
5. No Other Warranties. This Limited Warranty is the only express warranty given by Builder. Implied
warranties, including but not limited to warranties of merchantability, fitness for a particular purpose,
habitability, and good workmanship are expressly excluded, or to the extent not excludable by law,
limited to the warranty period set forth above. This Limited Warranty gives you specific legal rights, and
you may also have other rights.
6. Claims Procedure. If a defect appears that you think is covered by this Limited Warranty, you must
write a letter describing it to our office and email it to us. You must tell us in your letter what times
during the day you will be at home, so that we can schedule service calls appropriately. If delay will cause
extra damage (e.g., if a pipe has burst) telephone us. Only emergency reports will be taken by phone.
7. Repairs. Upon receipt of your written report of a defect, if the defective item is covered by this
warranty, we will repair or replace it at no charge to you within 60 days (longer if weather conditions,
labor problems, or material shortages cause delays). The work will be done by us or subcontractors
chosen by us. The choice between repair or replacement is ours.
8. Not Transferable. This Limited Warranty is extended to you only if you are the first purchaser of the
home. When the first purchaser sells the home or moves out of it, this Limited Warranty automatically
terminates. It is not transferable to subsequent purchasers of the home.
9. This is the Only Warranty Given by Builder. Owner acknowledges that he/she/they has/have
thoroughly examined the property to be conveyed and relies solely on his judgment in signing this
Limited Warranty, and that there are no guarantees, warranties, understandings, or representations made
by Builder, or any representatives of Builder, that are not set forth in this document.
BUILDER OWNER
_______________________________ ___________________________________
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Development Agreement LRS
Enterprises
Submitted By: Jake Eckholm Department: Dev. Svcs/Economic Dev.
Brief Summary: Staff is seeking approval of the attached development agreement.
Detailed Summary. LRS Enterprises was selected as one of four contractors for the ARPA-funded
infill housing program. The goal of the program is to continue in-filling vacant lots in our core
neighborhoods while ensuring the housing units are offered in a more-affordable manner.
There is not crystal-clear guidance from the US Treasury related to required level of affordability, but
we expect that a portion of the homes will be designated to families with incomes between 60% and
80% of AMI. The City will maintain ownership of the infill sites throughout the construction process,
and will control the sale process. The City Commission will vote on each formal sale at the time of
the sale – similarly to the Midtown Square projects. This will allow the City Commission more
discretion in determining the depth of the affordability component of the program.
The most notable change from the model agreement previously presented to the City Commission
in 2021 is the anticipated cost per house. We have raised the maximum to $235,000 to address
increases in materials.
Access to housing at all levels of affordability is difficult now. We are in a prime position to lead the
county in new housing, and I recommend that we do so. Note that the addresses are not included.
There are hundreds of addresses to select from, but many were acquired via the tax foreclosure
process and have title issues to address. Staff feels comfortable working with the builder to identify
the most-appropriate building sites that have clear title.
Amount Requested: $750,000 Amount Budgeted: N/A
Fund(s) or Account(s): State/Federal Grants Fund(s) or Account(s): N/A
Recommended Motion: Approve the agreement and authorize the City Manager to sign.
LRS ENTERPRISES ARP INFILL HOUSING DEVELOPMENT AGREEMENT
RESIDENTIAL CONSTRUCTION AGREEMENT
This ARP InFill Housing Development Agreement (the “Agreement”) is between the
City of Muskegon, of 933 Terrace Street, Muskegon, MI 49441 (“Owner”) and LRS Enterprises,
a Michigan Limited Liability Company, whose address is 525 South Dangl Road, Muskegon,
Michigan 49442 (Builder”).
Background
Builder and Owner agree that Builder shall construct 6 single family residences (the
"Residences") for Owner on the terms and conditions set forth in this Agreement and in the
general conditions attached as Exhibit A ("General Conditions"). Builder will be paid by Owner
from funds obtained by Owner pursuant to the American Rescue Plan (“ARP Funds”). As such,
there are limitations on potential Buyers of the residences exist and will be more formally
declared by the federal government in the future.
The parties agree as follows:
1. Building Site. Owner owns the building sites located in the City of Muskegon
and described on Exhibit B (the "Properties"). Owner has agreed to hire Builder to build the
Residences on the Properties.
2. The Residence. Builder and City staff shall agree, in writing, as to the materials, floor
plan design, and all cost impacting details, and the construction cost for each of the Properties
attached as Exhibit B. Each Property shall have a not to exceed construction cost of $235,000.
Allowances provided for certain items, such as carpeting, light fixtures, window treatments, etc.,
and shall be set forth in the above referenced document. for The Price may change in the
event Builder and Owner agree to change orders, modifications or extras as defined below.
Builder shall build the Residences in accordance with the mutually agreed to plans and
specifications. Any features of the Residence that are not explicitly described in the Plans shall
be determined in the sole discretion of Builder. For example, unless specifically set forth on the
Plans, the location of all electrical outlets shall be as determined by Builder.
3. Price. The price for constructing the Residences as determined in Paragraph 2
above shall be paid one half by Owner and one half by Builder. As to Owner’s obligations,
Owner shall establish the “ARP In Fill Housing Fund – LRS ” (“Fund”) and deposit $750,000
into that Fund. All monies owed by Owner to Builder pursuant to this Agreement shall be paid
from the Fund. Owner shall have no obligation to pay any monies to Builder pursuant to this
Agreement from any other source of funds. Upon termination of this Agreement or construction
of all Residences provided for pursuant this Agreement, all monies left in the Fund shall revert to
the Owner.
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In the event the actual cost of any allowance exceeds the estimated amount ("Additional
Allowance Amount"), Owner shall pay the Additional Allowance Amount within 30 days of
Builder's invoice. No Additional Allowance Amount shall be billed through Builder without the
express prior written consent of Builder.
4. Costs Included. The Price shall include the cost of the building permits and
materials purchased and installed in the Residences. Owner shall waive or pay for all water and
sewer connection fees and Builder shall be responsible for all other fees, specifically including
mechanical, plumbing, electrical and any other construction and building permit fees.
5. Payment of the Price. Builder shall be responsible for 50% of the purchase price
for each residence. As to the remaining 50% of the purchase price Owner shall pay in
accordance with the following schedule ("Payment Schedule"):
a. Foundation installed................................. 25% of the Owner’s portion of the Price
b Roof sheeting installed.............................35% of the Owner’s portion of the Price
c Plaster or drywall installed....................... 30% of the Owner’s portion of the Price
d Substantial completion/certificate of occupancy.......................Balance due in full
6. Modifications/Extras. No modifications to the Plans ("Modifications") or
requests for additional construction ("Extras") the cost of which exceeds $200 shall be binding
upon either party, unless the Modifications and/or Extras are set forth on a written change order
that is signed by Builder and City Manager for Owner ("Change Order"). The Change Order
must provide a detailed description of the Modifications and/or Extras and the cost or credit to be
charged. In those instances where a Change Order increases or decreases the Price by more than
$200 ("Adjusted Price"), the Adjusted Price shall be paid according to the remaining portion of
the Payment Schedule.
7. Minor Modifications. Builder and Owner may from time to time agree on minor
modifications, the cost for which is less than $200 ("Minor Modifications"). Minor
Modifications may be made either in writing or by a verbal agreement between Builder and City
Manager for Owner. The cost or credit for Minor Modifications shall be added to or credited
against the Price and paid according to the remaining portion of the Payment Schedule.
8. Possession. Owner shall be entitled to possession of the Residence upon payment
of the Price or Adjusted Price in full. Upon payment in full, Builder shall deliver to Owner a
completed sworn statement and a full unconditional waiver of lien. Payment of the Price or
Adjusted Price by Owner shall constitute the acceptance of the Residence and a waiver of all
known claims of Owner against Builder.
9. Failure to Pay. If Owner fails to make a payment within 30 days from the date
due, Builder may, upon written notice to Owner, terminate this Agreement and recover from
Owner the Owner’s portion of the Price if the Residence is complete or, if the Residence is not
complete, the 50% of the fair market value for all work performed by Builder and any laborer or
sub-contractor of Builder and 50% of the actual cost of all materials provided and for any loss
sustained by Builder in connection with the construction of the Residence, including, but not
limited to, lost profits in connection. Notwithstanding the foregoing, Builder, in the event Owner
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fails to make the required payments, reserves the right to complete the Residence and Owner
shall pay 50% of the Price in full.
10. Estimated Completion Date. Builder shall commence construction of the
Residences within 60 days from the date this Agreement is fully executed. ("Commencement
Date"). Builder shall endeavor to complete the Residences within 365 days of the
Commencement Date ("Completion Date"). Provided, that both the Commencement Date and
the Completion Date may be extended as a result of circumstances beyond the control of Builder,
including, but not limited to, delays caused by suppliers or subcontractors, delays for utility
hook-ups, Acts of God, labor disputes, governmental inspections, regulations, or permit
processes, material back orders, Owner requests for Change Orders, fire, injury or disability to
Builder or weather.
11. Sale of Properties. Owner is using ARP funds for its portion of the construction
costs. As such, Owner shall comply with all applicable rules implementing the ARP program, in
particular all Buyers shall have income levels under 120% of the Area Median Income (AMI) for
Muskegon County, as defined by the Michigan State Housing Development Authority
(“MSHDA”). Owner shall be responsible for verifying Buyer’s eligibility and income to ensure
Buyer’s qualifications to participate as a Buyer.
Owner shall maintain ownership of the Properties described in Exhibit B during
the construction and marketing period. Once Builder has been reimbursed its portion of the
Construction costs of a Property, City may sell the Property free and clear of any obligations
imposed by this Agreement.
12. Sale Proceeds. Upon sale of a Property to the extent that Builder has not already
been reimbursed its cost of construction, Builder shall be reimbursed its cost of construction.
Owner may use the balance of the proceeds for any purpose or deposit in the City of Muskegon
Public Improvement Fund or any other fund so specified by the Muskegon City Commission.
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13. General Conditions. This Agreement is subject to and includes all of the General
Conditions attached to this Agreement as Exhibit A and Warranty attached to this Agreement as
Exhibit C.
Builder - ______________________
Dated: ___________ ___, ______ ____________________________________
Owner -
Dated: ____________ ___, _______ ____________________________________
Dated: ____________ ___, _______ ____________________________________
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EXHIBIT A
GENERAL CONDITIONS
1. Evidence of Credit. Builder's obligation to commence construction of the Residences is
expressly conditioned on Owner depositing $750,000 into the ARP In-Fill Housing Fund – LRS
Construction ("Credit Evidence"). Payments required by the Payment Schedule shall be made by Owner
directly to Builder within five days after presentation of a proper partial unconditional waiver of lien,
request for payment, and sworn statements before making payments at each stage of completion as
required above. Builder shall not under any circumstances be required to waive any future lien rights that
it may have by reason of work and/or materials thereafter furnished.
2. Builder's Warranties. Refer to attached Exhibit C “Limited Warranty.”
3. Owner's Warranties. Owner covenants and warrants that the Property is owned by
Owner in fee simple, free and clear of all liens. Owner shall locate the exact location of the Residence on
the Property. All corners of the Property and the Residence shall be clearly marked with surveyor stakes.
Owner covenants and agrees that such location is in compliance with all applicable federal, state and local
rules and regulations, including, but not limited to, building restrictions, set-back requirements, sand dune
and wetland laws, and regulations and zoning ordinances.
4. License. Builder is a residential builder and a residential maintenance and alteration
contractor and is required to be licensed under article 24 of Act 299 of the Public Acts of 1980, as
amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws. An electrician is
required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being sections 338.881
to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under Act No. 266 of
the Public Acts of 1929, as amended being sections 338.901 to 338.917 of the Michigan Compiled Laws.
Builder is licensed by the State of Michigan as a licensed Michigan Contractor and maintains its license
in good standing. Builder's License and ID numbers are and ,
respectively.
5. Laws, Ordinances and Regulations. In connection with the construction of the
Residence, Builder shall meet and comply with all applicable laws, ordinances, and regulations.
6. Notice of Commencement. Owner shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.
7. Diligent Pursuit. Builder shall diligently pursue its obligations under this Agreement. If
Owner believes that Builder has failed to comply with this paragraph, it shall provide Builder not less
than 15 days written notice of such non-compliance, a list of Owner's specific complaints, and a
reasonable time within which Builder shall cure any such reasonable complaints. Until Owner fully
complies with the notice provisions set forth in this paragraph, Owner may not replace Builder with any
other party to complete construction and may not deduct from the Price any amount paid by Owner to
complete construction in accordance with the Plans.
8. Insurance. Builder shall carry public liability insurance with coverage limits not less
than $300,000 single-limit coverage and worker's compensation insurance in an amount not less than the
statutory minimum. Such policies shall name Owner and their mortgagee as additional named insured.
Builder shall provide Owner with evidence of such insurance upon request. Owner and Builder waive all
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rights against each other for damages caused by fire or other perils to the extent covered by insurance
provided under this paragraph.
9. Miscellaneous.
a. Applicable Law. This Agreement is executed in, shall be governed by, and
construed and interpreted in accordance with the laws of the State of Michigan.
b. Entire Agreement. This writing shall constitute the entire Agreement, and shall
supersede any other Agreements, written or oral, that may have been made or entered into by the
parties with respect to the subject matter hereof and shall not be modified or amended, except in a
subsequent writing signed by the party against whom enforcement thereof is sought.
c. Binding Effect. This Agreement shall be binding upon, inure to the benefit of,
and be enforceable by the parties and their respective legal representatives, successors, and
assigns.
d. Full Execution. This Agreement requires the signature of both parties. Until
fully executed on a single copy or in counterparts, this Agreement is of no binding force or effect,
and if not fully executed, this Agreement is void.
e. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original as against any party whose signature appears thereon,
and all of which together shall constitute one and the same instrument. This Agreement shall
become binding upon the parties when one or more counterparts, individually or taken together,
shall bear the signatures of all parties.
f. Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of such provision on any other occasion or a waiver by such
party of any other provision of the Agreement.
g. Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions shall not in any way be impaired or affected.
h. No Discrimination. Discrimination on the basis of religion, race, creed, color,
national origin, age, sex, marital status, or handicapped condition by either party in respect to the
construction of the Residence is prohibited.
i. Assignment or Delegation. Neither Builder nor Owner may assign all or any part
of this Agreement. Provided, that Builder may delegate all or any part of its obligations to
perform the services under this Agreement, to any persons or entities that Builder, in its sole
discretion, deems appropriate, including sub-contractors. Such delegation shall be at the sole
expense of Builder unless otherwise provided.
j. Notices. All required or permitted written notices shall be deemed effective and
duly given when: (i) personally delivered; (ii) sent by telephone facsimile; (iii) one day after
depositing in the custody of a nationally recognized receipted overnight delivery service; or (iv)
two days after posting in the U.S. first class, registered or certified mail, postage prepaid, to the
recipient party at the address as set forth at the outset of this Agreement, or to such other address
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as the recipient party shall have furnished to the sender in accordance with the requirements for
the giving of notice.
k. Pronouns. For convenience, Owner has been referred to this Agreement
sometimes in the singular and at other times in the plural.
Builder -
Dated: ___________ ___, _____ ____________________________________
Owner -
Dated: ___________ ___, _____ ____________________________________
Dated: ___________ ___, _____ ____________________________________
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EXHIBIT B
Property Addresses, Plans and Specifications, and Construction Cost
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EXHIBIT C
LIMITED WARRANTY
These are additional terms to the New Home Construction Agreement between the undersigned Buyer
and Owner. At the time of closing, Owner shall enjoy a limited warranty on the New Home which
contains the following terms:
LIMITED WARRANTY
NOTE: CONSEQUENTIAL AND INCIDENTAL DAMAGES ARE EXCLUDED AND THERE ARE
LIMITATIONS IN THE DURATION OF IMPLIED WARRANTIES.
1. Term. The terms of the various coverages of this warranty begin on the date of closing or the date of
the Certificate of Occupancy issued by the Building Department, whichever comes first.
2. Coverage. Builder warrants that all construction related to the New Home has been in substantial
conformity with the plans and specifications and change orders for the New Home under the New Home
Construction Agreement. Within one (1) year from the date of certificate of occupancy, Builder will
repair or replace, at the Builder's option, any latent defects in material or workmanship of the New Home.
All workmanship and materials shall satisfy the standards of construction described in the current version
of The Residential Construction Performance Guidelines -- For Professional Builders and Remodelers,
published by the National Association of Home Builders (the "Guidelines"). A latent defect is defined as
one which was not apparent/ascertainable at the time of occupancy. The owner agrees to accept a
reasonable match in any repair or replacement in the event the original item is no longer available. If any
latent defects in material or workmanship results in water, mold, insect or animal infestation, or damage
from any other agent, Builder’s responsibility will be limited to repairing or replacing the portions of the
dwelling which allowed water, mold, insects, animals, or other agents to enter or occupy the New Home.
Builder is not responsible for any damages caused by water, mold, insect or animal infestation, or damage
by some other agent, that may be associated with defects in our construction, to include but not be limited
to property damage, personal injury, loss of income, emotional distress, death, loss of use, loss of value,
and adverse health effects, or any other effects.
3. Manufacturers' Warranties. Builder assigns and passes through to Owner, to the extent they are
assignable, the manufacturers' warranties on all appliances and equipment. The following are examples of
such appliances and equipment, though not every home includes all of these items and some homes may
include appliances or equipment not in this list: refrigerator, range, space heater, washing machine,
dishwasher, garbage disposal, ventilating, attic fan, and air conditioner.
4. Exclusions from Coverage. WE DO NOT ASSUME RESPONSIBILITY FOR ANY OF THE
FOLLOWING, ALL OF WHICH ARE EXCLUDED FROM THE COVERAGE OF THIS LIMITED
WARRANTY:
(a) Consequential or incidental damages, including but not limited to claims asserting a diminution in the
value of the dwelling, or damages arising from the presence of insect or animal infestation, mold, or other
biological agents in or about the dwelling.
(b) Defects in appliances and equipment that are covered by manufacturers' warranties. (We have
assigned these manufacturers' warranties to you, to the extent they are assignable, and you should follow
the procedures in these warranties if defects appear in these items.)
(c) Damage resulting from fires, floods, storms, electrical malfunctions, accidents, acts of God; or
damages from alterations, misuse or abuse of the covered items by any person; or damage resulting from
the owner's failure to observe any operating instructions furnished by the builder at the time of
O:\CLERK\COMMON\WORD\AGENDA ITEMS FOR NEXT MEETING\2022\022222\11B_LRS ENTERPRISES ARP AGREEMENT WITH EXHIBITS - FINAL.DOCX
installation; or damage resulting from a malfunction of telephone, gas company, power company, or
water company equipment or lines.
(d) Damage due to ordinary wear and tear, abusive use, or lack of proper maintenance of your home, or
animals/pets.
(e) Defects that are the results of characteristics common to the materials used, such as (but not limited to)
warping and deflection of wood, fading, chalking, and checking of paint due to sunlight; cracks due to
drying and curing of concrete, stucco, plaster, bricks, and masonry; drying, shrinking and cracking of
caulking and weather-stripping.
(f) Defects in items purchased or installed by you or anyone else except us or, if requested by us, our
subcontractors.
(g) Work done by you or anyone else except us or, if requested by us, our subcontractors.
(h) Conditions resulting from condensation on, or expansion or contraction of, materials.
(i) Paint applied over newly plastered interior walls.
5. No Other Warranties. This Limited Warranty is the only express warranty given by Builder. Implied
warranties, including but not limited to warranties of merchantability, fitness for a particular purpose,
habitability, and good workmanship are expressly excluded, or to the extent not excludable by law,
limited to the warranty period set forth above. This Limited Warranty gives you specific legal rights, and
you may also have other rights.
6. Claims Procedure. If a defect appears that you think is covered by this Limited Warranty, you must
write a letter describing it to our office and email it to us. You must tell us in your letter what times
during the day you will be at home, so that we can schedule service calls appropriately. If delay will cause
extra damage (e.g., if a pipe has burst) telephone us. Only emergency reports will be taken by phone.
7. Repairs. Upon receipt of your written report of a defect, if the defective item is covered by this
warranty, we will repair or replace it at no charge to you within 60 days (longer if weather conditions,
labor problems, or material shortages cause delays). The work will be done by us or subcontractors
chosen by us. The choice between repair or replacement is ours.
8. Not Transferable. This Limited Warranty is extended to you only if you are the first purchaser of the
home. When the first purchaser sells the home or moves out of it, this Limited Warranty automatically
terminates. It is not transferable to subsequent purchasers of the home.
9. This is the Only Warranty Given by Builder. Owner acknowledges that he/she/they has/have
thoroughly examined the property to be conveyed and relies solely on his judgment in signing this
Limited Warranty, and that there are no guarantees, warranties, understandings, or representations made
by Builder, or any representatives of Builder, that are not set forth in this document.
BUILDER OWNER
_______________________________ ___________________________________
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Development Agreement Kramer
Builders
Submitted By: Jake Eckholm Department: Dev. Svcs/Economic Dev.
Brief Summary: Staff is seeking approval of the attached development agreement.
Detailed Summary. Kramer Builders was selected as one of four contractors for the ARPA-funded
infill housing program. The goal of the program is to continue in-filling vacant lots in our core
neighborhoods while ensuring the housing units are offered in a more-affordable manner.
There is not crystal-clear guidance from the US Treasury related to required level of affordability, but
we expect that a portion of the homes will be designated to families with incomes between 60% and
80% of AMI. The City will maintain ownership of the infill sites throughout the construction process,
and will control the sale process. The City Commission will vote on each formal sale at the time of
the sale – similarly to the Midtown Square projects. This will allow the City Commission more
discretion in determining the depth of the affordability component of the program.
The most notable change from the model agreement previously presented to the City Commission
in 2021 is the anticipated cost per house. We have raised the maximum to $235,000 to address
increases in materials.
Access to housing at all levels of affordability is difficult now. We are in a prime position to lead the
county in new housing, and I recommend that we do so. Note that the addresses are not included.
There are hundreds of addresses to select from, but many were acquired via the tax foreclosure
process and have title issues to address. Staff feels comfortable working with the builder to identify
the most-appropriate building sites that have clear title.
Amount Requested: $470,000 Amount Budgeted: N/A
Fund(s) or Account(s): State/Federal Grants Fund(s) or Account(s): N/A
Recommended Motion: Approve the agreement and authorize the City Manager to sign.
KRAMER ARP INFILL HOUSING DEVELOPMENT AGREEMENT
RESIDENTIAL CONSTRUCTION AGREEMENT
This ARP InFill Housing Development Agreement (the “Agreement”) is between the
City of Muskegon, of 933 Terrace Street, Muskegon, MI 49441 (“Owner”) and Kramer Builders,
a Michigan Sole Proprietorship, whose address is 18173 1048th Ave, Spring Lake, MI 49456
(Builder”).
Background
Builder and Owner agree that Builder shall construct 4 single family residences (the
"Residences") for Owner on the terms and conditions set forth in this Agreement and in the
general conditions attached as Exhibit A ("General Conditions"). Builder will be paid by Owner
from funds obtained by Owner pursuant to the American Rescue Plan (“ARP Funds”). As such,
there are limitations on potential Buyers of the residences exist and will be more formally
declared by the federal government in the future.
The parties agree as follows:
1. Building Site. Owner owns the building sites located in the City of Muskegon
and described on Exhibit B (the "Properties"). Owner has agreed to hire Builder to build the
Residences on the Properties.
2. The Residence. Builder and City staff shall agree, in writing, as to the materials, floor
plan design, and all cost impacting details, and the construction cost for each of the Properties
attached as Exhibit B. Each Property shall have a not to exceed construction cost of $235,000.
Allowances provided for certain items, such as carpeting, light fixtures, window treatments, etc.,
and shall be set forth in the above referenced document. for The Price may change in the
event Builder and Owner agree to change orders, modifications or extras as defined below.
Builder shall build the Residences in accordance with the mutually agreed to plans and
specifications. Any features of the Residence that are not explicitly described in the Plans shall
be determined in the sole discretion of Builder. For example, unless specifically set forth on the
Plans, the location of all electrical outlets shall be as determined by Builder.
3. Price. The price for constructing the Residences as determined in Paragraph 2
above shall be paid one half by Owner and one half by Builder. As to Owner’s obligations,
Owner shall establish the “ARP In Fill Housing Fund – Kramer ” (“Fund”) and deposit $470,000
into that Fund. All monies owed by Owner to Builder pursuant to this Agreement shall be paid
from the Fund. Owner shall have no obligation to pay any monies to Builder pursuant to this
Agreement from any other source of funds. Upon termination of this Agreement or construction
of all Residences provided for pursuant this Agreement, all monies left in the Fund shall revert to
the Owner.
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In the event the actual cost of any allowance exceeds the estimated amount ("Additional
Allowance Amount"), Owner shall pay the Additional Allowance Amount within 30 days of
Builder's invoice. No Additional Allowance Amount shall be billed through Builder without the
express prior written consent of Builder.
4. Costs Included. The Price shall include the cost of the building permits and
materials purchased and installed in the Residences. Owner shall waive or pay for all water and
sewer connection fees and Builder shall be responsible for all other fees, specifically including
mechanical, plumbing, electrical and any other construction and building permit fees.
5. Payment of the Price. Builder shall be responsible for 50% of the purchase price
for each residence. As to the remaining 50% of the purchase price Owner shall pay in
accordance with the following schedule ("Payment Schedule"):
a. Foundation installed................................. 25% of the Owner’s portion of the Price
b Roof sheeting installed.............................35% of the Owner’s portion of the Price
c Plaster or drywall installed....................... 30% of the Owner’s portion of the Price
d Substantial completion/certificate of occupancy.......................Balance due in full
6. Modifications/Extras. No modifications to the Plans ("Modifications") or
requests for additional construction ("Extras") the cost of which exceeds $200 shall be binding
upon either party, unless the Modifications and/or Extras are set forth on a written change order
that is signed by Builder and City Manager for Owner ("Change Order"). The Change Order
must provide a detailed description of the Modifications and/or Extras and the cost or credit to be
charged. In those instances where a Change Order increases or decreases the Price by more than
$200 ("Adjusted Price"), the Adjusted Price shall be paid according to the remaining portion of
the Payment Schedule.
7. Minor Modifications. Builder and Owner may from time to time agree on minor
modifications, the cost for which is less than $200 ("Minor Modifications"). Minor
Modifications may be made either in writing or by a verbal agreement between Builder and City
Manager for Owner. The cost or credit for Minor Modifications shall be added to or credited
against the Price and paid according to the remaining portion of the Payment Schedule.
8. Possession. Owner shall be entitled to possession of the Residence upon payment
of the Price or Adjusted Price in full. Upon payment in full, Builder shall deliver to Owner a
completed sworn statement and a full unconditional waiver of lien. Payment of the Price or
Adjusted Price by Owner shall constitute the acceptance of the Residence and a waiver of all
known claims of Owner against Builder.
9. Failure to Pay. If Owner fails to make a payment within 30 days from the date
due, Builder may, upon written notice to Owner, terminate this Agreement and recover from
Owner the Owner’s portion of the Price if the Residence is complete or, if the Residence is not
complete, the 50% of the fair market value for all work performed by Builder and any laborer or
sub-contractor of Builder and 50% of the actual cost of all materials provided and for any loss
sustained by Builder in connection with the construction of the Residence, including, but not
limited to, lost profits in connection. Notwithstanding the foregoing, Builder, in the event Owner
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fails to make the required payments, reserves the right to complete the Residence and Owner
shall pay 50% of the Price in full.
10. Estimated Completion Date. Builder shall commence construction of the
Residences within 60 days from the date this Agreement is fully executed. ("Commencement
Date"). Builder shall endeavor to complete the Residences within 365 days of the
Commencement Date ("Completion Date"). Provided, that both the Commencement Date and
the Completion Date may be extended as a result of circumstances beyond the control of Builder,
including, but not limited to, delays caused by suppliers or subcontractors, delays for utility
hook-ups, Acts of God, labor disputes, governmental inspections, regulations, or permit
processes, material back orders, Owner requests for Change Orders, fire, injury or disability to
Builder or weather.
11. Sale of Properties. Owner is using ARP funds for its portion of the construction
costs. As such, Owner shall comply with all applicable rules implementing the ARP program, in
particular all Buyers shall have income levels under 120% of the Area Median Income (AMI) for
Muskegon County, as defined by the Michigan State Housing Development Authority
(“MSHDA”). Owner shall be responsible for verifying Buyer’s eligibility and income to ensure
Buyer’s qualifications to participate as a Buyer.
Owner shall maintain ownership of the Properties described in Exhibit B during
the construction and marketing period. Once Builder has been reimbursed its portion of the
Construction costs of a Property, City may sell the Property free and clear of any obligations
imposed by this Agreement.
12. Sale Proceeds. Upon sale of a Property to the extent that Builder has not already
been reimbursed its cost of construction, Builder shall be reimbursed its cost of construction.
Owner may use the balance of the proceeds for any purpose or deposit in the City of Muskegon
Public Improvement Fund or any other fund so specified by the Muskegon City Commission.
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13. General Conditions. This Agreement is subject to and includes all of the General
Conditions attached to this Agreement as Exhibit A and Warranty attached to this Agreement as
Exhibit C.
Builder - ______________________
Dated: ___________ ___, ______ ____________________________________
Owner -
Dated: ____________ ___, _______ ____________________________________
Dated: ____________ ___, _______ ____________________________________
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EXHIBIT A
GENERAL CONDITIONS
1. Evidence of Credit. Builder's obligation to commence construction of the Residences is
expressly conditioned on Owner depositing $470,000 into the ARP In-Fill Housing Fund – Kramer
Construction ("Credit Evidence"). Payments required by the Payment Schedule shall be made by Owner
directly to Builder within five days after presentation of a proper partial unconditional waiver of lien,
request for payment, and sworn statements before making payments at each stage of completion as
required above. Builder shall not under any circumstances be required to waive any future lien rights that
it may have by reason of work and/or materials thereafter furnished.
2. Builder's Warranties. Refer to attached Exhibit C “Limited Warranty.”
3. Owner's Warranties. Owner covenants and warrants that the Property is owned by
Owner in fee simple, free and clear of all liens. Owner shall locate the exact location of the Residence on
the Property. All corners of the Property and the Residence shall be clearly marked with surveyor stakes.
Owner covenants and agrees that such location is in compliance with all applicable federal, state and local
rules and regulations, including, but not limited to, building restrictions, set-back requirements, sand dune
and wetland laws, and regulations and zoning ordinances.
4. License. Builder is a residential builder and a residential maintenance and alteration
contractor and is required to be licensed under article 24 of Act 299 of the Public Acts of 1980, as
amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws. An electrician is
required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being sections 338.881
to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under Act No. 266 of
the Public Acts of 1929, as amended being sections 338.901 to 338.917 of the Michigan Compiled Laws.
Builder is licensed by the State of Michigan as a licensed Michigan Contractor and maintains its license
in good standing. Builder's License and ID numbers are and ,
respectively.
5. Laws, Ordinances and Regulations. In connection with the construction of the
Residence, Builder shall meet and comply with all applicable laws, ordinances, and regulations.
6. Notice of Commencement. Owner shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.
7. Diligent Pursuit. Builder shall diligently pursue its obligations under this Agreement. If
Owner believes that Builder has failed to comply with this paragraph, it shall provide Builder not less
than 15 days written notice of such non-compliance, a list of Owner's specific complaints, and a
reasonable time within which Builder shall cure any such reasonable complaints. Until Owner fully
complies with the notice provisions set forth in this paragraph, Owner may not replace Builder with any
other party to complete construction and may not deduct from the Price any amount paid by Owner to
complete construction in accordance with the Plans.
8. Insurance. Builder shall carry public liability insurance with coverage limits not less
than $300,000 single-limit coverage and worker's compensation insurance in an amount not less than the
statutory minimum. Such policies shall name Owner and their mortgagee as additional named insured.
Builder shall provide Owner with evidence of such insurance upon request. Owner and Builder waive all
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rights against each other for damages caused by fire or other perils to the extent covered by insurance
provided under this paragraph.
9. Miscellaneous.
a. Applicable Law. This Agreement is executed in, shall be governed by, and
construed and interpreted in accordance with the laws of the State of Michigan.
b. Entire Agreement. This writing shall constitute the entire Agreement, and shall
supersede any other Agreements, written or oral, that may have been made or entered into by the
parties with respect to the subject matter hereof and shall not be modified or amended, except in a
subsequent writing signed by the party against whom enforcement thereof is sought.
c. Binding Effect. This Agreement shall be binding upon, inure to the benefit of,
and be enforceable by the parties and their respective legal representatives, successors, and
assigns.
d. Full Execution. This Agreement requires the signature of both parties. Until
fully executed on a single copy or in counterparts, this Agreement is of no binding force or effect,
and if not fully executed, this Agreement is void.
e. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original as against any party whose signature appears thereon,
and all of which together shall constitute one and the same instrument. This Agreement shall
become binding upon the parties when one or more counterparts, individually or taken together,
shall bear the signatures of all parties.
f. Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of such provision on any other occasion or a waiver by such
party of any other provision of the Agreement.
g. Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions shall not in any way be impaired or affected.
h. No Discrimination. Discrimination on the basis of religion, race, creed, color,
national origin, age, sex, marital status, or handicapped condition by either party in respect to the
construction of the Residence is prohibited.
i. Assignment or Delegation. Neither Builder nor Owner may assign all or any part
of this Agreement. Provided, that Builder may delegate all or any part of its obligations to
perform the services under this Agreement, to any persons or entities that Builder, in its sole
discretion, deems appropriate, including sub-contractors. Such delegation shall be at the sole
expense of Builder unless otherwise provided.
j. Notices. All required or permitted written notices shall be deemed effective and
duly given when: (i) personally delivered; (ii) sent by telephone facsimile; (iii) one day after
depositing in the custody of a nationally recognized receipted overnight delivery service; or (iv)
two days after posting in the U.S. first class, registered or certified mail, postage prepaid, to the
recipient party at the address as set forth at the outset of this Agreement, or to such other address
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as the recipient party shall have furnished to the sender in accordance with the requirements for
the giving of notice.
k. Pronouns. For convenience, Owner has been referred to this Agreement
sometimes in the singular and at other times in the plural.
Builder -
Dated: ___________ ___, _____ ____________________________________
Owner -
Dated: ___________ ___, _____ ____________________________________
Dated: ___________ ___, _____ ____________________________________
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EXHIBIT B
Property Addresses, Plans and Specifications, and Construction Cost
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EXHIBIT C
LIMITED WARRANTY
These are additional terms to the New Home Construction Agreement between the undersigned Buyer
and Owner. At the time of closing, Owner shall enjoy a limited warranty on the New Home which
contains the following terms:
LIMITED WARRANTY
NOTE: CONSEQUENTIAL AND INCIDENTAL DAMAGES ARE EXCLUDED AND THERE ARE
LIMITATIONS IN THE DURATION OF IMPLIED WARRANTIES.
1. Term. The terms of the various coverages of this warranty begin on the date of closing or the date of
the Certificate of Occupancy issued by the Building Department, whichever comes first.
2. Coverage. Builder warrants that all construction related to the New Home has been in substantial
conformity with the plans and specifications and change orders for the New Home under the New Home
Construction Agreement. Within one (1) year from the date of certificate of occupancy, Builder will
repair or replace, at the Builder's option, any latent defects in material or workmanship of the New Home.
All workmanship and materials shall satisfy the standards of construction described in the current version
of The Residential Construction Performance Guidelines -- For Professional Builders and Remodelers,
published by the National Association of Home Builders (the "Guidelines"). A latent defect is defined as
one which was not apparent/ascertainable at the time of occupancy. The owner agrees to accept a
reasonable match in any repair or replacement in the event the original item is no longer available. If any
latent defects in material or workmanship results in water, mold, insect or animal infestation, or damage
from any other agent, Builder’s responsibility will be limited to repairing or replacing the portions of the
dwelling which allowed water, mold, insects, animals, or other agents to enter or occupy the New Home.
Builder is not responsible for any damages caused by water, mold, insect or animal infestation, or damage
by some other agent, that may be associated with defects in our construction, to include but not be limited
to property damage, personal injury, loss of income, emotional distress, death, loss of use, loss of value,
and adverse health effects, or any other effects.
3. Manufacturers' Warranties. Builder assigns and passes through to Owner, to the extent they are
assignable, the manufacturers' warranties on all appliances and equipment. The following are examples of
such appliances and equipment, though not every home includes all of these items and some homes may
include appliances or equipment not in this list: refrigerator, range, space heater, washing machine,
dishwasher, garbage disposal, ventilating, attic fan, and air conditioner.
4. Exclusions from Coverage. WE DO NOT ASSUME RESPONSIBILITY FOR ANY OF THE
FOLLOWING, ALL OF WHICH ARE EXCLUDED FROM THE COVERAGE OF THIS LIMITED
WARRANTY:
(a) Consequential or incidental damages, including but not limited to claims asserting a diminution in the
value of the dwelling, or damages arising from the presence of insect or animal infestation, mold, or other
biological agents in or about the dwelling.
(b) Defects in appliances and equipment that are covered by manufacturers' warranties. (We have
assigned these manufacturers' warranties to you, to the extent they are assignable, and you should follow
the procedures in these warranties if defects appear in these items.)
(c) Damage resulting from fires, floods, storms, electrical malfunctions, accidents, acts of God; or
damages from alterations, misuse or abuse of the covered items by any person; or damage resulting from
the owner's failure to observe any operating instructions furnished by the builder at the time of
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installation; or damage resulting from a malfunction of telephone, gas company, power company, or
water company equipment or lines.
(d) Damage due to ordinary wear and tear, abusive use, or lack of proper maintenance of your home, or
animals/pets.
(e) Defects that are the results of characteristics common to the materials used, such as (but not limited to)
warping and deflection of wood, fading, chalking, and checking of paint due to sunlight; cracks due to
drying and curing of concrete, stucco, plaster, bricks, and masonry; drying, shrinking and cracking of
caulking and weather-stripping.
(f) Defects in items purchased or installed by you or anyone else except us or, if requested by us, our
subcontractors.
(g) Work done by you or anyone else except us or, if requested by us, our subcontractors.
(h) Conditions resulting from condensation on, or expansion or contraction of, materials.
(i) Paint applied over newly plastered interior walls.
5. No Other Warranties. This Limited Warranty is the only express warranty given by Builder. Implied
warranties, including but not limited to warranties of merchantability, fitness for a particular purpose,
habitability, and good workmanship are expressly excluded, or to the extent not excludable by law,
limited to the warranty period set forth above. This Limited Warranty gives you specific legal rights, and
you may also have other rights.
6. Claims Procedure. If a defect appears that you think is covered by this Limited Warranty, you must
write a letter describing it to our office and email it to us. You must tell us in your letter what times
during the day you will be at home, so that we can schedule service calls appropriately. If delay will cause
extra damage (e.g., if a pipe has burst) telephone us. Only emergency reports will be taken by phone.
7. Repairs. Upon receipt of your written report of a defect, if the defective item is covered by this
warranty, we will repair or replace it at no charge to you within 60 days (longer if weather conditions,
labor problems, or material shortages cause delays). The work will be done by us or subcontractors
chosen by us. The choice between repair or replacement is ours.
8. Not Transferable. This Limited Warranty is extended to you only if you are the first purchaser of the
home. When the first purchaser sells the home or moves out of it, this Limited Warranty automatically
terminates. It is not transferable to subsequent purchasers of the home.
9. This is the Only Warranty Given by Builder. Owner acknowledges that he/she/they has/have
thoroughly examined the property to be conveyed and relies solely on his judgment in signing this
Limited Warranty, and that there are no guarantees, warranties, understandings, or representations made
by Builder, or any representatives of Builder, that are not set forth in this document.
BUILDER OWNER
_______________________________ ___________________________________
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 2/22/22 Title: Amendment to CenC Infill Housing
Agreement (EACH Program)
Submitted By: Jake Eckholm Department: Dev Svcs/Econ Dev.
Brief Summary: A proposed Amendment to existing Development Agreement for low/mod income
infill housing
Detailed Summary:
In an attempt to further our Economic Equity efforts and to create diversity of housing price points
as we build infill, we have been working for quite some time with Community EnCompass to
construct and infill affordable and accessible owner occupied single family housing. Two of the
three houses have been placed and we are working on identifying a third lot. Staff has come up
with a strategy to substitute ARPA dollars for the HOME funds originally intended for this project,
and in doing so reallocate those funds to a fourth accessible unit. The attached amendment
clarifies the use of ARPA dollars rather than HOME funds, and if approved staff will work on a
proposed project to install the fourth house.
All units would still be in the City’s Brownfield TIF and any losses at sale would be captured, and
Community enCompass is still providing $320,000 of the total $570,000 construction costs for the
original three homes, as well as down payment assistance and other potential services to income
qualitied buyers, below %80 AMI.
Amount Requested: $250,000 Amount Budgeted: N/A (ARP Funds)
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the amendment as presented and authorize the Mayor and
Clerk to sign.
For City Clerk Use Only:
Commission Action:
FIRST AMENDMENT TO RESIDENTIAL CONSTRUCTION AGREEMENT
This agreement between City of Muskegon (“Owner”), and Community enCompass
(“Builder”), has been entered into pursuant to the following terms:
Recitals
A. Owner and Builder entered into a Residential Construction Agreement effective May
18, 2021. The Agreement provides for Owner to hire Builder to build houses on three lots owned
by Owner for a total construction cost of $570,000. While the total construction cost is correct,
certain details were omitted from the Residential Construction Agreement.
B. Builder’s role has changed from being the builder to being the General Contractor
and hiring a builder and all sub-contractors.
THEREFORE, THE PARTIES AGREE TO THE FOLLOWING CLARIFICATION:
1. The price to construct three houses, two at specified addresses and a third to be
determined, is $570,000. Of that amount, the Owner shall contribute $250,000 and Builder shall
contribute $320,000. Owner shall not use any HOME funds or Community Development Block
Grant (“CDBG”) funds. Owner may use General Funds or American Rescue Plan (“ARPA”)
funds. Builder’s funds may be from a loan made by the Community Foundation.
2. Owner and Builder acknowledge that Builder will not perform any construction
work. Builder shall act as the General Contractor and hire all work to be done by licensed
contractors.
3. Owner and Builder acknowledge that Commencement Date and Completion
Dates have not been met through no fault of either party. As such, the “Extension of Dates”
provision is been exercised. Owner and Builder seek to complete construction in a reasonable
period of time.
4. Owner and Builder contemplated that the constructed houses would be sold,
including the possibility of a sale at less than the construction cost. Owner and Builder agree
that upon sale of a house constructed pursuant to the Residential Construction Agreement the net
proceeds would be payable to Builder, to the extent of Builder’s contribution to cover the
construction costs. Once Builder is paid in full, Owner shall take all future sale proceeds. To
the extent that there is a profit, Owner shall retain the profit. To the extent that Owner is not
paid in full, Owner shall be entitled to recover its loss from the City of Muskegon Brownfield
Authority’s In-Fill Housing Program.
5. As to all other respects, the Residential Construction Agreement shall continue in
force as if restated herein.
City of Muskegon
By: _______________________________
Ken Johnson
Its Mayor
Dated: ___________, 2022 And _____________________________
Ann Marie Meisch
Its Clerk
Community enCompass
By: _______________________________
Its President
Dated: ____________, 2022 And _____________________________
Its Secretary
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 2/22/22 Title: Request for Water Utility Connection
Fee Waiver
Submitted By: Jake Eckholm Department: Dev Svcs/Econ Dev.
Brief Summary: The vacant filling station/winery building at 611 W. Clay is being redeveloped into
a boutique hotel, and is requesting a waiver of their water utility connection fees
Detailed Summary:
The long vacant and half constructed site at 611 W. Clay was once supposed to be a winery and
restaurant space, and has sat vacant for several years. The new owners, Jeremy Garcia of
Muskegon and Bryan Hamrick of Grand Rapids have run into some cost overruns with their project
due to construction materials and other factors, and are asking for the city commission to consider
waiving their domestic and fire suppression utility hookup fees. Staff have attached the quote from
DPW. There is currently a moratorium on any sewer connection fee waivers, and staff informed the
owners of that fact so they are not requesting sewer hookup fees be waived.
Amount Requested: $11,800 in fee waivers Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the request by 611 W. Clay LLC to waive domestic water and
fire suppression utility connection fees for the construction project at 611 W. Clay as presented.
For City Clerk Use Only:
Commission Action:
To whom it may concern,
Our project at 611 Clay will provide eight boutique units for travelers to visit Muskegon. This will bring
revenue to local businesses in downtown Muskegon and the surrounding area. It helps revitalize the
Clay corridor on the south end of downtown. We are spending nearly six hundred thousand dollars in
upgrades and improvements to a vacant building. We are requesting the water connection fee be
waived by the city of Muskegon that is required for the fire suppression system to make our project
successful.
Warm regards,
Jeremy Garcia
611 Clay LLC
611 W. Clay
Date: 01/18/22
LOCATION OF WORK: 639 W. Clay
The Department of Public Works quotes the cost as follows for connection fees.
Install 1 ½” Domestic Water Line - $4,500
Sewer increase due to increased water service - $3,000
Install 4” Fire Line to the Property Line – $7,300
Total Deposit Due: $14,800
This quotation covers the installation of a 4” fire line, installation of an 1 ½” domestic
water line and the potential increased sewer capacity needs. Water meters will be billed
on first bill after installation. Payment should be made to: City of Muskegon, Water
billing Dept C/O City Treasurer, 933 Terrace St. Muskegon Mi, 49440.
Wyatt Eggleton
City of Muskegon
Public Utilities Supervisor
(231)724-6988
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Precinct Boundary Changes
Submitted By: Ann Marie Meisch Department: City Clerk
Brief Summary: The City Commission adopted a resolution allowing certain precinct boundary
changes on February 8, 2022. There is an additional change that needs to be made in order to
avoid a county commission district split in precinct 11. This will not impact the balancing of wards
as precinct 11 and 12 are in the same ward.
Detailed Summary:
Voters in Precinct 11 that live on Pine Grove and on the odd side of Winchester will be moved to
precinct 12. The County Commission boundary runs right down Winchester. Voters on the odd
(West)side will be in County Commission District 4, those on the even (East) side will be in County
Commission District 7.
Due to the timeline for getting changes submitted to the State of Michigan, Bureau of Election, we
are seeking approval of the changes so that we can submit our revisions as soon as possible.
The deadline for precinct boundary changes to be submitted for the May 3, 2022 Election is March
4, 2022. We would like to have the changes made before the May Election to allow for time to send
new voter ID cards to voters in the City of Muskegon. Approximately 798 total voters (721 from
previous changes and 77 from this change) will be assigned to new precincts and polling places.
All voters will receive new ID cards to identify changes to Precinct, Ward, Polling Place, County
Commission District, State House District, State Senate District, and Congressional District
numbers.
Change #5 – move approximately 77 voters from Ward 4 Precinct 11 to Ward 4 Precinct 12 – to
avoid a County Commission District split in precinct 11.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To concur with the recommendation of the City of Muskegon Election
Commission and adopt the resolution to alter precinct boundaries.
For City Clerk Use Only:
Commission Action:
Change #5 – Move voters in the ½ circle area – the west side from Ward 4, Precinct 11 to Ward 4
Precinct 12 – to avoid a County Commission District Split. There are approximately voters in this area –
the ward balance is unaffected as both precincts are in Ward 4.
CITY OF MUSKEGON
RESOLUTION ALTERING PRECINCT BOUNDARIES
WHEREAS, the City of Muskegon is required to balance its Wards every ten years in conjunction
with the latest census,
WHEREAS, all precinct lines within the City of Muskegon have been re-evaluated based on new
district lines,
WHEREAS, City Clerk staff proposed alterations to the Election Commission,
WHEREAS, the City Election Commission approved the proposed alterations as follows:
Change #5 – Move voters in the ½ circle area – the west side from Ward 4, Precinct 11 to Ward 4
Precinct 12 – to avoid a County Commission District Split. There are approximately voters in this area –
the ward balance is unaffected as both precincts are in Ward 4.
NOW THEREFORE BE IT RESOLVED that the City Commission authorize all changes as
indicated to become effective with the May 3, 2022 Election.
Signed this 22nd day of February, 2022.
_________________________________
Ken Johnson, Mayor
_________________________________
Ann Marie Meisch, MMC – Clerk
Registered Voter Totals for proposed precinct boundary changes. 2/15/2022
Ward Precinct Current # Ward Total Change New # Ward Total
Ward I Precinct 1 1511 0 1511
Precinct 2 1619 -299 1320
Precinct 3 1527 0 1527
Precinct 4 1676 6333 0 1676 6034 -29 deviation from average
Ward II Precinct 5 1611 299 1910
Precinct 6 1729 0 1729
Precinct 7 2198 5538 164 2362 6001 4 deviation from average
Ward III Precinct 8 1568 0 1568
Precinct 9 2130 33 2163
Precinct 10 2127 5825 -164
2188
225 5919 86 deviation from average
Ward IV Precinct 11 1839 -33
1729
-77
Precinct 12 1796 -225
1648
77
Precinct 13 1505 0 1505
Precinct 14 1184 6324 0 1184 6066 -61 deviation from average
24020 24020 0 24020 6005 average
Changes from 2/8/22 are in blue
The Voters column in the table to the left represents the number of
voters including voters in the Inactive Voter File. These are voters that
have been marked in the Qualified Voter File as Inactive for any number
of reasons.
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Unmarked Police Vehicle
Lease Plan
Submitted By: Director Jeffrey Lewis Department: Public Safety
Brief Summary: Unmarked Police Vehicle Lease Plan with Hertz Rental Cars.
Detailed Summary: Due to the State of Michigan discontinuing the WHEELS Program mid-year, four (4)
unmarked vehicles assigned to our undercover detectives have been returned to the State of Michigan.
Replacement vehicles need to be in service by 2/24/2022. Cost per replacement lease vehicle including
maintenance and other flex options is approximately $700.00 per vehicle ($2800.00 per month). This
lease program will be in place until the end of this current budget year. Fleet insurance and fuel costs will
still be sustained by the City of Muskegon.
Amount Requested: already in 2021-22 budget Amount Budgeted: $13,125
Fund(s) or Account(s): 101-40301-4363 Fund(s) or Account(s):
Recommended Motion: To approve the lease with Hertz Rental Car for unmarked Police Vehicles.
Check if the following Departments need to approve the item first:
Police Dept. X
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Amendment to the Marihuana Facilities
Overlay District – 1314 E Apple Ave – 2nd
Reading
Submitted By: Mike Franzak Department: Planning
Brief Summary: Request to amend Section 2331 of the zoning ordinance to include 1314 E Apple Ave
into the Marihuana Facilities Overlay District with retail, provision centers and class B recreational grows
as approved license types, by Lake Michigan Labs.
Detailed Summary: The Planning Commission recommended approval of the request by a 6-1
vote.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the request to amend Section 2331 of the zoning ordinance to
include 1314 E Apple Ave into the Marihuana Facilities Overlay District with retail, provision
centers and class B recreational grows as approved license types.
Planning Commission Excerpt
Hearing, Case 2022-01: Request to amend Section 2331 of the zoning ordinance to include 1314 E Apple Ave
into the Marihuana Facilities Overlay District with retail, provision centers and class B recreational grows as
approved license types, by Lake Michigan Labs.
SUMMARY
1. The property is zoned B-2, Convenience & Comparison Business District.
2. This zoning designation allows the following marihuana license types with the issuance of a special
use permit: microbusinesses, designated consumption establishments and class B recreational grows.
Caregiver facilities are an allowed use by right.
3. The applicant is currently operating a caregiver facility at this address.
4. The applicant has requested to amend Section 2331 (marihuana facilities overlay district) of the zoning
ordinance to designate 1314 E Apple Ave as an approved location that allows retail, provisioning
centers and class B recreational grow license types.
5. Retail licenses allow the sale of recreational marihuana. Provisioning centers allow for the sale of
marihuana to medical marihuana patients. Class B recreational grows allow the production of up to 500
plants
6. Please see the enclosed zoning ordinance excerpt of Section 2331 (marihuana facilities overlay district).
7. Notice was sent to all properties within 300 feet. At the time of this writing, staff had not received any
comments from the public,
1314 E Apple Ave
Zoning Map
Aerial Map
Current Overlay Districts
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO._____
An ordinance to amend Section 2331 of the zoning ordinance to expand the marihuana facilities overlay district
to allow for retail, provision centers and class B recreational grows as approved license types at 1314 E Apple
Ave.
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1314 E Apple Ave will be added to the Marihuana Facilities Overlay District as a location allowed for retail,
provision centers and class B recreational grow license types.
CITY OF MUSKEGON E 107.5 FT OF W 132.5 FT OF N 124 FT OF S 157 FT OF SE 1/4 OF SW 1/4 OF SE 1/4
SEC 21 T10N R16W EXC A TRIANGULAR PIECE IN SW COR 10 FT ON APPLE AVE & 10 FT ON EVART ST
This ordinance adopted:
Ayes:______________________________________________________________
Nayes:_____________________________________________________________
Adoption Date:
Effective Date:
First Reading:
Second Reading:
CITY OF MUSKEGON
By: _________________________________
Ann Meisch, MMC, City Clerk
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of an
ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the 8th day of February 2022, at which meeting a quorum was present and
remained throughout, and that the original of said ordinance is on file in the records of the City
of Muskegon. I further certify that the meeting was conducted and public notice was given
pursuant to and in full compliance with the Michigan Zoning Enabling Act, Public Acts of
Michigan No. 33 of 2006, and that minutes were kept and will be or have been made available as
required thereby.
DATED: ___________________, 2022. __________________________________________
Ann Meisch, MMC
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
Please take notice that on February 8, 2022, the City Commission of the City of Muskegon adopted an
ordinance to amend Section 2331 of the zoning ordinance to expand the marihuana facilities overlay
district to allow for retail, provision centers and class B recreational grow types at 1314 E Apple Ave.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk
in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours.
This ordinance amendment is effective ten days from the date of this publication.
Published ____________________, 2022. CITY OF MUSKEGON
By _________________________________
Ann Meisch, MMC
City Clerk
---------------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
Account No. 101-80400-5354
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: HBA Demolitions
Submitted By: Director Jeffrey Lewis Department: Public Safety
Brief Summary: HBA approved the demolition of 2123 Henry, 507 E Apple, 743 Amity, and 867 Scott.
Detailed Summary: This is to request that the City Commission concur with the findings of the Housing
Board of Appeals that the structure located at 2123 Henry, 507 E Apple, 743 Amity, and 867 Scott, is
unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days. It is further
requested that administration be directed to obtain bids for the demolition of the structure and that the
Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest
responsible bidder or staff may issue infraction tickets to the owner, agent, or responsible party if they
do not demolish the structure.
Amount Requested: Bids Amount Budgeted: N/A
Fund(s) or Account(s): 101-80387-5356 Fund(s) or Account(s):
Recommended Motion: To concur with the Housing Board of Appeals decision to demolish 2123
Henry, 507 E Apple, 743 Amity, and 867 Scott.
Check if the following Departments need to approve the item first:
Police Dept. ☒
Fire Dept. ☐
IT Dept. ☐
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: February 22, 2022 Title: Interim City Manager
Submitted By: Frank Peterson Department: City Manager
Brief Summary: Appoint LeighAnn Mikesell as Interim City Manager effective April 1, 2022.
Detailed Summary. Current City Manager has provided notice to the City Commission that he will
be stepping down on April 1, 2022. Current Deputy City Manager LeighAnn Mikesell is prepared to
step in as interim city manager. While serving in the interim city manager capacity, LeighAnn shall
maintain her current salary and benefits plus an additional $300 salary stipend per week. In the
event the Interim City Manager serves in that capacity beyond June 30, 2022, the salary and benefits
will be renegotiated.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s): N/A
Recommended Motion: Appoint LeighAnn Mikesell as Interim City Manager effective April 1, 2022.