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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 26, 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:
Women Veterans Day
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Request to Fly the Norwegian Flag City Clerk
C. MERS 457 Supplemental Retirement Program Finance
D. Health and Dental Care Renewal Finance
E. Procure Contractors 2022 Community and Neighborhood Services
F. Request for Proposal Approvals Community and Neighborhood
Services
G. Traffic Control Order #74 Traffic/Engineering
H. Traffic Control Orders #75, #76, & #77 Traffic/Engineering
I. Camp at Burning Foot Public Works
J. Roberts Street Water Tower Painting Public Works
K. Sale – 1065 James, 266 Meeking, 270 Meeking, 280 Meeking, and 290
Meeking Planning
L. Musketawa Trail Project – Change Order #003 DPW/Engineering
□ PUBLIC HEARINGS:
□ UNFINISHED BUSINESS:
Page 1 of 2
A. CSX Closing Documents City Manager
B. Amendment to the Ride Muskegon Agreement City Manager
□ NEW BUSINESS:
A. HOME American Rescue Plan (ARP) Community and Neighborhood
Services
B. Exspiravit Consumption Events Public Works
C. Downtown Muskegon Social District Plan and Map Amendments/Fee
Restructure Economic Development
□ 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: April 26, 2022 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the March 22, 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:
C I TY OF M US K EG O N
CITY COMMISSION MEETING
MARCH 22, 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, March 22, 2022.
Pastor Ryan Plantz, Evanston Avenue Baptist 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,
Teresa Emory, Rachel Gorman, Rebecca St.Clair, Eric Hood, and Michael
Ramsey, Deputy City Manager LeighAnn Mikesell, City Attorney John Schrier,
and City Clerk Ann Meisch.
HONORS, AWARDS, AND PRESENTATIONS:
Pulaski Lodge Recognition
Director Lewis and Police-Community Coordinator, Ryan Cummins, recognized
Pulaski Lodge for creating a $225,000 fund at the Muskegon Community
Foundation to perpetually support the annual Public Safety Youth Fishing Derby.
Mayor Johnson presented Pulaski Lodge President, Mike Cameron, with a
plaque and resolution recognizing and thanking them for this donation.
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2022-26 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the February 22, 2022
Regular Meeting and the February 28, 2022 Special Meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. Beukema Park Pavilion Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to contract with
Muskegon Quality Builders for the construction of a new pavilion at Beukema
Park.
Staff worked with the Marquette Neighborhood to develop an RFP for the
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construction of a new pavilion at Beukema Park. Staff then solicited bids for the
construction of the specified pavilion one(1) bid was received for the project
from Muskegon Quality Builders.
• Muskegon Quality Builders - $69,000.00
Staff reviewed the bid packet and consulted with a landscape architect to
confirm that the bid pricing was appropriate given that only one bid was
received. Staff is comfortable that the bid is complete and appropriately priced
for the work scheduled to be completed.
Construction would be scheduled for this spring/summer with a target
completion date to allow for use of the pavilion during the National Night out in
August.
AMOUNT REQUESTED: $69,900.00 AMOUNT BUDGETED: $700,000
Less Reese Playground = $364,600
Less Beukema Playground = $220,568.25
Remaining = $114,831.75
FUND OR ACCOUNT: 101-92126-5346
STAFF RECOMMENDATION: Authorize staff to contract with Muskegon Quality
Builders in the amount of $69,900.00 for the construction of a new pavilion at
Beukema Park.
C. Pavement Markings Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to contract with
Michigan Pavement Markings, LLC for pavement marking services throughout
the City during the 2022 construction season.
The Muskegon County Road Commission regularly bids the installation of
pavement markings for many municipalities in the County, including the City,
and has done so again in 2022. The County received two bids; Michigan
Pavement Markings, LLC was the low bidder and the County has awarded them
a contract.
Traditionally, the City has had linear pavement markings refreshed throughout
the entire City each spring, and this year requests $25,525.00 to do so again, as
detailed on the pricing sheet.
This year, the Laketon corridor from Lakeshore to Creston, also needs to have
the “special” markings refreshed (left turn arrows, crosswalks, stop bars, etc.) at
a cost of $13,020.00 as detailed.
The City regularly has reason to perform miscellaneous marking to change
problem areas, to remark areas destroyed by construction work, and to refresh
fading markings late in the season. Staff requests a 25% contingency on the
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contract ($9,636.25) to cover these costs.
AMOUNT REQUESTED: $48,181.25 AMOUNT BUDGETED: $48,181.25 (FY22-23)
FUND OR ACCOUNT: 202-60440-5346 FUND OR ACCOUNT: 202-60440-5346
STAFF RECOMMENDATION: Authorize staff to contract with Michigan
Pavement Markings, LLC in the amount of $48,181.25 for pavement marking
services throughout the City during the 2022 construction season.
D. Street Sweeping Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to contract with Tri-US
Services, Inc. for street sweeping services throughout the City during the 2022
season.
Tri-US Services has been performing street sweeping services for the City for the
last 4 years based on a 2018 bid, with the 2021 year contracted under an
optional extension to the original 3-year contract. For 2022, due to staff turnover
and with the support of Tri-US Services, staff proposes a special purchase by
extending the contract an additional year. Tri-US Services has agreed to extend
their pricing from the 2018 bid, adding a 1.58% Fuel Surcharge, for a total of
$255,000 for the City’s major and local streets.
MDOT contracts with the City for sweeping of the trunklines within the City via
reimbursement, and the City has historically used the same bid contract for
trunkline sweeping. Due to the proposed contract extension/special purchase,
MDOT requested that staff seek quotes for the trunkline portion of the contract.
Staff solicited quotes from Tri-US Services, Sanisweep of Grand Rapids, and
Curbco of Flint, the same companies that requested bid packages in 2018. Tri-US
Services and Sanisweep submitted pricing, with Tri-US Services price fo $18,315
being the same as their 2018 bid price, and the lowest received. Staff
recommends the trunkline portion be awarded to TRI-US Services at $18,315 and
MDOT will again reimburse the City for the trunkline portions.
The total street sweeping contract request is $273,315 for the 2022 season, plus a
charge of $150.00 per hour for special requests, used for things like events and
construction sweeping.
AMOUNT REQUESTED: $273,315.00 AMOUNT BUDGETED: $2,037,262
FUND OR ACCOUNT: 101-60523-5300
STAFF RECOMMENDATION: Authorize staff to contract with Tri-US Services,
Inc. in the amount of $273,315.00 for street sweeping throughout the City,
including state trunklines, for the 2022 season.
E. Aggregates, Highway Maintenance Materials, and Ready-Mixed
Concrete Public Works
SUMMARY OF REQUEST: Award supply of aggregates, highway maintenance
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materials and ready-mixed concrete for 2022 to selected bidders.
Bids were solicited for aggregates, highway maintenance materials and ready-
mixed concrete for purchase in 2022. Purchases will be made from the
recommended bidders listed in yellow on the provided bid tabs. Purchases are
contingent on product availability, timely deliveries, and prices as quoted.
No bids were received for liquid chloride items, which are an important part of
the City’s operations for snow removal and gravel road maintenance. Staff will
be working to find sources for these items.
AMOUNT REQUESTED: Varies by Fund AMOUNT BUDGETED: Varies by Fund
FUND OR ACCOUNT 101, 202, 203, 590, 291
STAFF RECOMMENDATION: Authorize staff to award bids for aggregates,
highway maintenance materials and ready-mixed concrete for purchase during
the 2022 construction season as presented.
F. Social District Permit Recommendation Economic Development
SUMMARY OF REQUEST: The City must recommend approval of the Michigan
Liquor Control Commission permits of participating licensed establishments in the
Downtown Muskegon Social District.
With the establishment of the Downtown Muskegon Social District, participating
licensed establishments must receive a Social District permit from the Michigan
Liquor Control Commission. The MLCC must first receive a recommendation for
approval from the City Commission before granting the permits. You
recommended the Mercy health Arena on January 26, 2021 on the arena’s old
license. With the new DDA license, the city needs to make a new social district
permit application. City staff is seeking a Social District permit from the state and
seeking City Commission recommended approval. There are new licensed
establishments within the district that may file a Social District permit application
in the future.
STAFF RECOMMENDATION: To approve the resolution recommending
Michigan Liquor Control Commission approval of Social District permit in the
Downtown Muskegon Social District and to direct the City Clerk to certify the
City Commission action with the MLCC.
Motion by Vice Mayor German, second by Commissioner Gorman, to accept
the consent agenda as presented.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, Hood, Ramsey, German, and
Gorman
Nays: None
MOTION PASSES
2022-27 PUBLIC HEARINGS:
Page 4 of 8
A. Recommendation for Annual Renewal of Liquor Licenses City Clerk
REMOVED – All liquor license establishments are in compliance or are working
with the appropriate department to become compliant.
B. MDNR Grant Applications Public Works
SUMMARY OF REQUEST: Staff is seeking public/commission input and
commission support for a formal resolution of support to submit two (2) grant
applications to the Michigan Department of Natural Resources for Park Capital
Projects by the April 1, 2022 deadline.
Staff is proposing two projects for application in MDNR programs at the April 1,
2022 application deadline, as a requirement of the grant application we are
soliciting feedback on the conceptual designs and commission support for the
grant applications.
Michigan Natural Resources Trust Fund
Under the NRTF Program staff is proposing to apply for construction of a second
restroom/concession facility at Pere Marquette park. The facility would be
located in the same location as the existing kite shack building. The conceptual
layout would call for four (4) unisex family style restrooms, a concession area
and a storage area. The conceptual site plan also identifies potential future
additions of a pavilion, though that is not included in the grant request. The
maximum grant amount is $300,000 and requires a minimum 50/50 match. The
project estimate is $667,500.00 of which we are requesting the maximum grant
amount with a $367,500 local match.
Land and Water Conservation Fund
Under the LWCF Program staff is proposing to apply for multiple improvements to
the Grand Trunk Launch Ramp facility. The improvements would include paved
parking, additional launch space and dockage, storm water improvements,
accessible kayak launch, and trailhead improvements. The conceptual plan
also includes construction of a restroom/fish cleaning station at the site at a
future date, those features are not included in this grant proposal. The maximum
grant amount through LWCF is $500,000 and requires a minimum 50/50 match.
The project estimate is $1,000,000 of which we are requesting the maximum
grant amount with a $500,000 local match.
If the projects are selected for grant award construction could begin as early as
2024.
STAFF RECOMMENDATION: To accept public comment and approve the
resolution of support for the Natural Resources Trust Fund application and the
resolution of support for the Land and Water Conservation Fund application and
authorize the Mayor and Clerk to sign.
PUBLIC HEARING COMMENCED: Dr. Mark Poletti, 3244 Thompson –
Page 5 of 8
suggested having some accessible way to pull up to shore in Lakeside to enable
visits to restaurants.
Motion by Commissioner Gorman, second by Commissioner St.Clair, to accept
public comment and approve the resolution of support for the Natural Resources
Trust Fund application and the resolution of support for the Land and Water
Conservation Fund application and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, Gorman, and
Emory
Nays: None
MOTION PASSES
C. Commercial Rehabilitation District – 2725 Olthoff Drive – Northern
Biomedical Research Planning
SUMMARY OF REQUEST: Pursuant to Public Act 210 of 2005, as amended, staff
has requested the establishment of a Commercial Rehabilitation District. The
creation of the district will allow the future property owner to apply for a
Commercial Rehabilitation Certificate, which will freeze the taxable value of the
building and exempt the new real property investment from local taxes. The
school operating tax and the State Education Tax (SET) are still levied on the
new investment. Land and personal property cannot be abated under this act.
Northern Biomedical Research will be applying for a Commercial Rehabilitation
Certificate after the district is passed. Another 10 acres will remain for
development within this commercial rehabilitation district.
STAFF RECOMMENDATION: To close the public hearing and approve the
request to establish a Commercial Rehabilitation District at 2725 Olthoff Drive.
PUBLIC HEARING COMMENCED:
Tim Updyke – 6005 Henry Street, Norton Shores – Opposed
Patricia Gomez – 1480 Benjamin, Laketon Twp – Opposed
Tracy Powers – 2073 Bourdon, Muskegon – Opposed
Brian McCarthy – 2089 Crozier, Muskegon – Opposed
Michael Haueisen – 903 Turner Ave, Muskegon – Opposed
Hannah Hilborn – 3320 Peck Street, Muskegon Heights – Opposed
Dr. Mark Poletti – 3244 Thompson, Muskegon – Opposed
Motion by Vice Mayor German, second by Commissioner Hood, to close public
comment and approve the request to establish a Commercial Rehabilitation
District at 2725 Olthoff Drive.
ROLL VOTE: Ayes: Johnson, Hood, Ramsey, German, Gorman, Emory, and
Page 6 of 8
St.Clair
Nays: None
MOTION PASSES
2022-28 UNFINISHED BUSINESS:
A. Summer Concert Series, Social Sandbox Economic Development
SUMMARY OF REQUEST: Mr. Terry Puffer, through his non-profit organization
Lakeshore Legacy Project, is proposing a recurring concert series to take place
downtown at the Downtown Muskegon Development Corporation owned lot
known as the Social Sandbox. The organization is requesting the City agree to
match their fundraising efforts to put on the concerts.
Mr. Puffer is proposing a concert series that is detailed in the letter provided. He
cites the city’s Downtown Development Authority int eh document but is asking
for any eligible city funds to assist as match dollars. Staff is proposing that the
commission determine willingness and limitation, if any, to assisting with this
event.
STAFF RECOMMENDATION: To partner with the Lakeshore Legacy Project by
matching fundraising for a summer concert series at the Social Sandbox, not to
exceed _______.
Motion by Commissioner Ramsey, second by Commissioner Hood, to table this
item indefinitely.
ROLL VOTE: Ayes: Hood, Ramsey, German, Gorman, Emory, St.Clair, and
Johnson
Nays: None
MOTION PASSES
B. Rezoning 653 Yuba Street Planning – 2nd Reading
SUMMARY OF REQUEST: Staff initiated request to rezone a portion of the
property at 653 Yuba Street from R-1, Low Density Single Family Residential to B-4,
General Business.
The Planning Commission recommended approval of the rezoning by a 6-0
vote.
STAFF RECOMMENDATION: To approve the request to rezone a portion of the
property at 653 Yuba Street from R-1, Low Density Single Family Residential to B-4,
General Business.
Motion by Commissioner Emory, second by Commissioner Ramsey, to approve
the request to rezone a portion of the property at 653 Yuba Street from R-1, Low
Density Single Family Residential to B-4, General Business
ROLL VOTE: Ayes: Ramsey, Gorman, Emory, St.Clair, Johnson, and Hood
Page 7 of 8
Nays: German
MOTION PASSES
C. Amendment to the Marihuana Facilities Overlay District – Temporary
Marihuana Events at 1800 Peck Street Planning – 2nd Reading
SUMMARY OF REQUEST: Staff initiated request to amend Section 2331 of the
zoning ordinance to allow temporary marihuana events at 1800 Peck Street.
The Planning Commission made two separate motions on the case. The first was
to make a recommendation to the City Commission to approve the request at
470 W Western Ave, which passed by 6-1 vote. The second was to make a
recommendation to the City Commission to approve the request at 1800 Peck
Street, which passed by a 4-3 vote.
STAFF RECOMMENDATION: To approve the request to amend Section 2331
of the zoning ordinance to allow temporary marihuana events at 1800 Peck
Street.
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to approve
the request to amend Section 2331 of the zoning ordinance to allow temporary
marihuana events at 1800 Peck Street.
ROLL VOTE: Ayes: German, St.Clair, Johnson, and Ramsey
Nays: Gorman, Emory, and Hood
MOTION PASSES
ANY OTHER BUSINESS: Mayor Johnson raised the question of how to proceed on
the hiring process for the Public Safety Director and the permanent City
Manager. Due to the vacancy in the position of both the Public Safety Director
and the City Manager, should the new, permanent City Manager be the one to
make the appointment of a Public Safety Director. Also, does the Commission
wish to transition to having a Police Chief and Fire Chief rather than a Public
Safety Director. Discussion took place. A special meeting will be held regarding
an RFP for a permanent City Manager.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were
received.
ADJOURNMENT: The City Commission adjourned at 7:45 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: Request to Fly the Norwegian Flag
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: Sons of Norway are requesting permission to fly the Norwegian Flag at City Hall
on Constitution Day (Independence Day) which is Tuesday, May 17th.
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 request.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: MERS 457 Supplemental Retirement
Program
Submitted By: Kenneth Grant Department: Finance
Brief Summary: The City wants to offer employees an additional 457 supplement retirement plan
through MERS.
Detailed Summary: Municipal Employees’ Retirement System (MERS) offers a supplemental 457
plan that encourages employee’s additional savings towards retirement. The city offers two
additional 457 plans this will be third option for employees.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s)
Recommended Motion: I recommend that we adopt the resolution from MERS to offer an
additional 457 supplemental retirement plan to city employees.
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: April 26, 2022 Title: Health and Dental Care Renewal
Submitted By: Kenneth Grant Department: Finance
Brief Summary: To approve the renewal of Priority Health as the City’s fully insured health care
provider and the Third Party Administrator for City’s self-funded health care plan. And to renewal
Delta Dental as the City’s dental insurance provider.
Detailed Summary: The City’s health care coverage renews June 1, 2022, for the period June 1,
2022 to May 31, 2023. The following are changes effective June 1, 2022.
1. Renewal rates increased by 3.5%. Average US increases for 2022 are expected to
be between 4.7 and 5.2%.
Demographic 2021 2022
Single $552.93 $572.44
Double $1,244.09 $1,287.99
Family $1,492.91 $1,545.59
2. We are increasing our coinsurance out of pocket maximum as follows:
Demographic 2021 2022
Single $1,500 $2,500
Double/Family $3,000 $5,000
3. Our Health Reimbursement Arrangement (HRA) is running very well. Our annual
projection for this current (2021/22) plan year payout will be around $325,411.12.
4. Our Deductible needs to be met before the Coinsurance starts. We only had 8
people meet their deductible for 2021.
5. We are saving over $36,000 in premium to increase the coinsurance out of pocket
maximum.
6. The out of pocket maximum limit, which is set by the government increased as
follows:
2021 2022
$8,150/$16,300 $8,550/$17,100
7. Our employer contribution will remain below the “hard cap limits” set by PA 152.
2021 2022
Annual Employee $389,669.32 $403,419.38
Annual HRA Employer $325,411.12 N/A
Annual Employer $2,045,763.92 $2,117,951.74
Annual Hard Cap $2,552,575.15 $2,647,020.05
8. We are implementing our Wellness plan again for 2022. The City will continue to
pay the Deductible and Coinsurance for employee and spouses who have gotten a
physical between 4/1/2020 and 3/31/2022. If an employee and spouse do not get
their physicals they will be responsible for the first $1,000 deductible for an
individual and the first $2,000 deductible for a double/family.
9. We are implementing a Hearing Rider. This is a new benefit offered by Priority
Health. It is a piece of the healthcare services that has always been missing. We
are very please to be able to add this rider as assistance for those who need this
benefit. The rider gives the member one hearing test covered in full plus a $1,000
allowance per hearing aid every 36 months.
For our self-funded contract, which includes 2 segments, those retirees under 65 and those over
65. We have had a few years of large claims in the self-funded plan. We are starting to see them
go down.
Enrolled Current Renewal Increase/Decrease
Admin Fee 157 $53.12 $52.80 -0.6%
Aggregate 157 $13.76 $14.72 7.0%
Premium
Delta Dental rates will be reduced by 6% for 2022-23. There are no plan changes. The city offers
three benefit packages dependent on where you work.
Single Double Family
Basic (Police $26.80 $50.40 $101.28
& Fire)
Enhanced $32.68 $61.19 $122.25
(Non-Union)
Union $31.24 $59.33 $120.50
Enhanced
(Union)
Vision rates will stay the same and there will be no changes in benefits
Amount Budgeted: $ 2,642,220.90
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approval the Priority Health fully insured and self-funded renewal, and
the Delta Dental renewal for 2022-23.
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: April 26, 2022 Title: Procure Contractors 2022
Submitted By: Oneata Bailey Department: Community and Neighborhood
Service (CNS)
Brief Summary: Solicitation of Contractors for various programs to provide repair and replacement
services for citizens of our city and county provide CNS with a list of multiple building trades.
(List attached)
Detailed Summary: CNS regularly requests Contractors to submit bids for housing rehabilitation
projects to secure a list for future use for our rental unit(s). Ultimately, we are hopeful to attract
new contractors throughout the county and outlying communities to provide necessary services of
all construction trades and specialties for all of housing programs. (See 2022 list)
Amount Requested :NA Amount Budgeted: NA
Fund(s) or Account(s): NA Fund(s) or Account(s): NA
Recommended Motion: To approve the procured list of contractors submitted for future CNS
projects/programs.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action
Commission Meeting Date: April 26th, 2022
Date: April 12, 2022
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services Department
RE: Approval of 2022 Procurement Contracts for CNS
SUMMARY OF REQUEST: To approve the following Trades-Services procured through sealed
bid proposals producing the lowest responsible bidder and provide an extension* to four trades.
*Appraisal: Great Lakes Residential Appraisers
Asbestos Assessment: Analytical Testing & Consulting
Building: Across the Board LLC
Electrical: Belasco Electric
*House Building Spec Writer: Badgerows Building and Remodeling
Property Maintenance: Walker Handyman Enterprises
Lead Assessment & Clearance: AAA Lead Inspections
*Mechanical: Jewett Heating
Painting: Pro Cleaners
Plumbing: Noordhoff Plumbing
Realtor: RE/MAX West
Roofing: Sherriff-Gosling Roofing
*Structural Engineer/Surveyor: Westshore Consulting
Vinyl Installer: Mark N Tucker LLC
Vinyl Supplier: Keene Lumber
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: Request for Proposal Approvals
Submitted By: Oneata Bailey Department: Community and Neighborhood
Services
Brief Summary: We received requests of proposals from sub-recipients to provide academic
enrichment and recreation activities; accessible ramps (new and repairs) for low-income
households; outdoor childcare center and scholarships for low-income households (Applications
attached).
Detailed Summary:
Love INC of Muskegon County - $ 40,000.00*
New ramps and repairs to existing ramps of city of Muskegon low-income residents
Boys & Girls Club of the Muskegon Lakeshore - $ 100,000.00*
Continued youth recreation, academics, social enrichment and leadership for Muskegon youth
Early Childhood Education Equity- Muskegon YMCA Y-Learning - $ 50,000.00*
Outdoor learning space along with scholarships for low-income households
*Proposed
Amount Requested: $165,000.00* Amount Budgeted: $165,000*
COVID-19: $25,000.00 COVID-19: $25,000.00
Fund(s) or Account(s): CDBG FY2022 Fund(s) or Account(s):CDBG FY2022
CDBG-CV CDBG-CV
Recommended Motion:
To approve the Agree
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: April 26, 2022 Title: Traffic Control Order #74
Submitted By: Dan VanderHeide Department: Traffic/Engineering
Brief Summary: Staff is requesting approval of Traffic Control Order #74-(2022).
Detailed Summary: The Michigan Manual of Uniform Traffic Control Devices (MMUTCD), the
document that provides guidance for installation of traffic controls, includes provisions for stop-
controlled intersections such as:
• An intersection of two residential neighborhood collector (through) streets of similar design
and operating characteristics where multi-way stop control would improve traffic operational
characteristics of the intersection.
While the City is not required to install stop-controls in all situations that meet the guidance in the
MMUTCD, in the case of the intersection at Wesley Avenue and Roberts Street, DPW and Public
Safety staff, together with MAISD staff at the Wesley School and Lakeshore Learning Center,
believe stop-control at this intersection will improve safety and compliance in the neighborhood.
Staff is requesting approval of Traffic Control Order #74-(2022) for the installation of a four-way
stop at Wesley and Roberts.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Approve Traffic Control Order #74-(2022).
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
City of Muskegon
Traffic Control Order
No. 74-(2022)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Removal of “Yield” signs on north- and
south-bound Roberts Street at Wesley Avenue, followed by installation of “Stop Signs” on east-
and west-bound Wesley Avenue at Roberts Street, and installation of “Stop” signs on north- and
south-bound Roberts Street at Wesley Avenue (creation of a four-way stop).
Location: Wesley Avenue at Roberts Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: Traffic Control Orders #75, #76, & #77
Submitted By: Dan VanderHeide Department: Traffic/Engineering
Brief Summary: Staff is requesting approval of Traffic Control Orders #75-(2022), #76-(2022) & #77-(2022).
Detailed Summary: The Michigan Manual of Uniform Traffic Control Devices (MMUTCD), the
document that provides guidance for installation of traffic controls, includes provisions for stop-
controlled intersections such as:
• The combined vehicular, bicycle, and pedestrian volume entering the intersection from all
approaches averages more than 2,000 units per day, and
• An intersection of two residential neighborhood collector (through) streets of similar design
and operating characteristics where multi-way stop control would improve traffic operational
characteristics of the intersection.
While the City is not required to install stop-controls in all situations that meet the guidance in the
MMUTCD, in the case of the intersections at Western Ave and Franklin St, Franklin St and
Michigan Ave, and Lakeshore Dr and Southern Ave, DPW and Public Safety staff believe stop-
controls at these intersections will improve safety and compliance on the lakefront corridor from
Downtown to the Lakeside district.
Staff is requesting approval of Traffic Control Orders #75-(2022) for the installation of a four-way
stop at Western and Franklin, #76-(2022) for the installation of a four-way stop at Michigan and
Franklin, and #77-(2022) for the installation of an all-way stop at Southern and Lakeshore.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Approve Traffic Control Orders #75-(2022), #76-(2022) and #77-(2022).
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
City of Muskegon
Traffic Control Order
No. 75-(2022)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Installation of “Stop Signs” on east- and
west-bound Western Avenue at Franklin Street, and installation of “Stop” signs on north- and
south-bound Franklin Street at Western Avenue (creation of a four-way stop).
Location: Western Avenue at Franklin Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 76-(2022)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Installation of “Stop Signs” on east- and
west-bound Michigan Avenue at Franklin Street, and installation of “Stop” signs on north- and
south-bound Franklin Street at Michigan Avenue (creation of a four-way stop).
Location: Michigan Avenue at Franklin Street.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
City of Muskegon
Traffic Control Order
No. 77-(2022)
The following regulatory sign(s) shall be Installed/Removed at/from the location(s) specified
below under location in accordance with the Michigan Manual of Uniform Traffic Control.
Device/Regulatory Sign(s) to be Installed/Removed: Installation of “Stop Signs” on west-
bound Southern Avenue at Lakeshore Drive, and installation of “Stop” signs on north- and
south-bound Lakeshore Drive at Southern Avenue (creation of an all-way stop).
Location: Southern Avenue at Lakeshore Drive.
Recommendation:
________________________________ Date: ______/______/______
Director of Public Works
________________________________ Date: ______/______/______
Police Chief
________________________________ Date: ______/______/______
City Manager
Commission Approval (required for Permanent TCO only):
______ __________ Date: _____/_____/___ __
Commission Action #
Installation/removal
Date assigned: _____/_____/_____ By: ___________________________
Traffic Supervisor
Date completed: _____/_____/_____ By: ___________________________
Traffic Department Employee
Temporary; does not require Commission Action, good for 90-days from
Installation/Removal Date.
Permanent; requires Commission Action
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 4/26/2022 Title: Camping at Burning Foot
Submitted By: Jacqui Erny Department: Public Works
Brief Summary: The organizers of Burning Foot are requesting to allow camping at their event on
August 27, 2022 and authorize staff to charge a fee equal to 10% of their camping revenue.
Detailed Summary: Burning Foot has offered camping at their event each year and has been
authorize in the past to pay 10% of their camping revenue. Policy indicates the Commission may
choose to charge 10% of the camping revenue or $20 per campsite.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To authorize Burning Foot to provide camping at Pere Marquette Park on
August 27, 2022 and pay a fee of 10% of their camping revenue as a fee to the City.
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: 04/26/2022 Title: Roberts Street Water Tower Painting
Submitted By: Joe Buthker Department: Public Works - Filtration
Brief Summary: Staff is requesting authorization to contract with Fedewa, Inc. for painting and
modifying the Roberts Street water tower.
Detailed Summary:
The Roberts Street water tower is located at the corner of Roberts and Lawrence in the Marquette
neighborhood. The tower’s exterior and interior coatings are beyond their expected lifetimes, and a
2019 inspection found the coatings to be deteriorating and delaminating. The exterior tower
coating continues to chalk, fade, and lose its gloss.
The project to improve this water tower will involve a complete overcoat of the tower exterior and
also includes repairs to the interior coating. Other modifications will take place to bring the tower
into compliance with current safety standards and drinking water regulations. The artwork on the
tower will be changed to the Watch Muskegon logo.
The Commission approved a contract with Dixon Engineering for the professional services portion
of this project at the February 8, 2022 meeting. The construction portion of this project was posted
publicly in March, and sealed bids were accepted until April 5, 2022. Two bids were received for
painting and modifying the water tower. Dixon has evaluated the bids and recommends the lowest
bid of 269,799.00 from Fedewa, Inc. This project is budgeted as part of the FY 21-22 budget.
Amount Requested: $269,799.00 Amount Budgeted: $400,000.00
Fund(s) or Account(s): 591-92035 Fund(s) or Account(s): 591-92035
Recommended Motion:
Authorize staff to contract with Fedewa, Inc. in the amount of $269,799.00 to paint and modify the
Roberts Street water tower.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
DIXON 1104 Third Avenue
Lake Odessa, MI 48849
Telephone: (616) 374-3221
ENGINEERING & INSPECTION SERVICES Fax: (616) 374-7116
FOR THE COATING INDUSTRY
April 8, 2022
Mr. Joe Buthker
City of Muskegon
1900 Beach St.
Muskegon, MI 49441
Subject: Roberts Street Tank Exterior, Dry Interior, and Wet Interior Painting WFP-22-001-
Recommendation for Award
Dear Joe:
Dixon Engineering has reviewed the bids submitted for the exterior overcoat, dry interior repaint,
wet interior spot repaint, and miscellaneous repairs of the City’s 1,000,000-gallon Roberts Street
tank and recommends award to the low bidder, Fedewa, Inc., of Hastings, MI, for the bid amount
of $269,799. This includes all line items bid and is below our inflation adjusted project estimate
for this scope of work of $337,000 from our 2019 report. Bidding was competitive and the first
and second low bidders separated by only 9%. Fedewa, Inc., is a prequalified contractor with
Dixon and has successfully completed many similar projects. Their recent projects include the
City’s Marshall St. tank project completed last year. Fedewa, Inc has also completed recent tank
projects in the Village of Martin, Plainfield Twp, and is currently working on two tanks for the
City of Grand Rapids.
Enclosed for your review and action is the Notice of Award. After City approval, please sign
and forward three copies to the contractor for signature. Instruct the contractor to return one
copy to the city, forward a copy to our office, and retain a copy for his files. Also, please notify
the contractor he is to forward to our office the required bonds and certificate(s) of insurance for
inclusion in the contract documents.
If you have any questions regarding our recommendation, please contact me at (616) 374-3221,
Ext. 309 or (616) 292-1288.
FOR DIXON ENGINEERING INC.,
Eric Binkowski
Project Manager
Members: Society of Protective Coatings • American Water Works Association
Consulting Engineers Council
Muskegon, Michigan - 1,000,000 Gallon Radial Arm (Roberts)
2021 Water Tower Painting Project -April 5, 2022 - 2:00 P.M.
LC United Fedewa
Sterling Hgts, Hastings,
MI MI
Section 03 00 00
Foundation Spall Repair (1) 1,000 799
Section 05 00 00
Roof Hatch Hasp (1) 500 1,000
Overflow Pipe Discharge Mod. (2) 3,500 6,000
Painter's Railing Stand-Offs (3) 4,000 8,000
Wet Interior Platform Patch Plate (4) 1,500 1,000
Overflow Pipe Pen Patch Plate (5) 2,000 2,000
Total Section 05 (1-5) 11,500 18,000
Section 09 00 00
Exterior Overcoat (1) 192,000 200,000
Wet Interior Spot Repaint (2) 28,000 10,000
Dry Interior Repaint (3) 26,000 15,000
Lettering (4) 8,000 6,000
Total Section 09 (1-4) 254,000 231,000
Section 13 00 00
Mixer (1) 24,000 18,000
Section 16 00 00
Light Fixture Replacement (1) 3,500 2,000
Project Total 294,000 269,799
Antennas & Cables 500 1,000
1
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: Sale – 1065 James, 266 Meeking, 270
Meeking, 280 Meeking, 290 Meeking
Submitted By: Hope Griffith Department: Planning Department
Brief Summary: City staff is seeking authorization to sell five of the City owned vacant lots to
James Williams.
Detailed Summary: James Williams will be constructing four single family homes on the lots owned
by the City of Muskegon. The properties are zoned R-1 (Single Family Residential). The four lots
on Meeking will be combined and split into three buildable parcels. They will be sold for 75% of the
True Cash Value (TCV) per policy. The four properties on Meeking will be combined and re-split
into three buildable single-family lots. The total selling price will be $21,075. All of the properties
are located in the Brownfield Development area. The homes will be constructed within eighteen
(18) months.
Amount Requested: None. Amount Budgeted: $0
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Authorize the Code Coordinator to work with the developer and complete
the sale of the nine City owned buildable lots as described and to have the Mayor and Clerk 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:
PURCHASE AND DEVELOPMENT AGREEMENT
This Purchase and Development Agreement (“Agreement”) is made ____________, 2022
(“Effective Date”), between the City of Muskegon, a Michigan municipal corporation, of 933 Terrace
Street, Muskegon, Michigan 49440 (“City”), and James Williams, a married man, of 1482 Morgan
Avenue, Muskegon, Michigan 49442 (“Developer”), with reference to the following facts:
Background
A. Developer proposes to purchase and develop four (4) vacant properties owned by City,
which are all located in the City of Muskegon, Muskegon County, Michigan, and each commonly known
and legally described on the attached Exhibit A (each property individually, a “Parcel” and collectively
“Project Properties”).
B. City and Developer desire to establish the terms, covenants, and conditions upon which
City will sell and Developer will purchase and develop the Project Properties. Developer intends to develop
on each of the Project Properties a single-family house (the “Project”).
Therefore, for good and valuable consideration, the parties agree as follows:
1. Sale and Purchase of Project Properties. City agrees to sell to Developer, and Developer
agrees to purchase from City, on the terms and subject to the conditions set forth in this Agreement, the
Project Properties, subject to reservations, restrictions, and easements of record.
2. Purchase Price. The total purchase price for the Project Properties shall be $21,075.00,
which shall be paid in cash or other immediately available funds at Closing (defined below). The total
purchase price for the Project Properties shall be allocated to each Parcel as provided on Exhibit A.
Pursuant to Paragraph 3(b) below, the parties acknowledge and agree that Developer shall be eligible to be
reimbursed all or a portion of the purchase price for each Parcel upon the completion of certain design
standards as further described herein.
3. Construction and Development Requirements.
a. Construction Dates. The parties acknowledge and agree that Developer shall have
a period of eighteen (18) months from the date of Closing to complete the Project (“Construction
Period”), except as otherwise provided in this Agreement or as otherwise mutually agreed upon by
the parties in writing.
b. Construction Details; Purchase Price Reimbursement. Developer’s construction
and development of the Project Properties shall be in substantial conformance with its plans and
specifications provided to City by Developer or as otherwise agreed upon in writing between City
and Developer. As referenced above, Developer shall be eligible for reimbursement of all or a
portion of the purchase price for each of the Project Properties upon Developer’s satisfaction of the
following design standards for each single-family home it constructs on the Project Properties:
Design Standard Purchase Price Reimbursement for Parcel
Open front porch of at least 60 sq. ft. 25%
Picture or bay window 25%
Shutter or other acceptable window 25%
treatments
Underground Sprinkling 25%
(By way of example only: If Developer completes three of the design standards listed above for
the construction at the Parcel located at 1065 James Avenue, Developer would be reimbursed
$3,656.25, which is 75% of the $4,875 purchase price for this Parcel. If Developer completes all
four design standards, Developer would be reimbursed the entire purchase price for this Parcel.)
4. Right of Reversion. Notwithstanding anything herein to the contrary, and as security for
Developer’s obligation to commence and complete construction of a single-family house on each of the
Project Properties, the quit claim deed conveying the Project Properties to Developer shall contain a right
of reversion in all of the Project Properties (“City’s Reversionary Right”), which may be exercised by City,
in its sole and absolute discretion, if any of the following conditions occur:
a. Developer does not commence construction within sixty (60) days after the date of
Closing, in which case title to all of the Project Properties shall automatically revert to City upon
the terms and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph
4(a), commencing construction means furnishing labor and materials to at least one Parcel of the
Project Properties and beginning installation of the approved single-family home(s).
b. Developer does not complete construction of all Project Properties prior to
expiration of the Construction Period, in which case title to any of the Project Properties that are
not complete by the end of the Construction Period shall automatically revert to City upon the terms
and conditions further provided in this Paragraph 4 below. For purposes of this Paragraph 4(b),
completing construction means the issuance of an occupancy permit by City for all of the Project
Properties. Provided, however, the parties agree to reasonably negotiate an extension of the
Construction Period up to a period of six (6) months for any of the Project Properties that have a
completed foundation before the expiration of the initial Construction Period.
If any of the above conditions occur, City shall automatically have City’s Reversionary Right to reacquire
title to any or all of the Project Properties, as the case may be. To exercise City’s Reversionary Right
described herein, City must provide written notice to Developer (or its permitted successors, assigns, or
transferees) within thirty (30) days of Developer’s failure under this Agreement, but in any event prior to
Developer satisfying the conditions set forth in Paragraph 4(a) or Paragraph 4(b) above, as the case may
be, and record such notice with the Muskegon County Register of Deeds. Upon request of City, Developer
shall take all reasonable steps to ensure City acquires marketable title to any or all of the Project Properties,
as the case may be, through its exercise of its rights under this Paragraph within thirty (30) days of City’s
demand, including without limitation, the execution of appropriate deeds and other documents.
In addition, if any or all of the Project Properties revert to City, City may retain the purchase price for such
Project Properties free and clear of any claim of Developer or its assigns. In the event of reversion of title
of any or all of the Project Properties, improvements made on such Project Properties shall become the
property of City. In no event shall the Project Properties be in a worse condition than upon the date of
Closing. These covenants and conditions shall run with the land and be recorded in the quit claim deed
from City to Developer.
5. Waiver of Water/Sewer Connection Fee. Upon the condition that all Project Properties
are completed no later than the Construction Completion Date, City agrees to waive the water/sewer
connection fee for all Project Properties.
6. Title Insurance. Within five (5) days after the Effective Date, Developer shall order a title
commitment for an extended coverage ALTA owner’s policy of title insurance issued by Transnation Title
Agency (the “Title Company”) for the Project Properties in the amount of the total purchase price for the
Project Properties and bearing a date later than the Effective Date, along with copies of all of the underlying
documents referenced therein (the “Title Commitment”). Developer shall cause the Title Company to issue
a marked-up commitment or pro forma owner’s policy with respect to the Project Properties at the Closing
naming Developer as the insured and in form and substance reasonably satisfactory to Developer, but
subject to Permitted Exceptions (defined below). As soon as possible after the Closing, Developer shall
cause the Title Company to furnish to Developer an extended coverage ALTA owner’s policy of title
insurance with respect to the Project Properties (the “Title Policy”). City shall be responsible for the cost
of the Title Policy; provided, however, Developer shall be solely responsible for the cost of any
endorsements to the Title Policy that Developer desires.
7. Title Objections. Developer shall have until the end of the Inspection Period (as defined
below) within which to raise objections to the status of City’s title to the Project Properties. If objection to
the title is made, City shall have seven (7) days from the date it is notified in writing of the particular defects
claimed to either (a) remedy the objections, or (b) notify Developer that it will not remedy the objections.
If Developer does not notify City in writing as to any title or survey objections, then Developer will be
deemed to have accepted the condition of title as set forth in the Title Commitment. If City is unwilling or
unable to remedy the title or obtain title insurance over such defects within the time period specified, then
notwithstanding anything contained herein to the contrary, Developer may, at its option, upon written notice
to City, either (i) terminate this Agreement and neither City nor Developer shall have any further obligation
to the other pursuant to this Agreement, except as otherwise provided herein, or (ii) waive such objection,
in which case such objection shall become a Permitted Exception, and thereafter proceed to the Closing
according to the terms of this Agreement. Any matter disclosed on the Title Commitment that is waived or
not objected to by Developer shall be deemed a “Permitted Exception.”
8. Property Taxes and Assessments. City shall be responsible for the payment of all real
estate taxes and assessments that become due and payable prior to Closing, without proration. Developer
shall be responsible for the payment of all real estate taxes and assessments that become due and payable
after Closing, without proration.
9. Survey. Developer at its own expense may obtain a survey of any or all of the Project
Properties, and Buyer or its surveyor or other agents may enter any of the Project Properties for that purpose
prior to Closing. If no survey is obtained, Developer agrees that Developer is relying solely upon
Developer's own judgment as to the location, boundaries, and area of the Project Properties and
improvements thereon without regard to any representations that may have been made by City or any other
person. In the event that a survey by a registered land surveyor made prior to Closing discloses an
encroachment or substantial variation from the presumed land boundaries or area, City shall have the option
of affecting a remedy within seven (7) days after disclosure, or terminate this Agreement. Developer may
elect to purchase the Project Properties subject to said encroachment or variation.
10. Inspection Period. At Developer’s sole option and expense, Developer and Developer’s
agents may conduct inspections of each of the Project Properties within thirty (30) days after the Effective
Date (“Inspection Period”). Developer’s inspection under this Paragraph may include, by way of example
but not limitation, inspections of any existing improvements to each Parcel, other systems servicing the
Parcel, zoning, and the suitability for Developer’s intended purposes for each Parcel. If Developer, in
Developer’s reasonable discretion, is not satisfied with the results of the inspections for any reason,
Developer shall notify City in writing of Developer’s prior to expiration of the 30-day Inspection Period. If
Developer so notifies City, this Agreement shall be terminated and have no further force and effect. If no
written objection is made by Developer within the stated period, this inspection contingency shall be
deemed to be waived by Developer and the parties shall proceed to Closing in accordance with the terms
of this Agreement.
11. Condition of Project Properties. City and Developer acknowledge and agree that each
Parcel in the Project Properties is being sold and delivered “AS IS”, “WHERE IS” in its present condition.
Except as specifically set forth in this Agreement or any written disclosure statements, City has not made,
does not make, and specifically disclaims any and all representations, warranties, or covenants of any kind
or character whatsoever, whether implied or express, oral or written, as to or with respect to (i) the value,
nature, quality, or condition of any of the Project Properties, including without limitation, soil conditions,
and any environmental conditions; (ii) the suitability of the Project Properties for any or all of Developer’s
activities and uses; (iii) the compliance of or by the Project Properties with any laws, codes, or ordinances;
(iv) the habitability, marketability, profitability, or fitness for a particular purpose of the Project Properties;
(v) existence in, on, under, or over the Project Properties of any hazardous substances; or (vi) any other
matter with respect to the Project Properties. Developer acknowledges and agrees that Developer has or
will have the opportunity to perform inspections of the Project Properties pursuant to this Agreement and
that Developer is relying solely on Developer’s own investigation of the Project Properties and not on any
information provided to or to be provided by City (except as specifically provided in this Agreement). If
the transaction contemplated herein closes, Developer agrees to accept the respective Project Properties
acquired by Developer and waive all objections or claims against City arising from or related to such Project
Properties and any improvements thereon except for a breach of any representations or warranties or
covenants specifically set forth in this Agreement. In the event this transaction closes, then subject to City’s
express representations, warranties, and covenants in this Agreement, Developer acknowledges and agrees
that it has determined that the respective Project Properties it has acquired and all improvements thereon
are in a condition satisfactory to Developer based on Developer’s own inspections and due diligence, and
Developer has accepted such Project Properties in their present condition and subject to ordinary wear and
tear up to the date of Closing. The terms of this Paragraph shall survive the Closing and/or the delivery of
the deed.
12. Developer’s Representations and Warranties of Developer. Developer represents,
covenants, and warrants the following to be true:
a. Authority. Developer is a Michigan limited liability company. Developer has the
power and authority to enter into and perform Developer’s obligations under this Agreement.
b. Litigation. No judgment is outstanding against Developer and no litigation, action,
suit, judgment, proceeding, or investigation is pending or outstanding before any forum, court, or
governmental body, department or agency or, to the knowledge of Developer, threatened, that has
the stated purpose or the probable effect of enjoining or preventing the Closing.
c. Bankruptcy. No insolvency proceeding, including, without limitation, bankruptcy,
receivership, reorganization, composition, or arrangement with creditors, voluntary or involuntary,
affecting Developer or any of Developer's assets or properties, is now or on the Closing Date will
be pending or, to the knowledge of Developer, threatened.
13. Conditions Precedent. This Agreement and all of the obligations of Developer under this
Agreement are, at Developer’s option, subject to the fulfillment, before or at the time of the Closing, of
each of the following conditions:
a. Performance. The obligations, agreements, documents, and conditions required to
be signed and performed by City shall have been performed and complied with before or at the date
of the Closing.
b. City Commission Approval. This Agreement is approved by the Muskegon City
Commission.
14. Default.
a. By Developer. In the event Developer fails to comply with any or all of the
obligations, covenants, warranties, or agreements under this Agreement and such default is not
cured within ten (10) days after receipt of notice (other than Developer’s failure to tender the
purchase price in full at Closing, a default for which no notice is required), then City may terminate
this Agreement.
b. By City. In the event City fails to comply with any or all of the obligations,
covenants, warranties or agreements under this Agreement, and such default is not cured within ten
(10) days after receipt of notice, then Developer may either terminate this Agreement or Developer
may pursue its legal and/or equitable remedies against City including, without limitation, specific
performance.
15. Closing.
a. Date of Closing. The closing date of this sale shall be as mutually agreed by the
parties, but in no event later than _______________ (“Closing”), unless this Agreement is
terminated in accordance with its provisions. The Closing shall be conducted at such time and
location as the parties mutually agree.
b. Costs. The costs associated with this Agreement and the Closing shall be paid as
follows: (i) Developer shall pay any state and county transfer taxes in the amount required by law;
(ii) City shall pay the premium for the owner’s Title Policy, provided that Developer shall pay for
any and all endorsements to the Title Policy that Developer desires; (iii) City shall be responsible
to pay for the recording of any instrument that must be recorded to clear title to the extent required
by this Agreement; (iv) Developer shall pay for the cost of recording the deed; and (v) Developer
and City shall each pay one-half of any closing fees charged by the Title Company.
c. Deliveries. At Closing, City shall deliver a quit claim deed for the Project
Properties and Developer shall pay the purchase price. The quit claim deed to be delivered by City
at closing shall include the City Right of Reversion described in Paragraph 4 above. The parties
shall execute and deliver such other documents reasonably required to effectuate the transaction
contemplated by this Agreement.
16. Real Estate Commission. Developer and City shall each be responsible for any fees for
any real estate agents, brokers, or salespersons regarding this sale that it has hired, but shall have no
obligation as to any fees for any real estate agents, brokers, or salespersons regarding this sale that the other
party has hired.
17. Notices. All notices, approvals, consents and other communications required under this
Agreement shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by
fax or email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery
fees prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid.
The notice shall be effective immediately upon personal delivery or upon transmission of the fax or email;
one day after depositing with a nationally recognized overnight delivery service; and five (5) days after
sending by first class, registered, or certified mail.
Notices shall be sent to the parties as follows:
To City: City of Muskegon
Attn.: LeighAnn Mikesell, Deputy City Manager
933 Terrace Street
Muskegon, MI 49440
w/ copy to: Parmenter Law
Attn.: John C. Schrier
601 Terrace Street, Suite 200
Muskegon, MI 49440
Email: [email protected]
To Developer: James Williams
1482 Morgan Avenue
Muskegon, MI 49442
Email: [email protected]
18. Miscellaneous.
a. Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of the state of Michigan.
b. Entire Agreement. This Agreement constitutes the entire agreement of the parties
and supersedes any other agreements, written or oral, that may have been made by and between the
parties with respect to the subject matter of this Agreement. All contemporaneous or prior
negotiations and representations have been merged into this Agreement.
c. Amendment. This Agreement shall not be modified or amended except in a
subsequent writing signed by all parties.
d. Binding Effect. This Agreement shall be binding upon and enforceable by the
parties and their respective legal representatives, permitted successors, and assigns.
e. Counterparts. This Agreement may be executed in counterparts, and each set of
duly delivered identical counterparts which includes all signatories, shall be deemed to be one
original document.
f. Full Execution. This Agreement requires the signature of all 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.
g. Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of any other provision of this Agreement.
h. 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 of this Agreement shall not in any way be impaired or
affected.
i. No Reliance. Each party acknowledges that it has had full opportunity to consult
with legal and financial advisors as it has been deemed necessary or advisable in connection with
its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in
reliance on any representations, warranties, or statements made by the other party other than those
expressly set forth in this Agreement.
j. Assignment or Delegation. Except as otherwise specifically set forth in this
Agreement, neither party shall assign all or any portion of its rights and obligations contained in
this Agreement without the express or prior written approval of the other party, in which approval
may be withheld in the other party's sole discretion.
k. Venue and Jurisdiction. The parties agree that for purposes of any dispute in
connection with this Agreement, the Muskegon County Circuit Court shall have exclusive personal
and subject matter jurisdiction and that Muskegon County is the exclusive venue.
This Agreement is executed effective as of the Effective Date set forth above.
CITY: DEVELOPER:
CITY OF MUSKEGON JAMES WILLIAMS
By: _______________________________ By: _______________________________
Name: Ken Johnson
Title: Mayor Dated: __________________
Dated: __________________
By: _______________________________
Name: Ann Marie Meisch
Title: Deputy City Manager
Dated: __________________
Exhibit A
The following described premises located in the City of Muskegon, County of Muskegon, State of
Michigan, and legally described as follows:
1) CITY OF MUSKEGON URBAN RENEWAL PLAT NO 3 LOT 531.
1065 James – Parcel # 61-24-612-000-0531-00
Price: $4,875.00
2) CITY OF MUSKEGON URBAN RENEWAL PLAT NO 4 LOT 683 EXCLUDING SOUTH 21 FEET
THEREOF.
266 Meeking – Parcel # 61-24-613-000-0683-00
3) CITY OF MUSKEGON URBAN RENEWAL PLAT NO 4 LOT 684 EXCLUDING SOUTH 31 FEET
THEREOF & SOUTH 21 FEET LOT 683.
270 Meeking – Parcel # 61-24-613-000-0684-00
4) CITY OF MUSKEGON URBAN RENEWAL PLAT NO 4 NORTH 19 FEET OF LOT 685 & SOUTH
31 FEET LOT 684.
280 Meeking – Parcel # 61-24-613-000-0684-10
5) CITY OF MUSKEGON URBAN RENEWAL PLAT NO 4 LOT 685 EXCLUDING NORTH 19 FEET
THEREOF.
290 Meeking – Parcel # 61-24-613-000-0685-00
The four Meeking addresses above will be combined and split into three parcels at a price of $5,400
each for a total of $16,200.
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 4/26/2022 Title: Musketawa Trail project – Change Order
#003
Submitted By: Joel Brookens Department: DPW, Engineering
Brief Summary: Staff is requesting approval of Change Order #003 on the Musketawa Trail
Connector project as the overall project has exceeded staff approval levels for change orders.
Detailed Summary:
The majority of Change Order #003 represents a design error. Sand fill is needed to bring the grade up
to sub-grade from milling the pavement. Also, some driveways are required to be poured on a
Saturday and needed to be opened by Monday, which requires a different mix design.
Change Order #003 requests a net increase to the project of $ 9,019.50 above the previously
approved requests.
This change order will result in the following final values for the project:
As-Bid Cost = $ 518,602.35
Current Cost = $ 561,874.26
Net Change = $ 43,271.91 (8.34% Increase)
Amount Requested: $ 9,019.50 Amount Budgeted: $650,000.00
Fund(s) or Account(s): 202-99118 Fund(s) or Account(s): 202-99118
Recommended Motion:
Authorize staff to approve Change Orders #003 to Project 99118 in the amount of $9,019.50 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:
Contract Modification
4/14/2022 2:12 PM
Michigan Department of Transportation
FieldManager 5.3c
Contract: 61000-208592, Hot mix asphalt shared use path.
Cont. Mod. Revision Cont. Mod. Electronic Net Change Awarded Contract Amount
Number Number Date File Created
3 4/11/2022 Yes $9,019.50 $518,602.35
Route Managing Office District Entered By
City of Muskegon 03027 Joel Brookens
Contract Location
Port City Boulevard/Latimer Drive/Black Creek Road from Keat
Short Description
Adding addtional items due to plan errors.
Description of Changes
A. Original Contract Amount: $518,602.35
B. Current Contract Value (including this revision): $ 561,874.26
C. Net Total Change (B-A): $ 43,271.91
D. Net Percent Change (C/A*100): 8.34%
E. MDOT Oversight Project: Yes
F. Revision Summary: This Contract Modification requires Tier II approval.
There will be no extension of time. There will be no Traffic Control Adjustment allowed for this Contract Modification.
In addition, authorization is requested to add the following extra pay items to the contract:
Subbase, CIP 350 CYD at $20.52 per CYD = $7,182.00
Cement 7 Tons at $262.50 per ton = $ 1,837.50
Total $ 9,019.50
By mutual agreement, these listed unit price costs are full compensation for all labor, equipment and materials necessary to
construct these items of work in accordance with the 2012 MDOT Standard Specifications for Construction, contract Special
provisions, MDOT Standard Plans and/or as directed by the Engineer.
New Items
Item Prop. Proj. Proposed
Item Description Code Line Line Project Catg. ItemType Quantity Unit Unit Price Dollar Value
Cement 6030005 0720 0720 208592A 0001 Modified 7.000 Ton 262.50000 $1,837.50
Reason: The concrete driveway for businesses with one driveway will have to be placed on a Saturday and open to traffic by Monday.
This requires a different mix design with more cement in the mix. The unit cost of $262.50 per ton was deemed reasonable since the
MDOT 2021 Weighted Average Price report, reported an averager low 3 bidders price of $337.91 per ton.
Subbase, CIP 3010002 0715 0715 208592A 0001 Extra 350.000 Cyd 20.52000 $7,182.00
Reason: Item was inadvertently left off plans. Unit cost price of $20.52 per CYD was deemed reasonable since the MDOT Weighted
Average Price report for 2021 has an average award unit cost price for this item from $ 0.41 to $ 65.00 per CYD.
Total Dollar Value: $9,019.50
Contract: 61000-208592 Cont. Mod.: 3 Page 1 of 3
Contract Modification
4/14/2022 2:12 PM
Michigan Department of Transportation
FieldManager 5.3c
Project / Category Summary
Project/Category Federal Finance Control
Project/Catg Description Number Project Status System Section Dollar Value
208592A Hot mix asphalt shared use 21A0562 MDOT Oversight NRT 61000
path and timber boardwalk.
0001 Road Work Federal 88%/City of Muskegon 12% $9,019.50
Total: $9,019.50
Total Net Change Amount: $9,019.50
Contract: 61000-208592 Cont. Mod.: 3 Page 2 of 3
Contract Modification
4/14/2022 2:12 PM
Michigan Department of Transportation
FieldManager 5.3c
If authorized, the contractor agrees to do the work outlined above under the direction of the Engineer, and to accept as
payment in full the basis of payment as indicated. Prime Contractor, you are authorized and instructed as the contractor
to do the work described herein in accordance with the terms of your contract.
Prime Contractor: Kamminga & Roodvoets, Inc. Recommended by Construction Engineer: Gregg Zack -
Muskegon TSC
Signature Date Signature Date
Prepared by Project Engineer: Leo Evans Authorized by Managing Office Manager:
Signature Date Signature Date
Prepared by Consultant Project Manager: Authorized by Region Construction Engineer:
Signature Date Signature Date
Recommended by Local Agency: Authorized by Bureau of Field Services:
Signature Date Signature Date
Authorized by Airport Sponsor: Authorized by Airports Division:
Signature Date Signature Date
FEDERAL PARTICIPATION - ACTION BY F.H.W.A.
___Approved ___Not Eligible
___See Letter Dated _________ (Signature) (Date)
FEDERAL PARTICIPATION - ACTION BY F.A.A.
___Approved ___Not Eligible
___See Letter Dated _________ (Signature) (Date)
Contract: 61000-208592 Cont. Mod.: 3 Page 3 of 3
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: CSX Agreement
Submitted By: LeighAnn Mikesell Department: City Manager
Brief Summary: Staff is seeking approval to proceed with the CSXT agreement following our due
diligence period.
Detailed Summary: In December of 2021, the City Commission approved the agreement with
CSXT for the purchase and removal of the CSXT railroad line from the Jaycees Launch Ramp to
the Boys and Girls Clubhouse. During the due diligence period, we have obtained a survey of the
entire line, have reviewed all of the crossing agreements and encroachments, and are obtaining a
title commitment. A consulting firm has been hired through a State of Michigan grant to complete
the environmental review which can take place outside of the due diligence period. As noted in the
attorney’s memo, there are no concerns with continuing forward through the process.
Amount Requested: $1.688 million Amount Budgeted: $2 million
Fund(s) or Account(s): State/Federal Grants Fund(s) or Account(s): N/A
Recommended Motion: to authorize staff to proceed with the CSXT agreement.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
Date: April 15, 2022
To: Mayor and City Commission
From: John Schrier
Re: CSX Railroad Track Property Acquisition
As you will recall, the City Commission authorized the acquisition of railroad track from
CSX from just west of Heritage Landing to the westerly end of the line on the former
Sappi site. As part of the purchase agreement, CSX agreed to sell additional track on
the former Sappi site and two small parcels on the former Muskegon Country Club site
to Pure Muskegon, and a related party, for no “additional consideration”. The City and
Pure Muskegon retained a law firm which specializes railroad matters to negotiate the
purchase agreement. City and Pure Muskegon shared the expense of that
representation.
That effort culminated in the execution of a purchase agreement dated January 6, 2022.
The purchase price is $1,648,000, of which $164,800 has been deposited with a title
company. The City has 120 days from January 6, 2022 to undertake its due diligence.
We can, but are NOT recommending to, terminate the agreement and obtain the
deposit back. Rather, staff is recommending to proceed. Five days after the due
diligence period ends, i.e., May 6, 2022, the City will owe an additional $40,000 to be
used by CSX to file pleadings necessary to receive consent from an administrative
agency of the federal government to sell the railroad track. Once the administrative
order is entered with the appropriate federal agency, closing will occur and the
remainder of the purchase price will be owed. CSX will then have a limited period of
time to actually remove the track.
The only use, and only practical use, of the property which the City will acquire is for a
trail, e.g., bike, walking, cross country skiing, snowshoe, etc. Generally, the property we
are acquiring is several miles long and 32 feet wide. There will be a provision that if the
federal regulatory body believes it is necessary to place the line back in service (not
likely), CSX can re-acquire it. The City would then be paid the then fair market value of
the line.
The City has undertaken no due diligence as to the former Sappi site. That has been
left to Pure Muskegon at its sole expense. At closing, the former Sappi site and two
isolated portions of track on the former Muskegon Country Club, will be transferred
directly to Pure Muskegon and its affiliate.
O:\CLERK\COMMON\WORD\AGENDA ITEMS FOR NEXT MEETING\2022\042622\18B_14L9508-TO MAYOR AND
COMMISSION CSX LSM.DOCX
As to the track which the City will acquire, the following has been undertaken:
1) We have reviewed approximately 100 encroachments. The majority are either
private crossings of the railroad track or permits to place pipe under or lines over
the track. There is also permission to construct additional spurs between no
longer existing foundry sites. In addition, the City has the right to have public
crossings. The encumbrances have been reviewed. Many of the agreements
are between corporate entities which no longer exist and are for the benefit of
business which are longer present. None of the encumbrances give me concern.
2) A survey was ordered as to the property the City is acquiring and was delivered
earlier this month. There is nothing showing on the survey which gives me
concern.
3) Upon receipt of the survey, it was forwarded to me, and a title insurance policy
has been ordered. I expect to have the title commitment prior to the City
Commission meeting on April 26, 2022. Given the previous disclosure by CSX of
the 100+ encroachments, I do not expect to have any concerns with the title
commitment.
4) City staff retained an environmental consultant. There has been a substantial
amount of previous testing of the land the City is acquiring. Discussions between
the City’s consultant and state regulators have not raised any concerns about our
acquisition. The City will need to undertake additional environmental work, but
no remediation, to ensure that the City does not become liable for any pollution
or remediation costs. The City’s consultant is working with state regulators to
obtain a grant to cover future environmental reporting and work plan
requirements. There is nothing that gives me concern.
The recommendation is to proceed.
O:\CLERK\COMMON\WORD\AGENDA ITEMS FOR NEXT MEETING\2022\042622\18B_14L9508-TO MAYOR AND
COMMISSION CSX LSM.DOCX 2
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: Amendment to the Ride Muskegon
Agreement
Submitted By: LeighAnn Mikesell Department: City Manager’s Office
Brief Summary: City staff is seeking approval of the final exhibits in the operating agreement with
Ride Muskegon, LLC.
Detailed Summary: When the operating agreement was approved by the commission, a motion
was made to return to the commission with the proposed final attachments for adoption. The final
attachments are provided for consideration as is the executed agreement.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: Approve the final exhibits in the operating agreement with Ride Muskegon,
LLC.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
ATTACHMENT A
NOTICE TO PROCEED
CITY OF MUSKEGON
To: Ride Muskegon, LLC Date: ____________, 2022
Contract: Operating Agreement for Shared-Mobility Service in the City of Muskegon
Project: Shared-Mobility Service Project
Authorization:
You are notified that, in accordance with the Operating Agreement dated March ____, 2022,
incorporated herein by reference, you are authorized by the City of Muskegon, State of Michigan,
to establish and commence a Shared-Mobility Service program in the City of Muskegon, State of
Michigan, for an initial term of five years (5), with the option to enter into renewal terms, in
accordance with Article II of the Operating Agreement entered into between the parties dated
March ____, 2022, incorporated herein by reference.
Program Start Date: April __________, 2022
Initial Program Renewal Date: April __________, 2027
By:
Frank Peterson
Its: City Manager
ACCEPTANCE OF NOTICE
Receipt of the above NOTICE TO PROCEED is hereby acknowledged by:
OPERATOR:
RIDE MUSKEGON, LLC
a Michigan limited liability company
By: Stephen Parent
Its: Member
By: Terry Puffer
Its: Member
21
ATTACHMENT B
KEY PERFORMANCE INDICATORS
Performance Indicator Description Measure Period Measured Unit Threshold
Monthly reports and limited
System Reporting Monthly/Annually See below See below
Administration access provided.
Number of Shared Mobility Devices E-scooter;
100%
available for use in a day, relative to
Device Availability Average monthly
the number of Shared Mobility E-bicycle (if
N/A
Devices in possession of Operator implemented)
% of Shared
Device Maintenance Number of Shared Mobility Devices
Monthly Mobility Devices in 80%
and Inspection receiving a maintenance inspection
service
At least two (2) times per
month, not to exceed
Station Maintenance Stations receiving a cleaning and
twenty-one (21) days % of stations 10%
and Inspection inspection
between cleaning and
inspections
Time to respond to reported Per occurrence, as
Between 30
deficient, damaged, or unclean necessary or during Complaint response
Device Response Time minutes to 12
station components regularly scheduled time
hours
of devices. maintenance monthly
Percentage of time that the
Website/Mobile App in As needed during the term % of total minutes
website and mobile app are in 99%
Service of the Agreement per month
service
Live Response – Operator will
maintain a toll-free customer service
number from 9am – 9 pm;
Customer Service As needed during the term
Message (after hours) – 24/7 after - Minutes/Hours 95%
Availability of the Agreement
hours to address customer concerns
and inquires
Complaint
acknowledgement
Reasonable
Any given point in time and Operation
Customer Service Response time between customer amount of time,
during the term of the resolution/response
Response Time inquiry and complaint resolution with goal of 24
Agreement time.
hours or less
Measured in
minutes/hours.
See Redistribution
Device Distribution See below See below See below
(below)
Redistribution. The City of Muskegon will continuously work with Ride Muskegon, LLC to
identify High Priority Areas based on usage in the designated Operating Areas. Once High Priority
Areas are identified, Ride Muskegon, LLC, will use its best efforts to distribute a reasonable
number of Shared-Mobility Devices to areas to satisfy the demands of said areas in an effort to
increase the number of Shared-Mobility Devices available to the public.
22
ATTACHMENT C
City of Muskegon Location Specific Conditions
None provided as of date of Operating Agreement.
23
ATTACHMENT D
USER FEES FOR INITIAL LAUNCH
The following fee schedule is reflective of the initial fees to charge Users decided by the parties
and are subject to change from time to time.
Pay as You Go $1.25 to unlock; $.20 per minute
Non-Parking Zone Fee: $5.00 (Free 1st Occurrence)
Idle Fee $0.35 Per Minute
(Shared Mobility Device Remains Active, but Parked)
Surcharge $0.25 per use
24
ATTACHMENT E
CERTIFICATE OF INSURANCE
Operator will provide Certificate of Insurance from Hanover Insurance authorizing
issuance such certifications and insurance subsequent to the successful implementation of the
Operating Agreement and provisioning of Shared Mobility Devices.
25
ATTACHMENT F
APPROVED LOCATIONS FOR
SHARED-MOBILITY DEVICES AND SERVICES
LINK to interactive map of locations:
https://earth.google.com/earth/d/1v4fab3brssz5OBwVxGDGf1q_h7MWSE0h?usp=sharing
26
16 CITY LOCATIONS:
1. 794 Kitchen/Rake Brewery
2. Lakeside Parking
3. Additional Beach Parking
4. Coast Guard Beach Parking
5. Ice Cream Beach Parking
6. Dr Rolfs BBQ Western
7. Trunk Depot Western
8. Shoreline Inn
9. Mart Dock
10. Heritage Landing – TBD
11. Farmers Market Western
12. Frauenthal Western
13. Burl and Sprig
14. 3rd St
15. Visit Muskegon Western
16. Rotary Park
27
1. 794 Kitchen/Rake Brewery:
2. Lakeside Parking:
28
3. Additional Beach Parking:
4. Coast Guard Parking:
29
5. Ice Cream Beach Parking:
6. Dr Rolfs BBQ Western
30
7. Trunk Depot Western
8. Shoreline Inn
31
9. Mart Dock
32
10. Heritage Landing
TBD
11. Farmers Market Western
33
12. Frauenthal Western
13. Burl and Sprig
34
14. 3rd St
35
15. Visit Muskegon Western
16. Rotary Park
36
ATTACHMENT G
Map of Furnished Facilities and Scope of Facility Use
Not Applicable.
37
OPERATING AGREEMENT
RIDE MUSKEGON
&
CITY OF MUSKEGON
TABLE OF CONTENTS
I. DEFINITIONS ......................................................................................................................... 2
II. TERM AND RENEWAL ....................................................................................................... 3
III. USE OF PREMISES .............................................................................................................. 3
A. Approvals .................................................................................................................. 3
B. Municipal Authorization ........................................................................................... 4
C. State Law................................................................................................................... 4
IV. SERVICES ............................................................................................................................. 4
A. Establishing Goals .................................................................................................... 4
B. Location of Fleet ....................................................................................................... 4
C. Hours ..................................................................................................................... 4
D. Tracking .................................................................................................................... 4
V. EQUIPMENT .......................................................................................................................... 5
A. Installation of Shared-Mobility Devices ................................................................... 5
B. Application and Web Page........................................................................................ 5
C. Usage ..................................................................................................................... 5
D. Maintenance by Operator .......................................................................................... 5
E. Facilities .................................................................................................................... 5
F. Removal by Muskegon ............................................................................................. 5
G. Standards ................................................................................................................... 5
H. Equipment Specifications, Maintenance, and Security............................................. 6
VI. OPERATIONS....................................................................................................................... 7
A. Support .................................................................................................................... 7
B. Business Operation ................................................................................................... 7
C. Customer Service ...................................................................................................... 7
D. Staffing ..................................................................................................................... 7
E. Public Outreach ......................................................................................................... 7
F. Non-discrimination. .................................................................................................. 7
G. Advertising Policies .................................................................................................. 7
VII. USER FEES .......................................................................................................................... 8
A. Responsibility. .......................................................................................................... 8
B. Payment Methods ...................................................................................................... 8
VIII. GENERAL OPERATIONAL CONDITIONS ON USE ................................................. 8
A. Safety ..................................................................................................................... 8
B. Protocols ................................................................................................................... 8
C. Training ..................................................................................................................... 8
D. Speeds ..................................................................................................................... 8
E. Bicycle and Scooter Parking ..................................................................................... 8
IX. LOCATIONAL RESTRICTIONS ...................................................................................... 9
A. Out of Hub Fee .......................................................................................................... 9
B. Out of Area Fee. ........................................................................................................ 9
C. Restricted Usage........................................................................................................ 9
D. Response ................................................................................................. 9
E. Geofencing ................................................................................................................ 9
X. DATA ....................................................................................................................................... 9
A. Collection .................................................................................................................. 9
B. Sharing ..................................................................................................................... 9
C. Privacy ................................................................................................................... 10
XI. COOPERATION AND DESIGNATED PARKING ZONE RESTRICTIONS ............ 10
XII. TERMINATION ................................................................................................................ 10
A. Breach by Operator ................................................................................................. 10
B. Breach by Muskegon .............................................................................................. 10
C. Voluntary by Operator or Muskegon ...................................................................... 11
XIII. CONDITION ON TERMINATION ............................................................................... 11
XIV. INTELLECTUAL PROPERTY ..................................................................................... 11
XV. MARKS ............................................................................................................................... 11
XVI. REPRESENTATIONS AND WARRANTIES............................................................... 11
A. Operator. ................................................................................................................. 11
B. Muskegon ................................................................................................................ 12
XVII. INSURANCE ................................................................................................................... 12
A. Carrier ................................................................................................................... 12
B. Certificate of Insurance .......................................................................................... 12
C. Additional Insured .................................................................................................. 12
D. Cancellation ............................................................................................................ 12
E. Insurance Coverages ............................................................................................... 12
(1) Commercial General Liability Insurance ..................................................... 12
(2) Workers Compensation ................................................................................ 13
(3) .................................................................... 13
(4) Commercial Business Automobile Liability Insurance ................................ 13
(5) Commercial Umbrella Liability Insurance ................................................... 13
(6) Application to Others.................................................................................... 13
(7) Maintaining Coverage .................................................................................. 14
(8) Continuing Obligation .................................................................................. 14
XVIII. INDEMNIFICATION ................................................................................................... 14
XIX. LIMITATION OF LIABILITY ...................................................................................... 14
XX. DAMAGE TO PROPERTY .............................................................................................. 15
XXI. TAXES ............................................................................................................................... 15
XXII. FORCE MAJEURE ........................................................................................................ 15
XXIII. DEFAULT ...................................................................................................................... 15
XXIV. SURCHARGES .............................................................................................................. 16
XXV. NOTICES AND REPRESENTATIVES ....................................................................... 16
XXVI. GENERAL PROVISIONS............................................................................................ 16
A. Assignment ............................................................................................................. 16
B. Binding Effect ......................................................................................................... 16
C. Caption ................................................................................................................... 16
D. Counterparts ............................................................................................................ 17
E. Entire Understanding .............................................................................................. 17
F. Extinguishment and Replacement........................................................................... 17
G. Modification ............................................................................................................ 17
H. Independent Counsel Costs .................................................................................. 17
I. Interpretation ........................................................................................................... 17
J. Waiver ................................................................................................................... 17
K. Registration ............................................................................................................. 17
L. Severability ............................................................................................................. 17
M. Survival of Certain Terms....................................................................................... 18
N. No Third-Party Beneficiaries .................................................................................. 18
O. Public Records ........................................................................................................ 18
P. ....................................................................................................... 18
XXVII. RELATIONSHIP ......................................................................................................... 18
XXVIII. ATTACHMENTS ....................................................................................................... 18
Attachment A: Notice to Proceed with E-scooters and E-bikes....................................... 20
Attachment B: Key Performance Indicators .................................................................... 22
Attachment C: City of Muskegon Specific Area Conditions........................................... 18
Attachment D: User Fees ................................................................................................. 27
Attachment E: Certificate of Insurance............................................................................ 29
Attachment F: Approved locations for Shared-Mobility Devices and Shared-Mobility
Services ..................................................................................................... 30
Attachment G: Map of Furnished Facilities and Scope of Facility Use .......................... 18
OPERATING AGREEMENT
This Operating Agreement ( Agreement ) is made by and between Ride Muskegon, LLC,
a Michigan limited liability company ( Operator ), and the City of Muskegon, Michigan
( Muskegon and together with Operator, collectively, Parties, ). The Parties
agree to the terms and conditions of this Agreement.
RECITALS
WHEREAS, the Parties agree to the following:
A. That authority to enter into this Agreement and, each Party represents and warrants
obligations, have been duly authorized.
B. The Parties acknowledge that the mutual promises and covenants contained herein,
and other good and valuable consideration are sufficient and adequate to support this Agreement.
C. Muskegon is a municipality incorporated under the laws of Michigan and has
jurisdiction over the operations conducted within its municipal boundaries.
D. A goal of Muskegon is to provide safe and affordable multi-modal transportation
options to all residents, reduce traffic congestion, and maximize carbon free mobility;
E. Scooter share and other Shared-Mobility devices, products, and services are a
component to
scooter share and related Shared-Mobility services available to residents and employees;
F. Operator is a qualified provider of electronic scooters ( e-scooters ) and other
shared electronic mobility devices, products, and services and proposes to operate a scooter share
and Shared-Mobility program within Muskegon;
G. Operator requests the non-exclusive use of Muskegon streets, sidewalks, and public
ways to provide e-scooter and other electronic Shared-Mobility services efficiently and effectively;
and
H. The use of Muskegon streets, sidewalks, and public ways for e-scooter share and
other Shared-Mobility Devices is a benefit to the residents and businesses of Muskegon.
I. That the purpose of this Agreement is to establish the terms and conditions relating
-scooter and other electronic Shared-Mobility services ( Shared-
Mobility Services ) in the jurisdictions that make up Muskegon.
1
K:\Parent, Stephen\Ride Muskegon, LLC\Operating Agreement - final.docx
THEREFORE, in consideration of the foregoing and the acceptance of all response,
verbal and written, submitted by Operator, hereby incorporated by reference, and intending to be
legally bound, the Parties enter into an Agreement for Shared-Mobility Services as follows:
I. DEFINITIONS
The following terms will be construed and interpreted as follows:
A. Effective Date means the date on which this Agreements is fully approved and
executed, as shown by the final signature on the signature page of this Agreement.
B. Intellectual Property Shared-Mobility Devices and other
equipment, all materials and Marks prepared by Operator or its Affiliates in connection with this
Agreement, copyrights, software, patents, patent applications and patent disclosures and inventions
(whether patentable or not), all know-how, show-how and confidential information related to any
of the foregoing, and together with all of the moral rights in and goodwill associated therewith,
derivative works, corrections, enhancements, updates, modifications, tangible or intangible
proprietary information, rights to apply for registration, except for any confidential information of
Muskegon.
C. Marks means trademarks, service marks, trade secrets, trade dress, trade names,
logos, taglines, corporate names and domain names, insignia, and symbols or decorative signs.
D. Operating Area means the designated jurisdictional boundaries of Muskegon
where Shared-Mobility Devices are authorized to be operated by users.
E. City Property means property owned, leased, or controlled by the City of
Muskegon, including but not limited to public right of way, easements, city and regional parkland,
and green space surrounding City-owned Buildings.
F. Shared-Mobility Devices means e-bikes, e-scooters, and additional related
products provided by Operator to Muskegon approved and agreed to by the Parties in this
Agreement.
G. Shared-Mobility Services means all e-scooter and other electronic Shared-
Mobility services provided by Operator to Muskegon approved and agreed to by the Parties in this
Agreement.
H. Designated Parking Zone is a space located in the public right-of-way
specifically identified by City of Muskegon for parking Shared-Mobility Devices between trips,
which will not be used by any other company or Competitor, except for Operator, during this
Agreement. Muskegon sixty (60)
days written notice, or as otherwise mutually agreed upon between the Parties in writing.
I. Term means collectively the Initial Term, and any potential Renewal Terms.
J. Service Area
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K. E-Scooter is defined as an electric skateboard, which includes a stand-on scooter
with an electric motor per Michigan Vehicle Code Act 300, 257.660 (MCL 257-660).
L. Electric Assist Bicycle is defined as a bicycle equipped with an electric motor
that provides assistance only when the rider is pedaling and disengages or ceases to function when
the bicycle reaches a speed of twenty (20) miles per hour per Michigan Vehicle Code, Act 300,
257-13e (MCL 257-13e).
M. Transit Zone means any portion of a street, sidewalk, or other area intended for
use of transit vehicles or patrons, including bus stops, bus platforms, transit shelters, passenger
waiting areas, and bus layover and staging zones.
N. is defined as any person or entity that engages in any business, trade,
or similar operation to the type of business conducted by Operator within the Operating Area and
also competes with Operator in the Operating Area. Notwithstanding the foregoing, Lake Effect
Competitor regarding any current or future agreement between Lake Effect and Muskegon
concerning mobility devices owned by Lake Effect and offered for rent to and usage by their
customers. Accordingly, in the event Lake Effect and Muskegon enter into an agreement similar
to this Operating Agreement, use of designated parking zones specifically identified
under such prospective agreement that are located on City Property within the Service Area will
not be subject to the restrictions and terms and conditions as contained in Article XI during the
term or any renewal term of this Agreement.
II. TERM AND RENEWAL
A. Initial Term. This Agreement and the Parties respective performance will
commence on the Effective Date and continue for a period of five (5) years from the Effective
Date ( Initial Term ), unless sooner terminated as provided herein. Upon expiration of the Initial
Term, this Agreement will automatically renew for up to four (4) additional five (5) year periods
(each five (5) year period is a Renewal Term ) unless either Party provides written notice to the
other Party of its election not to renew no later than one hundred twenty (120) days prior to the
expiration of the Initial Term or a Renewal Term.
III. USE OF PREMISES
Subject to the conditions of this Agreement, Muskegon hereby grants Operator a license to
operate and provide the services and products described herein within its jurisdiction and to access
designated locations approved by Muskegon for the purpose of installing, establishing, and
maintaining docking stations, Shared-Mobility Devices and Services. This license is subject to the
following conditions:
A. Approvals. Operator will obtain all required federal, state, and local licenses and
permits necessary to perform the services. Operator will maintain good standing and comply with
all required federal, state, municipal and local laws, regulations, rules, and ordinances. If any
governmental restrictions are imposed on Operator that would necessitate alteration of the
performance of the services offered by Operator under this Agreement, Operator will immediately
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notify Muskegon and will work with Muskegon in good faith to modify the services in a way to
comply with such restriction but also maintains the essence of this Agreement.
B. Municipal Authorization. Operator acknowledges that it may be required to
obtain additional approvals from Muskegon to conduct certain aspects of its services, including
establishing docking stations in the public right of way. Muskegon agrees to assist Operator, as
appropriate, with navigating its approval procedures to obtain required licenses, permits,
authorizations, approvals, licenses, or consents. Notwithstanding this commitment, Muskegon
cannot guarantee approval of any application or request of Operator and nothing in this Section
will be interpreted to do so. Furthermore, if such authorization cannot be obtained, the Agreement
will not become binding on Operator and neither Party will be held liable for such failure.
C. State Law. The Parties acknowledge that use of the Shared-Mobility Devices is
subject to the laws of the State of Michigan. To the extent legislative efforts are needed at the state
level, Operator will be solely responsible for all such efforts that may be necessary.
IV. SERVICES
A. Establishing Goals. Fleet size and service areas will be based on reasonable goals.
Parties will work together to create and update goals based on data and usage. Operator will
comply with all reasonable requests to deploy, establish, and maintain Shared-Mobility Devices
and Services, throughout the jurisdiction of Muskegon, based on the goals set by the Parties subject
to the conditions contained in this Agreement. Both Parties acknowledge that during a global
pandemic which has created great uncertainty in the production and movement of products
throughout the world. It is acknowledged that the project goals above are subject to change.
Therefore, Parties will provide written notice if a goal will not be achieved and such failure to
achieve a goal will not be considered a breach of this Agreement.
B. Location of Fleet. Operator will decide how to distribute Shared-Mobility Devices
and docking stations within the service area after consultation with Muskegon and its appropriate
municipal departments to ensure reasonable distribution. Operator will only locate Shared-
Mobility Devices and docking stations once written approval has been given by Muskegon
appropriate departments (which will be identified and disclosed by Muskegon to Operator
contemporaneously with executing this Agreement, or within a reasonable amount of time
thereafter). Once a location has been approved in writing it will be attached to this Agreement as
Attachment F and updated as needed.
C. Hours. Operator will provide a safe, clean, and accessible system that allows
public access and use of Shared-Mobility Devices and docking stations twenty-four (24) hours per
iod of
time, in accordance with Attachment B, Key Performance Indicators.
D. Tracking. (s) (which will be
identified and disclosed by Muskegon to Operator contemporaneously with executing this
Agreement, or within a reasonable amount of time thereafter) will communicate data and work
together to designate operating areas and regulate and track electric assist functions for Shared-
Mobility Devices through geo-fencing or other available means, as agreed upon by the Parties and
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otherwise described in the specific conditions found in this Agreement as Attachment C, City of
Muskegon Specific Area Conditions.
V. EQUIPMENT
Operator will provide the following equipment on or before the date on which the Shared-
Mobility Devices are deployed as required by this Agreement:
A. Installation of Shared-Mobility Devices. Operator will supply, install, deploy,
establish, and maintain the quantity of e-bikes, e-scooters, and docking stations as needed by
Muskegon.
B. Application and Web Page. Operator will establish a downloadable mobile
application where users can order services and obtain information. Operator will make the mobile
application available for download in Apple iOS and Android so that customers may download the
mobile application to their mobile devices and register for an account, subject to their acceptance
of the end user license agreement and other legal notices related to the mobile application.
Operator will make the mobile application available for use in connection with use of the Shared-
Mobility Devices, including unlocking a Shared-Mobility Device from a docking station.
C. Usage. Operator will have all necessary software and technology to be able to
monitor customer usage of Operators equipment and to make adjustment to quantities of Shared-
Mobility Devices at applicable docking stations.
D. Maintenance by Operator. Operator will maintain its Shared-Mobility Devices,
docking stations, mobile application, web page, and all software and technology in good working
order in accordance with the key performance indicators set forth in Attachment B, including
routine and necessary maintenance and repairs.
E. Facilities. Muskegon agrees to furnish, without charge, mutually agreeable
locations and
and for performing services as maybe reasonably necessary under this Agreement and found in
this Agreement as Attachment G, Map of Furnished Facilities and Scope of Facility Use.
Muskegon sixty (60) days written notice.
F. Removal by Muskegon. If an area in proximity to a docking station or other
property owned by Operator requires maintenance, is the location of an event, or otherwise requires
access by an agent of Muskegon, Muskegon may, with seven (7) written notice to
Operator, require the Operator to move its property. Such relocation may be temporary or
permanent; if permanent, Muskegon will work in good faith with the Operator to find a
replacement location. pense. If Muskegon is forced
property.
G. Standards. All Shared-Mobility Devices and docking stations will comply with
all safety standards established by the United States Consumer Product Safety Commission and any
other standard established under federal, state, and local law.
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H. Equipment Specifications, Maintenance, and Security. Operator will ensure that:
(1) All scooters must meet the requirements for lighting equipment set forth in
Michigan Vehicle Code 257.662.
(2) All bicycles and scooters must be powered by electric motor (internal
combustion engines are not permitted).
(3) Each bicycle and scooter must have a unique identifier, such as a number
visible to the user of the bicycle and scooter.
(4) All bicycles and scooters must include on-board GPS capabilities to ensure
ty to locate and retrieve bicycles and scooters at any time as
needed.
(5) Each bicycle and scooter must be maintained in a safe and operable
condition, and any bicycles or scooters deemed to be inoperable or unsafe
must be immediately made unavailable for use and removed from city
property.
(6) Operator will have the ability to remotely lock or disable any Shared-
Mobility Device deemed unsafe by either Party. Operator will remotely
lock or disable any unsafe Shared-Mobility Device upon request by
Muskegon.
(7) Operator must provide customers and city staff with a twenty-four (24) hour
customer service phone number and electronic communication method(s)
for reporting safety or maintenance issues with Shared-Mobility Devices,
or to ask questions or register complaints.
(8) All Shared-Mobility Devices, docking stations, and equipment used by
Operator in connection with this Agreement, unless otherwise expressly set
forth in this Agreement, will remain the property of Operator, and will at
no time be deemed a fixture or property belonging to Muskegon or any
other party. Any equipment belonging to Muskegon used in connection
with this Agreement, unless otherwise expressly set forth in this Agreement,
will remain the property of Muskegon. The Parties will not directly or
indirectly cause or create any mortgage, pledge, lien, charge, security
interest, claim or other encumbrance on or with respect to such equipment.
(9) Operator will require its users to acknowledge and accept the applicable
laws for operation of bicycles and scooters in the city of Muskegon and as
required in MCL Article 257, Sections 642(1), 648, 656, 662, 676, 679, 69,
and 79 and any applicable City of Muskegon Ordinance and require that
users comply with these laws prior to use.
(10) Operator must require its users to acknowledge and accept that the customer
will not use the bicycles or scooters in a manner that is illegal, reckless, or
in a manner that endangers others.
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VI. OPERATIONS
A. Support. Operator will provide ongoing support, training, parts, and other agreed
upon services and actions for its local operational personnel to ensure continued access and
enjoyment by users without interruption.
B. Business Operation. Operator will be solely and exclusively responsible for
system operations, maintenance, collection of fees and revenues, and promotion of products.
Muskegon acknowledges and agrees that Operator may, at its sole discretion, use subcontractors
and consultants to perform some or all of the services or provide devices under this Agreement.
In the event Operator utilizes subcontractors or consultants to perform any services or provide any
of the devices, Operator will remain responsible under this Agreement.
C. Customer Service. Operator will maintain a call center that can be accessed by
the public by phone or electronically. Operator will sufficiently staff such facilities and provide
all tools, parts, training, supplies, and equipment to ensure the highest level of customer service
with minimum response time waits.
D. Staffing. Operator will maintain qualified personnel and ensure adequate staffing
to respond to customer demands, including staffing for expected large-scale community and
college events. Operator will employ sufficient staff, contractors, and vendors in number and skill
to be capable of providing the services.
E. Public Outreach. At the request of Muskegon, Operator may have a designated
representative attend Muskegon-led public events and meetings as decided at the sole discretion
of Operator.
F. Non-discrimination. Operator, for itself, its successors in interest, and assigns, as
a part of the consideration hereof, does hereby covenant and agree that no person on the grounds of
race, color, national origin, veteran status, gender, sexual orientation, disability, or any other
protected class will be excluded from participation in, denied the benefits of, or be otherwise
subjected to discrimination in the use of any of its services.
G. Advertising Policies. If Operator desires to advertise on its equipment, any
advertisements must be pre-approved by Muskegon, and meet local and state advertising
regulations before they are installed or otherwise displayed. Such requests to Muskegon must
either be approved or denied in writing within twenty-one (21) business days of any written request
by Operator and, if Muskegon does not timely provide its decision, the advertisement will be
deemed approved for use. Operator agrees to abide by Muskegon advertising restrictions related
to advertisements and understands that Muskegon will have a right to review in advance, monitor
and or disallow all advertising that Operator proposes to install or display, in its sole discretion.
Muskegon will have the right to request, in writing, the removal of any advertising and Operator
will have twenty-one (21) business days to comply with the written request. Muskegon will not
be entitled to any revenue generated from advertising under this Agreement.
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VII. USER FEES
In addition to any other fees required under this Agreement, Operator may establish,
charge, and collect user fees from customers for the -bikes and e-scooters
, subject to the following conditions:
A. Responsibility. Operator will be solely responsible for processing and handling all
payments, fees, penalties, or other monetary transactions by users of the system.
B. Payment Methods. system will be designed to automatically complete
financial transactions entered with data input at its mobile application.
VIII. GENERAL OPERATIONAL CONDITIONS ON USE
A. Safety. Operator will require any user renting its Shared-Mobility Devices to have
read and acknowledged reading safety requirements and conditions of use. Operator and
Muskegon will work together to identify such safety requirements and conditions of use, but at a
minimum, such conditions will include informing the user that a helmet should be used for the
operation of Shared-Mobility Devices, speed limitations for such devices, and location restrictions
for such devices.
improper use of bicycles or scooters including, but not limited to, parking violations, will not
codes, ordinances, and safety
guidelines as required under this Agreement.
B. Protocols. Operator will develop and maintain protocols that can be utilized for
handling extreme weather events, emergency situations, extraordinary events, and maintenance
activities. These protocols will be made available to Muskegon upon request.
C. Training. Operator will develop and provide at least one training/educational class
at a location, to be determined by Muskegon, demonstrating how to access and use Shared-
Mobility Devices and Shared-Mobility Services. Operator will report back to Muskegon on
attendance and engagement for the training upon completion. Operator will work with Muskegon
to develop and implement a marketing and outreach plan for the training class.
D. Speeds. Subject to further restrictions under this agreement, Operator will ensure
that the maximum operating speed for the electric function of Shared-Mobility Devices does not
exceed twenty (20) miles per hour for e-bikes and fifteen (15) miles per hour for e-scooters and will
work with Muskegon to implement speed restriction zones where necessary.
E. Bicycle and Scooter Parking. Muskegon, at its own discretion, may support the
Shared-Mobility Services and Shared-Mobility Devices with the installation of racks and or
Designated Parking Zones in Muskegon to assist with the orderly parking of Shared-Mobility
Devices throughout the service area. The decision to undertake such action, and the decision as to
where such racks or parking areas will be located will be the sole discretion of Muskegon.
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IX. LOCATIONAL RESTRICTIONS
A. Out of Hub Fee. Operator will charge a user a minimum fee of _____ ($___)
dollars for failing to dock a Shared-Mobility Device to an approved designated structural or virtual
docking station under this agreement.
B. Out of Area Fee. Operator will charge a user an Operator-determined fee for
leaving a Shared-Mobility Device in a location outside the Operating Area.
C. Restricted Usage. Operator will ensure that the electronic assist function of any
Shared-Mobility Device that operates outside the Operating Area is automatically disabled once the
Shared-Mobility Device leaves the Operating Area.
D. Response. Operator will include contact information on each Shared-
Mobility Device where complaints can be received. Operator will also include information about
how complaints can be reported to Operator when Shared-Mobility Devices are accessed. If
Operator receives a complaint that any Shared-Mobility Device has been improperly parked or not
docked to a designated structural or virtual docking station, Operator will respond to the complaint,
remove the Shared-Mobility Device from its current location, and return the Shared-Mobility
Devices to an appropriate structural or virtual docking station within a reasonable amount of time.
E. Geofencing. Muskegon reserves the right to mandate Operator use geofencing or
other in-app methods to prohibit parking, using, or locking scooters in specified areas, and or to
direct users to specified parking areas, to make such request, Muskegon must document in writing
how such geofencing measures are necessary for the public health, safety, and welfare of
Muskegon. Operator will also use geofencing or other in-app methods to limit speed of bicycles
and scooters in designated areas. Operator will comply with any geofencing requirements within
five (5) business days of a written request made by Muskegon or any of its respective municipal
departments.
X. DATA
A. Collection. Operator will collect data related to the use of its Shared-Mobility
Devices. Such data will include number of users, number of trips, trip origin/destination and
routes, trip time, trip mileage, docking station usage, devices in service, operable devices, and other
data related to the key performance indicators set forth in Attachment B. Such data may also
include carbon impacts, calories burned, and money saved. Operator will also collect real time
data on the location of Shared-Mobility Devices, maintenance status, customer complaints,
response times, aggregate system use, crashes, damaged/lost vehicles, fee collection/revenue. All
data collected, including GPS tracking, will be based upon information collected from the Shared-
Mobility . Operator may provide users with user surveys only
if surveys are opt-in and all survey questions are approved by Muskegon prior to use.
B. Sharing. Within seven (7) days of receipt of a written request by Muskegon or any
of this respective municipal departments, Operator will provide Muskegon with data collected
pursuant to this Section during the term of this Agreement. Operator will also supply data on
request for special projects, as part of transportation and infrastructure planning, and any other
reasonable requests. Data will be provided in MDS format to the Muskegon and any other third
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party approved by Muskegon. Muskegon retains the right to request aggregated reports on system
use, compliance, and operations in other available formats (.csv, .excel, or similar), if such request
are deemed reasonable. Shared data will be anonymized to be available to the public for use in
applications not affiliated with Operator or Muskegon.
C. Privacy. Operator will keep all data collected anonymous and not collect
personally identifiable information so that such data may be disseminated to the public and not for
use in third-party applications. Operator will provide each user with a clear and upfront description
of data collected to users to ensure that the user fully understands and agrees to data collection.
and or
mobile application.
requiring a user to agree that personally identifiable information may be shared with third parties.
r will include an opt-in function for
device.
XI. COOPERATION AND DESIGNATED PARKING ZONE RESTRICTIONS
A. Good Faith Dealings. Muskegon agrees that Operator will provide Shared-
Mobility Services and Shared-Mobility Devices within the Service Area or Operating Area during
the term of this Agreement. Muskegon will make all reasonable and good faith efforts, and to the
that all required
resources are made available to Operator.
B. Designated Parking Zone Usage Restrictions. During the term of this
Agreement, Muskegon agrees not authorize any other person, company, Competitor, or any
similarly defined individual or entity, to use any Designated Parking Zone, or similarly defined
parking space, located on City Property and within the Operating Area, within five hundred (500)
feet of a Designated Parking Zone used by Operator.
XII. TERMINATION
A. Breach by Operator. Muskegon may terminate its participation in this Agreement
due to a material breach of Operator by providing written notice to Operator and giving Operator
thirty (30) days to correct the breach. If Operator fails to correct the breach to the satisfaction of
participation in this Agreement immediately.
B. Breach by Muskegon. If Muskegon commits a material breach of this Agreement,
Operator may terminate its responsibilities to Muskegon under this Agreement by providing notice
to Muskegon and give Muskegon sixty (60) days to correct the breach. If Muskegon fails to correct
the breach to the satisfaction of Operator within sixty (60) days, Operator may immediately
terminate its obligations to Muskegon.
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C. Voluntary by Operator or Muskegon. Operator may voluntarily terminate this
written notice prior to the desired
termination date. After December 31, 2023, Muskegon may voluntarily terminate this Agreement
by providing Operator ninety (90) da written notice prior to the desired termination date.
XIII. CONDITION ON TERMINATION
Upon expiration or termination of this Agreement, Operator will remove all Shared-
Mobility Devices, docking stations, and any other equipment within thirty (30) days and return the
applicable premises to the same condition as it existed prior to this Agreement, unless otherwise
agreed to in writing with Muskegon.
XIV. INTELLECTUAL PROPERTY
Agreement, are and will be owned by Operator (or, in certain instances, by its Affiliates), and not
by Muskegon. Operator hereby grants Muskegon a limited license to use all such Intellectual
Property rights solely in connection with the services during the term, free of additional charge
and on a non-exclusive, worldwide, non-transferable, non-sub licensable, fully paid-up, and
royalty-free basis, to the extent necessary to enable Muskegon to make reasonable use of the
services. Muskegon acknowledges and agrees that other than as expressly provided herein,
nothing in this Agreement will be construed as Operator directly or indirectly, selling, leasing,
licensing, pledging, sublicensing, lending, encumbering or otherwise transferring any of the
foregoing Intellectual Property rights other than in connection with the services.
XV. MARKS
Marks must be approved by that Party, in advance.
XVI. REPRESENTATIONS AND WARRANTIES
A. Operator. Operator represents and warrants that (a) it is duly authorized to do
business by the State of Michigan; (b) it has the lawful power to engage in the business it presently
conducts and contemplates conducting, and is not party to any investigation, proceeding or action
by any governmental authority which may materially affect its ability to effectuate its obligations
under this Agreement and, in the event that it becomes such a party, will immediately notify
Muskegon of such investigation, proceeding or action; (c) it has the authority to execute and carry
out this Agreement and to perform its obligations hereunder, and has obtained all necessary
authorizations in connection therewith; (d) it has obtained and will obtain from time to time any
and all licenses, permits or other approvals required under applicable law, which license, permits
or other approvals will be kept current at all times throughout the Term; (e) the execution, delivery
and performance of under this Agreement will not conflict with, result in the breach of, constitute
a default under or accelerate performance required by its constituent documents or internal
regulations, any applicable law or any material covenant, agreement, understanding, decree,
judgment, indenture, instrument or order to which it is a party or by which it or any of its properties
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or assets is bound or affected; and (f) it will comply with all applicable law related to this
Agreement and will cooperate fully with Muskegon in complying with such applicable law.
B. Muskegon. Muskegon represents and warrants that they are the governmental
authority with jurisdiction over its respective premises, that they have obtained all necessary
approval and possess the legal authority to enter into this Agreement, and have taken all actions
required by its procedures, by-laws, or applicable laws to exercise that authority, and to lawfully
authorize its undersigned signatory to execute this Agreement and to bind themselves to its terms.
XVII. INSURANCE
Prior to the Effective Date of this Agreement, Operator will obtain insurance coverage
meeting each requirement and condition set forth herein.
A. Carrier. Operator will obtain insurance coverage from an insurance company
registered and licensed to do business in the State of Michigan and having an A.M. Best insurance
rating of at least A- financial size category VIII or better by the latest Best Insurance Report or has
an analogous rating from a comparable rating service approved by Muskegon.
B. Certificate of Insurance. Proof of insurance and compliance with all requirements
in this section should be evidenced on a certificate of insurance acceptable to Muskegon. The
certificate will, at a minimum, contain the following: (1) authorized agent information; (2) insured
information; (3) insurance company information; (4) description of policies, including coverage
types and amounts; (5) policy number(s) and period(s); (6) limits of liability; (7) Muskegon
information as additional insured and certificate holder; and (8) cancellation information. The
certificate of insurance must be received by Muskegon prior to the Effective Date of this
Agreement.
C. Additional Insured. Each required insurance policy (except for workers
compensation) will name Muskegon as an additional insured and loss payee.
D. Cancellation. All certificates will contain a provision stating that the coverages
afforded under said policies will not be cancelled, materially changed, or not renewed without at
least thirty (30) days written prior notice to Muskegon, or fifteen (15) days for non-payment. The
policies will not be subject to invalidation as to any insured by reason of any act or omission of
another insured or any of its officers, employees, agents, or other representatives, and will contain
a clause to the effect that such policies and the coverage evidenced thereby will be primary with
respect to any policies carried by Muskegon, and that any coverage carried by Muskegon will be
excess insurance.
E. Insurance Coverages. During the term of this Agreement, Operator agrees to
purchase and maintain the following types of insurance coverages, consistent with the policies and
requirements of Muskegon and provide evidence of continuing coverage to Muskegon:
(1) Commercial General Liability Insurance. Operator will procure
Commercial General Liability Insurance, on an occurrence form, providing all major
divisions of coverage, including but not limited to: (1) Premises Operations; (2) Products
and Completed Operations; (3) Personal Injury and Advertising liability; (4) Fire legal
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liability. The Commercial General Liability Insurance will provide the following
minimum limits:
General Aggregate: $2,000,000
Products-Completed Operations $2,000,000
Personal & Advertising Injury $1,000,000
Each Occurrence $1,000,000
Damage to Rented Premises $250,000
Med. Expense (Any one person) $5,000
(2) Workers Compensation.
coverage in accordance with the statutory limits as established by the State of Michigan
liability no lower than the following: Bodily
Injury by Accident $500,000 each accident; Bodily Injury by Disease $500,000 each
employee. Operator will require all contractors and subcontractors performing work on its
behalf under this Agreement to obtain an insurance certificate showing proof of
Compensation coverages and Operator will require that all subcontractors submit
certificates of such insurance to Muskegon prior to performing.
(3) Em
Liability Insurance Coverage with limits of at least:
Bodily Injury by Accident: $500,000 each accident
Bodily Injury by Disease: $500,000 policy limit
$500,000 each employee
(4) Commercial Business Automobile Liability Insurance. Operator will
provide Commercial Business Automobile Liability Insurance, which will include
coverage for bodily injury and property damage liability arising from the operation of any
owned, non-owned, or hired automobile. The Commercial Business Automobile Liability
Insurance Policy will provide not less than $1,000,000 Combined Single Limits for each
accident.
(5) Commercial Umbrella Liability Insurance. Operator will provide a
Commercial Umbrella Liability Insurance Policy to provide excess coverage above the
Commercial General Liability, the Commercial Business Automobile Liability, and
basis in addition to the minimum limits set forth
herein. The minimum amount of Umbrella limits required above the coverages and
minimum limits stated above will be $2,000,000 per occurrence and $2,000,000 in the
aggregate.
(6) Application to Others. Operator will require all contractors,
subcontractors, agents, or workers performing work or services on its behalf in furtherance
of this Agreement to obtain an insurance coverage meeting the requirements of this Section
as evidence on a certificate of insurance. Operator will require that all such persons submit
certificates of such insurance to Muskegon prior to performing work or services.
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(7) Maintaining Coverage. Muskegon may require copies of any insurance
policies entered into by Operator, and Operator is responsible for annually verifying and
confirming in writing to Muskegon that all sub-contractors, agents, operators or workers
meet the minimum coverage and limits plus maintain current certificates of coverage, and
that all work activities related to this Agreement will meet minimum coverage and limits,
with any sub-contractors, agents, operators or workers complying with the same insurance
requirements as Operator.
(8) Continuing Obligation. Unless otherwise expressly provided herein, the
obligation to insure as provided herein continues throughout term of this Agreement and
will not terminate until this Agreement has expired or been terminated, and the right to
occupy the premises is returned to Muskegon.
XVIII. INDEMNIFICATION
Operator will at its sole cost and expense indemnify, defend, and hold harmless
Muskegon, its officers, agents, and employees, its successors and assigns, individually or
collectively, from and against all liability and any claims, suits, expenses, losses, judgments,
proceedings, damages, expenses, demands, suits, costs (including costs of defense, reasonable
attorney fees, and reasonable professional fees incurred in defense or incurred in enforcement of
this indemnity), and causes of action of every kind or character whatsoever, directly or indirectly
Agreement, including but not limited to claims directly or indirectly arising from, related to or
connected with, in whole or in part: any act, omission, fraud, wrongful or reckless conduct, fault
or negligence by Operator, or its officers, directors, agents, employees, subcontractors or suppliers
of any tier, or by any of its employees, agents, or persons under its direction or control.
XIX. LIMITATION OF LIABILITY
Notwithstanding any other provision of this Agreement, and to the fullest extent permitted
under applicable law, no Party will be liable to the other Party for any indirect, special,
consequential, moral, exemplary, or punitive damages, or for any loss of use, loss of production,
loss of revenue or profits, cost of capital, loss of goodwill, or loss of opportunity, arising out of or
in connection with, this Agreement, whether based in contract, tort, or any other theory at law or
in equity, regardless of whether such damage was foreseeable and each Party expressly releases the
other Party from any such liability. The limitations on liability in this Section will not apply to: (1)
applicable insurance proceeds; or (4) anything prohibited by applicable law governing the Parties.
Each Party assumes all risks of personal injury and property damage attributable to the acts
or omissions of such Party or any of its affiliates, to the degree that such damage is attributable to
such Party or its affiliate. Operator makes no warrant whatsoever with respect to the services
(including, for clarification, the deliverables, and the services), including any: (i) warranty of
merchantability, (ii) warranty of fitness for a particular purpose, or (iii) warranty against
infringement of intellectual property rights of a third party, whether express or implied by law,
course of dealing, course of performance, usage of trade or otherwise.
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XX. DAMAGE TO PROPERTY
Operator will only be responsible held responsible for damage to property belonging to
Muskegon only to the extent caused by an act or omission of the Operator, its agents, or employees.
Operator will be responsible for repairing any damaged property and will pay the costs, therefore.
XXI. TAXES
The Parties will be solely responsible for their respective taxes, if any, and related interest
or penalties, incurred by such Party in respect of this Agreement including, without limitation, any
federal, state, or local income tax, and any withholding or employment taxes imposed upon such
Party, including in respect of any advertising revenue to such Party. To the extent that Muskegon
owned real property becomes taxable due to this Operating Agreement, Operator will reimburse
Muskegon for such taxes.
XXII. FORCE MAJEURE
Neither Party will be deemed to have breached this Agreement if it is prevented from
performing any of its obligations hereunder by reason of acts of God, acts of the public enemy,
acts of superior governmental authority, weather conditions, riots, rebellion, sabotage, or any other
circumstances for which it is not responsible or which is not under its control, and the Party
experiencing force majeure gives written notice to the other Party identifying the nature of such
force majeure, and when it began. The Party experiencing force majeure will take immediate action
to attempt to remove such causes of force majeure as may occur from time to time and its
operations under this Agreement will be resumed immediately after such cause has been removed,
provided that neither Party will be required to settle any labor dispute except upon terms that the
Party deems acceptable. The suspension of any obligations under this Section will not cause the
term of this Agreement to be extended and will not affect any rights accrued under this Agreement
prior to the occurrence of the force majeure. The Party giving notice of the force majeure will also
give notice of its cessation.
XXIII. DEFAULT
A. Default. If Muskegon enters into any agreement with a Competitor authorizing
Competitor to provide shared mobility devices and services within the Operating
Area that conflicts with this Agreement, including but not limited to the Designated Parking Zone
Restrictions set forth in Article XI, Operator may have a court of competent jurisdiction issue an
injunction against Competitor and Muskegon in favor of Operator, declare this Agreement
breached by Muskegon, and order that the agreement between Muskegon and Competitor be
voided. This provision will not be construed to prevent specific performance of this Agreement
or of any of its conditions by either Party.
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XXIV. SURCHARGES
A. Surcharge for Unlocking a Shared-Mobility Device. During the term of this
Agreement, in addition to the User Fees charged by Operator to users of Shared-Mobility Devices,
Operator agrees to include an additional surcharge of $.25 to each user for each time a user unlocks
a Shared-Mobility Device . The Surcharge will be paid by users and collected by
Operator in similar manner as all other User Fees paid for their use of Shared-Mobility
Device. The Surcharges will initially be retained by Operator for the benefit of Muskegon and
then will be remitted to Muskegon in accordance with Section (B), below.
B. Payment of Surcharges; Accounting. On the fifteenth (15th) day of each month
during the term of this Agreement, Operator will remit to Muskegon the total dollar amount of
Surcharges paid by users to Operator during the preceding month Monthly .
In addition to the Monthly Surcharge Payment, Operator will make a reasonable, good faith effort
to simultaneously provide Muskegon with financial reports or accountings detailing the number
and dollar amount of Surcharges paid by users in order for Muskegon to calculate the total
Surcharge Payment owed to Muskegon by Operator.
XXV. NOTICES AND REPRESENTATIVES
All notices and communications related to this Agreement should be made to the following
representatives for each Party. Each such notice, request, or other communication will be effective
five (5) business days after depositing in the mail or forty-eight (48) hours after the date on which
an e-mail notice is verified as received.
Ride Muskegon, LLC City of Muskegon
Attn: Stephen Parent Attn: Frank Peterson
Title: Member Title: City Manager
Email: [email protected] Email: [email protected]
Phone #: 231-557-6446 Phone #:
Address: 10574 Robert F Ln. Address: City of Muskegon
West Olive, MI 49460 933 Terrace St.
Muskegon, MI 49440
XXVI. GENERAL PROVISIONS
A. Assignment. Neither Muskegon nor Operator will assign this Agreement, transfer,
or otherwise sublet any part of the Services without the expressed written consent of the other, and
such consent will not be unreasonably withheld.
B. Binding Effect. All provisions of this Agreement, including the benefits and
burdens, will extend to and be binding upon the Parties respective heirs, legal representatives,
successors, and assigns.
C. Caption. The captions and headings in this Agreement are for convenience of
reference only and will not be used to interpret, define, or limit its provisions.
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D. Counterparts. This Agreement may be executed in multiple identical
counterparts, all of which will constitute one agreement.
E. Entire Understanding. This Agreement represents the complete integration of all
understandings between the Parties and all prior representations and understandings oral or
written are merged herein. Prior or contemporaneous additions, deletions, or other changes will
not have any force or affect whatsoever, unless embodied herein.
F. Extinguishment and Replacement. This Agreement extinguishes and replaces
any prior agreements between the Parties related to the services described herein upon the Effective
Date.
G. Modification. Modifications of this Agreement will not be effective unless agreed
to in writing by the Parties in a formal written amendment to this Agreement, properly executed
and approved by all the Parties.
H. Independent Counsel Costs. The Parties acknowledge and agree that the terms
and conditions of this Agreement have been freely and fairly negotiated. Each Party acknowledges
that in executing this Agreement it has relied solely on its own judgment, belief and knowledge,
and such advice as it may have received from its own counsel, and that it has not been influenced
by any representation or
counsel. Each Party will pay its own fees and expenses incurred in connection with the negotiation,
drafting and execution of this Agreement, and in respect of the transactions contemplated by this
costs).
I. Interpretation. The language in all parts of this Agreement will in all cases be
construed simply according to its fair meaning and not strictly construed against any Party. This
Agreement will be construed, and performance thereof will be determined in accordance with the
laws of the State of Michigan.
J. Waiver. No waiver of any provision of this Agreement will be effective unless the
same will be in writing and signed by the Party making such waiver, and any such waiver will
apply only to the specific occasion which is the subject of such waiver or consent and will not
apply to the occurrence of the same or any similar event on any future occasion. No delay express
waiver of any provision of this Agreement will be deemed to be or will constitute a waiver of any
other provision whether or not similar, and no waiver will constitute a continuing waiver. Any
delay in enforcement of any provision hereof will not constitute a waiver thereof.
K. Registration. During the term of this Agreement, Operator will be registered as a
business in good standing with the State of Michigan and be a recognized business entity
authorized to transact business in the State.
L. Severability. The invalidity or unenforceability of any provision of this Agreement
or the agreement documents will not affect the validity or enforceability of any other provision,
which will remain in full force and effect, provided that the Parties can continue to perform their
obligations under this Agreement in accordance with the intent of this Agreement.
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M. Survival of Certain Terms. Notwithstanding anything herein to the contrary,
provisions of this Agreement requiring continued performance, compliance, or effect after
expiration or termination will survive such expiration or termination and will be enforceable by
Muskegon if Operator fails to perform or comply as required.
N. No Third-Party Beneficiaries. This Agreement does not and is not intended to
confer any rights or remedies upon any person or entity other than the Parties. Enforcement of
this Agreement and all rights and obligations hereunder are reserved solely to the Parties. Any
services or benefits which third parties receive because of this Agreement are incidental to this
Agreement, and do not create any rights for such third parties.
O. Public Records. All information in this Agreement, or related to this Agreement,
is subject to the provisions of the Freedom of Information Act 1976 no. 442, as amended, MCL
15.321, or latest revision thereof.
P. . Each Party will be responsible for their legal fees resulting from
the enforcement of this Agreement or any rights under this Agreement.
XXVII. RELATIONSHIP
The Parties agree that the Operator is an independent contractor. To that end, the Operator
will determine the method, details, and means of performing the work, but will comply with all legal
requirements in doing so. The Operator will provide its own tools, materials, or equipment. The
Parties agree that neither the Operator nor its principal is an employee of Muskegon or any of its
departments, agencies, or related entities. The Parties also agree that neither the Operator nor its
principal is entitled to any employee benefits from Muskegon. Operator understands and agrees that
it and its members have no right to claim any benefits under employee retirement system,
compensation benefits, health insurance, dental insurance, life insurance, or
any other employee benefit plan offered by Muskegon.
XXVIII. ATTACHMENTS
The following attachments are in draft form and upon signing this Agreement, the parties
will work in good faith to finalize, adopted, and make part of this Agreement:
Attachment A: Notice to Proceed with E-scooters and E-bikes
Attachment B: Key Performance Indicators
Attachment C: City of Muskegon Specific Area Conditions
Attachment D: User Fees
Attachment E: Certificate of Insurance
Attachment F: Approved locations for Shared-Mobility Devices and
Shared-Mobility Services
Attachment G: Map of Furnished Facilities and Scope of Facility Use
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ATTACHMENT A
Notice to Proceed with Program
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SAMPLE
NOTICE TO PROCEED
City of Muskegon
To: Ride Muskegon, LLC Date:
Contract: Operating Agreement for electric bikes and scooters in the City of Muskegon
Project: Shared-Micro Mobility Project
Authorization: You are notified that, in accordance with the Operating Agreement dated
_______, 2022, you are authorized by the City of Muskegon, State of Michigan, to establish and
commence an electric scooter program in the City of Muskegon, State of Michigan, for an initial
term of five years (5), with the option to enter into renewal terms, in accordance with the Operating
Agreement entered into between the parties dated __________, 2022.
Program Start Date:
Program End Date:
By:
Name:
Its:
ACCEPTANCE OF NOTICE
Receipt of the above NOTICE TO PROCEED is hereby acknowledged by:
Ride Muskegon, LLC
a Michigan limited liability company
By: Stephen Parent
Its: Member
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ATTACHMENT B
Key Performance Indicators
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Key Performance Indicators *(EXAMPLE)*
Performance Description Measure Period Measured Unit Threshold
Indicator
System Reporting Monthly reports and Monthly/Annual See below See below
limited Admin access
provided.
Device Number of devices Average monthly E-bicycle 200
Availability available for use in a day
relative to the E-scooter (if 200
number of bicycles in the implemented)
system
Device Number of devices Monthly % of devices in 80%
Maintenance receiving a weekly service
and Inspection maintenance inspection
Station Stations receiving a Twice per month, % of stations 80%
Maintenance cleaning and inspection no more than 21
and Inspection days between
inspections
Device ResponseTime to respond to Any given point in
Complaint 12 hours
Time reported deficient, time/monthly
response time.
damaged, or unclean
station components
of devices.
Website/Mobile Percentage of time that the Any given point in % of total minutes 99%
App in Service website and mobile app time/ monthly per month
are in service
Customer Service Contractor will maintain a Any given point in Hours 95%
Availability toll free customer service time/monthly
number from 8a-8p (live
response), and a 24/7
after- hours service
(message). Customer
complaint and resolutions
should be tracked
through a system.
Customer Service Response time between Any given point in Complaint 24 hours or
Response Time customer inquiry and time/monthly acknowledgement less
complaint resolution plan response time.
Resolution plan
response time.
Measured in hours.
Device See below See below See below See below
Distribution
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Redistribution. CATMA will work with Gotcha to identify High Priority Areas based on station
usage per day and peak times of usage. Distribution will be critically timed to increase the
probability that each High Priority Area has sufficient bicycles available. Prior to the full launch,
Respondent and the CATMA will agree to designate High Priority Areas. Additionally, Gotcha
and the CATMA will agree to allocate a set minimum of the total bicycle fleet to the various
priority areas specified at peak days and hours.
*THIS IS AN EXAMPLE
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ATTACHMENT C
City of Muskegon Location Specific Conditions
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City of Muskegon Specific Conditions Use and Operation *(EXAMPLE)*
Waterfront and Greenway. Operator will ensure that the speed limit for the electronic
assistance function of all Shared-Mobility Devices supplied under this Agreement will be limited
to no more than the (10) miles per hour when a Shared-Mobility Device is being used within the
Burlington Waterfront or on the Burlington Greenway.
Church Street Marketplace. Operator will ensure that the electronic assist function of
any Shared-Mobility Device operating on the Church Street Marketplace is automatically disabled
once the Shared-Mobility Device enters the Church Street Marketplace.
Operator will provide signs at the Waterfront Greenway docking stations that say, at a
minimum, The motor on these bikes will cease to operate outside of the bike-share system limits,
and therefore will not be operational on the Causeway.
Prior to expiration of the initial term and 60 days prior to possible renewal, Operator will
provide the City a statement detailing its efforts to integrate escalated pricing into its fee structure,
including whether or when escalated pricing will be included as a feature. The City reiterates to
Operator that this is an important feature and will be evaluated as one condition of renewal.
*THIS IS AN EXAMPLE*
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ATTACHMENT D
User Fees for Initial Launch
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User Fees for Initial Launch *(EXAMPLE)*
The following fee schedule is reflective of the initial fees to charge Users decided by the parties
and are subject to change from time to time upon mutual agreement of the Parties.
Pay as You Go $2 to unlock, $.10/min
Monthly Ride Muskegon-Pass: $9.99 (20 minutes per unlock, $.10/min after)
Annual Ride Muskegon-Pass: $79.99 (20 minutes per unlock, $.10/min after)
Annual Subsidized-Pass: $5 monthly (30 min per unlock, then $.05/min after) Payable
w/o need of mobile device
*All pricing reflects use of e-bicycles only
**Free ride time is the first 20 minutes per unlock
*THIS IS AN EXAMPLE*
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ATTACHMENT E
Certificate of Insurance
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ATTACHMENT F
Approved Locations for Shared-Mobility Devices and Services
LINK to interactive map of locations:
https://earth.google.com/web/@43.22839577,-
86.28662279,175.1186634a,14831.79158191d,35y,0h,0t,0r/data=MicKJQojCiExdjRmYWIzYnJ
zc3o1T0J3VnhHREdmMXFfaDdNV1NFMGg6AwoBMA?authuser=0
16 City Locations:
Dr Rolfs BBQ Western
Trunk Depot Western
Shoreline Inn
Mart Dock
Heritage Landing
Farmers Market Western
Frauenthal Western
Burl and Sprig
3rd St
Visit Muskegon Western
Rotary Park
Coast Guard Beach Parking
Ice Cream Beach Parking
Additional Beach Parking
Lakeside Parking
794 Kitchen/Rake Brewery
794 Kitchen Parking:
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Lakeside Parking:
Coast Guard Parking:
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Ice Cream Parking:
Additional Beach Parking:
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ATTACHMENT G
Map of Furnished Facilities and Scope of Facility Use
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: April 26, 2022 Title: HOME American Rescue Plan (ARP)
Submitted By: Oneata Bailey Department: Community and Neighborhood
Services (CNS)
Brief Summary: HUD has awarded the City of Muskegon HOME ARP funds in addition to our
regular FY2021 HOME formula allocation. These funds are to be used (one-time) to create a
significant opportunity to meet the housing and service needs of our community’s most vulnerable
population.
Detailed Summary: CNS proposes to use these funds to provide resources to youth at risk of
homelessness (under the age of 18) who are struggling to have shelter/housing, lack of mentors
and health services. Support the development of non-congregate shelter for those identified as
uncovered youth.
In addition, partnering agencies within the county of Muskegon will assist with resources to offset
immediate housing stabilization. CNS is proposing the purchase of existing Rental Housing units
within our community in order to mandate HUD HOME rents to those identified as homeless in our
community- individuals or families assessed and counted as eligible through our Muskegon
Continuum of Care.
Lastly, these HOME funds will continue to supply the housing market with Affordable housing
choices to those who income qualify to purchase. This process is faster with existing properties
within our county and HOME allocation funds.
Amount Requested: $ 1,035,512.50 Amount Budgeted: 1,218,250.00
Fund(s) or Account(s): HOME ARP Fund(s) or Account(s): HOME ARP
Recommended Motion: Authorize CNS to submit the proposed projects itemized within this
request: Youth Services, Affordable Rental and Homeowner Housing opportunities.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
HOME ARP Grant Agreement
Title II of the Cranston-Gonzalez National Affordable Housing Act
Assistance Listings #14.239 – HOME Investment Partnerships Program
1. Grantee Name and Address 2. Grant Number (Federal Award Identification Number (FAIN)
Muskegon M21-MP260215
3a Tax Identification Number 3b. Unique Entity Identifier (formerly DUNS)
933 Terrace Street 386004522 017270968
Muskegon, MI 49440
4. Appropriation Number 5. Budget Period Start and End Date
861/50205 FY 2021 – 09/30/2030
6. Previous Obligation (Enter “0” for initial FY allocation) $0
a. Formula Funds $
7. Current Transaction (+ or -) $1,218,250.00
a. Administrative and Planning Funds Available on Federal Award Date $60,912.50
b. Balance of Administrative and Planning Funds $121,825.00
c. Balance of Formula Funds $1,035,512.50
8. Revised Obligation $
a. Formula Funds $
9. Special Conditions (check applicable box) 10. Federal Award Date (HUD Official’s Signature Date)
Not applicable Attached 09/20/2021
11. Indirect Cost Rate* 12. Period of Performance
Administering Agency/Dept. Indirect Cost Rate Direct Cost Base Date in Box #10 - 09/30/2030
%
* If funding assistance will be used for payment of indirect costs pursuant to 2 CFR
% 200, Subpart E-Cost Principles, provide the name of the department/agency, its
indirect cost rate (including if the de minimis rate is charged per 2 § CFR 200.414), and
%
the direct cost base to which the rate will be applied. Do not include cost rates for
% subrecipients.
The HOME-ARP Grant Agreement (the “Agreement”) between the Department of Housing and Urban Development (HUD) and the Grantee is made pursuant to the authority
of the HOME Investment Partnerships Act (42 U.S.C. 12701 et seq.) and Section 3205 of the American Rescue Plan (P.L. 117 -2) (ARP). HUD regulations at 24 CFR part 92 (as
may be amended from time to time), the CPD Notice entitled “Requirements for the Use of Funds in the HOME-American Rescue Plan Program” (HOME-ARP Implementation
Notice), the Grantee’s HOME-ARP allocation plan (as of the date of HUD’s approval), and this HOME-ARP Grant Agreement, form HUD-40093a, including any special conditions
(in accordance with 2 CFR 200.208), constitute part of this Agreement. HUD’s payment of funds under this Agreement is subject to the Grantee’s compliance with HUD’s electronic
funds transfer and information reporting procedures issued pursuant to 24 CFR 92. 502 and the HOME-ARP Implementation Notice. To the extent authorized by HUD regulations
at 24 CFR part 92, HUD may, by its execution of an amendment, deobligate funds previously awarded to the Grantee without the Grantee’s execution of the amendment or other
consent. The Grantee agrees that funds invested in HOME -ARP activities under the HOME-ARP Implementation Notice are repayable in accordance with the requirements of the
HOME-ARP Implementation Notice. The Grantee agrees to assume all of the responsibility for environmental review, decision making, and actions, as specified and required in
regulation at 24 CFR 92.352 and 24 CFR Part 58, as well as the HOME-ARP Implementation Notice.
The Grantee must comply with the applicable requirements at 2 CFR part 200, as amended, that are incorporated by the program regulations and the HOME-ARP
Implementation Notice, as may be amended from time to time. Where any previous or future amendments to 2 CFR part 200 replace or renumber sections of part 200 that are cited
specifically in the program regulations or HOME-ARP Implementation Notice, activities carried out under the grant after the effective date of the 2 CFR part 200 amendments will
be governed by the 2 CFR part 200 requirements, as replaced or renumbered by the part 200 amendments.
The Grantee shall comply with requirements established by the Office of Management and Budget (OMB) concerning the Universal Numbering System and System for Award
Management (SAM) requirements in Appendix I to 2 CFR part 200, and the Federal Funding Accountability and Transparency Act (FFATA) in Appendix A to 2 CFR part 170.
Funds remaining in the grantee’s Treasury account after the end of the budget period will be cancelled and thereafter not available for obligation or expenditure for any purpose.
Per 31 U.S.C. 1552, the Grantee shall not incur any obligations to be paid with such assistance after the end of the Budget P eriod.
13. For the U.S. Department of HUD (Name and Title of Authorized Official) 14. Signature 15. Date
Keith E. Hernández, CPD Director 09/21/2021
X
16. For the Grantee (Name and Title of Authorized Official) 17. Signature 18. Date
X
19. Check one: Initial Agreement Amendment #
20. Funding Information: HOME ARP
Source of Funds Appropriation Code PAS Code Amount
2021 861/50205 HMX $1,218,250.00
Page 1 form HUD-40093a
21. Additional Requirements: These additional requirements are attached and incorporated into this Agreement. The
Grantee agrees to these additional requirements on the use of the funds in 7., as may be amended from time to time by
the Secretary.
a) As of the Federal Award Date, the Grantee may use up to the amount identified in 7.a. of this Agreement for eligible
administrative and planning costs in accordance with the HOME-ARP Implementation Notice.
b) Until the date of HUD’s acceptance of the Grantee’s HOME-ARP allocation plan, the Grantee agrees that it will not
obligate or expend any funds for non-administrative and planning costs, in accordance with the HOME-ARP
Implementation Notice.
c) In accordance with the HOME-ARP Implementation Notice, as of the date of acceptance by HUD of the Grantee’s
HOME-ARP allocation plan, HUD shall make the amount identified in line 7. of this Agreement available to the
Grantee.
d) If the Grantee does not submit a HOME-ARP allocation plan or if the Grantee’s HOME-ARP allocation plan is not
accepted within a reasonable period of time, as determined by HUD, the Grantee agrees that all costs incurred and
HOME-ARP funds expended by the Grantee will be ineligible costs and will be repaid with non-Federal funds.
22. Special Conditions
Page 2 of 2 form HUD-40093a
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT
DETROIT FIELD OFFICE
477 MICHIGAN AVENUE, STE. 1600
DETROIT, MI 48226-2592
[email protected]
September 21, 2021
Oneata Bailey
Director
Office of Community & Neighborhood Services
City of Muskegon
933 Terrace Street
Muskegon, MI, 49443-0536
Dear Oneata Bailey:
The American Rescue Plan Act of 2021 appropriated $5 billion to provide housing,
services, and shelter to individuals experiencing homeless and other vulnerable populations, to
be allocated by formula to jurisdictions that qualified for HOME Investment Partnerships
Program allocations in Fiscal Year 2021. On September 13, 2021, the Department published a
notice, titled: Requirements for the Use of Funds in the HOME-American Rescue Plan
Program (the Notice), which you are encouraged to review to assist in developing your
program. Enclosed is the Grant Agreement for the HOME Investment Partnerships – America
Rescue Plan (HOME-ARP) program:
In accordance with the Notice, and the HOME ARP Grant Agreement, a Participating
Jurisdiction (PJ), as of the Federal Award Date, may use up to five percent of its total award for
administrative and planning costs. Once your HOME-ARP Allocation Plan is approved by
HUD, the remaining award will be made available.
HOME Investment Partnerships - American Rescue Plan
(HOME-ARP) $1,218,250.00
Transmittal of this Grant Agreement does not constitute approval of the activities
described in your HOME-ARP Allocation Plan. You are reminded that you, as the PJ, are
responsible for ensuring that all grant funds are used in accordance with all program
requirements. An executed Grant Agreement is a legally binding agreement between the
Department of Housing and Urban Development and the City of Muskegon.
To establish a Line of Credit for the HOME-ARP award, it will be necessary for your
agency to sign, execute and return one (1) copy of the Grant Agreement. If there is a need to add
or remove individuals authorized to access the Integrated Disbursement Information System
(IDIS), please submit an IDIS Online Access Request Form (HUD 27055). Also, please ensure
the IDIS Online Access Request Form is notarized and returned to this office with your Grant
Agreement. Additionally, if there is a need to establish or change the depository account where
these funds are to be wired, a Direct Deposit Sign-Up form (SF-1199A) must be completed by
your financial institution and returned to this office with a copy of a voided check.
www.hud.gov espanol.hud.gov [email protected]
You are reminded that certain activities are subject to the provisions of 24 CFR Part 58
(Environmental Review Procedures). Funds for such activities may not be obligated or
expended until HUD has approved the release of funds in writing. A request for release of
funds (RROF) must be accompanied by an environmental certification, and until the RROF is
approved and notification is received, no HUD funds should be committed. If the project or
activity is exempt per 24 CFR 58.34 or categorically excluded (except in extraordinary
circumstances), no RROF is required.
Please execute two (2) copies of the HOME-ARP Grant Agreement with electronic
signatures. In response to COVID-19, HUD authorizes you to electronically execute the grant
agreement with your electronic signature. Return one (1) of the agreements to this office to the
attention of CPD General Correspondence Mailbox, at [email protected]. Maintain a copy
of the agreement with your original signature on site in your program files.
HUD congratulates the City of Muskegon on its grant award, and we look forward to
assisting you in accomplishing your programs goals. If you have any questions or need further
information of assistance, please contact Mirada Jenkins Carter, CPD Representative at (313)
234-7342 or [email protected].
Sincerely,
Keith E. Hernández, AICP, PMP
Director
Office of Community Planning and Development
Enclosures
cc:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 4/26/2022 Title: Exspiravit Consumption Events
Submitted By: Jacqui Erny Department: Public Works
Brief Summary: Exspiravit has applied to host two events in the City of Muskegon. The Incredible
Edible Event at Mercy Health Arena on August 20, 2022 and The Falling Leaves Festival at Marsh
Field on September 24, 2022.
Detailed Summary: A detailed event proposal is attached.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To authorize the Clerk to sign both attestations and approve the events
contingent upon a meeting and approval with special event staff.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action
EXSPIRAVIT
EXSPIRAVIT LLC TEMPORARY MARIJUANA EVENT PROPOSAL
APRIL 9, 2022
A DATA-DRIVEN CANNABIS COMPANY
1
Exspiravit
April 9, 2022
Dear Mr. Mayor and esteemed Commissioners,
Exspiravit LLC welcomes this opportunity to demonstrate our viability and worth as a potential
Temporary Marijuana Event Permit awardee. We have enjoyed learning about Muskegon’s
rapidly expanding regulated cannabis market, and given the opportunity, we look forward to
joining your ecosystem. We are excited about your consideration of our applications for an
August 20, 2022, event at the Mercy Health Arena, and a September 24-25, 2022, event at Marsh
Field. We are confident that our petition will highlight our worthiness.
Our goal at Exspiravit is to partner with the City of Muskegon in offering a full spectrum of
cannabis entertainment event services. We stand with Muskegon in our strong belief that safe,
regulated adult-use cannabis can and should enjoy comparable normalization as that of alcohol.
Our strategy is to establish a new category of event services – a complete range of curated
experiential and immersive experiences centered around safe cannabis consumption.
Exspiravit’s business model is bolstered by our strategic eco-partnerships. Our ability to harness
the power of industry influencers and leverage those relationships toward revenue generation,
will allow a municipality like Muskegon to invest and partner in an exploding Michigan cannabis
event market.
Exspiravit is providing this proposal to illustrate our worthiness of partnership.
Sincerely,
Michael Webster
Founder & Managing Member
Exspiravit LLC
(248) 600-3460
[email protected]
www.exspiravit.com
2
TABLE OF CONTENTS
EXSPIRAVIT .......................................................................................................................................................... 1
VISION ........................................................................................................................................................................ 4
MISSION ...................................................................................................................................................................... 4
VALUES ....................................................................................................................................................................... 4
EXECUTIVE SUMMARY.......................................................................................................................................... 5
ABOUT EXSPIRAVIT .............................................................................................................................................. 6
WHY PARTNER WITH EXSPIRAVIT ......................................................................................................................... 7
WHAT THE DATA TELLS US.................................................................................................................................... 8
ENVISIONING A CANNABIS EVENT BY EXSPIRAVIT ................................................................................................ 9
THE MERCY HEALTH ARENA OPPORTUNITY .......................................................................................................................... 9
THE MARSH FIELD OPPORTUNITY .................................................................................................................................... 10
THE VALUE PROPOSITION ................................................................................................................................... 11
OPERATIONAL STRATEGIES................................................................................................................................. 12
CORPORATE SOCIAL RESPONSIBILITY.................................................................................................................. 14
LOOKING TO THE FUTURE................................................................................................................................... 15
OUR TEAM ......................................................................................................................................................... 16
3
VISION
Exspiravit exists to ensure that the future of event entertainment in America includes safe,
regulated cannabis consumption.
MISSION
Exspiravit’s mission is to redefine the public’s understanding of safe cannabis-based
entertainment events, and in doing, so, remove the stigma of cannabis consumption while
strengthening and expanding the regulated cannabis market.
VALUES
Exspiravit’s core values are built around ensuring complete safety and security of our patrons,
total compliance with local and state regulations, with an abiding commitment to diversity,
equity, inclusion, and environmental sustainability.
4
EXECUTIVE SUMMARY
Exspiravit appreciates the opportunity to provide The City of Muskegon with this proposal
detailing our vision for regulated cannabis events at the Mercy Health Arena, Marsh Field, and
beyond. We believe our business model complements and is strongly aligned with Muskegon’s
cannabis revenue goals. We offer a vision of a triple bottom line of people, planet, and profits.
We are huge proponents of social justice, and with a founder who was himself justice impacted
by archaic cannabis policies and policing, we look forward to supporting the community and
helping the people of Michigan move forward under the newer, progressive cannabis laws.
As a licensed, black-owned social equity startup, Exspiravit has spent the past year strengthening
its core competency – cannabis event production. Absorbing the impact of the global pandemic,
we have structured our organization to grow in the absence of opportunity. We have sustained
ourselves on the resources dedicated to social equity licensees as part of the redress for the harm
caused by the US war on drugs. As such, we have been able to expand our knowledge base, find
nurturing positions in both the state and national social equity ecosystems, and prepare for
operation as a leading cannabis event organizing company.
In this document, Exspiravit presents our vision and strategies for The City of Muskegon to
assess when evaluating the potential of awarding a Temporary Marijuana Event for the Mercy
Health Arena and Marsh Field. With Muskegon’s support and resource sharing, Exspiravit
intends to deliver a safe, well regulated, revenue driving event for both the municipality and its
cannabis enthusiasts.
Exspiravit presents Muskegon with a unique opportunity. Michigan now boasts the third largest
regulated cannabis market in the US, trailing only California and Colorado. Leapfrogging such
states as Oregon, Washington, and Nevada, represents significant strength for such an immature
market as Michigan’s. With its forward-thinking embrace of cannabis, Muskegon is poised to
leverage its venue-rich, waterfront location toward becoming a natural hub for cannabis
recreation and entertainment. Its proximity to the Wisconsin, Illinois, and Indiana markets will
attract significant tourism revenue to Muskegon. Muskegon has the chance to cement itself as a
prime destination for cannabis-friendly travelers.
5
ABOUT EXSPIRAVIT
Exspiravit LLC was formed in May of 2020, during the worldwide pandemic lockdown. From
the mind of founder, Michael Webster, came a post-pandemic vision of harnessing the power of
the recently deemed essential cannabis market, and a roaring twenties-like explosion of
disposable income and entertainment opportunities. While others were transfixed on the idea of a
brick-and-mortar cannabis consumption lounges, Webster envisioned a mobile version that could
meet customers and guests where they were, and bring safe, regulated consumption to their
cannabis-friendly venue. Exspiravit’s cannabis consumption event organizer license was
ultimately awarded in July of 2021.
While the pandemic raged on, delaying launch strategies, Exspiravit exploited the delays by
further immersing itself in Michigan’s regulated cannabis market, and beyond. Memberships
with the National Cannabis Industry Association, Minority Cannabis Business Association, and
Detroit Cannabis Project were secured. Webster began to develop an emerging voice in the
social equity space, being featured as spotlight minority member and featured guest on both the
NCIA’s and the People’s Ecosystem national podcasts, respectively. Out of these experiences
have come eco-partnerships that Exspiravit has leveraged to gain commitments of support for
future cannabis events.
6
WHY PARTNER WITH EXSPIRAVIT
Exspiravit is an emerging force among the few operational, licensed cannabis event organizers in
Michigan. Currently in our operational phase, our team of strategic partners have shown us the
way. With advisors from the state, regional, and national cannabis consumption event space, we
have developed a clear vision for successful operation. With the support our friends and allies
from the regulated cannabis space like the Michigan’s Cannabis Regulatory Agency, Michigo,
The Michigan Cannabis Trail, Alliant Insurance, and HUSH Chicago, Exspiravit has been
provided with industry-proven methodologies, processes, tools, and techniques for successful
operation. But these influences represent only the introduction of an Exspiravit cannabis event
presence, and not the extent.
We plan to activate current cannabis event data to create a case study. And we will use this case
study to inform how, when, and in what direction we expand our offerings. Exspiravit will
eventually stand apart, even from its allies and strategic partners, through innovation, ingenuity,
and the leveraging of data. As a compliance company that produces cannabis events, data is our
north star. And data-driven guidance is the only true risk mitigator.
Exspiravit can return more than just revenue to its partners like Muskegon. We are creating an
event platform where showcase and launch capabilities are featured. Exspiravit has the potential
to deploy our events in support of worthy causes, like charities and legislative efforts. These
capabilities will grant us, and our partners, the ultimate asset in the burgeoning regulated
cannabis industry – influence. Together we can help decide how our cannabis industry develops
and expands.
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WHAT THE DATA TELLS US
In October of 2021, The Michigan Cannabis Hospitality Industry Growth Organization
(MICHIGO) published the findings of the John W. Lipford, J.D. Michigan Cannabis Traveler
Survey in its annual report. Among the key findings are as follows:
• 46.5% of respondents indicated prior participation in a cannabis event
• 76.3% of respondents expressed a desire to attend a future cannabis event
• 72.7% of women respondents expressed a desire to attend a future cannabis event
• 82.6% of men respondents expressed a desire to attend a future cannabis event
• 47.2% of respondents aged 30-45 indicated prior participation in a cannabis event
• 47.5% of respondents aged 46-65 indicated prior participation in a cannabis event
• 80.3% of respondents aged 30-45 expressed a desire to attend a future cannabis event
• 71.9% of respondents aged 46-65 expressed a desire to attend a future cannabis event
• 62.5% of respondents aged 65 and over expressed a desire to attend a future cannabis
event
The takeaway is obvious. Michiganders, Muskegonites included, are overwhelmingly
enthusiastic - in many cases represented by a supermajority – about their cannabis consumption
and their desire to participate in safely regulated cannabis consumption events. Together,
Muskegon and Exspiravit can respond to these desires with safe, secure, revenue-driving
solutions that will benefit all stakeholders, both cannabis and non-cannabis.
8
ENVISIONING A CANNABIS EVENT BY EXSPIRAVIT
We applaud the City of Muskegon’s recent vote authorizing the issuance of temporary marijuana
permits for both the Mercy Health Arena and Marsh Field. This kind of forward-leaning decision
champions the goal of cannabis normalization.
Exspiravit is positioned to deploy its Cannabis Event Organizer license, and its Cannabis Event
brand, Cannvas Events, to produce a regulated, compliant, public cannabis event that features
on-site cannabis consumption and authorized retail cannabis sales at Mercy Health Arena and
Marsh Field.
Exspiravit’s goal remains redefining what a cannabis event is. We believe corralling five
thousand people into an outdoor space, where a cannabis-friendly artist performs on a makeshift
stage and guests combust and consume cannabis, represents the old order. As cannabis enjoys
greater normalization and moves out of the shadows, we have the opportunity to inject
innovation and ingenuity into a cannabis event. An Exspiravit produced cannabis event will be
defined by impact.
THE MERCY HEALTH ARENA OPPORTUNITY
Our plans for Mercy Health Arena begin with responsible stewardship of the opportunity. And to
that point, out of an abundance of preparedness, we have preemptively engaged with City of
Muskegon Administrative Supervisor of Special Events, Jacqui Erny, as well as Mercy Health
Arena Manager, Jake Laime. Both our Founder, Michael Webster, and our Chief of Logistics,
former Detroit Deputy Police Chief James Tolbert, met with them to begin operational
discussions. Our team left those discussions confident that, granted approval, we would be able
to execute a regulated consumption event safely and securely at this venue.
Our theme for the proposed August 20 event is the Canna Carnival. Exspiravit’s carnival
cannabis event features a theme of nostalgia. Guests will enjoy various methods of consumption
while being treated to a time-travel worthy return to some of the 80s & 90s most iconic
entertainment. Classic carnival games – prizes included – complemented by full-size video
arcade games such as Ms. Pacman, Donkey Kong, Frogger, and others, define this theme. Face
painting and other low-tech interactivities are also featured at the Canna Carnival event. A live
9
DJ set and traditional carnival-themed snacks, such as cannabis infused popcorn and cotton
candy, help round out the experience. We are currently in discussions with Mercy Health Arena
Management on the feasibility of limited carnival rides.
THE MARSH FIELD OPPORTUNITY
Already assuming the success of a Mercy Health Arena consumption event, we are looking to the
fall for use of Marsh Field. Our plans include a two-day outdoor fall festival, The Falling Leaves
Festival, for September 24th & 25th. Our proposed theme will celebrate the ushering in of the fall
season and borrow from the many elements of fall festivals that adults traditionally enjoy. From
adult hayrides to cider and donuts, from arts and crafts to scavenger hunts, from tug of war to
sack races and other Games People Play, we plan to deliver the ultimate cannabis fall experience.
Local musical artists and artisans featuring their wares will round out the event. We will continue
to work with Jacqui Erny and Marsh Field Management on placement decision for designated
consumption tents. Careful planning, with input from all stakeholders, will inform our layout and
design decisions.
As per state regulations, these proposed events will feature strictly regulated designated cannabis
consumption areas. We have discussed options with facility management and are confident in
our capability to adhere not only to the letter of both the City of Muskegon and MRA
regulations, but the spirit as well. Plans include expansion of existing arena smoking sections to
be dedicated to cannabis consumption. We believe this adoption of existing smoking
infrastructure will provide intuitive, user-friendly containment strategies for on-site cannabis
consumption. Our security team, led by Chief James Tolbert, will not only partner with arena
management, but will locally source Muskegon security subcontractors to partner with on our
proposed efforts. We have prioritized local hiring and other resourcing. We believe Chief
Tolbert’s close personal and professional relationships with Chief Sain of the Muskegon Heights
Police Department will be an invaluable resource in realizing that goal.
10
THE VALUE PROPOSITION
In addition to our proposed attendee experience, our event holds a tremendous value proposition
for both Muskegon and its local business community. The allowable arena and field spaces will
provide significant vendor opportunities, and not just for cannabis retailers. Our proposed event
includes inviting the non-cannabis vendors that have traditionally operated at the arena to
participate. The regional draw of this proposed event will drive revenue throughout the non-
cannabis sectors as well, from lodging and hospitality to restaurants and convenience stores. We
believe a Muskegon sanctioned event, at a Muskegon owned venue, should benefit Muskegon at
large.
Every consumption opportunity is a teachable moment. Normalizing and de-stigmatizing safe
cannabis consumption begins and ends with education. With the support of Muskegon, an
Exspiravit cannabis entertainment event will provide guests with data and recommendations for
successful outcomes via complementary media. Exspiravit’s strategy is to meet cannabis event
attendees at the edge of their imagination. Our ability to supplant, or complement, alcohol
consumption, enables us to meet the needs of a plethora of cannabis event themes and penetrate
traditional leisure and entertainment markets.
The vision for a City of Muskegon powered Exspiravit Cannabis Event will be limited only by
resource and imagination. We recognize consumers can enjoy cannabis in the safety of their own
homes. Presenting the otherwise unattainable and unachievable will be why they choose to leave
that safety and comfort and instead enjoy their cannabis consumption with us.
11
OPERATIONAL STRATEGIES
Our primary operational strategy includes redundancy – overstaffing our events – which will
increase the normal cost of event execution. The effectiveness of this strategy, both long and
short-term, reside in its data collection feature. Employing redundancy at each staffing position
enables us to collect significant data and use that data to inform our best practices.
We are currently in talks to partner with industry leader Headset for cannabis data and analytics
solutions. We recognize the value of data collected from our events, to both ourselves and the
cannabis event market. As such, we will seek a symbiotic relationship with Headset, or other
data analysis solution provider, in which there is a one for one exchange of analysis for first
party data. Such cost-effective data analysis will enable us to focus on better understanding the
disassociation between the event client, event attendee, event sponsor, and event municipal
authority, and on temporarily aligning their interests.
Our marketing strategies are designed to address two key goals. First and foremost, we are
raising awareness that we exist, not simply as a marketing partner, but as a means for forward-
thinking cannabis brands in Michigan to safely and legally stage the sort of engaging and
exciting events that people have always dreamed about seeing in the cannabis space. Equally
important, though, is our work helping our partners envision what is possible in the space and
how their own ideas can be brought to life in a fully immersive setting. We are currently
engaging existing Muskegon cannabis operators, consultatively, to provide activation, showcase,
launch solutions, and on the prospects of partnering for events and sponsorship opportunities.
Again, the vacuum that is the Michigan Cannabis Event space needs to be filled with agile, data-
driven leadership and we intend to be that leader. We understand that setting ourselves apart
from any potential competitor begins and ends with credibility. We seek to be recognized as the
adult in the room for cannabis events. Consistent quality execution, born of well-researched,
data-driven SOPs and best practices, is the pathway to a healthy cannabis event market. We
believe a revenue model built on brand credibility will steer opportunity to us and position us as
the go-to cannabis event solution provider in Michigan and beyond.
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We have invested heavily in our Safety and Security SOPs. Our Chief of Logistics, Chief James
Tolbert’s decades of law enforcement leadership have strategically positioned us to access and
procure some of the most advanced, cutting-edge security solutions, including those employing
artificial intelligence and other proactive measures.
13
CORPORATE SOCIAL RESPONSIBILITY
Diversity, equity, and inclusion are values Exspiravit holds dear. As a company founded by an
individual who was justice-impacted, we not only understand the ravages of the US War on
Drugs, but what is required to overcome those ravages and build anew. Drawing on more than
two years of social equity initiative data published by states, we see the flaws. We see what
social equity overtures look like without the benefit of substance and commitment. We know
firsthand what it is like to try and break through institutional barriers without the requisite capital
and relationships.
Our social equity plans are born of recent lived experiences, from unjust arrest and prosecution
to competition with large, well-capitalized brands. Our social equity strategies are living and
breathing. They will continue to evolve based on the market forces that impact traditionally
marginalized groups. While commitments to local hiring from amongst these groups remains the
low-hanging fruit, we aspire to reach higher. An unhealthy tree requires attention at the root, and
that is where Exspiravit concentrates its efforts.
We are currently engaged, and have enjoyed substantive conversations, with Mayor Johnson,
Commissioner St. Clair, and The Grassy Knoll Dispensary on the topic of expungement. We are
working closely with City officials to launch an expungement campaign for affected Muskegon
residents. Where this differs from traditional expungement fairs or clinics is that it will function
as an ongoing effort. Many fairs and clinics can deliver on-site services but lack sustainability.
Mayor Johnson’s idea of a protracted expungement campaign, featuring dedicated follow up and
wrap-around services for participants, is what we believe meets this moment. Beyond that, for
those who hold interest, we would like to assist participants in pursuing their cannabis career
goals.
14
LOOKING TO THE FUTURE
At Exspiravit, we believe we are on the cusp of a cannabis awakening, and that progressive
leadership, like that of Mayor Johnson and the City of Muskegon Commission, is strategically
positioning their municipality out ahead of this awakening. As cannabis retail markets grow and
regulated public cannabis consumption is normalized, infrastructure growth is required to meet
this demand. Just as a newly zoned grocery store or mall require roads to facilitate access and
drive revenue, such is the same for cannabis. The local and state cannabis infrastructure must be
grown to accommodate expansion and growth. And Exspiravit represents a key piece of that
infrastructure. Our events drive local tax revenue, allow local cannabis retailers to add mobility
to their operations, and allow cannabis cultivators, cannabis manufacturers, and secure cannabis
transporters to use sponsorship opportunities to raise their respective brand awareness.
Our events also serve the interests of local lodging and hospitality operators, local eateries, local
fuel stations, local ride-share operators, and countless other non-cannabis businesses. Not simply
building or allowing, but partnering with and supporting safe, regulated public cannabis
consumption events, as the City of Muskegon has clearly leaned in to, represents a win-win
situation for all Muskegonites and their neighboring municipalities.
We thank you for the opportunity to share Exspiravit’s proposed vision for safe, regulated
cannabis consumption events in Muskegon, and look forward to answering any questions you
might have.
15
OUR TEAM
MICHAEL WEBSTER, FOUNDER & MANAGING MEMBER
Following a corporate career in technical content development, Webster made the transition to the
burgeoning medical cannabis industry. With more than a decade of cannabis experience in both the legacy
and regulated markets, he has emerged as an influential voice in the social equity space. He is an ascending
force in the area of advocacy and was most recently featured on the National Cannabis Industry
Association’s Cannabis Minority Report Podcast.
Lisa Altschuler, Chief Strategist
Prior to her entrepreneurial journey, Altschuler blazed a rising trail from copy editor to Vice
President at one of the largest financial institutions in the world. Today, she helps Exspiravit link
cannabis enthusiasts with friendly lodging, meals, events, and classes. She also serves as the Chair
and Co-Founder of MiCHIGO, a nonprofit in formation that advocates for cannabis travel and
hospitality professionals in Michigan.
James Tolbert, Chief Logistics Officer
Tolbert is a 30+ year law enforcement executive and has led the Flint, Michigan Police Department as
chief, as well as the Detroit and Highland Park Police Departments as a Deputy Chief. He is also an
investigator with the Wayne County Indigent Services, providing expert and investigative services to
Wayne County Defense Attorneys.
16
Greg Hill, Chief Marketing Officer
Hill is known as one of the preeminent cannabis brand strategists working today. His work for brands
including Weedmaps, Moxie Extracts, Origin House, and Bear Humboldt have not only propelled each
to a leadership role but have collectively ensured that the industry's leading brands are working to
raise up the entire industry and chart a positive path forward.
17
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 4-26-2022 Title: Downtown Muskegon Social District
plan and map amendments/fee restructure
Submitted By: Dave Alexander Department: Economic Development
Brief Summary: Requesting approval of an updated Muskegon Downtown plan and map, adding
Hackley Park, along Clay Avenue from Second to Fourth and the CIO Hall at 490 W. Western into
the district.
Detailed Summary: The city commission approved the Downtown Muskegon Social District in
August 2020 and amended it in April 2021 to remove the Port City CIO Building Association to
allow the owners to have special event licenses. The enactment of Public Act 27 of 2022 allows a
social district to continue operations even when an LCC special event license is operating within
the district as long as the district and the event are separated. Staff has meet with a group of the
current and potentially future establishments within the Social District and are responding to
longstanding downtown special event requests to operate within the Downtown Social District.
Staff recommendation is to expand the Downtown Social District to include Hackley Park, along
Clay Avenue from Second to Fourth and put 490 W. Western (CIO Hall) back into the district.
Special event licenses are now available in the park and at CIO Hall and allows Social District
patrons to enjoy Hackley Park when events are not scheduled in the park. An amended Downtown
Social District plan, revised Downtown Social District map-list of establishments, and
accompanying resolution are attached for commission consideration. In addition, after meeting with
the establishments concerned about the cost of the 75-cent 2022 social district stickers the
commission approved in December, staff is requesting a modification reducing the cost to 25-cents
a sticker for the first 1,000 stickers for establishments northeast of Terrace Street and in the
separate Lakeside Social District.
Amount Requested: Amount Budgeted: Minimal revenue reduction
Fund(s) or Account(s): Fund(s) or Account(s): Social District
(101-80400-5231)
Recommended Motion: I move to approve an amended Muskegon Downtown Social District plan
and map, a resolution of the same and adjust fees for the Lakeside Social District and the
Downtown District northeast of Terrace Street.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action
Downtown Muskegon Social District Establishments:
1. Muskegon Aerie No. 664 of the Fraternal Order of Eagles, 625 W. Western
2. Muskegon Brewing Co. LLC, dba No Name Saloon, 629 W. Western
3. Ingalls Business Acquisition, dba Mike’s Bar, 555 W. Western
4. Pigeon Hill Brewing Co., dba to be determined, 441 W. Western
5. West Michigan Rum Co. LLC, dba Burl & Sprig, 500 W. Western
6. JPN III LLC, dba Top Shelf Pizza, 500 W. Western
7. City of Muskegon, dba Mercy Health Arena/Rad Dads/Carlisle’s, 470 W.
Western
8. Rolf’s Barbeque LLC, 477 W. Western
9. Legends Bar and Grille LLC, 446 W. Western
10. PKT Twelve LLC, dba Frauenthal Center, 446 W. Western
11. Parkland Acquisition Two LLC, dba Walker’s, 460 W. Western
12. Baker College of Muskegon, dba The Culinary Institute of Michigan, 336 W.
Clay
13. Unruly Brewing Co., 360 W. Western
14. West Michigan Symphony Orchestra, dba The Block, 360 W. Western
15. 18th Amendment LLC, dba 18th Amendment Spirits Co., 350 W. Western
16. City of Muskegon, dba Muskegon Farmers Market, 242 W. Western
17. Nipotes LLC, 98 W. Clay
18. Jim and Gary’s LLC, dba Redmonds/Kitchen 794, 794 Pine
19. JPN IV LLC, dba Capone’s Speakeasy & Pizzeria, 794 Pine
20. Rake’s Beer Project, 794 Pine
21. Pines Bar LLC, dba Hot Rod Harley Davidson, 149 Shoreline Dr. Ste B
Muskegon Social District Plan
Adopted Aug. 25, 2020
Amended April 27, 2021
Amended April 26, 2022
Introduction:
The City of Muskegon seeks to take advantage of Michigan Public Act 124 of 2020 signed in to
law on July 1, 2020 as amended by Public Act 27 of 2022. This is enabling legislation that allows
Michigan municipalities to establish Social Districts that would allow for “common areas” where
two or more contiguous licensed establishments (bars, distilleries, breweries, restaurants and
tasting rooms) could sell alcoholic beverages in special cups to be taken into the area for
consumption. Muskegon city administration through a collaboration of all City Hall departments
is designing a Muskegon Social District and the policies, parameters and management of this
new community development tool. This Muskegon Social District Plan is being shared with
potential license holder users for refinement of the plan, a final draft will be presented to the
Muskegon City Commission for approval and sent on to the Michigan Liquor Control
Commission for state concurrence. The Muskegon City Commission approved the plan Aug. 25,
2020 and it has been accepted by the MLCC. The district began operations the third weekend in
September, 2020 and has been operating continually since. The plan was amended by the City
Commission April 27, 2021 and now again April 26, 2022.
Management:
The Muskegon Social District would be created and managed by the city through its economic
development department and downtown manager. The district management and operations
would be assisted by the city’s public safety, public works, clerk and finance departments.
District boundaries:
The Muskegon Social District would have a common area south of Shoreline Drive with the
potential of expanding to the north in the future.
The initial Muskegon Social District would be mainly along West Western Avenue from Eighth
Street to Pine Street, including portions of Clay Avenue, Morris Avenue, Third Street and
Jefferson Street. Specifically, the plan amended by the Muskegon City Commission April 26,
2022 adds Hackley Park. areas along Clay Avenue from Second to Fourth Streets and the
property at 490 W. Western Ave., owned by Port City CIO Building Association. (map attached)
Streets in the Social Districts would remain open to traffic and for parking, unless parking
spaces are given to outdoor dining. The district is being proposed with the expectation of
certain properties being developed that would include future businesses with liquor licenses
that might expand the common area.
Potential participating license holders as of April 2022:
Muskegon Social District -- The Eagles, No Name Saloon, Mike’s Bar, Pigeon Hill, Burl & Sprig,
Top Shelf, Mercy Health Area/Rad-Dads/Carlisle’s, Dr. Rolf’s, Legends, Frauenthal Center,
Walker’s, the CIM’s Courses, Unruly, 18th Amendment, WMSO/The Block, Muskegon Farmers
Market, Hennessy’s, Hot Rod Harley Davidson, Nipotes, 794 Kitchen, Capone’s, and Rake Beer
Project.
Participating license holders would be asked to sign a Social District agreement with the city,
which must recommend approve of the social district permits issued by the MLCC. This allows a
license holder to sell alcoholic beverages in special district cups in its service area to be taken
into the common area for consumption.
Non-alcohol businesses within the district:
There are businesses which could be in the common area and allow for Social District beverages
to be brought into those places of business if they do not have a MLCC liquor license. Examples
would be retail outlets such as Vintage Redefined, Harris and Willow, Western Market and the
Poka Dot Paisley.
Operations:
The Muskegon Social Districts would operate year-round but the district’s potential seasonal
road closures along with outdoor services and amenities would be from May 1 to Oct. 31.
Operations would be seven days a week. The common areas would be open from 11 a.m. until
11 p.m. Before 11 a.m. and after 11 p.m., Social District beverages would not be able to be
possessed nor consumed in the common areas. After hours, consumption of alcoholic
beverages would have to be contained within the license holders’ service areas.
It was the intent of city administration to begin implementing the Muskegon Social Districts in
2020. After an initial roll out, the district was fully activated in the spring of 2021 with the entire
Muskegon Social District plan implemented.
District designation and marking:
The boundaries of the Muskegon Social Districts would be clearly designated and marked with
signs along streets and sidewalks. The signs could be accompanied by a trash receptacle for
customers to dispose of used district cups as they exit the district.
Social District financing:
The Muskegon Social District established, implemented and managed by the City of Muskegon
must generate enough revenue to cover its costs. A number of funding models could pay for
the Muskegon Social District. The option going forward is a fee for a district sticker purchased
by the establishments from the city needed on beverages purchased for possession and
consumption in the common areas. Participating establishments could handle the surcharge
however they choose within their product price structure. The cup could contain a sponsor logo
or message that could generate dollars for the district. Revenues would pay for initial
implementation such as signs and trash receptacles and ongoing costs such as the stickers,
security-enforcement, sanitation, marketing-promotion and entertainment.
Social District logo and beverage containers:
The Muskegon Social Districts should have a name for branding and marketing purposes but
must have a special logo for use on the non-glass district beverage cups of no more than 16
ounces. The establishment cups need to be branded to differentiate among license holders with
a logo or name identifying the establishment. Muskegon Social District cups may not be reused,
must remain in the establishment where they were purchased or in the common area and may
not be taken into an establishment that did not sell the beverage.
Muskegon Social District will explore the use of cups that can be recycled or composted.
Security-enforcement:
Security and enforcement in the Muskegon Social Districts would be provided by the Muskegon
Police Department. The Muskegon Social District may hire certified private security personnel
to assist within the district.
Insurance:
The city would insure its management and operation of the Muskegon Social District through its
municipal umbrella insurance policy. Participating license holders would be left to secure their
own liability insurance as they deem necessary.
Sanitation:
The Muskegon Public Works Department with heavy assistance from participating
establishments would provide sanitation within the district including trash removal, litter pick
up on a daily basis and deployment of portable toilets, if needed. Each participating license
holder would be required to have a city provided trash receptacle outside of its entrances for
the disposal of district cups and empty those receptacles when needed. The city would
maintain its current downtown trash receptacles and could expand the number in areas where
establishments are not available to assist.
Marketing and promotion:
The Muskegon Social District is the branded name for marketing purposes and a distinctive
logo. Marketing is be done through traditional free media and paid advertising along with
extensive social media. The district needs its own Facebook page, other social media accounts
and website.
Entertainment/food trucks:
The Muskegon Social District has the opportunity to provide entertainment on a regular basis
and food trucks when warranted. The district includes three small stages to provide various
musical acts, including Olthoff Stage, Alcoa Square and the Farmers Market. The district could
also coordinate and promote individual establishments wanting to feature musical
entertainment. Finally, food trucks could be introduced to drive visitors into the district and
create a street-fair atmosphere when deemed necessary.
Festivals/special events:
The state’s Social District law now allows special event liquor licenses to operate in a Social
District. Such special licenses are the backbone of several large festival events historically within
Muskegon’s Social District. Going forward, the Muskegon Social District, its participating license
holders and event organizers will work with the City of Muskegon to make sure that events with
alcoholic beverage will not allow its beverages to enter the Social District nor Social District
beverages to enter the special event area. Ongoing coordination and collaboration with
downtown events and festivals will be needed.
Muskegon Social District - South
Muskegon Social District
1 The Eagles
2 No Name Saloon
3 Mike’s Inn 21
4 Pigeon Hill Brewing
5 Burl and Sprig
6 Top Shelf 17
16
7 Arena/Rad Dads/Carlisle’s 18
20
19
8 Dr. Rolf’s BBQ
9 Legends
10 Frauenthal Center
11 Walker’s The Foundation 14 20
12 The CIM’s Courses 13 15 5
13 Unruly Brewing
14 The Block 11 12
15 18th Amendment 9 10
16 Farmers Market 4
17 Nipote’s 7
8
18 794 Kitchen & Bar 6
19 Capone’s Speakeasy
20 Rake Beer Project
21 Hot Rod Harley Davidson 3
2
1
= Consumption Area