Mayor's Office

August 15, 2017

Hon. City Council

City of Dearborn Heights

Dear Councilmembers:

Daniel S. Paletko Mayor

APPROVED FOR AGENDA OF

On June 1, 2017, I shared all of the documents, costs and items necessary related ot the purchase of the Warren Valley Golf Course to your honorable body. The last item of due diligence that is necessary to complete the process is financial review.

While we are waiting for the County to provide the document, I have met with Plant Moran Cresa and received a proposal from them that would include review of the records, due diligence, feasibility review, etc. I am recommending that you agree with me and authorize the City of Dearborn Heights to enter into the attached agreement w ith Plate Moran Cresa for consulting services as it relates to the Warren Valley Golf Course and Banquet Center for an amount not to exceed $30,000 and authorize myself and the Clerk to sign.

As our auditors, Plante Moran is well-known and respected and would be the best partner in assisting us in our financial review of the existing and future operations of the Warren Valley Golf Course and Banquet Center.

If you have any additional questions or concerns, please contact me at 313-791-3490 or dpaletko@ci.dearborn-heights.mi.us .

Sincerely,

DanielS. Paletko

Mayor

City of Dearborn Heights • 6045 Fenton • Dearborn Heights, Ml 48127 • (313) 79i -3490 • Fax {313) 791-3491

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plante moran CRESA ~ REAl ESTATE CONSULTANTS

May 1, 2017

Mr. Daniel Paletko Mayor

Via email : dpaletko@ci.dearborn-heights.mi.us

City of Dearborn Heights 6045 Fenton Dearborn Heights, Ml48127

Re: Consulting Services- Real Estate and Due Diligence Assessment for Warren Valley Golf Course

Dear Mr. Paletko:

Thank you for your interest in Plante Moran Cresa {PMC) to provide consulting services for the City of Dearborn Heights {DH) relative to the real estate and due diligence assessment for Warren Valley Golf Course, its facilities, and potential site redevelopment project (Project). We sincerely appreciate your consideration of PMC to assist DH with its feasibility and assessment needs and will strive to provide DH with outstanding services.

PMC agrees on behalf of itself and each of its employees that no such person or entity shall represent the products or services of any architect, engineer, property owner, landlord, developer, contractor or any related vendor.

ENGAGEMENT /SCOPE OF WORK

PMC understands that DH is currently considering the feasibility of a potential purchase and redevelopment of the Warren Valley Golf Course, its facilities and 250 acre site located at 26116 West Warren Street in Dearborn Heights. DH has requested PMC to assist and advise the DH on the key parameters of the Project particularly in the review of the feasibility and assessment needs for a redevelopment proposal. Services include due diligence/feasibility review of the Project based on current and operational considerations provided by DH. Such materials shall include site plan{s) review, space programming, cost estimates, phasing schedule, market research, financial metrics, debt ownership structures, rate of return, and other assumptions used in the preparation of development proposal plans presented to DH for consideration.

The Project services to be provided by PMC for th is engagement are more particularly described in the Scope of Services attached as Exhibit A and will be performed subject to the Terms and Conditions attached as Exhibit B.

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Mr. Daniel Paletko Dearborn Heights

May 1, 2017

In preparing this proposal, PMC has made the following key assumptions regarding this engagement. These key assumptions have been relied upon by PMC in determining the required Scope of Services designated on Exhibit A, PMC's compensation for services, and the terms of this engagement:

This Project will be further described in a final capital plan/ development agreement as agreed to by all parties.

• Proposed selling price for the Warren Valley Golf Center is $1,800,000 • DH is interested in reviewing possible real estate and park development on the existing site • PMC will provide periodic updates to the DH Administration Team as well as attend (1) DH Council

meetings as required for Council updates/approval

• Assumes DH Administration and Council are able to make necessary Project decisions in a timely manner (taking into account the Council's status as a public body), allowing Project professionals (architect, construct ion manager, technology designer, etc.) the ability to adhere to the master Project schedule.

• The facilities to be constructed of normal, durable, and readily available materials, as used in the construction of public facilities.

COMPENSATION

Real Estate and Due Diligence Consulting Services PMC shall be compensated on a fixed fee of in accordance with the scope defined herein, not to exceed Thirty Thousand Dollars ($30,000.00), including reimbursable expenses (mileage, travel, reproduction, etc.). PMC will invoice monthly in (3) equal installments of $10,000 per month plus reimbursable costs

ACCEPTANCE

PMC will commence its services upon execution of this proposal, and will continue for a time frame to be mutually determined and agreed upon (anticipated to be three months) by the parties based on a final capita l plan/development agreement.

To accept this proposal including the terms of this letter and Exhibits A and B attached hereto, please sign the Accepted and Agreed acknowledgement below and return it to me. Upon execution below, this proposal (including Exhibits A and B) will become a binding agreement ("Agreement") between DH and PM C. Should you have any questions please contact me or Cameron at (248) 223-3316.

Sincerely,

PLANTE MORAN CRESA, LLC

Paul R. Wills, AlA, LEED AP Partner

Cameron McCausland Partner

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Mr. Daniel Paletko Dearborn Heights

May 1, 2017

We accept this proposal, including Exhibit A and Exhibit B attached hereto, which sets forth the entire agreement between RO and PMC for the services specified herein. We acknowledge that such acceptance creates a binding Agreement between DH and PMC.

Accepted and Agreed:

City of Dearborn Heights

By: Mr. Daniel Paletko

Its: Mayor

Date: ____________________________ ___

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EXHIBIT A

SCOPE OF SERVICES

Upon execution of the Proposal dated May 1, 2017 this Exhibit A shall be incorporated into the Agreement between DH and PMC.

Real Estate and Due Diligence Consulting Services

• Assist and advise DH in the development of the final Project program culminating with an executed feasibility and assessment report that clearly identifies the size, scope, cost, delivery method, etc., of the potential redevelopment of the facility and site. Activities will include:

• Review of current AlTA survey, flood plan delineation, geotechnical, etc.

• Review of the final space and site programs for the facility and site

• Review of the final building standards for the facility and site

• Assist in the development of the phasing plan/schedule for the Project

• Assist in the development of a final Project budget

• Review information provided to DH from the existing owner(s) relative to operational and maintenance costs

• Assist and advise in the review of financial proformas, metrics, and assumptions for Project feasibility to be included in feasibility and assessment report

• Assist and advise DH in the review and editing of a final feasibility and assessment report for Council review and consideration

• Present draft report to DH Administration and Council

• Present final report to DH Administration and Council

EXHIBIT B

TERMS AND CONDITIONS

Upon execution of the Proposal dated May 1, 2017, this Exhibit B shall be incorporated into the Agreement between DH and PMC.

1. PMC'S SERVICES:

1.1. PMC's services (the Services) include the consulting services designated on Exhibit A to the Agreement and additional services, if any, performed by PMC in connection with its engagement under the Agreement. PMC shall perform the Services in accordance with the Terms and Conditions in this Exhibit B.

If PMC determines that additional services are necessary or advisable in the interest of DH, PMC shall notify DH and clearly describe such services in writing, including a cost estimate for the performance of same. If accepted by DH, PMC and DH shall mutually agree in writing to an increase in PMC's compensation for such additional services before the work is performed.

1.2. PMC and DH acknowledge that PMC shall have no authority, express or implied, to enter into written or oral agreements on behalf of DH, to take any other actions with respect to DH's Project or the business affairs of DH, or to commit or otherwise obligate DH in any manner whatsoever, without the prior written approval of DH. The Services provided by PMC are inherently advisory in nature. PMC shall have no responsibility for management decisions or management functions.

2. DH'S RESPONSIBILITIES:

2.1. DH shall designate a representative with authority to act on DH's behalf to be the contact person for purposes of the communications between DH and PMC regarding PMC's Services. Daniel Soenen, President of DH and Paul Wills, Partner of PMC will be the Representatives unless notified otherwise.

2.2. DH shall provide full information to PMC regarding DH's requirements as necessary for the performance of PMC's Services.

2.3. DH shall provide information, review documents provided by PMC, and render decisions relating to PMC's Services on a timely basis so as not to delay the performance of PMC's Services.

2.4. DH shall engage third parties to provide services, including by way of example, surveyors, testing consultants, engineers, attorneys and risk management consultants, as reasonably required for the performance of PMC's Services.

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2.7 . DH agrees to report promptly in writing to PMC any default or defect in PMC's services or non­conformance with any provision of this agreement.

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2.8. DH covenants and agrees during the term of this Agreement and for the period of one year after its completion or termination not to solicit for employment, on behalf of DH or any other entity, any PMC staff member or members working on the engagement under this Agreement, including former PMC staff members.

3. PMC'S RESPONSIBILITIES:

3.1. PMC shall perform the Services in accordance with the standard of professional ski ll and care exercised by other consultants performing similar services under similar circumstances.

3.2. PMC does not warrant or guarantee the outcome of Project proformas, budgets or other financial Projections developed by PMC for use in connection with its Services. Budgets, cost estimates, schedules, and financial Projections prepared by PMC represent PMC's best professional judgment as a consultant. It is recognized, however, that neither PMC nor DH has control over the cost of labor, materials or equipment, market conditions, contractors' methods of determining bid prices or other competitive bidding or negotiating conditions. PMC cannot and does not warrant or represent that the outcome of bids or negotiated prices will not vary from any Project budget proposed, established or approved by DH, or from any cost estimate, Projection or evaluation prepared by PM C.

3.3. PMC shall not be responsible for the failure of engineers, architects, general contractors, subcontractors, vendors, attorneys, or other consultants to carry out their respective duties and obligations to DH. PMC is not responsible for the performance of any party not employed directly by PMC, and PMC is not responsible for the performance of consultants engaged by PMC in connection with PMC's Services under this Agreement.

3.4. PMC's Services do not include professional architectural or engineering services. PMC shall not be responsible for the design of any Project, for any errors, omissions or other deficiencies in the construction drawings and specifications for a Project, for any other error or omissions of architects or other design professionals, if any, in connection with a Project, or for the failure of the construction drawings and specifications for a Project to comply with the requirements of DH or DH's landlord or subtenants or with applicable codes or legal requirements. It shall be the responsibility of DH's architect, not PMC, to identify building code and other legal requirements pertaining to the design of a Project for DH.

3.5. PMC shall not be responsible for construction means, methods, techniques, sequences and procedures, and safety programs and measures employed by contractors or others in the performance of their contracts, and shall not be responsible for the failure of any contractor or supplier to carry out work in accordance with the construction drawings and specifications or other contract requirements.

3.6. Any acts of PMC in providing consultation, advice and/or recommendations to DH regarding the performance or the default of DH's architect, contractor(s), vendors or other consultant(s), shall not be deemed to be the assumption by PMC of management or control of the architect, contractor(s), vendors or consultants or of DH's Project.

3.7. PMC is not an attorney at law, and the Services provided by PMC exclude professional legal services. If the scope of PMC's Services includes assistance with the negotiations of agreements on behalf of DH, such agreements shall be subject to DH's approval. DH shall provide for the

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review of such agreements by DH's attorneys and insurance consultants as deemed to be appropriate by DH.

4. COMPENSATION:

4.1. For the performance of Services, DH shall compensate PMC as provided in the Agreement. Unless provided otherwise in the Agreement, PMC shall submit invoices for Services rendered by PMC to DH. All invoices shall be prepared in accordance with the compensation terms in the Agreement and DH agrees to pay invoice within thirty (30) days after receipt thereof; provided, however, that in the event DH disputes the accuracy for any invoice prepared and presented, payment for the portion which is disputed by DH may be withheld until such dispute is resolved.

4.2. PMC shall be entitled to an increase in the not-to-exceed amount for PMC's hourly services additional compensation if any of the following occur: increase in the Scope of Services designated on Exhibit A or other changes in the scope of PMC's Services; change in any of the key assumptions of this engagement listed in the Agreement; change in the time period for performance of PMC's Services; change in the nature of the Services required to be performed, including changes that require more effort or resources of PMC; change in DH's budget, schedule, delivery method, or scope or nature of the transaction or Project; default of DH's architect, contractor(s), consultants or vendors; delay or interruption in the transaction or Project; failure of DH to follow the advice and recommendations of PMC; or failure of DH to provide adequate financing for the Project/transaction on a timely basis.

4.3. Should PMC be required to provide evidence, prepare for hearings, evaluate claims, assist in the review or preparation of claims or defenses, or otherwise participate or assist in the resolution of legal disputes either: (i) on behalf of DH, or (ii) resulting from PMC's role as consultant or Project Management (unless caused by PMC's gross negligence or intentional misconduct), PMC will be reimbursed on a "Time and Materials" basis, which is defined to mean the numbers of hours of Services performed by PMC's personnel multiplied by PMC's then current standard hourly rates ("Standard Hourly Rates") plus the direct cost incurred by PMC in performance of such services.

4.4. In the event DH fails to pay PMCany amount due to PMC under this Agreement, and if such failure to pay continues for a period of fifteen (15) days following written notice of non-payment, PMC may, without prejudice to any other remedy PMC may have, suspend all or some of PMC's Services until all amounts due to PMC have been paid by DH.

4.5. Any taxes or fees, enacted by local, state or federal government subsequent to the date of this agreement, and based on gross receipts or revenues will be added to the amounts due under this agreement, in accordance with any such fees or taxes.

5. LIMITATION ON LIABILITY:

5.1 In no event shall DH or PMC be liable to the other for special, incidental or consequential damages, including without limitation, loss of anticipated profits, revenue or use of capital, loss of use of leased spaces, and penalties imposed under the leases, whether based on contract, tort, negligence, strict liability or otherwise; provided, however, that the foregoing shall not limit or preclude a claim of PMC with respect to compensation due to PMC under this Agreement.

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5.2 PMC's liability under this Agreement shall not in any event exceed the amounts of compensation for Services paid to PMC under this Agreement.

6. ENVIRONMENTAL CONDITION OF SITE:

6.1 DH has disclosed to PMC in writing the existence of all known and suspected Asbestos, PCBs, Petroleum, Hazardous Waste, Radioactive Material, hazardous substances, and other similar conditions (Constituents of Concern) located at or adjacent to all property owned or controlled by DH which is the subject of this engagement (Sites), including type, quantity, and location.

6.2 DH represents to PMC that to the best of its knowledge no Constituents of Concern, other than those disclosed in writing to PMC, exist at any Site.

6.3 If PMC becomes aware of an undisclosed Constituent of Concern, then PMC shall notify (1) DH and (2) appropriate governmental officials if PMC reasonably concludes that doing so is required by applicable laws.

6.4 It is acknowledged and agreed by DH and PMC that PMC's scope of services do not include any services related to Constituents of Concern. If PMC or any other party encounters an undisclosed Constituent of Concern, or if investigative or remedial action, or other professional services, are necessary with respect to disclosed or undisclosed Constituents of Concern, then PMC may, at is option and without liability for consequential or any other damages, suspend performance of Services related to the Site(s) affected thereby until DH: (1) retains appropriate specialist consultant(s) or contractor(s) to identify and, as appropriate, abate, remediate, or remove the Constituents of Concern; and (2) warrants that the specific site is in full compliance with applicable laws.

6.5 If the presence at any Site of undisclosed Constituents of Concern affects the performance of PMC's Services under this Agreement, then PMC shall have the option of (1) accepting an adjustment in its compensation and in the time for completion of its Services, or both; or (2) terminating this Agreement.

6.6 DH acknowledges that PMC is performing professional Services for DH and that PMC is not and shall not be required to be an "owner," "arranger," "operator," "generator," or "transporter" of hazardous substances, as defined in the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), as emended, which are or may be encountered at or adjacent to any Site in connection with PMC's activities under this Agreement.

7. MISCELLANEOUS:

7.1 Nothing contained in this Agreement shall create a contractual relationship or a cause of act ion in favor of a third party against either DH or PM C. The Services performed by PMC under this Agreement are for the sole benefit of DH, and shall not be relied upon by other parties.

7.2 PMC and DH may not assign its rights under t his Agreement without the prior written consent of the other.

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7.3 PMC shall be entitled to use DH 's name, photographs, renderings, narrative descriptions and

similar materials relating to PMC's Services in connection with publications, awards, press releases, and marketing materials.

7.4 Provided that DH has paid all amounts due to PMC under this Agreement, DH shall be entitled to use all studies, reports, summaries, cost estimates, budgets, and other documents prepared by PMC in the performance of its Services; provided, however that DH shall not disclose or permit other parties to use such information and documents. PMC shall be entitled to retain copies of such documents for PMC's files. Notwithstanding the foregoing, PMC shall retain all ownership and intellectual property rights in, and DH shall not use or permit the use by others of, all standard contract provisions and modifications, financial analysis programs and similar tools developed by PMC for PMC's use generally and not developed solely for purposes of this engagement.

7.5 Prior to the initiation of any legal proceedings, Client and PMC agree to submit all claims, disputes, or controversies to each other in writing. For a period of fourteen (14) days after the dispute is presented, d iscussions shall be held between the principal decision maker(s) of Client and PMC (as designated by the respective parties) in an effort to resolve the dispute. If the dispute is not resolved and reduced to a written settlement agreement within such fourteen (14) day period, then the parties shall submit the dispute to arbitration.

7.6 Any disputes between DH and PMC relating to PMC's Services or this Agreement shall be governed by the laws of the State of Michigan. Any claim, dispute or other matter in question arising out of or relating to this Agreement or breach thereof shall be settled exclusively by f inal and binding arbitration administered by the American Arbitration Association under its Construction Industry Arbitration Rules of the American Arbitration Association and judgment upon the award rendered by the arbitrator(s) may be entered in any court of competent jurisdiction. This does not restrict either party from filing a claim or charge with any state, federal or other governmental administrative agency. Rather, this arbitration provision applies only to local, state or federal court proceed ings. Each claim or dispute shall be determined by one (1) arbitrator selected by mutual agreement of the parties. Demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitration Association . A demand for arbitration shall be made within a reasonable time after the claim; dispute or other matter in question has arisen. In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statutes of limitations. Arbitration shall include, by consolidation, joinder or in any other manner, an additiona l person or entity not a party to this Agreement, including, without limitation, contractors, contractors ' employees, and contractors' sub-contractors, and any other person or entity sought to be joined.

7.7 PMC and DH shall each maintain insurance coverage as deemed by each to be necessary for its

own protection; provided, however, that DH shall include PMC as an additional insured under DH's general liability insurance policy with respect to claims and losses related to this engagement only. In addition, if PMC provides Services under this Agreement in connection with the construction of a Project for DH, the follow ing shall apply: (i) DH's general contractor's general liability insurance for such Project shall include PMC as an additional insured; and (ii) PMC and DH shall each waive all rights against each other and the contractors, consultants, agents and employees of the otherfor any loss or damage, for which property insurance is maintained by the injured party, and PMC and DH each shall require appropriate simi la r waivers from their contractors, consultants and agents.

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7.8 No failure by DH or PMC to insist upon strict performance of any covenant, agreement, term or condition of this Agreement or to exercise any right, term or remedy for a breach of this Agreement, shall constitute a waiver of any such breach or of such covenant, agreement, term or condition .

8. TERMINATION:

8.1 This Agreement may be terminated by DH upon thirty (30) days prior written notice if PMC is in default under this Agreement and fails to cure such default within such thirty day period. In addition, provided that DH is acting in good faith, DH shall be entitled to terminate this Agreement, without cause upon thirty (30) days prior written notice to PMC.

8.2 This Agreement may be terminated by PMC upon thirty (30) days prior written notice if DH is in default under this Agreement and fails to cure such default within such thirty day period. In addition, provided that PMC is acting in good faith, PMC shall be entitled to terminate this Agreement, without cause upon thirty (30) days prior written notice to DH.

8.3 In the event this Agreement is terminated for any reason, PMC shall be compensated on an equitable basis for services performed as of the effective date of termination in accordance with this Agreement. Upon any such termination and payment of amounts due to PMC, the parties hereto shall be released of any and all further liability hereunder.

9. THIS AGREEMENT:

9.1 DH and PMC accept the obligations of good faith and fair dealing towards each other with respect to this engagement.

9.2 This Agreement includes the proposal executed by PMC and DH, Exhibit A Scope of PMC's Services, Exhibit B Terms and Conditions, and other documents, if any, listed in the Agreement. This Agreement sets forth the entire, integrated agreement between PMC and DH, supersedes all prior proposals, negotiations, representations and agreements, whether written or oral, between PMC and DH, and shall govern the relationship between PMC and DH with respect to all Services provided by PMC to DH in connection with the engagement described in the Agreement. This Agreement may be amended only by written instrument signed by both PMC and DH.

9.3 Neither this Agreement nor PMC's performance of Services shall be deemed to create a partnership or joint venture between DH and PMC.

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Mayor's Office

August 15, 2017

Han. City Council

City of Dearborn Heights

Dear Councilmembers:

Daniel S. Paletko Mayor

APPROVED FOR AGENDA OF

I have received the necessary signed petitions from a majority of the residents regarding a special assessment for the proposed improvements to the Old orchard Pond in the River Oaks Subdivision.

I spoke with Corporation Counsel, who recommended that I place this matter on the Council Agenda and Gary will direct the City Council on the next action required .

If you have any additional questions or concerns, please contact me at 313-791-3490 or d pa letko@ci.dearborn-heights. mi. us .

Sincerely,

DanielS. Paletko

Mayor

City of Dearborn Heights • 6045 Fenton • Dearborn Heights, Ml 48127 • (313) 791 -3490 • Fax (313) 791-3491

Mayor's Office

August 15, 2017

Hon. City Council

City of Dearborn Heights

Dear Councilmembers:

Daniel S. Paletko Mayor

APPROVED FOR AGENDA OF

?-22-17

Attached is a sample resolution and back-up regarding the Financing Plan. While the size of the attachment may seem overwhelming, the majority of it pertains to the 1994 judgement levy issued by Judge John Feikens.

I have asked Assistant Corporation Counsel Patrick McCauley to come before you in a study session prior to the meeting and explain why this resolution is necessary. It is my understanding that the other 12 communities have already adopted similar resolutions.

Therefore, I am recommending the Dearborn Heights City Council adopt the attached resolution and authorize myself and the City Clerk to sign it.

If you have any additional questions or concerns, please contact me at 313-791-3490 or dpaletko@ci.dearborn-heights.mi.us .

Sincerely,

0JJA.~ DanielS. Paletko

Mayor

City of Dearborn Heights • 6045 Fenton • Dearborn Heights, Ml48127 • (313) 791-3490 • Fax (313) 791-3491

DONALD j . GASIOREK SAM G. MORGAN DAVID F. GRECO PATRICK B. McCAULEY DAVID A. KOTZIAN A NGELA MANNARINO AHMAD A. CH EJ JAB

OF COUNSEL: PAUL W. HINES

LEGAL ASSISTANT PATR!ClA A. KRAL

••• GASIOREK MORGAN GRECO •• McCAULEY & KOTZIAN P.C.

Attorneys and Counselors 30500 NORTHWESTERN HIGHWAY SUITE 425

FARMINGTON HILLS, Ml 48334 (248) 865-0001 FAX (248) 865-0002 www.gmgmklaw.com

August 10, 2017

DOWNRIVER OFFICE: 2933 FORT STREET LINCOLN PARK, M ! 48146

MACOM B COUNTY OFFICE: 43805 VAN DYKE AVENUE STERLING HEIGHTS, Ml 48314

Advance Copy Via Email

Mayor Daniel Paletko

Attorney~C iient

Privileged Communication

City of Dearborn Heights 6045 Fenton Street Dearborn Heights, Ml 48127

Re: DUWA and Stipulated Amendment to Financing Plan

Dear Mayor Paletko,

The Downriver Utility Wastewater Authority ("DUWA") has requested that the DUWA member communities authorize a Resolution for the execution of the attached Stipulated Amendment to Financing Plan and Final Judgment ("Stipulation") . The DUWA Board by Motion on April 13, 2017 recommended this action by its members.

If the DUWA purchases the Downriver Sewer System assets from Wayne County, the millage collection and payment of bonds until 2028 will continue as it has been in the past. The County will continue to carry the bonds on its books and pay them off as it has been doing from the Judgment Millage Revenue. The Stipulation will maintain the status quo on the collection of the Judgment Millage pursuant to the 1994 Financing Plan entered by District Court Judge John Feikens. Please place this matter on the City Council's Agenda for its next meeting. Attached is a model Resolution, in Word, the Stipulation and its Exhibits.

If you have any questions, please don't hesitate to contact me. I would be pleased to attend the City Counci l meeting to answer any questions the Council Members may have.

PBM:kc Enclosure( s) cc: Gary T. Miotke, Esq.

Very truly yours,

GASIOREK, MORGAN, GRECO, McCAULEY & KOTZIAN, P.C.

'?0v--~~~~ PATRICK B. McCAULE~

Due to the large size

of agenda item 8-C, the

remaining 164 pages

will be sent to you in

a separate email.

For this same reason,

hard copies will only be

available upon request.

Mayor's Office

August 15, 20 l 7

Honorable City Council City of Dearborn Heights

Dear Council Members:

Daniel S. Paletko Mayor

APPROVED FOR AGENDA OF

~--z:z.-l7

I would like to appoint Mr. William Davis, who resides at 25676 Loch Lomond, Dearborn Heights, MI 48127 to the TIF A Board, term to expire in December, 2020. This appointment is to fill a vacancy left by Ron Krochmalny. Your concurrence in this appointment would be greatly appreciated.

Sincerely,

Daniel S. Paletko Mayor

DSP/sns

City of Dearborn Heights • 6045 Fenton • Dearborn Heights, Mt 48127 • (313) 791-3490 • Fax (313) 791-349'1

ctTY 01;-

August 9, 2017

To: Mayor Daniel S. Paletko

From: Lee Gavin - Chief of Police

RE: Request for Approval

Police Department

I am respectfully requesting that you approve the following budget transfer:

From: To:

Utilities- Police Account# 300-745 Telephone -Police Account #300-853

Amount: $12,000.00

This fund transfer is to cover future Ameritech bills that have increased.

Respectfully,

tk t!~ lee-~

Lee Gavin Chief of Police

Daniel S. Paletko Mayor

APPROVED FOR AGENDA OF

~- 22- \7

City of Dearborn Heights 25637 Michigan Ave. Dearborn Heights, Michigan 48125 (313) 277-6770 www.dearbornheightspd.com

'1- \S

Daniel S. Paletko Mayor

Elisabeth Sobota-Perry n·

APPROVED FOR AG ENDA OF

Human Resource Department CONCUR

()~4- ~~ ~-22.-17

TO: Mayor Paletko and Honorable Members of the City Council

FROM: Elisabeth Sobota-Perry

DATE: August 7, 2017

RE: Agreement with Nyhart for Interim GASB 45 Report

I am requesting Mayoral concurrence and the City Council's approval to engage in a contractual relationship between the City of Dearborn Heights and Nyhart Company, Inc.

It has been recommended by our auditors Plante Moran that the City have the GASB 45 number (i.e., the healthcare valuation for retiree benefits) evaluated for the Fiscal Year ending June 30, 2017. Nyhart is the actuarial firm we have used to complete our required bi-annual study.

In addition to the projection for GASB 45, we were also advised to start working on the GASB 75 study required for June 30, 2018. The reporting requirements of GASB 75 are generally more extensive than those under GASB 45. The most significant impact of these new standards is the change from reporting the unfunded actuarial accrued liability for the healthcare plan in the footnotes of the financial statements to recognizing the unfunded actuarial accrued liability on the balance sheet.

This year's cost from Nyhart will be $2,250. The work for next year will be $10,000, and this will be budgeted in the next fiscal year (2018/2019).

r would appreciate your consideration in approving this agreement and to authorize the Mayor to sign this document.

Thank you!

THE HOWARD E. NYHART COMPANY, INC. ("NYHART") SERVICE AGREEMENT e'AGREEMENT")

Agreement Between Nyhart, and:

Client Name: City of Dearborn Heights

Primary Contact Name: Elisabeth Sobota-Perry

Primary Contact Address: 6045 Fenton

Dearborn Heights, Ml 48127

Primary Contact Phone: (313) 791 -3420

Primary Contact Fax:

Services to be provided by Nyhart

All services to be provided by Nyhart are subject to your full cooperation and prompt submission of complete and accurate Information. Nyhart will rely on any and all information that you provide pursuant to this Agreement and on file at our office as to accuracy and completeness. Nyhart will have no responsibility to verify such Information and no liability for errors or omissions as a result of relying on such information. Nyhart is not a law firm or a public accounting firm and does not provide legal or tax advice.

For the fiscal year ending June 30, 2017, Nyhart will provide the following actuarial services:

1. Data collection (including census data) and analysis 2. Preparation of an abbreviated actuarial valuation report 3. Disclosures as required by GASB 45

For the fiscal year ending June 30, 2018:

Nyhart will provide the following actuarial services:

1. Data collection (including census data) and analysis 2. Preparation of a comprehensive actuarial valuation report 3. Disclosures as required by GASB 75

Fees for services provided by Nyhart

The fees listed below are subject to annual adjustments.

Service

Actuarial projection GASB 45:

Full GASB 75

Fee

$2,250

$10,000

Client will be invoiced prior to the beginning of the project for 50% of the above fee(s). The remainder of the fee shall be invoiced upon completion of services.

Page 1 of 4

There will be additional fees for revisions to preliminary or final results that are due to:

• Incorrect information provided to us, typical examples Include to material changes to census data, changes to eligibility requirements or employer subsidies. The additional fee will be limited to 1/3 of the current year's fee for this type of revision.

• Changes to actuarial assumptions requested by the client that are expected to need more than four hours of labor to update the results. The additional fee will be based on billed labor in excess of four hours at our current hourly rates.

Additional services available if requested by Client

In addition to GASB valuation services, Nyhart offers the following additional services. Fee estimates will be provided upon request. Please visit www.nyhart.com or contact your Nyhart consultant for more Information.

• Health Care Reform financial impact consulting • Actuarial Value and Minimum Value determination • Section 105(h) non-discrimination testing • Calculation of self-funded and COBRA premium rates • Incurred But Not Reported (IBNR) Reserve calculations • Medicare Part D Attestation • What-if Modeling for health plan design and carrier changes • Defined Benefit & Pension consulting and administration • Defined Contribution, 401 (k) & 403(b) • Flex Accounts- FSA, HRA, & HSA consulting and administration

Relationship of the Parties

The legal relationship between Client and Nyhart shall be exclusively that of principal and agent. The parties hereto specifically agree and acknowledge that Nyhart shall not:

• Have discretionary authority over any aspect of the Plan; • Be a fiduciary; • Be responsible for ensuring that the Plan complies with any requirement to which the Plan is subject, or be

liable to the Plan, Client, or any person if the Plan falls to comply with any such requirement; • Have any duty or authority to enforce the payment of any contribution owed under the Plan; • Be responsible for the adequacy of the trust established as part of the Plan, or be liable for any benefits owed

under the Plan; • Exercise discretion as to any Plan function; or • Have any obligation to perform any service not specified in this Agreement or otherwise agreed to in writing by

the parties (regardless of whether such service may be considered "customary" services to be provided by Nyhart).

Client agrees that Nyhart shall use all information and data supplied by or on behalf of the Client without having independently verified the accuracy or completeness of it except to the extent required by generally accepted professional standards and practices. If any documentation or information supplied to Nyhart at any time is Incomplete, Inaccurate or not up-to-date, or its provision is unreasonably delayed, Nyhart will not be responsible for any delays or liability arising therefrom, and will be entitled to charge the Client In respect of any resulting additional work actually carried out.

The Client further understands that the failure to provide, or cause to provide, complete, accurate, up-to-date, and timely documentation and Information to Nyhart, whether intentional or by error, could result in an Impairment of Nyhart's services.

Page 2 of 4

Client Responsibilities and Representations

The Client has general responsibilities with respect to the Plan, including

• Provid ing all information required by Nyhart to perform Its services under this Agreement on a timely basis; • Serving as fiduciary for the Plan; • Communicating Plan details to employees and answering employee questions; • Ensuring adequate funding of the Plan; and • Authorizing plan disbursements and ensuring accuracy of information provided.

Dispute Resolution

Nyhart and Client agree that before commencing any action or proceeding with respect to any dispute between the parties arising out of or relating to this Agreement or the Services they first shall attempt to settle such dispute through consultation and negotiation in good faith and In a spirit of mutual cooperation . Any such dispute will be submitted In writing to a panel of one (1) senior executive or offic ial of each of Nyhart and Client, who will promptly meet and confer in an effort to resolve such dispute. Each party's representative will be Identified by notice to the other, and may be changed at any time thereafter by notice to the other. Any mutually agreed decisions of the executives will be final and binding on the parties. In the event the executives are unable to resolve any dispute within thirty (30} days after submission to them, either party may then refer such dispute to mediation by a mutually acceptable mediator to be chosen by Nyhart and Client within forty-five (45) days after written notice by either party demanding mediation. Neither party may unreasonably withhold consent to the selection of a mediator. All commun ications and discussions in furtherance of this paragraph shall be treated as confidential settlement negotiations, which are not subject to discovery. The costs of the mediator shall be shared equally, but each party shall pay Its own attorneys' fees .

Any dispute which cannot be resolved between the parties through negotiation, mediation or other form of alternative dispute resolution within six months of the date of the Initial demand for mediation by one of the parties may then be submitted to a court of competent jurisdiction. To facilitate an expeditious and economical judicial resolution of such dispute, Nyhart and Client agree to waive and not to demand a trial by jury, and not to include any employee, officer, director or trustee of either as a party, in any action, proceeding or counterclaim relating to such dispute. Nothing in this section will prevent either party from resorting to judicial proceedings if interim relief from a court is necessary to prevent serious and Irreparable injury to that party or to others. Any claim, action or proceeding against Nyhart will be barred unless Client initiates the dispute resolution procedures outlined below within one year of first discovering the act, error or omission that is the basis for such claim.

Indemnification and Limitation of Liability

The liability of Nyhart, In tort, contract or otherwise, to Client, a Plan and the officers, directors, trustees, employees or shareholders of any of them, and to any other third party, for all claims arising in connection with or contributed to by this Agreement and the Services (including without limitation multiple claims arising out of or based upon the same act, error or omission, or series of continuous, interrelated or repeated acts, errors or omissions) shall not include loss of profit or incidental, consequential, indirect, punitive or similar damages and shall be further limited to the amount of fees for Services received by Nyhart under this Agreement for the twelve (12) months immediately preceding the act, error or omission upon which such liability Is based. Nothing In this paragraph shall apply to any liability which has been finally determined to have arisen from willful misconduct or fraud on the part of Nyhart or which cannot lawfully be limited, modified or excluded.

Client shall indemnify Nyhart from and against any and all claim, loss, liability or damage (including attorney's fees) which Nyhart may Incur by reason of its good faith service delivery to Client.

Page 3 of 4

Nyhart shall indemnify the Client from and against any and all claim, loss, liability or damage (Including attorney's fees) which the Client may Incur: (i) arising out of any material breach by Nyhart of any of its material obligations, representations or warranties contained In this Agreement; or (ii) arising out of Nyhart's negligence, gross negligence or willful, fraudulent, or criminal misconduct associated with its performance of services under this Agreement. The parties further recognize that clerical errors and variations may occur. When discovered, they will be corrected or adjusted by Nyhart, in accordance with its normal procedures, to the extent reasonable and possible.

Acceptance

The items and conditions of this Agreement are agreed to and accepted by Client on behalf of the Plan. This Agreement is effective only when signed by all parties.

City of Dearborn Heights

By:

Printed Name:

Date:

Nyhart

By:

Printed Name:

Date:

Page 4 of4

APPROVED FOR AGENDA OF

9-C..

Community and Economic Development Department

Joe A. Hachem Director

August 14,2017

TO: Mayor and City Council Members

Daniel S. Paletko Mayor

RE: CDBG FY 2015 Berwyn Improvements CEDD Carpet Project Invoice

Dear Mayor and City Council Members:

I hereby recommend that the City Council approve the payment of the attached Invoice #6658 from Green Builders Plus in the amount of $14,893.15 for the FY 2015 CDBG Berwyn Improvements CEDD Carpet Installation Project.

In addition, please authorize the Comptroller and Treasurer to issue the check and return the check to the CEDD office.

If you have any questions, please contact me.

Community and Economic Development Department

The City of Dearborn Heights • Community and Economic Development Department • 26155 Richardson • Dearborn Heights, Ml48127 (313) 791-3500 • Fax (313) 791-3501 • Emall jhachem@ci.derubom-heights.mi.us

GREEN BUILDERS PLUS DESIGNERS,BUILDERS,DEVELOPERS,COMMITMENT TO QUALITY

24517 FORD RD. DEARBORN, MI. 48128 OFFICE 313-359-5900 FAX 313-359-0600 CELL 313-215-5005

Bill To: CITY OF DEARBORN HEIGHTS

Comments or Special Instructions:

BERWYN CENTER IMPROVEMENTS CEDD CARPET INSTALLATION PROJECT

QUANTITY

Address City, State ZIP Phone

1 REMOVAL OF CARPET AND TILES INSTALL

NEW CARPET PER SPEC, MOVE AND RETURN

ALL FURNITURE AS REQUIRED, ALL CLEAN UP AND REMOVAL OF ASBESTOS TILE PER CODE

1 CITY HAS CASHIER CHECK FOR BOND MONEY

Thank You for your prompt payments

MAKE CHECKS PAYABLE TO GREEN BUILDERS PLUS

Please visit our web site@ www.greenbuildersplus.com

Please E-mail us gbpcorp@gmaif.com

THANK YOU FOR YOUR BUSINESS

DATE: 8/12/2017 INVOICE # 6658

26155 RICHARDSON DEARBORN HEIGHTS, MI. 48127

UNIT PRICE

14,893.15

750.00

SUBTOTAL $ 14,893.15

TAX RATE

SALES TAX $0.00

PAID

TOTAL $ 14,893.15

9-\)

Daniel 5. Paletko Mayor

Brownfield Redevelopment Authority

APPROVED FOR

.goNC\l!t <6~::~:~ ~~!~

August 4, 2017

Mayor Dan Paletko and City Council Members

Dear Mayor and City Council,

Attached is a copy of the 2017-2018 Proposed Brownfield Budget adopted by the Brownfield Board.

I am recommending that the City Council approve the proposed Budget:

BRA Reimbursement:

Revolving Account:

Administration:

TOTAL REVENUE:

$ 16,559.75 (Telegraph Walgreens) $ 7,693.99 (Tim Horton's)

Total: $ 24,253.74

$ 31,690.55 (Ford Walgreens)

Total: $ 31,690.55

$ 4,829.00 (Telegraph Walgreens) $ 1,640.00 (Tim Hortons)

Total: $ 6,469.00

$62,413.29

If you have any questions regarding this matter, please do not hesitate to contact me or Tom Rosco.

City of Dearborn Heights • 25637 Michigan Ave., Dearborn Heights, MI 48125 • (3 13) 791-9805 • Fax (3 13) 791 -9803

rll R~cyclcd Paper

August 2, 2017

Brownfield Redevelopment Authority

Honorable City Council City of Dearborn Heights

Dear Council Members:

Daniel S. Paletko Mayor

At the Annual Meeting of the Brownfield Redevelopment Authority held on July 19, 2017, the following motion was passed:

17-7 Motion made by Emery, supported by Gnatek, to approve the proposed Brownfield Budget for 2017-2018 per letter of July 11, 2017, from Carmine Oliverio and to forward to City Council for approval.

YES: Emery, Fetzer, Gnatek, Kellett, Korte, Willis, Zachary.

ABSENT: Hull, Tripepi. Motion adopted.

I hereby certify that the above is a true and correct copy of the motion adopted by the Brownfield Redevelopment Authority.

Very truly yours,

d:::.n~ Chairman

JK/cmh

cc: Mayor Dan Paletko Treasurer John Riley ComptrolJer John Laub Carmine Oliverio

City of Dearbo rn Heights • 25637 Michigan Ave., Dearborn Heights, MI 481 25 • (3 13) 79 1-9805 • Fax (313) 791 -9803

fl.~ R~cycled Paper

7f Daniel S. Paletko Mayor

Brownfield Redevelopment Authority

Mr. John Kellett, Chairman Brownfield Board Members

Dear Mr. Kellett and Brownfield Board Members,

July 11, 2017

I am recommending that the following Brownfield 2017-2018 Proposed Budget be adopted:

Reimbursement Account:

Revolving Fund:

Administrative Account:

$ 16,559.75 (Telegraph Walgreens) $ 7,693.99 (Tim Hortons)

Total: $ 24,253.74

$ 31,690.55 (Ford Walgreens)

Total: $31,690.55

$ 4,829.00 (Telegraph Walgreens) $ 1,640.00 (Tim Hortons)

Total: $ 6,469.00

TOTAL REVENUE: $62,413.29

If you have any questions regarding this matter, please do not hesitate to contact me.

Sincerely yours,

@?C.~~l Brownfield Administrator

City of Dearborn Heights • 25637 Michigan Ave., Dearborn Heights, MI 48125 • (313) 79 1-9805 • Fax (3 13) 791-9803

e.~ R~cycled Paper

r~-A

City of Dearborn Heights Police Department Request for Traffic Control Devices

Received by:

Office of the

Temporary

Removal

Permanent

CHIEF OF POLICE Lee Gavin

No:

No:

No: T-265

APPROVED FOR AGENDA OF

i-22.-11

AGENDA~ QJ)·

COUNCIL ACTION

Date: July 31, 2017 Resolution#: _______ Date: ______ _

Approved L..I.:....:.....:....:.......J Denied .___""""I

Petitioner: Dearborn Heights Police Department

Type of Device: No Parking Signs

Location of Posting: Southbound Kinloch from Ford Rd to Doxtator- No Parking signs.

Reason: Due to the Mosque at Ford Rd/ Kinloch over flow of Vehicles being parked on Kinloch is creating a Fire/Rescue Hazard. Request that No parking signs be placed on the S/B side of Kinloch from Ford to Doxtater. Also that a No Parking sign from here to corner be placed accordingly at N/B Kinloch/ Ford Rd. Remove old sign No parking here to corner at SIB Kinloch and Doxtater to be replaced with No Parking.( See attached map of area)

STAFF RECOMMENDATION

All s1gns and posting must conform to MMUTC"s 1994 Edition as amended

Map Area Code No.: 23

Department of Public Works report verifying installation of devices.

Date: ---------

Signed: -------- -------------

D/Capt. Michael Petri Administrative Services Division

Officer in Charge

Dearborn Heights Police endorsement of above recommendation.

Received by:

Date: ~_,L..~~:::A:~q!.£1~~-J...ltL/

Case Number: I Date:

Location:

Description:

FORD RD .......,

1 r y NO PARKING HERE TO CORNER (NEW SIGN) ~

NEW NO PARKING SIGNS~ ACCORDING TO SET AT 100FT A

APART

~? ~

INl

REMOVE OLD NO PARKING HERE TO CORNER KINLOCH ST --------= ~

DOXTATOR

~'

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