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Agenda

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									     Agenda
     Special Meeting of the City Commission
     City of Kalamazoo

             Monday, December 17, 2007     6:00 p.m.
City Hall – Community Room, Second Floor - 241 West South Street



        1.   Call to Order/Roll Call

        2.   Communications

        3.   Neighborhood Presentations:

             -      Downtown Citizens Council
                    Jon Reeves, Chairperson
                    Kevin Brown, Secretary

                    Parkwyn Village Association
                    Patricia Williams, Board Member

             -      Vine Neighborhood Association
                    Stephen Walsh, Executive Director

        4.   Citizen Comments

        5.   Miscellaneous Comments and Concerns by Commissioners

        6.   Adjournment
            Agenda
            Regular Meeting of the City Commission
           City of Kalamazoo


                Monday, December 17, 2007 7:00 p.m.
          City Commission Chambers – 241 West South Street


A.   CALL TO ORDER/ROLL CALL

B.   OPENING CEREMONY

     1.    Invocation: Pastor Ervin Armstrong, Associate Pastor, Christian Life Center
     2.    Pledge of Allegiance
     3.    Introduction of Guests
           a.     City Manager 2007 “All Star” Winners
     4.    Proclamations
           a.     Kalamazoo Jaycees 75th Anniversary, 2007

C.   ADOPTION OF FORMAL AGENDA

D.   COMMUNICATIONS

     1.    The public is invited to attend the following meetings of boards and
           commissions:

           a.    The Environmental Concerns Committee will meet on Wednesday,
                 December 19, 2007 at 4:30 p.m., in the Community Room at City Hall.

           b.    The Brownfield Redevelopment Authority will meet on Thursday,
                 December 20, 2007 at 7:30 a.m., in the Community Room at City Hall.

           c.    The Transit Authority Board will meet on Friday, December 21, 2007 at
                 8:15 a.m., in the Metro Transit Conference Room, located at 530 North
                 Rose Street

     2.    The City Commission will meet in special session on Thursday, December
           20, 2007 at 6:00 p.m. to review the FY 2008 Budget. The meeting will be
           held in the City Hall Community Room.

     3.    Citizens are advised that the Treasurer’s Office will be closed on
           December 24, 2007. The Treasurer’s Office will be open regular business
           hours of 8:00 a.m. through 4:30 p.m., and fully staffed, on December 31,
           2007. Please be aware that December 31st is a very busy winter tax
           payment day and taxpayers can expect long lines all day. It is advisable
           to pay by mail, or come in on an earlier day, if you wish to have your
           property tax paid by year-end.
City Commission Agenda                     Page 2 of 7                          December 17, 2007


           4.    City Hall will be closed on Tuesday, December 25, 2007 and Tuesday,
                 January 1, 2008 in observance of the holidays. Offices will re-open on the
                 subsequent Wednesdays, December 26th and January 2nd.

           5.    The City Election Commission will meet on Thursday, January 3, 2008 at
                 9:00 a.m. in the reading room of the City’s Records Center located at 3003
                 South Burdick Street. During the meeting the Commission will conduct a
                 public accuracy test of the tabulators and program to be used for the
                 January 15th Presidential Primary election.

           6.    The City Commission will meet in regular session on January 7, 2008 at
                 7:00 p.m. in the City Commission Chambers.

           7.    The City is accepting applications for appointment to various city
                 Commission advisory boards and commissions. Interested citizens are
                 encouraged to contact the City Clerk’s Office at 337-8792 to request an
                 application form or to obtain additional information on board vacancies.

     E.    PUBLIC HEARINGS

           1.    Receive public comments regarding a recommendation to adopt a
                 RESOLUTION requesting that the State Tax Commission revoke
                 Industrial Facilities Tax Exemption Certificate No. 2000-364 granted to
                 Discount Laser Supply, Inc. (Action: Motion to adopt the resolution)

     F.    CITIZEN COMMENTS REGARDING NON-AGENDA ITEMS

     G.    CONSENT AGENDA
           (Action: Motion to approve items “1-20”)

           1.    Consideration of a recommendation to approve a one year contract
                 extension with Knapp Energy, Inc. for gasoline and diesel fuel in the
                 amount of $845,600.

           2.    Consideration of a recommendation to approve a one-year contract
                 renewal for Metro Transit fleet liability insurance with the Michigan Transit
                 Pool at an annual deposit premium of $266,764 payable in four equal
                 installments to Macatawa Bank, the MTP financial representative.

           3.    Consideration of a recommendation to approve a two-year contract with
                 Consumer Concrete Corporation for miscellaneous aggregates and road
                 gravel in the amount of $178,260.76.

           4.    Consideration of a recommendation to adopt a RESOLUTION regarding
                 dedication of a new right-of-way through the northwest corner of the
                 Kendall Wellfield for the easterly portion of the Arboretum Roadway
                 subject to certain restrictions.
City Commission Agenda                     Page 3 of 7                          December 17, 2007


           5.    Consideration of a recommendation to adopt a RESOLUTION setting a
                 public hearing to consider the proposed fiscal year 2008 budget for the
                 City of Kalamazoo on Monday, January 14, 2008.

           6.    Consideration of a recommendation to adopt a RESOLUTION for the
                 purpose of authorizing the transfer of $5,000 to the Legal Defense Fund of
                 the Michigan Municipal League in support of filing an intervention in
                 Michigan Public Services Commission Case No. U-15245.

           7.    Consideration of a recommendation to adopt a RESOLUTION to vacate
                 the south 763.70 feet of Lafayette Avenue, plus a right-of-way located
                 south of Lafayette Avenue, with the following conditions: a) An easement
                 will be provided to the city for the underground utilities in the property to
                 be vacated; b) An easement will be provided to the city for future storm
                 water facilities; c) An easement will be provided to the city for access to
                 the east side of the Knollwood Park; and d) The existing trees on the east
                 side of the Knollwood Park will remain.

           8.    Consideration of a recommendation to adopt a RESOLUTION designating
                 the polling facility locations for the election to be held January 15, 2008,
                 for the purpose of voting for Presidential Primary Candidates and to
                 consider a millage request from Comstock Public Schools (portions of
                 Precincts 10 & 17).

           9.    Consideration of a recommendation to adopt a performance and
                 indemnification RESOLUTION designating the City Clerk and Deputy City
                 Clerk as City officials authorized to apply to the Michigan Department of
                 Transportation for a permit to place banners on the South Westnedge
                 pedestrian overpass during the period from January 1, 2008 to December
                 31, 2008.

           10.   Consideration of a recommendation to adopt a RESOLUTION approving
                 and establishing the schedule of regular City Commission meetings for the
                 2008 calendar year.

           11.   Consideration of a recommendation to adopt a RESOLUTION recognizing
                 the Volunteer Services of Greater Kalamazoo as a non-profit organization
                 operating in the community for the purpose of obtaining a charitable
                 gaming license.

           12.   Consideration of a recommendation to adopt a RESOLUTION recognizing
                 Great Lakes Acoustic Music Association as a non-profit organization
                 operating in the community for the purpose of obtaining a charitable
                 gaming license.

           13.   Consideration of a recommendation to authorize the City Manager to
                 execute Second Amendments as they relate to existing water tower lease
                 agreements with Verizon Wireless for Mt. Olivet, N. Dartmouth, and
                 Edgemoor.
City Commission Agenda                     Page 4 of 7                        December 17, 2007


           14.   Consideration of a recommendation to approve a five-year extension of a
                 lease with Off-Site Kalamazoo, LLC in the annual amount of $36,900
                 ($184,500 over five years) to house the City’s Records Center and
                 Archives.

           15.   Consideration of a recommendation to approve the assignment of
                 Commissioners to various boards, commissions, committees and sub-
                 committees.

           16.   Consideration of a recommendation to approve amendments to the
                 FY2007 budget in the General Fund and the Capital Improvement Fund.

           17.   Consideration of a recommendation to approve a request from the New
                 Year’s Fest of Kalamazoo, to publicly display fireworks at the Radisson
                 Parking Structure on Monday, December 31, 2007 at midnight as a part of
                 the annual New Year’s festivities.

           18.   Consideration of a recommendation to authorize settlement, by payment
                 of $15,000, of a personal injury claim brought by Jeremy Hazelhoff
                 (attorney client confidential communication).

           19.   Consideration of a recommendation to approve the following appointments
                 and re-appointments to advisory boards and commissions:

                 a.      the appointment of James Allan Nicolow to the Environmental
                         Concerns Committee for a partial term expiring on January 1, 2009.

                 b.      the appointment of Keely Anne Novotny to the Environmental
                         Concerns Committee for a three-year term expiring on January 1,
                         2011.

                 c.      the re-appointment of Fred Decker to the Historic District
                         Commission for a term expiring on January 1, 2011.

                 d.      the re-appointment of Nelson Nave to the Historic District
                         Commission for a term expiring on January 1, 2011.

                 e.      the re-appointment of Gary Wager to the Parks and Recreation
                         Advisory Board for a term expiring on January 1, 2011.

           20.   Consideration of a recommendation to approve minutes from the following
                 City Commission meetings: the November 30, 2007 Committee of the
                 Whole meeting and the December 3, 2007 Regular Meeting.
City Commission Agenda                       Page 5 of 7                           December 17, 2007


     H.     REGULAR AGENDA

            1.     Consideration of a recommendation to adopt a PENSION ORDINANCE
                   (Sections 2-223 – 2-264) by first repealing it, then adopting a different
                   version (with the same numbered sections). The resulting changes will not
                   affect the amount of money paid into the system by the City or its
                   employees, nor the amount of money received by beneficiaries, including
                   retirees, but will ensure that the plan is “qualified” for taxation purposes.
                   (Action: Motion to adopt the ordinance)

     I.     REPORTS AND LEGISLATION

            1.     City Clerk’s Report
            2.     City Manager’s Report

     J.     UNFINISHED BUSINESS

     K.     POLICY ITEMS

            1.     Consideration of a recommendation to adopt amended City Commission
                   Rules, the only amendments being those that relate to citizen comments.
                   (Action: Motion to adopt)

     L.     NEW BUSINESS

     M.     CITIZEN COMMENTS

     N.     MISCELLANEOUS COMMENTS AND CONCERNS BY COMMISSIONERS

     O.     CLOSED SESSION

     P.     ADJOURNMENT



                                    ADDITIONAL INFORMATION:

     Questions regarding agenda items may be answered prior to the meeting by contacting the City
     Manager's Office at 269.337.8047.

     Persons with disabilities who need accommodations to effectively participate in City
     Commission meetings should contact the City Clerk's Office at 337-8792 a week in advance to
     request mobility, visual, hearing or other assistance.

     Agendas for the regular meetings of the Kalamazoo City Commission are available on the
     Internet at: www.kalamazoocity.org
     Kalamazoo City Commission meetings are held the first, third and fifth Mondays at 7:00 p.m.
     and are shown live on Cable Access channel 21. The meetings are rebroadcast on Tuesday
     afternoon at 1:00 p.m. on Channel 21 and Wednesday evenings at 7:30 p.m. on Channel 20.
City Commission Agenda                          Page 6 of 7                             December 17, 2007


           GUIDELINES FOR PUBLIC PARTICIPATION AT CITY COMMISSION MEETINGS

     Welcome to the Kalamazoo City Commission meeting, and thank you for your participation in
     Kalamazoo local government. The City Commission recognizes that citizens who make the
     effort to attend a Commission meeting often feel passionately about an issue. The following
     guidelines are not meant to discourage individual expression; rather, they exist to facilitate the
     orderly conduct of business and to ensure that all citizens who wish to address the City
     Commission are able to do so in an atmosphere of civility and respect, without fear or
     intimidation.

     1.     Out of respect for business being conducted during the meeting, please turn off all cell
            phones and pagers prior to the start of the meeting.

     2.     In an effort to maintain order and to allow a respectful discussion, please do not make
            comments from the audience area. Audience members should also refrain from
            applause or other audible noise at times not formally recognized as appropriate by the
            meeting chair.

     3.     Citizens have opportunities to address the Commission at the following times during a
            meeting:

            a.      Citizen Comments on Non-Agenda Items.

            b.      Consideration of Regular Agenda items. Citizens are permitted to speak to the
                    Commission on Regular Agenda and Unfinished Business prior to the City
                    Commission voting, except those votes setting a public hearing. (Note: The
                    Consent Agenda is a list of items proposed for City Commission approval to be
                    voted upon all at one time. This is a time-saving procedure as most Consent
                    Agenda items are housekeeping measures. A citizen may request an item be
                    removed from the Consent Agenda for individual consideration or discussion.)
                    Comments must be germane to the specific item under consideration.

            c.      The final Citizen Comment period near the end of the meeting is for comment on
                    Agenda or Non-Agenda items.

     4.     To address the City Commission, please sign in at the podium near the Clerk’s station
            and then proceed to the podium directly in front of the dais when invited by the meeting
            chair. Before beginning your comments, please clearly state your name for the record
            and whether you reside within the city limits. Comments are limited to four minutes.

     5.     Citizen comment periods are a time for citizens to make comments; they are not
            intended as a forum for debate or to engage in question-answer dialogues with the
            Commission or staff. Commissioners are encouraged not to directly respond to
            speakers during citizen comment periods. At the conclusion of a speaker’s remarks, the
            Mayor or individual Commissioners may refer a question to City staff, if appropriate.
            Also, individual Commissioners may choose to respond to speakers during
            “Miscellaneous Comments and Concerns of Commissioners.”
City Commission Agenda                          Page 7 of 7                             December 17, 2007


     6.     Signs, placards and banners are permitted in Chambers during open meetings but only
            along the perimeter of the room (side and back walls) and only if they do not obstruct the
            vision of others."

                                             *********************
     If you have any questions, please feel free to contact the City Clerk’s Office at 269.337.8792
            Commission                                                                                     Date:   12/17/07
                                                                                                                     Item E1
            Agenda Report
            C i t y of K a l a m a z o o



TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Randall S. Schau, Acting City Attorney
              Prepared By: Cynthia A. Comer, PP, Paralegal

DATE:         December 4, 2007

SUBJECT:      Resolution Requesting that the State Tax Commission Revoke Industrial
              Facilities Tax Exemption Certificate No. 2000-364 –Discount Laser Supply,
              Inc.


RECOMMENDATION

It is recommended that the City Commission adopt a resolution requesting that the State
Tax Commission revoke Industrial Facilities Tax Exemption Certificate No. 2000-364
granted to Discount Laser Supply, Inc.

BACKGROUND

On August 7, 2000, the City Commission approved the application of Discount Laser
Supply, Inc. for a 12-year industrial facilities tax exemption certificate for a new facility
located at 3310 Redmond Avenue. The City has become aware of the fact that Discount
Laser Supply, Inc. has ceased its operations and the property located at 3310 Redmond
Avenue is no longer being used for tax-exempt purposes. As a result, and in accordance
with the provisions of its Industrial Facilities Tax Exemption Agreement, Discount Laser
Supply, Inc.’s industrial facilities tax exemption certificate should be revoked.

Pursuant to Section 15 of Public Act 198 of 1974, as amended, the legislative body of the
local governmental unit may, by resolution, request that the State Tax Commission revoke
the industrial facilities tax exemption certificate upon certain grounds, one of those being
that the certificate holder has not continued with the operation of the facility in a manner
consistent with the purposes of the act. In addition, the requested revocation of the
certificate is in accord with the City’s tax abatement policy, which provides that a tax
exemption may be revoked if a certificate holder fails to meet the terms of its agreement or
abandons its facilities. In this case, Discount Laser Supply, Inc. ceased its operations,
abandoned its facilities, and has not repaid the City all reduced taxes, interest, penalties,
and administrative fees applicable to the tax exemption as provided by the Industrial
Facilities Tax Exemption Agreement. Mr. Ralph Gooch, III, President of Discount Laser
Supply, Inc., has been advised that City of Kalamazoo is asking that the certificate be
revoked by the State Tax Commission.

            Kalamazoo City Attorney's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8185
                                                 Fax: (269) 337-8922
Commission Agenda Report – State Tax Commission Revoke IFT Certificate
Page 2


COMMUNITY RESOURCES CONSULTED

No community resources were consulted. A public hearing has been scheduled for
December 17, 2007, on the request that the State Tax Commission revoke Industrial
Facilities Tax Exemption Certificate No. 2000-364.

FISCAL IMPACT

In most situations like this, the revocation of the certificate is the first step for the City to
take in order to pursue its remedy to recover the abated taxes due and owing under the
terms of the Industrial Facilities Tax Exemption Agreement. Since an IFT exemption is
approximately 1/2 the millage, the City will recoup $1, 038 for 2007 for general operating
and all other tax authorities will recoup approximately $2,874 for 2007. Upon revocation of
the certificate by the State Tax Commission, any real property located at 3310 Redmond
Avenue would revert to the ad valorem tax roll.


ALTERNATIVES

The City Commission may or may not request the State Tax Commission to revoke
Industrial Facilities Tax Exemption Certificate No. 2000-364 as provided by state law.
However, the requested revocation of the certificate is in accord with the City’s tax
abatement policy, since Discount Laser Supply, Inc. has failed to meet the terms of its
agreement with the city by ceasing its operations at 3310 Redmond Avenue.

ATTACHMENTS

Resolution




             Kalamazoo City Attorney's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 269.337.8185
                                                  Fax: 269.337-8922
DISCOUNT LASER SUPPLY, INC.
Industrial Development District #102



                           CITY OF KALAMAZOO, MICHIGAN

                            RESOLUTION NO. ___________

  A RESOLUTION REQUESTING THAT THE STATE TAX COMMISSION REVOKE
          INDUSTRIAL FACILITIES TAX EXEMPTION CERTIFICATE
        NO. 2000-364 GRANTED TO DISCOUNT LASER SUPPLY, INC.


      Minutes of a regular meeting of the City Commission of the City held on December
17, 2007, at or after 7:00 o'clock p.m., local time, at City Hall.

       PRESENT, Commissioners:


       ABSENT, Commissioners:

         WHEREAS, pursuant to PA 1974, 198, as amended, the City Commission, in
accordance with law, approved the application of DISCOUNT LASER SUPPLY, INC. on
August 7, 2000, for an industrial facilities tax exemption certificate (No. 2000-364) for its
facility in Kalamazoo Industrial Development District No. 102; and

       WHEREAS, the Assessor for the City of Kalamazoo has requested that a hearing be
scheduled by the City Commission to adopt a resolution asking the State Tax Commission
to revoke the industrial facilities tax exemption certificate because the corporation ceased
operations as of the end of the year 2006 at 3310 Redmond Avenue, and the property is no
longer being used for tax-exempt industrial purposes;

       WHEREAS, pursuant to proper notice sent to DISCOUNT LASER SUPPLY, INC.,
the City Commission held a hearing on December 17, 2007, to consider a request to the
State Tax Commission to revoke Industrial Facilities Tax Exemption Certificate No. 2000-
364, and DISCOUNT LASER SUPPLY, INC. having had an opportunity to appear at the
hearing to present witnesses or evidence on its behalf or to cross-examine witnesses;

       NOW, THEREFORE, BE IT RESOLVED that this City Commission hereby requests
that the State Tax Commission revoke Industrial Facilities Tax Exemption Certificate No.
2000-364 issued to DISCOUNT LASER SUPPLY, INC. for the reason that the property at
3310 Redmond Avenue is no longer being used for tax-exempt, industrial purposes.

The above resolution was offered by                                                      and
supported by                                                    .
DISCOUNT LASER SUPPLY, INC.
Industrial Development District #102




AYES, Commissioners:


NAYS, Commissioners:

ABSTAIN, Commissioners:

RESOLUTION DECLARED ADOPTED.


                                    CERTIFICATE

The foregoing is a true and complete copy of a resolution adopted by the City Commission
of the City of Kalamazoo at a regular meeting held on December 17, 2007. Public notice
was given and the meeting was conducted in full compliance with the Michigan Open
Meetings Act (PA 267, 1976). Minutes of the meeting will be available as required by the
Act.


                                               ______________________________
                                               Scott A. Borling, City Clerk




                                           2
           Commission                                                                                       Date:   12/17/07
                                                                                                                      Item G1
           Agenda Report
           City of Kalamazoo


TO:          Mayor Hopewell, Vice Mayor McKinney and City Commissioners

FROM:        Kenneth P. Collard, ICMA-CM, P.E., City Manager
             Reviewed By: Thomas Skrobola, Management Services Director and CFO
             Prepared By: Nicholas Lam, Purchasing Director

DATE:        November 9, 2007

SUBJECT:     Term Contract for Gasoline and Diesel Fuel


RECOMMENDATION

It is recommended that the City Commission approve a one-year term contract extension for gasoline
and diesel fuel with Knapp Energy, Inc. for an amount not to exceed $845,600.00. The recommended
contract extension would expire December 31, 2008.

BACKGROUND

The City of Kalamazoo took sealed bids cooperatively with Kalamazoo County for the 2007
requirements of gasoline and diesel fuel. This contract may be extended, and the contractor was
contacted, requesting a contract extension proposal. Knapp Energy Inc. is proposing to extend the
contract and hold the same markup and additive prices for calendar year 2008.

Since the petroleum market is continually changing, the contract was structured to obtain a firm and
competitive price which stays current with the market by bidding the margin charged by the supplier.
The margin includes the supplier’s cost and profit to deliver the fuel to the City’s storage site.
The margin is added to the regional refinery’s rack price, which fluctuates with the marketplace.
The refinery provides a verification of the rack price with each shipment of fuel.

The City purchases fuel in bulk quantities ranging from 250 gallons to 6,000 gallons and dispenses
them to City vehicles and equipment from five storage points. A contract extension with Knapp
Energy, Inc. is recommended for approval.


FISCAL IMPACT

Fuel will be purchased on an as-needed basis. As it is dispensed, it is charged to the individual
department’s fuel expense budget accounts. The proposed contract amount is estimated based
upon the current prices and historic usage.



                 Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι269.337.8047
                                                     Fax: 269.337.8182
CITY COMMISSION AGENDA REPORT – Term Contract for Gasoline & Diesel Fuel - 2008
Page 2


ALTERNATIVES

City staff could purchase gasoline and diesel fuel at commercial stations. This alternative is not
recommended because the City would lose quantity discounts and would have to apply for sales
and fuel tax refunds.

ATTACHMENTS

None




                 Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι269.337.8047
                                                     Fax: 269.337.8182
                                                                                                        Date: 12/17/07
            Commission
                                                                                                              Item G2
            Agenda Report
            City of Kalamazoo


TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Kenneth P. Collard, ICMA-CM, P.E., City Manager
              Reviewed By: Nicholas Lam, Purchasing Director
              Prepared By: David Hess, Risk Manager

DATE:         November 21, 2007

SUBJECT:      Michigan Transit Pool Renewal

RECOMMENDATION

It is recommended that the City Commission approve a one-year contract renewal for
Metro Transit fleet liability insurance with the Michigan Transit Pool (MTP) at an annual
deposit premium of $266,764 payable in four equal installments to Macatawa Bank, the
MTP financial representative. The policy period is December 1, 2007 to December 1,
2008.

BACKGROUND

The City of Kalamazoo has participated in the Transit Pool since December 1986 to
provide affordable fleet liability and no-fault insurance for Metro transit buses. This
intergovernmental pool covers most of the public transit systems in Michigan. Transit
Director Schomisch and Risk Manager Hess were involved in the formation of the pool
and Hess continues to serve on its seven-member executive board.

This year’s deposit premium is slightly higher than last year’s $263,996. This premium
includes $5 million liability insurance with a $75,000 self-insured retention for the Metro
Transit buses and $5 million excess liability coverage over the Pride Care insurance on
Care-A-Van and Metro Van buses.


FISCAL IMPACT

Funds for this premium are included in the 2007 Metro Transit budget and the 2008
budget submission.

ALTERNATIVES

There are no commercial insurance companies currently writing line-haul transit
insurance in the state of Michigan and the MTP is a “sole source” provider for this
coverage.

            Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 269.337.8047
                                                Fax: 269.337.8182
              Commission                                                                                 Date:   12/17/07
                                                                                                                   Item G3
              Agenda Report
              C I t y of K a l a m a z o o


TO:             Mayor Hopewell, Vice Mayor McKinney and City Commissioners

FROM:           Kenneth P. Collard, City Manager, ICMA-CM, P.E.
                Reviewed By: Bob Wass, Public Services Deputy Director
                Prepared By: John Seelman, Field Services Manager

DATE:           November 5, 2007

SUBJECT:        Contract for Miscellaneous Aggregates

RECOMMENDATION

It is recommended that the City Commission approve a 2-year contract for miscellaneous
aggregates and road gravel with Consumer Concrete Corporation of Kalamazoo, Michigan for
$178,260.76.

BACKGROUND

Miscellaneous aggregates are used in various construction and maintenance activities performed
during the year. These activities consist of water main service repair and street construction work
where aggregates are needed to complete the work in a timely manner. It is customary to have an
annual contract whereby these materials are placed into inventory and on occasion shipped direct
to job sites during the year.

Formal bids were solicited by the Purchasing Department with three bidders responding.
Consumers Concrete is the low responsive bidder meeting requirements of our specifications.

COMMUNITY RESOURCES CONSULTED

No community resources were consulted for this purchase.

FISCAL IMPACT

Funds for these inventory supplies were budgeted in the 2008 Department of Public Services
Budget to reimburse the inventory account for items used.

ALTERNATIVES

There are no alternatives to the material. Failure to provide and replenish inventory levels would
mean new installations and repairs could not be provided in timely manner.

ATTACHMENTS

Bid Results



        Kalamazoo City Manager's Office   241 W. South Street     Kalamazoo, MI 49007   (269) 337-8047
                                              Fax: (269) 337-8182
             Commission                                                                                  Date:   12/17/07
                                                                                                                   Item G4
             Agenda Report
             C i t y of K a l a m a z o o


TO:            Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:          Kenneth P. Collard, City Manager, ICMA-CM, P.E.
               Reviewed By: Bruce Merchant, Public Services Director
               Prepared By: Frank Szopo, PE, City Engineer

DATE:          November 21, 2007

SUBJECT:       Arboretum Road through Kendall Wellfield


RECOMMENDATION

It is recommended that City Commission adopt a resolution regarding dedication of a new
right-of-way through the northwest corner of the Kendall Wellfield for the easterly portion of
the Arboretum Roadway subject to certain restrictions. This new right-of-way will lessen
the impact of the roadway on the Wellfield.

BACKGROUND

On April 2, 2007, the City Commission approved the release of $2,000,000 to the
Kalamazoo Public Schools for public infrastructure to support the proposed new middle
school in the Arcadia Neighborhood. The Commission was also given information on the
Traffic Study that was performed to determine the type of roadway that should built to
support the middle school and future development of land in the area owned by the
Western Michigan University (WMU) Foundation. The report recommended a curvilinear
through roadway extending from Drake Road easterly to Kendall Avenue.

The WMU Foundation subsequently hired a consultant, Hurley & Stewart Engineers of
Kalamazoo, to design the new roadway. The consultant has worked closely with the City of
Kalamazoo Engineering staff to do final roadway layout. During this work, it was
determined that having the new roadway connect to Solon Street rather than Kendall
Avenue would improve roadway design and lessen the impact on the Kendall Wellfield. The
roadway would need to cross only the northwest corner of the Kendall Wellfield as shown in
the attached sketch.

The roadway would also cross land owned by the Consumers Energy Company near Solon
Street. Therefore, the granting of the new right-of-way is contingent upon receiving
approval from the Consumers Energy Company to cross their land. Application for a
roadway easement has been made to Consumers Energy Company.



        Kalamazoo City Manager's Office   241 W. South Street     Kalamazoo, MI 49007   (269) 337-8047
                                              Fax: (269) 337-8182
Commission Agenda Report – Arboretum Road through Kendall Wellfield
Page 2


 This new right-of-way has no negative impact to the Wellfield because the roadway would
lie within the 200 foot property line isolation zone in which drilling of water production wells
is restricted. No sanitary or storm sewers will be built in the roadway in the newly dedicated
right-of-way. Department staff recently met with the Supervising Engineer from the
Michigan Department of Environmental Quality (MDEQ) and showed the proposed location
of the Arboretum Roadway crossing the northwest corner of the Wellfield as well as the
proposed nearby stormwater lines and stormwater detention basins. The MDEQ has no
objections to the proposed roadway crossing the wellfield and will be approving the
Arboretum roadway location and nearby stormwater lines and stormwater basins as
proposed.

With the Arboretum Roadway connecting to Solon Street, Solon St. north of the
Solon/Kendall/Howard intersection will change to two way. This has been approved by the
Traffic Engineer for the Kalamazoo County Road Commission and the Kalamazoo
Township Board of Trustees. The Kalamazoo Board of Trustees has also requested a
traffic study be completed to investigate changing Kendall Ave. to two-way north of the
Solon/Kendall/Howard intersection.

The existing right-of-way across the southern portion of the Wellfield may be reduced or
released at a later date depending on the types of linkages, if any, that are made
between Kendall Avenue and the new Arboretum Roadway. These linkages could
include a non-motorized pathway, pedestrian walkway, or a roadway.

COMMUNITY RESOURCES CONSULTED

The Arcadia Neighborhood Board has been notified of the proposed routing of the
Arboretum Roadway across the north west corner of the Kendall Wellfield. Representatives
from the neighborhood were part of the project team that worked on the initial Arboretum
Roadway Traffic Study. The Kalamazoo County Road Commission and Kalamazoo
Township Board of Trustees have been consulted regarding roadway and traffic issues.

FISCAL IMPACT

There is no fiscal impact to the City for this dedication.

ALTERNATIVES

The City Commission may elect not to dedicate the new R.O.W. which would require the
new roadway to traverse the southern portion of the Wellfield in a previously approved
dedicated right-of-way. However, this southern routing would require a considerable
reduction in the size of the wellfield’s recharge pond and stormwater retention basin.




        Kalamazoo City Manager's Office   241 W. South Street     Kalamazoo, MI 49007   (269) 337-8047
                                              Fax: (269) 337-8182
Commission Agenda Report – Arboretum Road through Kendall Wellfield
Page 3


ATTACHMENTS

Resolution
Exhibit A – Right-of-Way Sketch
Exhibit B – Right-of-Way Legal Description




       Kalamazoo City Manager's Office   241 W. South Street     Kalamazoo, MI 49007   (269) 337-8047
                                             Fax: (269) 337-8182
                           CITY OF KALAMAZOO, MICHIGAN

                       RESOLUTION NO. ___________________

A RESOLUTION DEDICATING A PORTION OF THE KENDALL AVENUE WELL FIELD
AS A PUBLIC RIGHT-OF-WAY FOR USE AS A PUBLIC STREET

     Minutes of a regular meeting of the City Commission of the City held on
_____________________________, 2007, at     o'clock p.m., local time, at the City Hall.

PRESENT, Commissioners:


ABSENT, Commissioners:


       WHEREAS, this City Commission finds that the property described on Exhibit A and

Exhibit B, attached hereto, is located within the Kendall Avenue Well Field and within the

corporate limits of the City of Kalamazoo; and

       WHEREAS, the City has received a request that said property be dedicated as a

public right-of-way for future use as a public street to be constructed in accordance with the

standards and requirements of the City, and

       WHEREAS, the City has determined that the use of said property as a public street

will not adversely affect the Kendall Avenue Well Field,

       BE IT RESOLVED, the City Commission finds that the property described on Exhibit

A and Exhibit B, attached hereto, located within the City of Kalamazoo, should be dedicated

as a public right-of-way for future use as a public street of the City of Kalamazoo, and it

does hereby declare that said property is dedicated as a public right-of-way for future use

as a public street.




                                              1
       NOW, THEREFORE, IT IS HEREBY RESOLVED, that the City Clerk cause a

certified copy of the resolution to be recorded in the office of the Register of deeds for this

county.

The above resolution was offered by ________________________________________

and supported by ________________________________________________________


AYES, Commissioners:


NAYS, Commissioners:


ABSTAIN, Commissioners:


RESOLUTION DECLARED ADOPTED.


                                       CERTIFICATE

The foregoing is a true and complete copy of a resolution adopted by the City Commission
of the City of Kalamazoo at a regular meeting held on                       , 2007. Public
notice was given and the meeting was conducted in full compliance with the Michigan Open
Meetings Act (PA 267, 1976). Minutes of the meeting will be available as required by the
Act.


                                                          _____________________________
                                                          Scott A. Borling, City Clerk




                                              2
                                                                                                             Date: 12/17/07
                                                                                                                   Item G5

                     Commission
                     Agenda Report
                     C i t y of K a l a m a z o o


TO:               Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:             Kenneth P. Collard, City Manager, ICMA-CM, P.E.
                  Reviewed By: Thomas C. Skrobola, Management Services Director / CFO
                  Prepared By: Patsy A. Moore, Deputy Management Services Director /
                  Comptroller

SUBJECT:          Setting a Public Hearing for the Proposed FY 2008 Budget

DATE:             December 4, 2007

RECOMMENDATION

It is recommended that the City Commission adopt a RESOLUTION setting a public hearing to
consider the proposed fiscal year 2008 budget for the City of Kalamazoo. This resolution
provides notice of a public hearing to be held on January 14, 2008 regarding the proposed City
of Kalamazoo FY 2008 budget.

BACKGROUND

Each year a resolution must be adopted to provide notice of a public hearing to be held prior to
adoption of the budget. The hearing must take place prior to adoption of the budget and
publication of a notice of said hearing must be published at least six (6) days prior to the
hearing.

The attached resolution regarding the budget hearing provides for the hearing to take place at
or after 7 p.m., local time, on January 14, 2008. The final budget actions by the City
Commission are scheduled for January 21, 2008 and include the adoption of a General
Appropriation Resolution for the Year of 2008 setting property tax millage rates, the final
appropriations to be adopted by the City Commission for each department and operation within
the City, and other related actions such as resolutions regarding fee increases.

COMMUNITY RESOURCES CONSULTED

None

FISCAL IMPACT

None




               Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8047
                                                   Fax: (269) 337-8182

C:\Documents and Settings\sugliak\Local Settings\Temporary Internet Files\OLK8\Memo SETTING A PUBLIC HEARING.DOC
ALTERNATIVES

There is no alternative to holding a public hearing as charter and state law guides this process.
A notice to the public is required in order to hold the mandatory public hearing prior to the
adoption of the 2008 Budget.

ATTACHMENTS

Resolution




               Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8047
                                                   Fax: (269) 337-8182

C:\Documents and Settings\sugliak\Local Settings\Temporary Internet Files\OLK8\Memo SETTING A PUBLIC HEARING.DOC
                          CITY OF KALAMAZOO, MICHIGAN

                               RESOLUTION NO. ______


 A RESOLUTION SETTING A PUBLIC HEARING TO CONSIDER THE PROPOSED
       FISCAL YEAR 2008 BUDGET FOR THE CITY OF KALAMAZOO


      WHEREAS, Article 7, Section 32 of the 1963 Constitution of the State of
Michigan requires the holding of a hearing on any budget of local units empowered to
prepare budgets of estimated expenditures and revenues; and

       WHEREAS, MCL 141.412 requires that a notice of such hearing be given by
publication in a newspaper of general circulation at least six (6) days prior to such
hearing; and

       WHEREAS, Public Act #40 of 1995 provides that in order to avoid the necessity
of holding a truth in taxation hearing, that a municipality must include a statement in its
budget hearing notice that the property tax millage rate proposed to be levied to support
the proposed budget will be a subject of this hearing; and

       NOW, THEREFORE, BE IT HEREBY RESOLVED that a hearing will be held on
the proposed 2008 Budget for the City of Kalamazoo by the City Commission in the City
Commission Chambers, Second Floor of City Hall, 241 West South Street, Kalamazoo,
Michigan, on or after 7 p.m., local time, on January 14, 2008, and notice of said hearing
shall be published at least six (6) days prior to said hearing in the following form:

                          CITY OF KALAMAZOO, MICHIGAN
                           NOTICE OF BUDGET HEARING

Notice is hereby given that the City Commission of the City of Kalamazoo will conduct a
public hearing on the proposed 2008 Budget of said city in the City Commission
Chambers, Second Floor of City Hall, 241 West South Street, Kalamazoo, Michigan, on
November 14, 2008, on or after 7 p.m., local time, and that a copy of the said budget is
available for inspection at the office of the City Clerk. The property tax millage rate
proposed to be levied to support the proposed budget will be a subject of this hearing.

The above resolution was offered by _______________________________________
and supported by ______________________________________________________.

AYES,

NAYS,

ABSTAIN,


RESOLUTION DECLARED ADOPTED.
                                   CERTIFICATE

The forgoing is a true and complete copy of a resolution adopted by the City
Commission of the City of Kalamazoo at a regular meeting held on             . Public
notice was given and the meeting was conducted in full compliant with the Michigan
Open Meetings Act (PA 267,1976). Minutes of the meeting will be available as required
by the Act.


                        ______________________________
                              Scott Borling, City Clerk
             Commission                                                                                  Date:   12/17/07
                                                                                                                   Item G6
             Agenda Report
             C I t y of K a l a m a z o o



TO:            Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:          Kenneth P. Collard, City Manager, ICMA-CM, P.E.
               Reviewed By: Bruce E. Merchant, Public Services Director
               Prepared By: Bob Wass, Public Services Deputy Director

DATE:          November 20, 2007

SUBJECT:       Consumer Energy Rate Increase and Restructuring


RECOMMENDATION

It is recommended that the City Commission adopt a Resolution for the purpose of
authorizing the transfer of $5,000.00 to the Legal Defense Fund of the Michigan Municipal
League in support of filing an intervention in Michigan Public Services Commission Case
No. U-15245.

BACKGROUND

Consumers Energy Company has filed an application with the Michigan Public Services
Commission (MPSC), Case No. U-165245. The application is seeking permission to
increase its rates for generation and distribution of electricity and to restructure the rate
base. The Michigan Municipal League’s (MML) Legal Defense Fund has agreed to file an
intervention on behalf of municipalities located within Consumers service area. The Cities
of Grand Rapids and Wyoming as well as other municipalities have analyzed the affect of
these proposed changes on their electrical usage and have offered financial support to the
MML’s Legal Defense Fund.

Electric costs for the City of Kalamazoo will increase significantly under the proposed rate
increase and restructuring if approved by the PSC. The current rate structure charges vary
throughout the City depending on the nature of the electrical service. For example,
different electric rates are used for Water Pumping Stations, Wastewater Lift Stations, at
the Water Reclamation Plant (WRP), and Streetlights.

Annual electric service costs at the Kalamazoo Water Reclamation Pant (KWRP) and for
wastewater lift stations, water pumping stations, traffic signals and street lighting are shown
in the following table. The total 2006 electrical cost was in excess of $4,250,000. 2007
electrical costs are projected to be again in excess of $4,200,000, even though electrical
usage at the KWRP, our major user of electrical power, has been significantly reduced this
year. Based on an average annual electrical cost in excess of $4,000,000 and the rate

        Kalamazoo City Manager's Office   241 W. South Street     Kalamazoo, MI 49007   (269) 337-8047
                                              Fax: (269) 337-8182
Commission Agenda Report – Consumer Energy Rate Increaseand Restructuring
Page 2


increases and restructuring requested by Consumers Energy, the City of Kalamazoo could
potentially see an increase in excess of $800,000 for electrical services in 2008. This
would create a major and direct impact on most City operation and maintenance budgets
and the ability to fulfill the needs of City residents without an offsetting increase in revenues
or reduction in expenditures.


                                      Annual Electrical Costs
                                    Wastewater Water Pumping                        Traffic
      Year            WRP                                                                         Streetlights
                                    Lift Stations Stations                          Signals

      2005           $1.66M               $32,600                                                   $884,200


      2006           $1.81M               $40,600              $947,200            $135,450         $954,450


      2007           $1.76M               $51,500             $1,299,600           $144,750         $978,750
                    (projected)           (projected)          (projected)          (projected)      (projected)

   Average
    Annual         $453,300               $10,000              $300,000             $14,000          $93,900
   Increase         (23%)                  (26%)                 (26%)               (10%)            (10%)
   (estimated)

COMMUNITY RESOURCES CONSULTED

No community resources were consulted

ALTERNATIVES

The Commission could choose not to support the efforts of the Michigan Municipal
League’s Legal Defense Fund to intervene on its behalf. However, by partnering with the
other municipalities that already support the effort and helping with the funding necessary
to fight the proposed rate increase may lessen the impact on future annual budgets.

FISCAL IMPACT

Funds are available in the 2007 Water, Wastewater and General Funds to support this
effort. Based on usage, $1,300.00 (31%) being contributed from the Water Fund, $1,820.00
(43%) from the Wastewater Fund and $1,880.00 (38%) from the General Fund.

ATTACHMENTS

Resolution


        Kalamazoo City Manager's Office       241 W. South Street     Kalamazoo, MI 49007    (269) 337-8047
                                                  Fax: (269) 337-8182
                              CITY OF KALAMAZOO, MICHIGAN

                               RESOLUTION NO. ______________

A RESOLUTION TO AUTHORIZE A CONTRIBUTION TO THE MICHIGAN MUNICIPAL
LEAGUE’S LEGAL DEFENSE FUND FOR OBTAINING INTERVENOR STATUS WITH THE
MICHIGAN PUBLIC SERVICE COMMISSION REGARDING CASE NO. U-15245

       Minutes of a regular meeting of the City Commission of the City held on December 17,
2007, at or after 7:00 p.m., local time, at Kalamazoo City Hall, 241 W. South Street, Kalamazoo,
Michigan.

PRESENT, Commissioners:

ABSENT, Commissioners:

        WHEREAS, Consumers Energy Company has filed an application with the Michigan Public
Services Commission Case No. U-15245 seeking permission to increase its rates for generation and
distribution of electricity and for permission to restructure the rate base; and

       WHEREAS, if Consumers is granted the relief it seeks, the City of Kalamazoo will
experience a substantial increase in the cost of electric service for the Water Reclamation Plant
(WRP) as well as other City-owned and operated facilities; and

       WHEREAS, the Michigan Municipal League’s Legal Defense Fund has agreed to file an
intervention on behalf of those municipalities located in the Consumers Energy service area; and

       WHEREAS, the City Commission has met in public hearing, as heretofore resolved and
noticed, for the purpose of joining with the Michigan Municipal League’s Legal Defense Fund for
the purpose of seeking intervention in Case No. U-15245, now pending before the Michigan Public
Services Commission; and

       WHEREAS, the City of Grand Rapids and the City of Wyoming have previous expressed a
willingness to participate in the intervention and resolved to authorize a contribution to this effort,

       NOW, THEREFORE, IT IS HEREBY RESOLVED:

       (1) that $5,000 shall be transferred equally from the city’s General Fund, Water Fund and
Wastewater Fund to the Michigan Municipal League Defense Fund for the latter's use in its
intervention into the proposed rate increase before the Michigan Public Services Commission.
The above resolution was offered by                                           and supported by
___________________________________________.

AYES, Commissioners:

NAYS, Commissioners:

ABSTAIN, Commissioners:

RESOLUTION DECLARED ADOPTED.

                                       CERTIFICATE

The foregoing is a true and complete copy of a resolution adopted by the City Commission of the
City of Kalamazoo at a regular meeting held on December 17, 2007. Public notice was given and
the meeting was conducted in full compliance with the Michigan Open Meetings Act (PA 267,
1976). Minutes of the meeting will be available as required by said Act.


                                                   _______________________________
                                                   Scott A. Borling
                                                   City Clerk
            Commission                                                                                    Date:   12/17/07
                                                                                                                    Item G7
            Agenda Report
            C i t y of K a l a m a z o o



TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Kenneth Collard, City Manager, ICMA-CM, P.E.
              Reviewed By: Keith Hernandez, City Planner/Deputy Director
              Prepared By: Robert H. Bauckham, Assistant City Planner

DATE:         December 7, 2007

SUBJECT:      Amended request to vacate the south portion of Lafayette Avenue


RECOMMENDATION

It is recommended that the City Commission adopt a resolution to vacate the south 763.70
feet of Lafayette Avenue, plus a right-of-way located south of Lafayette Avenue, with the
following conditions:

 1.    An easement will be provided to the city for the underground utilities in the
       property to be vacated.
 2.    An easement will be provided to the city for future storm water facilities.
 3.    An easement will be provided to the city for access to the east side of the
       Knollwood Park.
 4.    The existing trees on the east side of the Knollwood Park will remain.

BACKGROUND

This is an amendment of a request that was previously approved by the City Commission
on July 30, 2007 to vacate a portion of Lafayette Avenue in the Knollwood neighborhood to
the Knollwood Apartment Complex, which is located at 1509 Lafayette Avenue. The
original request was to vacate the south 780 feet of the street. This dimension was based
on the measured distance between the northwest corner of the apartment complex property
and the end of the Lafayette Avenue cul-de-sac using the city’s GIS mapping system.
Subsequent to the City Commission approval, the applicant’s surveyor discovered that the
actual length of the paved street area needed for the vacation was 763.70 feet, not 780
feet. This amendment, in part, corrects this error.

The surveyor also discovered that an approximately 48-foot-long, undeveloped right-of-way
is located between the south end of the Lafayette Avenue cul-de-sac and the railroad
property to the south. This undeveloped right-of-way is also needed for the planned
redevelopment of the Knollwood Apartment Complex. The applicant would like to build a
portion of one of the new buildings over this property. It has been determined that the right-

            Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8047
                                                Fax: (269) 337-8182
Commission Agenda Report – Street Vacation Request
Page 2


of-way is not needed by the city, and there are no plans to develop it for road or other
purposes in the future. Therefore, the applicant is now requesting to vacate the south
763.70 feet of Lafayette Avenue, plus the undeveloped right-of-way located south of
the street.

Lafayette Avenue is a paved public street that begins at W. Michigan Avenue on the north
end and ends in a cul-de-sac at the south end. The segment of the street requested for
vacation is south of the apartment complex located at 1504 Lafayette Avenue. The
Knollwood Apartment complex abuts this segment of the street and the undeveloped right-
of-way on the east side, and the Knollwood Park abuts them on the west side.

The applicant for the request is the owner of the Knollwood Apartment complex. They are
in the process of remodeling the existing complex and constructing new apartment and
clubhouse buildings. In adding new apartment units to the site, additional off-street parking
will be needed to meet their goal of having one parking space for each bedroom. Most of
the tenants own a vehicle. The applicant is seeking to have a portion of Lafayette Avenue
vacated to the apartment complex so that they can add perpendicular parking spaces on
the east side of it for tenant use.

The west side of this segment of Lafayette Avenue would also be vacated as a public
street, but it would remain a driving lane for access to the apartment complex and the park,
as well as a maneuvering area for the perpendicular parking. The street would remain
paved and would be unchanged physically, but it would be owned and maintained by the
apartment complex. The applicant would also like to have the undeveloped right-of-way
located between the end of the cul-de-sac for Lafayette Street and the railroad property to
the south vacated to the apartment complex so that they can build a portion of one of the
new buildings on it. The city would be provided with easements to access the existing
public utilities in the property, for future storm water drainage facilities, and for access to
the park on the east side.

The city’s Street Vacation Policy indicates all roads, alleys, and rights-of-way that are
approved for vacation are normally split down the middle and each half offered to the
abutting property owners. For this request, the abutting land is owned by the city on the
west side and by the applicant on the east side. The city will not retain the west half of the
property to be vacated, but would receive the aforementioned utility and access
easements.

If the vacation request is approved, the applicant will be required to pay to the city the fair
market value for the property, which is estimated by the city Assessor’s office to be
$53,120. The applicant agrees to conduct on-going maintenance of the road if it is
vacated, including repairs and snow plowing, and to keep the property clear of trash and
debris.




             Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 269.337.8047
                                                 Fax: 269.337.8182
Commission Agenda Report – Street Vacation Request
Page 3


Review Criteria:
All street vacation requests are subject to the requirements of the city’s Street Vacation
Policy, which was adopted in 1992. The Planning Commission is required to hold a public
hearing to review each street vacation request, and then provide a recommendation to the
City Commission. The City Commission issues the final decision on all such requests. The
applicant has submitted all necessary forms and support documents for the request.

The city Engineering Division, Public Safety Department, Recreation Department, and
Public Works Department have been contacted regarding this request. No objections were
raised by staff from these offices. Easements for the utilities and for access to the east
side of the Knollwood Park were requested. The Recreation Department also requested
that the existing trees on the east side of the park be retained.

Planning Commission Action

At their regular meeting held on June 7, 2007, the Planning Commission voted unanimously
to recommend to the City Commission to approve the vacation of the property, with four
conditions. The conditions are listed in the “Recommendation” section of this report. There
were no comments offered by the public during the hearing.

COMMUNITY RESOURCES CONSULTED

Property owners and occupants within a 300-foot radius of the street right-of-way proposed
for the vacation were mailed notices detailing the request and encouraging their attendance
at the public hearing that was held by the Planning Commission on June 7, 2007. The
public hearing notice was also published in the Kalamazoo Gazette for that meeting. There
is currently no organized neighborhood association encompassing the area of the project.
According to the Street Vacation Policy, the City Commission is not required to hold a
public hearing on street right-of-way vacation requests, so no such noticing will be
conducted for the City Commission meeting.

FISCAL IMPACT

The street vacation will not impact City staff. If vacated, the applicant will be required to
pay to the city the fair market value of the property, which is estimated to be $53,120.
Vacating this property will allow the applicant to add it to the abutting Knollwood
Apartments site for parking purposes, in connection with the planned renovation and new
building construction for the complex. Expansion of the complex will result in an increase in
the tax revenue that is generated from the property.

ALTERNATIVES

The City Commission has the option of not vacating the property to the applicant. The
vacation will not impact emergency or other vehicular traffic in the area, will not create a

             Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 269.337.8047
                                                 Fax: 269.337.8182
Commission Agenda Report – Street Vacation Request
Page 4


landlocked parcel, and easements will be provided to the city to access the utilities in the
street and to access the east side of Knollwood Park.

It is recommended that the City Commission approve the amended vacation of the property
as requested with the four conditions specified by the Planning Commission.

ATTACHMENTS

Resolution
Planning Commission meeting minutes from June 7, 2007
Parcel sketch




             Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 269.337.8047
                                                 Fax: 269.337.8182
                               CITY OF KALAMAZOO, MICHIGAN

                                        RESOLUTION NO.

 A RESOLUTION VACATING THE SOUTH 763.7 FEET OF LAFAYETTE AVENUE AND AN
  UNDEVELOPED RIGHT-OF-WAY LOCATED SOUTH OF LAFAYETTE AVENUE IN THE
                     CITY OF KALAMAZOO, MICHIGAN


        Minutes of a regular meeting of the City Commission of the City held on              , 2007,
at 7:00 o'clock p.m., local time at the City Hall.

       PRESENT, Commissioners:



       ABSENT, Commissioners:


        WHEREAS, the City of Kalamazoo is empowered with the authority to vacate a street
pursuant to City Charter Sections 150 and 171, the Constitution of the State of Michigan 1963,
Article VII, Section 29, and the Land Division Act, MCL 560.256; and

       WHEREAS, notice of the Public Hearing before the Planning Commission on vacating the
south portion of Lafayette Avenue was published by the City Clerk with a personal notice of the
hearing via first class mail to all listed homeowners and/or property owners owning and occupying
parcels of land abutting such property as well as within a distance of three hundred (300) feet from
any point on the boundary line of such property; and

       WHEREAS, a public hearing was held on June 7, 2007, by the Planning Commission where
the public was able to provide testimony pertaining to the vacation of the above street segment: and

         WHEREAS, the Planning Commission has made a recommendation to the City Commission
to vacate the property with the following conditions: 1) An easement will be provided to the city for
the underground utilities in the property to be vacated, 2) An easement will be provided to the city
for future storm water facilities, 3) An easement will be provided to the city for access to the east
side of the Knollwood Park, and 4) The existing trees on the east side of the Knollwood Park will
remain; and

        WHEREAS, the vacation of this property will not eliminate access to the adjacent parcels
that front on the street; and

       WHEREAS, vacating the above-described property will allow the property owner of the
Knollwood Apartment complex at 1509 Lafayette Avenue and 1724 Knollwood Avenue to add the
property to his parcels to create a larger parcel and allow for the redevelopment of the complex;
and

       WHEREAS, the City Commission of the City of Kalamazoo finds that the property
recommended for vacation has been determined not to be needed by the city Department of Public
Services, Department of Public Works, Parks and Recreation Department, and Public Safety
Department; and
        WHEREAS, the applicant for this request has agreed to pay to the city the fair market value
of the property to be vacated, estimated to be $53,120 upon its vacation; and

        WHEREAS, the City Commission has determined that it is necessary and in the best
interest of the health, welfare, comfort and safety of the citizens of Kalamazoo to discontinue the
above street segment as set forth in this resolution;

       NOW, THEREFORE, BE IT RESOLVED THAT the south 763.7 feet of Lafayette Avenue
and the undeveloped right-of-way located between the end of Lafayette Avenue and the railroad
property to the south, as depicted in the attached map (Sheet No. A), is hereby vacated and
discontinued as a public street with the four conditions issued by the Planning Commission.

       IT IS FURTHER RESOLVED THAT Resolution No. ___ adopted by the City Commission
on July 30, 2007 to vacate the south 780 feet of Lafayette Avenue is hereby rescinded.

         IT IS FURTHER RESOLVED THAT the City Clerk of the City of Kalamazoo shall record
certified copies of this resolution with the Kalamazoo County Register of Deeds and the State
Treasurer within thirty (30) days of the date of this action.


       The above resolution was offered by Commissioner                _______________         and
supported by Commissioner

       AYES, Commissioners:


       NAYS, Commissioners:


RESOLUTION DECLARED ADOPTED.


                                         CERTIFICATE

The foregoing is a true and complete copy of a resolution adopted by the City Commission of the
City of Kalamazoo at a regular meeting held on _________________, 2007. Public notice was
given and the meeting was conducted in full compliance with the Michigan Open Meetings Act (PA
267, 1976). Minutes of the meeting will be available as required by said Act.

                                                     _______________________________
                                                     Scott A. Borling, City Clerk
                            PLANNING COMMISSION
                                   Minutes
                                 June 7, 2007

The City of Kalamazoo Planning Commission meeting was called to order by
Commissioner Kuseske at 7:00 p.m. in the City Commission Chambers, 241 W. South
St., Kalamazoo, MI 49007. Approximately a dozen additional people were in attendance.

MEMBERS PRESENT

Terry Kuseske, Chair; Frank Cody, Vice Chair; Sonja Dean; Casey Fawley; James
Kneen; Merilee Mishall; Bertha Stewart; Linda Wienir; Reed Youngs

GUESTS

Barb Miller, City Commissioner

CITY STAFF

Keith Hernandez, Deputy Director/City Planner; Rob Bauckham, Assistant City Planner;
John Kneas, Assistance City Attorney; Amy Thomas, Recording Secretary

ROLL CALL

Planner Hernandez completed roll call and determined that the aforementioned members
were present.

AGENDA (June 7, 2007)

There were no changes to the agenda.

Commissioner Cody, supported by Commissioner Fawley, moved approval of the
June 7, 2007 Planning Commission agenda as presented. With a voice vote, the
motion carried unanimously.

MINUTES (May 3, 2007)

Commissioner Wienir requested the following changes to the minutes: Pages 1 and 2, the
April Planning Commission meeting was held on April 11th not April 3rd.

Commissioner Kneen, supported by Commissioner Wienir, moved approval of the
May 3, 2007 Planning Commission minutes as amended. With a voice vote, the
motion carried unanimously.
Planning Commission Minutes
June 7, 2007
Page 2 of 9


COMMUNICATIONS AND ANNOUNCEMENTS

Planner Hernandez advised that the next Planning Commission meeting is scheduled for
Tuesday, July 10th. City staff is trying to arrange for the meeting to be held off site, but a
location has not yet been determined.

PUBLIC HEARINGS

   1.      P.C. #2007.09: Consideration of a request from the Progressive
           Deliverance Ministries Church of God in Christ for a special use permit
           (SUP) to allow an expansion of the existing church building at 1521, 1523
           and 1527 N. Edwards Street, and to allow a separate parking lot for the
           church at 1524 and 1526 N. Edwards Street.

Planner Bauckham gave the staff report, which is incorporated in these minutes by
reference hereto. The subject properties are located at the corner of North Edwards and
West Prouty Street in the Northside Neighborhood. This request involves two separate
sites. The church building is situated on the main site. The applicant is proposing a
parking lot for the separate site located across the street to the east. The former church on
the property was known as the Victory Temple Church. The applicant is proposing an
addition to the north side of the church. The church plans to have a cafeteria, classrooms,
offices and restrooms in the addition.

The church has no off-street parking at this time, but it owns two undeveloped parcels of
land to the east. The church would like to have a 21-space parking lot on those two
parcels. The parking spaces would be angled and the lot would have an “entrance only”
driveway off Prouty St. and an “exit only” driveway off Edwards St. A privacy fence
would be installed on the south side of the parking lot as a buffer for the adjacent houses.
The parking lot would be paved and landscaped and it would have shielded, outside
lighting.

The church building addition and the parking lot are both allowed in the existing zoning
district (RS-5) by special use permit with review and approval by the Planning
Commission. A variance will also be required for the separate parking lot and to allow
fewer than the number of parking spaces required by ordinance. Based on the number of
seats in the sanctuary, the church is required to have 33 off-street parking spaces, but the
applicant doesn’t have adequate space to accommodate that requirement. Attendees of
the church are currently parking on an adjoining street; the proposed parking lot will
partially address the church’s parking issues. The applicants have applied for a variance
in front of the Zoning Board of Appeals and that request is scheduled to be heard next
week.
Planning Commission Minutes
June 7, 2007
Page 3 of 9


City staff believes this request meets the criteria for a special use permit. The applicant
will need to submit a formal site plan to the Site Plan Review Committee for review and
approval.

City staff is recommending approval of the special use permit with two conditions:

   1. The applicants must obtain a variance from the Zoning Board of Appeals with
      regard to the separate site parking lot and to allow less than the required number
      of off-street parking spaces.

   2. The formal site plan is to be submitted and approved by the Site Plan Review
      Committee.

Reverend Joseph Anderson was present on behalf of the applicant to answer questions.
He stated that Pastor Jennings could not be present due to a conflict in his schedule.
Reverend Anderson stated that Pastor Jennings has worked very hard to help decrease
crime in the neighborhood. The church currently has inadequate parking and there have
been problems with ticketing. Reverend Anderson advised that the church has
approximately 100 members.

Commissioner Fawley commented that not all of the members would drive to service.
He inquired as to the number of services held by the church. Reverend Anderson advised
that the church has Sunday and Wednesday services and bible studies on Friday evenings.
Commissioner Fawley expressed concern that the parking lot might overflow; Reverend
Anderson advised that he thought that was unlikely.

Commissioner Kneen inquired if people were being ticketed on Sundays. Reverend
Anderson advised that the problems with ticketing occurred during the week.

Public Hearing

Karika Phillips, 1615 N. Edwards, advised that the church property is located east of her
property. She stated that she supports the church and the parking lot. She mentioned that
the church also owns the lot next to her property and she doesn’t want a parking lot in
that location. Reverend Anderson stated that the church is only looking at putting a
parking lot on the separate lots to the east of the church. He added that the lot next to Ms.
Phillips property may have been offered to the church, but the church doesn’t own it and
they have no intention of acquiring it at this time.

Commissioner Cody, supported by Commissioner Kneen, moved to close the public
hearing on P.C. #2007.09.

Commissioner Cody, supported by Commissioner Dean, moved approval of P.C.
#2007.09: Consideration of a request from the Progressive Deliverance Ministries
Planning Commission Minutes
June 7, 2007
Page 4 of 9


Church of God in Christ for a special use permit (SUP) to allow an expansion of the
existing church building at 1521, 1523 and 1527 N. Edwards Street, and to allow a
separate parking lot for the church at 1524 and 1526 N. Edwards Street, with the
conditions specified by city staff. With a roll call vote, the motion carried
unanimously.

   2.      P.C. #2007.10: Consideration of a request from GEM Knollwood, LLC
           to vacate the south 780 feet of Lafayette Avenue in the Knollwood
           neighborhood for the proposed redevelopment of the Knollwood
           Apartment complex.

Planner Bauckham gave the staff report, which is incorporated in these minutes by
reference hereto. Lafayette is a paved, public street in the Knollwood Neighborhood,
which starts at W. Michigan Ave. and ends at the cul-de-sac on the south end of the
street. The applicant wants the south 780 feet of the street vacated, beginning south of
the existing apartment complex at 1504 Lafayette and continuing to the end of the cul-de-
sac on the south side. The Knollwood Apartment Complex abuts the east side of this
section of the street, and the Knollwood Park (owned by the city) abuts the west side.
The applicant owns the Knollwood Apartment Complex and wants to remodel the
existing buildings. They are considering the possibility of constructing additional
apartment buildings and a clubhouse. If the vacation request is granted, the applicant will
use the land as parking for the tenants of the apartment complex. The west side of the
vacated property would be used as a driving lane for access to the park and the
apartments. The street would be owned and maintained by the apartment complex. The
final site plan for the apartments has not yet been finalized. The applicant would be
required to have a certain number of off-street parking spaces. The city would have
easements for the existing utilities that are under the road, for a possible storm water
drainage facility, and to maintain access to the park.

Normally, the owners of each of the abutting properties would receive ½ of the vacated
land. However, the city owns the park to the west and they are willing to provide all of
the property to the applicant if the street vacation is approved. The city’s Recreation
Department has requested that the trees on the east side of the park be retained. The Fire
Marshall has requested that access be maintained through the west side of the street for
emergency vehicles. If the application is approved, the applicant would be required to
pay to the city the fair market value for the property. The applicant would be responsible
for maintenance of the vacated area.

City staff is recommending approval of the street vacation request with the following
conditions:

   1. An easement is to be provided to the City of Kalamazoo for the underground
      utilities for the road segment to be vacated.
Planning Commission Minutes
June 7, 2007
Page 5 of 9


   2. An easement is to be provided to the City of Kalamazoo for possible future storm
      water facilities.

   3. An easement is to be provided to the City of Kalamazoo for access to the east side
      of the Knollwood park.

   4. The existing trees on the east side of the park are to remain.

Commissioner Mishall requested clarification on what the applicant is proposing.
Planner Bauckham referred to the maps on the overhead projector and provided further
details. Commissioner Mishall inquired as to how it would be different than it is now.
Planner Bauckham stated that the street vacation would allow for the applicants to
acquire the property and use the eastern portion for perpendicular parking. The west side
of the property would remain open for access to the park, access to the southern portion
of the apartment complex and for emergency vehicle access. The applicant is not
planning to physically change the road, but the vacated portion of the road would be
owned by the apartment complex and they would be able to use part of it for parking.

Commissioner Fawley expressed concern that there would not be enough room for cars to
park perpendicular to the curb and still have two-way traffic. Planner Bauckham advised
that the pavement is about 40 feet wide. The ordinance requires 18 feet for parking and
22 feet for driving.

Commissioner Mishall inquired if the Planning Commission could mandate that the trees
be saved. Planner Bauckham stated that there would be language in the easement stating
that the trees are to remain. If someone violated the easement there would be
repercussions.

Commissioner Youngs expressed concern about the possibility of city trucks/snow plows
having to turn around on private property if the street vacation is granted. He suggested
moving the cul-de-sac to where the road ends in order to avoid that situation. He
mentioned a situation where there was a similar concern involving a public road that
ended at a PUD. Agreements were reached with the PUD to allow the vehicles to access
their property rather than backing up.

Commissioner Kuseske inquired as to the criteria for maintenance of the vacated land.
Planner Bauckham advised that there would be specific language in the easement to
cover those issues.

Commissioner Kneen inquired as to why the city hadn’t made that space perpendicular
parking. Planner Bauckham stated that the traffic engineer was opposed to that because
of liability issues.
Planning Commission Minutes
June 7, 2007
Page 6 of 9


Greg Dobson, AVB Construction and American Village Development Company, was
present on behalf of GEM Knollwood, LLC. He distributed more detailed information to
the Planning Commissioners with regard to the application. Mr. Dobson advised that the
overall concept is to make the street and access part of the Knollwood Apartment
Complex. The name of the development will be changing. His client will be making a
substantial investment to redevelop this apartment complex, including updates to the
infrastructure. This will be a benefit to the City of Kalamazoo, Western Michigan
University and the community. It is possible to widen the road to provide two-way traffic
and perpendicular parking. The legal description will be worded so that the right-of-way
will be 50 feet wide rather than the current 60 feet wide. The western most 10 feet of the
right-of-way where the trees are located will be outside of the legal description of the
area being vacated, so the trees will remain. There will be a substantial amount of on-site
parking and the developer will be exceeding the city’s parking requirements.

Commissioner Wienir inquired if the applicants had discussed these plans with
representatives from the surrounding neighborhoods. Mr. Dobson stated that the
applicant hadn’t met with neighborhood representatives. However, hundreds of notices
were sent to residents in the surrounding neighborhood to announce this hearing, and Mr.
Dobson stated that he was unaware of any feedback.

Commissioner Kneen inquired if there is parking for people who need to use the park.
Mr. Dobson stated that there is street parking for people who want to use the park. There
has been dialogue with city staff regarding this matter and there may be accommodations
to allow either a drive in for parking or parking on the street. Planner Hernandez advised
that the city’s Parks and Recreation Department has discussed adding parking for the
park but they have no definite plans at this time. Mr. Dobson stated that an easement
would be provided to allow access anywhere along the western edge of the right-of-way
so that a drive could be put in at the desired location.

Commissioner Kneen inquired if park patrons would be allowed to use the perpendicular
parking spaces that are to be added. Mr. Dobson stated that this could be an option.
Solutions are being offered to provide a win/win situation, but Mr. Dobson hasn’t
received any directives on that subject at this point.

Commissioner Mishall inquired as to the current capacity of the apartments and whether
there will be an increase or decrease. Mr. Dobson advised that there are currently 309
units. They will all be redeveloped, but the bedroom count of the existing units will
remain the same. Four new buildings will be added, which will bring the total unit count
up to approximately 500. This is significantly less than what is allowed in the current
zoning classification. The number of parking spaces will exceed the requirements.
Planning Commission Minutes
June 7, 2007
Page 7 of 9


Public Hearing

There were no speakers at the public hearing.

Commissioner Mishall, supported by Commissioner Wienir, moved to close the
public hearing on P.C. #2007.10.

Commissioner Fawley inquired about Commissioner Youngs’ suggestion regarding the
cul-de-sac. Will city staff address that concern or should the Planning Commission add it
to the four conditions presented by staff? Commissioner Youngs commented that
language could be added to the easement to cover the issue regarding the cul-de-sac.
Planner Bauckham advised that this application was reviewed by the city’s Public Works
Department and they didn’t provide any such recommendations regarding the cul-de-sac.
There is an entrance to the apartments on the north side of the complex near the area to be
vacated. City staff from the Public Works Department may have determined that city
vehicles will have to back into that driveway to turn around but they didn’t think it would
be a problem. Relocating the cul-de-sac would require widening of the street
substantially and that would encroach on land that belongs to the park and the apartment
complex.

Commissioner Kneen, supported by Commissioner Mishall, moved approval of P.C.
#2007.10: Consideration of a request from GEM Knollwood, LLC to vacate the
south 780 feet of Lafayette Avenue in the Knollwood neighborhood for the proposed
redevelopment of the Knollwood Apartments complex, with the conditions
recommended by city staff. With a roll call vote, the motion carried unanimously.

(8:00 p.m. – Commissioner Youngs left the meeting.)

CITIZENS’ COMMENTS REGARDING NON-AGENDA ITEMS

None

OLD BUSINESS

None

NEW BUSINESS

None

CITIZENS’ COMMENTS

None
Planning Commission Minutes
June 7, 2007
Page 8 of 9


CITY PLANNER’S REPORT

Planner Hernandez advised that he and Attorney Kneas met with residents of the Stuart
Neighborhood on May 15th to discuss the proposed zoning overlay for the Stuart
Neighborhood. The general consensus was that the majority of the residents in that
neighborhood don’t want the overlay. Planner Hernandez wrote a letter to SARA (Stuart
Area Restoration Association) containing the details of the meeting. Many of the
residents are still in favor of limiting certain uses in the neighborhood. City staff initiated
discussions about the overlay because they thought that was the preference of a majority
of the people in the neighborhood. The residents would prefer having homes leased to
individuals rather than supporting communal living. The fraternity house on Kalamazoo
Avenue will be phased out by the end of the month as a direct result of efforts by city
staff through the Zoning Board of Appeals.

Attorney Kneas advised that city staff is looking at enforcing the ordinance and certain
code violations to discontinue the use of that house as a fraternity house. The general
consensus is that the overlay was initiated before the new zoning code was approved.
During that time, things have changed in the neighborhood. It is also in a historic district
and they thought that provided enough regulations.

Commissioner Kuseske inquired if the communal living issue could be studied citywide.
Attorney Kneas advised that specific zoning districts in the city allow this type of use.

Planner Hernandez advised that many groups are enthused about speaking at the Planning
Commission retreat.

Commissioner Mishall inquired if the last half hour of the retreat would be time for
discussion among Planning Commissioners. Planner Hernandez responded in the
affirmative.

Planner Hernandez stated that the Planning Commissioners can have as many or as few
people at the retreat as they choose. Questions can be asked during the presentation.
Commissioner Mishall expressed support for set aside time for commissioners to talk
among themselves.

Commissioner Kuseske inquired if there would be a conflict with the Open Meetings Act
under these circumstances. Attorney Kneas stated that retreats are considered to be an
educational program so they are not subject to the Open Meetings Act.

Planner Bauckham stated that a church in the city is requesting a special use permit, and
that will likely be one of the items on the July Planning Commission agenda. The
applicant is considering turning the church into a school.
Planning Commission Minutes
June 7, 2007
Page 9 of 9


MISCELLANEOUS COMMENTS BY PLANNING COMMISSIONERS

Commissioner Wienir encouraged the members of the Planning Commission to read the
June 7th Kalamazoo Gazette opinion page. Kalamazoo has been recognized in the Urban
Land magazine as one of the top cities in the entire country that has turned around its
downtown area.

ADJOURNMENT

Commissioner Kneen, supported by Commissioner Fawley, moved to adjourn the
June 7, 2007 Planning Commission meeting.

The meeting adjourned at 8:15 p.m.


Respectfully submitted,


________________________________
Keith Hernandez, AICP
Deputy Director/City Planner
Community Planning and Development
            Commission                                                                 Date:   12/17/07
                                                                                                 Item G8
            Agenda Report
            City Of Kalamazoo


TO:           Mayor Hopewell, Vice Mayor McKinney, City Commissioners

FROM:         Scott A. Borling, City Clerk
              Prepared By: Lisa Watkin, Election Specialist

DATE:         November 30, 2007

SUBJECT:      Resolution Designating Polling Facility Locations for the January 15, 2008
              Election

RECOMMENDATION

It is recommended that the City Commission adopt a RESOLUTION designating the polling
facility locations for the election to be held January 15, 2008. The purpose of this election is
to vote for Presidential Primary Candidates and to consider a millage request from Comstock
Public Schools (portions of Precincts 10 & 17). The resolution establishes the polling places
for the city’s twenty-five precincts for the January 15, 2008 election.

BACKGROUND

Pursuant to M.C.L. 168.662 the legislative body of each city shall designate and prescribe the
places for holding an election in the city and shall provide a suitable polling place in or for
each precinct located in the city for use at each election. The actual arrangements to use
facilities for polling places are made by staff in the City Clerk’s Office. After identifying
suitable locations for polling places, the City Clerk submits a resolution with the precinct
locations to the City Commission for consideration. The polling locations being
recommended have been in use since 2002. There are no proposed changes at this time.

COMMUNITY RESOURCES CONSULTED

The Community Resources were consulted.

FISCAL IMPACT

The total City cost to use polling places is $270.00. There is no charge for sixteen of the
polling places including: public school buildings, WMU's University Center, Friendship
Village's Kiva, and Washington Square Co-op.
Commission Agenda Report - Resolution Designating Polling Facility Locations
Page 2


ALTERNATIVES

Public Act 216 of 2000 prohibits a city, township or village from establishing, moving or
abolishing a polling place less than 60 days before an election unless the polling place has
been “damaged, destroyed or rendered inaccessible or unusable as a polling place.” Thus,
changes to established polling locations cannot be made for the January 15th election at this
time.

In 2007, the Elections Division of the City Clerk’s Office conducted a comprehensive review
of all polling locations in the City and identified several alternative sites. However, the
deadline for approving changes to polling locations for the January 15th election was
November 16th, a date that was too close to the November 6th election to allow for public
input. It is anticipated that the City Clerk will present the proposed changes to the City
Commission with sufficient time to allow for public input prior to the deadline for the election
on May 6, 2008.

ATTACHMENTS

Resolution




              Kalamazoo City Clerk s Office ι 241 W. South Street, Kalamazoo, MI 49007 ι269.337.8792
                                                 Fax: 269.337.8494
                            CITY OF KALAMAZOO, MICHIGAN

                               RESOLUTION NO.             ______

  A RESOLUTION DESIGNATING THE POLLING FACILITY LOCATIONS FOR THE
                ELECTION TO BE HELD JANUARY 15, 2008

     Minutes of a regular meeting of the City Commission of the City of Kalamazoo held on
December 17, 2007 at 7:00 o'clock p.m., local time, at the Kalamazoo City Commission
Chambers, located at 241 West South Street.

PRESENT, Commissioners:

ABSENT, Commissioners:

       WHEREAS, M.C.L. 168.662 requires local legislative bodies to designate and
prescribe the place or places of holding an election in the local unit for each election; and

       WHEREAS, an Election to vote on Presidential Primary Candidates and Comstock
Public School Bond Issue will be held on January 15, 2008, for the purposes of electing,
Presidential Primary Candidates & Comstock Bond Issue.

        WHEREAS, facilities have been identified for use as polling places by the City Clerk
for the Election to be held on January 15, 2008, between the hours of 7:00 a.m. to 8:00 p.m.

      NOW, THEREFORE, BE IT RESOLVED THAT the Kalamazoo City Commission
hereby designates the following facilities as polling facility locations for the Election to be held
January 15, 2008:

       Pct.    Location                                     Address

       1       Helen Coover Center/Senior Center            918 Jasper Street
       2       University Student Center                    Western Michigan University
       3       Vine School                                  604 W. Vine Street
       4&5     Arcadia School                               932 Boswell Ln.
       6       Friendship Village                           1400 N. Drake Rd.
       7       Woodward School                              606 Stuart Avenue
       8       Mount Zion Baptist Church                    120 Roberson St.
       9       Douglass Community Center                    1000 W. Paterson Street
       10      Spring Valley School                         3530 Mt. Olivet Rd.
       11      Eastside Community Ctr                       1301 E. Main Street
       12      Oakwood Elementary                           3410 Laird Avenue
       13      Washington Sq. Coop                          710 Collins Street
       14      No longer a precinct
       15      Washington School                            1919 Portage Street
Resolution
Polling Facility Locations
Page 2 of 2

       Pct. Location                                  Address
       16    Milwood Middle School                    2916 Konkle Street
       17&18 Milwood Elementary                       3400 Lovers Lane
       19    Southside Church of the Nazarene         752 Denway
       20    Trinity Reformed Church                  326 W. Cork
       21&24 South Middle School                      922 W. Maple Street
       22    Winchell School                          2316 Winchell Avenue
       23    Parkwood School                          2321 S. Park Street
       25    Southern Heights Christian Reformed      4141 E. Hillandale
       26    Parkview Hills Clubhouse                 3707 Greenleaf Cr.


     The above resolution was offered by____________________             and supported by
______________________ .

AYES, Commissioners:

NAYS, Commissioners:

ABSTAIN, Commissioners:

RESOLUTION DECLARED ADOPTED.



                                                ________________________________
                                                           Scott A. Borling, City Clerk


                                     CERTIFICATE

The foregoing is a true and complete copy of a resolution adopted by the City Commission of
the City of Kalamazoo at a regular meeting held on December 17, 2007. Public notice was
given and the meeting was conducted in full compliance with the Michigan Open Meetings
Act (PA 267, 1976). Minutes of the meeting will be available as required by the Act.




                                                ________________________________
                                                           Scott A. Borling, City Clerk
                                                                                                       Date:   12/17/07
            Commission                                                                                          Item G9
            Agenda Report
            City Of Kalamazoo


TO:           Mayor Hopewell, Vice Mayor McKinney and City Commissioners

FROM:         Scott A. Borling, City Clerk

SUBJECT:      Designation of City Officials authorized to make application to MDOT
              regarding the use of the South Westnedge Pedestrian Overpass

RECOMMENDATION

It is recommended the City Commission adopt a performance and indemnification
RESOLUTION designating the City Clerk and Deputy City Clerk as City officials authorized to
apply to the Michigan Department of Transportation (MDOT) for a permit to place banners on
the South Westnedge pedestrian overpass during the period from January 1, 2008 to
December 31, 2008.

BACKGROUND

For many years the city has permitted non-profit organizations to place banners on the South
Westnedge pedestrian overpass. In 1998 jurisdiction of South Westnedge Avenue, including
the pedestrian overpass, was turned over to the State of Michigan (City Commission
Resolution No. 98-40). Because the City of Kalamazoo does not control the Westnedge
Avenue right-of-way, it is necessary to get permission from MDOT to place banners on the
overpass.

MDOT issues banner permits to local governing units (not individuals or private entities) and
requires that the local governing body designate the official/officials who are authorized to
made application for such permits.

In December 2006 the Kalamazoo City Commission adopted a resolution naming the City
Clerk and Deputy City Clerk as City officials authorized to make application for permits during
the year 2007. In order for the Clerk’s Office to process banner requests from non-profit
organizations in 2008, it is necessary for the City Commission to adopt the attached
Performance and Indemnification Resolution.

COMMUNITY RESOURCES CONSULTED

The City of Kalamazoo administers the state’s regulations for hanging banners in the public
right-of-way as a service to the community. Many non-profit organizations have taken
advantage of this service and have expressed support for the continued use of the
Westnedge overpass for hanging banners.



              Kalamazoo City Clerk's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι269.337.8792
                                                 Fax: 269.337.8494
Commission Agenda Report - South Westnedge Pedestrian Overpass
Page 2


FISCAL IMPACT

MDOT does not charge a fee to apply for permits to display banners on the South
Westnedge overpass. The cost to the City for processing banner applications is offset by the
collection of banner application fees. Historically this revenue has either equaled or slightly
surpassed the City’s processing costs.

ALTERNATIVES

At least two alternatives exist. The City Commission could designate someone other than
the City Clerk and the Deputy City Clerk as authorized officials to apply to the state for
permits to display banners on the South Westnedge pedestrian overpass. However, when
the jurisdiction of the street/overpass changed in 1998, no other city official was identified
to assume this responsibility.

Alternatively, if the City Commission no longer desires to see banners displayed on the
overpass, no action is necessary. If this is the case, the Clerk's Office will stop accepting
applications to display banners immediately. However, several banner applications have
already been accepted for 2008.

ATTACHMENTS

Resolution




              Kalamazoo City Clerk's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι269.337.8792
                                                 Fax: 269.337.8494
                                               Resolution 07-

 Michigan Department
  Of Transportation    PERFORMANCE AND INDEMNIFICATION
    2207B (01/01)
                                RESOLUTION
This Performance and Indemnification Resolution is required by the Michigan Department of Transportation for
purposes of issuing to a municipal utility an ''Individual Permit for Use of State Trunkline Right of Way'' (form 2205),
or an ''Annual Application and Permit for Miscellaneous Operations Within State Trunkline Right of Way'' (form
2205B).

RESOLVED WHEREAS, the _____________________________________________________________
                            Kalamazoo City Commission
                                                                   (city, village, township, etc.)


hereinafter referred to as the ''GOVERNMENTAL BODY,'' periodically applies to the Michigan Department
of Transportation, hereinafter referred to as the "DEPARTMENT," for permits, referred to as ''PERMIT,''
to construct, operate, use and/or maintain utility or other facilities, or to conduct other activities, on, over,
and under state trunkline right of way at various locations within and adjacent to its corporate limits;

NOW THEREFORE, in consideration of the DEPARTMENT granting such PERMIT the
GOVERNMENTAL BODY agrees that:

1. It will fulfill all permit requirements and will indemnify, save harmless, represent and defend the State
of Michigan, Michigan Transportation Commission, and the DEPARTMENT and all officers, agents,
employees and those contracting governmental bodies performing permit activities for the DEPARTMENT
according to a maintenance contract:

        a. from any and all claims and losses occurring or resulting to any and all persons, firms, or
corporations furnishing or supplying work, services, materials, or supplies to the GOVERNMENTAL BODY
in connection with the presence of the GOVERNMENTAL BODY's facilities and/or its installation,
construction, operation, or maintenance activities which are being performed under the terms of the PERMIT
on, over, and/or under the state trunkline right of ways; and

          b. from any and all claims of every kind for injuries to, or death of, any and all persons, and for loss
of or damage to property, and environmental damage or degradation, and from attorney's fees and related
costs arising out of, under, or by reason of the presence of the GOVERNMENTAL BODY's facilities and/or
its installation, construction, operation, or maintenance activities which are being performed under the terms
of the PERMIT on, over, and/or under the state trunkline right of way, except claims resulting from the sole
negligence or willful acts or omissions of said DEPARTMENT performing permit activities.

        c. from any and all claims made by any and all persons, firms, or corporations furnishing or
supplying materials, supplies, work, or services on, over, and/or under the State trunkline right of way
pursuant to an agreement with the State of Michigan, the DEPARTMENT and/or the Michigan
Transportation Commission, as a result of the GOVERNMENTAL BODY's failure to move or otherwise
relocate its facilities in a timely manner after being requested to do so by the DEPARTMENT.

2. Any work performed for the GOVERNMENTAL BODY by a contractor or subcontractor will be solely
as a contractor for the GOVERNMENTAL BODY and not as a contractor or agent of the DEPARTMENT.
Any claims by any contractor or subcontractor will be the sole responsibility of the GOVERNMENTAL
BODY. The DEPARTMENT shall not be subject to any obligations or liabilities by vendors and contractors
of the GOVERNMENTAL BODY, or their subcontractors or any other person not a party to the PERMIT
without its specific prior written consent and notwithstanding the issuance of the PERMIT.
2207B (01/01)


3. The GOVERNMENTAL BODY shall take no wrongful action or conduct, which arises either directly
or indirectly out of its obligations, responsibilities, and duties under the PERMIT which results in claims
being asserted against or judgment being imposed against the State of Michigan, the Michigan Transportation
Commission, the DEPARTMENT, and all officers, agents and employees thereof and those contracting
governmental bodies performing permit activities for the DEPARTMENT and all officers, agents, and
employees thereof, pursuant to a maintenance contract. In the event that the same occurs, for the purposes
of the PERMIT, it will be considered as a breach of the PERMIT thereby giving the State of Michigan, the
DEPARTMENT, and/or the Michigan Transportation Commission a right to seek and obtain any necessary
relief or remedy, including, but not by way of limitation, a judgment for money damages.

4. It will, by its own volition and/or request by the DEPARTMENT, promptly restore and/or correct physical
or operating damages to any State trunkline right of way resulting from the installation construction,
operation and/or maintenance of the GOVERNMENTAL BODY'S facilities according to a PERMIT issued
by the DEPARTMENT.

5. With respect to any activities authorized by PERMIT, when the COMPANY requires insurance on its own
or its contractor's behalf it shall also require that such policy include as named insured the State of Michigan,
the Transportation Commission, the DEPARTMENT, and all officers, agents, and employees thereof and
those governmental bodies performing permit activities for the DEPARTMENT and all officers, agents, and
employees thereof, pursuant to a maintenance contract.

6. The incorporation by the DEPARTMENT of this indemnification resolution as part of a PERMIT does
not prevent the DEPARTMENT from requiring additional performance security or insurance before issuance
of a PERMIT.

7. This indemnification resolution shall continue in force from this date until cancelled by the
GOVERNMENTAL BODY or the DEPARTMENT with no less than thirty (30) days prior written notice
to the other party. It will not be cancelled or otherwise terminated by the GOVERNMENTAL BODY with
regard to any PERMIT which has already been issued or activity which has already been undertaken.

BE IT FURTHER RESOLVED, that the following position(s) are authorized to apply to the Michigan
Department of Transportation for the necessary permit to work within state trunkline right of way on behalf
of the GOVERNMENTAL BODY.
        Name                                    And/or                            Title
____________________________________________________________________________________
Scott A. Borling, City Clerk
____________________________________________________________________________________
Virginia Vander Roest, Deputy City Clerk
____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

I HEREBY CERTIFY that the foregoing is a true copy of a resolution adopted by
                                       City Commission
the __________________________________________________________________________________
                                                (Name of Board, etc)
of the ____________________________________________________ of _________________________
                              City of Kalamazoo                        Kalamazoo County
               (Name of GOVERNMENTAL BODY)                                 (County)
at a _________________________________________ meeting held on the ________________ day of
                          Regular                                          17th

__________________ A.D. ________________.
     December                 2007

Signed _________________________________                       Title ___________________________________
                                                                                   City Clerk
                                                                                                         Date:   12/17/07
            Commission                                                                                            Item G10
            Agenda Report
            C i t y of K a l a m a z o o


TO:           Mayor Hopewell, Vice Mayor McKinney and City Commissioners

FROM:         Scott A. Borling, City Clerk

DATE:         December 7, 2007

SUBJECT:      Adoption of the 2008 City Commission Regular Meeting Schedule


RECOMMENDATION

It is recommended that the City Commission adopt a RESOLUTION approving and
establishing the schedule of regular City Commission meetings for the 2008 calendar year.

BACKGROUND

Both the Open Meetings Act and City Commission Rule #1 require the Commission to
establish a schedule of its regular meetings for the calendar year. In addition, Rule #1
specifies the Commission will hold its Regular Business Meetings on the first, third and fifth
Mondays of the month. Finally, Section 8(a) of the City Charter states, “…the City
Commission shall meet at such times as may be prescribed by ordinance or resolution,
except that they shall regularly meet not less than once every two weeks.” The attached
schedule has been drafted and submitted to meet these requirements. In addition to
Business Meetings, the proposed 2008 schedule also includes Work Sessions on the second
Mondays of each month and Committee of the Whole Meetings at 7:30 a.m. on the Fridays
prior to the scheduled Business Meetings. The following exceptions have been made to
these general parameters due to holidays and other considerations:

       •      the Business Meetings that should take place on January 21st and September
              1st have been moved to January 22nd and September 2nd due to the Martin
              Luther King Jr. and Labor Day holidays, respectively.

       •      a Committee of the Whole Meeting has been scheduled for January 3rd instead
              of January 4th. This move would create a 14-day period between the Special
              Meeting on December 20th and the Committee of the Whole Meeting on
              January 3rd, thereby fulfilling the Charter requirement for meeting frequency
              while avoiding a meeting near the New Years holiday.

       •      the Committee of the Whole Meeting that should be scheduled for July 4th has
              been scheduled for July 3rd due to the Independence Day holiday.



             Kalamazoo City Clerk's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8792
                                                 Fax: (269) 337-8494
Commission Agenda Report – 2007 City Commission Meeting Schedule
Page 2


      •      Committee of the Whole meetings have not been scheduled for November 28th
             and December 26th due to the Thanksgiving and Christmas holidays.

The recommendation to adopt a regular meeting schedule does not interfere with the ability
of the Kalamazoo City Commission to hold special meetings or work sessions when
necessary.

COMMUNITY RESOURCES CONSULTED

No community resources were consulted.

FISCAL IMPACT

There is no fiscal impact associated with this recommendation.

ALTERNATIVES

The City Commission may choose to schedule additional meetings or amend the attached
schedule. However, the City Administration is confident all matters which require City
Commission action can be conducted in an efficient manner using the proposed schedule
of regular meetings. The City Commission may amend its meeting schedule at any time
during the year if it determines that the number of meetings should be reduced or
increased.

ATTACHMENT

Resolution with Proposed 2008 City Commission Meeting Schedule




             Kalamazoo City Clerk's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8792
                                                 Fax: (269) 337-8494
                          CITY OF KALAMAZOO, MICHIGAN

                                 RESOLUTION NO. 07-


A RESOLUTION APPROVING AND ESTABLISHING THE SCHEDULE OF REGULAR
      CITY COMMISSION MEETINGS FOR THE 2008 CALENDAR YEAR

     Minutes of a regular meeting of the City Commission of the City held on
December 17, 2007, at or after 7:00 p.m., local time, at City Hall.


PRESENT: Commissioners:

ABSENT: Commissioners:


       WHEREAS, MCL 15.265(2) requires that a public body post notice of the dates,
times and places of its regular meetings within 10 days of its first meeting in a calendar
year; and

       WHEREAS, City Commission Rule #1 states the City Commission shall establish
and publish a schedule of regular meetings that are to be held throughout the calendar
year prior to January 1st of each year.

      NOW, THEREFORE, BE IT RESOLVED, that the Kalamazoo City Commission
hereby approves and establishes the attached schedule of meetings as its Regular
Meeting Schedule for the 2008 calendar year; and

      BE IT FURTHER RESOLVED, that the City Clerk is directed to post the Regular
Meeting Schedule in compliance with the provisions of MCL 15.264-265; and

       BE IT FURTHER RESOLVED, that the City Commission reserves the right to
modify its Regular Meeting Schedule at any time, subject to the noticing requirements
specified in MCL 15.265(3).

      The above resolution was offered by ______________________and supported
by _______________________.


AYES: Commissioners:

NAYS: Commissioners:

ABSTAIN: Commissioners:


RESOLUTION DECLARED ADOPTED.
                                  CERTIFICATE

The forgoing is a true and complete copy of a resolution adopted by the City
Commission of the City of Kalamazoo at a regular meeting held on December 17, 2007.
Public notice was given and the meeting was conducted in full compliant with the
Michigan Open Meetings Act (PA 267,1976). Minutes of the meeting will be available
as required by the Act.



                                               ______________________________
                                                        Scott A. Borling, City Clerk
                         Kalamazoo City Commission
                       Proposed 2008 Meeting Schedule

          January                            February                            March
 3 Committee of the Whole           1   Committee of the Whole         3   Business Meeting
 7   Business Meeting               4   Business Meeting              10   Work Session
14   Work Session                  11   Work Session                  14   Committee of the Whole
18   Committee of the Whole        15   Committee of the Whole        17   Neighborhood Meeting
22   Business Meeting              18   Neighborhood Meeting          17   Business Meeting
                                   18   Business Meeting              28   Committee of the Whole
                                   29   Committee of the Whole        31   Business Meeting

           April                               May                               June
 4   Committee of the Whole         2   Committee of the Whole         2   Business Meeting
 7   Business Meeting               5   Business Meeting               9   Work Session
14   Work Session                  12   Work Session                  13   Committee of the Whole
18   Committee of the Whole        16   Committee of the Whole        16   Neighborhood Meeting
21   Neighborhood Meeting          19   Neighborhood Meeting          16   Business Meeting
21   Business Meeting              19   Business Meeting              27   Committee of the Whole
                                   30   Committee of the Whole        30   Business Meeting

            July                             August                            September
 3   Committee of the Whole         1   Committee of the Whole         2   Business Meeting
 7   Business Meeting               4   Business Meeting               8   Work Session
14   Work Session                  11   Work Session                  12   Committee of the Whole
18   Committee of the Whole        15   Committee of the Whole        15   Neighborhood Meeting
21   Neighborhood Meeting          18   Neighborhood Meeting          15   Business Meeting
21   Business Meeting              18   Business Meeting              26   Committee of the Whole
                                   29   Committee of the Whole        29   Business Meeting

          October                           November                           December
 3   Committee of the Whole         3   Business Meeting               1   Business Meeting
 6   Business Meeting              10   Work Session                   8   Work Session
13   Work Session                  14   Committee of the Whole        12   Committee of the Whole
17   Committee of the Whole        17   Neighborhood Meeting          15   Neighborhood Meeting
20   Neighborhood Meeting          17   Business Meeting              15   Business Meeting
20   Business Meeting                                                 29   Business Meeting
31   Committee of the Whole




                                        Times and Locations

                Business Meetings - 7:00 p.m. in the City Commission Chambers
                   Work Sessions - 7:00 p.m. in the City Hall Community Room
         Committee of the Whole Meetings - 7:30 a.m. in the City Hall Community Room
              Neighborhood Meetings - 6:00 p.m. in the City Hall Community Room
        Meetings in italics indicate a departure from the normal schedule due to a holiday.
                                                                                Date: 12/17/07
         Commission
                                                                                       Item G11
         Agenda Report
         City of Kalamazoo

TO:           Mayor Hopewell, Vice Mayor McKinney, City Commissioners

FROM:         Scott A. Borling, City Clerk
              Prepared By: Barbara Blissett, Accounts Coordinator/Secretary

DATE:         November 19, 2007

SUBJECT:      Resolution of Non-Profit Status for Charitable Gaming License


RECOMMENDATION

It is recommended that the City Commission adopt a RESOLUTION recognizing the
Volunteer Services of Greater Kalamazoo as a non-profit organization operating in the
community for the purpose of obtaining a charitable gaming license.

BACKGROUND

Volunteer Services of Greater Kalamazoo is planning to hold a raffle during their annual
fundraising event for the purpose of funding its programs and services. Volunteer
Services of Greater Kalamazoo’s Mission Statement is “To improve our community by
fostering effective volunteerism in order to strengthen nonprofit organizations.” Volunteer
Services of Greater Kalamazoo has applied for a charitable gaming license through the
Michigan Lottery Bureau for the purpose of conducting licensed gaming events as
allowed by Act 382 of the Public Acts of 1972, as amended. The State requires the local
unit of government to establish the applicant’s non-profit status through the adoption of a
“Local Governing Body Resolution for Charitable Gaming Licenses. Volunteer Services
of Greater Kalamazoo has submitted a copy of a letter from the Internal Revenue Service
validating the organization’s 501(c)(3) status.

FISCAL IMPACT

There is no fiscal impact.

ALTERNATIVES

The City Commission could deny the request. However, since Volunteer Services of
Greater Kalamazoo has submitted sufficient documentation to show its non-profit status,
this action is not recommended.

ATTACHMENTS

Letter of request
Local Governing Body Resolution for Charitable Gaming License
Charitable Gaming Division

Box 30023, Lansing, MI 48909

OVERNIGHT DELIVERY:

101 E. Hillsdale, Lansing MI 48933

                                                             07-
                                               RESOLUTION _________
(517) 335-5780

www.michigan.gov/cg


  LOCAL GOVERNING BODY RESOLUTION FOR CHARITABLE GAMING LICENSES
                                                        (Required by MCL.432.103(9))




          Regular                                       Kalamazoo City Commission
 At a _______________________________ meeting of the _____________________________
                            REGULAR OR SPECIAL                                                 TOWNSHIP, CITY, OR VILLAGE COUNCIL/BOARD



 called to order by _____________________________________ on ______________________
                                                                                                                      DATE


      7:00 p.m.
 at______________ a.m./p.m. the following resolution was offered:
               TIME



 Moved by __________________________ and supported by ___________________________

                                                             The City of Kalamazoo
 that the request from ________________________________ of _______________________,
                                                     NAME OF ORGANIZATION                                            CITY


                        Kalamazoo
 county of ____________________________________, asking that they be recognized as a
                                           COUNTY NAME



 nonprofit organization operating in the community for the purpose of obtaining a charitable

                                       Approval
 gaming license, be considered for _________________________.
                                                                 APPROVAL/DISAPPROVAL




                                  APPROVAL                                          DISAPPROVAL
                           Yeas: ___________                                     Yeas:            ___________

                           Nays: ___________                                     Nays:            ___________
                           Absent: ___________                                   Absent:          ___________




 I hereby certify that the foregoing is a true and complete copy of a resolution offered and
                     Kalamazoo City Commission              Regular
 adopted by the ________________________________ at a ____________________________
                                  TOWNSHIP, CITY, OR VILLAGE COUNCIL/BOARD                               REGULAR OR SPECIAL


 meeting held on_________________________________.
                                                     DATE


 SIGNED: _____________________________________________________________________
                                                            TOWNSHIP, CITY, OR VILLAGE CLERK


                                                      Scott A. Borling, City Clerk
 _____________________________________________________________________________

                                                                PRINTED NAME AND TITLE


                       241 W. South Street, Kalamazoo, MI 49007
 _____________________________________________________________________________
                                                                       ADDRESS

                                                                                                                     COMPLETION: Required.

                                                                                                                     PENALTY: Possible denial of application.


                                                                                                                                     BSL-CG-1153(R7/02)
                                                                                Date: 12/17/07
         Commission
                                                                                      Item G12
         Agenda Report
         City of Kalamazoo

TO:           Mayor Hopewell, Vice Mayor McKinney, City Commissioners

FROM:         Scott A. Borling, City Clerk
              Prepared By: Barbara Blissett, Accounts Coordinator/Secretary

DATE:         November 19, 2007

SUBJECT:      Resolution of Non-Profit Status for Charitable Gaming License

RECOMMENDATION

It is recommended that the City Commission adopt a RESOLUTION recognizing Great
Lakes Acoustic Music Association as a non-profit organization operating in the community
for the purpose of obtaining a charitable gaming license.

BACKGROUND

Great Lakes Acoustic Music Association is planning to hold a door prize drawing for the
purpose of promotion, performance and preservation of music played on acoustic stringed
instruments. The group’s mission is to present American traditional music such as
bluegrass, folk, swing, blues and mountain music with the emphasis placed on educating
and involving area youth to preserve this unique American art form. Great Lakes Acoustic
Music Association has applied for a charitable gaming license through the Michigan
Lottery Bureau for the purpose of conducting licensed gaming events as allowed by Act
382 of the Public Acts of 1972, as amended. The State requires the local unit of
government to establish the applicant’s non-profit status through the adoption of a “Local
Governing Body Resolution for Charitable Gaming Licenses. Great Lakes Acoustic Music
Association has submitted a copy of a letter from the Internal Revenue Service validating
the organization’s 501(c)(3) status.

FISCAL IMPACT

There is no fiscal impact.

ALTERNATIVES

The City Commission could deny the request. However, since Great Lakes Acoustic
Music Association has submitted sufficient documentation to show its non-profit status,
this action is not recommended.

ATTACHMENTS

Letter of request
Local Governing Body Resolution for Charitable Gaming License
Charitable Gaming Division

Box 30023, Lansing, MI 48909

OVERNIGHT DELIVERY:

101 E. Hillsdale, Lansing MI 48933

                                                             07-
                                               RESOLUTION _________
(517) 335-5780

www.michigan.gov/cg


  LOCAL GOVERNING BODY RESOLUTION FOR CHARITABLE GAMING LICENSES
                                                        (Required by MCL.432.103(9))




          Regular                                       Kalamazoo City Commission
 At a _______________________________ meeting of the _____________________________
                            REGULAR OR SPECIAL                                                 TOWNSHIP, CITY, OR VILLAGE COUNCIL/BOARD



 called to order by _____________________________________ on ______________________
                                                                                                                      DATE


      7:00 p.m.
 at______________ a.m./p.m. the following resolution was offered:
               TIME



 Moved by __________________________ and supported by ___________________________

                                                             The City of Kalamazoo
 that the request from ________________________________ of _______________________,
                                                     NAME OF ORGANIZATION                                            CITY


                        Kalamazoo
 county of ____________________________________, asking that they be recognized as a
                                           COUNTY NAME



 nonprofit organization operating in the community for the purpose of obtaining a charitable

                                       Approval
 gaming license, be considered for _________________________.
                                                                 APPROVAL/DISAPPROVAL




                                  APPROVAL                                          DISAPPROVAL
                           Yeas: ___________                                     Yeas:            ___________

                           Nays: ___________                                     Nays:            ___________
                           Absent: ___________                                   Absent:          ___________




 I hereby certify that the foregoing is a true and complete copy of a resolution offered and
                     Kalamazoo City Commission              Regular
 adopted by the ________________________________ at a ____________________________
                                  TOWNSHIP, CITY, OR VILLAGE COUNCIL/BOARD                               REGULAR OR SPECIAL


 meeting held on_________________________________.
                                                     DATE


 SIGNED: _____________________________________________________________________
                                                            TOWNSHIP, CITY, OR VILLAGE CLERK


                                                      Scott A. Borling, City Clerk
 _____________________________________________________________________________

                                                                PRINTED NAME AND TITLE


                       241 W. South Street, Kalamazoo, MI 49007
 _____________________________________________________________________________
                                                                       ADDRESS

                                                                                                                     COMPLETION: Required.

                                                                                                                     PENALTY: Possible denial of application.


                                                                                                                                     BSL-CG-1153(R7/02)
            Commission                                                                                     Date:   12/17/07
                                                                                                                    Item G13
            Agenda Report
            C i t y of K a l a m a z o o



TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Randall S. Schau, Acting City Attorney

DATE:         December 6, 2007

SUBJECT:      Amendment to Water Tower Agreements with Verizon Wireless


RECOMMENDATION

It is recommended that the City Commission authorize the City Manager to execute Second
Amendments as they relate to existing water tower lease agreements with Verizon Wireless
for Mt. Olivet, N. Dartmouth, and Edgemoor.

BACKGROUND

Verizon Wireless currently has agreements that allow it to place equipment below and on
the water towers located at Edgemoor, N. Dartmouth, and Mt. Olivet. As to the space it is
entitled to occupy on the ground, Verizon has determined that it needs to replace its
existing equipment shed with a somewhat larger equipment shed. The larger shed will allow
it to upgrade its equipment, add a generator to provide backup electricity, and install
additional soundproofing so that neighbors are not disturbed by the noise that is created
within the shed. The “Second Amendment” for each water tower allows for a larger area on
the ground and a corresponding increase in rent (from $18,480 per year to $23,960 per
year).

Public Services has reviewed and approved the proposed expansion and the amount of
rent. All of the other terms and conditions of the existing agreements remain unchanged.

COMMUNITY RESOURCES CONSULTED

None.

FISCAL IMPACT

For each site, the City will receive an additional $5,480 per year.




            Kalamazoo City Attorney’s Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8185
                                                 Fax: (269) 337-8922
Commission Agenda Report – Amendment to Water Tower Agreements
Page 2


ALTERNATIVES

The City Commission could decline to authorize the City Manager to execute the
documents, but doing so would prevent Verizon from making its desired upgrades and
would likely cause it to seek other sites on which to place its equipment.

ATTACHMENT

For each site, a Second Amendment to Water Tower Option and Lease Agreement.




           Kalamazoo City Attorney's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 269.337.8185
                                                Fax: 269.337.8922
A
                                                                    Lessee Site Id # 2710 – Edgemoor
                                                                                           JC2476-07
                                                                        Draft Date: October 26, 2007



 SECOND AMENDMENT TO WATER TOWER OPTION AND LEASE AGREEMENT
                        (1313 Edgemoor)

This Second Amendment to Water Tower Option and Lease Agreement (“Second Amendment”)
is entered into this _______ day of _____________, 200__, between the CITY OF
KALAMAZOO (the “City”), whose address is 241 W. South Street, Kalamazoo, Michigan,
49007, and New Par, a Delaware partnership d/b/a Verizon Wireless By: Verizon Wireless
(VAW) LLC, its general partner (“Lessee”), whose address is One Verizon Way, Mailstop
4AW100, Basking Ridge, New Jersey, 07920.

WHEREAS, the City and Cricket Michigan Property Company entered into that certain Water
Tower Option and Lease Agreement (the “Agreement”), dated October 1, 2001, as amended, in
2003, to lease a portion of the City’s water tower in Kalamazoo County located at 1313
Edgemoor Avenue, Kalamazoo, Michigan 49004 for the transmission and reception of radio
communication signals and for the construction, installation, operation, maintenance, repair,
removal or replacement of related facilities, antennas, microwave dishes, global positioning
system antennas, equipment shelters and/or cabinets and related activities.

WHEREAS, on or about August 3, 2005, Cricket Michigan Property, a Delaware Corporation,
assigned its interest in the Agreement to Cellco Partnership, a Delaware general partnership,
doing business as Verizon Wireless. Thereafter, Cellco Partnership assigned its interest in the
Water Tower Option and Lease Agreement to Lessee, a wholly owned subsidiary.

NOW THEREFORE, in consideration of the terms, conditions and mutual covenants set forth
below, the City and Lessee agree as follows:

       1. The City and Lessee wish to replace Paragraph 1(b) of Section III (“Lease
          Agreement”) within the Water Tower Option and Lease Agreement with the
          following: To construct and place an equipment shelter with permanent generator
          inside and measuring 12’ x 26’ along with a sound wall on a concrete slab not to
          exceed 12’ x 26’, along with enough space around the building to account for HVAC
          unit overhang as well as concrete stoop(s) and sound wall around the building as
          noted on Exhibit A-1. Lessee’s leased space will not exceed 13.5’ x 29.5’.

       2. The City and Lessee wish to replace Exhibit A of the Agreement as first called out in
          Paragraph 1 of Section III (“Lease Agreement”) of the Water Tower Option and
          Lease Agreement with “Exhibit A-1” attached hereto.

       3. The City and Lessee wish to replace Exhibit B of the Agreement as first called out in
          Paragraph 3 of Section III (“Lease Agreement”) of the Water Tower Option and
          Lease Agreement with “Exhibit B-1” attached hereto.

       4. The City and Lessee wish to amend Paragraph 5 of Section III (“Lease Agreement”)
          of the Water Tower Option and Lease Agreement to replace the rent schedule with
          the following: The annual rental payments shall increase according to the following
          schedule:
                                               1
                                                                     Lessee Site Id # 2710 – Edgemoor
                                                                                            JC2476-07
                                                                         Draft Date: October 26, 2007

               a.   Beginning October 1, 2007, annual rent is: $23,960.00;
               b.   Beginning October 1, 2011, annual rent is: $26,356.00;
               c.   Beginning October 1, 2016, annual rent is: $28,991.00;
               d.   Beginning October 1, 2021, annual rent is: $31,890.00;
               e.   Beginning October 1, 2026, annual rent is: $35,079.00.


       5. The City and Lessee wish to amend Paragraph 10 of Section III (“Lease Agreement”)
          of the Water Tower Option and Lease Agreement to replace the notice address for
          Lessee with the following:

                       New Par d/b/a Verizon Wireless
                       180 Washington Valley Drive
                       Bedminster, New Jersey 07921
                       Attn: Network Real Estate

       6. Except as expressly set forth in this Second Amendment, all terms and conditions of
          the Water Tower Option and Lease Agreement, as amended previously, shall remain
          unchanged and in full force and effect, specifically including requirements set forth in
          paragraph 17-k regarding noise.

       7. In the event of any conflict between the terms and conditions of the Water Tower
          Option and Lease Agreement, as amended previously, and this Second Amendment,
          the terms and conditions of this Second Amendment shall control.

       8. Lessee’s activities shall be limited to those that involve FCC approved frequencies.
          Any other types of use of its equipment must be approved in writing by the City.

[Remainder of this page intentionally left blank; signatures appear on the following page]




                                                2
                                                            Lessee Site Id # 2710 – Edgemoor
                                                                                   JC2476-07
                                                                Draft Date: October 26, 2007



IN WITNESS WHEREOF, the Parties have executed this Second Amendment to the Water
Tower Option and Lease Agreement as of the date and year set forth above.


The City:
City of Kalamazoo, a Michigan Municipal Corporation


By:


Its:

Date:


Lessee:
New Par, a Delaware partnership d/b/a Verizon Wireless
By: Verizon Wireless (VAW) LLC, its general partner

By:
        Beth Ann Drohan
Its:    Midwest Area Vice President – Network

Date:




                                             3
                                                                     Lessee Site Id # 2710 – Edgemoor
                                                                                            JC2476-07
                                                                         Draft Date: October 26, 2007
                                        EXHIBIT A-1

                                  Description of Equipment

To the Second Amendment to Water Tower Option and Lease Agreement Dated the _____ day
of ______________, 200__, between the City of Kalamazoo as Lessor and New Par d/b/a
Verizon Wireless as Lessee.

                                  Site Plan and Equipment

Approximately ______ square feet of ground space of that property described in Exhibit B,
including, but not limited to the following:

          •   PCS and cellular antennas, microwave and GPS equipment
          •   One 12’ x 26’ Equipment Shelter with permanent generator inside and A/C units
              and concrete stoops and a sound wall outside
          •   One Power Panel
          •   One Telco Box


                              See also attached Site Plan / Survey




                                               4
                                                                           Lessee Site Id # 2710 – Edgemoor
                                                                                                  JC2476-07
                                                                               Draft Date: October 26, 2007
                                       EXHIBIT B-1
                              LEGAL DESCRIPTION OF PROPERTY

To the Second Amendment to Water Tower Option and Lease Agreement Dated the _____ day
of ______________, 200__, between the City of Kalamazoo as Lessor and New Par d/b/a
Verizon Wireless as Lessee.

LEGAL DESCRIPTION OF OVERALL PARCEL
(Taken from Title Commitment)

Land situated in the City of Kalamazoo, County of Kalamazoo, State of Michigan, described as follows:

Part of the Southwest 1/4 of Section 28, Town 2 South, Range 11 West; City of Kalamazoo, Kalamazoo
County, Michigan, more particularly described as follows: Beginning at a point on the southerly line of
Edgemoor Avenue, said point being 636.5 feet Northerly of the south City limits (which is the south East
and West 1/8 line) and 661.17 feet Westerly of the North and South 1/4 line of Section 28, town 2 South,
Range 11 West; running thence Southerly 264.0 feet on a line passing through the point of beginning and
a point on the south City limits (south East and West 1/8 line of Section 28) which is 660.1 feet West of
the southeast corner of the Northeast 1/4 of the Southwest 1/4 of said Section 28; thence Easterly 120.0
feet on a line parallel with the southerly line of Edgemoor Avenue; thence Northerly 120.0 feet on a line
parallel to the line that passes through the point of beginning and the point on the south East and West
1/8 line of Section 28, which is 660.1 feet West of the Southeast corner of the Northeast 1/4 of the
Southwest 1/4 of Section 28; thence Westerly on a line parallel with the southerly line of Edgemoor
Avenue to a point that is 15.0 feet Easterly of the line that passes through the point of beginning and a
point on the south East and West 1/8 line of Section 28, which is 660.1 feet West of the Southeast corner
of the Northeast 1/4 of the Southwest 1/4 of Section 28; thence northerly 144.0 feet to the southerly line
of Edgemoor Avenue; thence Westerly 15.0 feet on the southerly line of Edgemoor Avenue to the place of
beginning.

LEGAL DESCRIPTION OF LEASE AREA
(Lessee)

Commencing at the Northwest corner of Lot 5 of the Plat of “Alta Vista” located in the NE 1/4 of the SW
1/4 of Section 28, T2S, R11W, City of Kalamazoo, Kalamazoo County, Michigan, as recorded in Liber 20
of plats, page 36, Kalamazoo County records; thence S 00°13’30” W 117.00 feet along the west line of
said Lot 5; thence N 89°29’00” W 7.00 feet to the POINT OF BEGINNING:

          thence S 00°31’00” W 13.50 feet;
          thence N 89°29’00” W 29.50 feet;
          thence N 00°31’00” E 13.50 feet;
          thence S 89°29’00” E 29.50 feet;
          to the POINT OF BEGINNING; being a part of the SW 1/4 of Section 28, T2S, R11W, City of
Kalamazoo, Kalamazoo County, Michigan; containing 398.25 sq. ft.; and subject to easements and
restrictions of record, if any.




                                                    5
                                                                    Lessee Site Id # 2721 – Dartmouth
                                                                                            JC2487-07
                                                                       Draft Date: November 9, 2007



 SECOND AMENDMENT TO WATER TOWER OPTION AND LEASE AGREEMENT
                      (549 N. Dartmouth Street)

This Second Amendment to Water Tower Option and Lease Agreement (“Second Amendment”)
is entered into this _______ day of _____________, 200__, between the CITY OF
KALAMAZOO (the “City”), whose address is 241 W. South Street, Kalamazoo, Michigan,
49007, and New Par, a Delaware partnership d/b/a Verizon Wireless By: Verizon Wireless
(VAW) LLC, its general partner (“Lessee”), whose address is One Verizon Way, Mailstop
4AW100, Basking Ridge, New Jersey, 07920.

WHEREAS, the City and Lessee entered into that certain Water Tower Option and Lease
Agreement (the “Agreement”), dated October 1, 2001, as amended by that certain Amendment
Dated July 3, 2003 to Lease Agreement, to lease a portion of the City’s water tower in
Kalamazoo County located at 549 N. Dartmouth, Kalamazoo, Michigan 49006 for the
transmission and reception of radio communication signals and for the construction, installation,
operation, maintenance, repair, removal or replacement of related facilities, antennas, microwave
dishes, global positioning system antennas, equipment shelters and/or cabinets and related
activities.

WHEREAS, on or about August 3, 2005, Cricket Michigan Property, a Delaware Corporation,
assigned its interest in the Agreement to Cellco Partnership, a Delaware general partnership,
doing business as Verizon Wireless. Thereafter, Cellco Partnership assigned its interest in the
Water Tower Option and Lease Agreement to Lessee, a wholly owned subsidiary.

NOW THEREFORE, in consideration of the terms, conditions and mutual covenants set forth
below, the City and Lessee agree as follows:

       1. The City and Lessee wish to replace Paragraph 1(b) of Section III (“Lease
          Agreement”) within the Water Tower Option and Lease Agreement with the
          following: To construct and place an equipment shelter with permanent generator
          inside and measuring 12’ x 26’ along with a sound wall on a concrete slab not to
          exceed 12’ x 26’, along with enough space around the building to account for HVAC
          unit overhang as well as concrete stoop(s) and sound wall around the building as
          noted on Exhibit A-1. Lessee’s leased space will not exceed 13’ x 32’.

       2. The City and Lessee wish to replace Exhibit A of the Agreement as first called out in
          Paragraph 1 of Section III (“Lease Agreement”) of the Water Tower Option and
          Lease Agreement with “Exhibit A-1” attached hereto.

       3. The City and Lessee wish to replace Exhibit B of the Agreement as first called out in
          Paragraph 1 of Section III (“Lease Agreement”) of the Water Tower Option and
          Lease Agreement with “Exhibit B-1” attached hereto.

       4. The City and Lessee wish to amend Paragraph 5 of Section III (“Lease Agreement”)
          of the Water Tower Option and Lease Agreement to replace the rent schedule with


                                               1
                                                                    Lessee Site Id # 2721 – Dartmouth
                                                                                            JC2487-07
                                                                       Draft Date: November 9, 2007
           the following: The annual rental payments shall increase according to the following
           schedule:

              a.   Beginning October 1, 2007, annual rent is $23,960.00;
              b.   Beginning October 1, 2011, annual rent is $26,356.00;
              c.   Beginning October 1, 2016, annual rent is $28,991.00;
              d.   Beginning October 1, 2021, annual rent is $31,890.00;
              e.   Beginning October 1, 2026, annual rent is $38,586.00.

       5. The City and Lessee wish to amend Paragraph 10 of Section III (“Lease Agreement”)
          of the Water Tower Option and Lease Agreement to replace the notice address for
          Lessee to the following:

                      New Par d/b/a Verizon Wireless
                      180 Washington Valley Drive
                      Bedminster, New Jersey 07921
                      Attn: Network Real Estate

       6. Except as expressly set forth in this Second Amendment, all terms and conditions of
          the Water Tower Option and Lease Agreement, as amended previously, shall remain
          unchanged and in full force and effect, specifically including requirements set forth in
          Paragraph 17-k regarding noise.

       7. In the event of any conflict between the terms and conditions of the Water Tower
          Option and Lease Agreement, as amended previously, and this Second Amendment,
          the terms and conditions of this Second Amendment shall control.

       8. Lessee’s activities shall be limited to those that involve FCC approved frequencies.
          Any other types of use of its equipment must be approved in writing by the City.


[Remainder of this page intentionally blank; signatures appear on the following page.]




                                                2
                                                           Lessee Site Id # 2721 – Dartmouth
                                                                                   JC2487-07
                                                              Draft Date: November 9, 2007
IN WITNESS WHEREOF, the Parties have executed this Second Amendment to the Water
Tower Option and Lease Agreement as of the date and year set forth above.


The City:
City of Kalamazoo, a Michigan Municipal Corporation


By:


Its:

Date:


Lessee:
New Par, a Delaware partnership d/b/a Verizon Wireless
By: Verizon Wireless (VAW) LLC, its general partner

By:
        Beth Ann Drohan
Its:    Midwest Area Vice President – Network

Date:




                                             3
                                                                   Lessee Site Id # 2721 – Dartmouth
                                                                                           JC2487-07
                                                                      Draft Date: November 9, 2007
                                        EXHIBIT A-1

                                   Description of Equipment

To the Second Amendment to Water Tower Option and Lease Agreement Dated the _____ day
of ______________, 200__, between the City of Kalamazoo as Lessor and New Par d/b/a
Verizon Wireless as Lessee.

                                  Site Plan and Equipment

Approximately 390 square feet of ground space of that property described in Exhibit B,
including, but not limited to the following:

           •   PCS and cellular antennas, microwave and GPS equipment
           •   One 12’ x 26’ Equipment Shelter with permanent generator inside and A/C units
               and concrete stoops and a sound wall outside
           •   One Power Panel
           •   One Telco Box




                                               4
                                                                            Lessee Site Id # 2721 – Dartmouth
                                                                                                    JC2487-07
                                                                               Draft Date: November 9, 2007
                                       EXHIBIT B-1
                              LEGAL DESCRIPTION OF PROPERTY

To the Second Amendment to Water Tower Option and Lease Agreement Dated the _____ day
of ______________, 200__, between the City of Kalamazoo as Lessor and New Par d/b/a
Verizon Wireless as Lessee.

LEGAL DESCRIPTION OF OVERALL PARCEL
(Taken from Title Commitment & Other Documents)

Land situated in the Township of Kalamazoo, County of Kalamazoo, State of Michigan, described as
follows:

PARCEL 1: Beginning at the Northeast corner of Lot 28, “Pinehurst”, according to the Plat thereof as
recorded in Liber 9 of Plats, page 27, Kalamazoo County records, Section 17, Town 2 South, Range 11
West; running thence N 88°53’ W along the north line of said Lot, 57.75 feet; thence N 0°8’ W 94.5 feet;
thence Easterly 57.75 feet to the west line of “Lenox Park”, according to the Plat thereof as recorded in
Liber 7 of Plats on page 32, Kalamazoo County records; thence S 0°8’ E 95 feet to the place of beginning.

PARCEL 2: Lot 1 and the West 30 feet of Lot 2 of Block 1, “Lenox Park”, according to the Plat thereof
as recorded in Liber 7 of Plats on page 32, Kalamazoo County records; also the South 15 feet of the West
132 feet of the vacated north Street (also known as West North Street) adjacent to said Lot 1, Block 1, as
evidenced by Notice of Abandonment recorded in Liber 1280, page 117, Kalamazoo County records.

LEGAL DESCRIPTION OF LEASE AREA
(Lessee)

Commencing on the Northeast corner of Lot 28 of “Pinehurst”, a subdivision of part of NE 1/4 of Section
17, T2S, R11W, Township of Kalamazoo, Kalamazoo County, Michigan, as recorded in Liber 9 of Plats,
page 27, Kalamazoo County, records; thence N 88°53’00” W 57.76 feet along the north line of said Lot
28; thence N 00°08’00” W 49.43 feet; thence N 89°52’00” E 4.50 feet to the POINT OF BEGINNING:

        thence N 00°08’00” W 31.00 feet;
        thence N 89°52’00” E 12.50 feet;
        thence S 00°08’00” E 31.00 feet;
        thence S 89°52’00” W 12.50 feet to the POINT OF BEGINNING; being a part of the NE 1/4 of
                Section 17, T2S, R11W, Kalamazoo Township, Kalamazoo County, Michigan;
                containing 387.5 square feet; and subject to easements and restrictions of record, if any;

Together with a 25 foot wide easement for ingress, egress and public utilities, said easement is described
as follows:

Commencing on the Northwest corner of Lot 1, Block 1, “Lenox Park”, according to the Plat thereof as
recorded in Liber 7 of Plats on page 32, Kalamazoo County records, a subdivision of part of NE 1/4 of
Section 17, T2S, R11W, Kalamazoo Township, Kalamazoo County, Michigan; thence N 88°11’48” W
102.00 feet along the north line of said Lot 1; thence S 01°48’12” W 25.00 feet; thence S 88°18’48” E
102.00 feet to the east line of said Lot 1, Block 1; thence N 01°48’12” E along said east line 25.00 feet to
the point of beginning.




                                                     5
                                                                    Lessee Site Id # 2722 – Mt. Olivet
                                                                                           JC2488-07
                                                                       Draft Date: October 26, 2007



 SECOND AMENDMENT TO WATER TOWER OPTION AND LEASE AGREEMENT
                        (2634 Mt. Olivet)

This Second Amendment to Water Tower Option and Lease Agreement (“Second Amendment”)
is entered into this _______ day of _____________, 200__, between the CITY OF
KALAMAZOO (the “City”), whose address is 241 W. South Street, Kalamazoo, Michigan,
49007, and New Par, a Delaware partnership d/b/a Verizon Wireless By: Verizon Wireless
(VAW) LLC, its general partner (“Lessee”), whose address is One Verizon Way, Mailstop
4AW100, Basking Ridge, New Jersey, 07920.

WHEREAS, the City and Lessee entered into that certain Water Tower Option and Lease
Agreement (the “Agreement”), dated October 1, 2001, as amended July 2, 2003, to lease a
portion of the City’s water tower in Kalamazoo County located at 2634 Mt. Olivet Road,
Kalamazoo, Michigan 49004 for the transmission and reception of radio communication signals
and for the construction, installation, operation, maintenance, repair, removal or replacement of
related facilities, antennas, microwave dishes, global positioning system antennas, equipment
shelters and/or cabinets and related activities.

WHEREAS, on or about August 3, 2005, Cricket Michigan Property, a Delaware Corporation,
assigned its interest in the Agreement to Cellco Partnership, a Delaware general partnership,
doing business as Verizon Wireless. Thereafter, Cellco Partnership assigned its interest in the
Water Tower Option and Lease Agreement to Lessee, a wholly owned subsidiary.

NOW THEREFORE, in consideration of the terms, conditions and mutual covenants set forth
below, the City and Lessee agree as follows:

       1. The City and Lessee wish to replace Paragraph 1(b) of Section III (“Lease
          Agreement”) within the Water Tower Option and Lease Agreement with the
          following: To construct and place an equipment shelter with permanent generator
          inside and measuring 12’ x 26’ along with a sound wall on a concrete slab not to
          exceed 12’ x 26’, along with enough space around the building to account for HVAC
          unit overhang as well as concrete stoop(s) and sound wall around the building as
          noted on Exhibit A-1. Lessee’s leased space will not exceed 13.5’ x 29.5’.

       2. The City and Lessee wish to replace Exhibit A of the Agreement as first called out in
          Paragraph 1 of Section III (“Lease Agreement”) of the Water Tower Option and
          Lease Agreement with “Exhibit A-1” attached hereto.

       3. The City and Lessee wish to replace Exhibit C of the Agreement as first called out in
          Paragraph 3 of Section III (“Lease Agreement”) of the Water Tower Option and
          Lease Agreement with “Exhibit C-1” attached hereto.

       4. The City and Lessee wish to amend Paragraph 5 of Section III (“Lease Agreement”)
          of the Water Tower Option and Lease Agreement to replace the rent schedule with
          the following: The annual rental payments shall increase according to the following
          schedule:
                                               1
                                                                     Lessee Site Id # 2722 – Mt. Olivet
                                                                                            JC2488-07
                                                                        Draft Date: October 26, 2007

              a.   Beginning November 1, 2007, annual rent is $23,960.00;
              b.   Beginning November 1, 2011, annual rent is $26,356.00;
              c.   Beginning November 1, 2016, annual rent is $28,991.00;
              d.   Beginning November 1, 2021, annual rent is $31,890.00;
              e.   Beginning November 1, 2026, annual rent is $38,586.00.

       5. The City and Lessee wish to amend Paragraph 10 of Section III (“Lease Agreement”)
          of the Water Tower Option and Lease Agreement to replace the notice address for
          Lessee to the following:

                      New Par d/b/a Verizon Wireless
                      180 Washington Valley Drive
                      Bedminster, New Jersey 07921
                      Attn: Network Real Estate

       6. Except as expressly set forth in this Second Amendment, all terms and conditions of
          the Water Tower Option and Lease Agreement, as amended previously, shall remain
          unchanged and in full force and effect, specifically including requirements set forth in
          Paragraph 17-k regarding noise.

       7. In the event of any conflict between the terms and conditions of the Water Tower
          Option and Lease Agreement, as amended previously, and this Second Amendment,
          the terms and conditions of this Second Amendment shall control.

       8. Lessee’s activities shall be limited to those that involve FCC approved frequencies.
          Any other types of use of its equipment must be approved in writing by the City.


[Remainder of this page intentionally blank; signatures appear on following page]




                                                2
                                                            Lessee Site Id # 2722 – Mt. Olivet
                                                                                   JC2488-07
                                                               Draft Date: October 26, 2007

IN WITNESS WHEREOF, the Parties have executed this Second Amendment to the Water
Tower Option and Lease Agreement as of the date and year set forth above.

The City:
City of Kalamazoo, a Michigan Municipal Corporation


By:


Its:

Date:

Lessee:
New Par, a Delaware partnership d/b/a Verizon Wireless
By: Verizon Wireless (VAW) LLC, its general partner

By:
        Beth Ann Drohan
Its:    Midwest Area Vice President – Network

Date:




                                             3
                                                                    Lessee Site Id # 2722 – Mt. Olivet
                                                                                           JC2488-07
                                                                       Draft Date: October 26, 2007
                                        EXHIBIT A-1

                                   Description of Equipment

To the Second Amendment to Water Tower Option and Lease Agreement Dated the _____ day
of ______________, 200__, between the City of Kalamazoo as Lessor and New Par d/b/a
Verizon Wireless as Lessee.

                                  Site Plan and Equipment

Approximately 399 square feet of ground space of that property described in Exhibit B,
including, but not limited to the following:

           •   PCS and cellular antennas, microwave and GPS equipment
           •   One 12’ x 26’ Equipment Shelter with permanent generator inside and A/C units
               and concrete stoops and a sound wall outside
           •   One Power Panel
           •   One Telco Box




                                               4
                                                             Lessee Site Id # 2722 – Mt. Olivet
                                                                                    JC2488-07
                                                                Draft Date: October 26, 2007
                                    EXHIBIT C-1
                             EQUIPMENT CONFIGURATION

To the Second Amendment to Water Tower Option and Lease Agreement Dated the _____ day
of ______________, 200__, between the City of Kalamazoo as Lessor and New Par d/b/a
Verizon Wireless as Lessee.

The Equipment will be configured as follows:

See attached 2 pages.




                                               5
            Commission                                                                                   Date:   12/17/07
                                                                                                                  Item G14
            Agenda Report
            C i t y of K a l a m a z o o



TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Scott A. Borling, City Clerk

DATE:         December 3, 2007

SUBJECT:      Five-Year Lease Extension for the City of Kalamazoo Records Center


RECOMMENDATION

It is recommended that the City Commission approve a five-year extension of a lease with
Off-Site Kalamazoo, LLC in the annual amount of $36,900 ($184,500 over five years) to
house the City’s Records Center and Archives.

BACKGROUND

The City Records Center is the home of the Division of Records Management, Research,
and Archives (DRMRA). Located at 3003 South Burdick Street, this 9,000 ft2 facility houses
approximately 7,000 ft3 of inactive records, 6,217 maps and drawings, 4,810 photographs,
2,534 reels of microfilm and over 3,750 ft3 of books and papers in the City Archives. Office
space provides staff and citizens an area for reading and research. This facility also
contains a significant area (1,500 ft2) dedicated to the Elections Division for equipment and
supply storage.

The City has leased 3003 South Burdick Street since March of 2003. This original lease
expires on February 28, 2008, and it is recommended the City exercise its option to extend
the lease for a five-year term beginning on March 1, 2008 and expiring on February 28,
2013. This facility was designed specifically for the City’s records storage needs, and the
owners of Off-Site Kalamazoo have been very responsive to the City’s occasional issues or
concerns. All provisions of the original lease will remain in force during the extension
period with the exception of rent and utility payments. The annual rent will increase by 2%
from $36,180 to $36,900 (from $3,015 to $3,075 per month), and the annual payment for
water and sewer utilities will increase from $120 to $240.

The original lease provides that the City may terminate the lease at any time during the
extension periods for any reason upon 60 days’ written notice. Thus, the lease extension is
for a five-year period, but the City is not locked-in to this arrangement. Per City
Commission policy, the City Attorney has reviewed the lease extension and has approved
the document as to form.


             Kalamazoo City Clerk's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8792
                                                 Fax: (269) 337-8494
Commission Agenda Report – Agenda Reports
Page 2


COMMUNITY RESOURCES CONSULTED

No community resources were consulted.

FISCAL IMPACT

Under the current lease the rent payments are $36,180 per year or $3,015 per month.
Under this proposed extension the rent payments would be $36,900 per year or $3,075 per
month, with no additional increases during the term of the extension. Also, the annual
payment for water and sewer utilities will increase from $120 to $240. Rent payments for
the Records Center are included in DRMRA and Elections Division budgets for FY2008.

ALTERNATIVES

The City Commission could chose not to approve the lease extension. However, this action
is not recommended for the following reasons. First, the current facility provides an
excellent environment and location for the storage of the City’s inactive records and
archives. Second, if the City Commission does not approve the lease extension it is
unlikely that staff will be able to locate another appropriate facility, negotiate a lease or
purchase agreement, and move the contents of the Records Center to the new facility by
February 28th when the current lease with Offsite Kalamazoo expires. And third, during the
extension period the City may terminate the lease for any reason upon 60-days’ written
notice. Thus, the City will retain its options regarding the storage of inactive records and
the City Archives.

ATTACHMENTS

None




             Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 616.337.8047
                                                 Fax: 616.337.8182
            Commission                                                                                   Date:   12/17/07
                                                                                                                  Item G15
            Agenda Report
            C i t y of K a l a m a z o o


TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Scott A. Borling, City Clerk

DATE:         December 11, 2007

SUBJECT:      Appointment of City Commissioners to Boards, Commissions, Committees
              and Sub-Committees


RECOMMENDATION

It is recommended that the City Commission approve the assignment of Commissioners to
various boards, commissions, committees and sub-committees.

BACKGROUND

In order to facilitate the efficient conduct of business the City Commission organizes itself
into standing, ad-hoc and/or sub-committees. In addition, City Commissioners serve as
liaisons to various citizen advisory boards and commissions. City Commission Rule 14
requires that the Commission approve assignments to standing committees within six
weeks of the beginning of its term of office. Additionally, a majority of Commissioners must
concur with assignments to ad-hoc committees or subcommittees. Commissioners have
had an opportunity to express their preferences regarding these assignments and their
preferences have been considered by the Administrative Committee.

It is recommended that the City Commission approve the attached matrix of board,
commission, committee and subcommittee assignments.

COMMUNITY RESOURCES CONSULTED

No community resources were consulted.

FISCAL IMPACT

There is no fiscal impact associated with this recommendation.




             Kalamazoo City Clerk's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8792
                                                 Fax: (269) 337-8494
Commission Agenda Report – Appointment to Boards, Commissions, Committees
Page 2


ALTERNATIVES

The City Commission could choose not to approve the assignments or it could change
individual assignments prior to approval. However, it should be noted that City Commission
Rules requires that assignments to standing committees (the Legislative and Audit
Committees) be made within six weeks of the beginning of its term of office
(November 12th).

ATTACHMENTS

Board, Commission and Committee Assignments




            Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337.8047
                                                Fax: (269) 337.8182
                   MEMBERS OF THE 47th KALAMAZOO CITY COMMISSION
                     All terms run from November, 2007 to November, 2009
                                      Kalamazoo City Hall
                           241 W. South Street, Kalamazoo, MI 49007
                                         (269) 337-8046

Mayor Bobby J. Hopewell
       525 Stuart Avenue 49007                  388-3503 (h)   226-7037 (w)       226-5428 (f)
       hopewellb@kalamazoocity.org

Vice Mayor Hannah J. McKinney
      1425 Grand Avenue 49006                   349-6836 (h)   337-7024 (w)       337-5733 (f)
       mckinneyh@kalamazoocity.org

Commissioner Sean McCann
      614 Axtell Street 49008                   349-0654 (h)   353-6180 (w)       353-8657(f)
      mccanns@kalamazoocity.org

Commissioner Don Cooney
      1221 Vassar 49001                         349-3027 (h)   387-3190 (w)       387-3183 (f)
      cooneyd@kalamazoocity.org

Commissioner David Anderson
      513 Stuart Ave. 49007                     344-2169 (h)   553-8038 (w)       553-8040 (f)
      andersondavid@kalamazoocity.org

Commissioner Barbara Hamilton Miller
      2523 Winchell Avenue 49008                343-3339 (h)                      343-3339 (f)
      millerb@kalamazoocity.org

Commissioner Stephanie Moore
      414 W. Paterson, 49007                    762-5112 (h)   760-5969(c)
      moores@kalamazoocity.org


                         CITY COMMISSION STANDING COMMITTEES

Administrative Committee                               Internal Audit Committee
Bobby J. Hopewell                                      David Anderson
Hannah McKinney                                        Sean McCann
Sean McCann                                            Bobby J. Hopewell

Legislative Committee
Bobby J. Hopewell
Hannah McKinney
Don Cooney

                                   AD-HOC SUBCOMMITTEES

Kalamazoo Promise                        Retiree Benefits             Racial Equity
Bobby J. Hopewell                        Hannah McKinney              Hannah McKinney
David Anderson                           David Anderson               Bobby Hopewell
Barbara Miller                           Barbara Miller               Don Cooney




Revised 12/12/07
                                 ADVISORY BOARD ASSIGNMENTS

City: Citizen Advisory Boards/Commissions established by the City of Kalamazoo
Community: Board/Commissions established by entities other than the City of Kalamazoo

Mayor Hopewell:

City:              Downtown Development Authority; Friends of Recreation (alternate)
Community:         Regional Water/Wastewater Commission

Vice Mayor McKinney:

City:              Downtown Development Authority (alternate); Investment Committee of the
                   Retirement System; Perpetual Care Investment Committee
Community:         None

Commissioner McCann:

City:              Kalamazoo Historic Preservation Commission
Community:         Kalamazoo County Convention and Visitors Bureau

Commissioner Cooney:

City:              Community Development Act Advisory Committee
Community:         Community Access Center Board of Directors; Community Action Board

Commissioner Anderson:

City:              Community Relations Board; Environmental Concerns Committee
Community:         Kalamazoo Area Transportation Study Policy Committee

Commissioner Miller:

City:              Friends of Recreation Board; Employee Retirement System Board of Trustees
                   (Pension Board); Kalamazoo Municipal Golf Association; Parks and Recreation
                   Advisory Board, Planning Commission
Community:         Kalamazoo Area Transportation Study Policy Committee (alternate)

Commissioner Moore:

City:              Brownfield Redevelopment Authority;      Economic    Development    Corporation
                   Kalamazoo Transit Authority Board
Community:         None




Revised 12/12/07
            Commission                                                               Date:   12/17/07
                                                                                              Item G16
            Agenda Report
            Cityof Kalamazoo


TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Kenneth P. Collard, City Manager, ICMA-CM, P.E.
              Reviewed by: Patsy Moore, Deputy Management Services Dir/Comptroller
              Prepared By: Lisa Brown, Financial Analyst

DATE:         December 5, 2007

SUBJECT:      FY 2007 Year-end Budget Amendments


RECOMMENDATION
It is recommended that the City Commission approve amendments to the FY2007 budget in
the General Fund and the Capital Improvement Fund.

BACKGROUND
Budget managers have analyzed the respective budgets and anticipated expenditures
necessary to complete the 2007 fiscal year. In some cases budget amendments are
necessary to cover unanticipated expenses, resulting in potential overages.

General Fund
During 2007, the City reached a settlement with the Kalamazoo Public Safety Officers
Association (KPSOA) union and the Kalamazoo Police Supervisors Association (KPSA).
Since the previous contracts expired December 31, 2004 and December 31, 2005
respectively, the City agreed to make retroactive payments back to those dates. In foresight
of the settlement, the 2007 adopted budget included a salary reserve for the anticipated
payment. The actual amount of the settlement, including the retroactive payments,
exceeded the amount reserved. After considering vacancies, and other positive variances
in the Public Safety Department, an additional appropriation of $750,000 is needed.

Additionally, the City Attorney’s office incurred unexpected labor counsel and other outside
legal counsel expenses during 2007 which will require an additional appropriation of
$30,000. Lastly, the 2007 Carryforward budget included $10,000 for Parks and Recreation
Operating budget that should have been a transfer from General Fund to the CIP Fund for
the LaCrone Park Project Master Plan.

It is requested that an additional $780,000 of General Fund Working Capital be
appropriated to cover the expenses, which is available due to positive FY 2006 variances.
These adjustments were anticipated during the FY 2008 budget development, and will not
negatively affect the fund balance budgeted for FY 2008.

Capital Improvement Fund
Unexpected expenses were incurred in the General Environmental Clean-Up Project in the
successful effort to prevent the disposal of PCB contaminated sediments in the Edison
neighborhood amounting to approximately $40,000. Funds are available in the CIP Fund
Commission Agenda Report
Page 2

balance. This expenditure was anticipated in the FY 2008 budget development and will not
negatively impact the budgeted fund balance.

It is also recommended that funds previously appropriated for fire apparatus refurbishment in
the amount of $300,000 be transferred to complete the Park Street Public Safety Station for
unexpected environmental expenses; increased material costs and additional property
acquisition costs. The fire apparatus has been evaluated and can be completed in Fiscal
Year 2009. This transfer will have no fiscal impact.

Additionally, it is requested that $10,000 for the LaCrone Park Master Plan project be
appropriated as a transfer from General Fund as described under the General Fund
summary above. There is no net fiscal impact from this transfer.

FISCAL IMPACT
The fiscal impact of each amendment requested is discussed in the background of this
memo.

ALTERNATIVES
The City Commission may choose not to amend the FY 2007 budget as described.
However, if that option is chosen, the projects in the Capital Improvement fund would not
be completed and the General Fund will experience budget overruns in the affected
departments.

ATTACHMENTS
Schedules




             Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι616.337.8047
                                                 Fax: 616.337.8182
                                                   CITY OF KALAMAZOO
                                                  BUDGET AMENDMENT
Department/Division                   General Fund & CIP
Authorized by                         Patsy Moore                                     Date:      12/5/2007
Finance Approval                                                                      Date:
City Manager Approval                                                                 Date:
Is Commission Approval Required? Yes                                         Date Approved:
Explanation For Request:            Appropriate General Fund working capital to cover KPSOA/KPSA retro & increased
pay, add'l labor cousel expenses in the Attorney's office. Reappropriate funds from Parks to Non-Dept transfer to CIP,
and transfer between CIP projects. Appropriate CIP working capital to cover General Environ. Clean-Up project
I. TRANSFER FROM - APPROPRIATION ACCOUNTS:                                                 CURRENT BUDGET
                                                                              ORIGINAL          AS OF        PROPOSED
       OBJECT DESCRIPTION               TOTAL ACCOUNT NO.       AMOUNT         BUDGET         12/5/2007        BUDGET
1. Transfer to CIP                     101-299-02-000-999.495      10,000     2,410,633       2,410,633       2,420,633
1. Outside Contractual Services        101-751-01-999-845.001     (10,000)     118,134         128,809         118,809
2. Bldgs, Additions, & Improvements    cip0200006-04-974.000      300,000      300,000         300,000            0
                                               TOTAL              300,000
II. INCREASE IN BUDGET - REVENUE ACCOUNTS:                                                 CURRENT BUDGET
                                                                              ORIGINAL          AS OF        PROPOSED
       OBJECT DESCRIPTION               TOTAL ACCOUNT NO.       AMOUNT         BUDGET          12/05/07        BUDGET
1. Working Capital                     101-000-00-000-675.000     780,000     1,556,812       2,617,846       3,397,846
2. Working Capital                     495-000-00-000-675.000      40,000      (50,778)        (50,778)        (10,778)
2. Transfer from General Fund          495-000-00-000-699.101      10,000     2,410,633       2,410,633       2,420,633
                                               TOTAL              830,000
III. TOTAL SOURCES OF FUNDS (I & II)                             1,130,000
IV. TRANSFER TO - APPROPRIATION ACCOUNTS:                                                  CURRENT BUDGET
                                                                              ORIGINAL          AS OF        PROPOSED
         OBJECT DESCRIPTION             TOTAL ACCOUNT NO.       AMOUNT         BUDGET          12/05/07        BUDGET
1.   Base Pay - Full Time - KPSOA      101-345-03-000-701.007      600,000    8,868,983       8,868,983       9,468,983
1.   Base Pay - Full Time - KPSA       101-345-03-000-701.003      150,000    2,820,673       2,820,673       2,970,673
1.   Legal Services                    101-266-00-000-810.003       15,000       1,000           1,000          16,000
1.   Labor Counsel                     101-266-00-000-810.004       15,000      54,500          54,500          69,500
2.   Outside Contractual Services      cip0400004-04-845.001        40,000      13,156          13,156          53,156
2.   Outside Contractual Services      cip0300014-04-845.001        10,000         0               0            10,000
2.   Outside Contractual Services      cip0200005-04-845.001       175,000         0          3,280,503       3,455,503
2.   Office Equipment & Furniture      cip0200005-04-976.000       125,000         0               0           125,000
                                               TOTAL             1,130,000
                                  Year-End Budget Amendment Requests



                Fund / Division                                      Purpose                  Increase/(Decrease)

GENERAL FUND
   Parks & Recreation                             Transfer to CIP Project for LaCrone Park         (10,000)
    Non-Departmental                              Transfer to CIP Project for LaCrone Park          10,000
   Public Safety                                  KPSOA/KPSA Retro Pay                             750,000
    City Attorney                                 Legal Services & Labor Counsel                    30,000

NET TOTAL GENERAL FUND BUDGET AMENDMENTS:                                                          780,000



CIP FUND
    LaCrone Park Proj (cip0300014)                LaCrone Park Master Plan                           10,000
    General Environ. Clean-Up Proj (cip0400004)   Environmental Clean-up (PCB expenses)             40,000
    Fire Apparatus Proj (cip0200006)              Transfer to Park St Pub Sfty Station Proj        (300,000)
    Park St Pub Sfty Station Proj (cip0200005)    Unexpected Environmental Costs and                300,000
                                                  Furniture/Fixtures

NET TOTAL GENERAL FUND BUDGET AMENDMENTS:                                                           50,000




NET TOTAL BUDGET AMENDMENTS:                                                                       830,000
            Commission                                                                                   Date:   12/17/07
                                                                                                                  Item G17
            Agenda Report
            C i t y of K a l a m a z o o


TO:          Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:        Scott A. Borling, City Clerk
             Prepared By: Barbara Blissett, Accounts Coordinator/Secretary

DATE:        November 29, 2006

SUBJECT:     Fireworks Display Application

RECOMMENDATION

It is recommended that the City Commission approve a request from the New Year’s Fest of
Kalamazoo, to publicly display fireworks at the Radisson Parking Structure on Monday,
December 31, 2007 at midnight as a part of the annual New Year’s festivities.

BACKGROUND

Pursuant to state law, the New Year’s Fest of Kalamazoo has applied for a permit to publicly
display fireworks at the Radisson Parking Structure. The Department of Public Safety has
reviewed the request and Fire Marshal Marty Myers has endorsed the application. In
addition, New Year’s Fest of Kalamazoo has provided the required proof of insurance,
naming the City of Kalamazoo as additionally insured by the pyrotechnic operator.

COMMUNITY RESOURCES CONSULTED

Citizens of Kalamazoo have enjoyed the annual News Year’s Fest fireworks, and Public
Safety has not received any complaints concerning the displays.

FISCAL IMPACT

There is no budgetary impact.

ALTERNATIVES

The City Commission could deny the request, however, staff review indicates the request
meets all city approval requirements.

ATTACHMENTS

None



             Kalamazoo City Clerk's Office * 241 W. South Street, Kalamazoo, MI 49007 * (269) 337-8792
                                                 Fax: (269) 337-8494
            Commission                                                                       Date:    12/17/2007
            Agenda Report                                                                                 Item G19

            C i t y of K a l a m a z o o


TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Scott A. Borling, City Clerk

DATE:         December 6, 2007

SUBJECT:      Board and Commission Appointments

RECOMMENDATION

It is recommended that the City Commission approve the following appointments and re-
appointments to advisory boards and commissions:

   •      the appointment of James Allan Nicolow to the Environmental Concerns
          Committee (ECC) for a partial term expiring on January 1, 2009.

   •      the appointment of Keely Anne Novotny to the Environmental Concerns
          Committee (ECC) for a three-year term expiring on January 1, 2011.

   •      the re-appointment of Fred Decker to the Historic District Commission (HDC) for
          a term expiring on January 1, 2011.

   •      the re-appointment of Nelson Nave to the Historic District Commission (HDC)
          for a term expiring on January 1, 2011.

   •      the re-appointment of Gary Wager to the Parks and Recreation Advisory Board
          (PRAB) for a term expiring on January 1, 2011.

BACKGROUND
The City Commission must approve the appointments of all advisory board and commission
members. The City Clerk’s Office receives advisory board applications and forwards them
to the appropriate staff liaisons and chairpersons. It is the responsibility of the individual
boards to recommend nominees for appointment to vacant positions. The attached
Appointee Nomination Reports detail the nominees’ qualifications and the selection process
used to make the nominations.

COMMUNITY RESOURCES CONSULTED
The recommended appointments and re-appointments were discussed at public meetings
of the respective boards and commissions.



              Kalamazoo City Clerk's Office 241 W. South Street, Kalamazoo, MI 49007 (269) 337-8792
                                                Fax: (269) 337-8494
Commission Agenda Report – Advisory Board Appointments
Page 2


FISCAL IMPACT
There is no fiscal impact associated with these appointments.

ALTERNATIVES

The City Commission could choose not to approve these appointments, but this alternative
is not recommended.

ATTACHMENTS

Nomination Report Forms




             Kalamazoo City Clerk's Office 241 W. South Street, Kalamazoo, MI 49007 (269) 337-8792
                                               Fax: (269) 337-8494
                  Advisory Boards and Commissions
                  Appointee Nomination Report
                  City of Kalamazoo


RECOMMENDATION

The Environmental Concerns Committee (ECC) recommends that the City Commission approve
the following appointments:

   •       the appointment of James Allan Nicolow for a partial term expiring on
           January 1, 2009 to complete the unexpired term of Colleen Prichard.

   •       the appointment of Keely Anne Novotny for a three-year term expiring on January 1,
           2011. Ms. Novotny would be completing the unexpired term of Travis G. Meier (a
           partial term expiring on January 1, 2008) and would continue to serve in that position
           for a new term.

SPECIAL REQUIREMENTS FOR THIS POSITION

No ECC positions require special qualifications.

SELECTION PROCESS

Applicants Considered
The applications of Ms. Novotny and Mr. Nicolow are the only active applications for the ECC
at this time.

Interview Process and Final Recommendation
Current members of the ECC interviewed Ms. Novotny at the regular August 2007 meeting and
Mr. Nicolow at the regular November 2007 meeting. After interviewing each applicant, the
committee voted unanimously to recommend each one for appointment to the ECC.

NOMINEE QUALIFICATIONS

Dual Board Memberships
None of these applicants is a member of another advisory board or committee.

Residency
Each of these applicants is a resident of the City of Kalamazoo.
Term Limits
Ms. Novotny would be completing the unexpired term of Travis G. Meier (a partial term
expiring on January 1, 2008) and would be continuing to serve in that position for a new term.
In 2011 Ms. Novotny would be eligible for reappointment to one additional full term.

Mr. Nicolow would be filling a partial term expiring January 1, 2009 and would be eligible for
re-appointment to two consecutive three-year terms.

Training, Experience, Education and Skills
Ms. Novotny has a bachelor’s degree from WMU and is involved in community activities
opposing additional PCB dumping in the City of Kalamazoo, such as the Kalamazoo River
Clean-up Coalition (KRCC). She is also involved in her neighborhood association. Mr.
Nicolow is an architect who serves as a green design expert. He leads the Sustainability
Initiative for his firm. He is an elected board member of the Southwest Michigan Sustainable
Business Forum.

Contribution to Diversity
Ms. Novotny lives in the Homecrest Circle Neighborhood. Mr. Nicolow lives in the Winchell
Neighborhood.

NOMINATION RATIONALE

The qualifications and experience of these applicants make each of them an excellent ECC
member. If these two applicants are approved, the ECC will still have two vacancies, which are
being filled voluntarily by the previous members (Ted Lupina and James Jeakle) until an
appointment can be made, as per the ECC establishing ordinance.



                            CITY CLERK’S CERTIFICATION

The nominees’ qualifications regarding dual board memberships, residency, and term limits have
been reviewed and verified by the City Clerk’s Office.



                                                                _________________________
                                                                            Scott A. Borling
                                                                                  City Clerk
              Advisory Boards and Commissions
              Appointee Nomination Report
              City of Kalamazoo


RECOMMENDATION

The Historic District Commission (HDC) recommends that the City Commission approve
the following re-appointments:

   •   the re-appointment of Fred Decker to his second full term through January 1,
       2011.

   •   the re-appointment of Nelson Nave to his second full term through January 1,
       2011.

SPECIAL REQUIREMENTS FOR THIS POSITION

All Historic District Commissioners are required by ordinance to have “a clearly
demonstrated interest in or knowledge of historic preservation.” Both Mr. Decker and
Mr. Nave have served for at least one full term.

SELECTION PROCESS

Applicants Considered
There were no other applicants considered since these are re-appointments.

Interview Process and Final Recommendation
There was no interview and review process since these are re-appointments.

NOMINEE QUALIFICATIONS

Dual Board Memberships
Neither Mr. Decker nor Mr. Nave is currently serving on any other city advisory board or
commission.

Residency
Mr. Decker lives at lives at 511 Woodward Avenue in the Stuart Area Local Historic
District. Mr. Nave lives at 610 West South in the South Street – Vine Area Local Historic
District.

Term Limits
If re-appointed, both Mr. Decker and Mr. Nave will be ineligible for re-appointment in
2011.
Training, Experience, Education and Skills
Mr. Decker and Mr. Nave have a demonstrated interest in preservation.

Contribution To Diversity
Mr. Decker and Mr. Nave are of European-American descent, 54-64 years old.

NOMINATION RATIONALE

Mr. Decker and Mr. Nave have both served one full term on the commission and have
pursued commissioner training when offered.




                        CITY CLERK’S CERTIFICATION

The nominees’ qualifications regarding dual board memberships, residency, and term
limits have been reviewed and verified by the City Clerk’s Office.



                                          _____________________________________
                                                        Scott A. Borling, City Clerk
              Advisory Boards and Commissions
              Appointee Nomination Report
              City of Kalamazoo

RECOMMENDATION

The Parks and Recreation Advisory Board (PRAB) recommends the City Commission
reappoint Gary Wager for a three-year term expiring on January 1, 2011.

SPECIAL REQUIREMENTS FOR THIS POSITION

The PRAB membership requires representatives be residents of the City of Kalamazoo.

SELECTION PROCESS

Applicants Considered
Mr. Wager is the only current Board member eligible for reappointment.

Interview Process and Final Recommendation
Mr. Wager expressed an interest in serving another term. PRAB approved a
recommendation for City Commission approval to reappoint Mr. Wager at their meeting
on December 4, 2007.

NOMINEE QUALIFICATIONS

Dual Board Memberships
Mr. Wager is not a member of any other City Advisory Board.

Residency
Mr. Wager resides in the city of Kalamazoo.

Term Limits
Mr. Wager was appointed to PRAB in February 2005. This reappointment would be his
second three-year term.

Training, Experience, Education And Skills
Mr. Wager has expressed a strong interest in the City’s Parks system. He is involved in
the Oakwood Neighborhood and is a life long resident of Kalamazoo with a strong
appreciation for Parks and Recreation.

Contribution To Diversity
Mr. Wager lives in the Oakwood Neighborhood.
NOMINATION RATIONALE

Mr. Wager continues to exhibit a strong commitment to the City of Kalamazoo Parks and
Recreation Department. The Board believes that his perspective and contributions will
continue to be very beneficial to the Board, the Parks and Recreation Department and the
City of Kalamazoo.



                        CITY CLERK’S CERTIFICATION

The nominee’s qualifications regarding dual board memberships, residency, and term
limits have been reviewed and verified by the City Clerk’s Office.



                                          _____________________________________
                                                        Scott A. Borling, City Clerk
  Date: 12/17/07       COMMITTEE OF THE WHOLE, NOVEMBER 30, 2007                    Page 298

            Item G20   The Kalamazoo City Commission met as a Committee of the Whole on
                       Friday, November 30, 2007 at 7:32 a.m. in the Community Room at City
                       Hall, 241 W. South Street.

                              COMMISSIONERS PRESENT:               Mayor Bobby Hopewell
Roll Call
                                                                   Vice Mayor Hannah McKinney
                                                                   Don Cooney*
                                                                   Barbara Miller
                                                                   Stephanie Moore

                              COMMISSIONERS ABSENT:                David Anderson
                                                                   Sean McCann

                       Also present were City Manager Ken Collard, Acting City Attorney Randy
                       Schau, and City Clerk Scott Borling.

Commissioner           Commissioner Miller, seconded by Vice Mayor McKinney, moved to
Excused                excuse the absences of Commissioners Anderson, Cooney and McCann.
                       With a voice vote, the motion passed.

Review of the          The City Commission reviewed and discussed the agenda for its Regular
December 3rd           Meeting on Monday, December 3, 2007.
Agenda
                       *Commissioner Cooney arrived at 7:34 a.m.

                       Item H-1
                       Regarding Item H-1, Portage Street Streetscape Master Plan, Community
                       Planning and Development Director Jeff Chamberlain described the
                       process used to develop the Plan and stated the single largest expense
                       would be placing utility lines underground. Director Chamberlain stated
                       the Washington Square area would be targeted for improvement first.

                       In response to a question from Vice Mayor McKinney, Director
                       Chamberlain stated the Plan did not call for a Tax Increment Financing
                       (TIF) District, but the door was open for various funding options.

Community Issues       Next, an opportunity was given for City Commissioners to discuss
                       community issues.

                       Commissioner Miller stated she was having difficulty finding the City
                       Manager’s Reports in the agenda packets.

Citizen Comments       Finally, an opportunity was given for citizen comments but no comments
                       were offered.

Adjournment            The meeting adjourned at 7:47 a.m.

                       Respectfully submitted,




                       Scott A. Borling
                       City Clerk
COMMITTEE OF THE WHOLE, NOVEMBER 30, 2007           Page 299
For City Commission approval on December 17, 2007




Approved by: ___________________________
             Bobby J. Hopewell, Mayor
             Dated: December 17, 2007
                     REGULAR MEETING OF DECEMBER 3, 2007                             Page 300
                     A regular meeting of the Kalamazoo City Commission was held on
                     Monday, December 3, 2007 at 7:00 p.m. in the City Commission
                     Chambers at City Hall.

Roll Call                    COMMISSIONERS PRESENT:              Mayor Bobby Hopewell
                                                                 Don Cooney
                                                                 Sean McCann
                                                                 Barbara Miller
                                                                 Stephanie Moore

                             COMMISSIONERS ABSENT:               Vice Mayor Hannah McKinney
                                                                 David Anderson

                     Also present were City Manager Ken Collard, Acting City Attorney Randy
                     Schau, and City Clerk Scott Borling.

Commissioners        Commissioner Moore, seconded by Commissioner Miller, moved to
Excused              excuse the absences of Vice Mayor McKinney and Commissioner
                     Anderson.

Invocation           The invocation, given by Reverend Bryan Craddock, Associate Pastor,
                     Calvary Bible Church, was followed by the Pledge of Allegiance.

Adoption of the      By unanimous consent the City Commission adopted its meeting agenda
Agenda               as presented.

Communications       City Manager Collard invited the public to attend meetings of various
                     boards and commissions.
Public Hearing re:
                     At 7:04 p.m. Mayor Hopewell opened a public hearing to receive public
the Rezoning 213
                     comments regarding a recommendation to adopt an ORDINANCE to
S. Drake Rd., 221
                     rezone 213 S. Drake Road, the north 40 feet of the west 175 feet of
S. Drake Road,
                     221 S. Drake Road, and 4707 Stonebrook Street from Zone RS-5
and 4707
                     (Residential, Single-Dwelling District) to Zone CO (Commercial Office
Stonebrook Street
                     District).
 77687
                             Dan Jaqua, non-resident, spoke in favor of the ordinance.

                     At 7:07 p.m. Mayor Hopewell closed the public hearing.

Ordinance 1833       Commissioner Cooney, seconded by Commissioner Miller, moved to
Rezoning 213 S.      adopt an ORDINANCE to rezone 213 S. Drake Road, the north 40 feet of
Drake Road, 221      the west 175 feet of 221 S. Drake Road, and 4707 Stonebrook Street
S. Drake Road,       from Zone RS-5 (Residential, Single-Dwelling District) to Zone CO
and 4707             (Commercial Office District).
Stonebrook Street
                     With a roll call vote this motion passed unanimously.
 77687
                     AYES:          Commissioners Cooney, McCann, Miller, Moore, Mayor
                                    Hopewell

                     NAYS:          None
                     REGULAR MEETING OF DECEMBER 3, 2007                            Page 301
Public Hearing re:   At 7:08 p.m. Mayor Hopewell opened a public hearing to receive public
Expansion of the     comments regarding a recommendation to adopt an ORDINANCE to
Parking Exempt       approve an amendment to Figure 6.1 of the Zoning Ordinance to expand
District             the boundaries of the Parking Exempt District of the Central Business
 77688               District.

                             Steve Deisler, Vice President for Downtown Planning and
                             Development at Downtown Kalamazoo Inc., spoke in favor of the
                             ordinance.

                     At 7:09 p.m. Mayor Hopewell closed the public hearing.

Ordinance 1834       Commissioner McCann, seconded by Commissioner Miller, moved to
Amending Fig. 6.1    adopt an ORDINANCE to approve an amendment to Figure 6.1 of the
of Zoning Code to    Zoning Ordinance to expand the boundaries of the Parking Exempt
Expand the           District of the Central Business District.
Parking Exempt
District             With a roll call vote this motion passed unanimously.
 77688               AYES:          Commissioners Anderson, Cooney, McCann,             Miller,
                                    Moore, Vice Mayor McKinney, Mayor Hopewell

                     NAYS:          None

Citizen Comments     Next, the following citizens addressed the City Commission regarding
                     non-agenda items:

                             Monica Westover, City resident, spoke regarding the arrest of
                             Terrance Moore in 2006 and corruption in City government.

                             Brad Cosgrove, City resident, spoke regarding the safety of the
                             Care-A-Van vehicles.

                             Pam Kingery, non-resident and Executive Director of the
                             Kalamazoo Communities in Schools Foundation, thanked City
                             Manager Collard for allowing City employees to spend an hour of
                             work time volunteering in Kalamazoo Public Schools.

Consent Agenda       Consent Agenda items were presented as follows with a recommendation
                     to approve the items with authorization for the City Manager to sign on
                     behalf of the city:

Resolution 07-84     -       a recommendation to adopt a RESOLUTION scheduling a hearing
                             on December 17, 2007 to consider a request to the State Tax
 77689
                             Commission that it revoke Industrial Facilities Tax Exemption
                             Certificate No. 2000-364 granted to Discount Laser Supply, Inc.

Resolution 07-85     -       a recommendation to adopt a RESOLUTION recognizing Susan
                             G. Komen for the Cure, Southwest Michigan Affiliate, as a non-
 77690
                             profit organization operating in the community for the purpose of
                             obtaining a charitable gaming license.
                   REGULAR MEETING OF DECEMBER 3, 2007                             Page 302

Resolution 07-86   -     a recommendation to adopt a Michigan Department of Consumer
                         & Industry Services, Liquor Control Commission RESOLUTION,
 77691                   which is a request from Nagsak Company of Portage to: 1)
                         transfer the ownership of a 2007 Class C-SDM liquor license with
                         a Dance and Entertainment Permit, Direct Connection-1, and
                         Outdoor Service from 340 E. Michigan, Kalamazoo Michigan to
                         2636 W. Michigan, Kalamazoo, Michigan; 2) Cancel existing
                         outdoor service (one area); and, 3) requests a new outdoor
                         service (1 area) and request to cancel dance permit and cancel
                         direct connect and request new additional bar permit (for a total of
                         2 bars).

Resolution 07-87   -     a recommendation to adopt a Michigan Department of Consumer
                         & Industry Services, Liquor Control Commission RESOLUTION to
 77692                   transfer ownership of a Class C liquor license with a Dance and
                         Entertainment permit with two bars located at 241 East
                         Kalamazoo Suite 101.

 77693             -     a recommendation to authorize the City Manager to sign a
                         METRO Act Permit involving Sprint Communications Company
                         LP.
 77694             -     a recommendation to authorize the City Manager to sign a
                         METRO Act Permit involving Arialink Telecom, LLC.

 77695             -     a recommendation to offer for first reading a revision to the
                         PENSION ORDINANCE (Sections 2-223 – 2-264) by first
                         repealing it, then adopting a different version (with the same
                         numbered sections). The resulting changes will not affect the
                         amount of money paid into the system by the City or its
                         employees, nor the amount of money received by beneficiaries,
                         including retirees, but will ensure that the plan is “qualified” for
                         taxation purposes.

 77696             -     a recommendation to approve minutes from the following City
                         Commission meetings: the Committee of the Whole Meeting of
                         November 16, 2007; the Special Meetings of November 12 and
                         November 19, 2007; and the Regular Meeting of November 19,
                         2007.

 77697             -     a recommendation to hold until December 17, 2007 to adopt a
                         RESOLUTION to vacate the south 763.70 feet of Lafayette
                         Avenue, plus a right-of-way located south of Lafayette Avenue,
                         with the following conditions: a) An easement will be provided to
                         the city for the underground utilities in the property to be vacated;
                         b) An easement will be provided to the city for future storm water
                         facilities; c) An easement will be provided to the city for access to
                         the east side of the Knollwood Park; and d) The existing trees on
                         the east side of the Knollwood Park will remain.

                   Commissioner Miller, seconded by Commissioner Cooney, moved to
                   approve the consent agenda requests.
                     REGULAR MEETING OF DECEMBER 3, 2007                              Page 303
                     With a roll call vote this motion passed unanimously.

                     AYES:          Commissioners Cooney, McCann, Miller, Moore, Mayor
                                    Hopewell

                     NAYS:          None

Presentation re:     Community Planning and Development Director Jeff Chamberlain
the Portage Street   described the purpose of the Portage Street Streetscape Master Plan and
Streetscape          the process used to develop the Plan. Director Chamberlain noted a
Master Plan          significant element of the Plan was a proposal to bury the overhead utility
                     lines, and he stated this element was responsible for a large portion of the
  77698
                     $12.7 million project cost. Community Planning and Development
                     Director indicated the Commission’s endorsement of the Master Plan
                     would allow DKI and the Edison Mainstreet Project committees to begin
                     fund raising efforts for the project.

                     In response to a question from Commissioner Miller, Director
                     Chamberlain stated the consultants had identified areas where it was
                     feasible for trees to be planted and had identified species of trees that
                     were suitable for an urban environment.

                     In response to a question from Commissioner Miller, Director
                     Chamberlain stated the Master Plan included lighting improvements that
                     would address the issues of aesthetics and security.

Resolution 07-88     Commissioner McCann, seconded by Commissioner Miller, moved to
Endorsing the        adopt a RESOLUTION to endorse the Portage Street Streetscape Master
Portage Street       Plan.
Streetscape
Master Plan          Prior to a vote on the motion, the following citizens addressed the City
                     Commission:
 77698
                             Steve Deisler, Vice President for Downtown Planning and
                             Development at DKI, spoke in favor of the resolution.

                             Jim Escamilla, City resident and Chair of the Edison Mainstreet
                             Project, spoke in favor of the resolution.

                     Commissioner Cooney commended the participants who helped develop
                     the Plan. Commissioner Cooney stated the relocation of Déjà Vu had not
                     triggered the physical revitalization of the Edison Neighborhood as
                     anticipated, and the implementation of the Portage Street Streetscape
                     Master Plan would be a tremendous boost for the Neighborhood.

                     Commissioner Moore expressed support for the resolution and noted the
                     streetscape improvements would make the Edison Neighborhood more
                     comparable to the rest of the City.

                     Commissioner Miller expressed support for the resolution and suggested
                     that the beauty of the landscaping could possibly make burying the
                     overhead utility lines unnecessary.
                      REGULAR MEETING OF DECEMBER 3, 2007                           Page 304
                      Mayor Hopewell expressed optimism about the development of the
                      Portage Street Corridor.

                      With a roll call vote this motion passed unanimously.

                      AYES:          Commissioners Cooney, McCann, Miller, Moore, Mayor
                                     Hopewell

                      NAYS:          None

City Clerk’s Report   City Clerk Borling reported the following items:
 77699                -       the lawsuit Cheryl Minor v City of Kalamazoo-Metro Transit,
                              Dorian Brinson and John Buchtrup, Individually, severally and
                              jointly was received and referred to the City Attorney’s Office.

                      -       the receipt of minutes from the following advisory boards and
                              commissions:
                              -      Community Development Act Advisory Committee
                                     -      Thursday, October 11, 2007

                              -      Dangerous Buildings Board
                                     -     Thursday, October 04, 2007

                              -      Environmental Concerns Committee
                                     -      Wednesday, August 15, 2007
                                     -      Wednesday, September 19, 2007
                                     -      Wednesday, October 17, 2007
                                     -      Wednesday, November 14, 2007

                              -      Friends of Recreation Board
                                     -      Tuesday, October 23, 2007

                              -      Housing Board of Appeals
                                     -     Thursday, August 23, 2007

                              -      Kalamazoo Historic District Commission
                                     -     Tuesday, October 16, 2007

                              -      Kalamazoo Historic Preservation Commission
                                     -     Tuesday, October 09, 2007

                              -      Parks and Recreation Advisory Board
                                     -      Tuesday, October 02, 2007

                              -      Planning Commission
                                     -      Thursday, November 01, 2007

                              -      Zoning Board of Appeals
                                     -      Thursday, October 11, 2007

                      -       absentee ballot applications for the January 15th Presidential
                              Primary election were mailed to permanent absentee voters on
                              Thursday, November 29th.
                      REGULAR MEETING OF DECEMBER 3, 2007                            Page 305
City Clerk’s Report   -      it was mandatory that absentee voters indicate their party
(cont’d)                     selection when applying for an absent ballot for the Presidential
 77699                       Primary.

                      -      Kalamazoo County’s ballots for the January 15th Presidential
                             Primary went to press on Sunday, December 2nd, and it was
                             anticipated that the City Clerk’s Office would take delivery of
                             ballots by the end of the week.

                      -      the close of registration for the January 15th Presidential Primary
                             would be December 17th.

Citizen Comments      Next, an opportunity was given for citizen comments, but no comments
                      were offered.
City Commissioner     Next, an opportunity was given for miscellaneous comments and
Comments              concerns of City Commissioners.

                      Commissioner Moore spoke regarding Ativa Walker, a 2007 graduate of
                      Phoenix High School, who was attending barber school and mentoring
                      other young people.

                      Commissioner Miller thanked City Clerk Borling for providing information
                      on the Presidential Primary and commended the Public Safety
                      Department for its quick response to a recent breaking-and-entering call
                      on Northampton Avenue. Commissioner Miller noted the beginning of a
                      fundraising campaign for the new Public Safety Regional Training Center.

                      Commissioner Cooney commended the Public Safety Department for its
                      handling of a recent hostage situation in the Knollwood Neighborhood.
                      Commissioner Cooney announced volunteers were needed to help pack
                      and distribute baskets of food for the Greater Kalamazoo Area Holiday
                      Food Drive.

                      Commissioner McCann expressed dismay that the National Debt was
                      increasing at the rate of $1 million per minute and noted the City of
                      Kalamazoo was required to have a balanced budget. Commissioner
                      McCann remarked on a recent article in the Detroit Free Press that
                      highlighted the Edison Environmental Academy.

                      Mayor Hopewell congratulated Inspector Shannon Bagley on his recent
                      promotion. Mayor Hopewell encouraged citizens to help with the Greater
                      Kalamazoo Area Holiday Food Drive on Saturday, December 15th. Mayor
                      Hopewell reported the Administrative Committee was reviewing
                      Commissioners’ requests for committee assignments and stated the
                      assignments would be made in the near future. Mayor Hopewell
                      announced the Administrative Committee would be meeting on
                      Thursdays at 4:00 p.m.
Adjournment           The meeting adjourned at 7:48 p.m.
REGULAR MEETING OF DECEMBER 3, 2007                 Page 306
Respectfully submitted,




Scott A. Borling
City Clerk

For City Commission approval on December 17, 2007




Approved by: ___________________________
             Bobby J. Hopewell, Mayor
             Dated: December 17, 2007
`
                Commission                                                                                     Date:   12/17/07
                                                                                                                         Item H1
                Agenda Report
                C i t y of K a l a m a z o o



    TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

    FROM:         Randall S. Schau, Acting City Attorney

    DATE:         November 26, 2007

    SUBJECT:      Pension Ordinance


    RECOMMENDATION

    It is recommended that the City Commission revise the pension ordinance (Sections 2-223
    – 2-264) by first repealing it, then adopting a different version (with the same numbered
    sections). The resulting changes will not affect the amount of money paid into the system
    by the City or its employees, nor the amount of money received by beneficiaries, including
    retirees, but will ensure that the plan is “qualified” for taxation purposes.

    BACKGROUND

    In late 2006 it became apparent that certain provisions required by the IRS were not in the
    City’s pension ordinance. To assist in having the ordinance come into full compliance, the
    Indianapolis law firm of Ice–Miller was retained. At their suggestion a number of provisions
    have been added. These are necessary to ensure that our plan is deemed “qualified” for
    purposes of favorable tax treatment. By being “qualified” there will be no tax liability for
    City’s contributions to the plan, nor on the earnings and income the fund generates (until
    monies are actually paid out to beneficiaries). Being qualified also allows the City and the
    employees to avoid having to pay social security taxes. Other changes address such
    matters as minimum distribution or rollover requirements.

    Changes are also being proposed to update certain words and phrases, such as replacing
    “police” with “Public Safety,” and making pronouns gender neutral. In other cases the
    proposed change reflects actual practice, such as a broader definition of what constitutes
    “compensation.”

    In an attempt to reduce the total length of the documents, a number of outdated sections,
    such as those dealing with “airport employees” and one-time lump payouts, are being
    removed.




                Kalamazoo City Attorney’s Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8185
                                                     Fax: (269) 337-8922
Commission Agenda Report – Pension Ordinance
Page 2


COMMUNITY RESOURCES CONSULTED

A presentation of the proposed changes has been made to the Pension Board as well as to
a number of union officials.

FISCAL IMPACT

None, although the changes will preserve the many tax advantages a ‘qualified plan’ has
for both the system and its employees.

ALTERNATIVES

The Commission could decline to revise the ordinance but doing so would put the City’ plan
at risk of not being deemed “qualified,” which would have significant negative tax
consequences.

ATTACHMENTS

Clean and marked up ordinances




            Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 269.337.8047
                                                Fax: 269.337.8182
                            CITY OF KALAMAZOO, MICHIGAN

                           ORDINANCE NO. ________________

          AN ORDINANCE TO REPEAL SECTIONS 2-223 THROUGH 2-264
              OF ARTICLE X OF THE KALAMAZOO CITY CODE AND
          CREATE NEW SECTIONS 2-223 THROUGH 2-264 OF ARTICLE X
                      OF THE KALAMAZOO CITY CODE
              REGARDING THE EMPLOYEE RETIREMENT SYSTEM

THE CITY OF KALAMAZOO ORDAINS:

     Section 1. Sections 2-223 through 2-264 of Article X of the Kalamazoo City
Code are hereby repealed.

      Section 2. Sections 2-223 through 2-264, including Appendix A, of Article X of
the Kalamazoo City Code are hereby created to read as follows:

“Sec. 2-223. Established; citation of article.

The City of Kalamazoo Employees Retirement System established by authority of
section 197 of the Charter and Ordinance No. 378, as amended, is hereby continued,
as amended and restated effective January 1, 2006. This article may be cited as the
“City of Kalamazoo Employee Retirement System Ordinance.” The Retirement System
Ordinance shall be maintained for the exclusive benefit of members and is intended to
qualify as a governmental plan under Sections 401(a) and 414(d) of the Internal
Revenue Code of 1986, as amended from time to time (the "Code"), and with the
requirements of any other applicable law.

Sec. 2-224. Definitions.

The following words and phrases, as used in this article, unless a different meaning is
clearly required by the context, shall have the following meanings. Words used in the
masculine gender shall be construed as though they were also used in the feminine or
neuter gender where applicable, and words used in the singular will be construed as
though they were also used in the plural, where applicable.

Accumulated Contributions means the sum of all amounts deducted from the
compensation of a member, or "picked up” by the City pursuant to Section 2-248 F, and
credited to his or her individual account in the annuity savings fund, together with
interest credited to January 1, 1952, and regular interest credited after December 31,
1951.

Annuity means an annual amount, derived from a member’s accumulated contributions,
payable in equal monthly installments throughout the future life of a person.
Annuity Reserve means the present value of all future payment to be made on account
of any annuity. An annuity reserve shall be computed upon the basis of such mortality
table, and regular interest, as the board shall from time to time adopt.

Beneficiary means any person, except a retirant, who is in receipt of, or who is
designated to receive, a pension, retirement allowance or other benefit payable by the
retirement system. Notwithstanding the foregoing, a Member may designate a trust as
his or her secondary beneficiary under the retirement system, and the beneficiaries of
the trust with respect to the trust’s interest in the member’s benefit under the retirement
system shall be treated as the member’s designated beneficiary for purposes of the
Code Section 401(a)(9) and Treasury Regulation Section 1.401(a)(9)-4 provided that
the terms of Q&A-5 and Q&A-6 of such Treasury Regulation are satisfied.

Board or board of trustees means the board of trustees provided in Section 2-225.

City means the City of Kalamazoo.

Compensation means a member’s salary or wages paid him or her by the city for
services rendered by him as an employee of the city. Compensation shall include any
amounts that are contributed by the City pursuant to a salary reduction agreement and
that are not includable in the member's gross income under Code Section 125, 132(f),
401(k), 403(b) or 457(b). In case a member’s compensation is not all paid in money, the
City Manager shall fix the value of the portion of his or her compensation that is not paid
in money. Compensation shall not include any sums paid to a member as worker’s
compensation or contractual supplements thereto, unless the following requirements
are both fulfilled:

A.    The member is in receipt of said sums while the member is off work during the
      final three (3) years of his or her membership because of a disability which, if
      permanent, would qualify him or her for a duty disability retirement allowance
      under Section 2-243B; and

B.    The member contributes the prescribed percentage of said sums to the annuity
      savings fund under Section 2-248B within one hundred eighty (180) calendar
      days of returning to work. Compensation shall include any employee contribution
      “picked-up” by the City and treated as an employer contribution pursuant to
      Section 2-248F.

Notwithstanding the above, the following are to be considered part of “compensation,”
both for purposes of an employee paying a percentage contribution to the system, and
for purposes of determining final average compensation: overtime (except for Public
Safety members), holiday pay, sick time pay, vacation pay, retroactive pay, certification
bonus, education bonus, standby pay, emergency leave pay, critical leave pay, funeral
leave pay, transit annual leave, transit annual leave payout (up to 160 hours), night shift
premium, and longevity.

Notwithstanding the above, the following are not to be considered part of
“compensation,” both for purposes of an employee paying a percentage contribution to


                                            2
the system, and for purposes of determining final average compensation: deferred
compensation match by the City, Public Safety overtime, compensation (“comp”) time,
lump sum sick time payout, car stipend, mileage payment, discretionary bonus,
incentive bonus, performance bonus, food allowance, tool allowance, parking
allowance, clothes cleaning allowance, clothing allowance, insurance waiver, equipment
overtime.

Notwithstanding any other provision of the Retirement System to the contrary, for Plan
Years beginning on or after January 1, 1994, but before Plan year 2002, the annual
Compensation of each member taken into account under the Retirement System shall
not exceed the OBRA ’93 annual compensation limit. The OBRA ’93 annual
compensation limit is one hundred fifty thousand dollars ($150,000), as adjusted by the
Commissioner for increases in the cost of living in accordance with Code Section
401(a)(17)(B). If Compensation for any prior determination period is taken into account
in determining an employee’s benefits accruing in the current Plan Year, the
compensation for that prior determination period is subject to the OBRA ’93 annual
compensation limit in effect for that prior determination period. For this purpose, for
determination periods beginning before the first day of the first Plan Year beginning on
or after January 1, 1994, the OBRA ’93 annual compensation limit is one hundred fifty
thousand dollars ($150,000).

The annual Compensation of the member taken into account in determining benefit
accruals under the Retirement System in any Plan Year beginning after December 31,
2001, or such other consecutive twelve (12) month period over which Compensation is
otherwise determined under the Retirement System (the “determination period”) shall
not exceed two hundred thousand dollars ($200,000), as adjusted by the Commissioner
for increases in the cost of living in accordance with Code Section 401(a)(17)(B).

The cost-of-living adjustment in effect for a calendar year applies to any period, not
exceeding twelve (12) months, over which Compensation is determined (determination
period) beginning in such calendar year. If a determination period consists of fewer
than twelve (12) months, the annual Compensation limit will be multiplied by a fraction,
the numerator of which is the number of months in the determination period, and the
denominator of which is twelve (12).

Credited Service means the number of years and fraction thereof standing to a
member’s credit, as provided in this article. Effective January 1, 1999, as to Public
Safety members, and effective March 13, 2000, as to KMEA members, the amount of
service time that will be credited to such a member who is classified and worked as a
part-time employee of the City, will be calculated by pro-rating the number of hours
worked in a year against the number of hours regularly scheduled in that year for a full
time employee in that classification. For example, an employee who works thirty (30)
hours per week in a position where full time employees regularly work forty (40) hours
per week will be credited with three-quarter (00.75) years of service for that year. For
Public Safety members, credited service as of January 1, 1999, shall be the amount of
time which has elapsed between that date and each individual’s seniority date, in
addition to any time purchased pursuant to the split service provisions set forth below.


                                           3
When a Public Safety member is absent from work and receiving sick pay benefits
(either the member’s or from donated sick leave time) from which pension contributions
are deducted, the period of time the employee is absent and receiving sick leave
benefits will be counted towards the member’s credited service. Public Safety members
on medical leave of absence who are receiving worker’s compensation benefits may
have period of such leave counted towards credited service by electing at the
commencement of the leave to make regular pension contributions while on the leave.

Direct Rollover means a payment by the Retirement System to the Eligible Retirement
Plan specified by the Distributee.

Distributee means an employee or former employee. In addition, the employee’s or
former employee’s surviving spouse and the employee’s or former employee’s spouse
or former spouse who is the alternate payee under a qualified domestic relations order,
as defined in Code Section 414(p), are Distributees with regard to the interest of the
spouse or former spouse.

Eligible Rollover Distribution means any distribution of all or any portion of the refund of
Accumulated Contributions paid to a member, a surviving spouse, a spouse or former
spouse who is the alternate payee under an EDRO, or, effective January 1, 2007, a
beneficiary, under the Retirement System, except that an Eligible Rollover Distribution
does not include (1) any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or Life Expectancy) of
the member or for the joint lives (or joint Life Expectancies) of the member and the
member's beneficiary, or for a specified period of ten (10) years or more; (2) any
distribution to the extent such distribution is required under Code Section 401(a)(9); (3)
the portion of any distribution that is not includible in gross income; and (4) the portion
of any distribution made on or after January 1, 2002 which is attributable to a hardship
distribution described in Code Section 401(k)(2)(B)(i)(IV).

Eligible Retirement Plan means: 1) an individual retirement account described in Code
Section 408(a); 2) an individual retirement annuity described in Code Section 408(b); 3)
a qualified retirement plan described in Code Section 401(a) or 403(a); 4) for
distributions made after December 31, 2001, a tax sheltered annuity plan described in
Code Section 403(b) or an eligible plan under Code Section 457(b) which is maintained
by a state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state, which agrees to accept and separately account for
amounts transferred into such plan from this Retirement System, and 5) for distributions
made after December 31, 2007, a Roth individual retirement account, subject to
applicable code requirements. This definition shall also apply in the case of a
distribution made after December 31, 2001, to a surviving spouse, or to a spouse or
former spouse who is the alternate payee under an EDRO. Subpart 1) and 2) contained
herein shall apply in the case of a distribution made after December 31, 2006, to a
beneficiary.

Employee means any person in the employ of the City whose services are
compensated by the city, including officers of the City.


                                             4
Exempt employee or exempt member means any General member who is not a
member of a bargaining unit.

Final average compensation means the average of the highest annual compensation
received by a member during any period of three (3) consecutive years of his or her
credited service contained within his or her ten (10) years of credited service
immediately preceding the date his or her employment with the City last terminated. If
the member has less than three (3) years of credited service, his or her final average
compensation shall be the average of the annual rates of compensation for his or her
total period of credited service.

Final Compensation means a member’s annual rate of compensation at the time his or
her employment with the City last terminated.

General member means any member except a public safety member.

Investment Committee means the Investment Committee established in Section 2-252.1
et seq.

Member means any employee who is included in the membership of the retirement
system.

Pension means an annual amount, derived from money provided by the City, payable in
equal monthly installments throughout the future life of a person, or for a temporary
period, as provided in this article.

Pension Reserve means the present value of all future payments to be made on
account of any pension. A pension reserve shall be computed upon the basis of such
mortality and other experience tables, and regular interest, as the board shall from time
to time adopt.

Plan Year means the calendar year.

Public Safety Administrator means any member who works within the Public Safety
Administration and who is both sworn and exempt. For purposes of this article, said
Administrator will be treated as if public safety members except as otherwise noted.

Public Safety member means any employee in the Public Safety Department of the City
holding the rank of patrol officer, including probationary patrol officer, or higher rank;
and, in the case of a fire fighter, any employee in the Fire Department of the City
holding the rank of fire fighter, including probationary fire fighter, or higher rank and
including any Public Safety officer employed in the Public Safety Department. The terms
“Public Safety member” shall mean any person employed by Public Safety, including
probationary members, holding the rank of sworn officer, but shall not include:

A.    Any person who is privately employed as a public safety member, nor

B.    Any person who is temporarily employed as a public safety member, nor


                                            5
C.    Any civilian employee in the Public Safety Department.

Regular Interest means such rate or rates of interest per annum, compounded annually,
as the City Commission shall from time to time adopt.

Retirant means any member who retires with a retirement allowance payable by the
retirement system.

Retirement means a member’s severance from the employ of the city with a retirement
allowance payable by the retirement system.

Retirement allowance means the sum or the annuity and pension payable to a retirant
or beneficiary. In determining a retirant's or beneficiary's retirement allowance, the
retirement system shall apply the actuarial assumptions that are set forth in Appendix A,
which is attached hereto.

Retirement System or System means the City of Kalamazoo Employees Retirement
System.

Service means personal service rendered to the City by an employee of the City.
Service shall include time off work due to a disability which, if permanent, would qualify
the individual for a duty disability retirement allowance under Section 2-243B.

Trust Fund means all assets possessed by the Retirement System, including those
attributed to the Pension Reserve Fund, the Retirement Reserve Fund, the Annuity
Savings Fund and the Income Fund, all property and rights purchased with such
amounts, and all income attributable to such amounts, property or rights. Any forfeitures
shall be included in the Trust Fund and shall not be applied to increase the benefits any
member would otherwise receive under the Retirement System. The Trust Fund shall
be held and invested in accordance with Section 2-252.1.

USERRA means the Uniformed Services Employment and Reemployment Rights Act of
1994, as amended from time to time.

Voluntary Retirement Age:

A.    For a general member shall be age fifty-five (55) years, provided he or she has
      fifteen (15) or more years of credited service. For each year past age fifty-five
      (55), the required number of years of credited service shall be reduced one (1)
      year until at age sixty (60) years and thereafter the required number of years for
      credited service shall be ten (10) years;

B.    For exempt employees and Public Safety Administrators, the number of years of
      credited service shall be reduced one (1) year until at age sixty-two (62) years
      and thereafter the required number of years for credited service shall be five (5)
      years;




                                            6
C.    For AFSCME and KMEA employees, the number of years of credited service
      shall be reduced one (1) year until at age sixty-one (61) years and thereafter the
      required number of years for credited service shall be nine (9) years;

D.    Beginning January 1, 1984, “voluntary retirement age” for a Public Safety
      member shall be after twenty-five (25) years of credited service, or age fifty (50)
      with ten (10) years of credited service, whichever occurs first;

E.    Subject to the maximum benefits provisions set forth below, any member who
      continues in the employ of the City beyond his or her Voluntary Retirement Age
      shall continue to accrue benefits under the Retirement System; and

F.    Subject to the terms of section 2-237, the amount of the retirement allowance to
      which a member may be entitled upon his or her voluntary retirement may be
      reduced.

Worker’s compensation period means the period a member is in receipt of weekly
worker's compensation on account of a member’s disability or death arising out of and
in the course of the member’s employment. If a member is paid a single sum in lieu of
future worker’s compensation, worker’s compensation period shall be the period, if any,
the member was in receipt of weekly worker’s compensation, plus the period arrived at
by dividing the said single sum by the member’s weekly worker’s compensation award.”

Sec. 2-225 Board of trustees generally.

A.    The power to administer, manage and operate the retirement system, and to
      construe and make effective the provisions of this article, the Plan, applicable
      state and federal statutes, provisions of the City Commission-approved collective
      bargaining agreements and employment agreements, and provisions of
      employment agreements authorized by the City Manager that expressly relate to
      the retirement system, is vested in a Board of Trustees, subject to such powers
      as are retained by the City Commission, or placed in the Investment Committee
      pursuant to § 2-252.1 et seq. “Employment agreements” authorized by the City
      Manager, as that phrase is used in this subsection, shall apply only to
      employment agreements for the positions of Deputy and Assistant City Manager,
      shall be limited to provisions regarding eligibility for an unreduced pension, and
      shall be available only to an employee in those positions whose years of service
      as a City employee, when combined with the employee's age, total at least 70 at
      the time the employment agreement is executed. The City Manager shall have
      the authority granted by this subsection until June 1, 2009.

B.    The board of trustees shall consist of five (5) trustees, as follows:

      1.     A City Commissioner to be selected by the Commission to serve at the
             pleasure of the Commission.

      2.     The City Manager.



                                            7
     3.    A citizen who is not a member, retiree, or beneficiary of the retirement
           system, and holds no other City position, to be appointed by the City
           Commission.

     4.     A Public Safety member to be elected by the Public Safety members.

     5.    A general member to be elected by the general members.

C.   The elections of the Public Safety member trustee and the general member
     trustee shall be held under such rules and regulations as the board shall from
     time to time adopt.

D.   The term of office of the appointed citizen trustee, the Public Safety member
     trustee and the general member trustee shall be three (3) years, one (1) such
     term to expire annually.

E.   Each trustee shall, before assuming the duties of trustee, qualify by taking an
     oath of office to be administered by the City Clerk. The trustee shall serve
     without additional compensation for their services as trustee.

F.   In the event a trustee, except the appointed citizen trustee, ceases to be
     employed by the City; or if any trustee fails to attend three (3) consecutive
     regularly scheduled meetings of the board, unless in each case excused for
     cause by the remaining trustees, his or her office of trustee shall be deemed to
     be vacated. If a vacancy occurs in the office of trustee, the vacancy shall be
     filled, within sixty (60) days from and after the date the vacancy occurred, for the
     unexpired portion of the term in the same manner as the office was previously
     filled. The City Commission from time to time may appoint a person to
     temporarily replace a trustee on an interim basis for reasons such as medical
     emergency or other need, and the person filling such a position on an interim
     basis shall serve on the board of trustees until the person who is on leave of
     absence is able to return to duties as a member of the board of trustees. The
     term of office of the interim trustee shall coincide with the term of office of the
     trustee temporarily replaced, and in no event shall the interim trustee serve in
     excess of ninety (90) days from and after the date the City Commission appoints
     such interim trustee, unless the City Commission extends the term of such
     interim trustee beyond ninety (90) days.

G.   The board shall hold meetings regularly, at least quarterly, and shall designate
     the time and place thereof. Three (3) trustees shall constitute a quorum at any
     meeting of the board. Each trustee shall be entitled to one (1) vote on each
     question before the board, and at least three (3) concurring votes shall be
     necessary for a decision by the board at any of its meetings. The board shall
     adopt its own rules of procedure and shall keep a record of its proceedings. All
     meetings of the board shall be public.




                                          8
Sec. 2-226. Officers.

A.    The Board of Trustees shall elect from its own number a chairperson and
      chairperson pro tem.

B.    The Finance Director shall serve as secretary to the board and he shall be the
      administrative officer of the retirement system.

C.    The City Treasurer, or his or her designee, shall be treasurer of the retirement
      system and the custodian of its assets.

D.    The City Attorney shall be the legal advisor to the board.

E.    The board shall appoint as medical director a physician who is not eligible to
      membership in the retirement system. He or she shall be directly responsible to
      and shall hold office at the pleasure of the board. He or she shall arrange for and
      pass upon all medical examinations required under this article; he or she shall
      investigate all essential statements and certificates of a medical nature furnished
      by or on behalf of a member, retirant or beneficiary in connection with a claim for
      disability or death in line of duty benefits; and he or she shall report in writing to
      the board his or her conclusions on medical matters referred to him or her by the
      board.

F.    The compensation for services required for the proper operation of the retirement
      system shall be fixed by the board subject to the approval of the City
      Commission.

G.    The board shall recommend, jointly with the Investment Committee, the actuary
      for the system to the City Commission for its approval.

Sec. 2-227. Composition of membership of retirement system

A.    The membership of the retirement system shall include all persons who are in the
      employ of the City and all persons who become employed by the City except as
      provided in subsection (b) of this section.

B.    The membership of the retirement system shall not include:

      1.     Any person whose services to the City are compensated on a fee or
             contractual basis; nor

      2.     Any person employed to direct traffic at schools; nor

      3.     Any person, other than a person who is a member of the KMEA, who
             becomes employed by the City after June 30, 1967, in a position normally
             requiring less than one thousand forty (1,040) hours of work in a calendar
             year; nor




                                            9
      4.     The medical director and the actuary; nor

      5.     A retirant reemployed by the City upon the recommendation of the City
             Manager with the specific approval of the board. However, with the
             additional specific approval of the City Commission, such rehired retirant
             may be designated as a new hiree as of the initial date of reemployment
             and may, for the new period of employment only, qualify for a second
             retirement allowance; nor

      6.     The City Manager or other City Commission appointee, if he or she
             exempts himself or herself from membership in the system. His or her
             past contributions, together with accrued interest, would then be paid into
             the program established by the International City Management
             Association Retirement Corporation instead of being paid to or held by the
             City of Kalamazoo Employees Retirement System. No contribution on
             behalf of the City Manager or other appointee who makes such choice
             shall thereafter be made to the retirement system. Neither he nor she nor
             any person claiming on his or her behalf or account shall have any right,
             title, benefit or interest in said system or the funds thereof. The system
             shall owe no duty to such person or persons.

      7.     Effective on and after January 1, 1999, the district court staff and judges of
             the 9th District Court, unless such person, prior to that date elected to have
             their contributions remain in the system.

C.    In any case of doubt as to the membership status of any person, the board shall
      decide the question.

Sec. 2-228. Termination of membership; Buy back of credited service.

A.    Except as otherwise provided in this article, members who leave the employ of
      the City for any reason except retirement or death shall thereupon cease to be
      members and their credited service at that time shall be forfeited. In the event of
      reemployment by the City, such individuals shall again become members. Such
      employees shall have the option of having their credited service restored in full,
      provided they return to the annuity savings fund the amount, if any, withdrawn
      therefrom, together with regular interest from the date of withdrawal to the date of
      repayment.

B.    In the event any member, or part-time employee who, full-time, would be a
      member, leaves the employment of the City to provide data processing services
      to the City, and said member or employee returns to City employment
      immediately upon leaving the employment of said private entity, and they have
      again become a member pursuant to the subsection above, they may also
      receive credited service for the time spent with said private entity as long as their
      employment with said private entity has been full-time and continuous since
      leaving the employment of the City, and they pay to the retirement system the



                                           10
     contributions they would have made had they remained or been a member of the
     system, based on the actual salary received from the private entity during this
     time period.

C.   Said payments shall commence within one year of reemployment and shall be
     completed within a five-year period from the date of rehiring. If repayment is not
     completed within the five-year period, any amounts paid are to be refunded, and
     credit for pension benefits will be computed from the most current date of
     employment. Current employees shall have one year from the effective date of
     this section, as amended, to start repayment, and completion shall be within the
     five-year time limit. Upon a member's retirement or death, he shall thereupon
     cease to be a member.

D.   However, a person retired from the system may "buy back" prior service credits
     to increase their pensions:
     1.    When the retirant would have been eligible to buy back prior service time
           credit(s), if the retirant were an active (contributing, non-retired) member
           of the system; and
     2.    When such credit(s) was(were) not available for buy back prior to the date
           of his or her retirement; and
     3.    When election, payment and completion shall be as follows:
           a.     Said retirant shall elect to buy back such prior service credit(s)
                  within one (1) year of the date the retirant is or becomes eligible to
                  buy back such time credit(s);
           b.     Calculation of prior service credits:
                  (1)    Per subsection (a) above for refunded prior service credit;
                         and/or
                  (2)    Such retroactive contributions shall be made together with
                         "regular interest" or a board approved actuarial formula
                         calculated to the date of repayment; and
     4.    Applications for repurchase of prior city service credit(s) shall be made
           within one (1) year from the date on which the retirant first becomes
           eligible to exercise the option to "buy back" prior city service credit(s);
     5.    From the date on which the retirant's application to repurchase prior city
           service is approved by the pension board, the retirant will have one (1)
           additional year to actually repurchase such prior service by lump sum
           repayment, unless an extended period is approved by the board;
     6.    An increased pension, will not be put into effect for any retirant, until the
           repayment of previously refunded employee pension contributions, and
           regular interest, is complete.




                                          11
Sec. 2-229. Service credit

A.    The service rendered by a member shall be credited him or her by the board in
      accordance with such rules and regulations as the board shall from time to time
      adopt, consistent with the provisions of this article. In no case shall less than ten
      (10) days of service rendered by a member in any calendar month be credited
      him or her as a month of service, nor shall less than nine (9) months of service
      rendered by him or her in any calendar year be credited as a year of service, nor
      shall more than one year of service be credited any member for all service
      rendered by him or her in any calendar year.

B.    In the event a member withdrew his or her contributions from the retirement
      annuity and pension fund of the retirement system established by Ordinance No.
      188, or his or her accumulated contributions from the annuity savings fund of the
      retirement system provided for in this article, and has not returned same to the
      applicable fund, he or she shall not be credited with service rendered prior to the
      date he or she last withdrew his or her contributions or accumulated contributions
      until he or she returns to the annuity savings fund, together with regular interest
      from the date of withdrawal to the date of repayment, as provided in Section 2-
      230 of this article.

Sec. 2-230. Age and service requirements in the event of split service

A.    In the event a member has rendered service both as a general member and as a
      Public Safety member, the age and service requirements applicable to that
      member at the time of retirement shall be determined by the age and service
      requirements of the unit from which the member is retiring. The member’s total
      service shall be used to determine whether or not the member meets the age
      and service requirements of the unit from which he is retiring.

B.    For purposes of computing the retirement allowance of a member who has
      rendered service in both of the above units, Section 2-236 shall apply only to the
      member’s actual service as a Public Safety member; and Section 2-237 shall
      apply only to the member's actual service as a general member. The retirement
      allowance shall be the sum of the two (2) separate computations. The
      computations for each unit shall be based on the member’s actual final average
      compensation.

C.    Notwithstanding the above, a member employed by Public Safety who is a
      member of the Kalamazoo Police Officers’ Association prior to 1999 may elect to
      convert his or her prior non-Public Safety time into Public Safety time (for
      purposes of credited service) so long as he or she first pays the difference
      between the contribution rate that was paid and the contribution rate that would
      have been paid had the non-Public Safety time actually been for Public Safety.




                                           12
Sec. 2-231. Military service credit.

A.     In the event any member who, while employed by the City, was called to or
       entered any armed service of the United States and who has been or shall be on
       active duty in such armed service, said member shall have such armed service
       actually required credited as City service; provided that:

       1.     He or she is reemployed by the City within one (1) year from and after the
              date of termination of such armed service actually required of him or her.

       2.     He or she returns to the annuity savings fund the amount he or she might
              have withdrawn therefrom at the time he or she entered or while in such
              armed service together with regular interest from the date of withdrawal to
              the date of repayment. Said payments shall commence within one (1)
              year of reemployment and shall be completed within five (5) years from
              the date of rehiring. If repayment is not completed within the five-year
              period, any amounts paid are to be refunded, and credit for pension
              benefits will be computed from the most current date of employment.

       3.     In no case shall more than six years of City service be credited for all such
              armed service rendered by said member. In any case of doubt as to the
              period to be so credited any member, the board shall have the final power
              to determine such period. During the period of such armed service and
              until reemployment by the City, said member's contributions to the
              retirement system shall be suspended; and any balance standing to his or
              her credit in the annuity savings fund shall be accumulated at regular
              interest.

B.     In the event any member who, prior to being employed by the City, was called to
       or entered any armed service of the United States and who has been on active
       duty in such armed service, said member may have his or her service credit
       increased for not more than three years' active military service; provided that:

       1.     The member pays to the retirement system a percent of the member's
              annual rate of pay in effect at the time the member applies for this option,
              multiplied by the years, or fraction thereof, of service that the member
              elects to purchase pursuant to this section. The percent to be used in said
              calculation shall be the same as the percent in effect used to determine
              that member's contribution to the annuity fund, as described in Section
              248 and elsewhere.

       2.     Time of payment. Said payment shall commence within one year from the
              date of hire and shall be completed within five years. If payment is not
              completed within the five-year period, any amounts paid are to be
              refunded, and no credit for military service pension benefits will be given.




                                            13
      3.     The fact that payment is made into the retirement system during a given
             year for the purposes of Subsection B(1) above shall have no effect in
             determining final average compensation.

      4.     In the event any member making payments under Subsection B(1) above
             should retire or die prior to making the full payments required, the member
             or member's beneficiary under the pension ordinance shall have the
             option of either making a lump-sum payment in full prior to receiving any
             pension benefits in order to obtain the additional benefits under this
             section, or receiving military service credit prorated based upon the
             amount of payments made until death or retirement.

      5.     At any time prior to retirement, a member may withdraw all or part of his or
             her military service credit payments from the retirement system. If a
             member makes such a withdrawal, the military service credit will be
             reduced pro rata, based upon the amount of payments withdrawn.

C.    Active duty shall include all service and training while on active duty but shall not
      include National Guard or Reserve monthly or annual training.

D.    Current employees must commence payment no later than January 2, 1987, to
      obtain credit for military service under this section of the Kalamazoo City Code.
      However, the preceding sentence shall not apply to any military service covered
      by USERRA. Payment shall be completed within five (5) years of
      commencement of payment.

E.    In no event shall credit be given for a period of active duty if the member
      otherwise receives credit for that period as city service.

F.    Effective December 12, 1994, the provisions herein shall be interpreted and
      applied as required by USERRA in accordance with Code Section 414(u) and the
      regulations and other guidance thereunder.

Sec. 2-232. Buyback of unpaid leave.

        A Public Safety member who, on or after January 1, 1999, is absent from work
for an entire pay period during which no pay from the City is paid from which pension
contributions are deducted, may buy back all or a portion of said time so that it becomes
credited service. In the absence of said buy back, said time shall not become credited
service. If the member elects to buy back such time, the amount to be paid by the
member shall be equal to that which the member would have had deducted from his or
her pay had he or she been receiving pay. Said payment shall commence within one
(1) year of the member’s return and shall be completed within five (5) years of said
return. If repayment for the amount of time sought to be credited is not fully paid within
said five (5) years, the amount paid shall be refunded and no credited service shall be
given.




                                           14
Sec. 2-233. Service accounts.

     The board shall credit each member's service account with the number of years
and months of service to which he or she is entitled.

Sec. 2-234. Voluntary retirement.

A.    Any member who has attained or attains his or her voluntary retirement age may
      retire upon his or her written application filed with the board setting at what time,
      not less than thirty (30) days nor more than ninety (90) days subsequent to the
      execution and filing thereof, he or she desires to be retired.

B.    Upon his or her retirement, a Public Safety member shall receive a retirement
      allowance as provided in Section 2-236, and a general member shall receive a
      retirement allowance as provided in Section 2-237.

Section 2-235 reserved

Sec 2-236. Retirement Allowance—Public Safety member; early retirement.

A.    Effective January 1, 2003, upon the retirement of a Public Safety member who
      has twenty-five (25) years or more of credited service or who is at least fifty (50)
      years of age with ten (10) years of credited service, a voluntary retirement benefit
      shall be provided which shall consist of a straight life retirement allowance (or the
      comparable option as provided in Section 2-240 in lieu of said straight life
      retirement allowance) consisting of an annuity which shall be the actuarial
      equivalent of the member's accumulated contributions and a pension which,
      when added to the annuity, will provide a straight life retirement allowance equal
      to the sum of two and seven-tenths percent times final average compensation
      times years and fraction thereof of credited service with a maximum benefit equal
      to seventy and two-tenths percent of final average compensation. For those
      Public Safety members who are less than fifty years old with at least twenty (20)
      years, but less than twenty-five years of credited service, the retirement
      allowance shall be based upon two percent of final average compensation times
      years of service. Those Public Safety members whose employment ends after
      they are vested but prior to achieving twenty years of credited service may
      receive a retirement allowance based upon a two percent multiplier; such
      allowance shall be deferred and shall not be payable until such time as the
      member qualifies for a voluntary retirement benefit had he or she remained
      employed as a Public Safety member.

B.    Effective January 1, 1995, a post-retirement adjustment of two percent per cent
      in January of each year, compounded annually, shall be provided for those
      Public Safety members who retire on or after January 1, 1995. Said adjustment
      shall be implemented the first January following actual retirement date but will be
      available only to those Public Safety members who retire with at least twenty-five
      years of credited service.



                                           15
C.    Upon the death of a Public Safety retirant who retired after June 30, 1972, and
      elected to receive his or her retirement allowance as a straight life retirement
      allowance, his or her surviving spouse, to whom he or she was married at both
      the date of his or her retirement and the date of his or her death, shall receive a
      retirement allowance equal to one-half of the retirant’s straight life retirement
      allowance. A spouse’s retirement allowance shall terminate upon the spouse's
      remarriage or death.

D.    The foregoing benefit levels are subject to the limits set forth in Section 2-263.

Sec. 2-237.    Retirement Allowance - general member; multipliers; early retirement
reduction

A.    Upon his or her retirement as provided in this article, a general member shall
      receive a straight-life retirement allowance, and he or she shall have the right to
      elect to receive his or her retirement allowance under an option provided in
      Section 2-240 in lieu of a straight-life retirement allowance. His or her straight-
      life retirement allowance shall consist of the following benefits:

      1.      An annuity which shall be the actuarial equivalent of his or her
              accumulated contributions standing to his or her credit in the annuity
              savings fund at the time of his or her retirement; and

      2.      A pension that, when added to his or her annuity, will provide a straight-life
              retirement allowance equal to the number of years and fraction of a year
              of his or her credited service multiplied by the percents set forth below of
              his or her final average compensation:

              a.     For a general member represented by the Kalamazoo Municipal
                     Employees Association who retires in 2006 the multiplier shall be
                     one and nine-tenths percent of his or her final average
                     compensation, but on or after January 1, 2007, the multiplier shall
                     be two percent of his or her final average compensation; further, a
                     post-retirement adjustment of one and one-half percent,
                     compounded annually, shall be provided to those KMEA members
                     who retire on or after March 13, 2000, so long as said retirant has
                     been retired for one year (if he or she retires at or after age sixty-
                     three (63)) or upon the retirant’s 64th birthday (if he or she retires
                     prior to age sixty-three (63)); said post-retirement adjustment shall
                     not apply to deferred retirements.

              b.     For an exempt employee who retires on or after January 1, 1999,
                     the multiplier shall be increased to two and three-tenths percent of
                     his or her final average compensation;

              c.     For a member represented by AFSCME who retires on or after
                     October 2, 2005, the multiplier shall be one and nine-tenths percent
                     of his or her final average compensation, but if on or after October


                                            16
                  2, 2006, the multiplier shall be two percent of his or her final
                  average compensation, but if on or after October 2, 2007, the
                  multiplier shall be two and one-tenth percent of his or her final
                  average compensation; further, a post-retirement allowance of one
                  percent, commencing one (1) year after the member's date of
                  retirement and compounded annually thereafter, shall be provided
                  to those AFSCME members who retire on or after March 1, 2000;
                  after the retirant reaches age seventy-five (75), said annual
                  adjustment shall be two percent, compounded annually. The
                  retirement adjustment shall not, however, apply to those who retire
                  pursuant to a deferred and / or a reduced retirement;

           d.     For a member represented by the ATU, the multiplier shall be two
                  and one-tenth percent of his or her final average compensation;
                  further, a post-retirement allowance of one percent, commencing
                  one (1) year after the member's date of retirement and
                  compounded annually thereafter, shall be provided to those ATU
                  members who retire on or after March 1, 2000; after the retirant
                  reaches age seventy-five (75), said annual adjustment shall be two
                  percent, compounded annually. The retirement adjustment shall
                  not, however, apply to those who retire pursuant to a deferred
                  retirement; and

           e.     For a member employed in a civilian, non-sworn capacity at the
                  Kalamazoo Department of Public Safety, and who is in a bargaining
                  unit represented by the Kalamazoo Police Officers Association,
                  who retires in 2006 the multiplier shall be one and seven-tenths
                  percent but on and after January 1, 2007, the multiplier shall be two
                  and one-tenth percent.

B.   Except as provided in subsection (C) below, in the event a general member, who
     either has less than twenty-five (25) years of credited service and retires before
     his or her attainment of the age of sixty-two, the pension portion of his or her
     retirement allowance provided in subsection (a) of this section shall be reduced
     four-tenths of one percent multiplied by the number of months and fraction of a
     month contained in the period from the date of his or her retirement to the date
     he or she would attain the age of sixty-two (62). In the event a general member
     who has twenty-five or more years of credited service retires on or after January
     1, 1974, and before his or her attainment of the age of fifty-seven, the pension
     portion of his or her retirement allowance provided in subsection (A) of this
     section shall be reduced four-tenths of one percent multiplied by the number of
     months and fraction of a month contained in the period from the date of his or her
     retirement to the date he or she would have attained the age of fifty-seven (57).

C.   The pension of a general member represented by AFSCME who retires on or
     after October 1, 1990, shall not be subject to reduction under subsection B. if the
     member at the time of retirement is at least sixty (60) years of age and has at


                                         17
      least twenty (20) years of credited service in a position or positions represented
      by AFSCME.

D.    The foregoing benefit levels are subject to the limits set forth in Section 2-263.

E.    The retirement allowance received by an exempt member who retires on or after
      June 1, 2006, shall be increased by 1.5% post-retirement allowance,
      compounded annually, commencing January 1 after the member has been
      retired for one full year, and on every January 1 thereafter; this increase shall be
      available, however, only to those members whose retirement allowance has not
      been, nor will be, deferred and who execute and submit, no later than May 30,
      2006, the required form in which the member agrees to have his or her
      contribution to the annuity fund increased, for the balance of the member’s
      employment with the City, by 2%, above and beyond that otherwise required by
      Section 2-248, including as it may be amended from time to time,

Section 2-237.1 - reserved

Sec. 2-238. Social security integration.

        According to such rules and regulations as the board shall from time to time
adopt, a general member who retires prior to his or her attainment of age sixty-two (62)
years may elect to have his or her straight life retirement allowance actuarially equated
to provide an increased retirement allowance payable to his or her attainment of age
sixty-two (62) years and a reduced retirement allowance payable thereafter. His or her
increased retirement allowance payable to his or her attainment of age sixty-two years
shall approximate the sum of his or her estimated social security primary insurance
amount. This section shall not apply to a member who elects Option A, B or C provided
in Section 2-240, or who retires under Section 2-242.

Sec. 2-239. Deferred retirement allowance.

A.    In the event a Public Safety member who has ten (10) or more years of credited
      service leaves the employ of the City prior to his or her voluntary retirement age,
      for any reason except his or her retirement or death, he or she shall be entitled to
      a retirement allowance provided for in Section 2-236A(2). In the event of a
      general member who has ten (10) or more years of Credited Service (or an
      exempt member or a Public Safety Administrator who has five (5) or more years
      of credited service or, commencing January 1, 2002, a KMEA member who has
      eight (8) years of credited service, or for a member of AFSCME who has nine (9)
      years of credited service, or a member of ATU who has ten (10) years of credited
      service) leaves the employ of the City prior to his or her voluntary retirement age,
      for any reason except his or her retirement or death, he or she shall be entitled to
      a retirement allowance provided for in Section 2-237. In either case, his or her
      retirement allowance shall be computed according to Section 2-236 or 2-237, as
      applicable, as the section was in effect at the time the member left City
      employment. The member's retirement allowance shall begin the first day of the



                                           18
      calendar month next following the date his or her application for same is filed with
      the board on or after his or her attainment of age sixty (60) years if a general
      member, fifty-five (55) years if a general member with fifteen (15) years of
      service, or fifty (50) years if a Public Safety member; provided, however, effective
      January 1, 1984, any Public Safety member shall be eligible after twenty-five (25)
      years of credited service or age fifty (50) with ten (10) years of credited service,
      whichever occurs first. If he or she withdraws his or her accumulated
      contributions, he or she shall thereupon forfeit his or her right to a deferred
      retirement allowance. A member shall also forfeit his or her right to a deferred
      retirement allowance if said member dies before filing said application or, if such
      an application is filed, before the date designated as his or her retirement date.
      In the event of such a death, the member’s accumulated contributions shall be
      paid to his or her beneficiary or estate. Except as otherwise provided in this
      article, the member shall not be given service credit for the period or his or her
      absence from City employment.

B.    Should any member, with five (5) or more years of credited service, who has not
      qualified for a deferred retirement allowance provided in subsection (a) of this
      section, be transferred by the City to the payroll of the State of Michigan or any of
      its political subdivisions, service rendered by him or her in the employ of the state
      or any of its political subdivisions subsequent to his or her transfer shall be
      regarded as City service for the sole and exclusive purpose only of qualifying for
      a deferred retirement allowance provided in subsection A of this section and in
      determining Final Average Compensation. The member's retirement allowance
      shall be computed according to Section 2-236 or 2-237, as applicable at the time
      of his or her last termination of membership, based upon his or her credited
      service rendered in the employ of the City. The member's retirement allowance
      shall begin thirty (30) days after the date his or her application for same is filed
      with the board on or after the date he or she leaves the employ of the state or
      any of its political subdivisions to whose payroll he or she was transferred, or
      attains age sixty (60) years, whichever is later. In the event he the member
      withdraws his or her accumulated contributions, he or she shall thereupon forfeit
      his or her entitlement to a retirement allowance provided in this subsection. If he
      the member withdrew his or her accumulated contributions prior to February 1,
      1958, he or she shall have the right to repay the amount withdrawn, together with
      regular interest from the date of withdrawal to the date of repayment, subject to
      the approval of the board.

C.    Any deferred retirement allowance payable hereunder shall satisfy the minimum
      distribution requirements set forth in Section 2-240 C.

Sec. 2-240. Retirement allowance options.

A.    Prior to the date of his or her retirement, but not thereafter, a member may elect
      to receive his or her retirement allowance as a straight life retirement allowance
      payable throughout his or her life, or may elect to receive the actuarial
      equivalent, determined as of the date of his or her retirement, of his or her


                                           19
straight life retirement allowance in a reduced retirement allowance payable
throughout his or her life, and nominate a beneficiary, in accordance with the
provisions of the options set forth below. If a member does not elect an option
prior to the date of his or her retirement, the member will be presumed to have
elected to receive his or her retirement allowance as a straight life retirement
allowance. A member electing or retirant receiving a straight life retirement
allowance may designate a beneficiary. If the retirant dies before the aggregate
amount of payments to him or her equals his or her accumulated contributions,
the remainder produced by subtracting said payments from said contributions
shall be paid to said beneficiary. If the beneficiary survives the retirant but dies
before receiving payment, that payment shall be made to the beneficiary’s estate.
If the beneficiary does not so survive or if there is none designated, the above
remainder shall be paid to the retirant’s estate:

1.    Option A. Cash Refund Annuity. Under Option A, formerly Option 2, if a
      retirant dies before he or she has received, in the annuity portions of his or
      her reduced retirement allowance, an aggregate amount equal to his or
      her accumulated contributions standing to his or her credit at the time of
      his or her retirement the difference between his or her accumulated
      contributions and the aggregate amount of annuity payments received by
      him or her shall be paid to such person or persons as he or she shall have
      nominated by written designation duly executed and filed with the board.
      If there is no such designated person surviving the retirant, such
      difference, if any, shall be paid to the retirant’s estate; or

2.    Option B. 100% Survivor Allowance. Under Option B, formerly Option 3,
      upon the death of a retirant, his or her reduced allowance shall be
      continued throughout the life of and paid to such person or persons having
      an insurable interest in his or her life, as he or she shall have nominated
      by written designation duly executed and filed with the board prior to the
      date of his or her retirement. Notwithstanding the foregoing, effective
      January 1, 2002, if the retirant’s beneficiary is not his or her spouse, the
      survivor allowance percentage shall be adjusted as required to satisfy the
      limit under Treasury Regulation Section 1.401(a)(9)-6, Q&A-2(c), based
      on the age differential between the retirant and the beneficiary.

3.    Option C. 50% Survivor Allowance.

      a.     Under Option C, formerly Option 4, upon the death of a retirant,
             one-half of his or her reduced retirement allowance shall be
             continued throughout the life of and paid to such person, having an
             insurable interest in his or her life, as he or she shall have
             nominated by written designation duly executed and filed with the
             board prior to the date of his or her retirement.

      b.     If a retirant who has elected Option B or Option C and his or her
             beneficiary under this Section 2-240 dies before the aggregate


                                     20
            amount of payments under said option equals the retirant’s
            accumulated contributions, the remainder, produced by subtracting
            said payments from said contributions, shall be paid as follows: If
            the beneficiary survived the retirant, the remainder shall be paid to
            the beneficiary’s estate. If the beneficiary did not survive the
            retirant, the above remainder shall be paid to the retirant’s estate.

4.   Option D. 10-year (120 months) Certain and Life Retirement Allowance.
     Under Option D, the retirant shall be paid a reduced retirement allowance
     for life with the provision that if the retirant’s death occurs before one
     hundred twenty (120) monthly payments have been made, the full reduced
     retirement allowance shall continue to be paid for the remainder of the one
     hundred twenty (120) months to such person or persons having an
     insurable interest in his or her life, and in such shares as the retirant shall
     have designated in writing and filed with the board. Notwithstanding the
     foregoing provisions of Option D, effective January 1, 2002, option D will
     not be available if the retirant is older than 92 when the benefit
     commences.

5.   Option E. 15-year (180 months) Certain and Life Retirement Allowance.

     a.     Under Option E, the retirant shall be paid a reduced retirement
            allowance for life with the provision that if the retirant’s death occurs
            before one hundred eighty (180) monthly payments have been
            made, the full, reduced retirement allowance shall continue to be
            paid for the remainder of one hundred eighty (180) months to such
            person or persons having an insurable interest in his or her life, and
            in such shares as the retirant shall have designated in writing and
            filed with the board. Notwithstanding the foregoing provisions of
            Option E, effective January 1, 2002 Option E will not be available if
            the retirant is older than 84 when the benefit commences.

     b.     Under Option D or Option E, if there is no designated person
            surviving the retirant, the then present value of the remaining
            unpaid monthly payments shall be computed and paid to the estate
            of the retirant. If a designated person survives the retirant and dies
            before receiving all the installments payable under the option plan,
            there shall be paid to the estate of such person the then present
            value of the remaining unpaid installments which would otherwise
            have been paid to such person.

6.   Option F. Under Option F, the retirement allowance shall be the same as
     under Option B for both the retirant and the beneficiary, except that:

     a.     The retirement allowance shall be reduced by an additional
            amount, as required by actuarial considerations, so that in the
            event the retirant were to survive the beneficiary, the retirant would


                                    21
                 then be able to receive a straight life retirement allowance at no
                 added cost to the system, based upon actuarial equivalence; and

           b.    In the event that the beneficiary predeceases the retirant, the
                 retirant’s retirement allowance becomes a straight life retirement
                 allowance.

     7.    Option G. Under Option G, the retirement allowance shall be the same as
           under Option C for both the retirant and the beneficiary, except that:

           a.    The retirement allowance shall be reduced by an additional
                 amount, as required by actuarial considerations, so that in the
                 event the retirant were to survive the beneficiary the retirant would
                 then be able to receive a straight life retirement allowance at no
                 added cost to the system, based upon actuarial equivalence; and

           b.    In the event that the beneficiary predeceases the retirant, the
                 retirant’s retirement allowance becomes a straight life retirement
                 allowance.

B    For the purposes of Section 2-240 of the Kalamazoo City Code, the term “upon
     the death of the retirant" shall mean the first day of the month immediately
     following the month in which the retirant died..

C.   Minimum Distribution Requirements.

     1.    General Rules. Notwithstanding any provision of the retirement system to
           the contrary, effective January 1, 2002, any distribution under the
           retirement system shall be made in accordance with Code Section
           401(a)(9) and the regulations established thereunder as they are
           amended and shall comply with the following rules:

     2.    Time and Manner of Distribution. To the extent required by Code Section
           401(a)(9) and the regulations promulgated thereunder, payment of the
           benefits of a member shall begin not later than the Required Beginning
           Date, which, for purposes of this section, means April 1 of the calendar
           year following the later of (i) the calendar year in which the member
           reaches age seventy and one-half (70 1/2), or (ii) the calendar year in
           which the member retires.

           a.    Death of Member Before Distributions Begin. If the member dies
                 before distributions begin, the member's entire interest will be
                 distributed, or begin to be distributed, no later than as follows:

                 (1)    If the member's surviving spouse is the member's sole
                        designated beneficiary, then distributions to the surviving
                        spouse will begin by December 31 of the calendar year
                        immediately following the calendar year in which the


                                       22
                  member died, or by December 31 of the calendar year in
                  which the member would have attained age seventy and
                  one-half (70½), if later.

           (2)    If the member's surviving spouse is not the member's sole
                  designated beneficiary, then distributions to the designated
                  beneficiary will begin by December 31 of the calendar year
                  immediately following the calendar year in which the
                  member died.

           (3)    If there is no designated beneficiary as of September 30 of
                  the year following the year of the member's death, the
                  member's entire interest will be distributed by December 31
                  of the calendar year containing the fifth (5th) anniversary of
                  the member's death.

           (4)    If the member's surviving spouse is the member's sole
                  designated beneficiary and the surviving spouse dies after
                  the member but before distributions to the surviving spouse
                  begin, this subsection ((2)a.), other than subsection (2)a.1.,
                  will apply as if the surviving spouse were the member.

           For purposes of this subsection ((2)a) and subsection (5),
           distributions are considered to begin on the member's Required
           Beginning Date (or, if subsection (2)a.4. applies, the date
           distributions are required to begin to the surviving spouse under
           subsection (2)a. If Annuity payments irrevocably commence to the
           member before the member's Required Beginning Date (or to the
           member's surviving spouse before the date distributions are
           required to begin to the surviving spouse under subsection (2)a.1.,
           the date distributions are considered to begin is the date
           distributions actually commence.

     b.    Form of Distribution. No payment option may be selected by a
           member unless the amounts payable to the member are expected
           to be at least equal to the minimum distribution required under
           Code Section 401(a)(9). The amounts payable must satisfy the
           minimum distribution incidental benefit requirements of Code
           Section 401(a)(9)(G).

3.   Determination of Amount to be Distributed Each Year.

     a.    General Annuity Requirements. If the member's interest is paid in
           the form of Annuity distributions under the Retirement System,
           payments under the Annuity will satisfy the following requirements:

           (1)    Distributions will be paid in periodic payments made at
                  intervals not longer than one year;


                                 23
           (2)    The distribution period will be over a life (or lives) or over a
                  period certain not longer than the period described in
                  subsection (4) or (5); and

           (3)    Once payments have begun over a period certain, the period
                  certain will not be changed even if the period certain is
                  shorter than the maximum permitted.

     b.    Amount Required to be Distributed by Required Beginning Date.
           The amount that must be distributed on or before the member's
           Required Beginning Date (or, if the member dies before
           distributions begin, the date distributions are required to begin
           under subsection (2)a.1. or 2. is the payment that is required for
           one payment interval. The second payment need not be made until
           the end of the next payment interval even if that payment interval
           ends in the next calendar year. Payment intervals are the periods
           for which payments are received, e.g., bi-monthly, monthly, semi-
           annually, or annually. All of the member's benefit accruals as of the
           last day of the first Distribution Calendar Year will be included in the
           calculation of the amount of the Annuity payments for payment
           intervals ending on or after the member's Required Beginning Date.

     c.    Additional Accruals After First Distribution Calendar Year. Any
           additional benefits accruing to the member in a calendar year after
           the first Distribution Calendar Year will be distributed beginning with
           the first payment interval ending in the calendar year immediately
           following the calendar year in which such amount accrues.

4.   Requirements for Annuity Distributions. If the member had begun
     receiving periodic payments from the Plan that were not annuitized, the
     balance shall be paid to the beneficiary at least as rapidly as under the
     payment option selected by the member. If the member had begun
     receiving payments in the form of a pension or annuity, the beneficiary
     shall be bound by all restrictions applicable to the pension or annuity, and
     the form of payment selected thereunder, and remaining payments, if any,
     shall be paid to the beneficiary in the same manner.

5.   Requirements for Minimum Distributions Where Member Dies Before Date
     Distributions Begin.

     a.    Member Survived by Designated Beneficiary. If the member dies
           before the date distribution of his or her interest begins and there is
           a designated beneficiary, the member's entire interest will be
           distributed, beginning no later than the time described in subsection
           (2)a.1. or 2., over the life of the designated beneficiary or over a
           period certain not exceeding:




                                  24
           (1)   Unless the Annuity starting date is before the first
                 Distribution Calendar Year, the Life Expectancy of the
                 designated beneficiary determined using the beneficiary's
                 age as of the beneficiary's birthday in the calendar year
                 immediately following the calendar year of the member's
                 death; or

           (2)   If the Annuity starting date is before the first Distribution
                 Calendar Year, the Life Expectancy of the designated
                 beneficiary determined using the beneficiary's age as of the
                 beneficiary's birthday in the calendar year that contains the
                 Annuity starting date.

     b.    No Designated Beneficiary. If the member dies before the date
           distributions begin and there is no designated beneficiary as of
           September 30 of the year following the year of the member's death,
           distribution of the member's entire interest will be completed by
           December 31 of the calendar year containing the fifth (5th)
           anniversary of the member's death.

     c.    Death of Surviving Spouse Before Distributions to Surviving
           Spouse Begin. If the member dies before the date distribution of
           his or her interest begins, the member's surviving spouse is the
           member's sole designated beneficiary, and the surviving spouse
           dies before distributions to the surviving spouse begin, this
           subsection (5) will apply as if the surviving spouse were the
           member, except that the time by which distributions must begin will
           be determined without regard to subsection (2)a.1.

6.   Definitions. The following definitions shall apply for purposes of this
     Section 2-240 C :

     a.    Designated Beneficiary means the individual who is designated as
           the beneficiary under the Retirement System and is the designated
           beneficiary under Code Section 401(a)(9) and Treasury Regulation
           Section 1-401(a)(9)-4.

     b.    Distribution Calendar Year means a calendar year for which a
           minimum distribution is required. For distributions beginning before
           the member's death, the first Distribution Calendar Year is the
           calendar year immediately preceding the calendar year which
           contains the member's Required Beginning Date. For distributions
           beginning after the member's death, the first Distribution Calendar
           Year is the calendar year in which distributions are required to
           begin pursuant to Section 2-240C(2)a.




                                 25
             c.     Life Expectancy means Life Expectancy as computed by use of the
                    Single Life Table in Treasury Regulation Section 1.401(a)(9)-9. This
                    definition of Life Expectancy shall apply only for purposes of
                    calculating minimum required distributions under Code Section
                    401(a)(9) and the Treasury Regulations thereunder and shall not
                    apply for purposes of calculating any pension or any benefit
                    assigned under an EDRO otherwise payable under the retirement
                    system.

Sec 2-241. Nonduty death retirement allowance

A.    Any member who continues in the employ of the City on or after the date he or
      she acquires ten (10) years of credited service (for an exempt member or Public
      Safety Administrator five (5) years of credited service, or for a member of KMEA
      eight years of credited service, or for a member of AFSCME nine years of
      credited service, or for a member of ATU ten years of credited service) may, at
      any time prior to the date of his or her retirement, elect Option B provided in
      Section 2-240, and nominate a beneficiary whom the Board finds to be
      dependent upon for at least fifty percent of his or her financial support. Prior to
      the date of his or her retirement, a member may revoke his or her election of
      Option B and nomination of beneficiary and prior to the date of his or her
      retirement, he or she may again elect Option B and nominate a beneficiary as
      provided in this subsection. Upon the death of a member who has an Option B
      election in force, his or her beneficiary, if living, shall immediately receive a
      retirement allowance, which is the actuarial equivalent of a straight life retirement
      allowance computed according to Section 2-236, in the case of a Public Safety
      member, or according to Section 2-237, exclusive of subsection (B), in the case
      of a general member, computed in the same manner in all respects as if the
      member had retired the day preceding the date of his or her death,
      notwithstanding that he or she might not have attained his or her voluntary
      retirement age. If a member has an Option B election in force at the time of his
      or her retirement, his or her election of Option B and nomination of beneficiary
      shall thereafter continue in force unless, prior to the date of his or her retirement,
      he or she elects a straight life retirement allowance or another option provided in
      Section 2-240. No retirement allowance shall be paid under this subsection on
      account of the death of a member, if any benefits are paid or are to be payable
      under Section 2-241B or 2-244 on account of his or her death.

B.    Any member who continues in the employ of the City on or after the date he or
      she acquires ten (10) years of credited service (for an exempt member or Public
      Safety Administrator five (5) years of credited service, or for a member of KMEA
      eight years of credited service, or for a member of AFSCME nine years of
      credited service, or for a member of ATU ten years of credited service) and does
      not have an Option B election provided in subsection A of this section in force,
      and dies while in the employ of the City and leaves a spouse, the spouse shall
      immediately receive a retirement allowance computed according to Section 2-
      237, exclusive of subsection B, in the same manner and all respects as if the


                                            26
      member had retired the day preceding the date of his or her death,
      notwithstanding that he or she might not have attained his or her voluntary
      retirement age, elected Option B provided in Section 2-240 and nominated his or
      her spouse as beneficiary. No retirement allowance shall be paid under this
      subsection on account of the death of a member, if any benefits are paid or are
      to be payable under Sections 2-241A and 2-244 on account of his or her death.

C.    If any Public Safety member continues in the employ of the City on or after the
      date he or she acquires ten (10) years of credited service, and does not have an
      Option B election provided in subsection A of this section in force, and dies while
      in the employ of the City, the applicable benefits provided in paragraphs (1), (2)
      and (3) shall be paid:

      1.     The accumulated contributions standing to the member’s credit in the
             annuity savings fund at the time of his or her death shall be paid in
             accordance with the provisions of Section 2-247.

      2.     The surviving spouse of the deceased person shall receive a pension of
             thirty-three and one-third percent of his or her final compensation. A
             surviving spouse's pension shall terminate upon his or her remarriage or
             death, and shall be subject to Section 2-245 and to subsection B of this
             section.

      3.     If the deceased person leaves an unmarried child or children under age
             eighteen years, fifteen percent of the final compensation shall be paid for
             one child or twenty-five percent of the final compensation for two or more
             children. Upon a child’s adoption, marriage, death or attainment of age
             eighteen years, whichever occurs first, his or her pension shall terminate
             and the board shall recalculate and make payment of the deceased
             person’s final compensation to his remaining eligible children under
             eighteen years of age, if any, in the percentages set forth in this section.
             Any pension payable under this paragraph shall be subject to Section 2-
             245.

D.    If a beneficiary elects to take benefits under Section 2-240 or 2-241A,
      then no benefits shall be paid under Section 2-241C on account of his or
      her death.

Sec. 2-242. Disability retirement.

A.    A member who is in the employ of the City, has 10 or more years of credited
      service (for an exempt employee or Public Safety Administrator five years of
      credited service, or, for a member of KMEA, eight years of credited service, or for
      a member of AFSCME who as nine years of credited service, or for a member of
      ATU who has ten years of credited service) and becomes totally and
      permanently incapacitated for duty in the employ of the City, may be retired by
      the Board upon application of the member or his/her department head, provided



                                          27
     that, after medical examination of the member made or by under the direction of
     the medical director, the medical director certifies to the Board that the member
     is mentally or physically totally incapacitated for duty in the employ of the City,
     will probably be permanently incapacitated and should be retired. Upon his
     retirement, the member shall receive a disability retirement allowance provided in
     Section 2-243.

     1.    A decision by the board to grant either a duty or non-duty disability
           retirement to any employee, including Public Safety officers, shall be a
           final decision on that employee’s fitness to work. A decision by the board
           to retire any employee, including a Public Safety officer, for reasons of
           disability shall completely terminate that individual’s right to continue to
           work for the City, and shall be effective immediately, regardless of whether
           that individual subsequently remains on the payroll or is otherwise
           compensated by the City after the date of the board’s decision by virtue of
           accumulated sick pay, vacation pay, worker’s compensation, or any other
           type of payment of wages, salary or any other type of compensation.

B.   The 10 years (for exempt employees or Public Safety Administrators five years,
     or for a member of KMEA, eight years, or for a member of AFSCME who has
     nine years of credited service, or a member of ATU who has ten years of credited
     service) of service requirement provided in Subsection (A) of this section shall be
     waived in the case of a member who the Board finds is totally and permanently
     disabled for duty in the employ of the City as the natural and proximate result of
     the personal injury or disease arising out of and in the course of his/her City
     employment. [Amended 3-6-2006 by Ord. No. 1798]

C.   Beginning January 1, 1984, if a, Public Safety member is totally incapacitated for
     duty as a police officer, fire fighter or Public Safety officer and the board finds
     that his or her disability is the natural and proximate result of causes arising out
     of and in the course of his or her employment as a police officer or fire fighter
     with the City and that the employee will likely be permanently so incapacitated,
     the member shall be entitled to a duty disability retirement allowance calculated
     in the same manner as a voluntary retirement benefit, except that during the
     member's worker's compensation period, his or her duty disability retirement
     allowance under this subsection shall not exceed the difference between his or
     her final compensation and his or her weekly worker's compensation award
     converted to an annual basis.

     1.    If the member disagrees with the finding of the medical director, he or she
           shall have the right to submit reports from his or her medical doctor. In the
           event a dispute continues to exist, the medical director and the member's
           doctor shall select a third doctor who shall provide the board with an
           opinion concerning the disputed matters before the board renders its
           decision.




                                          28
     2.     If a dispute continues to exist concerning the meaning or application of the
            retirement system after a decision by the board, such dispute shall not be
            grievable under labor agreements, but subject to review, as provided by
            applicable law, in the Kalamazoo County Circuit Court or other court as
            may be appropriate.

     3.     The Public Safety Member may elect to waive the provisions of the duty
            disability retirement he or she is entitled to and accept such retraining,
            rehabilitation and/or other employment as the City may choose to offer.
            The Public Safety Member shall retain any benefits he or she has earned
            in the police/fire portion of the retirement system.

D.   The board of trustees shall have the right and opportunity to have a medical
     examination conducted of the person whose injury or sickness is the basis of a
     disability benefit during the pendency of a claim or period of payment, subject to
     the following:

     1.     Examination may be made no more often than once during every twelve-
            month period, except that the board may require examination at any time
            there is specific reason to believe that the disability or condition giving rise
            thereto no longer exists;

     2.     The examination shall be limited to the condition upon which the disability
            is based.

     3.     The expense of the examination and all other reasonable incidental costs,
            such as travel, meals and lodging at standard rates for City employee
            travel, will be borne by the retirement system under Section 2-251 of the
            Kalamazoo City Code.

     4.     If the board at any time believes that the facts of the case do not require
            further examination, the board may waive examination for any time the
            board deems appropriate based upon the facts of the case, but such
            waiver may be rescinded by the board at any time.

     5.     Notification of the time, date and place of the examination shall be mailed
            to the retirant at the address to which his or her benefits are mailed and
            said notice shall be mailed at least thirty (30) days prior to the date of the
            examination.

E.   If the retirant fails or refuses examination, or if upon reviewing the medical
     information received, the board is not satisfied that the disability still exists, the
     board shall so inform the retirant. If, within thirty days of such notice being sent,
     the retirant has not requested a hearing on the mailer, the board may terminate
     the disability benefits. The termination of benefits under this section shall not
     affect eligibility for nondisability benefits. If a hearing is timely requested, the
     retirant shall be permitted to present evidence, question witnesses, and make
     argument for nontermination. The board may obtain and consider any relevant


                                           29
       evidence. If it finds that the disability no longer exists, benefits shall be
       terminated. The time, date, and place of the hearing shall be set by the board.
       Notices shall be to the retirant at the address to which his or her benefits are
       sent.

Sec. 2-243. Disability retirement allowance (duty and non-duty).

A.     If a member retires on account of his or her total and permanent disability, as
       provided in Section 2-242, and the board finds that his or her disability did not
       occur as the result of causes arising out of and in the course of his or her actual
       performance of duty in the employ of the City, he or she shall receive a disability
       retirement allowance computed according to Section 2-236, if he or she is a
       Public Safety Member, or according to Section 2-237, exclusive of subsection
       (b), if he or she is a general member. His or her disability retirement allowance
       shall be subject to Sections 2-245 and 2-246. Prior to the date of his or her
       retirement, he or she shall have the right to elect to receive his or her retirement
       allowance under an option provided in Section 2-240 in lieu of a straight life
       retirement allowance.

B.     If a member retires before his or her voluntary retirement age on account of his
       or her total and permanent disability, as provided in Section 2-242, and the board
       finds that his or her disability is the natural and proximate result of cause arising
       out of and in the course of his or her actual performance of duty in the employ of
       the City, he or she shall receive a disability retirement allowance computed
       according to Section 2-236, if he or she is a Public Safety member or according
       to Section 2-237, exclusive of subsection B, if he or she is a general member. In
       computing his or her disability retirement allowance, the credited service to be
       used shall be the sum of his or her credited service in force at the time of his or
       her retirement and the number of years, and fraction of a year, in the period from
       the date of his or her retirement to the date he or she would attain his voluntary
       retirement age had he or she continued in City employment. During his or her
       worker's compensation period, his or her disability retirement allowance shall not
       exceed the difference between his or her final compensation and his or her
       weekly worker’s compensation award converted to an annual basis. His or her
       disability retirement allowance shall be subject to Section 2-246. Prior to the
       date of his or her retirement, he or she shall have the right to elect to receive his
       or her retirement allowance under an option provided in Section 2-240 in lieu of a
       straight life retirement allowance.

Sec. 2-244. Benefits for death in line of duty.

A.     In the event a member dies as the result of a personal injury or disease arising
       solely out of and in the course of his or her employment by the City, or a disability
       retirant dies within a period of five (5) years from and after the effective date of
       his or her retirement, and prior to attainment of age sixty (60) years, as the result
       of the same injury or disease for which he or she was retired, and in either case
       such death, injury or disease resulting in death is found by the board to have


                                            30
been the result of his or her actual performance of duty in the employ of the City,
the applicable benefits provided in paragraphs (1), (2), (3), (4) and (5) of this
subsection shall be paid.

1.    The accumulated contributions standing to the member’s credit in the
      annuity savings fund at the time of his or her death shall be paid in
      accordance with the provisions of Section 2-247; or

2.    The surviving spouse of the deceased person shall receive a pension of
      thirty-three and one-third percent of his or her final compensation,
      provided that, in the case of a disability retirant, he or she was the spouse
      of the member at the time of the member's retirement. A surviving
      spouse's pension shall terminate upon his or her remarriage or death, and
      shall be subject to Section 2-245 and to subsection B of this section, and

3.    If, in addition to a surviving spouse, the deceased person leaves an
      unmarried child or children under age eighteen (18) years, each such child
      shall receive a pension of an equal share of twenty-five percent of his or
      her final compensation. Upon a child’s adoption, marriage, death or
      attainment of age eighteen (18) years, whichever occurs first, his or her
      pension shall terminate and the board shall redistribute the shares of
      twenty-five percent of the deceased person’s final compensation to his or
      her remaining eligible children under age eighteen (18) years. Any
      pension payable under this paragraph shall be subject to Section 2-245
      and to subsection B of this section, but

4.    If there is no spouse surviving the deceased person, or if his or her
      surviving spouse dies or remarries before his or her youngest unmarried
      child attains age eighteen (18) years, his or her unmarried child or children
      under age eighteen (18) years shall each receive a pension of twenty-five
      percent of his or her final compensation; provided that, if there are more
      than two (2) such surviving children, each such child shall receive a
      pension of an equal share of fifty percent of his or her final compensation.
      Upon a child’s adoption, marriage, death or attainment of age eighteen
      (18) years, whichever occurs first, his or her pension shall terminate and
      the board shall redistribute the shares of fifty percent of the deceased
      person’s final compensation to his or her remaining eligible children under
      age eighteen (18) years. In no case shall any such child’s pension exceed
      twenty-five percent of the deceased person’s final compensation. Any
      pension payable under this paragraph shall be subject to Section 2-245
      and to subsection B of this section; or

5.    If there is neither a surviving spouse nor children eligible to receive a
      pension provided in this section surviving the said deceased person, there
      shall be paid to each his or her dependent father and dependent mother,
      whom the board, after investigation, finds to have been actually dependent
      upon the deceased person for financial support, a pension of sixteen and


                                    31
              two-thirds percent of his or her final compensation. Any pension payable
              under this paragraph shall be subject to Section 2-245 and to subsection
              B of this section, and shall in no case exceed seven hundred twenty
              dollars ($720.00) a year.

B.     If a beneficiary becomes entitled to a retirement allowance provided in Section 2-
       240 or 2-241 on account of the death of a retirant or member, and he or she
       elects to take under Sections 2-240 or 2-241, then no benefits shall be paid
       under this section on account of his or her death. Any pension due any child
       under subsection (A) of this section may, in the discretion of the board, be paid to
       the parent or person who stands in loco parentis to such child; provided that, if
       the board finds that such child is not being properly cared for, the board may
       require the appointment of a guardian for the purpose of receiving such pension.

Sec. 2-245. Worker’s compensation - subrogation of rights against third party.

        In the event a person becomes entitled to a pension or other benefits, payable by
the retirement system, as the result of an accident or injury caused by the act of a third
party, the City shall be subrogated to the rights of such person against such third party
to the extent of the benefits which the City pays or becomes liable to pay.

Sec. 2-246. Return of disability retirant to city employ; payment proportional to available
funds.

       A disability retirant who has been or who shall be returned to the employ of the
City shall again become a member of the retirement system. His or her credited service
in force at the time of his or her retirement shall be restored to his or her credit. He or
she shall be given service credit for the period he or she was receiving a disability
retirement allowance, if within such period, he or she was in receipt of worker’s
compensation on account of his or her total and permanent disability arising out of and
in the course of his or her city employment; otherwise, he or she shall not be given the
service credit for the period he or she was in receipt of a disability retirement allowance.

Sections 2-246.1 – 2-246.4 reserved

Sec. 2-246.5. Periodic payment.

A.     Commencing in the year 2001, and thereafter occurring every third year, subject
       to the limitations set forth below, a non-guaranteed payment shall be paid from
       the system assets to certain retirees; for each such person, the amount to be
       paid shall be the product of forty-three dollars and sixty-seven cents ($43.67)
       (subject to the increases allowed below) times the sum of the retiree's years and
       fraction thereof of credited service plus the number of years and fraction thereof
       which have elapsed between the retirant’s date of retirement and December 31
       of the year preceding the payment to be made.

B.     The retirees eligible to receive said periodic payment shall be those who retired
       prior to both January 1, 2000 and at least five (5) years prior to December 31 of


                                            32
     the year preceding the periodic payment to be made, and whose annual
     retirement allowance is less than twenty-eight thousand dollars ($28,000.00), but
     who are not eligible for a post-retirement adjustment. In those instances where a
     retirement allowance is divided by an EDRO, the “retired prior to” language
     above applies to the actual retiree, not the alternate payee; the “less than twenty-
     eight thousand dollars ($28,000.00)" requirement shall apply to the combined
     amounts being received by the retiree and his or her alternate payee.

C.   If the periodic payment provided for above, when added to the existing retirement
     allowance, exceeds twenty-eight thousand dollars ($28,000.00), the periodic
     payment shall be reduced by the amount said sum exceeds twenty-eight
     thousand dollars ($28,000.00). In those instances where a retirement allowance
     is divided by an EDRO, if the periodic payment(s), when added to the existing
     retirement allowances, exceed twenty-eight thousand dollars ($28,000.00), the
     periodic payment(s) shall be reduced by the amount said sum exceeds twenty-
     eight thousand dollars ($28,000.00).

D.   A beneficiary currently receiving a retirement allowance, or an individual who in
     the future becomes a beneficiary and who thereafter receives such an allowance,
     shall be entitled to receive the periodic payment based upon the same
     calculations (that is, the beneficiary’s retirant’s years of credited service and
     years since retirement) and subject to the same limitations, as described herein.

E.   In computing future retirement allowance payments, or any other payment due to
     a retirant or beneficiary, the payments provided herein shall not be considered.

F.   The periodic payment described herein shall be made in June every third year,
     commencing 2001; however, no payment shall be made in any year in which the
     fund’s actuary projects (based upon a valuation of the fund as of December 31 of
     the prior year) the need for City contributions to the fund (for one (1) or more
     actuarial grouping) within ten (10) years of the projection nor if the actuary
     recommends a contribution by the City (for one (1) or more actuarial grouping)
     for that year. In the event a periodic payment is not made in a year in which it
     would otherwise occur (because of the actuary’s projection or recommendation),
     then the payment shall be made in the next year in which no such actuarial
     projection or recommendation is made. In the event that a periodic payment is
     so delayed, future periodic payments shall be made every third year thereafter
     (so long as not prohibited by an actuarial projection or recommendation).

G.   When calculating the amount of the periodic payment for each individual after
     2001, the forty-three dollars and sixty-seven cents ($43.67) amount referenced
     above shall increase by the lesser of two percent per year or the C.P.I. (i.e., the
     Consumer Price Index, U.S. City Average, all urban consumers) which exists for
     the period of time between December 31 of the year preceding the last payment
     and December 31 of the year preceding the payment to be made.




                                          33
H.    In no event, however, shall the total of all of the periodic payments in one (1)
      year exceed the amount of seven hundred and fifty thousand dollars
      ($750,000.00): in the event the total payments are in excess of that amount, each
      individual’s payment shall be reduced proportionately to reduce the total payment
      to said seven hundred and fifty thousand dollars ($750,000.00). Any periodic
      payment due to a retiree who is alive on December 31 of the year prior to the
      payment, but who dies before the payment is made, shall be made (one (1) time
      only) to that retiree’s estate or beneficiary, as the case may be.

I.    Notwithstanding any of the above, the City administration shall be entitled to
      recommend to the City Commission at any time that the periodic payments be
      reduced or eliminated and the City Commission shall, at any time, be entitled,
      with or without such a recommendation, to reduce or eliminate said periodic
      payments.

Sec. 2-247. Refund of accumulated contributions.

A,    Should any member cease to be employed by the City before he or she attains
      his voluntary retirement age, for any reason except his or her retirement or death,
      he shall be paid his accumulated contributions standing to his or her credit in the
      annuity savings funds, as he or she shall demand in writing on forms furnished
      by the board.

B.    Should a member die and no retirement allowance or pension will become
      payable by the retirement system on account of his or her death, except as
      provided in Section 2-244, his or her accumulated contributions standing to his or
      her credit in the annuity savings fund at the time of his or her death shall be paid
      to such person or persons as he or she shall have nominated by written
      designation duly executed and filed with the board. If there is no such
      designated person surviving the member his or her accumulated contributions
      shall be paid to his or her legal representative.

C.    If a member dies without heirs, and without a designated beneficiary surviving
      him or her accumulated contributions standing to his or her credit in the annuity
      savings fund at the time of his or her death may be used to pay his or her burial
      expenses, not to exceed a reasonable sum to be determined by the board,
      provided he or she leaves no other estate sufficient for such purpose.

D.    Payments of accumulated contributions, as provided in this section, may be
      made in installments according to such rules and regulations as the board may
      from time to time adopt.

 E.   Code Section 401(a)(31) Direct Rollovers Notwithstanding any provision of the
      Plan to the contrary, for distributions made on or after January 1, 1993, a
      Distributee may elect, at the time and in the manner prescribed by the Board of
      Trustees, to have any portion of an Eligible Rollover Distribution paid directly to
      an Eligible Retirement Plan specified by the Distributee in a Direct Rollover.



                                           34
Sec. 2-248. Annuity savings fund; members’ contributions; transfers.

A.    The annuity savings fund is hereby created. It shall be the fund in which shall be
      accumulated at regular interest, the contributions deducted from the
      compensation of members (or ”picked up” by the City pursuant to Section 2-248F
      to provide for their annuities, and from which shall be made refunds and transfers
      of accumulated contributions as provided in this article.

B.    Each member shall contribute a percentage of his or her annual compensation to
      the annuity fund, which percentage shall be as follows:

      1.     For Public Safety members, eight percent throughout 1998, seven and
             one quarter percent throughout 1999, and six and one-half percent on and
             after January 1, 2000, except that on and after January 1, 1999, those
             Public Safety members who are members of the Kalamazoo Police
             Supervisors’ Association with at least twenty-six (26) but less than twenty-
             nine (29) years of credited service need make no contributions.

      2.     For members represented by the Kalamazoo Municipal Employees
             Association, three percent, except that on and after March 13, 2000, the
             percentage shall be two percent and except that on and after January 1,
             2001, the percentage shall be one percent, unless increased as provided
             by the collective bargaining agreement.

      3.     For members represented by the ATU, two percent, except that
             commencing March 1, 2000, the amount shall be one percent.

      4.     For civilian, non-sworn employees of Public Safety represented by the
             Kalamazoo Police Officers Association, four percent except that on and
             after January 12, 2007, it shall be one percent;

      5.     For a member who is represented by the AFSCME effective October 2,
             2006, one percent, but that will increase to two percent if the funding level
             of the pension fund drops below 120%;

      6.     For members who are exempt, 1.5 percent, except for those exempt
             members hired on or after June 1, 2006, it shall be 3 percent; and except
             for those exempt members who pay an additional two percent pursuant to
             2.237e above.

C.    The officer or officers responsible for making the payroll shall cause the
      applicable contribution provided for in subsection B of this section to be deducted
      from the compensation of each member (or “picked up” by the city pursuant to
      Section 2-248F with respect to each and every payroll, for each and every payroll
      period, so long as he or she remains a member in the employ of the City. Such
      contribution, when thus deducted or “picked up” shall be paid to the retirement
      system and shall be credited to his or her individual account in the annuity
      savings fund. Every member shall be deemed to consent and agree to the


                                           35
     deductions or salary reductions made and provided for herein. Payment of his or
     her compensation less such deductions or reductions, shall be a full and
     complete discharge and acquittance of all claims and demands whatsoever for
     services rendered by him or her during the period covered by such payment,
     except as to benefits provided under this article. The member’s contributions
     provided for herein shall be made notwithstanding that the minimum
     compensation provided by law for any member shall be thereby changed.

D.   In addition to the contributions deducted from the compensation of a member, as
     herein before provided, he or she shall deposit in the annuity savings fund, by a
     single contribution or by an increased rate of contribution, as approved by the
     board, the amount, if any, he or she withdrew from the annuity savings fund,
     together with regular interest from the date of withdrawal to the date of
     repayment. In no case shall any member be given credit for service rendered
     prior to the date he or she withdrew his or her accumulated contributions until he
     or she repays the annuity savings fund all amounts due the fund by him or her.

E.   Upon the retirement of a member, his or her accumulated contributions shall be
     transferred from the annuity savings fund to the retirement reserve fund. At the
     expiration of a period of three (3) years from the date an employee ceases to be
     a member, any balance standing to his or her credit in the annuity savings fund,
     unclaimed by the member or his or her legal representative, shall remain a part
     of the monies of the retirement system, provided he or she does not have
     entitlement to a retirement allowance payable by the retirement system.

F.   The City Commission may, from time to time by resolution, designate one (1) or
     more classes, groups or categories of City employees who shall have their
     employee contributions “picked up” as hereinafter described, provided that:

     1.    The City Commission may, by appropriate resolution, likewise withdraw
           such designation from one (1) or more classes, groups or categories of
           City employees.

     2.    All designations or withdrawals of designations shall be done so as not to
           discriminate in favor of employees who are officers or highly compensated
           individuals, within the meaning of Section 401(a)(4) of the Internal
           Revenue Code.

           a.     Effective as provided in the following paragraph, the contributions,
                  required by Section 2-248B in respect of those employees who are
                  included within a class, group or category so designated by the City
                  Commission, shall be “picked up” by the City in lieu of their
                  employee contributions, as permitted by Section 414(h) of the
                  Internal Revenue Code, and shall be treated as employer
                  contributions in determining tax treatment under said Code. The
                  City shall “pick up” these employee contributions from funds made
                  available as a result of each such employee’s authorization to


                                         36
                     reduce his or her salary or wages in an amount corresponding to
                     the contribution required by Section 2-248(B).          Employee
                     contributions “picked up” by the City pursuant to this subsection
                     shall be treated for all other purposes in the same manner and to
                     the same extent as employee contributions made prior to the
                     effective date of this subsection. No employee in any such class,
                     category or group shall have the option of choosing to receive
                     contributed amounts directly, instead of having them paid by the
                     city to the retirement system.

Sec. 2-249. Retirement reserve fund.

        The retirement reserve fund is hereby created. It shall be the fund from which
shall be paid all annuities and pensions payable as provided in this article. Should a
disability retirant return to the employ of the City, his annuity reserve at the date of his or
her return shall be transferred from the retirement reserve fund to the annuity savings
fund and shall be credited to his or her individual account therein; and his or her
pension reserve shall be transferred to the pension reserve fund.

Sec. 2-250. Reserve for employer contributions; City contribution.

A.     The reserve for employer contributions shall be the account to which shall be
       credited contributions made by the City to the retirement system and from which
       shall be made transfers as provided in this section.

B.     Each year following receipt of the report of the annual actuarial valuation, the
       excess, if any, of the reported value of retirement allowance being paid and likely
       to be paid retirants and beneficiaries over the balance in the reserve for retired
       benefit payments shall be transferred from the reserve for employer contributions
       to the reserve for retired benefit payments.

C.     The financial objective of this section is to require City contributions to the
       retirement system each fiscal year which together with the contributions made by
       members during the fiscal year shall be sufficient to (i) fully fund the cost of
       benefits likely to be paid on account of service rendered by members during the
       year, and (ii) finance unfunded costs of benefits likely to be paid on account of
       service rendered by members prior to the current year over a period of not more
       than forty (40) years. Such contributions shall be computed by the actuary as
       level percentages of member payroll in accordance with generally accepted
       actuarial principles on the basis of such rates of interest and tables of experience
       as the Investment Committee recommends and the City Commission shall from
       time to time adopt. The City may also contribute the anticipated cost of any
       insurance coverage provided retirants and beneficiaries through the retirement
       system. The Investment Committee shall annually certify to the Commission the
       contributions determined according to this section.




                                              37
D.    Forfeited amounts, if any, resulting from the operation of the retirement system
      shall be applied to reduce the next succeeding contribution or contributions
      required to be made to the reserve by the City under this section and shall not be
      applied to increase any pensions and/or annuities payable to any member under
      the retirement system.

Sec. 2-251. Expenses.

      Expenses for the administration of the retirement system shall be paid from
investment income.

Sec. 2-252.1 Investment committee and management of Trust Fund.

       There is hereby created an Investment Committee which shall manage the
assets of the system and have full power to invest and reinvest such assets, subject to
the provisions of Act 314 of the Public Acts of 1965 (MCL 38.1132 et seq.) as amended
and any other applicable law or regulation. The committee shall have the power to
purchase notes, bonds, or other obligations of the City before or after the same are
offered to the public and with or without advertising for bids. The committee shall have
power to hold, purchase, sell, assign, transfer, and dispose of any securities and
investments in which any of the funds of the retirement system have been invested, as
well as the proceeds of such investments and any monies belonging to the system. The
provisions of this subsection shall be subject to such conditions and restrictions as the
City Commission may from time to time impose by resolution.


Sec. 2-252.2 Investment committee; membership, appointment, duties.

A.    Membership, appointment. The investment committee shall be composed of no
      less than three (3) nor more than seven (7) members, all of whom shall have a
      financial background and none of whom shall be participants in the system.
      Additionally, to avoid a conflict of interest, or the appearance thereof, no member
      shall be employed by or associated with (except in the capacity of outside
      director) any organization that provides services similar to those retained or used
      by the committee. One (1) member may be a member of the Board of Trustees
      of the system.

      The investment committee members shall serve without compensation and if any
      member fails to attend three (3) consecutive regularly scheduled meetings of the
      committee, unless in each case excused for cause by the remaining members,
      his or her office will be deemed vacated. Within sixty (60) days of any time that
      the number of committee members becomes less than three (3), the Mayor, with
      the consent of the City Commission, shall appoint enough new members so that
      the committee consists of three (3) members. At any time the committee
      consists of less than seven (7) members but more than two (2) members, and a
      majority of the committee desires the addition of one or more new members, the
      Mayor, with the consent of the City Commission, shall appoint new members in



                                           38
     such number as requested by the then existing committee. All members shall
     serve three year terms with the exception of those who are appointed to replace
     those with unexpired portions of their terms; said replacement members shall
     serve the unexpired portion of the term, in the same manner as the office was
     previously filled.

     The committee shall hold meetings regularly, at least quarterly, and shall
     designate the time and place thereof. A majority of the committee’s membership
     shall constitute a quorum at any meeting of the committee. Each member shall
     be entitled to one (1) vote on each question before the committee; at any
     meeting with a quorum, decisions shall be made by affirmative vote of a majority
     of those present; except that should the committee’s membership become three
     (3), the entire membership shall constitute a quorum and all decisions shall be
     made by a unanimous vote of the entire membership. The committee shall adopt
     its own rules of procedure and shall keep a record of its proceedings. All
     meetings of the committee shall be open to the public. The City Commission
     may appoint a Commissioner as liaison to the committee.

B.   Officers.

     1.     The committee shall elect a chairperson and chairperson pro tem.

     2.     The director of finance shall serve as secretary to the committee and
            provide staff support.

     3.     The City Attorney shall be the legal advisor to the committee.

C    Duties. The duties of the investment committee shall be as follows:

     1.     To formulate and recommend to the City Commission investment policies,
            strategies, and guidelines for approval by the City Commission.

     2.     To carry out such investment policies, strategies, and guidelines as
            approved by the City Commission.

     3.     To establish investment performance monitoring systems and report the
            results of said system quarterly to the City Commission.

     4.     To investigate and recommend investment managers, advisors, actuaries,
            and other necessary services to the City Commission for its approval.

     5.     To recommend to the City Commission for approval the allocation of
            annual contributions and redistribution of funds, including investment
            income, to investment managers, reserves and accounts.

     6.     To insure that investment records are properly maintained.




                                         39
      7.     To serve as the primary contact with investment managers, actuaries and
             advisors.

      8.     To insure that the plan is properly audited.

      9.     To provide the actuary with data to make the annual valuation, which shall
             show the financial condition of the system by means of an actuarial
             valuation of its assets and liabilities and be rendered annually to the City
             Commission.

      10.    To recommend actuarial assumptions to the City Commission.

      11.    To perform such other duties as the City Commission may from time to
             time direct.

Sec. 2-252.3. Available cash and use of assets.

There shall be kept on deposit available cash not to exceed five percent of the total
assets of the retirement system. The Trust Fund shall be held for the sole purpose of
meeting disbursements for pensions, annuities and other payments authorized by this
article and shall be used for no other purpose. It shall not be possible, at any time prior
to satisfaction of all liabilities to members and their beneficiaries under the retirement
system, for any part of said assets to be used for, or diverted to, purposes other than for
the exclusive benefit of members and their beneficiaries and for paying reasonable
expenses of the retirement system and the Trust Fund. The description of the various
funds of the retirement system, as contained in this article, shall be interpreted to refer
to the accounting records of the system.

Sec. 2-253. Method of making payments.

All payments from monies of the retirement system shall be made according to charter
and ordinance provisions. No check shall be issued unless it shall have been
previously authorized by a specific or continuing resolution adopted by the board or
investment committee.

Sec. 2-254. Income fund; allowance of regular interest.

A.    The income fund is hereby created. It shall be the fund to which shall be credited
      all interest, dividends and other income from investments of the retirement
      system: all gifts and bequests received by the system; all unclaimed accumulated
      contributions as provided in this article; and all other monies received by the
      system the disposition of which is not specifically provided in this article. There
      shall be paid or transferred from the income fund all amounts required to credit
      regular interest to the annuity savings fund, retirement reserve fund and the
      pension reserve fund, as provided in this article. Wherever the investment
      committee determines the balance in the income fund is more than sufficient to
      cover current charges to the fund, such excess amount, or any part thereof, may
      be used to provide contingency reserves or to meet special requirements of the


                                            40
      other funds of the system, except the expense fund, as the investment committee
      shall determine. However, any amounts left in the income fund after meeting the
      requirements contained herein shall at the end of each year be automatically
      credited to the employer’s reserve. Whenever the balance in the income fund is
      insufficient to meet the charges to the fund, the amount of such insufficiency shall
      be transferred from the pension reserve fund to the income fund.

B.    The investment committee shall, at the end of each fiscal year, allow regular
      interest on the members' individual balances in the annuity savings fund at the
      beginning of the fiscal year, and on the mean balances in the retirement reserve
      fund and the pension reserve fund. The amounts of interest so allowed and
      credited shall be charged to the income fund.

Sec. 2-255. Previous assets credited to retirement system.

A.    All assets held as of the effective date of ordinance No. 378 for the purpose of
      financing the retirement system established by ordinance No. 188 shall be
      credited to the retirement system as amended by ordinance No. 378. Such
      credits shall be made as follows:

      1.     Assets credited to the prior service pension fund and all other assets held
             for the purpose of financing prior service pensions shall be credited to the
             pension reserve fund.

      2.     Assets credited to the retirement annuity and pension fund arising from
             City contributions shall be credited to the pension reserve fund.

      3.     Assets credited to the individual accounts of members in the retirement
             annuity and pension fund arising from their contributions, together with
             regular interest credited thereon, shall be credited to their individual
             accounts in the annuity savings fund.

      4.     Assets credited to the retirement annuity and pension fund held for the
             purpose of paying annuities and pensions to individuals who have retired
             shall be credited to the retirement reserve fund.

      5.     All other assets held for the purpose of financing the retirement system
             established by ordinance No. 188, not accounted for above, shall be
             credited to the pension reserve fund.

Sec. 2-256. Benefits assumed.

       The retirement benefits allowed under Ordinance No. 188 prior to the effective
date of Ordinance No. 378 shall be continued without adjustment of amounts. The 1966
amendments of Ordinance No. 378, as amended, shall not apply to pensions and
retirement allowances being paid as of the day preceding the effective date of the 1966
amendments.



                                           41
Sec. 2-257. Correction of errors.

       Should any change in the records result in any person receiving from the
retirement system more or less than he or she would have been entitled to receive had
the records been correct, the board shall correct such error and, as far as is practicable,
shall adjust the payment in such manner that the actuarial equivalent of the benefit to
which such person was correctly entitled shall be paid.

Sec. 2-258. Benefits, Rights or Funds Not Subject to Legal Process or Assignment;
City’s Right of Setoff; Forfeiture of Retirement Allowance.

A.     The right of a person to an annuity, a pension, a retirement allowance, to the
       return of accumulated contributions, the annuity, the pension, or the retirement
       allowance itself, any optional benefits, any other right accrued or accruing to any
       person under the provisions of this article, and any moneys belonging to the
       retirement system, shall not be subject to execution, garnishment, attachment,
       the operation of bankruptcy or insolvency law, or any other process of law
       whatsoever, and shall be unassignable except as is specifically provided in this
       article. If a member is covered by a group insurance or prepayment plan
       participated in by the City, and should he be permitted to, and elect to, continue
       such coverage as a retirant, he or she may authorize the board to have
       deducted from his or her retirement allowance the payments required of him or
       her to continue coverage under such group insurance or prepayment plan. The
       city shall have the right of setoff for any claim arising from embezzlement by or
       fraud of a member, retirant or beneficiary.

B.     The City shall comply with a court order directing that all or a portion of a
       member’s pension rights be forfeited, pursuant to the Public Employee
       Retirement Benefits Forfeiture Act, MCL 38.2701 et seq.

Sec. 2-259. Protection against fraud.

       Whoever, with intent to deceive, shall make any statement or report required
under this article which is untrue, or shall falsify or permit to be falsified any record or
records of the retirement system, or who shall otherwise violate, with intent to deceive,
any provision of this article shall be guilty of a misdemeanor and punishable as provided
in section 1-7 of this Code.

Sec. 2-260. Retirant’s death benefit.

Upon the death of any retirant, the Retirement System shall pay to the person
previously designated by the retirant, or if none to the estate of the deceased, the sum
of one thousand dollars.




                                            42
Sec. 2-261. Reciprocal Retirement Act.

        This City, being a “municipal unit" which covers its employees under a retirement
system, does hereby, by a majority vote of its governing body, elect to adopt the
provisions of the Reciprocal Retirement Act, No. 88 of 1961 [MSA § 4.1601; MCL
§38.1101] for its employees covered under such retirement system. The City Clerk
shall file written certification of this action with the Secretary of State for the State of
Michigan.

Sec. 2-262. Description of funds; effect.

        The description of various funds of the retirement system shall be interpreted to
refer to the accounting records of the retirement system and not to the segregation of
monies in the various funds of the system.

Sec. 2-263. Maximum Retirement Allowances.

A.     Maximum retirement allowances. Notwithstanding any other provision of the
       retirement system to the contrary, the maximum annual retirement allowance
       derived from City contributions to the system, payable on a straight life basis in
       respect to a member, at the time of retirement shall not exceed the lesser of

       1.     Effective January 1, 2002, the dollar amount established in Code Section
              415 (b)(1)(A), which is adjusted for inflation based on Section 215(i)(2)(A)
              of the Social Security Act, or

       2.     One hundred percent of the member's average compensation from the
              City during the three (3) consecutive calendar years during which he or
              she was an active member and had the greatest aggregate compensation
              from the City, except that for those persons who are members on or
              before March 1, 1999, and who are then, or thereafter become, exempt
              members and who retire on or after January 1, 1999, the percentage shall
              be ninety-two percent; and further except that for those persons who first
              become members after March 1, 1999, and who then or thereafter
              become exempt employees, the percentage shall be seventy percent;
              provided, however, that:

              a.     If retirement allowances are payable in any form other than on a
                     straight life basis, the determinations as to whether the foregoing
                     limitation has been satisfied shall be made in accordance with
                     applicable treasury regulations by adjusting such retirement
                     allowances so they are equivalent to retirement allowances payable
                     on a straight life basis.

              b.     If the member has less than ten (10) years of credited service, the
                     maximum annual retirement allowance payable on a straight life
                     basis in respect of a member shall be the applicable maximum
                     annual amount described above multiplied by a fraction, the


                                            43
                   numerator of which is the number of years of his or her credited
                   service and the denominator of which is ten (10).

             c.    For purposes of this subsection (a) there shall not be taken into
                   account any ancillary benefit which is not directly related to
                   retirement income benefits, nor any other benefit not required by
                   Section 415(b)(2) of the Internal Revenue Code, as amended, to be
                   taken into account for purposes of the limitation on retirement
                   allowances described in this subsection (a).

             d.    If a member should become a member in, or become entitled to
                   benefits under, another tax qualified pension, profit-sharing or
                   savings plan of the city, the board of trustees may reduce the
                   retirement allowance payable in respect of such member under this
                   retirement system to the extent necessary to prevent
                   disqualification of this retirement system. In such event the board
                   of trustees shall notify the member of such reduction and furnish
                   him or her with an explanation of the same.

             e.    For limitation years beginning on or after July 1, 2007, a member’s
                   average compensation shall take into account the annual limit on
                   compensation under Code Section 401(a)(17) for each of the
                   member’s three calendar years of compensation used in
                   determining such average compensation.

Sec. 2-263.1 Eligible Domestic Relations Orders.

A.    An eligible domestic relations order ("EDRO") is a signed domestic relations
      order issued by a state court which assigns to an alternate payee(s) the right to
      receive all or part of a member's Retirement System benefit that is or will become
      payable to the member. An alternate payee is a spouse, former spouse, child or
      other dependent of a member who is treated as a Beneficiary under the
      Retirement System as a result of the EDRO. The Board of Trustees may
      establish EDRO procedures, but in the absence of such procedures, the Board
      will determine if a domestic relations order is an EDRO in accordance with the
      following:

      1.     Board of Trustees' Determination. Promptly upon the receipt of a
             Domestic Relations Order, the Board will notify the member and any
             alternate payee named in the Order of such receipt and will include a copy
             of this section. Within a reasonable time after receipt of the order, the
             Board will make a determination as to whether the order is an EDRO as
             defined in MCL 38.1701 et seq. and will notify the member and the
             alternate payee(s) in writing of the determination. Notwithstanding any
             other provision of the Retirement System, the Retirement System may
             make a distribution to an alternate payee pursuant to an order that the
             board of Trustees has determined to be an EDRO prior to the date the


                                          44
            member attains his or her earliest retirement age, as defined in Code
            Section 414(p)(4)(B), only if the EDRO specifically requires the Retirement
            System to make a distribution prior to such date.

      2.    Specific Requirements of an EDRO. In order for a domestic relations
            order to be an EDRO, it must specifically state all of the following: (1) the
            name, last known mailing address (if any) and the social security number
            of the member and each alternate payee(s) covered by the order; (2) the
            dollar amount or percentage of the benefit to be paid to each alternate
            payee, or the manner in which the amount or percentage is to be
            determined; (3) the number of payments or period to which such order
            applies; and (4) the name of the plan to which the order applies. The
            domestic relations order will not be deemed an EDRO if it requires the
            Retirement System to provide any type or form of benefit, or any option
            not already provided for in the System, or increased benefits determined
            on the basis of the actuarial value, or benefits in excess of the member's
            Retirement System benefit, or payment of benefits to an alternate
            payee(s) required to be paid to another alternate payee under another
            EDRO.

      3.    Disputed Orders. If there is a question as to whether or not a domestic
            relations order is an EDRO, there will be a delay in any payout to any
            payee(s) including the member, until the status is resolved. If the
            Retirement System determines that the order is not an EDRO, the
            Retirement System shall notify the employee and the alternate payee(s) of
            this determination. The notification shall specify the reasons the order
            was not determined to be an EDRO. This determination does not prohibit
            the employee or the alternate payee(s) or the court from filing an amended
            order with the Retirement System for redetermination.

      4.    Death of Alternate Payee(s). If an alternate payee(s) dies before receiving
            any payment of a benefit pursuant to an EDRO, that interest reverts to the
            member.

Sec. 2-264. Termination of the Retirement System.

A.    The City at any time can terminate the retirement system and trust fund in whole
      or in part in accordance with, and subject to, state and federal law, this Plan,
      applicable collective bargaining agreements, consideration of concerns submitted
      in writing by a designated representative of a non-bargaining unit of employees,
      and the following provisions:

      1.    Termination of Retirement System. The City can terminate the retirement
            system and Trust Fund by filing written notice of any such termination with
            the board of trustees and members. If required by law, such written notice
            will be provided at least sixty (60) days (or any other period as may be
            required by law or regulation) prior to the date of termination.


                                          45
2.   Vesting Requirement. Upon termination of the retirement system, or upon
     termination of the system with respect to a group of members which
     constitutes a partial termination of the system, the accrued benefits of all
     members with respect to whom the system is terminated shall, as of the
     date of termination or partial termination, as the case may be, become
     fully vested and nonforfeitable to the extent then funded.

3.   Continued Administration of Retirement System Pending Distribution.
     Upon complete termination of the Retirement System the Board of
     Trustees will continue to administer the Retirement System until
     distribution has been made to the members (which distribution must occur
     within a reasonable time after the termination of the System) with full
     settlement of all such benefits made by lump sum payments of the
     actuarial equivalent of benefits and/or through the purchase of a group
     Annuity contract or individual Annuity contracts to the extent of Trust Fund
     assets.

4.   Allocation of Trust Fund Assets to Members, Spouses and Beneficiaries.
     If the Retirement System is terminated, the Trust Fund will be first used to
     fund the costs of benefits due members.

5.   Retirement System Merger or Consolidation. The Retirement System and
     Trust Fund may not be merged or consolidated with, nor may any of its
     assets or liabilities be transferred to, any other plan, unless the benefits
     payable to each member if the Retirement System was terminated
     immediately after such merger, consolidation or transfer would be equal to
     or greater than the benefits to which such member would have been
     entitled if this Retirement System had been terminated immediately before
     such merger, consolidation or transfer.




                                  46
                                       Appendix A

                                 Actuarial Assumptions

The interest rate and mortality tables used to determine whether an optional form of
payment is the actuarial equivalent of the straight life retirement allowance, as referred
to in Section 2-240(a), are as follows:

      Interest rate:       6.5% per annum

      Mortality:           Blend of 95% male rates and 5% female rates, set back by 5
                           years from the 1971 GAM table.”




 F:\ord\NEW PENSION ORDINANCE-CLEAN
11/27/07




                                           47
                            CITY OF KALAMAZOO, MICHIGAN

                           ORDINANCE NO. ________________

          AN ORDINANCE TO REPEAL SECTIONS 2-223 THROUGH 2-264
              OF ARTICLE X OF THE KALAMAZOO CITY CODE AND
          CREATE NEW SECTIONS 2-223 THROUGH 2-264 OF ARTICLE X
                      OF THE KALAMAZOO CITY CODE
              REGARDING THE EMPLOYEE RETIREMENT SYSTEM

THE CITY OF KALAMAZOO ORDAINS:

     Section 1. Sections 2-223 through 2-264 of Article X of the Kalamazoo City
Code are hereby repealed.

      Section 2. Sections 2-223 through 2-264, including Appendix A, of Article X of
the Kalamazoo City Code are hereby created to read as follows:

“Sec. 2-223. Established; citation of article.

The City of Kalamazoo Employees Retirement System established by authority of
section 197 of the Charter and Ordinance No. 378, as amended, is hereby continued,
as amended and restated effective January 1, 2006. This article may be cited as the
“City of Kalamazoo Employee Retirement System Ordinance.” The Retirement System
Ordinance shall be maintained for the exclusive benefit of members and is intended to
qualify as a governmental plan under Sections 401(a) and 414(d) of the Internal
Revenue Code of 1986, as amended from time to time (the "Code"), and with the
requirements of any other applicable law.


Sec. 2-224. Definitions.

The following words and phrases, as used in this article, unless a different meaning is
clearly required by the context, shall have the following meanings. Words used in the
masculine gender shall be construed as though they were also used in the feminine or
neuter gender where applicable, and words used in the singular will be construed as
though they were also used in the plural, where applicable.

Accumulated Contributions means the sum of all amounts deducted from the
compensation of a member, or "picked up” by the City pursuant to Section 2-248(F),
and credited to his or her individual account in the annuity savings fund, together with
interest credited to January 1, 1952, and regular interest credited after December 31,
1951.

Annuity means an annual amount, derived from a member’s accumulated contributions,
payable in equal monthly installments throughout the future life of a person.
Annuity Reserve means the present value of all future payment to be made on account
of any annuity. An annuity reserve shall be computed upon the basis of such mortality
table, and regular interest, as the board shall from time to time adopt.

Beneficiary means any person, except a retirant, who is in receipt of, or who is
designated to receive, a pension, retirement allowance or other benefit payable by the
retirement system. Notwithstanding the foregoing, a Member may designate a trust as
his or her secondary beneficiary under the retirement system, and the beneficiaries of
the trust with respect to the trust’s interest in the member’s benefit under the retirement
system shall be treated as the member’s designated beneficiary for purposes of the
Code Section 401(a)(9) and Treasury Regulation Section 1.401(a)(9)-4 provided that
the terms of Q&A-5 and Q&A-6 of such Treasury Regulation are satisfied.

Board or board of trustees means the board of trustees provided in Section 2-225.

City means the City of Kalamazoo.

Compensation means a member’s salary or wages paid him or her by the city for
personal services rendered by him as an employee of the city. by the City to a member
that must be reported as wages on the member's Form W-2. The employee and the City
shall not contribute to the Pension Fund on regular overtime earned. Notwithstanding
anything to the contrary, Compensation may include or exclude certain other
"Pensionable" items, as established by the applicable collective bargaining agreement.
Compensation shall include any amounts that are contributed by the City pursuant to a
salary reduction agreement and that are not includable in the member's gross income
under Code Section 125, 132(f), 401(k), 403(b) or 457(b). In case a member’s
compensation is not all paid in money, the City Manager shall fix the value of the portion
of his or her compensation that is not paid in money. Compensation shall not include
any sums paid to a member as worker’s compensation or contractual supplements
thereto, unless the following requirements are both fulfilled:

A.    The member is in receipt of said sums while the member is off work during the
      final three (3) years of his or her membership because of a disability which, if
      permanent, would qualify him or her for a duty disability retirement allowance
      under Section 2-243(B); and

B.    The member contributes the prescribed percentage of said sums to the annuity
      savings fund under Section 2-248(B) within one hundred eighty (180) calendar
      days of returning to work. Compensation shall include any employee contribution
      “picked-up” by the City and treated as an employer contribution pursuant to
      Section 2-248(F).

Notwithstanding the above, the following are to be considered part of “compensation,”
both for purposes of an employee paying a percentage contribution to the system, and
for purposes of determining final average compensation: overtime (except for Public
Safety members), holiday pay, sick time pay, vacation pay, retroactive pay, certification
bonus, education bonus, standby pay, emergency leave pay, critical leave pay, funeral



                                            2
leave pay, transit annual leave, transit annual leave payout (up to 160 hours), night shift
premium, and longevity.

Notwithstanding the above, the following are not to be considered part of
“compensation,” both for purposes of an employee paying a percentage contribution to
the system, and for purposes of determining final average compensation: deferred
compensation match by the City, Public Safety overtime, compensation (“comp”) time,
lump sum sick time payout, car stipend, mileage payment, discretionary bonus,
incentive bonus, performance bonus, food allowance, tool allowance, parking
allowance, clothes cleaning allowance, clothing allowance, insurance waiver, equipment
overtime.

Notwithstanding any other provision of the Retirement System to the contrary, for Plan
Years beginning on or after January 1, 1994, but before Plan year 2002, the annual
Compensation of each member taken into account under the Retirement System shall
not exceed the OBRA ’93 annual compensation limit. The OBRA ’93 annual
compensation limit is one hundred fifty thousand dollars ($150,000), as adjusted by the
Commissioner for increases in the cost of living in accordance with Code Section
401(a)(17)(B). If Compensation for any prior determination period is taken into account
in determining an employee’s benefits accruing in the current Plan Year, the
compensation for that prior determination period is subject to the OBRA ’93 annual
compensation limit in effect for that prior determination period. For this purpose, for
determination periods beginning before the first day of the first Plan Year beginning on
or after January 1, 1994, the OBRA ’93 annual compensation limit is one hundred fifty
thousand dollars ($150,000).

The annual Compensation of the member taken into account in determining benefit
accruals under the Retirement System in any Plan Year beginning after December 31,
2001, or such other consecutive twelve (12) month period over which Compensation is
otherwise determined under the Retirement System (the “determination period”) shall
not exceed two hundred thousand dollars ($200,000), as adjusted by the Commissioner
for increases in the cost of living in accordance with Code Section 401(a)(17)(B).

The cost-of-living adjustment in effect for a calendar year applies to any period, not
exceeding twelve (12) months, over which Compensation is determined (determination
period) beginning in such calendar year. If a determination period consists of fewer
than twelve (12) months, the annual Compensation limit will be multiplied by a fraction,
the numerator of which is the number of months in the determination period, and the
denominator of which is twelve (12).



Credited Service means the number of years and fraction thereof standing to a
member’s credit, as provided in this article. Effective January 1, 1999, as to Public
Safety members, and effective March 13, 2000, as to KMEA members, the amount of
service time that will be credited to such a member who is classified and worked as a
part-time employee of the City, will be calculated by pro-rating the number of hours


                                            3
worked in a year against the number of hours regularly scheduled in that year for a full
time employee in that classification. For example, an employee who works thirty (30)
hours per week in a position where full time employees regularly work forty (40) hours
per week will be credited with three-quarter (00.75) years of service for that year. For
Public Safety members, credited service as of January 1, 1999, shall be the amount of
time which has elapsed between that date and each individual’s seniority date, in
addition to any time purchased pursuant to the split service provisions set forth below.
When a Public Safety member is absent from work and receiving sick pay benefits
(either the member’s or from donated sick leave time) from which pension contributions
are deducted, the period of time the employee is absent and receiving sick leave
benefits will be counted towards the member’s credited service. Public Safety members
on medical leave of absence who are receiving worker’s compensation benefits may
have period of such leave counted towards credited service by electing at the
commencement of the leave to make regular pension contributions while on the leave.

Direct Rollover means a payment by the Retirement System to the Eligible Retirement
Plan specified by the Distributee.

Distributee means an employee or former employee. In addition, the employee’s or
former employee’s surviving spouse and the employee’s or former employee’s spouse
or former spouse who is the alternate payee under a qualified domestic relations order,
as defined in Code Section 414(p), are Distributees with regard to the interest of the
spouse or former spouse.

Eligible Rollover Distribution means any distribution of all or any portion of the refund of
Accumulated Contributions paid to a member, a surviving spouse, a spouse or former
spouse who is the alternate payee under an EDRO, or, effective January 1, 2007, a
beneficiary, under the Retirement System, except that an Eligible Rollover Distribution
does not include (1) any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or Life Expectancy) of
the member or for the joint lives (or joint Life Expectancies) of the member and the
member's beneficiary, or for a specified period of ten (10) years or more; (2) any
distribution to the extent such distribution is required under Code Section 401(a)(9); (3)
the portion of any distribution that is not includible in gross income; and (4) the portion
of any distribution made on or after January 1, 2002 which is attributable to a hardship
distribution described in Code Section 401(k)(2)(B)(i)(IV).

Eligible Retirement Plan means: 1) an individual retirement account described in Code
Section 408(a); 2) an individual retirement annuity described in Code Section 408(b); 3)
a qualified retirement plan described in Code Section 401(a) or 403(a); 4) for
distributions made after December 31, 2001, a tax sheltered annuity plan described in
Code Section 403(b) or an eligible plan under Code Section 457(b) which is maintained
by a state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state, which agrees to accept and separately account for
amounts transferred into such plan from this Retirement System, and 5) for distributions
made after December 31, 2007, a Roth individual retirement account, subject to
applicable code requirements. This definition shall also apply in the case of a


                                             4
distribution made after December 31, 2001, to a surviving spouse, or to a spouse or
former spouse who is the alternate payee under an EDRO. Subpart 1) and 2) contained
herein shall apply in the case of a distribution made after December 31, 2006, to a
beneficiary.

Employee means any person in the employ of the City whose services are
compensated by the city, including officers of the City.

Exempt employee shall mean any general member employee or exempt member
means any General member who is not a member of a bargaining unit.

Final average compensation means the average of the highest annual compensation
received by a member during any period of three (3) consecutive years of his or her
credited service contained within his or her ten (10) years of credited service
immediately preceding the date his or her employment with the City last terminated. If
the member has less than three (3) years of credited service, his or her final average
compensation shall be the average of the annual rates of compensation for his or her
total period of credited service. Any lump sum payment for unused sick leave shall not
be included in computing "final average compensation.” Effective January 1, 1995, the
inclusion of regular overtime in base pay for purposes of calculating final average
compensation for Public Safety members is eliminated. The employee and the
employer shall not contribute to the pension fund on regular overtime earned. The
following items shall be included for purposes of calculating final average
compensation: night shift premium, longevity, educational bonus, holiday premium pay
and any other payments where employee/employer pension contributions are required.
Comp time lump sum payments shall be included for purposes of calculating final
average compensation only if payment was requested on or before December 31 1998;
otherwise, all payments made on and after January 1, 1999 shall be excluded for
purposes of calculating final average compensation.

Final Compensation means a member’s annual rate of compensation at the time his or
her employment with the City last terminated.

General member means any member except a policeman or fireman public safety
member.

Investment Committee means the Investment Committee established in Section 2-252.1
et seq.

Member means any employee who is included in the membership of the retirement
system.

Normal Retirement Age means the provisions set forth in Section 235.

Pension means an annual amount, derived from money provided by the City, payable in
equal monthly installments throughout the future life of a person, or for a temporary
period, as provided in this article.



                                          5
Pension Reserve means the present value of all future payments to be made on
account of any pension. A pension reserve shall be computed upon the basis of such
mortality and other experience tables, and regular interest, as the board shall from time
to time adopt.

Plan Year means the calendar year.

Public Safety Administrator means any member who works within the Public Safety
Administration and who is both sworn and exempt. For purposes of this article, said
Administrator will be treated as if public safety members except as otherwise noted.

POLICEMAN OR FIREMAN MEMBER and POLICEMEN AND FIREMEN MEMBERS
Public Safety member means any employee in the Public Safety Police Department of
the City holding the rank of patrol officer patrolman, including probationary patrol officer
patrolman, or higher rank; and, in the case of a fire fighter fireman, any employee in the
Fire Department of the City holding the rank of fire fighter fireman, including
probationary fire fighter fireman, or higher rank and including any Public Safety officer
employed in the Public Safety Department. The terms “Public Safety member”
"policeman or fireman member" and "policemen and firemen members" shall not include
shall mean any person employed by Public Safety, including probationary members,
holding the rank of sworn officer, but shall not include:

A.     Any person who is privately employed as a policeman public safety member, nor

B.     Any person who is temporarily employed as a policeman public safety member,
       nor

C.     Any civilian employee in the Public Safety Department.

Regular Interest means such rate or rates of interest per annum, compounded annually,
as the City Commission shall from time to time adopt.

Retirant means any member who retires with a retirement allowance payable by the
retirement system.

Retirement means a member’s severance from the employ of the city with a retirement
allowance payable by the retirement system.

Retirement allowance means the sum or the annuity and pension payable to a retirant
or beneficiary. In determining a retirant's or beneficiary's retirement allowance, the
retirement system shall apply the actuarial assumptions that are set forth in Appendix A,
which is attached hereto.

Retirement System or System means the City of Kalamazoo Employees Retirement
System.




                                             6
Service means personal service rendered to the City by an employee of the City.
Service shall include time off work due to a disability which, if permanent, would qualify
the individual for a duty disability retirement allowance under Section 2-243(B).

Trustee means the City Treasurer.

Trust Fund means all assets possessed by the Retirement System, including those
attributed to the Pension Reserve Fund, the Retirement Reserve Fund, the Annuity
Savings Fund and the Income Fund, all property and rights purchased with such
amounts, and all income attributable to such amounts, property or rights, whether or not
held in trust in the custody of the Trustee. Any forfeitures shall be included in the Trust
Fund and shall not be applied to increase the benefits any member would otherwise
receive under the Retirement System. The Trust Fund shall be held and invested in
accordance with Section 2-252.1.

USERRA means the Uniformed Services Employment and Reemployment Rights Act of
1994, as amended from time to time.

Voluntary Retirement Age:

A     For a general member shall be age fifty-five (55) years, provided he or she has
      fifteen (15) or more years of credited service. For each year past age fifty-five
      (55), the required number of years of credited service shall be reduced one (1)
      year until at age sixty (60) years and thereafter the required number of years for
      credited service shall be ten (10) years;

B     except that For exempt employees and Public Safety Administrators, the number
      of years of credited service shall be reduced one (1) year until at age sixty-two
      (62) years and thereafter the required number of years for credited service shall
      be five (5) years;

C     except that For AFSCME and KMEA employees, the number of years of credited
      service shall be reduced one (1) year until at age sixty-one (61) years and
      thereafter the required number of years for credited service shall be nine (9)
      years;

D     Beginning January 1, 1984, “voluntary retirement age” for a policeman or fireman
      member Public Safety member shall be after twenty-five (25) years of credited
      service, or age fifty (50) with ten (10) years of credited service, whichever occurs
      first;

E.    Subject to the maximum benefits provisions set forth below, any member who
      continues in the employ of the City beyond his or her Voluntary Retirement Age
      shall continue to accrue benefits under the Retirement System; and

F.    Subject to the terms of section 2-237, the amount of the retirement allowance to
      which a member may be entitled upon his or her voluntary retirement may be
      reduced.


                                            7
Worker’s compensation period means the period a member is in receipt of weekly
worker's compensation on account of a member’s disability or death arising out of and
in the course of the member’s employment. If a member is paid a single sum in lieu of
future worker’s compensation, worker’s compensation period shall be the period, if any,
the member was in receipt of weekly worker’s compensation, plus the period arrived at
by dividing the said single sum by the member’s weekly worker’s compensation award.”

Sec. 2-225 Board of trustees generally.

A.    The power to administer, manage and operate the retirement system, and to
      construe and make effective the provisions of this article, the Plan, applicable
      state and federal statutes, provisions of the City Commission-approved collective
      bargaining agreements and employment agreements, and provisions of
      employment agreements authorized by the City Manager that expressly relate to
      the retirement system, is vested in a Board of Trustees, subject to such powers
      as are retained by the City Commission, or placed in the Investment Committee
      pursuant to § 2-252.1 et seq. “Employment agreements” authorized by the City
      Manager, as that phrase is used in this subsection, shall apply only to
      employment agreements for the positions of Deputy and Assistant City Manager,
      shall be limited to provisions regarding eligibility for an unreduced pension, and
      shall be available only to an employee in those positions whose years of service
      as a City employee, when combined with the employee's age, total at least 70 at
      the time the employment agreement is executed. The City Manager shall have
      the authority granted by this subsection until June 1, 2009.

B.    The board of trustees shall consist of five (5) trustees, as follows:

      1.     A City Commissioner to be selected by the Commission to serve at the
             pleasure of the Commission.

      2.     The City Manager.

      3.     A citizen who is not a member, retiree, or beneficiary of the retirement
             system, and holds no other City position, to be appointed by the City
             Commission.

      4.     A policeman or fireman member to be elected by the policemen and
             firemen members. A Public Safety member to be elected by the Public
             Safety members.

      5.     A general member to be elected by the general members.

C.    The elections of the policeman or fireman member Public Safety member trustee
      and the general member trustee shall be held under such rules and regulations
      as the board shall from time to time adopt.




                                            8
D.    The term of office of the appointed citizen trustee, the policeman or fireman
      member Public Safety member trustee and the general member trustee shall be
      three (3) years, one (1) such term to expire annually.

E.    Each trustee shall, before assuming the duties of trustee, qualify by taking an
      oath of office to be administered by the City Clerk. The trustee shall serve
      without additional compensation for their services as trustee.

F.    In the event a trustee, except the appointed citizen trustee, ceases to be
      employed by the City; or if any trustee fails to attend three (3) consecutive
      regularly scheduled meetings of the board, unless in each case excused for
      cause by the remaining trustees, his or her office of trustee shall be deemed to
      be vacated. If a vacancy occurs in the office of trustee, the vacancy shall be
      filled, within sixty (60) days from and after the date the vacancy occurred, for the
      unexpired portion of the term in the same manner as the office was previously
      filled. The City Commission from time to time may appoint a person to
      temporarily replace a trustee on an interim basis for reasons such as medical
      emergency or other need, and the person filling such a position on an interim
      basis shall serve on the board of trustees until the person who is on leave of
      absence is able to return to duties as a member of the board of trustees. The
      term of office of the interim trustee shall coincide with the term of office of the
      trustee temporarily replaced, and in no event shall the interim trustee serve in
      excess of ninety (90) days from and after the date the City Commission appoints
      such interim trustee, unless the City Commission extends the term of such
      interim trustee beyond ninety (90) days.

G.    The board shall hold meetings regularly, at least quarterly, and shall designate
      the time and place thereof. Three (3) trustees shall constitute a quorum at any
      meeting of the board. Each trustee shall be entitled to one (1) vote on each
      question before the board, and at least three (3) concurring votes shall be
      necessary for a decision by the board at any of its meetings. The board shall
      adopt its own rules of procedure and shall keep a record of its proceedings. All
      meetings of the board shall be public.

Sec. 2-226. Officers.

A.    The Board of Trustees board shall elect from its own number a chairman
      chairperson and chairman chairperson pro tem.

B.    The Finance Director shall serve as secretary to the board and he shall be the
      administrative officer of the retirement system.

C.    The City Treasurer, or his or her designee, shall be treasurer of the retirement
      system and the custodian of its assets.

D.    The City Attorney shall be the legal advisor to the board.




                                           9
E.    The board shall appoint as medical director a physician who is not eligible to
      membership in the retirement system. He or she shall be directly responsible to
      and shall hold office at the pleasure of the board. He or she shall arrange for and
      pass upon all medical examinations required under this article; he or she shall
      investigate all essential statements and certificates of a medical nature furnished
      by or on behalf of a member, retirant or beneficiary in connection with a claim for
      disability or death in line of duty benefits; and he or she shall report in writing to
      the board his or her conclusions on medical matters referred to him or her by the
      board.

F.    The compensation for services required for the proper operation of the retirement
      system shall be fixed by the board subject to the approval of the City
      Commission.

G.    The board shall recommend, jointly with the Investment Committee, the actuary
      for the system to the City Commission for its approval.

Sec. 2-227. Composition of membership of retirement system

A.    The membership of the retirement system shall include all persons who are in the
      employ of the City and all persons who become employed by the City except as
      provided in subsection (B) of this section.

B.    The membership of the retirement system shall not include:

      1.     Any person whose services to the City are compensated on a fee or
             contractual basis; nor

      2.     Any person employed to direct traffic at schools; nor

      3.     Any person employed by the City prior to July 1, 1967, who earns less
             than six hundred dollars ($600.00) a year; nor

      3.     Any person, other than a person who is a member of the KMEA, who
             becomes employed by the City after June 30, 1967, in a position normally
             requiring less than one thousand forty (1,040) hours of work in a calendar
             year; nor

      4.     The medical director and the actuary; nor

      (6)    With the specific approval of the board, any employee who, at the initial
             date of employment, was older than the age of fifty-four (54) years; nor

      (7)5. A retirant reemployed by the City upon the recommendation of the City
            Manager with the specific approval of the board. However, with the
            additional specific approval of the City Commission, such rehired retirant
            may be designated as a new hiree as of the initial date of reemployment



                                            10
             and may, for the new period of employment only, qualify for a second
             retirement allowance; nor

      (8)6. The City Manager or other City Commission appointee, if he or she
            exempts himself or herself from membership in the system. His or her
            past contributions, together with accrued interest, would then be paid into
            the program established by the International City Management
            Association Retirement Corporation instead of being paid to or held by the
            City of Kalamazoo Employees Retirement System. No contribution on
            behalf of the City Manager or other appointee who makes such choice
            shall thereafter be made to the city’s retirement system. Neither he nor
            she nor any person claiming on his or her behalf or account shall have any
            right, title, benefit or interest in said system or the funds thereof. The
            system shall owe no duty to such person or persons.

      7.     Effective on and after January 1, 1999, the district court staff and judges of
             the 9th District Court, unless such person, prior to that date elected to have
             their contributions remain in the system.

(c)   The membership of the retirement system shall include the district court staff and
      the City Attorney and his or her deputies to the extent of the salary paid to each
      of them. It shall also include on an optional basis the district court judges of
      District 9, Division 1. Each judge shall exercise the motion, within one (1) month
      following the commencement of each term of office, by letter to the City Manager,
      and it shall be irrevocable during such term.

C.    In any case of doubt as to the membership status of any person, the board shall
      decide the question.

Sec. 2-228. Termination of membership; Buy back of credited service.

A.    Except as otherwise provided in this article, members who leave the employ of
      the City for any reason except retirement or death shall thereupon cease to be
      members and their credited service at that time shall be forfeited. In the event of
      reemployment by the City, such individuals shall again become members. Such
      employees shall have the option of having their credited service restored in full,
      provided they return to the annuity savings fund the amount, if any, withdrawn
      therefrom, together with regular interest from the date of withdrawal to the date of
      repayment.

B.    In the event any member, or part-time employee who, full-time, would be a
      member, leaves the employment of the City to provide data processing services
      to the City, and said member or employee returns to City employment
      immediately upon leaving the employment of said private entity, and they have
      again become a member pursuant to the subsection above, they may also
      receive credited service for the time spent with said private entity as long as their
      employment with said private entity has been full-time and continuous since



                                           11
     leaving the employment of the City, and they pay to the retirement system the
     contributions they would have made had they remained or been a member of the
     system, based on the actual salary received from the private entity during this
     time period.

C.   Said payments shall commence within one year of reemployment and shall be
     completed within a five-year period from the date of rehiring. If repayment is not
     completed within the five-year period, any amounts paid are to be refunded, and
     credit for pension benefits will be computed from the most current date of
     employment. Current employees shall have one year from the effective date of
     this section, as amended, to start repayment, and completion shall be within the
     five-year time limit. Upon a member's retirement or death, he shall thereupon
     cease to be a member.

D.   However, a person retired from the system may "buy back" prior service credits
     to increase their pensions:
     1.    When the retirant would have been eligible to buy back prior service time
           credit(s), if the retirant were an active (contributing, non-retired) member
           of the system; and
     2.    When such credit(s) was(were) not available for buy back prior to the date
           of his or her retirement; and
     3.    When election, payment and completion shall be as follows:
           a.     Said retirant shall elect to buy back such prior service credit(s)
                  within one (1) year of the date the retirant is or becomes eligible to
                  buy back such time credit(s);
           b.     Calculation of prior service credits:
                  (1)    Per subsection (A) above for refunded prior service credit;
                         and/or
                  (2)    Such retroactive contributions shall be made together with
                         "regular interest" or a board approved actuarial formula
                         calculated to the date of repayment; and
     4.    Applications for repurchase of prior city service credit(s) shall be made
           within one (1) year from the date on which the retirant first becomes
           eligible to exercise the option to "buy back" prior city service credit(s);
     5.    From the date on which the retirant's application to repurchase prior city
           service is approved by the pension board, the retirant will have one (1)
           additional year to actually repurchase such prior service by lump sum
           repayment, unless an extended period is approved by the pension board;
     6.    An increased pension, will not be put into effect for any retirant, until the
           repayment of previously refunded employee pension contributions, and
           regular interest, is complete.



                                          12
Sec. 2-229. Service credit

A.    The service rendered by a member shall be credited him or her by the board in
      accordance with such rules and regulations as the board shall from time to time
      adopt, consistent with the provisions of this article. In no case shall less than ten
      (10) days of service rendered by a member in any calendar month be credited
      him or her as a month of service, nor shall less than nine (9) months of service
      rendered by him or her in any calendar year be credited as a year of service, nor
      shall more than one year of service be credited any member for all service
      rendered by him or her in any calendar year.

B.    In the event a member withdrew his or her contributions from the retirement
      annuity and pension fund of the retirement system established by Ordinance No.
      188, or his or her accumulated contributions from the annuity savings fund of the
      retirement system provided for in this article, and has not returned same to the
      applicable fund, he or she shall not be credited with service rendered prior to the
      date he or she last withdrew his or her contributions or accumulated contributions
      until he or she returns to the annuity savings fund, together with regular interest
      from the date of withdrawal to the date of repayment, as provided in Section 2-
      230 of this article.

Sec. 2-230. Age and service requirements in the event of split service

A.    In the event a member has rendered service both as a general member and as a
      Public Safety member, the age and service requirements applicable to that
      member at the time of retirement shall be determined by the age and service
      requirements of the unit from which the member is retiring. The member’s total
      service shall be used to determine whether or not the member meets the age
      and service requirements of the unit from which he is retiring.

B.    For purposes of computing the retirement allowance of a member who has
      rendered service in both of the above units, Section 2-236 shall apply only to the
      member’s actual service as a Public Safety member; and Section 2-237 shall
      apply only to the member's actual service as a general member. The retirement
      allowance shall be the sum of the two (2) separate computations. The
      computations for each unit shall be based on the member’s actual final average
      compensation.

C.    Notwithstanding the above, a member employed by Public Safety who is a
      member of the Kalamazoo Police Officers’ Association prior to 1999 may elect to
      convert his or her prior non-Public Safety time into Public Safety time (for
      purposes of credited service) so long as he or she first pays the difference
      between the contribution rate that was paid and the contribution rate that would
      have been paid had the non-Public Safety time actually been for Public Safety.




                                           13
Sec. 2-231. Military service credit.

A.     In the event any member who, while employed by the City, was called to or
       entered any armed service of the United States and who has been or shall be on
       active duty in such armed service, said member shall have such armed service
       actually required credited as City service; provided that:

       1.     He or she is reemployed by the City within one (1) year from and after the
              date of termination of such armed service actually required of him or her.

       2.     He or she returns to the annuity savings fund the amount he or she might
              have withdrawn therefrom at the time he or she entered or while in such
              armed service together with regular interest from the date of withdrawal to
              the date of repayment. Said payments shall commence within one (1)
              year of reemployment and shall be completed within five (5) years from
              the date of rehiring. If repayment is not completed within the five-year
              period, any amounts paid are to be refunded, and credit for pension
              benefits will be computed from the most current date of employment.

       3.     In no case shall more than six years of City service be credited for all such
              armed service rendered by said member. In any case of doubt as to the
              period to be so credited any member, the board shall have the final power
              to determine such period. During the period of such armed service and
              until reemployment by the City, said member's contributions to the
              retirement system shall be suspended; and any balance standing to his or
              her credit in the annuity savings fund shall be accumulated at regular
              interest.

B.     In the event any member who, prior to being employed by the City, was called to
       or entered any armed service of the United States and who has been on active
       duty in such armed service, said member may have his or her service credit
       increased for not more than three years' active military service; provided that:

       1.     The member pays to the retirement system a percent of the member's
              annual rate of pay in effect at the time the member applies for this option,
              multiplied by the years, or fraction thereof, of service that the member
              elects to purchase pursuant to this section. The percent to be used in said
              calculation shall be the same as the percent in effect used to determine
              that member's contribution to the annuity fund, as described in § 248 and
              elsewhere.

       2.     Time of payment. Said payment shall commence within one year from the
              date of hire and shall be completed within five years. If payment is not
              completed within the five-year period, any amounts paid are to be
              refunded, and no credit for military service pension benefits will be given.




                                            14
      3.     The fact that payment is made into the retirement system during a given
             year for the purposes of Subsection B(1) above shall have no effect in
             determining final average compensation.

      4.     In the event any member making payments under Subsection B(1) above
             should retire or die prior to making the full payments required, the member
             or member's beneficiary under the pension ordinance shall have the
             option of either making a lump-sum payment in full prior to receiving any
             pension benefits in order to obtain the additional benefits under this
             section, or receiving military service credit prorated based upon the
             amount of payments made until death or retirement.

      5.     At any time prior to retirement, a member may withdraw all or part of his or
             her military service credit payments from the retirement system. If a
             member makes such a withdrawal, the military service credit will be
             reduced pro rata, based upon the amount of payments withdrawn.

C.    Active duty shall include all service and training while on active duty but shall not
      include National Guard or Reserve monthly or annual training.

D.    Current employees must commence payment no later than January 2, 1987, to
      obtain credit for military service under this section of the Kalamazoo City Code.
      However, the preceding sentence shall not apply to any military service covered
      by USERRA. Payment shall be completed within five (5) years of
      commencement of payment.

E.    In no event shall credit be given for a period of active duty if the member
      otherwise receives credit for that period as city service.

F.    Effective December 12, 1994, the provisions herein shall be interpreted and
      applied as required by USERRA in accordance with Code Section 414(u) and the
      regulations and other guidance thereunder.

Sec. 2-232. Buyback of unpaid leave.

        A Public Safety member who, on or after January 1, 1999, is absent from work
for an entire pay period during which no pay from the City is paid from which pension
contributions are deducted, may buy back all or a portion of said time so that it becomes
credited service. In the absence of said buy back, said time shall not become credited
service. If the member elects to buy back such time, the amount to be paid by the
member shall be equal to that which the member would have had deducted from his or
her pay had he or she been receiving pay. Said payment shall commence within one
(1) year of the member’s return and shall be completed within five (5) years of said
return. If repayment for the amount of time sought to be credited is not fully paid within
said five (5) years, the amount paid shall be refunded and no credited service shall be
given.




                                           15
Sec. 2-233. Service accounts.

     The board shall credit each member's service account with the number of years
and months of service to which he or she is entitled.

Sec. 2-234. Voluntary retirement.

A.    Any member who has attained or attains his or her voluntary retirement age may
      retire upon his or her written application filed with the board setting at what time,
      not less than thirty (30) days nor more than ninety (90) days subsequent to the
      execution and filing thereof, he or she desires to be retired.

B.    Upon his retirement, a policemen or fireman member or her retirement, a Public
      Safety member shall receive a retirement allowance as provided in Section 2-
      236, and a general member shall receive a retirement allowance as provided in
      Section 2-237.

Sec 2-235.    Normal retirement age. (Unnecessary; see definition of Voluntary
Retirement Age)

A.    Any policeman or fireman member Public Safety member shall be separated
      from the employ of the City the first day of the calendar month in which he or she
      attains the age of sixty (60) years; except that a policeman or fireman member
      Public Safety member may continue in the employ of the City beyond his or her
      attainment of age sixty (60) years for periods not to extend beyond his or her
      attainment of age seventy (70) years; provided that such continuance is
      requested in writing by the member, approved by his or her department head,
      and approved by the City Manager.

B.    Upon his or her separation from the employ of the City, as provided in this
      section, a policeman or fireman member Public Safety member who has ten (10)
      or more years of credited service shall receive a retirement allowance as
      provided in Section 236.

C.    A general member who retires at age seventy (70) years with ten (10) or more
      years of credited service shall receive a Retirement allowance as provided in
      Section 237.

Section 2-235 reserved

Sec 2-236. Retirement Allowance—Policeman or fireman Public Safety member; early
retirement.

A.    Effective January 1, 1999 2003, upon the retirement of a Public Safety member
      who has twenty-five (25) years or more of credited service or who is at least fifty
      (50) years of age with ten (10) years of credited service, a normal voluntary
      retirement benefit shall be provided which shall consist of a straight life
      retirement allowance (or the comparable option as provided in Section 2-240 in


                                           16
     lieu of said straight life retirement allowance) consisting of an annuity which shall
     be the actuarial equivalent of the member's accumulated contributions and a
     pension which, when added to the annuity, will provide a straight life retirement
     allowance equal to the sum of 2.6% per cent two and seven-tenths percent times
     final average compensation times years and fraction thereof of credited service
     with a maximum benefit equal to 67.6% per cent seventy and two-tenths percent
     (70.2%) of final average compensation. For those Public Safety members who
     are less than fifty years old with at least twenty (20) years, but less than twenty-
     five years of credited service, the retirement allowance shall be based upon two
     percent per cent of final average compensation times years of service. Those
     Public Safety members whose employment ends after they are vested but prior
     to achieving twenty years of credited service may receive a retirement allowance
     based upon a two percent per cent multiplier; such allowance shall be deferred
     and shall not be payable until such time as the member qualifies for a normal
     voluntary retirement benefit had he or she remained employed as a Public Safety
     member.

B.   Effective January 1, 1995, a post-retirement adjustment of two percent per cent
     in January of each year, compounded annually, shall be provided for those
     Public Safety members who retire on or after January 1, 1995. Said adjustment
     shall be implemented the first January following actual retirement date but will be
     available only to those Public Safety members who retire with at least twenty-five
     years of credited service.

C.   Upon the death of a policeman or fireman retirant Public Safety retirant who
     retired after June 30, 1972, and elected to receive his or her retirement
     allowance as a straight life retirement allowance, his or her surviving spouse, to
     whom he or she was married at both the date of his or her retirement and the
     date of his or her death, shall receive a retirement allowance equal to one-half of
     the retirant’s straight life retirement allowance. A spouse’s retirement allowance
     shall terminate upon the spouse's remarriage or death.

D.   The foregoing benefit levels are subject to the limits set forth in Section 2-263.

Sec. 2-237.     Same Retirement Allowance - general member; multipliers; early
retirement reduction

A.   Upon his or her retirement as provided in this article, a general member shall
     receive a straight-life retirement allowance, and he or she shall have the right to
     elect to receive his or her retirement allowance under an option provided in
     Section 2-240 in lieu of a straight-life retirement allowance. His or her straight-
     life retirement allowance shall consist of the following benefits:

     1.     An annuity which shall be the actuarial equivalent of his or her
            accumulated contributions standing to his or her credit in the annuity
            savings fund at the time of his or her retirement; and




                                          17
(2)   A pension which, when added to his or her annuity, equals the number of
      years and fraction of a year of his or her credited service multiplied by the
      sum of one and two-tenths percent per cent of the first four thousand two
      hundred dollars ($4,200.00) of his or her final average compensation, plus
      one and seven-tenths percent per cent of the portion, if any, of his or her
      final average compensation which is in excess of four thousand two
      hundred dollars ($4,200.00). Any pension calculated under this paragraph
      (2) shall be subject to subsection (b) of this section.

(3)   Notwithstanding paragraph (2) above, the following shall apply:

2.    A pension that, when added to his or her annuity, The pension for each of
      the following general members, when added to that member’s annuity, will
      provide a straight-life retirement allowance equal to the number of years
      and fraction of a year of his or her credited service multiplied by the
      percents set forth below one and seven-tenths percent of his or her final
      average compensation:

      a.    For a general member represented by the Kalamazoo Municipal
            Employees Association who retires after July 1, 1986, except that
            for those members who retire on or after March 13, 2000, the
            multiplier shall be one and eight-tenths percent in 2006 the
            multiplier shall be one and nine-tenths percent of his or her final
            average compensation, but on or after January 1, 2007, the
            multiplier shall be two percent of his or her final average
            compensation; further, a post-retirement adjustment of one and
            one-half percent per cent, compounded annually, shall be provided
            to those KMEA members who retire on or after March 13, 2000, so
            long as said retirant has been retired for one year (if he or she
            retires at or after age sixty-three (63)) or upon the retirant’s 64th
            birthday (if he or she retires prior to age sixty-three (63)); said post-
            retirement adjustment shall not apply to deferred retirements.

      b.    For an exempt employee who retires on or after January 1, 1999,
            the multiplier shall be increased to two and three-tenths percent per
            cent of his or her final average compensation;

      c.    For a member represented by AFSCME the American Federation
            of State, County and Municipal Employees the multiplier shall be
            one and nine tenths percent of his or her final average
            compensation who retires on or after October 2, 2005, the
            multiplier shall be one and nine-tenths percent of his or her final
            average compensation, but if on or after October 2, 2006, the
            multiplier shall be two percent of his or her final average
            compensation, but if on or after October 2, 2007, the multiplier shall
            be two and one-tenth percent per cent of his or her final average
            compensation; further, a post-retirement allowance of one (1)


                                    18
             percent, commencing one (1) year after the member's date of
             retirement and compounded annually thereafter, shall be provided
             to those AFSCME members who retire on or after March 1, 2000;
             after the retirant reaches age seventy-five (75), said annual
             adjustment shall be two percent, compounded annually. The
             retirement adjustment shall not, however, apply to those who retire
             pursuant to a deferred and / or a reduced retirement;

       d.    For a member represented by the Amalgamated Transit Union the
             multiplier shall be one and eight-tenths percent ATU, the multiplier
             shall be two and one-tenth percent per cent of his or her final
             average compensation; further, a post-retirement allowance of one
             (1) percent, commencing one (1) year after the member's date of
             retirement and compounded annually thereafter, shall be provided
             to those ATU members who retire on or after March 1, 2000; after
             the retirant reaches age seventy-five (75), said annual adjustment
             shall be two percent per cent, compounded annually. The
             retirement adjustment shall not, however, apply to those who retire
             pursuant to a deferred retirement; and

5.     A general member employed at District Court 9-1, who is represented by
       The United Auto Workers who retires after July 1, 1990;

6.     A general member employed at District Court 9-1, who is not a member of
       a bargaining unit (commonly called a “District Court Exempt" employee),
       who retires on or after January 1, 1988;

       e.    For a member employed in a civilian, non-sworn capacity at the
             Kalamazoo Department of Public Safety, and who is in a bargaining
             unit represented by the Kalamazoo Police Officers Association,
             who retires in 2006 the multiplier shall be one and seven-tenths
             percent but on and after January 1, 1991 2007, the multiplier shall
             be two and one-tenth percent.

(3).   Any pension calculated under this Subsection A(3) shall be subject to
       Subsection B of this section unless, by the terms of Subsection C,
       subsection B does not apply.

(4)    As an exception to paragraph (a)(2) and (a)(3) above, if the City Manager,
       City Attorney, City Assessor or City Clerk elects to receive a four and four-
       tenths percent per cent salary increase for 1988, his or her retirement
       allowance shall be governed by (a)(2) above. If said member elects to
       receive a three and four-tenths percent per cent salary increase for 1988,
       his or her retirement allowance shall be governed by paragraph (a)(3)
       above. His or her pension shall be subject to subsection (b) of this
       section.




                                     19
B.    Except as provided in subsection (C) below, in the event a general member, who
      either has less than twenty-five (25) years of credited service or has twenty-five
      or more years of credited service and retires prior to January 1, 1974, and retires
      before his or her attainment of the age of sixty-two, the pension portion of his or
      her retirement allowance provided in subsection (A) of this section shall be
      reduced four-tenths of one percent per cent multiplied by the number of months
      and fraction of a month contained in the period from the date of his or her
      retirement to the date he or she would attain the age of sixty-two (62). In the
      event a general member who has twenty-five or more years of credited service
      retires on or after January 1, 1974, and before his or her attainment of the age of
      fifty-seven, the pension portion of his or her retirement allowance provided in
      subsection (A) of this section shall be reduced four-tenths of one percent per
      cent multiplied by the number of months and fraction of a month contained in the
      period from the date of his or her retirement to the date he or she would have
      attained the age of fifty-seven (57).

C.    The pension of a general member represented by the American Federation of
      State, County and Municipal Employees AFSCME who retires on or after
      October 1, 1990, shall not be subject to reduction under subsection (B) if the
      member at the time of retirement is at least sixty (60) years of age and has at
      least twenty (20) years of credited service in a position or positions represented
      by AFSCME. Also, for those members who retire on or after January 1, 2000,
      the retirement allowance shall be subject to a post-retirement adjustment of one
      percent per cent (compounded annually). This adjustment shall be made one (1)
      year after the member’s retirement and shall occur each anniversary thereafter
      until the member’s seventy-fifth birthday. Upon the member’s seventy-fifth
      birthday, there shall be a post-retirement adjustment of an additional one percent
      per cent (compounded annually). Thereafter, the retirement allowance shall be
      subject, on the member’s birthday, to a post-retirement adjustment of two percent
      per cent (compounded annually). The adjustment provided for in this paragraph
      shall not apply to a retirement allowance which is either reduced (pursuant to §
      237) or deferred (pursuant to § 239).

D.    The foregoing benefit levels are subject to the limits set forth in Section 2-263.

E.    The retirement allowance received by an exempt member who retires on or after
      June 1, 2006, shall be increased by 1.5% post-retirement allowance,
      compounded annually, commencing January 1 after the member has been
      retired for one full year, and on every January 1 thereafter; this increase shall be
      available, however, only to those members whose retirement allowance has not
      been, nor will be, deferred and who execute and submit, no later than May 30,
      2006, the required form in which the member agrees to have his or her
      contribution to the annuity fund increased, for the balance of the member’s
      employment with the City, by 2%, above and beyond that otherwise required by
      Section 2-248, including as it may be amended from time to time,

Sec. 237.1. Special Provisions for Airport Employees.


                                           20
(a)   Members who were airport employees at the time the airport was transferred
      from the City of Kalamazoo to Kalamazoo County and who elected to transfer
      their employment to Kalamazoo County but who did not withdraw from the
      system at the time of the transfer may, if they so elected at the time of said
      transfer, add their service with the city to their service with the county to
      determine whether or not they have the requisite amount of service for a
      retirement allowance from the city.

(b)   In order to be eligible for a retirement allowance, the member must maintain his
      or her accumulated contributions and interest with the annuity savings fund of the
      City of Kalamazoo Employee Retirement System.

(c)   Final average compensation with the city under Section 224 for said employees
      will be determined by using the three (3) best consecutive years of the member's
      last ten (10) years with the county and city.

(d)   In no event will a member who is eligible for a duty disability retirement allowance
      from the county also be eligible for a duty disability retirement allowance from the
      city. Any member who is disabled as determined by the board would be eligible
      only for a nonduty disability retirement allowance. Even though a member may
      be eligible for benefits under both systems, in no event will the total of the
      benefits exceed the amount the member would receive as a duty disability
      retirant if the member were an employee of the city at the time of the disability. If
      needed, the city disability retirement allowance shall be reduced to avoid
      exceeding the foregoing limit. The limits and restrictions in Sections 243(b) and
      245 relating to Worker’s Compensation shall also apply.

Section 2-237.1 - reserved

Sec. 2-238. Social security integration.

        According to such rules and regulations as the board shall from time to time
adopt, a general member who retires prior to his or her attainment of age sixty-two (62)
years may elect to have his or her straight life retirement allowance actuarially equated
to provide an increased retirement allowance payable to his or her attainment of age
sixty-two (62) years and a reduced retirement allowance payable thereafter. His or her
increased retirement allowance payable to his or her attainment of age sixty-two years
shall approximate the sum of his or her estimated social security primary insurance
amount. This section shall not apply to a member who elects Option A, B or C provided
in Section 2-240, or who retires under Section 2-242.

Sec. 2-239. Deferred retirement allowance.

A.    In the event a policeman or fireman member Public Safety member who has ten
      (10) or more years of credited service leaves the employ of the City prior to his or
      her voluntary retirement age, for any reason except his or her retirement or
      death, he or she shall be entitled to a retirement allowance provided for in
      Section 2-236(a)(2). In the event of a general member who has ten (10) or more


                                           21
     years of Credited Service (or an exempt member or a Public Safety Administrator
     who has five (5) or more years of credited service or, commencing January 1,
     2002, a KMEA member who has eight (8) years of credited service, or for a
     member of AFSCME who has nine (9) years of credited service, or a member of
     ATU who has ten (10) years of credited service) leaves the employ of the City
     prior to his or her voluntary retirement age, for any reason except his or her
     retirement or death, he or she shall be entitled to a retirement allowance provided
     for in Section 2-237. In either case, his or her retirement allowance shall be
     computed according to Section 2-236 or 2-237, as applicable, as the section was
     in effect at the time he the member left City employment. His The member's
     retirement allowance shall begin the first day of the calendar month next
     following the date his or her application for same is filed with the board on or after
     his or her attainment of age sixty (60) years if a general member, fifty-five (55)
     years if a general member with fifteen (15) years of service, or fifty (50) years if a
     policeman, or fireman member Public Safety member; provided, however,
     effective January 1, 1984, any policeman or fireman member Public Safety
     member shall be eligible after twenty-five (25) years of credited service or age
     fifty (50) with ten (10) years of credited service, whichever occurs first. If he or
     she withdraws his or her accumulated contributions, he or she shall thereupon
     forfeit his or her right to a deferred retirement allowance. A member shall also
     forfeit his or her right to a deferred retirement allowance if said member dies
     before filing said application or, if such an application is filed, before the date
     designated as his or her retirement date. In the event of such a death, the
     member’s accumulated contributions shall be paid to his or her beneficiary or
     estate. Except as otherwise provided in this article, he the member shall not be
     given service credit for the period or his or her absence from City employment.

B.   Should any member, with five (5) or more years of credited service, who has not
     qualified for a deferred retirement allowance provided in subsection (A) of this
     section, be transferred by the City to the payroll of the State of Michigan or any of
     its political subdivisions, service rendered by him or her in the employ of the state
     or any of its political subdivisions subsequent to his or her transfer shall be
     regarded as City service for the sole and exclusive purpose only of qualifying for
     a deferred retirement allowance provided in subsection (A) of this section and in
     determining his final average compensation. His retirement allowance Final
     Average Compensation. The member's retirement allowance shall be computed
     according to Section 2-236 or 2-237, as applicable at the time of his or her last
     termination of membership, based upon his or her credited service rendered in
     the employ of the City. His retirement allowance The member's retirement
     allowance shall begin thirty (30) days after the date his or her application for
     same is filed with the board on or after the date he or she leaves the employ of
     the state or any of its political subdivisions to whose payroll he or she was
     transferred, or attains age sixty (60) years, whichever is later. In the event he the
     member withdraws his or her accumulated contributions, he or she shall
     thereupon forfeit his or her entitlement to a retirement allowance provided in this
     subsection. If he the member withdrew his or her accumulated contributions
     prior to February 1, 1958, he or she shall have the right to repay the amount


                                           22
      withdrawn, together with regular interest from the date of withdrawal to the date
      of repayment, subject to the approval of the board.

C.    Any deferred retirement allowance payable hereunder shall satisfy the minimum
      distribution requirements set forth in Section 2-240 C.

Sec. 2-240. Retirement allowance options.

A.    Prior to the date of his or her retirement, but not thereafter, a member may elect
      to receive his or her retirement allowance as a straight life retirement allowance
      payable throughout his or her life, or he may elect to receive the actuarial
      equivalent, determined as of the date of his or her retirement, of his or her
      straight life retirement allowance in a reduced retirement allowance payable
      throughout his or her life, and nominate a beneficiary, in accordance with the
      provisions of the options set forth below. If a member does not elect an option
      prior to the date of his or her retirement, the member will be presumed to have
      elected to receive his or her retirement allowance as a straight life retirement
      allowance. A member electing or retirant receiving a straight life retirement
      allowance may designate a beneficiary. If the retirant dies before the aggregate
      amount of payments to him or her equals his or her accumulated contributions,
      the remainder produced by subtracting said payments from said contributions
      shall be paid to said beneficiary. If the beneficiary survives the retirant but dies
      before receiving payment, that payment shall be made to the beneficiary’s estate.
      If the beneficiary does not so survive or if there is none designated, the above
      remainder shall be paid to the retirant’s estate:

      1.    Option A. Cash Refund Annuity. Under Option A, formerly Option 2, if a
            retirant dies before he or she has received, in the annuity portions of his or
            her reduced retirement allowance, an aggregate amount equal to his or
            her accumulated contributions standing to his or her credit at the time of
            his or her retirement the difference between his or her accumulated
            contributions and the aggregate amount of annuity payments received by
            him or her shall be paid to such person or persons as he or she shall have
            nominated by written designation duly executed and filed with the board.
            If there is no such designated person surviving the retirant, such
            difference, if any, shall be paid to the retirant’s estate; or

      2.    Option B. 100% Survivor Allowance. Under Option B, formerly Option 3,
            upon the death of a retirant, his or her reduced allowance shall be
            continued throughout the life of and paid to such person or persons having
            an insurable interest in his or her life, as he or she shall have nominated
            by written designation duly executed and filed with the board prior to the
            date of his or her retirement. Notwithstanding the foregoing, effective
            January 1, 2002, if the retirant’s beneficiary is not his or her spouse, the
            survivor allowance percentage shall be adjusted as required to satisfy the
            limit under Treasury Regulation Section 1.401(a)(9)-6, Q&A-2(c), based
            on the age differential between the retirant and the beneficiary.


                                           23
3.   Option C. 50% Survivor Allowance.

     a.     Under Option C, formerly Option 4, upon the death of a retirant,
            one-half of his or her reduced retirement allowance shall be
            continued throughout the life of and paid to such person, having an
            insurable interest in his or her life, as he or she shall have
            nominated by written designation duly executed and filed with the
            board prior to the date of his or her retirement.

     b.     If a retirant who has elected Option B or Option C and his or her
            beneficiary under this Section 2-240 dies before the aggregate
            amount of payments under said option equals the retirant’s
            accumulated contributions, the remainder, produced by subtracting
            said payments from said contributions, shall be paid as follows: If
            the beneficiary survived the retirant, the remainder shall be paid to
            the beneficiary’s estate. If the beneficiary did not survive the
            retirant, the above remainder shall be paid to the retirant’s estate.

4.   Option D. 10-year (120 months) Certain and Life Retirement Allowance.
     Under Option D, the retirant shall be paid a reduced retirement allowance
     for life with the provision that if the retirant’s death occurs before one
     hundred twenty (120) monthly payments have been made, the full reduced
     retirement allowance shall continue to be paid for the remainder of the one
     hundred twenty (120) months to such person or persons having an
     insurable interest in his or her life, and in such shares as the retirant shall
     have designated in writing and filed with the board. Notwithstanding the
     foregoing provisions of Option D, effective January 1, 2002, option D will
     not be available if the retirant is older than 92 when the benefit
     commences.

5.   Option E. 15-year (180 months) Certain and Life Retirement Allowance.

     a.     Under Option E, the retirant shall be paid a reduced retirement
            allowance for life with the provision that if the retirant’s death occurs
            before one hundred eighty (180) monthly payments have been
            made, the full, reduced retirement allowance shall continue to be
            paid for the remainder of one hundred eighty (180) months to such
            person or persons having an insurable interest in his or her life, and
            in such shares as the retirant shall have designated in writing and
            filed with the board. Notwithstanding the foregoing provisions of
            Option E, effective January 1, 2002 Option E will not be available if
            the retirant is older than 84 when the benefit commences.

     b.     Under Option D or Option E, if there is no designated person
            surviving the retirant, the then present value of the remaining
            unpaid monthly payments shall be computed and paid to the estate
            of the retirant. If a designated person survives the retirant and dies


                                    24
                 before receiving all the installments payable under the option plan,
                 there shall be paid to the estate of such person the then present
                 value of the remaining unpaid installments which would otherwise
                 have been paid to such person.

     6.    Option F. Under Option F, the retirement allowance shall be the same as
           under Option B for both the retirant and the beneficiary, except that:

           a.    The retirement allowance shall be reduced by an additional
                 amount, as required by actuarial considerations, so that in the
                 event the retirant were to survive the beneficiary, the retirant would
                 then be able to receive a straight life retirement allowance at no
                 added cost to the system, based upon actuarial equivalence; and

           b.    In the event that the beneficiary predeceases the retirant, the
                 retirant’s retirement allowance becomes a straight life retirement
                 allowance.

     7.    Option G. Under Option G, the retirement allowance shall be the same as
           under Option C for both the retirant and the beneficiary, except that:

           a.    The retirement allowance shall be reduced by an additional
                 amount, as required by actuarial considerations, so that in the
                 event the retirant were to survive the beneficiary the retirant would
                 then be able to receive a straight life retirement allowance at no
                 added cost to the system, based upon actuarial equivalence; and

           b.    In the event that the beneficiary predeceases the retirant, the
                 retirant’s retirement allowance becomes a straight life retirement
                 allowance.

B    For the purposes of Section 2-240 of the Kalamazoo City Code, the term “upon
     the death of the retirant" shall mean the first day of the month immediately
     following the month in which the retirant died..

C.   Minimum Distribution Requirements.

     1.    General Rules. Notwithstanding any provision of the retirement system to
           the contrary, effective January 1, 2002, any distribution under the
           retirement system shall be made in accordance with Code Section
           401(a)(9) and the regulations established thereunder as they are
           amended and shall comply with the following rules:

     2.    Time and Manner of Distribution. To the extent required by Code Section
           401(a)(9) and the regulations promulgated thereunder, payment of the
           benefits of a member shall begin not later than the Required Beginning
           Date, which, for purposes of this section, means April 1 of the calendar
           year following the later of (i) the calendar year in which the member


                                        25
reaches age seventy and one-half (70 1/2), or (ii) the calendar year in
which the member retires.

a.    Death of Member Before Distributions Begin. If the member dies
      before distributions begin, the member's entire interest will be
      distributed, or begin to be distributed, no later than as follows:

      (1)   If the member's surviving spouse is the member's sole
            designated beneficiary, then distributions to the surviving
            spouse will begin by December 31 of the calendar year
            immediately following the calendar year in which the
            member died, or by December 31 of the calendar year in
            which the member would have attained age seventy and
            one-half (70½), if later.

      (2)   If the member's surviving spouse is not the member's sole
            designated beneficiary, then distributions to the designated
            beneficiary will begin by December 31 of the calendar year
            immediately following the calendar year in which the
            member died.

      (3)   If there is no designated beneficiary as of September 30 of
            the year following the year of the member's death, the
            member's entire interest will be distributed by December 31
            of the calendar year containing the fifth (5th) anniversary of
            the member's death.

      (4)   If the member's surviving spouse is the member's sole
            designated beneficiary and the surviving spouse dies after
            the member but before distributions to the surviving spouse
            begin, this subsection (2)b., other than subsection (2)b.1.,
            will apply as if the surviving spouse were the member.

      For purposes of this subsection (2)b. and subsection (5),
      distributions are considered to begin on the member's Required
      Beginning Date (or, if subsection (2)b.4. applies, the date
      distributions are required to begin to the surviving spouse under
      subsection (2)b. If Annuity payments irrevocably commence to the
      member before the member's Required Beginning Date (or to the
      member's surviving spouse before the date distributions are
      required to begin to the surviving spouse under subsection (2)b.1.,
      the date distributions are considered to begin is the date
      distributions actually commence.

b.    Form of Distribution. No payment option may be selected by a
      member unless the amounts payable to the member are expected
      to be at least equal to the minimum distribution required under



                            26
           Code Section 401(a)(9). The amounts payable must satisfy the
           minimum distribution incidental benefit requirements of Code
           Section 401(a)(9)(G).

3.   Determination of Amount to be Distributed Each Year.

     a.    General Annuity Requirements. If the member's interest is paid in
           the form of Annuity distributions under the Retirement System,
           payments under the Annuity will satisfy the following requirements:

           (1)    Distributions will be paid in periodic payments made at
                  intervals not longer than one year;

           (2)    The distribution period will be over a life (or lives) or over a
                  period certain not longer than the period described in
                  subsection (4) or (5); and

           (3)    Once payments have begun over a period certain, the period
                  certain will not be changed even if the period certain is
                  shorter than the maximum permitted.

     b.    Amount Required to be Distributed by Required Beginning Date.
           The amount that must be distributed on or before the member's
           Required Beginning Date (or, if the member dies before
           distributions begin, the date distributions are required to begin
           under subsection (2)b.1. or 2.) is the payment that is required for
           one payment interval. The second payment need not be made until
           the end of the next payment interval even if that payment interval
           ends in the next calendar year. Payment intervals are the periods
           for which payments are received, e.g., bi-monthly, monthly, semi-
           annually, or annually. All of the member's benefit accruals as of the
           last day of the first Distribution Calendar Year will be included in the
           calculation of the amount of the Annuity payments for payment
           intervals ending on or after the member's Required Beginning Date.

     c.    Additional Accruals After First Distribution Calendar Year. Any
           additional benefits accruing to the member in a calendar year after
           the first Distribution Calendar Year will be distributed beginning with
           the first payment interval ending in the calendar year immediately
           following the calendar year in which such amount accrues.

4.   Requirements for Annuity Distributions. If the member had begun
     receiving periodic payments from the Plan that were not annuitized, the
     balance shall be paid to the beneficiary at least as rapidly as under the
     payment option selected by the member. If the member had begun
     receiving payments in the form of a pension or annuity, the beneficiary
     shall be bound by all restrictions applicable to the pension or annuity, and



                                  27
      the form of payment selected thereunder, and remaining payments, if any,
      shall be paid to the beneficiary in the same manner.

5).   Requirements for Minimum Distributions Where Member Dies Before Date
      Distributions Begin.

      a.    Member Survived by Designated Beneficiary. If the member dies
            before the date distribution of his or her interest begins and there is
            a designated beneficiary, the member's entire interest will be
            distributed, beginning no later than the time described in subsection
            (2)b.1. or 2., over the life of the designated beneficiary or over a
            period certain not exceeding:

            (1)    Unless the Annuity starting date is before the first
                   Distribution Calendar Year, the Life Expectancy of the
                   designated beneficiary determined using the beneficiary's
                   age as of the beneficiary's birthday in the calendar year
                   immediately following the calendar year of the member's
                   death; or

            (2)    If the Annuity starting date is before the first Distribution
                   Calendar Year, the Life Expectancy of the designated
                   beneficiary determined using the beneficiary's age as of the
                   beneficiary's birthday in the calendar year that contains the
                   Annuity starting date.

      b.    No Designated Beneficiary. If the member dies before the date
            distributions begin and there is no designated beneficiary as of
            September 30 of the year following the year of the member's death,
            distribution of the member's entire interest will be completed by
            December 31 of the calendar year containing the fifth (5th)
            anniversary of the member's death.

      c.    Death of Surviving Spouse Before Distributions to Surviving
            Spouse Begin. If the member dies before the date distribution of
            his or her interest begins, the member's surviving spouse is the
            member's sole designated beneficiary, and the surviving spouse
            dies before distributions to the surviving spouse begin, this
            subsection (5) will apply as if the surviving spouse were the
            member, except that the time by which distributions must begin will
            be determined without regard to subsection (2)b.1.

6.    Definitions. The following definitions shall apply for purposes of this
      Section 2-240(c):

      a.    Designated Beneficiary means the individual who is designated as
            the beneficiary under the Retirement System and is the designated



                                   28
                    beneficiary under Code Section 401(a)(9) and Treasury Regulation
                    Section 1-401(a)(9)-4.

             b.     Distribution Calendar Year means a calendar year for which a
                    minimum distribution is required. For distributions beginning before
                    the member's death, the first Distribution Calendar Year is the
                    calendar year immediately preceding the calendar year which
                    contains the member's Required Beginning Date. For distributions
                    beginning after the member's death, the first Distribution Calendar
                    Year is the calendar year in which distributions are required to
                    begin pursuant to Section 2-240(c)(2)b.

             c.     Life Expectancy means Life Expectancy as computed by use of the
                    Single Life Table in Treasury Regulation Section 1.401(a)(9)-9. This
                    definition of Life Expectancy shall apply only for purposes of
                    calculating minimum required distributions under Code Section
                    401(a)(9) and the Treasury Regulations thereunder and shall not
                    apply for purposes of calculating any pension or any benefit
                    assigned under an EDRO otherwise payable under the retirement
                    system.

Sec 2-241. Nonduty death retirement allowance

A.    Any member who continues in the employ of the City on or after the date he or
      she acquires ten (10) years of credited service (for an exempt member or Public
      Safety Administrator five (5) years of credited service, or for a member of KMEA
      eight years of credited service, or for a member of AFSCME nine years of
      credited service, or for a member of ATU ten years of credited service) may, at
      any time prior to the date of his or her retirement, elect Option B provided in
      Section 2-240, and nominate a beneficiary whom the Board finds to be
      dependent upon for at least fifty percent of his or her financial support. Prior to
      the date of his or her retirement, a member may revoke his or her election of
      Option B and nomination of beneficiary and prior to the date of his or her
      retirement, he or she may again elect Option B and nominate a beneficiary as
      provided in this subsection. Upon the death of a member who has an Option B
      election in force, his or her beneficiary, if living, shall immediately receive a
      retirement allowance, which is the actuarial equivalent of a straight life retirement
      allowance computed according to Section 2-236, in the case of a policeman,
      fireman, or Public Safety officer member, or according to Section 2-237,
      exclusive of subsection (B), in the case of a general member, computed in the
      same manner in all respects as if the member had retired the day preceding the
      date of his or her death, notwithstanding that he or she might not have attained
      his or her voluntary retirement age. If a member has an Option B election in
      force at the time of his or her retirement, his or her election of Option B and
      nomination of beneficiary shall thereafter continue in force unless, prior to the
      date of his or her retirement, he or she elects a straight life retirement allowance
      or another option provided in Section 2-240. No retirement allowance shall be


                                           29
     paid under this subsection on account of the death of a member, if any benefits
     are paid or are to be payable under Section 2-241(b) or 2-244 on account of his
     or her death.

B.   If any general member (excluding policemen and firemen) continues in the
     employ of the City on or after the date he or she acquires ten (10) years of
     credited service (for an exempt employee, eight years of credited service) Any
     member who continues in the employ of the City on or after the date he or she
     acquires ten (10) years of credited service (for an exempt member or Public
     Safety Administrator five (5) years of credited service, or for a member of KMEA
     eight years of credited service, or for a member of AFSCME nine years of
     credited service, or for a member of ATU ten years of credited service) and does
     not have an Option B election provided in subsection (A) of this section in force,
     and dies while in the employ of the City and leaves a spouse, the spouse shall
     immediately receive a retirement allowance computed according to Section 2-
     237, exclusive of subsection (B), in the same manner and all respects as if the
     member had retired the day preceding the date of his or her death,
     notwithstanding that he or she might not have attained his or her voluntary
     retirement age, elected Option B provided in Section 2-240 and nominated his or
     her spouse as beneficiary. No retirement allowance shall be paid under this
     subsection on account of the death of a member, if any benefits are paid or are
     to be payable under Sections 2-241(a) and 2-244 on account of his or her death.

C.   If any policeman, fireman or Public Safety member continues in the employ of
     the City on or after the date he or she acquires ten (10) years of credited service,
     and does not have an Option B election provided in subsection (A) of this section
     in force, and dies while in the employ of the City, the applicable benefits provided
     in paragraphs (1), (2) and (3) shall be paid:

     1.    The accumulated contributions standing to the member’s credit in the
           annuity savings fund at the time of his or her death shall be paid in
           accordance with the provisions of Section 2-247.

     2.     The widow surviving spouse of the deceased person shall receive a
            pension of thirty-three and one-third percent per cent of his final
            compensation. A widow’s pension of his or her final compensation. A
            surviving spouse's pension shall terminate upon his or her remarriage or
            death, and shall be subject to Section 2-245 and to subsection (B) of this
            section.

     3.    If the deceased person leaves an unmarried child or children under age
           eighteen years, fifteen percent per cent of the final compensation shall be
           paid for one child or twenty-five percent per cent of the final compensation
           for two or more children. Upon a child’s adoption, marriage, death or
           attainment of age eighteen years, whichever occurs first, his or her
           pension shall terminate and the board shall recalculate and make payment
           of the deceased person’s final compensation to his remaining eligible


                                          30
             children under eighteen years of age, if any, in the percentages set forth in
             this section. Any pension payable under this paragraph shall be subject to
             Section 2-245.

       If a beneficiary elects to take benefits under Section 2-240 or 2-241(a), then no
benefits shall be paid under Section 2-241(c) on account of his or her death.

Sec. 2-242. Disability retirement.

A.    A member who is in the employ of the City, has 10 or more years of credited
      service (for an exempt employee or Public Safety Administrator five years of
      credited service, or, for a member of KMEA, eight years of credited service, or for
      a member of AFSCME who as nine years of credited service, or for a member of
      ATU who has ten years of credited service) and becomes totally and
      permanently incapacitated for duty in the employ of the City, may be retired by
      the Board upon application of the member or his/her department head, provided
      that, after medical examination of the member made or by under the direction of
      the medical director, the medical director certifies to the Board that the member
      is mentally or physically totally incapacitated for duty in the employ of the City,
      will probably be permanently incapacitated and should be retired. Upon his
      retirement, the member shall receive a disability retirement allowance provided in
      Section 2-243.

      1.     A decision by the board to grant either a duty or non-duty disability
             retirement to any employee, including Public Safety officers, police
             officers, and firefighters, shall be a final decision on that employee’s
             fitness to work. A decision by the board to retire any employee, including
             a Public Safety officer, police officer, or firefighter, for reasons of disability
             shall completely terminate that individual’s right to continue to work for the
             City, and shall be effective immediately, regardless of whether that
             individual subsequently remains on the payroll or is otherwise
             compensated by the City after the date of the board’s decision by virtue of
             accumulated sick pay, vacation pay, workers’ worker’s compensation, or
             any other type of payment of wages, salary or any other type of
             compensation.

B.    The 10 years (for exempt employees or Public Safety Administrators five years,
      or for a member of KMEA, eight years, or for a member of AFSCME who has
      nine years of credited service, or a member of ATU who has ten years of credited
      service) of service requirement provided in Subsection (A) of this section shall be
      waived in the case of a member who the Board finds is totally and permanently
      disabled for duty in the employ of the City as the natural and proximate result of
      the personal injury or disease arising out of and in the course of his/her City
      employment. [Amended 3-6-2006 by Ord. No. 1798]

C.    Beginning January 1, 1984, if a police member, fire, Public Safety member is
      totally incapacitated for duty as a police officer, fire fighter or Public Safety officer


                                             31
     and the board finds that his or her disability is the natural and proximate result of
     causes arising out of and in the course of his or her employment as a police
     officer or fire fighter with the employer City and that the employee will likely be
     permanently so incapacitated, the member shall be entitled to a duty disability
     retirement allowance calculated in the same manner as a normal voluntary
     retirement benefit, except that during the member's worker's compensation
     period, his or her duty disability retirement allowance under this subsection (C
     shall not exceed the difference between his or her final compensation and his or
     her weekly worker's compensation award converted to an annual basis.

     1.     If the member disagrees with the finding of the medical director, he or she
            shall have the right to submit reports from his or her medical doctor. In the
            event a dispute continues to exist, the medical director and the member's
            doctor shall select a third doctor who shall provide the pension board with
            an opinion concerning the disputed matters before the pension board
            renders its decision.

     2.     If a dispute continues to exist concerning the meaning or application of the
            pension plan retirement system after a decision by the pension board,
            such dispute shall not be grievable under labor agreements, but subject to
            review, as provided by applicable law, in the Kalamazoo County Circuit
            Court or other court as may be appropriate.

     3.     The police member or fire member Public Safety Member may elect to
            waive the provisions of the duty disability retirement he or she is entitled to
            and accept such retraining, rehabilitation and/or other employment as the
            employer City may choose to offer. The Public Safety Member shall retain
            any benefits he or she has earned in the police/fire portion of the
            retirement system.

D.   The board of trustees shall have the right and opportunity to have a medical
     examination conducted of the person whose injury or sickness is the basis of a
     disability benefit during the pendency of a claim or period of payment, subject to
     the following:

     1.     Examination may be made no more often than once during every twelve-
            month period, except that the board may require examination at any time
            there is specific reason to believe that the disability or condition giving rise
            thereto no longer exists;

     2.     The examination shall be limited to the condition upon which the disability
            is based.

     3.     The expense of the examination and all other reasonable incidental costs,
            such as travel, meals, and lodging at standard rates for City employee
            travel, will be borne by the retirement system under Section 2-251 of the
            Kalamazoo City Code.



                                           32
      4.     If the board at any time believes that the facts of the case do not require
             further examination, the board may waive examination for any time the
             board deems appropriate based upon the facts of the case, but such
             waiver may be rescinded by the board at any time.

      5.     Notification of the time, date, and place of the examination shall be mailed
             to the retirant at the address to which his or her benefits are mailed and
             said notice shall be mailed at least thirty (30) days prior to the date of the
             examination.

E.    If the retirant fails or refuses examination, or if upon reviewing the medical
      information received, the board is not satisfied that the disability still exists, the
      board shall so inform the retirant. If, within thirty days of such notice being sent,
      the retirant has not requested a hearing on the mailer, the board may terminate
      the disability benefits. The termination of benefits under this section shall not
      affect eligibility for nondisability benefits. If a hearing is timely requested, the
      retirant shall be permitted to present evidence, question witnesses, and make
      argument for nontermination. The board may obtain and consider any relevant
      evidence. If it finds that the disability no longer exists, benefits shall be
      terminated. The time, date, and place of the hearing shall be set by the board.
      Notices shall be to the retirant at the address to which his or her benefits are
      sent.

Sec. 2-243. Disability retirement allowance (duty and non-duty).

A.    If a member retires on account of his or her total and permanent disability, as
      provided in Section 2-242, and the board finds that his or her disability did not
      occur as the result of causes arising out of and in the course of his or her actual
      performance of duty in the employ of the City, he or she shall receive a disability
      retirement allowance computed according to Section 2-236, if he or she is a
      policeman, fireman or public safety officer member Public Safety Member, or
      according to Section 2-237, exclusive of subsection (B), if he or she is a general
      member. His or her disability retirement allowance shall be subject to Sections
      2-245 and 2-246. Prior to the date of his or her retirement, he or she shall have
      the right to elect to receive his or her retirement allowance under an option
      provided in Section 2-240 in lieu of a straight life retirement allowance.

B.    If a member retires before his or her voluntary retirement age on account of his
      or her total and permanent disability, as provided in Section 2-242, and the board
      finds that his or her disability is the natural and proximate result of cause arising
      out of and in the course of his or her actual performance of duty in the employ of
      the City, he or she shall receive a disability retirement allowance computed
      according to Section 2-236, if he or she is a policeman or fireman member Public
      Safety member or according to Section 2-237, exclusive of subsection (B), if he
      or she is a general member. In computing his or her disability retirement
      allowance, the credited service to be used shall be the sum of his or her credited
      service in force at the time of his or her retirement and the number of years, and


                                            33
       fraction of a year, in the period from the date of his or her retirement to the date
       he or she would attain his voluntary retirement age had he or she continued in
       City employment. During his or her worker's compensation period, his or her
       disability retirement allowance shall not exceed the difference between his or her
       final compensation and his or her weekly worker’s compensation award
       converted to an annual basis. His or her disability retirement allowance shall be
       subject to Section 2-246. Prior to the date of his or her retirement, he or she
       shall have the right to elect to receive his or her retirement allowance under an
       option provided in Section 2-240 in lieu of a straight life retirement allowance.

Sec. 2-244. Benefits for death in line of duty.

A.     In the event a member dies as the result of a personal injury or disease arising
       solely out of and in the course of his or her employment by the City, or a disability
       retirant dies within a period of five (5) years from and after the effective date of
       his or her retirement, and prior to his attainment of age sixty (60) years, as the
       result of the same injury or disease for which he or she was retired, and in either
       case such death, injury or disease resulting in death is found by the board to
       have been the result of his or her actual performance of duty in the employ of the
       City, the applicable benefits provided in paragraphs (1), (2), (3), (4) and (5) of this
       subsection shall be paid.

       1.     The accumulated contributions standing to the member’s credit in the
              annuity savings fund at the time of his or her death shall be paid in
              accordance with the provisions of Section 2-247; or

       2.     The widow surviving spouse of the deceased person shall receive a
              pension of thirty-three and one-third percent of his or her final
              compensation, provided that, in the case of a disability retirant, he or she
              was his wife the spouse of the member at the time of his retirement. A
              widow’s pension the member's retirement. A surviving spouse's pension
              shall terminate upon his or her remarriage or death, and shall be subject
              to Section 2-245 and to subsection (B of this section, and

       3.     If, in addition to a widow surviving spouse, the deceased person leaves an
              unmarried child or children under age eighteen (18) years, each such child
              shall receive a pension of an equal share of twenty-five percent of his or
              her final compensation. Upon a child’s adoption, marriage, death or
              attainment of age eighteen (18) years, whichever occurs first, his or her
              pension shall terminate and the board shall redistribute the shares of
              twenty-five percent of the deceased person’s final compensation to his or
              her remaining eligible children under age eighteen (18) years. Any
              pension payable under this paragraph shall be subject to Section 2-245
              and to subsection (B) of this section, but

       4.     If there be is no widow spouse surviving the deceased person, or if his
              widow or her surviving spouse dies or remarries before his or her


                                             34
             youngest unmarried child attains age eighteen (18) years, his or her
             unmarried child or children under age eighteen (18) years shall each
             receive a pension of twenty-five percent of his or her final compensation;
             provided that, if there be are more than two (2) such surviving children,
             each such child shall receive a pension of an equal share of fifty percent
             of his or her final compensation. Upon a child’s adoption, marriage, death
             or attainment of age eighteen (18) years, whichever occurs first, his or her
             pension shall terminate and the board shall redistribute the shares of fifty
             percent of the deceased person’s final compensation to his or her
             remaining eligible children under age eighteen (18) years. In no case
             shall any such child’s pension exceed twenty-five percent of the deceased
             person’s final compensation. Any pension payable under this paragraph
             shall be subject to Section 2-245 and to subsection (B) of this section; or

      5.    If there be is neither a widow surviving spouse nor children eligible to
            receive a pension provided in this section surviving the said deceased
            person, there shall be paid to each his or her dependent father and
            dependent mother, whom the board, after investigation, finds to have been
            actually dependent upon the deceased person for financial support, a
            pension of sixteen and two-thirds percent of his or her final compensation.
            Any pension payable under this paragraph shall be subject to Section 2-
            245 and to subsection (B) of this section, and shall in no case exceed
            seven hundred twenty dollars ($720.00) a year.

B.    If a beneficiary becomes entitled to a retirement allowance provided in Section 2-
      240 or 2-241 on account of the death of a retirant or member, and he or she
      elects to take under Sections 2-240 or 2-241, then no benefits shall be paid
      under this section on account of his or her death. Any pension due any child
      under subsection (A) of this section may, in the discretion of the board, be paid to
      the parent or person who stands in loco parentis to such child; provided that, if
      the board finds that such child is not being properly cared for, the board may
      require the appointment of a guardian for the purpose of receiving such pension.

Sec. 2-245. Pension offset by Worker’s compensation - subrogation of rights against
third party.

(a)   During the worker's compensation period of a beneficiary, a retirement allowance
      payable by the retirement system shall be reduced by the amount of weekly
      worker's compensation converted to an annual basis.

(b)   In the event a person becomes entitled to a pension or other benefits, payable by
      the retirement system, as the result of an accident or injury caused by the act of
      a third party, the City shall be subrogated to the rights of such person against
      such third party to the extent of the benefits which the City pays or becomes
      liable to pay.




                                           35
Sec. 2-246. Redetermination of allowances effective prior to January 1, 1973; January
1, 1975; January 1, 1978; January 1,1979; January 1,1980; return of disability retirant to
city employ; payment proportional to available funds.

A     The amount of each retirement allowance having an effective date prior to
      January 1, 1973, shall be redetermined January 1, 1973. Such redetermined
      amount shall be the amount of retirement allowance otherwise payable multiplied
      by the following percent: one hundred percent plus two percent for each year,
      including any fraction of a year to the nearest one-twelfth year, in the period from
      the date the retirement allowance became effective to January 1, 1973. The
      amount of each retirement allowance having an effective date prior to January 1,
      1975, shall be redetermined January 1, 1975. Such redetermined amount shall
      be the amount of retirement allowance otherwise payable multiplied by the
      following per cent: percentage: one hundred percent plus two percent for each
      year, including any fraction of a year to the nearest one-twelfth year in the period
      from the date the retirement allowance became effective or January 1, 1973 to
      January 1, 1975, whichever period is shorter. The amount of each retirement
      allowance having an effective date prior to January 1, 1978, shall be
      redetermined January 1, 1978, and such redetermined amount shall be the basis
      of payments thereafter. The redetermined amount shall be the amount of
      retirement allowance otherwise payable, increased by two dollars ($2.00) per
      month for each year, or part thereof, between the date of retirement and
      December 31, 1977. However, any beneficiary receiving benefits under Option C
      of Section 2-240 shall receive one dollar ($1.00) per month for each year, or part
      thereof, for the above-stated period. The amount of each retirement allowance
      having an effective date prior to January 1, 1979, shall be redetermined January
      1, 1979, and such redetermined amount shall be the basis of payments
      thereafter. The redetermined amount shall be the amount of retirement
      allowance otherwise payable, increased by two dollars ($2.00) per month for
      each year, or part thereof, between the date of retirement and December 31,
      1978. However, any beneficiary receiving benefits under Option C of Section 2-
      240 shall receive one dollar ($1.00) per month for each year, or part thereof, for
      the above-stated period. The amount of each retirement allowance having an
      effective date prior to January 1, 1980, shall be redetermined January 1, 1980,
      and such redetermined amount shall be the basis of payments thereafter. The
      redetermined amount shall be the amount of the retirement allowance otherwise
      payable, increased by one dollar ($1.00) for Public Safety police and fire retirees
      and seventy-five cents ($0.75) for general retirees per month for each year, or
      part thereof between the date of retirement and December 31, 1980. However,
      beneficiaries receiving benefits under Option C shall receive fifty cents ($0.50) for
      Public Safety Police and Fire members and thirty-seven and one-half cents
      ($0.375) for general members per month for each year or part thereof, for the
      above-stated period, in the case of a retirement allowance payable to a
      beneficiary upon the death of a retirant, the effective date of such retirement
      allowance shall be the effective date of the deceased retirant’s retirement
      allowance. As used in this section “the amount of retirement allowance



                                           36
      otherwise payable” means the amount of retirement allowance which would be
      paid without regard to the provisions of this section.

B     A disability retirant who has been or who shall be returned to the employ of the
      City shall again become a member of the retirement system. His or her credited
      service in force at the time of his or her retirement shall be restored to his or her
      credit. He or she shall be given service credit for the period he or she was
      receiving a disability retirement allowance, if within such period, he or she was in
      receipt of worker’s workmen’s compensation on account of his or her total and
      permanent disability arising out of and in the course of his or her city
      employment; otherwise, he or she shall not be given the service credit for the
      period he or she was in receipt of a disability retirement allowance.

Sections 2-246.1 – 2-246.4 reserved

Sec. 2-246.1. One-Time Payable in 1986 Only.

A     In the year 1986 only, one-time payments to retirants or beneficiaries shall be
      made as follows:

      (1)    If a retirant retired on or before December 31, 1981, said retirant shall
             receive a one-time payment in the amount of seven dollars and fifty cents
             ($7.50) for each year or fraction of a year for which the retirant was retired
             prior to December 31, 1985.

      (2)    If a beneficiary is receiving one hundred percent (100) of the retirement
             allowance which the beneficiary’s retirant would have been receiving and
             the beneficiary's retirant retired on or before December 31, 1981, the
             beneficiary shall receive a one-time payment in the amount of seven
             dollars and fifty cents ($7.50) for each year or fraction of a year that the
             retirant retired prior to December 31, 1985.

      (3)    If a beneficiary is receiving fifty percent (50) of the retirement allowance
             which the beneficiary’s retirant would have been receiving and the
             beneficiary’s retirant retired prior to December 31, 1981, the beneficiary
             shall receive a one-time payment in the amount of three dollars and
             seventy-five cents ($3.75) for each year or fraction of a year that the
             retirant retired prior to December 31, 1985.

B     No person may receive benefits under more than one of the foregoing
      paragraphs of this section.

C     In computing future retirement allowance increases, the payments provided
      herein shall not be considered.




                                           37
Sec. 2-246.2. One-Time Early Retirement Option.

A     Those qualified individuals (as defined below) who so elect and whose last actual
      work day is January 2, 1996, or before, shall have the right to retire and receive a
      full retirement allowance as provided in this article, notwithstanding the fact that
      he or she may not satisfy this article’s age and/or service requirements (including
      those stated in the definition of “voluntary retirement age,” in Section 2-224) and,
      further, without incurring a reduction in said allowance which might otherwise
      occur because of an early retirement (such as that mandated by Section 2-
      237(b)).

B     The qualified individuals for whom the above opportunity shall be available shall
      not include those who are police members, fire members, Public Safety members
      but shall include all other members who will be, on January 1, 1996, at least fifty
      (50) years old and who will have (or would have) at least fifteen (15) years
      credited service and whose combination of years of age plus years of credited
      service total at least seventy-two (72).

Sec. 2-246.3. One-Time Payment.

A     In the year 1999 only, a one-time payment shall be paid from system assets to
      certain retirees; for each such person, the amount to be paid shall be the product
      of thirty dollars ($30.00) times the sum of the retiree’s years and fraction thereof
      of credited service plus the number of years and fraction thereof which elapsed
      between the retirant’s date of retirement and December 31, 1998.

B     The retirees eligible to receive said one-time payment shall be those who retired
      prior to January 1, 1994, and who are not eligible for a post-retirement
      adjustment and whose current annual retirement allowance is less than twenty-
      four thousand dollars ($24,000.00).

C     If the one-time payment provided for above, when added to the existing
      retirement allowance, exceeds twenty-four thousand dollars ($24,000.00), the
      one-time annual payment shall be reduced by the amount said sum exceeds
      twenty-four thousand dollars ($24,000.00).

D     A beneficiary currently receiving benefits shall be entitled to receive said one-
      time payment based upon the same calculations (using the beneficiary’s retirant
      for years of credited service and years since retirement), and subject to the same
      limitations, as described above.

E     In computing future retirement allowance payments, or any other payment due to
      a retirant or beneficiary, the payments provided herein shall not be considered.




                                           38
Sec. 2-246.4. One-Time (1999) Retirement Option.

A     Those exempt members who have thirty (30) years or more of credited service
      on or before September 1, 1999, and who so elect and whose last actual work
      day is between July 15 and September 1, 1999, shall have the right to retire and
      receive a full retirement allowance as provided in this article, notwithstanding the
      fact that he or she may not otherwise satisfy this article’s age requirement
      (including those stated in the definition of “voluntary retirement age” in Section 2-
      224) and, further, without incurring a reduction in said allowance which might
      otherwise occur because of an early retirement (such as that mandated by
      Section 2-237).

B     Those exempt members who elect to retire pursuant to the above provision must
      provide the city with written notice of said intent at least thirty (30) days prior to
      their last day of actual work (but in no event no later than August 1, 1999).

Sec. 2-246.5. Periodic payment.

A.    Commencing in the year 2001, and thereafter occurring every third year, subject
      to the limitations set forth below, a non-guaranteed payment shall be paid from
      the system assets to certain retirees; for each such person, the amount to be
      paid shall be the product of forty-three dollars and sixty-seven cents ($43.67)
      (subject to the increases allowed below) times the sum of the retiree's years and
      fraction thereof of credited service plus the number of years and fraction thereof
      which have elapsed between the retirant’s date of retirement and December 31
      of the year preceding the payment to be made.

B.    The retirees eligible to receive said periodic payment shall be those who retired
      prior to both January 1, 2000 and at least five (5) years prior to December 31 of
      the year preceding the periodic payment to be made, and whose annual
      retirement allowance is less than twenty-eight thousand dollars ($28,000.00), but
      who are not eligible for a post-retirement adjustment. In those instances where a
      retirement allowance is divided by an EDRO, the “retired prior to” language
      above applies to the actual retiree, not the alternate payee; the “less than twenty-
      eight thousand dollars ($28,000.00)" requirement shall apply to the combined
      amounts being received by the retiree and his or her alternate payee.

C.    If the periodic payment provided for above, when added to the existing retirement
      allowance, exceeds twenty-eight thousand dollars ($28,000.00), the periodic
      payment shall be reduced by the amount said sum exceeds twenty-eight
      thousand dollars ($28,000.00). In those instances where a retirement allowance
      is divided by an EDRO, if the periodic payment(s), when added to the existing
      retirement allowances, exceed twenty-eight thousand dollars ($28,000.00), the
      periodic payment(s) shall be reduced by the amount said sum exceeds twenty-
      eight thousand dollars ($28,000.00).




                                            39
D.   A beneficiary currently receiving a retirement allowance, or an individual who in
     the future becomes a beneficiary and who thereafter receives such an allowance,
     shall be entitled to receive the periodic payment based upon the same
     calculations (that is, the beneficiary’s retirant’s years of credited service and
     years since retirement) and subject to the same limitations, as described herein.

E.   In computing future retirement allowance payments, or any other payment due to
     a retirant or beneficiary, the payments provided herein shall not be considered.

F.   The periodic payment described herein shall be made in June every third year,
     commencing 2001; however, no payment shall be made in any year in which the
     fund’s actuary projects (based upon a valuation of the fund as of December 31 of
     the prior year) the need for City contributions to the fund (for one (1) or more
     actuarial grouping) within ten (10) years of the projection nor if the actuary
     recommends a contribution by the City (for one (1) or more actuarial grouping)
     for that year. In the event a periodic payment is not made in a year in which it
     would otherwise occur (because of the actuary’s projection or recommendation),
     then the payment shall be made in the next year in which no such actuarial
     projection or recommendation is made. In the event that a periodic payment is
     so delayed, future periodic payments shall be made every third year thereafter
     (so long as not prohibited by an actuarial projection or recommendation).

G.   When calculating the amount of the periodic payment for each individual after
     2001, the forty-three dollars and sixty-seven cents ($43.67) amount referenced
     above shall increase by the lesser of two percent per year or the C.P.I. (i.e., the
     Consumer Price Index, U.S. City Average, all urban consumers) which exists for
     the period of time between December 31 of the year preceding the last payment
     and December 31 of the year preceding the payment to be made.

H.   In no event, however, shall the total of all of the periodic payments in one (1)
     year exceed the amount of seven hundred and fifty thousand dollars
     ($750,000.00): in the event the total payments are in excess of that amount, each
     individual’s payment shall be reduced proportionately to reduce the total payment
     to said seven hundred and fifty thousand dollars ($750,000.00). Any periodic
     payment due to a retiree who is alive on December 31 of the year prior to the
     payment, but who dies before the payment is made, shall be made (one (1) time
     only) to that retiree’s estate or beneficiary, as the case may be.

I.   Notwithstanding any of the above, the City administration shall be entitled to
     recommend to the City Commission at any time that the periodic payments be
     reduced or eliminated and the City Commission shall, at any time, be entitled,
     with or without such a recommendation, to reduce or eliminate said periodic
     payments.




                                         40
Sec. 2-246.6. One-Time (2002) Retirement Option.

A.    Those vested exempt members who qualify (defined below), who so elect, and
      whose last actual work day is no later than September 30, 2002, shall have the
      right to retire and receive a full retirement allowance as provided in this article,
      notwithstanding the fact that he or she may not otherwise satisfy this article’s age
      requirements (including those stated in the definition of “voluntary retirement age”
      in Section 2-224) and, further, without incurring a reduction in said allowance
      which might otherwise occur because of an early retirement (such as that
      mandated by Section 2-237).

B     To qualify for the above, an individual’s years of credited service plus age must
      either total eighty (80) or more or, if the individual is at least fifty-five (55) years
      old, total seventy (70) or more. In determining age and calculating years of
      credited service, both will be calculated as of December 31, 2002 (that is,
      although calculating the amount of the retirement allowance will be based on
      actual years of credited service, for purposes of qualification for this subsection, it
      is assumed that the individual will work through December 31, 2002).

C     Those exempt members who elect to retire pursuant to the above provisions
      must provide the city with written notice of said intent no later than fourteen (14)
      days prior to his or her last actual work day.

(Ord. No. 1738, § 1, 7-1-02)

Sec. 2-246.7. One-Time (2002) Retirement Opportunity.

A     Those vested members who are neither exempt, nor members of the IAFF, nor
      sworn member of Public Safety who qualify (defined below), who so elect, and
      whose last actual work day is no later than November 30, 2002, shall have the
      right to retire and receive a full retirement allowance as provided in this article,
      notwithstanding the fact that he or she may not otherwise satisfy this article’s age
      requirements (including those stated in the definition of “voluntary retirement” in
      Section 2-224) and, further, without incurring a reduction in said allowance which
      might otherwise occur because of an early retirement (such as that mandated by
      Section 2-237).

B     To qualify for the above, an individual’s years of credited service plus age must
      either total eighty (80) or more or, if the individual is at least fifty-five (55) years
      old, total seventy (70) or more. In determining age and calculating years of
      credited service, both will be calculated as of December 31, 2002 (that is,
      although calculating the amount of the retirement allowance will be based on
      actual years of credited service, for purposes of qualification for this subsection, it
      is assumed that the individual will work through December 31, 2002).

C     Those members who elect to retire pursuant to the above provisions must
      provide the City with written notice of said intent no later than seven (7) days
      prior to his or her last actual work day.


                                            41
(Ord. No. 1747, § 1, 11-4-02)

Sec. 2-247. Refund of accumulated contributions.

A,    Should any member cease to be employed by the City before he or she attains
      his voluntary retirement age, for any reason except his or her retirement or death,
      he shall be paid his accumulated contributions standing to his or her credit in the
      annuity savings funds, as he or she shall demand in writing on forms furnished
      by the board.

B.    Should a member die and no retirement allowance or pension will become
      payable by the retirement system on account of his or her death, except as
      provided in Section 2-244, his or her accumulated contributions standing to his or
      her credit in the annuity savings fund at the time of his or her death shall be paid
      to such person or persons as he or she shall have nominated by written
      designation duly executed and filed with the board. If there is no such
      designated person surviving the member his or her accumulated contributions
      shall be paid to his or her legal representative.

C.    If a member dies without heirs, and without a designated beneficiary surviving
      him or her accumulated contributions standing to his or her credit in the annuity
      savings fund at the time of his or her death may be used to pay his or her burial
      expenses, not to exceed a reasonable sum to be determined by the board,
      provided he or she leaves no other estate sufficient for such purpose.

D.    Payments of accumulated contributions, as provided in this section, may be
      made in installments according to such rules and regulations as the board may
      from time to time adopt.

E.    Code Section 401(a)(31) Direct Rollovers Notwithstanding any provision of the
      Plan to the contrary, for distributions made on or after January 1, 1993, a
      Distributee may elect, at the time and in the manner prescribed by the Board of
      Trustees, to have any portion of an Eligible Rollover Distribution paid directly to
      an Eligible Retirement Plan specified by the Distributee in a Direct Rollover.

Sec. 2-248. Annuity savings fund; members’ contributions; transfers.

A.    The annuity savings fund is hereby created. It shall be the fund in which shall be
      accumulated at regular interest, the contributions deducted from the
      compensation of members (or ”picked up” by the City pursuant to Section 2-
      248(f)) to provide for their annuities, and from which shall be made refunds and
      transfers of accumulated contributions as provided in this article.

B.    Each member shall contribute a percentage of his or her annual compensation to
      the annuity fund, which percentage shall be as follows:

      1.     For Public Safety members, eight percent throughout 1998, seven and
             one quarter percent throughout 1999, and six and one-half percent on and


                                           42
           after January 1, 2000, except that on and after January 1, 1999, those
           Public Safety members who are members of the Kalamazoo Police
           Supervisors’ Association with at least twenty-six (26) but less than twenty-
           nine (29) years of credited service need make no contributions.

     2.    For members represented by the Kalamazoo Municipal Employees
           Association, three percent, except that on and after March 13, 2000, the
           percentage shall be two percent and except that on and after January 1,
           2001, the percentage shall be one percent, unless increased as provided
           by the collective bargaining agreement.

     3.    For members represented by the Amalgamated Transit Union ATU, two
           percent, except that commencing March 1, 2000, the amount shall be one
           percent.

     4.    For civilian, non-sworn employees of Public Safety represented by the
           Kalamazoo Police Officers Association, four percent except that on and
           after January 12, 2007, it shall be one percent;

     5.    For a member who is represented by the AFSCME American Federation
           of State, County and Municipal Employees effective November 4, 1999,
           two percent, effective October 2, 2006, one percent, but that will increase
           to two percent if the funding level of the pension fund drops below 120%
           three percent, except that commencing November 4, 1999, the amount
           shall be two percent;

     6.    For members who are exempt, 1.5 percent, except for those exempt
           members hired on or after June 1, 2006, it shall be 3 percent; and except
           for those exempt members who pay an additional two percent pursuant to
           2.237e above.

C.   The officer or officers responsible for making the payroll shall cause the
     applicable contribution provided for in subsection (B) of this section to be
     deducted from the compensation of each member (or “picked up” by the city
     pursuant to Section 2-248(f)) with respect to each and every payroll, for each and
     every payroll period, so long as he or she remains a member in the employ of the
     City. Such contribution, when thus deducted or “picked up” shall be paid to the
     retirement system and shall be credited to his or her individual account in the
     annuity savings fund. Every member shall be deemed to consent and agree to
     the deductions or salary reductions made and provided for herein. Payment of
     his or her compensation less such deductions or reductions, shall be a full and
     complete discharge and acquittance of all claims and demands whatsoever for
     services rendered by him or her during the period covered by such payment,
     except as to benefits provided under this article. The member’s contributions
     provided for herein shall be made notwithstanding that the minimum
     compensation provided by law for any member shall be thereby changed.




                                         43
D.   In addition to the contributions deducted from the compensation of a member, as
     herein before provided, he or she shall deposit in the annuity savings fund, by a
     single contribution or by an increased rate of contribution, as approved by the
     board, the amount, if any, he or she withdrew from the annuity savings fund,
     together with regular interest from the date of withdrawal to the date of
     repayment. In no case shall any member be given credit for service rendered
     prior to the date he or she withdrew his or her accumulated contributions until he
     or she repays the annuity savings fund all amounts due the fund by him or her.

E.   Upon the retirement of a member, his or her accumulated contributions shall be
     transferred from the annuity savings fund to the retirement reserve fund. At the
     expiration of a period of three (3) years from the date an employee ceases to be
     a member, any balance standing to his or her credit in the annuity savings fund,
     unclaimed by the member or his or her legal representative, shall remain a part
     of the monies of the retirement system, provided he or she does not have
     entitlement to a retirement allowance payable by the retirement system.

F.   The City Commission may, from time to time by resolution, designate one (1) or
     more classes, groups or categories of City employees who shall have their
     employee contributions “picked up” as hereinafter described, provided that:

     1.    The City Commission may, by appropriate resolution, likewise withdraw
           such designation from one (1) or more classes, groups or categories of
           City employees.

     2.    All designations or withdrawals of designations shall be done so as not to
           discriminate in favor of employees who are officers or highly compensated
           individuals, within the meaning of Section 401(a)(4) of the Internal
           Revenue Code.

           a.     Effective as provided in the following paragraph, the contributions,
                  required by Section 2-248(b) in respect of those employees who
                  are included within a class, group or category so designated by the
                  City Commission, shall be “picked up” by the City in lieu of their
                  employee contributions, as permitted by Section 414(h) or the
                  Internal Revenue Code, and shall be treated as employer
                  contributions in determining tax treatment under said Code. The
                  City shall “pick up” these employee contributions from funds made
                  available as a result of each such employee’s authorization to
                  reduce his or her salary or wages in an amount corresponding to
                  the contribution required by Section 2-248(b).           Employee
                  contributions “picked up” by the City pursuant to this subsection
                  shall be treated for all other purposes in the same manner and to
                  the same extent as employee contributions made prior to the
                  effective date of this subsection. No employee in any such class,
                  category or group shall have the option of choosing to receive



                                         44
                     contributed amounts directly, instead of having them paid by the
                     city to the retirement system.

       (b)    This subsection shall not go into effect unless the city receives written
              notification from the Internal Revenue Service that, pursuant to Section
              414(h) of the Internal Revenue Code, the employee contributions so
              “picked up" shall not be included in the employees’ gross income for tax
              purposes until said contributions are distributed by refund or benefit
              payment to said employees

Sec. 2-249. Retirement reserve fund.

        The retirement reserve fund is hereby created. It shall be the fund from which
shall be paid all annuities and pensions payable as provided in this article. Should a
disability retirant return to the employ of the City, his annuity reserve at the date of his or
her return shall be transferred from the retirement reserve fund to the annuity savings
fund and shall be credited to his or her individual account therein; and his or her
pension reserve shall be transferred to the pension reserve fund.

Sec. 2-250. Reserve for employer contributions; City contribution.

A.     The reserve for employer contributions shall be the account to which shall be
       credited contributions made by the City to the retirement system and from which
       shall be made transfers as provided in this section.

B.     Each year following receipt of the report of the annual actuarial valuation, the
       excess, if any, of the reported value of retirement allowance being paid and likely
       to be paid retirants and beneficiaries over the balance in the reserve for retired
       benefit payments shall be transferred from the reserve for employer contributions
       to the reserve for retired benefit payments.

C.     The financial objective of this section is to require City contributions to the
       retirement system each fiscal year which together with the contributions made by
       members during the fiscal year shall be sufficient to (i) fully fund the cost of
       benefits likely to be paid on account of service rendered by members during the
       year, and (ii) finance unfunded costs of benefits likely to be paid on account of
       service rendered by members prior to the current year over a period of not more
       than forty (40) years. Such contributions shall be computed by the actuary as
       level percentages of member payroll in accordance with generally accepted
       actuarial principles on the basis of such rates of interest and tables of experience
       as the Investment Committee recommends and the City Commission shall from
       time to time adopt. The City may also contribute the anticipated cost of any
       insurance coverage provided retirants and beneficiaries through the retirement
       system. The Investment Committee shall annually certify to the Commission the
       contributions determined according to this section.

D.     Forfeited amounts, if any, resulting from the operation of the retirement system
       shall be applied to reduce the next succeeding contribution or contributions


                                              45
      required to be made to the reserve by the City under this section and shall not be
      applied to increase any pensions and/or annuities payable to any member under
      the retirement system.

Sec. 2-251. Expenses.

      Expenses for the administration of the retirement system shall be paid from
investment income.

Sec. 2-252.1 Investment committee and management of funds Trust Fund.

       There is hereby created an Investment Committee which shall manage the
assets of the system and have full power to invest and reinvest such assets, subject to
the provisions of Act 314 of the Public Acts of 1965 (MCLA 38.112138.1132 et seq.) as
amended and any other applicable law or regulation. The committee shall have the
power to purchase notes, bonds, or other obligations of the City before or after the
same are offered to the public and with or without advertising for bids. The committee
shall have power to hold, purchase, sell, assign, transfer, and dispose of any securities
and investments in which any of the funds of the retirement system have been invested,
as well as the proceeds of such investments and any monies belonging to the system.
The provisions of this subsection shall be subject to such conditions and restrictions as
the City Commission may from time to time impose by resolution.


Sec. 2-252.2 Investment committee; membership, appointment, duties

A.    Membership, appointment. The investment committee shall be composed of no
      less than three (3) nor more than seven (7) members, all of whom shall have a
      financial background and none of whom shall be participants in the system.
      Additionally, to avoid a conflict of interest, or the appearance thereof, no member
      shall be employed by or associated with (except in the capacity of outside
      director) any organization that provides services similar to those retained or used
      by the committee. One (1) member may be a member of the Board of Trustees
      of the system.

      The investment committee members shall serve without compensation and if any
      member fails to attend three (3) consecutive regularly scheduled meetings of the
      committee, unless in each case excused for cause by the remaining members,
      his or her office will be deemed vacated. Within sixty (60) days of any time that
      the number of committee members becomes less than three (3), the Mayor, with
      the consent of the City Commission, shall appoint enough new members so that
      the committee consists of three (3) members. At any time the committee
      consists of less than seven (7) members but more than two (2) members, and a
      majority of the committee desires the addition of one or more new members, the
      Mayor, with the consent of the City Commission, shall appoint new members in
      such number as requested by the then existing committee. All members shall
      serve three year terms with the exception of those who are appointed to replace



                                           46
    those with unexpired portions of their terms; said replacement members shall
    serve the unexpired portion of the term, in the same manner as the office was
    previously filled.

    The committee shall hold meetings regularly, at least quarterly, and shall
    designate the time and place thereof. A majority of the committee’s membership
    shall constitute a quorum at any meeting of the committee. Each member shall
    be entitled to one (1) vote on each question before the committee; at any
    meeting with a quorum, decisions shall be made by affirmative vote of a majority
    of those present; except that should the committee’s membership become three
    (3), the entire membership shall constitute a quorum and all decisions shall be
    made by a unanimous vote of the entire membership. The committee shall adopt
    its own rules of procedure and shall keep a record of its proceedings. All
    meetings of the committee shall be open to the public. The City Commission
    may appoint a Commissioner as liaison to the committee.

B   Officers.

    1.     The committee shall elect a chairman chairperson and chairman
           chairperson pro tem.

    2.     The director of finance shall serve as secretary to the committee and
           provide staff support.

    3.     City Attorney shall be the legal advisor to the committee.

           c.    Duties. The duties of the investment committee shall be as follows:

                 (1)    To formulate and recommend to the City Commission
                        investment policies, strategies, and guidelines for approval
                        by the City Commission.

                 (2)    To carry out such investment policies, strategies, and
                        guidelines as approved by the City Commission.

                 (3)    To establish investment performance monitoring systems
                        and report the results of said system quarterly to the City
                        Commission.

                 (4)    To investigate and recommend investment managers,
                        advisors, actuaries, and other necessary services to the City
                        Commission for its approval.

                 (5)    To recommend to the City Commission for approval the
                        allocation of annual contributions and redistribution of funds,
                        including investment income, to investment managers,
                        reserves and accounts.



                                         47
                    (6)     To insure that investment records are properly maintained.

                    (7)    To serve as the primary contact with investment managers,
                           actuaries and advisors.

                    (8)     To insure that the plan is properly audited.

                    (9)    To provide the actuary with data to make the annual
                           valuation, which shall show the financial condition of the
                           system by means of an actuarial valuation of its assets and
                           liabilities and be rendered annually to the City Commission.

                    (10)   To recommend          actuarial   assumptions    to   the   City
                           Commission.

                    (11)   To perform such other duties as the City Commission may
                           from time to time direct.

Sec. 2-252.3. Available cash and use of assets.

There shall be kept on deposit available cash not to exceed five percent of the total
assets of the retirement system. The Trust Fund shall be held for the sole purpose of
meeting disbursements for pensions, annuities and other payments authorized by this
article and shall be used for no other purpose. It shall not be possible, at any time prior
to satisfaction of all liabilities to members and their beneficiaries under the retirement
system, for any part of said assets to be used for, or diverted to, purposes other than for
the exclusive benefit of members and their beneficiaries and for paying reasonable
expenses for the retirement system and Trust Fund. The description of the various
funds of the retirement system, as contained in this article, shall be interpreted to refer
to the accounting records of the system.

Sec. 2-253. Method of making payments.

All payments from monies of the retirement system shall be made according to charter
and ordinance provisions and only upon regular City checks. No check shall be issued
unless it shall have been previously authorized by a specific or continuing resolution
adopted by the board or investment committee.




                                            48
Sec. 2-254. Income fund; allowance of regular interest.

A.    The income fund is hereby created. It shall be the fund to which shall be credited
      all interest, dividends and other income from investments of the retirement
      system: all gifts and bequests received by the system; all unclaimed accumulated
      contributions as provided in this article; and all other monies received by the
      system the disposition of which is not specifically provided in this article. There
      shall be paid or transferred from the income fund all amounts required to credit
      regular interest to the annuity savings fund, retirement reserve fund and the
      pension reserve fund, as provided in this article. Wherever the investment
      committee determines the balance in the income fund is more than sufficient to
      cover current charges to the fund, such excess amount, or any part thereof, may
      be used to provide contingency reserves or to meet special requirements of the
      other funds of the system, except the expense fund, as the investment committee
      shall determine. However, any amounts left in the income fund after meeting the
      requirements contained herein shall at the end of each year be automatically
      credited to the employer’s reserve. Whenever the balance in the income fund is
      insufficient to meet the charges to the fund, the amount of such insufficiency shall
      be transferred from the pension reserve fund to the income fund.

B.    The investment committee shall, at the end of each fiscal year, allow regular
      interest on the members' individual balances in the annuity savings fund at the
      beginning of the fiscal year, and on the mean balances in the retirement reserve
      fund and the pension reserve fund. The amounts of interest so allowed and
      credited shall be charged to the income fund.

Sec. 2-255. Previous assets credited to retirement system.

        All assets held as of the effective date of ordinance No. 378 for the purpose of
financing the retirement system established by ordinance No. 188 shall be credited to
the retirement system as amended by ordinance No. 378. Such credits shall be made
as follows:

A.    Assets credited to the prior service pension fund and all other assets held for the
      purpose of financing prior service pensions shall be credited to the pension
      reserve fund.

B.    Assets credited to the retirement annuity and pension fund arising from City
      contributions shall be credited to the pension reserve fund.

C.    Assets credited to the individual accounts of members in the retirement annuity
      and pension fund arising from their contributions, together with regular interest
      credited thereon, shall be credited to their individual accounts in the annuity
      savings fund.

D.    Assets credited to the retirement annuity and pension fund held for the purpose
      of paying annuities and pensions to individuals who have retired shall be credited
      to the retirement reserve fund.


                                           49
E.    All other assets held for the purpose of financing the retirement system
      established by ordinance No. 188, not accounted for above, shall be credited to
      the pension reserve fund.

Sec. 2-256. Benefits assumed.

       The retirement benefits allowed under Ordinance No. 188 prior to the effective
date of Ordinance No. 378 shall be continued without adjustment of amounts. The 1966
amendments of Ordinance No. 378, as amended, shall not apply to pensions and
retirement allowances being paid as of the day preceding the effective date of the 1966
amendments.

Sec. 2-257. Correction of errors.

       Should any change in the records result in any person receiving from the
retirement system more or less than he or she would have been entitled to receive had
the records been correct, the board shall correct such error and, as far as is practicable,
shall adjust the payment in such manner that the actuarial equivalent of the benefit to
which such person was correctly entitled shall be paid.

Sec. 2-258. Benefits, rights or funds not subject to legal process or assignment; city’s
right of setoff. Sec. 2-258. Benefits, Rights or Funds Not Subject to Legal Process or
Assignment; City’s Right of Setoff; Forfeiture of Retirement Allowance.

A.     The right of a person to an annuity, a pension, a retirement allowance, to the
       return of accumulated contributions, the annuity, the pension, or the retirement
       allowance itself, any optional benefits, any other right accrued or accruing to any
       person under the provisions of this article, and any moneys belonging to the
       retirement system, shall not be subject to execution, garnishment, attachment,
       the operation of bankruptcy or insolvency law, or any other process of law
       whatsoever, and shall be unassignable except as is specifically provided in this
       article. If a member is covered by a group insurance or prepayment plan
       participated in by the City, and should he be permitted to, and elect to, continue
       such coverage as a retirant, he or she may authorize the board to have
       deducted from his or her retirement allowance the payments required of him or
       her to continue coverage under such group insurance or prepayment plan. The
       city shall have the right of setoff for any claim arising from embezzlement by or
       fraud of a member, retirant or beneficiary.

B.    The City shall comply with a court order directing that all or a portion of a
      member’s pension rights be forfeited, pursuant to the Public Employee
      Retirement Benefits Forfeiture Act, MCL 38.2701 et seq.




                                            50
Sec. 2-259. Protection against fraud.

       Whoever, with intent to deceive, shall make any statement or report required
under this article which is untrue, or shall falsify or permit to be falsified any record or
records of the retirement system, or who shall otherwise violate, with intent to deceive,
any provision of this article shall be guilty of a misdemeanor and punishable as provided
in section 1-7 of this Code.

Sec. 2-260. Retirant’s death benefit fund.

Upon the death of any retirant, the Retirement System shall pay to the person
previously designated by the retirant, or if none to the estate of the deceased, the sum
of one thousand dollars.

A      Pursuant to authority contained in section 197 of the Charter, there is hereby
       created a retirant’s death benefit fund, in recognition of loyal and faithful service
       by City employees. Said fund shall be administered by the City Manager, under
       the direction and supervision of the City Commission.

B      From and after January 1, 1980, for those retirants designated in (1) below; and
       from and after January 1, 1971, for those retirees designated in (2) below; and,
       from and after January 1, 1973, for those retirees designated in (3) below, the
       annual budget of the City shall contain provisions, and there shall be
       appropriated in said budget, as a “retirement system death benefit,” the present
       actuarial value of the amounts stipulated in (1), (2) and (3) below:

       (1)    The sum of five hundred dollars ($500.00) to be provided for each person
              employed by the City whose life is insured under the group life insurance
              program in force for employees of the City, who may become a retirant
              under the City retirement system (Ordinance No. 460) during the fiscal
              year of said annual budget and whose life insurance under said City group
              life insurance program will lapse upon retirement.

       (2)    The sum of one thousand dollars ($1,000.00) to be provided for each
              person who is a department head, or an exempt supervisory, managerial,
              administrative or confidential employee within the meaning of Michigan
              Public Act 379 of 1965; or a public safety department command officer,
              whose life is insured under the group life insurance program in force for
              employees of the City, who may become a retirant under the City
              retirement system (Ordinance No. 460) during the fiscal year of said
              annual budget and whose life insurance under said City group life
              insurance program will lapse upon retirement.

       (3)    The sum of one thousand dollars ($1,000.00) to be provided for each
              person who is not defined in (1) above, whose life is insured under the
              group life insurance program in force for employees of the City, who may
              become a retirant under the City retirement system (Ordinance No. 460)



                                             51
              during the fiscal year of said annual budget and whose life insurance
              under said City group life insurance program will lapse upon retirement.

C      Upon the retirement of an employee meeting the qualifications set forth in
       subsection (b) above, the City Manager is hereby authorized to approve the
       transfer to an investment fund approved by the City Commission, a sum from the
       aforesaid appropriation sufficient to provide the present actuarial value of the
       amount required to pay such benefits. The director of finance shall keep account
       of the monies necessary for said fund as retirements take place. Upon the
       effective date of this amendment, the amounts already placed in the investment
       fund shall be redetermined and funded in accordance with the present actuarial
       value required to pay such benefits. Any excess over the present actuarial value
       shall be placed in the insurance reserve fund.

D      At no time shall said fund, the monies therein, or any portion thereof vest in or
       become the property of or be assignable by the qualified retirants of the City, nor
       shall the same be deemed available for attachment, execution, garnishment,
       bankruptcy or insolvency proceedings, and property interest therein shall be
       deemed to vest in any qualified retirant during his lifetime, or any heir, next of kin
       or beneficiary thereof, except as provided in subsection (e) below.

E      It is the intent of the City Commission that death benefits paid from said fund
       shall be used by heirs, next of kin or beneficiaries of deceased retirants to meet
       the obligations incurred by final illness, funeral expenses, or to offset costs
       incurred by said heirs, next of kin or beneficiaries, or any other person who, prior
       to the death of said retirant, accepted substantial responsibility for his bills. The
       City Manager shall, upon written proof of the death of the retirant, cause said
       death benefit to be paid, as he deems appropriate, to the heir, next of kin or
       beneficiary of the retirant, unless in his opinion the expressed intent of the City
       Commission, as mentioned, may not be substantially met thereby, in which
       event, the City Manager shall investigate and recommend for the approval of the
       City Commission the plan of disbursement which will carry out said intent.

Sec. 2-261. Reciprocal Retirement Act.

        This City, being a “municipal unit" which covers its employees under a retirement
system, does hereby, by a majority vote of its governing body, elect to adopt the
provisions of the Reciprocal Retirement Act, No. 88 of 1961 [MSA § 4.1601; MCL
§38.1101] for its employees covered under such retirement system. The City Clerk
shall file written certification of this action with the Secretary of State for the State of
Michigan.

Sec. 2-262. Description of funds; effect.

        The description of various funds of the retirement system shall be interpreted to
refer to the accounting records of the retirement system and not to the segregation of
monies in the various funds of the system.



                                             52
Sec. 2-263. Maximum Retirement Allowances.

A.    Maximum retirement allowances. Notwithstanding any other provision of the
      retirement system to the contrary, the maximum annual retirement allowance
      derived from City contributions to the system, payable on a straight life basis in
      respect to a member, at the time of retirement shall not exceed the lesser of

      (1)   Ninety thousand dollars ($90,000.00), or

      1.    Effective January 1, 2002, the dollar amount established in Code Section
            415 (b)(1)(A), which is adjusted for inflation based on Section 215(i)(2)(A)
            of the Social Security Act, or

      2.    One hundred percent of the member's average compensation from the
            City during the three (3) consecutive calendar years during which he or
            she was an active member and had the greatest aggregate compensation
            from the City, except that for those persons who are members on or
            before March 1, 1999, and who are then, or thereafter become, exempt
            members and who retire on or after January 1, 1999, the percentage shall
            be ninety-two percent; and further except that for those persons who first
            become members after March 1, 1999, and who then or thereafter
            become exempt employees, the percentage shall be seventy percent;
            provided, however, that:

            a.     If retirement allowances are payable in any form other than on a
                   straight life basis, the determinations as to whether the foregoing
                   limitation has been satisfied shall be made in accordance with
                   applicable treasury regulations by adjusting such retirement
                   allowances so they are equivalent to retirement allowances payable
                   on a straight life basis.

            b.     If the member has less than ten (10) years of credited service, the
                   maximum annual retirement allowance payable on a straight life
                   basis in respect of a member shall be the applicable maximum
                   annual amount described above multiplied by a fraction, the
                   numerator of which is the number of years of his or her credited
                   service and the denominator of which is ten (10).

            c.     After January 1, 1986 the aforesaid maximum ninety thousand
                   dollar ($90,000.00) limitation shall be adjusted annually for
                   increases in the cost of living in accordance with applicable
                   treasury regulations.

            c.     For purposes of this subsection (A) there shall not be taken into
                   account any ancillary benefit which is not directly related to
                   retirement income benefits, nor any other benefit not required by
                   Section 415(b)(2) of the Internal Revenue Code, as amended, to be



                                          53
                  taken into account for purposes of the limitation on retirement
                  allowances described in this subsection (A).

           d.     If a member should become a member in, or become entitled to
                  benefits under, another tax qualified pension, profit-sharing or
                  savings plan of the city, the board of trustees may reduce the
                  retirement allowance payable in respect of such member under this
                  retirement system to the extent necessary to prevent
                  disqualification of this retirement system. In such event the board
                  of trustees shall notify the member of such reduction and furnish
                  him or her with an explanation of the same.

           e.     For limitation years beginning on or after July 1, 2007, a member’s
                  average compensation shall take into account the annual limit on
                  compensation under Code Section 401(a)(17) for each of the
                  member’s three calendar years of compensation used in
                  determining such average compensation.



B.   Temporary restrictions on retirement allowances payable to highly compensated
     members.

     (1)   This subsection sets forth limitations required by the Internal Revenue
           Service on the retirement allowance payable to certain members. It
           applies to a member only if his anticipated annual retirement allowance
           derived from city contributions to the system exceeds one thousand five
           hundred dollars ($1,500.00) and the member was among the twenty-five
           (25) highest paid employees of the city on the date of the most recent
           amendment which increased retirement allowances (a “substantive
           amendment date”). The limitations set forth in this subsection shall be
           applicable if:

           a      The retirement system is terminated within ten (10) years after a
                  substantive amendment date, if applicable;

           b      Retirement allowances become payable to a member within such
                  ten-year period; or

           c      Retirement allowances become payable to a member after such
                  ten-year period and the full current costs for the ten-year period
                  have not been funded.

     (2)   If Subsection B(1)(b) above is applicable, the restrictions shall remain in
           effect until the later of the expiration of the ten-year period or the date on
           which the full current costs have been funded. If paragraph (3) above is
           applicable, the limitations shall continue to apply until the full current costs
           have been funded. If a member is subject to the provisions of this


                                          54
      subsection (said members being herein called the “highly paid members”),
      the retirement allowances payable to him shall not exceed the retirement
      allowances which can be provided from the greatest of the following: (A)
      The city’s contributions (or funds attributable thereto) which would have
      been applied to provide retirement allowances for the member if the
      retirement system had not been amended on the substantive amendment
      date and had continued without change; (B) Twenty thousand dollars
      ($20,000.00), or (C) The sum of (i) the city’s contributions (or funds
      attributable thereto) which would have been applied to provide retirement
      allowances for the member if the retirement system had been terminated
      on the day before the substantive amendment date, and (ii) an amount
      computed by multiplying the number of years for which the current costs of
      the retirement system have been met after said substantive amendment
      date by twenty (20) per cent of the first fifty thousand dollars ($50,000.00)
      of the member's average compensation during his last five (5) years of
      employment.

(3)   The limitations described above may be exceeded for the purpose of
      making current benefit payments to retirants who would otherwise be
      subject to such restrictions, provided that (i) the contributions which may
      be used for any such retirant in accordance with the restrictions heretofore
      indicated are applied to provide either a level amount of retirement
      allowance in the basic form of allowance provided for under the retirement
      system for such member, or a level amount of retirement allowance in an
      optional form of allowance, and (ii) the allowance thus provided is
      supplemented by monthly payments to the extent necessary to provide the
      full allowance in the basic form called for by the retirement system, and
      (iii) such supplemental payments are made only if the full current costs of
      the retirement system have been met or if the aggregate of such
      supplemental payments for all such retirants does not exceed the
      aggregate contributions by the city already made under the retirement
      system in the year then current.

(4)   Notwithstanding the foregoing provisions of this subsection (b), in the
      event of termination of the retirement system within ten (10) years after a
      substantive amendment date, that portion of the assets of the system
      arising from the contributions made by the city under the retirement
      system in respect of the highly paid members in excess of the amounts
      specified above, shall be apportioned to other members including
      retirants, in addition and in proportion to that portion of such assets
      otherwise apportionable to them, provided that in no event shall there be
      apportioned to any such other member any amounts which would cause
      the total amount apportioned to him to exceed the actuarial value of his
      accrued allowance under the retirement system, and any portion of such
      assets which cannot be apportioned to such other members on account of
      the foregoing proviso may be apportioned among the highly paid members
      to the extent such apportionment does not cause the total amount


                                    55
             apportioned to any of them to exceed the actuarial value of their accrued
             allowance under the retirement system. The limitations in this subsection
             (b) shall automatically become inoperative and of no effect upon the
             issuance of a regulation or ruling by the Internal Revenue Service that
             they are not required.

Sec. 2-263.1 - Eligible Domestic Relations Orders.

A.    An eligible domestic relations order ("EDRO") is a signed domestic relations
      order issued by a state court which assigns to an alternate payee(s) the right to
      receive all or part of a member's Retirement System benefit that is or will become
      payable to the member. An alternate payee is a spouse, former spouse, child or
      other dependent of a member who is treated as a Beneficiary under the
      Retirement System as a result of the EDRO. The Board of Trustees may
      establish EDRO procedures, but in the absence of such procedures, the Board
      will determine if a domestic relations order is an EDRO in accordance with the
      following:

      1.     Board of Trustees' Determination. Promptly upon the receipt of a
             Domestic Relations Order, the Board will notify the member and any
             alternate payee named in the Order of such receipt and will include a copy
             of this section. Within a reasonable time after receipt of the order, the
             Board will make a determination as to whether the order is an EDRO as
             defined in MCL 38.1701 et seq. and will notify the member and the
             alternate payee(s) in writing of the determination. Notwithstanding any
             other provision of the Retirement System, the Retirement System may
             make a distribution to an alternate payee pursuant to an order that the
             board of Trustees has determined to be an EDRO prior to the date the
             member attains his or her earliest retirement age, as defined in Code
             Section 414(p)(4)(B), only if the EDRO specifically requires the Retirement
             System to make a distribution prior to such date.

      2.     Specific Requirements of an EDRO. In order for a domestic relations
             order to be an EDRO, it must specifically state all of the following: (1) the
             name, last known mailing address (if any) and the social security number
             of the member and each alternate payee(s) covered by the order; (2) the
             dollar amount or percentage of the benefit to be paid to each alternate
             payee, or the manner in which the amount or percentage is to be
             determined; (3) the number of payments or period to which such order
             applies; and (4) the name of the plan to which the order applies. The
             domestic relations order will not be deemed an EDRO if it requires the
             Retirement System to provide any type or form of benefit, or any option
             not already provided for in the System, or increased benefits determined
             on the basis of the actuarial value, or benefits in excess of the member's
             Retirement System benefit, or payment of benefits to an alternate
             payee(s) required to be paid to another alternate payee under another
             EDRO.


                                           56
      3.     Disputed Orders. If there is a question as to whether or not a domestic
             relations order is an EDRO, there will be a delay in any payout to any
             payee(s) including the member, until the status is resolved. If the
             Retirement System determines that the order is not an EDRO, the
             Retirement System shall notify the employee and the alternate payee(s) of
             this determination. The notification shall specify the reasons the order
             was not determined to be an EDRO. This determination does not prohibit
             the employee or the alternate payee(s) or the court from filing an amended
             order with the Retirement System for redetermination.

      4.     Death of Alternate Payee(s). If an alternate payee(s) dies before receiving
             any payment of a benefit pursuant to an EDRO, that interest reverts to the
             member.



Sec. 2-264. Vesting upon termination or partial termination.

       Upon termination of the system, or upon termination of the system with respect to
a group of members which constitutes a partial termination of the system, the accrued
benefits of all members with respect to whom the system is terminated shall, as of the
date of termination or partial termination, as the case may be, become fully vested and
nonforfeitable to the extent then funded.

Sec. 2-264. Termination of the Retirement System.

        The City at any time can terminate the retirement system and trust fund in whole
or in part in accordance with, and subject to, state and federal law, this Plan, applicable
collective bargaining agreements, consideration of concerns submitted in writing by a
designated representative of a non-bargaining unit of employees, and the following
provisions:

      1.     Termination of Retirement System. The City can terminate the retirement
             system and Trust Fund by filing written notice of any such termination with
             the board of trustees and members. If required by law, such written notice
             will be provided at least sixty (60) days (or any other period as may be
             required by law or regulation) prior to the date of termination.

      2.     Vesting Requirement. Upon termination of the retirement system, or upon
             termination of the system with respect to a group of members which
             constitutes a partial termination of the system, the accrued benefits of all
             members with respect to whom the system is terminated shall, as of the
             date of termination or partial termination, as the case may be, become
             fully vested and nonforfeitable to the extent then funded.

      3.     Continued Administration of Retirement System Pending Distribution.
             Upon complete termination of the Retirement System the Board of
             Trustees will continue to administer the Retirement System until


                                            57
     distribution has been made to the members (which distribution must occur
     within a reasonable time after the termination of the System) with full
     settlement of all such benefits made by lump sum payments of the
     actuarial equivalent of benefits and/or through the purchase of a group
     Annuity contract or individual Annuity contracts to the extent of Trust Fund
     assets.

4.   Allocation of Trust Fund Assets to Members, Spouses and Beneficiaries.
     If the Retirement System is terminated, the Trust Fund will be first used to
     fund the costs of benefits due members.

5.   Retirement System Merger or Consolidation. The Retirement System and
     Trust Fund may not be merged or consolidated with, nor may any of its
     assets or liabilities be transferred to, any other plan, unless the benefits
     payable to each member if the Retirement System was terminated
     immediately after such merger, consolidation or transfer would be equal to
     or greater than the benefits to which such member would have been
     entitled if this Retirement System had been terminated immediately before
     such merger, consolidation or transfer.




                                  58
                                       Appendix A

                                 Actuarial Assumptions

The interest rate and mortality tables used to determine whether an optional form of
payment is the actuarial equivalent of the straight life retirement allowance, as referred
to in Section 2-240(a), are as follows:

      Interest rate:       6.5% per annum

      Mortality:           Blend of 95% male rates and 5% female rates, set back by 5
                           years from the 1971 GAM table.”




 F:\ord\NEW PENSION ORDINANCE
11/27/07




                                           59
                                                                                                      I-1 Item:
                                                                                           Date: 12-17-07


                                                                     City Clerk’s Report

                                                                    December 17, 2007

Correspondence
Correspondence from the Michigan Department of Treasury regarding fiscal distress indicators
for the City of Kalamazoo has been received and referred to the City Manager’s Office. The
Department will be posting this information to its website on or around December 29th and has
invited the City Commission to offer comments prior to this posting.




              Kalamazoo City Clerk's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8792
                                                  Fax: (269) 337-8494
                                                                      Date: 12/17/07
                                                                               Item I2




CITY MANAGER REPORT
December 17, 2007


  1. Departmental Reports and Project Updates


  2. Special Reports:
       a. November 2007 Purchases
       b. City of Kalamazoo Employee’s Retirement System, September 30, 2007
       c. Legislative Update, December 10, 2007
City Manager’s Report
DECEMBER 17, 2007




Administration & Finance

        Assessor:
        Four poverty/hardship exemptions have been approved for the 2007 roll from the previous
        March and July Boards of Review.

        Michigan Tax Tribunal appeals: Assessor has met with attorneys to review the appeals.
        There are two stipulations pending, 2 withdrawals and 4 council conferences were held.

        Small claims tribunal appeals: 18 appeals to be scheduled for hearing, 5 hearings
        scheduled, 9 waiting for Michigan Tax Tribunal decision.

        New land values and Economic Condition Factor (ECF) for all classes should be completed
        by year-end.

        2008 personal property statements will be sent out between the last week in December and
        the first week of January.

        Renaissance Zone applications were sent out for 2008.

        The Assessor’s office submitted 300 letters to residents who appeared to qualify for a
        Principal Residence Exemption (aka “Homestead” exemption) but who did not currently
        have one. To date, more than 60 residents have responded with qualified exemption
        applications. These will be entered in the December Board of Review so that the December
        2007 tax bills will reflect the exemption from school operating taxes.

        A special Board of Review will be held December 11th. For 2007 there are 118 PRE
        changes, 28 personal property changes, 4 clerical errors, 5 poverty exemption requests.
        For 2006 - 97 PRE changes and 4 personal property changes, for 2005 - 93 PRE changes
        and for 2004 - 89 PRE changes.

        Budget and Accounting:
        The proposed 2008 Budget was distributed on November 30th.

        Fiscal year 2007 year-end planning is underway and a task calendar distributed on
        November 30th. Year-end training sessions will be the kick off of another audit season.

        Pension Administration:
        The revised Pension Ordinance has been submitted for inclusion on the Commission
        agenda.

        Purchasing/Risk Management:
        The semi-annual surplus property auction was held Saturday, October 27, 2007 – a total of
        $114,484 was received.

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        Treasury:
        Tax bills were mailed on November 30.

Community Planning & Development

        Planning:
        On 11/01/07 and 11/02/07, Nehil-Sivak engineers supervised masons, surveyors and
        engineers in a complete condition assessment of the State Hospital Water Tower. The
        preliminary condition assessment report was reviewed by the City’s Historic Preservation
        Coordinator along with the condition assessment team on 11/27/07. The final report will be
        complete by the end of February and is funded by a $21,800 Certified Local Government
        grant from the State Historic Preservation Office from their Federal Historic Preservation
        Fund. Assessment activities should be complete by the spring of 2008.

        DKI’s request for expansion of the parking exempt district went before the City Commission
        for first reading on 11/19/07. The public hearing is scheduled for the 12/03/07 meeting. The
        DTI Portage Streetscape Plan will also go before the City Commission at this same meeting.
        The request will be that the City Commission endorses the plan with the recognition that
        additional work is needed on a phasing and fundraising strategy.

        At the 11/01/07 Planning Commission meeting, the Commission voted to recommend
        approval of the rezoning of the property at the corner of Stonebrook and Drake Road from
        Zone RS-5 to Zone CO to allow Jaqua Realty to construct a new office building on the
        property. At the same meeting, the Commission voted to deny a request to rezone property
        at Jack Pine Drive and W. Michigan Avenue from Zone CN-1 to Zone RM-15 to allow an
        expansion of the apartment complex in the area. The Arcadia neighborhood spoke against
        the project and rezoning. The Commission also voted to recommend approval of a request
        to expand the boundaries of the Parking Exempt District in the downtown area and to
        endorse the Portage Street Streetscape Plan. Three site plans were processed in
        November including a project to construct twenty condominiums on the property located
        north of Crane Park, an expansion of the Southwest Michigan Innovation Center in the BTR
        Park, and reuse of a building for AJ’s Recycling on E. Kilgore Road.

        Housing:
        The Lead Law Seminar was held 11/08/07 & 11/13/07 and had a good turnout. The Lead
        Safe Work Practices course will start in January 2008 at KVCC. The RFP for the lead
        assessment contractor is underway.

        The final 2007 edition of the Housing Inspection Newsletter will be mailed to all landlords
        during the first week in December.

        Zoning:
        The BL-94 Gateway Plan is complete. The Planning Commission will review and have the
        opportunity to adopt the plan in January of 2008. Kalamazoo Township and Kalamazoo
        County are also in the process of adopting the completed plan. The final step will be to
        pursue funding for the proposed improvements.

        Anti-Blight:
        There have been 62 commercial/industrial blight cases with 42 resolutions year to date. 78
        Abandoned Residential Structure Cases have been resolved by 58 rehabilitations and 20
        demolitions. 27 residential anti-blight cases have been referred to the City Attorney for
        prosecution in addition to 52 dangerous or blighted cases referred for consideration by the
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        Dangerous Buildings Board.

        Building & Trades:
        As of 11/27/07 there were 2,515 permits issued YTD, representing $98,250,000 in
        construction valuation generating $715,000 in permit fees.

        Neighborhood Development:
        On 11/08/07 CDAAC reviewed fifteen Summer Initiative Grant applications for 2008. There
        were 10 new and 5 repeat applications this year. $144,076 was requested; $70,000 was
        available for funding. Of the 15 applicants, 10 organizations were recommended for
        funding, including full awards for 7 organizations.

        Neighborhood Initiatives General Fund grant applications for 2008 were due to CPD by
        11/27/07. CDAAC will review and applications and submit recommendations to the City
        Manager’s Office by mid-December.

        PY2008 CDBG applications are due to CPD by 12/03/07. CDAAC will review all
        applications during December and January and recommendations will be submitted to the
        City Manager’s Office by 01/26/08.


Human Resources

        Promise Partner Program:
        We currently have 28 employees participating in the Promise Partner Program with
        Kalamazoo Communities in Schools. Since the inception of the program, employees have
        participated in Books ‘N Bagels, served as Celebrity Greeters for the first day of School, and
        participated in the First Day of School Shoe Fund. Many employees participate weekly in
        mentoring and tutoring and also with the Promise Coaching program at Kalamazoo Central
        High School. Employees who don’t have the time to volunteer weekly have chosen to
        volunteer for Special Events in the schools.

        Most recently two of our employees participated in Cider and Stories at Milwood Elementary
        School.

        We have four Public Safety Officers and one Public Services employee participating bi-
        weekly in the Guys Read Program at Lincoln Elementary School.

        The City of Kalamazoo is currently assisting with the Keep Children Warm project through
        Community in Schools. The City is asking for donations of new or gently used hats,
        mittens/gloves or boots for school age children.

        We continue to encourage employees to get involved in helping children of our community.

Parks & Recreation

        Parks and Recreation hosted a booth as part of the Promise Week activities at Loy Norrix
        High School on November 15th. Staff also attended a Promise Week event at Dancers’
        Studio, hosted by Jeff Harkins, Director of Education for the Arts, and Lisa Williams, who is
        with the Arts Council of Greater Kalamazoo. This particular session had a panel of key
        individuals in the Art/Education field and discussed the opportunities that KPS students

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        have in dance, acting, and art and how the community can engage those interested in these
        fields.

        Staff attended the 2008 Michigan Merit Exam (MME) informational meeting at Kalamazoo
        Public Schools. The MME is given to 11th graders and due to the specific testing
        requirements, 9th, 10th and 12th grade students do not have to attend school on the testing
        day. In 2007, numerous youth serving agencies met to try and develop activities for these
        students. This meeting was to review last year’s events and generate new ideas for
        enrichment for the students who won’t be taking the MME Test on March 11-12, 2008.

        Victor Taylor, Youth Development Program Liaison, was invited to attend a 4 day intensive
        conference on the Diversity Awareness Leadership Training (DALT) program at Pretty Lake
        Camp. The program focused on comprehensive tolerance and sensitivity to others. The
        training was with high school youth from 3 area schools in which the DALT program is
        offered on a year round basis and with other adults who work with youth.


Public Safety

        The last Crime Fighters meeting was held on November 21st with approximately 15 crime
        fighters from the different divisions in attendance. Discussed the home invasions from
        Redwood, Davis, and Forbes Street and developed a strategic plan to identify and
        apprehend the unidentified fourth suspect. Met with Detectives for preparation of upcoming
        Ada Street homicide trials.

        The Operations/Patrol division is working on the WMU forum with the students next Monday
        night to encourage them to be more secure in the homes and surroundings. We are also
        looking into the pattern of sewer grates and manhole covers that are being stolen.

        67 complaints have been lodged in 2007.

        In 2007, 21 meth incidents have been investigated to date. Last year at this time there had
        been 50 incidents.

        Project Safe Neighborhood (PSN) officer has taken 66 cases into the federal system. Thus
        far, 16 cases have been presented for 2007. The latest case involved a convicted felon with
        a pending KVET drug case found to be in possession of a shotgun.

        On the Public Safety Station Consolidation project, the final invoices for the removal of soil,
        of which some was contaminated or considered contaminated, have been received. The
        cost is in excess of $170,000. The drywall on the west side is hung and they are working on
        the east side this week. The garage door will also be installed this week.

        The next hiring process is in the works. The initial entry exam is scheduled for December
        14th at KVCC. 46 applicants have been invited for the test thus far.

        KRESA-sponsored Education for Employment law enforcement classes, grades 11th and
        12th. There are 41 year-one students and 19 year-two students. Year 1 EFE continued to
        create their action plan by researching what college/military they want to attend after
        graduation and what is required to be certified in Michigan as a law enforcement officer or
        lawyer. Year 1 students concluded victimology and began a lecture on crime causation.
        Year 2 began studying Habit 4, Think Win-Win, of the 7 Habits for Highly Effective Teens
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        book. Their class was cut short due to other activities in the building. Year 2 students
        concluded the section on Habit 4 and took the test for that section. Year 2 then discussed
        the changes they have witnessed in their lives and attitudes as they have applied the
        principles of the 7 Habits book to their daily activities.


Public Services

        Replacement of South Mall Brick Street:
        Contractor completed bleeding majority of air from the snowmelt system, Lovell to Michigan
        Avenue. 1,870 gallons of pure glycol have been added. 110 gallons remain in barrels in
        boiler room. Valves isolating system north of Michigan have been opened and City forces
        have been purging remaining air. City crews have started boilers and pumps and running
        system. City crews are balancing individual loops to purge additional air and remove cold
        spots.

        Reconstruction Crosstown Parkway from Westnedge to King Highway:
        Project has been awarded. Tree removal has started. The contractor did not start
        placement of sidewalk from Peeler to Westnedge due to wet weather and still hopes to
        complete that section of work this year.

        Maintain the Cleanliness of Neighborhood streets and properties to enhance A+
        Neighborhoods Initiative:
        Crews are collecting fall leaves from City streets. First cycle of leaf collection will be
        completed on December 3rd. Weather permitting we will began a second cleanup cycle.


        Maintain a Smooth Roadway Service to Increase Rideability Perception of Major Streets:
        Scattered site paving is complete and final series of streets is complete. Pothole patching
        major streets as needed.

        City-Wide Maintenance:
        Electrical circuits for the Atrium lighting project will be completed by December 4, 2007.
        Installation of the light tubes is ongoing and the entire lighting project should be completed
        by December 21, 2007.

        Signal Upgrade:
        Contractor installing traffic signal strain pole bases, pedestrian signal pole bases, handholes
        and underground conduits on Burdick Street from Walnut Street to Alcott Street. Contractor
        hit mis-located 2” medium pressure gas main at the northeast corner of S. Burdick and Vine
        Street on Thursday, Nov. 29, 2007, no injuries resulted.

        Continue Implementation of Wastewater Treatment Regulatory Programs:
        Staff have received official notification from the Groundwater Foundation that the City of
        Kalamazoo has been designated a Groundwater Guardian Community for 2007.

        Complete Evaluation and Oversee Start-Up of Proposed “Bronco Biodiesel” Facility at the
        KWRP:
        Finished drawings were delivered to staff on September 26th for final review by KWRP staff.
        Bronco Biodiesel’s consultant, ThermalTech met with City Building Officials on October 3rd
        to review the drawings for code conformance; drawings appear to be in compliance with all

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        applicable building codes with only a few minor questions. Consultants will be advertising
        the electrical work for bids within the next week or so and will solicit a cost estimate from a
        mechanical contractor.

        West Gateway Coalition Project:
        Majority of concrete work completed in College Park and along west side of Michigan Ave.
        Underground electric work is nearly complete. Contractor will restore site to safe condition
        for winter.




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                                    INTEROFFICE MEMO
 To:          Kenneth P. Collard, City Manager, ICMA-CM, P.E.

 From:        Nicholas Lam, CPPO, Purchasing Director

 Date:        December 5, 2007

 Subject:     November 2007 Purchases

 I am forwarding for the City Commission and your information a summary of the purchases and change
 orders between $50,000 and $100,000 administratively approved during November 2007.
 c:    Thomas Skrobola

                                  November 2007
         PURCHASES ADMINISTRATIVELY APPROVED BETWEEN $50,000 AND $100,000


       DESCRIPTION                    VENDOR                    AMOUNT            COMMENT
                            Location          MBE/WBE?
Purchase replacement        Hewlett-Packard Company          $ 53,933.00   Purchased through
personal computers and      Casco, MI              No                      Michigan education
laptops                                                                    buying cooperative




                                  November 2007
       CHANGE ORDERS ADMINISTRATIVELY APPROVED BETWEEN $50,000 AND $100,000


         DESCRIPTION                      VENDOR                AMOUNT              COMMENT
                               Location        MBE/WBE?

                     There were no change orders between $ 50,000 and $ 100,000
City of Kalamazoo Employee’s
      Retirement System

     As of September 30, 2007




           Report to the
      Retirement Investment
            Committee




              Wednesday
           November 14, 2007
                8:15 a.m.
         Conference Room 207-A
      County Administration Building
             Kalamazoo, MI
         REPORT TO THE RETIREMENT INVESTMENT COMMITTEE
                    OF THE CITY OF KALAMAZOO

                  Performance of the Employees’ Retirement Fund
                     For the Period Ending September 30, 2007


The market value of portfolio assets decreased from $543.9 million to $537.8 million during the
third quarter of 2007, a decrease of $6.1 million or 1.1%. The market value is net of
approximately $3.8 million in benefit payments and $102 thousand in withdrawals. Employee
contributions for the quarter were about $346 thousand. The City made no contribution in the
quarter.

The weighted average return of the portfolio for the quarter, net of manager fees, was a negative
0.4%. The portfolio has had net returns of 5.0% year-to-date and 11.6% year-on-year. The
annualized return since October 1982, net of manager fees, through the end of the quarter has
been 13.0%.

Equities comprised 70.1% of the City portfolio at the end of the quarter. The equity portion of
the City portfolio lost 2.3% for the period while total fixed income gained 4.5%. The year-to-
date return for equities was 5.2% and 4.5% for fixed income. The year-on-year returns were
14.0% for equities and 5.0% for fixed income.

Real estate returned a positive 3.2% for the quarter and 10.8% year-on-year.

The inflation-adjusted, or real return, for the quarter was a negative 0.5% as quarterly inflation
was 0.1%. Since 1982 the return on the portfolio, net of manager fees, has been 13.0% nominal
and 9.9% real.

The plan remains fully funded from an actuarial and a market basis.


Respectfully submitted,
November 14, 2007
           City of Kalamazoo Employee’s
                 Retirement System
                         As of September 30, 2007

                                                                        page

       Asset Allocation Graph                                            1

       Target Allocation vs. Actuals Graph                               2

       Quarterly & Cumulative Net Returns Graph                          3

       Growth of Market Assets vs. Actuarials Graph                      4

       Period Rates of Returns—Net Manager                               5

       Total Returns (Net Manager) vs. Benchmarks                        6-7

       Summary Statistics vs. Benchmarks (5 year)                        8-9

       Risk-Adjusted Statistics Summary Table (5Year)                    10

       Manager Correlation Matrix (5 Year)                               10

       Fama-French 3 Factor Model (5 year)                               11


Commentary for 2007Q3 and Articles of Interest (AOIs) forwarded under
Separate cover as well as posted to website.
                               City of Kalamazoo Employees Retirement System
                                                      at September 30, 2007



                                                                                         U.S.Real Estate
                                                                                              4.9%         Cash
                                                                                                           0.2%
                                International              U.S Fixed Inome
                                    5.0%                        24.8%
                                                                                                    U.S Small Cap
                                                                                                       23.3%

                                                              U.S Large Cap
                                                                  41.8%




                                                           Equity: 70.1%
                                                 Market Value: $537.8 Million
                                                Inception-to-Date (10/82) Net Return :   13.0%
                                                 Inception-to-Date Standard Deviation:   13.3%
                                                   Inception-to-Date Index Value:         21.2

Prepared for:
City of Kalamazoo                                                                                                   _____________
Employees' Retirement System                                  Page 1 of 11                                            Merion Capital
                                                  CITY OF KALAMAZOO
                                              Employee's Retirement System
                                                      Period Ending September 30, 2007


                                                        Target Allocation vs. Actual


                               DFA U.S. Micro Cap



                       DFA U.S. Small Cap Value



                                    DFA Int'l Small



                                     BGI S&P 500



                           DFA U.S. Large Value



                           Jennison Intermediate
                                  Bonds



                           Jennison Long Bonds



                      DFA Real Estate Securities



                                           RREEF



                                             Cash


                                                 0.0%      5.0%   10.0%    15.0%     20.0%    25.0%   30.0%   35.0%


                                                                          Actual     Target



                                                                    Amount $000              Actual       Target
            DFA U.S. Micro Cap                                         64,079                 11.9%        12.0%
            DFA U.S. Small Cap Value                                   61,194                 11.4%        12.0%
            DFA Int'l Small                                            26,654                  5.0%         5.0%
            BGI S&P 500                                               165,613                 30.8%        30.0%
            DFA U.S. Large Value                                       59,341                 11.0%        11.0%
            Jennison Intermediate Bonds                                67,762                 12.6%        12.5%
            Jennison Long Bonds                                        65,587                 12.2%        12.5%
            DFA Real Estate Securities                                 12,088                  2.2%         2.5%
            RREEF                                                      14,517                  2.7%         2.5%
            Cash                                                        999                    0.2%         0.0%
                                                                      537,834                100.0%       100.0%



Prepared for:
City of Kalamazoo                                                                                                     _____________
Employees' Retirement System                                          Page 2 of 11                                      Merion Capital
                                                                                   City of Kalamazoo
                                                                                Employee Retirement Fund
                                                     Quarterly vs. Since-Inception Net Returns
                                                                                       as of September 30, 2007


                                40



                                30
          Returns Net of Fees




                                20




                                10



                                 0




                                -10



                                -20
                                      1983

                                             1984

                                                    1985

                                                           1986

                                                                  1987

                                                                         1988

                                                                                1989

                                                                                       1990

                                                                                              1991

                                                                                                     1992

                                                                                                            1993

                                                                                                                     1994

                                                                                                                            1995

                                                                                                                                   1996

                                                                                                                                          1997

                                                                                                                                                 1998

                                                                                                                                                        1999

                                                                                                                                                               2000

                                                                                                                                                                      2001

                                                                                                                                                                             2002

                                                                                                                                                                                    2003

                                                                                                                                                                                           2004

                                                                                                                                                                                                  2005

                                                                                                                                                                                                         2006
                                                                                                                   Years Ending



Prepared for:
City of Kalamazoo                                                                                                                                                                                               _____________
Employees' Retirement System                                                                                  Page 3 of 11                                                                                        Merion Capital
                                                                                City of Kalamazoo Retirement System
                                                                         Market Assets, Actuarial Assets, and Actuarial Liabilities
       700,000
                                                                                                       September 30, 2007

                        Assumed Growth Rates
       600,000
                        Market assets         8.5%
                        Actuarial assets      7.5%
                        Actuarial liabilities 6.0%
       500,000




       400,000
$000




       300,000




       200,000




       100,000
                                                                                                                                                                                                          Forecast
                                                                                                                                                 Actual


            0
                 1982


                        1983


                               1984


                                      1985


                                             1986


                                                    1987


                                                           1988


                                                                  1989


                                                                         1990


                                                                                1991


                                                                                       1992


                                                                                              1993


                                                                                                       1994


                                                                                                              1995


                                                                                                                     1996


                                                                                                                            1997


                                                                                                                                   1998


                                                                                                                                          1999


                                                                                                                                                     2000


                                                                                                                                                            2001


                                                                                                                                                                   2002


                                                                                                                                                                          2003


                                                                                                                                                                                 2004


                                                                                                                                                                                        2005


                                                                                                                                                                                               2006


                                                                                                                                                                                                         2007


                                                                                                                                                                                                                2008


                                                                                                                                                                                                                       2009
                                                                                                     Years Ending

Prepared for:
City of Kalamazoo                                                                                                                                                                                     _____________
Employees' Retirement System                                                                         Page 4 of 11                                                                                       Merion Capital
                                                    City of Kalamazoo Employees' Retirement System
                                              Rates of Return by Manager and Asset Class--Net of Manager Fees
                                                                         Period Ending September 30, 2007
                                                                             (U.S. Dollars in Thousands)

                                           Inception: Oct-1982                                           Rates of Return(%) for Period Stated
                                        Market Value     % at
                                           $000        Market    Target %      Quarter          YTD     1 Year   3 Years   5 Years   10 Years Inception    Since

       Equities
       DFA U.S. Micro Cap                 64,079       11.9%     12.0%          (3.9)            2.0    11.7      13.3      20.4       10.7     14.0       09/82
       DFA U.S. Small Cap Value           61,194       11.4%     12.0%          (8.5)           (2.0)   8.0       13.9      22.3       12.3      NA        03/93
       DFA Intl Small                     26,654       5.0%       5.0%          (1.5)           12.1    26.3      25.5       NA         NA       NA        12/03
       Total Small Cap                   151,927       28.2%     29.0%          (5.5)            1.9    12.5      15.8      23.2       12.4     16.3

       BGI S&P 500                       165,613       30.8%     30.0%           2.0            9.1     16.4      13.1      15.4       6.5      13.6       09/82
       DFA U.S. Large Cap Value           59,341       11.0%     11.0%          (5.6)           2.8     11.2      15.1      18.1       9.2       NA        03/93
       Total Large Cap                   224,954       41.8%     41.0%          (0.0)           7.4     15.1      13.6      16.1       7.2      13.5

       Total Equity                      376,881       70.1%     70.0%          (2.3)           5.2     14.0      14.3      18.2       9.1      14.3

       Fixed Income
       Jennison Intermed. Bonds           67,762       12.6%     12.5%           3.6            5.0      5.9       4.6       4.4       NA        NA        12/98
       Jennison Long Bonds                65,587       12.2%     12.5%           5.5            4.0      4.1       5.1       5.0       7.8      10.5       10/82
       Total Fixed Income                133,349       24.8%     25.0%           4.5            4.5      5.0       4.8       4.6       6.9      9.6

       Real Estate
       DFA REIT Securities                12,088        2.2%      2.5%           1.6            (4.8)   3.7       18.8       NA        NA        NA        09/04
       RREEF RAII                         14,517        2.7%      2.5%           4.6            13.0    17.0       NA        NA        NA        NA        04/05
       Total Real Estate                  26,605        4.9%      5.0%           3.2             4.1    10.8       NA        NA        NA        NA

       Cash & Equivalents                     999       0.2%      0.0%           1.3            4.0      5.3       4.2       3.0       3.9       NA        03/95


       Total Plan--Nominal               537,834      100.0% 100.0%             (0.4)           5.0     11.5      12.3      14.6       8.8      13.0       10/82




       Returns over one year are annualized




Prepared for:
City of Kalamazoo                                                                                                                                         _____________
Employees' Retirement System                                                            Page 5 of 11                                                        Merion Capital
                              City of Kalamazoo Employees' Retirement System
                              Period Total Returns (Net Manager Fees) vs. Benchmarks
                                          Period Ending September 30, 2007


                                      Last 3             Last 1       Last 3   Last 5   Last 10                  Fees
                                      Months   Y-T-D     Years        Years    Years     Years    Inception      (%.)


DFA U.S. Micro Cap                     (3.9)   2.0        11.7         13.3     20.4     10.7       14.0          0.55
Russell Micro Cap                      (4.6)   (0.5)      9.7          11.2     19.5      NA         NA
   Manager Over/ (Under) Benchmark     0.7     2.5        2.0          2.1      1.0       NA         NA

DFA U.S. Small Cap Value               (8.5)   (2.0)       8.0         13.9     22.3     12.3        NA           0.55
Russell 2000 Value                     (6.3)   (2.7)       6.1         12.5     18.7     10.1       14.5
   Manager Over/ (Under) Benchmark     (2.2)   0.7         1.9         1.4      3.6      2.2         NA

DFA Intl Small                         (1.5)   12.1       26.3         25.5      NA       NA         NA           0.64
MSCI EAFE Small Cap Cap App            (4.9)   5.0        17.0         21.4     25.1      8.3        NA
   Manager Over/ (Under) Benchmark     3.4     7.1        9.3          4.1       NA       NA         NA

BGI S&P 500                            2.0     9.1        16.4         13.1     15.4     6.5        13.6          0.06
S&P 500 TR                             2.0     9.1        16.4         13.1     15.5     6.6        13.6
   Manager Over/ (Under) Benchmark     0.0     (0.0)      0.0          0.0      (0.0)    (0.1)      (0.0)

DFA U.S. Large Cap Value               (5.6)   2.8        11.2         15.1     18.1      9.2        NA           0.30
Russell 1000 Value                     (0.2)   6.0        14.5         15.3     18.1      8.8       14.7
   Manager Over/ (Under) Benchmark     (5.3)   (3.1)      (3.3)        (0.1)    0.0       0.4        NA

Jennison Intermed. Bonds               3.6      5.0        5.9         4.6      4.4       NA        NA            0.25
LB Aggregate Bonds                     2.9      3.8        5.1         3.9      4.1       6.0       8.8
   Manager Over/ (Under) Benchmark     0.7      1.2        0.8         0.8      0.3       NA        NA

Jennison Long Treasuries               5.5      4.0        4.1         5.1      5.0       7.8       10.5          0.25
ML LT Treas>15 yr                      5.2      3.8        4.2         4.7      4.6       7.3       10.1
   Manager Over/ (Under) Benchmark     0.3      0.3        (0.1)       0.3      0.5       0.5       0.3

DFA REIT Securities                    1.6     (4.8)       3.7         18.8      NA       NA         NA           0.37
DJ Wilshire REITs                      2.6     (3.4)       5.8         19.0     21.5     12.5        NA
   Manager Over/ (Under) Benchmark     (1.0)   (1.4)       (2.1)        NA       NA       NA         NA

RREEF                                  4.6     13.0       17.0          NA       NA       NA        NA            0.90
NCREIF Property                        4.6     13.3       17.3         18.0     14.4     13.1       9.1
   Manager Over/ (Under) Benchmark     0.0     (0.3)      (0.2)         NA       NA       NA        NA




    Prepared for:
    City of Kalamazoo                                                                                _____________
    Employees' Retirement System                       Page 6 of 11                                    Merion Capital
                             City of Kalamazoo Employees' Retirement System
                              Period Total Returns (Net Manager Fees) vs. Benchmarks
                                          Period Ending September 30, 2007


                                       Last 3                  Last 1       Last 3    Last 5   Last 10                  Fees
                                       Months       Y-T-D      Years        Years     Years     Years    Inception      (%.)


Cash & Equivalents                       1.3         4.0         5.3         4.2        3.0      3.9       NA            0.00
U.S. 30 Day TBill                        1.1         3.7         5.0         4.0        2.8      3.6       5.1
   Manager Over/ (Under) Benchmark       0.2         0.3         0.4         0.3        0.2      0.3       NA

Total Plan--Nominal                      (0.4)       5.0        11.5        12.3       14.6     8.8        13.0          0.31


U.S. Inflation                            0.1        3.3         2.8         3.2        2.9     2.6        3.1
Total Plan--Real                         (0.5)       1.6         8.8         9.1       11.8     6.2        9.9


Manager Composite (Net) (1)              (0.5)       5.1        12.1         12.4      15.1      NA         NA

Benchmark Composite (1)                  0.1         4.6        11.4         11.7      14.3      NA         NA

5% or pro-rated by period                1.3         1.3         5.0         5.0        5.0      5.0       5.0
U.S. Inflation + 5% annual               1.3         4.6         7.8         8.2        7.9      7.6       8.1
Over/(Under) Goal of 5% Real             (1.8)       0.4         3.8         4.1        6.8      1.2       4.9



DJW5000(70%)/LBAggregate(30%)            1.8         7.5        13.5         11.0      12.7      7.0       12.2
DJW5000(65)/LB Agg(35)                   1.9         7.3        12.9         10.5      12.1      7.0       12.0
DJW5000(60)/LB Agg(40)                   2.0         7.0        12.3         10.0      11.5      6.9       11.8
DJW5000(50%)/LB Agg(50%)                 2.1         6.5        11.1         8.9       10.3      6.9       11.3

Gold TR                                  14.2       17.6        24.0         21.4      18.1      8.4       2.5
DJGI World Oil & Gas TR                  6.9        26.6        39.4         28.8      29.1     13.0        NA
MSCI AC World ex U.S. TR                 4.7        17.9        31.1         26.5      26.3      9.2        NA
MSCI AC World TR                         3.6        14.1        24.6         20.2      21.0      7.8        NA
LB Aggregate Bond TR                     2.9         3.8         5.1         3.9        4.1      6.0       8.8
S&P 500 TR                               2.0         9.1        16.4         13.1      15.5      6.6       13.6
DJ Wilshire 5000 TR                      1.4         9.1        17.1         14.0      16.5      6.9       13.3
U.S. Inflation                           0.1         3.3         2.8         3.2        2.9      2.6       3.1



(1) Composites consist of portfolios of managers and benchmarks at the current allocation
Returns over one year are annualized




    Prepared for:
    City of Kalamazoo                                                                                       _____________
    Employees' Retirement System                             Page 7 of 11                                     Merion Capital
                         City of Kalamazoo Employees' Retirement System
              Summary Statistics vs Benchmarks on Gross Returns--5 Year Annualized
                                 Period Ending September 30, 2007

                                Ending                            Standard                                                     N
                                Index    Geometric   Arithmetic   Deviation Sharpe vs Highest      Lowest      N Positive   Negative   Correlations
                                Value     Mean (%)    Mean (%)       (%)     S&P 500 Return (%)   Return (%)    Periods     Periods    Mgrs v BMs


DFA U.S. Micro Cap              2.573      20.8        22.4       20.94       0.94     27.4         (7.0)         14           6         0.994
Russell Micro Cap               2.433      19.5        21.2       21.76       0.85     28.5         (7.4)         13           7

DFA U.S. Small Cap Value        2.768      22.6        24.3       21.95       0.99     28.0         (8.2)         14           6         0.825
Russell 2000 Value              2.356      18.7        19.8       17.21       0.99     22.7         (6.3)         16           4

DFA Intl Small (Sim)            3.615      29.3        30.4       17.64       1.57     23.5         (2.5)         15           5         0.987
MSCI EAFE Small+CapAppn         3.068      25.1        26.5       19.65       1.21     24.0         (4.9)         12           8

BGI S&P 500                     2.056      15.5        16.0       10.90       1.22     15.5         (3.2)         16           4         1.000
S&P 500 Index                   2.051      15.5        15.9       10.89       1.21     15.4         (3.2)         16           4

DFA U.S. Large Cap Value        2.316      18.3        19.0       13.66       1.19     17.8         (5.6)         17           3         0.946
Russell 1000 Value              2.294      18.1        18.6       12.09       1.31     17.3         (4.9)         18           2

Jennison Intermed. Bonds        1.256      4.7         4.7         3.02       0.63      3.6         (1.7)         15           5         0.968
LB Aggregate Bonds              1.224      4.1         4.2         3.37       0.41      3.8         (2.4)         13           7

Jennison Long Bonds             1.296      5.3         5.6         8.15       0.35      8.3         (4.9)         13           7         0.952
Merrill Lynch G8O2              1.254      4.6         5.0         8.96       0.25      9.3         (5.7)         12           8

DFA REITS (Sim)                 2.638      21.4        22.6       17.30       1.15     15.6         (9.4)         16           4         0.998
DJ Equity REIT TR               2.647      21.5        22.7       17.55       1.14     15.3         (9.0)         16           4

RREEF (Sim)                     1.965      14.5        14.5        2.34       6.73      5.7         2.0           20           0         0.681
NCREIF Property                 1.994      14.8        14.8        2.48       5.93      5.4         1.7           20           0


Cash & Equivalents              1.157      3.0         3.0         0.93       1.67      1.4         0.2           20           0         0.997
U.S. 30 Day T-Bill              1.148      2.8         2.8         0.86       0.00      1.3         0.2           20           0

Total Plan (Gross) 5 year       2.006     14.9         15.3        9.72       1.28     14.6         (1.9)         15          5          0.991


Since Inception-Net             21.162     13.0        13.7       12.24       0.73      8.9        (16.2)        204          96



Manager Composite               2.074      15.7        16.1       10.41       1.27     15.9         (2.6)         16           4         0.992
Benchmark Composite             1.958      14.4        14.7        9.33       1.27     14.2         (2.0)         16           4



DJW5000(80)/LB Agg(20)          1.928      14.0        14.4        9.04       1.28     13.6         (2.2)         16           4
DJW5000(70)/LB Agg(30)          1.821      12.7        13.0        7.90       1.29     12.2         (1.9)         16           4
DJW5000(65)/LB Agg(35)          1.772      12.1        12.3        7.35       1.29     11.5         (1.8)         15           5
DJW5000(60)/LG Agg(40)          1.723      11.5        11.7        6.82       1.29     10.8         (1.7)         16           4
DJW5000(50)/LB Agg(50)          1.630      10.3        10.4        5.82       1.29      9.3         (1.5)         16           4




 Prepared for:
 City of Kalamazoo                                                                                                             _____________
 Employees' Retirement System                                      Page 8 of 11                                                  Merion Capital
                          City of Kalamazoo Employees' Retirement System
                 Summary Statistics vs Benchmarks on Gross Returns--5 Year Annualized
                                    Period Ending September 30, 2007

                                Ending                            Standard                                                     N
                                Index    Geometric   Arithmetic   Deviation Sharpe vs Highest      Lowest      N Positive   Negative   Correlations
                                Value     Mean (%)    Mean (%)       (%)     S&P 500 Return (%)   Return (%)    Periods     Periods    Mgrs v BMs




OTHER BENCHMARKS
DJGI World Oil & Gas TR         3.589      29.1        30.2       17.23       1.61     19.0         (6.5)         17           3
MSCI World ex U.S. TR           3.002      24.6        25.5       15.66       1.47     19.5         (7.4)         18           2
MSCI AC World TR                2.596      21.0        21.7       12.94       1.47     17.5         (5.0)         16           4
Gold TR                         2.295      18.1        18.7       12.88       1.28     14.2         (6.6)         15           5
DJ Wilshire 5000 TR             2.149      16.5        17.0       11.41       1.25     16.5         (3.1)         16           4
S&P 500 TR                      2.051      15.5        15.9       10.89       1.21     15.4         (3.2)         16           4
LB Aggregate Bond TR            1.224      4.1         4.2         3.37       0.41      3.8         (2.4)         13           7
U.S. Inflation                  1.152      2.9         2.9         1.96       0.04      2.2         (1.0)         14           6




 Prepared for:
 City of Kalamazoo                                                                                                             _____________
 Employees' Retirement System                                      Page 9 of 11                                                  Merion Capital
Three-Factor Regression Results                                                                                                                     CITY OF KALAMAZOO
Monthly - Adjusted for Risk-free Rate Data: Nov 1996 - Sep 2007
                                                                                                                                                                                                                             Adjusted                     Start    End
                                                                                                                                                                                                                                   2                  2
                                                                                                                                            Label Manager                   E(R)%    a       Beta (b)   Size (s)   Btm (h)     R        Symbol    R       Date     Date
                                                        Small Cap (s)                                                                           1   BGI SP500                -0.68   -0.01      0.99      -0.20       0.03     0.987    SP500     0.988   Nov-96   Sep-07
            1.2
                                                                                                                                                2   TTL Equity                2.32   -0.03      1.03       0.26       0.22     0.986    TTLEq     0.987   Nov-96   Sep-07
            1.1                                                                                                                                 3   US Micro                  4.57    0.03      0.95       1.00       0.25     0.956    DFSCX     0.957   Nov-96   Sep-07
                                                                                                                                                4   US SmValue                7.43   -0.11      1.08       0.82       0.74     0.950    DFSVX     0.951   Nov-96   Sep-07
            1.0                                                                      US Micro                                                   5   US LrgValue               5.09   -0.25      1.17      -0.02       0.75     0.889    DFLVX     0.892   Nov-96   Sep-07
                                                                                                                                                6   Intl Small               -0.56    0.07      0.59       0.34       0.31     0.394    DFISX     0.408   Nov-96   Sep-07
            0.9
                                                                                                                                                7   REITs                     0.81    0.27      0.52       0.38       0.67     0.315    DFREX     0.331   Nov-96   Sep-07
                                                                                                                         US SmValue
            0.8

            0.7

            0.6

            0.5

            0.4                                                                                                     REITs
                                                                                          Intl Small
            0.3
                                                                                   TTL Equity

            0.2

            0.1
 Growth                                                                                                                             Value
 (h)    0.0                                                                                                                           (h)
                                                                                                                            US LrgValue


           -0.1

           -0.2                                                    BGI SP500



           -0.3
               -0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0.0 0.1                       0.2      0.3     0.4        0.5   0.6   0.7   0.8      0.9
                                        Large Cap (s)


Box in above right table indicates significant result (t-stat greater than 2.0).


Assuming a beta value of 1.00: Managers along the dotted line have expected returns over
the market of 0.00%, managers to the right of the line have positive expected returns over the
market and managers to the left of the line have negative expected returns over the market.




                        Prepared for:
                        City of Kalamazoo                                                                                                                                                                                                 _____________
                        Employees' Retirement System                                                                                                        Page 10 of 11                                                                   Merion Capital
                                   City of Kalamazoo Employees' Retirement System
                                         Risk Adjusted Performance vs S&P 500
                                                    Five Years Ending 9/30/2007

                                                                    Sharpe       Treynor      Jensen's     Sortino
                                           Alpha        Beta
                                                                     Ratio       Ratio (%)    Alpha (%)     Ratio


             DFA U.S. Micro Cap           (0.007)       1.573       0.942         12.320      (1.570)       3.279
             DFA U.S. Small Cap Value     (0.004)       1.593       0.985         13.312      (0.250)       3.474
             DFA Intl Small Co (Sim)       0.033       0.979        1.611         28.233      12.910       14.147
             BGI S&P 500                   0.000       1.001        1.217         13.168       0.040        4.918
             DFA U.S. Large Cap Value     0.003        1.103        1.189         14.581       1.370        4.022
             DFA REITS (Sim)               0.032        0.550       1.153         34.410      11.060        3.060
             RREEF (Sim)                   0.035       (0.007)      6.735       (3537.634)    11.030        0.000
             Jennison Intermed. Bonds     0.011        0.005        0.630        92.062        1.600       1.123
             Jennison Long Bonds          0.014        (0.015)      0.347        404.236       2.630       0.591



                                                           Managers Correlation Matrix
                                                                 Five Years Ending 9/30/2007

                                                   DFA U.S. DFA U.S.             DFA Intl                                          Jennison   Jennison
                                         DFA U.S. Small Cap Large Cap            Small Co     BGI S&P     DFA REITS               Intermed.     Long
                                         Micro Cap  Value     Value               (Sim)         500         (Sim)   RREEF (Sim)     Bonds      Bonds
             DFA U.S. Micro Cap            1.000       0.970        0.881          0.875       0.856       0.595      (0.148)      (0.129)    (0.118)
             DFA U.S. Small Cap Value      0.970       1.000        0.937          0.863       0.836       0.534      (0.227)      (0.221)    (0.185)
             DFA U.S. Large Cap Value      0.881       0.937        1.000          0.763       0.895       0.400      (0.167)      (0.168)    (0.140)
             DFA Intl Small Co (Sim)       0.875       0.863        0.763          1.000       0.666       0.481      (0.229)      (0.201)    (0.143)
             BGI S&P 500                   0.856       0.836        0.895          0.666       1.000       0.350      (0.034)      0.036      (0.020)
             DFA REITS (Sim)               0.595       0.534        0.400          0.481       0.350       1.000       0.051       0.327       0.371
             RREEF (Sim)                  (0.148)      (0.227)      (0.167)       (0.229)      (0.034)     0.051       1.000       0.118       0.053
             Jennison Intermed. Bonds     (0.129)      (0.221)      (0.168)       (0.201)      0.036       0.327       0.118       1.000       0.910
             Jennison Long Bonds          (0.118)      (0.185)      (0.140)       (0.143)      (0.020)     0.371       0.053       0.910       1.000



Prepared for:
City of Kalamazoo                                                                                                                                  _____________
Employees' Retirement System                                                  Page 11 of 11                                                          Merion Capital
                                     MEMORANDUM
To:             City of Kalamazoo
From:           Peter Ruddell
Date:           December 10, 2007
Re:             Legislative Update


Legislature Passes Service Tax Replacement
The Legislature finally passed measures to replace the Services Tax hours after the new tax took effect on
December 1. The Senate adopted substitutes to HB 5408 (Coulouris, D-Saginaw) would establish a
21.99% surcharge on a company’s Michigan Business Tax assessment. The substitutes passed on a 33-4
vote, with two Republicans and Democrats voting in the negative. The agreement reached by both sides
would have the surcharge expire in 2017.

The move came days after negotiations between the two sides nearly broke down after the House tried
force the Senate to act on the bill (HB 5408). The House finalized the replacement December 1 on a 66-
42 vote. Although the repeal of the service tax is immediate, the surcharge will not begin until the MBT
goes into effect on January 1, 2008. In all, 10 House Republicans supported HB 5408, with only one
Democrat voting against. The resolution was quickly signed into law by Governor Granholm that day.

House Committee Advances Brownfield Redevelopment Bills
On December 6, the House Committee on New Economy & Quality of Life approved HB 5511
(Clemente, D-Lincoln Park), SB 534 (Richardville, R-Frenchtown Twp.), and SB 539 (Sanborn, R-
Richmond) and sent them to the House floor. The bills revise the definitions for eligible activities,
property, and blight that are currently outlined in the Brownfield Redevelopment Financing Act. They
also require the Auditor General to conduct post-audits to measure effectiveness and efficiency of
Brownfield projects.

HB 5511 makes amendments to tax credits relating to Brownfield redevelopment to account for the new
Michigan Business Tax. After the new MBT takes effect January 1, the tax credit would rise to up to
12.5% of investment costs or 15% of costs if a project is undertaken in an urban development area. All
three bills would also raise the maximum number of yearly projects from 17 to 20.

The bill package has received a great deal of bipartisan support and is supported by the Michigan
Economic Development Corporation, Detroit Regional Chamber of Commerce, Grand Rapids Chamber
of Commerce, and the Michigan Municipal League.

State Supreme Court Gives OK to Presidential Primary
The Michigan Supreme Court has ruled in favor of permitting a January 15, 2008, presidential primary
election. Meanwhile, the Senate has refused to approve legislation (House Bill 4507) that would restore
the Democratic presidential ballot to all contenders. Debate continues on whether the names of the
Democratic contenders will appear after they refused to campaign in the state. Currently, the names will
have to be written in by voters on the day of the primary. Both the Democratic and Republican National
committees have continued to disapprove of Michigan’s early primary. The sides have acted on threats,
stripping Michigan of delegates for the nominating conventions, with the Republicans taking away half of
the Michigan delegation and the Democrats all.

Governor Granholm Hires New Chief of Staff
On November 29, Governor Jennifer Granholm announced the appointment of Daniel Krichbaum,
currently president and CEO of the Michigan Roundtable for Diversity and Inclusion, as her new chief of
staff. He replaces Mary Lannoye. Krichbaum will also serve as “chief operating officer” and handle
efforts to boost the administration’s economic plan. She also announced that Mark Davidoff, a partner in
Deloitte Financial Advisory Services, will join her staff on an unpaid basis to help achieve her economic
goals.

Revenue Estimating Conference Set For January
A Consensus Revenue Estimating Conference has been scheduled for January 8, 2008. This event
typically serves as the kick-off for budget deliberations for the upcoming fiscal year, and will be followed
at some point by the Governor’s recommendations for Fiscal Year 2007-2008. The Senate Fiscal Agency
has unofficially projected a surplus of $100 million to $120 million in the final quarter of 2007 but warns
that 2008 will most likely see an ongoing shortfall.




                                                     2
           Commission                                                                                      Date:   12/17/07
                                                                                                                     Item K1
           Agenda Report
           C i t y of K a l a m a z o o

TO:           Mayor Hopewell, Vice Mayor McKinney, and City Commissioners

FROM:         Randall S. Schau, Acting City Attorney

DATE:         November 27, 2007

SUBJECT:      Amended City Commission Rules

RECOMMENDATION

It is recommended that the City Commission consider the adoption of amended City
Commission Rules, the only amendments being those that relate to citizen comments.

BACKGROUND

The Administrative Committee has directed the City Attorney’s office to prepare for City
Commission consideration Amended City Commission Rules. The only changes would be
the following deletions:

     1.     In Section 3 (“Agenda For Regular Business Meetings”) reference to “citizen
comments regarding non-agenda items” is deleted (although the later reference to “Citizen
Comment” is retained), and

       2.     In Section 6 the words “or discussion” are deleted from the last sentence,
which would then read “Citizens shall be permitted to speak to all items on the agenda for
action by the City Commission, except those votes setting a public hearing.”

These changes, if adopted, are lawful. While the Open Meetings Act does require an
opportunity for public comment, the proposed rules continue to allow such comment after
“New Business.” In addition, public comment may be received on every action item on the
agenda.

COMMUNITY RESOURCES CONSULTED

None.

FISCAL IMPACT

None.




            Kalamazoo City Attorney’s Office ι 241 W. South Street, Kalamazoo, MI 49007 ι (269) 337-8185
                                                 Fax: (269) 337-8922
Commission Agenda Report – Amended City Commission Rules
Page 2


ALTERNATIVES

The Commission could decline to adopt the amended rules and simply continue with those
rules which are currently in effect.

ATTACHMENTS

City Commission Rules, both a clean copy and a “lined-out” copy.




            Kalamazoo City Manager's Office ι 241 W. South Street, Kalamazoo, MI 49007 ι 616.337.8047
                                                Fax: 616.337.8182
                   CITY OF KALAMAZOO
                 CITY COMMISSION RULES
PURPOSE:

Pursuant to Section 8(a) of the Kalamazoo City Charter, this policy establishes rules for
conducting meetings of the City Commission. The policy also authorizes the City
Attorney to deny or settle certain claims; establishes policies related to boards and
commissions of the City; and establishes protocol in the absence of the Mayor and Vice
Mayor.

SCOPE:

The following rules are applicable to all City Commission meetings. Rule No. 12
establishes policies, which shall be applicable to boards and commissions of the City.

1.     MEETINGS

       The City Commission shall establish and publish a schedule of regular meetings
       that are to be held throughout the calendar year prior to January 1 of each year.
       Regular Business meetings of the City Commission shall be at 7 o’clock p.m.
       each first, third and fifth Monday evening of each month, except as provided for
       in the annual schedule of regular meetings.

2.     CALLING SPECIAL MEETINGS

       Notice of any special meeting called by either the Mayor or by two other
       Commissioners shall be posted by the City Clerk at least 18 hours in advance of
       the holding of the meeting and each Commissioner shall be notified of such
       meeting at least 12 hours before the holding thereof. (Such notice may be given
       by telephone to a number indicated by each Commissioner as the one to be used
       for such purposes.) Such notice shall indicate the purpose or purposes for which
       the special meeting is called. However, the City Commission may meet in
       emergency sessions without posting of notice in the event or threat to the health,
       safety or welfare of the public when 2/3 of the Commissioners decide that delay
       would be detrimental to efforts to lessen or respond to the threat. In the absence of
       the City Clerk, the Commissioner presiding shall designate someone to keep the
       minutes of such emergency session.

3.     AGENDA FOR REGULAR BUSINESS MEETINGS

       The agenda for Regular Business meetings shall be as follows: Call to Order/Roll
       Call, Opening Ceremony, Adoption of Formal Agenda, Communications, Public
       Hearings, Citizen Comments Regarding Non-Agenda Items, Consent Agenda
     (any and all items of business for which a separate roll call vote is not required),
     Regular Agenda (final reading of ordinances or any other matter for which a
     separate roll call vote is required), Reports and Legislation (City Clerk’s Report,
     City Attorney’s Report, City Manager’s Report, Miscellaneous Reports),
     Unfinished Business, Policy Items, New Business, Citizen Comments,
     Miscellaneous Concerns and Comments by Commissioners, Closed Session,
     Adjournment. A Consent Agenda Item may be moved to the Regular Agenda for
     individual discussion and action at the request of any Commissioner, or by
     anyone present at the meeting.

4.   ORDER OF BUSINESS FOR SPECIAL MEETINGS/WORK SESSIONS,
     NEIGHBORHOOD MEETINGS & MEETINGS OF THE COMMITTEE
     OF THE WHOLE

     The order of business for work sessions or special meetings shall be as follows:
     Call to Order/Roll Call, Communications, Study Items and/or Discussion Topics,
     Citizen Comments, Miscellaneous Comments and Concerns by Commissioners,
     Adjournment.

     The order of business for Neighborhood Meetings shall be Call to Order/Roll
     Call, Communications, Neighborhood Presentations, Citizen Comments,
     Miscellaneous Comments and Concerns by Commissioners, Adjournment.

     The order of business for Committee of the Whole meetings shall be Call to
     Order/Roll Call, Discussion of Items on Upcoming City Commission Agendas,
     Community Issues, Citizen Comments, Adjournment. No votes shall be taken, nor
     shall any other type of decision be made at a meeting of the Committee of the
     Whole. This rule shall not be construed to prohibit the addition, removal, or
     relocation of items on the upcoming City Commission meeting agenda.

5.   PROCESS FOR MAKING MOTIONS

     a.     All motions shall be reduced to writing by the Clerk and shall be re-stated
            by the maker, if necessary, for that purpose.

     b.     No motion shall be discussed until it has been seconded and restated by
            the chair.

6.   CITIZEN COMMENTS

     No Commissioner or other person shall speak until duly recognized by the chair,
     and he or she shall immediately cease speaking if ruled out of order. Speakers
     other than Commissioners, after being recognized, shall commence by identifying
     themselves and indicating whether they reside in the City of Kalamazoo. Citizens’
     comments shall be limited to four minutes for each speaker unless the time is
     extended by the chair or by vote of the Commission. The total time set for
     Comments from Citizens on Non-Agenda Items may be limited to 30 minutes by
     a simple majority vote. Citizens shall be permitted to speak to all items on the
     agenda for action or discussion by the City Commission, except those votes
     setting a public hearing.

7.   CITIZEN PROPOSALS

     All written proposals by residents of the City of Kalamazoo for commission
     action on matters not currently being considered shall be filed with the City Clerk,
     and shall be included in a City Clerk’s agenda report within 21 days of receipt.

8.   PARLIAMENTARY PROCEDURE

     a.     When a question is under debate, no motion shall be in order except the
            following, which shall have precedence in the order in which they are
            arranged from first to last; to adjourn, to adjourn debate, for the previous
            question, to lay on the table, to postpone indefinitely or to a time certain,
            to commit or refer, or to substitute or amend. A substitute motion adopted
            shall be deemed to dispose of the main motion. Motions to adjourn, for the
            previous question, or to lay on the table shall be decided without debate.
            Citizen comments shall be allowed only on motions to postpone
            indefinitely.

     b.     A motion to call the question must be seconded, is not debatable, and
            requires a 2/3 vote (5) to pass. If passed, its effect shall be put to an end to
            all debate and require an immediate vote upon the question under debate.

     c.     Any member of the Commission may call for a roll call vote upon all
            questions which will admit thereof. A roll call shall be taken on all
            resolutions and appropriations of funds. A separate roll call vote shall be
            required to approve the City’s annual budget.

     d.     The order of voting shall be rotated at each meeting so that no
            Commissioner votes first on every roll call.

     e.     A motion to reconsider may be made at any time during the same meeting
            or at the first meeting held thereafter. The motion may be made only by a
            member who either voted with the prevailing side or did not vote. It may
            be seconded by any member. No questions shall be reconsidered more
            than once, nor shall a vote to reconsider be reconsidered.

9.   ADOPTION OF ORDINANCES

     It shall be the policy of the City Commission that, except for emergency measures
     adopted pursuant to Charter Section 13, all ordinances presented for first reading
      shall be held for final consideration and adoption by a separate roll call vote until
      the next Regular Business meeting.

10.   LIQUOR LICENSES

      It shall be the policy of this Commission to defer for not more than two weeks the
      consideration of any application for a new liquor license or change of location.

11.   CLAIMS AND LAWSUITS AGAINST THE CITY

      When any claim or lawsuit, except those claims involving worker’s
      compensation, against the City has been made and/or filed, the City Attorney is
      hereby authorized to deny said claim or to contest said lawsuit or to pay or settle
      any such claim or lawsuit in an amount not to exceed $10,000 per claim, and to
      draw upon the applicable fund for such purpose without formal action by the City
      Commission.

12.   ADVISORY BOARDS AND COMMISSIONS

      Unless otherwise provided by statute, ordinance or resolution, or other special
      considerations apply, the following policies shall be applicable to the volunteer
      boards and commissions of the City:

      a.     All terms of office for members of advisory boards and commissions will
             commence on April 1 and expire on March 31, and shall be for the term of
             years prescribed by the by laws of the particular advisory board or
             commission. All members of boards and commissions whose current
             terms expire on a date other than March 31 shall be extended until the
             March 31 following the current expiration date of their terms. New
             members shall officially take office at the next regular or special meeting
             of the board or commission.

      b.     Appointments to all advisory boards and commissions shall be made by
             the City Commission. No member shall serve past the expiration date or
             his or her term unless the City Commission has, by a majority vote taken
             prior to the expiration of that member’s term, approved that extended
             service for a specified length of time. In making appointment
             recommendations to the City Commission, boards and commissions
             should consider the following factors, and should document them on the
             nomination report form when presenting its recommendation:

                   i.        Introducing new members to the advisory board process
                   ii.       Insuring that appointments represent a cross-section as to
                             gender, race, neighborhood, etc. of the community.
                   iii.      The experience and interest of applicants in the subject
                             matter that would come before the advisory board.
          iv.       The desire to have several points of view represented.

c.   The applicant must file an application with the City Clerk prior to his or
     her appointment to provide adequate time for the City Commission and
     advisory board to review the application.

d.   The City Commission shall normally make appointments to advisory
     boards and commissions on the last, Regular Business Meeting of each
     month.

e.   No person shall be appointed to the same board or commission after
     having served for two full consecutive terms, but this rule shall not apply
     after the expiration of one-term (or the equivalent amount of time) of non-
     membership on that board or commission.

f.   A membership shall be deemed vacated if the member is absent from more
     than 50% of the regular meetings of the board or commission within any
     six-month period. The City Commission shall fill the vacancy by
     appointment, as promptly as possible.

g.   No later than two weeks after any meeting, the chair or secretary shall file
     with the City Clerk a draft of the minutes of that meeting, and shall
     promptly file the approved minutes with the City Clerk.

h.   Each board or commission shall select its own methods of procedure and
     shall establish and publish a schedule of regular meetings that are to be
     held throughout the calendar year prior to January 1 of each year. Prior to
     March 1 of each year, every board and commission shall conduct an
     annual meeting to consider candidates for membership, shall review and
     approve the annual report for the previous year, and shall file the annual
     report once approved with the City Clerk.

i.   Special purpose committees established by the City Commission will be
     dissolved not later than the expiration of that Commission’s term of office.

j.   All boards and commissions shall operate under the Open Meetings Act,
     and citizens shall be afforded an opportunity to speak on any matter before
     the board or commission. All board and commission meeting agendas
     shall include a time for citizen comment on non-agenda items.

k.   Unless otherwise provided by statute, ordinance, or by the by-laws of a
     particular board or commission, or unless waived by a majority vote of the
     City Commission, no person shall serve on more than one board or
     commission at a time. All members of boards and commissions shall be
     residents of the City of Kalamazoo unless otherwise provided by statute,
     ordinance, or by the by-laws of a particular board or commission, in which
            case a majority of the members of such boards or commissions shall be
            City residents. The Economic Development Corporation of the City of
            Kalamazoo and the Brownfield Redevelopment Authority may have non-
            resident members who are employed by, or are affiliated with, business
            organizations, corporations or entities which have a significant economic
            impact on the City of Kalamazoo or are located within the City of
            Kalamazoo, provided that a majority of the members of the Economic
            Development Corporation Board of Directors must be City of Kalamazoo
            residents.

      l.    Unless otherwise required by ordinance or statute, Commissioners who
            serve as liaisons to City Commission advisory boards and commissions
            shall not have voting privileges.

13.   APPOINTMENT OF MAYOR PRO TEM

      In the absence of the mayor and vice mayor at the same City Commission
      meeting, the commissioner receiving the next greatest number of votes in the
      most recent General Election shall chair the meeting and be considered and
      addressed as mayor pro-tem of the city. This rule shall also govern any
      ceremonial or formal function on behalf of the city where the mayor and vice
      mayor are both absent.

14.   APPOINTMENT OF CITY COMMISSIONERS TO COMMITTEES AND
      SUBCOMMITTEES

      a.    The following standing committees of the City Commission are hereby
            established: the Administrative Committee; the Legislative Committee;
            and the Audit Committee. Within six weeks of the beginning of its term of
            office the City Commission shall approve the appointment of its members
            to standing committees.

      b.    The Administrative Committee shall consist of the Mayor, Vice Mayor,
            and the City Commissioner who received the third highest number of
            votes in the municipal election.

      c.    After the initial standing committee assignments are made, any changes in
            their membership must be approved by the City Commission.

      d.    The mayor, with the concurrence of a majority of the City Commission,
            may establish, make appointments to, and dissolve ad-hoc committees and
            sub-committees as necessary. Ad-hoc committees and subcommittees also
            may be established, and dissolved by a majority vote of the City
            Commission.
       e.       All ad-hoc committees shall dissolve automatically upon the expiration of
                the City Commission’s term of office.

15.    DISCLOSURE OF BOARD MEMBERSHIPS

        Commissioners shall disclose their membership on all boards of which they are
        voting members. This requirement shall apply to membership on the boards of
        incorporated bodies, including the boards of non-profit entities, as well as to
        voting membership on boards created by a governmental body or agency other
        than the City of Kalamazoo. Such disclosure shall be in writing, and shall be filed
        annually in January with the City Clerk.

16.     WAIVER OF CITY COMMISSION RULES

        Any City Commission rule may be waived by a simple majority vote of the City
        Commission.

17.     AMENDING CITY COMMISSION RULES

        Any City Commission rule may be amended by a majority vote of the City
        Commission.

18.     APPLICABILITY OF RULES

        These rules shall supersede any and all rules previously adopted by this
        Commission.

19.     ROBERTS RULES OF ORDER

        On all matters relative to the conduct of the Commission and the transaction of its
        business not covered by these rules, or the ordinances or Charter of the City, and
        the Commission shall be governed by Roberts Rules of Order.




11/27/07 ord-cc-Rules-07
                   CITY OF KALAMAZOO
                 CITY COMMISSION RULES
PURPOSE:

Pursuant to Section 8(a) of the Kalamazoo City Charter, this policy establishes rules for
conducting meetings of the City Commission. The policy also authorizes the City
Attorney to deny or settle certain claims; establishes policies related to boards and
commissions of the City; and establishes protocol in the absence of the Mayor and Vice
Mayor.

SCOPE:

The following rules are applicable to all City Commission meetings. Rule No. 12
establishes policies, which shall be applicable to boards and commissions of the City.

1.     MEETINGS

       The City Commission shall establish and publish a schedule of regular meetings
       that are to be held throughout the calendar year prior to January 1 of each year.
       Regular Business meetings of the City Commission shall be at 7 o’clock p.m.
       each first, third and fifth Monday evening of each month, except as provided for
       in the annual schedule of regular meetings.

2.     CALLING SPECIAL MEETINGS

       Notice of any special meeting called by either the Mayor or by two other
       Commissioners shall be posted by the City Clerk at least 18 hours in advance of
       the holding of the meeting and each Commissioner shall be notified of such
       meeting at least 12 hours before the holding thereof. (Such notice may be given
       by telephone to a number indicated by each Commissioner as the one to be used
       for such purposes.) Such notice shall indicate the purpose or purposes for which
       the special meeting is called. However, the City Commission may meet in
       emergency sessions without posting of notice in the event or threat to the health,
       safety or welfare of the public when 2/3 of the Commissioners decide that delay
       would be detrimental to efforts to lessen or respond to the threat. In the absence of
       the City Clerk, the Commissioner presiding shall designate someone to keep the
       minutes of such emergency session.

3.     AGENDA FOR REGULAR BUSINESS MEETINGS

       The agenda for Regular Business meetings shall be as follows: Call to Order/Roll
       Call, Opening Ceremony, Adoption of Formal Agenda, Communications, Public
       Hearings, Consent Agenda (any and all items of business for which a separate roll
     call vote is not required), Regular Agenda (final reading of ordinances or any
     other matter for which a separate roll call vote is required), Reports and
     Legislation (City Clerk’s Report, City Attorney’s Report, City Manager’s Report,
     Miscellaneous Reports), Unfinished Business, Policy Items, New Business,
     Citizen Comments, Miscellaneous Concerns and Comments by Commissioners,
     Closed Session, Adjournment. A Consent Agenda Item may be moved to the
     Regular Agenda for individual discussion and action at the request of any
     Commissioner, or by anyone present at the meeting.

4.   ORDER OF BUSINESS FOR SPECIAL MEETINGS/WORK SESSIONS,
     NEIGHBORHOOD MEETINGS & MEETINGS OF THE COMMITTEE
     OF THE WHOLE

     The order of business for work sessions or special meetings shall be as follows:
     Call to Order/Roll Call, Communications, Study Items and/or Discussion Topics,
     Citizen Comments, Miscellaneous Comments and Concerns by Commissioners,
     Adjournment.

     The order of business for Neighborhood Meetings shall be Call to Order/Roll
     Call, Communications, Neighborhood Presentations, Citizen Comments,
     Miscellaneous Comments and Concerns by Commissioners, Adjournment.

     The order of business for Committee of the Whole meetings shall be Call to
     Order/Roll Call, Discussion of Items on Upcoming City Commission Agendas,
     Community Issues, Citizen Comments, Adjournment. No votes shall be taken, nor
     shall any other type of decision be made at a meeting of the Committee of the
     Whole. This rule shall not be construed to prohibit the addition, removal, or
     relocation of items on the upcoming City Commission meeting agenda.

5.   PROCESS FOR MAKING MOTIONS

     a.     All motions shall be reduced to writing by the Clerk and shall be re-stated
            by the maker, if necessary, for that purpose.

     b.     No motion shall be discussed until it has been seconded and restated by
            the chair.

6.   CITIZEN COMMENTS

     No Commissioner or other person shall speak until duly recognized by the chair,
     and he or she shall immediately cease speaking if ruled out of order. Speakers
     other than Commissioners, after being recognized, shall commence by identifying
     themselves and indicating whether they reside in the City of Kalamazoo. Citizens’
     comments shall be limited to four minutes for each speaker unless the time is
     extended by the chair or by vote of the Commission. The total time set for
     Comments from Citizens on Non-Agenda Items may be limited to 30 minutes by
     a simple majority vote. Citizens shall be permitted to speak to all items on the
     agenda for action by the City Commission, except those votes setting a public
     hearing.

7.   CITIZEN PROPOSALS

     All written proposals by residents of the City of Kalamazoo for commission
     action on matters not currently being considered shall be filed with the City Clerk,
     and shall be included in a City Clerk’s agenda report within 21 days of receipt.

8.   PARLIAMENTARY PROCEDURE

     a.     When a question is under debate, no motion shall be in order except the
            following, which shall have precedence in the order in which they are
            arranged from first to last; to adjourn, to adjourn debate, for the previous
            question, to lay on the table, to postpone indefinitely or to a time certain,
            to commit or refer, or to substitute or amend. A substitute motion adopted
            shall be deemed to dispose of the main motion. Motions to adjourn, for the
            previous question, or to lay on the table shall be decided without debate.
            Citizen comments shall be allowed only on motions to postpone
            indefinitely.

     b.     A motion to call the question must be seconded, is not debatable, and
            requires a 2/3 vote (5) to pass. If passed, its effect shall be put to an end to
            all debate and require an immediate vote upon the question under debate.

     c.     Any member of the Commission may call for a roll call vote upon all
            questions which will admit thereof. A roll call shall be taken on all
            resolutions and appropriations of funds. A separate roll call vote shall be
            required to approve the City’s annual budget.

     d.     The order of voting shall be rotated at each meeting so that no
            Commissioner votes first on every roll call.

     e.     A motion to reconsider may be made at any time during the same meeting
            or at the first meeting held thereafter. The motion may be made only by a
            member who either voted with the prevailing side or did not vote. It may
            be seconded by any member. No questions shall be reconsidered more
            than once, nor shall a vote to reconsider be reconsidered.

9.   ADOPTION OF ORDINANCES

     It shall be the policy of the City Commission that, except for emergency measures
     adopted pursuant to Charter Section 13, all ordinances presented for first reading
     shall be held for final consideration and adoption by a separate roll call vote until
     the next Regular Business meeting.
10.   LIQUOR LICENSES

      It shall be the policy of this Commission to defer for not more than two weeks the
      consideration of any application for a new liquor license or change of location.

11.   CLAIMS AND LAWSUITS AGAINST THE CITY

      When any claim or lawsuit, except those claims involving worker’s
      compensation, against the City has been made and/or filed, the City Attorney is
      hereby authorized to deny said claim or to contest said lawsuit or to pay or settle
      any such claim or lawsuit in an amount not to exceed $10,000 per claim, and to
      draw upon the applicable fund for such purpose without formal action by the City
      Commission.

12.   ADVISORY BOARDS AND COMMISSIONS

      Unless otherwise provided by statute, ordinance or resolution, or other special
      considerations apply, the following policies shall be applicable to the volunteer
      boards and commissions of the City:

      a.     All terms of office for members of advisory boards and commissions will
             commence on April 1 and expire on March 31, and shall be for the term of
             years prescribed by the by laws of the particular advisory board or
             commission. All members of boards and commissions whose current
             terms expire on a date other than March 31 shall be extended until the
             March 31 following the current expiration date of their terms. New
             members shall officially take office at the next regular or special meeting
             of the board or commission.

      b.     Appointments to all advisory boards and commissions shall be made by
             the City Commission. No member shall serve past the expiration date or
             his or her term unless the City Commission has, by a majority vote taken
             prior to the expiration of that member’s term, approved that extended
             service for a specified length of time. In making appointment
             recommendations to the City Commission, boards and commissions
             should consider the following factors, and should document them on the
             nomination report form when presenting its recommendation:

                   i.       Introducing new members to the advisory board process
                   ii.      Insuring that appointments represent a cross-section as to
                            gender, race, neighborhood, etc. of the community.
                   iii.     The experience and interest of applicants in the subject
                            matter that would come before the advisory board.
                   iv.      The desire to have several points of view represented.
c.   The applicant must file an application with the City Clerk prior to his or
     her appointment to provide adequate time for the City Commission and
     advisory board to review the application.

d.   The City Commission shall normally make appointments to advisory
     boards and commissions on the last, Regular Business Meeting of each
     month.

e.   No person shall be appointed to the same board or commission after
     having served for two full consecutive terms, but this rule shall not apply
     after the expiration of one-term (or the equivalent amount of time) of non-
     membership on that board or commission.

f.   A membership shall be deemed vacated if the member is absent from more
     than 50% of the regular meetings of the board or commission within any
     six-month period. The City Commission shall fill the vacancy by
     appointment, as promptly as possible.

g.   No later than two weeks after any meeting, the chair or secretary shall file
     with the City Clerk a draft of the minutes of that meeting, and shall
     promptly file the approved minutes with the City Clerk.

h.   Each board or commission shall select its own methods of procedure and
     shall establish and publish a schedule of regular meetings that are to be
     held throughout the calendar year prior to January 1 of each year. Prior to
     March 1 of each year, every board and commission shall conduct an
     annual meeting to consider candidates for membership, shall review and
     approve the annual report for the previous year, and shall file the annual
     report once approved with the City Clerk.

i.   Special purpose committees established by the City Commission will be
     dissolved not later than the expiration of that Commission’s term of office.

j.   All boards and commissions shall operate under the Open Meetings Act,
     and citizens shall be afforded an opportunity to speak on any matter before
     the board or commission. All board and commission meeting agendas
     shall include a time for citizen comment on non-agenda items.

k.   Unless otherwise provided by statute, ordinance, or by the by-laws of a
     particular board or commission, or unless waived by a majority vote of the
     City Commission, no person shall serve on more than one board or
     commission at a time. All members of boards and commissions shall be
     residents of the City of Kalamazoo unless otherwise provided by statute,
     ordinance, or by the by-laws of a particular board or commission, in which
     case a majority of the members of such boards or commissions shall be
     City residents. The Economic Development Corporation of the City of
            Kalamazoo and the Brownfield Redevelopment Authority may have non-
            resident members who are employed by, or are affiliated with, business
            organizations, corporations or entities which have a significant economic
            impact on the City of Kalamazoo or are located within the City of
            Kalamazoo, provided that a majority of the members of the Economic
            Development Corporation Board of Directors must be City of Kalamazoo
            residents.

      l.    Unless otherwise required by ordinance or statute, Commissioners who
            serve as liaisons to City Commission advisory boards and commissions
            shall not have voting privileges.

13.   APPOINTMENT OF MAYOR PRO TEM

      In the absence of the mayor and vice mayor at the same City Commission
      meeting, the commissioner receiving the next greatest number of votes in the
      most recent General Election shall chair the meeting and be considered and
      addressed as mayor pro-tem of the city. This rule shall also govern any
      ceremonial or formal function on behalf of the city where the mayor and vice
      mayor are both absent.

14.   APPOINTMENT OF CITY COMMISSIONERS TO COMMITTEES AND
      SUBCOMMITTEES

      a.    The following standing committees of the City Commission are hereby
            established: the Administrative Committee; the Legislative Committee;
            and the Audit Committee. Within six weeks of the beginning of its term of
            office the City Commission shall approve the appointment of its members
            to standing committees.

      b.    The Administrative Committee shall consist of the Mayor, Vice Mayor,
            and the City Commissioner who received the third highest number of
            votes in the municipal election.

      c.    After the initial standing committee assignments are made, any changes in
            their membership must be approved by the City Commission.

      d.    The mayor, with the concurrence of a majority of the City Commission,
            may establish, make appointments to, and dissolve ad-hoc committees and
            sub-committees as necessary. Ad-hoc committees and subcommittees also
            may be established, and dissolved by a majority vote of the City
            Commission.

      e.    All ad-hoc committees shall dissolve automatically upon the expiration of
            the City Commission’s term of office.
15.    DISCLOSURE OF BOARD MEMBERSHIPS

        Commissioners shall disclose their membership on all boards of which they are
        voting members. This requirement shall apply to membership on the boards of
        incorporated bodies, including the boards of non-profit entities, as well as to
        voting membership on boards created by a governmental body or agency other
        than the City of Kalamazoo. Such disclosure shall be in writing, and shall be filed
        annually in January with the City Clerk.

16.     WAIVER OF CITY COMMISSION RULES

        Any City Commission rule may be waived by a simple majority vote of the City
        Commission.

17.     AMENDING CITY COMMISSION RULES

        Any City Commission rule may be amended by a majority vote of the City
        Commission.

18.     APPLICABILITY OF RULES

        These rules shall supersede any and all rules previously adopted by this
        Commission.

19.     ROBERTS RULES OF ORDER

        On all matters relative to the conduct of the Commission and the transaction of its
        business not covered by these rules, or the ordinances or Charter of the City, and
        the Commission shall be governed by Roberts Rules of Order.




11/27/07 ord-cc-Rules-07

								
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