VILLAGE OF CHESANINGREGULAR COUNCIL MEETING AGENDA

September 1, 2020VIRTUAL MEETING: SEE ZOOM MEETING INVITATION

1. Call to Order: 7:30 p.m.

2. Pledge of Allegiance

3. Roll Call

4. Approval of the Agenda

5. Public Statement I: Limited to 1 minute

Designated for statements concerning current agenda items

6. Consent Agenda

The purpose of the Consent Agenda is to expedite business by grouping non-controversial items togetherto be dealt with by one Board motion (roll-call vote) zt’ithout discussion. Any person, whether BoardMember, staffor public may ask that any item be removedfrom the Consent Agenda to be placedelsewhere on the regular agenda for discussion. All such requests will be granted.

A. Receive and File:a. (None)

B. Approval of the Village Council Meeting Minutesa. Regular Meeting Minutes of August 18, 2020

7. Accounts Payable:a. AP w/o Rootnote: $335,163.31b. Rootnote Subtotal: $3,700.00c. September 1st AP Total: $338,863.31

8. Unfinished Business (None)

9. New Business

A. Items for Introduction/Discussion: (None)

B. Items for Action:a. Resolution 2020-03: Abandoning A Section of Jackson Streetb. Memorandum of Understanding: Village of Chesaning & Chesaning Township

Regarding Tax Appeal Expensesc. Street Improvement Committee Recommendation for 2021 Bond Project:

Infrastructure Committee Membersd. Laura Greenfelder Request for Installation of a Well at 710 W. Broad Street

10. Public Statement II: Limited to 3 minutes, on any topic

Questions requiring short, timely answers may be posed to the Board, staying within the 3—minutelimit. This shall not be interpreted as a means to initiate dialog or debate.

11. Committee Reports

a. Infrastructure (Lamer, Cicalo, Powell)b. Finance & Administration (Hoover, Wenzel, Chiudil)c. DDA (Sedlar, Feltman)d. Chamber of Commerce Board (Hoover, Feltman)e. Plamiing Commission (Hoover, Chludil)f. Airport (Wenzel, Hoover)

g. Fire Board (Lamer, Cicalo)h. Task Force (Sedlar, Powell)

12. Village Staff Reports

a. Village Administrator

13. Adjournment

In accordance with Public Act 267 (Open Meetings Act) individuals with disabilities requiring special assistance that are planningto attend the meeting should contact the Office of the Village Clerk for accommodations. This request must be made two (2)business days in advance of the meeting.

The next regular meeting of the Chesaning Village Council will be held Tuesday,September 15, 2020 in the Village Hall Council Chambers at 7:30 p.m.

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VILLAGE OF CHESANINGREGULAR COUNCIL MEETING MINUTES

August 18, 2020VIRTUAL MEETING

1. Call to Order: 7:30 p.m.

2. Pledge of Allegiance

3. RoIl CallPresent — Chludil, Cicalo, Lamer, Powell, WenzelAbsent — SedlartHoover arrived at the meeting at 7:35 pm.

4. Approval of the AgendaMotion by Powell — supported by Cicalo to approve. Roll call vote:Aye: Chludil, Cicalo, Lamer, Powell, WenzelNay: NoneMotion carried.

5. Public Statement I:Cynthia Mayhew —802 Sunflower — Ms. Mayhew requested that letters that the Council received regarding theupcoming meeting be read publicly. Council agreed that this would be added to the agenda at the currentmeeting.

6. Consent AgendaA. Receive and File:

a. Planning Commission Meeting Letters: Citizen Concerns with Virtual Meeting FormatB. Approval of the Village Council Meeting Minutes

a. Regular Meeting Minutes of August 4, 2020

C. Accounts Payable: $77,618.65Motion by Hoover, supported by Chludil to approve. Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

7. Unfinished Business (None)

8. New Business

A. Items for Introduction/Discussion:

a. Public Hearing: Draft Ordinance 2020-04 Outlawing the Use of Engine Breaks on Vehicles Within theVillage LimitsMotion by Cicalo, supported by Hoover to enter public meeting @ 7:38 pmRoll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.Administrator Feltman received multiple emails in support of this being in place.Councilman Wenzel asked how do we determine those violating the ordinance. It was explained thatthe violating truck would need to be witnessed and heard by the Police. Chief Short commented thatthe local Police department would not be able to enforce the ordinance on State highways as theState will not allow it. She mentioned that a better ordinance may be a nuisance ordinance, but tobe able to enforce it the department would need special decibel equipment that is not inexpensive.Chief Short will investigate options for the Council and report back at a future meeting.Motion by Hoover, supported by Chiudil to exit the public hearing @ 7:48 pm.Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

b. Public Hearing: Resolution to Close a Portion of Jackson StreetMotion by Wenzel, supported by Powell to enter the public meeting @ 7:48This section of Jackson will be closed at the request of High Life Farms who bought the property onthis portion of the street. High life farms will be responsible for water and sewer line maintenance ifthe closer happens.Motion by Hoover, supported by Powell to exit the public meeting @ 7:52Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

c. Police Department Request to Amend the Side-By-Side Vehicle Ordinance: Chief ShortChief Short stated that the reason for the amendment to the current ordinance is to educate thepublic on the rules of operating golf cart and ORV’s in the Village limits. The police department haswitnessed people riding where not supposed to, having too many passengers on board, standing upon moving vehicles, driving in parts of the park that are off limits, as well as other violations. Thedepartments idea is to have those with these types of vehicles register them with the Village. Thepolice department would inspect the vehicle and issue a sticker that would need to be on thevehicle to legally operate in the Village. The thought is that the cost would be $5 which would coverthe cost of the registration. Councilman Hoover mentioned that ignorance of the law is no excuse.Chief Short stated that the idea behind the registrations is that if the public witnesses a violation,they would be able to see the registration number so that the police can address the issue.Council to consider the issue and address at a future meeting.

B. Items for Action:a. Proposed Contract for Interim Village Administrator Services

Finance and Administration met and agreed that the proposed contract was acceptable and fair. Theseverability clauses are fair and equitable.Motion by Wenzel supported by Hoover to approve. Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

b. Proposal to Establish a 4-Way Stop at Mason and Front Streets: Councilwoman PowellCouncilwoman Powell has received complaints of the rate of speed on Front St. As more residentsuse the park, she is of the opinion that it is a matter of time before some gets hurt. By placing a 4way stop it should lower the speeds of those on Front St. Council agreed this has been an issue for along time, and that other 4 way stops that have been added in the past have helped.

Motion by Powell, supported by Chludil to establish a 4-Way Stop at Mason and Front Streets.Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

c. E. Liberty/Center Street Project Pay Application #2: $198,386.68Motion by Hoover, supported by Powell to approve. Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

d. Reading of Letters to the Council regarding upcoming Planning Commission Meeting.President Pro Tem Lamer read one of the letters received by the Council. The letter was from aresident of Sunnyside subdivision asking for the virtual meeting scheduled for the planningcommission be held in a public space where social distancing can be observed. As there is marijuanafacility issues on the agenda, and having residents who are not comfortable with virtual meetings,the author of the letter felt it important to have the public meeting so that all residents may havetheir opinions heard.Administrator Feltman explained that by our own ordinance all applications to the PlanningCommission must be heard within 85 days of submittal. Two of the agenda items could be pushedout until the end of October, but the one request is already past the 85 days. Much discussionfollowed and the Council agreed that the meeting should take place in public. The main pavilion atShowboat Park will be used. Administrator Feltman will coordinate with the Chairman of thePlanning Commission to coordinate a date and time. Public notifications will be made to ensure thatthe public is aware of the new date and time.Motion by Wenzel, supported by Hoover to reschedule to an outdoor format. Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

9. Public Statement II:

Rod Toma —816 Sunflower — Asked the Council if there would ever be discussion on limiting number of growand processing facilities in the Village. Councilwoman Powell commented that the reason it has not been limitedis that there is limited property available by zoning in the Village limits.

Bruce Dankert —720 Nietling — Thanked the Council for moving the Planning Commission meeting from virtual toin person. Mr. Dankert agreed that the J brake issue would be better if a nuisance ordinance as many cars andmotorcycles are loud also. Regarding the ORV ordinance he questioned how big the registration sticker wouldbe. While he agreed that something needed to be done, he does not feel that the sticker would be large enoughto make a difference as it will not be visible.

10. Committee Reports

a. Infrastructure (Lamer, Cicalo, Powell)The blacktop on Uberty and Center is almost completed. The project is on schedule to be completed firstweek of September.

b. Finance & Administration (Hoover, Wenzel, Chludil)They met to discuss the contract with the Village Administrator mentioned earlier. They also discussedthe tax abatement issue with Comfort Care.

c. DDA (Sedlar, Feltman)Paid bills of $3697.42. Moved to every other month meeting schedule.

d. Chamber of Commerce Board (Hoover, Feltman)The fireworks have been cancelled until 2021. The poker room fundraising is postponed until 2021. Theyare not sure about the annual Chamber dinner and are looking into their options.

e. Planning Commission (Hoover, Chludil)None

f. Airport (Wenzel, Hoover)Sports plane group will still hold the fly in for September. The group wanted the Council to know thatthe runway to the airport has been great this year and the mole activity has decreased significantly.

g. Fire Board (Lamer, Cicalo)S runs — 87 to date

h. Task Force (Sedlar, Powell)None

ii. village Staff Reportsi. Police Department Report: Chief Short

The Neighborhood Watch Program is back in effect. The department have 13 to 15 residents alreadyinvolved. The first meeting will be at the end of September. The department is working with the State toget new neighborhood watch signs.

There has been an increase in vandalism. Chief Short is working with the Village’s IT to place camera’s inlocations like the park and downtown area. This will give the department the ability to record and havelive views.

The department has completed Taser Training. This gives the department the authority to be Taserinstructors when new officers are onboarded. They are also looking at Firearm instructors. This will helpto save the Village money as they will not have to contract out for these services.

There is now a drop box outside of department for gun registration forms. Chief Short is working withState to do gun registrations and sex offender registries by the end of the year.

j. Village AdministratorThere will be a Road Committee meeting regarding the recommendations for the streets bond nextyear. As of right now, the Village has $1.25M available for next year’s construction season.

12. Adjournment

Motion by Hoover, supported by Wenzel to adjourn @ 8:52 pm.Roll call vote:Aye: Chludil, Cicalo, Hoover, Lamer, Powell, WenzelNay: NoneMotion carried.

Minutes respectfully submitted by Village Clerk Trent Vondrasek

VILLAGE OF CHESANINGVENDOR APPROVAL LISTING

COUNCIL MEETING SEPTEMBER SEPTEMBER 1,2020

VENDORRefit NAME DESCRIPTION AMOUNT

20200699 Alerus Financial employer portion of admin defined contrib $484.6020200700 Beaver Research Company disinfectant office&parks, wasp killer-parks $794.1820200701 BLUE CROSS BLUE SHIELD OF MICH RETIREE HEALTHCARE $1,648.7420200702 BLUE CROSS BLUE SHIELD OF MICH HEALTH INSURANCE ACTIVE EMPLOYEES $17,572.6620200703 CARRIE TRZIL retiree spouse insurance premium $743.0020200704 CENTURYLINK landline phones $679.9820200705 Champagne & Marx Excavating Inc Cat. B Liberty and Center $198,386.6820200706 Clarity Benefit Solutions healthcare reimbursement active employees $13.8520200707 Clarity Benefit Solutions healthcare reimbursement retirees $357.6920200708 Consultants on Call, LLC server, workstations, backups Sept 2020 $450.0020200709 Consultants on Call, LLC network support and consulting Sept 2020 $1,700.00

equip: workstations, security camera server, desktop phone,20200710 Consultants on Call, LLC display w/sound DPW $4,633.9520200711 CONSUMERS ENERGY utilities $7,785.2820200712 DALTON ELEVATOR cyclinder rental $35.0020200713 DORNBOS SIGNS & SAFETY INC. “4 way stop’ signs $44.6320200714 ELHORN ENGINEERING CO. el-chlor, aquadene $1,699.0020200715 ETNA SUPPLY COMPANY inner lid $7.2020200716 FREYS SERVICE CENTER 2018 Tahoe - oil change, battery $246.9320200717 GRAINGER lab supplies $213.6020200718 Haviland Products Company chlorine, sulfur dioxide $560.0120200719 KENNEDY IND. INC. onsite service call $697.5020200720 MARLENE SCHULTZ insurance supplement $150.0020200721 McNalley Office Service, Inc. file cabinet $280.0020200722 MEL ERVIN FORD INC 2010 F350 A/C $325.0020200723 MERS additional pay towards unfunded $2,200.0020200724 MERS retirement $21,793.0020200725 MICHIGAN PIPE & VALVE meters - Zenner $1,120.0020200726 NCL OF WISCONSIN INC. lab supplies $186.8020200727 0 H M GIS service, ACO support, Cat B grant project, 2021 street program $25,030.0020200728 OWOSSO BOLT AND BRASS CO curb stop $145.8720200729 PAYROLLACCOUNT wages, fica, suta $41,439.8120200730 Qualification Targets Inc targets - training - LED $100.0520200731 QUILL CORP. disinfectant, ink cartridges, thumb tacks $200.7520200732 SELF SERVE LUMBER supplies, treated lumber $33.9420200733 STANDARD INSURANCE life & disability insurance $377.2220200734 STATE OF MICHIGAN water testing $1,065.0020200735 Tn-Lakes Petroleum diesel fuel, gas $905.5620200736 Troy Feltman cell phone reimbursement $35.0020200737 ULINE roll towel parks $155.0120200738 USA BLUEBOOK algae brush, telescoping rachet wrench, shut off tool $865.82

$335,163.31planting near boat launch, river trail sign, accident repair, rain

20200739 Rootnote gardens $3,700.00$338,863.31

—-TOTALS BY FUND—-

101- General Fund $61,232.49202- Major Street Fund $1,606.54203 - Local Street Fund $220,355.91403 - CAPITAL PROJECTS $3,105.00590- Wastewater Treatment Plant $29,339.01591- Water Fund $13,729.63661- Equipment Pool $9,494.73

$338,863.31

TOTALS BY DEPT/ACTIVITY

000.000 - $41,439.81170.000 - General Government $6,838.98172.000 - Administrator $1,286.45173.000 - Former Administrator $150.00228.000 - INFORMATION TECHNOLOGY $6,783.95265.000 - Buildings & Grounds $3,200.00301.000 - Police Department $2,571.54302.000 - Former Police $2,102.07441.000 - Public Works $8,031.74443.000 - Former DPW Employees $2,749.43456.000 - TRAFFIC SERVICES $92.82463.000 - Routine Maint $219,611.68536.000 - Wells & elevated storage tank $5,953.99537.000 - wastewater treatment $18,791.24538.000 - collect/distribution system $5,266.64561.000 - State Trunkline Routine Maint $100.0075 1.000 - Parks $1,554.38820.000 - AIRPORT $131.01895.000 - FLEET MAINT $9,102.58901.000 - Capital outlay $3,105.00

$338,863.31

RESOLUTION DECLARING THE VILLAGE’SINTENTION TO ABANDON A SECTION OF JACKSON STREET

VILLAGE OF CHESANINGRESOLUTION NO: 2020-03

At a Regular Meeting of the Village Council of the Village of Chesaning, on June 16, 2020 called toorder by President Joseph F. Sedlar, Jr., there were present:

PRESENT:

ABSENT:

High Life Farms, a Michigan limited liability company with operations in the Village ofChesaning, provides needed employment opportunities to Village residents and tax revenue to theVillage; and

High Life Farms seeks to expand its operations and has requested the Village abandon a sectionof Jackson Street, as identified on the attached Exhibit 1, which is located in the Clark’s Addition plat;and

High Life Farms owns parcels A, B and C, as identified on Exhibit 1, and would be the onlyproperty owner impacted by abandonment of the section of Jackson Street; and

Upon the Village’s abandonment of the section of Jackson Street, the property would betransferred as follows: ¼ of the street to parcel A and ¼ to parcels B & C; and

Under the General Village Law Act, MCL 67.13, the Village possesses the statutory power toabandon the section of Jackson Street by adopting a resolution declaring its intent to do so andappointing a time not less than 4 weeks after the date of the resolution when it shall meet and hearobjections to the resolution; and

Notice of the meeting, with a copy of the resolution, must be given in the manner prescribed bythe open meetings act, 1976 PA 267, MCL 15.261 to 15.275. An objection to the proposed action of theCouncil may be filed with the Clerk in writing, and if an objection is filed, the part of the street shall notbe vacated or discontinued, except by a resolution or ordinance stating, if applicable, the name of theplat or plats affected and adopted by a majority vote of the members of Council; and

It is in the interests of the Village to abandon the section of Jackson Street as requested by HighLife Farms.

IT IS RESOLVED, the Village declares its intent to abandon the section of Jackson Streetidentified on Exhibit 1.

IT IS FURTHER RESOLVED, the Village Clerk shall schedule a public hearing on July2020 for the purpose of hearing objections to the proposed abandonment of the section of JacksonStreet. Notice of the meeting, with a copy of this resolution, shall be given in the manner prescribed bythe open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

Roll Call Vote:

AYES:

NAYS:

Absent:

Adopted: ____________________________________Trent Vondrasek, Village Clerk

CERTIFICATE

1, Trent Vondrasek, Clerk of the Village of Chesaning, Michigan, DO HEREBY CERTIFY that the above is a true and correctcopy of the Resolution Declaring the Village’s Intention to Abandon a Section of Jackson Street, which was adopted by theVillage Council at a meeting held on June 16, 2020.

Trent Vondrasek, Village ClerkDate: June 16, 2020

Exhibit 1

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MEMORANDUM OF UNDERSTANDING

THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is entered into as of the date last signed belowand made effective as of August 11, 2020 (“Effective Date”), by and between THE VILLAGE OFCHESANING, a Michigan municipal corporation with principal offices located at 218 N. Front St., Suite A,Chesaning, MI 48616 (“Village”), and CHESANING TOWNSHIP, a Michigan municipal corporation withprincipal offices located at located at 1025 W. Brady St., Chesaning, MI 48616, (“Township”).

RECITALS

A property tax appeal has been filed by the owner of Parcel 13-09-3-08-1219-001 (“Property”) which islocated within the Village; and

The Village and Township receive property tax revenue from the Property and, therefore, share acommon interest in ensuring the Property has a valid tax assessment value; and

The Village and Township have agreed to share the cost of an appraisal of the Property, as well asretention of an attorney to jointly represent them in the property tax appeal.

In consideration of mutual covenants and agreements set forth herein, the parties hereto agree asfollows:

TERMS

1. The Village and Township agree to jointly retain Legacy Assessments, 16759 Main St., Suite 209,Wildwood, MO 63017, to complete an appraisal of the Property (“Appraisal”).

2. The Village and Township agree to retain an attorney to jointly represent them in the property taxappeal (“Attorney”).

3. The Village shall contribute 75% for the total cost of the Appraisal and Attorney, while theTownship shall contribute 25% for the total cost of the Appraisal and Attorney. Appraisal andAttorney, said 25% not to exceed $5,000.00 subject to the Township’s redetermination of costsharing to be made at a later date, if needed.

4. The Village shall select the Attorney, with consultation of the Township.5. Either party may terminate this MOU on 14 days’ notice of the termination date, provided that all

costs for the Appraisal and Attorney incurred to the termination date shall be divided as set forth inparagraph 3, supra.

6. This MOU cannot be changed, modified or amended unless in writing and signed by the partieshereto.

The parties by their duly authorized representatives have executed this MOU as of the date lastwritten below.

The parties by their duly authorized representatives have executed this MOU as of the date last writtenbelow.

VILLAGE OF CHESANING: CHESANING TOWNSHIP

By: Troy Feltman, DPA By: Frances Kukulis, Township ClerkVillage Manager Date: August_, 2020Date: August —‘ 2020

IntegraHealthcare and Senior Housing

16759 Main StreetSuite 209Wildwood, MO 63017

T 636-530-0009F 636-530-0046www.irr.com

Appraisal Services

DATE OF AGREEMENT:

PARTIES TO AGREEMENT:

Appraiser:

August 27, 2020

Village of Chesaning In Chesaning Township1025 West Brady StreetChesaning, Michigan 48616do Kevin Macoer, MAIIegacyassessing~gmaiI.com

By: James K. Tellatin, MAIIntegra Realty Resources — Healthcare and SeniorHousing16759 Main Street, Suite 209St. Louis, Missouri 63040itelIatin~irr.comPhone: 636.534.6919

Client hereby engages Appraiser to complete an Appraisal assignment as follows:

PROPERTY IDENTIFICATIONChesaning Real Estate, LLC TrustChesaning Comfort Care, a 56-unit Home for the Aged licensed facility1800 West BradyChesaning, Saginaw County, Michigan 48616

Real Estate Parcel Identification Number;13-09-3-08-1219-001

INTEREST VALUEDFee simple interest, as required by Michigan real estate assessment law.

INTENDED USERS AND USEThe intended user of the appraisal is the Client, and others involved in determining the realestate assessment for property taxes

REGARDING:

Client:

.

DATE OF VALUEDecember 31, 2019.

TYPE OF VALUETrue cash value, as defined in Michigan law, in Section 211.27 The General Property TaxAct.

PRIOR APPRAISAL SERVICES FOR THE PROPERTYPer USPAP, we are required to state if Appraiser has performed appraisal or other professionalservices involving the subject property over the past three years. Appraiser and Integra RealtyResources, Healthcare and Senior Housing have never provided any professional servicesinvolving this property in the past.

HYPOTHETICAL CONDITIONS & EXTRAORDINARY ASSUMPTIONSWhile there are no anticipated hypothetical conditions, or extraordinary assumptions necessaryat this time to complete this Appraisal, if it becomes necessary to make such, the Appraiser willnotify the client prior to delivering the Appraisal Report.

APPLICABLE REQUIREMENTS OTHER THAN THE UNIFORM STANDARDS OFPROFESSIONAL APPRAISAL PRACTICE (USPAP)The appraisal will comply with the Code of Professional Ethics and Standards of ProfessionalAppraisal Practice of the Appraisal Institute.

ANTICIPATED SCOPE OF WORKInspection

o Tour and interview(s) of property ownership’s representative(s), the propertyexecutive director, maintenance personnel and/or other personnel for theownership. We note that a tour of the building interior may not be allowedgiven the Covid-19 pandemic. In that case, we will limit the IRR property visitto an exterior inspection and request the property management to provideinterior photographs that will have been taken on approximately the sametime as the IRR property visit. Also, if agreeable, Appraiser request thatsomeone from the property use a “face-time” type phone app to walk throughthe building given Appraiser a virtual tour.

• Analysis of Sales History andlor Pending Transactions• Regional and Neighborhood Analyses

o Physical datao Demographic data

• Total population trends• Population trends by age cohorts: focus on 75+ age group• Socioeconomic data

o Economic data• Property Description and Analysis

o Site description• Excess and/or surplus land• Flood plain zone• Zoning: relative to allowable uses and compliance

o Improvement description• Building components• Functional features• Condition

Recent capital expenditures

• Deferred maintenanceCritical assessment

o Equipmento Real estate taxation

• Market Analysiso Supply Analysis

Identification and profile of the competitive supply — existing andproposed

o Demand analysiso Occupancy rate forecastingo Monthly rate analysis analysis — subject and rent comparables

• Highest and Best Use Analysis• Development of the Going-concern Value• Cost Approach — Tangible Asset Valuation

o Land value, based on comparable sales comparisono Improvement value

• Development of replacement cost newa Deduct depreciation from all causes — physical functional and external

o Valuation of the FF&E• Sales Comparison Approach

o Elements of comparisono Sale data

• Research of comparable sales• Selection of the most comparable sales• Analysis and sale price adjustments

• Income Capitalization Approacheso Historical financial data: normalized for market management fee and

reserves for replacemento Operator’s pro forma financial data — if applicableo Revenue analysis (see market analysis)o Expense analysis

a Historical data• Operator’s pro forma expense forecasts• Comparison to operating expenses for comparable properties

o Direct overall capitalization analysis• Qualitative risk differentiation based on profit source model• Overall capitalization rate analysis

- Derivation from comparable sales• Derivation from band of investment — mortgage & equity• Derivation from debt coverage formula

o Comparative analyses — historical and forecasted trendso Reconciliation of the Final Concluded Going-concern Valueo Allocation of the going-concern value between land, real estate improvements,

tangible personal property, or FF&E, and intangible asset value.

TYPE OF APPRAISAL REPORTAppraisal Report, formerly referred to as a self-contained appraisal report.

ADDITIONAL DOCUMENTATION

Client agrees to provide Appraiser with the available documentation as indicated in InformationRequest List, which is an appendix to this Agreement. Delays in providing this documentationwill likely result in adjusting the delivery date.

DELIVERY DATE15 working days after Appraiser receives requested information shown in “Information RequestList, at the end of this engagement letter.

DELIVERY METHODOvernight Private Courier and PDF via email

PAYMENT TO APPRAISERFixed FeeThe report fee of $6,250 includes:• Property inspection performed by IRR Michigan Licensed Appraiser• Travel expenses for property inspection(s)• Production expenses associated with completing the appraisal and delivering the

appraisal report

The Client will pay a retainer of $3,125.00 prior to the Appraiser visiting the property. Theremaining portion of the fee, $3,125, must be paid within 30 days of the delivery of the appraisalreport.

Variable Fee Services• Additional fees, as cited below, for James Tellatin, MAI, and other appraisers employed

by IRR — HCSH will be charged for tasks not included in the fixed fee portion of thiscontract. This variable fee will be based on hourly charges for consulting provided afterthat acceptance of the final appraisal report and will also include Appraiser’s time spentpreparing and providing deposition, trial and/or hearing board-type testimony. JamesTellatin’s fees are at $350.00/hour. Work done by associates of Integra-Healthcare &Senior Housing will be billed at the rate of $225.00/hour. These variable fee services areat the direction of the client.

• These variable fee services include but are not limited to:o Trial and deposition preparationo Appraiser’s deposition(s) and trialo Client requested meetings with persons other than Client or Client’s agents• Travel expenses for appearances in depositions, trials, hearings, and meetings.

Note: Mr. Tellatin will be the testifying expert in any hearing or trail.

WHEN APPRAISER’S OBLIGATIONS ARE COMPLETEAppraiser’s obligations pursuant to this Agreement are complete when the Appraisal Report inthe form specified in this Agreement is delivered to Client pursuant to this Agreement. Appraiseragrees to be responsive to Client’s legitimate inquiries regarding the contents of the AppraisalReport after delivery.

CONFIDENTIALITYAppraiser shall not provide a copy of the written Appraisal Report to, or disclose the results ofthe Appraisal prepared in accordance with this Agreement to, any party other than Client, unlessClient authorizes, except as stipulated in the Confidentiality Section of the Ethics Rule of theUniform Standards of Professional Appraisal Practice (USPAP).

USE OF EMPLOYEESAppraiser will use employees at Appraiser’s discretion to complete the assignment, unlessotherwise agreed by the parties. Notwithstanding, Appraiser shall sign the written AppraisalReport and take full responsibility for the services provided because of this Agreement.

SERVICES NOT PROVIDEDThe fees set forth in this Agreement apply to the Appraisal services rendered by Appraiser asset forth in this Agreement. Unless otherwise specified herein, Appraiser’s services for whichthe fees in this Agreement apply shall not include meetings with persons other than Client orClient’s agents or professional advisors; Appraiser’s deposition(s) or testimony before judicial,arbitration or administrative tribunals; or any preparation associated with such depositions ortestimony.

TESTIMONY AT COURT OR OTHER PROCEEDINGSUnless otherwise stated in this Agreement, Client agrees that Appraiser’s assignment pursuantto this Agreement shall not include Appraiser’s participation in or preparation for, whethervoluntarily or pursuant to subpoena, any oral or written discovery; sworn testimony in a judicial,arbitration or administrative proceeding; or attendance at any judicial, arbitration oradministrative proceeding relating to this assignment.

CHANGES TO AGREEMENTAny changes to the assignment as outlined in this Agreement shall necessitate a newAgreement. The identity of the Client, intended users, or intended use; the date of value; typeof value; or property appraised cannot be changed without a new Agreement, or amendment tothis Agreement.

CANCELLATIONClient may cancel this Agreement at any time prior to Appraiser’s delivery of the Appraisal andReport upon written notification to Appraiser. Client shall pay Appraiser for work completed onassignment prior to Appraiser’s receipt of written cancellation notice, unless otherwise agreedupon by Appraiser and Client in writing.

GOVERNING LAW AND JURISDICTIONThis Agreement shall be governed by the law of Michigan. The parties agree that any legalproceeding brought by either party to interpret or enforce this Agreement, or to enforce anarbitration award entered pursuant to this Agreement, shall be brought in a state or federal courthaving jurisdiction in Michigan, and the parties hereby waive any objections to the personaljurisdiction of said court.

APPRAISER INDEPENDENCEAppraiser cannot agree to provide a value opinion that is contingent on a predeterminedamount. Appraiser cannot guarantee the outcome of the assignment in advance. Appraisercannot ensure that the opinion of value developed because of this Assignment will serve tofacilitate any specific objective of Client or others or advance any cause. Appraiser’s opinion ofvalue will be developed competently and with independence, impartiality, and objectivity.

NOTICESAny notice or request required or permitted to be given to any party shall be given in writing andshall be delivered to the receiving party by a) registered or certified mail, postage prepaid; (b)overnight courier, such as Federal Express, United Parcel Service or equivalent; or (c) handdelivery. The address for delivery of any notice shall be the address for the party as specified inthis Agreement, or at such other address as party may designate by written notice to the otherparty in conformance with this paragraph. Unless otherwise specified herein, notice shall beeffective the date it is postmarked or given to a third party for delivery to the receiving party,whether the receiving party signs for or accepts delivery of such notice.

NO THIRD-PARTY BENEFICIARIESNothing in this Agreement shall create a contractual relationship between Appraiser or Clientand any third party, or any cause of action in favor of any third party.

MEDIATION & ARBITRATIONIn the event of a dispute concerning the subject matter of this Agreement, the parties shall ingood faith attempt to resolve such dispute by negotiation between the parties’ principals, or, ifsuch negotiation is unsuccessful, by mediation conducted by a Michigan, third-party mediator. Ifsuch mediation results in an impasse, the parties shall submit their dispute to binding arbitration.Such mediation or, if necessary, binding arbitration shall be conducted pursuant to themediation procedures or the commercial arbitration rules of the American ArbitrationAssociation. Any arbitration shall be conducted in the city in which Appraiser’s office asspecified herein is located. The parties shall share equally the costs of any mediation. In theevent of binding arbitration, the arbitrators shall, in addition to any relief appropriate to beawarded to the prevailing party, enter an award in favor of the prevailing party for that party’scosts of the arbitration, including the party’s reasonable attorneys’ fees and arbitration expensesincurred in prosecuting or defending the arbitration proceeding. Subject to the right of theprevailing party to recover its share of the costs of the arbitration services pursuant to thearbitrator’s award, the costs of the arbitration services shall be borne equally by the parties. Ifthe prevailing party seeks judicial confirmation of any arbitration award entered pursuant to thisAgreement, the court shall, in addition to any other appropriate reliet enter an award to theprevailing party in such confirmation proceeding for its reasonable attorneys’ fees and litigationexpenses incurred in confirming or successfully opposing the confirmation of such an award.

SPECIAL OR CONSEQUENTIAL DAMAGESNeither party shall under any circumstances be liable to the other party for special, exemplary,punitive or consequential damages, including, without limitation, loss of profits or damagesproximately caused by loss of use of any property, whether arising from either party’snegligence, breach of the Agreement or otherwise, whether or not a party was advised, or knew,of the possibility of such damages, or such possibility was foreseeable by that party. In no eventshall Appraiser or Client be liable to the other party for any amounts that exceed the fees andcosts paid by Client to Appraiser pursuant to this Agreement.

ASSIGNMENTNeither party may assign this Agreement to a third party without the express written consent ofthe other party, which the non-assigning party may withhold in its sole discretion. In the eventthis Agreement is assigned by mutual consent of the parties, it shall become binding on theassigning party’s permitted assigns.

SEVERABILITYIn the event any provision of this Agreement shall be determined to be void or unenforceable byany court of competent jurisdiction, then such determination shall not affect any other provisionof this Agreement and all such other provisions shall remain in full force and effect.

CLIENT’S REPRESENTATIONS AND WARRANTIESClient represents and warrants to Appraiser that (1) Client has all right, power and authority toenter into this Agreement; (2) Client’s duties and obligations under this Agreement do notconflict with any other duties or obligations assumed by Client under any agreement betweenClient and any other party; and (3) Client has not engaged Appraiser, nor will Client useAppraiser’s Appraisal Report, for any purposes that violate any federal, state or local law,regulation or ordinance or common law.

EXTENT OF AGREEMENTThis Agreement represents the entire and integrated agreement between the Client andAppraiser and supersedes all prior negotiations, representations, or agreements, either writtenor oral. This Agreement may be amended only by a written instrument signed by both Clientand Appraiser. This Agreement includes the following Appendices, which are incorporated into,and made a part of this Agreement:

Types of Appraisal ReportsInformation Request

Integra Healthcare & Senior HousingProposed by: Authorized, agreed and accepted by:

By:Village of ChesaningClient:

Individual Name

Date:

Types of Appraisal ReportsInformation Request List

Date: gust 27, 2020

Attachments:

Types of Appraisal Reports

According to the Uniform Standards of Professional Appraisal Practice (USPAP), thefollowing chart distinguishes the two types of appraisal reports. In this case, theassignment involves an Appraisal Report, in a self-contained format.

Types of Appraisal Reports

Appraisal Report Restricted Appraisal Report

i. state the indentity of the client and any intendedusers, by name or type:

ii. state the intended use of the appraisal;

Ui. summarize information sufficient to identity thereal estate or personal property in’~oNed in theappraisal, including the property characteristicsrele’~ant to the assignment;

iv. state the property interest appraised;

v. state the type and definition of’~alue and cite thesource of the definition;

~A. state the effecti’.e date of the appraisal and thedate of the report;

‘.ii. summarize the scope of work used to de’.elopthe appraisal;

~Aii. summarize the information analyzed! theappraisal methods and techniques employed.and the reasoning that supports the analyses,opinions, and conclusions; exclusion of thesales comparison approach, cost approach orincome approach must be explained;

ix. state the use of the property existing as of thedate of the ~alue and the use of the real estateor personal property reflected in the appraisal;

x. when an opinion of highest and best use or theappropriate market or market le’.el wasde~eloped by the appraiser, summarize therationale for that opinion;

xi. clearly and conspicuously state all extraordinaryassumptions and hypothetical conditions; andthat their use might ha’~e affected theassignment results; and

xU. include a signed certification in accordance withstandards Rule 2-3 or 8-3.

i. state the identity of the client by name or type;and state a prominent use restriction that limitsuse of the report to the client and warns that therationale for how the appraiser arri’~ed at theopinions and conclusions set forth in the reportmay not be understood properly withoutadditional information in the appraisers workfile;

ii. state the intended use of the appraisal;

iii. state information sufficient to identi~’ the realestate or personal property intoNed in theappraisal;

iv. state the property interest appraised;

v. state the type of ‘value and cite the source of itsdefinition;

‘vi. state the effective date of the appraisal and thedate of the report;

vii. state the scope of work used to develop theappraisal;

viii. state the appraisal methods and techniquesemployed, state the ~lue opinion(s) andconclusion(s) reached and reference theworkflle; exclusion of the sales comparison,cost approach, or income approach must beexplained;

ix. state the use of the property existing as of thedate of the ~alue and the use of the real estateor personal property reflected in the appraisal;

x. when an opinion of highest and best use or theappropriate market or market level wasdeveloped by the appraiser, state that opinion;

xi. clearly and conspicuously state all extraordinaryassumptions and hypothetical conditions; andthat their use might have affected theassignment results; and

xii. include a signed certification in accordance withstandards Rule 2-3 or 8-3.

comments have not been included in this chart.

Information Request List

Overall property information:1. Please provide a property contact to arrange the Appraiser’s visit to the property. If Appraiser is

not allowed inside the building because of COVID-19 quarantine reasons, Appraiser request thatproperty provides an employee to provide a virtual tour of the building using “facetime” or othersmart phone app, to allow Appraiser an understanding of the building interior qualities.

2. Legal description of the real estate being appraised.3. Please provide site, architectural and mechanical drawings for all buildings, if available, when

Appraiser visits the property.4. Also, taxpayer should complete a property questionnaire, separately provided.5. Copy of leases currently in effect, include prior leases that relate to the current lease(s).6. List of unit types, with unit names, rentable square footage, number of rooms and bathrooms,

number of units for each type unit (this count should match up with information from the rent roll— see that request below).

7. Capital spending at the property during the past two years (list major replacements and costs).8. Anticipate capital spending needs in 2020, and beyond.

Information regarding operations of the nursing facility9. Detailed financial/P&L reports for both operating and real estate companies involved in the

ownership and operations of the facility for, 2017, 2018 and 2019—ideally, financial data shoulddetail revenues separated between independent living, and if present assisted living andmemory care: resident days separated between independent living, assisted living and memorycare for each period must also be provided.

10. Pro forma/ operating budget for 2020.11. Rent roll for December 31, 2019, please show unit type, asking rate, achieved rate, move-in

date, second-occupant rent, and include same information for vacant units, except for actualrent.

12. Current asking rates for the various units as of December 31, 2019, and expected date forincreases, and the amount of rate increase.

OHMOPINION OF PROBABLE

CONSTRUCTION COST

Telephone (734) 522-6711 FAX (734) 522-6427

2021 Street Improvement Estimates - Summary

Village of Chesaning

Village Road Repairs and Improvements

August10 2020

DESCRIPTION COST

2021 Streets ProgramS. Clark St - Crush and ShaDe, Drainage Improvements, Sidewalk - 2300 FtS. Saginaw St/S. Chapman St - Reconstruct/Mill & Resurface, Drainage, Sidewalk - 2450 FtChurch St - Mill & Resurface, Sidewalk, Storm Sewer -2000 FtJackson St - Mill & Resurface, Parking, Storm Sewer - 600 FtN. Washington St. - Mill & Resurface, Sidewalk - 350 FtMason St. - Mill & Resurface, Sidewalk - 700 FtPine St. - Mill & Resurface, Sidewalk, Storm Sewer - 700 Ft

3rd St. - Mill & Resurface, Sidewalk, Driveways - 900 Ft. Bid Alternate $ 130,000.001st St. Asphalt Overlay of Gravel Roadway 1500 Ft, Bid Alternate $ 70,000.00

TOTAL COST = $ 1,440,000.00

S 385,000.00SSS

420,000.00175,000.0070,000.00

S 35,000.00S 75,000.00S 80,000.00

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I am requesting approval to have a well drilled on my CreativePassions Retreat Center property at 710 W. Broad St (formerlyknown as Bonnymill Inn) to be used exclusively for wateringlandscaping around the building and filling the fish pondlocated on the property.

Having a prominent building within the DDA zone and on themain road through town, we try to make the landscaping asbeautiful as possible. Unfortunately, the cost of water islimiting how much I can do. July’s water bill after dedicatingextra attention to new flowers, trees and grass was over $1100vs. a normal month of around $400.

Thank you for your time and consideration.

Sincerely,

Laura Greenfelder

W BROAD ST

Village Administrator’s ReportSeptember 1, 2020

Citizen Street liii sovenient CommitteeReco nmendation or2021 Bond Pro ect

Included in your packet this week is a recommendationfrom the citizen-driven Street Improvement Committeethat will be presented by the members of the Village’sInfrastructure Committee. The focus of the programnext year is to start “filling in” the grid system ofimprovements that have been undertaken in the twoprevious bond financed programs in 2015 & 2018.

Specifically, I have included the street-by-streetsummary of cost projections put together by OHMAdvisors staff. I have also included the current PACERratings of the street system in total. Finally, theproposed project locations are identified on an aerialmap so you can get a “birds-eye” view of how the

proposed improvements fit into the previous work.I think it is also extremely important to stress the value that the Village’s assetmanagement approach is having on the overall condition of the street system. I wouldstrongly encourage the Village to continue to use this philosophy on all of its assets.Preventative maintenance and strategic investments will prolong the life of ourinfrastructure and facilities. I am extremely proud of the commitment the citizens havemade to funding these street improvements. It is incumbent upon the Village Counciland administration to be thoughtful stewards of their investment.

Memorandum of Understa ~ding: Tax Appeal Partner ~ p w ‘t ~i To~ ns ip

Peter Bade has completed the drafting of a memorandum of understanding between theVillage and Chesaning Township regarding the tax appeal by Comfort Care. Pursuantto the verbal agreement of Village Council, I have been working the Kevin and other

C I

Dates To Note:• September 8th at 12:30 DPW

stall mcciing.

• September 9” at 12:30WWTP staff meeting.

• September 9~at 7:00 p.m.PJaniiing Commissionmeeting. Location: 1 pperPavilion at Showboat Park.

L .1

Township staff to finalize the MOU that is included in your packet and on the agendafor approval. The agreement with the appraiser is attached to the MOU for your reviewand comment as well. Let me know if you have any questions. I will look to Councilfor proposed alterations in these documents or an approval to sign at the meetingTuesday night.

Side by Side Ordinance: Proposed Amendi ze its

Chief Short and I have been meeting to discuss how to implement the proposedchanges that the Police Department has brought forth to Village Council. Subsequent to

the last meeting, I have had contact withmembers of the community who haveexpressed that they see the registration

M~\N \(,l Nil Ni 15 1)01kb 111 N( ,s of the side-by-side vehicles as anRIGH F: Ii \DL RSHIP IS DOING overreach and really not necessary.

I lIE Rl(jI•1 ~ liNUs. They thought that a few village councilmembers were in agreement with this

- PET I- I~ F DRI (I 1. R position. While I did not walk awayfrom the meeting with this perspective,before we proceed with any additionaleffort, I want to make sure that we have

the support of Council to implement the program as presented by Chief Short at the lastmeeting. The next step would be to put together the proposed, amended ordinance forCouncil to review. A public hearing would be required to implement any changes tothe existing ordinance.

Miscellaneous Points of Interest

• E. Liberty/Center Street Project Update: The contractor has finished the vastmajority of the scope items, including the asphalt work on both E. Libertyand Center streets. The scheduled scope items left will be completed bythe end of the day on September 4th•• . weather permitting. They have theshoulder work and landscaping left to do at the drafting of this report. Iam very impressed with the work of the contractor and OHM Advisors onthis project. They managed the in the field decision making seamlesslyand developed a solid rapport with the residents along the way.

• Village Administrator Position Advertisement: Following approval by theFinance and Administration Committee, the advertisement for the VillageAdministrator’s position has been posted on the Michigan MunicipalLeague’s classified ad section on their website. I have also startedcontacting other managers who I think might be interested in the positionas well. I will keep you posted as the effort progresses.