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UNAPPROVED
WEST MICHIGAN REGIONAL PLANNING COMMISSION
BOARD MEETING MINUTES
June 17, 2011
9:30 a.m.
1. Call to Order. C. Mulholland, WMRPC Chair, called the meeting to order at 9:35 a.m.
Roll Call:
Linda Howell – Allegan County
Lynn Anderson – City of Big Rapids
Mark Sweppenheiser – City of Big Rapids
Ruth Kelly – City of Grand Rapids
Brenda Cowling-Cronk – City of Ionia
Paul Bullock, Treasurer – Mecosta County
Ray Steinke – Mecosta County
Leslie Anne Wood – Montcalm County
John Johansen – Montcalm County
Tom Lindeman – Montcalm County
Dan Massy – Osceola County
Donald Disselkoen, Vice-Chair – Ottawa County
Doug Zylstra – Ottawa County
Sam Bolt – City of Wyoming
Roger Belknap – City of Cedar Springs
Jeanne Vandersloot – Keene Township
L. Charles Mulholland, Chair – At large
Gregg Yeomans – At large
Staff:
David Bee – Director
Elizabeth Van Doorne – Planner
Nancy Murphy – Administrative Assistant
Guests:
Birgit Klohs, The Right Place, Inc.
Greg Northrup, West Michigan Strategic Alliance
Joan Epperson – Ottawa County / CEDS Committee
2. Approval of Minutes
A MOTION WAS MADE BY R. Steinke to approve the minutes for the March 18, 2011, Commission meeting as presented. SUPPORTED BY G. Yeomans. MOTION APPROVED UNANIMOUSLY.
3. Public Comments
None.
4. Guest Speakers
Birgit Klohs, President & CEO, The Right Place, Inc.
D. Bee introduced Ms. Klohs and Mr. Northrup and said that at the January strategy session, it was decided to look at other regional agencies. At the last Commission meeting, representatives from the three MPOs (Metropolitan Planning Organizations) presented information about their agencies. At today’s meeting, we have Birgit Klohs with the Right Place program and Greg Northrup with the West Michigan Strategic Alliance (WMSA).
Ms. Klohs first talked about the history of her organization. In 1983-84, the unemployment rate in Michigan was 17.5 percent. Local business leaders and the Chair of the Kent County Board of Commissioners got together to evaluate the economic climate and local circumstances in order to determine a better way forward. At that time, there was no mechanism to coordinate services for businesses that were considering relocating to West Michigan.
The Battelle Memorial Institute funded a study to determine what was there at that time. That study had two major recommendations: 1) Create a one-stop shopping for economic development for new businesses. The new organization would become the “right place for your business”. 2) Create an engineering program at Grand Valley State University (GVSU). If manufacturing was meant to grow, there would be a need for an engineering program.
Today, The Right Place is a private–public partnership. Board members have to be an investor first, except for a few non-profits. The Board includes the City of Grand Rapids and Kent County, plus one township. It is important to involve local units of government because a company always locates in a specific municipality. They have a fund-raising campaign every five years. Previously those efforts have been concluded within one year, but this time around, the work might continue into a second year. There have been increases from some funders.
The Right Place’s mission is: “to promote wealth creation and economic growth in the areas of quality employment, productivity and innovation in West Michigan by developing jobs through leading business retention, expansion and attraction efforts.” They go to the public and private sectors and ask, “what should we do now?” The basic mission is still jobs, but there are some differences now due to emerging circumstances, such as the influence of the global economy.
Ms. Klohs talked about four strategic priorities.
Business Development
The most important part of their work is the retention of current businesses, and they spend 80 percent of their efforts toward that goal. They work to make sure that local companies get what they need – supply chain access, technical assistance, bricks and mortar, or whatever. They also work with business expansion to assist local companies that want to grow.
She talked about the example of Farmers Insurance (formerly Foremost). The company was sold to a Swiss firm and lost their headquarters here. The new owner considered locations in Oklahoma, Florida, and Kansas for a new site for consolidated operations. After two years, the company decided on West Michigan. The new facility will include a new building in Caledonia and 1,600 new jobs. All of Farmers operations east of the Mississippi River will be based in Caledonia. Eventually there will be 4,000 people working there. Additionally, because the new site will be the base for company training programs, that will mean significant business for local hotels and restaurants when personnel are in town for training.
The Right Place is the coordinator for all functions, so a company has one point of contact.
Attraction
The Right Place represents the whole region for the process of recruiting new companies. Their efforts are global and include such countries as Israel, China, and Japan. They develop and employ statistics that showcase the region. The entire region is included in their marketing efforts.
Diversification
These efforts focus on these sectors:
▪ Life Sciences – our medical facilities and also collaboration with Kalamazoo (the former Pfizer company)
▪ Renewable Products and Services
▪ Alternative Energy – wind, solar
▪ Food Processing – they work with agricultural businesses in seven counties, including working closely with supply chains
▪ Advanced Manufacturing – these jobs pay better and create wealth
▪ Aerospace and Defense
Innovation
They facilitate innovation through university and manufacturing partnerships and also organized the Innovation Cooperative for the sharing of information on trends, technology, and best practices.
The Right Place is involved with regional efforts. At the request of the Michigan Economic Development Corporation (MEDC), they convened twelve counties around a collaborative. The Right Place has two business development managers and also has a contract with Ionia County for their economic development program. Companies make their decisions based on the whole region.
R. Kelly asked how they got Farmers Insurance. Ms. Klohs said that the local work force was an important factor. The availability of reliable and highly trained workers was a valuable incentive. Plus, they already owned 400 acres in West Michigan. They had to get over the hurdle of their anti-Michigan bias, which happened when we showed them that West Michigan is different, that we are private-sector driven here. The State government was also helpful in providing requested insurance regulations adjustments.
D. Bee asked for more details about their liaison with Ionia County. Ms. Klohs said that the County approached them. They will each have a seat on the other’s board. By October 1st, the person will be in place – the position will be on The Right Place payroll, but physically located in Ionia. Newaygo County is a different situation. There, Andy Lofgren will act as the general practitioner for the County, with The Right Place as the specialist.
Greg Northrup, President, West Michigan Strategic Alliance
Mr. Northrup said that in order for West Michigan to be successful, we need to operate as a region. If West Michigan was a company, The Right Place would be its marketing and sales department. West Michigan is a product, a best place to live, learn, work, and play. We need to keep the companies we already have. CEOs talk to each other about what is working or not working in different parts of the country.
The West Michigan Strategic Alliance was formed in 2000. It’s purpose is to maintain and improve the quality of life. There are three critical sectors –
government
education (we need good talent as part of the mix)
private sector
We have a smorgasbord of options, with great cities. Rural options are needed too. An agricultural processes study indicated that farmland preservation is a great tool. But a better alternative is for agricultural areas to use farmland in the best way so that preservation is not necessary. Food hubs aggregate production to achieve the scale necessary to be competitive. Farmers currently ship hogs to Iowa to be processed and then ship them back, but transportation has become too expensive to continue that practice. We need to do things the smart way.
Mr. Northrup said we should think about regions the way he does. Regions are economic units. He is not into consolidation for its own sake. We need to focus on service delivery and consider what is best for customers. WMSA includes eight counties. Originally there were four counties – Kent, Muskegon, Allegan, Ottawa. Later they added Barry, Ionia, Newaygo, and Montcalm. He said to look at where people drive to and from for employment. People access different areas for different purposes. Do collaboration with eight counties.
The Governor said we need to “reinvent” Michigan. He asked WMSA how to reinvent Michigan, what does that mean? Now there is no uniform delivery of services. We need to consider our resources and what is best for our region. Our issues are different from Detroit’s. We are better prepared to decide how best to use our resources. There are too many workforce development boards. They overlap and it’s confusing for businesses to have to deal with so many entities. The customer is not the government. The customer is the employee looking for a job and needing training. We spend a huge amount on adult education. But adult education regions do not coincide with workforce regions. As leaders, we need to redefine and realign processes. There are twelve counties that need to cooperate and coordinate.
He said that Charles Mulholland is part of a group that is looking at the issue of service delivery for West Michigan. We need to work within the context of the current national and global network and market. People now are doing work within the context of what they have been asked to do. The process that he is involved with will take six to nine months and be rocky and political.
J. Epperson referred to the trend of the talent pool leaving the state and asked if there has been any slowdown in their exit. Mr. Northrup said that in West Michigan, it has slowed down, but also that we have not had that problem to the same extent as the east side of the state. We have a nationally recognized internship program. Yes, there are jobs here for qualified workers. But it is also good for young people to leave West Michigan for a time and then come back after they have had experiences in other parts of the country.
Ms. Klohs said that not all “talent” is at the PhD level; there are different levels. During a recession, employers invest in more sophisticated equipment. The content of the employee has changed and companies need highly skilled people in manufacturing. There’s a skill mismatch today. Apprentice programs train the best people. At this time, the highest need is for sophisticated welders. There’s a social issue in the state related to the high unemployment rate: how do we retrain the 45-year-old worker? With the imminent retirement of the baby boomers, there will be an actual labor shortage, especially in manufacturing. Many young people have a negative connotation of industrial jobs, even though they are different now.
T. Lindeman said that some people believe that if Greenville officials had been more connected to Electrolux, they would have known they were planning to leave the area. He wondered what is being done now to be better informed about companies based in other areas that have local operations. Ms. Klohs said that they go overseas on a regular basis. They attend trade shows, and visit the home offices of companies that have local facilities, and stay connected. They tell the management, “thanks for your investment” and let them know they’re valued. They stay in touch and know what’s happening. They also keep informed about management changes and then start building connections with the new people. If a new CEO comes to town, they connect with that person and help with the relocation process.
Mr. Northrup said that the underlying issue is consistency and continuity of the people doing the economic development work. There is a need in local government for consistency of process and application. When there are fewer resources, you need a better product. Ms. Klohs said that we are in competition with the economic development organizations in all 50 states – there are 28,000 agencies like The Right Place. So how we play together here in West Michigan makes a difference. The Right Place depends on local government and they need to be able to say that needed changes will be made. Outside companies hire consultants to review their relocation options. Often companies don’t deal directly with The Right Place. Sixty percent of new locations deal with a third party. The Right Place works with national site-location consultants to showcase our region and make sure they are familiar with us and what we have to offer prospective businesses. Priceline looked at 100 websites and were impressed with The Right Place’s online presentation and with the statistics that showed them the advantages of locating here: they considered the high numbers of college students, numbers of different languages spoken here, and the relatively low turnover rates.
D. Massy asked about K to 12 schools. Ms. Klohs said that the Grand Rapids school district is a big issue. G. Yeomans added that we also have to consider 0 to 5. Ms. Klohs said that businesses are looking at current educational quality and can see that changes will be necessary. We should look at human beings as a product. Different levels of education and training are needed for today’s jobs. The business community is becoming more willing to work on the problem. High school graduates are often not ready for college, but need remedial training first.
5. Administrative Matters
Financial Statement
The Financial Statement was included in the meeting packet and covers the Fiscal Year 2011 through April 2011. D. Bee briefly reviewed the Financial Statement.
A MOTION WAS MADE BY J. Johansen to accept and place on file the Financial Statement for the period of October 1, 2010 through April 30, 2011. SUPPORTED BY D. Disselkoen. MOTION PASSED UNANIMOUSLY.
Revised Budget
D. Bee distributed copies of the Amended Budget for Fiscal Year 2011, October 1, 2010 through September 30, 2011 and reviewed the proposed amended budget. Most of the line items stayed the same. Revenues changes include: There was no MDOT special project this year so that was removed. We have not yet started the Big Rapids Township plan update, so the Land Use Plans item was reduced. The previous recreation plans were wrapped up before the beginning of the Fiscal year, so that category was reduced. On the Expenditures side, Salaries & Wages were reduced to reflect the trend for actual expenses. The Printing category was reduced because we have not had as many studies this year. All in all, there have not been any big changes.
A MOTION WAS MADE BY D. Disselkoen to approve the WMRPC Amended Budget for Fiscal Year October 1, 2010 through September 30, 2011. SUPPORTED BY R. Steinke. MOTION PASSED UNANIMOUSLY.
MDOT Resolution
The resolution for MDOT funding was included with the meeting packet and is an annual agreement.
A MOTION WAS MADE BY T. Lindeman to adopt the resolution to authorize the FY 2012 grant application to the Michigan Department of Transportation (MDOT), for funds to be used for regional transportation planning in Region 8; and to authorize its Chairperson to sign a contractual agreement with MDOT for this Program. SUPPORTED BY J. Johansen. MOTION APPROVED UNANIMOUSLY.
Check Signing Policy
The new check signing policy was presented to the Executive Committee at its May meeting. Included in today’s meeting packet were two versions of the proposed policy: 1) the version originally presented to the Executive Committee, and 2) the version prepared after that meeting based on suggested changes. There is also a third version, which D. Bee distributed at the meeting (copy attached).
First, D. Bee explained the history and said that the Director signs all checks except those made out to him. His checks are mailed to the Chair, who signs them and mails them back. D. Bee had asked our auditor if there was a less cumbersome and more efficient process. The auditor suggested that the Director sign his own pay and expense checks and then have the Chair review the check stubs and expense forms whenever he was available.
The Executive Committee suggested that Dave could send an e-mail to Charles with the amount of the paycheck so he is aware of the totals. The Committee also questioned the mailing of expense checks and said that they could be processed in the same manner as the paychecks – that is, send an email with a dollar amount and then have the Chair review the expense check stubs and the expense forms on a regular basis.
After that meeting, D. Bee talked again with the auditor, who said that the e-mail step in the process is not needed. The auditor said that the important feature is the actual review by the Chair.
The third version of the policy reflects the discussed changes. In this version, the Director would sign his/her own paychecks and expense checks. Then the paycheck stubs will be reviewed by the Chair at regular intervals. For the expense checks, the Director will e-mail the amount and check number for each check, along with the expense form, to the Chair, who will indicate his approval by return e-mail. Then, the Chair will review and approve both the expense check stubs and the expense forms at regular intervals.
All other provisions in the check signing policy are the same as past practice. That is, paydays are every other week, typically on Thursdays, but sometimes on other days to accommodate schedules. Expense checks are based on expense forms. Pay and expense checks and expense forms for employees are signed by the Director or other authorized check signer.
A MOTION WAS MADE BY D. Disselkoen to approve the WMRPC Policy for Signing and Distributing Paychecks and Expense Checks. SUPPORTED BY J. Johansen. MOTION PASSED UNANIMOUSLY.
Board members asked several questions about the check process: Would direct deposit be an option? N. Murphy said that we had looked into that and it would cost $50 per month, which was too expensive. She said that the bank service is not a good option for small numbers of employees like we have. Could the Chair look at our bank records online and thereby assure accountability? N. Murphy said that she is able to access our bank accounts online and could provide the Chair with the access information upon request. Have we considered using a payroll service? D. Bee said that at some point we might look into that, but do not need that service at this time.
6. Round Table / Regional Issues
C. Mulholland said that it had been suggested that each member submit project text in advance, so that the information would be available for other members to review prior to the meeting. These reports would be sent out with the meeting agenda. The intention was that we would then be able to discuss issues at the meeting instead of everyone just giving a report. D. Disselkoen added that it would also be a way to facilitate information exchange because not everyone is able to attend every meeting.
Don Disselkoen – Ottawa County. The County is considering an Agricultural Technology Business Incubator. They established a Land Bank Authority. Their Brownfield Redevelopment Authority is in place and they just approved their first project. They are completing their countywide broadband network which will serve 95 percent of the county; the five percent left uncovered is in the northeast corner, including Orchard and Fruitridge, and is hard to cover; it takes someone who wants to do it and it would be expensive. The broadband tower will be a good source of revenue for the County; they will lease it and get revenues, which will eventually go into an IT fund.
Brenda Cowling-Cronk – City of Ionia. She said that she likes the idea of Commission members submitting their reports before the meeting, so it can be e-mailed to members to review. That way they will have the opportunity to think of questions as well as become more informed.
John Johansen – Montcalm County. The County has been working for four years to secure a Brownfield Redevelopment Authority grant from EPA (Environmental Protection Agency). They were just approved for a $400,000 grant and were one in just five in the state that received a grant.
Tom Lindeman – Montcalm County. They are working with Kent County on a project for solid waste processing, which is expected to result in big savings. Building permits are at a nine-year low. Economic conditions in the county continue to be financially stressed.
Leslie Wood – Montcalm County. K–12 schools are hurting financially. School districts are starting to combine and share resources. Montcalm Community College’s M-TEC (Michigan Technical Education Center) is working on implementing their grant. They have purchased the land and will start the expansion process in the fall. They plan to move in the fall of 2013.
Roger Belknap – City of Cedar Springs. He said that when outside visitors come to meetings, he gains a new perspective. They make him think that things are looking up and give us things to think about.
This summer their water tower will be off line, which will require planning and coordination. He commented that when we talk about assessment of infrastructure, there’s also what you don’t see. He said that now there is a need to preserve and continue existing infrastructure and wondered if there is any move at the state level to help them assess that unseen side. D. Disselkoen responded that the Legislature is talking about adding that to local responsibilities Included would be signs, pump stations, and similar infrastructure. The trick is knowing when something will fail. B. Cowling-Cronk added that they have been very proactive in this area.
Lynn Anderson – City of Big Rapids. Their summer attractions include the farmer’s market and music in the park. Ferris State University is hosting their orientation for new students. The City passed their budget after a contentious process.
Mark Sweppenheiser – City of Big Rapids. Local site plans that have been approved are not moving forward with construction. That seems to be a trend.
Sam Bolt – City of Wyoming. The State signed off on the site of the former GM plant, which will involve $1.4 million tax recapture. They have started work on tearing down the inside of the facility. He mentioned a clean water plant award.
Jeanne Vandersloot – Keene Township. She commented on the good presentations. Local farmers are struggling with too much water.
Ruth Kelly – City of Grand Rapids. The “medical mile” on Michigan is working on ways to accommodate increased transportation. The transit millage passed. There have been a lot of foreclosures. She mentioned an economic initiative to support small business entrepreneurs; it would supplement The Right Place work.
Linda Howell – City of Allegan. The County is still working on the jail question, trying to figure out how to make all the pieces fit together. They have purchased a building to be used for the new jail and now need to fund the project. The Saugatuck Film Festival happened last week. The County is beginning to receive revenue checks from the casino, which makes them happy.
Dan Massy – Osceola County. Yoplait in Reed City started the Northstar project which will enable the plant to process its milk locally instead of importing it from outside the county; it is a $20 million project. The “Quilt Trail” is finalized; residents display quilts made of wooden blocks; the project brings in tourism. Reed City schools cut out buses for students. Next services to be cut are the school librarian and other personnel.
Doug Zylstra – Ottawa County. He mentioned the broadband project. He asked Don Disselkoen about the White Pine Trail and the dispute with a local dairy farmer. Don said that he thought it is settled, with an alternate route identified that does not disrupt the farmer’s operations. Kirk Steudle, MDOT Director, says it’s approved.
Gregg Yeomans – At large. The Ionia County Planning Commission is starting work to update its master plan and zoning ordinance. How do they do that without meeting to talk about it? The Ionia Free Fair will happen in July; it will be a challenge getting around with the Dexter Street closure.
Leslie Wood commented that The Right Place is a good option for the Ionia Economic Alliance.
Joan Epperson – Ottawa County/CEDS Committee. She distributed a hand-out and talked about “Reference USA”, which is a tool for small business owners. Small businesses need to do research online and don’t always have access, which can be expensive.
Ray Steinke – Mecosta County. At their Commission meeting, they approved the purchase of a new ambulance.
Paul Bullock – Mecosta County. Green Township and Mecosta county formed a partnership to expand wireless internet service. Mecosta contributed the land and the Township provided the funding.
7. Staff Updates
D. Bee distributed his Staff Update (copy attached). The Update includes information in the categories of Economic Development, Transportation Planning, Member Projects/Initiatives, and Other. D. Bee very briefly reviewed the bulleted items.
8. Other Business
C. Mulholland said that a MAR (Michigan Association of Regions) committee is working with MAP (Michigan Association of Planning). There are currently three statutes that govern the organization of regions. The joint committee is working on developing a white paper that will update the relevant legislation to meet future needs. WMSA has a contract with business leaders to develop a pilot model. All regional groups need alliances and partnerships. There might be restructuring of regional entities.
D. Bee said that MAR met Tuesday. The new legislation they are working on is a long way from being introduced in the Legislature. Each of the regions feels differently about the process. We need more clarification before Region 8 would jump on board.
9. Adjournment
A MOTION WAS MADE By R. Steinke to adjourn. SUPPORTED BY T. Lindeman. MOTION APPROVED UNANIMOUSLY. The meeting was adjourned at 11:35 p.m.
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