WEST MICHIGAN REGIONAL PLANNING COMMISSION

BOARD MEETING MINUTES

June 15, 2007

9:30 a.m.

1.  Call to Order.  E. Berghorst, Treasurer, called the meeting to order at 9:30 a.m.

Roll Call:

Terry Burns – Allegan County

Ken Graff – Allegan County

Mark Gifford – City of Big Rapids

Joseph Harper – City of Big Rapids

Pat Capek – City of Cedar Springs

Michele Andres – City of Cedar Springs

Gregg Yeomans – Ionia County

Shawn Seal – Ionia County

Paul Bullock – Mecosta County

Ray Steinke – Mecosta County

Marcia Walker – Montcalm County

Tom Lindeman – Montcalm County

Morris Langworthy – Osceola County

Edward Berghorst, Treasurer – Ottawa County

Spencer Bertram – City of Wyoming

Regina Davis – At large

Howard Hansen – At large

Tom Jessup – Allegan County (alternate)

Staff:

David Bee – Director

Brandon Bartoszek – Planner

Nancy Murphy – Administrative Assistant

Guest:

Greg Fox – Ice Mountain

2.  Approval of Minutes

A MOTION WAS MADE BY P. Capek to approve the minutes for the March 16, 2007, Board meeting as presented.  SUPPORTED BY Tom Lindeman.  MOTION APPROVED UNANIMOUSLY.

3.  Public Comments

None.

4.  Guest Speaker – Greg Fox, Midwest Natural Resources Manager, Ice Mountain

D. Bee introduced Mr. Fox and said that a few meetings ago, members had expressed an interest in meeting with a representative from Ice Mountain, which has operations in both Mecosta and Osceola Counties.  Mr. Fox said that he is a hydro-geologist.  Ice Mountain is part of the Nestlé Waters North America family of companies.  Nestlé has 8,500 employees in the United States, and 150 springs and 23 bottling facilities.  The company is a contributing member of its host communities.  Nestlé’s corporate philosophy is based on a single word – “respect”, respect for each other, respect for the environment, and respect for the communities where they live and work.

Nestlé is a recognized steward of the environment and built the Ice Mountain facility in Stanwood, in Mecosta County, to be environmentally sound; everything was built to meet “green” specifications.  They are also a “local” employer; nearly 90 percent of their employees live within 45 miles of the plant.  The financial impact to the local community has been considerable.  The plant has 265 full-time employees and an annual payroll of $16.5 million.  The Ice Mountain brand products include natural spring water, distilled water, drinking water, and flavored waters, all available in an assortment of bottle sizes.  While some of their brands are available nationally, other brands are distributed geographically in the U.S., including:

            Arrowhead in western states

            Ice Mountain in the midwest

            Ozarka in southern states

            Deerpark in the mid-east coast

            Zephyrhills in Florida

            Poland Spring in New England

In 2006, the Stanwood plant used 107 million gallons of spring water.  The company practices wise stewardship of water resources.  They are also a “green” leader, with their plant designed to meet green standards.  And they have formed a bond with the local community, with contributions of more than $1.0 million to local organizations.

Mr. Fox described the process the company follows to identify and develop their spring sources.  He said that they develop a source of spring water with the sole goal of creating no negative impact to the local ecosystem.  They constantly monitor their springs sites.  At the sanctuary they have 100 monitoring points, for testing stream flow, wildlife habitat, and water pressure.  Sensors placed onsite allow them to monitor conditions from the plant in virtual real time.  There are also automated monitoring points and scientists also go on site to monitor conditions.  They send the data that they compile to all interested parties (the State, local jurisdictions, and individuals).

The State of Michigan has a water withdrawal law, which went into effect in 2006.  That law puts a science-based focus on protecting water resources and ecosystems.  The standards protect water resources and maintain healthy water-dependent ecosystems.  The legislation regulates all high-capacity groundwater withdrawals, but not water usage.  No withdrawal is allowed that would result in an adverse resource impact.

S. Bertram asked a question about geologic conditions and water replacement.  Mr. Fox said that in an unconfined aquifer, the supply remains stable so long as water is not withdrawn too quickly so that the streams cannot be adequately replaced.  He said that they are very careful, and continually monitor conditions, and make sure that no wildlife is harmed.

Mr. Hansen asked what they would do if any harmful results did occur.  Mr. Fox said that they would change their pumping patterns.  For example, if there was a drought situation, the company would try to ameliorate the extra dryness.  That is one reason why they have alternate sources of water.

M. Walker said that she was no longer able to find bottles with sport tops and asked if they had discontinued this feature.  Mr. Fox said that they are still available in some places, and that they are more prevalent on larger size bottles.

Mr. Hansen asked if they have any non-spring water sources.  Mr. Fox said they have two wells in Mecosta County.

K. Graff asked the meaning of “natural” spring water.  Mr. Fox said that the FDA has specifications for that designation, including the presence of no biological activity.

G. Yeomans asked if Ice Mountain has competitors in the area.  Yes, in Grattan Township.  The companies are all regulated the same.

Responding to a question about their total gallons/minute numbers, Mr. Fox replied that their permits specify a maximum of 400 gallons/minute.  They average 218 gallons/minute.  They are also purchasing water from the City of Evart, which averages 300–400 gallons/minute.  There are also peak demand periods.

When asked about the shelf life of their bottled water, Mr. Fox said that wasn’t within his area of expertise, but he thought that it was possibly about two years.

M. Gifford asked if they are looking for new sites.  Mr. Fox said that they have the new operations in Evart, which is a spring water well field.  There is also another location in Osceola County that they are looking at.

Mr. Fox was asked about the potentially harmful chemical properties (like PET) in the bottles that they use, and he said that is not likely.  Bottled water is regulated as a food product, and not as public drinking water supply, so the specifications are more stringent.

T. Lindeman asked if they monitor the groundwater temperature and, if so, have they seen any change.  Mr. Fox said that, yes, they do monitor temperature, but they have not seen a change in the 5–10 years since they’ve been there.  Any groundwater temperature change due to global warming would take more like 20–50 years to become noticeable.

Mr. Fox said that regarding the company’s plans for the future, they are always looking for additional water sources.  They might have a new facility at the industrial park in Evart in 2010.

When asked about their bottles, Mr. Fox said that they make their own bottles, except for their 2-gallon size, which they buy.  The bottles that they make are blown resin and thinner than their competitors.  They use one-third less plastic and their bottles are cheaper to produce plus there is less material to recycle or to throw away.  They do not use recycled PET because it can’t be used next to food products.

P. Capek asked about their position on deposits for bottled water.  Mr. Fox said that deposits don’t affect Nestlé.  If the bottle costs more to buy, that affects retailers.  It won’t affect sales volumes because the deposit would be the same for all companies.  Nestlé does support recycling.

M. Gifford asked about water issues in the growing and more arid parts in the U.S. southwest.  Mr. Fox said that it is against Michigan law to divert mass amounts of water in pipes to other states and they wouldn’t ship 20-ounce bottles to the southwest to provide them with a water supply.  The problems in the southwest are related to bad aquifers and water sources that are not renewed.  He said that people should not live in areas when the land can’t support human settlements.

When asked if there is a problem with agricultural interests taking their water, Mr. Fox said that no, agriculture uses a thousand times more water than water bottling companies use.  Agricultural water use is not efficient; most irrigation water evaporates.

5.  Administrative Matters

Financial Statement

D. Bee reviewed the Board Financial Statement for the period of October 1, 2006 through April 30, 2007.  He said that although the statement shows higher expenditures than revenues, that is affected by the distribution of grants.  We have also received more grant payments since April 30th.  The bottom line is that we have money in the bank and are in good shape financially.

A MOTION WAS MADE BY G. Yeomans to accept and place on file the Financial Statement for the period of October 1, 2006 through April 30, 2007.  SUPPORTED BY Tom Lindeman.  MOTION PASSED UNANIMOUSLY.

Revised Budget

D. Bee said that we adopt the Fiscal Year budget every year in September.  By June of the following year, there have been changes, so we revise the budget at that time.  He reviewed the items listed in the Amended Budget column, including the following:

Revenues

• MDOT Non-Motorized Mapping – We spent less last year so there was more for this year.

• Coastal Management – We did not receive the grant we had applied for.

• Recreation Plans – We did more plans than we had anticipated.

• Land Use Plans – We did fewer plans than we expected, with no new plans yet.

• Hazard Mitigation – These reimbursement funds were written off last year, but we have now tried to secure the money still owed to us.

• Miscellaneous – The dollars in the original budget in this category were primarily payments for our work as the MAR Secretary, which we are no longer doing.

Expenditures

• The amount for Fringe Benefits was increased by $2,000.

• Professional Services – We are changing our accounting system this year from the old DOS version to a Windows based program.  The increased funds in this category will be used to purchase the new software.

• Contractual Services – Funds in this category are primarily Asset Management funds that we receive from MDOT to reimburse the counties for their expenses.  Our experience during the past few years has indicated that this dollar amount is lower than we had thought it would be.

• Office Machines – This category was increased to include payment for the laptop computer used for the Asset Management road ratings work.  This expense is covered by additional funds from MDOT.

• Printing – This increased amount will pay for the costs of printing 20,000 copies of the bike map.

• Equipment/Furniture – This amount was reduced because we have not have any expenses in this category yet.

A MOTION WAS MADE BY M. Gifford to approve the Amended Budget for FY 2007.  SUPPORTED BY G. Yeomans.  MOTION APPROVED UNANIMOUSLY.

MDOT Resolution

A MOTION WAS MADE BY T. Burns to adopt the resolution to authorize the FY 2008 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 S. Bertram.  MOTION APPROVED UNANIMOUSLY.

WMRPC Dues for 2008

D. Bee said that we send a letter to members this time every year to inform them of their dues for the next calendar year.  The courtesy letter mailed in June provides information they need for their budgeting process.  Each year there is usually a three percent per capita rate increase, in addition to an increase in population.  He said that this year many of our local communities are experiencing financial difficulties related to Michigan’s overall economy and financial issues.  He proposed that this year we waive the dues increase and maintain the rates used in 2007 for all member counties and communities.  He read a resolution he had prepared for the Board to authorize this action, and said that this was mostly a goodwill gesture for our members; the bottom line would be about $1,400 less in dues for the organization.

A MOTION WAS MADE BY M. Walker to adopt the resolution to waive the dues increase for 2008 and to maintain the rates used for 2007 for all member counties and communities.  SUPPORTED BY G. Yeomans.  MOTION APPROVED UNANIMOUSLY.

Approval of At-large Member

D. Bee told the Board about a proposed new At-large representative.  He is Howard Hansen, who is a local developer with the Sentinel Development Group.  He met him at the North Monroe Business Association.  The by-laws state that all new At-large members have to be approved by a two-thirds vote of the WMRPC Board.

A MOTION WAS MADE BY M. Walker to nominate Howard Hansen as an At-large member of the WMRPC Board..  SUPPORTED BY T. Lindeman.  MOTION APPROVED UNANIMOUSLY.

Changes Related to U.S. Economic Development Administration (EDA)

D. Bee said that we have been tracking the status of private sector membership in the Board and CEDS Committee in order to comply with EDA’s new regulations.  The Board is required to be at 35 percent private sector and with the addition of the new At-large member, Howard Hansen, the Board will be at 35.5 percent.  The CEDS Committee is required to be at 51 percent private sector and they are currently at 47 percent.  He said that EDA should not have any issues with the efforts that we have made in this area.

Member Request

D. Bee said that we had received a request from Ionia County’s economic development person, Diane Smith, to help with their proposed study to extend water and sewer to Orange County to serve an expansion for Sparrow Hospital.  The County wanted us to consider a contribution of $2,000.  Bill Weisgerber, the Orange Township Supervisor, had suggested the request to Ms. Smith.

The Board discussed the request.  G. Yeomans said that the Region’s time and expertise were more valuable than a monetary donation.  M. Gifford asked if there are other regions that do this kind of thing.  He said that if the WMRPC is going to make funds available in this manner, there are probably other townships that would also be interested in our support.  To be fair, we would have to have some sort of grant program and choose the best qualified applicants.  P. Bullock said that since the Region is basically running a break-even budget, we’re really not in a position to make this kind of contribution.  S. Seal said that as an Ionia County Commissioner, he will relay this response to the County.

Intergovernmental Cooperation Committee

D. Bee distributed a proposal he had prepared for the Board’s consideration (copy attached).  The proposal suggests that the Board form a new committee to study “intergovernmental cooperation”.  Committee membership would represent a variety of levels of local government.  The committee would identify existing collaborative efforts, potential collaborative efforts, and any obstacles to creating additional collaborative efforts.

E. Berghorst asked in what areas there would be collaboration.  D. Bee said that they range from law enforcement to parks to other areas.  E. Berghorst said that Ottawa County has made some progress in this area.

6.  Round Table / Regional Issues

P. Capek – City of Cedar Springs.  The City has a new Manager, Christine Burns; she came to them from Oxford.  The Library Committee has started their capital campaign.  They will soon start work on paving the White Pine Trail, from Cedar Springs to Sand Lake.  They are widening Pine Street from the city limits to downtown; the work will be full construction, including water and sewer; the path from the city limits to the new middle school will include new sidewalks.

T. Lindeman – Last Wednesday, Dave Bee came to Greenville for a meeting of the new Greenville Transportation Committee.  There have been complaints related to access to the city.  The meeting went well.  There were representatives there from Kent and Montcalm counties.  Electrolux is working on their deconstruction project.  The facility will be all torn down, except for the warehouse, and taken to the landfill.  Dr. Charles Ballard, from Michigan State University, will speak June 25th about state financing and its decline over the past ten years.

M. Walker – Montcalm County.  MEDC awarded a $30,000 grant to Montcalm County to fund an economic study.  The project will look at the County’s economic assets, weaknesses, and resources, and expand on some of the work that the City of Greenville has been doing.  The County’s Parks and Recreation Commission is working on developing a publication to promote tourism in the county.  Don’t forget this year’s Danish Festival, which will happen the third weekend in August, in Greenville.

G. Yeomans – Ionia County.  The Ionia County Memorial Hospital, which is south of the City of Ionia, is starting to look at a possible management partnership with Sparrow Hospital in Lansing.  They hope that such a collaboration will result in the advantages of a small town hospital being combined with the benefits from the expertise possible at a larger hospital.  The library millage was defeated.

R. Steinke – Mecosta County.  They received a $510,000 grant from the Michigan Department of Environmental Quality (DEQ) for tire clean-up in Barryton.  The DEQ extended the time limit for completion of the work.

P. Bullock – Mecosta County.  They received two Brownfields grants, for $200,000 each, for groundwater assessment.  They will bring in consultants to look for site assessments.

S. Seal – Ionia County.  There are detachment discussions with the City of Portland and Danby Township.  There will be a detachment vote in the November election.

T. Burns – Allegan County.  The Macatawa Area Coordinating Council (MACC) had a proposal for a focus group in Laketown Township to discuss mass transit across county lines.  They will look at what the needs are related to travel to destinations like Grand Haven and Kent County.  The Michigan State Police was interested in having a post at Saugatuck and the City offered them a place at City offices; the State Police now has four officers working there.  He asked about the M-40 group and D. Bee said that the M-40/M-89 corridor group meets quarterly; they review and update lists of long and short term actions at each meeting; the meetings are a good opportunity for communities to meet with MDOT and discuss issues.

T. Jessup – Allegan County.  The County is talking to Kalamazoo County and Kent County about a possible regional jail.  They looked at the county jail in Jackson, where they have a dorm style facility at a much lower cost ($8.3 million compared to $42 million for a regular jail).  The Jackson jail has medium security residents and they have not had any problems; the officers maintain good discipline.

M. Gifford – City of Big Rapids.  The City has received positive feedback from the Michigan Department of Natural Resources (DNR) regarding their two recreation grant applications.  One grant project would extend their Riverwalk and the other project is for acquisition of 50 acres for parklands.  Ferris State University has a $30 million expansion project, a new optometry building.  The City is planning big festivities for July 4th, including a parade, a concert at a band shell, and fireworks.

S. Bertram – City of Wyoming.  The City of Wyoming is working cooperatively with the City of Grand Rapids on a wastewater disposal project; they might try to sell it as fertilizer.  They are also working with the City of Walker on a 425 program for a project that might include bringing a Cabela’s to the area.  The City has a new splash park.  The City decided to close Lamar Park this Saturday after they learned that a group from Saginaw had plans to use the park for a large gathering and cause considerable damage.

M. Andres – City of Cedar Springs.  Several downtown buildings will be renovated, with new façades by the DDA.  The Red Flannel Festival organization purchased a building downtown; it will be nice to have actual bricks and mortar for their home.

E. Berghorst – Ottawa County.  Jerry Homminga, the former City Manager at Cedar Springs, is now the County’s Mental Health Director.  They have been having problems with Zeeland Hospital and public transit access; the hospital moved from the City of Zeeland to Zeeland Township and the Township does not participate with the City’s public transit system.  The Mayor of the City of Holland said that another industry will be leaving.  During the past four years, Ottawa County has gained an average of 1,000 jobs every year.

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 briefly reviewed the bulleted items.

8.  Other Business

D. Bee said that we should have a discussion about the new private sector members and what their role should be on the Board.  It is an evolving process.  He had asked EDA how the Region could maintain the interest of the private sector representatives and they said they would let the regions figure it out.  If Board members have any ideas, they should tell him.  We will all have to work on developing a more meaningful role.

The next Board Meeting will be September 21, 2007.

9.  Adjournment

A MOTION WAS MADE BY P. Capek to adjourn.  SUPPORTED BY S. Bertram.  MOTION APPROVED UNANIMOUSLY.  The meeting was adjourned at 11:10 a.m. 

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