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WEST MICHIGAN REGIONAL PLANNING COMMISSION
BOARD MEETING MINUTES
June 20, 2008
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
Thomas Hogenson – City of Big Rapids
Joseph Harper – City of Big Rapids
Gregg Yeomans – Ionia County
Shawn Seal – Ionia County
Ray Steinke – Mecosta County
Paul Bullock – Mecosta County
Marcia Walker – Montcalm County
John Johansen – Montcalm County
Tom Lindeman – Montcalm County
Edward Berghorst, Treasurer – Ottawa County
Mark Knudsen – Ottawa County
Chris Larson – Ottawa County
Lillian Vanderveen – City of Wyoming
Howard Hansen – At large
Staff:
David Bee – Director
Brandon Bartoszek – Planner
Nancy Murphy – Administrative Assistant
Guest:
Steve Redmond, Michigan Department of Transportation
2. Approval of Minutes
A MOTION WAS MADE BY R. Steinke to approve the minutes for the March 21, 2008, Board meeting as presented. SUPPORTED BY T. Lindeman. MOTION APPROVED UNANIMOUSLY.
3. Public Comments
None.
4. Guest Speaker – Steve Redmond, Michigan Department of Transportation
D. Bee introduced Steve Redmond, who is a Planner with the Grand Region of the Michigan Department of Transportation (MDOT). The Grand Region includes all the counties within Region 8 except the Counties of Allegan and Osceola.
Mr. Redmond presented information about the Transportation Funding Task Force (TF2), which was created in 2007 by the State of Michigan’s Public Act 221. The purpose of TF2 is to “review the adequacy of surface transportation and aeronautics service provision and finance” in Michigan. TF2’s review applies to roads, transit, and aviation. TF2 is assisted by the Citizens’ Advisory Committee (CAC). The Task Force will publish its preliminary data, findings, and recommendations by October 31, 2008.
The Task Force’s duties include (1) review of strategies for maximizing return on transportation investments; and (2) evaluation of potential alternative strategies to replace or supplement the following: State motor fuel taxes, existing and alternative user fees, and non-user revenues – with the goal of supporting economic activity and personal mobility in Michigan.
Primary focus areas of the Task Force are:
■ Examine alternatives to the fuel tax
● Analyze feasibility
● Suggest or recommend alternative user fees or non-user taxes
■ May recommend “implementation of pilot programs to test feasible alternatives” to the fuel tax
The Task Force is discussing the following considerations:
■ Need recommendations that are workable in the short run and sustainable in the long run
■ Need public education, especially about the rapid rise in the cost of construction materials
■ Explore bringing more federal investment dollars back to Michigan for all transportation modes
■ Consider steps to stretch current funds, and encourage regional coordination
■ Research what other states are doing
L. Vanderveen asked Mr. Redmond about how the Fair Tax proposal would impact transportation funding. Mr. Redmond replied that he was not sure how the gas tax would be affected by the Fair Tax system. He said that funds from the sales tax on gas go more to schools and other programs than to transportation. L. Vanderveen asked how rail fits into the proposal. Mr. Redmond said the CAC had sub-committees for intermodal freight and also for intermodal passenger transportation. Detroit is considering light rail, and Grand Rapids has a grant for bus rail transit.
C. Larson asked what ideas are being reviewed for alternatives to the fuel tax. Mr. Redmond said that ideas include more use of tolls, which are more feasible now due to improved technology, and also the creation of regional districts that would enable some areas in the state to have higher gas taxes than others. C. Larson asked how private operators of leased highways can be made responsible and held accountable. Mr. Redmond said that there would be a process that would have to be approved; concerns could be addressed through stipulations in the contract. C. Larson asked if one funding option might be leasing rest areas to companies like McDonalds. Mr. Redmond said there were issues involved with that option, with difficulties related to Federal roads. There is more flexibility possible with toll roads.
J. Harper said they had been shutting off the lights on the Mackinac Bridge to save money, and wondered if there are more possibilities for similar savings elsewhere. Mr. Redmond said that there is considerable savings possible related to electricity costs. An example is using more efficient light bulbs. J. Harper asked why lights are needed in some areas and not in others. Mr. Redmond said that the standards are different for different areas, with more lighting required for urban areas. He said that they are looking at all options that might save money. L. Vanderveen said that rural areas need fewer lights.
M. Knudsen said that many road construction companies give their employees very large bonuses at Christmas, and efficiencies are more difficult due to lack of competition because a small number of contractors are authorized to build public roads. He asked if that has changed. Mr. Redmond said that the State Legislature is looking at firms who have contracts over $1 million, and reviewing what companies are eligible.
G. Yeomans said that the money goes where the most people are. Mr. Redmond said that as a different perspective, Oakland County thinks that gas tax revenues collected in their county is spent disproportionately on the west side of the state. That is part of the rationale for a more regional approach – to distribute both the costs and the expenses more evenly.
C. Larson said that the fuel tax fund has spending restrictions. Mr. Redmond said that it depends on how it is divided. A comprehensive transportation fund can be used for public transit. We would have to change Act 51 that funds transportation, which would have to be done by April 2009.
T. Burns said that installation of a toll road would be very expensive. How much would we get back for our investment? We need to do more research on the costs of different options.
L. Vanderveen said that we have to carefully consider the impact that toll roads would have on the state’s tourism. Other states like Florida that have more attractions for tourists can more easily add toll roads and not be too adversely impacted.
D. Bee said that increased costs for construction materials are having a big impact on the costs to build and repair roads. Most people think that when gas prices rise, that revenues from the gas tax also rise, when that’s not the case. We need to figure out ways to better educate the public about actual costs and revenues.
5. Administrative Matters
Financial Statement
The Financial Statement was included in the meeting packet and covers the Fiscal Year 2008 through April 2008. D. Bee said we are more than halfway through the Fiscal Year. While the Statement shows more expenditures than revenues, it does not include receipts since April 30, which have been about $50,000. So today, expenses and revenues are about even. The Status of Grant Programs shows that our MDOT planning grant is at 87 percent, so we are stretching out the remainder to last until October. We did receive an increased amount for the bike map project. Asset Management expenses are never more than 75 percent of the allocated amount.
A MOTION WAS MADE BY G. Yeomans to accept and place on file the Financial Statement for the period of October 1, 2007 through April 30, 2008. SUPPORTED BY H. Hansen. MOTION PASSED UNANIMOUSLY.
Revised Budget
D. Bee said that we always adjust the annual budget in June, based on actual expenditures. He reviewed the proposed amended budget for Fiscal Year 2008, through September 30, 2008 and highlighted the proposed changes to the original adopted budget.
Revenues
● EDA – Special Project: changed from $7,500 to $2,500. We haven’t yet applied for a project, but there is always some potential.
● MDOT – Asset Management: Same. Most of these funds are passed through to the counties for their work on the road ratings.
● MDOT – Special Project: changed from $5,000 to $15,000. This project involves the bike map and we have received additional funds for this project.
● Recreation Plans: changed from $7,500 to $5,000. We have not had any new recreation plans yet, although we might work on a plan with the City of Allegan.
● Land Use Plans: changed from $5,000 to $7,000. We are working with the City of Big Rapids on their master plan. The actual total project cost will be $12,000, but that will be split between the current and the next fiscal years. The project amount might increase if we do the community survey ourselves.
Budgeted revenues were increased by over $5,000.
Expenditures
Expenditures are balanced to match Revenues.
● Salaries: the same.
● Fringe Benefits: these were increased based on actual expenditures through the first half of the fiscal year.
● Contractual Services: increased from $10,000 to $15,000 for costs associated with printing the bike maps; these funds are pass through from MDOT to the printer.
● Travel and Meetings: reduced from $14,000 to $12,000. It didn’t appear that we would spend as much in this category since our regular annual conferences are closer to Grand Rapids this year, including the planning conference in Kalamazoo. However, the Director will attend a conference this summer in Dearborn.
● Professional Development: reduced by $500, for the same reason as the Travel/Meetings reduction.
● Office Machines: reduced due to lower past and anticipated expenses.
● Printing: costs will be lower because the CEDS is now a three-year project, so we don’t need to print a full report this year.
● Special Events: This category is used for the December Board meeting, and the budget was changed to reflect the actual costs.
A MOTION WAS MADE BY H. Hansen to approve the Amended Budget for Fiscal Year 2008. SUPPORTED BY C. Larsen. MOTION APPROVED UNANIMOUSLY.
2009 Dues
D. Bee said that this time of year we send notices to member communities about their dues for the following calendar year, so they can use the information for their budget planning. Eight years ago, the Board set a three percent annual increase for member dues. For 2008, we did not raise the dues rate because so many of our communities are struggling financially. D. Bee asked the Board to consider the same action for 2009. He said that economic conditions continue to be difficult and any increase at this time might not be well received. The WMRPC will be able to continue operations without an increase.
A MOTION WAS MADE BY J. Johansen to waive the annual membership dues increase for 2009 and to maintain the rates used for 2007 and 2008 for all member counties and communities. SUPPORTED BY T. Burns. MOTION APPROVED UNANIMOUSLY.
MDOT Resolution
A MOTION WAS MADE BY R. Steinke to adopt the resolution to authorize the FY 2009 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 T. Lindeman. MOTION APPROVED UNANIMOUSLY.
Proposed Fee Policy
D. Bee reviewed the proposed change to the fee policy for non-member services. The proposed policy was included in the Board Meeting packet and reviewed and approved by the Executive Committee at its May 16 meeting. The proposed policy would just apply to non-members within the Region, which would be all of the communities in Kent County except the Cities of Grand Rapids, Wyoming, and Cedar Springs, which are members.
Previously, we had an informal policy that applied only to regional review of State and Federal grant applications. We charged $45 to non-member communities for this service. Our work for those regional reviews involves sending letters to surrounding communities with a potential interest in the grant project. After a 30-day comment period, we send a letter to the applicant, along with comments received, if any. We have been charging the fee only to governmental jurisdictions that have the option to become members. We do not charge non-profit organizations or for-profit companies that do not have that option. The proposed new policy would increase the fee to $75 per review.
We also receive master plans from local communities. The Planning Enabling Act requires communities to file their plans with the regional planning commission if the county does not have a planning commission, which Kent County does not. We have been filing these plans, and in many cases conducting a review of the plans and providing comments, without charging a fee to non-member communities.
The Michigan Department of Natural Resources (MDNR) also requires us to review recreation plans. We have not been charging non-members for this service either.
The proposed policy would charge a $75 fee to non-member communities for the review of master plans and recreation plans. If a community just wants to file the report with us, and not receive a review, there would be no fee charged. D. Bee said the new fee would offer a benefit for membership to Kent County, and current non-members within the county.
A MOTION WAS MADE BY L. Vanderveen to approve the Fee Policy for Non-Member Services. SUPPORTED BY H. Hansen. MOTION APPROVED UNANIMOUSLY.
Proposed Policy Review Policy
D. Bee said that he and the Executive Committee also thought that the WMRPC has a number of policies in effect and we do not currently have a formal process for periodic review and renewal of these policies. The proposed new Policy for the Review of WMRPC Policies would establish an annual review of all policies at the first Executive Committee meeting of the year. At that review, the Committee would consider whether each policy is adequately performing its intended function, determine which policies should be updated, and keep track of those policies with a sunset clause that are due for renewal. The Committee would decide which policies, if any, should be reviewed by the WMPRC Board for needed revision or to address expiring sunset clauses.
A MOTION WAS MADE BY J. Johansen to approve the Policy for the Review of WMRPC Policies. SUPPORTED BY T. Lindeman. MOTION APPROVED UNANIMOUSLY.
Private Sector E-Mail Committee
D. Bee and J. Harper had been discussing the option and benefits from establishing an E-mail discussion group for private sector representatives. The recent survey of Board and CEDS Committee members showed that there was no interest in any new committees that would involve attendance at additional meetings. However, we do need to encourage more private sector involvement from both the Board and the CEDS Committee, and an E-mail group might be an effective mechanism that would not involve a big time commitment for either members or staff, and no increased costs to the Region. It would be a way to have an ongoing dialogue about issues that interest the private sector, a chance to discuss their role within the Region, and to talk about other matters such as speakers they would like to have at meetings.
T. Hogenson said that such a group should not exclude public sector members because they might be interested in the discussion topics as well, and might like to keep informed about what is being discussed as well as make a contribution to the discussion. D. Bee said that the only people who would be left out would be those without E-mail capability.
City of Grand Rapids (added to discussion items)
D. Bee said that the day after the May 16 Executive Committee meeting, we received a letter from the City of Grand Rapids. The letter informed us that the WMRPC had been included in the category of human service agencies and that all funds for those agencies had been eliminated from the City’s next budget (which begins July 1, 2008).
D. Bee has been in contact with City officials and has attended a number of City Commission meetings. He told them about the value of the Region to the City, particularly related to EDA funding. He said that one EDA grant to the City would cover the cost of their dues for 211 years. He also emphasized the importance to them of active participation at our Board and CEDS meetings; the City has not had an active member for the past few years. We are continuing to talk to the City, and they have not ruled out the possibility of continued funding. D. Bee also talked to EDA representatives during their recent visit here and EDA thinks that it is essential that Grand Rapids continue to be a member of the Region because they are the largest city within the region. He will keep the Board updated about future developments.
6. Grant and Loan Opportunities for Local Communities
B. Bartoszek, Region 8 Planner, made a presentation to the Board about the updated Grant and Loan Opportunities for Local Communities report. Last updated in 2005, he completed the most recent update earlier this year. Copies were mailed to Board members and local officials that included City Managers and County Administrators. The 43-page report includes 178 grant and loan opportunities that are available to local communities and public agencies. Funding categories are economic development, transportation, water and sewer, parks and recreation, environmental, housing, and community facilities and cultural. The total funding potential is $1.2 billion. Some programs offer grants, others are loans, while some are a combination of the two.
The report is also available on the WMRPC’s website. D. Bee said that we have a few copies left and might have more printed. T. Burns said that the report is a good political tool and a valuable resource. L. Vanderveen said we should show the report to the City of Grand Rapids as an example of the good work that we do, and D. Bee said that he had taken copies to the City.
D. Bee said that he always emphasizes to communities that planning should come first. They sometimes ask him what funds are available. And he tells them that’s not the right question. It is important for communities to have a clear vision of their future, including a set of goals, and know which projects would be consistent with that vision and those goals. Then they should seek grants that fund those identified projects. He likes the example that tells people that they don’t go to Home Depot and build their house based on what is on sale there.
7. Round Table / Regional Issues
J. Harper – City of Big Rapids. “Michigan Wind” received an award from the Department of Energy, for the John Deere wind farm in the “thumb” area. There is a new project coming up in another part of the state. There is an expansion of wind generators throughout the state.
T. Lindeman – Montcalm County. They have a rail abandonment situation in the county. The operator of rail service from Elmdale to Greenville wants to abandon the service which goes to the old Electrolux warehouse. Northland Refrigeration in Greenville announced that they will be staying in the community and build a new plant and relocate their Indiana staff to the local plant. United Solar Ovonic in Greenville is expanding and looking for additional employees.
J. Johansen – Montcalm County. On April 14th the West Michigan Strategic Alliance (WMSA) accepted Montcalm County into their organization; the County worked to accomplish that for three years. Montcalm Community College lost grant opportunities because the County was not a member of the WMSA. The County was awarded a $30,000 grant from the Michigan Economic Development Corporation (MEDC).
G. Yeomans – Ionia County. The Ionia area is working with Sparrow Hospital to develop new facilities south of the City of Ionia near the airport. The County is considering a new court facility. The present court building is 100 years old. There are County funds set aside for the project, which will be developed during the next three to four years.
T. Hogenson – City of Big Rapids. The City Initiatives project will fund improvements to the downtown buildings’ facades; preliminary engineering bids are in process. MDOT will be doing work on the downtown area’s streets. The Art Works consortium for the area is working on new arts projects, including a possible arts incubator. The Big Rapids Public Library needs upgrades, but it is hard to fund improvements for an old building. They might renovate the old building or build a new facility. They are planning for the future, and might have a funding proposal on the ballot. Be sure to visit beautiful Big Rapids this summer!
H. Hansen – At-large. His employer has a housing development in Muskegon that will open next month – called the Comerica Tower. This weekend there will be a Downtown Parade of Living tour of downtown housing; two of his employer’s properties will be included. Adaptive reuse of older buildings generates affordable, centrally located housing, which is also an impetus to commercial development in the area.
C. Larsen – Ottawa County. It’s a good plan to try to keep more people downtown. The State’s new film incentives program is the most generous program of tax rebates and incentives in the country. The program should generate a lot of new business and be an excellent development opportunity for local communities. It will be critical for local communities to be prepared to react quickly in response to the needs of the film companies who consider production in their towns. Twenty-one projects have already been approved, with more in the pipeline.
There is potential for a lot of smaller projects by venture operators that could be good for local communities. They need to do research and “think outside the box”. Another area with great potential is wind energy. Communities have to be open-minded and keep zoning flexible.
S. Seal – Ionia County. The City of Ionia has a 425 agreement with Orange Township
for land transfer for Sparrow Hospital. The County has a capital improvements project for court security.
L. Vanderveen – City of Wyoming. Although there are economic challenges, there are also great opportunities. General Motors is closing some local plants, but will continue their plant in Wyoming. The City is 90 percent sure that Priceline.com will locate a new service facility in Wyoming, which will create 400 new jobs. Metro Hospital will have a new cancer building in partnership with the University of Michigan. Wyoming has a great City Commission and a good City Manager, with a “can do” attitude that makes projects happen and succeed.
M. Knudsen – Ottawa County. The County’s wind conference was very popular; 150 people registered, but 400 showed up. The County has a model ordinance for large ethanol production facilities. The current focus is on large corn producers. Their small ethanol production ordinance is for smaller farms for power for their property only and not for sale. A special needs permit is required if an ethanol plant is near residential development. They need to determine which communities along the lakeshore are good for off-shore wind energy.
T. Burns – Allegan County. The jail situation is bad, with a planning study funded. The County was severely hurt by the recent rain storms, with many communities and roads a major disaster. The emergency management team meeting identified areas of concern that included farmland, roads, public health and safety. They are applying for FEMA funds. Mitigation funds are important for disaster prevention. The closure of many roads with access to Lake Michigan is bad for the tourism business.
P. Bullock – Mecosta County. The Mecosta County Medical Center is in preliminary discussions with Spectrum Health in Grand Rapids to explore a possible merger. The hospital CEO and staff went to Greenville Hospital to ask them about their own merger with Spectrum years ago. They are in final negotiations for a Brownfield Redevelopment Authority. The Tullymore development includes upscale homes and a world-class golf course.
R. Steinke – Mecosta County. The Barryton tire cleanup project is done, with 1.5 million tires gone. D. Bee said the Village had called him to explore options for future development of the former tire site.
E. Berghorst – Ottawa County. The Governor recommended Ottawa County for disaster relief for damage from the recent storms. The County board approved a countywide Brownfield Redevelopment Authority. Now smaller communities will be able to get permits.
8. Staff Updates
D. Bee distributed a 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.
9. Other Business
The next Board Meeting is September 19, 2008.
10. Adjournment
A MOTION WAS MADE BY P. Bullock to adjourn. SUPPORTED BY T. Lindeman. MOTION APPROVED UNANIMOUSLY. The meeting was adjourned at 11:10 a.m.
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