Minutes Holland City Council Meeting Holland, Michigan, December 17, 2014

Transcription

1 Minutes Holland City Council Meeting Holland, Michigan, December 17, 2014 The City Council gathered at 5:00 p.m. in the Employee Lounge for supper and then met at 5:30 p.m. in the Training Center of City Hall, 270 River Avenue, for a study session and reviewed items on the agenda for this meeting. Members Present: Mayor Dykstra, Council Members De Boer, Trethewey, Peters, Burch, Vande Vusse, Hoekstra, Whiteman and Klomparens Members Absent: None Staff Present: City Manager Cotton, Assistant to the City Manager Van Dyken, Deputy City Clerk Perales and City Attorney Vander Veen A motion was made by Council Member Hoekstra, 2 nd by Council Member Trethewey, to enter into special meeting. Upon ROLL CALL the motion carried unanimously A motion was made by Council Member Hoekstra, 2 nd by Council Member Trethewey, to enter into closed session to review labor negotiations. Upon ROLL CALL the motion carried unanimously A motion was made by Council Member Whiteman, 2 nd by Council Member Hoekstra, to conclude the closed session Upon VOICE VOTE, the motion carried unanimously A motion was made by Council Member Vande Vusse, 2 nd by Council Member Trethewey, To adjourn the special meeting Upon VOICE VOTE, the motion carried unanimously The City Council met in regular session at 7:00 p.m. in the Council Chambers of City Hall and the meeting was called to order by Mayor Dykstra. Others Present: None Council Member Hoekstra led in opening prayer Consent Agenda After review, a motion was made by Council Member Trethewey, 2 nd by Council Member De Boer, To approve the consent agenda items which included the following Council Action numbers: , , , , , Minutes Approved Upon motion by Council Member Trethewey, 2 nd by Council Member De Boer, The minutes of the Regular meeting held December 3, 2014 were approved. Special Presentations and Recognitions $2,550 Gift Presentation to the Department of Public Safety Services, Police Division by Lost Creek Stone Recent unabashed criticism and generalized negative opinions of American police departments was weighing on Holland resident Michael Kanis so he decided to let the Holland Department of Public Safety- Police Services know how he feels about them. Mr. Kanis organized a fundraiser for the department,

2 ing Holland residents and telling them he wanted to say thank you to the police officers for their service. He raised $2,550. The money he raised is being put into the bullet proof vest fund. This will help the department replace the vests that can cost upward of $600 each and have to be replaced after a few years of use. A vast majority of police departments are doing a good job at a hard job, Holland Mayor Kurt Dykstra said, adding it s heartening to see members of the community stepping up to thank police at a time when much of the country is seeing protests and it s heartening to see members of the community stepping up to thank police at a time when much of the country is seeing protests. It s important to support locally the police who protect us. The police show up when they re needed, he said. As part of the thank you, every officer will receive a card. While the card reads Thank you! We appreciate you very much, as the primary message, it also contains a few personalized messages from those who donated as well that include keywords such as professional, impressed, excellence and fortunate. to accept for a total of $2,650, this includes a late donation of $100 Upon VOICE VOTE, the motion carried unanimously Oaths of Office Written Petitions and Communications The following executed oath of office were presented and filed: Joel Dye Amy Otis De-Grau Jack Lynn Jr. Wayne Klomparens Filed. General Matters Communications from the Audience Alfonso Mercado, 503 W. 23 rd Street, spoke about the National Night Out and thanked all involved. He also addressed the CSX train tracks and sidewalk off 16 th Street stating they are not level and unsafe Greenly Substation Property Lease Reports from Boards and City Officers Board of Public Works Board of Public Works report was presented advising that the purpose of this recommendation is for the approval of a lease between the City of Holland and Ronald Nienhuis. The Greenly Substation site has been leased on an annual basis by Ronald Nienhuis for several years. Ron Nienhuis pays $500 to farm the approximately 20 acre site as well as an additional $250 in legal fees. The leasing arrangement benefits the HBPW because there is no need for vegetation control on this parcel. The lease is through December 31, The lease has been approved as to form by the City Attorney. It was recommended to approve a lease between the City of Holland and Ronald Nienhuis for the amount of $750 for the 2015 calendar year Unit 8 Exhaust Plenum Replacement Board of Public Works report was presented advising that this recommendation is for replacement of the Unit 8 exhaust plenum and transition ducting at the 48th Street Peaking Station. The current exhaust plenum and transition ducting are corroded and failing and in need of replacement. Having been exposed to the weather the internal framework has corroded, allowing the protective plating to separate from the wall, causing the insulation to be blown out of the stack. The exhaust plenum structure has large cracks caused by thermal

3 cycling which is common on gas turbines used for peaking loads. Numerous repairs have been made to the exhaust plenum and transition ducting over the years to extend its life, with the most recent being in fall The structural integrity of the stack has deteriorated to a point that a full replacement is necessary. The bidders declined to bid on relining and upgrading the existing structure. The bidders selected for this project all had unique exhaust plenum and transition designs that addressed corrosion and thermal fatigue issues inherent with the original design. Moran Ironworks, Inc. is the recommended contractor for this work. While they have not produced an exhaust plenum or transition duct for a frame 6B gas turbine, they have produced plenums and ducting for smaller (Frame 5) and larger (Frame 7) General Electric gas turbines. Three bidders were invited to bid on this project. Moran Ironworks, Inc. was the lowest responsible bidder. Integrity Power Solutions, LLC declined to bid. Braden Manufacturing was the high bidder. Bidder Name Braden Manufacturing, LLC Moran Ironworks, Inc. Integrity Power Solutions, LLC Business Location Quote Amount Meets Specifications Previous POs Tulsa, OK $460,604 YES YES Onaway, MI $217,596 YES YES Tulsa, OK Declined NO NO It was recommended to authorize the Mayor and Deputy City Clerk to sign a contract with Moran Ironworks, Inc. in the amount of $217,596, along with a contingency of $82,431 to cover remedial additions that may be discovered when the old exhaust plenum and transition ducting are removed. This contract is within the budgeted amount for this project in FY WWTP Contract Amendment Board of Public Works report was presented advising that the Holland Area Wastewater Treatment Plant (WWTP) Administrative Subcommittee tasked with studying options for financing of the forthcoming capital improvement projects has recommended making an amendment to the contract to allow financing of the improvements to be split equally between the Southern Service Area and Northern Service Area. This modification is recommended as a first step toward similarly moving the WWTP capacity allocation from 70%/30% to 50%/50% in the future. In recent years, the Holland Area Wastewater Treatment Plant has experienced substantial increases in the strength of the waste being treated. As such, the facility is now in need of substantial improvements to both address aging equipment and increase the Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) capacity. Design is underway on these improvements; and current estimates are that a bond issue of $17-20 million, in addition to use of Equipment Replacement Funds, will be required to complete these improvements. At the April 29, 2014, meeting, the Holland Area WWTP Administrative Committee formed a subcommittee to study options for financing of the capital improvement projects. The subcommittee agreed that it should finance the project based on a cost split that more accurately reflects the current split of flows and loadings from the Southern and Northern Service Areas. As such, a 50%/50% split is outlined in proposed Subsection (e) of the included First Amendment to the 1998 agreement. It was also recognized during the subcommittee s investigation that it is important to adjust plant capacity allocations to similarly reflect the current flow and loading split. As such, the modification to Subsection 10(b) and proposed Subsection 11(c) of the included First Amendment have been developed to lay the groundwork for this future adjustment to allocations while correspondingly outlining how the interim period will be handled. This language is intended to allow for financing to proceed while the Committee works out the details of the transition from a 70%/30% capacity allocation split to a 50%/50% split. It was recommended to approve the included Amendment 1 and Appendix X to the 1998 Holland Area Wastewater Treatment Facilities 1998 Contract.

4 WWTP Bond Resolution Board of Public Works report was presented advising that the Holland Wastewater Treatment Plant is in need of several process improvements to ensure the efficient operation of the plant for the future. The projects are anticipated to require funding from issuance of bonds. The included Resolution to enter into the contract, on behalf of the City, with the assistance of the County to issue County of Ottawa General Obligation Bonds and to publish a Notice of Intent to issue the bonds and declare official intent to reimburse project expenditures with the proceeds of the bonds. The Wastewater Treatment Plant is planning several projects which combined are referred to as the Project in the bond documents. The bond funds will be used to finance improvement to the bio-solids process that will increase the solids handling capabilities, to optimize the secondary treatment process for additional Biochemical Oxygen Demand (BOD) capacity, and to construct a new chlorine contact tank for improved disinfection. The repayment of the bonds will be shared by the participating townships on a pro-rata basis in relationship to the flow and capacity shares. The revenue to pay the bond interest and principal will be received through rates. It was recommended to approve and authorize the contract to issue and the publication of a Notice of Intent of the Wastewater Utility, with the assistance of the County of Ottawa, tax-exempt bonds on behalf of the City under provisions of Act 342, Public Acts of Michigan, in an amount estimated to be $20,000,000. The bonds are to finance improvements to increase bio-solids handling, optimize secondary treatment process, and build a new chlorine tank. A motion was made by Council Member Vande Vusse, 2 nd by Council Member Trethewey, Energy Optimization Services Board of Public Works report was presented advising that Commercial & Industrial Services (C&I) is the largest component of Holland BPW s Energy Optimization (EO) program. This is a request to approve a one-year service agreement with Franklin Energy for program design, database, and technical engineering services on a time and material basis, not to exceed $50,000. HBPW has a goal on file with the state to save 9,164,355 kwh in the Commercial & Industrial sector in The savings goal is achieved by helping companies implement energy efficient equipment upgrades. For the past six years, BPW has contracted Franklin Energy, through the Michigan Public Power Association, to provide a turnkey C&I EO program to its customers. They have been a good partner in helping HBPW exceed mandated kwh savings goals. With success bringing the Residential EO programs in-house, we are in the process of a transition to bring the C&I program in-house starting January 1, 2015, which is the start of a program year. An energy efficiency engineer and an administrative assistant have been hired. With those additions, as cited in the plan, we anticipate needing program design, database, and technical engineering support as we transition. The proposed service agreement with Franklin Energy will provide continuity and a safety net as we train new personnel and put systems and processes in place. The agreement is on an on-call, as needed basis. This will help ensure seamless program delivery, that we achieve the savings goal, and maintain high customer satisfaction scores. In 2013, HBPW paid Franklin Energy $357,000 to design and implement the C&I Prescriptive and Custom programs. Additionally, $80,000 was spent on the Small Business Direct Install program, which included both product and services. It is estimated that this service agreement arrangement will help HBPW and the EO program save more than $150,000 annually. The savings can be realized as savings or directed toward wider program delivery and impact. It was recommended to approve a one-year, not to exceed, service agreement with Franklin Energy in the amount of $50,000, pending approval as to form by the City Attorney. City Clerk Claims Filed Against the City of Holland City Clerk report was presented advising that the following claims was filed against the City: Dan Paauwe Richard Ray

5 It was recommended that the claims be referred to the City Attorney and City s Insurance Carrier for consideration Finance November Financial Reports City Manager City Manager report was presented advising that included are the monthly reports for the November 2014 financials as prepared by the Finance Department and as reviewed by this office. This report represents of the 2015 Fiscal Year (July 1, 2014 to June 30, 2015). The monthly financial reports include the following: - Summary of General Fund Revenues by Account Classification; - Summary of General Fund Revenues and Expenditures by Department; - Summary of All Funds Revenues and Expenditures (including Capital Projects); - Fund Equity Changes Report; and - Capital Projects Report It was recommended that the November 2014 Monthly Financial Reports be received and filed Finance Receive Fiscal Year 2014 Financial Audit City Manager report was presented advising that to comply with state and local law, the City is required to conduct an independent audit each fiscal year. On December 10, 2014, the independent auditing firm of Rehmann Robson presented the fiscal year 2014 (July 1, 2013 through June 30, 2014) financial audit to the City Council/BPW Audit Committee. The report was also presented the entire City Council at the December 17 pre-council meeting. Council is requested to accept the report. City Council was provided with an unqualified opinion or clean audit and Management Letters for the City of Holland with no material findings, and a summary indicating each of the funds are in sound financial condition. In addition, the Single Audit Report was presented. The total net position of the City (including BPW operations) increased by $14,388,019 to $429,157,794. The General Fund Balance decreased by $325,052 leaving a balance of $3,716,988. An intentional drawdown was anticipated as Council approved an early payment of $935,000 on outstanding bonds during the course of the year. At the end of the fiscal year, revenues exceeded the amended budget by approximately $175,000 and expenditures were about $180,000 under the amended budget, leaving the fund in even better financial condition than budgeted. The City has now received the National Certificate of Achievement for Excellence in Financial Reporting consecutively from fiscal year 1992 through fiscal year The fiscal year 2014 audit will again be submitted by the Finance Department for this national award. In Michigan, about 10% of the cities and villages have achieved this certification. A copy of the annual audit is available for public inspection in the offices of the City Clerk, Finance Department, City Manager, and Herrick District Library. It was recommended that the Independent Audit as presented by Rehmann Robson for fiscal year 2014 be accepted. A motion was made by Council Member Trethewey, 2 nd by Council Member Whiteman, Parks and Recreation Services Award Bids for House Demolition at 598 Graafschap Road City Manager report was presented advising that Council approval to award a bid to demolish the house and garage at 598 Graafschap Road, adjacent to the DeGraaf Nature Center, to low bidder ECO Demolition, Inc.

6 at a cost of $9,500 is requested. Sealed bids were opened on December 16, 2014, with three (3) bidders as follows: Bidder Cost ECO Demolition $9,500 Specialized Demolition $9,800 Klaasen Construction $20,500 Council approved the purchase of this home from the Van Ark family on August 20, 2014 for $123,000 with grant, donation and City funds. The intention was to demolish the buildings and make improvements to the overall entrance to the DeGraaf Nature Center. A firm has been employed to assist in a plan for the drive approach, parking and landscaping, once the buildings are demolished. The initial budget for the demo and asbestos removal was $15,000. Funds for this will come from donations and the Founders Fund which is managed by the Community Foundation of Holland and Zeeland. It was recommended that Council award the bid for demolition of buildings located at 598 Graafschap Road to ECO Demolition Inc. at a cost of $9,500 to be paid from donations and the Founders Fund Public Safety Services Declare Items as Surplus City Manager report was presented advising that the Police Division of Public Safety has provided listings of bicycles to be declared as surplus. Included is a listing of bicycles acquired by the Police Division to be disposed of. Most of the items will be donated to 70 X 7 (a local not-for-profit group), that will be repaired and distributed to needy recipients in the area. The remaining bicycles that are considered to be more valuable (more than $50) will be picked up by Propertyroom.com which will be placed on their website with profits to be split between the City of Holland and that organization. It was recommended that City Council declare the described bicycles as surplus and staff be authorized to dispose of all items as indicated Gifts City Manager report was presented advising that the City Manager s office is pleased to report the receipt of the following gifts: Parks & Recreation Sal Perez Scholarship Chris Timmer $5.00 DeGraaf Nature Center Cindy Kapla (Environmental Education) $ Lugers Family Foundation (Land Improvements Project) $1, Georgetown University Energy Prize Anonymous donation to the November 13 th Reception $52.00 Holland Youth Connections Program The Peo Sisterhood International (PEO) Chapter BW of Holland $1, It was recommended that the donation be accepted with appreciation and the Finance Director be authorized to credit the amount to the proper account. Upon VOICE VOTE, the recommendation was adopted.

7 West Michigan Airport Authority Renewal of Management Agreement City Manager report was presented advising that since the Authority s inception in 2007, it has operated with a Management Agreement with the City of Holland. Through this Agreement, the City has provided the Authority with the staff to conduct its activities, including financial services. The Authority does not have any full-time staff and, to date, the City has provided portions of various staff positions to meet the Authority s operational and capital project needs. As of last July, the Authority entered into a contract with Greg Robinson to provide part-time Authority Manager Services. In addition to this appointment, the Authority continued to receive administration services from the City, in the form of financial services, project management, communication services and administrative support to the Authority Board. The Authority has been very fortunate to have the quality of staff that the City has provided over the years and wishes to continue this additional level of staff support. These are individuals that although they have numerous other responsibilities, have shown dedication to the Authority and always address Authority work in a timely, exceptional manner. The Management Agreement with the City has expired and it is proposed that the Authority enter into another Agreement with the City under similar terms. Included with this report is the proposed Agreement. The primary terms are: - A five-year term. There is a six month termination clause by either party. - Any references to the Interim Period in the original agreement have been eliminated. This Interim Period applied to the time between the creation of the Authority and the first vote to establish a millage. - The Agreement acknowledges that the Authority may hire its own staff to handle its activities during the term of the Agreement. - The Authority is responsible for applying for and receiving all airport grants. - If the Authority maintains its own Manager, the City cannot make expenditures without the approval of this Manager. - The administrative activities to be performed have been summarized in Exhibit A. The West Michigan Airport Authority reviewed this agreement on Monday, December 8, 2014 at their regularly scheduled meeting and unanimously approved this Agreement. That City Council approve the renewal of the Management Agreement; and authorize the Mayor and the Deputy City Clerk to sign the Management Agreement as approved as to form by the City Attorney Holland Area Wastewater Treatment Plant Financing City Manager report was presented advising that the Holland Wastewater Treatment Plant is in need of several process improvements to ensure the efficient operation of the plant for the future. The projects are anticipated to require funding from issuance of bonds. The included Resolution to enter into the contract, on behalf of the City, with the assistance of the County to issue County of Ottawa General Obligation Bonds and to publish a Notice of Intent to issue the bonds and declare official intent to reimburse project expenditures with the proceeds of the bonds. The Wastewater Treatment Plant is planning several projects which combined are referred to as the Project in the bond documents. The bond funds will be used to finance improvement to the bio-solids process that will increase the solids handling capabilities, to optimize the secondary treatment process for additional Biochemical Oxygen Demand (BOD) capacity, and to construct a new chlorine contact tank for improved disinfection. The repayment of the bonds will be shared by the participating townships on a pro-rata basis in relationship to the flow and capacity shares. The revenue to pay the bond interest and principal will be received through rates. It was recommended to approve and authorize the contract to issue and the publication of a Notice of Intent of the Wastewater Utility, with the assistance of the County of Ottawa, tax-exempt bonds on behalf of the City under provisions of Act 342, Public Acts of Michigan, in an amount estimated to be $20,000,000. The bonds are to finance improvements to increase bio-solids handling, optimize secondary treatment process, and build a new chlorine tank. A motion was made by Council Member Vande Vusse, 2 nd by Council Member Trethewey,

8 Macatawa Area Coordinating Council Annual Appropriation for Dues ($33,481) and Watershed/Storm Water Program ($24,232.73) City Manager report was presented advising that the Macatawa Area Coordinating Council (MACC) is comprised of nine (9) full governmental members and 14 total dues paying members: the cities of Holland and Zeeland, the townships of Park, Holland, Zeeland, Fillmore, Olive, Port Sheldon and Laketown; Allegan and Ottawa Counties; the Allegan and Ottawa County Road Commissions; and the Macatawa Area Express (MAX). The MACC serves as the Metropolitan Planning Organization (MPO) for the Holland / Zeeland area as required by the federal government in order to be eligible for various highway and transportation funding. The MACC has also provided coordinating services for a number of other projects such as the Watershed Initiative and the study of M-40 improvements. The MACC is established by a special agreement between the governmental units and the dues for membership have been set at a not-to-exceed $1 per capita. The MACC Policy Board uses census data to determine the dues for each of the units and may consider other population data as appropriate in those years for which the United States Census Bureau does not conduct a census. The dues for the counties, road commissions, and MAX are based on an alternate formula. The 2013 population estimate for the City used in the MACC dues assessment was 33,481 (26,452 Ottawa/7,029 Allegan). Therefore, the MACC has submitted an invoice in the amount of $33,481 for the City s Fiscal Year (FY) 2015 membership dues. The FY 2015 City budget includes $32,500 for this purpose. The other major function of the MACC is the coordination of the Macatawa Watershed project. The FY 2015 allocated cost to the City of Holland for this program is $24, The FY 2015 Street Capital Improvement Fund includes $30,000 for storm water / watershed activities. Enclosed with this report is the dues request from the MACC, including the dues being requested from all participating members. It was recommended that the amount of $33,481 be approved for the general operating support of the MACC; and that $24, be approved for the Watershed project; with these amounts to be funded from the funds as described in this report. A motion was made by Council Member Peters, 2 nd by Council Member Hoekstra, General Matters Communications from the City Manager City Manager Cotton reported on the following: 1. Windmill Island Grant - $300,000 and one in the works 2. Staff Christmas trees to be voted on by Council, winner announced at the Christmas luncheon 3. Opportunity to become a Friend of Windmill Island 4. Thanked Assistant to the City Manager Van Dyken and his team for the new chairs in Council Chambers 5. CATV, 60 second clip shared with the public A Year in Review Communications from the Mayor Appointments, Reappointments and Resignations Appointments: Bryan Gras to the Neighborhood Improvement Committee, 3 year term to expire January 30, Jane McCarthy to an uncompleted term on the Human Relations Commission, term to expire June 30, 2016 Alex Calder to the Compensation Commission, 7 year term to expire November 30, 2021 Reappointments: Philip Coray. Human Relations Commission, three year term to expire June 30, 2017 Kathy Beal, International Relations Commission, three year term, expiring June 1, 2017 Roberto Jara, Police Community Relations Commission, one year term expiring December 30, 2015 Anna Clawson, Police Community Relations Commission, one year term expiring December 30, 2015 John Jobson, Police Community Relations Commission, one year term expiring December 30, 2015 Eduardo Solis, Police Community Relations Commission, one year term expiring December 30, 2015 Steve Turrell, Police Community Relations Commission, one year term expiring December 30, 2015 Linda Loggins, Police Community Relations Commission, one year term expiring December 30, 2015

9 Theenda Yarbrough, Police Community Relations Commission, one year term expiring December 30, 2015 Kyle Raak to the Police Community Relations Commission, one year term expiring December 30, 2015 Resignations: Shannon Garrett has resigned from the Human Relations Commission sighting personal and family reasons. Tracey Hoesch has resigned from the Human Relations Commission due to personal reasons. A motion was made by Council Member Trethewey, 2 nd by Council Member Whiteman, To accept the appointment(s) Upon VOICE VOTE, the motion carried unanimously. General Matters Mayor Dykstra encouraged residents to visit for contact information and to share with council their thoughts on various issues. The City can also be contacted via Facebook and Twitter. Mayor commented that this has been a momentous year for the city stating we have gone through trying times as a community. He believes 2014 is the year to see a breakthrough organizationally and sustainability. All of these things and many more creates a great community for all of us. Motions and Resolutions by Council Members Appointments, Reappointments and Resignations Reappointments: August Overway, Board of Review for a three year term, expires January 1, 2017 Andy Sharp, Board of Review for a three year term, expires January 1, 2017 A motion was made by Council Member Vande Vusse, 2 nd by Council Member Trethewey, To accept the appointment(s) Upon VOICE VOTE, the motion carried unanimously Adjournment Upon motion by Council Member Trethewey, 2 nd by Council Member Peters, The Council adjourned at 8:21 p.m. Respectfully Submitted, Anna Perales Deputy City Clerk