MINUTES

Spring Lake Village

June 6, 2005

7:30 P.M.

Barber School Meeting Room

102 West Exchange

Spring Lake, Michigan

I. Call to Order

President Keller called the meeting to order at 7:38 p.m.

II. Pledge of Allegiance

III. Roll Call

A. Present: Filber, Fischer, Holland, Keller & VanStrate

B. Absent: Hall and Palma

On a motion by Fischer, support from Filber, the Village Council excused Council members Hall and Palma.

Yes: 3 No: 2 (VanStrate & Holland)

IV. Reports and Statements of Citizens:

Mr. Tom Craig, 319 Mark Street, asked what he needed to do to obtain a permit to build a garage.

Manager Cotton told him that he would need to get the permit application at the front office and then the permit application went to John Hansen for review and permit fee determination.

Mr. Craig said that there was a tree on the property behind his, which was rotting. Some of the branches from this tree are falling on to his utility shed and he asked if he had the right to cut them off.

Manager Cotton said that he could cut any branch overhanging on to his property.

Ms. Irma Vogt, 400 Lakeview Court, told the Village Council that “for sale” signs had been placed on the Village right of way for over a year and she was told that no one enforces the law on this.

Manager Cotton said that enforcement had been on a complaint basis and the signs were legal if on private property.

V. Consent Agenda

A. Approved the payment of the bills in the amount of $102,949.80.

B. Approved the minutes of the May 16, 2005 meeting.

C. Approved the closure of Prospect Street for July 9, 2005 from 8:30 a.m. to 10:00 p.m. with the use of Village barricades for the annual St. Mary’s Festival.

D. Approved a resolution to establish a Section 125 of the IRS code “cafeteria plan” and authorized the Village President and the Village Clerk-Treasurer to execute the resolution.

E. Reapproved the Liquor Control Commission Dance-entertainment Permit for “Grand Haven Investment, LLC” now doing business as “Grand Haven Waterview, Inc.”.

F. Rescheduled a public hearing initially set for June 6, 2005 and/or June 13th to June 20 and/or June 27^th at 7:30 p.m. to solicit public comment on a combined notice to the public of no significant impact on the environment and notice to the public of a request for release of funds for the proposed Lake Pointe Project and to use up to $400,000 of CDBG funds from the Michigan Economic Development Corporation for a total estimated investment of up to $8,000,000 at 917 West Savidge.

G. Set a public hearing for an Industrial Facilities Tax exemption on $200,000 of Bold Furniture new investment.

H. Approved a grant agreement with the Grand Haven Area Community Foundation for wayfinding signage in the amount of $6,000 and authorized the Village President and Clerk/Treasurer to execute the agreement. The grant award was for 50% of the cost for park, street end and canoe/kayak launch signs. The capital budget would be adjusted to reflect this change during the budget adjustment process.

I. Adopted a resolution of approval for revised Grand Haven-Spring Lake Sewer Authority rules and regulations.

J. Set a public hearing on a request by St. Mary’s Catholic Church to rezone 428 East Savidge and 425 and 427 East Exchange Street to “Public” from “Single Family Residential B” for June 20, 2005 at 7:30 p.m. at Barber School.

K. Approved a resolution nominating Westwind Construction for their Five Ten Properties project on West Savidge Street as the recipient of the 2005 Business Recognition Award.

On a motion by Fischer, support from Holland, the Village Council approved the Consent Agenda as presented.

Yes: 5 No: 0

VI. Report by the Village Clerk/Treasurer

A. Held a public hearing on the Final Development Plan for Lake Pointe Condominiums located at 917 West Savidge and approved of such plan and authorized the Village President and Clerk/Treasurer to execute the Planned Development Agreement.

Subject: This was the final step for the condominium and restaurant needed for redevelopment of the Graflex and old Fireside Design properties. The project included 34 condominium units and a 5,000 square foot restaurant in a four-story building. Bike paths would be placed on both sides and a restaurant/public parking area provided. The maximum height would be 65 feet. The sign would be ground mounted and would not include an electronic message board.

The Village was participating in this redevelopment through an outright grant of $25,000 from the TIF fund; application of a Brownfield TIF loan for up to $360,000 for demolition and environmental and an MEDC streetscape grant for $399,500. The Village’s investment in the land was being recognized through lease payments of $3,750 per year for a term of thirty years to enable guest-parking privileges for the condominium residents limited to 48 hours.

President Keller opened the public hearing at 7:52 p.m.

Community Services Director Hansen said that the plan was approved unanimously and enthusiastically at the last Planning Commission meeting and felt that the project would help spur future development in that area.

Suzanne Rudnitzki thanked the Planning Commission and village staff for being so helpful. She stated that there would be a dramatic improvement to the area and that she was excited about the changes. She added that there has been a great deal of interest in the project.

Council member Holland expressed thanks to the Rudnitzki’s.

President Keller said he was impressed from the start with the project and said that they made it the best project for all parties involved.

On a motion by Fischer, support from VanStrate, the Village Council closed the public hearing at 7:58 p.m.

Yes: 5 No: 0

On a motion by Holland, support from Fischer, the Village Council approved the Final Development Plan for Lake Pointe Condominiums located at 917 West Savidge and authorized the Village President and Clerk/Treasurer to execute the Planned Development Agreement after review by the Village Attorney.

Yes: 5 No: 0

B. Held a public hearing and subsequently established the millage rate and adopted the operating budget for fiscal year 2006 (July 1, 2005 to June 30, 2006).

Summary: Village staff prepared and reviewed the Village’s FY 2006 preliminary budget with the Village Council on April 18, 2005. The general operating expenditures were expected to increase 2.2%, or $26,627, compared to the estimated expenditures in FY05. The millage dedicated to the general operating purposes would decrease 0.1 mil. Local real estate property taxes for general operating purposes would increase from an estimated $696,137 to $745,628 in FY06. Local property taxes were the single largest source of revenue for the General Fund (58%).

Total operating revenues were projected to be $1,275,402. When compared to total expected operating expenditures of $1,218,646, a surplus of $56,756 was projected. The total year-end cash balance was estimated to be $240,972, or $49,662 above the 15% minimum Guideline.

The third year of a special three-year millage for major streets (1.0 mill) remained included in the non-general fund portion of the budget. These revenues covered the Village’s local match necessary to receive federal funds through the new West Plan Metropolitan Planning Organization. As an outcome, Lake Street and Liberty Streets were reconstructed in the spring of 2004 and portions of Meridian and Jackson were planned for FY 07. Unfortunately, Local Street needs were not eligible for funding assistance; their needs would be addressed when TIF hibernated as discussed in the capital plan agenda item that followed.

The overall millage was reduced to13.0619, (0.1 mil less than last year).

President Keller declared the public hearing open at 8:05 p.m.

Manager Cotton thanked the budget team for their work on the budget and pointed out to the Village Council some highlights of the fiscal year 05/06 budget, including: the NOWS $.04 water rate increase, which would be absorbed for this year, but a rate increase would have to be considered the following fiscal year and there was a twenty percent water debit service fee increase in this proposed budget.

President Keller pointed out to the council that the Sewer Fund was above the minimum fund balance.

Manager Cotton said that was the case, but that the Water Fund was below the minimum fund balance.

President Keller thanked Manager Cotton and staff for putting together a great budget, adding that it was nice to have a budget moving in this direction, a decrease in the millage rate, while maintaining a high level of services. President Keller went on to say that the millage rate allocated to support the Village’s share of Harbor Transit doubled and that it was a great service to offer the Village of Spring Lake’s residents without having to increase the total millage.

On a motion by Filber, support from Fischer, the Village Council closed the public hearing.

Yes: 5 No: 0

On a motion by Filber, support from Fischer, the Village Council approved the annual millage rate and adopted the FY06 operating budget.

Yes: 5 No: 0

C. Held a public hearing and subsequently adopted the fiscal year 2006 six-year capital program.

Summary: The 1997 Village Charter required that the Village Manager submit to the Village Council a five-year capital program no later than the final date for the submission of the annual operating budget. Recent state law required a six-year capital program. As a result, the capital program included: a general list of projects proposed to be taken during the next six fiscal years (revenues permitting), cost assessments, recommended time schedules for each improvement, and proposed methods of financing.

As per the Municipal Planning Act of 2001, the Planning Commission reviewed the six-year capital plan and made a recommendation. The Planning Commission reviewed the plan enclosed in this packet at their May 2005 meeting and provided the general recommendation that follows:

It was moved by Williams, seconded by Unkovskoy to approve the plan with a recommendation that the Village Council concentrated on the infrastructure needs especially on the north side of town. That these public safety issues should be the first priority. Additional issues should be looked at as funds become available, i.e., parks and recreation. Passed unanimously.

Further, Ms. Wheeler read a statement into the record regarding the Women’s Temperance Union Fountain and the need for its refurbishment.

Manager Cotton had intended to include the fountain and overlooked it. The last year of the attached plan was revised to add $20,000 for the fountain refurbishment. No other changes were made, pending Council preferences tonight.

Also attached was the Local Street rehabilitation plan. It might be modified by Council consistent with comments from the engineer in the preceding work session.

Experimentation with sand sheeting and chip and seal was planned for Longview and Franklin Streets respectively this summer.

President Keller declared the public hearing open at 8:24 p.m.

Manager Cotton gave an overview of the plan stating that it included all the goals of the Park and Recreation Board and those of all other Village commissions. He said that the Planning Commission wanted the water lines on the north side of the village tested and that in line camera work would be done on the mains before doing any road projects.

Community Services Director Hansen agreed that we needed to look at those mains and make a judgment call before replacing them.

Manager Cotton assured the council that a lot needed to be figured out before moving forward with the water spray park and the Grand River Greenway and making those expenditures.

Shannon McMasters, 412 E. Exchange Street, questioned the lack of sidewalks on the south side of West Exchange Street.

President Keller assured Mr. McMasters that the village was trying to get the sidewalk extended and pointed out that there were sidewalks planned down by VanPelts, that the sidewalk by Westwind’s new project was the village’s sidewalk and that the Wesco expansion plan was changing to add sidewalk.

On a motion by Fischer, support from Holland, the Village Council closed the public hearing at 8:32 p.m.

Yes: 5 No: 0

On a motion by Fischer, support from Holland, the Village Council adopted the FY06 Six-Year Capital Program, inclusive of the Local Streets rehabilitation plan.

Yes: 5 No: 0

VII. Report By the Village Manager

A. Approved fee increases for FY 06.

Summary: Recommended increases were in the fee section of the council packet. Several fees were recommended to increase, including a 20% adjustment to the water debt service to equal the extra debt service charges expected from NOWS due to the water intake repairs; zoning and planning fee increases; police impound fees; and operating under the influence fees.

Manager Cotton explained that the City of Ferrysburg were not implementing the OUIL or the impound fees, so any fees collected for the village would go to the general fund, not the police fund.

On a motion by Filber, support from VanStrate, the Village Council approved increasing the recommended fees for FY 06.

Yes: 5 No: 0

B. Authorized the Village Manager to author and execute a formal grant application from the Michigan Economic Development Corporation for the proposed Lake Pointe Project at 917 West Savidge as the certifying officer for the environmental, grant and other documents consistent with the attached Notice of Intent.

Summary: The timetable for this project was tight. A blanket authorization, consistent with the following plans and attached Notice of Intent, would expedite the ability for the property owners to close on the property and the Village’s streetscape plans to progress without waiting for additional council meetings.

The current plan was to assist this project in various ways resulting in a 5,000 square foot waterfront restaurant, 34 condominiums and 20 full time equivalent jobs.

This job creation qualified the Village for up to $400,000 of infrastructure and streetscape enhancements.

West Savidge Street was in disrepair and very much needed reconstruction. The streetscape was a mix of poor design and needed improvement. The MEDC was expected to approve the Notice of Intent and invited for $400,000 the Village to submit a full grant application. Meanwhile, the Chamber of Commerce completed the necessary State Historic and environmental submittals for the purpose of meeting the development timetable.

The eventual Community Development Block Grant application would be developed and placed on file with the Village Clerk/Treasurer for public review in advance of a required hearing in the next month. Public review was encouraged. Further, public notice would appear in the newspaper and be distributed to the adjacent neighborhood.

On a motion by Fischer, support from Holland, the Village Council authorized the Notice of Intent and authorized the Village Manager as certifying officer to complete and submit a comprehensive grant application if invited by the MEDC pertaining to streetscape for the proposed Lake Pointe Project at 917 West Savidge.

Yes: 5 No: 0

VIII. Reconvened the work session.

IX. Reports by the Village Council:

A. Conducted the Village Manager’s evaluation and accepted the report of the subcommittee.

President Keller thanked the council for the completeness of the evaluation forms. He said it was a very easy process, with all the scores being very high and all comments having had a positive theme.

Council member Holland said he was impressed with Manager Cotton’s loyalty to the Village of Spring Lake, his work ethic and excellent communications. Mr. Holland added that Manager Cotton’s community involvement was incredible and that he treated the Village of Spring Lake like it was his home.

Council member VanStrate said that Manager Cotton always went the extra mile.

Council member Fischer said he concurred with Council member Holland and the others.

Council member Filber said that Manager Cotton was the right man, at the right time, for the Village of Spring Lake and that Cotton set the standards for work e