I.    Call to Order

II.   Pledge of Allegiance

III.  Roll Call:

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

B. Excused: Hall

IV.   Reports and Statements of Citizens

No reports or statements of citizens were presented.

V.    Consent Agenda

A. Approved the payment of the bills in the amount of $338,012.54.

B. Approved the minutes of the June 21, 2004 meeting.

C. Authorized a combination of silent auction and garage sale to dispose of surplus office equipment and Village property located at the former temporary offices at 209 South Park and 921 West Savidge on Saturday, July 24, 2004 and subsequent Fridays as needed.

D. Authorized written consent approval for American Tower Corporation of Woburn, Massachusetts to place additional Wireless Communication Equipment on the Tower at 101 Rotary Drive for Centennial Wireless. This authorization did not displace a potential police radio repeater that was permitted by the existing agreement. The authorization brought the total number of co-located wireless providers to four and completed the number that can be co-located on the tower. The co-location would not increase the height of the tower and the base equipment would fit within the leased area.

E. Set a public hearing for August 16, 2004 to consider a request to transfer the former Industrial Facilities Tax Exemption granted to Harbor Steel in 1998 to GA Richards Plant 2, LLC, the new owner.

F. Authorized the reconstruction of the existing drive into the Spring Lake Yacht Club and expanded its width by up to one foot.

G. Approved use of surface rights over the future bike path, north of West Savidge Street, to deliver boats to Barrett's Marina for participation in the power boat races planned for August 13-15 in consideration of a donation toward the Lakeside Trail Gap completion and satisfactory insurance, and other protection of the subsurface water line.

H. Changed a public hearing on parking fines, Chapter 74-87 of the Village Code of Ordinances, from July 19, 2004 to August 2, 2004.

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

VI.   Report By the Village Clerk

No report by the Village Clerk was presented.

VII.  Report by the Village Manager

A-1 Extended the Project Cost Reimbursement Agreement between the Village of Spring Lake and the Northwest Ottawa Chamber Foundation.

Summary: The Village and the Chamber, dba Northwest Ottawa County Economic Development Corporation (NWOEDC), first entered into an option to purchase 901, 903 and 917 West Savidge Street for comprehensive redevelopment in March 2000. This option was extended on April 1, 2001 for three years.

Although the Waterfront Redevelopment Grant was approved for the old Fireside Design building in March 2002 and it was purchased in July 2002, the larger CDBG grant for public infrastructure was not ultimately approved by the HUD Detroit office in April 2003.

On March 24, 2004, the Council acknowledged a letter sent to Mr. Fletemeyer to allow the option to lapse, due to other priorities and the reduction in availability of State redevelopment resources.

The MEDC "Downtown Property Acquisition/Loan" program remained the only possible funding source; it came with plan amendments and strings attached, however.

The root of the problem was an optioned price that exceeds the market value. Mr. Fletemeyer provided the attached real estate taxable value and sales information that he believed was more indicative of value than the attached appraisal.

In June, Mr. Fletemeyer requested the Chamber to continue the option, in lieu of the Village's interest. His desire was to not have to relocate the industrial property being occupied by Graflex back to West Savidge. The Chamber agreed with this request until August 1, 2004. Mr. Fletemeyer requested an additional six-month extension beyond this point. The Chamber was agreeable if the Village concurred.

The options were to:

1) Allow the option to lapse and take a private sector market approach to these three properties' future land use while investing Village time and resources into other redevelopment opportunities. This had the risk that the property on 150^th may not sell for $650,000 and the Village's TIF fund would need to cover the difference up to $100,000; or

2) Agree to an extension to enable Mr. Fletemeyer more time to develop financing so he could buy out the Chamber's loan. There was no downside to this option, except for the staff time that this matter continued to occupy while it simmered and the time that would be needed to draw up an extension.

Village Council discussion was needed to determine whether the council would like to ask the Chamber to continue the option. The Chamber's role in this project had been to facilitate the Village's interests.

Council member Holland asked if the Chamber would be willing to go with the motion to extend the agreement for a period of six months from the sale of the property.

Joy Gausch from the Chamber said she didn't see any problems with the motion.

Council member VanStrate thanked the Chamber for all their work.

President Keller said that September 2005 was cutting the TIFA $100,000 encumbrance too close and that he would like to see a compromise of July 2005.

Council member Fischer said that the date didn't preclude planning by the Village Council as to what the encumbered money could be spent on.

Council member Filber stated that he did not feel comfortable with extending the agreement beyond the July 2005 date and that the funds of the Village of Spring Lake needed to be considered.

Council member Holland asked if the TIF funds had to be spent or just promised by the time TIF sunsets.

Attorney Sullivan said that the funds may not have to be spent by the sunset date, but just promised and that he would research.

Manager Cotton said that he feels the July 2005 deadline was prudent and he was not comfortable extending it any further.

On a motion by Fischer, support from Palma, the Village Council extended the Project Cost Reimbursement Agreement between the Village of Spring Lake and the Northwest Ottawa Chamber Foundation, which extension shall be for a period of six months from the sale of the property situated in Spring Lake Township, not to go beyond September 30, 2005 (i.e. the property must be sold by March 31, 2005). The applicant shall pay the cost of all legal fees associated with this extension.

A. Approved the list of items for inclusion in the time capsule and authorized its sealing by the rededication plaque.

Summary: Tonight's meeting was ceremonial to the extent it was located in the newly renovated Village Hall for the purpose of officially authorizing the sealing of the time capsule and approving its contents and inaugurating the new facility.

This meeting was also used to gauge whether the Village Council would like to hold occasional work sessions in Village Hall. The priority setting session meeting after the annual trolley tour and the budget work sessions are two likely meetings which might work better at Village Hall.

A list of time capsule's contents was provided for the Village Council's approval.

Council member Fischer suggested that the minutes of this meeting be signed by all Village Council members and Village staff present at the meeting before being included in the time capsule.

On a motion by Holland, support from VanStrate, the Village Council approved the items to be located in the time capsule and authorized its sealing by the Village Manager with the rededication plaque.

B. Approved a license agreement with Five Ten Properties, LLC for a non-exclusive use of Village right-of-way north of Exchange Street and west of Cutler Street for off-street parking in return for general public use of the provided parking and private sidewalks and associated streetlight, crosswalk and other improvements and authorized the Village President and Clerk/Treasurer to execute.

Summary: The concept of this license agreement was discussed with Council at a previous work session.

The agreement was for a ten-year term at no cost, other than a mutual exchange of benefits noted above. The original plan for this development did not include any parking along Exchange Street, let alone general public parking. Local citizens would use this parking as the Village's business district expanded to Exchange Street and for evening events at Mill Point Park. The developer also agreed to install decorative lighting and irrigation. The following agenda item recommended the Village's completion of the new streetscape being completed through installation of tinted concrete "pavers", landscaping and sidewalk extensions.

On a motion by Fischer, support from Filber, the Village Council approved the license agreement with Five Ten Properties, LLC for a non-exclusive use of Village right-of-way north of Exchange Street and west of Cutler Street for off-street angle parking in return for general public use of the provided parking and private sidewalks and associated streetlight, crosswalk and other improvements and authorized the President and Village Clerk/Treasurer to execute the agreement.

C. Accepted a quote from R.A. Holmes of Grand Haven for installation of 4" brick stamped concrete and six hundred feet of sidewalks north of Exchange Street and west of Cutler Street, in the amount of $18,960 and authorized the Village Manager to accept the proposal.

Summary: This project was budgeted in the TIF Fund from last year for $30,000. It represented the culmination of a joint public/private effort to begin the process of making Exchange Street function as a parallel business corridor for local traffic and make the Village's downtown rectangular instead of linear.

With approval of the previous agenda item and this work agreement, the Village accomplished a streetscape that was modeled after Savidge Street for a fraction of the cost if done alone. The tinted concrete would be similar to what was installed as part of the Village Hall project and was more cost effective than laying brick pavers. Westwind Construction paid for the curb and asphalt to accomplish additional parking and sidewalk.

R.A. Holmes did the work behind the Village Hall and also the Washington Avenue crosswalks in Grand Haven.

Also, with approval of this agenda item, the Village would install the tinted concrete and extend the sidewalk all the way to School Street to mark a crosswalk to tie into the bike path. The total anticipated project cost was approximately $21,460.

On a motion by Fischer, support from Filber, the Village Council approved the quote and expenditure of approximately $21,460 including the quote from R.A.Holmes of Grand Haven for installation of 4" brick stamped concrete and six hundred feet of sidewalks north of Exchange Street and west of Cutler Street in the amount of $18,960 and authorized the Village Manager to formally accept the proposal.

D. Approved rental of 209 South Park Street and authorized the Village President and Village Clerk/Treasurer to execute a rental agreement, subject to advance approval by the Village Attorney.

Summary: Rental of this building was advertised following discussion of the Village Council in a work session. The general intent was to initially rent this house and use its eventual re-sale as a bargaining chip to redevelop the area west of Tanglefoot Park to Mill Point Park over the long-term.

Five interested parties have emerged. One gentleman would like to rent for a minimum of two years. Another appears interested regardless of term.

This agenda item was provided to request authorization of Village Council to rent it for $700 per month without a dock and $900 per month during boating season and to provide blanket authorizations for execution of a rental agreement, subject to advance Village Attorney approval. All other terms would be subject to Village Manager and tenant negotiations.

The requested rent was set to ensure choice of renters and occupancy. It would return $8,400 per year. It covered the interest cost of $6,075 per year and approximately 60% of the expected taxes.

On a motion by Palma, support from Fischer, the Village Council authorized rental of 209 South Park Street by the Village Manager to the best individual for at least $700 per month and no longer than two years and authorized the Village President and Village Clerk/Treasurer to execute a rental agreement, subject to approval by the Village Attorney.

VIII. Reports by the Village Council

The Village Council conducted the annual Village Manager evaluation.

President Keller started by thanking the Village Council for their time in the evaluation process. He explained that the evaluation sub-committee (Palma/Keller) went over all the evaluations and provided an overall number.

President Keller presented the committee's three recommendations to Manager Cotton:

1) A rating of exemplary or excellent.

2) Compensation commensurate with an employee moving up a step and receiving a 3% cost of living raise ($69,092.40)

3) An overall goal to find a way to reduce the general millage rate within the Village of Spring Lake over the next several years and aggressively market the Village's image, especially Central and Mill Point parks and business assets.

Council member Filber told Manager Cotton that he truly appreciated him not counting his chickens before they were hatched.

Council member Fischer said that he was pleased with Manager Cotton's performance and that he was moving the Village in a direction that the council had been trying to move in for quite some time.

Council member Holland stated that overall he was very pleased with Manager Cotton's performance, especially the completion of the Village Hall.

Council member VanStrate told Manager Cotton that he was very impressed with his work in trying to improve the Village.

Council member Palma said that he realized that the Village Hall renovation was a big project that occupied much of Manager Cotton's time, but now that it was completed it would allow more time to pursue grants for the Village. Council member Palma said that Manager Cotton expressed his opinions, but knew and respected the Village Council vote.

President Keller praised Manager Cotton for his leadership skills in the process of choosing Roger DeYoung to be the police chief; his implementation of minimum fund balances; the Village Hall project for being on time, on budget, and its historic past kept because of Manager Cotton actively pursuing contributions; and his strengthening of the Village boards and commissions.

President Keller said that Manager Cotton's only weakness was not tooting his own horn. He also stated that Manager Cotton had high standards to which he held himself to; that he was imaginative; productive; optimistic, but didn't count chickens.

Manager Cotton expressed his appreciation for the Village Council's work on the evaluation and stated that it was a joy to work for the Village of Spring Lake and this council. Manager Cotton added that it was very much a team effort and thanked the staff for its contributions.

On a motion by Fischer, support from Filber, the Village Council adopted the evaluation committee's recommendations and made Manager Cotton's raise effective July 1, 2004.

IX.   Statements of Citizens

Shannon McMaster, 412 East Exchange Street, said he had been coming to the Village Council meetings for around a year and thanked the council for welcoming him. Mr. McMaster said he was impressed by the Village Council; the way it conducted business and how it treated the staff.

X.    Adjournment

On a motion by Palma, support from VanStrate, the Village Council adjourned at 8:45 p.m.