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Meeting Minutes

FINANCE & PHYSICAL RESOURCES COMMITTEE MINUTES

Tuesday, December 5, 2000 - 8:30 a.m.

Board Room - County Administration Building

MEMBERS PRESENT: Chair David Morren; Commissioners Jack Boelema, Katherine Kuhn, Pat Malone, Paul McGuire, Michael Sak, and Fritz Wahlfield.

MEMBERS ABSENT: Commissioners Harold Mast and Elaine Buege (excused).

ALSO PRESENT: County Administrator Daryl Delabbio; Assistant County Administrator Alan Vanderberg; Executive Assistant to the Board Jim Day; Civil Counsel Sherry Farrens; Management Analyst Deborah Kauffman; Human/Community Services Coordinator Mary Swanson; Information Technology Director David Boehm; Purchasing Manager Jon Denhof; Fiscal Services Director David Waichum; Commissioner Jim Talen; Deputy Director of Public Works Doug Wood; Deputy Director of the Health Department Barb Terry; Finance and Administration Director at the Airport Brian Picardat; Administrator at Circuit Court - Family Division Jack Roedema; Director of John Ball Zoo John Lewis; Director of the Parks Department Roger Sabine; Director of Kent/MSU Cooperative Extension David Guikema; Director of Community Development Ronald Stonehouse; Labor Counsel Tom Drenth; Director of Human Resources Frank Klus; and Senior Administrative Specialist Sandra Winchester.

NEWS MEDIA: Grand Rapids Press; and Fox News.

Mr. Morren called the meeting to order at 8:30 a.m.

I. PUBLIC COMMENT

None.

II. CONSENT AGENDA

Approval of the Minutes of November 21, 2000
Auditing of Checks and Purchase Order Activity - See Attachment A
Road Commission - $1,586,597.31

Warrants - 3272 to 3844 for period ending November 17, 2000
Circuit Court - Family Division - Community Policing and Court Partnership Program Application and Budget Adjustment - Bd. 12/14
Community Development - Approve Awarding Bid to Feyen-Zylstra, Inc. and Authorize Board Chair to Sign Contract - Bd. 12/14
Health - Budget Increase for Healthy Kent 2010 - Bd. 12/14
Kent/MSU Cooperative Extension - Accept Funds from ACSET and Rental Property Owners Association, Amend Budget and Memorandum of Agreement - Bd. 12/14
Kent/MSU Cooperative Extension - Accept Funds from Grand Rapids Public Schools Even Start Program, Amend Budget, and Memorandum of Agreement - Bd. 12/14
Kent/MSU Cooperative Extension - Grow Grand Rapids Grant Application, Contract, and Budget Amendment Approval - Bd. 12/14
Purchasing - Surplus and Confiscated Goods Auction Results - October 26, 2000
Various - CIP Expenditures

Mr. Boelema moved to approve the Consent Agenda as presented.

Supported by Mr. Malone.

Motion carried.

III. ADMINISTRATOR'S OFFICE - CONTRACT WITH DELTA STRATEGY

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to enter into a contract with the Delta Strategy to provide community information and problem-solving dialogues around issues of County and community interest for the period of January 1, 2001, through December 31, 2001. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

The Delta Strategy is a problem-solving initiative designed to bring together organizations and individuals to address community-wide issues. As part of this process, the Delta Strategy convenes groups of stakeholders in problem solving and provides outcome and other measurement data to the community regarding to these issues.
Several of the issues addressed by the group are part of or consistent with the activities of the County including community health, economic development, employment, and public safety.
The County will be able to utilize the Delta Strategy to relay information to the public and receive input as a result of Delta Strategy work sessions.

The cost is $3,000, and funds are available in the 2001 Budget for Management Studies.

Mr. McGuire moved to recommend to the Board of Commissioners approval to enter into a contract with the Delta Strategy to provide community information and problem-solving dialogues around issues of County and community interest for the period of January 1, 2001, through December 31, 2001.

Supported by Mr. Boelema.

Ms. Kuhn asked why the County should be involved.

Mr. Delabbio stated that he and two other Administrative staff are members of the Delta Strategy team. The County provides valuable input, which is used by Delta in their annual community report.

Motion carried.

IV. AERONAUTICS - ADVANCE FOR THE AERONAUTICS FUND

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to authorize the advance of up to $3,000,000 from the General Fund to the Aeronautics Fund during the period January 2, 2001, through December 31, 2002. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

Aeronautics staff has requested the capability of the General Fund to advance up to $3,000,000 to the Aeronautics Fund during the period January 1, 2001, through December 31, 2002.
Aeronautics staff provided a five-year projection (2001-2005) and analyses indicating the Aeronautics Fund may experience a short-term cash flow need during this period.
The analyses indicated that the Aeronautics construction funds might reach a low of $1,000,000. Although Aeronautics staff believes that based on historical needs, this amount would be sufficient and no advances will be necessary, both Aeronautics and Administrative staff believe it to be in the best interest to provide for an avenue of relief in the event that all assumptions used in the projections did not prove accurate.
Details of repayment terms, including interest charges at the current Money-Max rate during the term of the advance, would be negotiated between the Administrator/Controller and Aeronautics staff and reported to the Finance and Physical Resources Committee in the event that any advance is made.

No funding is required at this time. If an advance is made, cash will be transferred from the General Fund Cash Account to the Aeronautics Cash Account.

Mr. McGuire moved to recommend to the Board of Commissioners to authorize the advance of up to $3,000,000 from the General Fund to the Aeronautics Fund during the period January 2, 2001, through December 31, 2002.

Supported by Mr. Malone.

Mr. McGuire asked if this would affect the County's bond rating.

Mr. Delabbio stated it should not affect the rating at all.

Motion carried.

V. HUMAN RESOURCES - APPROVAL OF LABOR AGREEMENT - UAW - GENERAL/COURT

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to approve a four-year labor agreement for the period of January 1, 2000, and ending December 31, 2003, between the County of Kent and the United Auto Workers Local 2600 representing a variety of classifications assigned to county departments and courts. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

The Negotiating Committee recommends approval of a four-year labor contract with the UAW. A copy of the proposed contract agreement is on file in the Board of Commissioners' Office.
The salary and fringe benefit increases will result in a cost of approximately $13.9 million for the length of the contract.
The contract affects 870 full-time employees and 104 part time employees.
The proposed contract has been ratified by the membership.
The Legislative and Human Resources Committee recommended approval of this agreement at its November 28, 2000, meeting.

The cost is $13,897,047 over the length of the contract.

Mr. Sak moved approval to recommend to the Board of Commissioners a four-year labor agreement for the period of January 1, 2000, and ending December 31, 2003, between the County of Kent and the United Auto Workers Local 2600 representing a variety of classifications assigned to county departments and courts.

Supported by Mr. McGuire.

Mr. Sak stated he is very pleased to see the resolution of this contract. He said it is critical in the years to come to look at the factors impacting the lives of the County employees, and be sensitive to their concerns. If possible, Mr. Sak said perhaps the negotiations could start a little earlier to get a timely contract approval.

Mr. Malone commended Mr. Klus and Mr. Drenth of the Human Resources Department, and County staff for all of their hard work in getting this contract settled. He said good communication between management and employees is essential during negotiations.

Ms. Kuhn asked what the percentage of the vote was in favor of the contract.

Mr. Delabbio stated approximately 80 percent.

Motion carried.

VI. JOHN BALL ZOO - CONSULTING SERVICES AGREEMENT

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners an agreement with Professor Kenneth Polakowski for consulting services related to improvement of the park areas of the John Ball Zoological Garden for a base fee amount of $14,000 plus expenses not to exceed 14% of the base fee. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

Kenneth J. Polakowski, Professor Emeritus, University of Michigan, has vast experience in teaching and practicing landscape architecture and design. In particular, he has worked on several projects involving multiple-use park sites such as ours.
Professor Polakowski will assist the County/Zoo by evaluating the potential uses of the park areas of John Ball Zoological Garden and offer planning ideas for park development to facilitate those uses.
Professor Polakowski will begin work in December of this year and is projected to complete his work in May 2001. An amended zoo master plan amendment schedule is included, which shows the plan completion occurring in July of 2001 if all goes according to plan.
Professor Polakowski's fee will be $14,000 plus 5% of this amount for expenses. Total compensation could reach, but not exceed, $16,100.

The cost is $14,000 base fee and up to $2,100 in related expenses. Funds are available in the 2001 Zoo Operating Budget.

Mr. Sak moved to recommend to the Board of Commissioners approval of an agreement with Professor Kenneth Polakowski for consulting services related to improvement of the park areas of the John Ball Zoological Garden for a base fee amount of $14,000 plus expenses not to exceed 14% of the base fee.

Supported by Mr. McGuire.

Mr. Sak stated he is happy to see an outside consultant being hired to look at the Zoo and Park. He is hopeful that a consensus and understanding relative to this issue will be reached for the community

Mr. Boelema stated that the County Board has clearly illustrated it has an interest in working with the community on this issue.

Motion carried.

VII. PARKS DEPARTMENT - PROPERTY ACQUISITION FOR MILLENNIUM PARK PROJECT - HUNDERMAN PROPERTY

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners the purchase of 6.0 acres of property and accept donation of 1.5 acre of property located at 3770 River Bend Drive, Walker, Michigan, for the Millennium Park Project for $135,000 plus certain transaction expenses. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

The subject parcel consists of a total of 7.5 acres. The Seller has requested that the County purchase 6.0 acres and accept the remaining acre and a half as a donation for tax purposes of the Seller. The parcel is strategically located for development of Millennium Park as it borders Johnson Park on one side and Phase I of Millennium Park on another side.
Grubb & Ellis - Paramount is the real estate firm representing the County for many Millennium Park land purchases. Grubb & Ellis staff has prepared a comparable analysis that supports $135,000 as a reasonable price for this parcel. Other property transaction expenses to be paid by the County per the enclosed agreement include survey, title insurance, transfer/revenue tax, and recording fees. Grubb & Ellis will be paid a maximum 5% fee for purchases that they represent the County is based on a formula. The maximum potential fee due to Grubb & Ellis per this purchase is $6,750.
Chair Heacock signed the enclosed West Michigan Regional Purchase Agreement pursuant to Board Policy.

This cost is $135,000 plus closing expenses and realtors fee from the Millennium Park CIP.

Mr. McGuire moved to recommend to the Board of Commissioners the purchase of 6.0 acres of property and accept donation of 1.5 acre of property located at 3770 River Bend Drive, Walker, Michigan, for the Millennium Park Project for $135,000 plus certain transaction expenses.

Supported by Mr. Boelema.

The Committee briefly discussed the Millennium Park acquisitions thus far, and the property to be hopefully purchased in the future. A copy of the diagram is on file in the Board of Commissioners' Office.

Motion carried.

VIII. PARKS DEPARTMENT - PROPERTY ACQUISITION FOR MILLENNIUM PARK PROJECT

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners the purchase of 12.6 acres of improved property located at 3886 Butterworth in Grand Rapids from the U.S. Bankruptcy Court for $160,000, plus any necessary closing expenses and realtors fees. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

The subject parcel consists of 12.6 acres with a 1,446 square foot two-story house.
Court documents include an appraisal from the trustees' appraiser in the amount of $171,900. The Bankruptcy Court approved the sale of the property to the County, over the objections of the attorneys for the bankrupt party.
This property is also strategically located as it is contiguous to the Millennium Park Phase I area and to the Elmer Hunderman, Jr. property which is contiguous to Johnson Park.

The cost is $160,000 plus any necessary closing expenses and realtors fee. Funds are available in the Millennium Park CIP Budget.

Mr. McGuire moved to recommend to the Board of Commissioners the purchase of 12.6 acres of improved property located at 3886 Butterworth in Grand Rapids from the U.S. Bankruptcy Court for $160,000, plus any necessary closing expenses and realtors fees.

Supported by Mr. Boelema.

Mr. Sak encouraged staff to look at social agencies that may be interested in moving/fixing up some of these homes that will be purchased by the County.

Motion carried.

IX. PARKS DEPARTMENT - PURCHASE OF LAND FOR LOWELL REGIONAL PARK

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners the purchase of 99 acres of land from the Graham Family Trust for future development of a regional park in Lowell Township for a total of $480,000, County funds of $190,2000. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

Purchase of property for future development of a regional park in Lowell Township is included in the 1998 Kent County Parks, Recreation, and Natural Areas Master Plan.
The County has already purchased 140 acres in this area and the subject parcel is contiguous to land owned by the County.
The Board of Commissioners authorized submission of a grant to the Michigan Department of Natural Resources (DNR) in the fall of 1998 (Resolution #9-10-98-115 ) for purchase of this property that was subsequently approved.
The County local match is $190,200. The DNR grant will pay $273,350 and the Frey Foundation will contribute $16,450 toward this purchase. The total price is $480,000.
The Board of Commissioners has already authorized payment of $100,000 to the Graham Family Trust, which has been paid. This $100,000 was pre-paid (Resolution #2-24-00-20) in two installments of $50,000 each in order meet the needs of the Graham Family Trust due to an extended amount of time utilized by the DNR to complete the necessary land appraisal and review.

The total cost is $480,000. County $190,200 ($100,000 prepaid); State $273,350; Frey Foundation $16,450; and authorize final payment from Parks Acquisition Fund CIP.

Mr. McGuire moved to recommend to the Board of Commissioners the purchase of 99 acres of land from the Graham Family Trust for future development of a regional park in Lowell Township for a total of $480,000, County funds of $190,200.

Supported by Ms. Kuhn.

Ms. Kuhn stated she is excited about the purchase of 120 acres of land today for the future citizens of Kent County.

Motion carried.

X. PUBLIC WORKS - DETERMINATION OF CONSISTENCY WITH THE KENT COUNTY SOLID WASTE PLAN FOR PROPOSED PROCESSING FACILITY

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to adopt a resolution determining that the Pitsch Companies solid waste processing facility is consistent with the Kent County Solid Waste Management Plan. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

Public Act 451, Part 115 (Solid Waste Management) provides that a construction permit for a "disposal area" including a processing facility may not be issued by the Michigan Department of Environmental Quality unless the disposal area complies with and is consistent with the approved county solid waste management plan.
Pitsch Companies has requested a determination that its proposal is consistent with the Kent County Solid Waste Management Plan. The Board of Public Works, after considering specific criteria within the Plan, recommends that the Board of Commissioners approve the processing facility.

There is no funding required.

Mr. Wahlfield moved to recommend to the Board of Commissioners to adopt a resolution determining that the Pitsch Companies solid waste processing facility is consistent with the Kent County Solid Waste Management Plan.

Supported by Mr. McGuire.

Yeas: Commissioners Kuhn, Boelema, Malone, McGuire, and Wahlfield.

Nays: Commissioner Sak.

Motion carried.

XI. TREASURER'S OFFICE - EXTENSION OF DESIGNATION OF COUNTY TREASURER AS DEPOSITOR AND INVESTMENT OFFICER

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to extend its designation of the County Treasurer Kenneth Parrish as depositor and investment officer. This item is proposed to go to the Board on December 14, 2000. A summary of the request follows.

By resolution 11-10-99-175, the Board designated County Treasurer Kenneth Parrish as its authorized depositor and investment officer in accordance with Michigan Statutes.
The resolution was effective until December 31, 2000, the end of the Kenneth Parrish's current term.
It is recommended that said authorization, in its entirety, be extended.
Language has been added making the authorization effective until rescinded by the Board or until Kenneth Parrish is no longer in office, whichever occurs first.
Civil Counsel has reviewed the authorization process, and it comports with state law.

No funding is required.

Mr. Malone moved to recommend to the Board of Commissioners approval to extend its designation of the County Treasurer Kenneth Parrish as depositor and investment officer.

Supported by Mr. Boelema.

Motion carried.

XII. ADJOURNMENT

There being no other business for discussion, Mr. Morren declared the meeting adjourned at 9:12 a.m.