PRESENT: Council members Mayor Klynstra, Gruppen, Broersma, VanDorp, Kass, Timmer ABSENT: Council members Wilson

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1 Council Meeting Common Council August 21, 2017 The regular meeting of the Common Council was held at Zeeland City Hall, 21 S. Elm, Zeeland MI on Monday, August 21, Mayor Klynstra called the meeting to order at 7:00 p.m. PRESENT: Council members Mayor Klynstra, Gruppen, Broersma, VanDorp, Kass, Timmer ABSENT: Council members Wilson Staff present: City Manager Klunder, City Attorney Donkersloot, Marketing Coordinator deroo, Community Development Director Maday, City Clerk Jipping Devotions were offered by City Attorney Donkersloot. The Pledge of Allegiance was recited. Councilmember Gruppen entered the meeting. Motion was made by Councilmember Gruppen and seconded by Councilmember Timmer to excuse Councilmember Wilson due to personal reasons. Motion carried. Motion was made by Councilmember Broersma and seconded by Councilmember Kass to add item 1a. Rescind the June 6, 2016 resolution authorizing participating in the Huron Wind Farm. Motion carried Approve consent agenda Motion was made by Councilmember Timmer and seconded by Councilmember Kass to approve the consent agenda as presented. 1. Approve minutes of the regular meeting of August 7, Approve minutes of the work/study session of August 7, Receive for information minutes from the BPW meeting of August 15, 2017, minutes of the Planning Commission of August 3, Ratify BPW action approving cash disbursements and regular monthly transfers. 5. Ratify BPW action rescinding the June 6, 2016 Wind Project Resolution & Approve Pegasus Wind Project Participation. 6. Ratify BPW action authorizing the General Manager to engage Utility Financial Solutions LLC to conduct an Electric Cost of Service Study with an estimated cost of $23,000 plus travel expenses. AYES: Broersma, Gruppen, Kass, Timmer, VanDorp and Klynstra No Votes: None Visitors Zeeland Christian s new Head of School, Mr. Tim McAboy, was introduced to the Council. He explained his position and told about his family. He said he is thrilled about the opportunity to be ZCS s next Head of School. Council welcomed him into the community.

2 Rescind June 6, 2016 Huron Wind Project Resolution Motion was made by Councilmember Gruppen and seconded by Councilmember Broersma to rescind the June 6, 2016 resolution authorizing the BPW participation in the Huron Wind Project. AYES: Gruppen, Kass, Timmer, VanDorp, Broersma and Klynstra No Votes: None Approve Pegasus Wind Project Participation Motion was made by Councilmember Broersma and seconded by Councilmember Timmer to approve the resolution dealing with the Pegasus Wind Project purchase authorizing the BPW General Manager as the Authorized Representative under the MPPA Energy Services Project Agreement, subject to: 1) sufficient participation to enable the aforementioned wind purchase to proceed and; 2) acceptance of the agreement between MPPA and developer by the Zeeland City Attorney; to commit to the purchase through the Michigan Public Power Agency of the following: 19.37% ( MW) of all of MPPA s energy, capacity and environmental attributes under the above described agreement and be responsible to cover 19.37% of all MPPA s related financial obligations associated with said agreement, With pricing not to exceed $55.00/MWh through the 20-year contract term. AYES: Kass, Timmer, VanDorp, Broersma, Gruppen and Klynstra Adopt Excessive Force Policy Motion was made by Councilmember VanDorp and seconded by Councilmember Gruppen to adopt the Excessive Force Policy as part of the close out requirements for the CDBG Façade Grant project. AYES: Timmer, VanDorp, Broersma, Gruppen, Kass and Klynstra Adopt City of Zeeland Fair Housing Ordinance Motion was made by Councilmember Kass and seconded by Councilmember Broersma to adopt the City of Zeeland Fair Housing Ordinance as part of the close-out requirements for the CDBG Façade Grant project. AYES: VanDorp, Broersma, Gruppen, Kass, Timmer and Klynstra Fiscal Year End Budget Amendment Motion was made by Councilmember Timmer and seconded by Councilmember Kass to approve the budget amendment to amend the Fiscal Year 2017 Budget as presented. AYES: Broersma, Gruppen, Kass, Timmer, VanDorp and Klynstra

3 Adopt Banking Resolution Chemical Bank Motion was made by Councilmember Gruppen and seconded by Councilmember VanDorp to approve the Authorizing Resolution with Chemical Bank. AYES: Broersma, Gruppen, Kass, Timmer, VanDorp and Klynstra Adopt Resolution Affirm Zoning for 5 West Main Motion was made by Councilmember Broersma and seconded by Councilmember Kass to accept the recommendation of the Planning Commission and decline to rezone the parcel at 5 West Main Avenue into the Alcohol Sales District. AYES: Gruppen, Kass, Timmer, VanDorp, Broersma and Klynstra Adopt Resolution Affirm Zoning for 4 West Main Motion was made by Councilmember VanDorp and seconded by Councilmember Broersma to accept the recommendation of the Planning Commission and decline to rezone the parcel at 4 West Main Avenue into the Alcohol Sales District. AYES: Kass, Timmer, VanDorp, Broersma, Gruppen and Klynstra Hazard Mitigation Plan Adoption Motion was made by Councilmember Kass and seconded by Councilmember Timmer to adopt the 2017 Hazard Mitigation Plan and to also consider blending the Hazard Mitigation Priorities into the next revision of the community master plan. AYES: Timmer, VanDorp, Broersma, Gruppen, Kass and Klynstra Councilmember Timmer invited Council to the Historic Society Ice Cream Social on Thursday, August 24 at the Museum. There being no further business to come before the Council, the meeting adjourned at 7:26 p.m. Karen Jipping, City Clerk

4 MEMORANDUM OF WORK-STUDY SESSION Zeeland City Hall 21 S. Elm, Zeeland MI Monday, August 21, :00 p.m. PRESENT: ABSENT: Council members Mayor Klynstra, Gruppen, VanDorp, Broersma, Kass, Timmer Council members Wilson Staff present: City Manager Klunder, Utilities General Manager Cook, City Attorney Donkersloot, Marketing Coordinator deroo, Community Development Director Maday, City Clerk Jipping Long-Term Renewable Energy Purchase Manager Cook reported that in 2016 the City Council authorized the BPW to commit to participating in the Huron Wind Project through MPPA. In May of 2017 the Huron Wind Project was effectively halted as a result of a county-wide referendum denying a needed development permit. MPPA has worked with the developer and has obtained a replacement for the Huron project. MPPA has finalized an agreement with a wind developer, Pegasus Wind, LLC an operating subsidiary of the largest wind developer in the United States. The BPW has the opportunity to commit for up to 19.37% (estimated MW, a 3.3% increase from Huron) of the MPPA project. He explained the conceptual terms of the arrangement and Council is being asked to approve the contract to purchase power through MPPA for power and enter into a Purchase Power Commitment with Pegasus Wind LLC. He explained that the price is the same as with Huron but we would only pay when we take their power. With this purchase in place along with the Autumn Hills, Beebe Wind Farm, and Helder Park, the renewable energy would supply on the order of 15% of the BPW total energy requirements in Fair Housing Ordinance and Excessive Force Policy Marketing Coordinator deroo updated the progress of the three façade projects. She reported that they are preparing documents and files for reporting and a grant close-out visit. The state requires municipalities to have a number of policies in place by the time of the close-out visit which has not yet been scheduled. Two of these policies include a Fair Housing Plan and an Excessive Force Policy, which Attorney Donkersloot has drafted. The Fair Housing Ordinance, which is city-wide, protects all residents rights to live in decent, sanitary and healthful living quarters and are treated equally in accordance with the 1963 Constitution of the State of Michigan. The Excessive Force Policy prohibits use of excessive force by the City of Zeeland law enforcement upon citizens that are engaged in nonviolent civil rights demonstrations within the City of Zeeland. Councilmember Gruppen asked if the Fair Housing Ordinance would protect the City. Attorney Donkersloot said it protects the city to the extent that we are eligible for grant money. June 30, 2017 Fiscal Year End Budget Amendment Finance Director Plockmeyer explained that when the FY 18 budget was adopted, a budget surplus of $54,000 was anticipated but we are expecting a budget surplus over $150,000. He reviewed the activities which need to be adjusted. He noted that overall departments budgeted well over the year.

5 Cemetery Perpetual Care Fund Investment Option Finance Director Plockmeyer reported that last year Council was presented an option to change how the funds of the Cemetery Perpetual Care Fund are invested. At that time the City was uncertain on the outcome of the Consumers Energy Tax Appeal case and wanted to wait. He would now like to revisit this investment option. P.A. 422 of 2014 was adopted allowing a municipality that owns a cemetery to establish an irrevocable endowment and perpetual care fund as a component unit within a community foundation. There are several items to consider if the City wishes to use this for managing of investments of our Cemetery Perpetual Care Fund: 1- Establishing this fund is irrevocable and the funds would be held in perpetuity by the Community Foundation of the Holland/Zeeland Area. Only the interest earned can be spent. 2- There is potential for greater return on the investment but also a greater risk of loss of principal and have shown several years of losses as compared with one year for the City s investments. Director Plockmeyer looked at the Cemetery Perpetual Care Fund s actual investment returns and compared them with the returns generated by the Foundation. The Cemetery Trust Fund would have generated over $200,000 of expendable fund balance over the 21 year period from This gives an overall picture of earning potential of placing the Perpetual Care Fund under the care of the CFHZ. The fund is also subject to investment risk associated with the types of investment the Foundation is able to invest in. 3- Community Foundation of the Holland/Zeeland Area generates fees based on the amount of money they are investing. Fees start at 1% for the first $1 million dollars and increments downward after the first million. Over a 21 year period from 1995 to 2016 these fees would have totaled approximately $240,000 for the CFHZ. Director Plockmeyer does not have a recommendation if this is the best direction for the City of Zeeland nor does he feel that management of the Cemetery Perpetual Care Fund is a burden for City staff. Councilmember Gruppen was excused from the meeting at 6:40 p.m. Attorney Donkersloot said that a contract with the Foundation would have to be drawn and also if desired, a seat on the Foundation Board could be requested. Manager Klunder said this item will be included on a future agenda directing staff to proceed. Chemical Banking Resolution Director Plockmeyer reported that that with the retirement of Karen Doyle, the banking resolution with Chemical Bank needs to be updated to reflect him as the new Treasurer. He is recommending approving the Authorizing Resolution with Chemical Bank. Affirm Zoning for 4 & 5 West Main Avenue Manager Klunder explained that the owners of 4 & 5 West Main Avenue requested that the parcels be zoned into the Alcohol Sales District so that alcohol could be sold for the off-premises consumption. The Planning Commission held public hearings on the requests and the Planning Commission found that the rezoning of the parcels into the Alcohol Sales District will not promote the public health, safety and welfare of the City of Zeeland. Council discussed the recommendations of the Planning Commission to decline rezoning the parcels at 4 & 5 West Main Avenue into the Alcohol Sales District.

6 Councilmember VanDorp suggested to remove the two gas stations currently in the Overlay District Hazard Mitigation Plan Adoption Manager Klunder presented a sample resolution and recommendation for adoption of the 2017 Hazard Mitigation Plan by Council. He explained that the plan is a demonstration of the commitment to reduce the risk from natural or technological hazards and serves as a strategic guide for decision-makers as they commit resources. The original plan was adopted in 2006 and updated in In order for the City to receive Hazard Mitigation Assistance Grants and other funding for disaster declaration, this must officially be adopted through a resolution. He is recommending adoption of the 2017 Plans and to also consider blending the Hazard Mitigation Priorities into the next revision of the community master plan. The work study session was adjourned at 6:53 p.m. Karen Jipping, City Clerk