Regular Meeting Common Council September 19, 2016 The regular meeting of the Common Council was held in City Hall Council Chambers on Monday, September 19, 2016. Mayor Klynstra called the meeting to order at 7:00 p.m. PRESENT: Council members Mayor Klynstra, Gruppen, VanDorp, Broersma, Kass, Timmer, Wilson ABSENT: Council members None Staff present: Manager Klunder, City Attorney Donkersloot, Assistant Manager & Finance Director Doyle, City Clerk Jipping Devotions were offered by City Attorney James Donkersloot. The Pledge of Allegiance was recited. 16.145 Approve consent agenda Motion was made by Councilmember Broersma and seconded by Councilmember Timmer to approve the consent agenda as presented. 1. Approve minutes of the regular meeting of September 6, 2016 2. Approve minutes of the work/study session of September 6, 2016. 3. Receive for information minutes of the BPW Commission meeting of September 13, 2016, minutes of the Personnel Committee meeting of September 8, 2016, Cemetery Commission meeting of September 7, 2016, minutes of the Planning Commission meeting of September 1, 2016. 4. Ratify BPW motion #16.40 approving cash disbursements and regular monthly transfers 5. Ratify BPW motion #16.41 awarding the purchase and replacement of Power Plant Boiler. 6. Ratify BPW motion #16.42 approving compensation and benefits recommendation AYES: Wilson, Broersma, Gruppen, Kass, Timmer, VanDorp and Klynstra Visitors Ottawa County Commissioner Dannenberg was present to address any concerns the Council may have. He reported that the County is acquiring more acreage along the lakeshore. Mr. Nick Bonstell introduced himself to Council and gave his history beginning with the Zeeland Fire Department from 1998 2003. He then moved on to the Grand Rapids Fire Department from 2002-2012, the Knoxville Fire Department from 2012-2013, the Kentwood Fire Department from 2014 Present. He is also currently a Contract Hazardous Materials Instructor for FEMA s Center for Domestic Preparedness (CDP). He is married and has three children. 16.146 Fire-Rescue Chief Appointment Motion was made by Councilmember Gruppen and seconded by Councilmember Broersma to accept the recommendation of Mayor Klynstra to appoint Mr. Nicholas Bonstell as the City of Zeeland Fire/Rescue Chief effective December 1, 2016; that the starting annual salary be $29,300 as outlined
in the compensation arrangement attached hereto; that Mr. Bonstell; start with the city the week of November 14, 2016 and during that period of time prior to taking over as Fire/Rescue Chief he will serve in the role of Deputy Fire/Rescue Chief. AYES: Broersma, Gruppen, Kass, Timmer, VanDorp, Wilson and Klynstra Mayor Klynstra thanked the Search Committee for their time and unanimous vote. He thanked Chief Gruppen for his 50 years of service to the City. Manager Klunder also thanked the Committee. He noted that the City has been well-served and is confident this will continue. Rental Rehab Program Project Support Doug Vos of Don s Flowers & Gifts reported that he has been researching development incentives through the State of Michigan to assist in the creation of apartment units on the second floor of his property at 217 E. Main, Don s Flower & Gifts. The Rental Rehab Program provides quality, safe and affordable rental housing in vibrant places by granting financial resources to properties that create or rehabilitate apartments in downtown mixed-use building. This is a Federal program administered by the State. The first year after construction, 51% of all apartment units under the Rental Rehab Program are reserved for tenants that meet low/mod income criteria. October 1 is the deadline for paperwork. MDOK, LLC (Doug Vos, Michael Vos and Katherine DenHerder are interested in utilizing the state s rental Rehab Program to relocate offices on the second floor of Don s Flowers and use this space tor a total of four (4) apartment units. To accomplish this they must: Purchase of property by MDOK, LLC First Floor renovations to the retail store are for Don s Flowers & Gifts Moving the company s office space to the adjacent Wyngarden property (old print shop building and build out of the new office space) Addition of an 800 sq. ft. warehouse space to the east of the current Wyngarden Print Shop building Construction of 4 apartments on 2 nd floor of the 217 E Main St. building including 1 2- bedroom and 3 1-bedroom units With the City serving as the applicant for this program, the State of Michigan will require a local commitment. Staff recommends that we treat this similar to the current CDBG façade grant project and offer city staff assistance, Lakeshore Advantage assistance, and access to Act 210 the Commercial Rehabilitation Program through the City of Zeeland. Points noted: Applicant has 2 years to start construction. Mr. Vos is not sure on the parking being provided for renters; however, they are part of the downtown and no parking is required. The city has no experience with this program but it is not too new. It is similar to the Façade Grant and other CDBG projects. 16.147 Rental Rehab Program Motion was made by Councilmember Broersma and seconded by Councilmember Timmer to work with the members of MDOK, LLC to pursue the State of Michigan s Mixed Use Rental Rehabilitation Program for 217 E. Main on behalf of the City of Zeeland.
AYES: Gruppen, Kass, Timmer, VanDorp, Wilson, Broersma and Klynstra 16.148 Grade and Salary Structure Approval Motion was made by Councilmember VanDorp and seconded by Councilmember Broersma to approve the new Grade and Salary Structure as recommended in the August 2016 Rahmberg Stover and Associates Study for non-bargaining unit employees along with the recommended implementation plan effective September 19, 2016. AYES: Kass, Timmer, VanDorp, Wilson, Broersma, Gruppen and Klynstra 16.149 Amendments to Grade Structure & Salary Range Adjustment Modification Plan Motion was made by Councilmember VanDorp and seconded by Councilmember Timmer to approve the amendments to the Grade Structure and Salary Range Adjustment and Modification Plan as presented. AYES: Timmer, VanDorp, Wilson, Broersma, Gruppen, Kass and Klynstra 16.150 Approve Defined Contribution Plan Increase to 8% Effective 7/1/16 Motion was made by Councilmember VanDorp and seconded by Councilmember Timmer to approve changing the Defined Contribution Pension Plan contribution level from 6% to 8% for all nonbargaining unit employees effective July 1, 2016. AYES: VanDorp, Wilson, Broersma, Gruppen, Kass, Timmer and Klynstra Sligh Building Zoning Council discussed the recommendation of the Planning Commission to retain the current zoning for 349 E. Main as I-2 General Industrial District. It is recommended that the rezoning of this parcel be considered at the same time that a change of use is proposed so as to ensure that a future use will be compatible with the uses of the adjacent property owners and to prevent a negative impact on the Cityside Middle School. Also, the Master Plan and Downtown Vision Plan were reviewed by the Planning Commission and do not call for the immediate rezoning of this parcel. Attorney Donkersloot reported that the Planning Commission held the required public hearing and there was no public in attendance. 16.151 Sligh Building Zoning 349 E Main Ave. Motion was made by Councilmember Kass and seconded by Councilmember Broersma to accept the recommendation of the Planning Commission to retain the current zoning for 349 E. Main as I-2 General Industrial District. AYES: Wilson, Broersma, Gruppen, Kass, Timmer, VanDorp and Klynstra Mayor ProTem Gruppen reported on the MML Convention on Mackinac Island. Mayor Klynstra reported on meetings he attended and upcoming events.
Closed Session Motion was made by Councilmember Gruppen and seconded by Councilmember Broersma to adjourn into a closed session to discuss the purchase of property. AYES: Broersma, Gruppen, Kass, Timmer, VanDorp, Wilson and Klynstra The Regular meeting reconvened. There being no further business to come before the Council, motion was made by Councilmember Broersma and seconded by Councilmember Timmer that the meeting adjourn. The meeting adjourned at 8:20 p.m. Karen Jipping, City Clerk
MEMORANDUM OF WORK-STUDY SESSION Zeeland City Hall Monday, September 19, 2016 6:00 p.m. PRESENT: ABSENT: Council members Mayor Klynstra, Gruppen, Broersma, VanDorp, Kass, Timmer, Wilson Council members None Staff present: Manager Klunder, City Attorney Donkersloot, BPW Manager Cook, Ass t Manager/Finance Director Doyle and City Clerk Jipping The Work-Study Session was called to order by Mayor Klynstra at 6:00 p.m. Compensation Study Acceptance and Implementation - City Manager Klunder reviewed the history of the Compensation and Benefits Review contracted with Rahmberg Stove and Associates. Jeff Rahmberg was also present to review the information. The Personnel Committee reviewed the information at their September 8 meeting and is recommending Council accept the findings of the report and authorize implementation of the study. Manager Klunder noted that this is the first formal study since 2005-06; however, in the interim, wage comparisons were obtained from other communities in a less formal basis. Wages Updated Full-Time Grade and Salary Structure Jeff Rahmberg of Rahmberg Stover & Associates worked with the City and BPW to identify appropriate market comparables for the various operations of the entities. He reported that overall the study found that wages within the City are very competitive with market. For the city the study recommends that twenty (20) positions have an increase provided to the salary range in order to maintain the city s competitive position for the respective job. There were six (6) positions where the salary range could be lowered and still enable the city to maintain our competiveness in the market for those positions. There were two (2) positions that remained relatively the same. It was noted that all these recommendations were evaluating the position s salary range for competitiveness and not individuals within those positions. It is recommended to have an increase in the salary range as compared to the existing scale generally the increases ranged from.7% to 6.8%. Two exceptions are positions that received grade increases in relative comparison to the existing grade scale. The increases equaled to 13.42% and 15.6%. For positions with recommended decreases, those ranged from 2.9% to 4.5%. Overall the average adjustment across positions was 1.7% higher. The proposed new scale has 16 grades rather than the current 14, thus a position may show it went down a grade but the salary actually went up for the position. The 16 grades better reflect where our positions are in the comparable market and internally; and it enabled us to set a standard differential between grades of 10%. The salary minimum to maximum for each grade will remain at 30%. Grade Structure and Salary Range Adjustment and Modification Plan Changes A future recommendation from Rahmberg Stover & Associates is to reevaluate salary advancement guidelines regarding the basis and extent of progression through the salary ranges. Adjustments to the guidelines are required in order to be consistent with the new grade and salary structure plan. Implementation of the Salary Recommendations The strategy would be similar to the one utilized in the last wage study in 2005/2006 which is to keep employees at the same percentage relationship they have to their existing midpoint. No
individual employee would receive more than a 5% increase and no individual would receive a pay reduction. These market adjustments would occur effective September 19, 2016. It was also noted that these market adjustments are exclusive of the 2% scale adjustment made on July 1 of this year and step increases that employees may be eligible for as they progress through the scale. From a dollar perspective these adjustments are estimated to increase full-time annual wages by $30,074 for the non-bargaining employees, equating to a 1.68% increase. Defined Contribution Plan Adjustment Overall the study found employee benefits are generally competitive with the market. One item that stood out was the contribution level for the Defined Contribution Plan for non-bargaining unit employees who started with the city and BPW after 7/1/2000. We provide a 6% contribution on behalf of the employee and the study indicates that is below our market comparables. A recommendation is that a contribution level of 8% would bring us closer to market competitiveness. It would also be consistent with the two bargaining unit contracts that were settled as of July 1, 2016. It is estimated that an increase in city costs would be $23,683 annually. This is factored on the new recommended wage implementation amounts for those that would see an increase. Budget Implications From a budget perspective the recommended implementation strategies can be absorbed into the current fiscal year. 2016 Compensation & Benefits Study BPW Recommendations BPW Manager Cook reported that the BPW along with the City of Zeeland retained Rahmberg, Stover & Associates (RS&A) to conduct a compensation and benefits review study and the BPW also contracted to update all BPW job descriptions. He explained that the unique difference with the BPW s Compensation surveys in comparison to the City were that they selected jobs that were directly comparable depending on positions i.e. lineman to lineman. The goal is to develop a single grade and salary structure while acknowledging unique market differences between city and BPW. Results were provided in August and Manager Cook reviewed the summary reports with the Board. The Benefits Survey indicated that in general the BPW benefits were reasonably competitive, except for those receiving a 6% employer pension contribution which was found to be somewhat below market. The study also noted that the health insurance opt-out of $1,000 is below average and the majority of organizations surveyed provided vision coverage, There are 16 bargaining employees who were handled previously with the union negotiations. An analysis for the recommended wage adjustment implementation strategy for non-bargaining unit employees reveals: 4 employees would receive the max 5% adjustment and the remaining 4 would receive a market wage adjustment between.88% and 1.725%. The total FY2017 dollar impact for these market wage adjustments are estimated to increase annual full-time wages by $21,043. Bargaining Unit employees market adjustment is spread over 3 years $17,145-1 st year, $7,467-2 nd year, $7,932-3 rd year, reaching market value by the end of their contract. He said implementation will be the same as the City. For the BPW, the total compensation market increases for both the bargaining and non-bargaining unit employees can be fully covered by the assumed general and performance wage increase plus contingency included in the respective Electric and Water Utility budgets. The maximum wage increase will be 5% and there will be no loss in salary due to the study. A letter was provided to the BPW employees advising them of these findings. Required Action Manager Klunder reported that there are 3 distinct actions being asked for:
1. Adopt the new Grade Structure 2. Written Grade Structure and Salary Range Adjustment Modification Plan which shows how an employee moves from the starting point to mid-point and beyond the mid-point. This needs work and has to be re-evaluated in the near future. 3. DC Plan adjustment to 8% including bargaining and non-bargaining employees. Bargaining employees have already negotiated this into their contracts effective July 1, 2016. Mayor Klynstra said that internal part-time wage study will be done in the near future. Councilmember Kass asked if vacation time was discussed. Manager Klunder said that initial discussion was had with Mr. Rahmberg but no action has been taken at this point. Manager Klunder noted that employees were presented this information and it seemed to go quite well. Letters were sent out and employees were well aware of the Personnel Committee meeting and there was one employee present to listen. There has been feedback on the DC adjustment and it was very positive. Macatawa Greenway Update Mr. Travis Williams of Macatawa Greenway provided a power point providing highlights and background of the Macatawa Greenway. He explained their goal to preserve and protect the river corridor. Funding information was provided and also the projects they have accomplished. He updated Council on their land acquisition in Zeeland Township which links the Upper Mac to the Middle Mac, the Dutton Park Renovation, and the Holland Energy Park. Mr. Williams also reviewed Project Clarity Projects and their five (5) goals: 1) secure land; 2) restoration; 3) Best Management Practices; 4) Education & Information; and 5) Management. The work-study session adjourned at 6:50 p.m. Karen Jipping, City Clerk