Page 1 of 10-Regular Board Meeting-August 10, 2009
State of Michigan
County of Shiawassee
Charter Township of Owosso
Be it known that the Owosso Charter Township Board of Trustees met in regular session on Monday August 10, 2009 at 7:00 P.M. in the Township Board Room, at 2998 W. M 21, Owosso, Michigan 48867.
Call to Order: Supervisor Miller led the Pledge the Flag.
Members in attendance: Roll Call: Supervisor Miller-Yes, Trustee Campbell-Yes, Treasurer Cudney-Yes, Trustee Krajcovic-Yes, Trustee Schultz-Yes, Trustee Archer-Yes, Clerk Gute-Yes. Others Present: Attorney Bowne, Fire Chief Greger, Bldg. Administrator Delaney and OCTMMR Manager Jason MacDonald.
Agenda: Moved Trustee Schultz, Second Trustee Archer to accept the agenda as printed with the addition of “A.) Dangerous Building Ordinance regarding 1815 Mason Rd.” and “B.) Cemetery Road” under New Business. AYES: All. Nayes: None.
Minutes-Previous Meeting: Discussion: Clerk Gute asked if the July minutes reflect the correct price agreed upon for the cemetery fence. Moved Trustee Schultz, Second Trustee Archer to correct the price of the cemetery fence item C.) page four (4) to $4,200 and to approve the minutes as written. Roll Call: Trustee Archer-Yes, Trustee Krajcovic-Yes, Supervisor Miller-Yes, Clerk Gute-Yes, Trustee Schultz-Yes, Trustee Campbell-Yes, Treasurer Cudney-Yes.
Treasurer Report: Moved Trustee Archer, Second Clerk Gute to accept the June 30, 2009 Treasurer’s Report as printed. Roll Call: Trustee Schultz-Yes, Trustee Campbell-Yes,
Treasurer Cudney-Yes, Trustee Archer-Yes, Trustee Krajcovic-Yes, Supervisor Miller-Yes, Clerk Gute-Yes.
Public Comments: Opened at 7:06 p.m. - Closed at 7:08 p.m.
Maury Shattuck – Emery Pratt is interested in municipal water and wishes to connect A.S.A.P.
Harold “BUCK” Kuisel (R-Bath Twp.) announced his candidacy for 85th District State House of Representatives and gave a brief outline of his tax plans for Michigan if elected.
County/State Rep Comments – None.
Sheriff Department: SCSD – Per Sheriff Braidwood the county will continue to send monthly incident reports to the townships though a Deputy will only attend board meetings quarterly.
Cemetery Report: Attached to minutes. One (1) foundation repair and one (1) burial. Total income for July 2009 was $450.
Page 2 of 10-Regular Board Meeting-August 10, 2009
Assessor Report: Attached to minutes.
Fire Report: Attached to minutes. Responded to six (6) alarms during the month of July, 2009. Moved Trustee Schultz, Second Treasurer Cudney to allow the firemen to take a fire truck to the Shiawassee County Fair on Friday August 14th. Ayes: All. Nayes: None.
Ambulance Report: Attached to minutes. Responded to, Forty-Six (46) medical calls during the month of March 2009.
Building Report: Attached to minutes. Four (4) Electrical, 2 Mechanical and 2 other permits were issued during the month of July 2009. Total income was $901. Administrator Delaney continues to work on getting Mr. Leaf at 3189 W. M21 to finish his basement and get his yard cleaned up. This has been an ongoing issue for the past year now.
Unfinished Business:
A.) WATER CONTRACT UPDATE: Discussion:
Bowne: Remove the words “water system” on Page 4, Paragraph/Number 11, Second (2nd) Sentence.
Note: Additional typo errors are addressed.
Archer: On the same page (4), paragraph/number 10, 4th sentence down I am not comprehending the idea there. It says “all specifications, construction methods and installations of water mains, taps service connectors, fittings, meters, and other appurtenances of the water distribution system in the districts shall comply with all City standards, specifications, and all rules and regulations from time to time in effect for the distribution system in the city; and all rules and regulations of City”. The “time to time” throws me.
Bowne: What happens is when Federal requirements come in you will come back and amend city ordinances. Sometimes you will come to the utility authority and have them update their ordinances too because we have changes in Federal Standards. I’m sure that’s what he’s meaning. There will be ordinances regarding water that will have to be amended from “time to time”.
Archer: So after rules, and regulations there probably should be a comma.
Bowne: That would be a good idea.
Miller: Page 7, number 18. Is that all 18 or should 18 be switched.
Bowne: Are you talking about the Memorandum or…
Page 3 of 10—Regular Board Meeting—August 10, 2009
Miller: No, I’m talking still contract. Or, is that the Memorandum I’m looking at? It might be the Memorandum I’m looking at.
Bowne: If it’s the Memorandum then we have to switch that.
Gute: I’m back on page 7, fire hydrants. It states we will pay $108 per hydrant. My concern is we pay for 21 hydrants right now which is $2000 and some per year. The Township Water Project placed hydrants every four (4) hundred feet. If the Township installed 1000 hydrants it would cost the residents $108,000 per year. Our fire department would go broke. I just think we should have a flat rate. Whether we take care of our own hydrants and give them something for the water use and have our utility authority take care of them or something. I just think this could be a lot of money.
Bowne: Maybe if you buy water maybe that price for hydrants would go down.
Miller: We can’t do that until we get this contract signed and then go over there and sit down with them again and because again, our township is going to finance the distribution of our system improvements through special assessment proceedings. And again I reiterate the city cannot do that only this township board can do that with input from our residents and therefore, the city is going to provide that service under that agreement. But that agreement can be modified like we just said on this $108 per hydrant/per year. We buy water ladies and gentlemen of the board of the city now. I’m sorry, of the city. We’re going to buy water give us a deal. Because we’re going to try and do, we’re going to do everything we can to get you into the high rent districts here. So potential customers are there and the city knows that.
Gute: We have to protect our customers too and it is very important that they know that not only will they have city rates involved but they will have Township rates on top of that too.
Miller: That’s where it makes sense particularly if the township is interested in establishing a larger water service area. Including our residential development that’s where we now get a leg to negotiate. Once we say something to this contract so we can get across the table from them. But until we get across the table we can’t talk, we can’t discuss and we want those customers that were not there. They belong to us. Davis Cartage when they came in and wanted water we made a special agreement with Davis Cartage. When the water goes through, Davis Cartage comes back to this township. That’s part of the Industrial Park. They come back to us. When we put the water in those areas and it’s flowing, those old customers they become Owosso Charter Township customers. That will not be something we will give up.
Gute: It should specifically state that in the contract.
Miller: We’ll make that part of it when we sit down across from them but I don’t believe we can write and rewrite. I think we we’ve got to have something so we can sit down and talk and say here’s what we go in with. Is this water ready, here is what we need, what do you need.
Page 4 of 10—Regular Board Meeting—August 10, 2009
Gute: There is no need to sign the agreement though I agree the board could make a motion to let the committee to go back to the table. If the board passed this right now that means that we are agreeing to all of this.
Schultz: I don’t think so, we’ve been doing this for four (4) years and we all set right here at a meeting I don’t know how many times.
Gute: Things have not been taken out that we talked about.
Schultz: But we went over this and everything was agreed on and we put it together and now we’re going to pick it apart again, I don’t think so, I think this is something we got to get to the city so we can sit down in front of them and to be honest with you I don’t think they are going to agree with it.
Bowne: The board streamlined the agreement, incorporated a paragraph in the MOU and made changes. I see the city looking at the Agreement and MOU and saying, Wow, what happened to it.
Gute: What I am saying is why would, I sign this just to go back to the city to discuss it. If they say no, you’ve got yourself a water agreement that you don’t approve of. Plus the Memorandum of Understanding was supposed to be merged.
Bowne: It was merged.
Gute: It should be one document like Tom Newhoff suggested.
Bowne: This is what you have a lot of times when you have attachments. Page 8 of the water district agreement paragraph 20 incorporates the Memorandum of Understanding. A lot of this stuff in the Memorandum of Understanding really is not on point with a Water District Agreement. It’s sort of background information to let the Township understand what’s going on. It’s like an attached exhibit.
Gute: The very first page of the Memorandum of Understanding is all, the infrastructure they put in our Township without permission and if they ever decide to increase their water rates such as Detroit did to Flint and we decide to do our own water system their infrastructure is in our way. Their infrastructure needs to be a separate agreement. That is the Townships key to getting their people lower rates.
Bowne: I’d like to point out additional typo errors. Memorandum of Understanding Page #3 subparagraph #18 should be deleted and the next paragraph should be subparagraph #18. Page #4 at the top #22 that actually should be deleted and paragraph #19 is the reference.
Archer: I have read through the agreement several times and it’s not the end all. It’s still like Danny said we’re still going to go back to the city and there will probably be more negotiations and more changes. There are some clerical issues that need to be dealt with.
Page 5 of 10—Regular Board Meeting—August 10, 2009
The main thing I look at is if you turn to the front page of the agreement where it says “where as it is necessary for public health, welfare and safety and desired to provide water for portions of the Township” and he thinks about Mr. Shattuck here tonight and his response and what we are trying to do. It’s not an issue that we are personally trying to accomplish. This is something
we are trying to do for the citizens of the Township for their public health, safety and welfare. (He asks Miller if his intent was for approval on this tonight or what his thoughts were there).
Milller: Yes, if you want to put that into a motion that’s fine you have that legal right as a member of the board.
Archer: I commend Diane and Gary and Lynn for the agreement we have because they have all had part of it and granted we tweaked a little bit of what was there before but it was the initial efforts of Diane, Gary and Dick at that time too. So at this time I’d like to make a motion.
Moved Trustee Archer, that we approve this water district agreement, with the Water District Agreement Memorandum of Understanding as being part of it, with the clerical issues that we tweaked. Second Trustee Schultz.
Gute requests discussion and states “I would like to encourage this board to think long and hard about this.”
Krajcovic: When we started these negotiations several years ago the Memorandum of Understanding came out with one (1) page and here we are at 4 pages. I am personally not in favor of two documents. Dovetail them. Do away with the Memorandum of Understanding. I don’t like flipping here and flipping there. That was not our intent. I feel we are very close but I want another set of eyes too look at it. An expert set of eyes. Someone who has knowledge with Water Agreements!
Campbell: I agree with Diane only because I would like someone else to read it that is more familiar with these. I can’t see jumping into it. All of the sudden this is just going too fast. I’d just like to see a little bit more time taken on it.
Archer: Lynn, when you compared these agreements between Corunna and Caledonia Township..
Bowne: I don’t have Corunna’s agreement and I’ve not read Caledonia Township’s.
Krajcovic: Corunna’s is wholesale. We really can’t compare.
Archer: I just wondered how this agreement compares to theirs and how our Township can be so much different than Caledonia Township when it comes to the final agreement and like I say, we are not done discussing this with the City yet either.
Bowne: I think some of the objections the City of Owosso had, is, that they didn’t want a
Page 6 of 10—Regular Board Meeting—August 10, 2009
changed agreement with Owosso Township. They wanted something identical to Caledonia Township’s and I know Caledonia Township’s was entered into over, advise by other attorney’s.
Gute: I did read Caledonia Township’s. Owosso Townships was pretty much the same agreement when they first started. We didn’t agree with the City owning our meters, we didn’t agree with several different things in Caledonia Township’s. We’re protecting our people, we’re talking about thirty (30) years, 2 renewals of thirty (30) years and we have to be very careful.
Schultz: This contract isn’t solid. We’re going to have to talk to them. We have to get something in front of them. We could be bouncing this contract around between other people and we’re right back to where we started before. We have to get something in front of them.
Gute: The motion was to agree to sign it.
Schultz: This is to get it in front of them.
Gute: No it was to sign it as is. Not a motion just to take it to them.
Campbell: Why can’t they just look at it now and then we say okay this is fine. Why sign it and agree to it and then give it to them.
Schultz: That’s why we had that meeting. Now we’re going to disagree with it.
Gute: But there are still things in there that we disagreed with back then.
Miller: This will be the third. We’ve had two T.A.’s come before the board. Tentative Agreements to the water contract! We’ve since have had it tweaked at least twice and again I agree I think we have to move. In my opinion we have to have movement so we can at least take a step forward and go over there and talk and at that time Lynn will be sitting at that table with us and I’m sure they’ll have Mr. Brown and they also have the advantage of having Mr. Fivas who is also skilled in the legal aspect. Mr. Fivas will be sitting at their table.
Gute: Call the vote.
Miller: Did you have a question?
Cudney: If we agree to sign this contract, now I’ve seen several contracts, to me you would have the completed contract before you sign it. Not just sign a contract and then agree to change it. That’s where I am confused.
Gute: Exactly.
Krajcovic: Exactly.
Gute: Then they’re going to come back and say “well you signed it and now you want to take it away.”
Page 7 of 10—Regular Board Meeting—August 10, 2009
Krajcovic: Why can’t we give them this and say this is a rough draft.
Archer: What if I amend my motion not to sign this as a final agreement but present it to the City for negotiation.
Moved Trustee Archer to amend his motion. Trustee Schultz withdraws his support of the original motion. Moved Trustee Archer, Second Trustee Schultz to, present the Water District Agreement and the Memorandum of Understanding to the City as an unsigned contract with the idea of further negotiations.
Discussion:
Campbell: When can we all see what they have to say? Will they do this at their council meeting? I’d love to sit down with their board and all of us or is that not possible?
Gute: We could have a special meeting.
Miller: That’s hard…
Campbell: This is a very important document.
Miller: It’s hard, both boards can sit down but you still, it’s hard to do both boards. Both boards can get together let’s say that we signed it. Both boards got together and we signed it, we have an agreement. All seven of us can be present and anyone else that we want in that picture to give credit to. Therefore, you are not violating any laws. But for the seven (7) of us and the (7) of them I think there is a problem with the Open Meeting Act or something. But I can get clarification. Lynn don’t we have a problem if all…
Bowne: Yes, you have to have an open meeting you have to post it.
Krajcovic: We had one with Caledonia and us.
Gute: Yes, we could advertise it. We could have our negotiating team sit with them and the rest of us could just sit there and listen if we wanted.
Miller: I was told we would run into a problem because I asked that question a year ago.
Bowne: The big question is if you have the council and the board all there is whether or not there are any deliberations going on amongst the members for a decision. Now if it is just the negotiating team and they are not going to make any decisions that might be a different story.
Miller: It puts both of us in an awkward position. For us to do a picture for signing an agreement but for us to go there and have what you want and what you want talks. We’re in a limbo area. It’s a dark hole and we have to be very careful.
Cudney: We can’t have a study to go over this agreement?
Page 8 of 9—Regular Board Meeting—August 10, 2009
Miller: I don’t think we can and I’m getting the same from Lynn.
Cudney: We did it with the Ambulance. It was community.
Gute: We can have a meeting between both boards. We did it with Caledonia Township with our water talks.
Bowne: You can have a joint session with the City Council and the Township Board to go over this.
Miller: To go over it but if you negotiate it…
Gute: We can all negotiate it.
Bowne: The thing is you would change the negotiating team. The entire Board and Council would be the negotiators then.
Miler: Okay, because I thought there was a problem there because I had asked someone about that earlier.
Roll Call: Supervisor Miller – Yes, Trustee Archer – Yes, Trustee Schultz – Yes, Clerk Gute – Yes, Trustee Krajcovic – Yes, Trustee Campbell – Yes, Treasurer Cudney – Yes.
Archer: Danny also at this time if you would entertain another motion I would make a motion to…
Moved Trustee Archer, Second Trustee Schultz to take the agreement as it is written and tweaked to an outsider for them to review with the understanding that the City of Owosso is going to get right back with us even if they receive it tomorrow.
Miller: Hang on with your second. I don’t think that needs to be a motion because it has already been established that we would do that once this is tweaked.
Krajcovic: It is an expenditure, so we, probably should.
Schultz: We probably should.
Miller: Okay, motion by John to basically have a third party opinion on the tweaked contract. Seconded by Gary.
Roll Call: Supervisor Miller – Yes, Trustee Archer – Yes, Trustee Schultz – Yes, Clerk Gute – Yes, Trustee Krajcovic – Yes, Trustee Campbell – Yes, Treasurer Cudney – Yes.
Gute: Who do you want to find for this opinion?
Miller: I was going to ask Lynn.
Page 9 of 10—Regular Board Meeting—August 10, 2009
Bowne: Let me suggest this. Tom (Newhoff) looked at it as an engineer. Tom could probably give us an attorney’s name that does this.
Miller: Would you do that please and then send a copy to Mr. Newhoff to get it over to that particular lawyer?
Gute: I spoke with an attorney at MTA. I believe he was from Baukman and Sparks who I believe did Kalamazoo and Kalamazoo Township’s agreement. He gave me a lot of information. I would recommend Baukman and Sparkes.
B.) SATA UPDATE: Supervisor Miller states SATA was on the board. They came up and talked to him and what they would like to do is come back in September.
C.) STREETLIGHT ASSESSMENT: Moved to the September agenda.
New Business:
A) DANGEROUS BUILDING ORDINANCE: Township will notify the owner of the home located at 1815 W. Mason Rd in regards to this home not being in compliance with the Township’s Dangerous Building Ordinance.
B) CEMETERY ROAD: Cemetery caretaker has done the best he can to move the road over. However, the clerk felt the Township needed to grade and gravel the newly located road.
C) Moved Trustee Krajcovic, Second Trustee Archer to grade and gravel the road between Sections 2 and 3 Southside. Roll Call: Treasurer Cudney-Yes, Trustee Schultz-Yes, Clerk Gute-Yes, Trustee Krajcovic-Yes, Trustee Campbell-Yes, Trustee Archer-Yes, Supervisor Miller-Yes. Supervisor Miller and Trustee Schultz will obtain bids.
Payment of Bills: Moved Trustee Krajcovic, Second Treasurer Cudney to accept the July 22nd and the August 10, 2009 checklists as printed and to release all checks. Roll Call: Treasurer Cudney-Yes, Trustee Schultz-Yes, Clerk Gute-Yes, Trustee Krajcovic-Yes, Trustee Campbell-Yes, Trustee Archer-Yes, Supervisor Miller-Yes. Cemetery checks – 922 - 930, Fire checks 3314 – 3345 (3346 void), Fire 2 check 130 – 131 (129 void), General Fund checks 4182 - 4218, Sewer checks 345 - 347, T & A checks 1989 - 1992 and Water checks 539 - 541 shall be released for payment.
Public Comments: Opened at 8:37 p.m. – Closed at 8:49 p.m.
Opal Chase asks who put the fence up in the cemetery. Marv Britton regarding the ongoing problem he has with Owosso Redi Mix. Moe Shattuck asks how soon before he could connect to city water.
Page 9 of 10—Regular Board Meeting—August 10, 2009
Communications/Board Comments & Reports:
Gute stated she was not able to attend last month meeting though she liked the fence that was installed at the cemetery she did not agree with where it was placed (at the bottom of the drainage ditch). Leaves will blow over the top, it will be dangerous to mow and the residents along there had signed an agreement with the township that they would maintain that ditch.
She questioned why the board created a new committee to oversee the cemetery. The township has not ever had such a committee. It will cost the cemetery fund $50 per committee member each time they meet and the cemetery fund was not self supporting as it is. She felt it was the responsibility of the entire board to oversee the cemetery. Supervisor Miller stated he formed the committee. The committee consists of Trustee Schultz and himself and they will not be paid for any meetings.
Gute stated that in the July meeting minutes it states the cemetery looked “ragged” and wondered what exactly did they mean by that. No one remembered the statement being made. However, thought perhaps it might have been said when they were talking about the old bushes that were planted long ago. She said she was just curious because she felt Mr. Blevins was doing a good job maintaining the cemetery. Other board members agreed.
Also it was Gute’s opinion that the board set a dangerous precedence at this same meeting when they voted favorably to pay $2,900 out of the fire fund to pay a fire related bill created by a township resident. She felt it could cost the department more in attorney fees to recoup it and had concern if this occurred very often.
Further discussion found that Attorney Bowne was working on placing the amount on the resident’s property tax bill. However, found that the resident had not ever been billed outright before the decision had been made to apply it to his tax bill.
Gute spoke about a large insurance claim regarding a similar incident that amounted to over $40,000 for the township. It could bankrupt the fire department if this happened very often she said.
Consensus of the board was that perhaps a plan should put in place for such incidents.
Adjournment: Moved Treasurer Cudney, Second Trustee Schultz to adjourn at 9:12 p.m. Ayes: All. Nayes: None.
Respectfully Submitted,
Judy K. Gute
Owosso Charter Township, clerk
Danny C. Miller
Owosso Charter Township, supervisor
These minutes were approved as printed as corrected on this the ________day of
____________________________________, 2009.
