2009-10-12 Minutes

Page 1 of 7 -Regular Board Meeting-October 12, 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 October 12, 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 to the Flag.
Members in attendance: Roll Call: Supervisor Miller-Yes, Trustee Campbell- Absent (work related - will be late), Treasurer Cudney-Yes, Trustee Krajcovic-Yes, Trustee Schultz-Yes, Trustee Archer- Absent (business related), Clerk Gute-Yes. Others Present: Attorney Bowne, Fire Chief Greger, Bldg. Administrator Bob Delaney and OCTMMR Manager Jason MacDonald.

Agenda: Moved Trustee Krajcovic, Second Trustee Schultz to add under "New Business" item "c) Mid County Meeting – Update" – and to accept the remainder of the agenda as printed. Roll Call: Trustee Krajcovic-Yes, Supervisor Miller-Yes, Clerk Gute-Yes, Trustee Schultz-Yes, Treasurer Cudney-Yes.

Minutes-Previous Meeting: Moved Trustee Schultz, Second Treasurer Cudney to correct the last sentence on page 8 and the first 3 paragraphs on page 9 to read as follows under:

"New Business: (Note: Per Audio Tape)

a) Dewey Road Drain: Supervisor Miller stated Mike Constine did some drain work on a drain that goes into the Dewey drain along Ruess Rd. Drain commissioner Tony Newman called Supervisor Miller at that time and said we can do this, the road is going to be fixed. There were only two board members in town at that time and I wanted to know what was going on. He then called Lonnie Latunski. Miller then called Mr. Newman back and told him to hang on he would check what we allocated for our drains" - and to accept the remainder of the September 14, 2009 minutes as printed. Roll Call: Trustee Krajcovic-Yes, Supervisor Miller-Yes, Clerk Gute-Yes, Trustee Schultz-Yes, Treasurer Cudney-Yes. The September 12, 2009 minutes stand as corrected.

Treasurer Report: Moved Supervisor Miller, Second Trustee Krajcovic to accept the August 31, 2009 Treasurer’s Report as printed. Roll Call: Trustee Schultz-Yes, Treasurer Cudney-Yes, Trustee Krajcovic-Yes, Supervisor Miller-Yes, Clerk Gute-Yes.

Public Comments: Opened at 7:08 p.m. - Closed at 7:10 p.m.

Resident Mike Thornton observed a mud-bog event being conducted on S. Delaney Road at the Matt Siminski residence. He felt it unfair that everyone in the township must follow

Page 2 of 7 - Regular Board Meeting-October 12, 2009

ordinances except Mr. Siminski. He questioned whether anything is going to be done about the activity on this property. Also, some time ago he asked Administrator Delaney to provide him with copies of all the permits pulled by Mr. Siminski and to date he has not received them. Administrator Delaney claimed he has had the copies ready for Mr. Thornton since July though Mr. Thornton has not ever picked them up. Attorney Bowne stated a letter to cease and desist the mud-bog events was sent to Mr. Siminski some time ago. However, Mr. Siminski is able to apply for a conditional use permit and continue to run the events under conditions.

Sheriff Dept./County/State Rep Comments – SCBOC Henrietta Sparks – The commissioners foresee a 2 million dollar decrease in revenue in the next fiscal year budget. They have asked all county departments to reduce their budgets. The sheriff department evidence lot has been moved to a better location. She has asked for the removal of the Veterans Affairs Committee Chairman.

Note: Trustee Campbell arrived. It is now 7:20 p.m.

SCSD – The sheriff department handled 206 incidents during the month of August 2009, 172 incidents for the month of September 2009 for a total of 1282 YTD incidents. Several catalytic converter thefts have taken place in the township. The department is working with the Internet Crime Complaint Center. The web site is www.lookstogoodtobetrue.com. An Attorney General opinion in regard to "Private property traffic enforcement" can be found at http://www.ag.state.mi.us/opinion/datafiles/2000s/op10214.htm. The department is seeking information in regard to "Neighborhood Watch Group Leaders" and seeking copies of Peddler Ordinances from each township that has such an ordinance in place.

Cemetery Report: Attached to minutes. No activity/No income.

Assessor Report: Attached to minutes.

Fire Report: Attached to minutes. Responded to thirteen (13) alarms during the month of September 2009. A case of H1N1 was reported at Bryant School today.
Discussion: Per Asst. Chief Johnson the firemen want to know the protocol the board wants them to follow regarding who should be billed when it becomes necessary for them to use heavy equipment and etc. services at a fire scene. Supervisor Miller felt the fire department should pay the cost of such because 1½mils is collected for fire related purposes. Clerk Gute felt the need for heavy equipment was above and beyond the normal fire that millage is collected for. She asked if anyone told Mr. Siminski to turn the bill into his insurance company in that they would reimburse the fire department. No one knew.

Concern was if there was a need to call for heavy equipment, Young Environmental or etc. it would be very costly to the department. More so if it happened very often!

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Due to the economic conditions a lot of people are not purchasing homeowners insurance that would have normally paid for such costs. Gute has received phone calls from businesses wanting to bid on such jobs. Supervisor Miller advised they couldn’t very well bid on it in the middle of the night when the need arises. Gute explained the board would take bids now (a call list would be created). Right now a business could charge whatever they wanted when called. Consensus of the board was that some provisions should be looked at.

Ambulance Report: Attached to minutes. Responded to forty eight (48) medical calls during the month of September 2009.

Building Report: Attached to minutes. Two (2) Electrical permits, one (1) Mechanical permit and; two (2) Building permits were receipted for the month of September 2009 for a total of $777.00. Administrator Delaney has mailed out several violation notices. Inquiry was made about getting the yard cleaned up and the basement wall fixed at 3189 W. M 21. The neighbors are tired of looking at it. Concern was whether the house was structurally sound with half the basement walls missing. Administrator Delaney will contact the homeowner again.

Unfinished Business:

a) Water Contract Update:

Supervisor Miller reports the Intergovernmental Committee met with the city a week ago and discussed the water contract. Though there are still some fine points and some fuzzy points but he believes they are very close, maps of city infrastructure in township has been provided and we are just waiting for copies of the bills to come in. He states they talked about the fire hydrants in that our own fire department or utility authority could do the maintenance on them and the city is interested in purchasing the township water tower. He feels it is time for the board to send the contract to another attorney of choice for a second opinion.

Attorney Bowne states Engineer Tom Newhoff suggests using one of three law firms. They are Bauckham Sparks Rolfe Lohrstorfer and Thall in Kalamazoo, Scholton Fant in Ottawa County or Milks and Myers in Kent County. However, Tom states John Bauckham probably done the most in Kalamazoo and of course he is obviously the most township oriented because of his connection with MTA.

Bowne further states the Supreme Court finally acted on the Oneida/Grand Ledge case. The substance of the ruling is that Grand Ledge and other municipalities that are selling water have the ability to charge double rates.

Clerk Gute had contacted Attorney Bill Fahey in regard to the Oneida and Grand Ledge Water Rate lawsuit and proceeded to read Attorney Fahey’s written response regarding the case:

Page 4 of 7 – Regular Board Meeting - October 12, 2009

"Despite the result in this case, I hope you are not considering paying double or even 1.5 times water rates to the City. The Oneida case was somewhat unique because it involved an old water agreement that was entered into back before 1982 when the old statute expressly allowed double water rates. All the Supreme Court order effectively means is that the new statute does not automatically overturn the rates set by the old water agreement.

If you are looking at a new water agreement, even though the statute does not apply, there is still a lot of case law holding that a city cannot charge higher rates outside the city unless those higher rates are based on higher costs to serve residents outside the city. An arbitrary 2x or 1.5x rate factor is not reasonable under applicable case law unless it can be substantiated based on higher costs. Please let me know if you need any more information about this." – Bill Fahey
Gute states PA 34 of 1917 and the Excerpt of this Act that that went into effect in 1982 is what was used in this case.

Attorney Bowne states what Bill Fahey is saying is there is an opportunity for litigation on this on newer cases. Supervisor says again we will talk because one of my comments to the city was that he imagined that they would charge us double the rates. Rates will always be a concern but others are doing it and they are doing okay.

Supervisor Miller would like to see a motion that the board take the last contract made by Lynn to an attorney as Trustee Krajcovic wanted. He does not know if the board wants to pick the attorney or they would rather go by Lynn’s recommendation though felt we are ready for the second opinion and the negotiating team would still go back for further talks with the city.

Gute states the entire board has not even seen the changes from the most recent talks. She felt both municipalities should agree to it before the township requests a second opinion. Miller says no but it’s like the city is negotiating by them selves.

Trustee Campbell states she wants to make a comment on the statement Supervisor Miller had just made about people living with double rates and it’s okay. It’s not okay she said. Campbell asks Miller if he was still going to talk to the city about not charging double rates to protect our people in the township. Miller said he would do that but if they can give you the cost analysis of what this will cost to deliver that …there you go.

Gute asks if a franchise agreement had been drafted. Miller asks Gute if she was suggesting she wanted a franchise agreement where the city would pay us to deliver water. Yes, it keeps our rates lower said Gute. Why would the city do that asked Miller. Because they are circulating water through our township to serve their people said Gute.

A franchise agreement is the same as a contract, it gives them the right to build things said Miller.

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You have a franchise to get the cheaper rates and if the township were to ever build their own system city pipes are in our way said Gute. You can see on there (pointing to map) they have pipes in our township that go to their water tower.

Attorney Bowne asks supervisor Miller if he had gotten an answer from the city as to whether they are going to accept the contract without any changes because there were a lot of changes made to the contract. Miller said when he sat there they were happy with it he did not hear anything negative on it. Trustees Schultz and Krajcovic didn’t here anything negative either. However, Krajcovic said she doesn’t think their council had seen it yet either.

Bowne said he was surprised there wouldn’t be some changes but felt the city needed to come back with rates. It would be wonderful if they came back with the same rates they charge their own people. We don’t know yet what their decision is going to be on the rates but what clerk Gute is saying is that some leverage is there to make sure the rates are fair because they are circulating water through the township said Bowne.

Trustee Krajcovic felt perhaps we should wait until we hear back from the city because we wouldn’t want to have our third party to have to look at it two or three times. Gute felt until everyone agrees. Supervisor Miller will contact the city right away and see if he can get something set up.

Gute remains concerned with the hydrant rent, a franchise agreement on city infrastructure and the lien portion of the contract and says she would seriously consider not selling the water tower because the township may need that extra boost out on N. M 52 for fire suppression.

Trustee Schultz couldn’t see keeping the tower because it was going to sit there and rust and deteriorate and sit there empty. But we will need a water tower on N. M52 for fire suppression and in talking to Engineer Tom Newhoff he said it was worth it to put it there. Oh he did, said Schultz. Yes, Gute said. I can’t imagine what it would cost said Krajcovic. Tom said you’d be surprised who would want the tower and asked what did the city plan to do with it. Schultz didn’t know, probably for scrap metal. Then why wouldn’t we do that asked Gute.

Trustee Krajcovic states the rest of the board does not have a copy of the contract that reflects the changes from the recent discussions. Supervisor Miller states he has extra copies and will put them in their mailboxes and thanks the board for the good points. He will contact Mr, Fivas.
Gute reminds the board that if the agreement were signed today township costumers would not be able to connect until all ordinances, price guidelines and etc were in place. She felt a subcommittee should be appointed to start working on those so that township customers could start connecting as soon as an agreement was signed.

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Krajcovic recaps the discussion. So we’re going back to the city now and work out the ruff areas and the rest of the board needs to have this agreement and get comfortable with it. Then have their questions and then all these questions go to the third party right? You would then be calling for another water workshop or do it right here asked Miller. Krajcovic feels it could be done during a regular meeting because there was not that much to hammer out yet and it was unfortunate that Jayne, June and Judy haven’t seen this yet. Then if they find something they can give it to us and we can bring that to the city’s attention. Supervisor Miller agreed.

b) Fire Hall #1/Township Hall: The consensus of the board was that now was not the time to build a new Fire Station #1. It was decided that if the board did the necessary repairs now, those repairs would be salvageable and would be used in a new Fire Station #1 when the time was right to do so. Moved Clerk Gute, Second Trustee Krajcovic to place and advertisement in a local newspaper seeking bids to repair Fire Station #1. Roll Call: Treasurer Cudney-Yes, Trustee Schultz-Yes, Clerk Gute-Yes, Trustee Krajcovic-Yes, Supervisor Miller-Yes. The board would need to compile a needs not wants list for bidders to review. Assistant Chief Johnson said he would get with the firemen to compile the needs list for the board.

c) Fire Hall #2 – snow and ice jams: Discussion: Ice and snow build up on new Fire Station #2 is bad. Some eaves troughs have been torn off the building because of this and someone could get hurt real bad if they get hit with a chunk of ice. Moved Trustee Schultz, Second Trustee Krajcovic to authorize and direct Supervisor Miller to obtain 2 or 3 bids for the purpose of repairing/replacing the eaves troughs, installing vestibules at the two (2) north side service entry doors and to install heat tape on the roof of new Fire Station #2 and to authorize Supervisor Miller to hire the person(s) to complete the jobs. Roll Call: , Clerk Gute-Yes, Treasurer Cudney-Yes, Trustee Schultz-Yes, Trustee Krajcovic-Yes, Supervisor Miller-Yes.

d) Mason Rd House: Tom Ardelean was hired as the dangerous building hearing officer to inspect the home at 1815 Mason Road. A hearing was conducted on October 10, 2009. The new owner of this home was finally located and did attend the meeting. The inspection found the house in need of immediate repairs. However, the house was found to be structurally sound and could be repaired if the owner chose to do so. Stipulations were set in regard to the repairs and the time to complete them. Administrator Delaney drove by the house prior tonight’s meeting and was amazed at how much they gotten done over the weekend.

e) Cemetery Update: Trees have been marked for removal in the cemetery and the road is ready to put in. Bids will be sought. Constine Gravel Co. bid will be reviewed again regarding the road. The caretaker submitted letters to the clerk and supervisor in regard to people taking dirt off the dirt pile, junk being placed on the wood burn pile and that the water will be turned off on October 14, 2009.

New Business:
Shiawassee County United Way – Charles Dahl: Not in attendance.

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b) Shiawassee Regional Chamber of Commerce–Renita Mikolajczyk: Not in attendance.

c) Mid County Meeting-Update: Clerk Gute inquired about an editorial placed in the newspaper by Burton Fox. Wherein, Mr. Fox states "when city manager Joe Fivas was questioned about the status with MMR, Mr. Fivas’ response was "they are meeting with the other three governmental bodies in the near future and will find out what they might be doing concerning this". Gute wanted to know what Mr. Fivas meant by saying that because the township already contracts with MMR.

Supervisor Miller thought that Burton might have his wires mixed up a little bit because nothing came out of that meeting where Jason would meet with anybody nor would this township meet with anybody. Nothing came out of that meeting so Miller does not know where Burton got his info.

Payment of Bills: Moved Trustee Krajcovic, Second Treasurer Cudney to accept the October 12, 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 – 939 - 943, Fire checks 3389 – 3410, Fire 2 check 134, General Fund checks 4245 – 4271 (void checks 4265 and 4266), Sewer checks 351 - 352, T & A checks 1997 - 1998 and Water check 546 shall be released for payment.

Public Comments: Opened at 9:06 p.m. – Closed at 9:11p.m.

Resident Marvin Britton questions what is going on with Redi Mix. Supervisor Miller states nothing. Mr. Britton states he is ready to go to court. Miller says there was nothing to go to court for. Mr Britton asks what about the wall. Miller acknowledges that Mr. Ardelean was still going to clean out in front of the wall and plant trees yet. Danny you sat right at my dinning room table and said you would take care of it and now I’m ready to go to court. Miller states he would get with Marv. Trustee Krajcovic informed Mr. Britton that he could take it to court himself.

Communications/Board Comments & Reports:
Shiawassee County Chapter MTA Annual Dinner – November 17th.

New chairs purchased for 911 dispatchers.
Airport Board purchased new snowplow truck.
Attorney Bowne and Administrator Delaney will handle the Imarino F.O.I.A.
Insurance carrier Mid West Claims sent a letter to McLane Foodservice stating the Owosso Charter Township Fire Department was not liable for property damage claims per Michigan No Fault Law 500.3123.

Adjournment: Moved Trustee Schultz, Second Trustee Krajcovic to adjourn at 9:18 p.m. Ayes: All. Nayes: None.

Respectfully Submitted,

Judy K. Gute Danny C. Miller
Owosso Charter Township, clerk Owosso Charter Township, supervisor