Bingham Township Regular Board Meeting

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					           Bingham Township Regular Board Meeting

            Monday, December 13, 2010, 7 p.m.

           Clinton County RESA

            4179 S BR127, St Johns, Michigan 48879

                    MINUTES



The meeting was called to order at 7 p.m.

Michael Trebesh called roll: present were Supervisor Ostrowski, Treasurer Trebesh, Trustee Harger and
Trustee Hufnagel. Clerk Kus was absent because of an injury.

Nine individuals from the public were in attendance.

Supervisor Ostrowski led in the pledge to the flag and Trustee Harger gave the invocation.

Agenda:

 Agenda as written– Motion by Trebesh to approve agenda –second by Hufnagel. Motion passed.

Consent Agenda

Motion by Trebesh to approve consent agenda-second by Hufnagel. Motion passed.

Public Comment:

No public comment.

Commissioner’s Report:

No commissioner in attendance

No Public Comment.

OLD BUSINESS:

7A. Dave Kudwa gave a lagoon status update. Closure of lagoons is in the final stage. Affluent has been
removed and spread on adjacent farm land. Revenue from the sale of the sludge is to be determined.
However, the State requires a fee per cubic yard of sludge spread.

 The surrounding lagoon enclosures will be left as is. Final core testing should be completed in next
couple of weeks. The completed closure of the lagoons should be finalized by the end of January or
February at the latest. The entire closure was to be completed by November 2010. However, DEQ has
been understanding and cooperative. Everything looks good and the property should be in a salable
condition spring of 2011.

The existing sewer system is complete and complies with plan specifications; basically the punch list of
final items has been completed. Directional Drilling has basically completed their contract and the hold
back should be released—(approximately $47,000.00). Mr. Kudwa asked that the check be payable to
Allstate Directional Drilling but mailed to Trinity Engineering for distribution.

Trustee Hufnagel asked if the sewer project came in under budget. Mr. Kudwa responded it came in
close to budget. The contingency portion of the contract will be close or perhaps a little over. There was
a $26,000 lagoon pumping charge; $31,000.00 dewatering charge and $20,000.00 of testing charges
that came out of the contingency amount.

7B. Supervisor Ostrowski gave an update on the amendment to the St John’s city sewer agreement. The
following provisions were emphasized in the amendment which was up for approval:

    1. Capital buy in fee of $126,000.00 if we retain a six inch meter

    2. Capital buy in fee of $20,000. 00 if we downsize to a two inch meter

    3. Any capital buy in fees will be eliminated if either of the two plans is accepted-1. surface
       discharge/dispose of the backwash water or2. if a basin is used to hold the backwash water and
       then sold to a adjacent property owner for irrigation purposes. Trinity Engineering has
       developed a plan and is pursuing the surface disposal option with DEQ. Trustee Hufnagel and
       Supervisor Ostrowski have/will discuss sale of water for irrigation with adjacent farmers. The
       basin option will cost an estimated $17,000.00

    4. The City of St Johns has given the Township of Bingham until May of 2012 to finalize a plan of
       action. The City has been cooperative and would probably consider extending the date of
       correcting the water treatment plant discharge, provided action to change this discharge has
       started.

    Motion to sign the intergovernmental agreement was made by Trustee Harger -Support by Trustee
    Hufnagel. Motion carried.

    7C. Supervisor Ostrowski gave an update on the status of the Meadows sewer charges. Supervisor
    Ostrowski informed Meadows owner Mark Glova the Township is not interested in acquiring the
    Meadow’s sewer infrastructure. Mr. Glova will consider paying the 2010 sewer usage charges but
    only if we revise the township rate to him for future usage (city portion only) until he recovers the
    monies he would have to pay us. Mr Glova would start paying the current rate if and when the
    lagoon debt is paid off under the original agreement with Searles.
     Discussions have also taken place with Leon Searles regarding payment for his repurchase of the
    one acre where his Mother's house sits. We asked for him to consider what he would need to
    discount the $100K in order to pay us off immediately. Thus that money could be applied to the
    lagoon debt and with some monies from Marc Glova we could come close to paying off the lagoon".

Mr. Glova informed Supervisor Ostrowski he would write up and present his proposals during our
January meeting.

7D. Supervisor Ostrowski gave an update of the Tom Motz legal cost dispute. Discussions with Mr. Motz
have taken place and perhaps Mr. Motz will attend our January meeting to present his position.

7E. Committee Reports:

    The finance committee met on December 12, 2010 and Trustee Hufnagel made the following points:

    1. After reviewing the cash flow projects for the next year the committee concluded that the
       Township cannot cut its way out of the financial predicament.

    2. Recommend the resurrection of the citizens committee to support the approval of a millage.

    A. The committee is willing to conduct town hall meetings

    B. Prepare and mail 3 mailings to township residents

    C. Recommend cutting expenses where appropriate



Fire and Rescue committee: Nothing to report

Utility committee: The City of St Johns owes the Township $698.00. This amount will bring the account
current and all delinquent payments belong to the township. The City will settle the account at the end
of each quarter.

The City will not charge the Township for inflow/infiltration because the Township is within the 2%
acceptable range.

The City has expressed an interest in purchasing some Township assets. Supervisor Owstrowski will
continue these discussions.

Utilities:

Township water rates will be reviewed and a reasonable adjustment will be made. Water rates have not
been reviewed for several years. The 3 biggest water consumers, accounting for well over half of the
water usage are Walmart, AppleBees and RESA.

Communications: No report.
NEW BUSINESS:

8 A. The December Board of Review will meet Tuesday, December 14, 2010 at 3pm at the Bingham
Township Hall. Peter Preston stated the meeting was posted. The December Board of Review is to
correct errors and change in address. Review of assessment will be made during the spring meeting.

Nomination of Board of Review members for a two year term are as follows:

John Glerum

Robert Wieber

Harold Rappuhn

Supervisor Ostrowski asked for nominations from the floor. None were made.

Motion by Trustee Harger to appoint the above named individuals the BOR-- Second by Treasurer
Trebesh.

Motion passed.

8 B. Sale of Assets:

There is a brand new, pto driven back up lagoon generator that is no longer needed because the lagoons
have been decommissioned. It is recommended that the generator be advertised for sale. Offers for
the the generator will be pursued.

Myrtle Park land: two adjacent farmers were contact concerning the sale of the property. Some interest
in the purchase of the land was expressed. Supervisor Ostrowski will follow up with the adjacent
farmers. The township cost basis is approximately $28,000.00.

9A. Supervisor Ostrowski verbalized a summary of a letter/discussion with Ryan Wood, Clinton County
Administrator. Statement that Bingham Township is in default on a bond payment and the County has
made the payment and proceeded with attaching 25% of the township’s future state revenue sharing.

 Clinton County proposed a review of the special assessments on sewer number 3 at their expense. A
review involves comparing assessments to original amounts tracing to payments.

Motion by Trustee Harger to have other special assessment accounts reviewed at Township expense
with a firm/specific fee.- Support by Trustee Hufnagel. Motion passed.

Supervisor read and presented a document from the Department of Treasury outlining the procedures
followed when a municipality faces financial difficulty and list of frequently asked questions with
corresponding answers.

Motion by Trustee Hufnagel to establish a specific account for restricted and special assessment
deposits. Support by Trustee Harger. Motion passed. Treasurer Trebesh will contact the bank to
determine costs related to a specific account for restricted and special assessments and report back to
board at the January board meeting. Until then all special assessment checks will continue to be
deposited in the Township’s general fund account.

9C. Treasurer Trebesh restated the assumptions used to project cash flow for the period November
2010 through November 2011. Treasurer Trebesh stated the proposed 2 mill ballot proposal should be
sufficient along with review of water rates, further cost cuts associated with the lagoon decommission,
sale of township assets and renegotiation of existing contracts.

9D. Supervisor Ostrowski read a statement from Clerk Kus concerning the millage ballot proposal and
she will present costs of the millage election and specific requirements of a May 2011 election.

10. Reports:

Bingham Township did not make the third quarter payment but with winter tax receipts the Township
will pay the third and fourth quarter amounts. Supervisor Ostrowski met with the CAFR committee in
place of injured Clerk Kus with the intention of updating and moving toward the June 2011 deadline.
Issues discussed were Bingham Township’s major concerns, particulars and definitions.

Without CAFR board discussion or approval, CAFR administration wrote and sent a letter to ISO outlining
Bingham Township’s intention not to continue as a member of the CAFR organization. Supervisor
Owstrowski and Treasurer Trebesh believe the letter is misleading and does not accurately present the
Township’s position or concerns. The Township has 30 days to respond to the letter. Bingham Township
will state no final position has been reached and the Township will continue to seek a mutually
beneficial working relationship with CAFR. The Township board is in agreement that the CAFR service is
not the issue and prefers to remain an active and positive partner in CAFR.

Motion by Trustee Hufnagel to have Supervisor Ostrowski respond to the ISO letter within the 30 day
period.- Support by Treasurer Trebesh. Motion passed.

Motion by Trustee Hufnagel to contact attorney Fahey to update and develop a strategy to protect
Township’s assets and interests.- Support by Treasurer Trebesh. Motion passed.

Supervisor Ostrowski stated he is unable to attend the December 14th CAFR meeting and seeks a
replacement. Motion by Trustee Harger to have Trustee Hufnagel represent Bingham Township at the
December 14th CAFR meeting.- Support by Treasurer Trebesh. Motion passed.

10 B CAASA will discuss the 2011/2012 budget at its January 2011 meeting. The delay is a result of the
unfortunate death of the CAASA treasurer in November.

10 C Treasurer report: Treasurer Trebesh reported the winter tax bills were mailed out Saturday
November 27th and approximately $250,000.00 of total tax receipts had been collected by December
13th. Trebesh reported the Township’s general fund portion was approximately $15,000.00.
Bank reconciliation shows cash as of November 30th is $49,367.01. Approximately $47,000.00 of this
amount is srf related and not available for general fund expenditures.

First Bank requested an authorized township officer sign a “agent attestation form”. This form allows
the assignment of a cusip # to the security /debt financed by the bank. The cusip # will enables First
Bank to register the debt instrument and subsequently sell the security on the secondary market.

Motion by Trustee Hufnagel to authorize Treasurer Trebesh to sign document.- Second by Trustee
Harger. Motion passed.

Motion by Trustee Harger to accept the Treasurer’s report. -Second by Trustee Hufnagel. Motion
passed.

10D, Clerk’s Report: With the absence of Clerk Kus, Supervisor Ostrowski presented the invoice register.
Based on the Treasurer’s report, stating approximately $15,000.00 of general fund monies are available
the board identified/authorized approximately $13,500.00 of past due invoices to be paid. In addition,
the Board authorized Clerk Kus to prepare the checks for the invoices covered by SRF disbursements
which is expected to be received Friday, December 17,2010 as well as payment to Allstate Directional
Drilling which was being held back.

Motion by Trustee Hufnagel to have Clerk Kus prepare checks for the identified invoice, SRF payments
and Allstate Directional Drilling holdback and report the exact amount of these invoices. -Support by
Trustee Harger. Motion passed.

10E. Supervisor’s Report: Supervisor Ostrowski stated we need to work on next year’s budget and he
will propose several dates at our next meeting.

Adjournment:

Motion to adjourn by Treasurer Trebesh.-second by Trustee Hufnagel. Motioned passed.

Meeting adjourned 9:45 p.m.



Minutes respectfully submitted by,



Michael Trebesh, treasurer

				
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