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Bingham Township Regular Board Meeting

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Bingham Township Regular Board Meeting

     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.

    thSupervisor Ostrowski stated he is unable to attend the December 14 CAFR meeting and seeks a

    replacement. Motion by Trustee Harger to have Trustee Hufnagel represent Bingham Township at the

    thDecember 14 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

    thNovember 27 and approximately $250,000.00 of total tax receipts had been collected by December th13. Trebesh reported the Township’s general fund portion was approximately $15,000.00.

    thBank reconciliation shows cash as of November 30 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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