The regular meeting of the Board of County Road Commissioners of the County of Calhoun was held Wednesday, March 1, 2006 at 9:00 a.m. in their office located at 13300 Fifteen Mile Road, Marshall, Michigan.

Present: Commissioner Chester E. Travis, Chairperson
Commissioner David D. Veramay, Vice-Chairperson
Commissioner Charles E. Monaweck, Member
Dennis Randolph, Managing Director
Joanna Johnson, Assistant Managing Director
Pixie Coats, Human Resource Director
Kevin Henning, Finance Director
Also Present: Tom Frank, Albion Township Supervisor
Steve Irons, Athens Township Supervisor
Larry Spoor, Burlington Township Supervisor
Julie Schafer, Convis Township Supervisor
Arthur Farmer, Lee Township Supervisor
John Neterer Nieterer , Leroy Township Supervisor
Eugene Hamaker, Marshall Township Supervisor
Jeff Adams, Newton Township Supervisor
Richard Harvey, Bedford Township Trustee
Robert Harrier, Burlington Township Trustee
Catherine Woodliff, Homer Township Treasurer
Joseph Bramble, Convis Township Resident
Clarence Millard, Newton Township Resident
Dennis Smock, Fredonia Township Resident
Todd Wildt, Homer Township Resident
Doug Wildt, Homer Township Resident
Marge Watkins, Burlington Township Resident
Lynn Hagelshaw, Burlington Township Resident
Kelly Hadlich, Newton Township Resident
Gardy Berezonsky, Marengo Township Resident
Nancy Dietz, Fredonia Township Resident
Chris Tanner, Clarence Township Resident
Doug Callander, Calhoun County Road Commission Labor Counsel
Kelly Riddle, Calhoun County Road Commission
Hershel Stacy, Calhoun County Road Commission
Jim Russell, Calhoun County Road Commission
Steve Ball, Calhoun County Road Commission
Robert Volkmer, Calhoun County Road Commission
Dave Fuller, Calhoun County Road Commission

Chairman Chester Travis called the meeting to order at 9:00 a.m. Chairman Chester Travis had an addition to the agenda under New Business; there will be a presentation by our Labor Attorney, Mr. Doug Callander. There being no additions or corrections to the regular meeting minutes of February 15, 2006 they stand approved as printed and distributed.

COMMUNICATIONS AND RESOLUTIONS

•  Received a Resolution from Albion Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program

•  Received a Resolution from Clarence Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program

•  Received Resolution 2006-02-10, from Convis Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program

•  Received Resolution 2006-02-06, from Leroy Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program

•  Received a letter from M & M Pavement Marking, Inc. regarding the volatile material pricing for traffic paint and reflective beads

•  Received two letters dated February 7 th and February 9 th from Athens Township regarding concerns with the employment contracts

•  Received a letter from the Village of Athens regarding concerns with the employment contracts

•  Received a letter from Lynn Hagelshaw regarding the conditions of the roads in Burlington Township and the employment contracts

•  Received a letter from Calhoun County Farm Bureau regarding concerns with the employment contracts

•  Received a memo from Kevin Henning and the Updated 2006 Fee Schedule

•  Received a letter from MDOT rejecting the installation of a traffic signal at M-227 and A Drive (Hughes Street)

NEW BUSINESS

Moved by Commissioner Monaweck and supported by Commissioner Veramay to approve the February 24, 2006 accounts payable for $321,549.57 . Voice vote: Motion carried.

Moved by Commissioner Veramay and supported by Commissioner Monaweck to approve the February 15, 2006 payroll for $141,376.55. Voice vote: Motion carried.

Moved by Commissioner Veramay and supported by Commissioner Monaweck to approve the Resolution from Albion Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program . Voice vote: Motion carried.

Moved by Commissioner Monaweck and supported by Commissioner Veramay to approve the Resolution from Clarence Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program . Voice vote: Motion carried.

Moved by Commissioner Monaweck and supported by Commissioner Veramay to approve Resolution 2006-02-10, from Convis Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program . Voice vote: Motion carried.

Moved by Commissioner Monaweck and supported by Commissioner Veramay to approve Resolution 2006-02-06, from Leroy Township requesting that the Calhoun County Road Commission include the recommended road improvements to the 2006 Road Improvement Program . Voice vote: Motion carried.

Moved by Commissioner Veramay and supported by Commissioner Monaweck to approve the Updated 2006 Fee Schedule . Voice vote: Motion carried.

Mr. Doug Callander gave the following presentation to the Board regarding the employment contracts.

Mr. Callander stated that he was asked by the Board to review the current management contracts for all four of the upper level management of the Road Commission, including the Managing Director, Assistant Managing Director, Finance Director and the Human Resource Director. He did the review along with the Board Chairman and also reviewed seven other Road Commission contracts, the Calhoun County Administrator's contract and the Assistant County Administrator's contract. He presented the Board members with a summary and joint recommendations.

Mr. Callander cleared up some legal issues that were raised by some members of the public as well as by the Board with the following explanations.

•  There is nothing unlawful about having a contract that exceeds the terms of the elected officials with whom the employee is contracted.

•  It is appropriate for the Board to make a decision about the duration of the contracts but it is an operational and business decision that belongs with this Board. It is not a legal issue.

•  The current contracts are lawful and enforceable and there is no legal prohibition against a rolling contract. This is a business and operational decision made by the Board.

•  The Calhoun County Administrator has a rolling contract himself.

Mr. Callander stated that the Board has lawful binding enforceable agreements with all four of the present management officials. These contracts have been reviewed and approved by the Board, which makes them legal, binding and enforceable. Mr. Callander stated that he will not, and can not recommend that the Board breach these agreements or that they unilaterally try to change them during their terms.

Mr. Callander stated that his first recommendation would be to honor the present agreements by their terms, for the duration, which is through the end of 2008.

The Finance Director's position has a contract that expires at the end of this calendar year. This will need to be addressed, so that we can have one ready to go at the end of the year.

Mr. Callander stated that it was not appropriate in his opinion and that opinion of the Chairman to present new terms of a new agreement now for the Managing Director unless, and until that agreement expires or for some reason the Managing Director is no longer here. The Managing Director has no plans either way and we thought it was not appropriate to make changes to that agreement now.

It is clear that the Managing Director hires and fires the employees of the Road Commission. The Managing Director does the day-to-day operational and directional decision making for the Road Commission. Not the policy making that the Board is charged with. The Managing Director will directly supervise the Assistant Managing Director, who will in turn supervise the Finance Director and the Human Resource Director.

The following are recommendations made and presented to the Board by Mr. Callander and Chairman Travis on the employment contracts for the Assistant Managing Director and the Finance Director to be implemented after the expiration of the current contracts, which will not end until December 31, 2008:

•  It is recommended that the contracts be a fixed three-year term.

•  The salary and benefits will be determined at the outset

•  They are both an at will employee and serve at the pleasure of the Managing Director

•  If fired without cause, they receive 6 months severance.

•  Their compensation is set at 2% a year but the Board may determine to give an annual increase above the minimum.

•  All disputes are subject to binding arbitration.

The Human Resource Director position is unique and we are taking a completely different direction in our recommendations. She was taken out of the SEIU bargaining unit and appointed as the Human Resource Director responsible for very sensitive information and for assisting in policy and collective bargaining. The Human Resource Director is not at the same management reporting responsibility as the Assistant Managing Director and the Finance Director.

We are recommending the following for the Human Resource Director:

•  The contract will be a fixed three-year term.

•  She will be a just cause employee and may be fired only for just cause.

•  She will have the protection of the just cause relationship.

•  She will be given the same wages, benefits and increases as negotiated with the SEIU Unit II bargaining unit.

•  She will not receive a severance if terminated with cause.

•  She will have the right to resort to arbitration in the event she believes she was terminated without cause.

Mr. Callander asked that the Board direct him or an appropriate person to draft complete contracts. The above recommendations are only an outline of the material terms. Mr. Callander stated that he feels that he has addressed all the issues that he was asked to address from Mr. Chairman and the other two Commissioners. Mr. Callander said he feels these new contracts are fair to the Board and fair to the employees. He wants a clear understanding that the Board has a current legal commitment until the end of 2008. Mr. Callander is recommending that the Board not breach their commitment. Mr. Callander asked if anyone had any questions.

Commissioner Monaweck said that he was very satisfied with the work done and as far as he is concerned it's an improvement.

Commissioner Veramay stated that he was happy with what Mr. Callander presented.

Mr. Berezonsky stated that if they get a 2 % raise he doesn't want to see it added to the base salary. He is fine with the raise, but thinks it should be a lump sum because it only makes their salary go up every year. Mr. Berezonsky said that he has a problem with the County doing the same thing only they call it a cost of living raise.

Ms. Riddle stated that the 2% increase is less than the 3 ½ % increase that the rest of the employees received. Mr. Callander stated that he understood that, but felt that the 2% was fair for everyone. Mr. Callander then asked the Board if they wanted him to draw up the contracts.

Commissioner Veramay made a motion to have Mr. Callander draw up new contracts based on the presentation today and we will add comments when the contracts are available. Commissioner Monaweck supported the motion. Voice vote: Motion carried.

MANAGING DIRECTOR'S REPORT

Mr. Randolph provided the Board with the following information:

•  About 13 crews are have been out patching potholes

•  The crews put out 5,000 tons of cold patch, compared to the 2,600 tons last year

•  According to the temperature data, the major part of the thaw has already past

•  As of now we won't be posting weight limits but we will still monitor the weather

•  We have manufactured additional kettles for our tar and chip

•  Tree crews are out

•  We had a few snow days

•  Finishing up on Pennfield Road project

•  Submitted the Union City project

•  Haven't received many requests for permits

•  Continue the design work for the Custer Road Bridge

•  Roadsoft update includes bridges, culverts, movement marking, traffic data and crash data

•  Working with Marshall Township on a 5 year plan

•  Waiting on cost estimates for 21 Mile Road Bridge over Rice Creek

•  Submitted a Safety Grant application for the intersection of 11 Mile Road and Verona Road

•  Working on road repair all over the County

•  Marshall Township came in with a resolution for tree removal match work on 17 ½ Mile Road

COMMISSIONERS' COMMENTS

Commissioner Monaweck stated that he had received three calls about the great job that was done on tree trimming on H Drive. He thought that is shows that there are people out there that care. He commented that another lady had called him on Q Drive, east of 6 Mile Road and is very pleased with the gravel and the stone that was placed in the holes.

Commissioner Monaweck also stated that he was questioned in East Leroy about the load limits and when they were going to be put up or what was going to be done with them.

Commissioner Monaweck stated that he wanted to make a comment about the tree trimming. From his experience with tree trimming at the telephone company he can tell us from a personnel observation that he is very happy with the way the guys do the nice flush cuts. He stated that he appreciates driving down a road and seeing the trees cut flush.

Mr. Randolph stated that Mr. Steve Chamberlain, has watched over the tree crew and does an excellent job. The operator of the Boom Mower does a nice job also and we don't hear nearly as many complaints as we did a few years ago.

Commissioner Veramay asked Mr. Randolph if we could get some kind of a recommendation on dead deer. He stated that we have tried to work with the State and the DNR. Commissioner Veramay said that he doesn't feel that it is the responsibility of the Road Commission to pick them up. He understood that it cost up about $80,000 a year. He commented that MDOT gets paid to pick up deer on the highway and he thinks the Road Commission should get paid as well. The State of Michigan owns this deer herd and they are letting it get out of hand and especially in Calhoun County. It is getting to the point that the Road Commission can't afford to put out that kind of money especially when the cost keeps going up each year. I think we need to develop a policy to share the responsibility and the cost. Commissioner Veramay would like to see Mr. Randolph come up with a recommendation and share it with the Board.

SUPERVISORS' & PUBLIC OFFICIALS' TIME

Mr. Hamaker stated he is working on the 5-year plan with Mr. Randolph. He also commented that they are working on a policy that if the people want trees down then they will have to share the expense. Mr. Hamaker stated that we just can't go on and on without any money.

Mr. Irons stated that the grader was down in Athens and we had a little problem and called back over to the Road Commission and met with a couple of Supervisors. They informed him that the grader would be back and he was wondering if they were still planning on it. Mr. Ball told Mr. Irons that they have one grader down right now but plan on doing a lot more work on all the gravels. Mr. Irons also inquired about when they would get to the tree trimming on Q Drive. Mr. Russell said that we would need to prioritize our work accordingly. Mr. Irons said that he wanted to commend all of the Commissioners on the contracts and that he thinks they will be fair all the way around. Mrs. Johnson noted she had already addressed his concern when he called last week regarding the grader and berm.

Mr. Spoor asked if he would be able to get a chance to review the draft of the contract. Commissioner Travis said the he would be able to have a copy of the draft that was presented.

Mr. Frank inquired what the changes were to the updated fee schedule. Mr. Henning stated that the only updates to the schedule taking off the column for private roadwork and eliminating the planning department. Mr. Henning said there were no changes to the cost of township road construction or permits. Mr. Frank asked if the new schedule would be sent out. Mr. Henning replied that they would be sent out with the minutes.

Mr. Frank asked if the Road Commission was going to still have a free mile of gravel. Mr. Randolph replied that our MTF checks are down and he wasn't sure how long we would be able to continue to do it. He stated that he would have to wait and see what the checks look like and then make a recommendation to the Board. Mr. Randolph commented that it was approved this year in the budget but he can't say what will happen next year.

Ms. Johnson stated that she and Mr. Henning have been working on the expenses and she hopes to soon make a determination and a recommendation to the Board.

Mr. Jeff Adams stated that Jim Russell was at their last township meeting and he had addressed some issue on the gravel roads on F Drive and 6 ½ Mile Road. He came out the following day and did an excellent job. We talked about B Drive S along Binder Park Golf Course. There are some old dead trees leaning into the roadways. Mr. Adams would like to see us get some of those out of there before they cause a problem.

CITIZEN'S TIME:

Ms. Dietz commented about the gravel roads in Fredonia Township. The grader has been doing a super job and the roads are in great shape. Ms. Dietz commended the Board on the attention to the contract and felt they did a great job.

Mr. Callander asked Mr. Spoors if he was talking about a copy of the draft that was presented or a copy of the contract after it is drafted. Mr. Spoors said he wanted a copy of the contract after it was drafted and before the Board acted on it. Commissioner Travis said that he would not be able to provide that before the meeting, but he was welcome to come to the meeting.

Mr. Hamaker wanted to make sure that for the tree work on 17 ½ Mile Road, that his people aren't paying, when other people are getting the work for free. This is why we have a program set up so that when someone wants trees down they have to pay for it. It wouldn't be fair if others didn't have to pay.

The next regular meeting of the Calhoun County Road Commission Board is scheduled for Wednesday, March 15, 2006 at 9:00 a.m. There being no additional business before the Board, Chairperson Travis adjourned the meeting at 9:59 a.m.