Meeting Minutes

May 5, 2004

The regular meeting of the Board of County Road Commissioners of the County of Calhoun was held Wednesday, May 19, 2004 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

Dennis A. Randolph, Managing Director

Carole S. Tabiadon, Deputy Managing Director-Clerk

Joanna I. Johnson, Assistant Managing Director

Pixie Coats, Human Resources Director

Also Present: Tom Frank, Albion Township Supervisor

Clinton Bolton, Leroy Township Supervisor

Joseph Bramble, Convis Township Resident

Dennis Smock, Fredonia Township Resident

Clarence Millard, Newton Township Resident

George Zollner, All State Insurance

Larry Spaulding, ReMax Reality

Barry Adams, Calhoun County Road Commission

David Fuller, Calhoun County Road Commission

Roger Horton, Calhoun County Road Commission

Jim Russell, Calhoun County Road Commission

Robert Volkmer, Calhoun County Road Commission

Chairperson Chester Travis called the meeting to order at 9:00 a.m. There being no additions or corrections to the regular meeting minutes of May 5, 2004, they stand approved as printed and distributed.

COMMUNICATIONS

•  Letter from Nedra Wolfe regarding insurance claim

UNFINISHED BUSINESS

Carole Tabiadon, Deputy Managing Director, stated that the Garfield Road gravel pit property has been listed with ReMax Reality of Marshall. The Phase I Environmental Study has been completed and the Phase II Environmental Study is in process. Annette Chapman, Parks and Recreation Director of Calhoun County, has suggested an area of approximately 12 acres that could be retained as a potential future roadside park. Larry Spaulding, ReMax Reality, said that he is working with a surveyor to determine the possible splits to that property. The public auction is scheduled for 6:00 pm on July 15, 2004 at their facility on Old 27 North in Marshall. Mr. Spaulding stated that several open houses' would be held in advance of the public auction. He advised the Board to sell the property as an absolute sale with no reserves. He feels that typically this type of sale does better. The evening of the sale, someone from the Road Commission will need to be on hand to sign the purchase agreements. Commissioner Travis suggested that we leave this decision until the next Board meeting.

NEW BUSINESS

Moved by Commissioner Veramay and supported by Commissioner Travis to approve Resolution 2004-08l Buckle up America! Week . Voice vote: Motion carried.

Resolution 2004 - 08

“BUCKLE UP AMERICA ! WEEK”

WHEREAS , May 24-31, 2004 has been declared national “ Buckle up America ! Week” ; and

WHEREAS , motor vehicle crashes are the greatest single cause of death in the United States for American children; and

WHEREAS , when used, lap and shoulder safety belts reduce the risk of fatal or serious occupant injury to front-seat passengers by 45 to 55 percent; and

WHEREAS , research has shown that if a driver is unbuckled, 70 percent of the time children in the vehicle are also unbuckled; and

WHEREAS , through continued public awareness, education and enforcement of safety belt laws and usage, death and serious injury should be significantly reduced.

NOW, THEREFORE , the Board of Calhoun County Road Commission, in recognition of this national life-saving opportunity, joins with others across the country to proclaim our support for Buckle up America! Week and encourage the community to support and endorse public education initiatives, public-private partnership efforts to ensure restraint use and the enforcement of current seat belt and child safety seat laws.

Moved by Commissioner Veramay and supported by Commissioner Travis to authorize Dennis A. Randolph, Managing Director, to sign Application for Laying Out and Designating a County Drainage District; Pratt Park Development; Marengo Township and City of Marshall. Mr. Randolph has met with Calhoun County Drain Commissioner, Blain Van Sickle, regarding this and they are in agreement regarding what needs to be done. Voice vote: Motion carried.

Moved by Commissioner Veramay and supported by Commissioner Travis to rescind Policy Statement Number 27; Clothing Allowance for Employees Assigned to do mechanics work; per memo included. Voice vote: Motion carried.

RESCIND POLICY Statement No. 27

Regarding: Mechanics Clothing Allowance

The language within the policy has been reflected in the Teamster Local 214's 2001 – 2006 Labor Agreement. The labor agreement becomes the agreement to be executed.

We respectfully request that Policy Number 27 be rescinded, effective as of this date.

Moved by Commissioner Veramay and supported by Commissioner Travis to amend Policy Statement Number 29, Travel; as presented. Voice vote: Motion carried.

POLICY Statement Number 29

SUBJECT: Travel

The purpose of this policy is to give general definition and guidance to those travel related expenses incurred by the Board of County Road Commissioners and its employees that will be reimbursed. In general, reimbursable expenses shall be those incurred by a commissioner or employee that is relatable to Road Commission business and interest. Some examples of reimbursable and non-reimbursable expenses are included within this policy to assist in a better understanding, but are not intended to serve as an exhaustive list of either reimbursable or non-reimbursable expenses.

All commissioners and employees traveling on official business are expected to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business. All travel must be authorized and approved by the Managing Director, Assistant Managing Director or Deputy Managing Director.

Vehicle Mileage – Compensation for personal automobile mileage, whether the travel is inside or outside the county, would be reimbursable if use of the private vehicle has been authorized, in advance, as being in the best interest of the Road Commission. Mileage will be paid at .375 cents per mile (2004 I.R.S. rate).

Charges for gasoline, lubrication, minor repairs, antifreeze, towing and other similar expenditures will be allowed as reimbursable items when a Road Commission vehicle is used. Such charges will not be allowed as reimbursable when private vehicles are used.

Travel vouchers must show the places between which travel was performed. Mileage will be allowed on the basis of current State Highway Department map of Michigan. Vicinity mileage necessary for conduct of official business is allowable. Such mileage in excess of 50 miles in one day should be supported by a listing of the vicinity itinerary in sufficient detail to justify the mileage claimed.

If travel is by a Road Commission owned vehicle, the number of the vehicle must be entered on the voucher. If travel is by private vehicle, point to point mileage, with vicinity mileage must be shown.

Parking Charges – Reimbursement for parking charges while on official travel is allowable. Receipts must be attached to the travel voucher, except that reimbursement for meter parking charges will be paid without receipts, if reasonable and approved.

Meal Allowance – The cost of a meal purchased for personal consumption while traveling overnight on Road Commission business would be reimbursable. Meals related to and integrated with meetings which involve Road Commission business shall be reimbursable. A meal purchased during the working day, not an overnight stay, would not be reimbursable. The standard meal allowance is $31.00 per day (2004 I.R.S. rate). The breakdown per meal rate schedule would be: $6.00 each for breakfast or lunch; $16.00 for dinner; and $3.00 for incidentals.

These prices are in effect for individual meals; but when a commissioner or employee is gone for the entire day; the daily rate will apply. The cost of alcoholic beverages will not be reimbursed.

Guest Meals – the cost of guest meals is allowable when incurred by a commissioner or employee only if it can be shown that such cost is incidental and necessary to the conduct of official Road Commission business. In no case will the amount allowed be in excess of the maximums established in this policy. Full explanation must be given on the voucher, including the name and position held by the guest. Identification of Road Commission business must be stated on the voucher. Receipts are required. The cost of alcoholic beverages will not be reimbursed.

Lodging – Use taxes, applicable to lodging charges are reimbursable in addition to the regular lodging charge. Whenever possible, lodging expenses will be paid in advance with a tax exemption letter utilized to avoid paying sales tax on the lodging charge. When the cost of lodging has not been paid for in advance, receipts for lodging expenses are required. Use of a generally recognized credit card will be accepted as evidence of payment, if supported by the receipt showing evidence of payment. Only the actual lodging expenses paid, plus tax, is allowable. Room service charges, valet charges, telephone charges are example of expenditures that will not be reimbursed.

When a commissioner or employee shares lodging with non-road commission employees (spouses, friends) reimbursement will be as follows: 1) if the Road Commission pays the lodging cost in advance, the employee will reimburse the Road Commission for the amount exceeding the single room rate. 2) If the employee pays the lodging cost, the reimbursement to the employee will be at the single room rate. (2004 I.R.S. rate is $55.00 per night.)

Conventions, Conferences, Seminars, Meetings – The following rules have special application to conventions, conference, seminars and meetings which commissioners and employees attend as official representatives of the Road Commission.

In no case shall an employee who is furnished lodging or meals with charge be entitled to the allowance provided by these regulations.

Enrollment or registration fees for conventions, conference, seminars and meetings of associations or organizations are allowable for commissioners or employees attending as an official representative of the Road Commission. A program, literature or receipts must be attached showing whether or not meals are included in the fees. Meals that are pre-determined or set by an organization in excess of the rate schedule will be reimbursed at the actual cost with documentation.

Miscellaneous Expense – It is expected that miscellaneous expenses incidental to official Road Commission travel will be held to the minimum amount required for essential and efficient conduct of Road Commission business.

General Provisions – All claims shall be submitted for reimbursement within fifteen (15) days after the close of the travel period.

Each commissioner or employee filing a claim for reimbursable expenses shall submit an itemized statement of those expenses, attaching receipts when they are required by this policy or when they are reasonably attainable. Itemization of expenses for commissioners and employees of the Road Commission shall be reviewed and approved by the Managing Director, Assistant Managing Director or Deputy Managing Director prior to reimbursement.

An authorized agent may not approve their own voucher.

Moved by Commissioner Veramay and supported by Commissioner Travis to amend Policy Statement Number 60; Procedure for Issuing Purchase Orders; as presented. Voice vote: Motion carried.

POLICY Statement Number 60

SUBJECT: Procedure for Issuing Purchase Orders

In order to properly manage the expenditure of Road Commission funds, a complete picture of all goods and services purchased is needed. Road Commission programs are set up to provide reports and purchase summaries. To insure the reports generated by our accounting system are accurate, it is necessary to consolidate the function of issuing purchase orders. There the following procedure for issuing purchase order is to be followed:

•  All purchase orders will be authorized by the Managing Director, the Assistant Managing Director, the Deputy Managing Director, or a designated authority.

•  Purchase orders will only be authorized after the budget and appropriate accounts are verified for adequate funds.

In the event of an emergency caused by weather, natural disaster, or other extreme situation an emergency purchase order may be issued without the normal funding availability certification. However, the proper approvals must be obtained within two working days.

Specific Instructions are as follows:

A Purchase Requisition Form must be completed before all purchases are made. Complete the purchase requisition form, including the cost, vendor information, account number, department head notification and any other information for purchasing and accounting.

Please plan accordingly to insure ample approval time for your request. Forward the form to the appropriate department head and then management for approval. If an emergency purchase is needed (under $100.00) a Purchase Requisition Form must be completed immediately after purchase.

After department head and management approval, the form will be returned to you for further processing. Contact the Inventory Clerk with the cost and vendor information to have the purchase order number assigned. ONLY after the purchase order number is assigned, may you place the order.

Send the purchase requisition form to the Inventory Clerk to complete the cycle after you have placed the order. The Purchase Requisition Form is attached to the purchase order and invoice by the Inventory Clerk.

CREDIT CARD PURCHASES: Obtain the credit card number from the Deputy Managing Director or assigned credit card. For all credit card purchases, forward the Purchase Requisition form directly to Accounts Payable after department head and management approval; individual purchase orders are not necessary for credit card purchases.

The Managing Director; Assistant Managing Director; Deputy Managing Director are authorized to approve Purchase Requisition Forms.

All purchases should be entered into our computer system immediately by our accounting staff for accurate reporting.

Moved by Commissioner Veramay and supported by Commissioner Travis to amend Policy Statement Number 61; Purchasing; as presented. Voice vote: Motion carried.

POLICY: Statement Number 61

SUBJECT: Purchasing

This policy shall govern all purchasing by the Calhoun County Road Commission. It shall apply to purchases of supplies, equipment, repairs, materials, services, construction and other items or activities for which a consideration is to be paid.

All purchasing should be accomplished so as to promote maximum competition among suppliers, to assure the greatest economy consistent with quality requirements and to avoid any appearance of impropriety, favoritism or conflict of interest on the part of responsible officials or employees. This policy shall be interpreted to accomplish these objectives.

When other factors are equal or approximately equal, suppliers and contractors located in Calhoun County or utilizing labor from Calhoun County shall be preferred in the award of contracts.

The Managing Director shall administer the provisions of this policy. For recurrent category of purchases, the Managing Director shall see that a list of prospective bidders is compiled and maintained. Such lists shall be updated annually.

FORMAL PROCEDURES shall be employed:

•  When the estimated cost of the contemplated purchase exceeds $10,000. (Except under emergency conditions, in which case the limit shall not exceed $20,000.)

•  When the road commission decides to build or rebuild a road or bridge by a method other than by employment of day labor and purchase of necessary materials of an amount greater than $20,000 total project cost.

•  For the purchase of passenger vehicles and trucks weighing less than 5,000 pounds.

These formal procedures may also be employed in lieu of informal procedures when the Managing Director deems them appropriate.

1.       An "Invitation for Bids" shall be published at least once in a newspaper of general circulation in Calhoun County. The "Invitation for Bids" may also be placed in a trade magazine, if deemed appropriate. Publication shall proceed the last day for submitting bids by at least seven (7) days. The "Invitation for bids" shall include:

•  A concise description of the item(s) to be purchased for which sealed bids are solicited;

•  The location where any detailed specifications may be inspected or purchased, and where bid blanks may be obtained;

•  The date, time and place where sealed bids are to be submitted and publicly opened and read;

•  Any other information deemed appropriate by the Managing Director;

•  The following notice: "The right is reserved to reject any or all proposals or to waive any irregularities in bidding and to accept the proposal deemed to be in the best interest of the Calhoun County Road Commission."

2.       Copies of the "Invitation for Bids" shall be mailed to all suppliers on the list of bidder for the appropriate category, plus any others the Managing Director deems appropriate. Additionally, a copy shall be posted on a public bulletin board in the Calhoun County Road Commission office building.

3.       When deemed necessary by the Managing Director, a bid deposit not exceeding ten percent (10%) of the amount bid may be required of bidders. Such deposits may be made by posting cash, an appropriate bid bond, or a certified check payable to the Calhoun County Road Commission. No other form of bid deposit shall be acceptable. Bid deposits of bidders who refuse or otherwise fail to enter into a contract tendered to them shall be forfeited to the Road Commission as liquidated damages, unless the Board of County Road Commissioners of the County of Calhoun shall waive such forfeiture.

4.       Bids shall be received by the Managing Director or designate only in sealed envelopes clearly marked "Sealed Bids and only prior to the last time for submitting bids as designated by the "Invitation for Bids." When received, the Managing Director or designate shall mark the sealed bid envelope with the date and time of such receipt.

5.       Sealed bids shall be opened and read aloud by the Managing Director or designate in public, in accordance with the "Invitation for Bids." Any person may attend such opening and inspect all bidding documents.

6.       The Managing Director or designate shall tabulate all bids. A copy of the tabulation, together with all bidding documents, shall become a public record and be kept on file in accordance with the Department of Treasury's record Retention Schedule.

7.       The Managing Director shall notify and may recommend to the Board, for their approval, all contracts to be procedures are applicable and when such expenditures fall within the approved appropriation. The Managing Director or designate shall promptly notify successful bidders upon such award.

When the estimated cost of the contemplated purchase exceeds $5,000, but does not exceed $10,000, these INFORMAL PROCEDURES shall be employed unless specifically waived by the Board.

1.       Prior to the award of a contract, the Managing Director or designate shall solicit WRITTEN cost quotations from at least three different suppliers on the list of bidders for the appropriate category. In soliciting such WRITTEN cost quotations, the nature of the purchase related to quality specifications, quantity, standards of performance, delivery or completion dates, and so forth.

2.       The Engineer/ Manager or designate shall note on the tabulation which, if any, of the bidders were successful in receiving the contract award. If the successful bidder was other than the low bidder, the reasons shall be so noted on the tabulation.

3.       A copy of the tabulation shall become a public record and be kept on file for a period of three (3) years after award.

4.       The Managing Director may award a contract to the most responsible bidder.

When the estimated cost of the contemplated purchase exceeds $500 but does not exceed $5,000, these INFORMAL PROCEDURES shall be employed unless specifically waived by the Managing Director.

1.       Prior to the award of a contract, the Managing Director or designate shall solicit VERBAL cost quotations from at least three different suppliers on the list of bidders for the appropriate category. In soliciting such VERBAL cost quotations, the nature of the purchase shall be fully explained including particulars related to quality specifications, quantity, standards of performance, delivery or completion dates, and so forth.

2.       The Managing Director or designate shall note on the tabulation which, if any, of the bidders were successful in receiving the contract award. If the successful bidder was other than the low bidder, the reason shall be so noted on the tabulation.

3.       A copy of the tabulation shall become a public record and be kept on file for a period of three (3) years after award.

4.       The Managing Director or designate may award a contract to the responsible bidder.

When the estimated cost of the contemplated purchase does not exceed $500, the Managing Director shall employ such Road Commission procedures as may be expedient to assure attainment of the objectives of this policy.

Neither formal procedures nor informal procedures shall be required for acquisition of professional and consultant services. Competitive negotiation will be used.

Competitive negotiation is a method of contractor selection which includes the following elements:

1.       Issuance of a written "Request for Proposal" indicating in general terms that which is sought to be procured, specifying the factors which will be used in evaluating the proposal and containing or incorporating by reference the other applicable contractual terms and conditions, including any unique capabilities or qualification which will be required of the contractor.

2.       Public notice of the "Request for Proposal" at least five days prior to the date set for receipt of proposals by posting in a designated public area or by publication in a newspaper of countywide circulation or both. In addition, proposals may be solicited directly from potential vendors.

Professional and Consultant Services shall mean any type of professional service which may be legally performed only pursuant to a certificate or license from a State examining board, and any other type of similar contractual service (including consultants), required by the Calhoun County Road Commission but not furnished by its own employees, which is in its nature so unique that it should be obtained by negotiation on the basis of demonstrated competence and qualification for the type of professional service required and at fair and reasonable compensation rather than by formal or informal procedures.

The Road Commission may enter into contracts with out formal procedures, informal procedures or competitive negotiation for insurance if purchased through an association of which it is a member if the association was formed and is maintained for the purpose of promoting the interest and welfare of and developing close relationships with similar public bodies, provided such association has procured the insurance by use of competitive principles.

Except as otherwise specified herein, contracts shall be awarded to the "most responsible vendor." In determining the "most responsible vendor," price shall be considered as well as the following factors:

1.       The ability, capacity and skill of the vendor to perform the contract or to provide the service required;

2.       Whether the vendor can perform within the time specified;

3.       The character, integrity, reputation, judgment, experience and efficiency of the vendor, based upon objective verifiable information;

4.       The quality of performance previously displayed by the vendor;

5.       The vendor's history of compliance with applicable laws and ordinances relating to the contract performance desired;

6.       The adequacy of the vendor's financial resources;

7.       The quality, availability and adaptability of the supplies or services proposed by the vendor for the particular use required;

8.       The ability of the vendor to provide future maintenance or services relating to the subject of the contract;

9.       The number and scope of conditions attached to the bid;

10.   Whether the vendor is presently in default to the Road Commission for any reason.

For purposes of determining the appropriate procedure to be followed, purchases shall not be divided.

It shall be the responsibility of the Managing Director to inspect all materials, supplies or services purchased by the Road Commission and to determine compliance with the applicable contract. When appropriate, this function may be delegated to another administrative officer of the Road Commission with particular expertise in a given category of purchase.

No Road Commission official or employee with responsibilities under this policy shall have any personal interest, direct or indirect, in any contract or purchase made under this policy. Nor shall any such person accept any kickback, commission, fee, gift or gratuity of any kind from bidders, suppliers or contractors for personal use.

Moved by Commissioner Veramay and supported by Commissioner Travis to approve the May 10, 2004 accounts payable for $232,030.99. Voice vote: Motion carried.

Moved by Commissioner Veramay and supported by Commissioner Travis to approve the May 12, 2004 payroll for $131,780.07. Voice vote: Motion carried.

OTHER BUSINESS

George Zollner, All State Insurance, would like to offer additional supplemental insurance to employees and would like permission from the Board to work out the details with Mr. Randolph regarding information and benefits to offer employees. Commissioner Veramay stated that as clarification this is for employee paid options. Mrs. Johnson stated that this is very similar to AFLAC and would be through a payroll deduction plan.

Joanna Johnson, Assistant Managing Director, displayed and reviewed the new web site ( www.calhouncrc.net ). She explained various separate areas available and gave a basic overview of the features it contains.

Mr. Randolph provided the Board with the following information:

•  He demonstrated the new Photo Map program that we have. It can zoom into areas of aerial maps for greater detail and has many uses.

•  He displayed the daily work report that is completed each morning. The crews are filling potholes, mowing, sealcoat prep, ditching and culver work, as well as signing.

•  He gave each Commissioner a booklet of copies of all the thank you calls received.

•  The Beadle Lake Road project will start soon. Michigan Paving was awarded the bid. Ken Grenquist is back this summer. Angela Kline, Assistant County Highway Engineer, will be back to work by then and she will be assisted by engineering interns Tiffany Tesch and Amber Dibert-DeYoung. Tiffany Tesch has worked for us for several summers and is close to finishing her engineering degree.

•  We are a Road Commission first. He discussed the responsibilities of the Road Commission and our environment.

•  We reviewed the budget at the end of April and it is in line with where we need to be. There will be no budget adjustments at this time. Our winter maintenance balance is 13% - 20% left for next fall; we try to keep about 15%. The state maintenance budget is also right on target. We do need to do a periodic review for audit purposes; however there will be no adjustment to bring to the Board at this time. We will review again at mid-year.

Commissioner Travis thanked Joanna Johnson for all her work on the web site.

Tom Frank, Albion Township Supervisor, said he was anxious to see the 2004 construction season start. He said the web site looks good. He thanked the crew for cleaning up D Drive South between 28 Mile Road and 29 Mile Road.

Clinton Bolton, Leroy Township Supervisor, inquired into the status of the plans for H Drive South Phase II reconstruction. Mr. Randolph said they were in good shape and will probably bid at the end of the year for next year's program. Mr. Bolton asked if the Photo Maps were available to download. Mr. Randolph replied that was a software program from a private company and we only have a few licenses, but he could purchase the program if he wanted it. Barry Adams could give him the vendor information. Mr. Bolton noted several areas that need some repair work.

Clarence Millard, Newton Township resident, said that he turned in a list of potholes.

Joseph Bramble, Convis Township resident, said thank you for picking up the trash along the roadside that he had requested. He is glad to see the crews working on N Drive North.

Jim Russell, Senior Superintendent, said that thank you call messages are posted in each garage for employees to see and know when we receive them.

The next regular meeting of the Calhoun County Road Commission Board is scheduled for Wednesday, June 2, 2004 at 9:00 a.m. in their office at 13300 Fifteen Mile Road, Marshall Michigan. There being no additional business before the Board, Chairperson Travis adjourned the meeting at 10:16 a.m.