Mason, Michigan

*APPROVED MINUTES*

Mason, Michigan

August 23, 2007

The Board of Ingham County Road Commissioners met for a regular meeting on Thursday, August 23, 2007, at 6:00 P.M. in the Board Room of the Ingham County Road Commission’s Austin E. Cavanaugh Administration Building located at 301 N. Bush Street, Mason, Michigan.

Present: Larry R. Smith, Chair, Joseph A. Guenther, Vice Chair, and Shirley M. Rodgers, Commissioner.

Also Present: Joseph D. Pulver, Acting Managing Director, Deborah L. Bellows, Secretary to the Board, Kathryn M. Haves, Director of Administrative Services, Robert H. Peterson, Director of Engineering, and James L. Charles, Sign and Signal Manager.

Others Present: Duane E. Yerks, SEIU President and Fleet Manager, Dale E. Arnett, Eastern District Supervisor, Dan Chapman, OPEIU Chief Steward and Engineering Dept. employee, Rick Phillips, Construction Engineer, Will Comstock, ICRC employee, Rob Alling, ICRC employee, and Mike Nolan, Cynergy Wireless.

Chair Smith called the meeting to order and led with the Pledge of Allegiance.

AGENDA ITEM #4 – ADDITIONS TO THE AGENDA.

A. Add as Agenda Item #10C, clarification of MERS conference attendees.

B. Add as Agenda Item #13F, Local Road Agreement with Vevay Township.

C. Add as Agenda Item #13G, Local Road Agreement with Alaiedon Township.

D. Add as Agenda Item #13H, Local Road Agreement with Aurelius Township.

AGENDA ITEM #4 – CONSENT ITEMS.

Moved by Commissioner Guenther and Supported by Commissioner Rodgers, that the following items be approved under consent:

A. Agenda Item #6 – Minutes.

B. Agenda Item #7 – Routine Permits.

C. Agenda Item #10A – Accounts Payable.

3 yes, 0 no. Motion carried unanimously.

Agenda Item #6 – Minutes.

Moved by Commissioner Guenther and Supported by Commissioner Rodgers, that the minutes of the meeting of August 8, 2007, be approved as presented. 3 yes, 0 no. Motion carried unanimously.

Agenda Item #7 – Routine Permits.

Moved by Commissioner Guenther and Supported by Commissioner Rodgers, that routine permits be approved as follows:

07-0271 07-0484 07-0489 07-0490 07-0492 07-0495

07-0497 07-0509 07-0510 07-0511 07-0512 07-0513

07-0514 07-0517 07-0526 07-0527 07-0272 07-0485

07-0486 07-0487 07-0488 07-0491 07-0493 07-0494

07-0496 07-0498 07-0499 07-0500 07-0501 07-0502

07-0503 07-0504 07-0505 07-0506 07-0507 07-0508

07-0515 07-0519 07-0521 07-0523 07-0524 07-0525

3 yes, 0 no. Motion carried unanimously.

Agenda Item #10A – Accounts Payable.

Moved by Commissioner Guenther and Supported by Commissioner Rodgers, that the accounts payable for the two week period from August 6-19, 2007, be approved as follows: check numbers #88915 through #89001, totaling $177,683.78. 3 yes, 0 no. Motion carried unanimously.

AGENDA ITEM #8A – ACTING MANAGING DIRECTOR REPORTS.

A. Meridian Charter Township will be devoting the September issue of the Meridian Monitor to talking about roads and the proposed road millage versus special assessment districts. The Board was given a copy of the proposed newsletter.

B. In early October, Michigan Tech will be sponsoring a seminar on Transportation Asset Management – A Workshop for Elected Officials. The dates are September 26^th from 6-9 PM, or October 9^th at the Clinton County Road Commission from 9AM-12PM. Director of Engineering Bob Peterson said that the ICRC has been invited to participate. He stated that the ICRC could sponsor its own seminar in conjunction with Michigan Tech and invite all the area elected officials. Commissioner Rodgers stated she has attended statewide workshops and thinks this is a worthwhile effort. She said that she would prefer to have the ICRC host a workshop and invite all of the local municipalities, including charter township DDA’s and county elected officials. The date of September 27, 2007, from 1:00 PM to 4:00 PM was set for the workshop to be hosted by the ICRC.

C. The Board was informed of a request received for an audible crossing signal for the un-sighted at the intersection of Lake Lansing Road and Hagadorn Road. The cost is approximately $8,000. Staff would like to research the availability of any type of grant that might be out there for this type of signal crossing.

D. Eight pickup trucks will be purchased through the state purchasing plan. It is not currently known for sure what make and model they will be, but that information will be available by the September 20^th meeting.

AGENDA ITEM #9 – DELHI TOWNSHIP REQUEST TO CARRYOVER UNUSED LOCAL ROAD ALLOCATION FUNDS.

Delhi Township Manager John Elsinga was present for discussion of the Township’s request to carry over unused local road allocation funding from 2006 and 2007 to 2008. Mr. Elsinga stated that the bid price for the Pine Tree Road improvements came in so low that the Township’s DDA has offered to underwrite the cost of $120,000. The estimate for this project was $180,000. By using DDA funding for the Pine Tree Road project, the township would not have to set up an assessment district. If the financing for the project cost can be worked out in this manner, then the Township would have the entire 2007 allocation left over to work with for additional projects. If the Road Commission would approve the carry over of both 2006 and 2007 allocated funding, the Township would be able to address more of their local road resurfacing needs.

Director of Engineering Bob Peterson said that the 1995 work done on Pine Tree Road has deteriorated quite badly and is in need of re-paving. This is the project that the Township chose to do in 2007. When asked why the road had deteriorated so badly just since 1995, Construction Engineer Rick Phillips stated that in 1995 MDOT was requiring a different asphalt mix which, ultimately, proved insufficient and within three years roads were deteriorating that used this mix. Since this time, MDOT has changed the requirements for the mix to something that will last longer. Director of Operations Joe Pulver stated that Pine Tree Road also gets a lot of construction traffic.

Mr. Peterson stated he does not have a problem financing the Pine Tree Road improvements in the manner in which Mr. Elsinga has explained, and would not have a problem with carrying over the 2006 and 2007 allocated funding, but that, of course, is a budget issue, which he is unable to speak to. Mr. Peterson stated that typically Delhi Towship uses an assessment district to pay for all local road improvements. This process generally takes all winter to do because of the public hearings that are required of the township. Because of this process, the Township prefers to start planning early in the fall for the following year’s local road improvements so that the public hearing process can be completed by the next spring.

Mr. Elsinga stated that the Township will do whichever projects the Road Commission has determined to be necessary with the carryover money. He said if the Road Commission would allow them to carry over both the 2006 and 2007 local road allocations, they would have nearly $300,000 (including the ICRC’s match) to work with in 2008. Mr. Elsinga said they could resurface quite a few roads with this kind of money. He did indicate that the Township would need October, November and December to begin the assessment process for the 2008 projects.

Commissioner Rodgers agreed that Pine Tree Road is not in good condition and is in need of repair. She said she found Mr. Elsinga’s letter a bit confusing as to what it is exactly the Township is requesting. Commissioner Rodgers stated she is concerned with allowing a two year carry over for Delhi, when other townships have been turned down recently with the same type of request. She asked if there are special circumstances to justify a two year carry over? Commissioner Rodgers said she does not have a problem doing this as long as it can be justified.

Mr. Elsinga said he could do any projects that the Road Commission recommends. He said that Delhi Township uses special assessment districts for all of its share of the costs for local road improvement projects. The Township does not use any of its general fund monies toward road improvements. Mr. Elsinga said he thinks it is great that the DDA is willing to pay for the Pine Tree Road improvements. Now this frees up all of the township’s allocated funding for other projects. He just needs the Road Commission to tell him what projects to do in order to spend the money and so he can begin the special assessment process.

Commissioner Rodgers said she has an obligation to follow the Road Commission’s policy of only allowing one year’s carry over, unless there are extenuating circumstances. Vice Chair Guenther stated that if a township has a specific project that is a large costly project, they are normally allowed to phase that project over several years. In this case, more than one year’s carry over is usually approved by this Board. He asked if Delhi Township had a specific project it wanted to earmark these funds for?

Mr. Pulver said that in the last six years or so, there have been several townships who have had large projects that have been phased over three or four years and whatever funds are not used in one phase, are carried over to the next year to be used on the next phase of the project. The reasoning behind the Road Commission requiring a specific project, is because many years ago, some of the townships just wanted to keep adding many years’ worth of allocations, but would never do anything. The Road Commission would carry this money on its books, but it was never spent. The decision was made several years ago to require the townships to have a specific project if they wanted to carry over more than one years’ allocated funds.

Vice Chair Guenther also stated it is difficult for the smaller townships to have the kind of money required for large projects, without phasing them over a period of several years. Commissioner Rodgers said that based on what Mr. Pulver just explained, why hasn’t Mr. Elsinga then defined a specific project. She asked when Mr. Elsinga needed a decision by this Board. Mr. Elsinga asked if the Board could make a decision by the September 20^th meeting?

The Board responded yes, but in the meantime they would look at the policy on carry over of allocated local road improvement funds and take a look at the budget. Mr. Elsinga said that the Township already has approval to carry over the 2006 unused allocation to 2007. If the Board does not approve the request to carry that over to 2008, then they will exhaust those funds on the Pine Tree Road project.

AGENDA ITEM #10B – SELECTION OF AUDITING FIRM.

Director of Administrative Services Kathy Haves stated that the County’s Financial Services department will be recommending to the County Board, that the County discontinue its auditing contract with Abraham & Gaffney. She indicated that the Road Commission normally follows the lead of the County, since the Road Commission’s audit is part of the county audit. Chair Smith asked if the county board has made a decision on this yet? Ms. Haves said she thought it would be before them on September 13^th. Commissioner Rodgers asked Ms. Haves if she had a copy of the auditing contract? Ms. Haves said no. Commissioner Rodgers asked her to get it.

Commissioner Rodgers questioned whether an individual person could make that determination on an issue that important without input or knowledge of the full county board. She suggested that a conversation be had with Eric Schertzing to find out what has happened and the reasoning behind the decision to discontinue the contract. After all, this is only the first of a four year contract. Commissioner Rodgers stated it appears that, after a conversation with the Financial Services department, they were unhappy in three of four areas of the process. It appears the Road Commission is the only entity happy with the auditing firm. Commissioner Rodgers suggested conversations be had with the County to find out what is going on. She asked what it would cost if the Road Commission chooses to stay with the current auditing firm, if it would be more to split off from the county. She also said that she would assume the county would want to go out for new RFP’s rather than just reverting to the previous auditing firm.

Chair Smith said he would have a concern with Rehman Robson coming back without first doing new RFP’s. He stated he would give the lead of this issue to Commissioner Rodgers to pursue conversations with County personnel and/or commissioners on behalf of the Road Commission.

ADDED AGENDA ITEM 10C – CLARIFICATION OF MERS CONFERENCE ATTENDEES.

Director of Administrative Services Kathy Haves requested clarification of the MERS conference attendees. It was her understanding that only three people were going, but the minutes from the meeting of August 8^th indicates that four are to attend, both delegates and alternates. She stated that alternates have not been authorized to go the last few years. Vice Chair Guenther stated he thought the minutes were pretty clear that the Board wanted delegates and alternates to go. Commissioner Rodgers reiterated her pervious comments that anyone who may benefit from this conference should go. Chair Smith confirmed that delegates and alternates should attend the MERS conference.

AGENDA ITEM #11A – AWARD OF PROPOSAL #1516 - RADIO TOWER.

Also present for this discussion was Mike Nolan representing Cynergy Wireless.

Sign and Signal Department Manager Jim Charles recommended award of Proposal #1516 to the low bidder, Cynergy Wireless, for dismantling the existing Road Commission radio tower and constructing a new, 140 foot tower. Mr. Charles explained that the Road Commission will put in the foundation for the new tower. The intent is to have the new tower up and running before the end of the year. Mr. Charles stated the bid price of $39,956.00, plus the soil boring work which was conducted in 2006 in the amount of $2,000, is well under estimate.

Chair Smith asked how long it would take to dismantle the old tower and install the new one? Mr. Nolan stated it would be six to eight weeks. He said he would order the steel immediately and that would take about six weeks to arrive. Mr. Nolan said once work can begin, it will take about four days to complete.

RESOLUTION AUTHORIZING AWARD OF PROPOSAL #1516 FOR DISMANTLING AND REPLACING THE ROAD COMMISSION’S RADIO COMMUNICATIONS TOWER.

RESOLUTION #128-07

Moved by Commissioner Rodgers and Supported by Commissioner Guenther. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Sign and Signal Department Manager, the Board authorizes award of Proposal #1516 for dismantling and replacing the Road Commission’s radio communications tower to the low bidder, Cynergy Wireless, in the amount of $39,956.00.

AGENDA ITEM #12A – PRELIMINARY PLAT OF SANCTUARY NO. 2.

Director of Engineering Bob Peterson reviewed the Preliminary Plat of Sanctuary No. 2, which is located in Meridian Charter Township. He indicated this is a five unit residential subdivision containing six acres located east of Hulett Road and the existing Sanctuary subdivision, and north of Kansas Street. To accommodate these five lots, Robins Way would be extended easterly approximately 370 feet to the end, with a turnaround at the eastern property line. The current submittal represents the last phase of this development.

Mr. Peterson indicated the Kansas Street area is an older area and the township and the developer heard from the residents along Kansas Street that they did not want this development to connect to Kansas Street. Thus, the Meridian Township Planning Commission recommended no connection. The Township Board also approved the plan without the connection to Kansas Street.

Vice Chair Guenther asked if the turnaround at Robins Way would be permanent? Mr. Peterson stated not necessarily, since the property to the east is developable. Vice Chair Guenther asked if there would be emergency access from Kansas Street? Mr. Peterson stated an easement has been provided, but it is only for emergency access and utilities. There will be a seven foot pathway from Kansas Street that would be accessible. Director of Operations Joe Pulver stated Kansas Street is a gravel surfaced roadway and will not be able to handle a lot of additional traffic. Commissioner Rodgers stated it appears that there would be emergency access from Jolly Road. Mr. Peterson stated that is correct.

Commissioner Rodgers commented it is pretty difficult to have a world class city with gravel roads. Mr. Pulver stated that Meridian Township will not pave any of its gravel roads unless it receives a petition signed by 51 percent of the property owners. Then the property owners are assessed the cost of road improvements.

RESOLUTION APPROVING THE PRELIMINARY PLAT OF THE SANCTUARY NO. 2 LOCATED IN MERIDIAN CHARTER TOWNSHIP.

RESOLUTION #129-07

Moved by Commissioner Guenther, Supported by Commissioner Smith. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Director of Engineering, the Board approves the Preliminary Plat of the Sanctuary No. 2 located in Section 33 of Meridian Charter Township, with the condition that the turnaround at Robins Way be constructed and paved to the same cross section s the roadway to facilitate long-term maintenance. The proprietors of this plat are James Giguere and David Haynes.

AGENDA ITEM #12B – VARIANCE REQUEST FOR SIGN PLACEMENT.

Director of Engineering Bob Peterson said that McAlister’s Deli has requested a variance from the Road Commission to replace an existing sign at 4760 Marsh Road with a new modern sign at the same location. The proposed sign will be about five feet tall and a little more than seven and a half feet wide. The proposed new sign will be installed in the exact location as the sign that is currently in place. He stated the right of way along this portion of Marsh Road is 120 feet, 60 feet either side of the centerline. The sign will encroach the right of way by 2.5 feet. Mr. Peterson said that Meridian Township must consider a variance from the setback from the public right of way for the sign installation. The size and height of the sign will comply with the township’s zoning regulations or require a township variance also.

Mr. Peterson said the Road Commission staff inspected the site and has determined that the location of the sign will not have an effect on the motoring public and will not impact clear sight distance from existing driveways. Locating the sign out of the right of way will position the sign under a tree and behind some bushes, which will hide the sign. He recommended approval of the variance request to replace the sign.

RESOLUTION APPROVING VARIANCE REQUEST BY McALISTER’S DELI TO REPLACE A SIGN ALONG MARSH ROAD IN MERIDIAN CHARTER TOWNSHIP.

RESOLUTION #130-07

Moved by Commissioner Guenther and Supported by Commissioner Rodgers. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Director of Engineering, the Board approves the variance request on behalf of McAlister’s Deli located at 4760 Marsh Road in Meridian Charter Township to replace an existing sign with a new modern sign at this location.

AGENDA ITEM #12C – OUT OF STATE TRAVEL.

Director of Engineering Bob Peterson stated that the Design Engineer Dan Troia has requested travel to attend a two day training course on storm water detention basin design and a second two day course on storm sewer system design at the University of Wisconsin. Mr. Peterson stated that handling storm water flow is becoming more and more of a design issue and Mr. Troia would like additional training in this field. Lodging accommodations will not be necessary for Mr. Troia as he will be staying with family. Mr. Peterson recommended approval for Mr. Troia to attend the training courses.

RESOLTUTION AUTHORIZING OUT OF STATE TRAVEL FOR DESIGN ENGINEER DANIEL J. TROIA.

RESOLUTION #131-07

Moved by Commissioner Guenther and Supported by Commissioner Guenther. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Director of Engineering, the Board approves out of state travel for the Design Engineer to attend two, two day training courses at the University of Wisconsin on storm water detention basin design and storm sewer system design. The training courses will be held September 25-28, 2007.

AGENDA ITEMS #13A,B,E,F,G,H – LOCAL ROAD PAVING AGREEMENTS.

Acting Managing Director Joe Pulver reviewed the local road paving Agreements that have been returned by townships for 2007 local road work. He recommended approval of the Agreements.

RESOLUTION APPROVING LOCAL ROAD IMPROVEMENT AGREEMENT WITH LESLIE TOWNSHIP.

RESOLUTION #132-07

Moved by Commissioner Rodgers and Supported by Commissioner Guenther. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Acting Managing Director, the Board approves and signs a local road improvement Agreement with Leslie Township for improvements to Churchill Road between Bellevue Road and Deer Run Subdivision.

RESOLUTION APPROVING LOCAL ROAD IMPROVEMENT AGREEMENT WITH DELHI CHARTER TOWNSHIP.

RESOLUTION #133-07

Moved by Commissioner Guenther and Supported by Commissioner Rodgers. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Acting Managing Director, the Board approves and signs a local road improvement Agreement with Delhi Charter Township for improvements to Pine Tree Road from Jolly road to the cul-de-sac.

RESOLUTION APPROVING LOCAL ROAD IMPROVEMENT AGREEMENT WITH THE INGHAM COUNTY HOUSING AUTHORITY.

RESOLUTION #134-07

Moved by Commissioner Guenther and Supported by Commissioner Rodgers. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Acting Managing Director, the Board approves and signs a local road improvement Agreement with the Ingham County Housing Authority for drive approach improvements. These improvements will be paid 100 percent by the Authority.

RESOLUTION APPROVING LOCAL ROAD IMPROVEMENT AGREEMENT WITH VEVAY TOWNSHIP.

RESOLUTION #135-07

Moved by Commissioner Guenther and Supported by Commissioner Rodgers. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Acting Managing Director, the Board approves and signs a local road improvement Agreement with Vevay Township for improvements on Columbia Road between Every Road and the Township Line.

RESOLUTION APPROVING LOCAL ROAD IMPROVEMENT AGREEMENT WITH ALAIEDON TOWNSHIP.

RESOLUTION #136-07

Moved by Commissioner Rodgers and Supported by Commissioner Guenther. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Acting Managing Director, the Board approves and signs a local road improvement Agreement with Alaiedon Township for improvements on Willoughby Road between College Road and Hagadorn Road.

RESOLUTION APPROVING LOCAL ROAD IMPROVEMENT AGREEMENT WITH AURELIUS TOWNSHIP.

RESOLUTION #137-07

Moved by Commissioner Guenther and Supported by Commissioner Rodgers. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that upon recommendation of the Acting Managing Director, the Board approves and signs a local road improvement Agreement with Aurelius Township for improvements on Branson Bay Drive from Columbia Road to End.

AGENDA ITEM #13C – FILL TWO JOB VACANCIES WITHIN AFSCME.

Acting Managing Director Joe Pulver requested authorization to fill two vacant Class 4 positions within the AFSCME unit that were created earlier this year upon departure of two individuals. One vacancy is in the Metro District and one is in the Eastern District. Ultimately, after the internal posting process is complete, thee would be two vacancies to be filled from the outside that could range from a Class 3 to a Class 7 position, depending on inside transfers. Mr. Pulver said he would like to have these positions filled by the time the winter season starts.

Commissioner Rodgers asked how this would be posted internally? As discussed before, she indicated she has an issue with how individuals have expressed their expectations of employment at certain district locations. She said the contract does not require us to post positions for a specific location and people should not expect that they will be permanently assigned to a specific district.

Ms. Haves stated that overtime and seniority are spelled out by district. She is uncertain how this could be changed. Commissioner Rodgers stated she didn’t know how staff could approach that, but the Board’s labor counsel should be consulted.

This request will be brought back at a later date.

AGENDA ITEM #13D – ADOPTION OF RESOLUTION REGARDING THE FINANCING OF THE “LOAN” PROJECTS.

RESOLUTION AUTHORIZING THE FINANCING OF CERTAIN PROJECTS.

RESOLUTION 138-07

Moved by Commissioner Rodgers and Supported by Commissioner Guenther. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that the Board adopts the following resolution as recommended by bond counsel, Thrun Law Firm, through its representative Michael Gresens:

WHEREAS:

1. Act No. 283, Public Acts of Michigan, 1909, as amended, authorizes this Board to acquire real or personal property for public purposes through an installment purchase contract; and

2. The Board intends to acquire and purchase the Property set forth below from the respective Vendors set forth below in the respective amounts not to exceed the amounts set forth below, and to enter into installment purchase agreements (the "Installment Purchase Agreements") to finance all or a portion of the total cost of the Property in an aggregate amount not to exceed Five Hundred Ten Thousand Nine Hundred Seventy-Nine Dollars ($510,979.00), as follows:

The Property The Vendor The Purchase Price/Acquisition Cost

[A] Acquisition and To be determined Not to exceed $40,000

construction of by the Board

Radio Tower and

related equipment

[B] Metro District - To be determined Not to exceed $250,000

construction and by the Board

acquisition of

salt storage building

[C] Mason Complex - To be determined Not to exceed $20,000

acquisition and by the Board

construction of improve-

ments, including, but not

limited to, roof improve-

ments, to block storage

building

[D] Mason Complex - To be determined Not to exceed $175,000

acquisition and by the Board

construction of

storage building

[E] Mason Complex - To be determined Not to exceed $20,000

acquisition and installation by the Board

of electronic scales

[F] Mason Complex - Discount Carpet $5,979.00

flooring improvements Warehouse and

for Sign Shop Showroom, Mason,

Michigan

and

3. This Board desires to solicit bids from financial institutions to finance all or a portion of the cost of the Property (the successful bidder herein referred to as the "Bank").

NOW, THEREFORE, BE IT RESOLVED THAT:

1. The Commissioners and the Managing Director (each an "Authorized Officer"), or a member of the Ingham County Road Commission's administrative staff, is authorized to distribute a Solicitation for Bids to financial institutions in substantially the form attached hereto as Exhibit A. An Authorized Officer is hereby authorized to accept the bid which produces the lowest dollar interest cost to the Ingham County Road Commission within the parameters established by the Board herein.

2. The Board determines that it is in the best interest of the Ingham County Road Commission to solicit bids from financial institutions to finance the Property through Installment Purchase Agreements among the Ingham County Road Commission, the Bank and the Vendors for total respective amounts of [A] not to exceed Forty Thousand Dollars ($40,000.00), [B] not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00), [C] not to exceed Twenty Thousand Dollars ($20,000.00), [D] not to exceed One Hundred Seventy-Five Thousand Dollars ($175,000.00), [E] not to exceed Twenty Thousand Dollars ($20,000.00), and [F] Five Thousand Nine Hundred Seventy-Nine Dollars ($5,979.00), at an interest rate of not to exceed seven percent (7%) per annum over the lesser of a period not to exceed fifteen (15) years or the useful life thereof, with annual principal and interest payments beginning within one (1) year from the date of delivery of each respective Installment Purchase Agreement, and with annual interest thereon based upon a 360-day year, 30-day month.

3. An Authorized Officer is authorized to reduce the respective principal amounts of the Installment Purchase Agreements, adjust the maturity schedules, and the frequency of the principal and interest payments. An Authorized Officer shall execute the Installment Purchase Agreements in substantially the form attached hereto as Exhibit B on behalf of the Ingham County Road Commission and the executed Installment Purchase Agreements shall be delivered to the Bank.

4. The Installment Purchase Agreements may be prepaid in whole or in part at any time without penalty, with funds withdrawn from the Ingham County Road Commission's cash reserves. A prepayment penalty may be required if the outstanding balance is prepaid with funds borrowed from another financial institution or a publicly or privately placed debt obligation.

5. The Ingham County Road Commission hereby irrevocably pledges to make the principal installments and interest on the Installment Purchase Agreements beginning with the 2008 fiscal year and during each fiscal year for which an operating budget is adopted, a first operating budget obligation within its available funds until such time as the principal and interest on the Installment Purchase Agreements have been paid in full.

6. The Ingham County Road Commission hereby pledges its full faith and credit for the payment of the principal installments and interest on the Installment Purchase Agreements. The principal of and interest on the Installment Purchase Agreements are payable from any and all resources available therefore.

7. The Authorized Officers are each further authorized to execute any documents or certificates necessary to complete the transaction. Any of those officers may designate, in writing, an individual to act in their place with respect to the powers conveyed in this paragraph.

8. The Ingham County Road Commission hereby covenants to comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the execution of the Installment Purchase Agreements in order that interest thereon be or continue to be excluded from gross income for federal income tax purposes, including the filing of Form 8038-G or 8038-GC with the Internal Revenue Service.

9. The Board hereby designates the Installment Purchase Agreements as "qualified tax-exempt obligations" for purposes of deduction of interest expense by financial institutions under the Internal Revenue Code of 1986, as amended. In making said designation, the Board determines that the reasonably anticipated amount of tax-exempt obligations which will be issued by the Ingham County Road Commission or entities which issue obligations on behalf of the Ingham County Road Commission during calendar year 2007 will not exceed $10,000,000.

10. The advance payment for the Property is hereby approved, and the monies are authorized to be advanced from monies on hand in the General Operating Fund, which monies will be repaid to the General Operating Fund from the proceeds of the Installment Purchase Agreements when received. The Ingham County Road Commission shall reimburse the General Operating Fund not earlier than the date on which the expenses are paid and not later than the later of:

(a) the date that is eighteen (18) months after the expenses are paid, or

(b) the date the Property is placed in service or abandoned, but in no event more than three (3) years after the expenses are paid.

11. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same are hereby rescinded.

EXHIBIT A

SOLICITATION FOR BIDS

$__ ___

INGHAM COUNTY ROAD COMMISSION

COUNTY OF INGHAM

STATE OF MICHIGAN

INSTALLMENT PURCHASE AGREEMENTS

SEALED BIDS for the above Installment Purchase Agreements will be received by the Ingham County Road Commission (the "Road Commission") at the Road Commission's Austin E. Cavanaugh Administration Building located at 301 N. Bush Street, Mason, Michigan 48___, on _______, the ___ day of _______, 2007, until ______ o'clock in the __.m., Eastern Time, at which time and place said bids will be publicly opened and read. Award of the bids will be considered by an Authorized Officer of the Road Commission on that date.

INSTALLMENT PURCHASE AGREEMENTS DETAILS; INTEREST RATE; PAYING AGENT: The Installment Purchase Agreements will be in the form of agreements among ____________ (collectively, the "Vendors"), the Ingham County Road Commission, and the Bank, dated the date of delivery. Annual installments of principal for a period of ____ (__) years will be due beginning ___________, 200__, with annual interest thereon, based upon a 360-day year, 30-day month as set forth below. The Installment Purchase Agreements shall bear interest at a rate not exceeding seven percent (7%) per annum. If the purchaser requires the use of a paying agent for this issue, the paying agent fees, if any, are to be paid by the purchaser of the Installment Purchase Agreements.

REDEMPTION: The Installment Purchase Agreements may be prepaid in whole or in part at any time without penalty, with funds withdrawn from the OBLIGOR’S cash reserves. A prepayment penalty will be required if the outstanding balance is prepaid with funds borrowed from another financial institution or a publicly or privately placed debt obligation.

PURPOSE AND SECURITY: The Installment Purchase Agreements are issued for the purpose of purchasing __________. The Installment Purchase Agreements are issued under the provisions of Act 283, Public Acts of Michigan, 1909, as amended. The Ingham County Road Commission has pledged its full faith and credit for the payment of principal and interest on the Installment Purchase Agreements. The principal of and interest on the Installment Purchase Agreements shall be payable from any and all Ingham County Road Commission resources available therefor. The Ingham County Road Commission has reserved the right to issue additional Installment Purchase Agreements of equal standing.

AWARD OF INSTALLMENT PURCHASE AGREEMENTS: The Installment Purchase Agreements will be awarded to the bidder whose bid produces the lowest interest rate. When the delivery date is established, the Bank will provide a payment schedule consistent with the above-referenced details.

TAX MATTERS: The Ingham County Road Commission has covenanted to comply with those requirements of the Internal Revenue Code of 1986, as amended (the "Code"), necessary to continue the exclusion of interest on the Installment Purchase Agreements from gross income for federal income tax purposes. The Ingham County Road Commission has designated the Installment Purchase Agreements as "QUALIFIED TAX-EXEMPT OBLIGATIONS" within the meaning of the Code.

LEGAL OPINION: Bids shall be conditioned upon the unqualified approving opinion of Thrun Law Firm, P.C., East Lansing, Michigan, the original of which will be furnished without expense to the purchaser of the Installment Purchase Agreements at the delivery thereof.

CERTIFICATE REGARDING "ISSUE PRICE": The successful bidder will be required to furnish, prior to delivery of the Installment Purchase Agreements, a certificate in a form acceptable to Ingham County Road Commission's counsel as to the "issue price" of the Installment Purchase Agreements within the meaning of Section 1273 of the Internal Revenue Code of 1986, as amended.

THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.

ENVELOPES containing the bids should be plainly marked "Proposal for Installment Purchase Agreements for Ingham County Road Commission".

___________________________

Authorized Officer

EXHIBIT B

INSTALLMENT PURCHASE AGREEMENT

PART I

"OBLIGOR" means

"VENDOR" means

"Property" means

"Purchase Price" means $

"Contract Amount" and "Principal" mean $

"Maturity Date", "Principal Installment", and "Interest Payment" shall have the meanings as described in Exhibit A.

"Dated Date" means _____________ ,

"Interest Rate" means the interest rates pursuant to Part II of this Installment Purchase Agreement which shall be .

The provisions of Part II of this Installment Purchase Agreement are hereby approved and incorporated herein.

PART II

THIS INSTALLMENT PURCHASE AGREEMENT (the "Installment Purchase Agreement") is dated as of the Dated Date by and between the OBLIGOR, a Michigan municipal corporation, the VENDOR, and (the "BANK"), as assignee of VENDOR or registered assigns. All capitalized terms not defined in Part II shall have the meaning set forth in Part I.

1. Purchase Price, Title and Useful Life. The OBLIGOR agrees to purchase and VENDOR agrees to sell and provide the Property to the OBLIGOR for the Purchase Price. The Purchase Price includes all property, equipment, material, labor, tools, freights, service, cabling and installation. The BANK will pay the Contract Amount to the OBLIGOR in federal funds by wire transfer and the OBLIGOR will pay the full Purchase Price including the difference, if any, between the Contract Amount and the Purchase Price to the VENDOR immediately upon the receipt of the Contract Amount and the delivery of the Property to and acceptance of the Property by the OBLIGOR. Upon delivery to and acceptance by the OBLIGOR, title to the Property shall vest in the OBLIGOR. The OBLIGOR shall not sell, assign title to, lease, or obtain further financing with respect to the Property except with the permission of the BANK while Principal remains outstanding under this Installment Purchase Agreement. The OBLIGOR agrees that the useful life of the Property is equal to or longer than the date of the final payment hereunder. The BANK may pledge this Installment Purchase Agreement as security for any obligation of the BANK.

2. Repayment Provisions. The OBLIGOR agrees to pay to the BANK the Principal in the Principal Installments on the Maturity Dates and interest on the unpaid Principal balance from the Dated Date at the Interest Rate on the Interest Payment Dates. The Interest Rate shall be the rate set forth in Part I. Interest shall accrue on the unpaid balance of the Principal from the date hereof at the Interest Rate computed on the basis of a 360-day year, 30-day month.

The Installment Purchase Agreement may be prepaid in whole or in part at any time without penalty, with funds withdrawn from the OBLIGOR'S cash reserves. A prepayment penalty will be required if the outstanding balance is prepaid with funds borrowed from another financial institution or a publicly or privately placed debt obligation.

It is expressly agreed between the VENDOR and the OBLIGOR, and the BANK by acceptance of the assignment of this Installment Purchase Agreement, that the OBLIGOR shall make all payments of principal or interest due hereunder directly to the BANK or to a depository as shall be designated in writing by the BANK. The OBLIGOR further agrees that it will deposit with the BANK, or if so directed shall deposit with said depository, all payments of principal or interest due hereunder in immediately available funds at least one business day before the date on which said principal or interest due hereunder is due or in such other manner or such other time as the BANK shall approve.

3. Events of Default. Upon the occurrence of any of the following events of default, all or part of the unpaid balance of the amount financed, together with accrued interest charges shall, at the option of the BANK, become immediately due and payable without notice or demand:

a. If the OBLIGOR shall default in the payment when due of (I) any Principal Installment of the amount financed or the interest on the unpaid Principal balance or other amount required to be paid by the OBLIGOR hereunder or (ii) any other indebtedness now or hereafter owing to the BANK, or if the OBLIGOR shall default in the performance of any other obligation of the OBLIGOR hereunder;

b. If any warranty or representation made by the OBLIGOR in this Installment Purchase Agreement or in any financial statement, certificate or other agreement, or document at any time furnished to the VENDOR or the BANK shall be false or inaccurate in any material respect;

c. If the OBLIGOR shall dissolve, become insolvent or make an assignment for the benefit of its creditors;

d. If the BANK at any time in good faith believes that the prospect of payment of any indebtedness is impaired.

If a voluntary or involuntary case in bankruptcy, receivership or insolvency shall at any time be commenced by or against the OBLIGOR, then the entire unpaid balance of the amount financed, together with all accrued finance charges, shall automatically become immediately due and payable, without notice or demand. All or part of the amount financed and accrued finance charges also may become the terms of any other agreement heretofore or hereafter entered into between the OBLIGOR and the BANK.

4. Incorporation by Reference. The VENDOR agrees to all of the instructions, terms and conditions as outlined in the OBLIGOR'S invitation for bids and the acceptance of the VENDOR'S bid by the OBLIGOR or any other agreement between the OBLIGOR and the VENDOR to purchase the Property (the "Purchase Agreement"). In the event of a conflict in terms between this document and the Purchase Agreement the specific terms of this Installment Purchase Agreement shall govern.

5. Assignment by VENDOR to BANK. The VENDOR hereby irrevocably assigns this Installment Purchase Agreement immediately to the BANK in consideration for payment from the BANK of the Contract Amount. The OBLIGOR hereby consents to that assignment, except with respect to the warranties and other obligations of the VENDOR set forth in Paragraphs 4, 7 and 9 of this Installment Purchase Agreement, all of which shall remain the sole responsibility of the VENDOR and shall not be assignable and the VENDOR hereby acknowledges that all of said warranties and other obligations shall not be assigned and remain the sole responsibility of the VENDOR. The OBLIGOR'S obligation to the BANK is absolute and unconditional and shall remain in full force and effect until the amounts owed hereunder shall have been paid by the OBLIGOR to the BANK and such obligation shall not be affected, modified or impaired upon the happening from time to time of any event, including without limitation any of the following:

a. Any failure of title with respect to the VENDOR'S interest in the Property or the invalidity, enforceability or termination of this Installment Purchase Agreement;

b. The modification or amendment (whether material or otherwise) of any obligation, covenant or agreement set forth in this Installment Purchase Agreement;

c. The voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all of the assets, marshalling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition with creditors or readjustment or other similar proceedings affecting the VENDOR or any of its assets or any allocation or contest of the validity of this Installment Purchase Agreement, or the disaffirmance of this Installment Purchase Agreement in any such proceedings;

d. To the extent permitted by law, any event or action which would, in the absence of this clause, result in release or discharge by operation of law of the VENDOR from the performance or observation of any obligation, covenant or agreement contained in this Installment Purchase Agreement;

e. The default or failure of the VENDOR fully to perform any of its obligations set forth in this Installment Purchase Agreement or any other agreement; or

f. Any casualty or destruction of the Property.

After payment of the Contract Amount, the BANK shall have no liability for payment of monies to the VENDOR or for the performance of any obligations to the VENDOR. The VENDOR represents and warrants that the assignment of this Installment Purchase Agreement to the BANK does not violate any agreement, contract, or loan agreement to which it is a party and that the Installment Purchase Agreement has been duly executed and delivered by the VENDOR.

6. Full Faith and Credit Pledge. The OBLIGOR pledges its full faith and credit ________. The OBLIGOR shall include in its budget and pay each year, until this Installment Purchase Agreement is paid in full, such sum or sums as may be necessary each year to make payments of the Principal Installments and interest herein, when due.

7. Delivery Date. It is agreed that the VENDOR has delivered or will deliver the Property. If the Property is not delivered simultaneously with the execution of this Installment Purchase Agreement the VENDOR agrees to deliver the Property as provided in the Purchase Agreement.

8. Tax Covenant. The OBLIGOR covenants to comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to delivery of this Installment Purchase Agreement in order that interest thereon be (or continue to be) excluded from gross income for federal income tax purposes. The OBLIGOR has designated this Installment Purchase Agreement as a "qualified tax-exempt obligation" within the meaning of the Internal Revenue Code of 1986, as amended.

9. Warranty. Warranties, if any, with respect to the Property shall not be assigned but shall remain enforceable by the OBLIGOR.

10. Entire Agreement. Except for closing documents delivered in connection with the Installment Purchase Agreement or to the BANK, this Installment Purchase Agreement (including the provisions of the Purchase Agreement incorporated by reference in section 4 above) constitutes the entire agreement of the parties. All other prior or contemporaneous agreements, understandings, representations and statements, oral or written, are hereby terminated.

11. Amendments. Any attempt to modify the term of this Installment Purchase Agreement or of any supporting document shall be ineffectual unless approved in writing by the BANK.

12. Counterparts. This Installment Purchase Agreement may be executed in any number of counterparts and all of said counterparts taken together shall be deemed to constitute one and the same agreement.

VENDOR:

OBLIGOR:

INGHAM COUNTY ROAD COMMISSION

COUNTY OF INGHAM

STATE OF MICHIGAN

By: By:

Its: Its:

Approved:

BANK:

By:

Its:

ATTACHMENT A

MATURITY SCHEDULE

MATURITY DATE	PRINCIPAL INSTALLMENT	INTEREST PAYMENT	TOTAL



TOTAL

AGENDA ITEM #14 – BOARD UPDATES/COMMENTS.

A. Chair Smith asked Dan Chapman to update the Board on the Hagadorn Road Bridge project. Mr. Chapman said the project is completed with the exception of some of the restoration; and the intersection of Hagadorn Road and Hannah Blvd. is complete except for a minor piece of curb and gutter and restoration, and striping. The Board commended staff for the great job on the Hagadorn Road Bridge and coming through with all of the promises made to the owner of the florist shop.

B. Rick Phillips was asked for an update on the Lake Lansing Road project. Mr. Phillips said that the portion of the project has been shut down due to soils problems. When the contractor started digging for the storm sewer, debris was found in the soils. It has been discovered that there used to be a landfill on both the north and south side of Lake Lansing Road. Vice Chair Guenther asked why this wasn’t discovered in the soil boring reports. Director of Engineering Bob Peterson stated it did not show up in the particular borings that were done. Apparently borings were taken at the wetland area, but the consultants elected not to do borings in this area where the landfill material was found. There is a meeting on Monday at 8:00 AM to discuss this.

C. Chair Smith announced that Ms. Sandra Montgomery has been offered the position of Interim Managing Director until such time that the search for someone to fill this position has been completed. He said Ms. Montgomery is slated to begin these duties as of August 27^th.

RESOLUTION APPROVING THE HIRING OF SANDRA MONTGOMERY AS INTERIM MANAGING DIRECTOR FOR THE INGHAM COUNTY ROAD COMMISSION.

RESOLUTION 139-07

Moved by Commissioner Rodgers and Supported by Commissioner Guenther. 3 yes, 0 no. Resolution carried unanimously.

BE IT RESOLVED that the Board hereby approves and signs a Contract for Employment Services with Sandra F. Montgomery as Interim Managing Director for the Ingham County Road Commission for a period of time not to exceed January 9, 2008.

D. Vice Chair Guenther stated that with regard to the pickup trucks that are planned to be purchased, he would expect that no half ton trucks will be purchased. He said those trucks are not big enough for what the Road Commission needs and we just end up overloading them and rebuilding them. He directed that proper trucks be purchased, even if they cost a little more, and make sure the surveyors get what they need this time. Commissioner Rodgers agreed and stated that it is illogical to buy a half ton truck, then reinforce it if it isn’t heavy enough. This does not make good sense, nor is it a proper way to spend the taxpayers’ money. Commissioner Rodgers said she does not have a problem with spending money for the right equipment and employees should not have to ‘make do’ if it can be helped. Chair Smith stated if the half ton trucks are breaking down within two years, then don’t buy any more of them, get heavier duty trucks.

No public comment was offered. The meeting adjourned at 7:30 P.M.

Larry R. Smith, Chair Deborah L. Bellows, Board Secretary