**APPROVED MINUTES**

 

Mason, Michigan

July 1, 2008

 

 

The Board of Ingham County Road Commissioners met for a specially called meeting at 6:00 P.M. on Tuesday, July 1, 2008, 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:  William M. Conklin, Managing Director, Deborah L. Bellows, Secretary to the Board, and Tina M. Henry, Finance Director.

 

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

 

2008 LOCAL ROAD PROGRAM.

 

Managing Director Conklin reviewed with the Board, the method of accounting and invoicing for the Administrative Fee charged on the various local road projects.  He submitted a change in Attachment #7, showing how the fee is charged and spread. 

 

Chair Smith asked if the Road Commission is actually getting the full 7 percent administrative fee charged to each project.  Finance Director Tina Henry said, no.  She explained that the projects are totaled and the Road Commission pays its portion of the cost, including half of the administrative fee, and the Township pays its portion, which, in essence, is the other half of the administrative fee charged.

 

Commissioner Rodgers stated this is not how she thought this was being done.  When the townships’ are charged the 7 percent, it should be paid by the township 100 percent, not split 50-50 with the Road Commission.  That is not the purpose of the administrative fee.  She said she would expect that the Road Commission would collect the entire 7 percent of the fee from the township.  Commissioner Guenther said this was his understanding as well.  Managing Director Conklin stated he is as surprised as everyone else as this is not the way it should be. 

 

Commissioner Rodgers then suggested that the Townships are only paying actually 3.5 percent.  Ms. Henry stated yes.

 

Mr. Conklin said he has a meeting with the Michigan Townships’ Association, Ingham County Chapter on July 23rd.  He is on the program to explain the administrative fee.  He said he thinks the best way to do that is to base it on how Act 51 tells us to handle our money.  That would be easier to explain to folks.  Commissioner Rodgers said she thinks this is a good idea for the Manager to talk about this at an upcoming meeting, however, she said that the townships don’t really care how the numbers are derived, they just don’t think the Road Commission should charge them the administrative fee at all.

 

Commissioner Guenther suggested that proposals be sought from SME for project oversight (including labor and fringes), then compare those costs with our own.  This may be a good way to explain to the townships how this works and that they are getting a good deal.  Mr. Conklin said these are just necessary expenses and the cost of doing business.  Commissioner Guenther stated he would be willing to waive the administrative fee for 2008, especially in light of the extremely high bid prices for asphalt material this year.  We would at least be doing our part to help defray those high bid prices for the local road work.  But, in the meantime, we should be reviewing that to charge in accordance with Act 51.

 

Chair Smith suggested that this be explained to the townships that the administrative fee hasn’t been billed correctly to them and, in fact, they have only been paying half of it all these years.  He agreed that he would consider waiving the fee for 2008, and that would give the Manager a year to review this and try and come up with something that everyone can live with.  He agreed with Mr. Conklin and Commissioner Guenther that the administrative fee should be calculated in the same manner as Act 51 provides.  He said this would give the Manager a year to come up with a structure that is explainable.  He said he understands that Townships are hurting financially too.

 

Mr. Conklin indicated that most of the townships doing work this year, are spending monies over and above their matching funds.  He said if we waive the administrative fee for this year, they will be able to do more actual work. 

 

Commissioner Rodgers stated that in light of the fact that the townships are already only paying half of the administrative fee (3.5 percent), she would also be willing to waive the administrative fee altogether for 2008 due to the extremely high bid prices for asphalt.

 

RESOLUTION APPROVING WAIVING THE ADMINISTRATIVE FEE CHARGED TO TOWNSHIPS FOR LOCAL ROAD PROJECTS FOR 2008.

 

RESOLUTION #059-08

 

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

 

BE IT RESOLVED that upon recommendation of the Managing Director, the Board agrees to waive the administrative fee charged to all township local road improvement projects for 2008.  The Board hopes this will help defray some of the extremely high bid prices on asphalt for 2008 projects.  The Board directs the Managing Director to study the administrative fee structure, including comparisons with private sector inspection services.  Included in this study group should be township officials to take part in the discussion phases of the study.  The Managing Director should bring the end result recommendations back to the Board for consideration at a future meeting.

 

SPECIAL PERMITS.

 

Moved by Commissioner Rodgers and Supported by Commissioner Guenther, that the following special permits be approved:

 

1.         Permit #08-0324 for the purpose of hanging a banner across Birch Row Drive to announce Towar/Edgewood Community Day on Saturday July 26, 2008.  This is sanctioned by Meridian Township.

 

2.         Permit #08-0326 for the purpose of conducting a neighborhood block party to be held on Saturday, July 19, 2008, from 12:00 PM until 12:00 AM.  The event is sponsored by Mike Weaver of Sleepy Hollow Lane and is sanctioned by Meridian Township.

 

3.         Permit #08-0325 for the purpose of conducting a parade to be held on July 26, 2008, from 9:30 AM until 11:00 AM to celebrate Towar/Edgewood Community Day.  The event is sanctioned by Meridian Township.

 

3 yes, 0 no.  Motion carried unanimously.

 

No public comment was offered.  The meeting adjourned at 7:00 P.M.

 

 

 

                                                                                                                                                           

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