The regular meeting of the Board of Calhoun County Road Commissioners was held on Wednesday, March 18,

2009 at 5:30 p.m. in their office located at 13300 Fifteen Mile Road, Marshall, Michigan.

PRESENT: Commissioner Scott Brown, Chairman

Commissioner Charles Monaweck, Member
Commissioner Eric Tobin, Member
Commissioner Christopher Vreeland, Member

ABSENT: Commissioner Hugh Coward, Vice Chairman - excused

ALSO PRESENT: Kevin Henning, Managing Director

Pixie Coats, Board Clerk
Angie Kline, Assistant County Highway Engineer
Mary Jo Crumpton, Deputy Board Clerk
General Public

Chairman Scott Brown called the regular meeting of the Board of Calhoun County Road Commissioners to order
at 5:30 p.m. and led the Pledge of Allegiance.

Motion made by Commissioner Vreeland and supported by Commissioner Tobin to

approve the Claims Payable Listings ending March 18, 2009 for $554,336.07. Roll call
vote: Vreeland-Yes; Brown-Yes; Tobin-Yes; Monaweck-Yes. Motion carried.

Motion made by Commissioner Monaweck and supported by Commissioner Tobin to

approve the regular meeting minutes of March 4, 2009. Voice vote: Motion carried.

UNFINISHED BUSINESS

Motion made by Commissioner Tobin and supported by Commissioner Vreeland to

approve the 2008 Road Certification Book. Voice vote: Motion carried.

Motion made by Commissioner Vreeland and supported by Commissioner Monaweck

to approve the Lease Agreement between the Calhoun County Road Commission and
the Board of Public Works for the Compost Center property. Roll call vote: Tobin-
Yes; Monaweck-Yes; Vreeland-Yes; Brown-Yes. Motion carried.

Motion made by Commissioner Tobin and supported by Commissioner Monaweck to

approve TCO 09-180-001 regarding “No Thru Trucks over 10,000 pounds” for the
streets of Lagrange, Burton, Dick and Hampton in Pennfield Township. Voice vote:
Motion carried.

NEW BUSINESS

Motion made by Commissioner Vreeland and supported by Commissioner Tobin to

approve a one year (2009) suspension of matching funds for local road construction
projects.

Commissioner Monaweck asked for more information on this recommendation.

Mr. Henning explained that every year in March, after winter maintenance wraps up, we assess
our budget and the ability to provide match funds for township local road projects. We had a
substantial winter this year with overtime, our funding has decreased over the past two years,
 Minutes of March 18, 2009

and we still have over $1.5 million on the books that is owed to vendors that we cannot pay in a
timely fashion. We are still paying for the emulsion from last year’s chip and seal projects, as
well as for salt from this past winter. There are two sets of numbers that we operate under.
One is a budgetary constraint, revenues and expenditures equals fund balance. In 2007, we
used $1.5 million out of our fund balance that put us in a position where our accounts payable
went from being paid within 30 days to 9 months. We have not been able to recover in 2008, as
part of our fund balance was spent on non budgeted items such as the two supercores that cost
approximately $400,000. We have not made any gains in our second set of numbers that we run
which is cash flow. Mr. Henning explained that we operate two months ahead of receiving MTF
revenue. Therefore, we need to have at least two months operating expenses in our fund
balance. At this time, we are planning on maintenance work only this summer in an effort to
decrease our accounts payable. It is not fair to our vendors that they are not being paid for nine
months, and eventually the cost to do business with these same vendors will increase due to the
outstanding debts owed.

Commissioner Monaweck asked for an estimate on how much our accounts payable would be
reduced by suspending local and primary road construction projects this year and focusing on
maintenance. Mr. Henning replied that by eliminating construction costs and working four 10-
hour days from May to September, he believes we would be able to pay our bills within 60 days
by the end of the calendar year, vs. 9 months as we currently do. He added that we have saved
approximately $400,000 this winter by using a 50/50 sand/salt mix and managing that material.
This assisted us in decreasing accounts payable by $500,000 in this first quarter of 2009.

Commissioner Brown asked what we spent last year in match funds for the local road program.
Mr. Henning replied that we spent just over $400,000 in township match.

Mr. Henning added that while he does not want to suspend the township match program this
year, he does not feel that CCRC can afford it. Commissioner Brown agreed that this is not what
we want to do, since it may impact the condition of our roads by making them worse; however,
we need to pay our bills.

Voice vote: Motion carried.

Motion made by Commissioner Tobin and supported by Commissioner Vreeland to

award the bid for the 22 Mile Road Bridge design to CEI. Roll call vote: Tobin-Yes;
Monaweck-Yes; Vreeland-Yes; Brown-Yes. Motion carried.

MANAGING DIRECTOR’S REPORT

Mr. Henning provided the following report:

Rural Task Force Meeting: The Rural Task Force #3, which is made up of Barry, Branch, Calhoun,
Kalamazoo, and St. Joseph County, met last week. Our transportation improvement plan for 2009-2013
was approved and submitted to the State. We have begun the application process for the federal aid
grants and continue to receive information on the stimulus funds.

CCRC Crews: Due to the significant rain the last few weeks, several culverts have failed. We recently
discovered that many of these failures are due to the past practice of cutting the culverts in half and
banding them back together to avoid road closures. Many of these bands have since failed and crews
have been replacing several culverts around the county. With the frost now out of the roads, we have
been grading gravels starting at the southern tier of the county and moving our way west and north. We
will be doing one brining again this year. Townships would be required to pay for any additional brining.
Most crews continue to patch potholes.

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 Minutes of March 18, 2009

Division Drive: Met last night with Division Drive residents to discuss the condition of the road and
available options. Last November, residents requested an estimate on the cost of reconstructing Division
Drive from 8 to 9 ½ Mile Road. This is a border road between Emmett and Newton Township. We
shared the estimated cost of $577,000 for a reconstruction that included pulverization of the entire
roadway at a depth of 8”, shaping of the pulverized material, and a 3” hot mix asphalt (HMA) surface.
The estimate also included all work required to prepare the roadway for paving, machine grading where
needed for drainage and a 2’ gravel shoulder. Mr. Henning informed the residents that CCRC would like
to turn the road back to gravel and work on ditching and drainage issues, as it would cost CCRC less than
to continue patching when the material does not stay. CCRC would also work with the landowners to
assess the trees for removal. It was the consensus of those present last night, to move forward with
pulverizing Division Drive and work on drainage issues.

5-Year Plans: Working with townships to develop a 5-year plan for roads to coordinate, earmark, and
plan ahead for local, county, and federal aid projects.

SUPERVISORS, PUBLIC OFFICIALS AND CITIZENS TIME

Mr. Joe Bramble, Convis Township resident, stated that he is unhappy with the Board’s decision to suspend the
township match program in 2009 and doesn’t understand how CCRC got so far behind on paying bills.
Commissioner Brown clarified that Mr. Henning inherited these financial issues when the Board hired him, which
included the misappropriation of funds for the Duck Lake sewer project back in 2000 and road funds used at
Historic Bridge Park. Mr. Bramble added that Convis Township paid their bill owed to the Road Commission on
time for work completed on local roads in Convis Township last year. Discussion continued.

COMMISSIONER COMMENTS
Commissioner Monaweck commented that the Illinois State legislation is raising the gasoline tax by 8¢. He also
provided photographs of various road concerns throughout the county and shared some human interest photos.

Commissioner Vreeland referred to the recent “raspberry” in the Battle Creek Enquirer regarding a comment that
CCRC chooses to patch rather than resurface roads. He added that we need to educate the public on the
financial constraints faced by road commissions. He also referenced a “Letter to the Editor’ in the same
newspaper on the same day that praised CCRC for their efforts patching potholes.

Commissioner Brown reiterated that he doesn’t want to suspend the township match for local roads, but we must
address the excessive accounts payable debt. He fully expects that CCRC will have the township match for the
local road program next year.

ANNOUNCEMENTS
The next regular meeting of the Board of Calhoun County Road Commissioners will be held on Wednesday, April
1, 2009 at 5:30 p.m.

There being no additional business before the Board, Chairman Brown adjourned the meeting at 6:02 p.m.

Submitted by:

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Mary Jo Crumpton, Deputy Board Clerk Scott A. Brown, Chairman