The Chippewa County Board of Commissioners met in regular session on Monday, June 12, 2006 at 7:00 p.m. in the Courtroom of the Chippewa County Courthouse, Sault Ste. Marie, MI.

Present: Commissioners: Ted Postula, Vice Chair, Don Cooper, Scott Shackleton, Richard Timmer, Bernard LaJoie and Jim Moore

Absent: Chairman Earl Kay

Also Present: Don and Chris McLean, Scott Brand, Evening News, Marilyn McDonald,

County Treasurer, Jeff Moran, Sheriff, Will Karr, Frank Blissett, Kelly

Beaune, Acting Controller, and Diane Cork, County Clerk

Vice-Chairman Ted Postula presided over the meeting in the absence of Earl Kay

It was moved by Commissioner LaJoie, supported by Commissioner Timmer, to acknowledge the correspondence received in the Clerk’s Office and if necessary, forward to the appropriate committee. On a voice vote, the motion carried.

It was moved by Commissioner Cooper, supported by Commissioner LaJoie, to recommend approval of the County Board minutes of May 8, 2008 as prepared by the Clerk. On a voice vote, the motion carried.

PUBLIC COMMENTS:

Chris McLean read a statement re: Newly elected board chair for mental health and HBH issues

CONTROLLER’S REPORT – Kelly Beaune – Informational purposes only

OLD BUSINESS:

It was moved by Commissioner LaJoie, supported by Commissioner Timmer, to place on file the applications received for the HBH Board and Building Authority Building Board and to vote on appointments at next months meeting. On a voice vote, the motion carried. The applications of William Connolly, David Jahn, Don McLean and Paul Freedman were received.

STANDING COMMITTEE REPORTS:

Personnel – Bernard LaJoie – No meeting

Equalization & Apportionment – Jim Moore – 6-1-06

Equalization Director Kennedy presented the final 2006 County Equalization Report. She explained that the equalized values presented in the report, as approved by the Committee in April, are the basis for calculating the County’s 2006 taxable values which are also contained in the report.

It was moved by Commissioner Moore, supported by Commissioner Cooper, to accept the Equalization Report as presented. On a voice vote, the motion carried.

Equalization Director Kennedy presented the Final Taxable Value Report, which must be filed with the State Tax Commission by the third Monday in June, but is always prepared much earlier to accommodate Headlee and tax roll calculations.

It was moved by Commissioner Moore, supported by Commissioner Timmer, to accept the 2006 Taxable Values as presented by Director Kennedy as reported and that all state required forms regarding the same be completed and filed as per statute. On a voice vote, the motion carried.

Director Kennedy reminded the Committee that PA 357 of 2004 requires the County to shift two-thirds of its allocated operating millage to the summer tax roll, however PA 513 of 2004 requires that property owned by the DNR upon which taxes are paid, can only be taxed in the winter and only at 2004 rates.

It was reported that after application of the Headlee millage reduction fractions, the County is entitled to levy 5.9314 mills in 2006 for allocated operating millage. Two-thirds of that is 3.9542 mills to be collected on the summer tax roll and the remaining 1.9772 mills for collection on the winter 2006 tax roll.

The Committee then reviewed all of the steps necessary to prepare the tax rolls, the fact that only two-thirds of the allocated millage is collected in the summer, while the balance of allocated and all of the other extra voted county millages are collected in the winter, the complicated nature of complying with the new State laws relating to tax collections, and how difficult it is for most taxpayers to understand the process.

It was moved by Commissioner Moore, supported by Commissioner Timmer, to recommend that 3.9542 mills be collected in the Summer of 2006, and that the Resolution as presented to the Committee be presented to the County Board for immediate adoption. On a voice vote, the motion carried.

Having no further action items, it was moved by Commissioner Moore, supported by Commissioner Timmer, to accept the report of the Equalization and Apportionment Committee as presented. On a voice vote, the motion carried.

Health & Social Services – Ted Postula – No meeting

Building, Grounds and Jail – Earl Kay – No meeting

Transportation – Ted Postula – No meeting

Legislative & Natural Resources – Richard Timmer – No meeting

Computer – Don Cooper – No meeting

Finance, Claims & Accounts – Richard Timmer – 6-8-06

The Committee was updated regarding the current part-time staffing at the Chippewa County Animal Control Shelter, with the resignation of Danielle Beadle on June 12, 2006. An approval was requested to hire from the previous applicants, as the applications are less than one year old.

It was moved by Commissioner Timmer, supported by Commissioner LaJoie, to accept the resignation of Danielle Beadle and to hire from the previous applicants. On a voice vote, the motion carried.

A check was received from the Sault Ste. Marie, Tribe of Chippewa Indians, which did not have prior Board approval to use Chippewa County as the pass through agency. With the recent 2005 Audit report, Anderson, Tackman and Co. have indicated possible issues with this practice of passing through monies to non-profit groups.

It was moved by Commissioner Timer, supported by Commissioner Moore, to follow a policy, to be developed, to inquire as to the nature of the organization, find out how will the funds passed through benefit the residents of Chippewa County, find out what services will be provided to the residents of Chippewa County and find out how the pass through benefactor will account to the County for the funds spent and what documentation will be provided for the spent funds. On a voice vote, the motion carried.

The Committee reviewed the prior year approval of the Cost Allocation Plan to be completed by Liske & Brusich, P.C., as the previous agreement was for one year.

It was moved by Commissioner Timmer, supported by Commissioner LaJoie, to approve a one year renewal to Liske & Brusich, P.C. for a cost not to exceed $5,000 to complete the cost allocation plan. On a voice vote, the motion carried with Commissioners Cooper and Shackleton voting no.

The Committee reviewed the previous procedures for the completion of the F-65, with the work being handled in house and last year by Anderson, Tackman and Co.

It was moved by Commissioner Timmer, supported by Commissioner Cooper, to approve a $500 expenditure to Anderson, Tackman and Co. to complete the County’s F-65. On a voice vote, the motion carried.

The Board of Commissioners previously requested answers as to how certain comments and non compliance issues will be corrected for future audits. The Inmate Trust Account for inmate monies was reported first. Per the 12/31/2005 audit, a request to establish Fund 595, Commissary and Concessions Fund, be established to record all of the transactions for the sale of various products in the 595 Fund.

It was moved by Commissioner Timmer, supported by Commissioner Shackleton, to establish fund 595, Commissary and Concessions, to record all sales transactions for sale of various products to inmates. On a voice vote, the motion carried.

In addition, it was requested that the Committee approve the transfer of $20,000 from the Commissary and Concessions Fund to the General fund for previous profits made.

It was moved by Commissioner Timmer, supported by Commissioner Cooper, to approve the transfer of $20,000 from the Commissary and Concessions Fund to the General Fund for previous profits made. On a voice vote, the motion carried.

The County currently does not maintain the required documentation to be in compliance with OMB circular A-87 for all federally funded grants; a payroll certification was reviewed by the Committee for the County’s use to correct the reportable condition.

It was moved by Commissioner Timmer, supported by Commissioner Moore, to adopt the payroll certification for use to correct the reportable condition. On a voice vote, the motion carried.

It was moved by Commissioner Timmer, supported by Commissioner Moore, to establish a written policy regarding 2% Pass Through Funds for use, and to inquire how monies will be spent, accounted for and what services or benefits will be provided to residents of Chippewa County. On a voice vote, the motion carried.

The Committee was updated on previous budget adjustments, and received a current fund analysis. The Committee was also requested to approve the following budget adjustments based on previous Board of Commissioner action.

6/12/2006 152 0 506 R 12,000.00 138,000.00 150,000.00

6/12/2006 277 0 507 R 0.00 24,500.00 24,500.00

6/12/2006 267 0 676 R 0.00 20,000.00 20,000.00

6/12/2006 101 0 575 R 125,000.00 39,324.00 164,324.00

6/12/2006 101 0 571 R 170,019.00 8,018.00 178,037.00

307,019.00 229,842.00 536,861.00

6/12/2006 152 0 960 E 12,000.00 138,000.00 150,000.00

6/12/2006 101 172 704 E 68,849.00 15,000.00 83,849.00

6/12/2006 101 131 704 E 117,232.00 6,575.00 123,807.00

6/12/2006 101 351 704 E 850,001.00 131.07 850,132.07

6/12/2006 101 215 704 E 82,302.00 1,700.00 84,002.00

6/12/2006 101 225 704 E 90,358.00 1,330.00 91,688.00

6/12/2006 101 225 704 E 90,358.00 4,487.00 94,845.00

6/12/2006 101 225 715 E 58,063.00 2,734.00 60,797.00

6/12/2006 267 0 706 E 0.00 11,000.00 11,000.00

6/12/2006 267 0 715 E 0.00 1,000.00 1,000.00

6/12/2006 267 0 801 E 0.00 8,000.00 8,000.00

6/12/2006 277 0 706 E 0.00 13,000.00 13,000.00

6/12/2006 277 0 715 E 0.00 1,500.00 1,500.00

6/12/2006 277 0 727 E 0.00 5,000.00 5,000.00

6/12/2006 277 0 978 E 0.00 5,000.00 5,000.00

1,369,163.00 214,457.07 1,583,620.07

It was moved by Commissioner Timmer, supported by Commissioner Moore, to approve the budget amendments as presented. On a voice vote, the motion carried.

It was moved by Commissioner Timmer, supported by Commissioner Moore, to amend the budgeted beginning fund balances to equal the 12/31/2005 audit balances. On a voice vote, the motion carried.

It was moved by Commissioner Timmer, supported by Commissioner Moore, to recommend the approval of general fund claims totaling $234,454.48, other fund claims of $273,322.63, payroll of $360,153.99 and health department claims of $390,678.43, total claims of $1,258,609.53, vouchers 40653 through 40952 and E-1 through E-212. On a voice vote, the motion carried.

It was moved by Commissioner Timmer, supported by Commissioner LaJoie, to approve the labor agreements with the Correction and Deputies Units of the Chippewa County Sheriff’s Department as presented during the closed session of the Finance Committee. On a voice vote, the motion carried with Commissioner Cooper abstaining because he was not present at the closed session meeting.

Having no further action items, it was moved by Commissioner Timmer, supported by Commissioner LaJoie, to approve the minutes of the Finance, Claims and Accounts Committee as presented. On a voice vote, the motion carried.

NEW BUSINESS:

It was moved by Commissioner Moore, supported by Commissioner Timmer, to recommend adoption of the following resolution:

RESOLUTION IMPOSING 2006 SUMMER PROPERTY TAX LEVY PURSUANT TO PUBLIC ACT 357 OF 2004, AND NOTICE OF CERTIFICATION OF COUNTY ALLOCATED TAX LEVY

WHEREAS, CHIPPEWA County is authorized under the General Property Tax Act, Public Act 2006 of 1893, as amended, to levy and collect County allocated property taxes; and

WHEREAS, the General Property Tax Act has been amended by Public Act 357 of 2005, being MCL 211.44a, to require all Michigan Counties to impose a summer tax levy, with the summer tax levies for 2005 and 2006 to be in the amount of 1/3 and 2/3, respectively, of the total County allocated tax, with the full amount of County allocated tax to be levied and collected as a summer tax levy in 2007.

NOW, THEREFORE, BE IT RESOLVED, that pursuant to Public Act 357 of 2004, the CHIPPEWA County allocated tax shall be levied and collected on July 1, 2006, at the rate of 2/3 of the amount allocated after application of the “Headlee” millage reduction fraction, or 3.9542 mills: and

BE IT FURTHER RESOLVED, that the Treasurer of each city, village and township in CHIPPEWA County is directed to account for and deliver the 2/3 County allocated tax collections for 2006 in accordance with the provisions of Public Act 357 of 2004; and

BE IT FURTHER RESOLVED, that this Resolution constitutes certification of the levy of the County allocated tax and authorized collection of the County allocated tax on July 1, 2006, at the rate of 2/3 of the amount allocated after application of the “Headlee” millage reduction fraction, or 3.9542 mills; and

BE IT FURTHER RESOLVED, that the County Clerk shall deliver a copy of this Resolution by first class mail to the Treasurer of each city, village and township in CHIPPEWA County.

On a roll call vote, Commissioners: Don Cooper, Scott Shackleton, Richard Timmer, Bernard LaJoie, Jim Moore and Ted Postula voted yes. The motion carried 6-0.

Diane Cork, County Clerk, gave an update on the new Auto Mark voting machines that each township and city in Chippewa County will be receiving to be used in the August Primary Election. All machines are purchased through the HAVA funds.

Commissioner Timmer stated at the Upper Peninsula Commissioner’s meeting, Anderson, Tackman made a presentation about 2% monies and it is definitely an issue which is being monitored in Lansing. Another issue is the establishment of Health Care funds for employees.

Having no further business, it was moved by Commissioner LaJoie, supported by Commissioner Timmer, to adjourn. On a voice vote, the motion carried and the meeting did adjourn at 7:38 p.m.

Respectfully submitted,

Diane S. Cork, Clerk Ted Postula, Vice-Chairman