A REGULAR MEETING of the Board of Chippewa County Road Commissioners was duly held in their offices located at 3949 S. Mackinac Trail, Sault Ste. Marie, Michigan on February 21, 2008.

The meeting was called to order at 8:00 a.m.

Chairman MacDonald lead the Pledge of Allegiance.

PRESENT: Chairman MacDonald, Commissioners Holt and Carr, Manager Heckman, Office Mgr. Decker, Clerk McDowell, Foreman Erickson, Foreman McConkey, Foreman Pesola, Chief Mechanic Sibbald and Union President Hopper.

ABSENT: None

MOTION by Commissioner Holt SECONDED by Commissioner Carr that the Payroll in the amount of $128,545.33 and Vouchers in the amount of $136,907.39 be approved and authorized for payment from the County Road Fund subject to audit.

MOTION CARRIED BY UNANIMOUS ROLL CALL VOTE.

MOTION by Commissioner Carr SECONDED by Commissioner Holt that the minutes from the Regular Meeting held on February 6, 2008 be approved and placed on file.

MOTION CARRIED BY UNANIMOUS ROLL CALL VOTE.

PUBLIC COMMENTS

Jesse Knoll stated roads on Sugar Island are in good shape.

Supervisor Myerscough thanked Road Commission for cleaning up at the ferry dock. He inquired about having some of roads on Sugar Island widened out. Thanked Board members for doing a good job and being so good to work with over the years.

Foreman Pesola indicated crews are busy with general winter maintenance.

County Commissioner Moore thanked crews in the Rudyard area for making sure the roads are being sanded.

County Commissioner Kay presented purchasing policy for agencies receiving Act 51 funding. He indicated this purchasing policy was obtained from Mr. Phil Wolf, Anderson Tackman & Company, and can be found in the Uniform Accounting Procedures for Road Commissions.

County Commissioner Kay stated he felt there were a couple of sections of the purchasing policy that were not followed when the Managers vehicle was purchased.

County Commissioner Kay read the following sections of the purchasing policy.

Purchases of materials, parts and equipments should be made only after a purchase order has been issued by authorized personal of the Road Commission. In all cases of expenditures of sums greater than 15,000.00, $50,000.00 under emergency conditions, purchase orders can be issued only after Road Commission have accepted bids, pursuant to advertising for sealed proposals.

Commissioner Kay also read sections regarding ethic standards. He also indicated County Boards, which are appointed by the County Commission reflect very badly on the County Commission when citizens start calling County Commissioners inquiring as to what is going on at the Road Commission.

Commissioner Kay stated he felt the Road Board has violated the purchasing policy and the trust that Chippewa County had in them.

Commissioner Kay suggested that the Road Commission return the vehicle to Newberry Motors, properly bid this vehicle with a specific set of specifications and hold a public bid opening.

Commissioner Kay indicated again that Chippewa County has adopted a 3% allowance given to local vendors.

Foreman Erickson and McConkey indicated their crews are busy with general winter maintenance.

Office Mgr. Decker indicated auditors will be in Monday morning to begin financial audit for 2007.

Office Mgr. Decker stated he had received a letter from County Controller’s Office indicating the Chippewa County Board had approved $5,000.00 for the help in purchasing new maps with the request that ½ the maps be delivered to the County Courthouse. Office Mgr. Decker indicated we would deliver approximately 20 cases to the County when they arrive.

Union President Hopper thanked mechanics and drivers for doing a great job during the recent storm.

Chairman MacDonald addressed concerns raised by Commissioner Kay.

Chairman MacDonald stated he was not aware the specific document presented by County Commissioner Kay even existed.

He indicated he is aware that the State has a Purchasing Policy and to the best of his knowledge we do follow that policy.

Chairman MacDonald also stated he didn’t understand why Commissioner Kay had read the ethics standards section, because as far as he is concerned it didn’t have any application to this Board. He went on to state the Road Board operates ethically, honestly, and very sincerely tries to represent the best interest of the public and implications to the contrary are totally improper, incorrect, and out of line.

Chairman MacDonald indicated we are in the process of drafting a policy which should address a lot of the issues that have been raised.

Chairman MacDonald stated how difficult it is to try and write a set of specifications for a vehicle rather than for certain types of equipment.

Chairman MacDonald indicated we always try and support local business, but our first responsibility is to the people who provide us with the resources necessary for highway maintenance. The Board is very careful in how we spend those dollars trying to utilize funding the best way we can.

Chairman MacDonald stated the policy for how much of a break we give to local vendors is a tough one, but indicated he doesn’t believe in percentages especially when it comes to larger dollar purchases.

Chairman MacDonald indicated that if we have in any way violated the States Purchasing Policy and if there was a mistake made, then by all means we should correct it, and should not make the mistake again, but indicated in all honesty didn’t feel this was true.

Chairman MacDonald stated that he didn’t feel that returning the vehicle to Newberry Motors would be in any ones best interest and would only end up costing the public more money.

Commissioner Carr indicated from past history he realizes the sensitivity of these types of decisions.

Chairman MacDonald reiterated he absolutely rejects the implications in Commissioner Kay’s statements as being factual.

County Commissioner Kay asked if they were aware of the purchasing policy he had referenced.

Chairman MacDonald asked Manager Heckman if he were aware of the Policy that Commissioner Kay was referring to.

Manager Heckman stated he believes it’s a statement in the accounting manual, but not one the Road Commission has formally adopted as our purchasing policy.

Manager Heckman stated that our auditors review all of our purchases and they use this manual as guidelines for our purchases and it has never been an issue in the past.

Commissioner LaJoie indicated he feels a mistake has been made and that the local dealers deserve an apology.

In closing, Chairman MacDonald indicated we are aware of the local business position and want to see the local businesses do well, but doesn’t feel we owe anyone an apology for making a decision we thought was the right one.

Chairman MacDonald addressed the portable lift system which was tabled from our meeting held on February 6, 2008 until further research could be done on the differences in the two systems bid.

Chairman MacDonald stated he has read all the information he could find on the two types of systems. He did look at the Gray Manufacturing web site, which has a lot of information. He indicated when the bids were sent out we did specify the units were to be portable and cordless. He indicated the negative features of having units which are not portable and require power cords.

Manager Heckman indicated in developing the specifications for a new lift system that would be acceptable, we asked for one which was portable and cordless along the lines of the Gray model.

Manager Heckman indicated we sent these specifications out to four different local suppliers with the anticipation that someone locally could supply us with a portable lift system equal to the Gray Manufacturing model.

Manager Heckman stated we only received two bids. The bid received from the local bidder did not meet the specification requirements.

Discussion on three phase power sources which are only available in the Sault garage.

Chairman MacDonald and Commissioner Holt indicated they would like to be able to view the cordless hoist system and asked Manager Heckman to find out where they might observe this system before a final decision is made on this purchase.

Manager Heckman presented (2) Township Road Agreements with Drummond Island Township for work on the following roads.

(1) Work on approximately 1.33 miles on Walding Road and S. Shore Road. Improvements to consist of clearing, aggregate base, HMA surfacing and aggregate shoulders. Township share is estimated to be $110,170.00.

(2) Work on approximately 1.5 miles on Maxton Cross Roads and Maxton Road. Improvements to consist of clearing, aggregate base, HMA surfacing and aggregate shoulders. Township share is estimated to be $99,450.00.

Commissioner Carr inquired as to if this work would be scheduled this year.

Manager Heckman stated he didn’t anticipate it being completed this year, but would be started.

Commissioner Carr indicated he feels township projects should be fairly scheduled between all townships.

Chairman MacDonald indicated the townships pay a good portion of the project cost, which play a major role in what we are able to do with our crews. He indicated it is because of the townships and county road millages that we are in better financial shape than a lot of other counties along with good management of our funds.

MOTION by Commissioner Holt SECONDED by Commissioner Carr to approve the two Township Road Agreements with Drummond Island Township as presented.

MOTION CARRIED BY UNANIMOUS ROLL CALL VOTE.

Manager Heckman presented bids received for eight tandem axle trucks, seven with air ride and one with HMX suspension.

The three manufacturers which bid were Zaremba, U.P. Truck Center and Peterbilt with bids ranging in price from $574,800.00 to $822,596.00. Zaremba submitted three separate models with only one meeting bid specifications. The models which U.P. Truck Center bid also did not meet specifications. The models Peterbilt bid meet specifications with a bid of $574,800.00.

Discussion on trading in or selling outright our vehicles we wish to dispose of.

Chief Mechanic Sibbald indicated the specifications were written for proposed trade-ins on these vehicles, which doesn’t lock us in. At the point a transaction occurs the bidder could then accept any vehicles we had left as trade.

Office Manager Decker indicated financing has not been established yet, but was anticipating financing the truck chassis and paying cash for the equipment and dump bodies.

MOTION by Commissioner Holt SECONDED by Commissioner Carr to accept low bid received from Peterbilt in the amount of $574,800.00 subject to acceptable bank financing.

MOTION CARRIED BY UNANIMOUS ROLL CALL VOTE.

Office Manager Decker indicated the trucks would be paid for as they are delivered to the body builder and not paid out all at once.

Manager Heckman requested authorization to receive bids for dump bodies, underbodies, hydraulics and (1) truck to be equipped with a wing.

Chairman MacDonald requested a copy of the bid specifications for the truck bodies for review before they are sent to bidders.

MOTION by Commissioner Holt SECONDED by Commissioner Carr authorizing receiving bids for truck bodies subject to Boards review of specifications.

MOTION CARRIED BY UNANIMOUS ROLL CALL VOTE.

Union President Hopper inquired if any of the new trucks would be outfitted with pre-wet system.

Manager Heckman stated we have decided not to equip any of the new trucks with the pre-wet system.

MANAGERS REPORT

· Thanked crews, foreman, mechanics and all agencies for efforts during the last storm.

· 6 Mile bridge design over the Waishkey River has been submitted and approved by the Federal Hwy Administration. The project is now being reviewed by the BIA in Washington for construction funding for 2008. Plans are also with MDOT so we might be eligible for the local match through the State Local Bridge Program.

COMMISSIONERS COMMENTS

Chairman MacDonald commented that we are hoping to have a draft copy of a written purchasing policy available for the next meeting for review.

There being no further business to come before the Board it was MOVED by Commissioner Holt SECONDED by Commissioner Carr that the meeting be adjourned at 9:08 a.m.

MOTION CARRIED BY UNANIMOUS ROLL CALL VOTE.

_________________________ _________________________

Christine A. McDowell Louis N. MacDonald

Secretary for the Board Chairman