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

December 2, 2009 at 5:30 p.m. in their office located at 13300 Fifteen Mile Road, Marshall, Michigan.

PRESENT: Commissioner Scott Brown, Chairman

Commissioner Hugh Coward, Vice Chairman
Commissioner Charles Monaweck, Member
Commissioner Eric Tobin, Member
Commissioner Christopher Vreeland, Member

ALSO PRESENT: Kevin Henning, Managing Director

Pixie Coats, Board Clerk
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 Tobin and supported by Commissioner

Vreeland to approve the Claims Payable Listings ending November 23,
2009 for $201,421.55. Roll call vote: Monaweck-Yes; Tobin-Yes;
Brown-Yes; Coward-Yes; Vreeland-Yes. Motion carried.

Motion made by Commissioner Coward and supported by

Commissioner Vreeland to approve the November 18, 2009 regular
meeting minutes. Voice vote: Motion carried.

PUBLIC HEARING ON THE 2010 BUDGET

Chairman Brown opened the Public Hearing on the 2010 Budget at 5:33 p.m. Mr. Henning noted that the
2010 Budget looks similar to the 2009 Budget, as the revenue streams have remained the same. He
provided a PowerPoint presentation and reviewed the proposed Calhoun County Road Commission
budget for 2010 as follows:

Revenue (Earned): $75,000 - This is revenue that we have control over and includes
permits, addressing, interest, and the sale of the Albion Garage.

Additional Revenue: In addition to the revenue generated from the Calhoun County Road
Commission, we receive an appropriation from the State of Michigan through the Michigan
Transportation Fund (MTF). Appropriation is a legislative designation of money for a particular
use.

MTF Distribution: Mr. Henning explained that MTF revenues are funded by gas tax and vehicle
registration fees, which for the State of Michigan is 19¢ per gallon. Each cent equals
approximately $48.8 million per year, for an annual funding amount of $927.2 million all of which
goes to the MTF for distribution.

The MTF is distributed between State highways, county road systems, cities and villages, public
transit, economic development, and local bridges, railroad crossings, etc. The distribution
formula has not changed since Act 51 was passed in 1951.
 Board of Calhoun County Road Commissioners
Minutes of December 2, 2009

MTF Limitations: The State’s gas tax has stayed at 19¢ per gallon since 1997, the second
lowest in the region. No matter what the price is for a gallon of gas, only 19¢ goes to the State
gas tax. This is not a sales tax.

MTF Appropriation: This appropriation is divided into three categories: Engineering; Primary
Road System; and the Local Road System. Mr. Henning explained the inverse relationship
between revenue and expenses, as 2/3 of our MTF appropriation is for primary roads which
constitute 1/3 of our roads, while the remaining 1/3 of our MTF appropriation is designated for
local roads that make up 2/3 of our road system. Act 51 designates the percentage of funding
that can be used on primary road maintenance, 50% cap on local road improvements, winter
maintenance, non motorized/roadside parks, and the percentage of the balance after debt
payments. In 2009, MTF was down 4% - we are budgeting for a 6% decrease in MTF in 2010.

2010 Projects: Federal aid projects are not funded with MTF funds. Federal aid projects
planned for 2010 include construction of the 22 Mile Road Bridge over the St. Joseph River
(design was done in 2009); Verona Road from 12 to 15 Mile Road; N Drive North from 15 to 16
Mile Road; 11 Mile Road from Wheatfield Parkway to Verona; and 6 ½ Mile Road from B Drive
North to Christian Drive.

Expenditures: Includes the primary road system, local road system, equipment, administrative,
engineering, distributive fringe and overhead, capital outlay, debt service, and charges for
services.

Primary Road System: A total of $2,074,000 is budgeted for our primary road system in 2010.

Local Road System: A total of $2,181,500 is budgeted for our local road system in 2010. We
are budgeting $400,000 in township match for the local road program. Mr. Henning commented
that all summer construction in 2010 will be dependent on the cost of winter maintenance, noting
that the cost of a weekend snow event is equivalent to 1½ miles of sealcoating.

Equipment: The Net Equipment Gain is estimated at $606,453. Mr. Henning stated that 26
pieces of our equipment have value to depreciate – all other equipment is fully depreciated.

Remaining Expenses: Administration-$893,170; Engineering-$138,775; Distributive Fringes-

$1,978,224; Distributive Overhead-$535,894; Non Equipment Depreciation Credit–($39,701);
Capital Outlay-$230,000; Debt Service-$418,601.

Charge for Services: State Maintenance Contract-$1,318,359; Other Contract Agreements-$0.

Revenue/Expenditures: Total Revenues expected in 2010 are $9,088,359 and Total

Expenditures expected are $9,087,469 for a Net Gain of $890. It is anticipated that the majority
of the fund balance created will be contributed to the Primary Road Fund.

Chairman Brown asked if any townships have expressed an interest in participating in the local road
program in 2010. Mr. Henning responded that several townships have contacted him and expressed
interest in participating.

Chairman Brown commented that he would like to have a plan that included what it would take and the
costs associated to maintain roads we have.

Chairman Brown closed the public hearing at 6:14 p.m.

2
 Board of Calhoun County Road Commissioners
Minutes of December 2, 2009

COMMUNICATIONS AND RESOLUTIONS

Mrs. Coats read the communications as follows:

a. Received a request from Battle Creek Area Transportation Study (BCATS) to proclaim December
2009 as “National Drunk and Drugged Driving (3D) Prevention Month”

b. Received Traffic Control Order 09-100-003 regarding the placement of a traffic signal at the
intersection of 6 ½ Mile Road and Harper Village Drive.

c. Received a Career Development request from Kevin Henning, Managing Director.

MANAGING DIRECTOR’S REPORT

Approve the 2009 Amended Budget: Mr. Henning stated that Board members received a
copy of the 2009 Amended Budget at their last meeting. Most of the adjustments made were to
recognize revenue that was not anticipated that we receive through refunds from Blue Cross Blue
Shield, Worker’s Compensation, and our General Liability carrier. Mr. Henning requested
approval of the 2009 Amended Budget.

Motion made by Commissioner Tobin and supported by Commissioner

Coward to approve the 2009 Amended Budget. Roll call vote: Brown-
Yes; Coward-Yes; Vreeland-Yes; Tobin-Yes; Monaweck-Yes. Motion
carried.

Approve Resolution 2009-15 proclaiming December 2009 as “National Drunk and

Drugged Driving (3D) Prevention Month”: BCATS has requested our participation in the
national effort to bring attention to the issues associated with impaired driving by a resolution
proclaiming December, 2009 as “National Drunk and Drugged Driving )3D) Prevention Month”. Mr.
Henning requested approval of the resolution.

Motion made by Commissioner Tobin and supported by Commissioner

Vreeland to approve Resolution 2009-15 proclaiming December 2009
as “National Drunk and Drugged Driving (3D) Prevention Month”.
Voice vote: Motion carried.

Approve Traffic Control Order (TCO) 09-100-003: Mr. Henning stated that the purpose of
TCO 09-100-003 is for placement of a traffic signal at the intersection of 6½ Mile Road and Harper
Village Drive where traffic volumes have increased. This traffic signal would replace the blinking
light currently in place. Board approval was requested.

Motion made by Commissioner Tobin and supported by Commissioner

Coward to approve Traffic Control Order 09-100-003 regarding the
placement of a traffic signal at the intersection of 6½ Mile Road and
Harper Village Drive.

Commissioner Tobin clarified that this would be a regular traffic signal. Mr.
Henning replied that it would be.

Voice vote: Motion carried.

3
 Board of Calhoun County Road Commissioners
Minutes of December 2, 2009

Career Development Request: In accordance with Board Policy #52, Mr. Henning has
submitted a Career Development request for the winter semester. Board approval was requested.

Motion made by Commissioner Coward and supported by Commissioner

Vreeland to approve the Career Development Request from Kevin Henning,
Managing Director. Roll call vote: Tobin-Yes; Monaweck-Yes; Brown-Yes;
Vreeland-Yes; Coward-Yes. Motion carried.

Communications: Mr. Henning reported that the regularly scheduled Township Supervisor
meetings are going well and have been well attended. We have been asked to hold one Township
Supervisor meeting per quarter in the evening and have tentatively scheduled a meeting for
Wednesday, January 20, 2010 at the conclusion of the Road and BPW meetings.

COMMISSIONERS TIME
Commissioner Monaweck commented on the following:

Reported a call he received from a resident regarding the large number of tires that were dumped
on the roadside on 10 Mile Road in Newton Township. The pile keeps growing and Commissioner
Monaweck suggested that CCRC pick them up.

Provided photographs of 3 ½ Mile Road, south of address 11433, where sludge haulers have tore
up the road.

Provided photographs of D Drive South and 2 Mile Road where drainage work has been done that
has made a dent in the high water level.

Received a thank you call from a resident in Steamburg who was pleased with the reflective posts
that were installed.

Provided photographs of 2 ½ Mile Road, north of H Drive South where the water level has receded,
due to drainage work performed there.

ANNOUNCEMENTS
The next regular meeting of the Board of Calhoun County Road Commissioners will be held on
Wednesday, December 16, 2009 at 5:30 p.m.

There being no additional business before the Board, Chairman Brown adjourned the meeting at
6:32 p.m.

Submitted by:

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