Regular Meeting
Republic Township Board
12-18-08
PRESENT: Hurst, Johnson, Koski, Mattila, Skogman
VISITORS: B. DeGenaro, J. Brennan, G. Adams, N. Currie, Eric Waara (UPEA)
1. Supervisor Johnson called the meeting to order at 7:00pm in the Township Hall.
2. Salute to Flag
3. Motion by Hurst, seconded by Koski, to approve the agenda with the following addition: 9-C [school summer tax] CARRIED
4. Motion by Mattila, seconded by Hurst, to approve the minutes of the 11-24-08 regular meeting as presented. CARRIED.
5. Motion by Hurst, seconded by Koski, to pay the bills in the amount of $41,333.54. CARRIED.
6. PUBLIC COMMENT: length – 2 minutes
7. REPORTS:
a) Trustee Koski= attended & reported on Planning Comm. meeting
b) Trustee Hurst/Heritage Trail= reported on Rec. Authority; all municipalities have resigned with the exception of Humboldt Twp.
c) Ambulance- Nancy Currie;
Motion by Mattila, seconded by Hurst, to send EMT Pat Cheverette to a class at NMU for “EMS Reporting” – she is to be reimbursed for meals, mileage, and meeting per diem. CARRIED.
d) Assessing- Mr. Bray is now working with the BSA software.
e) Website- written report from Mr. Nannestad.
f) DPW- no action on the ‘above ground’ fuel tank.
1. UNFINISHED BUSINESS:
a) Road Repair Grant-
Motion by Skogman, seconded by Mattila, to approve payment request #4 in the amount of $20,631.72. CARRIED.
b) Water Line Grant- Eric Waara [UPEA]; need approval for special loan and signage of new water line easement.
Dear Supervisor Johnson and Board Members:
UPEA and Republic Township have entered into a contractual relationship for the design for the Water System Improvements project funded by Rural Development (RD). The expenses incurred for the engineering work are reimbursable from the proceeds of the RD funding; though no RD funds are available until loan closing. Right now we expect that closing to occur early next summer. We understand that the Township has approximately $50,000.00 dollars in a fund which can be applied toward engineering fees which can be reimbursed by RD at the loan closing.
Due to the size and scope of the contract it is understood by both parties that Republic Township does not have adequate cash resources to pay for all engineering services with out-of-pocket funds. To alleviate some of the burden on the Township; UPEA is willing to seek financing from its lender to finance the engineering through the project loan closing. Said credit will carry an interest rate in the 5.25% range. It will be the Township’s responsibility to reimburse UPEA for the monthly interest payment on the proposed credit line. Funds for the line will be advanced at an eighty percent rate of the amount invoiced (on a reporting basis). For example, if the engineering fees for the month equal $10,000; cash will be taken from the credit line in the amount of $8,000 with the Township responsible for the interest on the $8,000. The line of credit in general will be as on the attached table showing the projected monthly charges and balance based on a loan closing date in 2009. Please note that the interest paid by the Township is not reimbursable from the RD funds.
The credit line will be activated when the Township decides that it no longer has the available cash to pay on the invoices. The line of credit shall be paid when the RD loan closing takes place when cash from RD will be available to pay the outstanding invoices in full. Upon payment of the invoices and credit line the interest payments will cease. We propose that this credit line be based on a period beyond the expected closing date to account for any potential unforeseen delays, which can happen. The proposed period would be until July 2010.
Requested is the Township’s approval of the invoice loan concept and reimbursements to UPEA of the interest charges.
Should you have any questions or concerns regarding this process please do not hesitate to call upon me.
Thank you for the opportunity to serve your community.
Sincerely,
Eric T. Waara, P.E.
Civil Engineer/Associate
UP Engineers & Architects, Inc.
Motion by Mattila, seconded by Koski, to approve the invoice loan concept and reimbursements to UPEA on the interest charges, with current outstanding invoices to be paid out of available Township cash; credit line to be opened January 1, 2009. CARRIED.
Motion by Skogman, seconded by Mattila, to sign the new water line easement for the new water line project. CARRIED.
c) Evergreen Street Sewer Line Study- Board members have received a copy of letter the Twp attorney sent to Northern Specialty’s attorney.
d) Pasty.Net- tower work/rental fee swap; Board authorizes Supervisor Johnson to work out the agreement.
e) Office “Leave Hours”- no action
f) Bank Building- the Township has received notification of a grant award of $32,500 for acquisition of the old Republic Bank building.
1. NEW BUSINESS
a) Boards/Commissions Vacancies- the following filed applications to serve on the various Boards and Commissions:
Zoning Board of Appeals (1 three year term) – Linda Allain
Board of Review (3 two year terms) – Carol Nicholas, Vickie Radcliffe, Bill Payne
Planning Commission ( 2 three year terms) – Tom Feldhusen, Dan Mitchell
Motion by Mattila, seconded by Hurst, to approve the appointments of the above applicants to serve on the various commissions/boards. CARRIED.
b) EMS Printer-
Motion by Skogman, seconded by Mattila, to purchase a HP laser printer for the EMS service at an approximate cost of $273. CARRIED.
c) R-M School Summer Taxes-
Motion by Hurst, seconded by Koski, to authorize the collection of the Republic-Michigamme School summer taxes with an administrative fee of $2.50 per parcel. CARRIED.
10. PUBLIC COMMENT: length – 11.5 minutes
11. ADJOURNMENT: the meeting was declared adjourned at 7:55pm.
APPROVED: _______________________________
DATE : ________________________________
SIGNED : ________________________________
