board of commissioners meeting william j. bunek, … · wms and wsh - new roofs wms -...

Posted: 6/7/18, 4:00 p.m.

BOARD OF COMMISSIONERS MEETING William J. Bunek, Chairman

NOTICE OF MEETING

The Executive Board of Commissioners Meeting of the Leelanau County Board of Commissioners will be held on June 12, 2018, at 9:00 a.m. in the Commissioner Meeting Room,

Leelanau County Government Center, Suttons Bay, Michigan

(Please silence cellular/electronic devices)

(Proceedings of the meeting are being recorded and are not the official record of the meeting; the formally approved/accepted written copy of the minutes will be the official record of the meeting.)

TENTATIVE AGENDA CALL TO ORDER PLEDGE OF ALLEGIANCE / MOMENT OF SILENCE ROLL CALL COMMUNICATIONS, PROCLAMATIONS, PRESENTATIONS: PAGE #

• Administrator Update• Paul Soma, Superintendent, Traverse City Area Public Schools – TCAPS Millage Request 2-12• Probate/Family Court Department Update 13-16

APPROVAL OF AGENDA / LATE ADDITIONS OR DELETIONS PUBLIC COMMENT ACTION ITEMS 1. Treasurer –

a. Approval of Annual Transfer of Land Sale Proceeds Report. 17-18b. Approval of Revised Financial Depository Resolution. 19-20c. Approval of Clark Hill Engagement Letter in Foreclosure Matters. 21-28

2. Emergency Management –a. Internet Service Provider (ISP) Tower Fee Schedule, under separate cover.

b. Cherry Capital Connection Tower Agreement. 29-48c. Tower Communication System Plan Proposal. 49-55

3. Workers’ Compensation Insurance Proposals –a. Chris Branson, Bonek Agency. 56-68b. Dennis Muth, Peterson McGregor & Associates. 69-70

4. Sheriff’s Office –a. Approval of 2018 Marine Safety Program Grant Agreement. 71-73b. Approval of 2018 Federal Port Security Grant Application, under separate cover.

5. Probate/Family Court – Annual Plan and Budget for the Child Care Fund. 746. Planning & Community Development –

a. Approval of Recycling Agreement with the Village of Empire. 75-78b. Approval of Recycling Agreement with Glen Lake Community Schools. 79-82

7. Equalization – Approval of 2018 Tax Rate Request L-4029. 83-858. 2019 Budget Process/Schedule. 86-929. Review of 2018 Goals. 93-9410. “Invisible Leelanau” – Family Demographics, Commissioner Wessell. 95-99REVIEW OF FINANCIALSSPECIAL REPORTS BY STAFF, COMMISSIONERS, AND AFFILIATED AGENCIESPUBLIC COMMENTCOMMISSIONER COMMENTSAPPROVAL OF FINANCIALS

• Amendments & Transfers• Miscellaneous Fund Transfers and Amendments• Claims and Accounts• Post Audit

ADJOURNMENT

1

2018 Capital Bond Planning

2

District Snapshot

● Total budget of over $100 million

● 2nd largest employer in northern Michigan

● $370 million in assets

● Nearly 10,000 students

● 300 square mile boundary area

● 17 schools, 6 support buildings

● 2,000,000 square feet of space3

Safety and Security ImprovementsReconstruct the main entrance at Central High School, West Middle School, and several elementary buildings to improve security infrastructure and facilitate improvements to visitor check-in procedures.

Elementary ReconstructionReconstruct one elementary school building. The TCAPS Montessori at Glenn Loomis building is currently the highest priority building in the district due to its condition, age, and lack of physical design to support Montessori instruction.

High School STEM/Robotics RoomsCreate dedicated science, technology, engineering and math (STEM) and robotics laboratories at Central High School and West Senior High School. K-12 STEM instruction is a key educational initiative for TCAPS, which is designed to give students the tools and knowledge they need for the future.

Facility Improvements at All SchoolsProjects vary by building based on need and include projects to upgrade or replace roofs plumbing, heating and cooling systems, flooring, parking lot/walkways, restrooms, classrooms, physical education spaces, and playgrounds.

Bus ReplacementContinue the district's bus replacement program, which allows the district to offer safe and reliable transportation for TCAPS students as well as area private and parochial school students. TCAPS continually receives 100% passing ratings on school bus inspections by the Michigan State Police.

TechnologyContinue technology program, which allows students and schools to access technology that supports learning and student achievement.

Major Projects

4

Strategic Direction in Focus

● Listened to the Voice of the Community● Heightened Financial Stewardship

○ Structurally balanced budget○ Reduction in overhead costs○ Disciplined asset mgmt

● Innovative and Entrepreneurial Programs → Revenue Generation,Stabilize Student Enrollment○ Northern Michigan Partnership○ International Program

● Investment in updated curriculum Math and English Language Arts5

TCAPS Bond History

● 15 bond or millage campaigns run since 1987● All but 4 passed with overwhelming support● 11 successful requests did not include increases● 2012 and 2013 requested increases

and were on the heels of the 2007recession○ Prior to voters’ economic

confidence being regained● 2014 non-homestead renewal

passed with 67% support 6

● Construction of new school buildings& additions to existing buildings

● Remodeling of school buildings● Energy conservation improvements● Asbestos abatement● Purchasing school buses● Purchasing land● Developing/improving sites● Developing/improving athletic &

phys ed facilities● Purchasing loose furnishings &

equipment● Purchasing technology (with

certain limitations)

● Repairs, maintenance, or maintenanceagreements

● Supplies, salaries, service contracts, leasepayments, installment purchase contracts

● Automobiles, trucks, or vans● Portable classrooms purchased for

temporary use● Uniforms● Textbooks● Upgrades to existing computer operating

systems● Computer training, consulting or

maintenance contracts

Bond Proceeds Can Be Used For

Bond Proceeds Cannot Be Used For

7

Capital Bond Plan

10 year plan

8

Proposed Bond Projects Elementary

● Elementary Main office reconfiguration for improvedsafety and security

● Elementary flooring upgrades● Furniture upgrades● Locker replacements/additions● Athletic/Physical Education equipment● Visual, Performing, and Applied Arts equipment

9

Proposed Bond Projects Secondary

● EMS - Resurface Track● EMS - Digital clock upgrades● Coast Guard Renovation - Trojan athletic complex for soccer,

baseball, and softball● CHS - Renovation to main office to provide better line of site● CHS - Renovation for Robotics and STEM dedicated spaces● CHS - New Roof● CHS - Main gym upgrades and renovations

10

Proposed Bond Projects Secondary

● WMS and WSH - New Roofs● WMS - Upgrade/renovate main office to provide better

line of site● WMS - Renovate cafeterias to increase efficiency and

improve supervision● WMS - Resurface track● WSH - Robotics/STEM addition and/or renovation● WSH - Weight room upgrades/renovation● WSH - Auditorium upgrades/renovation● WSH - Athletic parking lot/fieldhouse● WSH - Parking lot enhancements 11

TCAPS Capital Bond 2018Election August 7, 2018

www.tcaps.net/bond 12

http://www.youtube.com/watch?v=zQbhw2fTsoQ

Family Court BOC presentation in June

Staff Names, Titles, and Years of service:

Elijah Smith: Intern from Ferris State University is helping John Boonstra and Ryan Douglass with their caseloads and with the guy’s group activities this summer completing his hours in August.

Ashley Nuno: Temporary employee filling in for Cassidy Fisher while on maternity leave.

Susan Richards: Probate Register and Adoption Specialist, 31 years

Josephine Lingaur: Juvenile Register and Judicial Secretary, 19 years. After having a serious illness she is making significant progress and is inches away from being back full time.

John Boonstra: Youth Services Counselor –boys, 4 years 7 months

Cassidy Fisher: Youth Services Counselor—girls, 2 years, 3 months (Second child was another boy. She’s discovered parenting is harder with two and she’s not enjoying the sleep deprivation part. I told her before long she’ll get used to the sleep deprivation and that raising kids gets easier after about 24 years!

Ryan Douglass: Juvenile Probation Officer—boys, 18 years, 9 months

Therese Larson: Juvenile Probation Officer—girls, 24 years, 1 month

Joseph Povolo: Family Court Administrator and Volunteer Coordinator, 30 years

Honorable Larry J. Nelson: Probate/Family Court Judge. He will be greatly missed by the staff.

Who’s next? We welcome either Michael Long or Marian Kromkowski and wish them both best of luck with the election.

13

FY 2017-18 Child Care Fund: is currently $655,180.00

FY 2018-19 Child Care Fund request: $675,000.00

This fund is used to pay the cost three categories of Care for wards of the Court: Foster Care, Institutional Care, and In-Home Supervision. Foster Care is essentially licensed foster home care which most often is for our Neglect and Abuse case, but can be used for Delinquency cases as well. Institutional Care, which includes Detention and Residential Care mostly for our Delinquency cases, and In-Home Care which covers the cost of counseling, tethers, psychological evaluations, drug tests, Intensive Probation Supervision and miscellaneous costs related to keeping kids in their homes.

Foster Care: $140,000.00 Institutional Care: $190,000.00 In-Home Supervision: $360,000.00 Basic Grant: $15,000.00 Total: $675,000.00 The Court is reimbursed 50% from the State for qualified Child Care Fund expenses. We receive 100% of Basic Grant.

The Court also has wards of the State. When costs are incurred for State Wards, the State pays for the care and bills the Court for 50% of the costs, this is known as State Ward Chargeback.

Either way, the court essentially pays for 50% of costs of care. Any costs over that amount come 100% out of County funding. Therefore, it’s always important to have a high enough cap so that we get at least 50% reimbursement.

Last years In-Home Care component included having the Youth Services Counselor position for girls, however we received $75,555.00 from an OJJDP grant and therefore we have not needed to tap into the CCF for funding that position. We anticipate receiving another $75,000.00 for the forthcoming fiscal year as long as we continue to provide successful implementation of the grant.

14

We continue to be a part of the School-Justice Partnership, which is a state-wide initiative to decrease the number of students truanting from school and explore alternatives to school detentions and suspensions. We continue to partner with the Prosecutors office and the schools to intervene quickly in order to diminish the opportunity for truancy to become a pattern of behavior and a step into the formal Juvenile Justice system.

The “Raise the Age” initiative is driven by MCCD, the Michigan Council on Crime and Delinquency, which seeks to raise the age of criminal jurisdiction from age 17 to 18. This of course means some type of financial adjustment between The Department of Corrections, who deals with adults, who will have to let go of some of their budget and correspondingly, Family Courts will need increases in their budgets to administer programs for this age group. After several years now, this still has not come to be, and there are some that say it never will because the costs in Family Court will be prohibitive and therefore will fade away. In a small county like Leelanau, it could go into effect tomorrow with very little consequence/changes felt. We could absorb a slight increase in caseload and costs wouldn’t increase significantly.

In the Family Court our caseload numbers remain low with the Abuse and Neglect cases and about average in our probation and the prevention work caseloads. The good news is thus far our Child Care Fund Budget is in very good shape as in the first 7 months of the CCF fiscal year, we have 100% remaining in foster care, 45% in institutional care, and 70% in home supervision. We have an overall average of 70% of the CCF remaining.

10% CCF In-direct Cost Allocation: Thus far in FY 2017-18 (seven months, October-April) we have received $13,954.00 and anticipate (already submitted but state is usually a few months behind) a total of $19,198.00, and estimate a total of about $32,000 for this FY. We did not receive this before. This is money I proposed that we could be able to use to offset funding the Youth Services Position for girls after we no longer receive the state grants we currently receive.

G2 and V&C are both going great with a full schedule of planned activities and numbers of kids anticipated in participating. These activities are a “best

15

practice” modeled mentoring program and are partially funded by Liquor tax dollars and are closely monitored by the NMRE, Northern Michigan Regional Entity.

Therese Larson completed her final year of organizing the GOTR after 19 extremely successful years and thousands of girls impacted by the program.

A grant request was also submitted to the GTB for 2% funds to be used in conjunction with Leelanau Christian Neighbors. Thank you for your support of it.

Volunteer activities: CASA, RDSS, tutoring, mentoring, and transporting volunteer opportunities are still available.

Thank you.

Any questions?

16

EXECUTIVE DOCUMENT SUMMARY

Department:

Contact Person:____________________________

Telephone No.: ____________________________

Source Selection Method

Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________

Document Description

Board/Committee Recommendation Other_________________________________

SuggestedRecommendation:

Department Head Approval:________________________________ Date: ______________________

Submittal Dates

Executive Board: ____________________

Regular Session: ____________________

Budgeted Amount: ____________________ Contracted Amount: __________________

Request to Waive Board Policy on Bid RequirementsRequest to Waive Board Policy on Bid Requirements

Treasurer

John A. Gallagher

2312569838

■06/12/2018

■06/19/2018

Select One

■ Transfer

$ 0.00

■ Board/Committee Recommendation

Before you today is the Treasurer's annual Land Sale Proceeds Report for taxforeclosures. The net sales proceeds available for transfer is $177,721.20. With the taxforeclosure fund having a fund balance of $482,962.01, I recommend a transfer of$177,721.20 to the General Fund.

I recommend to the Board of Commissioners to approve the transfer of $177,721.20from account #517.000000.999.000 to #101.000000.699.001.

John A Gallagher III

Digitally signed by John A Gallagher III Date: 2018.05.29 11:05:43 -04'00' 05/29/2018 17

8527 E. Government Center Dr., Suite 104 Suttons Bay, MI 49682 Phone: 231/256-9838 Fax: 231/256-7850 Email: [email protected]

County of Leelanau JOHN A. GALLAGHER III

Leelanau County Treasurer

ANNUAL REPORT OF BALANCE IN LAND SALE PROCEEDS ACCOUNTS

In accordance with MCL 211.78m (8) (h), this written report is presented to the Board of Commissioners.

Net Balance in Land Sale Proceeds Accounts*:

2015 tax year

$ 177,721.21

Subtotal

$ 177,721.21

Contingent Liabilities:

Properties of Concern: None Available for transfer to General Fund: $ 177,721.20

* As of May 29, 2018

This report is prepared by John A. Gallagher III, Leelanau County Treasurer

to be presented to the Leelanau County Board of Commissioners.

18


Department:

Contact Person:____________________________

Telephone No.: ____________________________


Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________





Submittal Dates

Executive Board: ____________________

Regular Session: ____________________



Treasurer

John Gallagher 06/12/2018

Select One

Select One

Before you today is a Financial Depository Resolution for the County of Leelanau, asrequired by MCL 211.43b and MCL129.12. This resolution (Board Policy #49)authorizes the County Treasurer to deposit County funds in specified financialinstitutions.

I recommend to the Board of Commissioners that they approveResolution 2018-XX, Financial Depository Resolution for the County ofLeelanau, as presented.



RESOLUTION #18-____

FINANCIAL DEPOSITORY RESOLUTION FOR THE

COUNTY OF LEELANAU As Required by MCL 211.43b and MCL 129.12

1.0 PURPOSE The purpose of the Financial l Depository Resolution for the County of Leelanau is to comply with the General Property Tax Act (MCL 211.43b) and Michigan Public Funds Law (MCL 129.12). This Policy authorizes the County Treasurer to deposit County funds in specified financial institutions (as defined in MCL 129.91 (7)) and limits the amount of County Funds that can be deposited in any one financial institution. 2.0 DELEGATION OF AUTHORITY The County Treasurer is responsible for deposit of all public funds and the administration of this policy. The County Controller/Administrator shall certify the County Treasurer’s authority under this policy if asked to do so by a financial institution. 3.0 DEPOSITORY INSTITUTIONS The County Treasurer shall deposit County funds in any of the following financial institutions:

a. Chemical Bank b. D.A. Davidson c. Fifth Third Bank d. First National Bank of America e. Huntington National Bank

f. Michigan Class g. Morgan Stanley h. Oppenheimer & Co., Inc. i. Traverse City State Bank

4.0 PRUDENCE The County Treasurer shall make deposits of county funds with the judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence would exercise in the management of their own affairs. 5.0 REPORTING The County Treasurer shall provide an annual report to the Board of Commissioners which provides a clear picture of the status and types of investments of the current investment portfolio. This report shall be prepared in a manner which will allow the Board of Commissioners to ascertain whether investment activities during the reporting period have conformed to the Investment Policy.

Deleted: 7

Deleted: 13

Formatted: Number of columns: 2

Deleted: JP Morgan Chase

Deleted: Citizens Republic Bancorp

Formatted: Indent: Left: 0.75", No bullets ornumbering

Deleted: <#>Fifth Third Bank¶The Bank of Northern Michigan¶<#>Michigan Class¶<#>First National Bank of America¶<#>Morgan Stanley¶<#>D.A. Davidson¶<#>Chemical Bank¶¶¶

20


Department:

Contact Person:____________________________

Telephone No.: ____________________________


Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________





Submittal Dates

Executive Board: ____________________

Regular Session: ____________________



Treasurer

John Gallagher

231-256-9838

■06/12/2018

■06/19/2018

Select One

Board/Committee Recommendation

■

Before you today is an engagement letter between the Leelanau County Treasurer'soffice and Clark Hill PLC for review. This document shall allow the Treasurer's office toutilize the legal services of Clark Hill PLC instead of the Leelanau County Prosecutorfor all matters related to foreclosures and that in the capacity of the Leelanau CountyTreasurer. The agreement is currently under review by Cohl Stoker & Toskey, theCounty's counsel.

I move to recommend that the Board of Commissioners waive the Board policy onbid requirements and allow the Treasurer to contract with Clark Hill PLC in allmatters related to foreclosures, pending Corporate Counsel review; expenditures tocome from Fund #517.




Department:

Contact Person:____________________________

Telephone No.: ____________________________


Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________





Submittal Dates

Executive Board: ____________________

Regular Session: ____________________



Emergency Management

Matt Ansorge

(231) 256-8775

■06/12/2018

■06/19/2018

Select One

■ Tower Lease Agreement

Cherry Capital Connection, LLC

P.O. Box 866, Elk Rapids, MI

(231) 264-9970

Select One ■ Tower Lease Agreement

Request approval of the Tower Lease Agreement between Leelanau County andCherry Capital Connection, LLC (CCC). An agreement has been reached betweenboth parties to have CCC place equipment on the Central Tower and LEC Tower sites.The final agreement is pending approval from legal counsel on both sides regardingpreferred wording of the contract.

CCC is motivated to place equipment on the Maple City Tower site within the next fewmonths as well. Once equipment is ready to be installed at that tower site, anaddendum to this Tower Lease Agreement will be brought before the Board.

I move to approve the Tower Lease Agreement between Leelanau County andCherry Capital Connection, LLC, pending approval from legal counsels.

Digitally signed by Matt Ansorge Date: 2018.06.05 13:49:31 -04'00' 06/05/2018 29

of 19

TOWER SPACE LEASE AGREEMENT (Leland 800 MHz Tower & Law Enforcement 800 MHz Tower)

THIS TOWER SPACE LEASE AGREEMENT ("Lease") is executed this ______

day of ________, 2018, by and between, COUNTY OF LEELANAU, a Municipal Corporation and political subdivision of the State of Michigan (Lessor, hereinafter referred to as the "County") within the State of Michigan, whose mailing address is 8527 E. Government Center Dr., Suite 101, Suttons Bay, Ml 49682 and CHERRY CAPITAL CONNECTION, LLC, a Michigan partnership, whose mailing address is P.O. Box 866, Elk Rapids, MI 49629 (hereinafter referred to as "Lessee").

RECITALS:

WHEREAS, the County owns towers, capable of supporting antenna(s) and

transmission line(s) ("the Tower") and properties for installation and maintenance of equipment shelters a r e located at 1095 South Pit Road, Leland, Michigan 49654, and 8525 East Government Center Drive, Suttons Bay, Michigan 49682; and

WHEREAS, Lessee desires to lease space on the Towers and properties described

above for the installation and operation of equipment to receive and transmit signals; and

WHEREAS, Lessee represents that it shall, prior to installation of its equipment, obtain in effect all necessary licenses to receive and transmit signals from this location; and shall make such licenses available for review by the County upon request; and

WHEREAS, the County agrees to lease space on the Towers for antenna(s) and

transmission line(s) and on the ground for equipment shelters that are requested by the Lessee pursuant to the terms and conditions of this Lease.

NOW THEREFORE, for and in consideration of the terms and mutual promises

herein contained and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, THE COUNTY AND LESSEE AGREE AS FOLLOWS:

1. Property: The County hereby grants Lessee the right to install, maintain,

operate and remove Lessee's communications equipment and appurtenances on the County's Towers and real property owned by the County at the Pit Road (Central) tower site, located at 1095 South Pit Road, Leland, Michigan 49654, and the Law Enforcement Center (LEC) tower site, located at 8525 East Government Center Drive, Suttons Bay, Michigan 49682, situated in the State of Michigan and County of Leelanau and on the Properties which are more particularly described in Exhibit 1 attached hereto ("Property" or "Properties") together with non-exclusive easements for ingress, egress and utilities to the Tower during the Initial Term and any Renewal Terms.

2. Premises: The County agrees to provide space on the ground for equipment

30

of 19

shelters for Lessee to locate equipment to be operated by Lessee, and the County agrees to provide space on the Towers between the 120’ and 130’ level for Lessee to mount its antennas and transmission lines for Lessee's wireless transmitting purposes. It is agreed that Lessee or a contractor, retained by Lessee, in a position and manner mutually agreeable to the County and Lessee, will mount the antennas and transmission lines on the Towers and install equipment inside the shelters on the ground. The Lessee shall be responsible for maintaining its equipment in good operating condition. The County shall be responsible for maintaining the Towers and associated properties controlled by the County.

The County hereby grants Lessee access to the Properties for the purpose of installing the antenna, transmission lines and other equipment on the Towers and ground shelters. Thereafter, Lessee shall be provided access for maintenance and repair of Lessee's antennas, transmission lines, equipment, and equipment shelters. Lessee shall fully comply with all County policies and procedures pertaining to security requirements covering the County's tower sites. The County hereby grants permission to Lessee to install, maintain and operate the communications equipment, antennas and appurtenances described in Exhibit 2 attached hereto. Lessee reserves the right to replace the aforementioned equipment with similar and comparable equipment provided said replacement does not increase the weight load on the Tower. Installing signs or advertising by Lessee on the Tower or Property is absolutely prohibited, provided, however that Lessee is allowed to install any signage mandated by the FCC or any other government agency. It is understood and agreed that there is no guarantee or warranty whatsoever by the County concerning the performance or coverage resulting from Lessee use of the Tower and associated facilities. Upon ninety (90) days written notice to Lessee, the County reserves the right to require Lessee's to relocate one or more of its antennas, and Lessee agrees to relocate said antenna(s) at Lessee's expense to a mutually agreed new tower location, provided that said relocation does not substantially change or interfere with the operation of the communications equipment associated with the relocated antenna(s) or otherwise result in interference with Lessee business operations, and provided further that the County's purpose in requesting Lessee to move its antennas directly relates to a bona fide public safety purpose.

3. Initial Term: The Initial Term of this Lease shall be for a period of five (5)

years commencing on and expiring five (5) years after the Commencement Date unless terminated earlier as provided in Sections 9, 13 or 16 and various other sections of this lease.

4. Extended Terms: Lessee shall have the option to extend the Initial Term

on substantially the same terms as contained herein for two (2) additional periods of five (5) years ("Renewal Term") each with the Initial Term and both Extended Terms combined consisting of a term not to exceed a total of fifteen (15) years. This Lease shall terminate at the end of the Initial Term or the first subsequent Extended Term unless the Lessee gives the County written notice of its intent to extend the term at least thirty (30) days in advance of the expiration of the Initial Term or the first Extended Term of this Lease. Notwithstanding the provisions set forth in the first paragraph of this Section 4, the County may exercise its non-renewal rights for reasons related to the structural capacity of the Tower;

31

of 19

provided, Lessee has been given the opportunity to remedy such structural issue and either has been unable to do so or has chosen not to undertake such remedy or interference caused by Lessee which cannot be reasonably resolved or corrected; and provided that Lessee be given 180 days notice of such non-renewal.

5. Rent: Lessee shall pay to the County a total annual rent of FOUR

THOUSAND SEVEN HUNDRED FOUR AND NO/100 DOLLARS ($4,704.00) to be paid in equal monthly installments of $392.00 (“Rent”) on the first day of the month, in advance, to County or to such other person, firm or place as County may, from time to time, designate in writing at least thirty (30) days in advance of any Rent payment date by notice given in accordance with Section 15 below. County and Lessee acknowledge and agree that initial Rent payments(s) shall not actually be sent by Lessee until thirty (30) days after the Commencement Date. By way of illustration of the preceding sentence, if the Commencement Date is January 1, Lessee shall send to the County the Rent payments for January by February 1. The annual Rent shall increase at a rate of three percent (3%) per year over the Rent paid during the prior year, upon the anniversary of the Commencement Date. Upon agreement of the parties, Lessee may pay Rent by electronic funds transfer and in such event, County agrees to provide to Lessee bank routing information for such purposes upon request of Lessee.

6. Use of County Shelter and Utilities: Lessee may have equipment placed in the County shelter building. Utility consumption will be included as part of the Rent paid to the County by Lessee (Lessee will be responsible for having a separate electrical meter installed to service their equipment and Lessee will be responsible for any costs associated.)

7. Taxes: Lessee shall pay any taxes levied on Lessee's personal property

located or installed on the Tower and Property. Lessee's equipment shall remain Lessee's personal property even though it may be attached or affixed to the Tower or Property. County and Lessee agree that personal property of the Lessee shall not be considered fixtures. Lessee shall have the right, at its sole option and at its sole cost and expense, to appeal, challenge, or seek modification of any tax assessment or billing for which Lessee is wholly or partly responsible for payment.

8. Conditions Precedent: The following are conditions precedent to the

commencement and/or the continuation of this Lease:

(a) Lessee, at its own expense, shall secure appropriate licenses and approvals required for its intended use of the Tower and Property from the Federal Communications Commission, the Federal Aviation Administration and any other federal, state or local regulatory authority having jurisdiction over Lessee's proposed use of the Tower and Property. In the event that any of such applications for such approvals should be rejected or any approval issued to Lessee is cancelled, expires, lapses, or is otherwise withdrawn or terminated by governmental authority, then either the County or Lessee may

32

of 19

terminate this Lease as provided in Section 9;

(b) Lessee may, at its own expense, obtain a title report or commitment for a title policy from a title insurance company of its choice. If, in the opinion of Lessee such title report shows any defects of title or liens or encumbrances which adversely affect Lessee's use of the Tower and/or Property or its ability to obtain financing, Lessee shall have the right to terminate this Lease as provided in Section 9;

(c) Lessee may, at its own expense, have the Property surveyed and to have

structural tower studies, radio frequency engineering and other engineering analyses performed. In the event that any defects are shown by the survey or the engineering analyses, which in the opinion of Lessee may adversely affect Lessee's use of the Tower and Property, Lessee shall have the right to terminate this Lease upon written notice to the County as provided in Section 9;

(d) Lessee may, at its own expense, have an environmental assessment of the

Property performed by an environmental consulting firm of their choice. If the environmental assessment reveals that the Property is contaminated with Hazardous Materials, as that term is hereinafter defined, and Lessee, its employees, agents, or contractors did not cause such contamination, Lessee may terminate this Lease as authorized in Section 9; and

9. Termination: Upon any failure of Lessee to perform any obligation required

hereunder, and failure to cure such obligation within thirty (30) days of receipt of written notice by County or if Lessee does not have or for any reason ceases to have, in effect any license required for the operation of the equipment on the Tower, or if Lessee becomes adjudicated as bankrupt or if bankruptcy proceedings are initiated by Lessee or its creditors without a subsequent dismissal thereof within one hundred twenty (120) days, or if there is nonuse or vacation of the space covered by this Lease by Lessee for a period of sixty (60) days, the County may terminate Lessee's rights under this Lease by giving not less than thirty (30) days prior written notification by certified U.S. mail, return receipt requested, to Lessee at the address set forth in Section 15.

Lessee may terminate this Lease upon the occurrence of any of the events set

forth in Section 8, or if the site becomes undesirable due to irresolvable signal interference. To exercise its rights to terminate this Lease the Lessee must provide the County with not less than thirty (30) days prior written notice, sent to the County by certified U.S. Mail, return receipt requested, to the County's address set forth in Section 15. Such notice shall specify the reason for the termination.

Upon termination of this Lease by the County or Lessee under this section Lessee

shall pay the County all sums due as of the effective date of termination and the County shall refund to the Lessee, pro-rata, any unearned rent paid in advance. The Lessee shall fully remove its equipment and property from the Tower and Property within forty-five (45) days after the effective date of termination, or within such longer period of time as

33

of 19

may be mutually agreed upon in writing by the County and Lessee. If Lessee fails to remove its equipment and property within the required time period, the County may do so and bill the cost of its removal and storage to the Lessee, which bill shall be paid by Lessee within thirty (30) days of Lessee's receipt of the bill. The County shall not be responsible for any loss or damage to Lessee's equipment and property resulting from its removal from the County's Tower and Property or during storage. If Lessee fails to recover its equipment and property within thirty (30) days after it was placed in storage the County may sell or otherwise dispose of the same.

10. Insurance Requirements: The Lessee at all times during the term of this

Lease, including the initial term and any extended term and any hold over period, in which the Lessee continues to occupy the Tower(s) and Property(ies) covered by the Lease, that at a minimum meet the requirements of the Leelanau County Board of Commissioners’ Policy on “Insurance Requirements”, and any amendments made thereto over this Lease’s term. A copy of said Board of Commissioners’ Policy is attached to this Lease labeled Exhibit 3. The attached Exhibit 3 is incorporated by reference into this Lease and made a part thereof.

11. Environmental Compliance: The County represents and warrants to the best

of its knowledge that (i) the Property, as of the date of this Lease, is free of Hazardous Materials, including asbestos-containing materials and lead paint, and (ii) the Property has never been subject to any contamination or hazardous conditions resulting in any environmental investigation, inquiry or remediation. Lessee agrees that it will not use, generate, store or dispose of any Hazardous Material on, under, about or within the Property in violation of any law or regulation. The County acknowledges that Lessee may use a permanent emergency back-up generator at this location, lead-acid batteries and may also use a fire suppression system within a shelter solely occupied by Lessee. The use of these systems will not constitute a violation of this Section. The County and Lessee agree that each will be responsible for compliance with any and all applicable government laws, rules, statutes, regulations, codes, ordinances, or principles of common law regulating or imposing standards of liability or standards of conduct with regard to protection of the environment to worker health and safety, as may now or at any time hereafter be in effect, to the extent such apply to that party’s activity conducted in or on the Property. Subject to the warranty provision in this Section, and to the extent permitted by applicable law, Lessee shall be solely liable and agrees to indemnify and hold the County harmless for any act of negligence or intentional contamination, spill, accidental discharge, or nuisance to the leased premises caused by Lessee, or its agents, as a result of the placement, storage or disposal of any dangerous, toxic or hazardous substances on the Premises. Lessee’s responsibility for the same shall extend beyond the Term(s) of this Lease provided the contamination, spill, accidental discharge, or nuisance was caused by Lessee.

"Hazardous Material" means any material or substance that is or has the characteristic of being hazardous, toxic, ignitable, reactive or corrosive, as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. § 6901, et seq.; all corresponding and related State of Michigan and local statutes, ordinances and

34

of 19

regulations; and in any other applicable environmental law, regulation or ordinance now existing or hereinafter enacted.

The indemnification responsibilities set forth in this Section 11 specifically include, but

are not limited to, reasonable costs, expenses and fees incurred in connection with any investigation of Property conditions or any clean-up, remediation, removal or restoration work required by any governmental authority. The provisions of this Section 11 will survive the expiration or termination of this Lease.

In the event Lessee becomes aware of any hazardous materials on the Property, or

any environmental, health or safety condition or matter relating to the Property that was not brought onto the Property or caused by Lessee, that, in Lessee’s sole determination, renders the condition of the Premises or Property unsuitable for Lessee’s use, or if Lessee believes that the leasing or continued leasing of the Premises would expose Lessee to undue risks of liability to a government agency or third party, Lessee will have the right, in addition to any other rights it may have in law or in equity, to terminate this Lease upon written notice to the County.

12. Radio Frequency Exposure Safety:

(a) Lessee, represents and warrants and shall cause its employees and tower

contractors to represent and warrant, that it and they are fully aware of and knowledgeable about the inherent dangers of working on or near towers, rooftops, or other wireless communication sites that are "live", i.e., that are actively receiving and/or transmitting radio signals that may create radio frequency radiation ("RFR") hereinafter "Live Sites".

(b) Lessee shall ensure that only those Lessee employees or agents or its

contractor's employees or agents who make the representation set forth in subsection (a), and who have satisfactorily completed RFR safety training In accordance with FCC OET 65, the most current applicable updates in OSHA regulations and guidelines, and commonly recognized industry practices, may enter a Live Site or perform work on a Live Site. The County shall have no responsibility whatsoever to monitor access to the Live Site, or to monitor the performance of work on such Live Sites, by Lessee or its contractors, employees or agents or to verify training of the same.

(c) The presence at, or performance of any work on a Live Site by any of Lessee

or its contractor's employees or agents who have not made the above representations, shall constitute a breach of this Lease. In the event of such breach, the Lessee shall be liable to the County for any liability, damages, and costs incurred by the County as a result of said breach.

13. Interference:

(a) Lessee shall erect, construct, and operate its equipment and property on the

35

of 19

Tower and Property in a manner that will not cause interference to the County or any other lessees or licensees of the Tower and Property, provided that the rights or installations of such other lessees or licensees predate the installation of Lessee's property and equipment. All operations by Lessee shall be in compliance with all FCC requirements. In the event any after-installed Lessee's equipment causes such interference, and after County has notified Lessee in writing of such interference, Lessee shall immediately take all commercially reasonable steps to correct and eliminate the interference, including but not limited to, powering down such equipment and later powering up such equipment for intermittent testing only. If, despite Lessee's attempts to correct such interference, Lessee has not successfully eliminated such interference within sixty (60) days, then the County shall have the option to terminate this Lease, in which event Lessee shall, immediately upon notice of such termination, completely cease to operate its broadband internet equipment. Lessee shall thereafter remove Lessee's equipment from the Tower and equipment shelter from the Property within such reasonable period of time as shall be determined by the parties not to exceed forty-five (45) days and the County shall refund to the Lessee, pro-rata, any unearned rent paid in advance.

(b) Subsequent to the installation of Lessee's property and equipment, the County

shall not permit its other lessees or licensees to install new equipment on the Tower and Property or property contiguous thereto owned or controlled by the County if such equipment causes interference with Lessee's operations as of the date in which such new equipment is or would be installed on the Tower and Property. If such interference occurs, the County agrees to require such lessee or licensee to take all commercially reasonable steps, including but not limited to, powering down such equipment and later powering up such equipment for intermittent testing only. The County shall terminate its lease with the lessee or licensee owning or controlling the equipment causing the interference if the lessee or licensee fails to act in good faith and diligently pursue an interference cure to completion. If the interference does not cease and the County does not terminate the lease or license with the offending lessee or licensor, the Lessee may terminate this Lease.

(c) Nothing contained in this Lease shall be construed to prohibit the County from

permitting additional lessees of licenses from erecting, constructing, or operating any equipment on the Tower or Property in addition to Lessee's facilities provided that such additional equipment does not result in a breach of Section 13(b) of this Lease and or does not disturb the directional pattern of Lessee's normal signal.

14. Maintenance: The County shall, at its sole cost and expense and at all

times during the term of this Lease, keep the Tower and Property in good repair and safe condition. It is, however, expressly understood and agreed that the Lessee shall be responsible for payment of the cost of any repairs to the Tower and Property of damage thereto caused by the Lessee, its employees, contractors or agents.

36

of 19

15. Notices: All notices or demands by or from the County to Lessee or Lessee to

the County shall be in writing and mailed, postage prepaid, by certified or registered U.S. Mail, return receipt requested. Such notices or demands shall be mailed to the other party at the following address:

Lessor: LEELANAU COUNTY Leelanau County Government Center 8527 E. Government Center Dr., Suite 101 Suttons Bay, Ml 49682 Telephone: (231) 256-9711

Lessee: CHERRY CAPITAL CONNECTION, LLC P.O. Box 866 Elk Rapids, MI 49629

16. Damage to Tower: In the event the Tower is damaged, the County will, at its

cost and expense, repair, rebuild, or restore the Tower to the same condition as it was in prior to such damage; provided, however, that if the Tower is totally destroyed or damaged to the extent that it cannot be restored within forty five (45) days from the date of such damage or destruction, either the County or Lessee may terminate this Lease by giving written notice of such termination to the other. If this Lease is terminated due to damage or total destruction of the Tower, the County will refund to Lessee that proportion of any rent paid in advance by Lessee for the period subsequent to the date of such damage or destruction. If this Lease is not terminated following damage or total destruction of the Tower, the payment of rent shall cease until the Tower is restored to usable condition for Lessee's purposes.

17. Warranty of Title: The County warrants that (i) it has the full right, power, and

authority to execute this Lease; (ii) it has good and marketable fee simple title to the Property and the Easement free and clear of any liens, encumbrances or mortgages; and (iii) the Property constitutes a legal lot that may be leased without the need for any subdivision or platting approval.

18. Access to the Leased Premises: County agrees that Lessee shall have

access to the Tower and Property, upon twenty-four (24) hours' notice, at all times for the purpose of installing and maintaining the Lessee's equipment. County shall provide Lessee with County's emergency contact information, in the event that Lessee requires urgent access to the Tower. County shall furnish Lessee with necessary means of access for the purpose of ingress and egress to the Property. It is agreed, however, that only authorized engineers, employees or properly authorized contractor of Lessee or persons under their direct supervision will be permitted to enter the Property. Lessee, to the extent authorized in this Section 18, shall have access to the Tower and Property twenty-four (24) hours per day and seven (7) days per week.

19. Sick, Injured or Dead Birds: Lessee agrees to notify the County within

twenty-four (24) hours should any sick, injured, or dead bird be found on the Tower or

37

of 19

Property by the employees, contractor, or person acting as Lessee's agent.

20. Assignment: This Lease may not be subleased, sold, assigned or transferred without the prior express written consent of the County. No changes of stock ownership, partnership interest or control of Lessee or transfer upon partnership or corporate dissolution of Lessee shall constitute an assignment hereunder. Any sublease, license or assignment of this Lease that is entered into by the County or Lessee shall be subject to the provisions of this Lease.

21. Successors and Assigns: This Lease shall run with the Property

described on Exhibit 1 and shall be binding upon and inure to the benefit of the parties, their respective heirs, successors, personal representatives and assigns.

22. Indemnity: Lessee shall indemnify, defend and hold the County harmless

from and against all claims or actions for loss of life, personal injury, and/or damage to property that arise out of Lessee's use of the Leased Premises, to the extent that such loss of life, personal injury, or property damage is proximately caused, by the negligence or willful misconduct of Lessee, its officers, agents, contractors, or employees. The duties described in this Section 22 shall survive termination of this Lease.

It is expressly understood and agreed that Lessee's indemnification and hold

harmless responsibilities under this Section 22 shall not be limited by the insurance coverage obtained and/or maintained by Lessee pursuant to this Lease.

23. Miscellaneous:

(a) Entire Agreement and Amendments. This Lease constitutes the entire

agreement and understanding of the County and Lessee, and supersedes all offers, negotiations and other agreements. There are no representations or understandings of any kind not set forth herein. Any amendments to this Lease must be in writing and executed by the authorized representatives of the County and Lessee.

(b) Execution of Documents Protecting Lessee's Rights. The County agrees to

cooperate with Lessee in executing any documents necessary to protect Lessee's rights under this Lease or their use of the Tower and Property and to take any further action which Lessee may reasonably require as to affect the intent of this Lease.

(c) Applicable Law and Venue. This Lease shall be subject to and construed in

accordance with the laws of the State of Michigan. In the event of any legal or equitable actions arise regarding this Lease, such actions shall be in Michigan Courts whose jurisdiction and venue shall be established in accordance with the statutes and court rules in the State of Michigan. The venue for any action bought in or moved to a Federal Court shall be the Federal Judicial District of Michigan, Western District, Southern Division.

38

of 19

(d) Lessee's Evaluation of Tower and Property. The County shall cooperate

with Lessee's efforts to evaluate the Tower and Property and to comply with governmental regulations affecting Lessee's use of the Tower and Property.

(e) Liens. Lessee within thirty (30) days from receiving notice of filing, shall

discharge all construction or mechanics' liens filed against the Tower and/or Property because of any work done or claimed to have been done on Lessee's behalf or for any materials furnished to or claimed to have been furnished to Lessee. The bonding of such a lien by a reputable casualty or insurance company reasonably satisfactory to the County shall be deemed to be the equivalent of the discharge of any such lien. Lessee shall indemnify and hold the County harmless from any costs incurred by the County, including court costs and reasonable attorney fees, in connection with any lien described in this subsection (e).

(f) Title to Equipment and Removal of Lessee's Property upon Lease's

Termination. Title to Lessee's broadband internet equipment and equipment shelter on the County's Tower and/or Property shall be and remain vested in Lessee. Upon expiration or termination of this Lease, Lessee shall remove all of its equipment owned by it from the County-owned Towers, equipment shelters and Properties within forty-five (45) calendar days of the effective date of expiration or termination. If any damage is done to the County-owned towers, equipment shelters, or properties or that of the other lessees or licensees using the Tower/Property, as a result of the removal of Lessee’s equipment, the Lessee will be billed for the costs and expenses of repair. If Lessee’s equipment is not removed, the County shall have the right, without any liability, as authorized in Section 9, to remove, store and dispose of such equipment and property and bill the Lessee the costs and expenses the County incurred.

(g) Discrimination Prohibited. The County and Lessee shall comply with the

current Leelanau County Board of Commissioners Equal Employment Opportunity Policy which provides for equal employment opportunities to qualified persons without regard to race, creed, color, sex, age, religion, national origin, marital status, height, weight, or disability as required by law. It is further agreed, as required by law, that the County and Lessee shall not discriminate against any employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment or any matter directly or indirectly related to employment because of race, creed, color, sex, age, religion, national origin, marital status, height, weight, or disability that is unrelated to the individual's ability to perform the duties of a particular job or position. Breach of this subsection (g) shall be a material breach of this Lease.

(h) Waivers. No failure or delay on the part of either the County or Lessee in

39

of 19

exercising any right, power or privilege under this Lease shall operate as a waiver thereof, nor shall a single or partial exercise of any right, power or privilege preclude any other or further exercise of any other right, power or privilege.

(i) Severability. Whenever possible, each provision of this Lease shall be

interpreted in such manner as to be effective and valid under applicable law, but if any such provision of this Lease is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Lease; and the Parties shall negotiate in good faith to replace such prohibited or invalid provision with the intent of preserving the original business intent thereof.

j) Binding Effect. The provisions of this Lease shall be binding upon and shall

inure to the benefit of the respective heirs, representatives, successors, and assigns of the parties hereto.

(k) Counterparts. This Lease may be executed in multiple counterparts, each of

which shall be deemed an original.

24. Rights Upon Sale: Should the County, at any time during the Initial or subsequent Terms decide (i) to sell or transfer all or any part of the Property or the Tower to a purchaser other than Lessee, or (ii) to grant to a third party by easement or other legal instrument an interest in and to that portion of the Tower and or Property occupied by Lessee, or a large portion thereof, for the purpose of operating and maintaining communications facilities or the management thereof, such sale or grant of an easement or interest therein shall be under and subject to this Lease and any such purchaser or transferee shall recognize Lessee's rights herein under the terms of this Lease. To the extent that County grants to a third party by easement or other legal instrument an interest in and to that portion of the Tower and/or Property occupied by Lessee, for the purpose of operating and maintaining communications facilities or the management thereof and in conjunction therewith, a n d assigns the Lease to said third party, County shall be released from its obligations to Lessee, under this Lease, and Lessee, shall have the right to look to the third party for the full performance of the Lease. County agrees to provide Lessee prompt written notice of any such sale, grant or assignment described in this Section 24.

25. RENTAL STREAM OFFER: If at any time after the date of this Agreement, County receives a bona fide written offer from a third party seeking an assignment of the rental stream associated with this Agreement (“Rental Stream Offer”). County shall immediately furnish Lessee with a copy of the Rental Stream Offer. Lessee shall have the right within twenty (20) days after it receives such copy and representation to exceed the Rental Stream Offer. Such writing shall be in the form of a contract substantially similar to the Rental Stream Offer. If Lessee chooses not to exercise this right or fails to provide written notice to County within the twenty (20) day period, County may assign the rental stream pursuant to the Rental Stream

40

of 19

Offer, subject to terms of this Agreement.

IN WITNESS WHEREOF, The County and Lessee have executed this Tower Space Lease Agreement as of the date and year first above written.

LESSOR: The County of Leelanau, a Michigan Municipal Corporation

Witness:

Date

By: William Bunek Chairman, Board of Commissioners SS/TIN# 38-6004865 County Government Center

Witness: Date 8527 E. Government Center Dr., Suite 101 Suttons Bay, Michigan 49682 Telephone No: (231) 256-9711

Date:

LESSEE: Cherry Capital Connection, LLC

By:

Witness: Date Tim Maylone Owner/Operator P.O. Box 866 Elk Rapids, MI 49629

Witness: Date Date:

41

LPM # MI00000001230

Cell Site Name: Leland 800MHz Tower Address: 1095 S . Pit Rd. Leland, Leelanau County

Section 33, T30N, R12W

Exhibit 1

Description of Lessor's Land Central Tower

A parcel of land situated in Section 33, Township 30 North, Range 12 West Township of Leland, County of Leelanau, State of Michigan, to wit:

COM NW COR SEC 33 TH N 89 DEG 17' 45" E 525.85 FT TH S 0 DEG 36' 15" E 668.37 FTM/L TO EXISTING SURVEY LN TH S 89 DEG 00' 30" W 525.85 FT TOW LN SEC 33 TH N 0 DEG 36' 15" W 668.37 FT ALG W LN SEC 33 TO POB ALSO COM SW COR SEC 28 AS POB TH N 00 DEG 36' 15" W 160 FT TH N 89 DEG 06' 00" E 525.85 FT TH S 0 DEG 36' 15" E160 FT TH S 89 DEG 17' 45" W 525.85 FT TO POB EXC PRT LYING WLY C/L HWY TOGETHER WITH EASEMENT SECS 28 & 33 T30N R12W;

and

N ½ OF THE NE ¼ & SE ¼ OF NE ¼ SEC 32 T30N R12W.

Cell Site Name: Law Enforcement 800MHz Tower Address: 8525 E Government Center Dr, Suttons Bay, Leelanau County


Description of Lessor’s Land LEC Tower

A parcel of land situated in Section 19, Township 30 North, Range 11 West of Suttons Bay, County of Leelanau, State of Michigan, to wit: DC L563 P393 L563 P394 ALL LAND LYING N & W OF LAKE LEELANAU & SUTTONS BAY HIGHWAY IN NE ¼ OF NW ¼ OF SEC 19 ALSO ALL LAND LYING N & W OF LAKE LEELANAU & SUTTONS BAY HIGHWAY IN NW ¼ OF NE ¼ SEC 19 T30N R11W 46 A.

42

LPM # MI00000001230 Cell Site Name: Leland 800MHz Tower

Address: 1095S. Pit Rd, Leland, Leelanau County Section 33, T30N. R12W

Exhibit 2

LESSEE'S WIRELESS TRANSMISSION EQUIPMENT – CENTRAL TOWER (2) 12” square IT lite antennas (2) 12” square TMAs (1) 18” square panel antenna w/amp (1) PAO913 antenna The transmission lines will be attached to the existing waveguide ladder with Microflect cushions and the associated mounting hardware. Only the equipment identified above will be installed on the tower between 120’ and 130’ in height, providing the equipment does not compromise the integrity of the tower by the determination of a structural engineer or tower consultant. LESSEE’S EQUIPMENT may be located in the County shelter building.

Cell Site Name: Law Enforcement 800MHz Tower Address: 8525 E Government Center Dr, Suttons Bay, Leelanau County


LESSEE’S WIRELESS TRANSMISSION EQUIPMENT – LEC TOWER

(2) 12” square IT lite antennas The transmission lines will be attached to the existing waveguide ladder with Microflect cushions and the associated mounting hardware. Only the equipment identified above will be installed on the tower between 120’ and 130’ in height, providing the equipment does not compromise the integrity of the tower by the determination of a structural engineer or tower consultant.

Cell Site Name: Law Enforcement 800MHz Tower

43

Address: 8525 E Government Center Dr, Suttons Bay, Leelanau County Section 19, T30N, R11W

Exhibit 2 – Continued

44

LPM # M100000001230 Cell Site Name: Leland 800MHz Tower

Address: 1095 S. Pit Rd, Leland, Leelanau County Section 33, T30N, R12W

Exhibit 2 – Continued

--= Approximate location of Lessee's Equipment Shelter (not to scale)

45

Exhibit 3

LEELANAU COUNTY

BOARD POLICY

APPLIES TO: All Leelanau County Employees and Elected Officials.

PURPOSE: The Leelanau County Board of Commissioners hereby establishes a policy on

insurance requirements for contractors, vendors, individuals, and/or organizations receiving monies from Leelanau County. The purpose of these requirements is to assure that the parties referenced above are accepting appropriate responsibility for insuring their own operations, and that they are not unduly exposing Leelanau County taxpayers to liability and/or loss.

The Contractor, and any and all of their subcontractors, shall not commence any work until they have met the insurance requirements outlined in this policy. All coverage shall be with insurance companies licensed and admitted to do business in the State of Michigan. All coverages shall be with insurance carriers acceptable to Leelanau County and have a minimum A.M. Best Company (www.ambest.com) Insurance Report rating of not less than A or A- (Excellent).

1. Workers’ Compensation Insurance: The Contractor shall procure and maintain during the life of the contract, Workers’ Compensation Insurance, including Employers’ Liability Coverage, in accordance with all applicable statutes of the State of Michigan. Workers’ Compensation and Employers’ Liability Insurance are required if the party hires one or more persons or currently has employees. If a party currently does not have any employees, and is a sole proprietor, an affidavit must be filed with the County Clerk stating that the party currently has no employees and will not hire any while working for Leelanau County as a contractor or a subcontractor, etc. If a party currently does not have any employees and is incorporated (Inc.) or a limited liability corporation (LLC), they must file a Notice of Exclusion, WC-337, with the State of Michigan and then provide a copy of the State-approved document to the County Clerk.

2. Contractor’s Tools & Equipment: The Contractor shall be responsible for insuring all its tools, equipment and materials which it may leave at the Project’s work site. The County shall not be responsible for any loss or damage to the Contractor’s tools, equipment and materials.

GENERAL SUBJECT: Administration/General Policy No. 13 (County Administrator)

SPECIFIC SUBJECT: Insurance Requirements Policy Adopted: 04/17/1990 Revised: 02/15/1994 Revised: 05/21/2013 Revised: 12/19/2017

46

http://www.ambest.com/

3. Professional Liability (Errors and Omissions) Insurance: [For contracts for professional services, e.g., Architect, Engineers, Doctors, Dentist, etc.] The Contractor shall possess Professional Liability Insurance (errors and omissions) with limits of not less than $1,000,000.00 per occurrence or claim. If the Professional Liability Insurance is on a claims-made basis, the Contractor shall purchase extended reporting period “tail” coverage for a minimum of three (3) years after termination of the Agreement.

4. Commercial General Liability Insurance: The Contractor shall procure and maintain

during the life of their contract, Commercial General Liability Insurance on an “Occurrence Basis” with limits of liability not less than $1,000,000.00 per occurrence and aggregate combined single limit, Personal Injury, Bodily Injury, and Property Damage. Coverage shall include the following extensions: (A) Contractual Liability; (B) Products and Completed Operations; (C) Independent Contractors Coverage; (D) Broad Form General Liability Extensions or equivalent; (E) Deletion of all Explosion, Collapse, and Underground (XCU) Exclusions, if applicable.

5. Motor Vehicle Liability: The Contractor shall procure and maintain during the life of their

contract Motor Vehicle Liability Insurance, including Michigan No-Fault Coverage, with limits of liability not less than $1,000,000.00 per occurrence combined single limit, Bodily Injury, and Property Damage. Coverage shall include all owned vehicles, all non- owned vehicles, and all hired vehicles.

6. Deductibles: The Contractor shall be responsible for paying all deductibles in its

insurance coverages. 7. Additional Insured: Commercial General Liability and Motor Vehicle Liability Insurance,

as described above, shall include an endorsement stating that the following shall be Additional Insureds: Leelanau County, all elected and appointed officials, all employees and volunteers, all boards, commissions, and/or authorities and board members, including employees and volunteers thereof. The Contractor’s insurance coverages shall be primary to the Additional Insureds and not contributing with any other insurance or similar protection available to the Additional Insureds, regardless of whether said other available coverage be primary, contributing or excess.

8. Cancellation Notice: Workers’ Compensation Insurance, Commercial General Liability

Insurance, and Motor Vehicle Liability Insurance, as described above, shall include an endorsement stating the following: “It is understood and agreed that Thirty (30) days Advance Written Notice of Cancellation, Non-Renewal, Reduction, and/or Material Change shall be sent to the office of the Leelanau County Administrator.

47

9. Owners’ and Contractors’ Protective Liability: [For Contracts for Construction or Large Repair or Maintenance Projects such as road work, sewer work or building projects] The Contractor shall procure and maintain during the life of the contract, a separate Owners’ and Contractors’ Protective Liability Policy with limits of liability not less than $1,000,000.00 per occurrence and aggregate combined single limit, Personal Injury, Bodily Injury, and Property Damage. Leelanau County shall be “Named Insured” on said coverage. Thirty (30) day Notice of Cancellation shall apply to this policy.

10. Proof of Insurance Coverage: The Contractor shall provide Leelanau County at the

time that the contracts are returned by him/her for execution, A “Certificate of Liability Insurance,” on Accord Form #25, with the necessary coverages included, as listed below:

a. Certificate of Insurance for Workers’ Compensation Insurance; b. Certificate of Insurance for Commercial General Liability Insurance; c. Certificate of Insurance for Vehicle Liability Insurance; d. Certificate of Insurance for Professional Liability Insurance on Projects where

such insurance is required. e. Original Policy, or original Binder pending issuance of policy, for Owners’ &

Contractors’ Protective Liability Insurance, where such insurance is required. f. If so requested, Certified Copies of all policies mentioned above will be

furnished.

11. If any of the above coverages expire during the term of the contract, the Contractor shall deliver renewal certificates and/or policies to the Leelanau County Administrator at least ten (10) days prior to the expiration date.

Failure to comply with these insurance requirements could result in the termination of a contract or delay in receipt of funds. Questions regarding the scope of applicability of this policy may be directed to the Leelanau County Administrator.

48


Department:

Contact Person:____________________________

Telephone No.: ____________________________


Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________





Submittal Dates

Executive Board: ____________________

Regular Session: ____________________



Emergency Management

Matt Ansorge

(231) 256-8775

■06/12/2018

■06/19/2018

■ Bid

Radio North

2682 Garfield Rd N, TC, MI

(231) 929-2934

$ 387,920.34 $ 124,932.00

■ Capital Purchase

■

As part of the ongoing tower enhancement program, a recommendation is being madeto approve the proposal from Radio North to enhance the 800MHz radio system at theOmena and Northport Tower sites. Equipment identified in the proposal will allow boththe Omena and Nothport tower sites to operate at the same radio output capacity as anMPSCS Tower site. These enhancements will improve the coverage area for mobileradios, portable radios, and pagers at a fraction of the cost required for one full MPSCSsite.

This proposal was endorsed by the 9-1-1 Advisory Committee (minutes are in packet)and no General Fund dollars are being requested, as payment will be made from therestricted Communications Tower Fund.

I recommend to approve the proposal from Radio North to enhance the 800MHzradio System at the Omena and Northport Tower sites in an amount not to exceed$124,932.00, with funds to be transferred from Fund #518, Communications TowerFund.

Digitally signed by Matt Ansorge Date: 2018.06.05 13:49:31 -04'00' 06/05/2018 49

Communications Tower Fund Review

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

$450,000.00

2014 2015 2016 2017 2018

Fund Balance

Revenue

Cash

50

LEELANAU COUNTY OFFICE OF EMERGENCY MANAGEMENT/9-1-1 8525 E. Government Center Dr., Suttons Bay, MI 49682 Phone: (231) 256-8775

9-1-1 Advisory Board Meeting Minutes

Thursday May 31, 2018 Emergency Operations Center (EOC)

Members Present: Dan Besson (911 Chair) Matt Ansorge (911 Secretary; EM/911 Director) Steve Morgan (Leelanau County Sheriff’s Office) Kelly LaCross (EM/911 Deputy Director) Bert Richards (MSP) Keith Tampa (Elmwood Twp. Fire Chief) Dan Petroskey (Member at Large) Hugh Cook (Leelanau Twp Fire & Rescue) Max Machuta (Radio North) Chet Janik (Leelanau County Administrator) Members Absent/Excused: Mike Borkovich (Sheriff) Will Bunek (Chair, Board of Commissioners) Anthony Forton (North Flight EMS) Ron Plamondon (911 Vice Chair; IT Director) Phil Akers (NPS Chief Ranger) Dan Wagner (Road Commission) Dave Crockett (Tribal Police) Others Present: None Meeting called to order at 8:07am. Motion by Hugh Cook, supported by Keith Tampa, to approve the 9-1-1 Advisory Board meeting minutes from Thursday, April 26, 2018. ALL AYES MOTION CARRIED Motion by, Steve Morgan, supported by Chet Janik, to approve the agenda. ALL AYES MOTION CARRIED Update on the System:

1. Central Tower Site: AT&T and Verizon equipment upgrades are moving forward. Guy-wire replacement is completed and a structural analysis is getting started.

2. Maple City Tower Site: No discussion. 3. Omena Tower Site: Testing continues for Leelanau Twp. Fire and Rescue. 4. Peshawbestown Tower Site: No discussion 5. Empire Tower Site: No discussion 6. Northport Tower Site: No discussion 7. Law Enforcement Tower Site: No discussion 8. MPSCS Tower Site: GT Fire reports increased reception improvement since the

tower top amplifier has been brought on-line. No improvement has been reported in Leelanau County.

Committee Reports:

51

Fire Services: Chief Tampa inquired about radio patches for mutual aid requests. Matt Ansorge stated that the County you are responding to will conduct the radio patches. Additionally, other channels available for use would need to be discussed with the dispatch center handling the incident.

EMS: N/R

Michigan State Police: MSP is currently working through some manning issues. At this time, Leelanau County is in good shape and it doesn’t appear that this will change in the near future.

North Flight: N/R Road Commission: Improvements to signage upcoming at the M-72 and Plowman Rd

intersection. Property owners also approved installing rumble strips on Plowman on both sides of M-72. An emergency culvert replacement was done on S Shore Dr in Suttons Bay, work was more complicated than expected, but it is now complete. Summer maintenance work will begin soon, seal coating and patching will be done by Elmer’s and road painting will also begin in June. The 2018 project list is available on their website. They are still looking for some more good help. GTB fiber project is going well. Also, law enforcement should be aware that some contracting companies are blocking roadways inappropriately without advanced signage. It would be appreciated for them to be ticketed.

Sheriff’s Office: Undersheriff Morgan reported they are getting very busy. They are

currently investigating someone shooting at patrol vehicles with a BB or pellet gun. Undersheriff Morgan reminded everyone about the Jun 6 training exercise and inquired about LEIN radio channel access for GTB Police. Mat Ansorge stated that he has provided GTB Police with a modified template but they will need State personnel to set-up.

National Park Service: N/R GTB Public Safety: N/R

Director/Consultant Report: Upgrade Project Update: The upgrade project continues to remain on track. Leelanau Twp. Fire and Rescue continues to have reception difficulties with communication and paging. Fire and Rescue along with Emergency Management met with Tele-Rad and Radio North on May 29, 2018 in an effort to enhance reception capability. Tele-Rad was unable to deliver any viable solutions whereas Radio North was able to correct or provide solutions for 50% of issues within one day of receiving discrepancies on the system. Currently, Leelanau County is awaiting a bid from Radio North to enhance the 800MHz system at the Omena and Northport tower sites. The proposal will include:

- Reprogramming pagers and testing operational attributes during the change. - Installing 2 additional radios in ambulances for proper system monitoring.

52

- Reconfiguring and modifying Department paging/intercom and system monitoring.

- Implement a system repeater at the Omena Tower site to increase portable and paging operation.

The upgrade project is still under budget but the Board of Commissioners will need to approve changes. These changes will not cause an increase in funding, just a redistribution of funds. Additionally, these improvements will bring the tower to the same level as a State Tower (without being on the State System) with significantly less cost. At this point, a motion was called for to approve changes. Motion by Dan Besson, supported by Hugh Cook, for the 9-1-1 Advisory Board to endorse the proposal by Radio North to enhance the 800MHz radio towers in Leelanau Twp.

ALL AYES MOTION CARRIED

NG911 is on track. Access has been granted to all Dispatch personnel for a training website to get familiar with new call software. Hands on training will be conducted on June 25 and 26, 2018 and Dispatch will go live with new software on June 27, 2018. Training personnel will be on hand June 27 and 28, 2018 for any issues that may arise.

Dispatch candidate pool interviews were held on April 27, 2018 with a clear front runner. The candidate has been shadowing in Dispatch for the last couple of weeks and has been making a great impression with all personnel.

The 800MHz radio maintenance contract with Motorola is due to expire in

September 2018 with comprehensive coverage for the next four years. The comprehensive coverage does not include the maintenance provider’s time or mileage. The current provider, TeleRad, has not been providing satisfactory performance based on the 800MHz issues we have been experiencing in Leelanau Twp. Radio North has been providing great service in a timely manner. Emergency Management will be receiving bids from both TeleRad and Radio North in the near future and the advisory board will be asked to provide a motion on which contract to approve.

Committee Discussion Topics:

- Retired Leland Fire Chief Rick Royston’s son Eric Royston (Leelanau Montessori Head of School) is currently battling Stage 4 pancreatic cancer. There will be a benefit event on June 23, 2018 from 2pm – 6pm @ the Lake Leelanau VFW. Chief Besson asked that you keep them in your thoughts.

Meeting Adjourned: Hugh Cook, supported by Dan Besson, to adjourn the 9-1-1 Advisory Board meeting at 8:58am. ALL AYES MOTION CARRIED

53

Traverse City, Cadillac, Lake City, Manistee, Petoskey

Proposal of Insurance

Prepared for

Leelanau County

Presented by

Dennis Muth - July 2018

69

Workers Compensation / Employers Liability Insurance Company: Accident Fund Insurance Co. Proposed policy period: 07/01/18 to 07/01/19

Coverage Detail

Limits Description $1,000,000 Employers Liability: Each Accident $1,000,000 Employers Liability: Disease – Policy Limit $1,000,000 Employers Liability: Disease – Each Employee

Included Workers Compensation: Statutory Benefit

Locations & Classifications State

Code Classification Renewal Payroll

MI

7720

Police Officers

$2,759,563

MI

8810

Clerical

$2,300,684

MI

8820

Attorneys

$373,333

MI

8831

Veterinary Hospital

$0

MI

8835

Public Health Nursing

$0

MI

8868

College Professional

$0

MI

9015

Janitorial Operation

$121,966

MI

9058

Food Service Operation

$0

MI

9102

Parks

$30,560

MI

9410

Municipal Employees

$786,875

Experience Modification Factor .66 (was .66)

Premium Summary / Comparison

Coverage Proposed Premium Workers Compensation $49,897

DISCLAIMER – The abbreviated outlines of coverage’s used throughout this proposal are not intended to express any legal opinion as to the nature of coverage. They are only visuals to a basic understanding of coverages. Please read your policy for specific details of coverages.

70


Department:

Contact Person:____________________________

Telephone No.: ____________________________


Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________





Submittal Dates

Executive Board: ____________________

Regular Session: ____________________



Select one

Joseph Povolo 6/12/2018

231-256-9803

■

■6/19/2018

Select One

Board/Committee Recommendation

This is the Annual Plan and Budget for the Child Care Fund for fiscal year 10-1-2018through 9-30-2019. It is prepared in accordance with the State Child Care FundMonitoring Unit Rules. This document describes and includes potential programs andservices that may fall under the Foster Care, Institutional Care, In-Home Supervisionand Basic Grant Components and anticipated costs. This plan must be approved andsigned by the Family Court Judge, Board of Commissioners Chairperson, and Directorof MDHHS. All original signature pages must be sent electronically through MiSACWISto MDHHS by 8-15-2018.

Approval of this plan commits the state to reimbursement of 50% of approved ChildCare Fund expenditures. If costs exceed the approved budget, it will fall on the countyto fund 100% of the costs. Therefore, just because we budget the amount, doesn'tmean we will spend it, but it helps to insure the county will only be responsible for 50%instead of 100%. History of the amount spent from CCF APB is significantly less thanwhat has been budgeted.

Motion to recommend approval of the Child Care Fund Annual Plan and Budget for Leelanau County, Fiscal Year October 1, 2018, through September 30, 2019, in the amount of $675,000.00.

Joseph Povolo Digitally signed by Joseph Povolo Date: 2017.06.12 14:20:25 -04'00' 6/12/2018 74


Department:

Contact Person:____________________________

Telephone No.: ____________________________


Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________





Submittal Dates

Executive Board: ____________________

Regular Session: ____________________


Request to Waive Board Policy on Bid Requirements

_______________ ______________________ ___________


Planning/Comm. Development

Trudy Galla, Director 6/12/18

231-256-9812

■

■ 6/19/18

Select One

Professional Service ■ Agreement

Attached please find a new Agreement between Leelanau County and the Village ofEmpire for a County Recycling Program Recycling Site, with a term expiring12/31/2023. This document was prepared by Corporate Counsel, and has been signedby the Village of Empire. After the County Board approves it, one (1) original will besent back to the Village for its records.

Motion to approve the Agreement between Leelanau County and the Village ofEmpire for a County Recycling Program Recycling Site, for a term through December31, 2023, and to authorize signature by the Board Chairman.

6/4/2018 75


Department:

Contact Person:____________________________

Telephone No.: ____________________________


Bid

Other: ____________________________

VENDOR: _____________________________

Address: _____________________________

Phone:_______________________________





Submittal Dates

Executive Board: ____________________

Regular Session: ____________________



__________________ ________________________


Planning/Comm. Development

Trudy Galla, Director 6/12/18

231-256-9812

■

■ 6/19/18

Select One

Professional Service ■ Agreement

Attached please find a new Agreement between Leelanau County and Glen LakeSchool for a County Recycling Program Recycling Site, with a term expiring12/31/2023.This document was prepared by Corporate Counsel, and has been signed by theschool. After the Board approves it, one (1) original will be sent back to the school forits records.

Motion to approve the Agreement between Leelanau County and Glen Lake Schoolfor a County Recycling Program Recycling Site, for a term through December 31,2023, and to authorize signature by the Board Chairman.

6/4/2018 79

Chet Janik, County Administrator

Leelanau County Government Center 8527 E. Government Center Drive, Suite #101

Suttons Bay, Michigan 49682 (231) 256-9711 (866) 256-9711 toll free

(231) 256-0120 fax leelanau.cc [email protected]

BOARD OF COMMISSIONERS Tony Ansorge, District #1

Debra L. Rushton, District #2 William J. Bunek, District #3

Ty Wessell, District #4 Patricia Soutas-Little, District #5

Casey Noonan, District #6 Melinda C. Lautner, District #7

MEMORANDUM

TO: Elected Officials Department Heads Other Leelanau County Funded Entities FROM: Chet Janik, County Administrator SUBJECT: 2019 Budget Process DATE: June 18, 2018 The 2019 Budget Process is officially beginning. Enclosed you will find a 2019 budget packet, along with a Proposed Budget Preparation Schedule, for your reference. Based on a review of the County’s current economic situation, I am recommending that each department or funded entity continue to anticipate flat revenues and budget as close as possible to approved 2018 budget levels. When reviewing your packet, please note that the 2018 Adopted Budget amount has been carried over to the 2019 Proposed Budget column. You are required to only insert updated budget figures under the 2019 Exceptions column for only those budget lines that you are updating. Also, the enclosed Staffing Levels document reflects the positions your department currently has, less wages and fringe benefits. Please review these positions for accuracy and report any discrepancies. Remember not to enter dollar amounts for the Wage and Benefit expense accounts (703, 706, 717, 718, 719, 720 and 722), the 941 Computer Charges, 850 Telephone Charges, 943 Maintenance (Building and Grounds), or the 954 Workers Compensation expense accounts. These amounts will be compiled after you submit your initial budget request and you will be provided with a budget reflecting these costs. Your 2019 Budget Narrative should provide a brief overview of your department operations, any mandated or legally contracted services you wish to identify, and any planned or anticipated activities for 2019. This year we have included specific forms that you should list the following requests on individually for the ease of providing Commissioner information: Contractual Services; Capital Outlay; Travel, Education; Memberships, Dues and Fees; and Subscriptions. If you would like the form emailed

86

2

to you to complete and then you can print it out, please let Jen or Michelle know. In additional you are free to include the information in your narrative as well. All supporting documentation will be provided to the Board of Commissioners for consideration during the budget process. Any requests without supporting documentation may not be considered. Draft budgets are due by 4 p.m. on Friday, June 29, 2018. Please note that 2019 Revenue Projections will be compiled concurrently with the draft budget; therefore, it is very important to provide your department’s revenue projections and expenditures by the submission deadline to the County Clerk’s Office. As the budget process begins to unfold, I anticipate your attendance in budget workshops to answer questions and provide information to the Board of Commissioners concerning your departmental operations and budget requests. If you have additional questions, please contact the County Clerk, the County Treasurer, or me. I look forward to working with you on the 2019 budget process. Thank you. Attachments Copy: Board of Commissioners

87

LEELANAU COUNTY BOARD OF COMMISSIONERS FY 2019 – Proposed Budget Preparation Schedule

2018 Dates Action

June 18 Budget forms, instructions, and guidelines distributed to departments.

June 29 Department 2019 budget submission to Chief Deputy County Clerk – 4:00 p.m. deadline.

July 9-13

1. Budget review; Administrator, Clerk, Treasurer, and Chief Deputy County Clerk.

2. 2019 Preliminary Revenue Projection prepared by Treasurer and shared with Administrator, Clerk, and Chief County Deputy Clerk.

July 16-20 1. Administrator, Clerk, Treasurer, and Chief Deputy County

Clerk meet to complete budget proposal. 2. Forward to Department Heads.

July 24 (Suggested)

Prepared budget presented to the Board of Commissioners by Administrator w/full Board budget work session, 9:00 a.m. C

August 13 (Suggested)

Revised budget to Board of Commissioners for further consideration w/full Board budget work session, immediately following the Executive Board of Commissioners Meeting.

C

August 14 – September 19

Administrator, Clerk, and Treasurer meet to review budget based on Board of Commissioners’ action. Additional Board of Commissioners review to be scheduled, if necessary.

September 20 (Suggested)

Finalized budget sent to the Board of Commissioners for review prior to October 2, 2018, Executive Board meeting.

October 2 Final budget proposal to Executive Board for action. C

October 9 Annual Meeting. Budget approved. Appropriations Act approved. Public Hearing at 7:00 pm

C

C = commissioner attendance.

Notice of Public Hearing to the Enterprise by Noon on September 14, 2018, for publication on September 27, 2018; budget available for the public on Monday, October 1, 2018.

88

LEELANAU COUNTY 2019 BUDGET RULES (DRAFT) 1. Department heads and/or elected officials are responsible for assuring that expenditures do not

exceed approved budget(s) for their respective departments, and may authorize expenditures up to $2,000.00 per item. Payment for all expenditures, however, is subject to approval by the Board of Commissioners through the regular monthly claims payment process.

2. Capital purchases in excess of $5,000.00 shall be tagged and added to the county’s fixed asset

inventory. The department head and/or elected official are responsible for this requirement to occur after coordination of payment by the accounting department.

3. The County Administrator, on behalf of all departments, is responsible for procuring all capital

items and/or service contracts in excess of $5,000.00 according to county purchasing procedures and subject to proper advertising with all bids to be awarded by the Board of Commissioners at a regularly scheduled meeting.

4. The Chief Administrative Officer (County Administrator) together with the County Clerk shall

jointly be responsible for assuring that any transfer or expenditure in excess of an approved departmental budget is made only after approval of the Board of Commissioners and that all transfers or expenditures are charged to an approved departmental budget.

5. The Chief Administrative Officer (County Administrator) together with the County Clerk shall

jointly be responsible for assuring departmental budgets are charged for salaries and wages in accordance with the adopted Authorized Staffing Levels for their respective budgets.

6. The approved Authorized Staffing Level contained in the budget shall limit the number of

employees who can be employed and no funds are appropriated for any position or employee not on the Authorized Staffing Level. Further, the Board of Commissioners expressly prohibits department heads from utilizing personal service contracts to circumvent the intent of the Board of Commissioners in its action establishing Authorized Staffing Levels. The Board of Commissioners must specifically approve any deviations.

7. Certain positions contained in the Authorized Staffing Level which are supported in some part by

a grant, cost-sharing, or other source of outside funding, are only approved contingent upon the county receiving the anticipated revenues. In the event outside funding is not received, or the county is notified that funding will not be received, then said positions shall be considered not funded and removed from the Authorized Staffing Level.

8. The County Clerk shall be responsible for assuring that allotments to other agencies in excess of

25% of the approved annual budget in any calendar quarter are made only after the County Board of Commissioners has approved them.

89

Leelanau County Board of Commissioners – 2019 Budget Rules, DRAFT

Page 2 of 4

9. The County Clerk shall prepare and submit a monthly Budget Transfer and Expenditure Control Report to the Board of Commissioners prior to the regular monthly board meeting. The Clerk shall prepare the appropriate paperwork and submit it to the Board of Commissioners prior to the regular monthly board meeting. This report shall be in a format as prescribed by the Board of Commissioners and shall be reconciled to the County Treasurer’s monthly Trial Balance.

10. Any budget amendments or transfers of funds shall only occur after written recommendation of the

Executive Committee and after being approved by the Board of Commissioners, by resolution. 11. Pursuant to county policy, vendors who enter into a service contract with the county shall furnish

a certificate of insurance, unless waived, in acceptable form as determined by the Board of Commissioners and file the certificate with the County Clerk prior to the commencement of any work or delivery of service or product.

12. All invoices, travel vouchers and payment requests must be submitted to the accounting office for

processing of payment on a timely basis, within the quarter the request was made. 13. All mileage for county owned vehicles will be charged to the account 940 Rental Charges in each

respective budget using county owned vehicles. The Motor Pool Fund 661 will be credited with the mileage charges for county owned vehicles. Any purchases of county owned vehicles would be charged to the Motor Pool Fund 661. All repair and maintenance charges on county owned vehicles shall be charged to the respective budgets using county owned vehicles.

14. All capital items and professional services over $5,000.00 shall require the solicitation of

competitive written sealed bids. A minimum of three bids is encouraged. State bids may be utilized when applicable.

15. The County Administrator may authorize expenditures up to $5,000.00 for unexpected items or

services when according to the department head, the item or service requested can be paid from the department’s approved budget. The Board of Commissioners through the regular monthly committee process will review all claims for potential payment.

16. All donations received in excess of $500.00 on behalf of Leelanau County shall be approved by the

Board of Commissioners. The County Administrator shall provide monthly written reports outlining all donations received. a) Any non-cash donations, tangible goods and/or mercantile with an approximate value of over

$250.00 donated to Leelanau County shall be approved by the Board of Commissioners prior to acceptance.

90


Page 3 of 4

b) Any proactive fundraising effort, as well as fundraising activity administrated through an external organization or vendor, must have prior Board approval, a stated end date and a specific restricted goal. If there is an associated administrative fee associated with the fundraising method, there must also be Board approval of the fee. If an external organization or vendor is utilized, proper controls over the account must be established by the Leelanau County Treasurer and Leelanau County Clerk. When cumulative funds are received and exceed $500.00, they will be transferred from Trust and Agency to a special fund and held pursuant to Board Policy and Budget Rules. Once a special fund is created for the stated purpose, transfers may be for lesser amounts.

17. Per diem rates will be as follows:

$70.00/ Full Day $40.00/One Half Day

18. The Board of Commissioners shall pay claims made against Leelanau County once per month after

approval. Payments for post audit claims shall be authorized only under the following circumstances, for items within the approved budget:

a) Implementation of any and all provisions of collective bargaining agreements and other

compensation plans adopted by the Board of Commissioners including payroll, related county and employee taxes, and withholding payments.

b) Payment of premiums on insurance policies and self-insurance pool fees including, but not

limited to, health insurance, life insurance, dental insurance, unemployment insurance and others.

c) Payments provided for within the provisions of any and all contracts and grants authorized by

and approved by the Board of Commissioners or County Administrator under Item 15.

d) Replenishment of imprested funds within the various departments to the extent provided in departmental budgets.

e) Postage to the extent provided in departmental budgets.

f) Jury, witness and attorney fees by order of the Circuit Court, District Court and Probate Court.

g) Any invoices providing for a discount if paid within a specified period provided such invoices

shall not be paid in such time period will allow consideration by the Board of Commissioners without loss of discount and, further, provided that they have been budgeted in the departmental budget. Additionally, any invoices not paid within a specified period, will be assessed a late payment penalty provided that they have been budgeted in the departmental budget.

h) Any and all fuel charges.

91


Page 4 of 4

i) Any and all utility billings.

j) Travel advances, registration, and mileage reimbursement to the extent provided in departmental budgets.

k) Department of Health and Human Services (formerly known as Family Independence Agency)

payments.

l) State of Michigan payments.

m) Any emergency claim as authorized by the County Administrator requiring payment prior to the next Board of Commissioners meeting.

n) Any other payments prescribed by law.

o) Refunds.

92

Chet Janik, County Administrator

Leelanau County Government Center 8527 E. Government Center Drive, Suite #101

Suttons Bay, Michigan 49682 (231) 256-9711 (866) 256-9711 toll free

(231) 256-0120 fax leelanau.cc [email protected]

BOARD OF COMMISSIONERS Tony Ansorge, District #1

Debra L. Rushton, District #2 William J. Bunek, District #3

Ty Wessell, District #4 Patricia Soutas-Little, District #5

Casey Noonan, District #6 Melinda C. Lautner, District #7

To: Board of Commissioners

From: Chet Janik

Date: January 5, 2018

Re: 2018 Potential Board Goals Let me start by complimenting Commissioners on their 2017 goals. It was an ambitious list but substantial progress was made and based on the discussion that took place at the Board’s Organizational Board meeting on Tuesday concerning potential goals for 2018, below is my first draft attempt at capturing the suggestions that were made for potential 2018 goals. FINANCIAL

• Continue to service the debt with MERS until the County reaches its full capacity funding. At year-end, potentially allocate more dollars above the budgeted amount upon review of budget.

• Continue to monitor the County Law Enforcement Center’s bond obligation and

potentially implement a long-term financial plan to eliminate that obligation in 2021, when the bond terms allow for an early pay-off.

• Review the Capital Improvement Plan (CIP) for all County capitalized assets, and begin to

set aside asset replacement funds for those assets during the budget process.

• Develop options related to the Government Center heating/cooling system. HOUSING

• Continue the work of the Housing Action Committee and work towards the action goals outlined in the report presented to the County Commission on December 12, 2017.

93

2018 Goals – Approved 1/16/18 Page 2 of 2

SUBSTANCE ABUSE

• Address the drug and alcohol abuse issues that impact the County by collaborating with representatives from local law enforcement, the Prosecutor’s Office, K-12 school districts, the Benzie/Leelanau District Health Department, the medical community, and other stakeholders. Formally establish the Leelanau County Substance Abuse Coalition, charged with the responsibility to develop a Leelanau County Plan, and host an inaugural “Substance Abuse Summit” and for education, prevention, and intervention. Subgroups would include:

o Law Enforcement o Prevention and Awareness o Medical community o Treatment and Recovery o Education/Affected Families

DEPARTMENTS

• Review the Senior Services’ budget, programs, and services and then finalize a Senior Services millage proposal for the 2018 August primary election that meets the needs of the older residents and the tax-paying public.

• Complete the independent external analysis of the Construction Codes Office to

determine if the fees, enforcement policies and personnel structure is comparable to other counties in Northern Michigan.

• Evaluate County tower sites to ensure optimal radio reception and transmission for

Emergency Services Communications. Perform routine assessments to confirm adequate tower communication operations. Research enhancements, if necessary.

BROADBAND

• In collaboration with the Leelanau Peninsula Economic Foundation (LPEF), the

townships, Connect Michigan and internet providers, the County Commission and the Information Technology Department will continue to support and assist the LIFT (Leelanau Internet Futures Team) committee in the implementation of the Broadband action plan for service expansion to Leelanau residents developed in 2017.

94

InvisibleLeelanau–May2018Poverty in Paradise: On the shores of two Great Lakes, two Michigans are pulling away from one another. For one, graceful summer homes rise on waterfronts, equipped with boats, tubes and toys. For the other, life is lived in trailers on back roads, or small houses tucked into the woods. One comes north in May and enjoys a summer of festivals, fun and restaurant dining. The other Michigan lives here year-round and waits tables or changes hotel beds. One is, like the state at large, recovering from the recession and building wealth. The other slips deeper into, or closer to, poverty. (Bridge Magazine, 2015)

1. 2954 Leelanau County residents are currently on a Department of Human Services (DHS)

caseload. [Family Independence Program, Food Assistance Program, State Disability Assistance Program, Child Development & Care, Medicaid Eligible, Healthy Michigan] (2018 DHS Green Book)

2. 14.6 % of children under age 18 in Leelanau County are living below the poverty level. 38.4% of single parent families in the County are living in poverty. 8.7% (1893) of the total population is living in poverty. (Spotlight on Your County, Michigan League for Public Policy, 2018)

3. 138 County students have been identified to participate in the Leelanau Christian

Neighbors’ Blessings-in-a Backpack Program by schools in order to avoid going hungry on weekends.

4. 213 (35.6%) Leelanau children are living in homes where less than 70% of the court-

ordered child support is received. 54 children are living in homes where none of the child support is received.

5. 726 (35.0%) Leelanau County students qualify for free/reduced school lunch and families

struggle to access health care, housing, heat, transportation, childcare, clothing and food.1 (MLive 3/18)

6. Michigan has one of the highest costs for infant care, with an average annual cost of

$9,882. For a four-year old, the annual cost is $6,764.2 Quality childcare/preschool is unavailable to the large number of families caught in the middle between those qualifying for federal/state programs and being able to pay the high cost of quality care. (2017 KIDS COUNT Report & The Economic Policy Institute, 2016)

136.6% of Leland’s 511 students, 70.3% of Northport’s 145 students, 55.1% of Sutton’s Bay’s 552 students and 29.04% of Glen Lake's 669 students qualified for subsidized lunch in 2017-2018. 2 Nearly half of the median income for a single mother. A typical family in Michigan would have to spend 27.8 percent of their income on childcare for an infant and a 4-year old. Infant care for one child would take up 16.5% of a typical family’s income.

95

7. 20% (1846) residents of Leelanau County homes have been identified as ‘ALICE households/’ (Asset Limited, Income Constrained, Employed but earning less than the basic cost of leaving for County households.) [United Way ALICE Report, 2017-18]

8. Our county’s schools, like the rest of the schools in the region/state/nation, continue to

experience significant achievement gaps for low-income students and face the challenges associated with lack of preparation/readiness for school. [Approximately 52% of our Region’s third grade students did not test ‘proficient’ on the Michigan English Language Arts M-STEP test and approximately 50% did not test ‘proficient’ on the State Math test. (Traverse City Record Eagle, August, 30, 2017) 3

9. Based on 2015-2016 statistics, the percent of students experiencing homelessness

(instability with consistent housing) was as follows: Northport 13%, Suttons Bay 16%, Leland 4% and Glen Lake 6%. (April, 2018, Michigan News)

10. Undocumented (& thus not counted) workers/families in our county continue to suffer

from fear, poor living conditions and the lack of essential services. 11. Like our neighboring counties, we know that our families have problems with drugs,

alcohol, child abuse/neglect, hunger, suicide, loneliness, domestic violence and access to mental health services.

12. The latest report from the Area Agency on Aging reports that of the 8270 Seniors living

in Leelanau County, 6% - 8% are living below the poverty level4 and many more are financially challenged and socially isolated. 4% – 10% qualify for food stamps. (Leelanau County Senior services Report, 2018 & Area Agency on Aging Report, 2016)

13. The County’s median income and housing values of households are mismatched with the

average home priced at values beyond the affordability of the average household. The median home value is $241,000 (highest median home value in Michigan). The median county income is $59,018 with median rent of $865.00 and total housing costs of $1397 per month. (Michigan League for Public Policy, 2018)

14. The average homebuyer can only afford a home that costs about $150,000, leaving a gap

of over $90,000 between what a family can afford and what is available. Although many experts agree that families should not spend more than 45% of income on housing and transportation, the median-income Leelanau households spend 57% of their income on housing and transportation. Lower-income Leelanau families spend as much as 75% of their resources on housing and transportation (Networks Northwest)

Sources: DHS Green Book (2018); The Annie E. Casey Foundation KIDS’ Count Report; Mlive (2017); Networks Northwest Housing Reports (2014/2018); US Census Bureau’s Quick Facts;

3 %of third graders testing ‘proficient’ in English/Language Arts on the 2017 State M-STEP assessment: Leland – 52%, Glen Lake – 32%, Suttons Bay – 32% and Northport – 29%. TBAISD Region – 48% 4 Poverty level: $23,760/individual or $32,040 per couple

96

Leelanau County Senior Services Update; University of Michigan News; Area Agency of Aging Report; & United Way ALICE Report (2017)

Ty Wessell, 5/15/18

97

ECONOMIC SECURITY 2010 2016 Children in poverty, ages 0–17 Young children, ages 0–5, in the Food Assistance Program2

Students receiving free/reduced- 2009–10 (SY) 2016–17 (SY) price school lunches3

HEALTH 2008–10 (avg.) 2013–15 (avg.) Less than adequate prenatal care Low-birthweight babies Infant mortality (per 1,000)

Child/Teen deaths, ages 1–19 (per 100,000)

FAMILY AND COMMUNITY (per 1,000) 2008–10 (avg.) 2013–15 (avg.) Births to teens, ages 15–19 Child abuse/neglect 2010 2016 Children in investigated families Confi rmed victims Children in out-of-home care

EDUCATION 2006–10 (avg.) 2012–16 (avg.) 3- and 4-year-olds not in preschool 2010 2016 Students not graduating on time

2016 2017 Students not college ready

Not profi cient (M-STEP) 2014–15 (SY) 2016–17 (SY)

Third-graders (English Language Arts) Eighth-graders (Math)

BASE YEAR CURRENT YEAR NUMBER RATE NUMBER RATE RATE CHANGE MI RATE RANK1

1 A ranking of 1 means a county has the ‘‘best’’ rate compared with other counties in the state. Unless noted, the ranking is based on 82–83 counties.

2 Supplemental Nutrition Assistance Program.3 Family income is below 185 percent of poverty level.* Sometimes a rate could not be calculated because of low incidence of events or unavailable data. | N/A - not availble.SY - School Year. | M-STEP - Michigan Student Test of Educational Progress was fi rst administered in 2015.

www.mlpp.org

Child population by race 2010 2015 % change

Hispanic 0–17Non-Hispanic 0–17 • White • African-American/Black • American Indian • Other

Total populationChild population 0–17 • Ages 0–5 • Ages 6–12 • Ages 13–17

POPULATION

2010 2015 % change

(All Data Are For 2016 Unless Otherwise Noted)2018 TRENDS IN CHILD WELL-BEING

Overall Rank for Child

Well-Being

63 48.5% 68 57.6% 18.8% 55.9% 48 104 72.2% 99 60.7% -15.9% 66.5% 17

91 61.1% 79 57.7% -5.6% 65.1% 11

23 11.1% 71 33.2% 200.0% 20.4% 75 of 80

181 40.1% 129 42.9% 6.8% 52.7% 2

* * 194 52.3 * 112.5 2

* * 38 10.2 * 17.9 6

22 5.2 12 3.2 -37.7% 4.8 15 of 80

14 20.6 6 10.8 -47.6% 21.4 7

58 34.2% 46 27.0% -21.0% 32.4% 14

8 4.5% 10 5.8% 29.6% 8.4% 9 of 81

1 * 2 * * 6.9 * of 45

1 * 1 * * 25.3 * of 51

360 400 11.1%

3,535 2,977 -15.8% 53 63 18.9% 254 212 -16.5% 38 59 55.3%

21,847 21,981 0.6% 4,240 3,711 -12.5% 1,129 996 -11.8% 1,637 1,475 -9.9% 1,474 1,240 -15.9%

788 35.9% 686 34.9% -2.7% 45.8% 8

292 25.7% 128 12.9% -50.0% 28.0% 3

609 14.7% 459 13.2% -10.2% 20.7% 11

7

LEELANAU

98

2018 BACKGROUND INFORMATION

Children with health insurance (2015)Children, ages 0–18, insured by... • Medicaid1

• MIChildFully immunized toddlers, ages 19–35 months (for the series 4:3:1:3:3:1:4)1

Lead poisoning in children, ages 1–2 (2015) • Tested • Poisoned (% of tested) (EBL confi rmed by venous)Children, ages 1–14, hospitalized for asthma (rate per 10,000) (2015)

Children with special needs • Students in Special Education1

• Children receiving Supplemental Security Income (rate per 1,000)1

• Children, ages 0–2, receiving Early On services (ISD totals)

ACCESS TO HEALTHCARE NUMBER RATE MI RATE

1 As of December 2016.2 Family Independence Program.3 State name for the federal Supplemental Nutrition Assistance Program, formerly called “food stamps.” Note: Percentages refl ect percent of population unless otherwise noted.* Sometimes a rate could not be calculated because of low incidence of events or unavailable data.N/A - not available.See Data Notes and Sources for details.

ECONOMIC CLIMATEUnemploymentMedian household incomeAverage cost of full-time child care/month (2017) • Percent of full-time minimum wage (2017)Percent of young children ages 0–5 in Michigan families (2012–16 avg.) where all parents work

COUNTY MICHIGAN

Births to moms without high school diploma or GED (2013–15)High poverty neighborhoods, ages 0–17 (2012–16)Household structure, ages 0–17 • Two-parent family • One-parent familyPoverty by household structure, ages 0–17 (2012–16) • Two-parent family • One-parent familyEnglish not spoken at home, ages 5–17 (2012–16)

FAMILY AND COMMUNITY NUMBER RATE MI RATE

FAMILY SUPPORT PROGRAMS NUMBER RATE MI RATE

Children receiving... • Subsidized child care, ages 0–121

• FIP cash assistance1,2

• Food Assistance Program1,3

• Women, Infants, and Children (WIC)

Children with support owed • Receiving none (% of those owed) • Receiving less than 70% of amount • Average amount received (month)

179 9.1% 13.9% 28 7.5 19.4 151 3.0% 2.9%

3,674 93.9% 96.8%

1,096 27.7% 41.5% 93 2.3% 2.0%

129 70.1% 74.9%

164 52.4% 37.9% N/A N/A 1.7% N/A N/A N/A

15 8.7% 12.5% 0 0.0% 16.9%

2,756 76.8% 66.1% 831 23.2% 33.9%

154 5.6% 10.6% 309 37.2% 45.5% 283 10.0% 10.3%

68.6% 66.4%

4.7% 4.9% $62,174 $52,436

$626 $575

40.6% 37.3%

$256 – $216

599 14.5% 20.9% 55 9.2% 23.7% 223 37.2% 58.1%

24 1.0% 2.0% 7 0.2% 1.7% 371 9.4% 23.3% 255 31.3% 49.1%

LEELANAU

99