Treasury Recommendation Presque Isle CRC

Pension Corrective Action Plan (CAP) Primary Unit 710100

Name of Systems

Type of System

Assets Liabilities Funded Ratio

ADC Revenues ADC/Revenue CAP required?

MERS Pension $4,796,540 $9,774,568 49.1% $338,169 $5,593,373 6.0% Yes Healthcare OPEB $0S $1,327,286 0.0% $60,942 1.1% No Total $4,796,540 $11,101,584 $399,111 $11,186,746 7.1%

Source: Retirement Report 2017, Audited Financial Statements

Staff Recommendation: Approval of the pension corrective action plan submitted by Presque Isle CRC, which was received by the Municipal Stability Board (the Board) on January 16, 2019. If approved by the Board, Treasury and the Board will continue to monitor them for compliance per Public Act 202 of 2017 and implementation of their corrective action plan.

Changes Made:

• Modern Plan Design: o Presque Isle CRC lowered the tier of benefits for employees hired after 7/01/2015

Have a reduced defined benefit multiplier of 2.0 Early retirement option 53/30 eliminated

• Plan Funding:

o Additional funding of $30,000 as 01/01/2018 o Presque Isle CRC increased employee contributions

Employees contributed 3% of gross pay as of 08/06/2012 Employees contributed 4% of gross pay as of 07/01/2013 Employees contributed 5% of gross pay as of 07/01/2014

• Other Considerations:

o None noted.

Prospective Changes:

• Modern Plan Design: o Implementation of a surplus division effective 1/1/2019 o Additional funding$180,000 transferred into surplus division on 1/1/2019 o All future excess payments placed in surplus

• Plan Funding:

o Additional funding of $20,000 per month into the surplus division

• Other Considerations: o None noted

Treasury Recommendation Presque Isle CRC

Pension Corrective Action Plan (CAP) Primary Unit 710100

Plan size:73 members

• Inactive employees or beneficiaries currently receiving benefits: 46 • Inactive employees entitled to but not yet receiving benefits: 0 • Active employees: 27

Corrective Action Plan Criteria:

The following corrective action plan approval criteria are met:

• Underfunded Status: o The corrective action plan demonstrates it will reach the PA 202 established funding

level of 60% funded as demonstrated by the actuarial projection found in the corrective action plan.

• Reasonable Timeframe: o The corrective action plan demonstrates the local unit reaches the PA 202 established

funding level of 60% within a reasonable timeframe (2030).

• Legal and Feasible: o In section 7 of the corrective action plan template, the local unit confirms that the plan

is legal and feasible because the plan follows all applicable laws, the actions listed are feasible, and the plan is approved by the governing body.

• Affordable: o The local unit confirms in section 5 of the corrective action plan template that the

corrective actions listed will allow for the local unit to make, at a minimum, the annual required contribution payment according to the long-term budget forecast.

Supplemental Information: Presque Isle CRC included their valuation which shows their pension system will reach 60% funded by FY 2030 and their projected annual employer contribution. From 2019 to 2039, Presque Isle CRC’s annual employer contribution increases by approximately 100%.

Treasury Recommendation Presque Isle CRC

Pension Corrective Action Plan (CAP) Primary Unit 710100

The Community Engagement and Finance Division (CEFD) contact:

• None noted.

 

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Michigan Department of Treasury 5598 (08-18)

Protecting Local Government Retirement and Benefits Act Corrective Action Plan: Defined Benefit Pension Retirement Systems Issued under authority of Public Act 202 of 2017.

1. MUNICIPALITY INFORMATION Local Unit Name: ____________________________ ___ Six-Digit Muni Code: __________________________

Defined Benefit Pension System Name: __________________________________________________________

Contact Name (Administrative Officer):__________________________________________________________

Title if not Administrative Officer: ______________________________________________________________

Email:________________________________________ Telephone:_________________________________ 2. GENERAL INFORMATION Corrective Action Plan: An underfunded local unit of government shall develop and submit for approval a corrective action plan for the local unit of government. The local unit of government shall determine the components of the corrective action plan. This Corrective Action Plan shall be submitted by any local unit of government with at least one defined benefit pension retirement system that has been determined to have an underfunded status. Underfunded status for a defined benefit pension system is defined as being less than 60% funded according to the most recent audited financial statements, and, if the local unit of government is a city, village, township, or county, the annually required contribution (ARC) for all of the defined benefit pension retirement systems of the local unit of government is greater than 10% of the local unit of government’s annual governmental fund revenues, based on the most recent fiscal year. Due Date: The local unit of government has 180 days from the date of notification to submit a corrective action plan to the Municipal Stability Board (the Board). The Board may extend the 180-day deadline by up to an additional 45 days if the local unit of government submits a reasonable draft of a corrective action plan and requests an extension. Filing: Per Sec. 10(1) of PA 202 of 2017 (the Act), this Corrective Action Plan must be approved by the local government’s administrative officer and its governing body. You must provide proof of your governing body approving this Corrective Action Plan and attach the documentation as a separate PDF document. Per Sec. 10(4) of the Act, failure to provide documentation that demonstrates approval from your governing body will result in a determination of noncompliance by the Board. The submitted plan must demonstrate through distinct supporting documentation how and when the local unit will reach the 60% funded ratio. Or, if the local unit is a city, village, township, or county, the submitted plan may demonstrate how and when the ARC for all of the defined benefit pension systems will be less than 10% of annual governmental fund revenues, as defined by the Act. Supporting documentation for the funding ratio and/or ARC must include an actuarial projection, an actuarial valuation, or an internally developed analysis. The local unit must project governmental fund revenues using a reasonable forecast based on historical trends and projected rates of inflation. The completed plan must be submitted via email to Treasury at LocalRetirementReporting@michigan.gov for review by the Board. If you have multiple underfunded retirement systems, you are required to complete separate plans and send a separate email for each underfunded system. Please attach each plan as a separate PDF document in addition to all applicable supporting documentation. The subject line of the email(s) should be in the following format: Corrective Action Plan-2017, Local Unit Name, Retirement System Name (e.g. Corrective Action Plan-2017, City of Lansing, Employees’ Retirement System

 

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Pension Plan). Treasury will send an automatic reply acknowledging receipt of the email. Your individual email settings must allow for receipt of Treasury’s automatic reply. This will be the only notification confirming receipt of the application(s). Municipal Stability Board: The Municipal Stability Board (the Board) shall review and vote on the approval of a corrective action plan submitted by a local unit of government. If a corrective action plan is approved, the Board will monitor the corrective action plan for the following two years, and the Board will report on the local unit of government’s compliance with the Act not less than every two years. Review Process: Following receipt of the email by Treasury, the Board will accept the corrective action plan submission at the next scheduled meeting of the Board. The Board shall then approve or reject the corrective action plan within 45 days from the date of the meeting. Considerations for Approval: A successful corrective action plan will demonstrate the actions for correcting underfunded status as set forth in Sec. 10(7) of the Act (listed below), as well as any additional solutions to address the underfunded status. Please also include steps already taken to address your underfunded status as well as the date prospective actions will be taken. A local unit of government may also include in its corrective action plan, a review of the local unit of government's budget and finances to determine any alternative methods available to address its underfunded status. A corrective action plan under this section may include the development and implementation of corrective options for the local unit of government to address its underfunded status. The corrective options as described in Sec. 10(7) may include, but are not limited to, any of the following:

(i) Closing the current defined benefit plan.

(ii) Implementing a multiplier limit.

(iii) Reducing or eliminating new accrued benefits.

(iv) Implementing final average compensation standards.

Implementation: The local unit of government has up to 180 days after the approval of a corrective action plan to begin to implement the corrective action plan to address its underfunded status. The Board shall monitor each underfunded local unit of government's compliance with this act and any corrective action plan. The Board shall adopt a schedule, not less than every 2 years, to certify that the underfunded local unit of government is in substantial compliance with the Act. If the Board determines that an underfunded local unit of government is not in substantial compliance under this subsection, the Board shall within 15 days provide notification and report to the local unit of government detailing the reasons for the determination of noncompliance with the corrective action plan. The local unit of government has 60 days from the date of the notification to address the determination of noncompliance.

3. DESCRIPTIONS OF PRIOR ACTIONS Prior actions are separated into three categories below: System Design Changes, Additional Funding, and Other Considerations. Please provide a brief description of the prior actions implemented by the local government to address the retirement system’s underfunded status within the appropriate category section. Within each category are sample statements that you may choose to use to indicate the changes to your system that will positively affect your funded status. For retirement systems that have multiple divisions, departments, or plans within the same retirement system, please indicate how these changes impact the retirement system as a whole.

Please Note: If applicable, prior actions listed within your waiver application(s) may also be included in your corrective action plan.

 

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Please indicate where in the attached supporting documentation these changes are described and the impact of those changes (i.e. what has the local unit of government done to improve its underfunded status, and where can we find the proof of these changes in the supporting documentation?). Note: Please provide the name of the system impacted, the date you made the change, the relevant page number(s) within the supporting documentation, and the resulting change to the system’s funded ratio. Category of Prior Actions: System Design Changes - System design changes may include the following: Lower tier of benefits for new

hires, final average compensation limitations, freeze future benefit accruals for active employees in the defined benefit system, defined contribution system for new hires, hybrid system for new hires, bridged multiplier for active employees, etc.

Sample Statement: The system’s multiplier for current employees was lowered from 2.5X to 2X for the General Employees’ Retirement System on January 1, 2017. On page 8 of the attached actuarial supplemental valuation, it shows our funded ratio will be 60% by fiscal year 2020. Additional Funding – Additional funding may include the following: Voluntary contributions above the actuarially

determined contribution, bonding, millage increases, restricted funds, etc. Sample Statement: The local unit provided a lump sum payment of $1 million to the General Employees’ Retirement System on January 1, 2017. This lump sum payment was in addition to the actuarially determined contribution (ADC) of the system. The additional contribution will increase the retirement system’s funded ratio to 61% by 2025. Please see page 10 of the attached enacted budget, which highlights this contribution of $1 million. Other Considerations – Other considerations may include the following: outdated Form 5572 information,

actuarial assumption changes, amortization policy changes, etc. Sample Statement: The information provided on the Form 5572 from the audit used actuarial data from 2015. Attached is an updated actuarial valuation for 2017 that shows our funded ratio has improved to 62% as indicated on page 13. 4. DESCRIPTION OF PROSPECTIVE ACTIONS The corrective action plan allows you to submit a plan of prospective actions which are separated into three categories below: System Design Changes, Additional Funding, and Other Considerations. Please provide a brief description of the additional actions the local government is planning to implement to address the retirement system’s underfunded status within the appropriate category section. Within each category are sample statements that you may choose to use to indicate the changes to your system that will positively affect your funded status. For retirement systems that have multiple divisions, departments, or plans within the same retirement system, please indicate how these changes impact the retirement system as a whole.

 

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Please indicate where in the attached supporting documentation these changes are described and the impact of those changes (i.e. what will the local unit of government do to improve its underfunded status, and where can we find the proof of these changes in the supporting documentation?). Category of Prospective Actions: System Design Changes - System design changes may include the following: Lower tier of benefits for new

hires, final average compensation limitations, freeze future benefit accruals for active employees in the defined benefit system, defined contribution system for new hires, hybrid system for new hires, bridged multiplier for active employees, etc.

Sample Statement: Beginning with summer 2018 contract negotiations, the local unit will seek to lower the system’s multiplier for current employees from 2.5X to 2X for the General Employees’ Retirement System. On page 8 of the attached actuarial supplemental valuation, it shows our funded ratio would be 60% funded by fiscal year 2020 if these changes were adopted and implemented by fiscal year 2019. Additional Funding – Additional funding may include the following: voluntary contributions above the actuarially

determined contribution, bonding, millage increases, restricted funds, etc. Sample Statement: Beginning in fiscal year 2019, the local unit will provide a lump sum payment of $1 million to the General Employees’ Retirement System. This lump sum payment will be in addition to the actuarially determined contribution (ADC) of the system. The additional contribution will increase the retirement system’s funded ratio to 61% by 2025. Please see page 10 of the attached enacted budget, which highlights this contribution of $1 million. Please see page 12 of the attached supplemental actuarial valuation showing the projected change to the system’s funded ratio with this additional contribution. Other Considerations – Other considerations may include the following: outdated Form 5572 information,

actuarial assumption changes, amortization policy changes, etc. Sample Statement: Beginning in fiscal year 2019, the local unit will begin amortizing the unfunded portion of the pension liability using a level-dollar amortization method over a closed period of 10 years. This will allow the retirement system to reach a funded status of 62% by 2022 as shown in the attached actuarial analysis on page 13.

   

 

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5. CONFIRMATION OF FUNDING Please check the applicable answer: Do the corrective actions listed in this plan allow for (insert local unit name) _____________________________ to make, at a minimum, the annual required contribution payment for the defined benefit pension system according to your long-term budget forecast? Yes No

If No, Explain

6. DOCUMENTATION ATTACHED TO THIS CORRECTIVE ACTION PLAN Documentation should be attached as a .pdf to this Corrective Action Plan. The documentation should detail the corrective action plan that would be implemented to adequately address the local unit of government’s underfunded status. Please check all documents that are included as part of this plan and attach in successive order as provided below: Naming convention: when attaching documents please use the naming convention shown below. If there is more than one document in a specific category that needs to be submitted, include a, b, or c for each document. For example, if you are submitting two supplemental valuations, you would name the first document “Attachment 2a” and the second document “Attachment 2b”. Naming Convention

Type of Document

Attachment – 1 This Corrective Action Plan Form (Required)

Attachment – 1a Documentation from the governing body approving this Corrective Action Plan (Required)

Attachment – 2a An actuarial projection, an actuarial valuation, or an internally developed analysis, which illustrates how and when the local unit will reach the 60% funded ratio. Or, if the local unit is a city, village, township, or county, ARC will be less than 10% of governmental fund revenues, as defined by the Act. (Required)

Attachment – 3a Documentation of additional payments in past years that is not reflected in your audited financial statements (e.g. enacted budget, system provided information).

Attachment – 4a Documentation of commitment to additional payments in future years (e.g. resolution, ordinance)

Attachment – 5a A separate corrective action plan that the local unit has approved to address its underfunded status, which includes documentation of prior actions, prospective actions, and the positive impact on the system’s funded ratio

Attachment –6a Other documentation not categorized above

 

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7. CORRECTIVE ACTION PLAN CRITERIA Please confirm that each of the four corrective action plan criteria listed below have been satisfied when submitting this document. Specific detail on corrective action plan criteria can be found in the Corrective Action Plan Development: Best Practices and Strategies document. Corrective Action Plan Criteria

Description

Underfunded Status Is there a description and adequate supporting documentation of how and when the retirement system will reach the 60% funded ratio? Or, if your local unit is a city, village, township, or county, how and when the ARC of all pension systems will be less than 10 percent of governmental fund revenues?

Reasonable Timeframe

Do the corrective actions address the underfunded status in a reasonable timeframe (see CAP criteria issued by the Board)?

Legal and Feasible Does the corrective action plan follow all applicable laws? Are all required administrative certifications and governing body approvals included? Are the actions listed feasible?

Affordability Do the corrective action(s) listed allow the local unit to make the annual required contribution payment for the pension system now and into the future without additional changes to this corrective action plan?

8. LOCAL UNIT OF GOVERNMENT’S ADMINISTRATIVE OFFICER APPROVAL OF CORRECTIVE ACTION PLAN

I ____________________________, as the government’s administrative officer (enter title) _____________________________ (Ex: City/Township Manager, Executive director, and Chief Executive Officer, etc.) approve this Corrective Action Plan and will implement the prospective actions contained in this Corrective Action Plan. I confirm to the best of my knowledge that because of the changes listed above, one of the following statements will occur: The _________________________________(Insert Retirement Pension System Name) will achieve a

funded status of at least 60% by Fiscal Year ________ as demonstrated by required supporting documentation listed in section 6.

OR, if the local unit is a city, village, township, or county: The ARC for all of the defined benefit pension retirement systems of ________________________ (Insert local

unit name) will be less than 10% of the local unit of government’s annual governmental fund revenues by Fiscal Year _________ as demonstrated by required supporting documentation listed in section 6.

Signature _____________________________________ Date ______________________________

Presque Isle County Road Commission

Minutes

December 10, 2018 The regular meeting of the Board of Road Commissioners for Presque Isle County was held at the

Road Commission office at 657 South Bradley, Rogers City, Michigan. Chairman Ronald Bischer

called the meeting to order at 8:30 a.m.

Board Members Present: Ronald Bischer, John Chappa, Thomas Catalano

Also Present: Supt./Mgr Gerald Smigelski, Clerk Anne Wirgau

Visitors: Dave Campo and Herb Lawson, Presque Isle Sno-Trails Snowmobile Club

Minutes:

A motion was made by Catalano (Chappa) to approve minutes from November 19, 2018

meeting as presented.

Ayes: All

Accounts Payable:

Motion by Chappa (Catalano) to approve the December 10, 2018 accounts payable in the

amount of $568,079.67

Ayes: Catalano, Chappa, Bischer

Visitors:

Dave Campo, President – Presque Isle Sno-Trails Snowmobile Club and Herb Lawson, Vice-

President – Presque Isle Sno-Trails Snowmobile Club, appeared before the Board seeking support

for a proposed snowmobile trail into Rogers City from the south. Mr. Campo stated the club has

been attempting to get a snowmobile trail into Rogers City from the south for the past eighteen

years without success.

The proposed route would be from the Posen railroad grade to the north railroad spur, to the

intersection of 638 Hwy, then along the shoulders of 638 Hwy west to Swan River Road to Lamb

Hwy to Golf Course Road to US-23. Lengthy discussion was held regarding the feasibility of using

the railroad grade directly to US-23 and bypassing 638 Hwy and Swan River Road. Due to the poor

condition of the existing old railroad bridge crossing the Swan River this may not be feasible.

Approximately three (3) miles of county roads would be used in this proposed route.

A motion was made by Chappa (Catalano) to deny the request as presented.

Ayes: Bischer, Catalano, Chappa

A motion was made by Catalano (Bischer) to support a proposed snowmobile route from the

Posen Railroad grade spur to US-23 to Lamb Hwy to Golf Course Road to US-23 right of way.

Ayes: Bischer, Catalano, Chappa.

Supt./Mgr Report:

Senate Bill 396 passed the senate last week with three amendments. The bill is now

in the House of Representatives.

Correspondence has been received from the Michigan Transportation Asset

Management Council informing us that our Asset management Plan must be in place

by October 1, 2022. It can be adopted earlier, but not later. Clerk Wirgau and I will

be attending an Asset Management workshop tomorrow in Gaylord learning how to

develop the Asset Management plan using our Roadsoft data.

A Township agreement has been sent to North Allis Township for the Bonz Beach

Highway overlay project, not sure if they are going to do the project.

A used snow plow has been purchase for the F350 dually, can be used to clean up

intersections.

Will be using State purchasing MiDeal via Truck & Trailer for purchase and

installing of equipment on the new tandem truck.

Chappa Construction has started working on the roof at the Posen garage this past

Wednesday. One side is completed and the other side will be started today.

Onaway Foreman McAtee and Supt./Mgr met with a DNR Trails representative last

Thursday on site at co. Rd 489 and Ash Hwy. The DNR would like to relocate

approximately 100 to 150 feet of the trail along 489 to eliminate a deteriorated

bridge. Half of the relocated trail would be on county road right of way and half

would be on State land. Trail is far enough off the roadway as to not be an issue.

Supt./Mgr will be attending an AGRIP conference in St. Louis March 3-7, 2019.

Discussion was held regarding use of vacation time or regular work time for the

conference. Supt./Mgr will use two days vacation per the board’s request.

Supt./Mgr attended MTA meeting last week at Krakow Township and reported to the

ten townships in attendance.

Supt./Mgr will be attending the Presque Isle Township meeting tonight to discuss a

possible road millage.

The Rogers City crew is assembling the culvert for the Grace Creek crossing.

Supt./Mgr and Foremen will be meeting with the Sheriff Dept and our local MSP

State Trooper Wednesday morning to discuss winter operations and other topics.

Supt./Mgr presented a map with the 5 year road improvement plans to the Board.

The 2019 Budget is still being worked on. A copy of the proposed budget will be

sent with the next board packet for review prior to the Public Hearing on December

27, 2018.

Unfinished business:

Chairman Bischer spoke about Senate Bill 637 which concerns small wireless cell towers with

5G technology. He also talked about a Frontier project in the county right of way off Twin School

Highway near M-211 intersection.

Clerk Wirgau discussed the status of the Corrective Action Plan as required by the Department

of Treasury. Additional payments over the required amount and the creation of the surplus division

will aid in raising the funding level to 60% prior to 2030. A draft of the plan will be reviewed at

the December 27, 2018 meeting. A motion was made by Chappa (Bischer) pay an additional

$20,000.00 per month into MERS effective January 1, 2019.

Ayes: Bischer, Chappa

Nays: Catalano

A motion was made by Catalano (Bischer) to allow expenses for Supt./Mgr and Clerk Wirgau

to attend a Pavement Asset Management Plan workshop in Gaylord on December 11, 2018.

Ayes: Bischer, Chappa, Catalano

The disposal of three used pickups was discussed. All three being considered for sale by sealed

bid are 2008 year or older. Supt./Mgr will bring more information to a future meeting.

The next meeting dates are scheduled for Thursday, December 27, 2018 at 8:30 a.m. and

Monday, January 7 at 8:30 a.m.

A motion was made by Chappa (Catalano) to adjourn at 11:10 a.m.

Ayes: All

Presque Isle County Road Commission

Minutes

December 27, 2018 The regular meeting of the Board of Road Commissioners for Presque Isle County was held at the

Road Commission office at 657 South Bradley, Rogers City, Michigan. Chairman Ronald Bischer

called the meeting to order at 8:30 a.m.

Board Members Present: Ronald Bischer, John Chappa, Thomas Catalano

Also Present: Supt./Mgr Gerald Smigelski, Clerk Anne Wirgau, Janitor Brad Mertz

Visitors: Lee Gapczynski, County Commissioner; Clifford Tollini

Minutes:

A motion was made by Catalano (Chappa) to approve minutes from December 10, 2018

meeting as presented.

Ayes: All

Accounts Payable:

Motion by Chappa (Catalano) to approve the December 27, 2018 accounts payable in the

amount of $346,623.39

Ayes: Catalano, Bischer, Chappa

9:00 am – Public Hearing – 2019 Budget

Chairman Bischer opened the public hearing for the purpose of discussing the proposed 2019

Budget. Clerk Wirgau advised that no written comments were received.

Supt./Mgr Smigelski reviewed the revenue proposed, noting additional new money with the

passage of Senate Bill 601 (2018 Appropriation Supplemental bill). The $44.6 million will be

distributed through the Act 51 formula. MDOT has not provided a county-by-county break-out yet.

The proposed expenditure budget includes 25 miles of primary road sealcoat, 1.5 mile

reconstruction of Co. Rd 451 and the Township local road projects. Lengthy discussion was held

regarding the possibility of changing the local township share policy.

A motion was made by Catalano (Chappa) to adopt the 2019 Budget as presented. (See

attached.)

Ayes: Bischer, Catalano, Chappa Public hearing closed at 9:37 a.m.

Part-time Janitor Brad Mertz entered meeting at 9:38 a.m. to discuss two personnel items and

one item as a property owner.

Mr. Mertz asked if he could buy time in the MERS retirement system. Chairman Bischer stated

no part-time employees are enrolled in MERS and the board has no intention of offering the benefit

to part-time employees at this time. The only way to purchase service time is to be enrolled in the

MERS plan and Mr. Mertz is not eligible to buy time.

Mr. Mertz stated he asked Employee Association to include his position in the employee

agreement and it has not happened. Supt./Mgr Smigelski stated since it is only a part-time position

with no benefits, similar to the summer help, both the Board and Supt./Mgr felt it was not

necessary. If it ever became a full time position at may be addressed at that time.

Regarding a drainage issue, Mr. Mertz presented a police report and photos from last year in

which a drainage ditch on his property was hit by a snowmobile. He is concerned about the

liability. The history of the drainage ditch was discussed. Commissioner Catalano stated the Road

Commission would change the culvert only if there was a water problem affecting the road bed or if

we were reconstructing that part of the road. Mr. Mertz was advised the Road Commission cannot

perform work on private property to clean the ditch using public funds. It was suggested by

Commissioner Chappa that he post signs on his property to keep snowmobiles off the field.

Another suggestion was to put up snow fence. Mr. Mertz thanked the Board and left the meeting

at 10:03 a.m.

Supt./Mgr Report:

Senate Bill 396 was not passed in lame duck session. Supt./Mgr spoke of other

legislation passed in the Michigan lame duck legislative session.

Chappa Construction has completed the roof at the Posen garage.

Supt./Mgr and County Road Engineer Straley attend a meeting with Presque Isle

Township officials regarding a possible road millage. A committee was formed and

Supt./Mgr and Mark Straley offered to help however they needed it.

Two agreements have been made with Rogers Township. 1 mile of Klee Road and

.7 mile of Aspen Estates will be crush and shape projects.

Supt./Mgr reported on the recently enacted Marijuana legislation and how it affects

the Road Commission. Our drug policy has been reviewed with all employees. Any

use of marijuana is not permitted.

Supt./Mgr gave the Board a handout summarizing the changes to our retirement and

post-employment health insurance plans from 1996 forward.

Employees expressed their thanks to the Board for the safety award vests and

allowance for this year.

Unfinished business:

Clerk Wirgau discussed the Corrective Action Plan as required by the Department of Treasury.

Copies of the proposed plan were given to the Board and discussion was held.

A motion was made by Chappa (Bischer) to adopt the Corrective Action Plan for the Defined

Benefit Pension Retirement System (710101) as presented.

Ayes: Bischer, Catalano, Chappa

New business:

A discussion was held regarding the MERS benefit level for the new Road Commissioner who

will be appointed by the County Board in early 2019. Currently the Commissioners are part of the

10-Commissioner group within MERS. The issue is it is a higher benefit level than current new

hires after July, 2015 when the B-4 plan was closed to new employees.

A motion was made by Chappa (Catalano) to allow MERS to prepare a cost calculation to close

Division 10-Commissioner and open a new Commissioner group for future Road Commissioners at

the same level as new hires after the July, 2015 change.

Ayes: Bischer, Chappa, Catalano

Commissioner Chappa raised the topic of the current Township Cost Share Policy of 25 % Road

Commission and 75% Township for local road projects. He would like to see the Township

percentage lowered. Discussion was held regarding the outcome of changing the cost share

percentage and the effect on signed agreements in place for 2019.

A motion was made by Chappa (Bischer) to adopt the Local Road Cost Share Policy as follows:

Due to the increased MTF funding the Presque Isle County Board of Road

Commissioners revised the local road cost share percentage of participation for townships from the

current 75/25 split to 65% Township share - 35% Road Commission share.

Ayes: Bischer, Chappa

Nays: Catalano

The 2019 Re-organizational meeting is scheduled for Wednesday, January 9, 2019 at 8:30 a.m. with

the regular meeting to follow.

A motion was made by Catalano (Chappa) to adjourn at 11:17 a.m.

Ayes: All

State Aide -- 2019

Motor Vehicle Funds:

Engineering 10,000$

Primary Road Allocation 2,300,000$

Local Road Allocation 1,750,000$

Snow Removal 76,000$

Forest Road Funds 87,000$

State Critical Bridge

State Trunkline Maintenance 683,689$

State - Non Maintenance TWA

State - Cat D 74,084$

State Funds - Other:

Local Agency disbursement 245,600$

Total State Aide Revenue 5,226,373$

Federal Funds -

Surface Transportation Program 460,324$

Total Federal Aide Revenue 460,324$

Contributions -

Townships 410,000$

Total Township Contributions 410,000$

Other Revenues

Miscellaneous 22,000$

Interest Earned on Investments 7,000$

Rentals/Oil Leases 3,000$

Refunds (MCRCSIP)/Insurance proceeds

Gain (loss) on Equipment Disposals

US Fish & Wildlife / Huron Pines 8,310$

Total Other Revenues 40,310$

Total Revenues 6,137,007$

2019

Construction/Capacity Improvements

Primary Road

Heavy Maintenance 1,000,000$

Maintenance 600,000$

Bridge 10,000$

Winter Maintenance 550,000$

Local Road

Heavy Maintenance 739,318$

Maintenance 1,500,000$

Bridge 10,000$

Winter Maintenance 600,000$

State Trunkline

Maintenance 683,689$

Non maintenance TWA

Equipment Expenses

Direct 750,000$

Indirect 320,000$

Operating 300,000$

Equipment Rental Credit (1,900,000)$

Administrative Expense 600,000$

LESS: Handling Charges (6,000)$

Overhead (70,000)$

Capital Outlay - Net

Capital Outlay 700,000$

LESS: Depreciation, depletion, etc. (250,000)$

Total Expenditures 6,137,007$

Presque Isle Road Commission 2019 Revenue Budget

Presque Isle Road Commission 2019 Expenditure Budget