Read Canton Township: Board of Trustees September 28, 2010 Meeting Minutes text version

Charter Township of Canton Board Proceedings ­ September 28, 2010 A regular meeting of the Board of Trustees of the Charter Township of Canton was held Tuesday, September 28, 2010 at 1150 Canton Center S., Canton, Michigan. Supervisor LaJoy called the meeting to order at 7:00 p.m. and led the Pledge of Allegiance to the Flag. Roll Call Members Present: Members Absent: Staff Present:

Anthony, Bennett, LaJoy, McLaughlin, Taj, Williams Caccamo Director Conklin, Director Eva, Director Nemecek, Audrey Robinson, Tom Casari, Carolyn Cox, Debbie Bilbrey-Honsowetz, Doug Shaw

Adoption of Agenda Motion by Bennett, supported by Williams to approve the agenda as amended adding C-2 Set Public Hearing Date for the WF Whelan Co., for Industrial Facilities Exemption Certificate and Exemption of Personal Property Certificate, and C-3 A Request From the Liquor Control Commission to Include New Official Permit (Entertainment) for the Hours of Sundays: 11:00 a.m. ­ 12:00 p.m. Located at 43750 Ford (Texas Corral), Canton, Michigan 48187, Canton Township, Wayne County from DEK Properties, L.L.C. to Ichiban Steakhouse, Inc. and move G-2 Set Millage Rate for December 1, 2010 Tax Levy (FBD) to become G-1 and G-1 WTUA Annual Budget Approval (Supervisor) to become G-2. Motion carried by all members present. Approval of Minutes Motion by Bennett, supported by Taj to approve the Board Minutes of September 14, 2010 Motion carried by all members present. Motion by Bennett, supported by McLaughlin to approve the Board Study Minutes of September 21, 2010. Motion carried by all members present. Citizen's Non-Agenda Item Comments: None.

Payment of Bills Motion by McLaughlin, supported by Anthony to approve payment of the bills as presented. Motion carried by all members present.

General Fund Fire Fund Police Fund Summit Operating Cable TV Fund Twp Improvement Downtown Dev. Auth. E-911 Utility Auto Forfeiture(wwa) Federal Grants Fund NSP Grants Fund Expenditure Recap for September 28, 2010 101 $ 487,871.64 Auto Theft Grant 206 104,597.26 Golf Fund 207 271,519.59 Water & Sewer Fund 208 41,931.14 Fleet Maintenance 230 4,674.31 Trust & Agency Fund 246 27,857.00 Construction Escrows 248 81,161.91 Post Employ. Benefits 261 343.35 267 1,635.73 Total - All Funds 274 5,540.00 276 332,104.04 289 584 592 661 701 702 736 2,199.05 30,926.07 88,584.50 26,416.60 126.00 10,237.75 26,383.08 1,544,109.02

PUBLIC HEARING: Item 1. PUBLIC HEARING REGARDING 2010 BUDGET AND PROPOSED PROPERTY TAX MILLAGE. (FBD)

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Motion by Bennett, supported by McLaughlin to open the public hearing at 7:05 p.m. to hear comment on 2010 Budget and Proposed Property Tax Millage. Motion carried by all members present. Supervisor LaJoy stated conditions in the state and nation have been extremely difficult this year. Seven percent of Canton residents total tax bill goes to Canton Township. The seven percent is broken down to 27% going to the General Fund, 27% goes to Fire and 46% goes to Police. A total of 73% of the tax revenue received by Canton goes to Public Safety; Police and Fire. Supervisor LaJoy stated Canton has three separate distinctive funds: General Fund, Police Fund and Fire Fund. Public Safety is extremely dependent on the taxable value revenue. The General Fund is not quite as dependent as there are other sources of revenue. Police receives approximately 97% of the revenue from the tax dollars and Fire receives approximately 80%. Fire receives a portion of revenue from ambulance transports, and insurance. There has been a dramatic decline in taxable value of homes since 2007. This decline could never have been imagined. Doug Shaw, Wayne County Assessing, stated the historical affects of the residential market value decline. In the 2008 Assessment year values declined on an average -10%. In 2009 it was followed with another decline in the residential values of -12%. The commercial class value of properties in 2009 also decreased 8%. In 2010 the residential class values declined again 10%, and commercial class values declined 15%. We are looking at value decline numbers for 2011, It could be another 7% decline for the residential class in property values, commercial class another 10% decline, and the industrial class a 15-20% value decline. Mr. Shaw stated the difficulty with commercial and industrial values is there are very few sales comparable for equalization. Equalization will rely on appraisals. Wayne County Assessing met with Equalization Department of Wayne County last week. They shared with them the appraisals they had done, the appraisals received by property owners for the commercial and industrial properties to better help them determine next years change in commercial/industrial class values. It was important for the Equalization Department to end up with the correct number. If the Equalization Department comes up with too large a reduction it will affect jobs and services. If the number in reduction is too small the Township will defend tax appeals on commercial/industrial properties costing the Township hundreds of thousands of dollars. The residential class decline in four years is 39%, the commercial class declined 33%, and the industrial class declined 15-20%. Mr. Shaw stated Wayne County Assessing represents 10 communities, 7 in Wayne County, and 3 in Washtenaw County. Each community has these declines of varying degrees. All of these communities are dealing with the same issues as Canton is dealing with. Mr. Shaw stated once we bottom out in this market; Canton will be limited to how much revenue is generated in the future. Assuming residential properties or all properties will not increase in assessed value right away; the taxable values will stay close to the current assessed value.

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Values can't go up more than the rate of inflation. If we do bounce back the assessed values increase, but the CPI is limited up to 5%. Generally, CPI's have been from 1.5-3% yearly. Mr. Shaw stated if Canton loses 15% in taxable value, it could take Canton 10 years to return to previous starting assessed values. Supervisor LaJoy stated this year is the first year Canton presented the multi-year budgeting program. The time-line for the budget is the same. We audited the finances, verified by auditors and prepare the budget for the following year. This year staff completed a multi-year budget revealing the huge problem Canton has in 2012. The issues will begin in 2011. In 2012 there will be a shortfall of $15 million in all funds. The largest part will be the $12 million short fall in Public Safety. As Canton moves forward it is mandatory that we take decisive action. It is through concessions and cuts that Canton will work its way through the General Fund deficit. Supervisor LaJoy stated with that in mind staff has come up with some solutions, concentrating in Police and Fire. Supervisor LaJoy stated we have a very strong Public Safety Department in Canton. Supervisor LaJoy stated employee concessions; wage reductions, furlough days, health care co-pays, flex schedules and scheduling will need to recover the proposed $1.8 million deficit. The second part of the solution is to look for cost savings. Employees have been asked to suggest a list of cost savings ideas. The third part is to increase the millage. The proposed increase in millage for Fire will be .75 mills. The increase in millage for Police is proposed at 1.0 mills. The millage increase will create $5 million in revenue to maintain our current level of service. Supervisor LaJoy stated it doesn't do us any good to have a one time fix. We need sustainability through structural changes. Supervisor LaJoy stated the cost for the resident for a home with the taxable value of $89,100, with a 1.75 mill increase, would be $155.92 annually or $12.99 per month. Director Nemecek stated currently Canton Police Department is operating on a budget of $15.7 million and most comparables communities are over $20 million. The per capita cost to the resident is $176.82, as compared to the average of over $237.00. There are 86 sworn police officers. The comparable average of other departments is 112. We are doing a lot more with less. Currently we are at .96 officers per 1,000 residents, as compared to the average of 1.26 officers per 1,000 residents in other communities. Director Nemecek stated 85% of the patrol force in Canton are in the cars, on patrol. Director Nemecek stated currently Canton Fire Department is operating on a budget of a little over $10 million and the average community comparison is over $13 million. The per capita cost to the residents is $113 and the average comparable is $149. There are 62 sworn fire fighters. The comparable communities average 81 sworn firefighters. Currently, we are at .70 officers per 1,000 residents, as compared to the average of .91 per 1,000 residents. The response times for fire emergencies is slightly over 5 minutes. Police response times are slightly over 3 minutes. A non-emergency response time is 8 minutes. Director Nemecek stated surveys are mailed to residents every two or three years. The last survey results indicated 90% approval rating for both police and fire services. The work force is based on the residents needs.

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Director Nemecek stated reductions are being done in communities all around Canton and we have to be careful how this can affect Canton. Director Nemecek stated with our current staff we are able to put up a "force field" around Canton to protect the residents. Director Nemecek stated the millage increase is not an addition of officers. It will be used to maintain the current service levels. Canton is a proactive department, not a reactive department. If we begin to reduce the number of officers; the first thing the residents will notice is that we become a reactive department. Director Nemecek stated the Canton Police Department was recently reaccredited. We are the largest municipal agency in Michigan to be accredited. The police department met 450 national standards. Director Nemecek stated in a community with over 70,000 residents, Canton ranks as the safest community in the Tri-County area and the State of Michigan. Greg Demopoulos, 1652 McLaine, stated Canton has been very good to the residents. Mr. Demopolis stated Wall Street is what has affected the declining property values now. Mr. Demopolis stated the school district and police department is "huge" in affecting the value of property. Mr. Demopolis stated the Canton Police Department is one of the finest police departments he has ever dealt with. Mr. Demopolis is a criminal defense attorney, a prosecutor and has had court cases with Canton since 1995. Mr. Demopolis stated he understands this is a difficult decision the Board has to make. It is a necessary decision. Al Difalco, 49651 Courtyard Lane, stated he moved to Canton from Houston, Texas during the height of the property value increases. Mr. Difalco stated the public service in Canton is far superior to that of Texas. Mr. Difalco stated most public safety departments in Texas this size are volunteer. Mr. Difalco stated communities around Canton who make major cuts in public safety will affect Canton is Public Safety. Mr. Difalco stated we need to take an aggressive position to protect our public safety department and our community. He supported the decision the Board proposes. Richard Keenan, 46969 Glastonbury Drive, stated he is the biggest conservative, anti-tax person and almost always against raising taxes. Mr. Keenan stated in tough economic times like we face today, all businesses have to make tough decisions to cut cost where they possibly can and make responsible decisions. Mr. Keenan stated in the situation we are in and that our Nation is in today, the one place we cannot afford to cut is public safety. Mr. Keenan stated he believes the Board is on the right path and supports what they are doing. Anthony Cauchi, 7410 Hillsboro Drive, stated this millage will affect resident's pocketbooks and lifestyles. Mr. Cauchi stated we need police protection. Mr. Cauchi stated there is one trustee who has not been available for these budget discussions. Mr. Cauchi stated if this trustee does not feel these discussions are important they should resign and let someone else take their seat on the Board. Mike Schultz, 44580 Dionne, stated he has been out of work for two years. Mr. Schultz stated there are a lot of residents hurting financially. Mr. Schultz stated he is not against this millage,

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but believes the Board should look at other cuts as much as possible. Mr. Schultz stated the police and fire are always very professional and cannot fault either department. Martin Gondek, 42812 Colling Drive, stated he is totally against this millage increase. Mr. Gondek stated Canton has the highest water rates. Mr. Gondek stated property values are down due to residents being out of work and the Board is trying to tax their way out of the problem. Mr Gondek stated taxing will only make the problem worse. Mr. Gondek stated he has nothing against the police and fire department they are very good, but the board needs to look at cuts and they are not looking. Mr. Gondek stated three times this year an ambulance came on his street. Mr. Gondek stated at the same time the fire department sent a fire truck also; this is a waste of tax payer money. Mr. Gondek stated $12.99 is not hurting the Board; they still have their pension, and health care. Mr. Gondek stated we need to look at what cuts can really be made. Motion by Bennett, supported by McLaughlin to close the public hearing at 7:45 p.m. to hear comment on a 2010 Budget and Proposed Property Tax Millage. Motion carried by all members present. CONSENT CALENDAR: Item 1. SET PUBLIC HEARING DATE FOR ENOVATLT.L.C., INDUSTRIAL FACILITIES EXEMPTION. (SUPERVISOR) Motion by Bennett, supported by McLaughlin to set the public hearing for October 26, 2010, to consider the Industrial Facilities Exemption application for EnovateIT L.L.C., for real and personal property at their facility located at 7820 Lilley Rd. Motion carried by all members present. On September 20, 2010, the Economic Development Office received an application EnovateIT L.L.C., requesting an Industrial Facilities Exemption Certificate for real and personal property located at 7820 Lilley Rd. Under P.A. 198, a public hearing must be held within 60 days of the filing of the tax abatement application by the clerk's office with proper notification as required by statute. Item 2. SET PUBLIC HEARING DATE FOR THE WF WHELAN CO., FOR INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE AND EXEMPTION OF PERSONAL PROPERTY CERTIFICE. (SUPERVISOR) Motion by Bennett, supported by McLaughlin to set the public hearing for October 26, 2010, to consider the Industrial Facilities Exemption and Personal Property Exemption applications for WF Whelan Co., for real and personal property at their facility located at 41425 Joy Road. Motion carried by all members present. The Economic Development Office is expecting to receive applications from WF Whelan Co., requesting an Industrial Facilities Exemption Certificate for real property and a Personal Property Exemption Certificate for personal property located at 41425 Joy Rd. Under P.A. 198 and P.A. 328 a public hearing must be held within 60 days of the filing of the tax abatement application by the clerk's office with proper notification as required by statute. All exemption certificates must be approved by the local unit of government and submitted to the State Tax Commission by October 31st of each year. The public hearing date is being scheduled pending receipt of the applications so that the October 31, deadline will be met.

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The Economic Development office will send notification of the public hearing by certified mail to all affected taxing authorities, the local assessor and the applicant. A general notification will be published in "The Eagle", a publication of the Associated Newspapers of Michigan on October 7, 2010. A REQUEST FROM THE LIQUOR CONTROL COMMISSION TO INCLUDE NEW OFFICIAL PERMIT (ENTERTAINMENT) FOR THE HOURS OF SUNDAYS: 11:00 A.M. ­ 12:00 P.M. LOCATED AT 43750 FORD (FORMERLY TEXAS CORRAL), CANTON, MI 48187, CANTON TOWNSHIP, WAYNE COUNTY FROM DEK PROPERTIES, L.L.C. TO ICHIBAN STEAKHOUSE, INC. (CLERK) Motion by Bennett, supported by McLaughlin to approve the request for a new Official Permit (Entertainment) for the hours of Sundays: 11:00 a.m. ­ 12:00 p.m., located at 43750 Ford, Canton, Michigan 48187, Canton Township, Wayne County, from DEK Properties, L.L.C. to Ichiban Steakhouse, Inc. Motion carried by all members present. The Michigan Liquor Control Commission is correcting the local resolution to be approved by the Board of Trustee to include a new official permit (Entertainment) for the hours of Sundays: 11:00 a.m. ­ 12:00 p.m. The Michigan Liquor Control Commission erroneously omitted this information from the resolution. As a result, the Board is being requested to approve adding the language change to the resolution passed on April 27, 2010. Upon approval from the Board of Trustee's the Clerk's office will notify the applicant and forward the resolution to the Michigan Liquor Control Commission. GENERAL CALENDAR: Item 1. SET MILLAGE RATE FOR DECEMBER 1, 2010 TAX LEVY. (FBD) Motion by Bennett, supported by McLaughlin that the millage rates to be levied by Canton Township on December 1, 2010 be set as follows: Charter Mills (General Fund) 2.3660 Fire Protection Special Assessment 3.1080 Police Protection Special Assessment 4.9260 Total 10.4000 Motion carried by all members present. Trustee Williams stated continued improvement is what we are looking for. Trustee Williams stated he has a lot of friends that have also been out of work for years, lost their pensions and medical and he does know what this will mean to them. It is painful, it hurts, however it is the right decision. The right decision is not an easy one to make. Trustee Anthony stated he feels the same as Trustee Williams. Trustee Anthony stated when the news came that Canton was going to be $15 million short come 2012 he was shocked. Nor could he believe they would be asked to raise the millage for police and fire 1.75 millage. Trustee

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Item 3.

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Anthony stated he did a lot of homework. He asked a lot of questions. Trustee Anthony stated he spoke with other neighboring communities and they are doing the same as Canton is proposing. Trustee Anthony stated he would like to thank Supervisor LaJoy and staff for their hard work in preparing this budget. It wasn't an easy task. Trustee Anthony stated if we don't take action now on this $15 million deficit in 2012 it will be $16 or $17 million after that. The two year budget process has been important. Trustee Anthony stated he believes that everyone in Canton agrees this is a great place to live, work and play. It is the quality of life that separates Canton from any other community. Today we are faced with an economic recession. Trustee Anthony stated everyone's wages, home value, IRA, pension, and savings have been reduced. When the value of property declines the income to the Township is reduced. When the property values increase Canton Township will only receive 5% or the CPI Index per year back. It will be 2024 before Canton Township will reach the level of income that we enjoyed in 2007. Trustee Anthony stated he feels the previous Boards have all been good stewards of tax payer money. Trustee Anthony asked so how do we get out of this situation? He does not feel gutting Leisure Services is the way to go. The question is how best to solve the current fiscal crisis? Political posturing will only result in the sale of Fellows Creek, the closure of the Summit, Cherry Hill Village Theater, Pheasant Run Golf Course, the Block, parks, and elimination of programs for the youth and seniors. The only true way out of this crisis is as Treasurer McLaughlin stated "Canton has to grow its way out". Canton has that opportunity. Trustee Anthony stated this crisis calls for a 5% wage reduction, a 10% shared healthcare costs and co-pay for the employees. The crisis calls for a 1.75 millage increase for Public Safety. Trustee Anthony stated as the economy improves Canton will not need the additional millage. It can be reduced. Trustee Anthony stated there comes a time when trustees have to step up and do what is right for the citizens of Canton. Trustee Anthony stated this does not end the Boards review of its finances. We have a lot of legacy costs, bonds, wages, pensions, and healthcare costs to look at and get a handle on. Trustee Anthony stated he wants the quality of life in Canton to continue and he believes the majority of citizens feel the same way. If we all pitch in together we can get through these tough economic times and ensure Canton Township remains the best place to live for ourselves and families. He supports Supervisor LaJoy's recommendation. Trustee Taj stated he agrees with Trustee Anthony. Trustee Taj stated it is a difficult time, but the Board has to do the right thing for the community. The Township Board held a Public Hearing on September 28, 2010, on the proposed December 1, 2010 millage rates and the proposed 2011 budgets. The 2010 millage rates must be certified to Wayne County by October 1, 2010. The proposed millage rates for 2010 are as follows: 2009 Millage Rate Charter Millage 2.3660 Fire Special Assessment Millage 2.3580

September 28, 2010

2010 Millage Rate 2.3660 3.1080

Increase (Decrease) 0.0000 0.7500

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Police Special Assessment Millage 3.9260 Total 8.6500

4.9260 10.4000

1.0000 1.7500

These millage rates are required to balance the proposed FY2011 budgets. The Fire and Police Fund are supported almost entirely by the special assessment millages that were approved by the voters in 1976 and 1977. The combined millage rates of 10.4 mills for the December 1, 2010 levy would be a 1.75 millage increase over the 8.65 mills that were levied on December 1, 2009. As a Charter Township, Canton is authorized to levy 5.00 mills for general operations. Due to the taxing limitations of the 1978 "Headlee Amendment" to the Michigan Constitution and the effect of Proposal A legislation in 1994, the Charter millage limit was reduced to 4.0985 mills. Since 1994, the authorized millage rate has been further reduced to 3.8602 for the general operations of the Township, excluding Fire and Police. The proposed millage of 2.366 is 1.4942 mills below the maximum the Township could levy without a vote of the citizens. The Charter Township's special assessment millage for Police and Fire are not restricted by the "Headlee Amendment" and Proposition A. The voters authorized the Township to levy the necessary funds to provide for the operation of the Public Safety Departments in addition to the general operating millage. A Notice of the Public Hearing on the budget was published as required in the Detroit News and the Free Press on September 21, 2010. Item 2. WTUA ANNUAL BUDGET APPROVAL. (SUPERVISOR) Motion by Bennett, supported by Williams to adopt the resolution to approve the WTUA Annual Budget. Motion carried by all members present.

Resolution of the Charter Township of Canton WHEREAS, on August 23, 2010 the Board of Commissioners of the Western Township Utilities Authority adopted a budget for the fiscal year ending September 30, 2011; and WHEREAS, the Authority is required to present its budget to each of its member Townships for approval. NOW, THEREFORE, BE IT RESOLVED that the budget for the Authority for the fiscal year ending September 30, 2011 in the amounts presented, is hereby approved.

Aaron Sprague stated this budget was prepared by WTUA staff, but thoroughly reviewed by WTUA Finance Committee which is represented by each of the Township's finance directors. Earlier this month, Plymouth Township and Northville Township approved this budget. Mr. Sprague stated unfortunately we are looking at a total budget 5% increase. There is a 7% increase in waste water treatment cost. This portion represents 75% of WTUA's cost. The budget includes no raises, and no increase in outside consultants. Over the past 5 years WTUA has been trimming the budget as best as they can. They will continue to do so. Treasurer McLaughlin inquired what predicated the increase in the sewerage treatment cost. Mr. Sprague stated the sewerage treatment cost increased is due to the projected increase in flows.

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The past five years are analyzed and a growth factor is added. One item not controllable or predictable is the impact that rainfall has on flows. Even when the use is down by the residents the flows may increase due to the volume of rain. Treasurer McLaughlin inquired why has the treatment cost increased so much. Mr. Sprague stated a big factor has been utility cost and chemical cost. YCUA has been doing what they can to increase efficiency and decrease operating cost. According to Section X of the Western Townships Utilities Authority Articles of Incorporation the WTUA Commission shall prepare, adopt, and submit to the legislative bodies of the constituent municipalities an annual budget covering the proposed expenditures to be made for the organizing and operation of such Authority, and for the fiscal year beginning October 1st. CONSIDER RESCINDING AWARD OF CONTRACT FOR THE 2010 COMMUNITY IMPROVEMENT FUND ­ MISCELLANEOUS ASPHALT AND CONCRETE PAVING. (MSD) Motion by Bennett, supported by Williams to rescind the award of bid made to ABC Paving Company for the 2010 Community Improvement Fund ­ Miscellaneous Asphalt and Concrete Paving project on August 24, 2010 and reject all bids that were received for this project. Motion carried by all members present. Motion by Bennett, supported by Williams to rescind the award of bid made to Northwest Consultants, Inc. and Milletics and Associates, LLC for construction inspection and testing for the 2010 Community Improvement Fund ­ Miscellaneous Asphalt and Concrete Paving project on August 24, 2010 and reject all bids that were received for this project. Motion carried by all members present. Tom Casari stated these were projects planned for 2010 and due to budget restraints and revenue issues it was in the best interest to not proceed this year. Trustee Taj inquired if there was any legal responsibility in rescinding the contract. Audrey Robinson stated she did review the contract and there doesn't appear that there is any legal responsibility. Mr. Casari stated all parties involved have been notified of this decision. Trustee Williams inquired if anyone had proceeded far enough to incur cost. Mr. Casari stated Canton never issued a notice of award or a notice to proceed on this project. Ms. Robinson stated no contracts were ever executed. On August 24, 2010, the Township Board awarded the contract for the 2010 Community Improvement Fund ­ Miscellaneous Asphalt and Concrete Paving. Since that time, it has become clear that current economic conditions have affected the ability to fund the project. Due to these financial constraints, the project has been canceled. Due to budget constraints, funding is no longer available through account number 246441.970_0050, Public Safety account number 206-336-50.930_0020 and account number 246441.970_0020. A separate Township Board award was made to Northwest Consultants, Inc. and Milletics and

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Item 3.

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Associates, LLC for surveying and testing services for the Community Improvement Fund projects. The costs for inspection and testing were included as line items on the contractors bid. These awards will also need to be rescinded. Item 4. ZONING ORDINANCE AMENDMENT ­ SIGN REGULATIONS. (MSD) DELETED ADDITIONAL PUBLIC COMMENT: None OTHER: Supervisor LaJoy stated the next Board meeting will be Tuesday, October 12, 2010 at 7:00 p.m. at the Administration Building, First Floor, Board Room, 1150 Canton Center S., Canton, Michigan 48188. ADJOURN: Motion by Bennett, supported by Williams to adjourn at 8:15 p.m. Motion carried by all members present. _________________________________ Terry G. Bennett, Clerk

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Canton Township: Board of Trustees September 28, 2010 Meeting Minutes