Annual State of the Township Address March 27, 2006

Kurt M. Kobiljak, Supervisor

As Township Supervisor, I am honored to present to you at this, the 29th Township Annual Meeting, the State of the Township Address. Historically, I never thought it necessary to place the address into formal text but this year I thought it would be helpful and simultaneously with you hearing my address we will be processing the same to the Ile Camera, those which subscribe to the Supervisor's E Update, as well as placing the text onto the Grosse Ile Web Site.

My address focuses on what has transpired over the last year and what we, the Board, will strive to accomplish in 2006. The address, however, will also discuss the barrage of fallacies residents have been subjected to over the last year and the realistic resolve that this Township Board possesses to move our Township forward.

If the projects which confronted the Township in 2005 would have evolved over an extended period of time, I am not sure that 2005 would have been any different than previous years. What this Board experienced in 2005, however, were major projects and programs which transpired all at one time. As with all projects, and the given prerogative of our residents, there were numerous critics of these projects who suggested that we had taken the wrong action, that we didn't act fast enough, that we spent too much money or it wasn't the will of the people. Even though I always respect differing opinions, I think that this Board has made the township more open to our residents than ever before via public forums, debates, and study sessions. More significantly, I am certain that this Board, management, staff, commissions and consultants have moved all our projects forward professionally and diligently even when faced with the toughest conditions and outside influences. Let me discuss four of these 2005 projects in detail.

First, the SSES project - the Sanitary Sewer Replacement project. As many recall this $42 million dollar 2000 project was voter approved by 60 % of Island residents. Even though there were critics of this bond a great majority of our residents realized the deficiencies of our sanitary sewer system and the fact that we were pumping our human waste into our waterways. As a result, in July of 2001, the remediation of our sewer system project commenced. In August of 2004 construction of this project slowed to a halt as a result of the negligence of our contractor. More importantly, during the "slowing down" of the project our contractor, when their equipment would become negligently stuck under ground, would back charge the Township $100,000 plus for each rescue shaft they would construct. It was clear to the Board that this bonded project had to come in on budget. This Board therefore had two options. First, they could allow the contractor to take advantage of the Township and put the project well over budget or the Township could draw a very realistic line in the sand. This Board chose the latter option. To that end I, Treasurer Raithel, Township Manager Dale Reaume, DPS Manager Barry Sedlock, Township Engineer Souheil Sabak met with the contractor and made it clear that we would not pay them for their negligence and that they essentially had two options - get off Grosse Ile or finish the project per the original specifications. Was the meeting intense? Absolutely. Did I and the others in the room understand the importance of this meeting both short term and long term? Absolutely. Not only did we realistically take this issue on behalf of our residents but we followed up this ultimatum with the filing of a lawsuit against the contractor related to its negligence and the liquidated damages owed to the Township for the delays in the completion of this project.

As a result of the resolve by the Township and the pending litigation, the contractor came back to the table and met our terms. To date the project is 80% complete and Township Engineers believe that the significant aspects of this project will be concluded in late 2006.

There is no doubt that this project has been inconvenient to our residents, but I am certain that upon completion the Island's infrastructure will properly handle the demands of our residents for many years to come.

Secondarily, the continued operation of Water's Edge has also been an example of the diligence and openness of this Board. Water's Edge was a failing enterprise program. The Board had two options - continue operating the site by having the Township's General Fund cover its operation or stop the site's financial bleeding. The Board chose the latter. It went through an immediate, intricate consolidation of the Recreation Department with the Water's Edge operation. Coupled with the consolidation in May of 2005, the Board asked the residents whether they wished to fund a new millage to help fund portions of the site through a .75 millage. Even though the millage failed, residents made it clear that even though they didn't want to fund the site, they didn't want the Township to sell the site either. With this in mind, the Board listened to the residents and recognized that it had to take drastic measures. These measures included amending the Water's Edge budget by reducing the operational costs of the site by $171,000 while still keeping the club operational through the 2005 summer season. It is through the amazing efforts of staff and management that with the close of this fiscal year Water's Edge, instead of encumbering the general fund, has finished in the black for the first time in five years.

Water's Edge is not out of the woods by any stretch of the imagination. We will continue to monitor costs. Even though we have had a tremendous membership drive in late 2005 and early 2006, we will have to generate a greater number of memberships this year to stay in the black. This season, however, for the first time ever, the Island will have a pool open to the public, as well as an aquatic director, under the guidance of Tim Rooney, who will create swim programs open to all Island residents. Finally, even though an arduous task, we also secured a well-known restaurateur for the site. We welcome Brian Sharkey, a graduate of Grosse Ile High School, to Water's Edge. This April 1st he and his wife will bring good food and spirits to the residents and members of the club. There is no doubt that 2006 is shaping up to be a tremendous year at Water's Edge.

Third, I doubt anybody has forgotten that trees at the airport were the hot issue during the summer months. The board unanimously determined to remove the trees on Round Island with the gracious support of the Ford Yacht Club. Presently the initial removal of trees has been concluded and as you will hear later on this evening, the continuation of the tree removal project will take the next steps toward completion. The trees, however, were not the real issue confronting the Board in relation to the Airport campus - the trees were merely a method to criticize the Board. The real issue confronting the Board was the long-term financial stability of the Township's Airport enterprise district. Since the Airport Industrial Park funds a majority of the airport operation, in early 2005 it was imperative that the Board design a system which would guarantee the long term economic viability of the entire campus. To that end, the Board transformed the Airport Commission into two separate distinct entities - first, the Airport Commerce Park Commission - a commission charged to create commerce at the campus and the second, the Airport Advisory Committee - a committee to oversee the safety and operation of the airfield.

The establishment of these new entities is just the first step. Ron Moran and the Airport Commerce Park Commission has a difficult challenge ahead of them. Little to no commerce has been generated at the airport commerce site over the last thirty years for a multitude of reasons. Their challenge became immediate just weeks after the commission was established when the Township lost one of its more significant tenants, and as a result, the airport budget saw a reduction of operating income by over $108,000. I wish Ron and his commission great success, for the financial future of the entire airport campus is in their hands.

Finally, 2005 can easily be summed up by a Toll Bridge, a County Bridge and an International Bridge. In 2005, we saw huge successes for our residents in relation to two bridge issues - the funding for the remediation of Wayne County Bridge and making sure that an International Bridge was not going to go "[Not] On, Over or Under" Grosse Ile. In relation to the third ongoing bridge issue, the condemnation of the Toll Bridge, this is a project which is still pending while we await word from the Court of Appeals.

In relation to the pending bridge successes, even though time has passed, who could forget the August 25th, 2005 Senate Transportation Meeting with MDOT Director Gloria Jeff in our Grosse Ile High School where our residents were able to vocalize their objection to a potential bridge spanning the Island. With the help of Senator Patterson, we were able to convene the first meeting of its kind on Grosse Ile and what amazed me, while sitting on the stage with the Senators, was being able to experience our residents coming out in a united force to protect their Island. It was truly inspiring and even though some time has passed, the success of this movement, in my mind, will never be forgotten.

In relation to the County Bridge, any Island resident which has had difficulty getting off or on the Island because of a County Bridge closure will understand how important it was that I traveled to Lansing, in cooperation with the County and the State, to finally receive funding so that Wayne County could finally remediate its bridge. Even though I had advocated the need to get the funding every year since being your Treasurer, the hard work and constant emphasis of fixing this bridge finally paid off. Since the announcement of the funding, the Township has worked with Wayne County officials and our Lansing leaders to determine how we can fund this project to commence in 2006. This again is no easy challenge but one which we must pursue as a result of the increased deterioration of the Wayne County Free Bridge.

Finally, one last major pending project - the Toll Bridge. Over the last weeks, I think the purpose of the former Township Board's actions in initiating a condemnation action against the owners of the bridge have come to greater light. What surprises me with this project, however, is that certain residents are content to scare residents by false statements and improper facts to support their argument against taking control of the bridge. The previous Board's desire to condemn the Toll Bridge was predicated upon three significant components. First, the July 2001 AtoFina chemical plant explosion evidenced our inability to effectively evacuate the Island in case of an emergency.

Secondarily, the Board had great insight in the inner dealings of Matty Maroun and his desire to enlarge the Riverview Trenton Railroad and to include the Toll Bridge either by way of purchase from Mr. Smoke or the condemnation through his railroad. And finally, the last major component recognized that the Township had little to no control on getting its residents off or on the Island via either of the two bridges, which service the Township.

The former Board, again, recognized the implications of this very serious issue. They knew there would be criticism; they know there would be legal, engineering, and financial fees, while also recognizing that the judicial process was not always quick. The past Board, and the present Board, however were and are committed to bringing this matter to a successful resolution. To do anything other than to acquire the bridge would be a failure by your Township government to be pre-emptive and prudent. At a minimum, in light of a faulty Wayne County Bridge and Matty Maroun, who will be increasing his railroad's presence by the installation of railroad spurs right near the Toll Bridge, this Board must guarantee that if your wife or child needs to get to the hospital, that it can guarantee that they will get to the hospital not by cooperating, not by politely asking, but by simply making it happen. Presently there is no such guarantee. Let me ask you the simple question - if it is determined that the County Bridge is beyond repair and needs greater remediation than what is proposed could the private owner of the bridge raise his tolls to $10 or close the bridge altogether - what would you do then? Or in the alternative, lets make the question a little more difficult: what would you do if Matty Maroun condemned or bought the Toll Bridge and shut it down and the only bridge which we had to service the Island was the County Bridge - what would you do to guarantee that your next door neighbor's daughter would be able to get to the hospital?

Recognize that this Board must contemplate every scenario - not just the one that fits a certain argument. My role, this Township Board's role, is to guarantee that these scenarios never occur.

To that end, this Board and I will continue to strive toward guaranteeing control over one of the two bridges which services this Island, not just in the short term but also in the long term. Even though a difficult issue and subject to criticism, it is imperative that we are preemptive when it relates to the safety and control of a road which links our Island to the mainland.

Moving forward are we at a cross roads on Grosse Ile? Are we living on Fantasy Island? Some may call it a fantasy, but to me, this Board, and a great majority of Island residents, it is extremely real. I most assuredly recognize that all municipalities are facing unique times. Grosse Ile is no exception. But the projects that I just highlighted evidence your Board taking on these difficult challenges diligently and with the best interest of all Island residents. The amount of time invested in these projects by Board members, managers, staff, consultants, commissioners and community volunteers is solely to bring the best result to the Township. If you were involved in these or other Township projects you know the simple goal is to make Grosse Ile a better place to live, recreate and operate your business. Let me give you some other examples:

1. Your Township is one of the most fiscally prudent communities in Michigan. You often hear about the financial woes of other communities. Local examples are numerous - Brownstown had to use $412,000 of their general fund to balance their budget, Canton Township $1,686,000, Gibraltar $160,393, Lincoln Park $1,776,260, Rockwood $395,436, Romulus $331,635, Southgate $164,975, Trenton $672,766 and Wyandotte had to use $283,706 of their general fund to balance their budget. Grosse Ile, unlike so many other communities, actually saw their general fund grow by approximately $26,000.

2. Your Township has one of the lower millage rates of any of the downriver communities. Presently the township's millage rate is at third lowest of the downriver communities with the highest millage rate belonging to Wyandotte and the lowest being Huron Township.

3. Your Township has the best Police Department in the State of Michigan. Consider being one of the safest communities in Michigan not just once but twice within the last ten years.

4. Your Township has an unique, efficient, on call Fire Department consisting solely of Grosse Ile Volunteers. There is nothing like this in Downriver. There is no better department in Michigan, or in my mind, the country.

5. You have one of the best school districts in Michigan with an administration and staff that puts its students first from the first day of school to the last. It has one of the only closed (no off island students) school districts in Downriver.

6. You have a community that looks relatively the same as it did ten years ago. Through the efforts of innovative planning and zoning, working cooperatively with commercial and residential builders, and an Open Space Program which recently passed another millage by more than 600 votes, Grosse Ile has remained intact while other communities has seen it landscape drastically modified so that it no longer looks like the community people initially moved to.

7. A housing market that has historically been strong. Even though the market may presently be slow, I think the market needs to be put into context. There are those in the community attempting to scare residents which are quoting that we have 400 homes for sale and 70 homes in foreclosure. Presently, as of 3/27/06 there were 191 homes and condominiums for sale and only 5 foreclosures occurred in 2005. The interesting component not mentioned by the naysayers is that in relation to house sales, in 2005, 191 units sold as compared to 152 in 2004 and 172 units in 2003. As a result in 2005 we saw an increase in sold units by over 25%.

8. You have a community where in 2005 union negotiations with both of the Township's bargaining units, POAM and AFSCME, were both settled professionally and amicably.

We will continue to move this Island forward by being fiscally prudent, maintaining our open spaces, expanding our fluctuating commerce concerns at the Airport and Water's Edge, reinvigorating the Downtown Development Authority (DDA) to stimulate growth in our business district, while constantly improving our infrastructure programs of road, sewers and water systems.

In closing, 2005 was filled with challenges like I have never seen on Grosse Ile in the forty years of living here, as well as a firm resolve by your Township Board that the path has been struck and the projects in place will move forward toward completion. There may be small or big bumps along the path but this Board is committed to bring these projects to final resolution in 2006. It will be an exciting, likely difficult, and most of all rewarding to see the Island become not just a better municipality but also a better community.

Thank you for taking the time to listen to this address - recognize that its intent is to memorialize just how very special this Island is not to just me but to the entire Township Board.