BAY MILLS - The Bay Mills Executive Council met on Monday, Feb. 27 for a regularly scheduled board meeting. Chairman Jeffrey Parker was absent, so Vice Chairman Terry Carrick chaired the meeting.
Ray Baragwanath of Bay Mart approached the board for approval of his budget. He said that the sales figures had been hard to predict because the price of gas had been fluctuating so drastically, adding that in 2005 he overspent by $58,000.
Baragwanath said he tries hard to keep the gas prices competitive with the Sault's prices and in some instances actually loses money on gas sales. He estimated that tribal members account for 30 to 35 percent of all sales in the store, including consuming 30,000 gallons of gas per month.
Tribal Accountant Eric Hillman said that Bay Mart's security cameras have cut down on the amount of stuff disappearing from the store. He estimated that 3 to 4 percent of Bay Mart's inventory disappears monthly, whether it is stolen or is spoiled and has to be thrown out.
Baragwanath estimated that 90 percent of all "drive-offs" at the store were caught and those that were not caught were usually from out-of-state. After much discussion, the council approved Baragwanath's budget.
Vice Chairman Terry Carrick brought up the Intermediate Review Board, which they had discussed at the previous meeting. Carrick said after talking with Human Resources Director Kendal Perron he still has concerns about whether or not an employee is getting a chance to voice their concerns. He added that the IRB was established on a trial basis, but was never really addressed again for an adequate review. Carrick said he felt things should go back to the way they were, with employee grievances going to the Grievance Board for review, and no IRB. Secretary Richard LeBlanc said he agreed with Carrick and made a motion to dissolve the IRB, with the stipulation that the HR Director will decide whether or not an employee fits the requirements to take on a grievance. He added that all employees slated to meet with the IRB would go directly to the Grievance Board. The motion passed unanimously.
Tribal Attorney Candy Tierney approached the board for a vote on a resolution to recognize manufactured home status as real property upon affixation to trust land. Tierney said that Assistant Housing Director Gail Glezen had been working with Fanny Mae on commercial loans for manufactured homes. Tierney said that Michigan law allows for the lender to have the title for the home in their possession as collateral for the loan. Since Bay Mills does not have it in their tribal code, Tierney advised the council to accept the Michigan law to accept the manufactured homes as real estate.
She added that this was an agreed upon solution so tribal members could get financing on trust land for a manufactured home. The council approved the resolution.
Bay Mills Chief Financial Officer Mike Brooks approached the council with what he believed to be a good investment opportunity. Brooks said Antrim Shale of Gaylord, Mich., would be digging for shale gas reservoirs.
In shale gas reservoirs, natural gas is stored as a free gas within a system of natural fractures, as absorbed gas on organic material, or as free gas within the rock pores. Brooks said that the shale would be fractured and then the gas would be extracted, adding that it had a great rate of return at a very minimal risk.
However, Brooks said that the problem is not in finding the shale gas, but in producing an economically viable gas production rate. He said if the tribe invested, they would know by July if it was going to pay off, adding that the maximum investment would be $75,000. After a brief discussion, the council decided to table the matter for further review when Chairman Parker would be present.
In other business, the Executive Council set the next General Tribal Council meeting for Monday, April 10 at 6 p.m. at the Horizons Conference Center.
