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Leland Township to get $17,400 in utility settlement

The Leland Township Board approved a settlement agreement between the township and Consumers Energy that will put $17,400 in its fire and rescue department's coffers.

At a special meeting Tuesday morning, the board approved 4-0, with trustee Nick Lederle absent, a settlement agreement recommended by township attorney Martha Black with the utility over a civil suit filed in 86th District Court last spring to recover costs the township incurred while having personnel from the township on the scene of downed power lines in 2006. The township utilized a “cost recovery ordinance” the Township Board enacted in November 2006.

Under terms of the agreement, Consumers will pay the township $6,200 for costs it incurred in 2006, and $11,200 for similar costs in 2007. In exchange, the township will drop the civil suit. The township also agreed to charge $200 an hour for each hour township fire and rescue personnel are required to be at the scene of downed utility line that is off a county or state road, and $400 and hour for lines down over county or state roads.

Supervisor Harry Larkin said the township had sought recovery of $6,475 for five separate incidents in 2006. When the township sent the utility an invoice detailing the expense and its cost recovery ordinance in early 2007, Larkin said Consumers’ officials took no action. When the township filed the lawsuit in May 2007, the utility responded to the suit. In January 2008, Consumers officials met with Glen Arbor Township officials to discuss similar claims they had made under Glen Arbor’s own cost recovery ordinance, and the utility asked Leland to send representatives so they could work something out.

Larkin said the settlement is good for both sides since it establishes a better relationship with the utility company. Trustee Steve Plamondon said the township should also send a copy of the ordinance to Cherryland Electric Cooperative, just in case any of its power lines go down.

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