OAKLEY, MI — The Village of Oakley Board of Trustees shut down the Oakley Police Department in a five-to-one vote after board members discussed whether it should operate without liability insurance.

After the vote Tuesday, Sept. 9, Oakley Police Department officers Don Simpson and Joaquin Guerrero left the meeting hall.

A resident asked Simpson to stop someone from swearing.

"I don't work here anymore," he replied.

The officers left in an Oakley Police Department car and did not stop to answer questions.

The vote happened as President Pro Tem Sue Dingo came to the final item on the agenda, asking for a motion to pay the bills. Trustee Dennis Bitterman interrupted.

"What are we going to do about those cops?" he asked.

"I make motion: We got no insurance. They shouldn't be operating with the liability they're creating."

The motion, clarified to mean the police department would be shut down until it has liability insurance, carried with Bitterman, Francis Koski, Norm Wolfe, John Lorencz and Richard Shuster voting for it and Dingo voting against.

"Until we have insurance," Lorencz said after casting his vote.

The meeting ended with several residents yelling, some swearing and storming out.

With the loss of the local department, the Saginaw County Sheriff's Department and Michigan State Police will continue to provide police coverage in the village.

The Saginaw News has published extensive articles beginning in March detailing the controversy in Oakley, a town of fewer than 300 people in southwest Saginaw County that has a police force including 100 reserve officers and about a dozen certified officers. The village was notified it would be dropped from its insurance coverage earlier this year.

The village's insurance carrier at the time, the Michigan Municipal League, cited the number of lawsuits filed against the village and concerns about the police department as reasons for terminating coverage as of July 1.

Oakley Chief of Police Robert Reznick took a second chief job in Jackson County's Waterloo Township in April and said he planned to do both chief jobs at the same time.

A discussion about liability coverage

Earlier in the meeting, Dingo said a new lawsuit filed against her and the village by village Trustee Francis Koski was the reason the village is not getting liability insurance for the police department, as she expected.

"We were within two days of having and securing police liability insurance, but due to Mr. Koski having to sue me this week...claiming I'm not supposed to be the president pro tem," she said, "the insurance company of course heard about it and said 'cha.'

"We were within two days of having insurance," Dingo said. "I'm sure you gentlemen are glad we lost it."

The village secured municipal insurance coverage on July 1. It does not cover the police department.

Dingo said all the work members of the village put in to ensure insurance for the department has been "thrown out the window."

Koski said, "You're looking at me personally?"

"I'm just looking at the room," Dingo said.

Bitterman asked how much liability insurance would have cost the village, and Dingo said she did not know.

"You're two days away from getting it and you didn't get a quote?" Bitterman said.

"No," Dingo said.

About 30 people sat in the audience, including three news reporters and two Oakley certified police officers, as Koski asked Lorencz to start a discussion about the police department operating without liability insurance.

"What do you want to see happen to this town?" Lorencz asked.

"Everybody needs to stop pointing fingers and we need to get this stuff sorted out," Wolfe said.

Koski expressed concerns for the taxpayers in the village because the department has been operating without liability insurance.

"Can you quit calling for a month and give the girls a chance?" Lorencz asked, explaining he believes other trustees have been calling insurers, leading to problems with the village securing the coverage.

Koski brought up the idea of having no police department in town and relying on the Saginaw County Sheriff's Department.

Chief Reznick did not attend the meeting.

Resident Ronaldo Rodriguez questioned if the department can function without insurance, raising his voice until Oakley Police Officer and Sergeant of Arms Don Simpson asked him to sit down and Dingo struck the gavel several times, calling for order.

"We can be self insured," Bolf, the clerk, said in response to the question.

During the discussion, Lorencz said this would be his last meeting and said he would like the new council, which will be elected in November, should make the decision.

As quickly as the discussion exploded about insurance issues, the board transitioned in to a discussion about power-washing playground equipment after neighborhood kids were seen pouring pop and syrup on it, according to a resident.

They then spoke about asking for volunteers for a Halloween party, minutes before Bitterman moved to shut down the department.

— Brad Devereaux is a public safety reporter for MLive/The Saginaw News. Follow him on Twitter, Facebook and Google+