VILLAGE COUNCIL PROCEEDINGS
January 5th, 2009
The Lincoln Village Council met on Monday January 5th at 7 p.m. at the Village Hall. Meeting opened with The Pledge of Allegiance. Those present included; President Phil Jordan, Treasurer Mary Kossa, Clerk Linda Somers, Deputy Clerk/Treasurer Connie Stutzman and Council Members; Bonny Gauthier, Ron Kennard, Phil Naylor, Richard Somers and John Stutzman. Absent was Kristin Lask. Minutes of the December meeting were approved on a motion from Gauthier with support from Somers. Motion carried. Treasurer’s report was approved subject to audit on a motion from Gauthier with support from Stutzman. Carried.
Treasurer Kossa presented the Investment Policy for the Village to Council Members. A motion was made by Kennard to approve the Investment Policy for the Village of Lincoln for 2009. Somers offered support. Roll call vote was taken; Gauthier, Kennard, Naylor, Somers and Stutzman, all yea. Absent, Lask. Motion carried. The resolution follows:
VILLAGE OF LINCOLN
(To comply with Act 20 PA 1943, as amended)
Purpose: It is the policy of the Village of Lincoln to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow needs of the Village and comply with all state statues governing the investment of public funds.
Scope: This investment policy applies to all financial assets of the Village. These assets are accounted for in the various funds of the commission and include the general fund, special revenue funds, debt service funds and capital project funds, enterprise funds, internal service funds, trust and agency funds and any new fund established by the Village.
Objectives: The primary objectives, in priority order, of the Village’s investment activities shall be:
Safety – safety is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to insure the preservation of capital in the over portfolio.
Diversification – The investments will be diversified by security type and institution in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
Return on Investment – The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio.
Delegation of authority to Make Investments: Authority to manage the investment program is derived from the following: Village of Lincoln’s last investment resolution and by MCL 48.40 requiring the Village Treasurer to be the custodian of the commission’s funds. Managing responsibility for the investment program is hereby delegated to the Village Treasurer who shall establish written procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, cash purchases or delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, collateral/depository agreements and banking service contracts. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Village Treasurer. The Village Treasure shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.
In accordance with the Michigan Public Act 20 of the Public Acts of 1943, as amended, the surplus funds of Village of Lincoln may invest in the following:
(a) Bonds, securities, and other obligations of the United States of an agency or instrumentality of the United States
(b) Certificates of deposit, saving accounts, deposit accounts, or depository of a financial institution, but only if the financial institution is eligible to be a depository of funds belonging to the state under a law or rule of this state of the United States.
(c) Commercial paper rated at the time of purchase within the 2 highest classifications established by not less than 2 standard rating services and that matures not more than 270 days after the date of purchase.
(d) Repurchase agreements consisting of instruments listed in (a)
(e) Banker’s acceptances of United States banks.
(f) Mutual funds registered under the investment company act of 1940 maintain a $1.00 per share net asset value, and with to purchase only investment vehicles that are legal for direct investment by a public corporation.
(g) Obligations of this state or any of its political subdivisions that at the time of purchase are rated investment grade by not less than 1 standard rating service.
(h) Investment pools through an interlocal agreement under the urban cooperation act of 1967, (Ex Sess) PA 7, MCL 124.501 to 124.512
(i) Investment pools organized under the surplus funds investment pool act, 1982 PA 367, 129.111 to 129.118
Safekeeping and Custody: All security transactions, including collateral for repurchase agreements and financial institution deposits, entered into by the Village Treasurer may be on a cash basis or a delivery vs. payment basis as determined by the Village Treasurer. Securities may be held by a third party custodian designated by the Treasurer and evidenced by safekeeping receipts as determined the Treasurer.
Prudence: Investments shall be made with judgment and card, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
Motion to amend the Village of Lincoln Investment Resolution to include Alpena Alcona Area Credit Union and Northland Area Federal Credit Union to the depository list along with Huron Community Bank was made by Kennard with support from Stutzman. Motion carried.
Jeff Wilson attended the meeting to request use of the boat launch on Brownlee Lake for the Annual Winter Fest to be held on January 17th from noon to 4 p.m. Motion was made by Kennard to allow the Brownlee Lake association to use the boat launch on the above date. Stutzman offered support. Motion carried.
Brian Somers Fire Chief gave an update of activities in the Fire Department and First Responders. He stated that Glenn MacNeill retired officially today after 50 years of service with the Fire Department. Brian stated that they are working on job descriptions and hiring procedures for both departments. The auxiliary members are working on ideas for fundraisers. A Human Resource meeting has been scheduled for January 12th at 7 p.m. Kennard asked about the status of fire contracts with surrounding townships. Those contracts will be sent out within the next month. Kennard stated that grant funding from the Michigan Department of Natural Resources did not come through this year for us. He noted that there are some areas that we need to address before requesting funding in the future. A meeting will be held with Wilcox Engineering to discuss reapplication for grant funding.
In new business Kennard asked about repairing flower boxes before spring. Jordan suggested resealing the street signs at the same time. Kennard suggested having a contract drafted by the Village Attorney for use for Village employees. Somers needs 2 new batteries for the tractor. Discussion on the well system for the Maintenance Building was held. Bids for replacement of the system will be sought. Somers and Jordan stated that Viking Energy has helped us move snow twice in recent weeks. Council members ex0pressed their thanks to those who helped from Viking.
President Jordan gave his report. Jordan, John Stutzman and Mary Kossa will meet on Wednesday morning to discuss Capital Outlay plans for replacement of equipment for the Village. Jordan gave update on his meeting with Bruce Soloway regarding a bio-diesel / crushing plant. Jordan suggests holding a meeting with the group as soon as possible. Tentative date has been set for January 15th at 6 p.m. Jordan stated that we still need another person to serve on the planning committee. He asked about whether there is any interest in being part of the Quilt Trail for Alcona County. Jordan will check into it further and report back at the next meeting. President Jordan stated that he would like each Council Member to bring something to the text meeting that they would like to work on in the coming year. September meeting date needs to be changed because of the Labor Day Holiday. A motion was made by Kennard with support from Stutzman to change the meeting date to September 1st. Motion carried. Motion was made by Kennard to change the garbage dumpster pickup to every other week from September to June. Gauthier offered support. Motion carried. Jordan stated that he would like to put together a mowing proposal to put out for bids. Ron and will Dick will work with President Jordan to put something together. Discussion was held regarding possible violations to Village ordinances regarding businesses and proposed changes that may be requested at a later date by the property owners.
Individual reports were given by Council members. Kennard stated that he would like to consider replacing the ramp at the boat launch this year. A permit needs to be obtained before anything can be done. Gauthier will be looking into replacing the docks at Brownlee Lake.
Jeff Wilson thanked Dick Somers and Trevor MacNeill for the excellent job they’ve been doing with the snow removal this year. Thanks goes to Ron Kennard for all the work he’s done on the grant application.
Motion was made by Gauthier with support from Kennard to amend the budget. To take $500.00 from zoning to miscellaneous under Council. To take $500.00 from Hall utilities to hall maintenance, take $2000.00 from Fire Department Salaries to First Responder Salaries and to take $175.00 from Fire Department Social Security to First Responders Social Security. Carried. Motion to pay the bills as presented was made by Gauthier with support from Somers. Carried. Motion to adjourn was made by Gauthier with support from Kennard. Motion Carried.
Linda K. Somers