2010 Annual Clerk’s Report

to the

Village Council

March 1^st, 2009 to February 28^th, 2010

Introduction

Fiscal Year 2009-2010 was another busy year for the Village Council. Although shrinking state revenues forced municipal governments to pinch pennies, the Village accomplished many worthwhile goals through creative use of its resources. The Village continued to be successful in finding alternative funding sources to address some needed infrastructure updates and hopes to acquire even more during the coming fiscal year.

Many goals outlined in last year’s Clerk’s report were also reached. Administratively, a number of ordinance revisions and additions were drafted, debated and passed by the Council. Unwritten Village policies were defined and details were drafted and approved as an effort was directed towards clearing up often-blurry fiscal policies. Clear, distinct rules for spending authorization, investment procedures and employee conduct will serve the Council and the administration well moving forward.

In addition, several long-term, larger projects discussed in last year’s report continue to be reviewed. These projects may at times seem a little out-of-reach as they typically require much larger investments. But those projects also require much more advanced planning to attract funding so any work we can do towards presenting a complete and well thought out plan now will pay off later.

Village Council Resolutions

• Resolution to pursue gathering information for possible annexation of property south of the Village owned by Louis Meneguzzo.
• Resolution to apply for grant funding to the Americana Foundation for $30,150 for replacing windows on the 2^nd floor of the Village Hall.
• Resolution to adopt draft presentation of Ordinance Series 3000, Chapter 3001, Parks. This adoption supersedes all preceding Ordinance provisions within this chapter.
• Resolution to support the inaugural running of a 5K/10K event within the Village.
• Resolution in support of a reciprocal agreement with Torch Lake Township whereby the Lake Linden Police will periodically patrol and monitor park and boat launch facilities in Hubbell/Tamarack in exchange for the Bootjack First Responders answering callouts within the Village limits.
• Resolution to adopt a comprehensive Recreation Plan (2009-2014) for the Village to guide Council efforts and programs related to recreational facilities and projects.
• Resolution to approve submission of a bid proposal to Torch Lake and Osceola Townships to provide water for the proposed new water system planned by the two governing bodies.
• Resolution to bid out surplus equipment items no longer used or usable by the Village.
• Resolution to adopt tax rate of 15.6188 mils; General – 10.2622, Streets – 4.1066, Sanitation – 1.25.
• Resolution to approve street dance request for carry-out liquor and street closing.
• Resolution to approve renewing the annual MDOT permit for maintenance on the M-26 trunkline.
• Resolution to approve a FEMA grant application submitted by the Lake Linden Fire Department for a new fire station.
• Resolution approving a deficit reduction plan for the Municipal Street Fund under which 2009 tax monies paid into the fund would eliminate deficit by the end of July.
• Resolution to adopt the draft presentation of Ordinance Series 9000, Chapter 9011, Animals. Under this provision pets in the Village must be leashed at all times and owners must clean up after their pets while walking them within the village.
• Resolution to repeal Ordinance Series 4000, Chapter 4050, Sewers, which predates the creation of the Torch Lake Area Sewage Authority and was no longer valid.
• Resolution extending the agreement between the village and the METRO Authority, a state entity that collects and disburses utility company fees for using right-of-ways for transmission lines within municipalities
• Resolution to approve the submission of a grant through the COPS program (Community-Oriented Policing). The grant was for $210,000.
• Resolution to approve the liquor license application for De la Terre.
• Four resolutions to adopt the following policies: Fiscal/Purchasing Policy, Investment Policy, Gift Policy, and Conflict of Interest policy.
• Resolution to adopt a draft presentation of Ordinance Series 9000, Chapter 9027, Open Fires. This ordinance sets restrictions on the types and locations of fires within the Village limits.
• Resolution to approve a draft presentation of Ordinance Series 9000, Chapter 9028, Outdoor Wood Furnaces, which governs the use of such devices within the Village limits.
• Resolution to adopt draft presentation of Ordinance Series 1000, Chapter 1200, Youth council, which establishes a Board comprised of students from the Lake Linden-Hubbell Scholl to act as a liaison between the Village Council and the student body to express their ideas and concerns.
• Resolution to approve a draft presentation of a new plowing policy as drafted by President Fisher.
• Resolution to approve the application for a grant through the Great Lakes Restoration Initiative for $243,000 to reshape and pave areas in the park along the shoreline to prevent runoff.
• Resolution to proceed with expansion of the DDA District to include 2 blocks of 9^th Street between Calumet Street and Gregory Street.
• Resolution to approve the application for an Infrastructure Enhancement Grant to continue updates and hydrants
• Resolution approving the inaugural members of the President’s Youth Council. They are: Bryce Audette, Curtis Audette, Megan Budweg, Nick Monette and Kimberley Outinen.

Finance

• In June the State of Michigan announced an 11% cut in statutory revenue sharing (Revenue sharing comes in two parts; constitutional-set by the State Constitution and not changeable by legislature, and Statutory- Set by the legislature annually and changeable by amendment of the State House and Senate).This represented an overall cut of about 5-6%, or almost $7,000.
• Accrued PTO was again decreased through payouts and the use of more PTO by full-time employees. The liability was decreased by $3,200.
• Another payment on the line of credit, taken when our budget troubles first began, was made in the amount of $6,250. Current balance: $6,250.
• In July, the Village received a property tax bill from Torch Lake Township for the property surrounding the Sportsman’s Club on the Rice Lake Rd. The bills, which exceeded $6,000, were the result of a re-classification under the Torch Lake Township re-assessment, and have never before been received. A Board of Review decision to lower the taxable values slightly was an insignificant change and a solution will be sought before the Michigan Tax tribunal in July of this year.
• In June the Council once again agreed to levy the maximum tax allowable under the Headlee rollback.  Though rates were the same as the preceding year revenue increased by about $6,000 because of a slight increase in taxable values throughout the Village. The Village of Lake Linden has never had a millage election.
• Water rates were raised and effective on the March 1^st billing. This added an additional $7,000 in revenue for the year. The Water Bond payment for 2010 is the largest of the 40-year amortization (a little over $59,000).
• One lot was sold in the Sibilsky Acres II plat. Robert & Judy Erickson have a new home there already, the second in the Sibilsky Acres II plat.
• The State of Michigan required a deficit-reduction plan for the Municipal Street fund because it overspent in the preceding fiscal year. The plan, which merely pointed out that the tax revenue soon to be deposited into the fund would remove the deficit, was submitted to and accepted by, the State in August.
• The general fund ended the fiscal year owing many of the other funds. The largest portion is owed to the Major Streets fund in the amount of almost $20,000. The problem stems from 2006-07 when the general fund was routinely borrowing from the other funds to make payroll. Upon the conclusion of the 2009-10 audit, the due-to and due-froms between the funds will be addressed. It is thought that after everything has been reconciled a debt of about $10,000 will still remain.
• New water-billing software was purchased and put into service with the January 2010 billing cycle. The program, from BS & A, is the most widely used commercial product in state municipal systems. The software and training combined were $7,995 and the billing was deferred over the course of two years

Governmental

• Elections will be held in November for Village Council positions. The seats currently held by Mark Frohmader, Brett Hamlin and James Frendewey will be contested as well as the Village President.
• At-will employment agreements with the Village Clerk and Treasurer expire in November of this year. The terms of those agreements are four years.
• The Village Council, through passage of an administrative ordinance, created the inaugural President’s Youth Council. This Council, which consists of students from the Lake Linden-Hubbell High School appointed by the Village Council, is assigned the task of acting as a liaison between the student body and the Village Council to address ongoing concerns of the students. After getting started well into the school year, the first year was largely spent getting the group together and getting the students brought up to speed on many of the Village’s ideas and projects. It is hoped that as the group moves ahead and as some members are retained year-to-year, the focus of the group will be geared towards promoting and expressing their own ideas to the Village Council. 
• Two more Enterprise groups from Michigan Tech began work on projects being considered by the Village Council. One group developed a conceptual plan of a community teen center. This plan, together with input from the community and the Youth Council, could soon result in a feasible project plan which can be used to seek funding for such an idea. The second group began study of a possible recycling center/program within the village which resulted in a report that the Council can use to gather more information on this potential project.
• Fiscal policies were approved by the Council to formalize rules for Village officers dealing with public funds. A Purchasing/Fiscal Policy details how Village officials can approve expenditures and the appropriate procedures for emergency spending. A Prepaid Expense Policy and an Investment Policy outline procedures for those circumstances. A Gift Policy and Conflict of Interest Policy outline restrictions and guidelines for conduct of elected officials in maintaining the public trust. These procedures had long been “followed” but were not outlined in writing. They are now approved and available on the Village website.
• Lake Linden Housing Authority received $103,855 from the American Recovery & Reinvestment Act to be used for capital improvements.
• The creation of a new joint committee was discussed during the fiscal year. This committee would address issues pertaining to Calumet Street. Concerns regarding street lighting, sidewalks, holiday lighting, and others were to be discussed. As of now no members had as yet been identified.
• Discussion continued about the possibility of holding an annual meeting at which the Council would decide all rates, offices, committees, fees, etc. Although it was not done in 09-10 it is still a possibility in the near future.

Public Safety

• The new fiscal year began with a vacancy in the police department. Josh Peters was on the Village department for more than six years, the last two-and-a-half as chief.
• For the first time in several years the Village retained part-time officers throughout the winter months as added coverage for the department.
• The Lake Linden Volunteer Fire Department was awarded a grant for $66,000 from the Federal Emergency Management Agency (FEMA) for new turnout gear. The Village posted a 5% match of a little over $3,300 and the new equipment was purchased in September. Congratulations to the Fire Department on their success.
• In conjunction with the purchase of the new 2009 Dodge Nitro police vehicle, a new taser and handheld radar unit were also purchased using the 55% grant from Rural Development. The radar unit replaced a very old model and the department has never before had a taser.
• The fire department also applied to FEMA under a different program for funds to erect a new fire hall. The grant called for building a new facility near the Rustic Meadows building. Traverse Engineering provided the plans and assisted with the application.
• A reciprocal agreement was drafted between the Village and Torch Lake Township. In exchange for occasional patrol and review of the Park and pavilion/boat launch area in Torch Lake Twp. by the Village police, the Bootjack First Responders would continue to answer calls in the Village at no charge.

Infrastructure

• One of the most exciting recent developments for the village is the eventual construction of a new cell tower on Gregoire Rd. just outside of the Village. While the Village understands and sympathizes with the plight of the residents there who will be inconvenienced, the service is much more important to us than the eventual location of the tower. The Community Survey sent out last year showed that cell phone reception was one of the most important things on the minds of residents. The lack of service was hurting local property owners, who had difficulty renting to college students because of the poor service. It was hurting the Village’s ability to attract new business of any kind as the lifeblood of small businesses in this day and age is communications. Though the Village spent a lot of time working on attracting cell phone companies to the area this particular project was developed by Central States Tower, Inc. without Village involvement. So far Verizon Wireless is the only carrier leasing tower space but it is hoped that AT & T will sign on once the tower is constructed in early summer.
• In conjunction with the high school’s renovation project the Village Council was quickly persuaded to pave the block of 7^th Street between Calumet and Front alongside the High School building. It was actually paved twice as the first time an error was made in curb placement on the north side of the street. Afterward, a meeting with the contractor revealed that the minimum depth, according to specifications, was not met. After consulting with Village Engineer Dick Supina, a revised cost of $5,898 was negotiated and accepted.
• After selling a lot in Sibilsky Acres II to Robert and Judy Erickson arrangements were made with UPPCo and SemCo Gas Company to extend utilities to that parcel. These extensions did not solve longer-term issues of providing utilities for future sales within the plat and a plan is needed to determine that course.
• Discussions began with Osceola and Torch Lake Townships to provide them with a water source for their newly proposed water sytem. Michigan-American Water, the current provider, was also preparing proposals for this. Several types of proposal drafts resulted in three different options for calculating water costs; providing wholesale water “at the valve” into the Townships, providing water and billing services for those systems, and providing water, billing and operations and maintenance. It was finally determined to submit a bid on a “per thousand gallon” basis with details on transmission through Torch Lake to Osceola Township to be worked out later.
• After discussion with MDOT over two or three years, a project to pave the MDOT-approved Park & Ride lot near Rustic Meadows was completed. The lot, on the southeast side of the intersection of 4^th and Front Sts., was paved along with about 150 feet of 4^th Street to provide paved access and handicap-accessible parking. The lot paving was paid for by MDOT and the 150 feet of 4^th was done at a cost of about $3,800.

Public Works

• In November, a proposed sewage treatment facility project being developed by the North Houghton County Sewage Authority and U. P. Engineers & Architects was brought to light by a Village resident. The project was being constructed near the headwaters of Hamel’s Creek, which empties into the Traprock River only a few hundred yards from the Village wellfield. Contact was made with the Authority and UPEA to express concerns about the proposal. To date, final provisions have not yet been determined but it remains a focus for the water committee and Village Council.

• The Council approved the purchase of a utility van with a 29’ lift for $4,000. It has been invaluable for working on lights, decorations and flags along Calumet Street.
• An extremely mild winter meant that the wear and tear on Village equipment was kept to a minimum. Winter plowing operations all but ended during the last week of February.
• The coming year may mean an adjustment to the way the Sanitation fund operates. Our auditor has recommended that the garbage truck be moved from the General Fund to the sanitation fund. Since the use of the truck is solely in the sanitation fund it is supposed to be listed this way. Although the general fund will lose equipment rental revenue, it will benefit the General fund in the long term as maintenance and eventual replacement of the truck will be the responsibility of the sanitation fund.

Recreation

• After almost a year of re-drafting and reviewing, Trustee Hamlin submitted a final draft from the Zoning and Ordinance Task Force for a comprehensive overhaul of the Parks Ordinance. Series 3000, Chapter 3001 updated an antiquated version and was much more specific in addressing issues most often brought up by residents and park users.
• Through President Fisher’s tireless efforts the Village Council ratified a new 5-year Recreation Plan. The plan, which is effective until 2014, is essential in procuring grant funds for various projects in the park. Public feedback was sought for the draft which was finally approved in April. The document is available in the Village Clerk’s office and soon on the Village website.
• The Council debated putting up two rustic cabins in the Village campground. After some discussion it was decided to try to include students from the High School in different facets of the design, development and construction. Contact was made with Jason Erva, the instructor for those classes, and it was decided to delay construction until the spring of 2011 so that planning could be well developed.
• For the first full year slips were rented on a seasonal basis at the Village marina. Power pedestals have been added to almost half of the available slips and grant funds will be sought to reconstruct the boat launch area which has suffered from low lake levels over the past few years.

Grants

• Another grant was awarded by the Americana Foundation to the Village for purchasing and installing new windows on the second floor of the Village Hall building. $25,000, along with a match of about $8,000 from the Village, paid for eleven new windows in the tower, ballroom and fire department office. For the first time the Village worked with the Keweenaw Community Foundation on this grant. A new proposal was being considered for 2010 but had not yet been fully determined.
• The purchase and equipping of a new police vehicle was completed thanks to a $14,000 grant from Rural Development and an $11,500 match from the village. The 2005 police Explorer was sold to a department in Virginia on Ebay for $9,000 making the final cost for the Village about $2,500.
• Work continued with the Michigan State Housing Development Authority for a grant to either renovate or create rental units in the downtown area. Although the initial application did not receive funding the village had received strongly positive feedback from the Authority that funding in the near future looked very promising. The amount of potential grant money available was between $250,000 and $350,000.
• Two major grant applications were developed for programs bolstered by funds from the American Recovery & Reinvestment Act. The first through the CDBG ICE (Infrastructure Capacity Enhancement) program, was for $267,000 and included money for closing open ended water lines and adding fire hydrants on the Village System. The second was through the Great Lakes Restoration Initiative Program in the amount of $243,000. This was for the reshaping and paving of three parking lots in the Village recreation area. The ICE grant application was prepared by Traverse Engineering and the GLRI was prepared by OHM-Hitch Engineering Services.
• The Village Council approved an application through the COPS grant for one more full-time police officer. The grant, written in October, was not funded, but word has been received that a second round of funding would go out to those applicants who did not receive funding the last time.
• While the above-mentioned grants were foremost on the agenda of the Council, other opportunities were being developed for potential funding. Those included: Teen Center, marina and dock renovations, streetscape extension, recycling program/facility, streetlighting and others.

Community/Business

• This past year the Village received word from the federal government that the application for Lake Linden’s Downtown Historic District was approved. Thanks largely to a thesis written by Stephanie Atwood, the application passed the state review before being approved by Washington.  The designation means that property owners within the district can receive tax incentives and have access to other funding avenues if renovations to their buildings are geared towards a historic look. It is hoped that many owners there will take advantage of these opportunities. A detailed look at the District is available online at Wikipedia at the following link: http://en.wikipedia.org/wiki/Lake_Linden_Historic_District.
• One of the longest tenured businesses in the Village, the Lake’s Pharmacy, closed its doors in January of 2010. For decades it was housed in the LeBault Building (built in 1887) and became a fixture there for most of the twentieth Century. It is hoped that the new Portage Clinic on 9^th Street can soon include a pharmacy, as its original three-phase plan had called for.

• During the past summer, the Lake Linden-Hubbell High School underwent major renovations. A 3+ million dollar capital project included many updates to the interior of both buildings, a complete remodel of the track and football field facilities, a new paved parking lot, a student drop-off circle, and the rerouting of bus traffic around the campus. The Village Council agreed to repave a block of 7^th Street and to make a block of 6^th street one-way to accommodate the changes. Changes were all but completed during summer recess and the changes have had a positive effect on the traffic flow around the campus during busy times.
• After a painstakingly long rebuilding process, the only gas station in town was re-opened. More than two years after the fire that destroyed the Cenex Station, the business reopened as Morty’s Fresh-n-Easy. The new building was constructed with an eye towards a more classic, if not historic, stance and it’s comeback is welcomed by the Village Council.
• Louie’s Super Foods, the only grocery market in our community, added Shell fuel service over the past year as well. Business appears to be good and the community is enhanced by having two places to purchase gas for its residents.
• The first of several public hearings to attract Michigan State Housing Authority grant funding was held in September. More than 30 local property owners showed up to express interest, wowing MSHDA representatives and starting the ball rolling towards a hopefully successful proposal.
• Three longtime community figures retired during the past year:
• Randy Roberts, superintendent of the Lake Linden-Hubbell School District tendered his resignation. He was a teacher/administrator for almost 40 years and served the district and the community well for the last 14. He, along with his wife Gail, own the AllStyles Beauty Salon in town, as well.
• Joan Marcotte retired from the Lake Linden Housing Authority office after nearly 15 years. She was always a friendly and courteous face and will be missed by her fellow workers.
• Fran Bessner was the chief operator for the Torch Lake Area Sewage Authority Sewage System for more than 20 years. He was very easy to work with, amiable, and very knowledgeable. He has now begun his second career in town as the resident school crossing guard and has brought his pleasant, care-free personality to the students and residents there.
• The De La Terre Bistro, located on the corner of 9^th and Front Sts. In the Village, continued its preparations for opening in the early summer of 2010. Though a few setbacks were encountered, it seemed as though the opening would finally take place. The Village welcomes the new business and hopes the venture is a highly successful one.

Economic Development

• The Village Council has continued discussions about the possible annexation of the old Calumet & Hecla Power House south of the Village. Louis Meneguzzo, the property owner, approached the Council about this option in late 2008.  President Fisher conducted meetings on the subject with an eye toward getting the property, now in a derelict and environmentally contaminated state, back into clean and viable condition suitable for development. Although the Township and County representatives had originally indicated a willingness to work on the idea Mr. Meneguzzo has again approached the Village to see if any headway can be made.
• In November, the Village Council resolved to expand the Downtown Development Authority District to include the businesses on 9^th Street between Calumet Street and Gregory Street. This expansion would mean that all businesses in the contiguous downtown area would be included and be eligible for DDA benefits and programs.

Events

• The FIND IT HERE! Community rummage sale, held in May, was again a popular community attraction.  Several non-profit groups held benefit sales and pushed the number of sales in town to over 30 once again. Township residents also had sales so the total was probably over 40. 
• The MTU Mini Baja has become a staple event in the Village Park each February. Colleges from around the country now participate in this endurance event and dozens of student-built buggies compete in races and a “big-air” competition. This years’ excitement was enhanced by a much longer, “cross-country” track that wound it’s way up and down the hill near the campground. Spectators loved the event again and the Rockin’ Eagle radio station hosted the race.
• 2009 saw the first running of the Lake Linden 5k/10k race. Held in September, the race took its place in the regional event schedule by far exceeding participant expectations and smashing predictions of how it would fare. The organizers see nothing but growth ahead as the initial effort will allow them to work on things they should or could do to improve the event. The 2010 race will be held on Saturday, September 11^th.
• The 3^rd annual Renaissance Faire was held in the Village Park in August. Organizers hope to grow the event over the next few years by adding it to the circuit of events of this type throughout the Midwest. Organizer Brian Foreman said the number of vendors was a bit smaller but attendance seemed to increase over the preceding year.
• The Youth Council has introduced a few ideas for events to attract people of all ages to the Village. In the coming year attractions being considered are a regatta at the marina, concert series of local musicians, an auto show, and a BMX-style cross country race.
• The Knights of Columbus Fishing Derby was to be held in the park for the second year in a row. The first year’s event was a smashing success and the biggest fund-raiser of the year for the Knights.

Looking Ahead – Fiscal 2010-2011

2009-2010 was a year that many municipalities counted on higher-level government spending to trickle into their communities to provide relief for economic and infrastructure development. A year later the effect of that largess seems to be much less than hoped for by those same communities. The American Recovery & Reinvestment Act of 2009 resulted in a lot of time planning, developing and engineering large projects sometimes at a cost of overlooking or putting off smaller ones.

Financially, 2010-2011 looks to be a continuation of the previous fiscal years shrinking revenues. The biggest unanswered questions for municipal leaders remain just when the nation’s economy will begin to rebound and when the trend of shrinking revenues will be reversed, and what effect the new national health care plan will have on small businesses and their ability to continue providing benefits to their employees. Health coverage is the single largest line item in small-town budgets and will have a dramatic effect on how services will be delivered by rural communities.

Recreational facilities continue to be a priority for the Village and many new projects are being considered to improve and expand these areas. The Village Park in Lake Linden is nearly unmatched in communities of this size and is the jewel of our little town. Seeking alternative funding for these facilities will remain a high priority and will be guided by the newly-passed Recreation plan.

In 2010-11 I will have a list of priorities that are very similar to last year’s. Although great strides were made in codifying ordinances and policies, more needs to be done. This year, my goal is to accomplish the following:

· Finish drafting a comprehensive Employee Handbook. This is essential to operations in all departments and must be the “rule book” by which employees carry out their daily duties.

· Draft Red Flag Rules for Identity theft protection. The deadline for these rules has been extended a few times but we need to move on this quickly once a draft is presented.

· Formalize safety and maintenance protocols for the Village facilities, most importantly the recreational areas. This is strongly recommended by our insurance carrier

Another focus for me moving into the new fiscal year is to continue to improve inter-institutional communication between community-based Boards. The Village Council and Downtown Development Authority work somewhat closely because they share some members and physical space, but their members rarely meet or discuss ideas in person. The Lake Linden Housing Commission operates independently of the Council, but aside from the appointment of Housing Board members, communication between the members is rare. I have high hopes for the President’s Youth Council as well but there should be a more frequent communication between the school board and the Council as well. Perhaps the Youth Council can eventually fill in this gap.

                It may not be that those different boards will work together frequently but perhaps just in getting more information on what each Board is focusing on ideas can be shared and new projects can come to light.

Conclusion

This past fiscal year saw great progress on writing and rewriting ordinances and policies.  Further work is needed but the continuing effort will be well worthwhile.

Increasing requirements for documentation, justification, monitoring and compliance tax Village resources and expend great amounts of administrative manpower. Once again, Treasurer Jill DuMonthier has accepted more and more responsibilities and her contributions are vital to our day-to-day operations.

Jude Kalcich continues to go above and beyond to help with the administrative compliance requirements within the water system and other public works departments.

I look forward to the coming fiscal year. It will be a challenging one from a financial standpoint, but the work we are doing to move ahead can overcome those issues. Careful monitoring of the budgets should not preclude it from being a productive year.

If you have any questions or comments regarding the material in this report please feel free to contact the Village Clerk’s office at any time. This report is not intended to be a complete recitation of all issues covered by the Village and it’s Council throughout the fiscal year but is merely a summary of those things deemed worth inclusion by the Village Clerk.

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Robert A. Poirier, Village Clerk