Village of Bear Lake, Wednesday February 21, 2018 Council Meeting

Conference Call-In to listen to monthly council meetings can be done by calling 1.302.202.1107, Conference code 149002.  Note:  a charge from your phone carrier could apply so we suggest you use either Google or Skype. If you would like to submit Public Comment contact the Village.

Proposed Agenda February 2018

Unapproved Minutes January 17, 2018 (1)

Budget work session Feb 7 2018 unapproved

{Audio recording here}

Proposed 2018-2019 Budget- unapproved


Village of Bear Lake Council Meeting

February 21, 2018

7 p.m. – Village Office



• Additions

PUBLIC COMMENT: Any agenda item ONLY (two (2)-minute maximum) Note: Members of the public will speak only when recognized by the chair person.


Email from Kris Buckner, Bear Lake Promoters regarding Bear Lake Days – road closures



Regular Meeting December 13, 2017

Special Meeting Budget Work Session 2018-2019 February 7, 2018



• Acceptance of Treasurer’s Report

• Amendments:




Park Manager Report


Water Well update
Water Ordinance update
Maintenance Building update

Blight Enforcement Officer report:






AD HOC COMMITTEE: Policy, Resolution & Ordinance Committee – Clerk McPherson – no report

Clerk & Treasurer appointment – August
Mass Gathering Ordinance – follow-up

Pat Bently – DPW building, Saw grant and canoe/kayak launch

  • (DPW) Maintenance Manager wage increase
  • (DPW employee) Maintenance worker wage increase & minimum wage

Follow up on items from December’s council meeting:

PUBLIC COMMENT: General Time – Any Village-related item (two (2)-minute maximum) Note: Members of the public will speak only when recognized by the chair person.

Items on agenda or not listed


• Community dinner at Bear Lake United Methodist Church

C.R.A.S.E. – March 10 at 11a at Bear Lake High School.



January 2018

FUND Equipment Rental 1/5/2018 1/12/2018 1/19/2018 1/26/2018


Water 591-558-943 271.44 532.44 219.24 647.28 1670.4
Major 202-463-943 1,309.43 1,122.19 775.62 446.16 3653.4
Minor 203-463-943 180.21 878 775.62 446.16 2279.99
TOTALS 1761.08 2532.63 1770.48 1539.6 7603.79
FUND Wage Transfer
Water 591-000-702 1,398.00
Water-treas 591-000-702 700
Taxes 591-000-702 160.5
Park 531-000-702 26
Taxes 531-000-702 1.99
Major 202-463-702 754
Street Admin 202-463-702 0
Taxes 202-463-702 57.68
Minor 203-463-702 710.75
Street Admin 203-463-702 0
Taxes 203-463-702 54.37
TOTAL 3,863.29

Errors and Omissions 2

A past subscriber was a Certified Public accountant who was previously employed by the State of Michigan Department of Treasury.

In prior Audits the Village has been advised in the strongest possible terms to maintain a separation of duties and financial access.
The Clerk keeps the books and accounts. The Treasurer receives, accounts for and disperses approved funds. Each maintains separate spreadsheets which should match independently. See Page 18 of the attached Michigan Municipal League Handbook for Village Officials
Bank Reconciliation
All bank accounts must be reconciled to the local unit accounting records monthly. The Clerk’s records must agree with or reconcile to the Treasurer’s and the bank’s records. A reconciliation sheet should be prepared in duplicate for each month with one copy for the Clerk and one copy for the Treasurer. Canceled checks are to be filed with the bank statement to which they apply.
In addition – we note in the June meeting an authorization for Trustee Schroeder to be a signatory on checks? This is not permitted under both the Uniform Accounting Procedures and the General Law Village Act :
● Dual signatures are required for all checking accounts (except the separate tax collection checking account). The dual signatures MUST be the clerk (or deputy clerk) and the treasurer (or deputy treasurer).
Current FY To Date spreadsheets should have been presented for both the Budget meeting and to approve amendments at all Council meetings.
The financial advisor compares the two reports as being the difference in knowing only what is in a current checking account without taking into account a) how long those funds must cover expenses (in a unit of government this is from one tax receipt year to the next) and b) how much is actually ‘unencumbered’ i.e how much has been committed as a future debit.
In response to a request for a current financial report the following was received.


The following was adopted at the March Village Council Meeting:

Motion to adopt Resolution 2017-3, Support of The Village of Bear Lake submission of application to the Michigan Natural Resource Trust Fund for Development of a universally accessible canoe/kayak floating dock, and fishing pier & other amenities at Hopkins Park by Bass, seconded by McPherson. Motion carried.

Aye: Bass, McPherson, Johnson, Schroeder, Bair

Nay: None

Absent: Ronning



WHEREAS, the Village of Bear Lake supports the submission of an application titled, “Hopkins Park Development” to the Michigan Natural Resources Trust Fund for development of a universally accessible canoe/kayak launch, fishing pier, floating dock, restrooms, ADA parking and other amenities at Hopkins Park; and,

WHEREAS, the proposed application is supported by the Community’s 5-Year Approved Parks and Recreation Plan; and,

WHEREAS, the Village of Bear Lake has made a financial commitment to the project in the amount of $49,200.00 matching funds, in cash and/or force account; and,

WHERAS, Bear Lake Township has made a financial commitment to the project in the amount of $49,200.00 matching funds, in cash and/or force account; and,

NOW THEREFORE, BE IT RESOLVED that the Village of Bear Lake hereby authorizes submission of a Michigan Natural Resources Trust Fund Application for $295,100.00, and further resolves to make available its financial obligation amount of $98,375 (25%) of a total $393,500 project cost, during the 2017-2018 fiscal year.





I HEREBY CERTIFY, that the foregoing is a Resolution duly made and passed by the Village of Bear Lake at their regular meeting held on March 15,2017, at 7 p.m. in the Bear Lake Village Hall, with a quorum present.




THIS AGREEMENT is made to be effective this day of , 2017, between the Village of Bear Lake, a Michigan general law village, whose address is 12376 Virginia Street, P.O. Box 175, Bear Lake, Michigan 49614 (the “Village”) and Bear Lake Township, a Michigan general law township, whose address is 7771 Lake Street, P.O. Box 187, Bear Lake, Michigan 49614 (the “Township”).


A. The Village is the applicant for a Michigan Natural Resources Trust Fund Grant (the “Trust Fund Grant”) (Grant No. TF17-0168), entitled “Hopkins ParkDevelopment” in the amount of $295,100 for the purpose of developing the following amenities within Hopkins Park: (1) a universally accessiblecanoe/kayak launch, (2) a fishing pier, (3) restrooms, (4) parking facilities in compliance with the Americans with Disabilities Act, and (5) other amenities (the“Park Project”).

B. The parties desire to work cooperatively to support the development and maintenance of the Park Project as a regional recreational and economic asset under the terms and conditions of this Agreement.

C. The parties, therefore, desire to specify their respective rights and obligations concerning the administration of the Trust Fund Grant and the development and maintenance of the Park Project in this Agreement.


NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties hereby agree as follows:

  1. Contingencies; Termination. This Agreement is expressly contingent on any of the following:

a. The full and complete funding of the Trust Fund Grant by the Michigan Legislature in an amount acceptable to the parties.

b. The actual payment of the Trust Fund Grant matching funds by each party as specified in this Agreement.


c. The parties’ agreement in writing on the final development plans for the Park Project.

d. The parties’ agreement in writing on the final construction costs for the Park Project.

In the event any of the above contingencies fail, then either party may terminate this Agreement upon seven (7) days written notice to the other party.

  1. Utilization of Trust Fund Grant. The Village, as the Trust Fund Grant applicant, shall be responsible for compliance with all requirements of the Trust Fund Grant and shall use its best efforts to maximize the amount of grant funds that can be used for construction costs for the Park Project.

  2. Matching Funds. Each party shall be responsible for paying FIFTY PERCENT (50%) of the Trust Fund Grant matching funds requirement. Currently, the matching funds requirement is $98,366.00, with each party contributing $49,200.00. Each party may contribute its matching funds requirement by cash and/or in-kind contributions that comply with all requirements of the Trust Fund Grant regulations. In the event third parties make contributions toward the matching funds requirement, then all such contributions shall be allocated equally between the parties.

  3. Final Park Project Development Plans. The parties have agreed upon preliminary development plans for the Park Project, which were included in the Trust Fund Grant application. In the event the Trust Fund Grant is awarded by the Michigan Natural Resources Trust Fund, the parties hereby agree that they will negotiate in good faith to approve final development plans for the Park Project. Any such agreement shall be in writing and approved by the legislative body of each party.

  4. Park Project Construction and Oversight. The Village in conjunction with its engineering consultants shall be responsible for the development of the bid specifications for the Park Project. Once construction bids are opened the Village shall send the Township a copy of all the bids. The parties hereby agree that they will negotiate in good faith to approve the best construction bid and costs for the Park Project. Any such agreement shall be in writing and approved by the legislative body of each party. Following the approval of the construction bid and costs by the parties, the Village shall formally the award the construction contract for the Park Project to the successful bidder. The Village shall be responsible for the oversight and administration of the Park Project construction in compliance with the terms of the Trust Fund Grant funding requirements.

  5. Excess Park Project Costs. In the event that the total costs for the Park Project exceed the sum of (1) the amount of money actually covered by the Trust Fund Grant, (2) any matching funds, and (3) any financial contributions to the Park Project from third parties, then the parties hereby agree that they shall contribute equally to pay any such excess costs.

  6. Park Project Maintenance. After construction of the Park Project the Village shall be responsible for the actual maintenance and repair of the Park Project. The Village shall be financially responsible for ONE HUNDRED PERCENT (100%) of the maintenance and repair costs for the fishing pier. The Township shall pay to the Village ONE HUNDRED PERCENT (100%) of the maintenance and repair costs for the canoe/kayak launch and shall pay to the Village FIFTY PERCENT (50%) of the maintenance and repair costs for the restrooms and parking facilities. The Village shall annually, on the date mutually agreeable to the parties, send the Township a written, itemized statement of the actual costs incurred by the Village in the preceding year for the maintenance and repair costs for the canoe/kayak launch, restrooms and parking facilities. The Township shall pay the Village for its share of these costs within forty-five (45) days of the date of the written statement.

  7. Indemnification. Each party shall indemnify and hold harmless the other party, its public officials, officers, successors, assigns, agents, servants, employees, and insurance companies from any damages, legal fees or expenses, awards, demands, rights, causes of action, including but not limited to, causes of action for indemnification, or recovery of any liens of any kind or nature, losses, claims and actions which may, do, or shall arise out of or grow out of that party’s duties and obligations contained in this Agreement. This provision shall apply to any and all claims by either party, its public officials, officers, agents, servants, employees, successors or assigns or to any and all claims by any third party.

  8. Notice. All notices permitted or required hereunder shall be in writing and either mailed or personally delivered to the address above stated addressed to the Village Clerk on behalf of the Village and addressed to the Township Clerk on behalf of the Township. If by mail, notice shall be deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested, and addressed to the party to whom notice is directed. If by personal delivery, notice shall be personally delivered to the party to whom notice is directed.

  9. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the enforceability or validity of remaining provisions and this Agreement shall be construed in all respects as if any invalid or unenforceable provision were omitted.

  10. Waiver. No term, condition, covenant or provision contained in this Agreement may be waived except in a writing signed by the waiving party. No oral statements, course of conduct or course of dealing shall be deemed a waiver.

No waiver by any party hereto of any violation or breach of this Agreement shall be deemed or construed to constitute a waiver of any other violation or breach, or as a continuing waiver of any violation or breach.

  1. Applicable Law. This Agreement shall be interpreted, construed and governed according to the laws of the State of Michigan.

  2. Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed an original but all of which shall constitute one instrument.

  3. Amendments. This Agreement may be amended by the mutual consent of both parties that is documented in writing and signed by both parties.

  4. Entire Agreement. The Agreement contains the entire Agreement of the parties hereto and supersedes all prior agreements and understandings, oral or written, if any, between the parties.

  5. Assignment. This Agreement may not be assigned by either party, in whole or in part.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be

effective on the day and year first above written.

VILLAGE OF BEAR LAKE, a Michigan general law township

By: _________________________________________

Jeffery Bair Its: President

Dated: ________________________

BEAR LAKE TOWNSHIP, a Michigan general law township

By: ________________________________________

Jeffery Harthun Its: Supervisor

Dated: ________________________

February 15 Village of Bear Lake Meeting. Notes and Audio

On behalf of residents and property owners unable to attend in person Bear Lake News requested access via speakerphone as the Village no longer records its meetings. A call in number was provided at 12.59pm Wednesday February 15, 2017.

The following amalgamation of requested information to be addressed at the Budget Hearing was sent by return email at 1.02pm

Good morning,

Respectfully, here are the combined questions submitted to us which we are asking be addressed at this evening’s FY2017-18 Budget Hearing.
1. If deficits are noted at the close of the current FY in any Fund, and it becomes necessary to use reserve savings to make up the difference – has that been carried over to the FY17-18 spreadsheets
General Fund:
1. Has the Council discussed the increasing % of Property Tax income that now goes to cover wages and salaries? $56k in income v $76,700 in expenditures. Can you list the current combined payment to the Village President that comes from all sources.
2. How many part time employees does the Village currently have, contractual or employee, at what rate of pay and what duties do they perform. Is there now a requirement for 2 individuals to be present when snow plowing Village streets.
3. A line item of $1000 has been created for ‘Election’ – is the Village anticipating a need to reimburse the Township for election services this year.
4. Public Utilities – at $17,000 for which services and locations is this anticipated.
5. $5800 is budgeted. Actual expenditures on tree damage this current year is over $12,000, with trees also being listed in both Minor and Major Funds. When tree invoices are paid is it noted where the location is to comply with State regulation.
Major and Minor Streets
1. With action pending at the State level to eliminate State Income tax does the Village have any reserve funds or plan to express it’s opposition to such action.
1. if the proposal is to eliminate several prime Park lots – what steps have been considered to explain the increase in rental income (to $38k when actual rent income  is listed at $33,360)
2. $10k is listed as Salaries and Wages – can you elaborate please which employees this relates to and where the corresponding Park line item for Withholding appears (actual expenditure is currently $14,565) During summer 2016 the Village employed at least 2 additional part time employees – does this budget anticipate requiring the same number in 2017, at what rate of pay, for how many hours, and are they classed as contractual or an employee.
3. Public utilities are listed at $12k – actual expenditures in FY16-17 is overdrawn by $2,810 to $10,360. What steps are being taken to do an energy audit in the Park to bring those costs down.
1. An increase in water bill revenue is listed at $100k ( $70k in FY16-17). The discussion and approval of an increase in water rates has not taken place yet, what is the anticipated monthly/quarterly increase.
2. Salaries and Wages have increased from $2,500 to $10,000 – for which employees is this increase necessary
3. Sewer Project – $3,500 – at which public meeting was the need to allocate this amount convened and for what purpose
4. Professional Services at $14k – current FY16-17 Budget is for $20k with actual expenditures at $22,806. How is the reduction in expenditures anticipated when the current agreement with Mead Hunt is as follows:

Weekly pricing is on a Time and Materials (T&M) basis at $50.00 hour with a minimum of 4 hours plus Water Sample Analysis as required by the MDEQ. All water samples analyzed will be at the Villages expense with invoices billed on a T&M basis. Call-outs and Extra Time are at $65/hour with authorization only by the designated representative of the Village of Bear Lake.

Weekly site visit, well house/wellhead inspection, chlorine application and distribution system residuals monitoring, hands-on Village employee training and water sample collection and delivery to the lab, minimum of $200.00 per visit.

Will the Village have a fully certified water system operator on staff this year?

5. Bond payment has increased from $10k to $25k – Bond Interest increased from $2,200 to $14k.
Please explain.
On behalf of residents we appreciate the work you do and trust you agree that transparency and fiscal responsibility is essential to establish trust.
Kind regards,
Bear Lake News
2 independent recordings were made for publication.

Village of Bear Lake – October Finance Reports

As noted – these were not presented at the October Council Meeting. They are provided here via a FOIA request in both PDF and Excel format – the mark up colors are from an independent accounting review.



And for comparison here are the sheets from September.

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Village Council meets 7pm June 15, 2016

2016-2017 Budget spreadsheet

Michigan Department of Treasury Village Audit Filings.

The Village has received a letter of non compliance for filing the FY2014-15 Audit more 6 months past due.

May 25, 2016: Thank you for submitting a qualifying statement for Bear Lake Village to the Michigan Department of Treasury on May 24, 2016. Based upon the information provided in the qualifying statement, we have determined that Bear Lake Village is not in material compliance with the following criteria as identified in section 303(3) of Public Act 34 of 2001:

 Subsection [d] the municipality has not filed its most recent audit report with the department within 6 months from the end of the fiscal year of the municipality.

Therefore, Bear Lake Village is not authorized to issue municipal securities under this act without further approval from the Department. You may request reconsideration of this denial or you may request prior approval from the Department for each municipal security that you issue until you are eligible to submit your next qualifying statement.

2015 Audit

Refer to Pages 44-46

All Audits from 2004 to date are available from:
Michigan Department of Treasury Village Audit Filings.

Enter: County, Village, leave Year blank and leave Select Document Type.