Regular Council

AGENDA Regular Council Meeting 6:00 PM - Tuesday, November 17, 2020 Village Council Room Page CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL I. APPROVAL OF THE AGENDA a. II. CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine by the Village Council and shall be enacted by one motion. There will be no separate discussion of these items unless a trustee or citizen requests to do so, in which event the item shall be removed from the General Order of Business and considered in its normal sequence on the agenda. a. III. *ADOPTION OF MINUTES 4-7 a. Regular Council Meeting 11-2-2020 UA IV. PUBLIC COMMENT V. UNFINISHED BUSINESS Page 1 of 32 8 - 13 a. Rules of Procedure changes - final requests Council Rules of Procedure b. AMEDMA c. Mill Rd. Dam Project Update 14 d. Tree Removal Tree removal letter e. Garbage Truck Brakes f. Fleis & Vandenbrink Update/Zoom Meeting VI. NEW BUSINESS 15 - 29 a. Jones and Henry Final SAW Grant Report 20201028 Farwell AMP Draft Narrative Only 30 b. Resolution 2020-11 Resolution 2020-11 J&H CIP 31 c. Resolution 2020-12 Resolution 2020-12 J&H AMP Rate Methodology 32 d. Resolution 2020-13 Resolution 2020-13 J&H Asset Management Plan e. Park Incident VII. ADMINISTRATIVE REPORT a. Certified Payments update b. Audit update VIII. TREASURER REPORT IX. COMMITTEE REPORT a. PARKS AND REC a.1. Farmer Market Lights a.2. Lighted Parade and Holiday activities - Recommendations Page 2 of 32  a.3. Park Improvement Project update b. ZONING b.1. Complaint List b.2. Tree Ordinance b.3. Grease traps c. DPW c.1. Wellhouse door c.2. Salter c.3. Kubota d. PERSONNEL X. EXTENDED PUBLIC COMMENT XI. ADJOURNMENT NEXT REGULAR COUNCIL MEETING ON MONDAY, DECEMBER 7, 2020 Page 3 of 32  MINUTES Regular Council Meeting 6:00 PM - Monday, November 2, 2020 Village Council Room The Regular Council of the Village of Farwell was called to order on Monday, November 2, 2020, at 6:00 PM in the Village Council Room, with the following members present: PRESENT: Trustee Tracey Jackson, Trustee Allen Brewer, Trustee Linda Williams, Trustee Amanda Pfruender, President Gina Hamilton, Trustee Jeff Linton, and Trustee Shawn Burger EXCUSED: I. APPROVAL OF THE AGENDA a. Trustee Tracey Jackson made a motion to approve the agenda with adding item c.2. under Committee Report-DPW, splitting item a under Unfinished Business into two separate items a and h, and including additional documentation to item d under New Business Trustee Linda Williams seconded the motion. Motion Carried II. CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine by the Village Council and shall be enacted by one motion. There will be no separate discussion of these items unless a trustee or citizen requests to do so, in which event the item shall be removed from the General Order of Business and considered in its normal sequence on the agenda. a. Trustee Allen Brewer made a motion to approve the consent agenda Trustee Jeff Linton seconded the motion. Motion Carried III. *ADOPTION OF MINUTES a. Regular Council Meeting Minutes, October 20, 2020 IV. APPROVAL OF PAYMENT OF BILLS AND PAYROLL FOR OCTOBER IN THE AMOUNT OF $59,565.80 a. Trustee Allen Brewer made a motion to approve the payment of bills and payroll for October 2020 in the amount of $59,565.80 Trustee Linda Williams seconded the motion. Roll Call Motion Carried V. PUBLIC COMMENT VI. UNFINISHED BUSINESS a. Trustee Allen Brewer made a motion to approve the amended Village of Page Page41ofof32 4  Farwell Covid-19 Plan and Policy, effective November 2, 2020 Trustee Tracey Jackson seconded the motion. Motion Carried b. Trustee Allen Brewer made a motion to approve the amended Village of Farwell Equipment Operation and Liability Policy, effective November 2, 2020 Trustee Linda Williams seconded the motion. Motion Carried c. An update in regard to the upcoming Mill Road Dam Project was presented to Council. The road closure is expected to take place in approximately two to six weeks. d. Rules of Procedure Recommendations were discussed. These recommendations have been noted and will be included in the Rules of Procedure for adoption at the Regular Council Meeting on December 7, 2020. Adrian will make these changes and present them at the Regular Council Meeting on November 17, 2020 to ensure any new recommendations or changes are not requested. e. The requests from AMEDMA to amend Ordinance No. 2019-03 were discussed. Adrian will send over these requests to the Village's lawyer for review. This will be discussed further at the next Regular Council Meeting on November 17, 2020. f. The Park Improvement Project update will be discussed at the next Regular Council Meeting on November 17, 2020, as the Engineer was not able to assess the park improvements as previously scheduled. g. Jones & Henry Final Plan Jones & Henry Engineers are in the final stages of completing the SAW Grant paperwork and documents. There will be three resolutions to approve to further this process which will be presented for adoption at the next Regular Council Meeting on November 17, 2020. h. Trustee Tracey Jackson made a motion to approve the purchases of a hard drive in the amount of $100.00, a laptop in the amount of $480.00, and two Microsoft licenses in the amount of $796.00 Trustee Jeff Linton seconded the motion. Motion Carried VII. NEW BUSINESS a. The need for the Village to adopt a slogan was discussed. Clerk/Treasurer A. Krawczynski and Deputy Clerk/Treasurer B. Robinson will get started on this process, and will provide updates as necessary. b. Trustee Tracey Jackson made a motion to approve the MERS Defined Benefit Plan Adoption Agreement Addendum Trustee Linda Williams seconded the motion. Roll Call Motion Carried c. Trustee Allen Brewer made a motion to adopt Resolution 2020-10, "The Resolution to Allow Electronic Meetings" Trustee Jeff Linton seconded the Page Page52ofof32 4  motion. Roll Call Motion Carried d. Recent removal of trees on Village property by a Village resident were discussed. Zoning and Ordinance Officer Ernie will start on creating a tree removal ordinance for future instances. A letter is being drafted to send to the resident and the tree removal company explaining the situation and how these actions are not acceptable, and that future instances will result in fines being assessed. e. Proposed 2021 Meeting Schedules and Holidays were presented to Council. There needs to be changes made to when the Finance Committee meets so that these meetings take place ahead of Regular Council Meetings. Adrian will make these changes before adoption. VIII. ADMINISTRATIVE REPORT a. Clerk/Treasurer A. Krawczynski informed the Council that the audit for the 2018-2019 fiscal year has been sent in, and the Village is now just awaiting the final report and recommendations from the auditor. A. Krawczynski also informed the Council that the auditor recommended the current payroll schedule/process be altered to reflect a larger time arrearage than what is currently in use. A. Krawczynski will get started on this process and will update the Council after the new year on how the new payroll schedule will work. b. Clerk/Treasurer A. Krawczynski provided an update to Certified Payments starting their services as the new Village credit card processing company. We are hoping to have everything installed and go live by the end of November. IX. COMMITTEE REPORT a. PARKS AND REC a. Parks and Recreation Chair Tracey Jackson did not have any new information other than the next meeting is scheduled for November 5, 2020. b. ZONING a. A zoning update will take place on November 17, 2020. c. DPW a. Trustee Allen Brewer made a motion to approve the replacement of brakes for the garbage truck not to exceed $1,325.18, with the understanding that if replacement costs are expected to exceed this amount based upon the service company's recommendation, additional approval will be required. Trustee Linda Williams seconded the motion. Page Page63ofof32 4  Motion Carried b. Replacement of the Kubota tractor was requested to be discussed. DPW Committee Chair Allen Brewer noted that they will discuss this at the DPW Meeting scheduled on November 4, 2020 and will bring this back to the Council at the next Regular Council Meeting on November 17, 2020. d. PERSONNEL a. No updates from the Personnel Committee were presented. X. EXTENDED PUBLIC COMMENT XI. ADJOURNMENT a. Trustee Allen Brewer made a motion to adjourn the meeting at 7:17pm Trustee Tracey Jackson seconded the motion. Motion Carried NEXT REGULAR COUNCIL MEETING ON TUESDAY, NOVEMBER 17, 2020 Clerk/Treasurer President Page Page74ofof32 4  VILLAGE OF FARWELL COUNCIL RULES OF PROCEDURE I. Regular and special meetings All meetings of the village council will be held in compliance with state statutes, including the Open Meetings act, 1976 PA 267 as amended, and with these rules. A. Decisions i. All decisions of a public body shall be made at a meeting open to the public. For purposes of any meeting subject to this subsection, except a meeting of any state legislative body, the public body shall establish the following procedures to accommodate the absence of any member of the public body due to military duty: a) Procedures by which the absent member may participate in, and vote on, business before the public body, including, if feasible, procedures that ensure 2-way communications. b) Procedures by which the public is provided notice of the absence of the member and information about how to contact that member sufficiently in advance of a meeting of the public body to provide input on any business that will come before the public body. B. Regular meetings Regular meetings of the village council will be held on the first Monday and third Monday of each month beginning at 6:00 p.m. at the village hall unless otherwise rescheduled by resolution of the council. Council meetings shall conclude no later than 10:00 P.M., subject to extension by the council. C. Special Meetings A special meeting shall be called by the clerk upon the request of the president or any three members of the council on at least 18 hours’ notice to each member of the council served personally or left at the council member’s usual place of residence. Special meeting notices shall state the purpose of the meeting. No official action shall be transacted at any special meeting of the council unless the item has been stated in the notice of such meeting. D. Posting requirements for regular and special meetings i. Within 10 days after the first meeting of the council following an election, a public notice stating the dates, times and places of the regular monthly council meetings will be posted at the village offices. If there is a change in the general schedule of regular meetings, the change will be posted within three (3) days after the change has been made, showing the new dates, times, and places for regular meetings. ii. For a rescheduled regular or a special meeting of the council, a public notice stating the date, time and place of the meeting shall be posted at the village hall at least 18 hours before the meeting. This also applies to a recessed meeting which occurs more than 36 hours after the time of recess. iii. The notice described above is not required for a meeting of the council in emergency session in the event of a severe and imminent threat to the health, safety or welfare of the public when two-thirds of the members of the council determine that a delay would be detrimental to the village’s efforts in responding to the threat. E. Minutes of regular and special meetings The clerk shall attend the council meetings and record all the proceedings and resolutions of the council in accordance with (Section 64.5 of the General Law Village Act of 1895 as amended and) the Open Meetings Act. In the absence of the clerk, the council may appoint one of its own members or another person to temporarily perform the clerk’s duties. Within 8 business days of a council meeting a synopsis showing the substance of each separate decision of the council or the entirety of the council proceedings shall be prepared by the clerk and shall indicate the vote of the council members. After the president approves this document, within 5 days it shall be posted on the village hall announcement board. A copy of the minutes of each regular or special council meeting 1 Page 8 of 32  shall be available for public inspection at the village offices during regular business hours. F. Study sessions Upon the call of the president or the council and with appropriate notice to the council members and the public, the council may convene a work session devoted exclusively to the exchange of information relating to municipal affairs. No votes shall be taken on any matters under discussion nor shall any council member enter into a formal commitment with another member regarding a vote to be taken subsequently. II. Conduct of meetings A. Meetings to be public All regular and special meetings of the council shall be open to the public, and citizens shall have a reasonable opportunity to be heard in accordance with such rules and regulations as the council may determine (see Section V “Public Comment”), except that the meetings may be closed to the public and the media in accordance with the Open Meetings Act. All official meetings of the council and its committees shall be open to the media, freely subject to recording by radio, television and photographic services at any time, provided that such arrangements do not interfere with the orderly conduct of the meetings. B. Agenda preparation i. An agenda for each regular council meeting shall be prepared by the village clerk or appointee with the following suggested order of business: a) Call to order b) Pledge of Allegiance c) Roll call of council d) Approval of Agenda e) Consent Agenda - All items listed with an asterisk (*) are considered to be routine by the Village Council and shall be enacted by one motion. There will be no separate discussion of these items unless a Trustee or citizen requests to do so, in which event the item shall be removed from the General Order of Business and considered in its normal sequence on the agenda. • Minutes of previous meeting(s) f) Payment of Bills g) Public Comment (old business & new business) h) Unfinished Business i) New Business j) Administrative Report k) Treasurer’s Report l) Committee Reports m) Public Hearing n) Introduction of Resolutions o) Introduction and Adoption of Ordinances p) Extended Public Comment q) Adjournment Any council member shall have the right to add items to the regular agenda before it is approved. C. Agenda distribution Council members will receive their packets and agendas a minimum of two days prior to the meeting date and shall be electronically delivered or hand delivered in the event of electronic error. 2 Page 9 of 32  D. Quorum A majority of the entire elected or appointed and sworn members of the council shall constitute a quorum for the transaction of business at all council meetings. In the absence of a quorum, a lesser number may adjourn any meeting to a later time or date with appropriate public notice. E. Attendance at council meetings Election to the village council is a privilege freely sought by the nominee. It carries with it the responsibility to participate in council activities and represent the citizens of the village. Attendance at council meetings is critical to fulfilling this responsibility. A general law village council is empowered by Section 65.5 of the General Law Village Act as amended to adjourn a meeting if a quorum is not present and compel attendance in a manner prescribed by its ordinance. The council may excuse absences for cause. If a council member has more than three unexcused successive absences for regular or special council meetings, the council may enact a resolution of reprimand. In the event that the member’s absences continue for more than three additional successive regular or special meetings of the council, the council may enact a resolution of censure or request the council member’s resignation or both. F. Presiding Officer The presiding officer shall be responsible for enforcing these rules of procedure and for enforcing orderly conduct at meetings. The president is ordinarily the presiding officer. The president shall appoint one of its member’s president pro tempore, who shall preside in the absence of the president. In the absence of both the president and the president pro tempore, the member present who has the longest consecutive service on the council shall preside. G. Disorderly conduct The president may call to order any person who is being disorderly by speaking out of order or otherwise disrupting the proceedings, failing to be relevant, speaking longer than the allotted time or speaking vulgarities. Such person shall be seated until the chair determines whether the person is in order. If the person so engaged in presentation is called out of order, he or she shall not be permitted to continue to speak at the same meeting except by special leave of the president or chair person. If the person shall continue, to be disorderly and disrupt the meeting, the chair may request the person to leave the meeting. No person shall be removed from the meeting except for an actual breach of the peace committed at the meeting. III. Closed Meetings A. Purpose Closed meeting may be held only for the reasons authorized in the Open Meetings Act, which are the following: i. To consider the dismissal, suspension, or disciplining of, or to hear complaints or charges brought against a public officer, employee, staff member or individual agent when the named person requests a closed meeting. ii. For strategy and negotiation sessions connected with the negotiation of a collective bargaining agreement when either negotiating party requests a closed Hearing. iii. To consider the purchase or lease of real property up to the time an option to purchase or lease that real property is obtained. iv. To consult with the municipal attorney or another attorney regarding trial or settlement strategy in connection with specific pending litigation, but only when an open meeting would have a detrimental financial effect on the litigating or settlement position of the council. 3 Page 10 of 32  v. To review the specific contents of an application for employment or appointment to a public office when a candidate requests that the application remain confidential. However, all interviews by a public body for employment or appointment to a public office shall be held in an open meeting. vi. To consider material exempt from discussion or disclosure by state or federal statute. B. Calling closed meetings At a regular or special meeting, the council members elected or appointed and serving, by a two-thirds roll call vote may call a closed session under the conditions outlined in section C.I of the Open Meetings Act. The roll call vote and purpose for calling the closed meeting shall be entered into the minutes of the public part of the meeting at which the vote is taken. C. Minutes of closed meetings A separate set of minutes shall be taken by the clerk or the designated secretary of the council at the closed session. These minutes will be retained by the clerk, shall not be available to the public, and shall only be disclosed if required by a civil action, as authorized by the Michigan Open Meetings Act. These minutes may be destroyed one year and one day after approval of the minutes of the regular meeting at which the closed session was approved. IV. Discussion and voting A. Rules of parliamentary procedure The rules of parliamentary practice as contained in the latest edition of Robert’s Rule of Order shall guide the council in all cases to which they are applicable (Roberts Rule will be used as a guide not the rule), provided that they are not in conflict with these rules, village ordinances or applicable state statutes. The president may appoint a parliamentarian. The chair shall preserve order and decorum and may speak to points of order in preference to other council-members. The chair shall decide all questions arising under this parliamentary authority. B. Conduct of discussion During the council discussion and debate, no member shall speak until recognized for that purpose by the chair. After such recognition, the member shall confine discussion to the question at hand and to its merits and shall not be interrupted except by a point of order or privilege raised by another member. Speakers should address their remarks to the chair, maintain a courteous tone and avoid interjecting a personal note into debate. No member shall speak more than once on the same question unless every member desiring to speak to that question shall have had the opportunity to do so. Members should refrain from personal remarks that may or may not be intended to ridicule another person. Sarcasm, innuendoes, and any sort of name calling should be avoided while interacting with other trustees, staff, and the public. The chair, at his or her discretion, may permit any person to address the council during its deliberations. C. Ordinances and resolutions No ordinance, except an appropriation ordinance, an ordinance adopting or embodying an administrative or governmental code or an ordinance adopting a code of ordinances, shall relate to more than one subject, and that subject shall be clearly stated in its title. A vote on all ordinances and resolutions shall be taken by a roll call vote and entered in the minutes unless it is a unanimous vote. If the vote is unanimous, it shall be necessary only to so state in the minutes, unless a roll call vote is required by law or by council rules. D. Roll Call Vote In all roll call votes, the president is the last vote taken. 4 Page 11 of 32  E. Duty to vote Election to a deliberative body carries with it the obligation to vote. Council members present at a council meeting shall vote on every matter before the body, unless otherwise excused or prohibited from voting by law. A council member who is present and abstains or does not respond to a roll call vote shall be counted as voting with the prevailing side and shall be so recorded, unless otherwise excused or prohibited by law from voting. Conflict of interest, as defined by law, shall be the sole reason for a member to abstain from voting. The opinion of the village attorney shall be binding on the council with respect to the existence of a conflict of interest. A vote may be tabled, if necessary, to obtain the opinion of the village attorney. The right to vote is limited to the members of council present at the time the vote is taken. Voting by proxy or by telephone is not permitted. All votes must be held and determined in public; no secret ballots are permitted. F. Results of voting In all cases where a vote is taken, the chair shall declare the result. V. Public Comment A. General Each regular council meeting agenda shall provide for reserved time for citizen participation. If requested by a member of the council the presiding officer shall have discretion to allow a member of the audience to speak at times other than reserved time for citizen’s participation. B. Length of presentation Any person who addresses the council during a council meeting or public hearing may be limited to 3 minutes in length per individual presentation. The clerk will maintain the official time and notify the chair when the speaker’s time is up. This can be enforced at any time by the chair. The purpose is to give as many citizens as possible time to address the council. C. Addressing the council When a person addresses the council, he or she shall clearly state his or her name and home address. Remarks should be confined to the question at hand and addressed to the chair in a courteous tone. The Chair may respond, redirect the question to the appropriate staff person, if present or choose to take the question under advisement to be answered at a later specified time. No person shall have the right to speak more than once on any particular subject until all other persons wishing to be heard on that subject have had the opportunity to speak. VI. Miscellaneous A. Adoption and amendment of rules of procedure These rules of procedure of the council will be placed on the agenda of the first meeting of the council following the seating of a newly elected council member for review. A copy of the rules shall be distributed to each council member if requested. The council may alter or amend its rules at any time by a vote of a majority of its members after notice has been given of the proposed alteration or amendment. These rules should not supersede the Village of Farwell Charter or the General Law Village Act. B. Suspension of rules The rules of the council may be suspended for a specified portion of a meeting by an affirmative vote of two-thirds of the members present except that council actions shall conform to state statutes and to the Michigan and the United State Constitutions. 5 Page 12 of 32  C. Committees i. Standing and special committees The Village of Farwell shall have the following standing committees: a) Planning Commission b) Department of Public Works c) Parks & Recreation d) Finance e) Personnel Committee members will be appointed by the president. They shall be members of the council. The president shall fill any committee vacancies as needed. Committees and committee members may be changed at any time by the president to fit the needs of the village. Special committees may be established for a specific period of time by the president or by a resolution of the council which specifies the task of the special committee and the date of its dissolution. ii. Citizen task forces Citizen task forces may be established by a resolution of the council which specifies the task to be accomplished and the date of its dissolution. Members of such committees will be appointed by the president, subject to approval by a majority vote of the council and must be residents of the village. Vacancies will be appointed by the president. Citizen task force is a public body and must comply with the Open Meetings Act. D. Authorization for contacting the village attorney The following officials are authorized to contact the village attorney regarding municipal matters: A. Village President B. Village Clerk C. Or by majority vote of the council D. Or by approval of the Village President E. Training for new council Members It is required that all council members should as soon as available, attend a training class or training conference on the Open Meetings Act and FOIA (Freedom of Information Act) or provide proof of training. It should be encouraged to attend at least one additional class or conference per year. Adopted on 02/07/2017 Amended on 12/07/2020 ____________________________________________ _____________________________ Adrian Krawczynski, Clerk/Treasurer Date 6 Page 13 of 32 Name Address Farwell, MI 48622 Friday, November 13, 2020 RE: Removal of Trees on Village property Pursuant to Michigan Law, Section 750.382, a person who willfully and maliciously, or wantonly and without cause, cuts down, destroys, or injures any tree, shrub, grass, turf, plants, crops, or soil of another that is standing, growing, or located on the land of another is guilty of a crime as follows: (a) If the value of the trees, shrubs, grass, turf, plants, crops, or soil cut down, destroyed, or injured is less than $200.00, the person is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00 or 3 times the value of the trees, shrubs, grass, turf, plants, crops, or soil, whichever is greater, or both imprisonment and a fine. (b) If any of the following apply, the person is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $2,000.00 or 3 times the value of the trees, shrubs, grass, turf, plants, crops, or soil, whichever is greater, or both imprisonment and a fine: (i) The value of the trees, shrubs, grass, turf, plants, or soil cut down, destroyed, or injured is $200.00 or more but less than $1,000.00. (ii) The person violates subdivision (a) and has 1 or more prior convictions for committing or attempting to commit an offense under this section or a local ordinance substantially corresponding to this section. (c) If any of the following apply, the person is guilty of a felony punishable by imprisonment for not more than 5 years or a fine of not more than $10,000.00 or 3 times the value of the trees, shrubs, grass, turf, plants, crops, or soil, whichever is greater, or both imprisonment and a fine: (i) The value of the trees, shrubs, grass, turf, plants, crops, or soil cut down, destroyed, or injured is $1,000.00 or more but less than $20,000.00. (ii) The person violates subdivision (b)(i) and has 1 or more prior convictions for committing or attempting to commit an offense under this section. For purposes of this subparagraph, however, a prior conviction does not include a conviction for a violation or attempted violation of subdivision (a) or (b)(ii). (d) If any of the following apply, the person is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $15,000.00 or 3 times the value of the trees, shrubs, grass, turf, plants, crops, or soil, whichever is greater, or both imprisonment and a fine: (i) The value of the trees, shrubs, grass, turf, plants, crops, or soil cut down, destroyed, or injured is $20,000.00 or more. (ii) The person violates subdivision (c)(i) and has 2 or more prior convictions for committing or attempting to commit an offense under this section. For purposes of this subparagraph, however, a prior conviction does not include a conviction for a violation or attempted violation of subdivision (a) or (b)(ii). The Village Council made the decision to issue a written warning for the trees that were cut on Village property on your behalf. However, future violations will have action taken based upon the above provisions, as set by Michigan statute. If you have any questions or concerns, please contact The Village of Farwell Zoning Officer at 989-424-7641 or 989-588-9926. Thank you, Adrian Krawczynski Village of Farwell Clerk/Treasurer Page 14 of 32  Wastewater Asset Management Plan Prepared for Saw Grant No. 1067-1 Submitted by: Jones & Henry Engineers, Ltd. 4791 Campus Drive Kalamazoo, MI 49008 www.jheng.com November 2020 Fluid thinking® Page 15 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Table of Contents Section 1 – Executive Summary .......................................................................................................... 3 Section 2 – Background ...................................................................................................................... 4 Section 3 – Utility Overview ............................................................................................................... 4 Section 4 – Project Approach .............................................................................................................. 5 Operation and Maintenance (O&M) Strategy .......................................................................................... 6 Routine Operation ................................................................................................................................ 6 Preventative Maintenance ................................................................................................................... 6 Emergency/Reactive Maintenance ....................................................................................................... 6 Deferred Maintenance ......................................................................................................................... 7 Staffing Analysis .................................................................................................................................... 7 Section 5 – Wastewater Asset Management Plan................................................................................ 7 Inventory ................................................................................................................................................... 7 Field Survey ........................................................................................................................................... 7 Mapping ................................................................................................................................................ 8 Records Scanning .................................................................................................................................. 8 Condition Assessment ............................................................................................................................... 8 Pipeline, Structure, and Manhole Assessment ..................................................................................... 8 Lift Station Assessment......................................................................................................................... 9 Lagoon Assessment .............................................................................................................................. 9 Level of Service Goals................................................................................................................................ 9 Regulatory Requirements ................................................................................................................... 10 Capital Improvement Plan ...................................................................................................................... 10 Funding Structure and Rate Methodology ............................................................................................. 12 Rate Methodology .............................................................................................................................. 12 Rate Evaluation ................................................................................................................................... 12 Operation, Maintenance & Replacement (OM&R) Budget and Rate Sufficiency .............................. 13 Rate Recommendations...................................................................................................................... 13 Section 6 – Final Conclusion ............................................................................................................. 14 Jones & Henry Engineers, Ltd. Fluid thinking® Page 1 Page 16 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 List of Tables Table 1. Village of Farwell Utility Overview .................................................................................................. 5 Table 2. 5-Year Capital Improvement Plan Summary ................................................................................. 11 Table 3. 20-Year Capital Improvement Plan Summary ............................................................................... 11 Appendices Appendix A- Groundwater Discharge Permit Appendix B- Northeast Guide for Estimating Staffing at Public and Privately Owned Wastewater Treatment Plants Appendix C- Overall Wastewater System Map Appendix D- Condition Assessment Appendix E- Plummer’s Environmental Services Inc. Inspection Reports Appendix F- Sanitary Sewer Asset Inventory Appendix G- Manhole Asset Inventory Appendix H- Lift Station Asset Inventory Appendix I- WWSL Asset Inventory Appendix J- Capital Improvement Plan Appendix K- Sewer Rates and Evaluation Appendix L- Operation and Maintenance Budget Jones & Henry Engineers, Ltd. Fluid thinking® Page 2 Page 17 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Section 1 – Executive Summary Through the Stormwater, Asset Management, and Wastewater (SAW) Grant Program; Michigan Department of Environment, Great Lakes, and Energy (EGLE) has provided grants for communities to accelerate statewide asset management planning practices. Public Act 562 of 2012 allocated money for this program. Jones & Henry Engineers (J&H) was retained by the Village of Farwell, Michigan (Village) to prepare an Asset Management Plan (AMP) for its wastewater system. Inventory catalogs and condition assessments of assets at the Wastewater Stabilizing Lagoons (WWSL) and within the collection system (sewer pipes, manholes, lift stations) were performed and documented. The information was then incorporated into an asset management inventory and used to forecast maintenance and capital improvement needs. The expected Level of Service Goals for the Village Utility were established to determine the performance expectations for the future. The resulting goals are based on industry standards and discussions between the Village, and J&H. A sewer rate evaluation for the Village’s Wastewater System was prepared to reflect the recommendations and proposed capital improvements from the AMP. This evaluation was assembled from the various portions of the Plan and includes summaries of the work completed, professional recommendations, a 5-year and 20-year Capital Improvement Plan (CIP), and recommended rate increases. Current rates are adequate to provide proper operation and maintenance of the sanitary sewers, lift stations, and treatment plant. The short-term rate projection requires 8 percent annual increases to prevent a revenue gap. The long-range outlook requires a 4.25 percent annual rate increase to allow for normal operations and establishment of an asset replacement reserve for capital improvements. The Village’s wastewater infrastructure is generally in proper and working condition. The collection system is comprised primarily of 50-year-old assets with minor or moderate deterioration. Lift Station 1 was completely rehabilitated in 2005, and Lift Station 5 was constructed in 2003. The WWSL’s assets are in good condition due to a major improvement project in 2005. The contact persons for the Village of Farwell AMP are: • Jason Walters Department of Public Works Superintendent (989)429-4347 farwelldpw@villageoffarwell.org • Gina Hamilton Village President (989)588-9926 gina@villageoffarwell.org Jones & Henry Engineers, Ltd. Fluid thinking® Page 3 Page 18 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Section 2 – Background The Village of Farwell encompasses a geographical area of approximately 1.4 square miles. According to the US Census, the population of the Village of Farwell was 871 in 2010. The Village does not project a change in population for the next 20 years. Most Village residents and businesses are served by public sanitary sewers. There are approximately 8 miles of sanitary sewers that collect and transport wastewater to the treatment lagoons for processing. The Farwell WWSL is authorized to discharge a maximum of 1,560,000 gallons per day and 90,000,000 gallons per year by the Michigan Department of Environment, Great Lakes, and Energy (EGLE). The system satisfactorily operates under a Groundwater Discharge Permit. The current permit can be found in Appendix A. The Village’s staff includes 3 full-time equivalent positions, including staff performing day-to-day functions to ensure proper function of the utility. It is critical to the health, safety, and well-being of the Village’s residents and businesses that the wastewater system is maintained. To meet this goal, it is important that the Village develop and follow a Capital Improvement Plan that keeps existing infrastructure operational and evaluates the capacity of the systems to serve residential and business growth and development. Furthermore, sewer rates were evaluated to ensure that the Village can fund the essential maintenance and capital improvements for providing quality service and protecting the environment. The Village of Farwell was awarded the SAW grant in December 2017. This AMP included an inventory and condition assessment of its collection system and Wastewater Stabilizing Lagoons (WWSL). Known information and observed field conditions were incorporated into the Asset Management Inventory. This data is used to project maintenance and capital improvement needs. A subsequent rate structure evaluation was used to analyze the Village’s ability to maintain their Wastewater system. This report was developed to summarize the Asset Management Plan for Farwell’s Wastewater system. Section 3 – Utility Overview The sanitary sewers were originally constructed in 1972, and there have not been any significant rehabilitation projects performed on the collection system since its construction. The four (4) original lift stations were constructed in 1975 and Lift Station 5 was constructed in 2003. In 2005, Lift Station 1 was completely rehabilitated. The wastewater treatment system was originally constructed in conjunction with the sanitary sewers in 1972. Wastewater is treated by a network of lagoons. Wastewater flows through influent lagoons, finishing lagoons, and percolation lagoons. The network of lagoons serves to aerate and settle solids out of the wastewater while discharging the treated effluent into the groundwater. In 2005, the wastewater treatment system was rehabilitated. The work included improvements to the aerated/influent lagoons, polishing/finishing lagoon, and pipes to these lagoons. Jones & Henry Engineers, Ltd. Fluid thinking® Page 4 Page 19 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Table 1 below outlines general information regarding the village’s wastewater treatment and collection systems. Table 1. Village of Farwell Utility Overview Wastewater Description Treatment Aerated/Influent lagoons 2 lagoons, improved in 2005 Polishing/Finishing lagoon 1 lagoon, improved in 2005 3 lagoons, constructed in 1972, sludge has Percolation lagoons accumulated on the bottom Collection 5 lift stations, 1-4 constructed in 1975, LS 5 Lift Stations constructed in 2003 Sewers 49,295 linear feet Manholes 205 Section 4 – Project Approach Jones & Henry Engineers worked with the Village throughout the development of the AMP and the preparation of this report. Village staff members and the J&H team discussed the goals and approach to the project, ensuring a clear understanding of the project scope by all parties. To collect information about the Wastewater system, various documents were reviewed throughout the process. These documents included sewer inspection videos and logs, operation & maintenance manuals, and various previously produced studies and reports. Wastewater system record drawings were scanned and electronically cataloged. Next, an inventory was developed to track assets in the Village’s wastewater system and to store condition assessments and notes. Because the wastewater collection system and the WWSL have different layouts and functions, separate inventories were developed for each. To assess the condition of the sewers, collected field data and sewer inspection information was reviewed. Additionally, each manhole was examined to assess its condition and to gather information on the sewer collection system’s connectivity. Pictures were taken of each manhole to further document the condition and attributes of the assets. The WWSL asset conditions were evaluated and recorded in the inventory. Pictures were taken of all WWSL structures, process equipment, and instrumentation. The condition of each asset was evaluated based on its appearance and functioning capabilities. The Village’s Level of Service (LoS) expectations for their wastewater system were established to provide guidance for developing the CIP and the associated user charge structure necessary to fund necessary improvements. Standards for condition assessment were applied to each asset of the wastewater system. Criticality and redundancy for each process and piece of equipment were also reviewed in Jones & Henry Engineers, Ltd. Fluid thinking® Page 5 Page 20 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 accordance with the EGLE Asset Management guidelines. From these guidelines, each asset in the Village’s wastewater system was given a condition rating. These scores assisted in prioritizing the projects in the CIP. Cost estimates for each project in the CIP were prepared and used to calculate funding requirements. Revenues from user charges support normal system operation, maintenance efforts, and CIP projects. A rate study was performed based on the collected data outlined in this Report; recommended rates were calculated to support all the wastewater system’s needs. Operation and Maintenance (O&M) Strategy O&M consists of routine operations, and preventive and emergency/reactive maintenance. In this section, the strategy for O&M varies by the asset, criticality, condition, and operating history. Routine Operation Routine Operation includes daily activities necessary to run the collection system and WWSL. These activities include: 1. Inspecting equipment on a regular basis. 2. Monitoring operating conditions, meters, and gauges. 3. Collecting and testing effluent water and sewage samples. 4. Recording meter and gauge readings and operational data. 5. Documenting and reporting test results to regulatory agencies. 6. Ensuring safety standards are met and keeping work areas and equipment clean. Preventative Maintenance Preventive maintenance is the daily, weekly, monthly, or annual work necessary to keep assets operating properly. These activities include: 1. Regular and ongoing annual tasks necessary to keep the assets at their required service level. 2. Daily upkeep designed to keep the assets operating at the required LoS. 3. Tasks associated with normal care due to daily use including repairs and minor replacements. Preventive maintenance is performed on a scheduled maintenance program with extra attention given to assets with problematic histories. Additionally, equipment is maintained according to manufacturer's recommendations to achieve maximum return on investment. Following the manufacturer's suggested preventive maintenance allows the Village to increase the useful life of equipment. Emergency/Reactive Maintenance Emergency/Reactive maintenance is initiated when an asset fails suddenly and unexpectedly. Village staff are required to determine the service and maintenance solutions to repair these emergency failures. These repairs can be expensive and time consuming. Jones & Henry Engineers, Ltd. Fluid thinking® Page 6 Page 21 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Deferred Maintenance Deferred maintenance is any maintenance, repair, restoration, or replacement work that was scheduled to be completed, but due to outside influences, was not performed. Outside influences that could defer maintenance include high priority work, staffing shortages, inadequate funding, or a variety of other reasons. Typically, deferred maintenance is a result of prioritization. Staffing Analysis Generally, the Village performs its required operations and maintenance activities on a regular basis during its normal daily operations (one shift) and handles emergencies as they occur, day or night. The work activities are planned and performed by the staff. In addition to the WWSL, the staff is also responsible for maintaining the collection system and roads throughout the Village. Using the Northeast Guide for Estimating Staffing at Publicly and Privately Owned Wastewater Treatment Plants (Guide), provided in Appendix B, wastewater staffing needs were evaluated. The Guide indicates that 3 full time employees are needed to meet the Farwell WWSL operation and maintenance requirements. The Village currently employs 3 full time staff members to operate and maintain its wastewater system. The Village fulfills its extra operations and maintenance responsibilities, like emergencies, with overtime. Hiring an additional operator would be practical if one of the current staffers indicates that they are retiring or leaving their position. The Village hires service providers (engineers, contractors, sewer cleaning crews) for activities that require specialized labor or equipment. Section 5 – Wastewater Asset Management Plan Inventory An inventory of the infrastructure and equipment assets in the wastewater system was assembled. This included collection sewer pipes, manholes, lift stations and treatment process structures, equipment, and controls. Field data collection was conducted to verify and expand on the attributes of each asset in the wastewater system. The elements of each unit or section were collected along with a corresponding assessment rating. Field Survey Wastewater system assets including manholes, sanitary sewer pipes, lift stations, and treatment facilities were located via a field survey. The data was collected between June and September 2018. Additionally, the manhole attributes such as materials, influent and effluent pipe sizes, invert elevations, and manhole condition were logged in the field. Photographs of the wastewater collection and treatment infrastructure were taken to provide a visual record of each asset. Lift station structures, valves, piping, pumps, electronics, controls were recorded as well. Jones & Henry Engineers, Ltd. Fluid thinking® Page 7 Page 22 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Mapping Data from the field survey was compiled and incorporated into AutoCAD and ArcGIS to create an overall map of the wastewater system. This map can be found in Appendix C. The record drawings of the system were referenced and used for the basis of the map. Records Scanning Drawings were reviewed, scanned, and utilized as a basis for the wastewater asset inventory. Additional information such as sizes, diameter, length, depth, etc. were also obtained from the review. The plan sets were scanned and filed for the Village to have access to electronic copies of their drawings. They were referenced and checked for accuracies throughout the development of the inventory. Data Entry Once the ArcGIS map with the overall geometry of the wastewater system was complete, additional attribute fields were added and filled out. These fields include pipe size, pipe material, condition, consequence of failure, and comments for general conditions. Condition Assessment All assets in the Village’s wastewater system, and lift stations, were evaluated and given a condition rating score based on age, number, and severity of defects. Each asset was broken down into components such as pumps, motors, electrical, etc. to be evaluated. The condition and redundancy of each asset was analyzed, and a probability and consequence of failure score was determined. The criticality factor is calculated for each asset by multiplying the consequence of failure score by the probability of failure score. Defining an asset’s criticality factor allows for management of risk. Criticality factors can improve decision-making regarding the allocation of operation and maintenance efforts and capital improvement funds. Appendix D includes the criteria used in the determination of the condition, consequence of failure, probability of failure, and redundancy. Pipeline, Structure, and Manhole Assessment The Village of Farwell retained Plummers Environmental Services, Inc. to clean and televise approximately 35,000 feet of sanitary sewer in 2018. Additionally, Plummer’s Environmental Services, Inc. performed NASSCO Level I manhole inspections on most of the 205 sanitary sewer manholes; 19 manholes could not be field located. These inspections recorded basic measurements and were used to determine a general condition rating. The Plummer’s Environmental Services, Inc. inspection reports are included in Appendix E, the Village maintains the televised sewer recordings. Each sewer pipe segment has been reviewed and given a condition assessment. Conditions have been determined in accordance with NASSCO standards utilizing televising videos and logs. The complete sanitary sewer inventory and assessment is included in Appendix F and the sewer manhole inventory and assessment is included in Appendix G. The sanitary sewer inventory includes the date installed, estimated useful life, remaining useful life, material, location, diameter, linear feet, condition, Jones & Henry Engineers, Ltd. Fluid thinking® Page 8 Page 23 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 probability of failure, consequence of failure, redundancy, criticality factor, estimated replacement cost, and annual replacement cost. The manhole inventory includes the date installed, estimated useful life, remaining useful life, material, location, diameter, invert, condition, probability of failure, consequence of failure, redundancy, criticality factor, estimated replacement cost, and annual replacement cost. Lift Station Assessment Each of the five lift stations were evaluated and assessed in May 2019. The conditions were assessed, and an evaluation of each lift station was conducted including recommendations and costs for replacement. The lift station inventory includes the date installed, estimated useful life, remaining useful life, condition, probability of failure, consequence of failure, redundancy, criticality factor, estimated replacement cost, and annual replacement cost. The inventory can be found in Appendix H. Lagoon Assessment The Village’s WWSL consists of a network of treatment lagoons. The assets were assessed in May 2019 and recorded in an inventory spreadsheet. The WWSL inventory spreadsheet is located in Appendix I and includes the date installed, estimated useful life, remaining useful life, condition, probability of failure, consequence of failure, redundancy, criticality factor, estimated replacement cost, and annual replacement cost. The Village will update each asset inventory, annually, to document new and obsolete equipment and processes. The conditions will also be updated annually. Level of Service Goals Residents and businesses rely on the Village of Farwell to provide dependable wastewater services to support their daily lives and activities. The goal of the Village’s Wastewater Department is to collect and treat wastewater to meet or exceed customer expectations and comply with Federal, State, and Local Regulations. Level of Service Goals are described as the characteristics of the utility's service performance such as “how much,” “of what nature,” and “how frequently.” These questions and their accompanying goals are the foundation of an Asset Management Program. This section describes the Village's Level of Service Goals for its wastewater system. The Level of Service Goals define the expectations a utility has in delivering its service to the community and assists in determining the amount of funding that is required to maintain, renew, and upgrade the wastewater infrastructure to provide the customers with the specified Levels of Service. Changes to the Level of Service Goals, and how the utility addresses the issues, will affect funding requirements and how well the utility can provide proper service to the community. The utility's progress toward meeting these goals are generally reviewed annually. The Village’s Level of Service Goals include: 1. Provide a safe and injury free workplace, with no safety violations, for all staff members. Any injuries will be reported to management and a plan will be developed to minimize the potential for a repeat injury. Jones & Henry Engineers, Ltd. Fluid thinking® Page 9 Page 24 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 2. Utilize adequately trained and certified operators that will remain updated and current. The Village will continually employ the correct number of employees to properly maintain the system and will keep all certifications on file. 3. To provide excellent customer service by investigating all customer complaints within 3 business days with results of the investigation being communicated to the customer. 4. The Village will remain informed of regulatory changes and comply with any and all changes as they occur. 5. Maintain reserves to cover all anticipated major expenses and potential unexpected breakdowns for operation and maintenance of the system. Water rates will be evaluated every 5 years to ensure reserves can cover operation and maintenance expenses. 6. Comply with EGLE Sanitary Sewer Overflow (SSO) policy to eliminate or treats SSOs and develop corrective actions plans for any reoccurring SSOs. The Village will document any SSOs and corrective actions enacted. 7. Facilities, processes, equipment, and other infrastructure are designed, constructed, operated, and maintained to treat wastewater and produce clean water. Wastewater treatment shall be processed to be in accordance with the EGLE Groundwater Discharge Permit. Any violations will be promptly documented for EGLE and necessary corrective actions taken. Regulatory Requirements EGLE’s wastewater regulations are developed to ensure wastewater is collected and treated properly to protect communities and the environment. Pollutant limits and performance criteria are part of the permitting process. If the utility does not adhere to their regulatory requirements, permit violations and/or corrective action plans are put in place to resolve problems. Consequences for not meeting permit requirements can include infractions, fines, and ultimately cease and desist orders. Customer demands are impacted when regulatory violations occur as they can result in service disruptions. Capital Improvement Plan The Capital Improvement Plan (CIP) has been established based on the condition, criticality, and estimated remaining useful life of the assets. Assets that had a criticality score of 15 or greater should be replaced within 5 years, shown below in Table 2. Assets that have a remaining useful life less than 20 years or have high criticality scores were included in the 20-year CIP, shown in Table 3. The complete CIP is included in Appendix J. The CIP addresses the following requirements of the asset management program: 1. Identifies needs for both 5-year and 20-year planning periods 2. Includes project name, cost, estimated completion date, and rates were evaluated to properly fund the project. 3. The plan has been reviewed and approved by XXX Jones & Henry Engineers, Ltd. Fluid thinking® Page 10 Page 25 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Table 2. 5-Year Capital Improvement Plan Summary Fiscal Year Item Cost Manhole Replacement – MH 24, 89, 89B, 2022 $53,000.00 151, 156, 170, 171A. 2025 Lift Station 3 Replacement $375,000.00 2025 Lift Station 4 Replacement $375,000.00 2025 Headworks $1,000,000.00 Table 3. 20-Year Capital Improvement Plan Summary Fiscal Year Item Cost 2026 WWSL – Perimeter Fence $225,000.00 2026 Between Lagoon A and B – Railing $15,000.00 Control Room Building – Emergency 2026 $1,000.00 Equipment 2026 Lift Station 1 – Level Sensors $1,000.00 2026 Totals $242,000.00 Aerated/Influent Lagoon A – Aerators 2028 $50,000.00 (x4) 2028 Aerated/Influent Lagoon B – Aerators (x4) $50,000.00 Lift Station 1 – Mag Meter, Motor 1, 2028 $11,000.00 Motor 2 2028 Totals $111,000.00 Aerated/Influent Lagoon A – Aerator 2033 $10,000.00 Switch (x4) Aerated/Influent Lagoon B – Aerator 2033 $10,000.00 Switch (x4) 2033 Percolation Lagoons (x3) $1,050,000.00 2033 Control Room Building – Heater $2,000.00 Between Finishing/Polishing Lagoons and 2033 $1,000.00 Percolation – Insulation Cover 2033 Totals $1,073,000.00 Lift Station 1 – Fence, SCADA, Heater 2036 Circuit Panel, Exhaust Fan, Pump 1, Pump $315,800.00 2, Wetwell, Generator, Controller 2036 Lift Station 2 Replacement $375,000.00 Jones & Henry Engineers, Ltd. Fluid thinking® Page 11 Page 26 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Fiscal Year Item Cost 2036 Totals $675,000.00 Lift Station 5 – Fence, Swing Gate, Control 2040 Cabinet, Wetwell, Submersible Pumps $300,000.00 (x2), Generator 2040 Totals $300,000.00 Funding Structure and Rate Methodology The revenue generated from the Village sewer rates and charges is intended to recover the costs for operation, maintenance, repair, replacement, improvement, and debt service, as required, to comply with the State regulations and the Federal Clean Water Act. The sewer rates are established by Ordinance No. 2004-57 by the Village Council. The current sewer rates were adopted in 2016 and have not been altered. The current sewer rates are included in Appendix K. The included copy of the sewer rate resolution is unsigned; however, the Village maintains these are the approved rates. Included in Appendix K is an email confirming the rates from the Village Treasure/Clerk, roll call and meeting minutes from the meeting adopting the rates. Rate Methodology A monthly base charge is used to recover a portion of the fixed costs of the system. Fixed costs include administrative, billing, personnel, insurance, and debt service. The monthly base charge is calculated per water meter. For residential customers, the base charge is the same. For nonresidential customers, the base charge depends on the water meter size. For sewer users only, there is an increased base charge compared to water and sewer users. A commodity charge is used to recover a portion of the fixed costs and the variable costs of the system. The variable costs include electricity, gas, repairs, and maintenance. The commodity charge is calculated on a volume per gallons of water of usage basis. Rate Evaluation A sewer rate evaluation is included in Appendix K. The Village has hired a 3rd party consultant to evaluate the Village finances, including sewer and water rates. The CIP developed in this AMP was included in the consultant’s assessment. These rates are not yet finalized and adopted. The Village will adopt sewer rates to close their revenue gap based on J&H and the 3rd party consultant recommendations. The sewer rate evaluation addresses the following requirements of the asset management plan: 1. Annual Operating Budget 2. Capital Improvement Plan 3. Current, Approved Rate Structure 4. Legal Authority for Setting Rates Jones & Henry Engineers, Ltd. Fluid thinking® Page 12 Page 27 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 5. Anticipated Costs Against Revenue 6. Outlines Plan to Close Funding Gap Operation, Maintenance & Replacement (OM&R) Budget and Rate Sufficiency The evaluation addresses the following items identified in EGLE’s Asset Management Program Checklist for OM&R Budget and Rate Sufficiency: 1. An assessment of user rates is provided in Appendix K and includes a 20-year projection for FY 2021 through FY 2041. 2. The Village’s fiscal year is from March 1 through the end of February. 3. The Village Council has the authority to establish just and reasonable rates. Current rates are established by Ordinance No. 2004-57, as provided in Appendix K, effective January 16, 2016. 4. The annual replacement cost for wastewater system assets with a useful life of 20 years or less is included in the asset spreadsheets for the sanitary sewers, manholes, lift stations, and WWSL in Appendices F, G, H, and I, respectively. The replacement reserve included in the sewer rate evaluation is $114,250 which is the Village’s current USDA RRI (Replacement) Reserve. The annual replacement cost for assets with a life expectancy for 20 years or less is approximately $110,695. 5. Maintenance, corrective action, and capital improvement are covered under several line items in the budget. The historic and projected expenditures are shown in Appendix L. 6. The OM&R budget for FY2021 is provided in Appendix L. 7. The sewer rate evaluation in Appendix K shows that 8 percent annual sewer rate increases from FY2022 through FY2030 and 4.25 percent annual rate increases from FY2031 through FY2041 may be required to eliminate and/or prevent a revenue gap. Rate Recommendations The sewer rate evaluation weighs the anticipated operation and capital costs against projected revenue. Rates have been projected which recover operation and capital costs and eliminate funding gaps. The projection shows that 8 percent annual increases in the monthly base and commodity charges may be required to eliminate funding gaps over the next 10 years. Increases of 4.25 percent annually are projected for years 11-20. For practical purposes, projections beyond 5 years are for informational purposes only. Projected rate increases should be reviewed and updated annually. The projected rate increases are intended to allow a replacement reserve to be established and maintained based on the estimated annual replacement cost for assets with an estimated useful life of 20 years or less. The projected rate increases identified in the evaluation are for planning purposes only. They are intended to show the increases which may be needed to eliminate projected funding gaps. The projected rate increases should be monitored and re-evaluated, as necessary. The Village may consider the implementation of rate increases, as well as other budgetary measures to eliminate potential funding gaps. This evaluation does not consider the impact of the COVID-19 pandemic and any revenue or operating costs that could be affected. Jones & Henry Engineers, Ltd. Fluid thinking® Page 13 Page 28 of 32  Farwell, MI | Wastewater System Asset Management Plan 930.7359-001 Section 6 – Final Conclusion The inspection and evaluation of the Village of Farwell’s wastewater system assets were performed in this study. The sewage collection and wastewater treatment systems are operable and generally in good condition. Although the sewers were recently cleaned and inspected, it is recommended that the Village schedule and budget for this routine maintenance to occur at regular intervals in the future. The WWSL is functioning as expected and with regular maintenance, it is expected to meet current and projected demands. The capital improvements recommended in this report should be funded along with allocating adequate funds for ongoing operations and maintenance. By attending to these items, the Village’s wastewater system will continue to operate while minimalizing the number of required emergency repairs. Jones & Henry Engineers, Ltd. Fluid thinking® Page 14 Page 29 of 32  VILLAGE OF FARWELL RESOLUTION 2020-11 RESOLUTION TO ADOPT THE CAPITAL IMPROVEMENT PLAN COMPLETED BY JONES & HENRY ENGINEERS, LTD WHEREAS, the Village of Farwell was awarded a Stormwater, Asset Management, and Wastewater Grant (SAW Grant) for the completion of an Asset Management Plan (AMP) consistent with the requirements of the Michigan Department of Environment, Great Lakes, and Energy (EGLE). The SAW Grant was in the amount of $365,000.00 with no local match requirement. Jones & Henry Engineers, Ltd (J&H) of Kalamazoo, Michigan was retained to perform the work in support of the production of the Asset Management Plan. WHEREAS, Jones & Henry Engineers, Ltd has completed the production of the Asset Management Plan and submitted the Draft to the Village of Farwell for review and comment. The Village has performed their review and provided comments to J&H which have been incorporated into the Draft of the AMP. WHEREAS, the AMP includes a Capital Improvement Plan to act as a guide regarding the need for the provision of capital to complete necessary repairs/replacement/service of the Village’s wastewater and sewerage assets. NOW, THEREFORE, BE IT RESOLVED THAT: The Village Council hereby adopts the AMP Capital Improvement Plan, which will be submitted to EGLE for comment/approval, on this 17th day of November 2020. AYES: NAYES: Resolution declared adopted by the Farwell Village Council at a regular council meeting on Tuesday, November 17, 2020. I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Village Council of the Village of Farwell, Township of Surrey, County of Clare, State of Michigan, at a regular meeting held on October 20, 2020, and that said meeting was conducted and public notice of said meeting was given pursuant to and in compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were recorded and will be or have been made available as required by said Act. __________________________________________________________ Adrian Krawczynski, Village Clerk/Treasurer Date Page 30 of 32  VILLAGE OF FARWELL RESOLUTION 2020-12 RESOLUTION TO ADOPT THE ASSET MANAGEMENT PLAN RATE METHODOLOGY COMPLETED BY JONES & HENRY ENGINEERS, LTD WHEREAS, the Village of Farwell was awarded a Stormwater, Asset Management, and Wastewater Grant (SAW Grant) for the completion of an Asset Management Plan (AMP) consistent with the requirements of the Michigan Department of Environment, Great Lakes, and Energy (EGLE). The SAW Grant was in the amount of $365,00.00 with no local match requirement. Jones & Henry Engineers, Ltd (J&H) of Kalamazoo, Michigan was retained to perform the work in support of the production of the Asset Management Plan. WHEREAS, Jones & Henry Engineers, Ltd has completed the production of the Asset Management Plan and submitted the Draft to the Village of Farwell for review and comment. The Village has performed their review and provided comments to J&H which have been incorporated into the Draft of the AMP. WHEREAS, the AMP includes a Rate Methodology to act as a guide regarding the development of sewer rates to fund the Capital Improvement Plan set forth in the AMP and operational and maintenance funds to complete necessary repairs/replacement/service of the Village’s wastewater and sewerage assets. WHEREAS, the AMP Rate Methodology will be shared with the Village’s outside rate consultant for consideration in the establishment of the Village’s final rate structure to be adopted under a future resolution. NOW, THEREFORE, BE IT RESOLVED THAT: The Village Council hereby adopts the AMP Rate Methodology, which will be submitted to EGLE for comment/approval on this 17th day of November 2020. AYES: NAYES: Resolution declared adopted by the Farwell Village Council at a regular council meeting on Tuesday, November 17, 2020. I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Village Council of the Village of Farwell, Township of Surrey, County of Clare, State of Michigan, at a regular meeting held on October 20, 2020, and that said meeting was conducted and public notice of said meeting was given pursuant to and in compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were recorded and will be or have been made available as required by said Act. __________________________________________________________ Adrian Krawczynski, Village Clerk/Treasurer Date Page 31 of 32  VILLAGE OF FARWELL RESOLUTION 2020-13 RESOLUTION TO ADOPT THE ASSET MANAGEMENT PLAN COMPLETED BY JONES & HENRY ENGINEERS, LTD. WHEREAS, the Village of Farwell was awarded a Stormwater, Asset Management, and Wastewater Grant (SAW Grant) for the completion of an Asset Management Plan (AMP) consistent with the requirements of the Michigan Department of Environment, Great Lakes, and Energy (EGLE). The SAW Grant was in the amount of $365,000.00 with no local match requirement. Jones & Henry Engineers, Ltd (J&H) of Kalamazoo, Michigan was retained to perform the work in support of the production of the Asset Management Plan. WHEREAS, Jones & Henry Engineers, Ltd has completed the production of the Asset Management Plan and submitted the Draft to the Village of Farwell for review and comment. The Village has performed their review and provided comments to J&H which have been incorporated into the Draft of the AMP. NOW, THEREFORE, BE IT RESOLVED THAT: The Village Council hereby adopts the Asset Management Plan, which will be submitted to EGLE for comment/approval on this 17th day of November 2020. AYES: NAYES: Resolution declared adopted by the Farwell Village Council at a regular council meeting on Tuesday, November 17, 2020. I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Village Council of the Village of Farwell, Township of Surrey, County of Clare, State of Michigan, at a regular meeting held on October 20, 2020, and that said meeting was conducted and public notice of said meeting was given pursuant to and in compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were recorded and will be or have been made available as required by said Act. __________________________________________________________ Adrian Krawczynski, Village Clerk/Treasurer Date Page 32 of 32