Regular Council

AGENDA Regular Council Meeting 6:00 PM - Monday, December 19, 2022 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 4-8 a. *Monday, December 5th, 2022 Regular Council Meeting Minutes 12.05.2022 Regular Council Meeting Minutes - UA 9 - 11 b. *Thursday, December 15th, 2022 Special Council Meeting Minutes Page 1 of 25  12.15.2022 Special Council Meeting Minutes - UA IV. PUBLIC COMMENT V. UNFINISHED BUSINESS 12 a. Revised Leak Policy Water Leak - Adjustment Policy b. MML Elected Officials Training c. Warrant/Water Meter VI. NEW BUSINESS 13 a. Council Committee Selections >Finance >Parks & Rec >DPW >Personnel Village of Farwell Committee Selections b. Planning Commission Appointment c. Budget Workshop Dates d. State of Michigan Waterworks System Operator - N. Silvestro 14 e. T-Mobile T-Mobile 12.01.2022 f. Aflac 15 - 20 g. Audit Engagement Letter Engagement Letter 21 h. Fleis & Vandenbrink Invoice No. 64335 Invoice No. 64335 22 i. Headworks Building Request Headworks Building Request VII. ADMINISTRATIVE REPORT Page 2 of 25  VIII. TREASURER REPORT 23 a. 11.30.2022 Bank & Fund Report 24 b. 12.2022 Treasurer's Report (12.16.2022) IX. ZONING REPORT X. COMMITTEE REPORT a. Finance b. Parks & Rec 25 c. DPW 12.15.2022 Minutes d. Personnel XI. PRESIDENT DISCUSSION XII. ADDITIONAL REMARKS XIII. EXTENDED PUBLIC COMMENT XIV. ADJOURNMENT NEXT REGULAR COUNCIL MEETING ON TUESDAY, JANUARY 3, 2022 Page 3 of 25  MINUTES Regular Council Meeting 6:00 PM - Monday, December 5, 2022 Village Council Room The Regular Council of the Village of Farwell was called to order on Monday, December 5, 2022, at 6:00 PM in the Village Council Room, with the following members present: PRESENT: President Tracey Jackson, Trustee Linda Williams, Trustee Amanda Pfruender, Trustee Gina Hamilton, Trustee Jeff Linton, and Trustee Shawn Burger EXCUSED: LATE: I. APPROVAL OF THE AGENDA a. Trustee Amanda Pfruender made a motion to approve the agenda as presented Trustee Jeff Linton 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 Linda Williams made a motion to approve the consent agenda Trustee Amanda Pfruender seconded the motion. Motion Carried III. *ADOPTION OF MINUTES a. *Monday, November 21st, 2022 Regular Council Meeting Minutes IV. APPROVAL OF PAYMENT OF BILLS AND PAYROLL FOR NOVEMBER 2022 IN THE AMOUNT OF $79,060.92 a. Trustee Gina Hamilton made a motion to approve the payment of bills and payroll for November 2022 in the amount of $79,060.92 Trustee Amanda Pfruender seconded the motion. Roll Call. Yeas: Trustee Gina Hamilton, Trustee Amanda Pfruender, Trustee Linda Williams, Trustee Jeff Linton, Page Page41ofof25  Trustee Shawn Burger, and President Tracey Jackson. Nays: None. Absent: One vacant. Motion Carried. V. PUBLIC COMMENT a. No public comment received. VI. UNFINISHED BUSINESS VII. NEW BUSINESS a. Mr. Seckler was not present, but President Jackson did discuss some areas that the resident was inquiring about including the placement of a shed on a parcel by the Mill Pond, which Zoning Administrator Albright is working on. President Jackson also informed the Council that the DPW was informed to turn on the valve to allow for waterflow to his overflow by the old Mill area. b. Brian Rowley from Fleis & Vandenbrink was present to Council some updates on the Sewer Grant and to review the grant process. c. A leak adjustment was presented to Council and Council deliberated on allowing for an increase in the leak adjustment because of the large nature of the residential leak. A revised leak policy with a provision in regard to special circumstances will be brought to Council at the December 19th meeting. Trustee Shawn Burger made a motion to approve for a leak adjustment increase from fifty percent to seventy-five percent in the total amount of $1,753.98 for 162 E. Illinois St. Trustee Amanda Pfruender seconded the motion. Motion Carried. d. The 2023 Calendar year Meeting Schedule was presented and reviewed. Trustee Gina Hamilton made a motion to approve the 2023 Calendar year Meeting Schedule as presented Trustee Linda Williams seconded the motion. Motion Carried e. The Council Rules of Procedure for 2023 was reviewed. Trustee Gina Hamilton made a motion to adopt the Council Rules of Procedure Trustee Amanda Pfruender seconded the motion. Council Rules of Procedure f. Training through the MML for elected officials was discussed. The MML will come and do in person training, which the Village could possibly cost share with other municipalities. The total cost for a three hour in person training is $1,500.00. Council will review their schedules at discuss at the next meeting to look at some possible dates that will work. Page Page52ofof25  g. President Tracey Jackson appointed Trustee Amanda Pfruender as President Pro Tempore. h. The Village was approached to join the Clare Area Chamber of Commerce and Council discussed the benefits of doing so. Trustee Amanda Pfruender made a motion to join the Clare County Area Chamber of Commerce with an annual membership application fee no more than $250.00 Trustee Linda Williams seconded the motion. Clare Area Chamber of Commerce i. 2023 Clerk's Institute Training for Lisa and Adrian was reviewed. Trustee Amanda Pfruender made a motion to approve sending Lisa Graham and Adrian Krawczynski to the 2023 Clerk's Institute Training in March 2023, in the amount of $650.00 each plus mileage Trustee Gina Hamilton seconded the motion. Clare Area Chamber of Commerce VIII. ADMINISTRATIVE REPORT a. Clerk/Treasurer Krawczynski gave an update on the Mill Pond Grant. She also informed the Council that she received a subpoena in regard to the Village Park vandalism case. IX. COMMITTEE REPORT a. Finance b. Parks & Rec Committee Chair Gina Hamilton discussed the Lighted Parade/Holiday Event that was held this past weekend. There was also discussion about the old chairs in the Farmer's Market. It was the consensus of the Council to take photos and post that the chairs are free to public on a first come first serve basis. The purchase/need for a larger shed was also discussed. Parks & Recreation Committee Member Trustee Linda Williams resigned from the Committee due to personal reasons. New committees will be chosen at the December 19th meeting. c. DPW Upcoming meeting Thursday, December 15th d. Personnel X. PRESIDENT DISCUSSION a. President Tracey Jackson did not have any updates. Page Page63ofof25 XI. ADDITIONAL REMARKS a. Trustee Gina Hamilton informed everyone that there was a copy of the 2021 Water Quality Report for all Trustees. XII. EXTENDED PUBLIC COMMENT a. No public comment received. XIII. COUNCIL INTERVIEWS - VACANT TRUSTEE POSITION a. The Village Council conducted the following interviews for a vacant Trustee position, for a partial term ending with the next general election in November 2024: > Victoria Williams > Marvin Frayer > Elizabeth Andring > Tonya Roe XIV. DISCUSSION ON VACANT TRUSTEE APPLICANTS a. After all four of the interviews, the Council deliberated on who would be the best candidate for the vacancy. The chosen individual will be given the Oath of Office for Village Trustee at the next Council Meeting. Trustee Gina Hamilton made a motion to appoint Victoria Williams to the vacant Trustee position, with a partial term ending at the next general election in November 2024 Trustee Linda Williams seconded the motion. Roll Call. Yeas: Trustee Gina Hamilton, Trustee Linda Williams, Trustee Amanda Pfruender, Trustee Jeff Linton, Trustee Shawn Burger, and President Tracey Jackson. Nays: None. Absent: One vacant. Motion Carried XV. ADJOURNMENT a. Trustee Amanda Pfruender made a motion to adjourn the meeting at 7:31pm Trustee Gina Hamilton seconded the motion. Motion Carried NEXT REGULAR COUNCIL MEETING ON MONDAY, DECEMBER 19, 2022 AT 6:00PM Clerk/Treasurer Page Page74ofof25 President Page Page85ofof25  MINUTES Special Meeting 6:00 PM - Thursday, December 15, 2022 Village Council Room The Special of the Village of Farwell was called to order on Thursday, December 15, 2022, at 6:00 PM in the Village Council Room, with the following members present: PRESENT: President Tracey Jackson, Trustee Linda Williams, Trustee Amanda Pfruender, Trustee Gina Hamilton, Trustee Jeff Linton, Trustee Shawn Burger, and Trustee Victoria Williams EXCUSED: I. APPROVAL OF THE AGENDA a. Trustee Amanda Pfruender made a motion to approve the agenda as presented Trustee Gina Hamilton seconded the motion. Motion carried II. RESOLUTION TO APPOINT VICTORIA WILLIAMS TO THE OFFICE OF VILLAGE TRUSTEE a. Resolution 2022-12 "A Resolution of the Farwell Village Council Appointing Victoria Williams to Fill the Remainder of a Vacant Seat" Trustee Gina Hamilton made a motion to approve Resolution 2022-12 "A Resolution of the Farwell Village Council Appointing Victoria Williams to Fill the Remainder of a Vacant Seat" Trustee Amanda Pfruender seconded the motion. Roll Call. Yeas: Trustee Gina Hamilton, Trustee Amanda Pfruender, Trustee Jeff Linton, Trustee Shawn Burger, Trustee Linda Williams, and President Jackson. Nays: None. Absent: None. 1 Vacant. Motion Carried III. OATH OF OFFICE a. The Oath of Office for Village Trustee was administered to Victoria Williams. V. PUBLIC COMMENT a. No public comment was received. Page Page91ofof25 3 VI. NEW BUSINESS a. Trustee Linda Williams made a motion to approve a raise increase of $1.30 per hour for Clerk/Treasurer Adrian Krawczynski in response to the job descriptions and duties of the positions and to better align with other municipal wages, with the increase to be effective at the next pay period Trustee Shawn Burger seconded the motion. Roll Call. Yeas: Trustee Linda Williams, Trustee Shawn Burger, Trustee Jeff Linton, Trustee Victoria Williams, Trustee Amanda Pfruender, Trustee Gina Hamilton, and President Tracey Jackson. Nays: None. Absent: None. Motion Carried b. Trustee Jeff Linton made a motion to approve a raise increase of $1.00 per hour for Deputy Clerk/Treasurer Lisa Graham in response to the job descriptions and duties of the positions and to better align with other municipal wages, with the increase to be effective at the next pay period Trustee Shawn Burger seconded the motion. Roll Call. Yeas: Trustee Jeff Linton, Trustee Shawn Burger, Trustee Linda Williams, Trustee Victoria Williams, Trustee Amanda Pfruender, Trustee Gina Hamilton, and President Tracey Jackson. Nays: None. Motion Carried c. Trustee Shawn Burger made a motion to approve a raise increase of $1.00 per hour for Parks and Recreation Coordinator/Administrative Assistant Rachael Humphrey in response to the job descriptions and duties of the positions and in response to the success that she has created in her positions such as the events and Farmer's Market performance, with the increase to be effective at the next pay period Trustee Jeff Linton seconded the motion. Roll Call. Yeas: Trustee Shawn Burger, Trustee Jeff Linton, Trustee Linda Williams, Trustee Victoria Williams, Trustee Amanda Pfruender, Trustee Gina Hamilton, and President Tracey Jackson. Nays: None. Absent: None. Motion Carried d. There was discussion in regard to the length of paying insurance for employees who are on worker's compensation Trustee Amanda Pfruender made a motion for the Village to continue to pay their portion of the health insurance premiums (91.5%) for Jason Walters, including the dependents on the plan, while being compensated through worker's compensation insurance, through the date of the employee's return to full duty, with the requirement that the employee continue paying their portion (8.5%), throughout the same timeframe Trustee Gina Hamilton seconded the motion. Roll Call. Yeas: Trustee Amanda Pfruender, Trustee Gina Hamilton, Trustee Linda Williams, Trustee Victoria Williams, Trustee Jeff Linton, Trustee Shawn Burger, and President Tracey Jackson. Nays: None. Absent: None. Motion Carried e. There was discussion on specific policies being placed/adopted in the employee handbook in regard to instances where employees are compensated through worker's compensation insurance such as the length of benefit continuation and time off accruals for future instances. It was the consensus of the Council allow for normal accrual of PTO and vacation due to a lack of written policy in the handbook at this time. There was also discussion on the rate and method of reimbursing employees who have opted-out of insurance Page Page 102ofof25 3  benefits. These items will be placed on the agendas proceeding the new fiscal year. VII. EXTENDED PUBLIC COMMENT a. No public comment was received. VIII. ADJOURNMENT a. Trustee Amanda Pfruender made a motion to adjourn the meeting at 7:00pm Trustee Gina Hamilton seconded the motion. Motion Carried NEXT REGULAR COUNCIL MEETING ON MONDAY, DECEMBER 19, 2022 AT 6:00PM Clerk/Treasurer President Page Page 113ofof25 3 Village of Farwell Water Leak Adjustment Policy The purpose of this policy is to provide an opportunity for residential and commercial customers to request a consideration for a financial adjustment to water and sewer bill, where a leak has been repaired on the customer’s side of the water meter. There has to show an exceptional unexplained increase in consumption. The customer must call and notify the Village of Farwell Office at (989)588-9926 that they have had a leak, the office will investigate by looking at their water/sewer history if they see a significant higher usage on the utility bill, and the leak has been fixed they will then calculate an adjustment. Formula: We will take the average of 3 normal water/sewer bills and calculate the difference from the increase impacted by the leak and then the Village will adjust the bill overage by half. (see example below) “Typical Normal” water bill 1,400 $52.42 Water bill impacted by leak 7,500 $76.91 Bill increase from the leak 6,100 $24.49 Credit to account 3,050 ($12.24) Bill after water leak adjustment 4,450 $64.66 Please note that you will ALWAYS have to pay your monthly utility water and sewer bill, if granted the adjustment, it will reflect on a future monthly bill. All adjustments are subject to the review of the Village Council, and in the event of extreme leak circumstances, Council may allow for a larger leak adjustment beyond the traditional adjustment of the overage by half. Each leak adjustment requested beyond the traditional adjustment method will be reviewed on a case by case scenario. A Leak Adjustment may be granted if all criteria as follows……….. a. The customer must contact the Village Office and notify them of a leak b. The customer has filled out a Leak Adjustment Form c. Must provide proof that the leak has been fixed and who fixed the leak or a receipt d. The refund cannot be calculated until after the leak is fixed and the next billing cycle so the office can see that the usage has gone back to a normal usage. However, no adjustments will be granted where any of the following situations exist: 1. Leak was caused by a third party from whom the customer is able to recover their costs. Examples include, but are not limited to, theft, vandalism, negligence and construction damage, unoccupied or vacant properties. 2. When leak continues for three (3) or more months, there will be no adjustment for the third or subsequent months. 3. The meter at the property has been accessed, tampered with, or turned on/off by anyone other than a Village of Farwell DPW employee and that action results in loss of water. 4. You will be allowed 1 leak adjustment a year. (One year from a previous adjustment date) Amended and Adopted on Monday, December 19, 2022 Page 12 of 25  Committees 2022 President: Tracey Jackson President Pro-Tempore: Amanda Pfruender Finance Committee 1. (Chair) Gina Hamilton 2. Allen Brewer 3. Jeff Linton DPW Committee 1. (Chair) Jeff Linton 2. Shawn Burger 3. Linda Williams Parks & Rec Committee 1. (Chair) Gina Hamilton 3. Allen Brewer 4. Linda Williams Personnel Committee 1. (Chair) Amanda Pfruender 2. Shawn Burger 3. Linda Williams 2023 President: Tracey Jackson President Pro-Tempore: Amanda Pfruender Finance Committee (Morning of every Council Meeting – 2 per month - 8am) 1. (Chair)______________________________ 2. ___________________________________ 3. ___________________________________ DPW Committee (Thursday before 2nd Council Meeting – sometimes Wednesday – 5:30pm) 1. (Chair)______________________________ 2. ___________________________________ 3. ___________________________________ Parks & Rec Committee (1st Thursday each month. 5:30pm) 1. (Chair)______________________________ 2. ___________________________________ 3. ___________________________________ Personnel Committee (Typically in the evening) 1. (Chair)______________________________ 2. ___________________________________ 3. ___________________________________ Page 13 of 25  -'FMobile" December 1, 2022 Village of Fan/vell 109 1/2 S. Hall St., PO Box 374 Farwell, Michigan 48622 Attn: Village President Re: MT04678B (the ”Site”) 151551[6/4/2037] (including any amendments, the ”Agreement”) Hello Landlord, I am writing to request your help in an important Uncarrier effort we are undertaking here at T—Mobileon our quest to deploy 5G for all. Our merger with Sprint in April 2020 allowed us to expand our network and improve the way we serve our customers, and we are continuing to look for ways to improve our business and provide better value for our customers. To do this, we've started looking broadly at our cost base to ensure we can continue to deliver the market- leading 5G experience at market—|eading rates. To that end, we are reaching out to you, as our landlord and a valued strategic partner, to create a sustainable cost structure in 2022 and beyond. Our largest infrastructure partners have already provided significant cost reductions in support ofthis effort. We are asking partners, like yourself, to consider the |ong—term value of our business relationship and work with us to achieve the sustainable cost structure we need. This effort is essential to ensure the continued viability of your property as a technology location for the T-Mobile 5G network. The rent at this Site is above nearby sites and Build-to-Suit opportunities in the nearby area. To bring our Agreement into a sustainable cost structure, we are seeking the following: - Base Rent Reset: A monthly rent reduction from $1,603.78 to $1,100.00. 0 Growth Rate: A flat 10% per term growth rate (escalator), inclusive of unfettered modification rights. We want to show our commitment to this partnership by pledging to a long-term extension. We are also happy to explore upfront cash opportunities as well if that is of interest to you. Our sincere preference is to continue using your property, but the vast number of duplicative sites resulting from the recent Sprint/T-Mobile merger compels us to investigate all alternative avenues to keep costs down for our customers. After assessing our newly expanded portfolio, we found 1 nearby alternative |ocation(s) meeting our network and cost structure needs that must be considered. Your help with these cost reductions will enable T—Mobileto continue growing its business in the best interest of our Page 14 of 25 customers. Thank you for your continued engagement in helping build America's best 5G network. Please note that T- Mobile has engaged Pyramid Network Services as our agent for these discussions. We trust we can count on your support. Pyramid Network Services will be reaching out by December 31, 2022 to discuss this opportunity. December 15, 2022 Village Council Village of Farwell P.O. Box 374 Farwell, MI 48622 Dear Council: The following represents our understanding of the services we will provide Village of Farwell, Michigan (the “Village”). You have requested that we audit the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Village, as of February 28, 2023, and for the year then ended and the related notes, which collectively comprise the Village’s basic financial statements as listed in the table of contents. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS) will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Accounting principles generally accepted in the United States of America, (U.S. GAAP) require that management’s discussion and analysis, budgetary comparison information, schedule of changes in employer’s net position liability and related ratios, and the schedule of employer contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB), who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America, (U.S. GAAS). These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency with management’s responses to our inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by U.S. GAAP. This RSI will be subjected to certain limited procedures but will not be audited: Page 15 of 25  1) Management’s Discussion and Analysis 2) Required Budgetary Comparison Schedules – all major funds 3) Schedule of Changes in Employer’s Net Pension Liability and Related Ratios – MERS 4) Schedule of Employer Contributions - MERS Supplementary information other than RSI will accompany the Village’s basic financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and perform certain additional procedures, including comparing and reconciling the supplement information to the underlying accounting and other records used to prepare the basic financial statements or the basic financial statements themselves, and additional procedures in accordance with U.S. GAAS. We intend to provide an opinion on the following supplementary information in relation to the basic financial statements as a whole: 1) Component Unit Balance Sheet 2) Component Unit Statement of Revenues, Expenditures and Changes in Fund Balance Auditor Responsibilities We will conduct our audit in accordance with GAAS. As part of an audit in accordance with GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.  Conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village of Farwell’s ability to continue as a going concern for a reasonable period of time. Because of the inherent limitation of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any other periods. Compliance with Laws and Regulations As previously discussed, as part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we will perform tests of the Village’s compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Page 16 of 25 Management Responsibilities Our audit will be conducted on the basis that management and those charged with governance acknowledge and understand that they have responsibility: a. For the preparation and fair presentation of the basic financial statements in accordance with accounting principles generally accepted in the United States of America; b. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of basic financial statements that are free from material misstatement, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements; c. To provide us with: i. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements, and relevant to federal award programs, such as records, documentation, and other matters; ii. Additional information that we may request from management for the purpose of the audit; and iii. Unrestricted access to persons within the Village from whom we determine it necessary to obtain audit evidence. d. For including the auditor’s report in any document containing basic financial statements that indicates that such basic financial statements have been audited by the entity’s auditor; e. For identifying and ensuring that the entity complies with the laws and regulations applicable to its activities; f. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole; and g. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work; h. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets; i. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance; j. For the accuracy and completeness of all information provided; k. For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and l. For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter. With regard to the supplementary information referred to above, you acknowledge and understand your responsibility: (a) for the preparation of the supplementary information in accordance with the applicable criteria; (b) to provide us with the appropriate written representations regarding supplementary information; (c) to include our report on the supplementary information in any document that contains the supplementary information and that indicates that we have reported on such supplementary information; and (d) to present the supplementary information with the audited basic financial statements, or if the supplementary information will not be presented with the audited basic financial statements, to make the audited basic financial statements readily available to the intended users of the supplementary information no later than the date of issuance by you of the supplementary information and our report thereon. As part of our audit process, we will request from management, written confirmation concerning representations made to us in connection with the audit. Page 17 of 25 Nonattest Services With respect to any nonattest services we perform, we agree to perform the following: a. Propose adjusting or correcting journal entries to be reviewed and approved by Village management. b. Assist in preparing the financial statement of the Village in conformity with U.S. generally accepted accounting principles based on information provided by you. c. Prepare Form F-65, Act 51, and Municipal Finance Qualifying Statement in accordance with requirements of the State of Michigan. d. Assist in calculating depreciation, based upon assets acquired in accordance with the Village’s capitalization policy and useful lives assessed by the Village. e. Assist in calculating net pension liabilities and other GASB 68 calculations. We will not assume management responsibilities on behalf of the Village. However, we will provide advice and recommendations to assist management of the Village in performing its responsibilities. The Village’s management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Our responsibilities and limitations of the engagement are as follows: ‐ We will perform the services in accordance with applicable professional standards ‐ The nonattest services are limited to adjusting journal entries, preparation of the financial statements, Form F-65 preparation and depreciation calculations and calculating GASB 68 liabilities previously outlined. Our firm, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities, including determining account coding’s and approving journal entries. Reporting We will issue a written report upon completion of our audit of the Village’s basic financial statements. Our report will be addressed to the governing body of the Village. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add an emphasis-of-matter or other-matter paragraph(s) to our auditor’s report, or if necessary, withdraw from the engagement. If our opinions on the basic financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. Engagement Administration, Fees, and Other We understand that your employees will prepare all confirmations we request and will locate any documents or support for any other transactions we select for testing. We will schedule the engagement based in part on deadlines, working conditions, and the availability of your key personnel. If you intend to publish or otherwise reproduce the basic financial statements and make reference to our firm, you agree to provide us with printers’ proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. Regarding the electronic dissemination of audited financial statements, including financial statements published electronically on your Internet website, you understand that electronic sites are a means to distribute information Page 18 of 25 and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non- financial date. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. By signing this engagement letter, you affirm that you have all the data and records required to make your books and records complete. During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications. Corinna Hervey, CPA is the engagement partner for the audit services specified in this letter. Her responsibilities include supervising H&S Companies P.C.’s services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the audit report. Our fee for these services will be at our standard hourly rates. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. The fees are based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes thirty (30) days or more overdue and will not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed even if we have not issued our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. You may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with you concerning the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter. Our audit engagement ends on the delivery of our audit report. Any follow-up services which might be required will be a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific engagement letter. During the course of the audit we may observe opportunities for economy in, or improved controls over, your operations. We will bring such matters to the attention of the appropriate level of management, either orally or in writing. You agree to inform us of facts that may affect the basic financial statements of which you may become aware during the period from the date of the auditor’s report to the date the financial statements are issued. The audit documentation for this engagement is the property of H&S Companies, P.C. and constitutes confidential information. However, we may be requested to make certain audit documentation available to U.S. Department of Agriculture, other federal agencies and the U.S. Government Accountability Office pursuant to authority given to it by law or regulation, or to peer reviewers. If requested, access to such audit documentation will be provided under the supervision of H&S Companies P.C.’s personnel. Furthermore, upon request, we may provide copies of selected audit documentation to these agencies and regulators. The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We agree to retain our audit documentation or work papers for a period of at least five years from the date of our report Page 19 of 25 At the conclusion of our audit engagement, we will communicate to the Village Board the following significant findings from the audit:  Our view about the qualitative aspects of the entity’s significant accounting practices;  Significant difficulties, if any, encountered during the audit;  Uncorrected misstatements, other than those we believe are trivial, if any;  Disagreements with management, if any;  Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process;  Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures;  Representations we requested from management;  Management’s consultations with other accountants, if any; and  Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. In accordance with the requirements of Government Auditing Standards, we have attached a copy of our latest external peer review report of our firm for your consideration and files. Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the arrangements for our audit of the basic financial statements including our respective responsibilities. We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff. Respectfully, H&S Companies, P.C. H&S Companies, P.C. Reed City, MI RESPONSE: This letter correctly sets forth the understanding of Village of Farwell: Governance Signature: Title: Date: Page 20 of 25  FLE|S&VANDENBRINK Fleis & VandenBrink 603 BAY STREET, FIRST FLOOR, TRAVERSE CITY, Ml 49684 2960 Lucerne Dr SE OFFICE: 231.932.8600 | FAX: 231.932.8700 Grand Rapids, Mi 49545 lnvonoe Village of Farwell 109 South Hall Street December 8' 2022 PO BOX Project No: 846541 Farwell’Ml 86 22 3744 Invoice No: 64335 — — Project 846541 Farwell Sewer Improvements Civil adrian@vii|ageoffarwell.org For professional services rendered for the period October 30, 2022 to November 26, 2022 Amount Previous Current Billing Phase Fee Billing Billing Billing Basic Services 274,000.00 107,340.84 65,739.32 41,601.52 Construction RPR 87,000.00 0.00 0.00 0.00 Additional Services 55,000.00 4,304.88 2,079.00 2,225.88 Total Fee 416,000.00 111,645.72 67,818.32 43,827.40 Total Fee 43,827.40 Total this Invoice $43,827.40 Thank you for your business, it is sincerely appreciated. If there are any questions regarding this invoice or the services provided, please contact us at AR@fveng.com. Terms: Net 15 days Page 21 of 25  Good afternoon Jason, As requested, we ran through options for a full bathroom and shower at the headworks building. I believe it will be feasible to make the layout work. Costs for the building addition and extra plumbing, mechanical, and electrical could approach $50—70k.This will make the overall project budget tight given today's bidding climate, but we are talking less that 5% of the total contract so I don't think it is deal breaker. I will defer to you for a final decision if you would like this included in the scope of the project. Please let me know how you would like to proceed. If you have any questions please let me know. Thanks, Scott Hall, PE Project Manager FLEIS & VANDENBRINK 2960 Lucerne Drive SE, Suite 100 | Grand Rapids | MI l49546 O: 616.977.1000 | D: 616.965.8767 | C: 231.720.5656 www.fveng.com Page 22 of 25  Village of Farwell Bank and Fund Report Endmg 11/30/2022 141 242 ms 254; 551 550 531 503 Am 41 Galena! Mamr um mm m Sewer Wawzr Dram 117531 Casmn?ank 1n1mm1m $2,14a,53332 Gzn m.1cnu37x 1n1mm3m $ 15:,373n3 Gzn mm cn 41373 1n1nmm3m1 $ 15:,373n3 Hunurmnn415455 1411m m3 m7 $ 24,251 m Hunurmnnlt??l 1n1mm3ms $ 23,55am wcunn 1n1mm3m3 $ 5,555m casmn?ank 2n2mm1m $ 1m,ms43 Casmn?ank 2n3mm1mn $ 17,31513 Casmn?ank 2_=.amm1m1 $ 5335573 rm Banknm 551mm3m1 $ 3,21742 Casnm?ank 53unmm1m $ 1,35135 c.13nma.m—er.m 53umm1m5 $ 73m Rmrxztm km any-7: ssnmnmsan $ 135,35am nmmm Bum any-7: ssumnmsm $ 44,mm Seluermm cn wcu 53umm3m5 $ 17231513 Casnm?ank 531mm1m $ 53572 Rmrxzwm km any-7: 531mnm5m $ 13n,53am Rmrxztm Bum any-7: 531mnm5m $ 575mm wamrmm cn wcu 531mm3nm $ 52112155 Casmn?ank sn3mm1m $21n,5453a $2,535,345 35 $ 1m,ms 43 $ 17,315 13 $ 53,355 73 $ 3,217 42 $ 353,531 13 $ 355,745 57 $214,545 35 $ 3,535,273 75 swam Fund 5.3.37.1; $ 7n1,732 55 $ 335,353 32 $ 13,m1 an $555,553 52 $71,151 17 $ 1,5n3,2n3 n5 $ 1,434,443 23 $ 133,434 32 $ 4,515,544 14 nmmm/anemmm $ 33,153 35 $ [2n1,4sn 45) $ 17,315 24 $ 7,145 33 $ 2,373 57 $ (2,313 an) 5 341,35535 $ 21,455 114 $ (25,524 25) Emma Fund 5.3.17.1; $ 3m,3u1 as $ 123,433 57 $ 35,317 114 $555,733 n1 $73,525 114 $ 1,5m,234 45 $ 1,454,743 24 $214,344 35 $ 4,78n,n1s 53 uanmm $1,7s3,21345 $ 2,17141 $ 5,3222n $ — $ — $ 525,44131 $ 2,223,23557 $ (14a7n) s 4,525,53514 mm uamhma Fur-1 saw-mz Page 23 of 25 $2,553,11533 $ 131,55n23 $ 35,233 24 $555,733 n1 $73,525n4 $ 2,125,73535 $ 3,5as,n35 11 $214,3n355 $ 3,4n5,315n3 -$1,75a,-mmmgemanm1 515151.151 Eranzmms Village of Farwell Treasurer’s Report as of 12/16/2022 ▪ Update on taxes collected as of November 14, 2022 ▪ Original Tax Roll: $265,854.96 ▪ Adjustments JBOR: $(1,132.12) ▪ Adjusted Original: $264,722.84 ▪ Interest added: $1,339.95 ▪ Total w/all adj.: $266,062.79 ▪ Collected to date: $234,544.24 (88.2%) ▪ Left to collect: $31,518.55 Village Tax Roll 300,000.00 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00 Adjusted Tax Roll Collected to Date Left to Collect Page 24 of 25  DPW Committee Meeting Minutes December 15, 2022 5:30pm – Village Hall Council Meeting Room The Regular DPW Committee meeting was called to order at 5:30 pm. Call meter to Order: 5:30 pm Pledge of Allegiance A roll call was conducted. The following were present: Trustee Jeff Linton, Trustee Linda Williams, and Trustee Shawn Burger. Also present was Clerk/Treasurer Adrian Krawczynski. I. Old Business a. The parts to repair the pickup truck are still on backorder. II. New Business a. Work orders were discussed. This will be discussed by Council at the meeting on Monday, December 19th. b. There was discussion on adding a toilet and shower stall/head at the lagoon in the headworks building. This will be brought to Council for further discussion at the meeting on Monday, December 19th. Trustee Linda Williams also brought up how having an emergency eyewash station would be beneficial. III. DPW Updates: a. Noah passed his waterworks system operator tests and now holds the D-4 and S-4 classifications. b. There was discussion in regard to the fencing around the new T-Mobile generator. IV. Complaints: V. Adjournment: 5:44 pm VI. Next Meeting: Wednesday, January 11th, 2022 at 5:30pm Page 25 of 25