Policies Established by the VLC Board

1.  Any single item or service costing more than $10,000 needs to be approved by the Administrative Council.

2.  Quotes will be required for any single item or service between $10,001 and $15,000 except for items for which the ILS vendor is the sole source.

3.  Competitive bids will be required for any single item or service costing more than $15,000 except for items for which the ILS vendor is the sole source.

4.  The VLC will add a five percent (5%) handling/shipping fee to any order it processes for members.

5.  All funds in excess of budgeted expenses will be transferred to the capital account when appropriate.

6.  If the VLC members, as a group, do not wish to purchase an ILS software module, then an individual member or members may add that module with the following stipulations:

A.  The individual member or members purchase the software and pay all associated costs.

B.  The VLC Board approves the purchase.

C.  The software module becomes the property of the VLC.

D.  Other VLC members are able to purchase accounts for the module.

7.  The Equipment Improvement/Replacement Fund will be financed through the operational budget and other funds that the Board approves.  The annual goal for the Fund will be established each fiscal year as a regular part of the budgeting process.  The progress of the Fund will be closely monitored and periodic financial reports will be provided.

8.  Should a VLC member absorb another institution/building, the VLC Finance Committee will review the costs involved in adding the additional holdings to the database and make recommendations regarding the appropriate assessments.

9.   The VLC will purchase insurance to cover the telecom equipment owned by the VLC, but housed at the member libraries.  The VLC will provide surge protection to all VLC owned equipment housed at the member library.

10. An investment policy, consistent with the objectives of capital preservation and current income, is in keeping with the fiduciary responsibilities of the VLC Board.

VLC shall keep at ready access such reserves as are necessary for the efficient operation of the organization.  All funds should be deposited in financial institutions authorized to operate in this State only.  Revenue collected by VLC for services rendered shall ordinarily be placed in interest-bearing accounts, such as:

A.  Sweep Account

B.  General Checking Account

C.  Certificates of Deposit

D.  Treasury Bills

E.  Money Market Account

Since the primary objective of this investment policy is safety, excess funds should first be directed into accounts at financial institutions taking advantage of the overall FDIC insurance level of $250,000 per financial institution.  In the event the total funds in a financial institution exceed the FDIC insurance level for that institution, consideration should be given to diversifying the investment accounts among multiple financial institutions to take advantage of the FDIC insurance levels.  If excess funds are invested in other than FDIC insured accounts, those excess funds should be invested in accounts that are fully guaranteed by the United States Government or obligations of the State of Michigan.

The Finance Committee will recommend to the Board through the Administrative Council, from time to time, the depositories of VLC funds.

11.  The mileage rate paid to VLC staff will be the current Internal Revenue Service mileage rate.  Meal reimbursement will be at the following rates: Breakfast: $12, Lunch: $14, and Dinner: $24.

12.  The auditor will conduct a Review Opinion of the VLC’s financial statements every other year.

13.  VLC Policy on Third Party Products Accessing the Horizon Databases (April 16, 2008).

Any VLC member wishing to purchase software or other products that will interact with the VLC Horizon database(s) and that software or other product is not a SirsiDynix product or authorized by SirsiDynix, must submit a request to the VLC to review the software or other product.

The VLC staff will then research the product and may contact the software manufacturer, SirsiDynix, and any other necessary resources to determine if the software or other product poses any potential threat to the integrity of the Horizon databases or in any way would compromise the stability of the Consortium.

The VLC staff will then report their findings to the Administrative Council generally within four weeks. The Council will then take make a recommendation to the Board concerning the matter.

14.  Approved the establishment of a part-time janitorial/maintenance position that will remain unfilled as long as the current maintenance contractor is employed by the VLC.

15.  Members wishing to reduce their number of seat licenses must give the VLC eighteen (18) months notice of the reduction.  If the net loss of seats in the entire Consortium is five or less for the fiscal year, then the eighteen (18) month notice period shall be waived.  All seat licenses dropped by members will remain the property of the VLC.  Members will be responsible for removing the Horizon client software from the machines that no longer have a license within one week of the effective reduction date.

16.  Members will send a request to the Executive Director for additional seats.  The Exec. Dir. will grant new seats and the appropriate fees will be charged to members unless there is a problem.  If there is a problem, the Executive Director will bring the matter to the Administrative Council.

17.  If members do not complete database projects, the VLC staff is authorized to delete the records that do not meet the standards as described in the project.