Village Board

EAST TROY SPECIAL VILLAGE BOARD MINUTES April 23, 2018 Page 1 of 4 Call Meeting to Order; Pledge of Allegiance Administrator Suhm verified the meeting was posted according to law. Roll Call: President Seager called the meeting to order at 6:30 p.m. Present: President Scott Seager, Trustees John Alexander, Alexander Alger, Alan Boyes, John J. Jacoby and Matt Johnson Excused: Trustee Forty Renucci Others: DPW Director Equitz, Administrator Suhm, Attorney Geary Youth in Government Representatives Taylor Grenier Citizen Participation No citizen participation. Consent Agenda (One motion and second will approve all of the following items. Any item may be pulled from the list and voted on separately.) 1. Approval Minutes – 4/16/18 2. Consider approval of Special Event Permit & Temporary Class “B” Picnic License to Lady Legends “5th Annual Swing Into Summer” Girls Softball Tournament, J.J. Lund, Event Chairman. Softball games June 1, 2 and 3rd, 2018 at the Rossmiller Sports Complex Baseball Fields known as the Mitchell Park Fields (1, 2 & 3), Center Field, field lights and use of Mitchell Field Concession Stand. Trustee Boyes requested to remove the minutes from the consent agenda stating he needed to abstain from them. Motion by Trustee Alexander, second by Trustee Johnson, to approve item 2 of the consent agenda. Advisory – Motion carried. Village Board – Motion carried. Motion by Trustee Alexander, second by Trustee Johnson, to approve the minutes. Trustee Boyes abstained. Advisory – Motion carried. Village Board – Motion carried. Miscellaneous Business 1. Consideration of request submitted for second driveway at 1964 Fremont Street, Robert Tuler, applicant Motion by Trustee Johnson, second by Trustee Alger, to approve the second driveway at 1964 Fremont Street. Advisory – Motion carried. Village Board – Motion carried. 2. Consideration of Resolution 2018-08 approving an amendment to the project plan boundaries of Tax Incremental District No. 3, Village of East Troy, Wisconsin  EAST TROY SPECIAL VILLAGE BOARD MINUTES April 23, 2018 Page 2 of 4 Dawn Gunderson, Ehlers, reviewed the history of the TID being established in 1998, a boundary amendment in 2005, and distressed declaration in 2011. She stated the good news is the district has turned around and revenues exceed expenditures. There is, however, a struggle for the Village because the expenditure period ended, so it is difficult to promote the vacant properties that did not develop. This amendment will subtract territory that has not previously developed. She reviewed the prior and proposed boundaries of TID 3 in the project plan. The parcels that will remain in TID 3 will provide sufficient cash flow to meet obligations and the district closure year will not be extended, it will close in 2022. Motion by Trustee Alexander, second by Trustee Johnson, to approve Resolution 2018-08. Advisory – Motion carried. Village Board – Motion carried. 3. Consideration of Resolution 2018-09 approving the project plan and establishing the boundaries for and the Creation of Tax Incremental District No. 4, Village of East Troy, Wisconsin Dawn Gunderson, Ehlers, stated that on April 9 the Joint Review Board and Plan Commission reviewed the project plans. The Plan Commission did approve both. The start date for the life of the district is the date the resolution being presented is approved. She stated the Joint Review Board will reconvene on May 1 to review the action by the Plan Commission and Village Board. The district is a mixed-use district, which includes commercial, industrial and residential. Although residential is not currently planned, it would be allowed, provided it meets specific density requirements and does not exceed 35% of the overall area of the district. She reviewed the proposed boundaries of TID 4 and the project list. The first expenditure will be the acquisition of 166 acres of land by the Village. She also reviewed the financing and the amount of development that would be needed to support all the projects. It was explained the Village plans to approach infrastructure in phases as development warrants it. Motion by Trustee Johnson, second by Trustee Alexander, to approve Resolution 2018-09. Advisory – Motion carried. Village Board – Motion carried. 4. Resolutions for bond issues associated with tax 2018-2019 Capital Projects and Tax Incremental District No. 4 land purchase and associated costs Dawn Gunderson, Ehlers, reviewed items a through c. She explained the bond issue will be corporate bonds because of the length of financing, which is $16 years. General obligations bonds are for periods longer than 20 years, corporate bonds are 10-20 years and promissory notes are up to 10 years. The debt issue is tax exempt. After both bond issues, the Village will be at 45% of its statutory debt limit and have $10 million of borrowing capacity remaining. The first six months of interest were capitalized. The first payment would have been due in November, but they did not want to impact the budget for this year. At the May 21st meeting results from a competitive sale will be presented. a. Initial resolution authorizing $905,000 general obligation bonds for street improvement projects (Resolution 2018-10) Motion by Trustee Johnson, second by Trustee Jacoby, to approve Resolution 20108-10. Advisory – Motion carried. Village Board – Motion carried.  EAST TROY SPECIAL VILLAGE BOARD MINUTES April 23, 2018 Page 3 of 4 b. Initial resolution authorizing $415,000 general obligation bonds for water system projects (Resolution 2018-11) Motion by Trustee Johnson, second by Trustee Alexander, to approve Resolution 2018- 11. Advisory – Motion carried. Village Board – Motion carried. c. Resolution providing for the sale of $1,320,000 general obligation corporate purpose bonds, Series 2018A (Resolution 2018-12) Motion by Trustee Johnson, second by Trustee Jacoby, to approve Resolution 2018-12. Advisory – Motion carried. Village Board – Motion carried. Dawn Gunderson, Ehlers, reviewed items d and e. She explained these are general obligation bonds. They are taxable bonds because of the possibility of selling the land at some point. Although they are taxable, she also explained there is not a big difference in the tax-exempt rate and taxable rate due to tax law changes. She anticipates a closing on the borrowing on June 7, so funds will be received prior to the closing on property in mid- June. She explained the principal payments on the borrowing will be delayed until 2023 and interest for the first 3.5 years is capitalized so it does not impact the levy. The soonest there will be an impact on the levy is 2021. There is an ability to call the bonds in 2028. d. Initial resolution authorizing $2,105,000 general obligation bonds for community development projects in Tax Incremental District No. 4 (Resolution 2018-13) Motion by Trustee Alexander, second by Trustee Johnson, to approve Resolution 2018- 13. Advisory – Motion carried. Village Board – Motion carried. e. Resolution providing for the sale of $2,105,000 taxable general obligation community development bonds, Series 2018B (Resolution 2018-14) Motion by Trustee Johnson, second by Trustee Jacoby, to approve Resolution 2018-14. Advisory – Motion carried. Village Board – Motion carried. 5. Discussion and possible action regarding additional work and costs associated with Village Square watermain project DPW Equitz informed the Board an underground storage tank was found at the corner of Main Street and Church Street during the watermain project. The tank does contain oil and sand (sand was likely added when the tank was abandoned). Jason has been working with Ayres, which has a department that specializes in underground tank removal. He explained the tank will need to be pumped and then removed. After it is removed the soil will need to be tested to ensure it is not contaminated. There were no indications the tank is currently leaking. The range in cost was $7,450 to $16,540 because the pricing is based on the quantity of oil that needs to be removed from the tank. It was estimated the tank itself would hold 300-500 gallons. The property owner, Betty Parman, clarified the tanks associated with the building’s prior use as a gas station had been removed. It was speculated this tank could have been used for heating oil, but it was unclear. Discussed the overall project budget, with DPW Equitz reporting it was at 905,000 and now is  EAST TROY SPECIAL VILLAGE BOARD MINUTES April 23, 2018 Page 4 of 4 between 915,000-920,000 due to change orders. Attorney Geary reviewed the contract and stated he would like to see the insurance addressed, they have a 1,000,000 limit and he would like to see that increased and suggested 5,000,000. He noted the contract stated they could get additional coverage. He also advised he would like to see the Village listed as an additional insured. The Board discussed the limit on insurance and determined it should be increased to 2,000,000. The Board also discussed approving an extra dollar amount so DPW Equitz did not need to hold up the project for additional approvals. Motion by Trustee Johnson, second by Trustee Boyes, to authorize DPW Equitz to proceed with the agreement pending the adjustment to the liability insurance amount and listing the Village as an additional insured, amount not to exceed $25,000 total. Advisory – Motion carried. Village Board – Motion carried. Closed session Adjourn to closed session pursuant to Wis. Stats. 19.85(1)(e) to conducting other specified public business, whenever, competitive or bargaining reasons require a closed session (potential development) Motion by Trustee Johnson, second by President Seager to adjourn to closed session pursuant to Wis. Stats. 19.85(1)(e) to conducting other specified public business, whenever, competitive or bargaining reasons require a closed session (potential development) President Seager Y Trustee Alexander Y Trustee Alger Y Trustee Boyes Y Trustee Jacoby Y Trustee Johnson Y Reconvene in Open Session Possible action on closed session matters No action taken. Adjourn Motion by President Seager, second by Trustee Jacoby to adjourn at 7:34 p.m. Motion carried. Respectfully Submitted, Eileen Suhm Administrator