Village Board

EAST TROY VILLAGE BOARD MINUTES December 17, 2018 Page 1 of 5 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, Matt Johnson and Forty Renucci Excused: Others: Chief Swendrowski, DPW Director Equitz, Deputy Clerk Alexander, Youth in Government Representatives Matt Kisting and Mikayla Lamping Citizen Participation Steve Rostkowski, 2959 N. Shore Drive, Lake Association, discussed the amount of south shoreline owned by the Village and encouraged the Board to begin improvements on Village owned land prior to receiving the survey information from Lynch and Associates. 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 – Minutes 12/3/2018 2. Operator’s Licenses – Andreanne E. Coolman 3. Recommendation from Plan Commission to approve conditional use for growing crops at the East Troy Airport (various parcels) which is located in the light industrial zoning district, Village of East Troy, applicant Trustee Boyes requested Item 3 be pulled from the Consent Agenda. Motion by Trustee Alexander, second by Trustee Alger, to approve the Consent Agenda. Advisory – motion carried, Board – motion carried. Discussion of Item 3 included Trustee Boyes’ concern that by allowing crops at the Airport it would not provide the upgraded appearance that the Board had expressed an interest in achieving. DPW Equitz explained one of the largest benefits of leasing this as farm land is the amount of acreage his department doesn’t need to mow because this mowing takes several days per cut. He also explained that the Village has a current lease for 2019 and this conditional use is to comply with our zoning code. This is a one-year lease and the Board agreed to review this prior to renewal and suggested taking pictures during the growing season to have a better idea of the look presented by the crop growth. Motion by Trustee Johnson, second by Trustee Jacoby, to approve the conditional use permit. Advisory – motion carried, Board – motion carried. Miscellaneous Business 1. Sewer Rate Study Presentation John Cameron and Brian Roemer, Ehlers, presented the sewer rate study. Brian thanked DPW Equitz, Administrator Suhm and Deputy Treasurer Stegall for their assistance. Mr. Roemer  EAST TROY VILLAGE BOARD MINUTES December 17, 2018 Page 2 of 5 provided background on the sewer fund which had the last sewer rate increase in 2009 and was discussed during the financial management planning in 2017. In that plan revenue needs were identified, in particular for capital projects. This became the 2019 Clean Water Fund Loan (CWFL) for the South Street lift station project. The CWFL requires a review of the user charge system and a review of the Equipment Replacement Fund. Mr. Roemer discussed the purpose of the utility study is to develop self-sustaining rates, develop fair and equitable rates and examining any rate structure issues, in this case focusing on the equipment replacement fund. The method used for this study was the utility-based evaluation. The study presented that the Village has a healthy operation ratio and a positive net income, and the reserves of both restricted and unrestricted equipment replacement funds are fine. The Village is at an overall healthy level. Challenges facing the utility is there is an increase in the 2019 operating budget and debt service. This is due to the sewer apprentice being moved to employee status at a different rate and a change in budgeting practice, shifting items such as engineering services from capital to operational when they are ongoing costs and not reflective of capital projects. There will also be an increase in debt service for the new clean water fund debt issued and the equipment replacement fund, which is suggested to be increased based on the percentage method. The analysis of this fund and these impacts are to be done annually by staff. The study of the rates and cash flow indicated there is no need for increases in 2019, but there will be in 2020 and beyond of about 3% to maintain the desired ratio. The Village currently has a slightly higher than required by the CWF debt service ratio. The Board asked about opportunities to accelerate the loan repayments, however, that is not allowed with the Clean Water Fund Loan. DPW Equitz informed the Board that a principle forgiveness DNR grant was applied for by Applied Technologies on behalf of the Village, and the Village was awarded $177,000 principle forgiveness on the South Street lift station project. The Equipment Replacement Fund (ERF) was discussed and how monies in this fund can be used, the compliance level of the fund, and the level this fund should be at. Challenges that may affect the sewer fund were discussed including treatment of phosphorus, the age of the wastewater treatment plant and other capital improvement projects. The balance in this fund needs to be maintained to replace equipment with life spans expected to be less than 20-years should they fail, as these assets need to have funds available to cover them without borrowing. The analysis used only the near future CIP to impact the fund and that the WWTP is aging. The question was asked if it may be a sound idea to accelerate moving unrestricted funds to accommodate reaching the desired level of funding and if a study should be done to determine those affects. The compliance annual report and funding levels are self-policing. While with this plan, the Village will not reach the targeted fund balance amount for several years, it is a valuable resource for planning. The utilization of funds in the operations fund, equipment maintenance fund, and the equipment replacement fund were discussed.  EAST TROY VILLAGE BOARD MINUTES December 17, 2018 Page 3 of 5 The Board discussed preparing a resolution at this time to approve the suggested 3% increases in 2020 and 2021. The Board preferred to review this projection on an annual basis during the budget process and asked if this type of analysis could be done in the future by staff for the budget process when they are considering all the funds and enterprise funds in relation to the points for both the restricted and unrestricted fund amounts. If the numbers change there is the potential of not needing the projected amount of rate increase. President Seager stated that he can’t justify committing to the rate increase at this time and he would rather not raise rates if possible. John Cameron stated that the Village fund are currently healthy, there is no need for rate increase for 2019 and there could be a different picture by the end of 2019. 2. Consideration of approval of SMART Agreement (Suburban Mutual Response Team) The Village has been part of this group which hired a municipal attorney to have the agreement updated to reflect current state law. The Village Attorney and insurance company have reviewed the agreement and approved the language. Chief Swendrowski feels that participation in SMART is beneficial to allow for additional officers in any emergency. Motion by Trustee Johnson, second by Trustee Boyes, to approve the agreement to participate in the SMART program. Advisory – motion carried, Board – motion carried. President Seager took Item #6 out of order. 6. Discussion/Consideration of modifications to arcade and amusement device ordinance Deputy Clerk Alexander explained the memo and why the suggested changes to the Arcade License were being made. Trustee Boyes discussed the confusion with gaming machines and the differences in local and state enforcement issues of those. Motion by Trustee Boyes, second by Trustee Jacoby, to approve the modifications to the arcade and amusement device ordinance. Advisory – motion carried, Board – motion carried 3. Consideration of 2019 Municipal Fee Schedule Motion by Trustee Alexander, second by Trustee Boyes, to approve the 2019 Municipal Fee Schedule. Advisory – motion carried, Board – motion carried. 4. Consideration of engineering proposal for South St. force main replacement DPW Equitz explained his memo and the capital improvement project replacement of a portion of the force main on South St. lift station. This will be a replacement of a portion of the 6” cast iron pipe to an 8” plastic material pipe. This needs to be done in advance of any street reconstruction. All funds are from the 2019 budget and this will allow the design phase to start in preparation to get the project bid appropriately. Motion by Trustee Johnson, second by Trustee Alexander, to approve the engineering proposal for South St. force main replacement not to exceed $39,495.00. Advisory – motion carried, Board – motion carried.  EAST TROY VILLAGE BOARD MINUTES December 17, 2018 Page 4 of 5 The rates listed for the proposed engineering proposal were discussed and DPW Equitz stated that we are using them on South St. lift station and he has been happy with their work. 5. Consideration of proposal for Mitchel Park drainage project DPW Equitz explained that the project is at Mitchell Park to correct drainage on the fields and common areas to divert water away from the fields and pedestrian areas. The parking lots are currently complete, and this project will be funded with excess funds. Motion by Trustee Johnson, second by Trustee Boyes, to approve allocating $5,000 of 2018 surplus funds to cover the project in 2019. Advisory – motion carried, Board – motion carried. 7. Discussion/Clarification on fencing for dog park (verbal update) YIG Matt Kisting had spoken with members and staff from Key Club and provided the update. The Key Club has increased their raising goals for this year to $15,000 and have raised $1,500, they are continuing to fundraise and seek sponsors. Regarding the fence, they would prefer a no-climb with wood posts for the aesthetics and life span but proposed a heartwood fence because the longevity of this material is predicted at 50-60 years. DPW Equitz is concerned with on-going maintenance and would prefer a chain link or cyclone fence which is less attractive but less maintenance and a long life. President Seager asked if Parks & Recreation would be able to assist with funding for the fence. DPW Equitz said that he would discuss the possibility with Director Muszynski and to check for possible grant moneys that may be available. DPW Equitz would like to meet with the Key Club members to be everyone is on the same page for the style of fence and it was requested that representatives from Key Club come to another meeting to discuss the fence. Ordinances & Resolutions 1. Ordinance 2018-09 – Recommendation from Plan Commission to amend the Village’s zoning code with regard to conditional uses and related matters Trustee Renucci explained how Act 67 has affected the issuing of conditional use permits and that the Village is required by the State to follow these new regulations. The Village is no longer able to apply limits on conditional uses. This is an ordinance change to protect the Village from the changes from the State. This can be tweaked in the future if needed. Motion by Trustee Renucci, second by Trustee Alexander, to approve the Ordinance 2018-09. Advisory – motion carried, Board – motion carried. Reports 1. November Financial Report 2. Library Board Minutes – 11/13/2018 – DPW Equitz discussed the project his department is doing at the Library 3. Parks & Recreation Minutes – 9/10/2018 – DPW discussed the new park signs and explained that the old signs may not be able to be removed until Spring due to the frost 4. Municipal Court – November 2018 5. Update to Board on CDA formation 6. DRAFT Plan Commission Minutes 12/10/2018  EAST TROY VILLAGE BOARD MINUTES December 17, 2018 Page 5 of 5 7. Hwy 20 Update – DPW Equitz was notified that the DOT intends to do a resurfacing project on Hwy 20 from Townline Rd. west to Hwy. 67. He also received an update on the plan to reconstruct Hwy 20 from Thomas Dr. to Honey Creek Rd. and that there is a possibility that the work may be done in 2020 or the engineering will be done in 2020 for 2021. The Village will have a water main project in conjunction with this project. 8. Airport Advisory Committee Minutes – 03/12/2018 9. Airport Advisory Committee Minutes – 06/11/2018 10. Airport Advisory Committee Minutes – 09/10/2018 – there was discussion regarding the possibility of upgrading the security gate entrance system. Adjourn Motion by President Seager, second by Trustee Alexander, to adjourn at 8:25 p.m. Advisory – motion carried, Board – motion carried. Respectfully Submitted, Lorri Alexander Deputy Clerk