Finance Committee

Finance Committee Meeting Minutes August 21, 2018 Chairman Zwart called the meeting to order at 6:11 PM. Members Present: Aldermen Zwart, Spiegelberg and Rosek Staff Present: Mayor Nold, Kitsembel, Freber, Pickart, Sullivan, Golz, Gallo, Kelliher, Buerger, Duffy, Schuh and Coenen Others Present: Alds. Kowieski, Ellis, Shaw and Miller, and Atty. Riffle 2. Consider/recommend Authorizing Expenditure to Repair the Shelter at Roosevelt Park Kelliher reported the shelter at Roosevelt Park cost $36K to build in 1983 and had a life expectancy of 35 years. During inspection of the shelter it was found that the support posts need replacement. Council previously requested staff do an RFP to determine repair or replacement costs and Collins Engineering recommends repair of the structure at an approx. cost of $46,500. Parks & Rec Board reviewed and recommend a budget amendment of $49K for this unbudgeted item which includes 5% contingency. Sullivan stated the City has $77K in contingency and nothing has been spent so far this year. Kelliher stated the shelter is rented mostly on weekends and the annual revenue is $8K. Motion by Rosek to recommend authorizing expenditure of $49K to repair the shelter at Roosevelt Park; second by Spiegelberg. Motion carried 3-0. 3. Consider/recommend Agreement for City Services Between the City of Oconomowoc and PHW Oconomowoc, Inc (Towner Crest Senior Living) Sullivan reported PHW Oconomowoc (Presbyterian Homes), which is tax exempt, has agreed to enter into a PILOT Agreement (payment in lieu of taxes) for City services. This means that PHW is agreeing to pay for services in the same manner as if it were a taxable property. The agreement calls for a payment equal to the fair market value of the property times the City mill rate. Additionally, this agreement will transfer to a new owner if the facility is sold, unless it’s sold to a taxable entity. Since the PILOT is based on property value, there will be no renegotiations. The Committee noted that on Page 4, Item 2.06 of the agreement it references Washington County and it should be Waukesha County. Motion by Rosek to recommend the agreement for City services with PHW Oconomowoc, Inc.; second by Spiegelberg. Motion carried 3-0. 4. Consider/act on Vouchers Motion by Rosek to approve the vouchers in the amount of $3,034,029.36; second by Zwart. Motion carried 3-0. Motion by Zwart to adjourn; second by Rosek. Motion carried 3-0. The meeting adjourned at 6:24 PM. Minutes taken by Diane Coenen, City Clerk Ald. Rosek, Secretary S:\Committees - Commissions\Finance\Minutes\2018\FCMin8-21-18.doc