Finance, Taxes and Insurance

FINANCE COMMITTEE May 9, 2016 – Official 4:00 p.m. Members Present: Brian Lauer, Gil Amborn, Andy Ewert and Jim Schneider Excused: Leslie Strickland Also Present: Rebecca Ewald, Lori Peternell, Stephanie Charapata, Rick Mueller, Drew Hunn and Chris Young from Northwestern Mutual Lauer called the meeting to order at 4:00p.m. Motion made by Schneider, seconded by Amborn to approve the April 11, 2016 Regular Meeting Minutes with one correction. Motion carried. Motion made by Schneider, seconded by Amborn to approve the April 27, 2016 Special Meeting Minutes. Motion carried. Motion made by Amborn, seconded by Schneider to approve the May 4, 2016 Special Meeting Minutes. Motion carried. Motion made by Amborn, seconded by Kluth to move up agenda item #4. Motion carried. Drew Hunn and Chris Young were present to discuss the funds within the pension plan that received scorecard evaluations of 3.5. Any fund located below a 4 on the scorecard is placed on the watch list. Hunn stated that any fund that remains on the watch list for 8 consecutive quarters will be removed from the plan. Currently there are 6 funds that are on the watch list, with the PIMCO Low Duration Fund R being on the watch list for 7 consecutive quarters. The Finance Committee recommended that they remain on the watch list for an additional six months and review them at that time and requested Andrew Hunn from Northwestern Mutual to provide the Finance Committee with an update in November on the funds for purposes of monitoring the status of the fund. The Committee reviewed the quote from John’s Disposal for bulk item disposal. John’s Disposal has provided a quote for curbside bulk item pick up, to be done once, twice or three times per year at a cost of $3.25/unit. Once a year pick up would be a total cost of $6,656.25, twice a year would be $13,250.50 and three times a year would be $19,875.75. Motion made by Schneider, seconded by Amborn to include once per year curbside pickup in the 2017 budget at a cost of $6656.25. Motion carried. Discussion was held regarding the solid waste ordinance. Village ordinance requires that any building with 4 or more units be required to contract individually for garbage services. At the March meeting the Committee requested John’s Disposal review the properties that are not receiving service through the Village to determine the best method of collection and provide a quote for adding those properties to the contract. John’s Disposal has provided a quote in the amount of $17,080.32. The quote reflects providing the same service (carts or dumpsters) as to what is currently being provided. If service to these properties is going to be provided by the Village, the ordinance would need to be changed accordingly. Motion made by Schneider, seconded by Roanhouse to change the ordinance to include condo units as residential (not apartments) and include the $17,080.32 in the 2017 budget. Motion carried. The Committee discussed the April budget to actual operational and capital financial reports. Peternell stated that in April the Fire & Rescue budgets were combined into one departmental budget. The April monthly totals include journal entries to move all activity from January-March from the Rescue accounts to the combined accounts. Peternell provided an update on the Water Simplified Rate Case. After the annual report has been filed with the Public Service Commission (PSC), a rate of return is calculated based on that year’s operations. This rate of return will determine if the water utility qualifies for an SRC. In order to qualify for a 3% increase in water rates the Utility would need to have a rate of return of 5.6% or less after including the 3%. Our current rate of return in 4.98% which would result in a 7.98% rate of return. Therefore we do not qualify for the simplified rate increase. The Committee reviewed the Request for Proposal for Depository Services. Peternell stated that the last RFP was done in 2009 and resulted in changing our banking relationship from Associated Bank to BMO Harris (formerly M&I Bank). The contract was for 5 years with an option for a 2 year extension. In 2014 we extended our contract with BMO Harris for an additional 2 years. Motion made by Schneider, seconded by Ewert to approve the RFP as written. Motion carried. Discussion was held regarding the assessment proposals submitted by Affiliated Property Valuation Services and Accurate Appraisal. The Finance committee interviewed and reviewed references for the candidate firms per the RFP for Assessment Services. Motion made by Schneider, seconded by Amborn to recommend Village Board approval of Affiliated Property Valuation Services to provide assessment services for years 2017 – 2021. Motion carried. The Committee reviewed the purchase requisition for SCBA brackets. Chief Mueller received (2) quotes for truck brackets to hold the new Self Contained Breathing Apparatus. These are brackets that hold the SCBA's in the Engine seats so that the breathing apparatus can be donned en-route to a scene. Mueller stated that we have an agreement with Gateway for them to purchase, maintain and upgrade 25 SCBA’s for 5 years in return for letting them use our indoor training center at Station #1. Retail price for one SCBA unit is approximately $11,000. Included in the 2016 budget was $150,000 for new SCBAs which we no longer have to do, those funds will be used for this purchase. The Chief was only able to get two suppliers to submit a quote. Motion made by Schneider, seconded by Ewert to recommend Village Board approval of the purchase requisition for SCBA brackets not to exceed $5,000. Motion carried. Discussion was held regarding Ordinance #636 – An Ordinance to Amend Chapter 23, Finance and Taxation, To Amend the Provisions for Claims Procedure and Specify Who May Sign Checks. On February 10, Finance Committee members Gil Amborn and Jim Schneider met with the Administrator and Treasurer to continue their review of financial policies. One item that came from that discussion was whose responsibility it was to sign checks. Currently the Village Treasurer and Village President sign checks. The Treasurer discussed that the statutes references the Village Clerk as the person to signs checks. It was also discussed that the Administrator can sign checks in the absence of the Village President but there is no system in place for someone to sign checks in the absence of the Treasurer. The group requested the Treasurer consult with the Village Attorney as to whether the Village Treasurer could be designated instead of the Village Clerk and also if the Administrator can sign checks in the absence of either the Village President or the Village Treasurer. While reviewing the code, the Village Attorney noticed additional items in this section that should be updated and requested direction from the Board before proceeding. In advance of updating the code, the Village Attorney recommended passing a resolution authorizing the President and Treasurer to sign checks with the Administrator as back-up so that it conforms to what the current practice is until the ordinance is amended. Resolution 794 was adopted on February 22, 2016; once the Ordinance is passed on May 23rd it will supersede the Resolution. This ordinance incorporates changes recommended by the Village Attorney. This was a first reading only, no action required. Motion made by Amborn seconded by Schneider, to recommend to the Village Board approval of Village prepaid invoices in the amount of $170,049.87. Motion carried. Motion made by Schneider, seconded by Ewert to recommend to the Village Board approval of Village unpaid invoices in the amount of $235,159.71and withholding payment to Great Lakes Laundry so that Chief Mueller can verify if it should be warranty work. Motion carried. Upon motion made by Schneider seconded by Ewert, the meeting adjourned at 5:17 p.m. Motion carried. Submitted by, Lori Peternell, CMTW Village Treasurer 2