Finance, Taxes and Insurance

FINANCE COMMITTEE December 12, 2016 – Official 5:00 p.m. Members Present: Brian Lauer, Gil Amborn, Andy Ewert, Brent Hess and Jim Schneider Also Present: Rebecca Ewald, Jeff Dolezal, Stephanie Charapata, Rick Mueller, Tom Nehring, Eric Rozina, John Duffy and Linda Winkler from Associated Bank Lauer called the meeting to order at 5:00p.m. Motion made by Schneider, seconded by Hess to approve the November 14th Regular Meeting Minutes with one correction. Motion carried. John Duffy and Linda Winkler from Associated Bank were present to discuss investment options and the next steps to start the investment process. Discussion was held regarding what type of investments is allowed per state statutes. Duffy stated that Associated Bank will work with the Treasurer to determine the core amount of funds that could be invested. A resolution will need to be approved by the Board authorizing the Treasurer to act on behalf of the Village to invest funds with Associated Bank. The Treasurer will continue to work with Associated Bank to get the required documents signed and review each bank account to determine the amount available for investment. The Finance Committee will review this information once it becomes available. Tom Nehring was present to discuss the ProPhoenix software and Meraki installation purchase requisitions. The Fire Department currently has an agreement for Firehouse for software that is not user friendly for data collection or fire inspections. It also has only one license for only one user. The 2017 budget included transition costs from Firehouse software to ProPhoenix, the same software utilized by Racine County Dispatch and other fire and police departments within the County. It includes additional features not provided by Firehouse, see purchase requisition documentation attached. The Village currently has a five year agreement with Firehouse that terminates 12/31/17. Firehouse is unwilling to cancel the entire agreement for the remaining year, only the fire inspection module, which leaves an additional $2,500 expense in 2017 that was not anticipated in the budget process. The Fire Chief is requesting permission to continue, as the operational efficiencies of the new software will improve not only the department’s response to calls and inspections, but also ease the burden on administrative functions associated with both. Motion made by Schneider, seconded by Ewert to recommend Village Board approval of the ProPhoenix purchase requisition , the Meraki installation purchase requisition and Firehouse inspection software not to exceed $13,439 and to include it in the 2017 capital purchase plan. Motion carried. The Committee reviewed Resolution # 816 amending the Fee Schedule for Fees for Alcohol Licenses. Wisconsin Statute Ch. 125 provides certain fee ranges that can be charged for alcohol licenses. On 11/14 the Village Board directed that licensing fees not be increased, but that the fees include the cost of obtaining background checks from the Wisconsin On-line Records Check System, in the amount of $7 per person. (The Police Department may not use its system to perform these background checks.) Motion made by Schneider, seconded by Amborn to recommend Village Board approval of Resolution #816. Dolezal was present to discuss the purchase requisition for the lift station pump. Dolezal stated that one of the (2) pumps at Lift Station #5 has failed and needs to be replaced. The replacement of the pumps is fully funded through the sewer replacement account. Motion made by Schneider, seconded by Ewert to recommend Village Board approval of the lift station pump purchase requisition in the amount of $9,837. Motion carried. The Committee reviewed the purchase requisition for SCADA computer software. Dolezal stated that in October the Finance Committee and Board approved moving forward with upgrading of the SCADA computer located at DPW for a total cost of $14,064. During the changeover of the equipment it was discovered that the two versions of Allen Bradley software currently in use are demo versions and are not upgradeable and will not run with newer operating systems. New versions of the software and licenses will need to be purchased in order to proceed with the upgrade. The cost of the software and license is $7,961, bringing the total costs of the upgrade to $22,025. The original budget amount for the project was $24,000. Motion made by Ewert, seconded by Schneider to recommend Village Board approval of the SCADA computer software purchase requisition in the amount of $7,961. Motion carried. Chief Mueller discussed the purchase requisition for Lucas chest compression system. Mueller stated that the Lions Club of Waterford held a fundraiser to purchase (2) chest compression systems for the Fire Department. The fundraiser raised enough funds to purchase the (2) units. This week the Aurora Foundation released a grant program for these devices. If the department does not have one, the Aurora Foundation will purchase one for the department. Aurora is currently deliberating between two brands of the device, one of which is the LUCAS. The Lion’s Club has indicated their willingness to wait on the purchase until the device for the program has been selected so that the Village may utilize the grant opportunity. Mueller stated that if Aurora selects the desired unit that the Lions Club has proposed then the Club would purchase a second device and is willing to learn from the Fire Chief what additional paramedic devices are needed for the program, as remaining funds could be allocated to these items. If Aurora selects something different than the Club’s desired unit, the Club will purchase both units. Motion made by Schneider, seconded by Ewert to recommend Village Board approval of the purchase requisition subject to the future direction of the Lion’s club and device determined by Aurora. If the department obtains an Aurora grant only one device would be purchased. Any other equipment would be submitted with a purchase requisition at a future date. Motion carried. Eric Rozina was present to discuss the purchase requisition for Fast Attack Command Truck. Rozina stated this vehicle will replace Engine 748 brush truck. The new truck will not only perform the firefighting functions as the old brush truck but will also provide a means to perform Incident Command functions. Motion made by Schneider, seconded by Hess to recommend Village Board approval of the Fast Attack Command Truck purchase requisition in the amount of $41,250. Motion carried. Discussion was held regarding the 2016 capital purchases and projects. The Treasurer and Administrator met with the Director of Public Works and the Fire Chief to review the remaining capital purchases scheduled for 2016. Due to time constraints, the following purchases and projects will be moved to 2017. Ambulance drug cabinets - $5,000 Fire Department tire replacements - $5,000 Fire Department payroll and scheduling software - $4,500 DPW Emergency generator - $60,000 The Fire Chief stated that he is planning on purchasing the new copier/printer in 2016, but it might be delayed until early 2017. Within the capital project plan, the Board approved moving forward with making repairs to water valves in the downtown area in advance of the Hwy 83-20 reconstruction at an estimated cost of $120,000. The cost of these repairs was included in the 2016 borrowing. To date, we have installed 5 valves in the downtown area at a cost of approximately $48,000. Staff estimates that the remaining valves can be installed for approximately $35,000.00. This would put the total cost of this project at $83,000.00, which is $37,000 less that the budgeted amount of $120,000. Stephanie Charapata updated the Committee on the Connection Inspection Program and Billing. Because it is a DNR requirement intended to keep the public water system free of contamination, it was determined that the customer information would come from the utility billing system. The DNR regulation and ordinance, however, are based on the DNR and building code provisions of the Wisconsin Administrative Code, so all buildings classified as places of employment and public buildings (including any building with 3 or more tenants or residences) are classified as commercial. At that time, staff did not realize that the administrative code provisions and PSC definitions, which are based on the meters, differ. Staff provided a listing of 264 accounts (by meter) from the water utility billing system that were categorized as Commercial, Industrial and Public Authority. As staff started the billing process, staff noticed inconsistencies in how businesses were going to be charged. Charapata stated that HydroCorp’s contracted number of inspections was calculated using 264 accounts plus an additional 34% for compliance reviews for a total of 354 inspections. Some properties are complaint on the first visit while others have required HydroCorp to follow up an additional 4 times and are still not compliant. Each time HydroCorp goes to a business it is counted toward the total 354 allotment. As of November 29th a total of 262 inspections have been completed, this includes initial inspections and compliance reviews. There are 92 initial inspections that will be scheduled for 2017 and 19 compliance reviews required for 2016. This is a total of 373 inspections, 19 over the contracted amount. Staff met with the Administrator and Director of Public Works regarding these concerns and confirmed with the attorney that the billing can be delayed a year so that the issues can be resolved. This matter will be going to Public Works & Utilities for a recommendation on how to move forward with the program. Ewald provided an update on We Energies facility review. We Energies will begin the process with consultations and recommendations for the Library and Village Hall as they are the largest energy users. The Director of Public Works & Administrator will continue to work with We Energies and assistance will be provided by Brent Hess on reviewing the data. The Committee reviewed the November budget to actual reports and the donation report. Motion made by Schneider seconded by Ewert, to recommend to the Village Board approval of Village prepaid invoices in the amount of $15,002.99. Motion carried. Motion made by Amborn, seconded by Ewert to recommend to the Village Board approval of Village unpaid invoices in the amount of $598,001.92. Motion carried. Upon motion made by Schneider seconded by Amborn, the meeting adjourned at 6:21 p.m. Motion carried. Submitted by, Lori Peternell, CMTW Village Treasurer 2