Finance, Taxes and Insurance

FINANCE COMMITTEE February 13, 2017 – Official 5:00 p.m. Members Present: Brian Lauer, Gil Amborn, Brent Hess and Jim Schneider Excused: Andy Ewert Also Present: Rebecca Ewald, Rick Huening, Rick Mueller and Mark Kolczaski, Baxter & Woodman Lauer called the meeting to order at 5:00p.m. Motion made by Schneider, seconded by Hess to approve the January 9th Regular Meeting Minutes and January 11th Special Meeting Minutes. Motion carried. The Committee reviewed the December and January Budget to Actual reports. The Committee reviewed the Village’s investment policy and Associated Trust’s investment agreement. Peternell stated that the Village Attorney reviewed the investment agreement and has concerns about the risk of loss by removing the collateral requirement of invested funds and allowing the Trust to have control of Village funds. Discussion was held on amending the investment policy to include an amount that would need to be liquid and collateralized. Further discussion was held regarding the investment agreement. Motion made by Schneider, seconded by Amborn to have the group review the attorney’s comments and compile a list of questions/comments to Trustee Schneider for review at the March meeting and to have the Treasurer meet with John Duffy to determine an amount that could be invested and have him attend the March meeting to present an investment plan and answer questions regarding the investment agreement. Motion carried. Rick Huening discussed the purchase requisition to Lakeside International for the DPW plow truck. The 2004 Plow truck is scheduled for replacement in 2017 at an estimated cost of $145,000. Huening stated that three bids were obtained; Lakeside International: $140,439, Packer City International Truck: $142,085 and Thompson Truck & Trailer: $142,264. Motion made by Schneider, seconded by Amborn to recommend Village Board approval of the Lakeside International purchase requisition in the amount of $140,439. Motion carried. Rick Huening discussed the purchase requisition for Lift Station #3 pump replacement. One of the (2) pumps at Lift Station #3 has failed and needs to be replaced. The replacement of the pumps is fully funded through the sewer replacement account. Huening stated that L.W. Allen in the only Wisconsin distributor of this pump. Motion made by Schneider, seconded by Amborn to recommend Village Board approval of the lift station pump in the amount of $10,722. Motion carried. Discussion was held regarding the bids for fire suppression system. The architect hosted a site visit of Fire Station No. 2 with the Fire Chief for contractors to view the facility and answer questions prior to submitting a bid. After this meeting, an alternate bid for a nitrogen fire suppression system was added to the bid document. The nitrogen system is designed to keep moisture out of the pipes to avoid corrosion and possible leaks in the future. Many fire suppression systems experience leakage several years after construction due to the water sitting in the pipes over the years. As a point of reference, the Library’s fire suppression system recently had tiny pinhole leaks and was constructed in 2001. Plunkett Raysich Architect’s (PRA) engineer has never used a nitrogen system before. It is fairly new (1-1.5 years) and PRA has not installed one on a project yet. Brent Hess, Finance Committee member and Director of Facilities for Johnson Financial Group, absolutely recommended the installation of a nitrogen system. Typical systems have an air compressor to keep air pressure in the fire protection piping. However, the air contains moisture, and over 10 to 15 years will cause system leaks and gasket degradation. Nitrogen is dry, does not react to ambient temperatures, and will ensure the longevity of the system. Originally the Village allocated $79,000 from the general fund balance to pay for the fire suppression system. The Village is requested to advise on whether the additional funding required should also come from the general fund balance. The Committee reviewed the December and January budget to actual reports and the donation report. Motion made by Schneider, seconded by Hess to recommend Village Board award the contract for the fire suppression system including the nitrogen system to Camosy Construction in the amount of $141,200 with the additional funding to come from general fund balance. Motion carried. Discussion was held regarding the bids for River East Project. Ewald stated that bids were opened on 1/31, and discussed the recommendations from the Village Engineer. The Village Board will be acting upon a preliminary resolution for assessing property owners for curb, gutter, sidewalk and sanitary sewer lateral improvements at their meeting on 2/13. The Public Works & Utilities Committee will also be providing a recommendation on an alternate bid item, foundation underneath the dumpster enclosure, in the amount of $13,000 at their February 20 meeting. The Village Board will be reviewing a recommendation on the construction management contract for this project at their February 27 meeting. Motion made by Schneider, seconded by Amborn to recommend Village Board accept Wanasak’s bid for $951,644 in addition to the recommendation that will be provided by the Public Works Committee on February 20th. Motion carried. Discussion was held regarding refinancing of the 2010 Water Revenue Bonds. Peternell contacted Kevin Mullen regarding the 2010 Water revenue bonds that have a call date of 5/1/17 to inquire as to whether it would be beneficial to refinance the remaining principal amount of $225,000. Mullen recommended contacting local banks to see if they would be interested in loaning the Village funds at a lower interest rate for the remaining amount. Peternell stated that the Sewer utility could possibly do an internal borrowing to the Water Utility and would contact the auditor to confirm if this is an option. Motion made by Schneider, seconded by Hess to contact Associated Bank, Community State Bank and Equitable Bank to inquire about a 2 year note for $225,000. Motion carried. The Committee reviewed the approved purchase requisition for CPR & AED equipment. Motion made by Schneider seconded by Amborn, to recommend to the Village Board approval of Village prepaid invoices in the amount of $63,491.64. Motion carried. Motion made by Schneider, seconded by Hess to recommend to the Village Board approval of Village unpaid invoices in the amount of $2,185,094.25. Motion carried. The Committee reviewed the monthly donation report. Peternell provided an update on the annual rebate from Liturgical Publications Inc and the chargeback of uncollected 2016 personal property taxes. Upon motion made by Schneider seconded by Amborn, the meeting adjourned at 6:20 p.m. Motion carried. Submitted by, Lori Peternell, CMTW Village Treasurer 2