FINANCE COMMITTEE

VILLAGE OF WAUNAKEE FINANCE COMMITTEE MEETING 500 West Main Street August 20, 2018 5:00 PM Meeting Minutes CALL TO ORDER Chairman Springman called the meeting to order at 5:10 P.M. ROLL CALL Members present: Sue Springman, Chris Zellner, Sam Ballweg, and Renee Meinholz Also present: Todd Schmidt, Sue McDade, Kevin Plendl, Bill Frederick, Adam Bentley, Casey Koenig, Steven Erickson, Ryan Roth, John Hodges, Ann Lewandowski, Nila Frye, Sam Kaufmann, Maria Patt CONSENT AGENDA Items under the consent agenda may be acted upon by one motion. If, in the judgment of any Board Member, a consent agenda item needs discussion, the item may be moved to later on the agenda for discussion and/or action. 1 Consider approval of minutes - July 16, 2018 Motion by Sam Ballweg to approve the consent agenda (approval of minutes - July 16, 2018), seconded by Chris Zellner. Motion Pass. For: 3 - Sue Springman, Chris Zellner, Sam Ballweg, Against: 0. PUBLIC COMMENT None NEW BUSINESS 1 Consider banking bid proposals The Finance Director introduced the agenda item and stated the banking proposal task force's recommendation was to stay with our current bank, Old National. Waunakee Community Bank (WCB) had previously asked the chair for permission to speak at the meeting, which she granted. Steve Erickson from Waunakee Community Bank gave a brief presentation on their bank and proposal. The Finance Director addressed some of the points made by WCB. While WCB's quoted interest rate was higher, as Mr. Erickson pointed out, they did not meet the qualifications to propose, thus effectively eliminating them from consideration. The Village's investment policy requires pledged securities as collateral. WCB stated that the Insured Cash Sweep (ICS) method is better than obtaining pledged securities as collateral as it utilizes FDIC insurance exclusively. However, with the ICS program, there is a 1-2-day delay from the time a deposit is made into our account and the money is swept into the program, leaving the possibility that there will be times when our deposits are unsecured.  For example, on the last business day of the year, we deposited $3.9 million and this would be unsecured until a few days later. This would be a violation of our investment policy and would not be fiscally responsible. This would also be reflected in our audit report and noted in our management letter. WCB spoke of their call back process when completing a wire transaction. Old National has several layers of security to protect the Village from fraud. We could also complete wires in person or over the phone and get a similar callback verification. WCB stated that Waunakee Area EMS was a reference for them. However, this was not included in the proposal for consideration and still does not meet the requirement to have 3 municipal references of a similar size to the Village. The Finance Director reminded the committee that the overall objective of the RFP process was to award the banking contract “to the responsible proposer meeting the requirements specified in the Request for Proposal whose proposal offers the highest net earnings or the lowest net cost to the village...using the proposer's interest rate quote.” Old National met the 3 requirements qualifying a banking institution to propose and met all other proposal requirements. The Finance Director stated that we have had a good relationship with Old National, both at the local level and with treasury management support. The committee had some discussion about the requirements of our investment policy and suggested that it be reviewed over the coming year. Motion by Chris Zellner to approve recommending to the Village Board to approve the banking services proposal from Old National., seconded by Sue Springman. Motion Pass. For: 2 - Sue Springman, Chris Zellner, Against: 0, Abstain: 1 – Sam Ballweg. 2 Review Capital Budget Submittals Motion by Chris Zellner to table New Business item #2, seconded by Sam Ballweg. Motion Pass. For: 3 - Sue Springman, Chris Zellner, Sam Ballweg, Against: 0. 3 Discuss contract for auditing services Motion by Chris Zellner to table New Business item #3., seconded by Sam Ballweg. Motion Pass. For: 3 - Sue Springman, Chris Zellner, Sam Ballweg, Against: 0. ADJOURN Motion by Chris Zellner to adjourn, seconded by Sam Ballweg. Motion Pass. For: 3 - Sue Springman, Chris Zellner, Sam Ballweg, Against: 0. Respectfully Submitted, _____________________________________