WAUNAKEE UTILITIES COMMISSION

Waunakee Utilities Commission Meeting June 28, 2016 Members Present: Paul Endres Marvin Hellenbrand Roxanne Johnson Steve Kraus Shirley Nelson John Roessler Excused: John Laubmeier Others Present: Tim Herlitzka Dave Dresen Dave Krause John Roessler called the regular meeting of the Waunakee Utilities Commission to order at the Waunakee Utilities facility at 322 Moravian Valley Road. Minutes Moved by Shirley Nelson, seconded by Marvin Hellenbrand, to approve the minutes of the May 23, 2016 Utilities Commission meeting. Motion carried. Bills The list of bills was reviewed. Moved by Marvin Hellenbrand, seconded by Paul Endres, to approve payment of the following bills: Vendor Description Electric Water Sewer Total 4 Control, Inc. Weed spraying at substations $ 195.29 $ - $ - $ 195.29 All Channel Electronics Replace backup battery for power supply 66.19 48.43 46.82 161.44 American Water Works Assoc. Membership renewal 330.00 330.00 Boardman & Clark Legal: T-Mobile water tower lease 87.00 87.00 Border States Inventory & OH maintenance 17,638.76 17,638.76 BP * Gasoline for trucks 80.52 54.83 135.35 Bruce Municipal Equipment Vac truck maintenance 3,579.00 2,386.00 5,964.99 11,929.99 Castellucci, Marc & Jayne Refund 262.89 262.89 Chancellor, Adam & Stacy Refund 240.22 240.22 Cintas Corporation Uniforms 142.76 104.47 100.97 348.20 Classic Custom Homes Refund 69.38 69.38 Crescent Electric Inventory, metering, OH & UG maintenance 6,474.98 6,474.98 Danny's Painting Service Exterior painting 3,800.00 3,800.00 Delta Dental Dental insurance premiums 1,367.38 1,367.38 Diggers Hotline 2nd prepayment for locates 978.75 716.16 692.29 2,387.20 Dish * Monthly premium 37.48 27.43 26.51 91.42 EFTPS * 941 taxes 39,391.02 39,391.02 Employee Trust Funds * Health insurance premiums 23,737.10 23,737.10 Empower Retirement * Deferred Compensation & Roth 8,601.00 8,601.00 Endres, Leon Refund 205.63 205.63 Energis High Voltage Resource Battery testing at substations 1,251.00 1,251.00 Envirotech Equipment Co. Sewer camera maintenance 2,552.61 2,552.61 Exxon Mobil * Gasoline for trucks 822.56 999.64 173.97 1,996.17 Fresco, Inc. Inventory 80,045.40 80,045.40 Gernon, Cindy Refund 23.97 23.97 Greywolf Partner, Inc. Refund 73.96 73.96 Grosse, James & Jayne Refund 155.63 155.63 Hahn, Gary & Judy Refund 94.21 94.21 HD Supply Waterworks Water meters 2,393.80 2,393.80 HG Signs Decals for equipment 55.80 55.80 111.60 Infosend, Inc. Billing costs (2 mos.) 2,122.01 1,552.69 1,500.94 5,175.64 Integrated Communications Answering service 43.98 32.18 31.12 107.28 Kashing, Christopher Refund 23.71 23.71 Lewellyn, Kerryn Mileage reimbursement 36.31 26.57 25.68 88.56 McDade, Phil Mileage reimbursement 121.50 121.50 Meffert Oil Co. Gasoline for trucks 58.73 58.73 MG & E Boosters, wells, svc. bldg. & lift stations 43.06 156.99 117.42 317.47 1 Minuteman Press Water quality report 433.72 433.72 Minuteman Press Focus on Energy bill stuffer 231.20 231.20 Office Depot Office supplies 105.37 77.10 74.53 257.00 Parisi Construction Co. Miscellaneous concrete repairs 2,525.00 2,525.00 Payroll * 5/27, 6/10 & 6/24 94,372.00 94,372.00 Pelliteri Data shred 12.98 9.50 9.17 31.65 Pinnacle Landscaping, Inc. Repair damaged area due to URD fault 1,765.00 1,765.00 Platinum Builders Refund 292.02 292.02 Qual Line Fence Flag for office 27.02 19.77 19.11 65.90 Resco Minor materials 376.51 376.51 RG Heating & A/C Building maintenance 216.08 158.11 152.84 527.03 Rhyme Business Products * Monthly lease payment & usage charges 237.32 173.65 167.85 578.82 Rodriguez, Christopher & Kathy Refund 91.77 91.77 Securian Financial Group * Life insurance premiums 590.94 590.94 SEERA, c/o Wipfli Focus program fee for May 3,645.13 3,645.13 ServiceMaster Building Maint. Office cleaning 182.45 133.50 129.05 445.00 Stafford Rosenbaum Legal: Review of investment advisor agreement 143.91 105.30 101.79 351.00 SBank of CP/Credit Card Pymt* Truck expense 264.16 264.16 SBank of CP/Credit Card Pymt* Item for Project Graduation event 217.56 217.56 Statz, Carl F. Truck/equipment parts 745.86 93.58 839.44 Strand Associates, Inc. Lighting coordination for Hwy. Q project 748.14 748.14 Stuart C. Irby Co. Inventory 21,588.00 21,588.00 Taylor, Jakob Refund 87.21 87.21 TDS Telecom * Monthly phone & modem service 413.76 302.75 292.66 1,009.17 UPS Store Shipping charges for bill stuffers & handheld 136.94 100.21 96.86 334.01 U.S. Cellular * Monthly cell phone service 121.63 89.00 86.04 296.67 USIC Locating Services Locating services 3,001.84 1,361.40 887.74 5,250.98 Village of Waunakee Flexplan, electric & water taxes, refuse/May & 91,196.61 37,489.42 14.36 128,700.39 re-bills for: mechanic, Double D Services & Hatch Waunakee Chamber * Gift cards 50.00 50.00 100.00 Weaver Auto Parts Truck parts & water maintenance 101.67 143.27 244.94 WI Dept. of Natural Resources* Water use fee 125.00 125.00 WI Dept. of Revenue * State & sales taxes paid 45,826.35 45,826.35 WPPI Energy May power bill 806,879.66 806,879.66 WPPI Energy Member network assessment & monitoring service, 1,463.15 295.89 286.03 2,045.07 hosted e-mail service, shared meter technician service, hosted financial & accounting software service, low-income administration service, CTC audit and computer expense WI Retirement System * Retirement - May 12,894.43 12,894.43 WI State Lab of Hygiene Water samples 25.00 25.00 Bills Received Subsequent to Packet Delivery Ace Hardware Miscellaneous supplies 209.11 173.94 126.29 509.34 Border States Inventory 35,700.00 35,700.00 Cintas Corporation Uniforms 29.26 21.41 20.69 71.36 CJ's Lawn & Snow Services Lawn maintenance 108.65 79.50 76.85 265.00 Crescent Electric Tools & URD maintenance 1,188.99 1,188.99 CTW Corporation Tower, booster & well maintenance 405.00 405.00 Dish Monthly service 37.48 27.43 26.51 91.42 Fastenal Company Shop materials 12.77 9.34 9.03 31.14 Herlitzka, Tim Mileage reimbursement 44.28 32.40 31.32 108.00 Integrated Communications Ser. Answering service 53.70 39.29 37.99 130.98 Resco URD maintenance 473.38 473.38 RG Heating & Air Conditioning Building maintenance 343.32 251.21 242.84 837.37 Rhyme Business Products Monthly lease payment & usage charges 225.77 165.20 159.68 550.65 Steel Surgeon, LLC Wire trailer 8,947.08 8,947.08 Village of Waunakee Re-bill for: Pomp's Tire Service 28.00 28.00 Weaver Auto Parts Truck parts 7.49 7.49 Total Amount of Invoices Approved $ 1,327,240.64 $ 53,915.88 $ 14,290.04 $ 1,395,446.56 Pass-thru cost to utility. No net utility cost. Refund. (Refunds generally due to move in’s/out’s.) 2 Motion carried. Public Comment There was no public comment. Electric Distribution System Study Dave Krause from Krause Power Engineering presented the Electric Distribution System Study. Five-Year Cash Forecast and Proposed Debt Refinancing A five-year cash forecast was prepared by staff and presented to the commission. The forecast summarizes substantial capital requirements for various projects over the next five years and also calculates recommended cash reserve levels. The commission also reviewed a recommendation from the utility financial advisors to consider refinancing the 2006 water and electric debt issue. The financial advisors estimate 8.965% savings ($105,338) based on current rates. It was noted that any changes in rates between now and the pricing date will impact the savings levels. A motion was made by John Roessler and seconded by Shirley Nelson to recommend to the village board that the 2006 debt issue be refinanced. Motion carried. Hiring Investment Advisor and Approval of New Investment Policy The commission discussed hiring an investment advisor and was presented with a new Investment Policy to consider. After a discussion, a motion was made by Steve Kraus and seconded by Roxanne Johnson to approve the Investment Management Services Agreement with Madison Investment Advisors and the new Investment Policy. Motion carried with Shirley Nelson and John Roessler voting no. Incentive Electric Rate for New and Existing Customers A new electric rate category designed by WPPI to offer discounted electricity to customers looking to expand or for new customers looking to locate their facilities in member communities was presented. There are a number of requirements that would need to be followed for a customer to quality for this rate. After a discussion, a motion was made by John Roessler and seconded by Steve Kraus to file an application to the Public Service Commission of Wisconsin for approval of this rate. Motion carried. Village-Wide Construction Projects The commission was informed about the status of the Fourth Street project. Electric Superintendent’s Report The electric superintendent reported on various overhead projects, Phase 4 of Westbridge, and the underground wire replacement at Centennial Heights. Commissioner Johnson left the meeting. General Manager’s Report The general manager discussed a request for a donation to the proposed new library, a customer looking to install a larger solar array in the village, a recent meeting with MMSD staff who informed the utility that sewer rates are expected to go up 6-8% next year, and the review of the current sewer camera system, including demonstrations of new systems. 3 Financial Statements The May financial statements were presented. Consolidated operating income for the month is $28,000 over budget and $18,000 over budget for the year to date. Employee Wage Adjustments The commission was provided an update on market wages for lineworkers. In addition, the commission discussed recent extra efforts performed by the Manager of Customer Service and Billing and a motion was made by Paul Endres and seconded by Shirley Nelson to provide her with a $1,000 bonus. Motion carried. A motion was made by Marvin Hellenbrand and seconded by Shirley Nelson to adjourn the meeting. Motion carried. Respectfully submitted: _____________________________ Commission Secretary 4