REGULAR
MEETING OF THE
TOWN
OF MENASHA UTILITY DISTRICT
Municipal
Complex - Assembly Room
Monday,
March 26, 2001
MINUTES
The
agenda was posted at the Municipal Complex, Fire Station 40, Town of Menasha
Utility District, Appleton Public Library, Menasha Public Library, and Neenah
Public Library and is available on the Town of Menasha Website at www.town-menasha.com.
I. CALL TO ORDER, PLEDGE OF ALLEGIANCE AND ROLL CALL
President
Arden Tews called the Regular Meeting of Utility District Commissioners to order
at 4:50 p.m. and led the Pledge of Allegiance.
Deputy
Clerk Karen Tweedie noted the roll as follows:
PRESENT:
Arden Tews, President Jeanne
Krueger, Commissioner #1
Jerry Jurgensen, Commissioner #3 Russ Handevidt,
Commissioner #4
Brad Werner, Town Engineer Steve Laabs,
Util. Dist. Wastewater Supt.
Patrick DeGrave, Administrator Paula Pagel,
Util Dist Office Manager
Myra Piergrossi, Dir. of Finance George
Dearborn, Dir. of Com. Dev.
Jeff Roth, Utility District Water
Supt. Karen Tweedie,
Deputy Clerk
EXCUSED:
Carlene
Sprague, Utility Dist. Secretary
Bob Sprague,
Commissioner #2
ALSO PRESENT:
Gary
Rosenbeck, Rep. McMahon & Assoc. Dee
Lynch
John Andres,
Rep. Virchow Krause Sherrie
Bencik
Richard
Stinski Rod
Viegut
Mike Lynch Judy
Viegut
Carol Rick Gerald
Kjemhus
Donald Rick Todd
Schnasse
Barbara Ulmer Bill
Eastman
Larry Ulmer Gregg
Graverson
Bill Buksyk Tony
Treml
John Zaborsky Diane
Miller
Ron Porto Scott
Sauer
A. Expansion of E. Shady Lane Water Treatment Plant and American Drive Garage Building
Gary
Rosenbeck, representing McMahon & Associates, stated he found it difficult
to expand the #3 pump house with the setback and permits from DNR. He would like to use the existing Utility
District building on American Drive for records, break room, rest rooms, locker
rooms and office. He would also like to
add on a garage approximately 142 X 64 in size with mezzanine, for maintenance
and equipment. The estimated amount for
the expansion and remodeling of both facilities on Shady Lane and American
Drive will cost $1,831,000.00, up from the budgeted amount of $1.6 million. Included in these costs would be repairs for
softeners, roof, locker rooms, restrooms and garage doors.
A
new supervisory control system will also need replacement along with the garage
and office remodeled on American Drive for a cost of approximately $550,000.00.
Water
Superintendent Steve Laabs mentioned the timeframe for the loan as over a 5-10
year period.
President
Tews said the budget was $150,000.00 more than the original estimate. He questioned whether the town could
construct a building on American Drive without a Special Town or Annual Town
meeting for a vote by the townspeople.
Administrator
DeGrave stated that when borrowing for a facility expansion, he did not believe
a Special Town meeting was a legal requirement. He also stated that he was expecting a call back from Virchow,
Kraus & Co. and the Wisconsin Town’s Association regarding this issue. Mr. DeGrave also clarified that the town is
spending borrowed money not budgeted money.
Supervisor
Krueger asked how much more this would put on the town’s debt.
Discussion
ensued regarding the budget for the remodeling. Administrator DeGrave stated the debt service is paid for by the
Utility Service and would be determined as to how rates are set to cover debt
service.
Supervisor
Handevidt stated he did not see contingency fees in the $1.8 million dollar
amount and questioned how locked in these figures were. His requested more accurate numbers for
architectural fees, add-on costs and adjustments.
Gary
Rosenbeck stated that the worksheets have the contingency already built in by adding
the fees, plus 10% and remarked that he is comfortable with the cost estimates
provided.
Commissioner
Handevidt expressed concern regarding the costs provided.
Administrator
DeGrave stated he would present complete architectural drawings, material lists
a full detailed estimate and then, proceed for approval of bonding for the
construction amount and revenue bond to pay the pre-paid debt. He stated the next step would be to put the
proposal together for discussion at the next U.D. meeting.
President
Tews stated a resolution would be prepared for that meeting for board approval
for this information.
Virchow
Krause – Water & Sewer Rates
John
Andres, representing Virchow, Krause & Co. commented on the Rate Study and
the proposed rate increase of 25% on water rates.
He
stated $240,000.00 would be taken from the tax levy in the water utility for
public fire protection and shifting this portion from the tax bills to the
utility bills, which will be approximately $6.60 on average per household.
The
Public Service Commission will host a telephonic Public Hearing on April 5,
2001 at 10:00 with the Finance Department and the Utility District
participating.
This
will add $20.00 per quarter, per household for water.
There
are options for water rates:
The
tax levy amount is $783,000.00. In
leaving the levy as is, he stated increases of 44% would be needed as a minimum
amount.
-Option 1. 47% or
$12.36 / per quarter
-Option
2. Shifting a portion of the tax levy off of the tax bills onto utility bills
(1/3
over in each of the next three years), $45.00 / per quarter for sewer only, or $18.00 / per quarter increase
-Option 3.
Everything off tax levy and put on utility bill
Avg. bill $33.00 / per quarter
*All
options require an additional $20.00 increase in water rates.
President
Tews stated to keep the tax levy where it is with an increase in costs, the
sewer bill will go up 44%.
Discussion
ensued.
Dir.
of Finance, Myra Piergrossi presented the board members with her computed rate
increases. Taking the current sewer
bill, she calculated the sample tax bill that was used. Dividing it by 4 to get a quarterly amount
on a sewer bill, she got the total picture of what residents are actually
paying now.
Example: Option 3 shows an 8% increase change. Tax rate would go
down
$.75, or no tax rate.
Commissioner
Handevidt stated that his personal opinion is to go with Option 3 as he felt
the user would be paying their share right from the beginning.
President
Tews would like Option 2 stating this would be comparable with City of Menasha,
below Grand Chute and Appleton and ahead of Neenah only.
Commissioners
Jurgensen and Krueger voted for Option 2 and reviewing the choice in a two-year
period.
John
Andres stated the new rates would take place in mid to late April 2000.
Finance
Director Myra Piergrossi stated that the sewer rate change would take effect
when the water rates change.
MOTION: Commissioner Handevidt, second Commissioner Krueger to adopt to
approve the expenditures as submitted with the exception of (none). Motion carried unanimously.
MOTION:
Commissioner Jurgensen, second Commissioner Krueger to fill in the blank to
choose OPTION 2 for the elimination of the sewer tax levy (by $.24 cents
off the 1st year).
On roll call, Commissioners Krueger and Jurgensen and President Tews
voted YES. Commissioner Handevidt voted NO.
Motion passed on a 3-1 vote for Option 2.
Supervisor Krueger questioned the invoice for Sturm Builders.
Wastewater Supr., Steve Laabs, stated that the owner of the duplex was
having problems. A piece of sewer pipe
was inside the lateral, so Steve Laabs reached our contractor for the repair.
The Utility District found the lateral faulty and felt Sturm Builders was
responsible during the process of building the duplex. They have been unable to
collect from Sturm Builders for this repair.
MOTION: Commissioner Handevidt, second Commissioner Jurgensen to adopt
to approve the write-off of the following uncollectible accounts as submitted.
S99-1 1/20/99 Sturm
Builders Reimbursement for Lateral
Repair $1,087.36
W97-16 6/3/97 Joseph Baruch Repaired Damaged Fire Hydrant $ 77.00
UD-336 7/18/00 City of Menasha Service for Midway Business Park $ 3.00
Motion carried unanimously.
MOTION: Commissioner Sprague, second Commissioner Jurgensen to adopt to
approve the minutes as submitted. Motion carried unanimously.
A. Water Mains – February 2001
B. Water Pumpage - February 2001
MOTION: Commissioner Sprague, second Commissioner Krueger to adopt to
approve the correspondence for filing.
Motion carried unanimously.
A. Town Administrator - None
B.
Engineer – None
C.
Water Superintendent - None
D. Wastewater
Superintendent
Wastewater Superintendent Steve Laabs, provided a report
regarding his recent contact with Globe Construction regarding laterals that
needed repair from the 1998 sewer reconstruction on Gardner’s Row. Mr. Laabs stated that Globe
Construction would be willing to pay
half of the repair costs.
E.
Commissioners
Ø Commissioner Krueger - None
Ø
Commissioner
Sprague – None
Ø
Commissioner
Jurgensen – None
Ø
Commissioner
Handevidt - None
F. Commission
President - None
G.
Other Town Officials - None
At
4:50 p.m., MOTION: Commissioner Sprague, second Commissioner Handevidt to
adjourn the Regular Meeting of the Utility District of Commissioners. Motion carried unanimously.
Respectfully
submitted,
Karen J.
Tweedie
Deputy Clerk