Delafield-Hartland Water Pollution Control Commission 416 Butler Drive, Delafield WI Phone: /Fax:

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1 Delafield-Hartland Water Pollution Control Commission 416 Butler Drive, Delafield WI Phone: /Fax: Minutes (Revised 07/27/15) Commission Meeting Minutes for July 21, 2015 at 5:00 P.M. Wastewater Treatment Plant Conference Room 416 Butler Drive, Delafield, WI CALL COMMISSION MEETING TO ORDER Chairperson Michele DeYoe called the meeting to order at 5:00 P.M. ROLL CALL OF COMMISSIONERS City of Delafield Tim Aicher Michele DeYoe Erv Sadowski Chris Smith Village of Hartland Karen Compton Richard Landwehr Michael Meyers Rick Stevens Also Present Rose Frick Scott Luczak APPROVE MINUTES OF MAY 19, 2015 COMMISSION MEETING R. STEVENS MOVED TO APPROVE THE MINUTES OF THE MAY 19, 2015 COMMISSION MEETING AS PRESENTED. M. MEYER SECONDED THE MOTION. THERE WAS NO FURTHER APPEAL OF FINAL NOTICES: THE COMMISSION WILL MAKE A FINAL DECISION ON THE APPEALS FILED AND PRESENTED AT THE NOVEMBER 18, 2014 COMMISSION MEETING BASED ON WRITTEN REPORTS RECEIVED BY THE APPELLANTS DESCRIBING IN DETAIL THE ACTIONS, IF ANY, TAKEN TO REDUCE THE EXCESSIVE WASTEWATER DISCHARGES FROM THE APPELLANT S PROPERTY, TOGETHER WITH A QUANTITATIVE ANALYSIS OF THE AMOUNT OF FLOWS. R. Frick explained the letters she sent to the appellants and her year-long communications with them and the quarterly reports that she had sent to each appellant. This information had been shared with the Commissioners prior to this meeting. 1. OWNERS OF NAGAWICKA LAKE SHOPS APPEAL OF FINAL NOTICE ASSIGNMENT OF ADDITIONAL DOMESTIC USER EQUIVALENTS (DUES) AND REFUND OF ADDITIONAL CONNECTION CHARGES PAID R. Frick commented that Rick Lieblang, owner of Nagawicka Lake Shops, had thanked her for all of her efforts in the form of quarterly reports and communication this past consumption year. He, also, expressed to her his gratitude to the Commission for giving his business a year to get his water usage under control. R. Frick added that Rick and Jay Lieblang had reduced usage by 1.50 DUES as a result of redirecting their iron filter discharge during the past year. She

2 Page 2 of 5 recommended that the Commission consider a partial refund of 1.50 DUEs (of the 1.75 DUEs paid in total) due to the decrease in usage of the same amount for the year. M. DeYoe noted that the owners had taken the initiative to change issues of concern after meeting with the Commission in September for their appeal of this matter. M. MEYERS MOVED TO APPROVE THE OWNERS OF NAGAWICKA LAKE SHOPS APPEAL OF FINAL NOTICE ASSIGNMENT OF ADDITIONAL DOMESTIC USER EQUIVALENTS (DUES) AND A PARTIAL REFUND OF 1.50 DUES IN ADDITIONAL CONNECTION CHARGES THAT WERE PAID IN R. LANDWEHR SECONDED THE MOTION. THERE WAS NO FURTHER DISCUSSION. ALL WERE IN FAVOR. MOTION CARRIED. 2. OWNER OF CULVER S CUSTARD OF HARTLAND S APPEAL OF FINAL NOTICE ASSIGNMENT OF ADDITIONAL DOMESTIC USER EQUIVALENTS (DUES) AND REFUND OF ADDITIONAL CONNECTION CHARGES PAID Greg Howe, owner of Culver s-hartland, had been in contact on a quarterly basis with R. Frick regarding his assignment of additional DUES and payment of associated connection charges in September His water usage had increased over this past consumption year due to a 30% increase in business and Health Department requirements of extra water in his restaurant operations. Despite making efforts to reduce water usage in other areas of the property, his usage still remained at 8.50 DUEs or 0.25 DUES above the newly assigned and paid 8.25 DUEs (which included the additional 2.25 DUES in connection charges that were paid in 2014). The owner thanked R. Frick for all of her efforts on his behalf with her quarterly reports that were sent to him and communications about his usage throughout the past consumption year. He appreciated the Commission giving him another year to reduce his usage and commented that he had learned a lot this past year. With this information, he will work to reduce usage at his other store located in another municipality. T. AICHER MOVED TO DENY THE OWNER OF CULVER S CUSTARD OF HARTLAND S APPEAL OF FINAL NOTICE ASSIGNMENT OF ADDITIONAL DOMESTIC USER EQUIVALENTS (DUES) AND ASSOCIATED REFUND OF ADDITIONAL CONNECTION CHARGES PAID. K. COMPTON SECONDED THE MOTION. THERE WAS NO FURTHER GENERAL MANAGER S REPORT RESOLUTION RE: COMPLIANCE MAINTENANCE ANNUAL REPORT (CMAR) FOR 2014 S. Luczak reviewed the highlights of the Compliance Maintenance Annual Report (CMAR) for 2014, noting ratings for BODs, suspended solids, ammonia, phosphorus, bio-solids quality and management, staffing/preventive maintenance, operator certification and financial management. The overall rating as shown in the Report was an A. A resolution had been prepared for consideration by the Commission at this time. R. STEVENS MOVED TO APPROVE RESOLUTION RE: COMPLIANCE MAINTENANCE ANNUAL REPORT (CMAR) FOR 2014 AS PRESENTED. R. LANDWEHR SECONDED THE MOTION. THERE WAS NO FURTHER DISCUSSION. ALL WERE IN FAVOR.

3 Page 3 of 5 UPDATE ON DIGESTERS CLEANING AND MAINTENANCE S. Luczak explained the digesters had been taken offline in June to allow for cleaning and maintenance to take place. Total charges, in the amount of $41,600, had been allocated in the 2015 capital budget for this expense. No action was required. FINANCE DIRECTOR S REPORT FINAL AND INITIAL NOTICES TO NON-RESIDENTIAL USERS AND QUARTERLY USAGE REPORTS/CORRESPONDENCE R. Frick stated that all of her proactive actions and correspondence with the Final Notice appellants and the Initial Notice business users each quarter had paid off this past consumption year. She remarked that the business owners thanked her for her quarterly usage reports and valuable input. They found the information very useful to their business in reducing usage and repairing leaks. R. Frick informed the Commission that because of her proactive approach and the cooperation of the business owners involved there was only one Final Notice sent out this year compared to the ten Final Notices that were sent out last year at this time PRELIMINARY BUDGET R. Frick noted the 2016 preliminary budget had been distributed to Commissioners prior to this meeting. She explained the overall budget was revenue driven and the operations revenue portion of the budget had increased by $50,500 or 2.88% which was very good for the Commission. User fees and hauler fees had increased over $39,000 with the hauler fees budget doubling. Hauler fees are up along with the number of haulers due to her active solicitation of three new hauling companies and the Commission reducing its hauler fees to attract new business. R. Frick commented that for user fees she had personally contacted all municipalities regarding anticipated new connections to be added to the system this year and in the next budget year. The user fees are on the conservative side because she only included potential new connections that the municipalities felt were a sure bet to be connected in the next budget year. T. Aicher questioned her about the anticipated connections for a new facility being constructed in Delafield early next year and she said that she would investigate and see if she can include it in this year s final budget. She moved onto the Accumulation investment income and commented that the income had increased in the preliminary budget, although she may have to adjust it down for a pre-refunded bond that was just redeemed on Monday. She will keep the Commission informed on what happens to that investment account in the next two months. Miscellaneous income which is a very small revenue item remained flat this year. Overall, the operating revenue budget looked very promising for the next budget year. S. Luczak reviewed various operating expenses. He explained that certain lab testing fees, including toxic waste testing and certifications had been reduced this year due to changes in lab for testing; however, an increase had been anticipated in conferences in training because those expenses had increased. DNR Lab certifications and fees had been reduced. Lab supplies and chemicals remained the same as the 2015 budget. Utilities anticipated an increase of 1.0% as notified by Wisconsin Electric (WE) Energies. Fuel and lubricants were reduced. Travel, meals, and maintenance supplies for repair and replacement were kept the same as the 2014 budget. In total, the operating and maintenance expense budget increased by only $1,031 or 0.23%. Discussion ensued regarding the costs anticipated for phosphorus removal and consultation as a result of phosphorus permitting changes. Costs associated with these activities were not expected to change at this time.

4 Page 4 of 5 R. Frick reviewed the various expenses related to administration, including insurance costs, accounting, attorney and payroll fees, administrative supplies, office equipment expense and the administrative contingency. M. Meyers asked about the increases to the property insurance expense. Discussion ensued regarding the increased property insurance costs as a result of insurance changes at the state level. Staff commented that we will know more about the property insurance expense and options available in fall and hopefully before the next Commission meeting. M. Meyers then asked about the breakdown of the audit, attorney and payroll expenses. Staff informed the Commissioners that the audit, attorney and payroll fees were shown separately for the budget and were only combined for the actual numbers. In summary, the administrative expenses had only increased in one category, the property insurance expense by $10,500 and the other categories were the same as the 2015 budget administrative expenses. Remaining areas of the 2016 Preliminary Operating Budget were reviewed including wages and benefits, depreciation expense and debt service. Fringe benefits had only increased by $138 or 0.06% and R. Frick commented that a lot of factors had combined to give that result: health insurance costs decreased by -$6,800, dental insurance increased $1,700, life insurance increased $200, accrued sick pay increased $3,600, pensions increased $400 and payroll taxes increased $1,000. R. Landwehr asked how much employees contributed to health insurance costs and she replied that employees paid 12% of their health insurance costs per Act 10. Debt service interest expenses had decreased by -$15,000 or %. Depreciation expense and the accumulation account amount to balance were explained. R. Frick then reviewed the Capital/ Restricted Budget noting the connections charges and DUES for each municipality that included approximately 38 new sewer connections anticipated in She mentioned that she was very conservative with this number, because of past apartment complex connections that took over two years to connect in the past due to the developer s delay in construction. She moved onto the restricted investment income that unlike the unrestricted investment income had increased substantially by $63,000 or 11.23% from last year s budget and would remain at that amount. She explained that the investment income was based on a calculated investment worksheet and she had invested the past year s connection charges in some high yield bonds with interest rates between 4.0 and 5.0%. C. Smith asked how that was possible and she replied that she has an investment bond ladder strategy and is able to get better interest rates because she is investing in bonds that will be called in a minimum of 10 years in the future. S. Luczak then noted the Capital Expenditures anticipated for the 2016 budget including replacement of sludge pump rebuilding, replacement of flow meters at Hartland Department of Public Works (DPW) and septage/recycle tank, purchase of zero turn mower, equipment contingency amounts, repair of rubber roofs, replacement of asphalt at the pump stations and relocation of effluent force main at Sawyer Road. The total Capital Expenditure portion of the budget totaled $217,500 and had decreased by -$67,500 or % from last year s budget figures FINANCIAL STATEMENTS (MAY AND JUNE 2015) R. Frick noted that the June 2015 financial statement numbers had already been included in the budget. She asked the Commissioners if there were any questions or discussion needed regarding the financial statements. The Commissioners had no further questions or comments.

5 Page 5 of 5 APPROVE EXPENSES AND DISBURSEMENTS (MAY AND JUNE 2015) R. LANDWEHR MOVED TO APPROVE THE EXPENSES & DISBURSEMENTS FOR MAY 2015 AS PRESENTED. T. AICHER SECONDED THE MOTION. THERE WAS NO FURTHER K. COMPTON MOVED TO APPROVE THE EXPENSES & DISBURSEMENTS FOR JUNE 2015 AS PRESENTED. T. AICHER SECONDED THE MOTION. THERE WAS NO FURTHER NEXT COMMISSION MEETING AND AGENDA ITEMS The next meeting of the Commission is scheduled for September 15, 2015, beginning at 5:00 P.M. Any requests for future agenda items should be provided to R. Frick more than a week before the scheduled Commission meeting. ADJOURN MEETING R. STEVENS MOVED TO ADJOURN FROM THE JULY 21, 2015 DELAFIELD-HARTLAND WATER POLLUTION CONTROL COMMISSION MEETING. R. LANDWEHR SECONDED THE MOTION. ALL WERE IN FAVOR. MOTION CARRIED. THE MEETING ADJOURNED AT 5:49 P.M. Respectfully submitted: Minutes prepared by: Rosemary Frick, CPA, Finance Director Accurate Business Communications, Inc.