Minutes of the January 02, 2018 Meeting1/2/2018
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TOWN OF WOLCOTT COUNCIL MEETING

 

The Council of the Town of Wolcott met Tuesday, January 2, 2018 at 6:00 p.m., in the Community Room of the Wolcott Town Hall for its regular stated meeting. 

 

Council Members Present

Council President, Christina M. Orns, Council Vice President, Michael A. Yelton and Members, Fred A. Young, Michael J. Johnson and Stephen Schemerhorn

 

Others Present

Clerk-Treasurer, Tammy L. Seward; Water/Street Superintendent, Robert Thomas; Wastewater Superintendent, Chad Reynolds; Wolcott Town Marshal, James M. Herre, Wolcott Volunteer Fire Dept. Chief, Kenneth Burns; Town Attorney, Jacob A. Ahler and Town Hall Custodian, Nanette Paz.  Also present were Bose, McKinney & Evans LLP Bond Counsel, Dennis Otten; Umbaugh CPA, Jeffrey Rowe; Remington-Wolcott Community Development Corporation Executive Director, Sara DeYoung; Residents, Daryl Orns, Marsha Orns, Darwin Miller, and Janell Hofstetter; and Barbara Lawson of The New Wolcott Enterprise.    

 

Council President, Christina M. Orns opened the meeting by asking all present to join in saying the Pledge of Allegiance.

 

Council President, Christina M. Orns welcomed Dennis Otten, Bond Counsel with Bose, McKinney & Evans LLP; and Umbaugh CPA, Jeffrey Rowe.   

 

Bond Counsel, Dennis Otten explained the Bond issue process of the Rural Development Water System Improvements Project to Council and those present.  Mr. Otten stated that part of the process is to adopt a Bond Ordinance and actually issue the Bond.  Mr. Otten added that the Town will also initiate temporary-interim financing through a Bond Anticipation Note. 

Mr. Otten stated that the Bond Ordinance he, Mr. Rowe and Town Attorney, Jacob A. Ahler prepared for the Town relative to the Rural Development Water System Improvements Project, authorizes the Town to move forward with issuing the Bond and Bond Anticipation Note within the financial parameters set forth in the Bond Ordinance. Mr. Otten then provided a brief overview of the Bond Ordinance stating the following:

       The Bond Ordinance states that the projected cost of the Water System Improvements Project is $5,610,000.

       The Bond Ordinance states that there is a contemplated $2,546,000 Rural Development Grant for costs of the Project.

       The Town does not have substantial funds on hand to afford the costs of the Project not funded by the Rural Development Grant.  Therefore, it is necessary to authorize said costs by the issuance of Waterworks Revenue Bonds, in one or more series, in an aggregate principal amount not to exceed $3,064,000 and, if necessary, Bond Anticipation Notes.

       The Bond Ordinance is specific to Rural Development financing.

       The Waterworks Revenue Bonds of 2001 will be retired or defeased prior to the issuance of the bonds herein authorized.

Mr. Otten stated that due to the need for interim funding to finance the Preliminary Design and Consulting Fees of the Project, which is estimated at $300,000, Council needs to introduce the Bond Ordinance during this Council Meeting and adopt it during the February, 6, 2018 Council Meeting.  Mr. Otten added that a Public Hearing/Legal Advertising is not necessary to adopt a Water Bond Ordinance.  In closing, Mr. Otten stated that Council needs to work with Jeff Rowe of Umbaugh relative to the amount of interim funding needed.  Mr. Otten also stated that Rural Development needs to be contacted relative to the financier of the Bond Anticipation Note as Rural Development has recently changed some of the rules/guidelines of interim financing. 

 

Financial Advisor (CPA) Jeff Rowe stated that with recent USDA Rural Development Projects he has been affiliated with; the following Rural Development rules/guidelines relative to funding applied:

       The Interim Financing or Bond Anticipation Note could be funded by any Financial Institution.

       The Construction Loan for the Project was funded by Indiana Bond Bank.

       The Long-Term Bond(s) were funded by USDA Rural Development.

Town Attorney, Jacob A. Ahler added that he would consult with David Hacker of USDA Rural Development, before finalizing the Ordinance, to ensure that the Bond Ordinance is in compliance with Federal Regulations.  Financial Advisor (CPA) Jeff Rowe added that, in addition, he will consult with Vince Sommers of Commonwealth Engineers, Inc. regarding the projected amount of the Preliminary Costs of the Project relative to the Bond Anticipation Note.

 

Financial Advisor (CPA) Jeff Rowe stated that based on the funding parameters of a $2,546,000 Grant and a $2,130,000 Bond to fund the Water System Improvements Project, the monthly increase in the average residential bill (based on 4000 gallons of consumption per month) is $11.17; going from $28.76 per 4000 gallons of consumption per month to $39.93 per 4000 gallons of consumption per month; which is a 39% increase.  Mr. Rowe added that some of the other factors that will be used to determine the monthly increase in the average residential bill are:

       Actual Cost of the Project

       Operational and Maintenance Cost Figures

       2001 Bond Refinance Amount

In response to Council President, Christina M. Orns' inquiry as to the impact, if any, proceeding with a rate increase would have on the Project; Mr. Rowe stated that it wouldn't impact the final increase and provided the following option:

       Include two (2) rate increase phases within the Ordinance; with the first phase being 50% of the increase during construction of the Project; and the 2nd phase the remainder of the increase upon closing of the loan.

Some discussion followed relative to the timeline of being able to bid the Project for construction.

 

Council President, Christina M. Orns assigned Ordinance No. 2018-03 to the Water System Improvements Project Bond Ordinance that Bond Counsel, Dennis Otten, presented.  Council President, Christina M. Orns then introduced Bond Ordinance No. 2018-03, by reading the following:

          An Ordinance concerning the construction of additions and improvements to the waterworks of the Town of Wolcott, Indiana, the issuance of revenue bonds to provide the cost thereof, the collection, segregation and distribution of the revenues of said waterworks, the safeguarding of the interests of the owners of said revenue bonds, other matters connected therewith, including the issuance of notes in anticipation of bonds, and repealing ordinances inconsistent herewith

No action was taken. The 2nd reading and adoption of Bond Ordinance No. 2018-03 is to be during the next Council Meeting on Tuesday, February 6, 2018.

 

Upon Council Member, Christina M. Orns introducing Bond Ordinance 2018-03, Financial Advisor (CPA) Jeff Rowe stated that within the Bond Ordinance, the following maximum financial parameters of the Project are:

       The maximum Project size authorized is $5,610,000; which is 20% higher than the actual projected cost of the Project of $4,676,000. 

       The maximum principal amount of the bond is $3,064,000

       The Grant amount established by the "Letter of Conditions" from Rural Development is $2,546,000.

       The Project size and bond amounts do not match that which is stated in the "Letter of Conditions" from Rural Development to allow for unforeseen and/or increased costs of the Project.

Council President, Christina M. Orns thanked Mr. Otten and Mr. Rowe for their presentation and explanation of the Bond Ordinance.

 

Bond Counsel, Dennis Otten and Umbaugh CPA, Jeffrey Rowe exited the meeting at this time.

 

Council President, Christina M. Orns asked if there were any questions or comments from the audience.

 

Resident, Darwin Miller stated that he feels Chad Cleefman should be thanked for clearing the sidewalks along US 24 of snow.    

 

Remington-Wolcott Development Corporation Executive Director, Sara DeYoung reported that the Wolcott Main Street Committee has new officers and they are as follows:

       President:  Sam Pinkerton

       Vice President:  Linda Goy

       Treasurer:  Talaina Pinkerton

       Secretary:  Chasity Sallee

Sara added that the Main Street Committee is always open to new ideas.

 

Minutes/Memoranda

Council President, Christina M. Orns asked for a motion to approve the minutes and/or memoranda for the following meetings:

       Tuesday, December 19, 2017 Council Meeting

Council Vice President, Michael A. Yelton, moved to approve the aforementioned minutes and/or memoranda.  Council Member, Stephen Schemerhorn seconded the motion; and the motion passed 4-0.

 

Departmental Reports

 

Water/Street Superintendent, Robert Thomas presented Council with the following quote from Peerless Midwest to repair HS Pump 1:

       Two (2) Stainless Steel Swing-Bolt Assemblies - $470

       Troubleshooting/Inspection Fees - $400

       New Bearings, Shaft Sleeves, Mechanical Seals - $3,822

       Labor - $1,000

       Total Cost - $5,692

Following some discussion, Council Vice President, Michael A. Yelton moved to approve moving forward with the repair of HS Pump 1 at a total cost of $5,692.  Council Member, Michael J. Johnson seconded the motion; and the motion passed, 4-0.

 

Water/Street Superintendent, Robert Thomas reported that despite sub-zero temperatures, they have not had any meters freeze.

 

Wastewater Superintendent, Chad Reynolds reported that the Sewage Plant is holding its own relative to freezing during the sub-zero temperatures. 

 

Wastewater Superintendent, Chad Reynolds stated that a cylinder went out in the blue plow truck and the windshield wiper motor went out in the red plow truck.  Both are scheduled to be repaired.

 

Wastewater Superintendent, Chad Reynolds asked residents to be cognizant of on-street parking if there is more than 2" of snow predicted, as it hard to maneuver the snow plow around parked vehicles.

 

Wastewater Superintendent, Chad Reynolds asked residents to be mindful about dripping faucets during sub-zero temperatures to prevent pipes and/or meters from freezing.

 

Wolcott Town Marshal, James M. Herre presented his department's activity report for the month of December 2017.       

 

Wolcott Volunteer Fire Dept. Chief, Kenneth Burns - nothing forthcoming

 

Council President, Christina M. Orns asked for a motion to approve payment of the invoice Town Attorney, Jacob A. Ahler submitted in the amount of $577.50 for December 2017 Legal Services rendered above the 2017 Retainer amount as follows:

       Water Fund - 1.30 Hours @ $150/Hour = $195.00

       General (Riverboat) - 2.55 Hours @ $150/Hour = $382.50

Council Member, Michael J. Johnson moved to approve payment of the invoice Town Attorney, Jacob A. Ahler submitted in the amount of $577.50 for December 2017 Legal Services rendered above the 2017 Retainer amount as follows:

       Water Fund - 1.30 Hours @ $150/Hour = $195.00

       General (Riverboat) - 2.55 Hours @ $150/Hour = $382.50

Council Member, Stephen Schemerhorn seconded the motion; and the motion passed 4-0.

 

Clerk-Treasurer, Tammy L. Seward presented the following correspondence not requiring action:

       The Town of Reynolds has been invoiced $500 for December's Wastewater Testing Fee.

 

OLD BUSINESS

 

Water System Improvements Project

Clerk-Treasurer, Tammy L. Seward reported that $119,340 is due and payable to Commonwealth Engineers for 85% of the $140,400 Preliminary Design Services contracted amount.

 

Wastewater Superintendent, Chad Reynolds stated that Vince Sommers of Commonwealth Engineers, Inc. expressed that it is his goal to present the Final Plans and Specifications of the Water System Improvements Project to Council during the February 6, 2018 Council Meeting.

 

IHCDA Housing Grant

Council President, Christina M. Orns stated the following relative to the IHCDA Housing Grant:

       There will be a Pre-Bid Conference on Tuesday, January 9, 2018 at 2:15 p.m. in the Community Room of the Wolcott Town Hall, 101 W. North Street, Wolcott, IN  47995.

       The Town of Wolcott will be accepting sealed bids for Two (2) homes until 3:30 p.m. on Wednesday, January 17, 2018.

       The sealed bids will be publicly opened and read aloud at 6:00 p.m. on Wednesday, January 17, 2018.

 

Council President, Christina M. Orns scheduled a Special Session for January 17, 2018 at 6:00 p.m. to be held in the Community Room of the Wolcott Town Hall located at 101 W North Street, Wolcott, IN  47995 relative to the opening and reading of the IHCDA Housing Grant Project Bids.

 

NEW BUSINESS

 

Council President, Christina M. Orns read the Transfer of Funds Resolution No. 2018-01 to transfer $125 from General/Promotional, Acct #101001355.000 to General/Printing & Advertising, Acct #101001332.000 to restore funds for the 2017 Budget year. Council Vice President, Michael A. Yelton moved to approve Transfer of Funds Resolution No. 2018-01.  Council Member, Stephen Schemerhorn seconded the motion; and the motion passed 4-0.

 

Council President, Christina M. Orns read Declaratory Resolution No. 2018-02, a Resolution to:

       Establish a time for regular meetings and a procedure for calling Special Meetings of the Town Council; and

       Authorize the Clerk-Treasurer to invest and re-invest any monies of the Town in obligations authorized and in the manner provided for by I.C. 5-13-4-1; and

       Authorize payment of on-going utility and prior contracted services necessary to secure discounts and avoid penalties.

Council Member, Michael J. Johnson moved to adopt, upon its first presentation, Declaratory Resolution No. 2018-02.  Said motion was seconded by Council Member, Fred A. Young; and the motion passed, 4-0.

 

Council President, Christina M. Orns read the Contract Agreement between the Town of Wolcott and Nanette Paz for 2018 Janitorial Services.  The term of the Agreement is for a period of twelve (12) months commencing on January 1, 2018 and terminating on December 31, 2018.  The Town shall pay Nanette Paz, $150 per month for twelve (12) months.  Council Member, Fred A. Young moved to approve the Contract Agreement between the Town of Wolcott and Nanette Paz for 2018 Janitorial Services, dated January 1, 2018 thru December 31, 2018 in the contracted amount of $150 per month.  Council Vice President, Michael A. Yelton seconded the motion; and the motion passed, 4-0.

 

Council Member, Stephen Schemerhorn moved to approve the following designation as read by Council President, Christina M. Orns; Council Member, Michael J. Johnson seconded the motion; and the motion passed 4-0.

       Stated Council Meeting dates and times of the Wolcott Town Council as follows: 

o   All stated meetings will convene at 6:00 p.m. in the Community Room of the Wolcott Town Hall, 101 W. North Street, Wolcott, Indiana 47995
 
  •   Tuesday, January 2, 2018
  •  Tuesday, February 6, 2018
  •   Tuesday, March 6, 2018
  •   Tuesday, April 3, 2018
  •   Tuesday, May 1, 2018
  •   Tuesday, June 5, 2018
  •   Tuesday, July 10, 2018
  •  Tuesday, August 7, 2018
  •  Tuesday, September 4, 2018
  •   Tuesday, October 2, 2018
  •   Tuesday, November 6, 2018
  •   Tuesday, December 4, 2018
  •   Tuesday, December 18, 2018
  •   Tuesday, January 8, 2019 

Council Member, Fred A. Young moved to approve the following designations as read by Council President, Christina M. Orns; Council Member, Michael J. Johnson seconded the motion; and the motion passed 4-0.

       The New Wolcott Enterprise as the Town's primary newspaper.

       Bank of Wolcott as the Town's primary depository.

 

Council Member, Fred A. Young moved to approve membership in the following organizations as read by Council President, Christina M. Orns; Council Vice President, Michael A. Yelton seconded the motion; and the motion passed 4-0:

a.     Accelerate Indiana Municipalities (AIM) formerly known as Indiana Association of Cities & Towns (IACT). 

b.    Indiana League of Municipal Clerks & Treasurers (ILMCT) and International Institute of Municipal Clerks (IIMC). 

c.     Indiana Rural Water Alliance

d.    American Water Works Association. 

 

Council members present executed the following certifications:

1.    Certifications of Elected Official to the Executive of the Town of Wolcott on Compliance with Municipal Nepotism Policy Applicable to Contracting; and

2.    Annual Certification of Elected Official to the Executive of the Town of Wolcott on Compliance with Municipal Nepotism Policy involving Direct Line Supervision.

 

Council President, Christina M. Orns read and requested approval of the RWCDC Memorandum of Agreement for Assistance in Planning and Implementing Economic Development Programs. In accordance with this contract with the Remington-Wolcott Community Development Corporation, the Town of Wolcott shall pay to the RWCDC $7,500 in two equal installments of $3,750 each. Council Member, Fred A. Young moved to approve the RWCDC Memorandum of Agreement for Assistance in Planning and Implementing Economic Development Programs; Council Member, Michael J. Johnson seconded the motion; and the motion passed 4-0.

 

Council President, Christina M. Orns read and requested approval of the White County Economic Development Memorandum of Agreement for Assistance in Planning and Implementing Economic Development Programs.  Council Member, Fred A. Young moved to approve the White County Economic Development Memorandum of Agreement for Assistance in Planning and Implementing Economic Development Programs; Council Vice President, Michael A. Yelton seconded the motion; and the motion passed 4-0.

 

Council President, Christina M. Orns read and requested approval of the Agreement between the Town of Wolcott and the Wolcott Main Street Committee for Assistance in Planning and Improving the Wolcott Downtown Business District, in the amount of $1,500.  Council Vice President, Michael A. Yelton moved to approve the remittance of $1,500 to the Wolcott Main Street Committee, per the Agreement between the Town of Wolcott and the Wolcott Main Street Committee for Assistance in Planning and Improving the Wolcott Downtown Business District.  Council Member, Fred A. Young seconded the motion; and the motion passed 4-0. 


Council President, Christina M. Orns
opened discussion relative to amending Utility Ready Fee Ordinance No. 2017-05 to include guidelines pertaining to the removal of an unused meter pit.  Wastewater Superintendent, Chad Reynolds expressed his concern relative to leak issues that may arise by plugging the setter and not removing the line to the main.  Council Vice President, Michael A. Yelton stated that plugging the setter and filling in the meter pit could lead to potential problems of the line that runs from the main to the meter and not being able to locate the line should that happen.  This would result in the Town having to remove the original line and capping it off at the main; or running a new line which would result in the property owner having to pay a water and wastewater tap fee.  Following a lengthy discussion, Council Vice President, Michael A. Yelton moved to amend the language of Utility Ready Fee Ordinance No. 2017-05 stipulating that a property owner in the town of Wolcott that has an unused meter pit may demand the Town remove the meter pit and water line to the main water line and that said removal will be entirely at the expense of the property owner. Mr. Yelton added that the removal of said meter pit and water line shall only be removed by the Town of Wolcott and not by a private contractor. Council Member, Michael J. Johnson seconded the motion; and the motion passed, 4-0.

Council President, Christina M. Orns opened discussion relative to graduated water rate increases in 2018 by asking Town Attorney, Jacob A. Ahler the provisions of a Rate Increase Ordinance relative to the number of phases a Rate Increase Ordinance can contain.  Town Attorney, Jacob A. Ahler stated that there is not a cap on the number of phases a Rate Increase Ordinance can contain however there may be a cap on the amount of increase per phase. 

Mr. Ahler is going to investigate the legal parameters relative to said matter.  Council Vice President, Michael A. Yelton expressed his concerns relative to how increasing water rates will impact the Economic Development of the Town.  Mr. Yelton stated that an increase in rates will have a negative impact on those who rent, resulting in an increase in rental turnover.  Mr. Yelton feels that the owners of the rental properties should have to absorb some of the rate increase.  Discussion ensued as to how this can be accomplished, including performing a cost study. 

Mr. Yelton feels that an expense pertaining to the General Fund, Water Fund, and Wastewater Fund should be paid according to the portion of which that expense represents the fund; not 1/3 from each fund as is the current allocation.  Mr. Yelton added that this may lessen the amount of the water rate increase needed, as the study may indicate a needed increase in the amount allocated for General Fund expenditures.  In essence, this would result in the need for increased tax revenue as the General Fund is primarily funded by tax monies generated from taxpayers. 

      

 

There being no other business, the accounts payable register was approved and signed for the following amounts:

 

Accounts Payable

 

General Fund

 10,389.43

Motor Vehicle Highway Fund (MVH)

1,541.08

Park & Recreation

18,500.00

Water Operating Fund

9,232.64

Wastewater Operating Fund

5,133.08

Stormwater

347.00

Ambulance

63.19

Payroll

6,787.39

Payroll Federal W/H

1,067.24

Payroll FICA/Medicare W/H

1,444.92

Payroll State/County W/H

1,301.96

Payroll Perf W/H

386.01

Payroll PERF Corp Share

1,106.57

Payroll Health Savings Account

140.00

Payroll Medical

913.73

 

 

GRAND TOTAL

$58,354.24

 

 

Payroll Docket

$10,073.90

     Payroll Ending 12/25/2017

 

 

 

Utility Adjustments

-13.47

 

 

 

 

Council Member, Michael J. Johnson moved to adjourn the meeting; the motion was seconded by Council Vice President, Michael A. Yelton; and the motion passed 4-0.

 

 

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