OFFICIAL MINUTES
OF THE
CITY OF KEWAUNEE COMMON COUNCIL
SPECIAL MEETING
JANUARY 19, 2010

Present: Mayor Blaha, Alderman Kostka, Vollenweider, LuMaye, Kunkel, Zenner, Jeske, D. Kickbusch, Sperber

Absent: None

Others: Administrator Kranz, Sewer Plant Operators Randy Lee and Dennis Grulkowski, Nick Ritz, Willard Kickbusch, Jim Gayhart, Kurt Rentmeester

Mayor Blaha called the meeting to order at 5:00 p.m.

The purpose of the meeting was for Administrator Kranz to review with the Council Rural Development Administration’s (RDA) Grant/Loan Package being offered and the estimated sewer rate impact on customers required for the Wastewater Treatment Facility Upgrade Project to occur.

Administrator Kranz informed the Council that RDA is offering a 30% grant along with a 40 year loan at a 2.375% interest rate. This means that $4,904,000 would be a loan over 40 years and approximately $2,096,000 as a grant for a total $7,000,000 construction project.

It is estimated that sewer rates would increase from $6.38 per 1,000 gallons to $11.38 per 1,000 gallons (a $5.00 increase) and the monthly fixed charge would decrease from $5.78 per month to $5.62 per month (a $.16 decrease). An average customer who uses 3,000 gallons per month would see a $14.84 per month increase or 59.55%.

The Selmer Company, the low bidder for the project has once already given the City a 60 day extension on holding its bid open. This 60 day period expired January 13th. With the City pursuing RDA financing and for the Council to take the necessary actions, The Selmer Company gave an addition extension until January 22nd. RDA established January 22nd as the deadline for the City to act so the City’s funding request could be submitted by RDA to the Federal level to meet February 2010 funding commitments.

Discussion occurred on all of the funding scenarios the City has researched and considered and it was agreed that this RDA financing package was the best available. As to the construction project itself, it was agreed that there was no other choice but to complete the sewer plant renovation upgrades not only because of the changing sewer permit requirements established by the Department of Natural Resources, but also because of the age of the plant itself and the safety and non-efficiency issues that exist.

Vollenweider moved and Zenner seconded to award the Wastewater Treatment Facility Upgrade Project Bid to The Selmer Company, Green Bay, Wisconsin in the base bid amount of $5,857,985.00 subject to Rural Development Administration concurrence and to authorize the Mayor and Administrator to execute all necessary contract documents. Upon a roll call vote, motion carried unanimously.

D. Kickbusch moved and Jeske seconded to submit a formal application for grant and low interest rate loan funding to Rural Development Administration for the Wastewater Treatment Facility Upgrade Project and to authorize the Mayor and Administrator to execute all necessary contract and loan documents. Upon a roll call vote, motion carried unanimously.

Sperber moved and Kunkel seconded to adjourn the meeting at 5:45 p.m. Motion carried unanimously.