PRESENT: Mayor Gary Wescott; John Schlice C/T; Stevens Point Water & Sewage Commission - Paul Adamski, Eugene Tubbs, Dave Eckholm & John Wandrey; Finance Committee - Alderpersons Barr, Walther, Rackow, Molski & Moore; Board of Public Works - Alderpersons Barr, Walther, Sevenich, Sowieja, & Stroik.

ALSO PRESENT: Director Kim Halverson; Director John Gardner; Director Joe Euclide; Eric Niffenegger-Stevens Point Wastewater Department; Jaime Zdroik-Stevens Point Water & Sewage Departments; John Andres of Virchow Krause; Alderman Wiza - 4th District; Alderperson Markham - 3rd District; Michael Ostrowski-Mayor's Office; Jami Gebert-Main Street; Linda McCulley and Jeff Morris-Stevens Point Police Department; Michael Pinney-Airport; Mike Phillips and Reid Rocheleau.

Index of these Minutes:

1. Discussion and possible action on request from Village of Whiting for surcharge information for wastewater treatment.

2. Adjournment.

1. Discussion and possible action on request from Village of Whiting for surcharge information for wastewater treatment.

The Mayor explained the reason for holding this meeting is because a formal request was made by the Village of Whiting President, Chuck Kell in a letter dated November 8, 2004 for information on surcharges if they would have Stevens Point treat their wastewater.

Also, a letter was received from the Department of Natural Resources dated December 9, 2004. The Mayor made reference to paragraph four of this letter which stated, "there is utility to providing greater assurance by the regional municipality of their intentions to provide service, through more formal action by their governing body".

After receiving the letter from the Village, the Mayor requested specific information from the Water & Sewage Commission under Paul Adamski and Kim Halverson, in order to address the three questions in President Kell's letter.

The Mayor responded to Chuck Kell in a letter dated November 18, 2004 stating the additional charges to the Village of Whiting will be a 25% surcharge charged on the wholesale rate for accepting their wastewater in return for treatment and an initial fee in the sum of $648,300.00.

The Mayor stated the purpose of this meeting tonight is not to enter into any formal intergovernmental agreement. The purpose is to request the Stevens Point Water & Sewage Commission, Board of Public Works and the Finance Committee to endorse what he wrote in the letter dated November 18, 2004 to the Village of Whiting President.

The reasons the Mayor believes the Village of Whiting should do this are that one sewage treatment plant would be eliminated, which would be good for the environment; and based on all of the information provided, it would be the best economic move for the tax payers of the Village of Whiting.

The Mayor requested Kim Halverson to give background on how they arrived at these numbers. Kim said since Virchow Krause is the accounting firm for both the City and the Village of Whiting they were hired to get an unbiased opinion and accurate numbers. Kim stated John Andres from Virchow Krause is here tonight to give background on how we came up with the $648,300 and the 25% surcharge.

John Andres stated there is a policy in the City of Stevens Point stating that a 25% surcharge be charged to anyone outside the City. This policy is what we charge the Village of Park Ridge. In the report Virchow Krause completed, one of the issues the Commission should consider was to charge a connection fee to join the utility. The concept behind that is the customers of Stevens Point have paid the debt service for the wastewater treatment plant since it was expanded and modified and now the Village of Whiting wishes to use some of this capacity. The debt service paid to date for the treatment plant is 9.5 million and the Village of Whiting would be using approximately 10% of the plant. So there is logic to consider a connection fee of $947,000.00. The Commission took this under consideration and did not take any action on it. This number has now been refined and has come down to $648,300.00. Virchow Krause feels this would be the maximum to charge, if we decided to charge a fee to join us. The difference between the $947,000.00 and the $648,300.00 came to be after looking into exactly how much capacity of the treatment plant the Village of Whiting would use. That $648,300.00 was the amount communicated by the Mayor to the Village of Whiting in his letter. John Andres stated again there is no requirement this fee be charged. If it is decided this fee be charged, that money could be used for future expansion of the plant; paying future debt service or it could be used to reduce rates today.

The Mayor reiterated for the benefit of the Alderpersons that he responded to the Village of Whiting the amount of $648,300.00 the calculated percentage of debt service the users of this system have already paid for the plant. If the Department of Natural Resources decides to make the Village of Whiting connect to the City of Stevens Point, the $648,300 fee is certainly the best economic decision for the tax payers of the Village of Whiting. There are three proposals on the table for the Village of Whiting, one that would cost 4.3 million, another a little over 3 million and the City's proposal at about 1.4 to 1.5 million.

The Mayor again stressed that this meeting tonight is not about granting permission to the Village of Whiting to connect to the City, you are authorizing the DNR to use these numbers as part of the work they are doing as referenced in the letter to the Mayor dated December 9, 2004.

John Andres explained if the Village of Whiting is allowed to connect to Stevens Point, a typical Stevens Point residential customer could see a reduction in their cost of approximately $3.00 per quarter or 6% reduction in their bill without the $648,300.00 being figured in. This is just the sharing of the operation and maintenance costs.

Alderman Stroik asked if the 9.5 million dollar debt service was already paid. John Andres said that is correct. Alderman Stroik also asked if the 10% capacity is what the plant is currently at or what we anticipate the Village of Whiting would take up of the plant. John Andres said this is based on the 2025 estimated capacities as put together by the Village of Whiting's engineer.

Alderman Rackow was concerned the Public Service Commission may have rules on this matter. The Mayor explained to Alderman Rackow, the Public Service Commission regulates the water rates and sewage rates are under the consideration of the City Council, Finance Committee and the Water and Sewage Commission.

Reid Rocheleau said he has been following this issue very closing and has attended the Village of Whiting meetings. He said he is in favor of the Village of Whiting connecting to Stevens Point. He feels thought that charging the surcharge and the $648,300 connection fee would be excessive. He feels if the City does both Whiting will probably fight it.

The Mayor believes this offer is a fair and competitive proposal to put on the table.

Alderperson Markham asked three questions: was this also done to the Village of Park Ridge when they hooked up to the City; because it was mentioned that the capital cost was based on projections from 2025 would there be any additional fees added to the Village of Whiting after 2025; and have we come to an agreement with Whiting for fire protection fees?

Alderperson Markham's questions were answered as follows: Yes, this was also done for the Village of Park Ridge when they connected to the City; John Andres said the $648,300 reflects debt service that has already been paid. If there is a need to expand or modify the plant in the future, they would pay in their rates a proportionate share of costs, unless there was an intermunicipal agreement between the City and the Village that stated if the Village of Whiting grew beyond what was projected for 2025 then there could be additional costs. Kim Halverson said she is currently working with an attorney from the PSC on the standby fee issue.

Alderman Barber said if $648,300 was the maximum charge, what is the minimum? John Andres said this figure is subject to negotiation but could be zero.

Motion made by Dave Eckholm of the Stevens Point Water & Sewage Commission, seconded by John Wandrey to endorse the Mayor's letter dated November 18, 2004 to the Village of Whiting President, Chuck Kell.

Ayes all. Nays none. Motion carried.

Motion made by John Schlice of the Board of Public Works, seconded by Aldermen Walther to endorse the Mayor's letter dated November 18, 2004 to the Village of Whiting President, Chuck Kell.

Ayes all. Nays none. Motion carried.

Motion made by Alderman Rackow of the Finance Committee, seconded by Alderperson Molski to endorse the Mayor's letter dated November 18, 2004 to the Village of Whiting President, Chuck Kell.

Ayes all. Nays none. Motion carried.

Alderman Rackow stated he believes this is a fine opportunity to promote intergovernmental cooperation which he has been an advocate of for a long time.

The Mayor requested Kim Halverson and John Andres to draft a letter to the Department of Natural Resources formalizing this action.

2. Adjournment.

Meeting Adjourned at 6:33p.m.

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