Peshtigo Council Agrees To Finance City Improvements With Two Banks

At the urging of Mayor Al Krizenesky, Peshtigo City Council at its regular monthly meeting Tuesday, July 3 agreed to seek loans to finance the numerous improvement projects currently in progress in the city. A special meeting will be scheduled to finalize the resolutions needed to approve loan documents.

Aldermen Fred Meintz and Mike Behnke were absent and excused.

In separate motions that came after long, hard discussion, Council agreed to accept the offer from Peshtigo National Bank (PNB) to loan the city $1,957,657 at 2.99 percent interest for General Obligation projects to be paid by the city itself, and to seek a $1,677,000 loan at 2.22 percent interest from Farmers and Merchants Bank (F&M Bank) for Sewer Utility work, which will be paid by the city’s sewer utility. Both are 5-year loans. There were no dissenting votes.

Clerk/Treasurer Mary Ann Wills said Wednesday morning, July 11 that she has prepared the applications and submitted them to the banks and is now waiting for them to respond. Once they do, the special council meeting will be scheduled.

Krizenesky had sought quotes from several local banks starting in May, and then invited all to submit new, lower interest rates if they could. All offers submitted were contingent on the loans being exempt from Federal taxes. F&M Bank submitted an offer on May 25 for 2.99 percent interest and then on June 20 offered the General Obligation loan at the 2.22 percent fixed interest, and the Sewer Utility loan at 2.47 percent interest.

Motions made by Alderman Mary Lock and unanimously approved by Council were to accept the Sewer Utility loan at 2.22 percent interest from F&M Bank, and the General Obligation loan from PNB Bank for their offer of 2.99 percent interest.

Other banks that submitted offers were Citizens Bank, Wells Fargo and Stephenson National Bank.

The PNB loan was not the lowest rate offered, and acceptance came despite urging by Krizenesky that “The difference in interest rates adds up to a lot of money, and we really have to get the best deal we can for the citizens.”

During the lengthy and often confusing discussion that preceded the motions, PNB spokesman Jim Kmiecik reminded the Council theirs is a local bank and a good business citizen of the city. “I just wish the Council would consider the relationship we’ve always had,” he declared. “I never heard of such a thing as coming back with another bid after all the bids are in.” He said they were not able to come back with a better interest rate because, “we always give our best deal in the first place.”

Krizenesky said the lower June 20 interest quote from F&M Bank offers came after it was authorized at a meeting of the bank’s board of directors.

“Are we doing anything that’s a little bit questionable by the way we’re handling this?” Lock asked, referring to accepting quotes and then inviting new, lower quotes from anyone who wanted to submit them, and possibly also to accepting something other than lowest rates quoted.

“Legally, I don’t think so,” was the response of City Attorney Dave Spangenberg, who then added, “Legally, I don’t think it’s imperative that we go with the lowest bid. We can consider the other concerns that you brought up.”

Kmiecik said because of the size of the loans, his bank could only handle one of the loans without seeking an outside partner, which is why they made their offer for only the General Obligation borrowing.

Krizenesky then suggested going with PNB for one of the loans and F&M Bank for the other, which was the route the board ultimately took.

Motion authorizing Wills to apply for the loans then was unanimously approved. There was some disagreement when she said Council would need to come back for a special meeting when the formal loan documents are ready. Krizenesky wondered if there was time for a special meeting and suggested the Finance Committee could deal with the loan papers, but Wills said there could have to be a special meeting of the full Council.

“Borrowing requires a resolution of the Council,” she declared. “Once you sign those loan documents, they are final!”

There was discussion but no action on a proposed agreement with Kaempfer & Associates to develop a new rate plan for the city’s Sewer Utility, which was probably a good thing, because that proposal was replaced by a new one presented at meeting of the Water and Sewer Utility Committee on Monday, July 9.

Rates for sewer use must be raised enough to cover a $200,000 operating deficit and make payments on the loan to finance the current $2.3 million wastewater treatment facilities improvements. Council also approved a motion specifying that TIF funds will pay 29.1 percent of the wastewater treatment plant project cost.

Also approved, with the sole dissenting vote cast by Alderman Tim Colburn, was a recommendation from the Water and Sewer Committee to approve the Wisconsin Public Service Commission’s recommendation that city water prices be raised enough to provide a 1.5 percent rate of return for the utility. This is half a percent higher than the 1 percent rate of return the city had sought when it requested a rate hike earlier this year. There will be a public hearing in August on the new prices that will be needed to achieve the new rate of return. City water and sewer users will be seeing higher rates on both water and sewer bills in the near future.

On the lighter side, Council approved a temporary beer license and a street use permit that will bring the Budweiser Clydesdale Horse Team to Peshtigo for a Wild Fire H.O.G. event sponsored by Vandervest Harley Davidson on Saturday, Aug. 4. They expect it to be an 8-horse hitch.

The Budweiser spokesman said they hope to attract a couple thousand people to Peshtigo for the event, which will include a Clydesdale tour around the Industrial Park, hopefully with a police escort. Radio stations from Green Bay and Cat Country will be broadcasting from the Vandervest grounds, where the H.O.G. Chapter will serve beverages and Peshtigo Booster Club will serve food, and the Clydesdale team will be on display, at least for part of the day.

“It’s a long time since we had a parade on the east side of town,” declared Alderman Tom Gryzwa. He was told that original plans called for a parade across the bridge, but since the bridge will still be out when the event is held they will need to stay on the east side, where Vandervest is located.

Work on the siren warning alarm system will be delayed a bit due to a problem with the Fire, Lighting and Building Committee meeting held - or not held - on June 21. The committee members present - Meintz and Lock - had recommended keeping the city’s polling site at the Municipal Building and accepting a proposal for electrical work for the siren project at an estimated cost of $16,324,77. However, before Council could act on the recommendations, Alderman Cathi Malke objected that the recommendations had been made at an illegal meeting that would have to be redone.

“I am a member of that committee and I was never invited to attend,” she declared.

Wills said there had been a quorum.

“Mr. Meintz told me he had asked Mary Ann (Wills) to call me and I did not receive a call,” she said. “I would like the meeting voided and redone...I have people in my district and they deserve to be represented!”

Krizenesky asked Malke if she was willing to let the agreement for siren electric work go forward, since he did not want to put the project off, but Lock felt it would be all or nothing as to whether or not there had been a committee meeting.

Malke asked Wills if she had attempted to call her, and Wills said she could not recall, to which Malke retorted, “Then I’ll take that as a ‘no’!”

The meeting apparently will be redone. Krizenesky suggested they can take up the siren electrical work when the special council meeting is held to approve the borrowing resolutions.

On recommendation of the Streets and Drainage Committee Council agreed to accept the low bid of $528,310.71 from Relyco, Inc., Contractors of DePere for the Industrial Park Storm Water Management project.

In other business:

A request from Faith Baptist Church for land for a garden was sent to the Industrial Park Oversight committee to see if there were any restrictions put on the property when Marinette County sold it to the city for $1.

Sale of the city’s 2003 Ford Crown Victoria was approved.

Recommendations from the Parks and Recreation Committee for new rules and regulations for the Badger Park Pavilion and a 10 percent reservation fee for campsites were approved, along with new campsite fees and a recommendation that campers already in the park will be given priority if reservations for the following year are made during their stay.

Council approved committee’s color choice for new benches for Riverfront Park.

On recommendation of the Streets and Drainage Committee, several contractor change orders were approved for work on various downtown street and utility projects being done by Northeast Asphalt, Jackie Foster and DeGroot.

Although there was agreement there is no money to redo the Municipal Building parking lot this year, Council agreed that while contractors are busy remodeling French Street they should put in a new driveway entrance that eventually will fit with a proposed redesign of the parking lot.

Operator’s licenses were approved for Karen Kamine, Peshtigo; Kathleen Gruh, Marinette; Theresa Kleikamp, Peshtigo; Molly Kamine, Marinette, and Vanessa Garrison and Barbara J. Kelly, both of Peshtigo.

A taxicab license renewal was approved for Robert Dettman, doing business as Reliable Taxi Service.

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