October 13, 2020

PRESENT:  From B&G: Kate Pfaendtner, Tom Zillges, Betts Nikolai, Jan Olson, Lou Zwicky, Daryl Ramlow, Brad Gasper, Rick Pierre, and Dave Smolinski

From Council:  Jeff Jahnke, Wayne Luedtke, John Macho, Jan Olson, Pastor Kevin Heffernan, Sarah Miller, David Wein

PURPOSE OF MEETING:  To gain a direction and a consensus on two huge needs re: upgrades:  1). Replace roof d/t wind damage on 6/2/20;  2). Replace furnaces d/t cracked heat exchanger on the one that heats the kitchen and aging process and increasing repair needs of all our furnaces. 


Kate opened the meeting by introducing presenters on roof replacements – Jesse Chase. Owner of ARC Contracting and Trevor Lord, Restoration Inspector for ARC. Both introduced themselves and gave a brief bio of their backgrounds and the work they do.  Trevor is the primary person who has been working with Kate as well as our Insurance Co., Acuity for adequate coverage. 

Of note:  we replaced the roof in 2011 following a hail storm after much ‘haggling’ with our insurance carrier of that time – Church Mutual.  Cost at that time was around $60,000 or more which CM did ultimately cover.  The Adjuster for Acuity has worked well with Trevor and they have agreed to replace our roof for a total $100,172.48.  This is higher than the stated figure at the meeting, of approximately $91,000 d/t Trevor re-addressing our cost with additional work re: decking.  Our deductible is $500.

Our Insurance Carrier, Acuity has notified us that they will continue to insure us, but if we choose to replace roof with standard asphalt shingles of ‘like quality to what is presently there’, this will be the only time they cover it for wind damage alone.   Rationale:  Lord of the Lakes is located in a ‘wind tunnel’ area.  Statistics were stated on storms in our area.  Since 2011 there have been 25 storms (hail/wind) in an area within 5 miles of LOL — 9 in BDM.  Per graphs presented by ARC, hail and wind storms are increasing in frequency and severity.

Bottom Line:  our roof needs to be replaced and we need to consider a product with added protection.  ARC presented 4 alternatives and the features that make them a better product as well as costs varying from the $100,172 for a like product to our present roof (first 3 products GAF Asphalt) to a Metal Roof for @181,311.  See attached document for details. 

Following a question by John, Trevor had stated he also inspected the decking in areas of concern, where large areas of shingles can be lifted and feels there may be areas of decking that have to be replaced.  Impossible to tell that on the entire roof until our present roof is removed.  That cost is not included in this quote – hence the renegotiation with Acuity. 

Following discussion and question/answer time, Kate called for a show of hands as a vote by all in attendance.  Majority voted for option No. 2. 

Specs on Option No. 2:  base cost $113,885, 5 yr warranty by ARC, 10 yr warranty on parts/labor by GAF, has 130 MPH wind rating.  GAF is in process of adding a feature to just this product which has an unlimited wind warranty covered at 100% for another 15 years. Additional cost for that is $11,400 and the majority approved adding that, knowing this may delay arrival of product once ordered.  ARC will do any mitigation to get us thru till roof can be done.  They do work through the winter months depending on weather on any given days. 

Cost:  $113,885 + $11,400 =  $125,285

                                Minus              100,172 from Acuity

                                                         $  25,113    This is what we need to come up with; will need to pay $500 deductible up front.  Insurance monies will be paid up front for us to have down payment and can place order.


Timing:  out about 4-6 weeks on the product that we have chosen plus ARC has been notified by GAF that there is a price increase happening as we speak.  It is hoped ordering now will lock in this price.  Building supply costs in general are going up daily d/t COVID and scarcity. 

FURNACES:  B&G has done a lot of work, getting quotes from 3 different companies.  All 3 would give us a better price if we replaced all 6 (3 upstairs which heat the Narthex and kitchen and 3 in basement with heats the offices/education wing).  Our difficulties have been with the 3 upstairs only plus these are squeezed into a very small closet between the two bathrooms and these would be very difficult to  replace by themselves.  All our furnaces are 16 years old and nearing their life expectancy.  Replacing all 6 will not serve us well in the future as it is preferable to have these costs staged out re: fund raising and budgeting. 

B&G is recommending to replace the 3 upstairs only, using Oshkosh Heating and Air’s Armstrong furnaces 2 stage, modulating (work to keep the temp even throughout the area) for a cost of $29,100 for all 3.  There is urgency in this need as the one heating the kitchen cannot be turned on due to dangerous Carbon Monoxide leak.  

The 6 Council members met briefly after to discuss how we will pay for these two large needs.  Jeff will research re-financing our mortgage for a lower rate and folding these costs into that versus some funds we have set aside in three different funds and using all or some of that in addition to a capital campaign.  We agreed to give Kate the green light to order both and Jeff will ask for a formal approval at Council meeting this Tues., the 20th once which route of financing to use is determined.

Jan made note that our Constitution states Council has a maximum of $10,000 spending ability; above that needs to be taken to a Congregational Meeting.  Council is in the process of Constitution revision, with the document at the Synod office for approval at this time.  Jan will add an addendum, addressing Council’s ability to act on emergency situations such as both these incidents are. 

Kate will work with ARC and Oshkosh H&A to start on these ASAP.  It is hoped the furnaces will be done within a couple weeks since we are into the heating season.

Thank you to the many people involved in this research, namely Dave, Brad, and especially Kate for her communication and working closely with Trevor and getting us to this point.   

Respectfully submitted, Jan Olson, Secretary for B&G