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HomeMy WebLinkAbout06. Council Minutes PROCEEDINGS OF THE COMMON COUNCIL CITY OF OSHKOSH, WISCONSIN MAY 9, 2017 REGULAR MEETING held Tuesday, May 9, 2017, at 6:00 p.m. in Council Chambers, City Hall Mayor Cummings presided. PRESENT: Council Members Jake Krause, Tom Pech Jr., Lori Palmeri, Deb Allison- Aasby, Steven Herman, Caroline Panske, and Mayor Steve Cummings ALSO PRESENT: Mark Rohloff, City Manager; Pamela Ubrig, City Clerk; Lynn Lorenson, City Attorney; and James Rabe, Director of Public Works Council Member Panske read the Invocation. The Pledge of Allegiance was led by Falisha Lor & MacKenzie Zahn from Merrill Elementary School; and Bailey Boelter &Josephine Goetsch from Merrill Middle School PROCLAMATIONS Mayor Cummings proclaimed the month of May, 2017 as 'Building Safety Month' in Oshkosh and encouraged citizens to participate in building safety activities. He proclaimed May, 2017 as 'Historic Preservation Month' and encouraged citizens to recognize and participate in the observance. Shirley Mattox accepted the 'Historic Preservation Month' proclamation. She explained historic preservation was a significant part of Oshkosh; the City was one of four cities in the state (Milwaukee, Madison, La Crosse and Oshkosh) who applied for and received millions of dollars in historic tax credits from 2014 to 2016. She stated the total of tax credits over the course of the three years was over $500 million. She thanked Mayor Cummings for the proclamation. Mayor Cummings proclaimed May 7 through May 13, 2017 as 'National Travel and Tourism Week' in Oshkosh and encouraged citizens to participate in related events and 1 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 commemorations. Members of the Oshkosh Convention and Visitors Bureau accepted the proclamation. Dan Schetter, Chair of the Oshkosh Convention and Visitors Board, explained that tourism was a significant economic driver of the City. He stated Oshkosh had much to offer, having earned the name Event City, and Council recognized the importance of tourism which helped move the City forward. He explained Wendy Hielsberg had been the executive director of the Oshkosh Convention and Visitors Bureau and had recently accepted a position outside of the organization. He thanked Council for their recognition and Mayor Cummings for the proclamation. Justin DeJager, Marketing Manager for the Oshkosh Convention and Visitors Bureau thanked the Council, City staff and the community for their support. He explained Oshkosh had been in the top ten tourism municipalities in the state and hoped to be number 9 before year end. He stated seeing the City progress and develop was a major contributor to an increase in tourism. He explained they were looking forward to promoting Oshkosh as Wisconsin's Event City for years to come. Mayor Cummings proclaimed May 20, 2017 as 'Kids to Parks Day' for the 71h consecutive year. Chad Dallman, Assistant Director of Parks, accepted the proclamation. He explained there would be events at the Menominee Park Amusement Area and Zoo in addition to the normal park activities. He encouraged the public to attend and thanked the City and community for their support. Mayor Cummings stated he and Shirley Mattox served on the Landmarks Commission and had been working with the Convention and Visitors Bureau to develop a historic tourism program for the City to celebrate the history of Oshkosh and drive economic development. LICENSE STATUS UPDATES Mr. Rohloff explained there were representatives from two inactive license holders present while two other representatives were unable to attend. He stated he had requested the two inactive license holders (Packers Pub and Robbins) that were unable to attend this meeting to attend the May 23, 2017 Council meeting. He explained the 2 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Morgan District and Tower Associates had individuals present at the request of the City Clerk on behalf of Council. Mayor Cummings called forward a representative from the Morgan District, 228 W. 61h Avenue. Peter Lang, 2300 White Swan Drive, stated he was present as a representative for the Morgan District. He explained they were currently working to secure a tenant mix to proceed with the project and believed maintaining a bar/restaurant as part of the mixed use development. He stated it was a 27 acre site and requested additional time to work on the development. He explained it was his understanding that Council had retained a license for a different developer on the other side of the river, which acknowledged how important the area was to economic development. He requested Council to extend the same courtesy to the Morgan District as they continued with their development. Council Member Pech stated the license had been dormant for nearly 3 years, since November of 2014. Mr. Lang stated the demolition of the development that had been located on the site had been a large project. He explained there was complexity with the project as it was not just a single tenant building; due to the fact that it was a multiple tenant project it has taken more time than a traditional development. He stated the size of the project had created what he hoped Council understood were appropriate delays. Council Member Pech asked for an explanation of the timeline of the project. Mr. Lang explained he would have liked to have started construction this year, and hoped to begin construction next year. Council Member Pech questioned if there was a deadline. Mr. Lang stated he was not able to guarantee a deadline until he had tenants signed; he explained they were diligently working on progress. Council Member Pech questioned if there had been any contact from individuals looking for liquor licenses to develop new establishments. 3 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Ms. Ubrig indicated not at this time. Council Member Palmeri stated it was a concern to give an extension for an indefinite period of time. She explained there were still several trucks parked at the site and questioned if there was a deadline for them to be removed or if it was dependent on acquiring tenants. Mr. Lang stated prior to terminating the lease they would need to have a tenant and development plans. He explained as they moved forward and signed leases, they would begin development of blue prints, which was a several hundred thousand dollar endeavor. He stated that would allow them to secure and fix costs and move forward with City approvals. He explained the lease did have a termination clause that would allow them to proceed with development at any time, although the termination would be driven by the progression with tenants. Council Member Pech questioned what the general timeline was. He explained although he understood the development process, Council needed a general understanding of it. Mr. Lang stated he would like to begin development of infrastructure by year end although he was not able to guarantee that. He explained unless they had tenants he would not be able to promise that construction would begin at that time. He stated they were in negotiations with the grocery tenant which would drive the project forward. Council Member Pech stated the grocery store had a representative present at a Council meeting approximately a year ago and questioned the current status. Mr. Lang stated they were in negotiations related to the lease. He explained there were lease comments being exchanged and the grocery store had concerns related to the view corridor. He apologized for not being able to provide a deadline and explained he did not wish to make false promises. Council Member Allison-Aasby questioned if there had been any lease agreements signed for the development. Mr. Lang stated there were letters of intent and drafts of lease agreements being exchanged although they did not have any executed lease agreements. 4 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Allison-Aasby stated there had been rumors shared with Council indicating that there may not be a development. Mr. Lang stated they remained dedicated and forward moving on the project. He explained they worked on it on a weekly basis, invested funds and were committed to seeing the site developed. Council Member Krause questioned the number of trucks from Oshkosh Corporation that occupied the space. Mr. Lang stated he was not certain; the site was leased by acre not by number of spots for vehicles. Council Member Krause stated he understood that Oshkosh Corporation paid quite well for the space. He questioned if there was any plans to keep the space as a stocking lot for Oshkosh Corporation. Mr. Lang stated there was not; he explained they would prefer to have apartments and mixed use retail space on the site. Council Member Herman stated the City was investing millions of dollars into the river walk and he believed the development would be an important piece. He explained there was value to a liquor license and the City had one on reserve for the Marion Road development. He stated Council would need to trust that the developers were going to move forward with a project, and that the bridge would impact the situation. He explained he believed Council needed to continue to support the development through the existing TIF and other means. He stated the liquor license was an important tool for the developers and he believed Council should allow them to hold it. Council Member Pech stated the Council understood economic development. He explained there were questions related to timelines and details that needed to be answered to allow Council to make the best decision related to the inactive license. He stated it was not a lack of trust; additional information was required to make an informed decision. Mayor Cummings questioned what the next step would be. 5 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Ms. Ubrig indicated she would need direction from Council on whether to move forward with the renewal process or begin the non-renewal process. Council Member Pech questioned if Council chose to renew, if the renewal would last a year. Ms. Ubrig stated yes. Council Member Allison-Aasby questioned if a six month renewal was not recommended. Ms. Lorenson stated Council was not able to issue a six month renewal; Council would need to hold a revocation hearing if it was shorter than a year. Council Member Pech questioned if Council were to approve the license for a year, and if during that year there was no activity with the development, would they be able to revoke the license. Ms. Lorenson stated that Council would be able to request a revocation hearing. Council Member Palmeri questioned if they would be able to set the license for review in six months. Ms. Ubrig stated Council would be able to direct her to bring the license back to Council for discussion and request the developer to attend and provide a status report. Council Member Pech stated he would be in favor of renewing the license for a year provided the developer would deliver regular updates to Council, beginning six months from now. Mr. Lang questioned if he was referencing a formal update or emailing Council Members with information. Council Member Pech stated he simply meant keeping Council in the loop. He directed Ms. Ubrig to bring the status back to Council. Mr. Lang stated he would be happy to keep communication open. 6 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Ms. Ubrig stated Council would receive the license renewal for the Morgan District at the May 23, 2017 Council meeting. Mayor Cummings called forward a representative for Tower Associates, 2010 W. Stn Avenue. Charles Hertel stated he was an attorney present to represent Tower Associates, whose members were Tom Rusch and Dick Gabert. He explained the building, which had housed Mr. Cinders for more than 25 years, and lastly Hot Rod Willy's, had been taken back by his clients when the operator passed away in January of 2016. He stated since that time, they had actively been seeking tenants for the property through First Weber Realty Group. He explained First Weber had aggressively marked the property and there had been significant interest; in excess of 25 potential tenants have viewed the property. He stated negotiations had reached the point where leases were drafted, although they ultimately fell through. He explained although there was not presently a tenant lined up, Steve Hoopman, the realtor for the property, was prepared to provide Council information regarding the level of interest amongst potential tenants. He stated it was a great location and it was anticipated that the property would be leased, likely within the next six months. He explained he would be willing to provide Council with updates similar to those requested of the Morgan District. He stated the property had been actively marketed and he believed the property owner had done everything reasonable to find a new tenant that would utilize the liquor license. Council Member Panske questioned why the leases had fallen through. Mr. Hertel indicated it had been related to the amount of work that would be required to to bring the property to working order. He explained he was not able to provide names of interested parties,however, there had been several potential good fits for the property. He stated it had come down to dollars and cents along with bad luck. Council Member Pech asked for an explanation of the packet that Steve Hoopman had provided Council. Steve Hoopman, First Weber Realty, explained the packet included the marketing activities related to the property, including statistics regarding how many times the site received a 'hit' on an internet inquiry. He stated the owners had an opportunity to have a tenant with a sports bar, although they declined due to the number of sports bars near 7 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 the location, and preferred to have the location host a family restaurant. He explained the price had come down and it was being re-marketed at the lower rate. He stated he would re-contact formerly interested parties to inform them of the lowered price. He explained the restaurant industry was facing difficulties. Council Member Pech stated he understood that renovations would need to take place after a lease was signed. He questioned how long it would take until the establishment would be able to open. Mr. Hoopman stated it likely would take approximately 60 days. He stated the previous tenant had walked away from the property. He explained although there was some former equipment in place, there was still substantial clean up and renovations required. Council Member Allison-Aasby stated she agreed with what Mr. Hoopman had to say in regards to the restaurant industry. She explained that obtaining financing for a restaurant was difficult due to the high risk nature of the business. She stated she understood that it was well known that Mr. Engelman had troubles and his death was unexpected. She explained she understood the value in the location of the property and would support renewing their liquor license. Council Member Herman questioned if Mr. Hoopman was trying to sell the property in addition to leasing it. Mr. Hoopman stated no;he explained the property was part of the complex and was not for sale. Council Member Herman stated he agreed with Council Member Allison-Aasby and would support moving it forward to the next Council meeting for approval. He explained he believed it was a prime location and would have a tenant in the near future. Council Member Palmeri stated on the last page of the packet provided by Mr. Hoopman, there was an advertisement from First Weber dated March of 2016. Mr. Hoopman stated that was from when the property was first listed. Council Member Palmeri questioned besides the online marketing, were there any other printed pieces. 8 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Hoopman stated it was not his practice to routinely advertise in The Northwestern; he explained he primarily advertised on the commercial websites. Council Member Palmeri questioned if GO-EDC had access to the commercial sites. Mr. Hoopman explained they had access to all of First Weber's commercial listings although he did not believe they actively marketed them. He stated he believed if GO- EDC had a restauranteur contact them, they would likely connect them with the applicable information. Council Member Krause stated it appeared the asking price had dropped on more than one occasion. He questioned what the current price was. Mr. Hoopman stated he believed it was between$6,000 and$6,500, which included taxes, snow plowing, grass cutting and common area maintenance. Council Member Pech requested for Council to be kept updated on the status of the location. PUBLIC HEARING Resolution 17-226 Approve Final Resolution for Special Assessments — Eveline Street (Ceape Avenue to Bay Shore Drive) MOTION: ADOPT (Allison-Aasby; second, Palmeri) CARRIED: Ayes (7) Krause, Pech, Palmeri, Allison-Aasby, Herman, Panske, Mayor Cummings CITIZEN STATEMENTS Alex Kaufort, 512 Algoma Boulevard, explained he was an environmental studies major at UW Oshkosh, and some Council Members had attended their presentation on how the City would be able to save money with green initiatives in the future. He stated he and his classmates would provide Council with a report that included answers to the questions Council had asked. 9 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 CONSENT AGENDA Report of Sills by the Finance Director Approval of Cash Reports from October, November & December 2016 Receipt & Filing of Common Council Minutes from March 28, 2017 Receipt & Filing of Library Board Minutes from March 30, 2017 Receipt of Claims filed with the City's Insurance Company: A) Peggy O'Brien for alleged injuries from fall on ice at the Oshkosh Celebration of Lights at Menominee Park Resolution 17-227 Approve Conditional Use Permit for Light Industrial Use at 541 W. 101h Avenue (Plan Commission approved) Resolution 17-228 Approve Accepting Easements at Atlas Avenue & Global Resolution 17-229 Award Bid to Process Equipment Repair Services, Inc. for Grit Classifier Rehabilitation for Wastewater Treatment Plant ($82,500.00) Resolution 17-230 Approve Purchases with Enterprise Lighting LTD&Philips Lighting North America for Lighting Poles & Fixtures for Contract No. 17-07 - South Park Basin Retrofit Project ($82,634.05) Resolution 17-231 Amend Resolution 16-549 Granting Privilege in Street to Wisconsin Public Service for Installation of Soil Vapor Monitoring Wells at 303 Ceape Avenue & at Court Street South of Ceape Avenue Resolution 17-232 Amend Initial Resolution for Special Assessments — Contract No. 17-22 Sawdust District Improvements — Phase 1 to Include Grading & Graveling of the Street to Prepare for Pavement Council Member Palmeri questioned the resolution was specific to the Phase 1 grading and graveling aspect of the special assessments. 10 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Rabe indicated the proposed amendment was adding grading and graveling to the special assessment resolution that had been approved at a previous Council meeting. He explained when City staff had prepared the initial resolution, grading and graveling had been missed. Council Member Palmeri thanked Mr. Rabe for the clarification. Resolution 17-233 Approve Initial Resolution for Special Assessments— Contract No. 17-12 Miscellaneous Utility Improvements Resolution 17-234 Approve Participation in International City Management Association Retirement Corporation (ICMA-RC) 401 Governmental Profit Sharing Plan Council Member Pech stated the City was a governmental entity and not in the profit making business. He asked for an explanation of 'profit sharing plan' for the benefit of the public. Mr. Rohloff stated it was a retention piece of his contract that Council had approved in January of this year. He explained when City staff was reviewing different options they identified the International City Management Association Retirement Corporation (ICMA-RC) 401 Governmental Profit Sharing Plan as the solution that best fit Council's direction to create an incentive program. He stated it would be placed in a trust that would not be payable until 2020 as long as he remained in his current position. Council Member Pech explained it was the retention plan they had put together to keep Mr. Rohloff as City Manager for an additional 5 years. Resolution 17-235 Approve Inter-Governmental Agreement with Waukesha County to Provide Collection Services for Delinquent Accounts Receivable Council Member Palmeri asked for an explanation of the proposed agreement with Waukesha County. 11 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Rohloff explained the agreement was related to the City's non-ambulatory collection services; for that service the City had a separate contract with Life Quest Services out of Wautoma. Council Member Palmeri questioned what Waukesha County would be collecting. Ms. Lorenson indicated personal property taxes, unpaid bills or invoices, damage to City property such as hitting a street light and other similar items. Council Member Panske stated the agreement was described as a one year term with an automatic renewal. She questioned if it was possible to bring the agreement back to Council within the 30 day window necessary to terminate the agreement should Council so choose. She explained she would prefer to have an update from the finance department regarding the success of the agreement prior to an automatic renewal. Mr. Rohloff explained that was possible. He explained Council should provide that recommendation as direction to City staff as typically if a contract was satisfactory it was normally renewed without further action. Council Member Panske stated she believed it would be beneficial for Council to understand if the agreement was meeting the City's needs. Mr. Rohloff stated he would provide that information to Council. Resolution 17-236 Disallow Claim by Peggy O'Brien Resolution 17-237 Approve Appointments to Long Range Finance Committee&Rental Housing Advisory Board Council Member Herman thanked the individuals who had been newly appointed to the boards and commissions. He explained the role of boards and commissions was important to Council and the City and helped Council make decisions in the best interest of the citizens of Oshkosh. Council Member Pech thanked the new members for joining, especially Matt Mugerauer for remaining involved. 12 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Palmeri explained there were additional openings available and encouraged members of the public to apply. Council Member Pech stated a spot had been filled on the Long Range Finance Committee and an additional spot had opened. Resolution 17-238 Approve Operator & Taxicab Licenses MOTION: ADOPT CONSENT AGENDA (Pech; second, Herman) CARRIED: Ayes (7) Krause, Pech, Palmeri, Allison-Aasby, Herman, Panske, Mayor Cummings ACTION TAKEN ON ORDINANCES AND RESOLUTIONS Ordinance 17-239 Approve Amendment to Municipal Building Code Chapter 7-34(C) to include Department of Safety&Professional Services Chapter 366 MOTION: ADOPT (Herman; second, Pech) CARRIED: Ayes (7) Krause, Pech, Palmeri, Allison-Aasby, Herman, Panske, Mayor Cummings Council Member Herman stated that he understood during a recent audit by the state, an item had been brought to City staff's attention that needed to be updated. He asked for an explanation of the update. Alan Davis, Director of Community Development, explained the State of Wisconsin audited the City's inspection program and they had identified that the municipal code had not been updated to reflect state code items. He explained the state code split buildings into existing and new buildings while the City's referenced both together. He stated the state recommended the City separate that and adopt both state codes separately therefore City staff was proposing to adopt the existing building code to satisfy state requirements. Council Member Herman questioned if there would be any changes or increase in cost to developers. 13 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Davis stated no; it was modifying existing City code to match state code, which had always been used to determine building code requirements. He explained there was no new code being adopted. Ordinance 17-240 Designate Bicycle Lanes & Modify Parking Regulations to Restrict Parking on West Side of Westhaven Drive from 91h Avenue to Patriot Lane FIRST READING; LAID OVER UNDER THE RULES Jim Collins, Director of Transportation, presented a map of the City's current bike lanes and where the proposed bike lanes were located. He presented a second map showing the current parking situation in the area. He explained he did not believe the proposed parking restrictions would have a significant impact. He presented a final map that showed what parking would look like with the proposed changes. Ordinance 17-241 Approve Zone Change from RH-35 Rural Holding District to HI Heavy Industrial District for Property Located North of Atlas Avenue & East of Global Parkway; Southwest Industrial Park (Plan Commission approved) FIRST READING; LAID OVER UNDER THE RULES Council Member Herman questioned if the ordinance was related to the transload stations. Darryn Burich, Planning Services Manager, stated it was related to the transload site. He presented a map showing where the transload site would enter. Council Member Herman questioned if the project was ready to go or if the delay was due to the lack of approval for the zone change. Alan Davis, Director of Community Development, stated they were waiting on additional steps including a wetland permit from the Department of Natural Resources and items related to the Department of Transportation grant. He explained he hoped to award a bid in early summer and contracts signed in May. 14 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Herman clarified that the zone change was an additional step in the process and not the final item necessary for work to commence. Mr. Davis stated that was correct; it needed to be complete prior to ground breaking of the transload facility. Council Member Herman questioned if the change was specific to the site and not the general area. Mr. Davis indicated the surrounding properties were already zoned industrial. Council Member Herman questioned if they were zoned heavy industrial. Mr. Davis stated that was correct. He explained the site would now match the rest of the industrial park. Resolution 17-242 Provide Recommendation to Wisconsin Department of Transportation (WDOT) for Jackson—Oregon Street Bridge MOTION: ADOPT (Pech; second, Herman) MOTION: AMEND TO ADD 'BE IT FURTHER RESOLVED THAT THE SELECTION IN NO WAY INDICATES THE CITY'S ENDORSEMENT OR ACCEPTANCE OF THE CURRENT INTERPRETATION OF WISCONSIN STATE STATUTES, SECTION 84.10 THAT ASSIGNS FINANCIAL RESPONSIBILITY TO THE CITY OF OSHOKSH (Pech; second, Palmeri) CARRIED: Ayes (7) Krause, Pech, Palmeri, Allison-Aasby, Herman, Panske, Mayor Cummings MOTION: AMEND TO SELECT ALTERNATE F/ON-ALIGNMENT LIFT BRIDGE RECONSTRUCTION (Herman; second, Pech) CARRIED: Ayes (4) Krause, Pech, Herman, Mayor Cummings Noes (3) Palmeri, Allison-Aasby, Panske VOTE ON AMENDED RESOLUTION CARRIED: Ayes (4) Krause, Pech, Herman, Mayor Cummings Noes (3) Palmeri, Allison-Aasby, Panske 15 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Peter Lang, 2300 White Swan Drive, stated he was a representative from the Morgan District and expressed favor in support of an on access draw bridge replacement. He explained he had previously expressed opposition to the high line flyover alternative as he believed the scale and structure of that option would not be cohesive with the downtown redevelopment efforts and investments that had been made into the river walk. He stated he was aware that the Wisconsin Department of Transportation had provided Council with illustrations, although he did not believe the scale was accurately portrayed. He explained they remained hopeful and appreciated Council's continued support through the bridge selection process as he believed the scale of the bridge would have a significant impact on the development. He stated if Council were to ask Two Brothers, they would explain that the overpass had an impact on their business. He explained he hoped Council would consider the character and community in addition to cost while making their decision. Kurt Koeppler, 1726 River Mill Road, stated he was one of the managing partners and owners of City Center. He explained he and his partners had several concerns including the ramp that exited onto Jackson Street being their primary exit in the event of an emergency. He stated there was 15,000 square feet of future development in the area and the lack of a proper exit would impact whether the property would be able to be developed. He explained the flyover bridge would severely impact exposure to their tenants, including Becket's restaurant, which was a staple of the downtown community. He stated it would be difficult for customers to get in and out as well as a loss of parking. He explained there had been millions invested into City Center and he believed it was a showplace for Oshkosh and he did not want to have that impacted by a high bridge that would block off exposure. Mayor Cummings stated the bridge would have significant financial implications for the City. He explained one of Council's main concerns was if a new bridge was constructed, the citizens of the City of Oshkosh would be responsible for the maintenance costs for the life of the bridge. He explained a bridge oftentimes became a focal point for a community. He stated they also needed to consider the lifespan of the other bridges within the community; although Council would only be able to provide a recommendation to the Wisconsin Department of Transportation (WDOT), it may become the template for other bridge replacements in the future. He explained Council had considered many opinions from the community and whatever decision they came to, the WDOT could choose a different option. 16 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Rohloff introduced Sill Bertrand from the WDOT and explained they had multiple discussions related to funding concerns although that was not his area of expertise, his focus would be on the structure and design. Council Member Pech questioned how the City's input would influence the WDOT's decision. Sill Bertrand, Wisconsin Department of Transportation (WDOT), explained the City's input would have significant impact on their decision. He stated the ultimate responsibility for the final decision did reside with the WDOT. He explained if the City voted for a replacement option, they recognized that state statutes dictated the ownership and maintenance would transfer to the City upon completion. Council Member Pech questioned if the draw bridge options were designed to be remotely operated. Mr. Bertrand stated there were no plans for remote operations for the bridges in Oshkosh. Council Member Pech questioned why not. Mr. Bertrand explained the WDOT was working on enhancing the remote systems in areas where it already existed and wanted to have the issues resolved prior to expanding to new areas with agency approval. Council Member Pech questioned where the agency approval would come from. Mr. Bertrand indicated the WDOT and the Coast Guard. Council Member Pech questioned if there were functioning remote operated bridges in the area. Mr. Bertrand indicated in Menasha and Sturgeon Say. Council Member Pech questioned what would prevent the technology from being used in Oshkosh. 17 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Bertrand stated he did not have a specific answer to that question; he had been advised that there were no plans to implement that technology in Oshkosh. He explained the WDOT wanted to have the technology working in its existing locations prior to expanding. Council Member Pech stated it was already working in other locations. Mr. Bertrand indicated there were concerns that still needed to be addressed. Council Member Pech questioned if the technology was working in Menasha. Mr. Bertrand stated it was. Council Member Pech questioned why Oshkosh would not be able to use the same technology. Mr. Bertrand stated he was unable to answer that specific question. Council Member Pech stated the lack of information did not help Council with its decision. He explained it was frustrating that local control resulted in an increase to the taxpayers. He stated his understanding was that although the state was asking for input, they would not necessarily select what the City requested. Mr. Bertrand stated the final decision resided with the WDOT. He explained they had gone through a similar situation with the City of Menasha looking at options for the Racine Street Bridge and the WDOT had agreed with the City's recommendation. Council Member Pech questioned if it was the bridge that had remote operations. Mr. Bertrand stated yes. He explained they had looked at either major rehabilitation or a replacement. Council Member Pech questioned if the bridge had been built yet. Mr. Bertrand stated the Racine Street Bridge in Menasha was currently scheduled for 2020. He explained the existing bridge did operate remotely. 18 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Pech stated the bridge in Menasha that would be constructed in 2020 would have remote operations although the bridge in Oshkosh would not despite being scheduled for construction in 2022. Mr. Bertrand stated that was correct. Council Member Pech stated if the WDOT would construct remote operations in 2020, why wouldn't they in 2022. Mr. Bertrand stated there were challenges in place and he was not aware of specifics at this time. Council Member Pech stated the City was facing an important decision and the WDOT was not providing the necessary information to help with that decision. He explained he would like to have his questions answered. Mr. Rohloff stated in the absence of that information, Mr. Rabe had prepared an estimate of bridge operating costs for five years for bridges in Winnebago County, four of which were in Oshkosh. Mr. Rabe explained the information on the operating costs was provided to City staff by the WDOT for four bridges in Oshkosh and the bridge in Winneconne for years 2011- 2015. He stated the 2015 Main Street maintenance did seem significantly higher than the other bridges. He explained there had been significant long term activities that had taken place that skewed the numbers. He stated the average for 2014/2015, without the one outlying number, it totaled approximately$142,000 a year. Council Member Pech questioned if the bridges Mr. Rabe was referring to were manned bridges. Mr. Rabe stated they were. Council Member Pech stated his questions had been related to remote operated bridges and City staff did not have information on that cost. 19 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Herman stated City staff did not have information on the cost of a remote operated bridge due to the fact that the WDOT was not planning to build one in Oshkosh. Council Member Pech stated there was a plan to build a bridge with remote operations in Winnebago County in 2020. Mr. Bertrand stated he understood there were challenges related to the technology and new bridges. He explained the WDOT was working through challenges in Green Say and did not plan to bring remote operations to Oshkosh. Council Member Pech stated he did not feel comfortable making a decision as the WDOT would likely come to their own conclusions regardless of the input from the City. Council Member Palmeri questioned why City staff would remove the longer term maintenance activities, such as the replacement of arms or a horn, from the average cost of repair if it would eventually be an item the City would need to pay for. Mr. Rabe stated the City would need to address such repairs/maintenance in the future. He explained if the more significant maintenance items were left in the equation for the average, the cost was approximately$147,000 per year (an increase of about $5,000). Mr. Rohloff stated items such as a horn would be a natural expense over the life of the bridge. Council Member Palmeri stated she did not believe the larger maintenance items should be removed from the equation to calculate the average cost of maintenance. Mr. Rohloff explained he believed the maintenance estimate was on the low side and would continue to increase over time. Mayor Cummings stated he was concerned that the City did not have control over what the bridge would look like. He explained Council was being asked to make a multi- million dollar recommendation for a bridge that would exist for 75 years and they did not know what the end result would be. Mr. Bertrand stated the renderings that were provided were good approximations to be able to compare a high level fix compared to a lift bridge. 20 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Pech stated they were limited in their view. Mr. Bertrand stated they were from a specific vantage point and were not panoramic. Mayor Cummings stated they had requested renderings from the vantage point of a boater, a driver or an individual walking. He explained technology would allow for the river front to be modified to provide an image of what the impact the bridge may have on future development. Council Member Pech stated Council was being asked to make a selection without the information necessary to support the decision. He explained there was no vantage point from the Morgan District development area or City Center. Mr. Bertrand stated the two most recent renderings were from both the southwest area/Morgan District property and the northeast quadrant/City Center area. He explained the WDOT had asked City staff to provide photographs of the area so that renderings could be created. He stated the WDOT had provided ground level images as requested. He explained to create additional flyover views was expensive and would involve federal/state dollars; the WDOT did not believe it would be a wise use of funds. He stated he believed the WDOT was providing a sufficient depiction of what the bridge would look like once complete. He explained there were other factors, such as the amount of clearance, which required approval by the Coast Guard before they could be finalized. Council Member Allison-Aasby questioned if there was any structure in the state that would be comparable in size to the proposed bridge alternatives. Mr. Bertrand stated he was not certain. Council Member Pech asked for clarification regarding the amount of clearance. Mr. Bertrand stated the WDOT was comfortable that the Coast Guard would approve the 23 feet of clearance based on the levels of clearance previously used for the interstate 41 project. Council Member Pech questioned if that meant the design was not finalized yet. 21 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Bertrand stated the designs were at a conceptual stage which was why the renderings were an attempt to provide a general idea of what the bridge may look like. Council Member Pech questioned if the WDOT believed that what they have provided the City will be close to the end result. He stated he understood it may change dependent on the Coast Guard's recommendation. Mr. Bertrand stated in preliminary design there was always the possibility that there may be changes although the end result should be close to the renderings. Council Member Pech questioned if Council were to delay the decision two weeks to allow for time to gather additional information about remote operations, would it delay the project. Mr. Bertrand stated the WDOT was already two months or more behind the original schedule and any additional time would be significant from a delay standpoint. Council Member Pech questioned why the project was behind schedule. Mr. Bertrand stated the WDOT had requested a decision from Council in February. Council Member Pech stated at that time Council had requested additional information. Mr. Bertrand explained additional renderings had been requested and the WDOT had since provided the ground level views. Council Member Herman questioned if the structure of a lift bridge would remain the same regardless of if it were opened by an operator or with remote operations. Mr. Bertrand stated that was correct. Council Member Herman stated that selecting a bridge was not depending on whether it was opened by an operator or by a computer. Mr. Bertrand stated that was correct; the only difference would be related to future operational costs. 22 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Herman explained that it was difficult for Council and the two most impacted property owners, the Morgan District and City Center, to envision how tall the bridge would be. He questioned if he were to travel the river walk, would he be looking up at solid concrete similar to the area the near Two Brothers Restaurant. Mr. Bertrand explained the retaining wall near the river walk area would be roughly 20 feet in height and would taper down, under the high level alternative, within 500 feet. Council Member Herman questioned if the approach to the bridge would begin as far back as Hardees. Mr. Rohloff and Mr. Rabe stated no. Mr. Rohloff explained the landing spot of the bridge on the north side, under the fixed bridge concept, would be located near Marion Road, and would land on the south side at the same ground level before it reached 61h Avenue. Council Member Herman questioned if the highest concrete wall would be basically stretch 100 feet on each side of the bridge. Mr. Rohloff asked for clarification. Council Member Herman stated most of the concern surrounding the fixed bridge was related to how the aesthetic would impact nearby businesses. He questioned if he were to be walking on the river walk, would he be surrounded by walls of concrete. Mr. Rohloff explained a 20 foot wall was equivalent to nearly a story and a half, resulting in approximately two and a half flights of stairs from ground level at the river walk to the bridge surface. He stated in relation to the Morgan District site, there would be approximately 120 feet from the bridge to the building. Mayor Cummings questioned the ADA accessibility. Mr. Bertrand stated the renderings were conceptual and may not currently reflect ADA requirements, although the construction would be ADA compliant. 23 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mayor Cummings questioned if the WDOT had built bridges similar to the proposals anywhere in the state and which bridge in Sturgeon Say was remotely operated. Mr. Bertrand stated he believed it was the Oregon/Maple Street Bridge over Lake Michigan. Council Member Pech stated he was struggling to understand why the WDOT would install remote operated bridges in some locations and not others. Mr. Bertrand stated it was his understanding that they were not giving approval for future remote operations. Council Member Allison-Aasby questioned if that meant Menasha had been grandfathered into the program. Mr. Bertrand stated that was correct. Council Member Pech stated the earlier comment in regards to the potential emergency evacuation of City Center was correct; there would be limited means to exit with the new bridge designs, and traffic would be a concern in that area. He questioned if the WDOT had considered the potential evacuation of a large building. Mr. Bertrand stated the WDOT would need to provide a safe design for the area. Council Member Pech repeated his question regarding the potential evacuation of City Center. Mr. Bertrand stated it would be considered, however, a safe design needed to be implemented, and the median opening would not be safe therefore it would need to be closed and a 'right in, right out' exit installed at that location. Council Member Pech stated he would repeat his question a final time and ask if it had been considered. Mr. Bertrand stated it had been considered although the general safety of the area took priority. 24 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Palmeri stated one of the options was to refurbish the existing bridge. She explained she did not believe they had been given any options that addressed the community's needs. She stated she would like to see an option that was bicycle/pedestrian friendly and allowed for continuity of the river walk. She questioned if the City went the route of rehabilitation, would they be willing to assist the City with designing improved pedestrian/bike crossing access points on either side, assuming that the Morgan District and City Center were amenable to cooperating. Mr. Bertrand stated that Oregon/Jackson were local streets, therefore the WDOT's improvement project would not extend outside of the bridge. He explained with a replacement project, the footprint would extend and would include pedestrian crossings or river walk coordination. He stated the WDOT had worked closely with the community and City officials to provide solutions to meet the local needs. He explained the WDOT would be willing to address such needs, as long as they remained under the limitations of the project, and the rehabilitation option would only address the electrical/mechanical components. Council Member Palmeri stated the City frequently received 'all or nothing' types of options from the state and she stated she did not care for that. She explained she believed it lacked creativity and felt like a 'one size fits all' solution. She stated she would lean towards asking for more time to gather additional details, however, if the determination was already predetermined by the state, and the City's input was a formality, then she did not think it was necessary to delay the decision. Mr. Bertrand stated the WDOT had not made a predetermination in regards to the preferred alternative. He explained they were asking for the City's preference, which would be given strong consideration. He stated the project was funded by federal/state tax dollars and the WDOT was the steward of those tax dollars, therefore needed to remain ultimately responsible for the decision. Council Member Pech stated he understood that, however, the transportation budget at the state level was a'basket case', and if the state had to select between a 35 million dollar bridge and a 14 million dollar bridge, he felt confident he knew which route they would take regardless of City input. 25 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Allison-Aasby questioned if the state had a preference established at this point. She stated if there was, the WDOT would be able to explain their rationale behind the choice. Mr. Bertrand stated they did not have a preference at this point and needed to follow the National Environmental Policy Act process to evaluate all of the alternatives and give them equal weight. He explained they were following through that process, and were looking for input from the City given the location of the bridge. Council Member Allison-Aasby stated she hoped Mr. Bertrand could understand why the decision was difficult to make; the bridge was right in the heart of Oshkosh. She explained the options were not aesthetically pleasing and there was not an option that stood out from the others as a better choice. She stated if Council were to choose to keep the existing bridge, it was a temporary fix, similar to what had been done with the City's infrastructure in years past. She explained that it was also undetermined if Becket's and City Center would remain in the same location 50 years into the future, and therefore could not necessarily consider the impact to those businesses as the deciding factor. She stated she understood that Mr. Bertrand was sensing Council's frustrations and explained it was nothing personal. She explained the implications of the decision that Council made would be long lasting and was not an item they could 'fix' if they selected the wrong option. She stated the river walk was a beautiful part of the City and the bridge was a challenge to that development. She explained it was an important decision that had no good answer. Council Member Pech stated at the end of the day the decision was made in Madison. He stated he did not believe the City's input regarding the decision was significant or highly valued to the state. Mr. Bertrand stated he had explained that the City's input would be given significant weight in the WDOT's decision. Council Member Pech requested that Mr. Bertrand define significant. Mr. Bertrand stated he was unable to provide a percentage as to the weight of the City's input. Council Member Pech questioned what level the decision was made at. 26 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Bertrand stated there would be a regional meeting at the end of the month where they would factor the City preference in and make a decision. Mayor Cummings questioned what implications future budget cuts could have on the project. Mr. Bertrand stated he was unable to comment on future state budgets, although there were funds presently scheduled in a 6 year program for a replacement bridge. Mayor Cummings stated the City had projects scheduled within a 5 year CIP that had been delayed or cancelled due to budget constraints. Mr. Rohloff stated in his experience, due to the complexity of a bridge, it was necessary to commit to the project early. He questioned when the City would see the first drafts of a design. Mr. Bertrand indicated there would be different stages of design for the approach and the bridge itself. He stated the conceptualized design for the bridge may not be complete until 2021. Mr. Rohloff explained a bridge was a complex project and would take considerable more time than City projects such as installation of streets and utilities. Council Member Allison-Aasby questioned how many communities Mr. Bertrand had worked with on similar projects within the last two years. Mr. Bertrand stated he had worked with the City of Menasha and the Village of Winneconne. Council Member Allison-Aasby stated he had worked with two other communities in addition to Oshkosh. Mr. Bertrand stated that was correct. Council Member Allison-Aasby questioned if the WDOT had followed the recommendation from the municipalities of Menasha and Winneconne. 27 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Bertrand stated they had agreed with Menasha's recommendation and he was unable to comment on Winneconne as he had not been involved in the initial stages of that project. Mayor Cummings questioned if it would be prudent to delay the decision until the May 23, 2017 Council meeting. Council Member Pech explained Council was making a decision that would affect the City for many years and they did not have all of the information. He stated Mr. Bertrand had indicated that plans would not be ready until 2021. Mr. Bertrand explained decisions needed to be made now to begin the process. He explained the project had multiple steps that required time to complete. He stated if the decision was delayed now, it would result in further delays in the future. Council Member Herman stated he agreed that more information would be helpful, however, he believed the WDOT was at a point where they were unable to wait any longer for a decision from the City. He explained he believed if the City continued to push the decision into the future, the state would no longer consider the City's input. He stated he would like to continue to grow the river walk and increase pedestrian/bicycle accessibility in the area; he believed Council needed to make a selection. He explained he had been in support of the rehabilitation option as he was concerned about the future maintenance cost to the taxpayers. He stated after further consideration, he did not believe rehabilitation was the correct option as it would not address the development and pedestrian/bicycle concerns. He explained he did not believe the taxpayers of Oshkosh should be responsible for the maintenance of the bridge, and although it was in the current state statutes, perhaps legislation would change in the future. Mayor Cummings requested that Mr. Rohloff explain his thoughts as he had been involved in other similar projects in different municipalities. Mr. Rohloff explained it was not easy to make a decision that required this level of commitment. He stated the state statutes regarding attributing maintenance costs to the City was frustrating. He explained in making the selection, Council would need to consider the best interest of the City for the next 75 years. He stated he agreed with Council Member Herman's statements about rehabilitation, although each of the new construction options had disadvantages. He encouraged Council to reach out to 28 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 legislators regarding the shift of maintenance costs. He stated he had attended a meeting with legislators and had shared that he was concerned that although the law had not changed, there had been a change in the interpretation of state statutes. He compared the height parameters of the fixed bridge versus the lift bridge. He explained that Mr. Rabe had estimated the cost of maintenance on a lift bridge to be approximately$142,000 annually and would carry a high replacement cost. He stated aesthetically there were pros and cons to both the fixed and lift bridges. He explained feedback from various City departments indicated that the fixed bridge was more open from a public safety standpoint. He stated City Center/Becket's had an access challenge with the current situation and he understood that limiting the access further would have significant impact. He explained he leaned towards the fixed bridge option as it would be less expensive to maintain and it did not push the decision into the future as rehabilitation would do. He stated he was not enthusiastic about making a recommendation for one of the options, however, if he had to make a choice he would recommend the fixed bridge. Council Member Palmeri questioned if Council were to select the fixed high level bridge, would there be a scenario in which the proposed Morgan District development could be modified to allow for bridge level parking and the retail space elevated. Peter Lang, 2300 White Swan Drive, stated they had already explored incorporating first level parking with retail on the exterior corridor. He explained vehicle traffic and access were significant considerations for a retail space. He stated it was possible, although he was not sure what the cost would be; a two tier parking deck had been ruled out of the plans as it was believed to be cost prohibitive. Council Member Krause stated he did not believe the rehabilitation was the best option as Oshkosh had previously delayed action on infrastructure and the cost was similar to that of a new bridge. He explained he believed Council had a sense that the state would select to construct a new bridge. Mayor Cummings questioned if Mr. Bertrand envisioned a cohesive aesthetic to the future bridges of Oshkosh. Mr. Bertrand stated that each location was unique. He explained the impact of a high level fixed bridge was not as significant at the Oshkosh location compared Menasha. He explained there were long range rehabilitation/maintenance projects planned in Oshkosh prior to any new construction outside of the Jackson/Oregon Street Bridge. He stated the 29 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 WDOT was still in the conceptual design phase and there were several areas that would need to be reviewed and adjusted. He explained there would be design alternatives that the City would need to discuss with the WDOT in the future regardless of what bridge Council recommended. He stated the alternatives that the WDOT had put together were based on communication with City officials and stakeholder meetings, although he could appreciate that it was a difficult decision that may not have a clear cut alternative. Council Member Panske stated she appreciated Mr. Bertrand's openness to questions and based on her goals related to bicycle/pedestrian traffic as well as sustainability concerns she was in favor of the high level fixed bridge. She explained she believed the high level fixed option was different and she liked being on the forefront of technology. She stated it would prevent vehicles idling while waiting for a bridge and provided a clear path for residents and emergency personnel. She thanked Mr. Bertrand for his time. Mayor Cummings questioned if there was any other information Council would like the WDOT to provide. Council Member Pech stated there was considerable information he would prefer to have; he did not believe every option had been explored. He explained he agreed that a decision had to be made between three poor alternatives. He stated he understood that Mr. Bertrand had indicated that the WDOT would take the input from the City into consideration, although ultimately they would make the final decision. Mr. Bertrand stated he understood the City's predicament and had worked hard to establish trust. He explained he had worked with City staff on other projects and had maintained transparency and honesty. Council Member Pech stated his decision was between the lift bridge and the fixed bridge;his concern was in regards to the long term costs and operation. He explained he did believe that the state statutes had been interpreted incorrectly and the state did not fulfill its obligations related to municipal services therefore he did not foresee them changing the formula to benefit the City. Mr. Rohloff stated in respect to the state statutes, Council would be able to add language to the resolution to indicate that Council's selection of the bridge option did not reflect endorsement or acceptance of the current interpretation of Wisconsin Statutes section 84.10 that assigns financial responsibility of the new bridge to the City of Oshkosh. 30 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mayor Cummings stated Council was scrutinized for criticizing legislators in Madison, however, the state continued to force programs onto municipalities while reducing funding at the same time. He explained for those reasons the City had concerns making a commitment related to the state. Mr. Rohloff explained the resolution contained all three options therefore Council would need to make an amendment to make a selection. Council Member Pech explained he believed alternative 'F' improved safety, allowed for bike/pedestrian options, and improved vehicle traffic flow/boater passage. He stated although he was not pleased to take on the cost he was concerned about economic development with the flyover bridge. Matt Mugerauer, 2321 Golden Avenue, questioned if the bridge could be converted to remote operations after the City took ownership. He explained it would help reduce long term costs by eliminating the cost of a bridge tender. Council Member Pech stated while it would be possible, the Coast Guard would need to approve the plans, and it would require taking on long term debt. He explained he appreciated Mr. Mugerauer's comment. Council Member Palmeri stated she had originally leaned towards rehabilitation; as time passed new technologies or building techniques may become prevalent and create a different set of circumstances. She explained while she understood it was appropriate to send a united message to the WDOT, she would not able to support option'F'. Council Member Allison-Aasby stated she wished in hindsight that Council had held an additional workshop. She explained she understood that delaying the decision may be a concern, however, Council had not had an opportunity to have open discussion regarding the bridge. She stated she felt as though Council was being forced to make a decision. Mayor Cummings stated he agreed and was frustrated that Council did not have a better idea of what they would be receiving. He explained the WDOT would provide a basic bridge; if the City wished to take any steps to make it architecturally pleasing and cohesive with the riverfront the taxpayers of Oshkosh would be fiscally responsible. He stated the City would also need to review the budget to address future maintenance costs. 31 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Resolution 17-243 Approve Development Agreement with Discovery Properties LLC; Approve Lease Agreement with Discovery Properties LLC;Approve Construction Staging License Agreement; Approve Sale of a Portion of the State Street Parking Lot; Grant Access Easement to Harry & Priscilla Kieckhafer—105 Washington Avenue & State Street Parking Lot MOTION: ADOPT (Pech; second, Panske) CARRIED: Ayes (7) Krause, Pech, Palmeri, Allison-Aasby, Herman, Panske, Mayor Cummings Randy Schmeidl, 230 Ohio Street, stated he was present to answer questions. Council Member Herman requested an explanation of the project. Mr. Schmeidl explained the first part of the project had been converting a former office complex into high end apartments,which had been complete. He stated the second phase would acquire the parking lot behind the complex to add surface and garage parking. Alan Davis, Director of Community Development, explained it was a complicated project and renovations had cost more than initially expected. He stated the City had found contamination underneath the parking lot which forced a reevaluation of the entire project. He explained they had found a solution that allowed for the garage construction to continue, although the City's mill and overlay of the remaining parking lot was less than what had been anticipated. He stated it remained a historic preservation project and he believed the contamination would be manageable. He explained he believed the project was a benefit to the downtown area by providing a new standard in housing and would spur additional new development in the area. Council Member Pech questioned if the garages would mirror the aesthetic of the housing units. Mr. Davis explained he believed they would match the basic characteristics of the building although he was not able to remember specific details. Council Member Pech requested the developer to provide Council with the details in the future as they were not present in the provided materials. 32 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Herman asked for an explanation of the easement portion of the resolution. Mr. Davis explained that the Kieckhafer's had been using the City lot to access the four parking spaces located on the east side of their building. He stated they did not wish to prevent access to their parking area therefore the City would grant an easement through the driveway. Council Member Palmeri stated the cost in land resulted in the City contribution reaching 90%, which resulted in the addition of a look back clause. Mr. Davis stated that was correct, and was similar to the situation with the Beach Building. Council Member Palmeri explained in relation to the look back clause, it was stated the developers would be allowed to achieve up to a 15% rate of internal return. She questioned if that was standard and how it had been determined as a cap. Ms. Lorenson indicated that they were not standard provisions, and had only been present in one other agreement, it was more of a negotiation factor. Mr. Davis stated the cap had been suggested by the Ehlers, and the 15% cap had been based on their experience with other developer's agreements with look back clauses for similar types of projects. Council Member Krause questioned why 30 garage units would be constructed for 20 apartments. Mr. Schmeidl stated there were only 20 garage units, however, some of the units were doubles. Resolution 17-244 Reject Sid for Public Works Contract No. 17-25 for Private Side Lead Water Service Replacement MOTION: ADOPT (Herman; second, Pech) CARRIED: Ayes (7) Krause, Pech, Palmeri, Allison-Aasby, Herman, Panske, Mayor Cummings 33 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Pech asked for an explanation of the rejected bid. Mr. Rabe stated the reason behind the rejection was cost. He explained as City staff developed changes to chapter 20 of the municipal code, they gathered cost analysis information. He stated the analysis revealed that the bid was in excess of the average costs by nearly $5,000 per property. He explained City staff recommended rejecting the bids on the public contract and utilize an option through the Safe Drinking Water Loan Principal Forgiveness Program to establish a pre-approved list of plumbers that property owners would be able to contract with. He stated the cost share through the program would still be available for those utilizing the pre-approved plumbers list. He explained the cost to the property owner would be in the range of $1,250 to $1,500 as opposed to close to $4,000 if the City had awarded the contracts. Council Member Panske questioned if he believed it would cause any of the local plumbers to increase their rates, or if there was something the City could do within the program to keep their rates cost effective. Mr. Rabe stated it would be difficult for the City to put limits on the cost, however, he explained citizens would be required to obtain three quotes from the list of pre-qualified plumbers which would help mitigate costs. Council Member Palmeri stated she appreciated the initiative and the common sense approach that would benefit the residents. Mr. Rabe explained City staff had not been comfortable with the cost of the contracts and were pleased with the proposed solution. Resolution 17-245 Reject Sid for Public Works Contract No. 17-26 for Private Side Lead Water Service Replacement MOTION: ADOPT (Pech; second, Palmeri) CARRIED: Ayes (7) Krause, Pech, Palmeri, Allison-Aasby, Herman, Panske, Mayor Cummings Mayor Cummings questioned if the resolution was related to the additional bid rejection. 34 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Mr. Rabe explained contract 17-26 was for work related to construction contact 17-04 which included Bayshore Drive, Lake Street, and Eveline Street. He explained because two different contracts had been out for bid, the rejection had to take place in two separate resolutions. COUNCIL DISCUSSION, DIRECTION TO CITY MANAGER &FUTURE AGENDA ITEMS Mr. Rohloff explained his assistant had communicated with the various legislators in regards to an afternoon meeting on May 151h or May 22nd and asked which date Council preferred. Mayor Cummings recommended seeking out a date in June. Council Member Herman stated he would prefer June. Mr. Rohloff stated he would present alternative dates/times for Council at the next Council meeting. Jim Collins,Director of Transportation,explained there had been a recommendation from a study completed by Walker Parking Consultants to improve the signage for downtown parking. He stated they had formed a group and had worked to include other recommendations, such as modifying the names of parking lots to be more congruent with their location, and considered outsourcing the signage updates. He explained outsourcing was cost prohibitive therefore the group contracted with the library for use of their graphic designer for a significantly reduced rate, who was presently working on parking lot signage and would present conceptual designs at the next group meeting. Council Member Herman questioned if the signage would be installed prior to the upcoming busy season at the Leach and other downtown venues. Mr. Collins stated the signage would likely not be complete until the end of summer. He explained completing the project in house would save money although it may take longer. 35 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 CITIZEN STATEMENTS TO COUNCIL There were no citizen statements to Council. CO UNCIL MEMBER ANNO UNCEMENTS & STATEMENTS Council Member Panske explained throughout the month of May citizens would be able to register their bikes with the City at no cost. She stated it was much easier to recover a stolen bicycle if it was registered. She explained Bike Osh would take place on Saturday, May 201h between 10 a.m. and 1:00 p.m. and would include several participating stops throughout the City. Council Member Allison-Aasby thanked Council for allowing funds to be allocated for strategic planning to address the need for direction when it came to an aging population. She explained the Committee on Aging had held two strategic planning meetings and had invited members of the senior community to attend a future meeting and provide input. She stated a number of City staff department heads had attended the most recent meeting and she thanked them for their time. She explained she would continue to provide updates as the planning progressed. CITY MANAGER ANNO UNCEMENT AND STATEMENTS Mr. Rohloff explained the vehicle purchases had each come in under budget. He explained the special events stakeholder group had held their third meeting earlier that day and things had been progressing well; he stated there had not been disagreement within the group so far. He stated the arena project was moving forward and was remaining on schedule. He explained the data reflected in the update that had been provided in March in regards to the 2016 41h quarter revenue/expense statements remained on target with current report. He stated after the applicable transfers the fund balance would grow from $8.5 million to $8.9 million which was keeping pace with the policy established by the long range finance committee of having a specific percentage allocated to the fund balance. He explained the first quarter report was also included in the agenda packet and because it was the first quarter there were not significant indicators or urgent issues that needed reporting. He stated the first quarter strategic plan report was included in the agenda and Kortney Jenks was present to answer any questions. 36 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 Council Member Herman asked for an explanation of the addition of 'caution' to the strategic plan as a progress indication. Kortney Jenks, Human Resources Generalist, explained there was a page included to describe why each area was in status. Mr. Rohloff indicated City staff had included an exceptions report to point out areas of concern. He stated some areas that had been an area of'caution' in the first quarter had progressed in the second quarter, while others remained an area of caution. Council Member Palmeri stated there was an item listed as 'caution' under neighborhood strengthening. She questioned what the 'caution' meant. Ms. Jenks stated 'caution' meant that the topic did not have much movement. She explained it meant action had begun,however, it may not be progressing as planned. She stated 'below plan' indicated the item had not had any action yet. Council Member Palmeri stated 'caution' was one notch up from 'below plan'. Ms. Jenks stated that was correct. Council Member Palmeri explained it was indicated the reason the City was behind on developing a targeted blight elimination process/program was due to budget and City staff constraints. She stated the City had implemented GO-HNI and employed additional City staff employed in community development. Ms. Jenks explained community development had a staff member leave, although a new staff member would begin in the near future. She stated the new employee would begin working on the projects that were in a caution status. Mr. Rohloff explained Tim Franz, Fire Chief, was recognized by Fox Valley Technical College as its Outstanding Alumni Award recipient. He commended Chief Franz for his dedication to the fire department as well as to his profession in terms of teaching and mentoring. Chief Franz thanked Council and City staff. He stated it had been an honor to receive the award. He explained he took every opportunity to participate in community discussions about education and shared the value he believed technical colleges offer in the system. 37 PROCEEDINGS OF THE COMMON COUNCIL—MAY 9, 2017 He stated there were many jobs that had become much more complex and individuals entering the workforce needed a certain skillset. He explained the technical colleges filled that need. He stated the gaps in the workforce were in technical skilled jobs. He explained the benefit of incremental education. He stated he appreciated the recognition. Council Member Pech thanked Chief Franz for everything he had done and continued to do for the City. MOTION: ADJOURN (Pech; second, Panske) CARRIED: VOICE VOTE The meeting adjorned at 9:19 p.m. PAMELA R. UBRIG CITY CLERK 38 PROCEEDINGS OF THE COMMON COUNCIL CITY OF OSHKOSH, WISCONSIN MAY23, 2017 REGULAR MEETING held Tuesday, May 23,2017, at 6:00 p.m. in Council Chambers, City Hall Mayor Cummings presided. PRESENT: Council Members Tom Pech Jr., Lori Palmeri, Deb Allison-Aasby, Steven Herman, Caroline Panske, Jake Krause, and Mayor Steve Cummings ALSO PRESENT: Mark Rohloff, City Manager; Pamela Ubrig, City Clerk; Lynn Lorenson, City Attorney; and James Rabe, Director of Public Works Council Member Tom Pech Jr. read the Invocation. The Pledge of Allegiance was led by Reese Meszaros from South Park Middle School; and Sami Schulze from Lakeside Elementary School INTRODUCTION OF CITY STAFF Mr. Rohloff introduced John Ziemer, who was recently promoted to Assistant Fire Chief, and explained he had been with the fire department since 1990 and had held every rank in the department. He introduced Tim Heiman, who was recently promoted to Battalion Chief, and explained he had been with the fire department since 2007 and had recently completed the Executive Fire Officer Program at the National Fire Academy, which was a prestigious program. He explained they were great additions to the City's management team. ACANTHUS AWARDS Shirley Mattox presented the 2017 Acanthus Awards to Jeremy and Lori Herzog,for their home on 310 Waugoo Avenue, and the DeVooght family,for their preservation and move of the Schreiber house on Algoma Boulevard. 1 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 LICENSE STATUS UPDATES Mayor Cummings explained Council would need to review the applicants and determine if the renewal procedures should continue. He stated the first applicant was Packers Pub, 1603 W. 201h Avenue. Patrick Ruedinger, owner of Packers Pub, stated several individuals had been interested in the property and the contingency of each of the negotiations had been whether the establishment had a liquor license. He explained it would be difficult to move forward with the sale of the property without a license. Council Member Pech stated the facility had closed in August of 2015 and in May of 2016 the liquor license renewal had been approved through June 30th, 2017 based on information that without the license it would be difficult to market and sell the establishment. He explained it had been a year and there had not been any new development. Mr. Ruedinger stated they had been working with an interested party for 6 months who ultimately decided not to proceed. He explained he continued to receive phone calls from individuals interested in the property, one as recent as the day prior. Council Member Pech stated they had shared the similar information with Council a year ago and there had been no action. He explained he understood there could be no guarantees, but questioned what assurance Mr. Ruedinger would be able to provide Council that there would be action in the near future. Mr. Ruedinger explained any potential offers were contingent on the liquor license. Mayor Cummings questioned if the interested parties were planning to operate the establishment as a bar. Mr. Ruedinger stated three of the interested parties had planned for a bar and restaurant. Council Member Allison-Aasby questioned if Mr. Ruedinger would be able to obtain a letter of intent. 2 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Mr. Ruedinger stated if time would allow he would request a letter of intent. He questioned how long he would have to work with the interested party to put something together. Council Member Allison-Aasby explained she had hoped to see something tangible during the Council meeting, however, two weeks would be acceptable. Council Member Panske stated they held the license until June 30, therefore she did not understand why they would not be promoting that during any potential sale. Council Member Pech questioned when Council would take action on renewing the license. Ms. Ubrig stated there were license renewals on the agenda for that evening, as well as for the next two meetings in June. Council Member Pech stated he would prefer the letter of intent within two weeks. He explained if the party was interested in the establishment they would be willing to provide a letter in an effort to secure the liquor license. Council Member Herman questioned when the non-renewal hearing would need to take place. Ms. Lorenson stated during the June 271h Council meeting and explained she would need time for preparation. Council Member Herman questioned who Mr. Ruedinger was working with to market and sell/lease the property. Mr. Ruedginer stated he previously had it listed with a realty company and there had been no results. He explained he had signs up and listed the property on his own. Council Member Herman questioned if he was trying to sell locally or if he had it listed on a network of bars/restaurants for sale. Mr. Ruedinger stated he did not have it listed within a network. 3 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Council Member Herman stated Council would need to make a decision on proceeding with the non-renewal process at June 131h Council meeting. Council Member Pech requested the letter of intent and any other tangible proof that there was an interested party prior to the meeting. He stated it should be delivered to the City Clerk no later than June 131h Ms. Ubrig indicated it should be delivered prior to that date for inclusion on the agenda. Council Member Pech stated the deadline was June 6th, which gave Mr. Ruedinger two weeks to gather the information. Mr. Ruedinger agreed. Mayor Cummings stated the next applicant was Robbins, 1810 Omro Road. Wally Wagner stated he owned the former restaurant and had closed due to personal illness June 30, 2016. He requested a renewal of the license and indicated he had listed the property with a real estate company. He stated they had an offer to purchase from an investor in October who planned to lease the property to a restaurant group from Oak Creek. He explained although the investor had backed out, the restaurant group in Oak Creek was still interested and engaged in negotiations. He stated the restaurant group intended to invest in the establishment and ran a successful business in Oak Creek. He explained they were in the process of acquiring financing. He stated they would bring a bar/restaurant with live entertainment to Oshkosh. He explained he would not be able to provide a letter of intent at this time, although they had visited the establishment approximately five times since January. Council Member Panske questioned if there had been additional interest outside of the Oak Creek restaurant group. Mr. Wagner stated there was an investor in Appleton that had been interested, although he did not have a tenant lined up. Council Member Panske questioned if his intent was to sell the business. Mr. Wagner stated that was correct. 4 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Council Member Herman stated he believed the property was being actively marketed. He explained he had a discussion with several Chamber members who confirmed what Mr. Wagner had described. He stated he was comfortable renewing the license. Mr. Wagner stated he had failed to mention that he owned properties east of Robbins;he had accepted an offer to purchase and the investors were in the process of developing a hotel, which he believed would help spur interest in the Robbins property. Council Member Allison-Aasby stated she was comfortable proceeding forward with the renewal as she had known Mr. Wagner for some time and could attest to his honest character. She explained she had witnessed activity at the establishment when driving by. Mr. Wagner explained they were actively working to sell the property as it was costly to maintain while closed. Mayor Cummings questioned if Ms. Ubrig needed further direction from Council. Ms. Ubrig clarified that Council would like to proceed with the renewal for Robbins. Mayor Cummings stated that was correct. CITIZEN STATEMENTS David Zerbe, 1031 Washington Avenue, explained he was present to share information on complete streets. He stated complete streets were streets for everyone; they were designed and operated for all users including pedestrians, bicyclists, motorists and transit riders of all ages and abilities. He explained complete streets made roadways easy to utilize and improved health and safety within the community. He stated it would help lower transportation costs was good for the environment. He explained the benefits had been proven through case studies, including data from Alexandria, Minnesota. He stated he would like to see the City of Oshkosh adopt a complete streets policy; Appleton, La Crosse, Madison and Milwaukee had already done so. He presented Council with material detailing the program, which will remain on file in the City Clerk's Office. Mayor Cummings questioned the date of the workshop at the university. 5 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Mr. Zerbe stated it was in the evening on June 13th,which would conflict with the Council meeting. He explained there was second workshop on June 141h during the day, which was one of only 7 being presented throughout the country funded by a grant. He stated he believed the workshop had been designed for government officials. Council Member Palmeri asked for an explanation of complete streets. Mr. Zerbe explained a complete street was designed to enable safe access for all users; depending on the width of the roadway and amount of traffic, complete streets offered different things. He described different options and explained the importance of green space and permeable surfaces. He stated large crosswalks and bump-outs near intersections were common, causing motorists to slow down and shortening the distance the pedestrian was in the street. He explained a complete street was for everyone; automobile, bicycle and on foot. PUBLIC HEARING Resolution 17-246 Approve Final Resolution for Special Assessments — Contract No. 17-12 Miscellaneous Utility Improvements MOTION: ADOPT (Herman; second, Palmeri) CARRIED: Ayes (7) Pech, Palmeri, Allison-Aasby, Herman, Panske, Krause, Mayor Cummings CONSENT AGENDA Report of Bills by the Finance Director Receipt & Filing of Common Council Minutes from April 11, 2017 Receipt & Filing of Museum Board Minutes from April 6, 2017 Resolution 17-247 Approve Initial Resolution for Special Assessments for Storm Sewer Laterals /Various Locations with Signed Waivers Resolution 17-248 Approve Acceptance of Waivers of Special Assessment Notices & Hearings 6 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Resolution 17-249 Approve Final Resolution for Special Assessments for Sewer Laterals /Various Locations with Signed Waivers Resolution 17-250 Approve Initial Resolution for Special Assessments for Storm Sewer Laterals /Various Locations Resolution 17-251 Approve Amendment to Engineering Services Agreement with McMahon Group for Design & Preparation of Construction Documents for the Urban Reconstruction of North Main Street (from New York Avenue to Murdock Avenue) ($79,511.00) Resolution 17-252 Approve Agreement with NES Ecological Services for Implementation of Storm Water Detention Basin Vegetation Maintenance Program ($116,156.48) Resolution 17-253 Approve General Development Plan for New Parking Lot; 220-224 Viola Avenue & 227 West Linwood Avenue (Oaklawn Elementary School) (Plan Commission Recommends Approval) Resolution 17-254 Approve Special Event — Oshkosh Area School District (OASD) Community Learning Centers to utilize Menominee Park for the Community Learning Centers of the OASD End of Year Celebration event/June 1, 2017 Resolution 17-255 Approve Special Event — Cool Events LLC to hold the Bubble Run 5K on the Experimental Aircraft Association (EAA) grounds / June 3, 2017 Resolution 17-256 Approve Special Event — St. Jude the Apostle Parish to hold their Parish Picnic/June 16-18, 2017 Resolution 17-257 Approve Special Event — Silver Star Brands to utilize Menominee Park for their Team Member Appreciation Day/June 22, 2017 Resolution 17-258 Approve Special Event — Oshkosh Elks Lodge #292 to utilize Rainbow Park for the Oshkosh Elks Sheepshead Fishing Tournament/July 15, 2017 7 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Resolution 17-259 Approve Special Event—Lourdes Academy to utilize City streets for the Lourdes Academy Eucharistic Procession/August 31, 2017 Council Member Palmeri stated she appreciated the inclusion of the maps with the applications. She explained she understood Witzel Avenue would be closed between 8:00/8:30 a.m. and questioned if closing down a major street during an active commute time was standard. Kathy Snell, Special Events Coordinator, stated it would not be a full closure of the street; it would only be closed while they crossed the intersection. Council Member Palmeri questioned if it would be a quick closure. Ms. Snell stated it would be a short period of time. Resolution 17-260 Approve Special Event—UW Oshkosh Department of Residence Life to utilize City streets for the Residence Hall Move In Days / September 2 —4, 2017 Resolution 17-261 Approve Special Event — Oakbrook Church to utilize Sawyer Creek Trail & City streets for the Babies for Heaven 5K Run Walk/October 14, 2017 Resolution 17-262 Approve Special Event — Oshkosh Downtown Business Improvement District (BID) to utilize City streets for the Downtown BID Holiday Parade /November 16, 2017 Resolution 17-263 Approve Block Party — Gregg Lux to utilize Evans Street between Nevada Avenue & Custer Avenue to hold a neighborhood block party/August 12, 2017 Resolution 17-264 Approve Council Member Appointments Resolution 17-265 Approve Appointments to Boards & Commissions 8 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Resolution 17-266 Approve Special Class "B" Licenses, Operator & Taxicab Licenses MOTION: ADOPT CONSENT AGENDA (Panske; second, Herman) CARRIED: Ayes (7) Pech, Palmeri, Allison-Aasby, Herman, Panske, Krause, Mayor Cummings ACTION TAKEN ON ORDINANCES AND RESOLUTIONS Ordinance 17-267 Designate Bicycle Lanes & Modify Parking Regulations to Restrict Parking on West Side of Westhaven Drive from 91h Avenue to Patriot Lane MOTION: ADOPT (Panske; second, Krause) CARRIED: Ayes (7) Pech, Palmeri, Allison-Aasby, Herman, Panske, Krause, Mayor Cummings Ordinance 17-268 Approve Zone Change from RH-35 Rural Holding District to HI Heavy Industrial District for Property Located North of Atlas Avenue & East of Global Parkway; Southwest Industrial Park (Plan Commission approved) MOTION: ADOPT (Pech; second, Palmeri) CARRIED: Ayes (7) Pech, Palmeri, Allison-Aasby, Herman, Panske, Krause, Mayor Cummings Ordinance 17-269 Modify Parking Regulations on 171h Avenue FIRST READING; LAID OVER UNDER THE RULES Resolution 17-270 Approve Annual City Licenses (Renewals) MOTION: ADOPT (Herman; second, Pech) CARRIED: Ayes (7) Pech, Palmeri, Allison-Aasby, Herman, Panske, Krause, Mayor Cummings 9 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Resolution 17-271 Approve Tax Increment District No. 32 Project Plan; Designate Tax Increment District No. 32 Boundaries; Create Tax Increment District No. 32 Granary Redevelopment (Plan Commission Recommends Approval) MOTION: ADOPT (Pech; second, Herman) CARRIED: Ayes (4) Pech, Allison-Aasby, Herman, Mayor Cummings Noes (3) Palmeri, Panske, Krause Council Member Pech stated he appreciated the press providing coverage for City topics, and he understood that there was limited airtime/column space, however, it had been stated that the TIF was for a restaurant. He explained the other pieces of the development had not been mentioned. He asked for an explanation of the TIF. Allen Davis, Director of Community Development, explained that it was a blight elimination project which was required of a TIF project; the building had been vacant for over 10 years and had fallen into a state of disrepair. He stated the City did not dictate the types of uses that would compose a TIF district; they looked at future revenues and jobs. Council Member Pech questioned if the project fit within City policy. Mr. Davis stated that each TIF project went through a scoring process to determine if it would meet applicable criteria, and the project received high scores. Darryn Burich, Planning Services Manager, explained it was not just a restaurant project; it was a blight elimination project. He stated the project would result in a rehabilitated building with a restaurant and an office space for an employer who was moving and expanding their workforce. He explained when they tied the project back to the City's comprehensive plan, they linked it to items such as revitalizing the south shore area and rehabilitating a landmark structure. He stated it would preserve a significant historical structure in the area. Mayor Cummings explained that the Landmarks Commission had marked the location over a year prior, which would allow the developer to retain a great deal of the historic character of the interior. 10 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Mr. Davis stated the project scored high in multiple criteria categories, and he believed it was a worthy project for a TIF. Council Member Herman asked for an explanation of the improvements to the river walk that would be incorporated into the project. Mr. Davis stated they were working on the south shore of the river walk and most of the work had been complete in the Morgan District area. He stated City staff expected the river walk to go east to the Pioneer Island area. He explained until they were able to get through the Sweetwater Marina area, they would need to go around the perimeter, similar to the Mercury Marine area. He stated the developers were proposing streetscaping and beautification with landscaping to the area. Council Member Herman asked for an explanation of the proposed improvements to 51h Avenue. Mr. Davis explained the area between The Granary and Sweetwater was a public right of way, and was in disrepair. He stated the developers were proposing to make improvements on their property and the public right of way to allow for additional parking for customers to the businesses, as well as delineating the location of the public right of way. Council Member Herman asked for an explanation of the length of the TIF. Mr. Davis explained the developers had requested the 'pay-go' TIF based on the rate of return on their investments and it was possible to ask for 90% for the entire 27 years. He stated he believed that would be justifiable based on their single digit rate of return. He explained the details would be included in the development agreement. Council Member Herman requested the representative from Ehlers to provide a brief analysis of the TIF. Todd Taves, Senior Municipal Advisor, Ehlers, explained the statutory life of a TIF was 27 years. He stated Ehlers had estimated a 22 year span based on cash flow projections, and the point in time where the amount that the developer had requested would be attained. He explained the tax increment district would be expected to close in 22 years although there was the possibility it could remain open for 27 years. He explained 11 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 without TIF assistance the developer would receive an investment return of 2% and with the assistance they would receive a return of approximately 5%. He stated the developers financial statements/projections had been reviewed and determined to be a reasonable forecast. He explained an investor that was strictly motivated by a profit on the project would not be motivated by a 5% return. Mayor Cummings asked for an explanation of a 'pay-go' TIF. Mr. Taves explained when a gap occurred between the costs of a project and the developer's capital, the developer needed to find an alternative source to make the project profitable at an acceptable level. He stated one option to fill the gap was to have the City borrow the funds or apply funds from another source and give the funds to the developer up front; the City would then use the tax increments to repay itself or to pay the debt service obligation. He explained a 'pay-go' TIF was reversed; instead of the City using the tax increments to repay its own debt, it would provide the stream of increment to the developer who would take the proceeds to a financial institution in exchange for a loan against the future stream of income. He stated it shifted the risk from the City to the developer. Council Member Palmeri asked for an explanation of a developer vs a City led 'pay-go'. Mr. Taves stated if the City were to finance the improvements, they would be able to borrow at a lower cost of capital than the developer. Council Member Palmeri asked for an explanation of the future costs the City could incur in a City led 'pay-go' project. Mr. Taves explained when the 'pay-go' approach was used instead of the City providing the money up front, the deal would ultimately have a higher cost because the developer would not be able to obtain capital at the types of rates that the City could. He stated the City would accept that the tax increment district may take longer to pay off due to the developer's higher cost of financing as a tradeoff for shifting the risk onto the developer. Council Member Krause questioned what portion of the projected 5% return was related to the restaurant. Mr. Taves stated the projection was not broken down to that level of detail. 12 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Council Member Palmeri stated half of the project was not historic, in terms of the add- on building portion that was designated to be the restaurant. She indicated the City was attributing some of the scoring criteria to historic preservation, and asked for an explanation of how the entire project should be permitted to receive that scoring when only a portion of the property was historic. Mr. Davis stated he did not believe it was possible to separate the historic vs non-historic portions of the property in relation to criteria scoring as it was physically one big project. He explained City staff determined rehabilitation of the structure from 1883 was historic preservation, especially in light of the landmarks commission's decision to mark the property as historic. He stated the projection for the value of the project was approximately$710,000 although he hoped it may be higher in the future. Council Member Palmeri stated that she admired the quality of the work of the architect, Chet Weisenberg. She explained she appreciated the project from a design standpoint, although she understood there were concerns about the delay in realizing some of the financial benefits from the project. She stated she was aware the building had been vacant for some time, although she was concerned that the plan commission had only discussed the project for approximately six minutes in their meeting. She explained the project was adjacent to another TIF district that had been created to spur catalytic development; she stated she did not believe it was anticipated that the created development would be something that required an additional TIF. She stated she would not support the approval. Council Member Herman questioned if the applicable state statutes had been followed for the TIF application. Mr. Davis stated that it had. Council Member Herman stated the information had been reviewed by Ehlers and the City Attorney. He questioned if everything required by law was being covered. Mr. Davis stated it was. Council Member Herman questioned if the project followed both the City's TIF policy and state statutes. 13 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Mr. Davis stated it did. Mayor Cummings stated it was significant to note that a historic structure was being saved while eliminating blight in an area that was seeing new life related to the stadium. He explained the property had been an eyesore for over a decade and he commended the developers for their initiative. He stated it was necessary to look at the overall impact to the City and the revitalization of the Sawdust District. He explained he would support the approval. Council Member Allison-Aasby explained she would have preferred to have the property rehabilitated without a TIF, however, there had not been any interested parties within the last ten years. She stated with the recent revitalization to the district, if the City chose to wait, they may have a developer purchase the property, however, they may not be from the area which has proved problematic in the past. She explained she was not pleased with the potential of a 22 year TIF and would like to have further discussion on the length in the future. She stated she had heard individuals state that the TIF was specifically for a restaurant, which was not true, the TIF was for the entire project and the building. She explained the project was supported by the City's TIF policy, and while the City had approved other TIFs in the past that ultimately resulted in a building with no tenants, it was her understanding that there were two immediate leases for the building. She stated Council was not able to decide what types of businesses would occupy the space and there was a benefit to having already secured two tenants. She explained one of the deciding factors in the City deciding to invest tax funds in the downtown hotel was that they expected to see growth in other developments follow. She stated she understood that Robbins was looking at rehabilitation without a TIF,however, she explained there was a significant difference in location as Robbins was located immediately off of highway 41. She explained the Granary would have 1.4 million in renovations, and the TIF funds only accounted for a portion of those funds; the developer would still make a significant capital contribution. She stated she understood on paper it appeared questionable, however, when the bigger picture was examined, there was substance. Mr. Davis explained Council would have an opportunity to review the development agreement; there was a look back clause at the ten year mark to review the progress. He stated if the developer was exceeding the anticipated return percentage, the City would be able to decrease the TIF assistance. He explained the hope of City staff was to see the 14 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 south shore experience an appreciation in value, and he would like to see the developer's rate of returns increase to the point where the City would not need to remain as involved. Council Member Palmeri stated she had voted in favor of TIFs in the past, most recently for the arena, with the understanding that the development would not move forward without TIF assistance. She explained she believed the TIF needed to be approached by considering if nothing would develop in the location for 22 years should the City not approve TIF funding; she stated she was not convinced that was true. Council Member Pech stated nothing had developed during the past 10 years and the location had sat vacant. Mr. Davis stated that was his understanding. Council Member Pech stated there was not a guarantee if this development did not proceed that another opportunity would arrive in the next 20 years. He explained he understood Council needed to act as good stewards of the taxpayers' money and the developers were local and invested in the community. He stated they had already invested money into the project and were ready to move it forward. He explained it was a benefit that there were two lease agreements ready to be signed by tenants. He stated he supported approving the TIF as the property had sat idle for ten years, and with more time the property would continue to deteriorate and may get to the point where rehabilitation becomes too cost prohibitive, and the City would lose a historic building. He explained this project was an opportunity to rehabilitate a historic structure and revitalize a neighborhood. He stated he was not willing to wait and risk losing the development and would support approving the TIF. Mayor Cummings stated there had been homes of historical significance located within the central City that had deteriorated so badly the City had to purchase the properties and level them; now the City had two empty lots that would likely remain empty. He explained once deterioration happened it eventually would begin to accelerate and at some point residents would pressure the City to take action on the eyesore. He stated the project was part of the long term vision for the City. Council Member Herman stated the added benefit of the river walk would happen with the project at a minimal cost. He explained the developers had been invested in Oshkosh for some time and were members of the community, not an outside developer, which the 15 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 City had experienced trouble with in the past. He stated the City was protecting itself by utilizing a 'pay-go' TIF and had met state statutes requirements. He explained the historic building had been vacant for ten years and had experienced problems related to deterioration including mold. He stated Council had approved the TIF for the Beach building and it was already filled with tenants, and it appeared from the lease agreements that the Granary would follow suit. He explained he would support the approval. Council Member Allison-Aasby questioned if either tenant had an investment in the property. Mr. Davis stated not that he was aware of. Chet Weisenberg, 240 Algoma Boulevard, stated he was a minority partner in the restaurant. He explained he had been invested in the real estate portion for over a year, working towards making the development happen. He stated he had become invested in the restaurant for the same reason, to help make the project move forward. Council Member Krause questioned what percentage of the 5% projected return was related to the restaurant. He stated restaurants frequently failed and if the return was heavily based on the restaurant profit margins would be impacted. Mr. Weisenberg stated approximately 40% was based on the restaurant. Council Member Panske questioned how long the developers had been working on the project. Mr. Weisenberg stated he had been working on it for approximately 18 months. Council Member Panske questioned why the developers had not come forward until April 2017 with the TIF proposal. Mr. Weisenberg stated as an architect he was often asked to work on projects where there was not yet a deal in an attempt to move the project forward. He explained they had bid out portions of the project and the cost was prohibitive therefore the project had stalled. Council Member Panske questioned what the developers planned to do if the TIF was not approved. 16 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Mr. Weisenberg stated the tenants would back out and the developers would start the process over. Council Member Panske stated it was her understanding if the TIF was not approved, the developers would seek out other ways to rehabilitate the building and find new tenants. Mr. Weisenberg stated that would be a goal. Council Member Allison-Aasby questioned who owned the property. Mr. Weisenberg stated Andy Dumke and Cal Schultz. Council Member Allison-Aasby stated she had a conversation with Mr. Dumke who had indicated based on the rate of return that he had been interested in selling the property. She explained she understood that Mr. Weisenberg and another individual had expressed interest in keeping ownership of the property local. She stated Mr. Dumke had stated he had then reconsidered. She explained based on the magnitude of the project, she questioned Mr. Dumke why he would take development on. She stated he had indicated that the project was 'in his backyard' and the other individuals on the project had ties to the community. She explained she would have preferred the developers finance the project on their own, however, there had not been interest in developing the property in ten years and there was a benefit to having local investors. Council Member Palmeri stated she believed TIF had been a useful tool during times when development was challenging. She explained the City was starting to see benefits from utilizing the tool and would continue to see TIF applications coming forward. She stated she believed if the City was successful in redevelopment efforts in the south shore area, it should spur both out of pocket investments and shorter TIF investments. Mr. Weisenberg stated he appreciated the questions although he believed the fact that the developers were willing to move forward with a 5%return should speak volumes to their commitment to the project. Council Member Pech stated he understood. 17 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Resolution 17-272 Approve Specific Implementation Plan for Planned Development of 50 W. 61h Avenue & Parking Lot East of 40 W. 61h Avenue (The Granary) (Plan Commission Recommends Approval) MOTION: ADOPT (Pech; second, Herman) CARRIED: Ayes (4) Pech, Allison-Aasby, Herman, Mayor Cummings Noes (3) Palmeri, Panske, Krause Council Member Herman asked for an explanation of the resolution. Mr. Davis stated it was related to the physical improvements of the Granary that were part of the TIF. He stated the developer would pay for the proposed sidewalk and street improvements up front. He explained the City Assessor had estimated the value of the completed property to be approximately 1.6 million. Council Member Herman questioned if there was a parking lot proposed. Mr. Davis stated the parking lot would be located at the corner of Nebraska Street and 61h Avenue on a site that was currently owned by the Redevelopment Authority (RDA). Council Member Herman questioned if the RDA would sell the lot to the developers. Mr. Davis stated they would. Council Member Panske stated according to the plan commission minutes, there had been a concern expressed by a Mr. Koeppler. She questioned if the concern had been resolved. Mr. Davis stated yes; once Mr. Koeppler understood that it would be an easement to the City, he was satisfied with the easement requirement. Resolution 17-273 Support GO Transit's Application for Section 5339 (c) Grant Program Funding for an Electric Sus Replacement Project MOTION: ADOPT (Panske; second, Krause) CARRIED: Ayes (7) Pech, Palmeri, Allison-Aasby, Herman, Panske, Krause, Mayor Cummings 18 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 Council Member Herman stated he had witnessed a City bus being towed recently, and he believed it was one of the electric buses. He questioned if the electric buses were truly saving the City money. Jim Collins, Director of Transportation, indicated it had been a hybrid bus that was towed. He stated the newer technology burned particulates which made the exhaust cleaner, and the filter on the hybrid had become plugged, which was an isolated incident. He explained the City had been awarded grants within the last two years to purchase replacement buses and the ones they had purchased were diesel. He stated the grant application was for the purchase of an electric bus, which were different from the hybrids as they were 100% electric. He explained it was newer technology and becoming the trend that most transportation departments were investing in;Oshkosh would be the first municipality in Wisconsin that would have an electric bus. He stated because it was not a hybrid they would not experience as many maintenance issues. He explained City staff were not certain they would receive the grant due to limited funding, however, believed it was worth applying. Council Member Herman questioned if there would be a local match. Mr. Collins stated there would be a 20%local match which would be included in the CIP. Council Member Herman questioned if the match total was $168,000. Mr. Collins stated that was correct. He explained a diesel bus cost approximately $450,000 and the hybrids cost up to $800,000 and the grant was 80/20, therefore the City would likely purchase one electric bus instead of two diesel. Council Member Herman questioned if there was City staff capable of working with completely electric buses. Mr. Collins stated that the mechanics were highly skilled and had worked on the hybrid buses and knew enough about the technology to become accustomed to the completely electric. 19 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 COUNCIL DISCUSSION, DIRECTION TO CITY MANAGER &FUTURE AGENDA ITEMS Mr. Rohloff stated the meeting date with state and local legislators remained to be determined. He explained June was a busy month due to budget preparation and availability was limited; he recommended Council move the meeting to July. He stated research had been ongoing in the boards and commissions study and City staff was prepared for a workshop to be schedule for June 131H Council Member Panske questioned how long the workshop would take. Mr. Rohloff indicated it should last approximately 45 minutes. He explained he would provide the report to Council in advance which would lessen the amount of time required for the workshop. He stated he was not expecting Council to implement each of the recommendations in the report, although he wanted to present each of the available options. Mayor Cummings explained he had been frustrated by trying to find participants for the City's various boards and commissions. He stated the goal was to make the boards and commissions reflect the diversity of the community. Council Member Allison-Aasby stated it had been direction Council had provided to Mr. Rohloff at the time of his review in 2016. Mayor Cummings stated that was correct. Council Member Palmeri stated they had experienced citizens questioning the purpose of various boards/commissions and whether the City was operating efficiently. She explained she looked forward to seeing some of the creative opportunities. Mr. Rohloff stated compared to other municipalities, Oshkosh had a high number of boards/commissions (26) although there were other municipalities that had similar numbers. He explained he understood Council's goal was citizen engagement. CITIZEN STATEMENTS TO COUNCIL There were no citizen statements to Council. 20 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 CO UNCIL MEMBER ANNO UNCEMENTS & STATEMENTS There were no Council Member announcements. CITY MANAGER ANNO UNCEMENT AND STATEMENTS Mr. Rohloff stated additional construction work on the arena would begin after they had received state approval for their revised building plans. He explained AECOM had been contracted to work on the site development associated with the State Street parking lot. He stated Bates Soil and Water Testing had started wetland delineation to gather information on the condition of Lakeshore Golf Course. Council Member Palmeri stated she had received questions from citizens regarding why work was being complete in the middle of golf season and the reason behind the work in general. Mr. Rohloff stated a proper wetland delineation needed to take place during a specific time of year, after winter melt off had occurred. Council Member Palmeri stated the citizen who had contacted her would also like to know the reason behind the work. Mr. Rohloff stated City staff had received questions periodically about Lakeshore Municipal Golf Course and he had directed City staff to complete the analysis. He explained they had not been able to answer questions related to the site because they did not have the information. He stated it did not mean the site was for sale. He explained City staff had conducted a similar analysis with the Buckstaff site. He stated not having the information prepared put the City at a disadvantage when answering inquiries from prospective developers. Brett Spangler, 2520 Hearthstone Drive, thanked Council Members Herman and Pech for their longstanding dedication to Lakeshore Golf Course. He stated he hoped the support continued. He explained the potential sale of Lakeshore Golf course to any private company was frustrating and the pace of the wetland delineation seemed suspicious. He stated he believed that the decision to sell had already been made. He explained he believed that Council was aware that there would not be much public support for the 21 PROCEEDINGS OF THE COMMON COUNCIL—MAY 23, 2017 sale. He stated Oshkosh Corporation, which was the rumored buyer, was a billion dollar company and although he understood the benefits Oshkosh Corporation had brought to the area, he believed they would be able to find alternative land that was not on public property. He explained it set a dangerous precedent of selling public land to private companies. He stated the golf course was a direct equivalent of Menominee Park, South Park, Pollock Pool or any other public recreational space, yet it appeared to be treated as another entity. He explained there was considerable undeveloped land within the City, some of which was near the former Buckstaff building, that there was no reason to sell public land that was utilized by the community. He stated an official press release from the City stated the new 'Welcome to Oshkosh' signs cost $93,000 each, and totaled more than the sum of the golf course's debt. He explained he understood the Oshkosh Area Community Foundation had assisted with the purchase of the signs, and he believed had they been informed that the golf course and parks were in need of help, funding may have been provided. He stated he had been made aware of extensive renovations taking place at South Park, which only made money through the rental of shelters, and therefore the City must be losing money on that investment. He explained it was an example of how the golf course was treated as an'outsider . He stated the skate park was funded by the City although it made no revenue and was utilized by a lot fewer people than the golf course. He presented a budget/service plan from Reid Municipal Golf Course in Appleton to demonstrate that golf courses had the ability to make money. He encouraged Council to explore every option in an effort to preserve the golf course. He stated there was considerable wildlife that occupied the course and urbanizing the golf course would threaten their environment. He explained he believed there were various viewpoints that were not being represented. He thanked Council for their time. MOTION: ADJOURN (Herman; second, Pech) CARRIED: VOICE VOTE The meeting adjourned at 8:05 p.m. PAMELA R. UBRIG CITY CLERK 22 PROCEEDINGS OF THE COMMON COUNCIL CITY OF OSHKOSH, WISCONSIN JUNE 13, 2017 REGULAR MEETING held Tuesday,June 13,2017, at 6:00 p.m. in Council Chambers, City Hall Mayor Cummings presided. PRESENT: Council Members Lori Palmeri, Deb Allison-Aasby, Steven Herman, Caroline Panske, Jake Krause, Tom Pech Jr., and Mayor Steve Cummings ALSO PRESENT: Mark Rohloff, City Manager;Angela Joeckel, Deputy City Clerk;Lynn Lorenson, City Attorney; and James Rabe, Director of Public Works Council Member Lori Palmeri read the Invocation. The Pledge of Allegiance was led by Council Member Palmeri. INTRODUCTION OF CITY STAFF Dean Smith, Chief of Police, introduced existing police department officers, Lieutenant Matt Harris, Captain Becky Kaiser and Assistant Chief Kurt Schoeni who recently accepted promotions. LICENSE STATUS UPDATES Mayor Cummings stated a representative from Packers Pub, 1603 W. 201h Avenue, was present to provide an update. Patrick Ruedinger, Packers Pub, explained he had been present at the previous Council meeting and had been told if he did not have a tenant by June 6th, the license would not be renewed. He stated the last interested tenant backed out and they did not have any other prospective tenants, although they had started working with a realtor. Council Member Pech questioned if the business had recently been listed for sale. 1 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Mr. Ruedinger explained he had listed the business himself and now was working with a realtor. Council Member Pech questioned other than the sale being managed by a different person, if anything else had changed. Mr. Ruedinger stated no. Council Member Panske questioned if the property was being marketed by the real estate firm as having a liquor license. Mr. Ruedinger explained he did not believe they had a license to advertise. He stated it was his understanding if he did not have a tenant by June 61h that Council would not renew the license. Council Member Pech stated Council had requested proof of intent. Council Member Panske explained Council had requested a letter of interest. Mr. Ruedinger stated his wife had indicated that the interested party had changed his mind. He explained he had decided it was time to have a realtor manage the sale. Council Member Pech questioned what kind of guarantee of marketing the realtor had provided. He stated Council did not want to revoke the license, as he understood that would make selling the business difficult, however, they were concerned about continued inactivity. Mr. Ruedinger stated he had brought the signed paperwork demonstrating he had contracted with Dave Spanbauer to market the property. He explained if they received an extension they would market the property with the liquor license. Council Member Panske questioned if he would like to sell the property as a restaurant/bar. Mr. Ruedinger stated he believed it would be best to market the property as a restaurant/bar and having the license was a significant marketing incentive. 2 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Council Member Pech questioned how long the property had been vacant without any marketing. Mr. Ruedinger stated he had personally been marketing the property since closing the business, and three years prior to closing he had advertised the property as for sale. He explained he had taken the property off of the market for a period of time and then relisted it to spur interest. Council Member Pech questioned how long it had been out of business. Mr. Ruedinger stated it would be 2 years in August. Council Member Pech questioned if Mr. Ruedinger had tried to sell the property prior to closing. Mr. Ruedinger stated yes. Council Member Krause questioned if the price had been lowered while it was on the market. Mr. Ruedinger stated yes;he explained he had also dropped the price upon signing with the realtor. Council Member Krause questioned if he believed the price was comparable to the fair market value. Mr. Ruedinger stated he believed it was, as the property was located on a high potential corner. Council Member Palmeri questioned the last time the license was actively used. Mr. Ruedinger stated it had been used up until they closed two years ago. Council Member Allison-Aasby questioned why he believed there was a barrier to selling the property. 3 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Mr. Ruedinger stated he believed it was due to low market value brought on by the recession. He explained he had not wanted to simply 'give' the property away and he remained current on taxes/related expenses. He stated he understood if he significantly dropped the price it would likely sell, although he did not feel as though he was in a position where he would need to do that. He explained he believed they had it listed at a fair market price. Council Member Krause questioned if the listing of the pub and the car wash were combined. Mr. Ruedinger stated they were. Council Member Krause questioned if Mr. Ruedinger owned both properties. Mr. Ruedinger stated he did although they were two different addresses he was selling them together as a corner lot. Council Member Krause questioned if he had attempted to sell the restaurant separately. Mr. Ruedinger stated he believed the car wash lot was too small to sell by itself. Mr. Krause stated it was possible that restaurant owner would not want to own a car wash, which limited the prospective buyers. Mr. Ruedinger explained he believed the car wash helped the profitability of the restaurant and was an asset as a combined value. Mayor Cummings questioned how long they had been in business at that location. Mr. Ruedinger stated they had been open approximately 38 years. Council Member Pech questioned what direction Council needed to provide City staff. Mr. Rohloff explained Council had the option to proceed with the license renewal, issue a notice of non-renewal, which was similar to a revocation hearing, or renew the license and set it for review after a period of time, often 6 months. 4 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Ms. Lorenson stated the official decision would need to take place via resolution at the follow meeting; tonight was simply an update on the status. She explained Council would need to direct City staff to prepare the license for renewal, or for a non-renewal hearing. Council Member Pech questioned if Council was able to issue a renewal for six months. Ms. Lorenson stated it was a one year license, although Council would be able to direct City staff to review the license after 6 months. Council Member Herman questioned if they renewed the license and if there was no activity upon the 6 month review, they would be able to hold a revocation hearing at that time. Ms. Lorenson indicated that was correct. Mayor Cummings stated he believed there were more than three closed restaurant/bars within the City. Council Member Herman stated Robbins, Mr. Cinders, Sisters and Packers Pub were closed. He explained there were additional spots located in strip malls that had been restaurants and were now vacant. Mayor Cummings stated due to the number of similar establishments that were for sale in the City and the number of years Mr. Ruedinger had been in business, he was inclined to renew the license. Council Member Herman stated he agreed. He explained Mr. Ruedinger had been a long time owner in the City and he would support Council renewing the license and reviewing it in 6 months. Council Member Palmeri questioned how long Mr. Ruedinger's contract was with his real estate agent. Mr. Ruedinger stated it was for 6 months. 5 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Council Member Herman recommended renewing the license and reviewing it in 6 months. He stated he was not comfortable with revocation at this point. Mayor Cummings stated nearly 40 years of business in one location was not an easy task. Council Member Herman stated it had been a successful business. Mr. Ruedinger explained they had not closed due to lack of patronage;it was simply time to retire. Council Member Allison-Aasby stated Council appreciated his honesty. Mr. Rohloff questioned if the consensus was to put the license on the next agenda for renewal. He stated Council would be able to provide further direction to City staff if they would like to review the license in 6 months. Several Council Members agreed. Mr. Ruedinger questioned what he should tell his realtor. Council Member Herman stated his license would be on the following agenda to be renewed. He explained Council may put a stipulation of reviewing the license after 6 months. Council Member Pech stated his current license was valid through the end of June. He explained at the following Council meeting, it would be on the agenda for renewal, and at that time Council may give direction that the license will have a status report in 6 months. Mr. Ruedinger stated he understood. Mayor Cummings stated they needed to consider once there was an accepted offer, there would be between 30-60 days prior to closing. Council Member Allison-Aasby stated the owner would contact City staff in the event of any change because Council would not wish to take any action that would damage an offer. 6 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Mr. Ruedinger agreed. PUBLIC HEARING Resolution 17-274 Approve Final Resolutions for Special Assessments Storm Sewer Laterals /Various Locations MOTION: ADOPT (Pech; second, Herman) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Council Member Palmeri stated two individuals had been present earlier seeking information about the assessments. She questioned if they had been able to meet with Mr. Gohde. Steve Gohde, Assistant Director of Public Works, stated they had. Council Member Palmeri questioned if their questions had been answered. Mr. Gohde stated yes. CITIZEN STATEMENTS Gary Gray, 815 W. Linwood Avenue, stated the beginning of the 2018 budget process would begin in approximately one month. He explained department expenses, licensing fees and state aid would be reviewed. He suggested Council look for creative opportunities for revenue instead of relying on tax/license fee increases. He explained an example would be the 'payment in lieu of taxes' (PILOT) program. Rachel Lee, 340 Graceland Drive, stated she was part of ReThink, which was a youth lead tobacco prevention group. She explained they were working towards tobacco free parks and were hosting a cigarette butt cleanup on Thursday, June 22nd at 5:00 p.m. in Menominee Park and invited anyone interested to attend. Steve Barney, 1335 Summit Avenue, presented copies of the summary for policy makers from each of the panels from the Intergovernmental Panel on Climate Change from their most recent assessment report. He explained it was considered the most authoritative source of information on the subject of climate change. He stated there was a section 7 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 dedicated to information for policy makers in each volume. He explained he believed the federal and state government had 'dropped the ball' when it came to climate change which prompted a renewal of a movement to encourage local government to address the concern. CONSENT AGENDA Report of Sills by the Finance Director Council Member Panske stated within the bills there was a check payable to Panske Enterprises which was a business her parents own. She explained she was not affiliated with the business and did not benefit financially from the transaction. Receipt & Filing of Common Council Minutes from April 25, 2017 Receipt & Filing of Museum Board Minutes from May 4, 2017 Receipt & Filing of Library Board Minutes from May 25, 2017 Receipt of Claims filed with the City's Insurance Company: A) Paula Rost for alleged damages from a city vehicle B) Carol Velasco for alleged damages related to a water main Resolution 17-275 Award Bid to Paul Conway Shields for 5.11 Tactical Series Uniform Gear for Fire Department Resolution 17-276 Approve Payment in Lieu of Taxes (PILOT) Agreement with Oshkosh Housing Authority&Waite Rug housing,LLC for Property Located at 300 East Custer Avenue Council Member Palmeri asked for an explanation of the payment in lieu of taxes (PILOT) agreement. She stated she had questions from citizens regarding the difference between a PILOT agreement and a pilot program, such as the program listed in resolution 17-280. Allen Davis, Director of Community Development, explained that the payment in lieu of taxes (PILOT)was related to a tax exempt non-profit organization committing to funding a certain amount of money in lieu of their property tax assessment, since they did not pay 8 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 property taxes. He stated the pilot program referenced in resolution 17-280 referred to a 'first test case' type of pilot, not the acronym described in resolution 17-276. Council Member Palmeri stated she believed the Housing Authority was one of the few tax exempt groups that voluntarily made payments. She questioned if that was correct. Mr. Davis stated he believed there were state statutes in place that governed housing authorities. Ms. Lorenson explained there were state statutes in place that allowed housing authorities to make such payments, and she believed they were encouraged to do so. She stated many tax exempt groups did not step forward to make payments, although they were able to do so if they wanted. Council Member Palmeri stated she believed there may be more non-profits stepping forward in the future. Resolution 17-277 Approve Contract with State of Wisconsin Department of Military Affairs, Division of Emergency Management for Wisconsin Hazardous Materials Response System Services Council Member Herman stated he understood the agreement had been in place for a considerable amount of time. He questioned when a team was called outside of the City and the department needed to cover the costs of the officers being gone, who was responsible for that cost. Tim Franz, Fire Chief, stated the City was reimbursed by the state. He explained the first route was to bill the responsible party, however, in the event there was not a responsible party directly associated with a spill, the state had an established fund to cover such costs. Council Member Herman stated he wanted citizens to be aware that in some of the agreements that went before Council, the taxpayers of the City were not responsible for the costs. He questioned if there was a procedure in place to fill the spots of officers traveling outside of the area for an extended period of time. Chief Franz stated yes. 9 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Council Member Herman questioned if the equipment the officers brought outside the area was separate from the equipment that would be used in the event of a spill within the City. Chief Franz stated that was correct. He explained the equipment was funded through the state's program and allowed for a better response time. Council Member Herman questioned approximately how many calls a year did the unit respond to. Chief Franz stated the number had significantly decreased over the past few years; he explained the average was less than 6 calls a year. Council Member Herman stated he understood the City utilized a number of mutual aid agreements, for example, the police department utilized Green Say's bomb squad. Resolution 17-278 Amend Resolution No. 17-232 Initial Resolution for Special Assessments — Contract No. 17-22 Sawdust District Improvements Resolution17-279 Award Sid for Public Works Contract No. 17-12 to Dorner, Inc. for Miscellaneous Utility Improvements ($1,978,062.15) Resolution 17-280 Approve Pilot Program Lead Service Line Replacement Policy Resolution 17-281 Approve Safe Drinking Water Loan Program Financial Assistance Agreement with the Wisconsin Department of Natural Resources for Project No. 4874-10 Resolution 17-282 Approve Change Order No. 1 for Public Works Contract No. 16-09 Water Main Relay & Installation (-$32,018.57) Resolution 17-283 Approve Change Order No. 1 for Public Works Contract No. 16-04 Paving, Sidewalk Driveway & Utilities / First Local Street Concrete Program (Northside Area) (-$40,539.42) Resolution 17-284 Approve Professional Service Agreement with AECOM for South Shore Morgan District Riverwalk ($236,150.00) 10 PROCEEDINGS OF THE COMMON COUNCIL-JUNE 13, 2017 Resolution 17-285 Approve Specific Implementation Plan for New Parking Lot; 227 West Linwood Avenue Oaklawn Elementary School (Plan Commission Recommends Approval) Resolution 17-286 Approve Sale of Fermented Malt Beverages at Leach Amphitheater by Parks Department Staff Council Member Palmeri asked for an explanation of the resolution. Ray Maurer, Parks Director, explained when the City had taken over the operations of the Leach Amphitheater there had been an agreement for collaboration between the parks department and the Convention and Visitors Bureau (CVS) to allow the parks department to sell fermented beverages at City sponsored events. He stated with the change in leadership at the CVS the timing was right for the parks department to begin selling fermented beverages at City sponsored Leach events again. He explained City staff would be responsible for the sales, similar to what takes place at the golf course and Reetz concessions, and a City staff member will take the responsible beverage course. Resolution 17-287 Approve an Amendment to Special Event—Oshkosh Corporation to utilize City streets for their 1001h Anniversary Parade /July 14 & 15, 2017 Council Member Palmeri asked for an explanation of the amendment to Oshkosh Corporation's event. She questioned if the request was for a complete closure of 23rd Avenue for two days. Kathy Snell, Special Events Coordinator, explained she had included a map showing the closure would run from Minnesota Street to Oregon Street. She stated there were two local businesses located in that stretch of road that the Oshkosh Corporation planned to contact and discuss the closure, in addition to contacting the business owners on Minnesota and Montana Streets who would be affected although still have access in/out based on the layout of the roads. 11 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Resolution 17-288 Approve Appointments to the following Boards & Commissions: BID Board, Housing Authority, Grand Opera House Advisory Board, Sustainability Advisory Board & Oshkosh Public Museum Board Resolution 17-289 Approve Special Class "B" Licenses, Operator & Taxicab Licenses MOTION: ADOPT CONSENT AGENDA (Pech; second, Panske) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings ACTION TAKEN ON ORDINANCES AND RESOLUTIONS Ordinance 17-290 Modify Parking Regulations on 171h Avenue MOTION: ADOPT (Allison-Aasby; second, Herman) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Resolution 17-291 Approve Annual City Licenses (Renewals) MOTION: ADOPT (Herman; second, Pech) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Resolution 17-292 Authorize Staff to complete & file a Water Rate Increase application with the Public Service Commission of Wisconsin MOTION: ADOPT (Pech; second, Allison-Aasby) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Council Member Pech stated during the last election there had been considerable discussion regarding increases in utility fees. He explained the City needed to continue to make investments in the infrastructure. He asked for an explanation of the background behind the cost increases. 12 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Council Member Allison-Aasby stated it appeared in the material that there would be a 15% increase in fees, although that was not the case. She asked for an explanation of the percentage. Trena Larson, Director of Finance, explained the 15% was an estimate based on cash flow and capital projections that were presented in the CIP workshop in 2016. She stated in the prior rate increase, the estimate had been a 15% increase that resulted in an 8% rate increase. She explained it was important to understand although the estimate may be 15%, it was not the final number. She stated Council would only be able to approve an analyzed rate that was approved by the Public Service Commission of Wisconsin. She stated in 2017 the citizens would not receive a water rate increase; the process began in 2017 and would take over 6 months to go through a comprehensive review. She explained the intent was to not begin a rate increase until January 1, 2018. She stated aging infrastructure was a driver of the proposed rate increase. She explained in the past, the cost of utilities had not kept up with the demand put on the infrastructure. She stated in order to ensure a quality and reliable product the City needed to maintain the infrastructure. She explained there were two capital improvement projects that were driving utility rates; the Marion Road water tower, which was an estimated $4 million investment for water utilities, and the clear well replacement program. She explained the clear well replacement program was a capital project planned for 2018, which was estimated to cost approximately $10 million for just construction costs. She stated they were two large projects that had an impact on water utility as it relied on debt. She explained debt was the final component of the rate increase; the City needed to ensure that they were able to maintain and meet their debt service covenants. She stated it was important to establish the necessary rates to meet the debt service coverage as it was a covenant requirement within the City's bond. She explained the City preferred to only complete a rate increase every two years due to the amount of time and analysis that was required to go through the process. Council Member Allison-Aasby asked for an explanation of the consequences that would result if the City did not maintain proper debt service coverage to satisfy the covenants. Ms. Larson stated it would have a significant negative impact on the City and would result in a downgrade of the Moody's rating, which was used to receive a lower rate for the debt service. She explained it was critical that debt service coverage be maintained. She stated the City went through a process each year to ensure that they were meeting 13 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 the debt service coverage; she explained with the 2016 utility rates they did not have sufficient debt service coverage, and they were required to complete a certification with the 2018 rates to prove that the City would have the correct rate structure and cash flow to meet the covenants. Council Member Pech stated part of the reason the City was replacing the water tower was to maintain water pressure, which allowed the fire department to provide fire protection within the City. He explained maintaining proper infrastructure provided drinking water to the City and maintained public safety. Ms. Larson stated the public safety component was imperative and the water protection component provided the City with a rating for the fire department which impacted the homeowners and their insurance requirements. She explained when City staff completed a 10 year analysis, they looked at cash, debt and capital operations. She stated the most recent analysis showed the City would hit a stabilized period in the future reflecting in a stabilized rate for utility customers. Council Member Pech stated the City was making investments now for items that should have previously been invested in, and were not due to previous Councils not wanting to make the 'hard decision' to pay for items necessary for the good of the public. He questioned if the public had access to the cash flow analysis and other related projections. Mr. Rohloff explained the City submitted its findings to the Public Service Commission of Wisconsin, who then put the data on its website. He stated an individual would also be able to contact the finance department to receive a copy. Council Member Pech explained there was documentation to validate and prove the need for the rate increase. Council Member Herman questioned if the estimated 15% was over a ten year period or if the rate was estimated to increase by 15% every two years. He stated he understood it was likely the final increase would come in under 15%; he was using the figure as an example to understand the structure. He questioned if once the application was approved, if the City would need to adhere to the 15%. Ms. Larson stated once the Public Service Commission approved a rate, it would not come back before Council for approval. She stated the estimated 15% referred to the rate 14 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 increase beginning January 1, 2018, not 15% moving concurrently every two years. She explained she did not anticipate the Public Service Commission to approve a 15% rate increase. She stated the estimate was provided to Council for information and anticipated the rate that was approved would be less than that. Council Member Herman stated he hoped that as the process moved forward, City staff would be able to provide citizens an explanation of the reason behind the rates as well as how the rates compared to other municipalities. He explained he understood that there were other communities that had a much higher water rate. He stated aside from debt the funds covered other items such as the City's bond and the water tower. He explained he understood the frustration as citizens were making efforts towards water conservation and rates still would increase. He stated the City needed to maintain debt service coverage and to continue to improve infrastructure, despite usage going down. He explained even if usage decreased, the same amount of infrastructure was necessary to support the City. Council Member Allison-Aasby stated the DNR had wanted the clear water well project completed several years ago and eventually the City would be forced to take action. Council Member Palmeri questioned if the City would be discontinuing the rain barrel credit program. Mr. Rabe explained the program was still in place and was not being discontinued. Mr. Rohloff stated it was a good reminder to citizens that such programs existed. Resolution 17-293 Amend 2017 Capital Improvement Program — Field Operation Facility landscaping ($15,000.00) MOTION: ADOPT (Palmeri; second, Krause) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Mayor Cummings stated the work that had been completed so far looked great. Council Member Herman asked for an explanation of the funding source for the landscaping. 15 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Mr. Rabe explained that City staff had shifted money from the major equipment vehicle fund, from vehicles that had come in under budget, over to property improvements to be able to pay for additional landscaping that was required per the City's zoning code. Resolution 17-294 Approve Development Agreement with 50 W 6th Street LLC for Redevelopment of the former Granary Restaurant at 50 West 6th Avenue; Construction of a new Parking Lot & Rehabilitation of an existing parking lot MOTION: ADOPT (Pech; second, Herman) CARRIED: Ayes (4) Allison-Aasby, Herman, Pech, Mayor Cummings Noes (3) Palmeri, Panske, Krause Allen Davis, Director of Community Development, stated the development agreement and the improvements within the right of way were related. Tim Hess, Invista Analytics, stated he was a professional statistician working with the developers on the Granary project. He presented an analysis summary demonstrating the reason why TIF was appropriate for the project. He explained even with TIF support the developers would still receive a return under 5%. He stated they still wanted to pursue the project as they were local investors from the City who wanted to see Oshkosh thrive. He explained they had received support from the community and City staff who wanted to see the project succeed and the historic building preserved. He stated the agreement included a 10 year lookback clause which offered the City protection in the event of a significant market change. He thanked Council for their support. Mr. Davis explained the TIF agreement contained the cost of the public improvements that translated into the right of way development, which the developers were paying up front as part of the project. He stated the developer would pay most of the total cost, approximately $121,000 directly to the contractor, however there were some items the City would install such as street lights, signage and paving. He explained the City would bill the developer for the cost of their work. He stated the City had included a look back clause in the event there was a sale within 10 years. Council Member Herman questioned if there was a sale, would the City be able to discontinue the TIF. 16 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Mr. Davis stated it would depend on the price of the sale; if it resulted in over a 15% return then the TIF would be terminated. Council Member Herman stated City staff actively monitored TIFs. He explained the City would not wait 10 years prior to reviewing the performance of the TIF. Mr. Davis explained Council received reports on TIF within the annual budget review and midway through the year. He explained the reports included information on how many businesses and employees had been created with the TIF districts. He stated recent TIFs had shifted the risk onto the developer and required them to front the upfront cost of public improvements. Mayor Cummings stated the project would eliminate another blighted property in the City. Council Member Allison-Aasby stated it was possible that a different developer may purchase the property in the future without TIF funding, however, past experience had shown that oftentimes a building vacant for a long time resulted in the City acquiring the property and considerable legal work in the hopes that it would be purchased. She thanked Mr. Hess for the presentation. She explained she had met with Chet Weisenberg and Mr. Hess to discuss how important it was for the public and for Council to understand the dynamics of the role of TIFs. She stated when the TIF policy had been reviewed and agreed upon by Council, it had gone from 75%with a 20 year expiration to 90% with a 27 year maximum. She explained it was difficult for the public and Council to visualize committing to a TIF for nearly three decades. She stated while Council would prefer developers to not have to rely on TIF, she understood it was oftentimes a necessity in a progressing community. She explained she was struggling with the 90% over 27 years, although the project matched current TIF policy. She stated going forward she would prefer to see the maximum TIF expiration not be used as the norm. She explained compared to the alternatives, she liked that the investors were local and had tenants ready to sign lease agreements. She stated the presentation did an excellent job explaining the reason behind the TIF request. Council Member Pech thanked Mr. Hess for his presentation and Chet Weisenberg for keeping Council informed. He explained he looked forward to the project being completed. 17 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Council Member Palmeri stated it was a challenging decision as the property had character and she appreciated the goals of the project. She explained the current TIF policy of 90% allowance up to 27 years was something the City could do; not something that would be granted with each TIF application. She stated there were municipalities that limited the duration to 10 or 15 years. She explained she had hoped that the development agreement would have been revised to reflect a request for less money and a shorter term, when in fact there had been calculations that came back higher. She asked for an explanation of how the public purpose or benefit outweighed the extended costs in the life of the TIF. Mr. Davis stated there was benefit in blight elimination and he believed the project would be a catalyst for the south shore, which would have significant economic impact. He explained the project also had value in historic preservation. He stated the developers were also making public improvements around the property that would benefit the City with the extension of the river walk as well as public parking. He explained the developers would pay for the public improvements up front therefore it would not be a general obligation debt. He stated the developers would need to perform to earn the 'pay-go', therefore the City was at a lower risk than they had been with past TIFs. Mr. Rohloff explained there was significantly less risk to the City with the way the TIF was structured. Mayor Cummings stated many historical buildings had been destroyed. He explained he believed a progressive City was one who preserved its past. He stated preservation was a major component to economic development. He explained he believed the project was part of putting the City on a progressive, forward path. Council Member Allison-Aasby questioned what the total cost of the City's infrastructure that was being fronted by the developer. Mr. Davis stated it was $121,951. He explained part would be completed by the developer's contractors and the other part by City crews who would then be reimbursed. Council Member Palmeri asked for an explanation of how some of the analysis had changed from the initial application until present. 18 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Todd Taves, Senior Municipal Advisor, Ehlers, explained there had been an error in the project plan that had understated the time required to reach the present value by 4 years. Council Member Palmeri asked what the fiscal difference was. Mr. Taves explained it went from approximately $660,000 to a little over $800,000. He stated Ehlers was in agreement with the developers numbers and it was an accurate calculation. He stated the actual numbers would be based on the payments that were made to reach the present value. Resolution 17-295 Approve Development & Maintenance Agreement & Waiver of Special Assessment Proceedings for the Granary Redevelopment project for construction within rights-of-way on West 5th Avenue, West 6th Avenue & Nebraska Street MOTION: ADOPT (Pech; second, Herman) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Council Member Herman asked for an explanation of the resolution. Allen Davis, Director of Community Development, stated it was separate from the TIF agreement and related to improvements in the right of way. He explained the developer was responsible for the costs, and regardless of how Council felt about the project, the resolution would transfer the risk from the City to the developer. Mr. Rohloff explained anytime the City put in public improvements associated with a project, they wanted to make sure the developer was held responsible and features such as the waiver of special assessments were included to make sure that happened. He stated the resolution contained the necessary protections to the City on the public improvement side. 19 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Resolution 17-296 Resolution determining to issue $[5,440,000] aggregate principal amount of General Obligation Corporate Purpose Bonds, Series 2017A, of the City of Oshkosh, Winnebago County, Wisconsin, in such amount, providing details, prescribing the form of bond, awarding the bonds to the best bidder & levying taxes MOTION: ADOPT (Pech; second, Herman) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Council Member Pech questioned if the bond issues were for projects that were approved in the 2017 capital improvement plan. Todd Taves, Senior Municipal Advisor, Ehlers, stated that was correct. Council Member Pech stated it was for expenditures the Council had already approved. He questioned if the general obligation bonds and notes fell within the $11.4 million cap. Mr. Taves stated yes. Council Member Pech stated the City was adhering to their debt management structure. He asked for an explanation of the sale. Mr. Taves explained the strategy that the City had been implementing had been a positive factor in terms of the conversations Ehlers had with Moodys. He stated the 2017A bond would fund the street improvements and park improvements and the winning bid was from Morgan Stanley with a true interest rate of 2.66% and had resulted in a nearly $70,000 reduction from bid premium, unused discounts and the cost of issuance. Council Member Pech asked for an explanation of a bid premium. Mr. Taves explained a bid premium occurred when the purchaser was paying a greater amount than the face value of the bond, which allowed them to reoffer the bonds in the secondary market with a higher interest rate. He stated the interest rate would be higher than market in exchange for a cash payment. He explained part of the cash payment would be used to reduce the issue size and part would be deposited to the debt service fund to offset portions of the next three years interest payments. He stated from the City's 20 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 perspective the bid premium was not a negative component as it reduced the amount of bonds issued and allowed for cash to be available to offset interest payments. Resolution 17-297 Resolution determining to issue $[5,830,000] aggregate principal amount of General Obligation Promissory Notes, Series 20175,of the City of Oshkosh, Winnebago County, Wisconsin, in such amount, providing details, prescribing the form of note, awarding the notes to the best bidder & levying taxes MOTION: ADOPT (Pech; second, Herman) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Mr. Taves explained the winning bidder had been Hutchinson Shockey Earley & Company with a true interest rate at 1.892%and an issuance that was reduced by$260,000 due to $193,000 in projects being removed by City staff therefore that total no longer required debt financing. He stated the bid premium, cost of issuance and unused discount also contributed to a decrease to the cost of financing of$423,000. Resolution 17-298 Resolution providing for the issuance & sale of & $[8,880,000] aggregate principal amount of Water System Revenue Bonds, Series 2017C, of the City of Oshkosh,Winnebago County,Wisconsin, providing details, prescribing the form of bond, awarding said revenue bonds to the best bidder & providing for the payment of said revenue bonds & other details and covenants with respect thereto MOTION: ADOPT (Pech; second, Palmeri) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings Mr. Taves explained the winning bidder had been Morgan Stanley with a true interest rate of 2.859% and the issuance size had been reduced by $690,000 as there had been a bid premium and no requirement to deposit to the debt service fund therefore the entirety of the premium had been used to reduce the issuance size. He explained the cost of financing would be $765,000 less than the presale estimate. 21 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 COUNCIL DISCUSSION, DIRECTION TO CITY MANAGER &FUTURE AGENDA ITEMS Mr. Rohloff stated Council Member Herman had acted on an item that each Council Member had received from the League of Municipalities in terms of providing an opinion in terms of personal property tax, which Council had already taken a stance on. He explained although Council would not be able to hold a meeting with legislators until after the legislative session ended, he believed it was important to respond to the email and voice an opinion. He stated it was significant to share what the impact to the City would be as it had a fiscal impact of nearly$1.4 million. He encouraged all of the Council Members to respond. Mayor Cummings stated he had responded to the question on personal property tax and historic tax credits. Council Member Herman stated it was his understanding that the state was looking at a three year phase-in and were not looking at increasing the rate, it would remain the same. He explained he believed the state needed to put in some step increases. Mr. Rohloff stated he had conversations with some of his colleagues who had recommended when Council met with legislators to provide them with legislative takeaways. He explained it had an impact individually and collectively. He stated 'dark store' was another concern that needed to be addressed with legislators. Mayor Cummings stated he and Finance Director Larson were at a forum a week ago discussing new funding sources for cities and villages due to recent activities in Madison. Mr. Rohloff stated there would be a TIF Workshop on Tuesday, June 201h following the plan commission meeting at City Hall in room 404. Council Member Herman explained he believed a'one size fits all' approach did not work for all development agreements and it would be beneficial to review different TIF policy options. He stated there had been changes made in the last year to better protect the City and additional changes would likely be coming before Council in the future. Allen Davis, Director of Community Development, explained during the workshop City staff intended to cover the basics of TIF, how the process worked in Oshkosh and 22 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 potential policy decisions. He stated if Council wished to add any other topics to contact him. Council Member Palmeri stated she had provided Mr. Davis with a list of items she would like addressed. Mr. Davis stated blight had been included on the list. Council Member Palmeri explained she would also like to discuss TIF pre-applications that never came before Council. Mr. Davis stated there were applications that City staff had denied. Council Member Palmeri stated she would also like to discuss how to prioritize TIF applications and the criteria scoring. Mayor Cummings recommended that Mr. Davis reach out to members of the Redevelopment Authority in regards to blight elimination as it pertained to neighborhoods. Council Member Herman questioned if it made sense to invite the joint review members to attend. Mr. Rohloff explained there was a conflict with the County Board meeting therefore Mark Harris would not be able to attend. He explained he would be late to the workshop as he would be present at the board meeting to represent the City on the formal waiver of the unpaid taxes on the former Buckstaff property. He stated he would agree to invite the joint review representatives. Council Member Allison-Aasby questioned if an invitation had been extended to Jason White from GO-EDC. Mr. Davis stated he had and he would speak about economic development and how Oshkosh fit in the 'economic development ecosystem'. 23 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 Council Member Herman suggested inviting the economic development coordinator for the Chamber of Commerce. He stated he believed any local partners that would be impacted by TIF should be invited. Council Member Allison-Aasby requested Mr. Davis gather information for the workshop on what other communities in the Midwest were doing in regards to TIF. She explained she believed it was Council's responsibility to bring ideas to the workshop. She stated if Council did not like a policy it was their obligation to change it and provide City staff direction. Mr. Rohloff requested Council to reach out with any additional suggestions. Mayor Cummings questioned if there would be a time limit for the workshop. Mr. Rohloff stated he estimated the workshop would last an hour and a half to two hours. Council Member Allison-Aasby stated she would encourage the plan commission meeting to run effectively to allow the workshop to begin on time. Council Member Herman questioned if it would make sense to review the TIF policies of neighboring municipalities who were in competition for businesses within the Fox River Valley. Mr. Rohloff stated in comparison, the TIF policy in Oshkosh was more sophisticated than other municipalities. He explained the City would be able to learn from other municipalities best practices. Council Member Palmeri explained she would like to discuss legal challenges that were occurring in the Eau Clair area related to blight elimination and TIF policy. Ms. Lorenson stated she had forwarded the emails to be included in the workshop discussion. Mayor Cummings questioned if there would be adequate time for the content of the workshop. Mr. Rohloff stated they would fit it in. 24 PROCEEDINGS OF THE COMMON COUNCIL—JUNE 13, 2017 CITIZEN STATEMENTS TO COUNCIL There were no citizen statements to Council. CO UNCIL MEMBER ANNO UNCEMENTS & STATEMENTS There were no Council Member announcements or statements. CITY MANAGER ANNO UNCEMENT AND STATEMENT Mr. Rohloff stated the Wisconsin Economic Development Corporation had awarded a $250,000 grant to the City for public improvements associated with the arena project. He explained the project was moving forward and the framing was up. He stated there was a name and logo coming soon. He explained there had been some revisions to the citizen survey and he would provide Council with an overview at the following Council meeting. Council Member Palmeri questioned if there was a revised version compared to what they had previously received. Mr. Rohloff stated yes; City staff had found some areas that required cleanup. 25 PROCEEDINGS OF THE COMMON COUNCIL-JUNE 13, 2017 MOTION: THE COUNCIL MAY CONVENE INTO CLOSED SESSION PURSUANT TO SECTION 19.85(1)(E) OF THE WISCONSIN STATE STATUTES TO DISCUSS THE POSSIBLE ACQUISITION OF PROPERTY AT AND/OR ADJACENT TO THE FORMER KIENAST &PAULUS QUARRIES WITHIN THE CITY OF OSHKOSH WHERE COMPETITIVE & BARGAINING REASONS REQUIRE A CLOSED SESSION. (Panske; second, Pech) CARRIED: Ayes (7) Palmeri, Allison-Aasby, Herman, Panske, Krause, Pech, Mayor Cummings MOTION: ADJOURN (Allison-Aasby; second, Panske) CARRIED: VOICE VOTE The meeting adjourned at 8:02 p.m. ANGELA J. JOECKEL DEPUTY CITY CLERK 26