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HomeMy WebLinkAbout_Minutes 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