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HomeMy WebLinkAbout15. 19-279 MAY 14, 2019 19-279 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE ASSIGNMENT OF CONNECTION AGREEMENT FROM UW-OSHKOSH FOUNDATION-WITZEL, LLC TO BOARD OF REGENTS OF UW SYSTEM AND UW-OSHKOSH FOUNDATION, INC. (BIODIGESTER PROPERTY) INITIATED BY: CITY ATTORNEY'S OFFICE WHEREAS, the City previously entered into an agreement with UW — Oshkosh, the UW — Oshkosh Foundation, Inc. and the UW — Oshkosh Foundation — Witzel, LLC allowing a biodigester facility to connect to the City's wastewater treatment plant; and WHEREAS, the parties have requested the assignment of the rights held by UW— Oshkosh Foundation—Witzel, LLC to the Board of Regents for UW-Oshkosh and UW— Oshkosh Foundation, Inc. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the Assignment of the Connection Agreement from UW-Oshkosh Foundation-Witzel, LLC to the Board of Regents of UW - Oshkosh and UW-Oshkosh Foundation, Inc., is hereby approved and the proper City officials are hereby authorized to execute appropriate documentation as necessary for such Assignment. TO: Honorable Mayor and Members of the Common Council FROM: David J. Praska DATE: May 14, 2019 RE: Approve Assignment of Connection Agreement from UW -Oshkosh Foundation - Witzel, LLC to Board of Regents of UW System & UW -Oshkosh Foundation, Inc. (Biodigester Property) BACKGROUND In 2012 the City entered into an agreement with the University of Wisconsin -Oshkosh, the University of Wisconsin -Oshkosh Foundation, Inc., and the University of Wisconsin -Oshkosh - Witzel, LLC, which allowed a new biodigester facility to connect the City's sanitary sewer plant. The connection allowed the transmission of methane gas between the two facilities. The connection between facilities continues to exist and we believe all parties benefit from this relationship. The City was recently contacted by the Board of Regents legal counsel and was advised that as a result of certain issues between the Board of Regents and the UW -Oshkosh Foundation, those parties agreed to assign any interest in the agreement held by UW -Oshkosh Foundation - Witzel, LLC, to the Board of Regents and UW -Oshkosh Foundation. The agreement signed in 2012 requires the City must approve any assignment of rights before they can become effective. ANALYSIS City staff believes that the agreement has been working well for all parties. The proposed assignment would not affect the City's involvement with the biodigester facility, and would not affect the substance of the original agreement. The removal of UW -Oshkosh Foundation-Witzel, LLC from the agreement would result in the City maintaining relationships with the two strongest out of the original three Board of Regents or UW -O Foundation entities. FISCAL IMPACT There is no anticipated fiscal impact from the proposed assignment. RECOMMENDATION Staff recommends that the Council adopt the proposed ordinances. Respectfully Submitted, An aA, � David J. Praska Deputy City Attorney Approved: Mark A. Rohloff City Manager City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us