City Council

COMMISSION ON PUBLIC WORKS/UTILITIES COUNCIL ROOM MAY 27, 2014 6:45 P.M. The Commission on Public Works/Utilities met in regular session, Chair Horn presiding. On roll call: all members present. The minutes of the previous meeting were declared approved. Director of Public Works Flynn reported on two burials at the cemetery, equipment maintenance, picking up branches, raking the road shoulders in the cemetery, cemetery spring cleanup, mowing and weed eating cemetery and parks, Memorial Day preparations, planting flowers, hanging flower baskets, watering flowers, opening restrooms, hauling brush and compost, city-wide spring clean-up complete, replacing old signs with the new reflectivity standard signs, cleaning storm drains, patching potholes, street sweeping, working on street lighting, flushing water mains is completed, installed floating fountain in O’Neill Creek, health tour drive arounds with Council Members and sending out clean up letters, the Department of Natural Resources is requiring that we do a water tower inspection, instead of draining the tower, Dixon Engineering will be using a robot to do the inspection. Director of Public Works Flynn reviewed the Sewer Department 2013 Compliance Maintenance Annual Report (CMAR) and Resolution. There were no major changes in operations. Our overall grade point average of 4.00 puts us in the voluntary range. Our rate structure and replacement fund was reviewed in 2013. Future projects are line 2,200 feet of sewer, grout 2,000 feet of sewer and phosphorus removal. City Attorney Wachsmuth read the resolution. Motion Quicker, second Mabie, to accept the Compliance Maintenance Annual Report and recommend to the Common Council that Resolution No. 573 be adopted. (See Common Council minutes of May 27, 2014 for the printed resolution.) All Aye. Motion Weiers, second Neville, that Water bills Nos. 102 to 122 in the amount of $31,760.92 and Sewer bills Nos. 89 to 109 in the amount of $21,000.43 be paid. All Aye. Motion Mabie, second Neville, to adjourn. All Aye. __________________________________________ Daryn J. Horn, Chair ____________________________________ Rex R. Roehl, Clerk  ************ COMMON COUNCIL COUNCIL ROOM MAY 27, 2014 7:00 P.M. The Common Council met in regular session, Mayor Mabie presiding. On roll call: all members present. The Pledge of Allegiance was recited. The minutes of the previous meeting were declared approved. Council Member Quicker reported on the May 14, 2014 meeting of the Historic Preservation Commission regarding: 1) Michael and Tabitha Thomas, owners of the Gates House, 18 Hewett Street, appeared to request that their home be placed on the local landmark register, 2) discussion on and authorization to start the process to place the Gates House, 18 Hewett Street, on the local landmark register, 3) discussed the Historic Walking Tour brochure, 4) continuing to look for historic photos, 5) discussed property description for the brochure, and 6) approved using the name of the original owners of the properties in the Historic Walking Tour brochure. Mayor Mabie reported on the May 15, 2014 meeting of the Economic Development Commission regarding: 1) discussion on Memorial Medical Center’s (MMC) $1.5 million loan request, 2) reviewed MMC’s packet of detailed financial information, 3) MMC Chief Executive Officer Ryan Neville and MMC Chief Financial Officer Roger Sneath gave a video presentation regarding various changes to help bring in more patients and retain current patients, 4) the primary purpose of the loan is to purchase equipment, 5) discussed loan collateral, 6) discussed loan conditions – taxpayer protection, interest rates and closing costs, and 7) the recommendation to proceed with the $1.5 million loan request. Mayor Mabie reported on the May 19, 2014 meeting of the Board of Review regarding: 1) examination of the City’s 2014 Assessment Roll for errors and omissions, and to hear assessment objections, and 2) no property owners appeared in objection to their assessments. Council Member Quicker reported on the May 20, 2014 meeting of the Library Board regarding: 1) discussion on and approval to submit the 2014 Request for Funding List to the Neillsville Library Foundation, and 2) hiring of Karen Venne as a library aide. Council Member Horn reported on the May 22, 2014 meeting of the Heritage Days Committee regarding: 1) financial report, 2) discussed downtown activities before the parade – Pete Peterson, the Danish Peasant, will play downtown on Sunday, 3) discussed and updated the event poster, 4) discussed the 20th Anniversary celebration prizes and giveaways – authorized ordering 250 can coolers and 250 frisbees, 5) discussed 2014 Heritage Days tee shirts – authorized ordering 100 tee shirts for children and adults, 6) discussed beverage options available from General Beverages – they will supply a trailer and beer coolers, 7) discussed raffle and prizes schedule – authorized ordering 1,750 raffle tickets, 8) nine girls are running for Miss Neillsville, 9) discussed each committee member getting two $50 per hole sponsors for the golf outing, and 10) ice cream will be available for the event. Council Member Horn reported on the May 27, 2014 meeting of the Commission on Public Works/Utilities regarding: 1) current activities, 2) reviewed and accepted the Sewer Department’s Compliance Maintenance Annual Report and recommendation that Resolution No. 573 be adopted, and 3) payment of bills. Mayor Mabie declared all reports filed as presented with the City Clerk. Mayor Mabie asked if there were any questions on the Economic Development Commission item (7). Gary Weirauch, Memorial Medical Center (MMC) Board Member, stated that MMC is requesting a $1.5 million loan from the City. The cleanest way is for the City of Neillsville to borrow the $1.5 million over a ten year straight amortization period, with a ten year fixed interest rate general obligation debt, with semi-annual payments. Then the City would issue a separate loan to the MMC. MMC is offering $9.5 million in collateral, this is a good position as long as the business is cash flowing, however MMC needs to rebuild its cash and MMC needs the equipment and technology to stay modernized. Weirauch feels the City’s loan interest should be about 3.25% or less, and MMC has offered to bump that a quarter of a percent on doing the re-lending, plus MMC would provide title insurance, etc. City Attorney Wachsmuth stated that the earlier discussions were about MMC borrowing the money with the City jointly, or without us named on the loan directly. Weirauch stated it is cleaner for the City to borrow the money because of its taxing authority. If a second business is added, there could be a push back from the lenders. The City would lend MMC the money and we would pay the City, who in turn pays the lender. MMC would also allow the City one non-voting member to sit in on MMC’s Finance Committee to be sure that MMC is not slipping backwards. Council Member Glassbrenner asked what the reason is you can’t borrow the money yourself. Weirauch stated that MMC does not have the cash flow to show. MMC has been turned down for a loan twice. It is the cash flow, not the collateral, that determines if you can get a loan. Council Member Glassbrenner stated that you normally spend $1.5 million a year on equipment, technology, etc. Weirauch stated that some items have been deferred, and proposals have been cut back to the bare bone. Council Member Glassbrenner stated that MMC has also applied to the Regional Business Fund for a $500,000 loan. Could this be pared back? Weirauch stated that the Regional Business Fund requires a participating lender or you get nothing from them. Yes, the amount could be reduced. The biggest loan issued by the Regional Business Fund to date has been for $400,000. Mayor Mabie asked if MMC’s business climate was viable. Ryan Neville, MMC Chief Executive Officer, stated that MMC is part of a co-op. Some of our members are showing margins of up to 8% in some of our hospitals. What makes us strong is MMC is a fully integrated facility (hospital, clinic, etc.). Mayor Mabie read the following prepared statement. MMC has reached a crossroad. I believe the City is in a position of leverage both financially and collectively as concerned citizens to make the right call. I am anxious to lead this City forward in this commitment to reinforce a cornerstone business which is vital to our City and the entire region. Mr. Neville, his staff, and the Board of Directors at MMC have given us a very descriptive view of their plan of action. Working together in a time of need is often times the catalyst for a stronger community, which is why I recommend we take this leap of faith. I consider this action to be a high risk, high reward situation. To do nothing would be a disservice to us all. Council Member Glassbrenner stated that MMC has a tremendous impact on our community health-wise, as well as financially. Motion Glassbrenner, second Neville, to authorize the Mayor to request proposals from local banks to borrow $1.5 million with repayment over ten years. On roll call: Council Member Glassbrenner – Aye, Council Member Neville – Aye, Council Member Weiers – Aye, Council Member Quicker – Abstained, Council Member Horn – Aye. 4 – Aye, 0 – Nay, 1 – Abstained. Motion carried. Mayor Mabie asked if there were any questions on the Commission on Public Works/Utilities item (2). RESOLUTION NO. 573 COMPLIANCE MAINTENANCE RESOLUTION RESOLVED that the City of Neillsville informs the Wisconsin Department of Natural Resources that the following actions were taken by the Common Council: 1. Reviewed the Compliance Maintenance Annual Report, which is attached to this resolution. __________________________________________ Steven J. Mabie, Mayor __________________________________________ Rex R. Roehl, Clerk Motion Horn, second Neville, to accept the recommendation that Resolution No. 573 be adopted. All Aye. Mayor Mabie presented a request from the Neillsville Area Chamber of Commerce for a sponsor donation for the 2014 June Dairy Breakfast. Mayor Mabie stated that this would be show of the City’s support. Council Member Glassbrenner stated that the Chamber just received $12,000 from the City room tax money through the Tourism Committee. Council Member Neville stated that the June Dairy Breakfast is a fund raiser for the Chamber. Motion Quicker, second Horn, to give a $100 donation to the Chamber of Commerce 2014 June Dairy Breakfast from Account No. 56700-380 Economic Development Account – Program Expenses. All Aye. City Attorney Wachsmuth reported that a case against former Officer Mark Ott was dismissed in federal court. The prisoner had alleged false imprisonment. Mayor Mabie reported on attending the 2014 Alice in Dairyland banquet held in Curtiss on May 17, 2014. Zoey Brooks of Waupaca was crowned the 67th Alice in Dairyland. Clark County was highlighted for its agricultural workforce and businesses. Motion Neville, second Weiers, that City bills Nos. 488 to 533 in the mount of $493,014.10 and CDBG Housing Escrow Account bill No. 9 in the amount of $10,820 be paid. All Aye. Motion Horn, second Neville, to adjourn. All Aye. __________________________________________ Steven J. Mabie, Mayor ___________________________________ Rex R. Roehl, Clerk ************