City Council

COMMISSION ON PUBLIC WORKS/UTILITIES COUNCIL ROOM JUNE 24, 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, mowing and weed eating cemetery and parks, watering flowers, preparing ball fields, waiting on the doors to come in for the new north restroom in Schuster Park (they have to be cemented in), hauling brush and compost, cleaning storm drains, replacing old signs with the new reflectivity standard signs, patching potholes, street sweeping, cleaning brush off the O’Neill Creek fountain, inspecting properties that were sent cleanup letters, mowing residential lawns, crack sealing in downtown area, materials are arriving for the Grand Avenue water main replacement project. Lisa Enloe, Sewer Plant Operator, gave a slide presentation on the new phosphorus removal requirements. The new phosphorus effluent level is .075 mg/l. Our current permit limit is 1.00 mg/l. The bill signed by Governor Walker extends the compliance time frame from 7 - 9 years, to 20 years if the City qualifies for a variance. The variance would be a decreasing level of phosphorus over each permit term (.80 mg/l, .60 mg/l, .40 mg/l, etc.). This reduction includes a payment of $50 per pound to Clark County for their non-point program and a DNR approved project for reduction. Enloe stated the options available to meet the .075 limit are: 1) upgrade our plant, 2) pipe our final flow away (to another plant, ground discharge, or to a wetland), or 3) water quality trading (with a farmer, or by buying farm land along the river). Enloe stated the phosphorus cycle in our wastewater treatment plant is: Around 8.00 mg/l of phosphorus enters the plant in incoming sewage; the mixing basin cultivates special “bugs” that change the complex version of the phosphorus entering to an easier version that the aeration basin “bugs” can eat (when high flows occur, the mixing basin “bugs” get diluted and the process stops, and when rags get caught on the mixer blades, the tanks have to be drained and “bugs” are lost and the process stops); the next step is the oxidation ditch, where more phosphorus is removed; then the flow goes to the clarifier, which separates treated liquids from solids; alum is added to settle out the phosphorus that cannot be broken down or digested, the phosphorus stays in the sludge at the bottom of the clarifier (with high flows this sludge gets washed over the top and the final water is very high in phosphorus); the sludge is pumped into the blue tank for spreading on farm fields; in the blue tank, the “bugs” destroy themselves and release the phosphorus, when the air is shut off, the heavy sludge sinks and the clearer nutrient rich decant stays on top (about 20 mg/l of phosphorus); when we decant the phosphorus just goes around and around in the plant. Enloe stated that before doing a plant upgrade, she would like to: 1) ask businesses to stop using phosphorus detergents, 2) complete a trial using polymer, 3) have a small building for adding polymer and alum at the main plant, and 4) adding three ORP probes for maximizing how the mixing basin biological nutrient removal is working. Enloe stated the problems are: 1) heavy flows killing “bugs”, 2) rags, 2) alum is being added too early in the process, and 4) decanting adding the removed phosphorus right back into the plant. Enloe stated that possible solutions are: 1) fixing our collection system at a faster pace with outside help, 2) adding a fine screen, 3) adding two disk filters after the clarifier to capture solids, and 4) add a membrane thickener to the sludge storage tank (this will keep phosphorus in the sludge while decanting). Enloe stated that in conclusion, you have: 1) an overview of plant operations, possible upgrades, new phosphorus regulations, 2) an important upgrade is to incorporate a fine screen to the influent bar screen, 3) a DNR officer has asked us to look at our rates for accepting septage from waste haulers (our rates are extremely high and prohibitive to bring waste here), and 4) it has been a number of years since our last rate study was completed. Flynn stated sometimes we want the “bugs”, and when our flows are low, we can take a load. We have the capacity. We can control if we can take a load or not. The rate study will address future funding for projects. We just can’t pick and choose who pays what. AECOM has done the last two studies, and is working on a price. Right now, our mixing basins are our biggest concerns. The Commission thanked Enloe for her presentation. Motion Mabie, second Glassbrenner, to recommend to the Common Council to proceed with a sewer rate study. All Aye. Motion Quicker, second Weiers, that Water bills Nos. 123 to 144 in the amount of $99,623.47 and Sewer bills Nos. 110 to 129 in the amount of $44,226.08 be paid. All Aye. Motion Mabie, second Neville, to adjourn. All Aye. __________________________________________ Daryn J. Horn, Chair ____________________________________ Rex R. Roehl, Clerk ************ COMMON COUNCIL COUNCIL ROOM JUNE 24, 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 regular meeting and special meeting of June 17, 2014 were declared approved. Council Member Horn reported on the June 19, 2014 meeting of the Heritage Days Committee regarding: 1) financial report, 2) update on Miss Neillsville Queen Coronation – Thursday, July 10 at 6:30 p.m., 3) discussed the Miss Neillsville scholarships, 4) discussed the bean bag tournament, bartenders and schedules, and raffle ticket sales, 5) reviewed and finalized the event poster, 6) discussed the Business After Five event – Thursday, July 10 at 5:01 p.m. Council Member Glassbrenner reported on the June 19, 2014 meeting of the Neillsville Community Fire Hall Board regarding: 1) payment of bills, 2) discussed repairing a leak from an ice backup, 3) the sidewalk that had been removed during the water main break has been replaced, 4) discussed checking under the fire hall floor area for erosion, and 5) discussed the insurance renewal. Mayor Mabie reported on the June 24, 2014 meeting of the Economic Development Commission regarding discussion on and recommendation to approve an economic development loan to the Memorial Medical Center (MMC) in the amount of $1.5 million at 3.4% for ten years, with repayment of principal and interest on a semi-annual basis, and that MMC would cover all reasonable closing costs, that the City would have a non-voting member on the MMC Finance Committee, that the City would receive annual financial statements, and that an MMC representative would report to the Common Council and Economic Development Commission annually. Council Member Horn reported on the June 24, 2014 meeting of the Commission on Public Works/Utilities regarding: 1) current activities, 2) presentation by Lisa Enloe, Sewer Plant Operator and discussion on the new phosphorus removal requirements, 3) discussion on and recommendation to proceed with a sewer rate study, and 4) 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. City Attorney Wachsmuth stated that the real estate title work is back, and everything looks clear. Motion Weiers, second Neville, to accept the recommendation to approve an economic development loan to Memorial Medical Center (MMC) in the amount of $1.5 million at 3.4% for ten years, with repayment of principal and interest on a semi-annual basis, and that MMC would cover all reasonable closing costs, that the City would have a non-voting member on the MMC Finance Committee, that the City would receive annual financial statements, and that an MMC representative would report to the Common Council and Economic Development Commission annually. Council Member Weiers – Aye, Council Member Neville – Aye, Council Member Horn – Aye, Council Member Glassbrenner – Aye, Council Member Quicker – Abstained. 4 – Aye, 0 – Nay, 1 – Abstained. Motion carried. Mayor Mabie asked if there were any questions on the Commission on Public Works/Utilities item (3). Motion Horn, second Neville, to accept the recommendation to proceed with a sewer rate study. All Aye. City Attorney Wachsmuth read the following resolution. RESOLUTION NO. 574 A RESOLUTION FOR BORROWING $1.5 MILLION FOR ECONOMIC DEVELOPMENT WHEREAS, the City of Neillsville, Clark County, Wisconsin (hereinafter called the “City”), is presently in need of funds aggregating $1,500,000.00 for public purpose(s) of: (1) Economic Development –Memorial Medical Center; and WHEREAS, the Council deems it necessary and in the best interests of the City that, pursuant to the provisions of Section 67.12(12), Wisconsin Statutes, the sum of One Million Five Hundred Thousand no/100 Dollars ($1,500,000.00) be borrowed for such purposes upon the terms and conditions hereinafter set forth: NOW, THEREFORE, BE IT RESOLVED, that for the purposes hereinabove set forth, the City, by its Mayor (or City Manager), and Clerk, pursuant to Section 67.12(12), Wisconsin Statutes, borrow from Citizens State Bank of Loyal (“Lender”), the sum of $1,500,000.00, and, to evidence such indebtedness, said Mayor (or City Manager) and City Clerk shall make, execute and deliver to the Lender for and on behalf of the City the promissory note of the City to be dated July 1, 2014 in said principal amount with interest at the rate of Three and Twenty Five Hundredths percent (3.250%) per annum and payable as follows: Installments of Principal and Interest in 19 equal payments of $88,448.96 due on January 1, 2015 and on the same day(s) of each sixth month thereafter, PLUS a final payment of the unpaid balance and accrued interest due on July 1, 2024. All payments include principal and interest. Interest is computed for the actual number of days principal is unpaid on the basis of a 365 day year. Said interest to be payable on the dates set forth above on the outstanding principal balance, with prepayment privileges on any principal or interest payment date on or after July 1, 2014. A copy of the promissory note shall be attached to this resolution. BE IT FURTHER RESOLVED, that there be, and there hereby is, levied on all the taxable property of the City, a direct annual irrepealable tax sufficient in amount to pay the principal and interest on said note as the same becomes due and payable, said tax to be in the following minimum amounts: Amount of Tax To Meet Note Payments Year of Levy (principal and interest) Due On (must be in year(s) prior to due date) $88,448.96 January 1, 2015 & July 1, 2015 For the year 2014 $88,448.96 January 1, 2016 & July 1, 2016 For the year 2015 $88,448.96 January 1, 2017 & July 1, 2017 For the year 2016 $88,448.96 January 1, 2018 & July 1, 2018 For the year 2017 $88,448.96 January 1, 2019 & July 1, 2019 For the year 2018 $88,448.96 January 1, 2020 & July 1, 2020 For the year 2019 $88,448.96 January 1, 2021 & July 1, 2021 For the year 2020 $88,448.96 January 1, 2022 & July 1, 2022 For the year 2021 $88,448.96 January 1, 2023 & July 1, 2023 For the year 2022 $88,448.96 + $88,818.45 January 1, 2024 & July 1, 2024 For the year 2023 If at any time there shall be on hand insufficient funds from the aforesaid tax levy to meet principal and/or interest payments on said not when due, the requisite amount shall be paid from other funds of the City then available, which sums shall be replaced upon the collection of the taxes herein levied. In the event that the City exercises its prepayment privilege, if any, then no such direct annual tax shall be included on the tax rolls for the prepayments made and the amount of direct annual tax hereinabove levied shall be reduced accordingly for the year or years with respect to which said note was prepaid. In each of said levy years, the direct annual tax so levied shall be carried into the tax rolls each year and shall be collected in the same manner and at the same time as other taxes of the City for such years are collected; provided, that the amount of tax carried into the tax roll may be reduced in any year by the amount of any surplus in the debt service account for the note. So long as any part of the principal of, or interest on, said note remains unpaid, the proceeds of said tax shall be segregated in a special fund used solely for the payment of principal of, and interest on, said note. BE IT FURTHER RESOLVED, that there be and there hereby is, established in the treasury of the City, if one has not already been established, a debt service fund, separate and distinct from every other fund, which shall be maintained in accordance with generally accepted accounting principles. Sinking funds established for obligations previously issued by the City may be considered as separate and distinct accounts within the debt service fund. Within the debt service fund, there be and there hereby is established a separate and distinct account designated as the “Debt Service Account for Promissory Note dated July 1, 2014”, which account shall be used solely for the purpose of paying principal of and interest on said note. There shall be deposited in said account any accrued interest paid on said note at the time it is delivered to the Lender, all money raised by taxation or appropriated pursuant hereto, and such other sums as may be necessary to pay principal and interest on said note when the same shall become due. BE IT FURTHER RESOLVED, that the proceeds of said note shall be used solely for the purposes for which it is issued, but may be temporarily invested until needed in legal investments, provided that no such investment shall be in such a manner as would cause such note to be an “arbitrage bond” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or the Regulations of the Commissioner of Internal Revenue thereunder; and an officer of the City, charged with the responsibility for issuing the note, shall certify by use of an arbitrage certificate that on the basis of the facts, estimates and circumstances in existence on the date of the delivery of the note, it is not expected that the proceeds will be used in a manner that would cause said note to be an “arbitrage bond.” BE IT FURTHER RESOLVED, that the projects financed by the note and their ownership, management and use will not cause the note to be a “private activity bond” within the meaning of Section 141 of the Internal Revenue Code of 1986, as amended, and that the City shall comply with the provisions of the Code to the extent necessary to maintain the tax-exempt status of the interest on the note. BE IT FURTHER RESOLVED, that the City Clerk shall keep records for the registration and for the transfer of the note. The person in whose name the note shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and payment of either principal or interest on the note shall be made only to the registered owner thereof. All such payments shall be valid and effectual to satisfy and discharge the liability upon such note to the extent of the sum or sums so paid. The note may be transferred by the registered owner thereof by presentation of the note at the office of the City Clerk, duly endorsed for the transfer or accompanied by an assignment duly executed by the registered owner or his legal representative duly authorized in writing. Upon such presentation the note shall be transferred by appropriate entry in the registration records and a similar notation, including date of registration, name of new registered owner and signature of the City Clerk, shall be made on such note. BE IT FURTHER RESOLVED, that the note is hereby designated as a “qualified tax-exempt obligation” for purposes of Section 265 of the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. BE IT FURTHER RESOLVED, that the City officials are hereby authorized and directed, so long as said note is outstanding, to deliver to the Lender any audit statement or other financial information the Lender may reasonably request and to discuss its affairs and finances with the Lender. BE IT FURTHER RESOLVED, that said note shall be delivered to the Lender on or after the date of said note, upon receipt of the total principal amount of the loan evidenced thereby, plus accrued interest, if any, to date of deliver, provided that, if this is a refinancing, the refunding note shall be immediately exchanged for the note being refinanced. __________________________________________ Steven J. Mabie, Mayor __________________________________________ Rex R. Roehl, Clerk Motion Neville, second Horn, that Resolution No. 574 be adopted. On roll call: Council Member Neville – Aye, Council Member Horn – Aye, Council Member Glassbrenner – Aye, Council Member Weiers – Aye, Council Member Quicker – Abstained. 4 – Aye, 0 – Nay, 1 – Abstained. Motion carried. City Clerk Roehl reported on receiving a certified letter from the Wisconsin Professional Police Association regarding opening of contract negotiations with the Neillsville Professional Police Association for a successor agreement. The current contract expires December 31, 2014. Temporary Class “B” Retailer’s License Application: Neillsville Chamber of Commerce, Daryn J. Horn, Agent, for 511 E. Division Street (Schuster Park) for July 10 to 13, 2014 – Heritage Days Motion Neville, second Glassbrenner, to grant. Council Member Horn abstained, all other members – Aye. Motion carried. Soda Water License Applications: Neillsville Chamber of Commerce, Daryn J. Horn, Agent, for 511 E. Division Street (Schuster Park) for July 10 to 13, 2014 – Heritage Days. Motor Head Mafia Car Club, Randy Fitzmaurice, Agent, 600 block of West Street, for July 19, 2014 – Antique Car Show Motion Quicker, second Neville, to grant all the listed licenses. Council Member Horn abstained, all other members – Aye. Motion carried. Tavern Operator’s License Applications: Karen L. Bedell, Sally A. Bird, Alan L. Buchholz, Rashelle R. Canfield, Raymond O. Dunlap, Brian T. Eddy, Jennie L. Gereau, Michelle R. Grap, Krista K. Hamm, Melissa J. Hebert, Kelsey R. Jelinek, Shirley L. Karl, Alexandra R. Kind, Margaret I. Knoop, Marcia K. Lewis, Suzanne M. Lindenman, Angela K. Luchterhand, Diane L. Murphy, Kim L. Oldham, Laurie L. Oldham, Jason J. Raine, Kevin D. Struensee, Alexander B. Thums, Annette S. Vanderhoof, James A. Voss, Shari R. Zickert Motion Horn, second Neville, to grant all the listed licenses. All Aye. Motion Weiers, second Neville, that City bills Nos. 609 to 645 in the amount of $61,420.64 be paid. All Aye. Mayor Mabie thanked City Attorney Wachsmuth, City Clerk Roehl, and everyone who helped put the MMC economic development project together. Motion Horn, second Neville, to adjourn. __________________________________________ Steven J. Mabie, Mayor ____________________________________ Rex R. Roehl, Clerk ************