Committee of the Whole

Committee-Of-The-Whole Meeting Minutes November 7, 2017 Mayor Nold called the Committee-of-the-Whole meeting to order at 6:15 PM. Members Present: Aldermen Miller, Rosek, Shaw, Ellis, Schmidt, Zwart, Strey and Kowieski Staff Present: Mayor Nold, Kitsembel, Buerger, Duffy, Frye, Gallo, Pickart, Sullivan, Bleck, Kelliher, Osborn, Steinbach, Caine, Rahn, Golz, Thakkar and Coenen Others Present: Atty. Riffle 2. Discuss/recommend Proposed 2018 Utility Budget: Sullivan gave a Power Point presentation starting with the Wastewater Utility that included highlights on operations; finances; operating income and expenses; capital projects and rate comparison. 2018 is looking at a 2.63% or $316,614 operating income with overall operating expenses projected to increase 2.00%. Wastewater is very capital intensive and depreciation is the largest component, representing 36% of the total operating expense. As part of the annual budget process, a rate study has been completed to determine how to structure rates for City customers and outlying sanitary districts. Due to conservation efforts, flow volume is down therefore the study recommends residential customer’s rates increase by 3.1% which equates to $0.77/month and commercial customer’s rates increase about 5.1%. The Wastewater capital budget includes increased funding related to street projects, an aeration tank blower upgrade and rebuilding of the grit removal process. In comparison to others, Wastewater rates are in the mid to lower range. For the Water Utility highlights included financial information; operating income changes; capital projects; and rate comparison. The overall operating expenses are expected to decrease 5.24% or $144,436 and a decrease in operating revenue is expected to be 4.81% or $169,400. This results in a budgeted operating income of $742,623 and a rate of return of 4.74% which is lower than 5.13% in 2017. The Water budget includes some significant capital projects such as $1,150,000 of water main replacements in coordination with street projects. The utility will not request a rate increase and in comparison the City rate is below average. For the Electric Utility highlights included operations; financial information; operating income changes; capital projects; PSC rate increase process; residential rate structure; fixed charge comparison; rate shift impact and rate comparison. The Electric Utility is expected to decrease 4.38% or $1,103,388. Purchased power is the largest expenditure and accounts for 77% of the operating expenses. Excluding purchased power the remaining operating expenses are expected to increase 2.7% or $147,612. The utility is looking at a residential rate increase effective mid-2018 of approx. 2.5% to provide funding for future capital and operating projects. It is projected for an average residential customer the increase will be approx. $3.00/month. Overall the utility is estimated to produce $1,141,269 in operating income with a rate of return of 3.94%. Motion by Shaw to recommend the proposed 2018 Utility Budget as presented; second by Schmidt. Motion carried 8-0. S:\Committees - Commissions\Committee-of-the-Whole\Minutes\2017\C-O-T-W Min 11-7-17.doc 3. Discuss/recommend Statement of Shared Use Agreement Between City of Oconomowoc and Oconomowoc Area School District: Kelliher reported in the meeting packet is the first draft of the Shared Use Agreement between the City and the Oconomowoc Area School District (OASD.) Both entities provide facilities and services to the community and historically we have worked cooperatively to provide programming by sharing facilities when appropriate through a verbal agreement. OASD recently met and discussed charging for use of their facilities and out of that meeting the school and City drafted the document as an understanding of what we have being doing. It has also been reviewed by both organization’s attorneys. There will be no charges during normal business hours, the shared parking lot in the NE Region is part of the agreement, and the school will provide easements for the parking lot. The agreement will require both Council and School Board approval with Council considering it on Dec. 5th and the School Board on Dec. 12th. Council requested in Item 2. the word “limited” be removed from the third bullet because the verbiage should be equal both ways and asked how this affects the future Serve facility. Kelliher stated Serve is not part of this agreement and the school will pay Serve for space usage, however the City will not. Motion by Rosek to recommend the Statement of Shared Use Agreement between the City of Oconomowoc and Oconomowoc Area School District; second by Schmidt. Motion carried 8-0. 4. Discussion on Isthmus District Zoning: Kitsembel introduced this topic due to the recent interest by the residents of the Isthmus area regarding a development proposal. Gallo stated there are 23 parcels on the north side of the dam and 7 on the south that were zoned Multi-Family Residential – 3 as far back as 1993 and then in 1996 zoning changed to Isthmus District. The parcels have a 45 ft. setback to the lake. Next Gallo gave a Power Point presentation outlining the zoning history; zoning district requirements and uses allowed; the approval process for projects; and options to consider for code changes. The options include rezone the area to single-family; make the area multi-family use or any change of use a conditional use; and look at placing a historical status over all buildings in the Isthmus. The Committee had discussion on combining lots, current guidelines to meet 1870 – 1930 architectural styles, and legal rights of owners. Riffle stated Council could consider putting a restriction on the maximum size of a lot and if 2 lots have a common owner they have a legal right to combine. The Committee agreed to bring this item forward again and requested Gallo provide more definition of the options and a summary of the Isthmus standards; which Gallo read directly from the code. Motion by Shaw to adjourn the Committee-of-the-Whole meeting; second by Ellis. Motion carried 8-0. The meeting adjourned at 7:29 PM. Minutes taken by Diane Coenen, City Clerk S:\Committees - Commissions\Committee-of-the-Whole\Minutes\2017\C-O-T-W Min 11-7-17.doc