City Council

September 9, 2024, City Council Meeting Minutes Pursuant to due call and notice thereof, City Council Meeting of the Prescott City Council was held on Monday, September 9, 2024, in the Prescott Municipal Building, 800 Borner St. Prescott, WI 54021. 1. CALL TO ORDER President of the Council, Dar Hintz called the regular City Council meeting to order, September 9, 2024, at 6:00 p.m. 2. ROLL CALL Members present for the roll call were Michael Gerke, Maureen Otwell, Adam Granquist, Dar Hintz, John Peterson and Lindsey Sorenson. Mayor Daugherty was an excused absence. Also present were City Administrator, Matt Wolf, Clerk, Rashel Temmers and Chief of Police, Eric Michaels. 3. PUBLIC COMMENTS ON AGENDA ITEMS There were no public comments. 4. CONSENT AGENDA 1. City Council Meeting Minutes – August 26, 2024 2. General Fund Balances – August 2024 3. Cash Balances – August 2024 4. Paid Invoices Report – August 2024 Otwell/Granquist motioned to approve the consent agenda. There was no further discussion on the motion. Motion passed without a negative voice vote. 5. REPORTS OF STANDING COMMITTEES AND COMMISSIONS A. FINANCE COMMITTEE – Upcoming Budget Meetings: a. Wednesday, September 18, 2024, at 5:00 PM b. Wednesday, October 9, 2024, at 4:00 PM B. PLANNING COMMISSION – Next meeting – Wednesday, September 11, 2024, at 6:00 PM C. PARKS & PUBLIC WORKS – Next Meeting – Monday, September 16, 2024, at 5:00 PM G. HEALTH & SAFETY – Next Meeting – Monday, November 11, 2024, at 5:00 PM Alderperson, Hintz, reported on the minutes from the September 9, 2024, meeting. Chapter 242 was reviewed regarding bicycles, Ordinance 421-7, Boat Launch regulations, revisions to Chapter 545-15, Stopping/Standing/Parking in Specified Places, updating parking lot lighting was discussed, setting policy on when to close the boat launch and other facilities during flooding. All of these are being sent back to staff for clarification and updating.  H. PERSONNEL – Next Meeting – Wednesday, November 6, 2024, at 5:00 PM 6. COMMUNICATIONS AND NEW BUSINESS 1. PUBLIC COMMENTS – The City Council will receive public comments on any issue(s) not related to agenda items. Limited discussion by the City Council may take place; however, no action will be taken on any items. This includes receiving written requests or documentation and possible action at a future meeting. There were no public comments. 2. Well #3 Financing City Administrator, Matt Wolf, gave a background on Well #3 Financing. The City received approval from the Wisconsin DNR for up to $3,985,391 in Safe Drinking Water Loan Program (SDWLP) on January 2, 2024. As part of our submission to the Emerging Contaminates program, we also were approved for $1,999,925 in principal forgiveness (grant). In total the SDWLP will provide a discounted interest rate loan to cover the costs of the project. Due to the high number of water related projects (Locust, Elm, Washington, and Well #3) the City approved a full water rate study to the Public Service Commission. The Council passed Resolution 10-23, Approving Ehlers to Conduct Phase 2 through 4 of a Water Rate Study to the Public Service Commission for $9,000, on January 23, 2023. This Water Rate Study is currently at the Public Service Commission in review. The City of Prescott received four bids for the Well #3 treatment project that were opened on April 3, 2024. The lowest bid came from Market and Johnson at $3,045,000 and was approved by Council at the April 8, 2024, meeting through resolution 15-24. With final costs locked in place the total amount to be borrowed through the SDWLP is $1,860,807 or 51% of the total costs. The remaining 49% is reimbursed to the City as part of grant through the SDWLP Emerging Contaminates Fund (to treat for PFAs). As part of the approval of the contract to Market and Johnson the City agreed to use cash on hand within the Water and Sewer Funds to cover costs of the well until the DNR could close on the borrowing with the City. This allowed us to avoid using interim financing to cover costs avoiding additional interest costs and inflating project costs. Unlike a typical bond or loan the City takes out for a project, such as Elm and Washington Street. The Safe Drinking Water Loan Program are issued through the State of Wisconsin Department of Natural Resources and Department of Administration allowing for a reduced interest rate, which in this case is 2.365%. The current interest rates of an Aa3 rated bond (the City’s current rating) are between 3.35% to 3.5%. Resulting in an interest savings of between $226,182 - $261,596 because of utilizing the Safe Drinking Water Loan Program. As this is a revenue loan/bond, the annual repayment is pledged through our annual water revenues and doesn’t count against our debt financing limit. a. Approval of Financial Assistance Agreement between the City of Prescott and the State of Wisconsin Department of Administration and Department of Natural Resources for $1,860,807 This agreement is between the City of Prescott and the State of Wisconsin Department of Natural Resources and Department of Administration. This agreement is to award the $1,860,807 and lists the terms of conditions of the loan. Otwell/Granquist motioned the Approval of Financial Assistance Agreement between the City of Prescott and the State of Wisconsin Department of Administration and Department of Natural Resources for $1,860,807. Otwell amended her original motion to approve the Approval of Financial Assistance Agreement between the City of Prescott and the State of Wisconsin Department of Administration and Department of Natural Resources for $1,860,807, seconded by Gerke. President of the Council called for a roll-call vote; Sorenson – yes, Peterson – yes, Hintz – yes, Granquist – yes, Otwell – yes and Gerke – yes. Motion passed without a negative voice vote. b. Approval of Scope of Engagement with Quarles to Serve as Bond Counsel for the City of Prescott Scope of Engagement with Quarles to Serve as Bond Counsel for the City of Prescott - A bond counsel is a specialized attorney or law firm that provides legal advice and services related to the issuance of bonds. The full scope of work is provided in the attached document (Quarles Scope of Engagement) at a cost of $15,000, which is included in the total project costs for $13,500 the difference would be covered by the City Water Fund. The primary responsibility of Quarles include ensuring legal compliance, drafting legal documents and providing opinions. Alderperson Otwell, had a question on the memo regarding an administrative expense. She questioned whether or not the State of Wisconsin would only take $1,000.00 from the grant. City Administrator, Matt Wolf, stated that was the expense for CBS Squared administrating the loan for the city. Gerke asked if this was part of the $15,000.00. Wolf stated that this would be separate that would come out of the water fund. Otwell asked what the difference is between the financial advisor and the bond counsel. Wolf stated that the Financial Advisor will be Ehlers and the bond counsel has to be an independent counsel hired to make sure we are legally compliant. Otwell amended her original motion to approve the Approval of Scope of Engagement with Quarles to Serve as Bond Counsel for the City of Prescott, seconded by Gerke. President of the Council called for a roll-call vote; Sorenson – yes, Peterson – yes, Hintz – yes, Granquist – yes, Otwell – yes and Gerke – yes. Motion passed without a negative voice vote. c. Resolution 38-24 Authorizing the Issuance and Sale of up to $1,860,807 Water System Revenue Bonds, Series 2024, and Providing for Other Details and Covenants with Respect Thereto Alderperson Otwell asked who does the accounting work. City Administrator, Matt Wolf, stated usually it would be the city. However, because this borrowing is through the WI DNR, the DNR holds the funds, and handles the disbursements for reimbursements*. Otwell questioned Section 11, regarding additional bonds. Wolf stated that this Section just states that we cannot take out additional funding to cover the bonds during this period. A junior bond is a secondary bond. Otwell asked what a rebate fund was in Section 16. Wolf stated that this means we will have the funds available and continue to make the stated payments. Alderperson Gerke, asked what our yearly payment actually is. Wolf  stated that that is the principal payment listed. Otwell amended her original motion to approve Resolution 38-24 Authorizing the Issuance and Sale of up to $1,860,807 Water System Revenue Bonds, Series 2024, and Providing for Other Details and Covenants with Respect Thereto, seconded by Gerke. President of the Council called for a roll-call vote; Sorenson – yes, Peterson – yes, Hintz – yes, Granquist – yes, Otwell – yes and Gerke – yes. Motion passed without a negative voice vote. (*Correction City Administrator Wolf stated that the DNR and DOA holds these funds, which is inaccurate the City will be making and holding these funds through reimbursements made by the DNR and DOA.) 7. OTHER BUSINESS No other business. 8. CLOSED SESSION 1. Closed session per Wisconsin State Statute 19.85 (1)(g) “Conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved” to wit, discussion and consideration of current litigation with Leo’s Landing. Otwell/Peterson motioned to go to closed session. President of the Counsil called for a roll-call vote; Sorenson – yes, Peterson – yes, Hintz – yes, Granquist – yes, Otwell – yes and Gerke – yes. Motion passed without a negative voice vote. Granquist/Hintz motioned to come out of closed session. President of the Counsil called for a roll-call vote; Sorenson – yes, Peterson – yes, Hintz – yes, Granquist – yes, Otwell – yes and Gerke – yes. Motion passed without a negative voice vote. No motions or discussion was had on closed session items. 9. ADJOURNMENT Gerke/Sorenson motioned to adjourn the Council meeting at 6:36 p.m. Motion passed without a negative voice vote. Respectfully Submitted, Rashel Temmers Clerk