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Full Agenda Packet CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, April 27, 2009 7:00 P.M. 1. Call to Order and Pledge of Allegiance. 2. Roll Call. 3. Minutes of City Council meetings: “C” A.Regular meeting of April 13, 2009 B.Special meeting of April 21, 2009. C.Closed session of May 12, 2008. 4. Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) “C” 5. Financial statement for the month of March, 2009. “C” 6. Action on a proposed resolution recognizing the week of May 10 as th “National Police Week” and the day of May 15 as “Peace Officers Memorial th Day”. (File Res. No. 2009-597) OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. 2. Requests and comments from the public on matters which can be affected by Council action. 3. Presentation by Interim Police Chief David Moore and Sheriff Robert Spoden on heroin activities in Rock County. ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – April 27, 2009 Page 2 OLD BUSINESS (CONTINUED) 4. Second reading and public hearing on a proposed ordinance regulating the display of material harmful to minors within the City of Janesville. (File Ord. No. 2009-430) 5. Action on a proposed resolution authorizing the City Manager to execute a lease with Janesville Youth Baseball, Inc. for the operations of the batting cages. (File Res. No. 2009-593) 6. Award of Contract C2009-9 (landfill scale replacement) for Public Works Bid Schedule “C” - 2009. NEW BUSINESS 1. Action on a proposed resolution approving continuation of Worker Compensation Limited Self-Insurance Program. (File Res. No. 2009-586) 2. Action to Authorize the City Manager to file a water rate increase with the Public Service Commission. 3. Action on proposed resolutions authorizing the City Manager to proceed with improvements to the Water Utility and to apply for a Wisconsin Safe Drinking Water Loan and authorizing Interfund borrowing to provide interim funding. (File Res. Nos. 2009-600 and 2009-601) 4. Action on a proposed resolution establishing the acquisition process for acquiring properties under the Neighborhood Stabilization Program. (File Res. No. 2009-592) 5. Action on a mutual cooperation agreement between the City of Janesville, the City of Beloit, and Rock County under the Neighborhood Stabilization Program. 6. Authorization to apply for funding through the COPS Secure Our Schools grant program. 7. Committee appointments. City Council Agenda – April 27, 2009 Page 3 NEW BUSINESS (CONTINUED) 8. Introduce and schedule a public hearing on a proposed ordinance amending transit bus fare rates for the Janesville Transit System with a penalty as set forth in JGO 10.76.030. (File Ord. No. 2009-433) 9. Matters not on the Agenda. 10. Consideration of a motion to convene into closed session, pursuant to Wis. Stats. §19.85(1)(e), for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session; specifically concerning setting the negotiating and bargaining terms, conditions, and provisions for: (1) potential acquisition of 107 South Locust Street for rehabilitation purposes; (2) a downtown TIF redevelopment agreement; and (3) a TIF 29 redevelopment agreement. PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN REGULAR MEETING APRIL 13, 2009 VOL. 59 NO. 49 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on April 13, 2009. The meeting was called to order by Council President Loasching at 7:00 PM. Council President Loasching led the Council in the Pledge of Allegiance. Present: Council President Loasching, Councilmembers Brunner, McDonald, Rashkin, Steeber, Truman, and Voskuil. CONSENT AGENDA Minutes of the regular meeting of March 23, 2009. Licenses and Recommendations of the Alcohol License Advisory Committee. Council President Loasching stated the alcohol license for Jackalope, LLC would be removed from the consent agenda and the remaining items would be approved if there were no objections. There were none. Councilmember Brunner moved to postpone action on the Jackalope alcohol license for two weeks, seconded by Councilmember Steeber and passed unanimously. Special recognition: Action on a proposed resolution in commendation of Amy M. Loasching’s service to the City of Janesville. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. (File Res. No. 2009-595) OLD BUSINESS 1. Requests and comments from the public regarding items on the agenda not requiring a public hearing. Tim Rutter, 326 N. Terrace St., representing Friends of Riverside Park, thanked the Council for their support. Andreah Briarmoon, 339 S. Locust St., thanked Council for looking into the litigation between the City and herself and requested a variance for 332 S. Academy St. 2. Requests and comments from the public on matters which can be affected by Council action. Billy Bob Grahn, 152 S. Locust St., opposed to alcohol license for the Ice Arena (Old Business #3). Marie Updike, 120 N. River St., stated the police department should place more emphasis on preventing and solving felony crimes and less emphasis on drunk driving offenses. Billy McCoy, 1326 Putnam Ave., stated concern about the budget and is opposed to a liquor license at the Ice Arena (Old Business #3). 3. A proposed ordinance permitting the lessee of the Janesville Ice Arena to apply for and hold a Class B Combined Fermented Malt Beverage and Intoxicating Liquor Alcohol Beverage License, with penalties and injunctive relief of violations thereof as set for in JGO 5.046.470 received its second reading and public hearing. John Mauermann, 209 Sunset Dr., Jim Terrill, 503 E. Holmes St.; Dave Johnson, 3030 Whitetail Ln.; Chuck Elliott, 510 High Point Ct.; Kelley Kaiser, 2607 Plymouth Ave.; Larry Squire, 4245 Wilshire Ln.; Kevin Smithback, 66 S. Ringold St.; Rick Mussey, 204 N. Wuthering Hills; Adam Briggs, 3832 Red Stone; Bob Mack, 3844 Red Stone; Bill McCoshen, Middleton, WI; spoke in support of the ordinance. Marvin Wopat, 35 W. Maple, Milton, WI; Larry Butler, 208 Red Apple Dr.; Al Lembrich, 541 Miller Ave.; Bill McCoy, 1326 Putnam Ave.; opposed the ordinance. The public hearing was closed. Councilmember Steeber moved to adopt said ordinance amended for fermented malt beverage only, seconded by Councilmember Rashkin. Councilmember Brunner moved to amend the motion by prohibiting wine coolers, seconded by Councilmember Steeber and failed by the following vote: Aye: Councilmembers Brunner, McDonald, and Steeber Nay: Council President Loasching, Councilmembers Rashkin, Truman, and Voskuil. The Council voted on the main motion and it passed by the following vote: Aye: Council President Loasching, Councilmembers Rashkin, Steeber, and Voskuil. Nay: Councilmembers Brunner, McDonald, and Truman. (File Ord. No. 2009-432) NEW BUSINESS 1. Discussion on poverty issues in the community. Councilmember Voskuil presented information on poverty and suggested creating a coalition and a resolution to address this issue. Councilmembers Rashkin and Brunner supported a coalition and resolution. The City Administration will draft a resolution for the Council’s review. 2. Action on a proposed resolution authorizing the City Manager to execute a concession contract with American Legion Baseball of Janesville, Wisconsin to operate a concession stand at Veterans Field, Riverside Park. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. (File Res. No. 2009-594) 3. Action on a proposed resolution authorizing the City Manager to execute a lease with Janesville Youth Baseball, Inc. for the operations of the batting cages. Councilmember Steeber moved to postpone said resolution, seconded by Councilmember Rashkin and passed unanimously. (File Res. No. 2009-593) 4. Action authorizing the City Manager to apply for grants through the COPS Hiring Recovery Program (CHRP) and the Edward Byrne Memorial Justice Assistance Grant (JAG). Councilmember Steeber moved to authorize the City Manager to apply for the grants, seconded by Councilmember Brunner and passed unanimously. 5. Action on a proposed intergovernmental agreement between the City of Janesville and Rock County related to law enforcement services at the University of Wisconsin-Rock County Campus and the distribution of payment for Municipal Services (PMS) Program funding. Councilmember Voskuil moved to approve an intergovernmental agreement, seconded by Councilmember Truman and passed by the following vote: Aye: Council President Loasching, Councilmembers Brunner, McDonald, Rashkin, Truman, and Voskuil. Pass: Councilmember Steeber. 6. Award of Contracts C2009-7 (Washington/Memorial Street reconstruction), C2009-8 (manhole reconstruction), and C2009-9 (landfill scale replacement) for Public Works Bid Schedule “C”-2009. Councilmember Steeber moved to award contract C2009-8 (manhole reconstruction) to Infrastructure Technologies of Rogers, MN in the amount of $179,355., to reject contract C2009-7 (Washington/Memorial Street reconstruction), and to postpone contract 2009-9 (landfill scale replacement) for two weeks. The motion was seconded by Councilmember Truman and passed unanimously. 7. Action on a proposed resolution approving a Tax Increment Finance development agreement with HSI Aviation Holding, LLC Helicopter Inspection and Customizing facility located in TIF No. 34. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Voskuil and passed unanimously. (File Res. No. 2009-591) 8. Action on City Council confirmation of City Manager’s proposal to consolidate positions for budget year 2009. Councilmember Steeber moved to approve the City Manager’s proposal, seconded by Councilmember Brunner and passed by the following vote: Aye: Council President Loasching, Councilmembers Brunner, Rashkin, Steeber, Truman, and Voskuil. Nay: Councilmember McDonald. 9. Committee appointments. Councilmember Brunner moved to approve the Council President’s and City Manager’s committee appointments. The motion was seconded by Councilmember Steeber and passed unanimously. 10. A proposed ordinance regulating the display of material harmful to minors within the City of Janesville was introduced and scheduled for a public hearing on April 27, 2009. (File Ord. No. 2009-430) 11. A proposed ordinance rezoning a small portion of Southern Wisconsin Regional Airport property from Agriculture to M1, Light Industrial; and the area encompassing the Glen Erin Golf Course located west of USH 51 from M1, Light Industrial, and Agriculture to Conservancy was introduced and referred to Plan Commission for a public hearing on May 26, 2009. (File Ord. No. 2009-434) 12. Matters not on the agenda. Council President Loasching scheduled a City Council organizational meeting April 21 at 7:30 AM. Councilmember Truman requested an update on Riverside Park wading pool; stated 1608 Grant St. has had 25 inspections and all re- inspections should be billed, stated Case Feed building should be boarded up to stop deterioration; the City building at 2300 Kellogg Av. should be demolished; and requested timely information on code and nuisance issues. Councilmember Voskuil requested quarterly reports on the Sustainability Committee. By consensus, Councilmembers thanked Council President Loasching for her service on the City Council. Councilmember Rashkin stated JATV will be holding a volunteer class and commended JATV Station Manager Judi Kneece for her work. Councilmember Brunner requested information on the fiscal impact of the State budget on the 2009 and 2010 City budget; agreed that the building at 2300 Kellogg Ave. needs to be demolished; and stated the building at 1953 Kellogg Ave. is vacant and needs to be boarded up. 13. Consideration of a motion to convene into closed session, excluding litigation, pursuant to Wis. Stats. 19.85(1)(e) for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session; specifically for setting the negotiating and bargaining terms, conditions, and provisions for various redevelopment alternatives for the GM property; and pursuant to Wis. Stats. Section 19.85(1)(g) for the purpose of deliberating, potentially taking action on, and conferring with legal counsel concerning litigation in which the City is involved, specifically Janesville v. K. Andreah Briarmoon, Rock County Case No. 2008FO3264 for the property located at 332 South Academy Street. Councilmember Steeber moved to convene into closed session for the GM property only, seconded by Councilmember Voskuil. Councilmember Brunner offered a friendly amendment to confer with legal counsel on the litigation but no deliberations or action would be taken. The friendly amendment was accepted by the maker and the seconder. The amended motion passed unanimously. There being no further business, Council convened into closed session at 9:34 PM. These minutes are not official until approved by the City Council. Jean Ann Wulf Clerk-Treasurer PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN ORGANIZATIONAL MEETING April 21, 2009 VOL. 60 NO. 1 An organizational meeting of the Janesville City Council, held at the Municipal Building on April 21, 2009, at 7:30 AM. The meeting was called to order by City Clerk-Treasurer Jean Ann Wulf. Ms. Wulf led the Council in the Pledge of Allegiance. Present: Councilmembers Brunner, McDonald, Perrotto, Rashkin, Steeber, Truman, and Voskuil. Election of Council President and Council Vice President: The City Clerk-Treasurer called for nominations from the floor for City Council President. Councilmember Steeber nominated Councilmember Truman as Council President. The City Clerk-Treasurer called for any other nominations three times and received no further nominations. Nominations were closed and Councilmember Truman was elected as Council President by the following vote: Aye: Brunner, McDonald, Perrotto, Rashkin, Steeber and Voskuil. Pass: Truman. Council President Truman called for nominations from the floor for City Council Vice President. Councilmember Steeber moved to nominate Councilmember Voskuil as Council Vice President. Council President Truman called for any other nominations three times and received no further nominations. Nominations were closed and Councilmember Voskuil was elected Vice President by the following vote: Aye: Brunner, McDonald, Perrotto, Rashkin, Steeber and Truman. Pass: Voskuil. Council President Truman established the new seating arrangement for the Council. Starting at the President’s far left: Councilmembers Brunner, Perrotto, Rashkin and Voskuil. Starting from the President’s far right: Councilmembers McDonald and Steeber. Matters not on the agenda: City Manager Levitt requested that Councilmembers turn in their committee appointment request forms so that they can be compiled for Council President Truman’s review. Councilmember Rashkin moved to adjourn, seconded by Councilmember Voskuil and passed unanimously. There being no further business, the Council adjourned at 7:37 AM. These minutes are not official until approved by the City Council. Jean Ann Wulf City Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA APRIL 27, 2009 RECOMMENDED A. SIGN ERECTOR – ORIGINAL AMERICAN SIGN FACTORY, LLC 4811 W. Woolworth Ave. Milwaukee, WI 1 B. ORIGINAL CLASS B INTOXICATING LIQUOR AND FERMENTED MALT LICENSE (See attached memo). JACKALOPE, LLC D/B/A ALL AROUND CORRAL John H DeValk 18-22-24 S. River St. C. CHANGE IN PREMISE TO ALLOW OUTDOOR SEATING (See attached memo). TAASBAG, LLC 2339 Milton Ave. 1 Jacalope, LLC Intoxicating Liquor & Fermented Malt Beverage license application was postponed for two weeks. 1 CLERK-TREASURER MEMORANDUM April 21, 2009 TO: City Council FROM: Jean Ann Wulf, City Clerk-Treasurer SUBJECT: Request to Table the Intoxicating Liquor and Fermented Malt Beverage License Application for Jackalope, LLC d/b/a All Around Corral At the April 13, 2009 City Council meeting, the Council postponed action on the Intoxicating Liquor and Fermented Malt Beverage License application for Jackalope, LLC. The Council had been informed that there was not a signed contract for leasing the building and that there was a dispute between the lessee and lessor. The City Clerk-Treasurer’s Office contacted the applicant and was informed that a contract has not been signed as of April 20, 2009. The applicant stated that the likelihood of obtaining a signed contract is remote. Therefore, we recommend the Council table this application. If the parties come to an agreement and sign the contract then we will request that the Council make a motion to take this matter off the table and act on the application. Suggested Motion “I move to table the Intoxicating Liquor and Fermented Malt Beverage License Application for Jackalope, LLC.” cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services Dave Moore, Acting Police Chief Steve Kopp, Deputy Police Chief CLERK-TREASURER MEMORANDUM April 21, 2009 TO: City Council FROM: Jean Ann Wulf, City Clerk-Treasurer SUBJECT: Council Action on an Application for Outdoor Seating for Taasbag, LLC d/b/a Taasbag On March 18, 2009, the Clerk-Treasurer’s Office received a request from Taasbag, LLC d/b/a Taasbag to amend their alcohol license to allow outdoor seating and to serve alcohol on their outdoor patio. They requested hours of operation between 11:00 AM and 12:00 AM. Their application stated that there would be no music or outside televisions. The neighborhood was notified that we received this request and the conditions that they were applying under. Citizens were invited to make comments at the Alcohol License Advisory Committee (ALAC) meeting and/or the City Council meeting. On April 7, 2009, the ALAC reviewed the alcohol license amendment to allow outdoor seating for Taasbag. At the public hearing, Doug McLay, owner of the apartments on Woodlane Drive stated that he was concerned about the parking in this area. Deputy Chief Kopp stated that he received an email stating Jim Joiner, who lives adjacent to the property, was opposed to the outdoor patio due to problems with loud music, traffic, and fights. The public hearing was closed. The ALAC unanimously approved outdoor seating conditioned upon the patio closing at 11:00 p.m. and that there would be no music/audio. The Plan Commission met on April 21, 2009 to review the Taasbag’s conditional use permit to allow an outdoor patio in B2 zoning. Since the tavern is a conditional use by zoning, an amendment to the conditional use was required to be reviewed by the Commission. The Commission approved the conditional use permit subject to no music. They chose to not include a time limitation restriction on the patio area. The processes (conditional use and alcohol license amendment) are separate actions although they affect the same business. The Commission affects the land use while the ALAC makes recommendations to the Council for the alcohol license. Therefore, the Council can further restrict alcohol on the patio only. Suggested Motion: If the Council agrees with the ALAC recommendation then the motion should be: “I move to approve outdoor seating for Taasbag conditioned upon the patio closing at 11:00 and no audio would be allowed. If the Council agrees with the Plan Commission then the motion should be: “I move to approve outdoor seating for Taasbag conditioned upon the prohibition of music.” cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services Acting Police Chief Dave Moore Deputy Police Chief Steve Kopp ACCOUNTING DIVISION MEMORANDUM April 17, 2009 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Financial Statement for the Months of March 2009 The City prepares its Financial Statements in accordance with generally accepted accounting principals using the modified accrual method of accounting and is audited annually by Virchow, Krause & Company, LLP. We prepare interim financial statements for the Council’s review on a monthly basis. Division and Department Heads are responsible for monetary expenditures to ensure budget compliance. Revenues and expenditures are projected to year-end in June and September. Key operating funds include the General Fund, Water and Wastewater Utilities, and Sanitation. A summary of their performance to budget, as compared a three-year average, is presented in the following graphs. EXPENDITURE SUMMARY The graph below indicates expenditures are being made according to budget. Year-To-Date March ExpendituresCompared to Three-Year Average Current YTD3 Yr. Avg. 35% 30% Percent of Total Budget 25% 20% 15% 10% 5% 0% Water -Wastewater - General OperatingOperatingSanitation Fund March 2009 Financial Statement April 17, 2009 Page 2 REVENUE SUMMARY The graph below indicates General Fund, Water, and Wastewater revenue has been earned as anticipated. Sanitation fund is below trend due to decreased tonnage of waste received at the landfill. Year-To-Date March RevenuesCompared to Three-Year Average Current YTD3 Yr. Avg. 45% 40% Percent of Total Budget 35% 30% 25% 20% 15% 10% 5% 0% General WaterWastewaterSanitation Fund Other items of interest in the Financial Statement are as follows: Proprietary Funds (pages 4) ? Stormwater Utility—The Stormwater Utility has a deficit operating cash balance of $512,782 at March 31, 2009. This is because revenue is billed on a quarterly basis (Approximately $483,450) after expenditures have been made. There is also an outstanding operating grant from FEMA related to the June 2008 flood event of $229,910. ? Transit System—Transit reports a negative cash balance of $645,448 due to the timing of grant reimbursements. Special Revenue Fund Balance (page 5) ? The Golf Courses fund has a negative fund balance of $105,950. This is due to the January transfer of its debt service payment ($96,764) to the debt service fund. ? TIF 3 has a positive balance of $283,908. The positive balance will be used to repay the general fund advance (plus accrued interest.) ? At March 31, 2009, the TIF districts have a combined deficit fund balance of $569,447. March 2009 Financial Statement April 17, 2009 Page 3 However, TIF projections indicate the districts will reach a positive fund balance before they expire. ? Landfill long-term care of site #3023 ($101,284) will be reimbursed by an insurance policy we have in place for post closure care. ? Economic Development Retention ($100,000) will be funded by the State of Wisconsin via a grant to the Forward Foundation. Capital Projects Fund (page 6) ? The Riverfront Property Acquisition account has a deficit balance of $161,939 primarily due to the purchase of the Westphal and Energetics properties. Funding will be provided via a Janesville Foundation Riverfront Reclamation Grant. ? The Reuther Way Project has a deficit balance of $81,852 at 3/31/09. It is anticipated funding will be provided with 2009 General Obligation note issue. ? The City incurred expenditures in conjunction with road projects on Highway 11 from Wright Road to Highway 14 ($185,685). These costs will be funded with future special assessments or General Obligation note issue. ? Landfill Construction- Phase 2 has a negative balance of $290,319. This project will be funded with the 2009 General Obligation note issue. ? Funding for Borrowed Street Maintenance account will be provided with the Randall Avenue State LRIP funding ($156,261). ? Flood Capital repairs will be funded by 2009 General Obligation note issue. General Fund Unreserved Balance (pages 7-8) ? Snow removal has a remaining balance of $191,662 at March 31, 2009. A representative of the Administrative Services Division will be available at the Council th Meeting on April 27 to respond to any questions Council may have relative to these reports. Once Council is satisfied, approval of the Financial Statement by consent and placing them on file would be in order. /Attachments Cc: Jacob J, Winzenz, Director of Administrative Services Eric J. Levitt, City Manager DUM POLICE DEPARTMENT MEMORAN April 10, 2009 TO: City Council FROM: Steven J. Kopp, Deputy Chief of Police th SUBJECT: Action on a proposed resolution recognizing the week of May 10 th as “National Police Week” and the day of May 15as “Peace Officers Memorial Day” (File Res. No. 2009-597) The Police Department has prepared a resolution recognizing the service and dedication of Janesville Police Officers by observing the week of May 10-16, 2009 as “National Police Week” and the day of May 15, 2009 as “Peace Officers Memorial Day”. In 1962, the Congress of the United States of America enacted a resolution that th allowed the President of the United States to proclaim May 15 of each year as th “Peace Officers Memorial Day” and the calendar week of each year which May 15 occurs as “National Police Week”. In 1994, the President of the United States signed public law directing that flags of the United States be flown at half-staff on all government buildings on May 15. During this week and on the day of May 15, citizens are encouraged to recognize the sacrifices and contributions of our police officers and to honor those men and women that have fallen in the line of duty. The Janesville Police Department includes 104 sworn officers. To honor these men and women, Resolution 2009-597 states the City Council’s intent to observe the week of May 10-16, 2009 as “Police Week” and the day of May 15 as “Peace Officers Memorial Day”. Resolution 2009-597 also encourages flags to be flown at th half-staff on May 15 in recognition of Peace Officers Memorial Day, honoring those men and women who have lost their lives in the performance of their duties. Officer O’Leary will be present and will represent the Janesville Professional Police Association, Local 32 at the City Council meeting in order to accept this recognition. Recommendation The Police Department recommends the City Council adopt Resolution 2009-597 th recognizing the week of May 10th as “National Police Week” and the day of May 15 as “Peace Officers Memorial Day”. Cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 1 RESOLUTION NO.2009-597 th A Resolution Recognizing the Week of May 10 as “National Police Week” th And the day of May 15 as “Peace Officers Memorial Day” (File Resolution No. 2009-597) WHEREAS , The Congress of the United States of America has designated the week of May thth 10 to be dedicated as “National Police Week” and the day of May 15 each year to be “Peace Officers’ Memorial Day”; and WHEREAS , Law Enforcement Officers are our guardians of life and property, defenders of the individual right to be free, and dedicated to the preservation of life, liberty and justice; and WHEREAS , it is important that all citizens know and understand the duties, responsibilities, hazards, and sacrifices of their law enforcement agency, and that members of our law enforcement agency recognize their duty to serve the people by safeguarding life and property, by protecting them against violence and disorder, and by protecting the innocent against deception and the weak against oppression; and WHEREAS , the Janesville City Council desires to honor the valor, service and dedication of the Police Officers that serve the City of Janesville. NOW, THEREFORE BE IT RESOLVEDby the Common Council of the City of Janesville ththth on this 27 day of April 2009, that the week of May 10 to May 16be observed as “Police Week”, and call upon all Janesville citizens to especially honor and show our appreciation for the Police Officers of the City of Janesville by deed, remark and attitude; and th BE IT FURTHER RESOLVEDby the Common Council that the day of May 15 be proclaimed to be “Peace Officers’ Memorial Day” and that flags be flown at half-staff on this day in honor of those men and women who have lost their lives in the performance of their duties, while protecting their fellow citizens and communities. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Eric J. Levitt, City Manager Perrotto McDonald ATTEST: Rashkin Steeber Jean Ann Wulf, City Clerk-Treasurer Truman Voskuil APPROVED AS TO FORM: City Attorney Proposed by: Prepared by: POLICE DEPARTMENT MEMORANDUM April 20, 2009 TO: City Council FROM: Deputy Chief David J. Moore SUBJECT: Heroin Issues in the City of Janesville and Rock County Request Councilmember Steeber requests that Deputy Chief David Moore and Rock County Sheriff Robert Spoden address the City Council on heroin issues in the City of Janesville and Rock County. Analysis The use of heroin in Janesville has increased at an alarming rate. Law enforcement has responded accordingly. Heroin is a dangerous drug that causes near immediate addiction and in some cases, death. The drug affects all ages, genders and socio-economic classes. The Janesville Police Department and the Rock County Sheriff’s Office work cooperatively to enforce the Wisconsin statutes related to heroin possession and sales. cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 1 OPERATIONS DIVISION MEMORANDUM April 16, 2009 TO: City Council FROM: Peter Riggs, Assistant Operations Director SUBJECT: Second Reading and Public Hearing on a Proposed Ordinance Regulating the Display of Material Harmful to Minors Within the City of Janesville (File Ord. No. 2009-430) Summary This memo explains the State and local regulations concerning sexually oriented businesses and exposing children to harmful material. The memo also explains the provisions of Proposed Ordinance No. 2009-430 regulating the display of material harmful to minors. Proposed Ordinance No. 2009-430 requires that “harmful material” not be displayed in a way that could expose minors, as members of the generally invited public, to view these “harmful materials.” Staff recommends the adoption of Proposed Ordinance No. 2009-430. Staff Recommendation Following the public hearing, staff recommends the City Council adopt Proposed Ordinance No. 2009-430 regulating the display of “harmful material” to minors. Suggested Motion I move to approve File Ordinance No. 2009-430. City Manager recommendation No recommendation. Request Councilmember Steeber requested a report and ordinance regulating the display of sexual toys and novelties. Background Councilmember Steeber contacted the City Manager’s Office with a concern about sexually oriented material including sexual toys and novelties on display at Spencer Gifts, a store located in the Janesville Mall. City staff verified that the material was on display at the store and that the material was not kept in a separate room or obscured from the view of store patrons. Staff determined that the sexual material did not exceed the 10% rule outlined in Janesville General Ordinance 5.82 and thus the establishment does not require an Adult Oriented Business license. Store staff indicated they monitor the area where the material 1 is displayed and attempt to keep minors away from the material. The material is not kept in a separate room and the material is viewable as an invited member of the public in the store. It is Janesville Mall policy that all minors ages 12 and under must be accompanied by an adult while in the mall. It is reasonable to assume that minors have been exposed to this material. Local and State Regulations The City of Janesville regulates adult oriented businesses in Chapter 5.82 of the General Code of Ordinances. This ordinance was adopted in 2002. This ordinance requires a license for any business with 10% or more of their business income, inventory, or floor space comprised of materials depicting or describing “specified sexual activities” or “specified anatomical areas.” 10% was chosen as the threshold based on extensive peer community and case law research performed at the time the ordinance was initially proposed. City zoning code (18.36.040 (B) (4) (b) (2)) permits licensed adult oriented businesses to locate in the B4: Business Highway District. The license and ordinance require that minors are prohibited from adult oriented businesses. Wisconsin State Statute 948.11 concerns exposing a child to harmful material or harmful descriptions or narrations, these terms are defined in Wisconsin State Statute 948.11 (1). Selling, renting, exhibiting, playing, distributing, or loaning § harmful material to a minor is a violation of the state statute and is a Class I felony. A Class I felony is punishable by a fine not to exceed $10,000 or imprisonment not to exceed 3 years and 6 months, or both (Wisconsin State Statute 939.50 (3) (i)). The statute defines “harmful material” as any picture, § photograph, drawing, sculpture, motion picture film, or similar visual representation or image of a person or portion of the human body that depicts nudity, sexually explicit conduct, sadomasochistic abuse, physical torture, or brutality, and that is harmful to children. “Harmful to children” is defined as that quality of any description, narrative account or representation, in whatever form, of nudity, sexually explicit conduct, sexual excitement, sadomasochistic abuse, physical torture, or brutality, when it: predominantly appeals to the prurient, shameful, or morbid interest of children; is patently offensive to prevailing standards in the adult community as a whole with respect to what is suitable for children; and, lacks serious literary, artistic, political, scientific, or educational value for children, when taken as a whole. The state statute addresses a person, providing or exhibiting the harmful material to a child. A “person” is defined as an individual, partnership, association, corporation, or other legal entity of any kind. Businesses that do not exceed the 10% rule are not prohibited from allowing minors upon their premises. Thus, it is possible for a business to have on display harmful material that is accessible and viewable by minors. A business that displays “harmful material" in an area that is accessible and/or viewable by minors could be in violation of Wisconsin State Statute 948.11(2) (a). Four § conditions must be met for a violation of the statute to occur. First, the defendant 2 sold, exhibited, transferred, and/or loaned material to a minor. Second, the defendant had knowledge of the nature of the material. Third, the material was harmful to children. Fourth, the minor had not attained the age of 18 years at the time of the alleged offense. Peer City Research Research was performed to determine how comparable communities in Wisconsin regulate the display of “harmful material.” We found that the Cities of Beloit, Eau Claire, Appleton, and La Crosse have local ordinances that regulate material that is “harmful to minors.” Appleton has adopted Wisconsin State Statute 948.11 by reference and the Eau Claire and La Crosse ordinances have language similar to Wisconsin State Statute 948.11. City of Beloit ordinance 15.02 concerns “obscene material” and does not specifically address materials that are harmful to minors. The Cities of Fond Du Lac, Manitowoc, Oshkosh, Brookfield, Green Bay, Kenosha, Racine, Waukesha, Wausau, West Allis, and Wauwatosa do not have local ordinances that specifically address material that is “harmful to minors.” The City of Madison and the City of Milwaukee were also examined. City of Madison ordinance 26.05 regulates “harmful materials” and is similar to Wisconsin State Statute 948.11. It also prohibits allowing entry of minors to any premises where harmful material is exhibited. City of Milwaukee ordinance 106- 9.6 regulates the display of material harmful to minors and marital aid devices. The Milwaukee ordinance prohibits the display of these items in a location where minors, as members of the invited general public, may be exposed to view the materials. The City of Milwaukee issued four citations for failure to comply with its ordinance in 2008 and no citations were issued in 2005, 2006, or 2007. The City of Milwaukee City Attorney’s Office stated that the Milwaukee ordinance was adopted in 1988 and amended in 1996. They stated it is relatively rare for a citation to be issued for this offense. Proposed Ordinance Summary Proposed Ordinance No. 2009-430 was modeled after City of Milwaukee ordinance 106-9.6. It is the intent of Proposed Ordinance No. 2009-430 to proactively address prohibiting the exposure of children to “harmful materials” as defined in the proposed ordinance. It is a violation of this ordinance to knowingly display “harmful materials” to minors in such a way that minors, as members of the general invited public, may be exposed to view these materials. Marital aid devices were not included in the proposed ordinance draft due to the inability to clearly or adequately define what items would be subject to regulation, especially to the degree necessary to survive potential judicial scrutiny, and lack of case law that specifically permits regulation of the display of this material. The proposed ordinance is similar to several other ordinances and state statutes that have been upheld in court challenges. 3 The City of Janesville’s current approach to this issue relies on enforcing Wisconsin State Statute 948.11, meaning that in order to enforce the statute a minor must be exposed to the harmful material. The exposure has already occurred before any legal action may be taken. Proposed Ordinance No. 2009- 430 creates a proactive approach that allows enforcement and corrective action to be taken prior to victimization, and limit or eliminate the potential for the exposure to occur; thus, preventing victimization. This will be accomplished by requiring that “harmful materials” be displayed in such a way that minors cannot view them, such as creating a separate room accessible to only those 18 years or older, or covering the material so that the harmful portion cannot be seen by minors. It will be the responsibility of the establishment and each employee to ascertain the age of any minor accessing the harmful material. The penalty for violating this ordinance will result in the imposition of a forfeiture of not less than $100 and not more than $500. Each day of violation is considered a separate offense. CC: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services Wald Klimczyk, City Attorney Tim Wellnitz, Assistant City Attorney 4 ORDINANCE NO. 2009-430 An Ordinance regulating the display of material harmful to minors within the City of Janesville, with a penalty for violation thereof as set forth in proposed JGO 9.23.030. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. The contents page of Title 9 of the Code of General Ordinances of the City of Janesville is hereby amended to read as follows: “Title 9 PUBLIC PEACE, MORALS AND WELFARE* Chapters: I. OFFENSES BY OR AGAINST PUBLIC OFFICERS AND GOVERNMENT 9.03 Fire Department Regulations 9.06 Advertising on Government Buses II. OFFENSES AGAINST THE PERSON III. OFFENSES AGAINST PUBLIC DECENCY 9.08 Obstructing or Resisting an Officer 9.15 Disorderly Houses 9.18 Gambling 9.21 Indecent Exposure 9.23 Display of Material Harmful to Minors 9.27 Spitting IV. OFFENSES AGAINST PUBLIC PEACE 9.30 Drug Houses and Criminal Gang Houses Prostitution Houses and Gambling Houses Prohibited 9.32 Chronic Nuisance Premises 9.34 Burglar alarms, Systems and Users 9.39 Disorderly Conduct 9.42 Disturbing the Peace 9.45 Mob action and Civil Disobedience 9.50 Curfew Ordinance 9.52 Truancy; Contributing to Truancy 9.54 Purchase or Possession of Cigarettes or Tobacco Products by Children ________________________ * For statutory provisions concerning criminal activities, see Wis. Stat. §66.0107. V. OFFENSES AGAINST PROPERTY 9.57 Cemetery Hours 9.60 Care and Use of Public Property 9.66 Property Offenses 9.68 Worthless Checks VI. CONSUMER PROTECTION 9.72 Drug Samples VII. OFFENSES BY OR AGAINST MINORS VIII. WEAPONS 9.84 Concealed Weapons 9.87 Firearms” SECTION II. Chapter 9.23 of the Code of General Ordinances of the City of Janesville is hereby created to read as follows: “CHAPTER 9.32 DISPLAY OF MATERIALS HARMFUL TO MINORS 9.23.010 Definitions A. “Harmful to minors” means that quality of any description or representation, in whatever form, of nudity, or sexual conduct when it: 1. Predominantly appeals to the prurient, shameful, or morbid interests of minors in sex. 2. Is patently offensive to contemporary standards in the adult community as a whole with respect to what is suitable sexual material for minors. 3. Taken as a whole, lacks serious literary, artistic, political, or scientific value. B. “Knowingly” means having general knowledge of, or reason to know, or a belief, or ground for belief which warrants further inspection or inquiry of both: 1. The character and content of any material which is reasonably susceptible of examination; and 2. The age of the minor. C.. “Material” means any book, cassette, magazine, motion picture film, newspaper, pamphlet, poster, print, picture, slide, figure, image, description, record, recording tape, or video tape. D. “Minor” means any person under the age of 18 years. E. “Nudity” means: the intentional or knowing showing or revealing of a human bare buttocks, anus, perineum, anal region, anal or natal cleft or cleavage, pubic area, male genitals, testicle, female genitals, vulva, female nipple, female areola, or female breast below the point immediately above the top of the areola, whether or not in a state of sexual stimulation or arousal, with less than a fully opaque covering; or the showing or revealing of human male genitals in a discernible erect or turgid state, even if completely and opaquely covered. F. “Person” means any individual, partnership, association, corporation, or other legal entity of any kind. G. “Sexual conduct” includes any of the following depicted sexual conduct: 1. Any act of sexual intercourse, actual or simulated, including genital, anal- genital, or oral-genital intercourse, whether between human beings or between a human being and an animal. 2. Sadomasochistic abuse meaning flagellation or torture by or upon a person who is nude or clad in undergarments or in a revealing costume, or the condition of being fettered, bound, or otherwise physically restricted on the part of one so clothed. 3. Masturbation or lewd exhibitions of the genitals, including, but not limited to, any explicit, close-up representation of a human genital organ. 4. Physical contact or simulated physical contact with the clothed or unclothed pubic areas or buttocks of a human male or female or the breasts of the female, whether alone or between members of the same or opposite sex, or between humans and animals in an act of apparent sexual stimulation or gratification. 5. An act of sexual assault where physical violence or drugs are employed to overcome the will of, or to achieve the consent of, a person to an act of sexual conduct, and the effects or results of the violence or drugs are shown. 9.23.020 Prohibition No person having custody, control, or supervision of any commercial establishment may knowingly display any material whose cover, covers, or packaging, standing alone, is harmful to minors, in such a way that minors, as part of the invited general public, will be exposed to view the material or in such a way that the material is easily visible from a public thoroughfare or sidewalk. A person shall not be deemed to have displayed material harmful to minors if those portions of the cover, covers, or packaging containing such material harmful to minors are blocked from view by an opaque screen, border, or cover. An honest mistake regarding the age of a minor shall constitute an excuse from liability if the defendant made a reasonable bona fide attempt to ascertain the true age of the minor. A person shall not be deemed to have displayed material harmful to minors if the defendant had reasonable cause to believe that the minor had attained the age of 18 years, and the minor exhibited to the defendant a driver’s license, state issued identification card or other official or apparently official document purporting to establish that the minor had attained the age of 18 years. A defendant who raises this affirmative defense has the burden of proving this defense by a preponderance of the evidence. 9.23.030 Penalty Any person who violates any provision of this ordinance shall, upon conviction, forfeit not less than $100 and more than $500, together with the costs of prosecution, for each offense, or, in default of payment, may be imprisoned in the county jail for not more than thirty days. Each day in which a violation continues shall constitute a separate and distinct offense.” ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Perrotto Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Councilmember Steeber Prepared by: Assistant Operations Director and Assistant City Attorney LEISURE SERVICES DEPARTMENT MEMORANDUM April 17, 2009 TO: City Council FROM: Rebecca Smith, Management Assistant SUBJECT: Action on a Proposed Resolution Authorizing the City Manager to Execute a Lease with Janesville Youth Baseball, Inc. for the Operations of the Batting Cages (File Resolution #2009-593) Summary In 2008 the City of Janesville acquired the property located at 937 S. Jackson Street. This property was previously the home of Swinger’s batting cages and the acquisition included the batting facilities. Following the acquisition the City entered into a one-year lease with Janesville Youth Baseball to operate the batting cages. The purpose of this memo is to provide an update on the financial impact of the lease with Janesville Youth Baseball for 2008 and review leasing options for 2009. Staff recommends the Council adopt File Resolution #2009-593 to continue batting cage services by JYB at 937 S. Jackson Street. At the April 13 Council meeting, the Council chose to table the resolution until the April 24 meeting due to concerns with the contract terms. Specifically, they questioned whether JYB would be willing to pay the City 5% of their gross revenue, in addition to paying for utilities, supplies, equipment maintenance and facility administration. JYB will not agree to the 5% gross revenue term. Request Janesville Youth Baseball, Inc. (JYB) requests the City renew their batting cage lease for 2009. Recommendation Staff recommends the City Council adopt File Resolution #2009-593 to authorize the City Manager to execute an operating lease with Janesville Youth Baseball, Inc. for the batting cage facility at 937 S. Jackson Street. Suggested Motion I move the Council approve File Resolution #2009-593 to authorize the City Manager to execute an operating lease with Janesville Youth Baseball, Inc. for the batting cage facility at 937 S. Jackson Street. City Manager Recommendation At the initial discussion, the City had the gross revenues that were projected, but not the anticipated expenses. After reviewing the anticipated expenses along with the fact of the initial partnership in building the batting cage, I encourage the City Council to approve the proposed contract. Background In April 2008, the City purchased a batting cage facility located at 937 S. Jackson Street (previously referred to as “Swinger’s”). The original plan for this acquisition was to hold it as public open space or future redevelopment of the South Jackson Street corridor. Following the acquisition, the City entered into a lease agreement with Janesville Youth Baseball for the operation of the batting cage facility. The purpose of this partnership was to provide an outlet for batting cages services in the City, while allowing JYB to generate revenue for their Youth Sports Complex expansion and the City to offset its annual expenses for the property. The City’s expenses in 2008 were $5,283.71, while the revenue received totaled $2,354; therefore, the City lost $2,929.71 through this lease agreement, primarily due to facility and equipment repairs, supplies and utilities. 2009 Lease JYB would like to renew their lease for the 2009 season. Initially, JYB desired the same terms and conditions as 2008. When staff performed analysis to understand the fiscal impact of the lease under this scenario, a loss of about $4,200 was calculated. When staff shared concerns with JYB about executing a lease that is projecting a loss at this amount, JYB became amenable to other options to make the terms more favorable to the City’s general fund budget. After the April 13 Council meeting, staff shared the Council’s inquiry with JYB and asked if they would agree to paying the City 5% of their gross revenue, in addition to paying for utilities, supplies, equipment maintenance and facility administration. They would not agree to the 5% gross revenue term. After discussing the JYB concerns, the City Manager was comfortable with bringing the original proposal back to Council for further discussion. Contract Terms The contract would be for a one year lease and allow for a renewal each year until April 2012. The City would pay property insurance, mow and pick up trash. The City would also be responsible for any property repair. JYB would be required to have liability insurance and would need to receive permission from staff prior to doing any improvements to the facility. JYB would be responsible for utilities, supplies and equipment maintenance. JYB would not pay any percentage of annual gross revenue to the City. JYB expects to earn $19,640.56 in gross revenue in 2009 (a 25% increase in comparison to 2008). They project their expenses to be $17,714 in 2009, taking into consideration JYB’s responsibilities for utilities, supplies and equipment maintenance, as outlined in the attached contract. 2 The City’s costs under this contract scenario would be for property insurance and any required building repairs; however, these costs would be the responsibility of the City whether we execute a lease with JYB or not. Projected 2009 Expenses Utilities$ - Insurance50 Supplies0 Equipment Maintenance0 Staff time100 Repairs Contingency1000 Expenses$ 1,150 Projected 2009 Revenue 5% of gross JYB revenue$ - Total Revenue$ - Total Profit/(Loss)$ (1,150.00) Analysis Leasing the batting cages to JYB has many positive attributes, including providing batting cage services to the public that would not otherwise be available; providing JYB an additional opportunity to earn revenue for their expansion plans at the Youth Sports Complex, thus benefitting the community at large; and furthering the City’s partnership with JYB. Leasing the batting cages After the 2008 season, the City desired contract changes because a projected loss of about $4200 was calculated. While they are not willing to agree to the Council’s request for 5% of gross revenue, they did agree to several other changes and are taking on more financial responsibilities in the attached 2009 lease in comparison to their 2008 lease. Pros and Cons Pros: 1. Projected loss/cost is low in this scenario 2. If facility repairs are not needed, the City’s costs would be negligible Cons: 1. Provides the City less oversight in equipment maintenance repair and supply purchases 2. Any future supplies purchased would be owned by JYB, not the City Cc: Jay Winzenz, Administrative Services Director 3 Resolution # 2009-593 A Resolution Authorizing the City Manager to Execute a Lease with Janesville Youth Baseball, Inc. to Operate the Batting Cages at 937 S. Jackson Street WHEREAS, the City of Janesville owns the property at 937 S. Jackson Street, Janesville, otherwise known as the Batting Cages, and WHEREAS, the batting cage property includes an outdoor batting cage facility with lights and six pitching stations, a building used for facility operations and a parking lot, and WHEREAS, Janesville Youth Baseball, Inc., a non-profit organization, is interested in executing a lease with the City of Janesville for the operations the batting cages as a public recreational facility for the City of Janesville, and WHEREAS, such lease contract, terms and conditions are permitted by law and the Common Council is empowered to enter into such lease contract, pursuant to section 62.11(5) and 62.22, Wisconsin Statutes, and WHEREAS, it is in the best interest of the City of Janesville, the community and surrounding area to execute and enter into a lease with Janesville Youth baseball, Inc. for the operations of the batting cages, NOW THEREFORE BE IT RESOLVED by the Common Council of the City of Janesville that it hereby authorizes the City Manager or his representative to execute and enter into, on behalf of the City of Janesville, a lease contract to operate the batting cages at 937 S. Jackson Street, Janesville, Wisconsin, BE IT FURTHER RESOLVED by the Common Council that the City Manager or his representative is hereby authorized to negotiate, renew, extend, and execute such documents, papers, agreements, and forms, to take whatever other actions, and to make whatever minor changes to the lease contract and such documents, papers, agreements, and forms as the City Manager or his representative may, from time to time, find necessary, desirable and/or beneficial to effectuate the lease contract and/or the intent of this resolution on the City’s behalf. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Leisure Services Prepared by: Management Assistant LEASE AGREEMENT BETWEEN THE CITY OF JANESVILLE AND JANESVILLE YOUTH BASEBALL, INC. AGREEMENTCITY OF JANESVILLE This is made by and between the , a Wisconsin Municipal Corporation, hereinafter referred to as the “City”, and JANESVILLE YOUTH BASEBALL, INC ., a non-profit organization, hereinafter referred to as “JYB”. WHEREAS , the City is the owner of the Batting Cages at 937 S. Jackson Street, Janesville, Wisconsin, and WHEREAS , the City is interested in leasing the operations of the batting cages to a qualified organization, and WHEREAS , JYB desires to lease this facility from the City, and WHEREAS , it is in the best interest of the City and its residents to promote the use of the batting cages, and WHEREAS , the Janesville Common Council authorized the leasing of this facility to JYB through their approval of File Resolution #2009-593 on April 27, 2009, NOW, THEREFORE , in consideration of the fulfillment of the obligations of both IT IS MUTUALLY AGREED parties hereinafter set forth, as follows: Premises 1.: The City exclusively leases to JYB for the term and conditions hereinafter set forth, those premises situated in the City of Janesville, County of Rock, State of Wisconsin, known as the Batting Cages and located at 937 S. Jackson Street. Term 2.: The term of this lease shall be for one (1) year, or portion thereof, beginning on April 28, 2009 and ending on April 30, 2010. There shall be an option for the continued annual renewal of this lease for a period of four (3) total years and concluding on April 30, 2012. At that time, the parties may agree to update the lease if appropriate. The JYB shall notify the City of their intent to lease or not lease the batting cages for the next year by January 1 of the following year. Rent 3.: JYB will not be required to pay rent to the City due to their responsibilities for utilities, supplies and equipment maintenance at the facility. Use of the Facility 4.: JYB agrees to use the premises for baseball and softball pitching and batting services and other activities as are normally carried out at such recreational facilities. JYB and all employees, volunteers and agents will comply with all codes, ordinances and policies of the City as they may affect the use of public property. Hours and Season of Operation 5.: JYB shall submit to the City for review their recommended hours of operation. JYB has the right to modify the hours open (days and time) at their discretion based on weather conditions, special promotions or other seasonal variations. JYB may also determine, at their discretion, the opening and closing date(s) of this facility. Assignment and Subleasing 6.: JYB shall not mortgage, hypothecate, pledge or otherwise encumber or assign the lease herein created; neither shall JYB sublet or sublease the leased premises in whole or in part. City Responsibilities 7.: the City shall throughout the term of this lease, at its own expense, be responsible for the following activities and associated costs: a)The City will pay for all grounds maintenance to include grass mowing, trimming trees and bushes, weed spraying and snow removal. b)The City will provide keys and padlocks to the building and batting cages. c)Property insurance through the State Insurance Fund. JYB Responsibilities 8.: JYB shall throughout the term of this lease, at its own expense, be responsible for the following activities and associated costs: a)JYB will pay for all utilities to include electrical, water, storm sewer, sanitary sewer and fire protection (no telephone or cable TV). b)JYB will pay for any supplies necessary to manage the batting cages, such as token or balls. c)Wages and fringe benefits for all JYB employees. JYB is an independent contractor and none of its employees, members, officers, agents or representatives shall be considered employees, agents or representatives of the City. The City shall not be liable for and worker’s compensation, insurance, payments or negligence on the part of JYB resulting from either personal or property damage to any person. d)Cost for liability and workers compensation insurance. e)Wisconsin State sales tax on appropriate income categories. f)Site signage for the batting cage business. g)Maintain a reasonably clean and orderly site free of trash and litter. JYB will advise the City in a timely fashion of any major mechanical problems or equipment failures which need attention. h)Have each participant sign a waiver of liability statement. i)Shall collect all fees and in no way shall the City be responsible for collecting any fees, or in any way be responsible for management or oversight of the operation. 2 j)JYB shall employ competent and courteous employees and staff the facility with the appropriate number of employees to maintain good customer service. k)JYB may establish reasonable rules and procedures. l)JYB is responsible for securing any an all licenses and permits which may be required by any agency or governmental body. m)Secure the building and property at the close of the business day. Equipment Repairs and Maintenance 9.: JYB will be responsible for the day to day operation, maintenance and repairs of premises to include the mechanical pitching equipment. JYB will also be responsible for major mechanical failures and breakdowns of the pitching equipment. Depending on the circumstances, JYB reserves the right to not repair equipment which is at the end of its life expectancy or if replacement parts are not available. The buildings and equipment, and any and parts thereof, which are the property of the City shall remain the property of the City and upon the expiration or termination of this agreement, JYB shall surrender possession of said premises and equipment to the City in as good or better condition as when first occupied by JYB, fair wear and tear considered. Any additional equipment purchased by JYB, such as a pitching machine, shall remain the property of JYB. Insurance 10.: JYB shall obtain, at its own expense, comprehensive general liability including bodily and property damage coverage of at least $2,000,000 each person ; $2,000,000 each occurrence and $3,000,000 aggregate naming the City and JYB as insured under JYB’s policy. Such insurance shall cover all activities in and about the leased premises and shall indemnify and save harmless the City from and against all losses, costs (including attorney fees), damages, expenses and liability (including statutory liability), in connection with claims for damages as a result of injury or death of any person or property damage to any property which may arise from any act or neglect on or about the leased premises by JYB and all other persons. JYB shall furnish the City with a certificate of insurance evidencing the coverage as defined above. JYB shall insure all of their employees in accordance with the law in the State of Wisconsin. JYB shall provide statutory coverage for work related injuries and with limits of $1,000,000 each accident, $1,000,000 disease policy limit, and $1,000,000 disease each employee. JYB shall take such actions as necessary to protect the health, safety and welfare of the public. JYB shall provide a thirty (30) day notice of cancellation for the City in the event of cancellation, non-renewal or reduction of coverage. Miscellaneous 11.: a)JYB shall obtain the City’s permission before making any major improvements or upgrades to the facility infrastructure. b)JYB shall not unlawfully discriminate upon the basis of race, gender, color, national origin, creed or disability against any person wishing to utilize the premises for its stated purpose. 3 c)The City and any of its employees, officers, agents and representatives may enter upon and remain upon the premises at any time and without prior notice to JYB for authorized purposes and activities. d)This lease may be terminated, modified or amended at any time upon the mutual agreement of the parties hereto. Termination of agreement shall require 30 day advance notice. e)This agreement shall be enforced, pursuant to the laws of the State of Wisconsin. f)JYB agrees to sign an inventory list of equipment and supplies to include balls, bats, batting helmets, etc. and said list shall become a part of this agreement. Contact Parties 12.: FOR THE CITY: Rebecca Smith Management Assistant 18 N. Jackson Street P. O. Box 5005 Janesville, WI 53547-5005 608/755-3104 FOR THE JYB: David Ellis, President 532 Somerset Drive Janesville, WI 53546 608/754-2949 IN WITNESS WHEREOF , the parties have executed this lease agreement, pursuant to authority duly granted, on this ___ day of _______________, 2009. City of Janesville Janesville Youth Baseball, Inc. By: ____________________________ By: _______________________ Eric J. Levitt, City Manager Dave Ellis, President By: ____________________________ By: _______________________ Jean A. Wulf, City Clerk-Treasurer Witness Approved as to form. City Attorney March 26, 2009 _____________ 4 DEPARTMENT OF PUBLIC WORKS MEMORANDUM April 17, 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: Award of Bid Schedule “C” – 2009 Contract 2009-9, Landfill Scale Replacement Summary The City Council considered award of Bids for Public Works Bid Schedule “C” – 2009 at the April 13, 2009 Council Meeting. At that time, staff recommended postponing action on Contract 2009-9, Landfill Scale Replacement due to concerns raised by Fairbanks Scale, who was not the low bidder. Attached is a memo from Larry Buetzer, Assistant Engineering Manager, responding to concerns raised by Fairbanks Scale. Recommendation Following Review by the Council, the Engineering Division recommends awarding contract 2009-9, Landfill Scale Replacement to the low bidder and express our intent to include $90,000 in the 2009 Note. Suggested Motion Move to award contract 2009-9, Landfill Scale Replacement to the low bidder and express our intent to include $90,000 in the 2009 Note. Background This project replaces the existing scale at the landfill which is 25 years old and has reached the end of its useful life. Funding for this project will be included in the proposed 2009 Note Issue ($90,000) which covers the scale replacement contract and miscellaneous materials furnished by the City. We opened four (4) bids for this project with United Scale and Engineering providing the low bid. The Engineering Division is recommending award of the contract to United Scale and Engineering of Madison, Wisconsin, in the amount of $76,602. This includes the base bid and the alternate bid to upgrade from a 10-foot wide to an 11-foot wide scale system. Attachment cc: Eric Levitt Jacob J. Winzenz j:\agenda review\approved agenda items\2009\4-27-2009\contract c2009-9 (landfill scale) memo.doc ENGINEERING DIVISION MEMORANDUM 15 April 2009 TO: Mike Payne, Engineering Manager FROM: Larry Buetzer, Assistant Engineering Manager SUBJECT: RESPONSE TO FAIRBANKS SCALE E-MAIL CONCERNING CONTRACT 2009-9, LANDFILL TRUCK SCALE I have read the e-mail sent by Don Klister, the sales representative for Fairbanks Scale, concerning the low bid of United Scale & Engineering Corporation. The City appreciated the assistance of Fairbanks Scale in preparing the bid plans and specifications for the project. Fairbanks is correct, their equipment has been in use for 25 years at the Landfill as a pit-type scale. I was the Engineer for that project. At that time, I recommended a pit-type scale over a pitless-type scale because pitless scales were in their infancy and I felt had some improvements to the design necessary for a good, functioning system. The Fairbanks pit-type system has served us well, but improvements in the pitless type scale make that a more cost effective and user friendly system today. The City’s system of prequalifying contractors, and in this case prequalifying equipment suppliers, provided for approving the four bidders who used three different equipment suppliers, including Fairbanks, BTEK and Rice Lake. Following is a summary of bid prices: Item United Gilbank Fairbanks Klobucar Base Bid $77,802 $80,075 $98,488 $103,785 Equipment Supplier BTEK Rice Lake Fairbanks Fairbanks Alternate Bid Add $1,071 $1,515 $867 *$1,785 11-Ft. Wide Scale Service Agreement $1,500 $3,000 $3,000 $4,250 Cost of Removing of $11,000 $11,000 $14,055 $21,600 Existing Scale *Klobucar used the Rice Lake price for the alternate bid. A review of the bids indicates the Rice Lake scale supplied by Cream City and used by Gilbank was very competitive and is receiving no scrutiny from Fairbanks Scale. During the prequalification process, the City contacted two installations of the BTEK system, including RESPONSE TO FAIRBANKS SCALE E-MAIL CONCERNING CONTRACT 2009-9, LANDFILL TRUCK SCALE 15 APRIL 2009 – PAGE 2. Janesville Recycling, across the street from the Landfill, and Mandt Sandfill from Oregon. Both had acceptable comments about the BTEK system and the installation. I personally had several conversations with Mr. Klister of Fairbanks and indicated the need to prequalify at least three equipment suppliers to get competitive prices for the City. Typically, when the City purchases equipment, three competitive prices are required. In this case, the standards were adjusted from the original Fairbanks to allow three equipment suppliers to propose within the bid process. That is why the equipment suppliers were also part of the prequalification process. The specifications stated all contractors would be notified three days prior to bid of the approved equipment suppliers. That notification was made on Friday, March 20, which was three working days prior to the bid on March 25. In addition, an addendum was issued to all prospective bidders on Monday, March 23, which is two days before the bid and is the City’s standard for issuing addendums prior to bid. All bidders, including Fairbanks, acknowledged receipt of that addendum by fax. Section 11.4, New Scale Installation in the specifications, provides the following language: “Attached at the end of this Division 11 are standard specifications for this manufacturer’s (Fairbanks) scale system. The City will consider other systems of equal quality, but must be approved prior to bidding through the prequalification process.” In addition, the next paragraph states, “The following specifications in this Division 11.4 will take precedence over any of the standard specifications for the Fairbanks Scale system”. This language was included to allow inclusion of other scale systems which I considered equal to or acceptable in order to get three competitive equipment suppliers. Please note one supplier was not approved for inclusion of their equipment as part of this bid process. In response to some specific concerns of Fairbanks, the first issue is cover plates. The original bid did not allow cover plates, but it was my understanding only two suppliers could provide side access; Rice Lake and Fairbanks. In order to get three competitive prices, the BTEK system was allowed but only with stainless steel panels, not regular steel. The addendum included this change to this specification to allow top access panels but only of stainless steel construction. The stainless steel plates will not be in contact with the mild steel since the BTEK scale has a two-coat epoxy primer and one-coat urethane finish coat, plus a silicone sealer at all joints. BTEK has a 10-year warranty on the weigh bridge, more than the 5-year offered by other manufacturers. The BTEK system does allow access from one side of the scale for underneath cleaning. The other side will be set flush to a new retaining wall with a seal so the ability of debris, ice and snow to get under this scale will be less than the Fairbanks system. The underneath of the scale can be satisfactorily cleaned from the one side. J:\Agenda Review\Approved Agenda Items\2009\4-27-2009\Contract C2009-9 (Landfill Scale) Attach.doc RESPONSE TO FAIRBANKS SCALE E-MAIL CONCERNING CONTRACT 2009-9, LANDFILL TRUCK SCALE 15 APRIL 2009 – PAGE 3. The Fairbanks contention of the BTEK scale abutting the existing scale pit side wall is not accurate. The City is requiring shop drawing submittal for review and approval prior to ordering materials, which again is our standard procedure. Once those shop drawings are submitted, it will be confirmed the BTEK system will be against a new retaining wall, not the existing wall of the former scale pit. The Fairbanks contention of the BTEK scale having the most steel plates is not totally accurate. Again, shop drawing review will confirm their submittal will include only cover plates over the load cells, not the entire length of the scale, which is often their standard and is the design used in the installation at Janesville Recycling. It is my understanding the amount of steel area upon this deck will be limited to load cells only. The comment by Fairbanks Scale that, “United Scale (BTEK) has the ability to provide these items in their scale offering but have chosen not to do so”, is not true and will be confirmed during the shop drawing review process. The shop drawing review will require these items or a design of acceptable quality and insure an adequate scale system is installed to provide long-term service. Fairbanks and BTEK have rocker arm load cell design. Fairbanks uses inert gas as a drying agent. BTEK uses a desicant material. Both are effective and both have the same industry standard rating of IP68. Fairbanks has load cells hard wired to the electric connector wires. If a load cell or wiring is damaged, both must be replaced. BTEK has a threaded seal of glass and metal, very good, and a damaged load cell can be replaced without replacing cable, and vice versa, an advantage. Fairbanks has an analog signal from the load cells and uses four moisture-sensitive circuit boards to convert to a digital signal. The BTEK scale has one non-moisture sensitive card, so three less components, which is a simpler, more reliable system, and their load cells read directly in a digital format. The last issue is with the concrete deck. It is true the original spec required a 10” thick deck, which is the Fairbanks standard. The BTEK standard is 8 inches thick and by addendum, the design was changed to allow an 8” thick deck. Two inches of concrete over the I-beams is the minimum cover for outdoor installation. This will be confirmed and adhered to during construction. A close inspection at that time will insure the 2” minimum. All scale decks are designed to be flat, as are the approaches, which is a State requirement. Fairbanks and BTEK slightly crown their decks to promote surface water runoff. The shop drawing review process also requires a submittal of the manufacturer’s deck and wall design showing reinforcing steel. That will be reviewed for approval and acceptance. City inspection will insure proper construction. J:\Agenda Review\Approved Agenda Items\2009\4-27-2009\Contract C2009-9 (Landfill Scale) Attach.doc RESPONSE TO FAIRBANKS SCALE E-MAIL CONCERNING CONTRACT 2009-9, LANDFILL TRUCK SCALE 15 APRIL 2009 – PAGE 4. In summary, I feel everything has been done in conformance with the prequalification process and specifications as bid, and the City has paid particular attention to getting three competitive bids from the three best equipment suppliers on the market. I expect to fully review and make United Scale adhere to the standards set forth in the specification for equipment supplied and its installation. The BTEK system is a very good system. The bid included an extended 5-year service agreement on the scale and United Scale had a better offer for service at $300.00/year as compared to the $600.00/year bid by Fairbanks. With this concern from a competitor in the market, delaying award of Contract 2009-9, Landfill Scale Replacement, for two weeks to respond to questions from Fairbanks Scale is appropriate. LB:sja cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services J:\Agenda Review\Approved Agenda Items\2009\4-27-2009\Contract C2009-9 (Landfill Scale) Attach.doc HUMAN RESOURCES DIVISION MEMORANDUM 13 April 2009 TO: City Council FROM: Leslie A. Bentz, Benefits & Risk Manager SUBJECT: Action on a Proposed Resolution Approving Continuation of Worker Compensation Limited Self-Insurance Program (File Res. No. 2009-586) INTRODUCTION Every three years, political subdivisions that are self-insured for worker’s compensation liabilities are required under Wisconsin Administrative Code DWD 80.60(3) to submit to the Department of Workforce Development (DWD) a resolution passed by the governing body that authorizes continued participation in the self-insurance program. The City has been self-funded for Worker’s Compensation insurance since 1988. Self-funding for Worker’s Compensation insurance is a lower cost option for the City versus purchasing a fully insured policy. Premium rates for fully insured products can run very high, and given the number of claims the City has, it makes more sense financially to be self insured. Currently, City and Villages Mutual Insurance Company (CVMIC) administers our worker compensation program. RECOMMENDATION Staff recommends the City Council adopt File Resolution No. 2009-586 at the regularly scheduled meeting on Monday, April 27, 2009. Thank you. Cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services Susan A. Musick, Human Resources Director 1 RESOLUTION NO. 2009-586 A Resolution acknowledging the Common Council’s approval for the Reauthorization of Self-Insurance for Worker’s Compensation. RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF JANESVILLE, WI WHEREAS, the City of Janesville is a qualified political subdivision of the State of Wisconsin and an employer; and WHEREAS, the Wisconsin Worker’s Compensation Act (Act) provides that employers covered by the Act either insure their liability with worker’s compensation insurance carriers authorized to do business in Wisconsin, or be exempted (self-insured) from insuring liabilities with a carrier and thereby assuming the responsibility for its own worker’s compensation risk and payment; and WHEREAS, the State and its political subdivisions may self-insure worker’s compensation without a special order from the Department of Workforce Development (Department) if they agree to report faithfully all compensable injuries and agree to comply with the Act and rules of the Department; and WHEREAS, the Common Council of the City of Janesville at their April 27, 2009 meeting approved the continuation of the self-insured worker’s compensation program, in compliance with Wisconsin Administrative Code DWD 80.60(3); and WHEREAS, the Common Council hereby find that this Reauthorization is in the best interest of and benefit to the City, its residents, and taxpayers. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville as follows: 1. Each of the above recitals is reiterated and incorporated herein as if fully set forth verbatim. 2. The City Administration shall provide for the continuation of the self-insured worker’s compensation program that is currently in effect. 3. The City’s Benefits and Risk Manager, and authorized others, is authorized to forward City Clerk-Treasurer certified photocopies of this Resolution to the Worker’s Compensation Division, Wisconsin Department of Workforce Development. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Perrotto Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Benefits and Risk Manager Prepared by: Benefits and Rick Manager and City Attorney DUM ACCOUNTING DIVISION MEMORAN April 17, 2009 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Action to Authorize the City Manager to File a Water Rate Increase with the Public Service Commission Executive Summary The proposed 2009 Water Utility budget included a recommendation to adjust rates. This increase is necessary because of the decrease in water sales, and increase in operating expenses and capital improvements. A utility’s earnings are generally measured by a rate of return on the net utility plant. The resulting customer rates are designed to recover operation and maintenance expense, depreciation expense, taxes, and the rate of return. The rate of return is used for payment of debt principal and interest payments and to fund pay-as-you go equipment replacements and capital improvements In order to maintain the financial integrity of the Water Utility, we have determined that it is necessary to adjust our rate structure by increasing rates 14.75% effective during the third quarter of 2009 (upon issuance of the PSC rate order). These actions will permit the Utility to generate a return of 5.4% on its net investment in plant and infrastructure assets and will generate an additional $881,361 of annual revenue. Recommendation Staff recommends that council authorize the City Manager to file a 14.75% rate increase with the PSC. Suggested Motion Move to authorize the City Manager to file a water rate increase with the Public Service Commission (PSC). City Manager Recommendation After reviewing the background information, I recommend that the City Council proceed with authorizing staff to file the rate increase. The City would remain the third lowest rate out of our peer cities with the increase. Background In 2007, the Water Utility was granted a rate increase, which was intended to permit the Utility to earn a 6.0% rate of return on its net plant investment. 1 Although 6.0% was authorized, the Water Utility’s actual rate of return was 4.28% in 2008. Furthermore, without a rate adjustment, a 2.3% rate of return is projected for 2009. This situation would restrict the Utility’s ability to finance future capital improvements and meet our current debt service requirements. Since the 2007 rate case was prepared, operating expenses have increased 9.5%, primarily due to increases in economic adjustments ($276,645), cost of chemicals ($39,500), and depreciation ($90,612). During this same period, sales of water have decreased by 12.6%. The loss of water sales is due primarily to the shut down of the General Motors plant. General Motors constituted about 9% of the annual water sales or 6% of the total water revenues (in 2008 this amounted to 343 million gallons and $362,192). The table below shows the Utility’s rate of return, water sales, and operating income for 2007 rate study through 2009. The data reported for 2009 does not reflect the proposed rate increase. Staff will request that the rate of return authorized by the PSC drop from 6.0% to 5.4%. This rate of return will minimize the impact of the rate increase to the customer, while still provide adequate revenue for debt service and capital improvements. JANESVILLE WATER UTILITY RATE INDICATORS 2007 2007 2008 2009 Rate Study Actual Actual Projected Authorized Rate of Return 6.00% 6.00% 6.00% 5.40% Incurred Rate of Return 4.68% 4.28% 2.30% Water Sales (Million CCF) 5.03 4.73 4.39 4.40 Operating Revenue $6,556,910 $5,915,168 $6,048,253 $6,090,625 Operating Expenses $4,965,051 $4,800,678 $4,940,239 $5,434,385 Operating Income $1,591,859 $1,114,490 $1,108,018 $ 656,240 The City of Janesville is also eligible for a Simplified Rate Increase which would allow the City to implement a portion of the required rate increase more quickly. The City would be eligible for a 3.8% increase effective 45 days after the application was filed with the PSC. This would increase the average residential bill by $1.52 per quarter. Staff recommends against filing the Simplified Rate Increase because it doesn’t generate sufficient revenue to meet the Utility’s financial requirements and would need to be followed shortly by another rate increase of about 11%. 2 Analysis Currently, the average residential customer’s quarterly water bill is $40.00, which consists of a $35.10 charge for water and $4.90 for public fire protection. The following table compares our current average water bill to that of our peer cities. WATER RATE 2008 PEER CITY COMPARISON TOTAL PUBLIC FIRE GRAND CITY WATER/QTR PROTECTION/QTR TOTAL Fond du Lac $125.00 $14.10 $139.10 Appleton $114.75 $14.31 $129.06 Oshkosh $100.25 $5.50 $105.75 Racine $52.00 $18.00 $70.00 Green Bay $62.00 $7.20 $69.20 Waukesha $55.97 $11.79 $67.76 Wausau $56.00 $8.70 $64.70 Beloit $50.90 $11.94 $62.84 Kenosha $50.75 $7.35 $58.10 Eau Claire $48.35 $9.46 $57.81 Manitowoc $43.70 $8.40 $52.10 Sheboygan $34.25 $6.30 $40.55 La Crosse $35.25 NC $35.25 Janesville (Current Rates) $35.10 $4.90 $40.00 AVERAGE PEER CITY $63.78 $11.19 $74.97 Janesville (Proposed Rates) $40.28 $5.62 $45.90 (Based on average residential quarterly consumption of 2,500 cubic feet and a 5/8 inch meter) When compared to our peer cities, our current rates are very reasonable. As a part of the rate review process, the Wisconsin Public Service Commission will prepare a cost of service study that determines the actual rate structure. The proposed rates listed in the table above assume the 14.75% increase will apply to the average residential customer, or $5.90 per quarter. City staff plans to request the PSC implement a water conservation rate structure which will help mitigate the rate increase impact to our low volume residential customers. Please find attached a comparison of our average residential quarterly bill, including both the water and wastewater charges, to that of our peer cities (Attachment I). Cc: Eric J. Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services Daniel L. Lynch, Director of Utilities 3 DEPARTMENT OF PUBLIC WORKS MEMORANDUM April 17, 2009 TO: City Council FROM: Daniel L. Lynch, PE, Utility Director SUBJECT: Action on Proposed Resolutions Authorizing the City Manager to Proceed with Improvements to the Water Utility and to Apply for a Wisconsin Safe Drinking Water Fund Loan and Authorizing Interfund Borrowing to Provide Interim Funding (File Resolution Nos. 2009-600 and 2009-601) Summary The City of Janesville has experienced residential growth to the northeast. This growth has increased the demand on the water distribution system resulting in unacceptable water pressure fluctuations. Independent engineering firms evaluating this problem have each concluded that additional water storage is presently needed on the City’s east side to support existing demands placed on the water distribution system. This additional storage will reduce the magnitude of the pressure drops on the City’s northeast side during high water demand situations such as those created when water is used to fight fires or when a major water main break occurs. Department Recommendation The Water Utility staff strongly support this project and encourage the City Council to adopt the proposed resolutions. Adoption of these resolutions does not create any additional financial obligation on the part of the City. This project will be before the Council at a future date to acquire a tower site and to authorize construction. Suggested Motion Move to adopt Resolution Numbers 2009-600 and 2009-601 authorizing the City’s application for a low interest loan and providing for interim financing for the proposed Water Utility improvements. City Manager Recommendation The City Manager concurs with the Utility Director’s recommendation based on the existing north zone pressure issues. I believe that supporting this project currently will provide the City the opportunity to seek funding assistance in the event the project continues to proceed forward. Analysis The North Pressure Zone serves about 30,000 people or almost fifty percent of the City’s 63,500 population. Normal water system pressure in the North Pressure Zone is about 60 PSI, but can vary from a low of 45 to over 100PSI. The North Pressure Zone can be divided into three general areas, which are: 1 Population Served (est.) West of the Rock River 5,900 Between the Rock River & the Interstate 17,900 North & East of the Interstate 6,200 Total 30,000 Distribution of water in the North Pressure Zone has been compromised on a number of different occasions resulting in either the complete loss of water system pressure or a major pressure drop in the portion of the North Pressure Zone north and east of the interstate. These events were accompanied by major water system pressure drops (up to 50 psi) in the remainder of this zone east of the Rock River and typically last about four hours. These extreme pressure drops are caused by: major main breaks (three- four in the past five years); failure of the pumping equipment supplying the zone (once in the past five years); or failure of the single river crossing connecting the west side of the zone to the east side (three times in the past five years). An example of the effect an extreme event has is shown on the attached map. As indicated on the map, during an extreme event such as a 16 inch main break, most homes north of highway 14 will experience water system pressure below 20 PSI. This pressure is below the minimum safe water pressure for residential or domestic use (35 PSI) and the minimum residual pressure for fire protection (20 PSI). This means that the water supply serving the residents northeast of the interstate may be compromised by groundwater, chemicals or other liquids being pulled into the distribution system creating a public health risk. In addition, in this part of the City the availability of water to fight fires is greatly reduced or eliminated. Less extreme, but still significant system-wide pressure drops (15 to 20 psi) occur more regularly during the warmer months when maximum hour water demands occur or during emergencies, such as fires, when large volumes of water are used in a short period of time. The North Pressure Zone problems are compounded by the following conditions: 1. East-west water main transmission capacity is limited. Large diameter mains exist on both the east and west sides of the North Pressure Zone; however, they are not connected. Even when the North Zone Reservoir is full, because of its location on the City’s far west end and inadequate east/west transmission capacity, the water cannot be conveyed quickly enough to the east side in high demand situations. 2. There is only a single crossing of the Rock River for the North Pressure Zone. While the river is only three to four hundred feet wide where the main crosses it, damage anywhere along a much larger segment of the main (about 7,000 feet) can take the crossing out of service. In the past five years, the single crossing has been taken out of service three times: twice because it was struck by contractors and once because of material failure. On one occasion both the river crossing and the reservoir were taken out of service. 2 The solution to these problems has been developed by AECOM, a nationally recognized engineering consulting firm that is also preparing the City’s update to the Water System Master Plan. The recommended solution is to construct a 1.5 million gallon water tower on the City’s northeast side and to construct a large diameter water main to connect the existing 24-inch mains on the City’s east and west sides. This project is estimated to cost approximately $7,150,000 and is being advanced at this time to take advantage of the increased federal stimulus funding recently made available. At this time the amount of federal funding available for this project is unknown, but that funding information will be known before the Council is asked to make a decision to proceed with this project. With storage on the west side of the river, well production on the east side, and significant residential populations on both sides, this is a critical situation. Having storage on both sides of the river and reinforcing the water mains between the east and west sides of the North Pressure Zone will greatly reduce the probability that unacceptable drops in distribution system water pressure will occur. The proposed Blackbridge water main and the new tower will help address this problem. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services 3 4 RESOLUTION NO. 2009-600 A Resolution authorizing the City Manager to proceed with certain improvements to the Water Utility and to apply for a Wisconsin Safe Drinking Water Fund Loan WHEREAS, A new water tower and related transmission water mains must be constructed to stabilize the water distribution system on the City’s northeast side; and WHEREAS, the design of a project water tower was included in the 2007 Water Utility Budgets as a Capital Improvement Project; and WHEREAS, the construction of this project is expected to begin in December 2009; and WHEREAS, the City Council intends to fund this project by a combination of funding that includes: funds previously borrowed in 2007 and borrowing or receiving funds in 2009 in the form of a Wisconsin Department of Natural Resources Safe Drinking Water Loan Program low interest loan or grant as outlined in the following table: Project Funding Summary Funding Amount 2007 G.O. Note $400,000 Safe Drinking Water Loan Program (DNR) $6,750,000 Total Project Cost $7,150,000 WHEREAS, the balance of said cost will be eligible for a Wisconsin Department of Natural Resources (WDNR) Safe Drinking Water Loan Program low interest loan or grant which will be repaid by user fees; and WHEREAS, the WDNR has required that an authorized representative be designated by adopted resolution for a Safe Drinking Water Fund Loan Program low interest loan; and WHEREAS, Daniel L. Lynch, P.E., 18, N. Jackson Street, Janesville, Wisconsin 53545, (608) 755- 3115, is the Utility Director of the City of Janesville; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that they hereby approve and authorize the City Administration to take actions necessary to provide funding for the acquisition of land and the design and construction of a 1.5 million gallon water tower and installation of 20 inch and 24 inch diameter transmission water main not to exceed $7,150,000. No funds from sources other than the Notes or the Available Funds identified above are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City for the project, except as permitted by the Internal Revenue Code of 1986. This declaration of official intent is consistent with the budgetary and financial circumstances of the City. The purpose of this Resolution is to satisfy the “official intent requirement” of Treasury Regulation Section 1.150-2; and BE IT FURTHER RESOLVED, by the Common Council of the City of Janesville that the City Manager be authorized to apply to the Wisconsin Department of Natural Resources for a Safe Drinking Water Loan Program low interest loan and that it endorses Daniel L. Lynch as the authorized representative in any actions or for any requirements for a Safe Drinking Water Fund Program low interest loan or grant ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Utility Director Prepared by: Utility Director RESOLUTION NO. 2009-601 A Resolution authorizing interfund borrowing to provide interim funding for the Safe Drinking Water Loan Project and to comply with requirements of the Wisconsin Safe Drinking Water Loan Program WHEREAS, the City of Janesville has prepared an engineering agreement for engineering services for the construction plans and specifications for construction of a water tower for the City of Janesville, in cooperation with AECOM; and WHEREAS, the City of Janesville through its internal engineering department will provide the engineering services for the construction plans and specifications for construction of the water mains for the City of Janesville; and WHEREAS, the City Council intends to fund this project by a combination of funding that includes: funds previously borrowed in 2007 and borrowing or receiving funds in 2009 in the form of a Wisconsin Department of Natural Resources Safe Drinking Water Loan Program low interest loan or grant as outlined in the following table: Project Funding Summary Funding Amount 2007 G.O. Note $400,000 Safe Drinking Water Loan Program (DNR) $6,750,000 Total Project Cost $7,150,000 WHEREAS, the Water Utility will make application for a Wisconsin Safe Drinking Water Loan Program to assist in the financing of the land acquisition, design and construction of such Water Utility improvements including: acquisition of a water tower site for the construction of a 1.5 million gallon water tower and installation of 20 inch diameter transmission water main to connect the tower to the distribution system; and the installation of approximately 12,000 feet of 20 inch and 24 inch diameter transmission water main to connect the existing large diameter water main on the City’s east side to the large diameter water main on the City’s west side; and WHEREAS, the City desires to comply in all respects with the requirements of the Wisconsin Safe Drinking Water Loan Program and to refrain from any financial activity which may be considered impermissible arbitrage; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville that they hereby approve and authorize the City Administration to take actions necessary to provide funding for the acquisition of land and the design and construction of a 1.5 million gallon water tower and installation of 20 inch and 24 inch diameter transmission water main not to exceed $7,150,000. No funds from sources other than the Notes or the Available Funds identified above are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City for the project, except as permitted by the Internal Revenue Code of 1986. This declaration of official intent is consistent with the budgetary and financial circumstances of the City. The purpose of this Resolution is to satisfy the “official intent requirement” of Treasury Regulation Section 1.150-2; and BE IT FURTHER RESOLVED, that the City of Janesville hereby sets forth as its policy compliance with all requirements of the Wisconsin Safe Drinking Water Loan Program so as to avoid impermissible arbitrage in financing and refinancing of the site acquisition, design and construction of thee utility facilities, and otherwise; and BE IT FURTHER RESOLVED, that the City pay for services received from its Engineer prior to the approval of any loan(s) from the Wisconsin Safe Drinking Water Loan Program and that such expenditures be paid from the general funds of the Utility or funds previously borrowed in the City’s 2007 G.O. note; and BE IT FURTHER RESOLVED, that the City has the intent to seek financing and refinancing with the Wisconsin Safe Drinking Water Loan Program to pay $6,750,000 of the expenditures for the site acquisition, design and construction of these Water Utility facilities, all said financing and refinancing to be in compliance with the Wisconsin Safe Drinking Water Loan Program so that the City may be eligible for all monies available under said program; and BE IT FURTHER RESOLVED, that the City may pay for services provided in conjunction with the site acquisition, design and construction of these Water Utility facilities performed by independent contractors which may not be included in billing for engineering services provided by AECOM and seek reimbursement from the Wisconsin Safe Drinking Water Loan Program from the general funds of the Utility; and BE IT FURTHER RESOLVED, that the City has the intent that Safe Drinking Water Loan Program repayments be repaid with the revenues of the City water user charge system. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Utility Director Prepared by: Utility Director NEIGHBORHOOD SERVICES MEMORANDUM April 10, 2009 TO: City Council FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Resolution Establishing the Acquisition Process for Acquiring Properties under the Neighborhood Stabilization Program (File Res. #2009-592) Summary The Neighborhood Services Department has prepared a resolution for City Council consideration, which would stream-line the process for acquiring properties under the Neighborhood Stabilization Program (NSP). Specifically, the resolution recognizes that there are program criteria, which must be met under the NSP grant program. The resolution authorizes staff to negotiate with banks directly without holding a closed session discussion with the Common Council prior to negotiations. Offers to purchase would then be made contingent upon review by the Plan Commission and approval by the City Council in open session. Department Recommendation The Neighborhood Services Department recommends that the Council approve Resolution # 2009-592, which establishes the acquisition process for acquiring properties under the Neighborhood Stabilization Program. Suggested Motion I move to approve file resolution # 2009-592, which establishes the acquisition process for acquiring properties under the Neighborhood Stabilization Program. City Manager recommendation: The City Manager recommends the above approach in order to expedite the purchase of foreclosed properties while staying within the criteria guidelines. Background In January 2009, the City Council authorized staff to apply for a Neighborhood Stabilization Program (NSP) grant through the State of Wisconsin Department of Commerce. This program allows municipalities and qualified non-profit organizations to acquire foreclosed properties for the purpose of rehabilitation, redevelopment, or demolition. The City is awaiting its official notice from the State, however, results of a regional allocation meeting indicate the City will receive about $918,000 in 1 housing funds and $69,000 in administrative funds for this program. This level of funding should allow for the rehabilitation of six single family and rental projects, and the demolition of four structures (2 lots to be donated for redevelopment). The intent of the NSP programs is to move quickly to stabilize neighborhoods that are impacted by the falling values and declining property conditions resulting from an increase in the number of foreclosures. All properties must be identified by September 20, 2010. However, the State will begin monitoring communities for progress within three months and may reallocate funds if sufficient progress is not shown. It is also in the City’s best interest to proceed quickly because funds that are returned to the program (through resale to income eligible houses) can be re-used for up to four years. NSP program criteria require a minimum discount of 15% of a current appraised value. Program criteria also require that a minimum of 30% of the grant dollars be used to benefit individuals at or below 50% of County Median Income ($32,500 for a family of 4). Projects meeting this criterion could include single family rehab or rental rehab The City’s grant application indicates that following additional criteria will be used to evaluate projects: 1. Located within census tracts 3, 4, 6 or 10. (Including the Historic Fourth Ward and Look West Neighborhoods, the area directly east and south of the General Motors Plant, and the area to the north of the downtown. 2. Located within one of two redevelopment sites as identified in the City of th Janesville’s Look West and Old 4 Ward Neighborhood Revitalization Plan. 3. Located along collector, major arterial streets, or minor arterial streets. 4. Located near schools or parks. th 5. Properties identified as poor or fair condition on the 4 Ward and Look West Housing Condition Report (or of similar condition for census tracts 6 & 10). 6. Potential for density reduction. These criteria were developed through communications with the Neighborhood Action Teams, Community Development Authority and City Council. Analysis With the clearly defined evaluation criteria above, the advantages of resolution # 2009-592 include more efficient program administration and quicker approval process. Program administration includes a reduction in management reporting, agenda coordination and City Council review time. A quicker approval process means that the City will be able to make an offer to purchase prior to City Council review of each individual acquisition. For many of these property acquisitions the City will need to move quickly in making an offer to purchase or risk losing the property to other interested parties. 2 The City Council would forgo its opportunity to discuss further negotiating strategy on a property by property basis. However, eliminating the closed session does not commit the City Council to purchase a property at a staff negotiated price because the offer will be contingent upon Plan Commission review and City Council Approval. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services 3 RESOLUTION NO. 2009-592 A RESOLUTION ESTABLISHING THE ACQUISITION PROCESS FOR ACQUIRING PROPERTIES UNDER THE NEIGHBORHOOD STABILIZATION PROGRAM (NSP) WHEREAS , the Housing and Economic Recovery Act (HERA) of 2008 created the Neighborhood Stabilization Program (NSP) to acquire, rehabilitate, demolish, and redevelop foreclosed and abandoned residential properties that might otherwise become sources of abandonment and blight within their communities; and WHEREAS, the City Council approved Resolution No. 2009-571 on January 12, 2009, authorizing staff to submit an application to the Wisconsin Department of Commerce for Neighborhood Stabilization Program (NSP) grant funding; and WHEREAS , the intent of NSP grant funding is to quickly identify foreclosed properties that will be acquired with all properties being identified within 18 months of the State's award from the Department of Housing and Urban Development; and WHEREAS , the NSP program establishes a maximum amount that may be paid to acquire a property based upon its appraised value; and WHEREAS , the current council practice relative to property acquisitions requires a closed session discussion before staff makes an offer to purchase, and before the acquisition is reviewed by the Plan Commission and Common Council in open session; and WHEREAS , the City Council recognizes that grant criteria will determine the negotiation strategy for property acquisitions under the NSP Program. NOW, THEREFORE BE IT RESOLVED by the Common Council of the City of Janesville that it authorizes and directs the Neighborhood Services Director, or her designee, to enter into negotiations on the subject properties without holding closed session discussion; and BE IT FURTHER RESOLVED , by the Common Council that any offer to acquire property will be made contingent upon final approval of the Plan Commission and City Council in open session; and BE IT FURTHER RESOLVED, that the Neighborhood Services Director, and her designee, is hereby authorized to negotiate, draft, prepare, execute, file and modify such other documents, papers and agreements ancillary and/or pertaining thereto and, from time to time, to take and/or make whatever other minor actions and/or minor modifications to the above described agreements as the Neighborhood Services Director and/or her designee may deem necessary and/or desirable to effectuate the purposes of such agreements and the intent of this resolution. ADOPTED: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Perrotto Eric J. Levitt, City Manager McDonald Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Neighborhood Services Director Prepared by: Neighborhood Services Director NEIGHBORHOOD SERVICES MEMORANDUM April 13, 2009 TO: City Council FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Mutual Cooperation Agreement Between the City of Janesville, the City of Beloit, and Rock County Under the Neighborhood Stabilization Program. Summary The State of Wisconsin has expressed a preference for the City of Beloit, County of Rock and City of Janesville to enter into a cooperative agreement for the administration of the Neighborhood Stabilization Program rather than administering three separate agreements. Participation in a cooperative agreement will simplify program monitoring for the State of Wisconsin, and will simplify grant administration for the three participating governmental jurisdictions. Department Recommendation The Neighborhood Services Department recommends that the Council approve the attached Mutual Cooperation Agreement between the City of Beloit, the County of Rock and the City of Janesville for administration of the Neighborhood Stabilization Program. Suggested Motion I move to approve the Mutual Cooperation Agreement between the City of Janesville, the City of Beloit, and Rock County for administration of the Neighborhood Stabilization Program. City Manager Recommendation I recommend approval of this intergovernmental agreement. Background In January 2009, the City Council authorized staff to apply for a Neighborhood Stabilization Program (NSP) grant through the State of Wisconsin Department of Commerce. This program allows municipalities and qualified non-profit organizations to acquire foreclosed properties for the purpose of rehabilitation, redevelopment, or demolition. th During a regional grant allocation meeting on March 24, the State expressed a preference for the City of Beloit, the City of Janesville and the County of Rock to work together as a Consortium. This arrangement is consistent with what the three communities have done with other programs, such as the HOME Program 1 where Janesville is the Representative member and the Lead Hazard Reduction Grant where Rock County administers the grant. These programs are operating well under the consortium format. Under the NSP consortium, the City of Beloit will serve as the Representative Member and shall assume responsibility for ensuring the Consortium’s NSP Program is carried out in compliance with the State and Federal Program. The City of Janesville will continue to be responsible for administering the program within the City of Janesville boundaries. Under the NSP consortium, the City of Janesville will receive 52% of grant funding, the City of Beloit will receive 40% of funding and Rock County will receive 8% of funding. During the allocation meeting, a specific dollar amount was allocated to Rock County and Jefferson County Habitat for Humanity, who were the two non-CDBG Entitlement Communities. The remaining funds were divided among the Entitlement Communities based upon the original HUD formula and distribution for allocating funds. The City is awaiting its official notice from the State, however, results of a regional allocation meeting indicate the City will receive about $918,000 in housing funds and $69,000 in administrative funds for this program. This level of funding should allow for the rehabilitation of six single family and rental projects, and the demolition of four structures (2 lots to be donated for redevelopment). The City of Beloit Common Council is considering action regarding the proposed mutual cooperation agreement at their meeting on April 20, 2009. Analysis Wisconsin State Statutes allow intergovernmental agreements, such as that being proposed here. The City of Beloit and City of Janesville’s plan’s for utilizing Neighborhood Stabilization funds are consistent and should make the cooperative agreement easier to manage. The City of Beloit has staff who are knowledgeable in the CDBG and HOME programs and who have the experience necessary to ensure the consortium program is in compliance with the State and Federal Requirements. The cooperation agreement is consistent with other joint efforts between the City of Beloit, City of Janesville and Rock County. The City of Janesville will continue to be responsible for managing the program within the City limits. Our funding level was determined by the State through the Regional Allocation meeting. Entering into the cooperative agreement will facilitate the sharing of information between the participating jurisdictions, which should in turn simply program administration. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services 2 MUTUAL COOPERATION AGREEMENT UNDER THE NATIONAL NEIGHBORHOOD STABLIZATION PROGRAM Federal Fiscal Years 2009-2013 This agreement entered into among the City of Janesville, a Wisconsin Municipal Corporation, the City of Beloit, a Wisconsin Municipal Corporation, and the County of Rock, a political subdivision of the State of Wisconsin. All collectively referred to herein as the “Consortium” WHEREAS, the Neighborhood Stabilization Program (hereinafter called WNSP Program) is authorized under Title III of Division B of the Housing and Economic Recovery Act (HERA), 2008 (Pub. L. 110-289, approved July 30, 2008) for emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties; and WHEREAS, Section 66.0301 of the Wisconsin Statutes authorizes intergovernmental agreements; and WHEREAS, the parties are mutually developing a plan to utilize the WNSP program; and WHEREAS, the parties have determined that obtaining funds under the WNSP program will increase their ability to redevelop neighborhoods negatively impacted by foreclosures; NOW THEREFORE, for good and valuable consideration the parties do agree and covenant as follows: SECTION 1. DEFINITIONS – a.“Member” The City of Beloit, City of Janesville and the County of Rock - b.“Administrative Member” The Cities of Beloit and Janesville and the County of Rock. – c.“Representative Member” The City of Beloit shall be the Representative Member and shall assume the responsibility for ensuring that the Consortium’s WNSP program is carried out in compliance with the requirements of the WNSP program. SECTION 2. FUNDING Funds for the Consortium will be distributed as follows: a.Forty percent (40%) of the funds shall be reserved for specific activities or projects administered by the City of Beloit. b.Fifty-two percent (52%) of the funds shall be reserved for specific activities or projects administered by the City of Janesville. c.Eight percent (8%) of the funds shall be reserved for specific activities or projects administered by the County of Rock. d.The above allocation of funds will be reexamined and adjust on or about October 1, 2009 of this agreement based on each member’s ability to effectively use the available funding. SECTION 3. ACTIVITIES a.Each member shall cooperate in undertaking, or assist in undertaking, eligible WNSP program activities in compliance with the regulations in the National Stabilization Program authorized under Title III of Division B of the Housing and Economic Recovery Act. b.Each member shall implement affirmative action to further fair housing in their jurisdictions consistent with the requirements of this Program. Such actions may include planning, education and outreach, and enforcement components. SECTION 4. ADMINISTRATION a.The City of Beloit shall be the Representative Member and shall carry out necessary administrative overall responsibilities for the Consortium, with the cooperation of all members , consistent with the WNSP program regulations. The City of Beloit will administer the WNSP program within the municipal boundaries of the City of Beloit. b.The City of Janesville will administer the WNSP program within the municipal boundaries of the City of Janesville. c.The County of Rock will administer the WNSP program within the County of Rock excluding the Cities of Janesville and Beloit. d.Each Administrative Member shall submit in a timely manner to the Representative Member all information necessary for participation in the Consortium. This includes, but is not limited to, written agreements executed with subrecipients, and performance reports. e.Each Administrative Member of the Consortium shall start its WNSP program years on January 1 except in 2009 where the WNSP program year shall begin upon the date of execution of this agreement. SECTION 5. AMENDMENT, WAIVER No amendment or waiver of any provisions of this Agreement shall be effective unless the same shall be in writing, approved and signed by the legal authority of the Administrative Members. 2 SECTION 6. ENTIRE AGREEMENT This Agreement embodies the entire agreement and understanding of the parties hereto with respect to the subject matter herein and supersedes all prior agreements and understandings of the parties hereto relating to the subject matter herein. SECTION 7. CONFLICTING AGREEMENT In case of any conflict between this Agreement and any other document, this Agreement shall control. SECTION 8. ARBITRATION In the event that the parties are unable to agree with respect to any action to be taken pursuant to this Agreement, and or any matter or issue arising under this Agreement, then any of the parties may elect to submit the issue to arbitration in accordance with Chapter 788, Wisconsin Statutes. Each party will be responsible for their own costs for legal representation. Any costs for the arbitrator involved in said arbitration will be borne equally by the parties involved, regardless of the final determination. SECTION 9. LIMITATION OF LIABILITY None of the parties to this Agreement shall be liable to the other parties for any action or failure to act or any error of judgment, negligence, mistakes, or oversight whatsoever on the part of such party or such party’s agents, officers, or employees with respect to any transaction relating to the Agreement, provided that such party has acted in good faith and has not been guilty of gross negligence or willful misconduct. SECTION 10. COMPLIANCE WITH ANTI-DISCRIMINATION LAWS The WNSP grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing regulations. SECTION 11. COMPLIANCE WITH LEAD-BASED PAINT PROCEEDURES The activities concerning lead-based paint will comply with all applicable laws, regulations, and ordinances. SECTION 12. DURATION OF THIS AGREEMENT This Agreement, approved this _________day of _______________, 2009, shall be in force for the time necessary to complete WNSP activities funded from federal fiscal years 2008, 2009, 2010, 2011, 2012, and 2013. It shall terminate when all WNSP Program funds for said years are expended or are permanently withdrawn by the U.S. Department of Housing and Urban 3 Development. The members shall remain in the Consortium and not end their participation in it until the time of termination. The undersigned represent that they are fully authorized under State and local law to enter this agreement and that the Agreement provides full legal authority for the signatory parties to undertake or assist in undertaking WNSP Consortium activities. CITY OF JANESVILLE By: Eric Levitt, City Manager Date By: __________________________________________ Jean Wulf, City Clerk-Treasurer Date Approved as to form: By: 4/20/09 Wald Klimczyk, City Attorney Date CITY OF BELOIT By: Larry N. Arft, City Manager Date By: __________________________________________ Carol Alexander, City Clerk, WCPC/CMC Date By: __________________________________________ Paul York, City Comptroller Date Approved as to form: By: Thomas Casper, City Attorney Date COUNTY OF ROCK By: J. Russell Podzilni, County Board Chair Date By: __________________________________________ Lori Stottler, Clerk Date 4 Approved as to form: By: Jeffrey Kuglitsch, Corporation Counsel Date 5 POLICE DEPARTMENT MEMORANDUM April 14, 2009 TO: City Council FROM: Steven J. Kopp, Deputy Chief of Police SUBJECT: COPS Secure Our Schools Grant Program Executive Summary The police department, in partnership with the School District of Janesville, is eligible to apply for a grant to obtain equipment related to school safety and security. Staff Recommendation Police administration recommends applying for the Secure Our Schools grant to provide funding for the School District of Janesville to obtain two-way radios and other school safety equipment and supplies. City Manager Recommendation I recommend approval. The matching funds are intended to be provided by the School District. Background The COPS Secure Our Schools (SOS) grant provides funding to local governments to assist with the development of school safety resources. This funding allows recipients the opportunity to establish and enhance a variety of school safety equipment and/or programs to encourage the continuation and enhancement of school safety efforts within the community. The SOS grant is two years in duration and provides a maximum federal share of $500,000. Agencies are required to submit a local cash match of 50 percent towards the total cost of the approved grant project during the grant award period. The police department has a strong partnership with the School District of Janesville. This partnership provides officers in the five secondary schools, and we jointly participate in a number of crime prevention and community outreach activities. The police department assists the school district in the administration of the Readiness and Emergency Management for Schools (REMS) grant which has provided funding for planning activities, and the training of school staff and community partners. As a result of a school safety survey conducted by nationally-known experts, enhanced communication equipment has been identified as a priority equipment item. 1 The school district seeks funding for 120 two-way radios, as well as first aid and other supplies to equip “Grab and Go” kits in each school building. The total funding request for these items is $40,000, with $20,000 provided by the grant and $20,000 by local match provided by the school district. The police department must apply for the SOS grant. If awarded the grant, once the funds are received the police department would purchase the requested equipment items. The police department will then invoice the school district to receive the 50 percent cash match. With the exception of some staff time, there will be no additional budget costs to the Janesville Police Department. Current staff will administer the grant, including ordering the equipment, filing required reports, and communicating with the business office at the school district. cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 2 CITY MANAGER’S MEMORANDUM April 22, 2009 TO: City Council FROM: Eric J. Levitt, City Manager SUBJECT: Committee Appointment Attached is a listing of Council President Truman’s proposed Councilmember committee appointments. Council please approve. Please let Council President Bill Truman know if you have questions or comments. Thank you. 2009/2010 COMMITTEES, COMMISSIONS, BOARDS AND AUTHORITY APPOINTMENTS MADE BY COUNCIL PRESIDENT COUNCILMEMBER ALCOHOL LICENSE ADVISORY COMMITTEE Rashkin Term: 1 Year CABLE ADVISORY COMMITTEE Truman Term: 1 Year COMMUNITY DEVELOPMENT AUTHORITY McDonald Term: 1 Year Steeber DOWNTOWN DEVELOPMENT ALLIANCE Brunner Term: 1 Year Voskuil LEISURE SERVICES ADVISORY COMMITTEE Truman Term: 1 Year PLAN COMMISSION Perrotto Term: 1 Year Voskuil RENAISSANCE PARTNERSHIP Brunner Term: 1 Year SUSTAINABLE JANESVILLE COMMITTEE Perrotto Term: 1 Year TIF DISTRICT REPRESENTATIVE Steeber Term: 1 Year TRANSPORTATION COMMITTEE McDonald Term: 1 Year JANESVILLE TRANSIT SYSTEM MEMORANDUM April 16, 2009 TO: City Council FROM: Transit Director Proposal for Reduced Price Purchase of Bus Tokens by Private Non- SUBJECT: Profit Agencies – (Ordinance 2009-433). Executive Summary: On March 9, 2009, the City Council directed the Administration to delay the implementation of a proposed increase in transit fares and develop a program that would allow certain private non-profit agencies in the community to purchase Janesville Transit System bus tokens at a discount for redistribution to low income citizens. While the Council’s direction was general in nature, the following program parameters were established: 1. The total number of tokens available for sale at the reduced rate would not exceed 5,000 on an annual basis; or as adjusted by the City as part of the annual budget process. 2. The cost, on a per token basis, would be not less than one half of the prevailing cash fare, or the amount established by the Transit System for those customers qualifying for transportation at “half fare”. 3. Agencies purchasing tokens at the reduced rate would enter into an agreement with the Transit System to purchase a minimum amount of tokens at full price during a calendar year, which would allow them to qualify for the reduced rate program. Bus fares on the Janesville Transit System are set by City Ordinance. Ordinance 2009- 433 has been prepared for Council review and adoption to institute this reduced fare program; with an accompanying policy statement which describes the program parameters for participating agencies. Recommendation: The Transit System recommends that after discussion, the Council adopt Ordinance 2009 – 433, establishing the Reduced Price Purchase of Bus Tokens by Private Non- Profit Agencies, to be effective as of June 1, 2009. Suggested Motion: I move the adoption of Ordinance 2009-433, an ordinance revising the regular bus fare rates for the Janesville Transit System. City Manager Recommendation: The City Manager supports Neighborhood Services and Transit’s proposed pilot program of distributing up to 5000 tokens to not-for-profits for 50% of cost as outlined in the attached Program description. 1 Request: The review of the Transit Fare increase and consideration for a discounted fare program was requested by then Council President Loasching and City residents Tim Cullen and Larry Barton. The concept of their proposal was to “provide a reduced City of Janesville bus token purchase price to charitable organizations, thereby making public transportation more affordable for the needy, with increased bus usage and revenue for the city”. They suggested that recognized charitable organizations be given the right to purchase bus tokens in bulk for the reduced price of $175 for units of 500 tokens, or a cost of $0.35 per ride. The current price of these tokens would be $1.00 each or $500.00. The proposal amounted to a 65% fare reduction. Charitable organizations receiving reduced cost tokens could be required to commit to purchase a certain dollar amount or quantity of tokens each year or portion of the year to assure the City of a base amount of revenue from this program . Analysis: Staff considered 2 primary options to address the concerns of affordable transportation. 1. Repeal the July 2009 planned fare increase.At its March 9 meeting, the Council directed the Administration to delay the proposed fare increase scheduled for July 1, 2009 indefinitely; with any increase to be reconsidered as part of the review of the proposed 2010 Transit System budget. 2. Implement a pilot program whereby a limited number of tokens (i.e. 5,000) would be available for non-profit organizations at a reduced cost. Also at the th March 9 meeting, the Council directed the Administration to develop a program to sell reduced fare bus tokens in bulk purchases to non-profit charitable organizations, subject to certain parameters. This decision carries with it certain advantages and disadvantages: The advantages of this option include: a. Providing additional tokens to low income individuals which will increase their mobility to access jobs, job training and services in the community; b. Reduced cost tokens may provide some financial relief to non-profit organizations who are struggling with shrinking budgets and increasing demands; and have to choose among giving rent assistance, food assistance and transportation with limited budgets; and c. The tokens provided under this program may be targeted to address specific needs (i.e. employment, education, health care). The disadvantages of this option include: a. The program would be accessed by a limited number of participating agencies rather than being spread across all low-moderate income riders. 2 b. The number of non-profit agencies anticipated to request the tokens and the amount of their request may significantly exceed the tokens available, leading to demands for program expansion; c. Current Transit customers who are managing to pay the regular fare may shift from paying those fares to discounted fares through the non-profits, resulting in a net loss of revenue and an increase in cost to the General Fund, which ultimately must make –up the difference; d. A new program would be created, which would add an additional administrative responsibility to already stretched staff. In response to the Council’s direction, staff created a program allowing the sales of bus tokens at reduced rates to private non-profit agencies, subject to certain procedural requirements. These are outlined in the attached policy. This policy is intended to achieve the Council’s direction of increasing the availability of transportation services for specified purposes to those citizens most in need and least likely to be able to pay the regular bus fare; and to enable non-profit agencies to stretch their budgets for transportation services by allowing them to purchase JTS tokens at reduced rates for distribution to their clients. As proposed, the program also minimizes the City’s exposure to revenue loss from offering the discount by requiring agencies to purchase a minimum number of tokens at the regular rate before qualifying to purchase the reduced rate tokens; ensuring a “maintenance of effort” on the agencies part at the current rates while allowing them to assist additional citizens through the purchase of reduced fare tokens. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services/Assistant City Manager Jennifer Petruzzello, Director of Neighborhood Services 3 JANESVILLE TRANSIT SYSTEM Agency Token Sales Policy 1. Background: At its meeting on March 9, 2009, the Janesville City Council directed the Administration to develop a program that would allow certain public and private non-profit agencies in the community to purchase Janesville Transit System bus tokens at a discount for redistribution to low income citizens. While the Council’s direction was general in nature, the following program parameters were established: a. The total number of tokens available for sale at the reduced rate would not exceed 5,000 on an annual basis; or as adjusted by the City as part of the annual budget process. b. The cost, on a per token basis, would be not less than one half of the prevailing cash fare, or the amount established by the Transit System for those customers qualifying for transportation at “half fare”. c. Agencies purchasing tokens at the reduced rate would enter into an agreement with the Transit System agreeing to purchase a minimum amount of tokens at that rate during a calendar year. 2. Structure of Proposed Program: Given the general direction of the City Council and an understanding of the intent of the program, the following policies and operational procedures are recommended to implement the reduced fare Agency Token Sales program. a. Eligible Agencies: Agencies participating in this program shall be limited to charitable non-profit non-stock agencies or charitable non-profit non-stock organizationsoperating under Section 501c(3), and other sections as may apply, of the Internal Revenue Service Code; for distribution to their clients; and the agency and/or organization fully satisfies and complies with certain certification procedures established and amended, from time to time, by the Transit Director and/or her/his authorized representative(s), as a condition of eligibility to purchase said tokens at a discount. Eligible agencies shall be those whose programs include access to employment, (jobs, job training, job interviews), access to health care (medical, dental, eye care and mental health care), education (elementary, secondary and post-secondary), and access to support programs for children and families. b. Eligible Participants to Receive Reduced Fare Tokens: To ensure that reduced-fare tokens are directed to the most crucial trip purposes of those citizens most in need, the following parameters for eligible recipients and trip purposes are established: ? Economic Hardship: Recipients shall be those citizens whose individual or family income is less than the federally-recognized “Very Low Income” level (defined as 50% or less of the median income for Rock County, Wisconsin) as established by the United States Department of Housing and Urban Development as of March 1 of each year. ? Trip Purpose: Usage of reduced-fare tokens shall be restricted to the following trip purposes: Access to employment (jobs, job interviews or job o training.) Access to health care (medical, dental, vision and mental o health care.) Education (elementary, secondary, post-secondary) o Access to support programs for children and/or families. o c. Agency Responsibilities: ? It shall be the responsibility of the agency issuing the tokens to determine if the client to whom the tokens are issued meets the parameters of the program. ? Participating agencies must maintain records to verify eligibility and use of the tokens. Said records will be provided to the Janesville Transit System upon request. ? Should the Transit System detect what appears to be a violation of the program parameters, the agency shall be notified for the purpose of investigating the situation and taking corrective action. d. Token Purchase Agreement: Agencies participating in the program shall agree to the following minimum token purchasepolicy: ? A minimum of 500 tokens shall be purchased at the regular rate as established in Chapter 10.76.020 (C) of the Code of General Ordinances of the City of Janesville (JGO) in a one (1) calendar year period, measured from the date that the agency enters into a contract with the Transit System. ? For each 500 tokens purchased at the regular rate, the agency shall receive warrants to purchase 500 tokens at the reduced rate as established by JGO Chapter 10.76.20 (L). ? Agencies shall purchase tokens from the Transit System in minimum lots of 100 tokens. Agencies shall notify the Transit System not less than 24 hours prior to the desired time to pick up the tokens, which will be issued bagged in 100 token lots. 3. Establishment of Program: This program and the rate of fare associated with it is established by Ordinance 2009-433, adopted by the Janesville City Council on May 11, 2009. ORDINANCE NO. 2009-433 An ordinance revising the regular bus fare rates for the Janesville Transit System, with a penalty as set forth in JGO 10.76.030. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Section 10.76.020 L. of the Code of General Ordinances of the City of Janesville is hereby created to read as follows: 10.76.020 Bus fares—Regular fare rates. “ The regular fare rates that shall be charged by the Janesville Transit System are as follows: L. $.60 per ride based on a bulk purchase charge of $60.00 for 100 tokens, when tokens are purchased by a charitable non-profit non-stock agency or charitable non-profit non-stock organization for distribution to its clients; and the agency and/or organization fully satisfies and complies with certain certification procedures established and amended, from time to time, by the Transit Director and/or her/his authorized representative(s), as a condition of eligibility to purchase said tokens at a discount. When these procedures are not followed, the charge for token purchases shall be as outlined in Sub C., above. This special fare rate shall take effect on June 1, 2009, and shall remain in effect until modified as provided in Section 10.76.010.” ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Perrotto Truman Eric J. Levitt, City Manager Voskuil Brunner ATTEST: McDonald Rashkin Steeber Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: Former Council President Loasching Prepared by: David J. Mumma, Transit Director