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Full Agenda Packet CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA TUESDAY, May 26, 2009 7:00 P.M. 1. Call to Order and Pledge of Allegiance. 2. Roll Call. 3. Minutes of City Council meeting: “C” A.Regular meeting of May 11, 2009. 4. Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) “C” 5. Financial statement for the month of April, 2009. “C” 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. Second reading, public hearing, and action on 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. (File Ord. No. 2009-434) NEW BUSINESS 1. Janesville Patriotic Society presentation regarding moving war memorials. 2. Presentation by Sustainable Janesville Committee. ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. Tuesday, May 26, 2009 City Council Agenda – Page 2 NEW BUSINESS (CONTINUED) 3. Recommendation of the Plan Commission: Action on a proposed resolution approving the final plat of Willow Glade. (File Res. No. 2009-588) A. Waiver of special assessment procedure for special assessments for storm sewer, sidewalk, and street lighting charges for Willow Glade – Jack Willow Investments, LLC. B. Action on a request from Jack Willow Investments, LLC to use a five- year payment plan for Willow Glade development. C. Action on 10 year deferral of special assessments for Jack Willow Investments, LLC and DK Partnership, LLP. 4. Discussion and direction to staff on a proposal from Janesville Youth Hockey to construct a new Ice Skating Center. 5. Award of Contracts C2009-10 (Information Technology server room); C2009- 12 (manhole seals); C2009-13 (Youth Sports site paving and lighting); C2009-14 (water and sewer system improvements); and C2009-15 (ice center renovation). 6. Action on a proposed preliminary resolution for public works bid schedule “E” – 2009 and schedule a public hearing for the final resolution. (File Res. No. 2009-605) 7. Action on a proposed resolution approving a TIF development agreement with and authorizing a TIF development loan to 101 Milwaukee Street, LLC for the renovation of 101 East Milwaukee Street in TIF No. 23. (File Res. No. 2009-607) 8. Action on a proposed resolution acknowledging the review of the Wastewater Utility 2008 Compliance Maintenance Annual Report. (File Res. No. 2009-606) 9. Matters not on the Agenda. Tuesday, May 26, 2009 City Council Agenda – Page 3 NEW BUSINESS (CONTINUED) 10. Consideration of one or more motions to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(e) for the purpose of deliberating or negotiating the lease of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session, specifically setting the negotiating and bargaining terms and conditions for potential TIF 26 with possible boundary amendment(s). PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN REGULAR MEETING MAY 11, 2009 VOL. 60 NO. 3 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on May 11, 2009. The meeting was called to order by Council President Truman at 7:00 PM. Council President Truman led the Council in the Pledge of Allegiance. Present: Council President Truman, Councilmembers Brunner, McDonald, Perrotto, Rashkin, Steeber, and Voskuil. CONSENT AGENDA Minutes of the regular meeting of April 27, 2009. Minutes of the closed session of April 27, 2009. Licenses and Recommendations of the Alcohol License Advisory Committee, including an appeal of the denial of a Temporary Class B License by Independent Order of Odd Fellows. Authorization for the Administration to accept a liability claim from State Farm Insurance (Daniel and April Halbach) in the amount of $5,250. Council President Truman stated the alcohol license applications for Corvina’s, Wisconsin Hockey Partners (WHP) and Independent Order of the Odd Fellows would be removed from the consent agenda and the remaining items would be approved if there were no objections. There were none. Amir Sharife, representing Corvina’s, addressed the Council about the operations of the tavern. Councilmembers Brunner and Steeber stated that they are placed on notice that the Council is aware of the problems at this location and steps should be taken to resolve them. Councilmember Steeber moved to approve the said license, seconded by Councilmember Voskuil and passed unanimously. Bill McCoshin, representing WHP, addressed the Council about the proposed alcohol operations at the Ice Arena. Councilmember Steeber moved to approve said license, seconded by Councilmember Rashkin. Council President Truman offered a friendly amendment to allow alcohol south of the warming room door only and to restrict alcohol from the bleachers center section. Council President Truman withdrew his friendly amendment and offered another friendly amendment to allow beer anywhere in the rink except the warming room. The friendly amendment was accepted by the maker and seconder. The Council voted on the main motion, as amended, and it passed by the following vote: Aye: Rashkin, Steeber, Truman, and Voskuil. Nay: Brunner, McDonald, and Perrotto. Michael Salzman, representing Independent Order of Odd Fellows, addressed the Council about the Temporary Class B License. Councilmember Rashkin moved to approve said license, seconded by Councilmember Steeber and passed by the following vote: Aye: McDonald, Perrotto, Rashkin, Steeber, Truman, and Voskuil. Nay: Brunner. Action on a proposed resolution recognizing the week of May 17 as “Emergency Medical Services Week.” Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. Councilmember Voskuil presented a plaque of the resolution to Matt Simpson. (File Res. No. 2009-604) Action on a proposed resolution recognizing the week of May 17-23, 2009 as “National Public Works Week.” Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Brunner and passed unanimously. Councilmember Voskuil presented a plaque of the resolution to Len Nelson. (File Res. No. 2009-599) OLD BUSINESS 1. Requests and comments from the public regarding items on the agenda not requiring a public hearing. Michael Gilbertson, 10 S. High St., David Stone and Eric Schwartz, representing SARA Inv., Christine Moore, representing Janesville Design and Development Center, and Karl Dommershausen, 103 S. Jackson St., spoke in support of the downtown parking structure (New Business Item #4). Alfred Lembrich, 541 Miller Av., spoke against the downtown parking structure. Kelley Kaiser, 2307 Plymouth Av., spoke in favor of establishing an Ice Rink Advisory Committee and suggested that non-residents be allowed on the committee. (New Business Item #12). 2. Requests and comments from the public on matters which can be affected by Council action. None. 3. A proposed ordinance amending transit bus fare rates for the Janesville Transit System with a penalty as set forth in JGO 10.76.030 received its second reading and public hearing. No one spoke. The public hearing was closed. Councilmember Rashkin moved to adopt said ordinance, seconded by Councilmember Voskuil and passed unanimously. (File Ord. No. 2009-433) 4. A proposed ordinance regulating the display of material harmful to minors within the City of Janesville received its second reading and public hearing. Marc McCrory, representing Spencer Gifts, spoke against said ordinance and requested this matter be postponed. The public hearing was closed. Councilmember Steeber moved to adopt said ordinance, seconded by Councilmember McDonald and failed by the following vote: Aye: Brunner, McDonald, and Steeber. Nay: Perrotto, Rashkin, Truman, and Voskuil. (File Ord. No. 2009-430) 5. Action on a proposed resolution re-approving the project plan for and establishing the boundaries for Tax Increment Finance District No. 34 at the Southern Wisconsin Regional Airport. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Voskuil and passed unanimously. (File Res. No. 2009-596) NEW BUSINESS 1. Recommendation of the Plan Commission: A proposed resolution approving the final plat of Afton Reserve. Councilmember Voskuil moved to adopt said resolution, seconded by Councilmember Steeber and passed by the following vote: Aye: Brunner, Perrotto, Rashkin, Steeber, Truman, and Voskuil. Nay: McDonald. (File Res. No. 2008-598) 2. Action on a financial gain request from the Independent Order of Odd Fellows to conduct “Rock n’ Thunder” at the Youth Sports Complex on July 2 – 4, 2009. Councilmember Voskuil moved to approve said financial gain request, seconded by Councilmember Steeber and passed unanimously. 3. Review and approval of an economic development grant for Red Robin International, owner of Red Robin Restaurant, located at 2430 Humes Road. Councilmember Steeber moved to approve said grant, seconded by Councilmember Rashkin and passed by the following vote: Aye: Brunner, Perrotto, Rashkin, Steeber, Truman, and Voskuil. Nay: McDonald. 4. Review of and Council direction concerning a downtown parking structure project. Councilmember Perrotto requested that the bids include a recommendation for using local laborers. Councilmember Brunner moved to move forward with the downtown parking structure project, seconded by Councilmember Steeber and passed unanimously. 5. Discussion and action on a proposal to construct a new salt storage facility at the City Services Center. Councilmember McDonald moved to approve said proposal as submitted to construct a new salt storage facility at the City Services Center, seconded by Councilmember Steeber and passed unanimously. 6. Award of Contracts C2009-10 (City Hall remodel – Information Technology server room) and C2009-11 (water system improvements) for Public Works Bid Schedule “D”-2009. Councilmember Rashkin moved award Contract C2009-11 to R.T. Fox Contractors, Inc., for $566,755 and to include funding in the 2009 Note Issue, seconded by Councilmember Steeber and passed unanimously. Council President Truman postponed action on Contract C2009-10 until May 26, 2009. 7. Reject bids for Neighborhood Services Bid Schedule “D”-2009, Contract 2009-A (rehabilitation of 189 South High Street). Councilmember Rashkin moved to reject all bids for said contract, seconded by Councilmember Steeber and passed unanimously. Council President Truman combined New Business Items #8 and #9: 8. Action on a proposed resolution dissolving Tax Incremental Finance District No. 7. (File Res. No. 2009-602) 9. Action on a proposed resolution dissolving Tax Incremental Finance District No. 15. (File Res. No. 2009-603) Councilmember Steeber moved to adopt said resolutions, seconded by Councilmember Voskuil and passed unanimously. 10. A proposed charter ordinance amending the appointment provisions of the Plan Commission, Board of Review, Library Board, and Zoning Board of Appeals and creating a charter ordinance for the Community Development Authority to require appointments to be made by the Common Council following consultation with the Citizens Advisory Committee on Appointments in amended Sections 2.20.010, 2.24.010, 2.28.010, 2.58.020, and newly created Chapter 2.26, was introduced and scheduled for public hearing on June 22, 2009. (File Charter Ord. No. 2009-007) 11. A proposed ordinance rezoning property located at 120 North Crosby Avenue from O1, Office/Residence District, to B3, General Commercial, was introduced, referred to Plan Commission, and scheduled for public hearing on June 8, 2009. (File Ord. No. 2009-437) 12. Consideration of forming an Ice Rink Advisory Committee. Councilmember Brunner moved to re-establish the Ice Rink Advisory Committee, seconded by Councilmember Voskuil and passed unanimously. By majority consensus, the Council requested information allowing non-residents to be on City committees. 13. Matters not on the agenda. Councilmember Brunner commented on the precautionary water boil order and asked if customers with filters needed to change their filter. City Manager Levitt stated the City does not have a recommendation and individuals should contact the filter manufacturers for their recommendation. City Manager Levitt advised that the Rock County Emergency Management Director and Health Director would be at the June 8, 2009 Council meeting to discuss Emergency Management Preparedness. Councilmember Rashkin wished his th daughter Isabelle a happy 8 birthday. Councilmember Perrotto suggested citizens contact their legislators to support Assembly Bill 149, which would reduce the interest rate from 1.0% to 0.5% per month on delinquent property taxes. Council President Truman stated a local pharmacy contacted him and expressed their concern that City employees’ maintenance prescriptions were being outsourced to a mail order service. He requested that the City review this situation and allow local pharmacies the opportunity to bid. Councilmember McDonald asked for a status report on Riverside wading pool. Engineering Manager Mike Payne stated they are waiting on approvals from the State and weather and groundwater conditions to improve before they can commence work. 14. Councilmember Steeber moved to convene into closed session, pursuant to Wisconsin Statute Section 19.85(1)(e) for the purpose of deliberating or negotiating the lease of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session, specifically setting the negotiating and bargaining terms and conditions for a potential Ice Arena lease agreement with WHP. Councilmember Voskuil seconded the motion and it passed unanimously. Council convened into closed session at 10:47 PM. 15. Consideration of one or more motions to reconvene into open session, pursuant to Wisconsin Statute Section 19.85(2) to deliberate upon, discuss, and take action upon a proposed or potential lease agreement with WHP for the Janesville Ice Arena, and other related Ice Arena improvement, reconstruction, renovation, repair, maintenance, and operation matters. Council President Truman reconvened the meeting in open session at 11:29 PM. Council President Truman moved to proceed with the original plan to make improvements in the amount of $200,000 and the Council is committed to this project, seconded by Councilmember Steeber and passed by the following vote: Aye: Brunner, McDonald, Rashkin, Steeber, Truman, and Voskuil. Pass: Perrotto. 16. Councilmember Steeber moved to adjourn, seconded by Councilmember Voskuil and passed by the following vote: Aye: Brunner, McDonald, Perrotto, Rashkin, Steeber, Truman, and Voskuil. Nay: Brunner. There being no further business, Council adjourned at 11:51 PM. These minutes are not official until approved by the City Council. Jean Ann Wulf Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA MAY 26, 2009 RECOMMENDED A. ELECTRICIAN – ORIGINAL Stacey L. Friedrich 4356 Hwy. 138, Oregon, WI B. CARNIVAL – ORIGINAL CHIPPEWA VALLEY RIDES PO BOX 162, Chippewa Falls, WI ndth (INDEPENDENT ORDER OF ODD FELLOWS WI LODGE 14, July 2 - July 4) Community Development Department Memorandum May 26, 2009 TO: Janesville City Council FROM: Duane Cherek, Planning Services Manager SUBJECT: Second reading, public hearing, and action on 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 (File Ordinance No. 2009-434). Recommendation The Plan Commission and Community Development Department recommend that following a public hearing, the City Council support a motion to adopt Ordinance No. 2009-434 rezoning a portion of the Southern Wisconsin Regional Airport property from Agricultural 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. City Manager Recommendation The City Manager defers to the Plan Commission. Suggested Motion Move to adopt Ordinance No. 2009-434. Request Scott Heinig, Rock County Planning Director, has requested the rezoning of a portion of property located at the Southern Wisconsin Regional Airport. Rock County owns the Southern Wisconsin Regional Airport, which was annexed to the City of Janesville in June 2007. Approximately 171 acres of airport property located south of existing runways and other operational facilities is developed with the Glen Erin Golf Course. The golf course is currently zoned M1, Light Industrial and A, Agriculture. Rock County is requesting to rezone the golf course to Conservancy to distinguish this land area from the aviation facilities adjoining to the north and recently included in Tax Increment Finance (TIF) District 34. The TIF was created to retain existing and stimulate future development of businesses at the Airport. A small portion of airport property located west of the golf course, zoned Agriculture, is included in the TIF 34 boundary. This area is proposed for M1 zoning consistent with the balance of land at the Airport that is included in TIF 34. Analysis A. In May of 1993, the City of Janesville and Rock County entered into an agreement to provide sewer and water utilities to the Rock County Airport. One of the conditions of that agreement was that the County Board petition to annex the airport lands to the City, and in 1994, the City Council adopted an ordinance to annex the airport property with an effective date of June 30, 2007. The zoning designation of Light Industrial and Agriculture that were applied to the Airport property upon annexation reflect the nature of existing use at the Airport at that time (1994). The area generally south of the Airport access road and north of Happy Hollow Road was undeveloped and considered inappropriate for Airport-related development. As such it was zoned Agriculture; however the County considered a golf course as a potential future use of this area. The balance of the Airport property was zoned M1, Light Industrial. B. Considering that the southernmost portion of the Airport has been developed as a golf course but remains zoned Agriculture, it would be appropriate to apply a zoning designation that corresponds with the property’s current land use. The Conservancy District identifies golf courses as a permitted use for those areas which are designed for long term open space preservation. That portion of the Southern Wisconsin Regional Airport containing approximately 171 acres currently occupied by Glen Erin Golf Course is consistent with the intent of the Conservancy District, as requested by Rock County. The effect of this rezoning will serve to clarify the distinction in land use and zoning at the Airport between this outdoor recreational area and the aviation/operational facilities. Additionally, a small portion of a runway extension area located west of the golf course is currently zoned Agricultural. The County is requesting that this portion of land be zoned M1, Light Industrial to be consistent with the balance of land at the Airport as included within the TIF 34 Boundary. Map 2 identifies both areas proposed for rezoning at the Airport. C. This rezoning is consistent with the future land use map and recently adopted Comprehensive Plan which designates the entire Southern Wisconsin Regional Airport property as appropriate for Community Facilities. Airport and golf course facilities are both compatible activities in this land use designation. PLAN COMMISSION ACTION – MAY Al Hulick, Development Specialist, presented the written staff report. Commissioner Voskuil questioned the property area along Happy Hollow that was left out of this rezoning request. Cantrell stated that this property was under separate ownership and not part of the golf course property. The public hearing was opened and no one appeared to speak on this item. The public hearing was closed. There was a motion by Commissioner Perrotto with a second by Commissioner Voskuil to forward the proposed rezoning to the City Council with a favorable recommendation. The motion carried on a 7-0-0 vote. FISCAL IMPACT The effect of this rezoning will serve to clarify the distinction in land use and zoning classification at the Airport between this outdoor recreational use and the aviation/operational facilities.Considering that the southernmost portion of the Airport has been developed as a golf course for several years, but remains zoned Agriculture, it is appropriate to apply a zoning designation that corresponds with the property’s current land use. This rezoning will have no fiscal impact on the City of Janesville. cc: Brad Cantrell CITY MANAGER’S OFFICE MEMORANDUM May15, 2009 TO: City Council FROM:Rebecca Smith, Management Assistant SUBJECT: Janesville Patriotic Society presentation regarding moving war memorials Request The Janesville Patriotic Society (JPS) asked to come before the City Council on May 26, 2009 to share information about their proposal to move the veterans’ monuments from the Corn Exchange to Traxler Park. Mr. Tom Stehura, President of the Janesville Patriotic Society, will be present at the meeting to share information with the Council. Please find attached a written proposal from JPS. Recommendation The Parks Division is open to this conceptual plan and would welcome the opportunity to work with JPS to develop a more specific plan for future Council review. Suggested Motion I move to allow the Janesville Patriotic Society to move forward with developing a plan for future review by the Council to move the veterans’ monuments from the Corn Exchange to Traxler Park. Community Development Department Memorandum May 1, 2009 TO: Janesville City Council FROM: Duane Cherek, Planning Services Manager SUBJECT: Action on a proposed resolution approving the final plat of Willow Glade (File Resolution No. 2009-588). RECOMMENDATION & SUGGESTED MOTION The Plan Commission and Community Development Department recommend that the City Council support a motion to approve Resolution No. 2009-588 subject to the following conditions: 1. Assessments will be levied for the installation of sidewalk ($12,983.54), storm sewer ($21,599.25), and street light ($5,077.50) improvements. 2. A municipal utility easement must be granted across the adjoining property to the east to serve the plat area with sanitary sewer. A storm sewer and drainage easement must also be granted to the City to convey stormwater runoff across the property to the east. 3. The developer should contact, respectively, the Engineering Department and City Clerk’s Office for information regarding the scheduling of public works improvements and for information on any outstanding taxes, special assessments, or other fees which must be satisfied. REQUEST Jack Willow Investments requests approval of a final plat for Willow Glade subdividing approximately 2.5 acres of land into single-family lots on the City’s north side. The plat is located along Castlemoor Drive north of Stonemoor Drive. The property is currently zoned R1-Single and Two-Family Residence. ANALYSIS A. The applicant proposes to subdivide approximately 2.5 acres of land on the City’s north side into six single-family lots. In the future, Outlot-1 will be further subdivided into single-family residential lots when Castlemoor Drive is extended north and the adjoining land owner proposes to subdivide that property. At that time, transfers of land between the owners will be necessary to create uniform-shaped lots. B. The property is zoned R1 Single and Two-Family Residence. The R1 zone district is consistent with the applicant’s desire to create single-family home lots in this area. Additionally, the final plat complies with the requirements of the Subdivision Ordinance except as otherwise noted in the recommendation section of the report. C. In order to accommodate stormwater run-off created by this development, conveyance of a storm water and drainage easement on adjoining property to the east must be granted. Construction of storm water improvements will be installed by the City within this future greenbelt area. Additionally, a sanitary sewer easement across the adjoining property to the east will be required to serve the plat area with sanitary sewer service. D. In accordance with the City’s sidewalk Ordinance, sidewalks are to be constructed along the Castlemoor Drive frontage of Lots 1-4 and Outlot-1 and along the Willow Run frontage of Lot 5. A note to this affect has been added to the final plat. E. No parkland will be dedicated with this plat since those requirements have been previously satisfied through significant greenbelt dedications in earlier phases of platting activity in this area. However, all future residential development that occurs on the balance of the applicant’s undeveloped landholding will be subject to parkland dedication requirements or payment of monies in lieu of dedication specified under the Subdivision Ordinance. F. Utility, street light, and storm sewer easements, as requested by the Engineering Department and utility companies serving the area, must be included on the final plat. G. The City’s recently adopted Comprehensive Plan identifies this property as appropriate for planned neighborhood development, and is therefore consistent with the applicant’s desire to create five single-family home sites. H. The developer should contact the Engineering Department regarding the scheduling of public works improvements and the City Clerk’s Office regarding any outstanding taxes, assessments, or other fees which must be paid. PLAN COMMISSION ACTION – MARCH 16, 2009 The Plan Commission unanimously agreed to forward the final plat of Willow Glade to the City Council with a favorable recommendation subject to the conditions listed in Section I. cc: Brad Cantrell RESOLUTION NO. 2009-588 A resolution approving the final plat of Willow Glade. WHEREAS , a plat of "Willow Glade", a subdivision lying in the SE.1/4 of the th SE.1/4 and the NE.1/4 of the SE.1/4 of Section *, T.3N., R.13E. of the 4 P.M., City of Janesville, Rock County, Wisconsin, was duly approved by the City Plan Commission on the 16 day of March, 2009, and is incorporated herein by reference; WHEREBY , this certain tract of land is platted into blocks, lots, outlot and streets; NOW THEREFORE BE IT RESOLVED BY THE COMMON COUNCIL of the City of Janesville, Rock County, Wisconsin, that said plat of Willow Glade be and is hereby accepted and approved for the purposes thereon shown. 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: Applicant Prepared by: Community Development Department DEPARTMENT OF PUBLIC WORKS MEMORANDUM ENGINEERING DIVISION April 30, 2009 TO: City Council FROM: Margaret Duerr, Engineering Division SUBJECT: For Council Consent Agenda on May 26, 2009, Waiver of Procedure for Special Assessments for storm sewer, sidewalk and street lighting charges for: Willow Glade - Jack Willow Investments . Staff Recommendation The Engineering Division recommends approving this item along with other consent agenda items. Request Jack Willow Investments requests to waive the special assessment procedure for Subdivision Plat – Willow Glade and allow these assessments the use of the 5-year payment plan. Background The final subdivision plat creating new lots requires payment of land division assessments for storm sewer, sidewalk and street lighting. The storm sewer charges are based upon the rate of $9,290.00 per acre over the entire area of the subdivision. The sidewalk and street light charges are based upon an estimate of installation costs by the Engineering Division. The developer has requested to waive the special assessment procedure. Land division assessments are eligible for use of the 5-year payment plan. Henry Londo of Jack Willow Investments, the developer, has signed the necessary waiver document agreeing to the assessments and allowing the charges to be spread over five years with interest at 7.00% on the unpaid balance. Willow Glade will be presented to the Council on May 26, 2009, with approval of the plat recommended by the Plan Commission. The proposed waiver must be approved before the subdivision plat can be signed and recorded. The following chart shows land division assessment charges: Subdivision Plat Owner/Developer Total Assessments: Willow Glade Jack Willow Investments $39,660.29 Storm Sewer Sidewalk Street Light $21,599.25 $12,983.54 $5,077.50 Jack Willow Investments’ current outstanding assessment balance is $55,020.96 for lots in Heider Estates Second and Third Additions. The cumulative total is $94,681.25. CC: Eric Levitt Jacob J. Winzenz Mike Payne \\petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Willow Glade Waiver Memo.doc DEPARTMENT OF PUBLIC WORKS MEMORANDUM May 15, 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: Consideration and Action on a 5-year Payment Plan for Jack Willow Investments, LLC Summary Council Policy #63 allows developers to place assessments on a 5-year payment plan when approved by the City Council. The Council Policy allows for the cost of infrastructure improvements up to 30 lots to be placed on the 5-year payment plan for residential projects. Jack Willow Investments, LLC has been working with City staff on an extension of Castlemoor Drive for a six lot subdivision plat (Willow Glade) and planning for a future four lot commercial project (Willow Glen) located at STH 26 and McCormick Drive. Jack Willow Investments, LLC has agreed to pay the annual carrying costs for extending sanitary sewer to the project sites for a 10-year period or until the property is subdivided, whichever occurs first. A map of the sanitary sewer extension is attached. Jack Willow Investments, LLC has current outstanding assessments totaling $55,020.96. If the Council authorizes use of the 5-year payment plan for Willow Glade, the total outstanding assessments is estimated to be $204,681.25. Jack Willow Investments, LLC has previous development experience in Janesville with ndrd Heider Estates 2 and 3 Additions. Recommendation Following review by City Council, the Engineering Division recommends extending credit to Jack Willow Investments, LLC in the amount not to exceed $110,000 for the Willow Glade project. City Manager recommendation City Manager recommends approval. Suggested Motion I move to authorize use of the 5-year payment plan for Jack Willow Investments, LLC in the amount not to exceed $110,000 for the Willow Glade project. Request Jack Willow Investements, LLC is requesting use of the 5-year payment plan for a proposed six lot subdivision plat (Willow Glade), to be constructed in 2009. j:\agenda review\approved agenda items\2009\5-26-2009\willow glade 5yr payment plan memo.doc Background The City and Jack Willow Investments, LLC have negotiated a Memorandum of Understanding outlining the requirements and process to construct the public infrastructure for a six lot subdivision project and sanitary sewer extension in 2009. The City Council traditionally considers use of the 5-year payment plan at the time of Contract Award. However, the developer requested the Council review this request at the time of plat approval. Jack Willow Investments, LLC signed the necessary Waiver for land division assessments which are scheduled th for approval as consent agenda items at the May 26 Council Meeting. Below is a summary of assessments: ndrd Heider Estates 2 & 3 Additions (Outstanding) $55,020.96 Willow Glade Land Division (scheduled for approval 5/26/09) $39,660.29 Estimated Improvements-Willow Glade (consideration on 5/26/09) $110,000.00 Total $204,681.25 Upon approval of the 5-year payment plan, the Engineering Division will proceed with design and bidding of the project. The Council will be updated on actual project costs and the amount to be placed on the 5-year payment plan at the time of Contract Award. Attachment cc: Eric Levitt Jacob J. Winzenz j:\agenda review\approved agenda items\2009\5-26-2009\willow glade 5yr payment plan memo.doc DEPARTMENT OF PUBLIC WORKS MEMORANDUM May 15, 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: Consideration and Action on a 10-year non-use deferment for Jack Willow Investments, LLC and DK Partnership, LLP Summary Section IV of Council Policy #63 allows Council to grant 10-year non-use deferments while undeveloped property is used for agricultural puposes. Jack Willow Investments, LLC is moving forward with an extension of Castlemoor Drive for a six lot subdivision plat (Willow Glade) and planning for a future four lot commercial project (Willow Glen) located at STH 26 and McCormick Drive. In order to serve either of these projects, sanitary sewer must be extended through undeveloped land. Jack Willow Investments, LLC has agreed to pay the annual carrying costs for extending sanitary sewer to the project sites for a 10-year period or until the property is subdivided, whichever occurs first. This section of sanitary sewer will be crossing property by two separate owners: Jack Willow Investments, LLC and DK Partnership, LLP. A map of the proposed sanitary sewer extension is attached. Recommendation Following review by City Council, the Engineering Division recommends the Council grant 10-year non-use deferments to Jack Willow Investments, LLC and DK Partnership, LLP for the required sanitary sewer extension to serve Willow Glade subdivision and the future Willow Glen commercial site. City Manager Recommendation I concur with Engineering’s recommendation. Suggested Motion I move to authorize a 10-year non-use deferment to Jack Willow Investments, LLC and DK Partnership, LLP for the required sanitary sewer extension to serve Willow Glade subdivision and the future Willow Glen commercial site. Request Jack Willow Investements, LLC and DK Partnership, LLP are requesting a 10- year non-use deferment for sanitary sewer through undeveloped property south of STH 26. \\petey\cojhome\agenda review\approved agenda items\2009\5-26-2009\willow glade 10yr non-use deferment memo.doc Background The City and Jack Willow Investments, LLC have negotiated a Memorandum of Understanding outlining the requirements and process to construct the public infrastructure for a six lot subdivision project and sanitary sewer extension in 2009. The City Council traditionally considers granting a non-use deferment at the time of levying special assessments and Contract Award. However, the affected property owners requested the Council take action at the time of plat approval for Willow Glade subdivision. Attachment cc: Eric Levitt Jacob J. Winzenz \\petey\cojhome\agenda review\approved agenda items\2009\5-26-2009\willow glade 10yr non-use deferment memo.doc City Manager Memorandum Date: May 19, 2009 TO: Janesville City Council FROM: Eric Levitt, City Manager SUBJECT: Janesville Ice Rink Proposal I. Summary The City of Janesville recently received this attached proposal. II. Recommendation The City Manager does not have a recommendation at this time on the proposal. Although I think there are multiple financial issues that would need to be worked through if the City Council wanted to move forward and discuss the development of a new rink. DEPARTMENT OF PUBLIC WORKS MEMORANDUM May 15, 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: Award of Bid Schedule “D” – 2009 Contract 2009-10, City Hall Remodel (IT Server Room) Award of Bid Schedule “E” – 2009 Contract 2009-12, Manhole Seals Contract 2009-13, Youth Sports Site Paving and Lighting Contract 2009-14, Water and Sewer System Improvements Contract 2009-15, Ice Center Renovation Summary Bids for Contract 2009-10, City Hall Remodel (IT Server Room) were opened April 29, 2009. Bids for Public Works Bid Schedule “E” – 2009, Contracts 2009- 12, -13, -14, & -15 were opened on Wednesday, May 13, 2009. The Engineering Division is recommending award of these contracts to the low bidders, as shown on the attached tabulation of bids, and that the City Council express their intent to include in the 2009 Note Issue $105,108 for manhole seals, $500,000 for Youth Sports Site Paving and Lighting, and $201,500 for the Ice Center Renovation. Funding to relocate the IT Server Room was included in prior years note issues. Recommendation Following Review by the Council, the Engineering Division recommends award of contracts 2009-10, -12, -13, -14, & -15 to the low bidders and that the City Council express their intent to include in the 2009 Note Issue $105,108 for manhole seals, $500,000 for Youth Sports Site Paving and Lighting, and $201,500 for the Ice Center Renovation. City Manager Recommendation The City Manager recommends award of the IT Server Room remodel, the manhole seals, the Youth Sports Site Paving and Lighting, and the Water and Sewer System Improvements. On the Ice Arena, I recommend approval of the base bid and alternates A-2 and M-2 and authorization for asbestos abatement at $2,000 and locker room seats at not to exceed $2,000, skate resistant flooring at $2,500, and authorization for up to a 10% contingency for a total authorization of $201,500. The NAHL team has agreed to perform the painting to save the City $6,071. \\petey\cojhome\agenda review\approved agenda items\2009\5-26-2009\contract award bid schedule e memo.doc Suggested Motion Award contracts 2009-10, -12, -13, -14, & -15 to the low bidders and express our intent to include in the 2009 Note Issue $105,108 for manhole seals, $500,000 for Youth Sports Site Paving and Lighting, and $201,500 for the Ice Center Renovation. Background Contract 2009-10, City Hall Remodel (IT Server Room) This project relocates the existing IT Server Room to the first floor of City Hall adjacent to Leisure Services. The City has been experiencing ongoing problems with the dedicated cooling system, the existing room requires additional electrical capacity, and has physically outgrown the existing location. Funding for this project was included in the 2007 and 2008 Note Issue borrowing. We opened five (5) bids for this project with Gilbank Construction, Inc. providing the low bid. The Engineering Division is recommending award of the base bid and alternate item M1 to Gilbank Construction, Inc., of Clinton, Wisconsin, in the amount of $325,180. Alternate bid item M1 substitutes a glycol based cooling system for a more traditional Freon based system at an additional cost of $36,180. Based upon estimated annual energy savings and a longer life expectancy, the glycol based system has an estimated payback period of eleven (11) to twelve (12) years. Contract 2009-12, Manhole Seals This contract consists of installing internal or external manhole seals where manholes are located in greenbelts or ditches to prevent inflow and infiltration to th the sanitary sewer collection system. This is the 5 year of a 5 year maintenance program to reduce infiltration and inflow in the sanitary sewer system. Funding for this project will be 2009 Note Issue borrowing. We received four bids for this project, with Maddrell Excavating LLC providing the low bid. The Engineering Division is recommending award of this contract to $105,908 Maddrell Excavating LLC of Monroe, Wisconsin in the amount of . Contract 2009-13, Youth Sports Site Paving and Lighting This project installs underground electric and paving for the interior streets and parking areas throughout the Youth Sports site on the east side of Wuthering Hills Drive. This is the second phase of improvements to this portion of the youth Sports Facility. Last Fall, the Council awarded a contract for the site grading, restoration, and limestone base. Funding for this project is held in a Construction Fund designated for improvements at the Youth Sports Facility. This funding consists of $500,000 previously included in the 2008 Note Issue, $500,000 included in the 2009 Note Issue and the remaining amount from the sale of lots developed by the City and abutting the park. The total estimated cost for phases \\petey\cojhome\agenda review\approved agenda items\2009\5-26-2009\contract award bid schedule e memo.doc 1 & 2, including engineering is $1,137,881. The Council previously discussed supporting the Youth Sports project with City funding between $1.3M and $1.4M. We received two (2) bids for this project, with Rock Road Companies, Inc providing the low bid. The Engineering Division is recommending award of this contract to Rock Road Companies, Inc of Janesville, Wisconsin in the amount of $281,278.02. Contract 2009-14, Water and Sewer System Improvements This contract consists of rerouting sewer and water mains for a redevelopment project at W. Court Street and Arch Street for a new Walgreens store. The Developer has paid the City $88,510.92 according to the terms of the project Memorandum of Understanding. This amount covers the project construction costs and includes the following breakdown: contract cost = $69,660, materials supplied by the City = $7,306.02, plus 15% to cover engineering and administrative costs of the project = $11,544.90. We received six (6) bids for this project, with R.T. Fox Contractors, Inc. providing the low bid. The Engineering Division is recommending award of this contract to $69,660 R.T. Fox Contractors, Inc of Edgerton, Wisconsin in the amount of . Contract 2009-15, Ice Center Renovation This contract consists of modifying the Ice Center to accommodate an NAHL team and provide additional improvements to address concerns raised by various user groups. The NAHL team has offered to perform all painting for the project. (the alternate bid item for painting was $6,071). Funding for this project will be 2009 Note Issue borrowing. We received seven (7) bids for this project, with Corporate Contractors providing the low bid. The Engineering Division is recommending award of the base bid plus alternates A-1 and A-2, to Corporate Contractors of Beloit, Wisconsin in the $174,192 amount of . The City of Janesville will coordinate minor asbestos abatement estimated to cost $2,000 and will be purchasing the new skate resistant flooring directly from a local supplier for $2,500. In addition, Engineering recommends a project contingency of $11,308. Attachment cc: Eric Levitt Jacob J. Winzenz \\petey\cojhome\agenda review\approved agenda items\2009\5-26-2009\contract award bid schedule e memo.doc Bid Opening: 29 April 2009 CITY OF JANESVILLE TABULATION OF BIDS PUBLIC WORKS BID SCHEDULE “D” – 2009 2009-10 CITY HALL REMODEL (IT SERVER ROOM) Gilbank Construction, Inc. Bid No. 1: $289,000.00 Clinton, WI Alternate Bid M1: $36,180.00 Alternate Bid E1: $(1,360.00) Corporate Contractors, Inc. Bid No. 1: $293,066.00 Beloit, WI Alternate Bid M1: $34,385.00 Alternate Bid E1: $(900.00) Magill Construction Co., Inc. Bid No. 1: $318,150.00 Elkhorn, WI Alternate Bid M1: $32,700.00 Alternate Bid E1: $(1,000.00) Paulson Kimball Construction LLC Bid No. 1: $324,593.00 Janesville, WI Alternate Bid M1: $33,400.00 Alternate Bid E1: $(900.00) Maas Bros. Construction Co., Inc. Bid No. 1: $320,620.00 Watertown, WI Alternate Bid M1: $38,420.00 Alternate Bid E1: $(1,200.00) 2009-11 WATER SYSTEM IMPROVEMENTS R. T. Fox Contractors, Inc. Total – Part A: $405,675.00 Edgerton, WI Total – Part B: $161,080.00 Total Bid: $566,755.00 Speedway Sand & Gravel, Inc. Total – Part A: $455,556.25 Middleton, WI Total – Part B: $213,954.00 Total Bid: $669,510.25 Globe Contractors, Inc. Total – Part A: $505,165.00 Pewaukee, WI Total – Part B: $239,595.00 Total Bid: $744,760.00 \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Contract Award Attach - Bid Results Bid Schedule D.doc Bid Opening: 13 May 2009 Page 1 of 4 CITY OF JANESVILLE TABULATION OF BIDS PUBLIC WORKS BID SCHEDULE “E” – 2009 2009-12 MANHOLE SEALS Maddrell Excavating, LLC Total Bid: $105,908.00 Monroe, WI Odling Construction, Inc. Total Bid: $110,785.00 Delavan WI E & N Hughes Co., Inc. Total Bid: $126,426.00 Monroe, WI Globe Contractors, Inc. Total Bid: $183,240.00 Pewaukee, WI 2009-13 YOUTH SPORTS SITE PAVING AND LIGHTING Rock Road Companies, Inc. Total Bid: $281,278.02 Janesville, WI Frank Bros., Inc. Total Bid: $300,763.83 Janesville, WI 2009-14 WATER AND SEWER SYSTEM IMPROVEMENTS R. T. Fox Contractors, Inc. Total Bid: $69,660.00 Edgerton, WI Odling Construction, Inc. Total Bid: $71,338.00 Delavan, WI Madison Crushing & Excavating Co., Inc. Total Bid: $77,410.32 Madison, WI Globe Contractors, Inc. Total Bid: $92,252.00 Pewaukee, WI \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Contract Award - Bid Results Bid Schedule E.doc Bid Opening: 13 May 2009 Page 2 of 4 CITY OF JANESVILLE TABULATION OF BIDS PUBLIC WORKS BID SCHEDULE “E” – 2009 2009-14 WATER AND SEWER SYSTEM IMPROVEMENTS (Continued) Outside Plumbing, LLP Total Bid: $106,200.00 Janesville, WI Speedway Sand & Gravel, Inc. Total Bid: $108,114.00 Middleton, WI 2009-15 ICE CENTER RENOVATION Corporate Contractors, Inc. Bid No. 1: $166,847.00 Beloit, WI Alternate A-1: $1,936.00 Alternate A-2: $5,409.00 Alternate A-3: $8,681.00 Alternate A-4: $6,071.00 Alternate M-1: $7,482.00 Alternate M-2: $4,439.00 Magill Construction Co., Inc. Bid No. 1: $167,990.00 Elkhorn, WI Alternate A-1: $2,263.00 Alternate A-2: $6,954.00 Alternate A-3: $2,800.00 Alternate A-4: $4,200.00 Alternate M-1: $8,500.00 Alternate M-2: $5,853.00 Maas Bros. Construction Co., Inc. Bid No. 1: $184,400.00 Watertown, WI Alternate A-1: $2,100.00 Alternate A-2: $7,355.00 Alternate A-3: $8,900.00 Alternate A-4: $5,100.00 Alternate M-1: $8,100.00 Alternate M-2: $5,600.00 \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Contract Award - Bid Results Bid Schedule E.doc Bid Opening: 13 May 2009 Page 3 of 4 CITY OF JANESVILLE TABULATION OF BIDS PUBLIC WORKS BID SCHEDULE “E” – 2009 2009-15 ICE CENTER RENOVATION (Continued) Gilbank Construction, Inc. Bid No. 1: $186,300.00 Clinton, WI Alternate A-1: $830.00 Alternate A-2: $9,300.00 Alternate A-3: $3,900.00 Alternate A-4: $4,600.00 Alternate M-1: $8,200.00 Alternate M-2: $5,800.00 Harmony Construction Management, Inc. Bid No. 1: $187,044.00 Madison, WI Alternate A-1: $1,691.00 Alternate A-2: $7,188.00 Alternate A-3: $10,928.00 Alternate A-4: $5,984.00 Alternate M-1: $9,786.00 Alternate M-2: $7,238.00 Paulson Kimball Construction, LLC Bid No. 1: $195,275.00 Janesville, WI Alternate A-1: $1,950.00 Alternate A-2: $8,450.00 Alternate A-3: $1,550.00 Alternate A-4: $4,060.00 Alternate M-1: $7,558.00 Alternate M-2: $5,350.00 Klobucar Construction Co., Inc. Bid No. 1: $198,600.00 Beloit, WI Alternate A-1: $2,200.00 Alternate A-2: $6,800.00 Alternate A-3: $4,800.00 Alternate A-4: $4,780.00 Alternate M-1: $4,900.00 Alternate M-2: $5,070.00 \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Contract Award - Bid Results Bid Schedule E.doc Bid Opening: 13 May 2009 Page 4 of 4 CITY OF JANESVILLE TABULATION OF BIDS PUBLIC WORKS BID SCHEDULE “E” – 2009 2009-16 N. WASHINGTON/W.MEMORIAL REHABILITATION Frank Bros., Inc. Base Bid: $133,342.50 Janesville, WI Alternate A: $162,692.00 Total Base Plus Alternate A: $296,034.50 Base Bid: $133,342.50 Alternate B: $150,267.60 Total Base Plus Alternate B: $283,610.10 Rock Road Cos., Inc. Base Bid: $120,908.10 Janesville, WI Alternate A: $216,720.00 Total Base Plus Alternate A: $337,628.10 Base Bid: $120,908.10 Alternate B: $216,720.00 Total Base Plus Alternate B: $337,628.10 \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Contract Award - Bid Results Bid Schedule E.doc DEPARTMENT OF PUBLIC WORKS MEMORANDUM 15 May 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: ACTION ON A PROPOSED PRELIMINARY RESOLUTION FOR PUBLIC WORKS BID SCHEDULE “E” – 2009 AND SCHEDULE A PUBLIC HEARING FOR THE FINAL RESOLUTION (FILE RES. NO. 2009-605) ON JUNE 8, 2009 Summary Tuesday, May 26, 2009 is the scheduled time for Council consideration of the attached Preliminary Resolution No. 2009-605 for an assessable project on Bid Schedule “E”- 2009. Included in this Resolution are sewer, water, and curb & gutter related items. By adopting this Preliminary Resolution, the City is declaring its intent to assess the abutting properties benefited by these improvements. Category I includes assessing 20 property owners for intermittent curb and gutter replacement required as part of a street rehabilitation project on N. Washington Street and W. Memorial Drive. Category II includes assessing sanitary sewer and water main for a lot on Milton Avenue that recently redeveloped and annexed into the City. The property has connected to City sewer and water. Recommendation The Engineering Division recommends Preliminary Resolution No. 2008-480 be adopted and the Final Resolution and public hearing be set for Monday, June 8, 2009. Suggested Motion I move to adopt Preliminary Resolution No. 2008-480 and schedule the Final Resolution and public hearing for Monday, June 8, 2009. Attachment cc: Eric Levitt Jacob J. Winzenz \\petey\cojhome\agenda review\approved agenda items\2009\5-26-2009\bid schedule e prelimin res memo.doc PUBLIC WORKS BID SCHEDULE “E” – 2009 26 MAY 2009 RESOLUTION NO. 2009-605 PAGE (1) OF (4) PRELIMINARY RESOLUTION PRELIMINARY RESOLUTION DECLARING INTENT TO EXERCISE SPECIAL ASSESSMENT POWERS UNDER SECTION 66.0703, WISCONSIN STATUTES AND REQUIRING INSTALLATION OF WATER, SEWER, AND GAS SERVICE PIPES AND PROVIDING FOR ASSESSMENT OF COSTS UNDER SECTION 66.0911, WISCONSIN STATUTES; RESOLVED, By the Common Council of the City of Janesville, Wisconsin. 1. The Common Council hereby declares its intention to exercise its power pursuant to S.66.0703 and S.66.0911, Laws of the State of Wisconsin, to levy special assessments on a reasonable basis upon property abutting the following described streets, pursuant to its police powers, by improvement of the said streets to further facilitate traffic flow and safety, and to assist in providing for the safety, health, and general welfare of the public, to-wit: I. STREET REHABILITATION INCLUDING: INTERMITTENT CURB AND GUTTER REPLACEMENT OR RAISING, AND SANITARY, STORM, WATER, AND GAS SERVICE LATERALS IN CONNECTION WITH ASPHALT PAVEMENT RESURFACING All Property Fronting Upon Each Side Of From To W. Memorial Drive N. Washington Street Oakhill Avenue N. Washington Street Highland Avenue 200’ N. of Hamilton Avenue II. SANITARY SEWER, WATER MAIN, AND SEWER AND WATER LATERALS (FOR ASSESSMENT PURPOSES ONLY) All Property Fronting Upon Each Side Of From To Milton Avenue/STH26 1,220’ NE of John Paul Road 1,395’ NE of John Paul Road (NW Side) PUBLIC WORKS BID SCHEDULE “E” – 2009 26 MAY 2009 PRELIMINARY RESOLUTION NO. 2009-605 PAGE (2) OF (4) 2. Said public improvements shall include the above listed improvements on the various listed streets to the grades established therefore by the City Council of the City of Janesville, Wisconsin, and recorded in the Office of the City Clerk whether previously established or established in the future. 3. The property against which the assessments are proposed shall be benefited by the improvements and said assessments shall be made upon a reasonable basis. 4. That the actual levy of the special assessment shall take place at the time of the adoption of the final public works resolution by the Common Council of the City of Janesville concerning these improvements. The property owner(s) in Rock Township against whose property such special assessment shall be levied under and by this Resolution shall have their payment obligation deferred, without interest accruing thereon, until such time as their specific property is annexed or connects to such improvement(s), in which event the special assessment shall be due and payable either in full or in five (5) annual installment payments, the latter with interest accruing thereon from the date of annexation or connection. This method of payment shall be approved and ratified by the Board of the Town of Rock in accord with Section 66.0707 of the Wisconsin Statutes, and such other applicable provisions of law and intergovernmental agreement(s), and shall act, once so ratified by the Rock Town Board, as a levied special assessment against such abutting and/or benefiting properties in the Town of Rock. This levy and special assessment payment provisions are in accord with the City of Janesville/Town of Rock Cooperative Boundary Plan, City of Janesville Common Council Special Assessment Policy No. 63, related pertinent provisions, and the Town of Rock/Janesville Highway 11 Bypass Agreement. The special assessment levy and payments shall be made by the abutting, benefiting and affected property owners in accord with the LaPrairie and Rock Township City of Janesville Highway 11 Bypass Agreement, as well as the Rock/Janesville Cooperative Boundary Plan. This provision applies only to the properties located in the Town of Rock. 5. Excluding the assessment for the installation of sewer and water service pipes (lateral) and the assessment against any parcel owned by an individual property owner may be: (a) paid in cash upon completion of the work; or (b) paid with the taxes the first year following completion of the work; or (c) at the election of the property owner, spread over a period of five (5) years with interest at seven percent (7%) per annum on the unpaid balance. The first installment on the five-year plan shall include one-fifth of the principal with the interest for November and December on the unpaid portion and shall be so entered in the Tax Roll. Each of the subsequent installments shall be entered in each of the annual tax rolls thereafter until all are collected. Deferred payment on the aforementioned installments shall bear interest at seven percent (7%) per annum. The assessments against any parcel for sewer and water service pipes shall constitute a lien against such parcel and must be paid in cash or with the taxes in the year following the completion of the work. The assessments, as outlined above, pertain only to said individual property owners. The assessments against all parcels of land owned by others, which include subdividers, land developers, \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Bid Schedule E Prelim Res 2009-605.doc PUBLIC WORKS BID SCHEDULE “E” – 2009 26 MAY 2009 PRELIMINARY RESOLUTION NO. 2009-605 PAGE (3) OF (4) speculative builders, or owners of several or more lots on the same street or in the same area will be billed upon completion of the work after which interest at seven percent (7%) per annum will be charged from the last day of the month of the billing. The assessments for said other owners may be: (a) paid in cash upon completion of the work in the month of billing without interest; or (b) paid with the taxes the first year following the completion of the work, the amount to be entered in the Tax Roll shall include the unpaid principal with interest through the end of December in the year so entered; or, (c) at the election of the property owner and with the approval of the Committee of Public Works, spread over a period of five (5) years with interest at seven percent (7%) per annum on the unpaid balance. The first installment on the five-year plan shall include one-fifth of the principal with interest through the end of December in the year so entered. Each of the subsequent installments shall be entered on each of the annual tax rolls thereafter until all are collected. Deferred payment on the aforementioned installments shall bear interest at seven percent (7%) per annum. 6. The City Engineer is directed to prepare a report consisting of: a. Final plans and specifications for said improvements, b. An estimate of the entire cost of the proposed improvements, c. A schedule of the proposed assessments, and d. A statement showing that the property against which the assessments are proposed is benefited, the improvement constituting an exercise of police powers. Upon completing such report, the City Engineer is directed to file a copy thereof in the City Clerk's Office for public inspection. The City Engineer is also directed to advertise for bids to carry out such work of such improvements in accordance with the report. 7. Upon receiving the report of the City Engineer, the Clerk is directed to give notice of a Public hearing on such report as specified in S.66.0703(7)(a), Wisconsin Statutes. The hearing shall be held at the Council Chambers in the Municipal Building at a time set by the Clerk, in accordance with S.66.0703(7)(a), Wisconsin Statutes. 8. The City has determined to undertake the capital improvements described in paragraph 1 above (the "Projects"). The City anticipates that moneys, other than the proceeds of any outstanding debt of the City, will be expended by the City with respect to such capital improvements. The City reasonably expects to be reimbursed for such expenditures with proceeds of its debt. The maximum principal amount of debt expected to be issued for the reimbursement of such expenditures is $5,000,000. No funds from sources other than the debt referred to above are, or are expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the City or any entity controlled by the City pursuant to its budget or financial policies with respect to the Projects. This is consistent with the budgetary and financial circumstances of the City. Copies of this resolution shall be made available \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Bid Schedule E Prelim Res 2009-605.doc PUBLIC WORKS BID SCHEDULE “E” – 2009 26 MAY 2009 PRELIMINARY RESOLUTION NO. 2009-605 PAGE (4) OF (4) for public inspection in the manner required by law. This Resolution is a declaration of official intent under Treasury Regulation Section 1.150-2. ADOPTED: MOTION BY: SECOND BY: APPROVED: COUNCILMEMBER AYE NAY PASS ABSENT BRUNNER Eric J. Levitt, City Manager McDONALD ATTEST: PERROTTO RASHKIN Jean Ann Wulf, City Clerk-Treasurer STEEBER TRUMAN APPROVED AS TO FORM: VOSKUIL City Attorney Proposed by: Engineering Division Prepared by: Engineering Division \\Petey\COJHome\Agenda Review\Approved Agenda Items\2009\5-26-2009\Bid Schedule E Prelim Res 2009-605.doc Economic Development Memorandum Date: May 15, 2009 TO: City Council FROM: Doug Venable, Director of Economic Development SUBJECT: Action on a Resolution Approving a TIF Agreement with and Authorizing a TIF Development Loan to 101 Milwaukee Street, LLC for the Renovation of 101 E. Milwaukee St. – TIF No. 23 (File Resolution 2009 – 607). I. Summary 101 Milwaukee Street LLC (“101 LLC”) is a newly formed development company formed by SARA Investments to purchase and renovate the 6-story office building at 101 E. Milwaukee St. in TIF No. 23. To make the $4.5 million project feasible, 101 LLC has asked the City for $860,000 in TIF incentives. Staff has negotiated a TIF Development Agreement with the following key provisions: ? 101 LLC to complete the $4.5 million purchase and renovation of 101 E. Milwaukee St. by December 31, 2009 ? 101 LLC to guarantee total property tax payments ranging from approximately $72,000 in 2010 to $80,000 in 2022. ? City to reimburse 101 LLC for $500,000 of development costs at the end of the renovation project. ? City to loan 101 LLC $360,000 at 4.25% over 10 years to help finance renovation. ? If annual property taxes exceed amount guaranteed by 101 LLC, then excess property tax revenues will be used to pay debt service on $360,000 TIF loan. II. Recommended Action The revitalization of the downtown has been one of the Council’s top priorities. The property at 101 E. Milwaukee St. anchors the Main and Milwaukee intersection and is a key activity generator in the heart of the downtown. Given the downturn in both the local and national economy, it is exciting to have a private developer willing to purchase an underperforming downtown property and to invest several million dollars to create class ‘A’ office space. Staff recommends that the Council adopt file Resolution 2009 – 607 approving the TIF Development Agreement with and authorizing a $360,000 TIF Development Loan to 101 Milwaukee Street, LLC for the renovation of 101 E. Milwaukee St. in TIF No. 23. ??? Economic Development Department Box 5005 Janesville, WI 53547-5005 755-3180 III. City Manager recommendation: The City Manager concurs with the recommendation to approve the TIF development agreement. IV. Background 101 LLC purchased the 6-story, 52,400 SF office building at 101 E. Milwaukee St. for $940,000 million and is undertaking a $3,620,000 renovation of the property. The office building has not had a major renovation since it was constructed in the early 1970’s and the building is currently 70% vacant. 101 LLC plans to replace the HVAC system, replace the single pane windows with new energy efficient 2-pane glazing; replace the roof; install accessible bathrooms on each floor; install sprinklers for fire safety; and replace all interior walls and finishes. The market rents for class “A” office space in downtown Janesville will not support this $4.5 million project. Staff feels that without TIF incentives, the renovation project would not occur and the building would likely continue to lose tenants and property value. V. TIF Analysis Section V. C. of the City Council’s Economic Development Policy (Council Policy No. 61) states: “C. Standards for Incentives The City may use up to fifteen years of projected property taxes from a downtown redevelopment project to provide appropriate development incentives. The development incentives may take the form of selling property for less than its fair market valuation; the implementation of off-site streetscape improvements; the provision of off-street parking spaces; the relocation of existing water, sewer, storm sewer, electric, gas, and telecommunication utilities; reimbursements to the developer for specified redevelopment costs; low/no interest project financing; and site environmental remediation.” Each redevelopment project must be evaluated to determine funding need and the TIF agreement must be structured to meet that need. The 101 LLC project includes the complete renovation of the building at 101 E. Milwaukee St. Owner’s equity and bank financing will cover $3,640,000 of the $4,500,000 project costs, leaving an $860,000 funding gap. When TIF No. 23 was created, 101 E. Milwaukee St. had an equalized property value of $892,100 and paid $20,300 in property taxes. Staff estimates that the after- renovation equalized property value will be approximately $65 per SF or $3.4 million. Since the base value of the property was $892,100, the net increase in property value is estimated at $2.5 million. Upon completion, property taxes will increase to approximately $72,000 in 2011, and continue increasing gradually to $80,000 by 2023 as property value and mill rates increases. The increased property taxes will be captured by TIF No. 23 and used to finance the needed $860,000 developer incentive. Staff has negotiated a TIF incentive package including the reimbursement of $500,000 in renovation costs at the completion of construction. The increased property tax payment will be guaranteed by 101 LLC, and will allow the City to fully recover its investment within 13 years. The remainder of the incentive will be provided as a $360,000 TIF Development loan at the City’s cost of borrowing 4.25% and amortized over 10 years with an annual debt service of $44,939. Under the terms of the TIF Development Loan, if the actual property tax increments from the project exceed projections, the extra property tax incremental revenue will be applied to the annual $44,939 debt service payment. The full TIF loan would be repaid – either through the annual debt service payment made by 101 LLC or through the increased property tax increments generated by the 101 LLC development project. Doug Venable Attachment: Location Map Resolution 2009 - 607 Summary of TIF Development Agreement Cc Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services RESOLUTION 2009 - 607 A Resolution Approving a TIF Development Agreement with and Authorizing a $360,000 TIF Development Loan with 101 Milwaukee Street, LLC for the Renovation of Property at 101 E. Milwaukee St. in TIF No. 23 WHEREAS, the Common Council of the City of Janesville created Tax Incremental Finance District No. 23 on September 9, 2002 in order to stimulate the redevelopment of properties along E. Milwaukee St. and North Parker Drive in downtown Janesville; and WHEREAS, 101 Milwaukee Street, LLC has proposed the $4.5 million purchase and renovation of the property at 101 E. Milwaukee Street (hereinafter the “Project”), and WHEREAS, 101 Milwaukee Street LLC has requested redevelopment assistance to complete this Project consistent with the objectives and proposed expenditures set forth in the Project Plan for TIF District No. 23; and, WHEREAS, the City and 101 Milwaukee Street LLC have negotiated a TIF Development Agreement which is attached hereto and incorporated herein as if fully set forth, and which Agreement sets forth the terms and conditions of City redevelopment assistance including: 1. City reimbursement of $500,000 in renovation costs upon the completion of construction; and 2. City making a $36,000 TIF Development Loan to 101 Milwaukee Street LLC to be repaid by annual debt services payments or increased property tax revenues. WHEREAS, the Common Council of the City of Janesville does hereby find that the proposed TIF Development Agreement and the proposed $360,000 TIF Development Loan are each in the best interest and to the benefit of the citizens of the community and the City; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Janesville approves the TIF Development Agreement with 101 Milwaukee Street LLC and authorizes the City Administration to make a $360,000 TIF Development Loan to 101 Milwaukee Street, LLC according to the terms and conditions as set forth in the TIF Development Agreement; and Resolution 2009 – 607 Page 2 BE IT FURTHER RESOLVED, that the City Manager and his designee(s), on behalf of the City of Janesville, is/are hereby authorized to close upon these transactions, to negotiate, draft, modify, review, execute, enter into, record and/or file any and all documents, papers, forms, and agreements, to take whatever other actions, and to make whatever minor modifications and/or amendments to the TIF Development Agreement, TIF Development Loan, and such other writings and/or this transactions as the City Manager may, from time to time and at any time, determine necessary and/or desirable to effectuate the intent of this Resolution and these transactions. 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: City Manager Prepared by: Economic Development Director Summary of TIF Development Agreement Between City of Janesville and 101 Milwaukee Street, LLC I. Parties A. City of Janesville . the Lender B. 101 Milwaukee Street, LLC, the Developer/Promissor II. Description of Property – 101 E. Milwaukee Street, Tax Parcel 01361-00277) III. Purpose of Agreement A. Stimulate redevelopment in the downtown B. Close Developer/Promissor’s financing gap to allow renovation project to proceed. C. Implement TIF No. 23 Project Plan IV. The Agreement A. The City shall: 1. Reimburse $500,000 in renovation costs upon completion of construction. 2. Loan Developer/Promissor $360,000 in accordance with terms of TIF Development Loan Agreement. B. The Developer/Promissor shall: 1. Provide financial documentation to the City that project financing is in place and ready to go. 2. Complete renovations according to codes and at Developer/Promissor’s expense. 3. By December 31, 2009, complete the $4.5 purchase and renovation project at 101 E. Milwaukee St. 4. Make all required annual debt service payments to retire $360,000 TIF Development Loan. 5. Guarantee to annually pay minimum property tax bill starting at $72,065 for tax year 2010 payable in 2011, and increasing to $79,930 for tax year 2022 payable in 2023. C. While TIF incentives are being repaid, 101 E. Milwaukee St. cannot be sold or leased to an entity that does not pay property taxes without City approval. D. Developer Contingencies to be satisfied or waived by September 1, 2009: 1. Receipt of building plan approvals and issuance of building permits. 2. Receipt of satisfactory construction and permanent financing. 3. Approval of binding leases acceptable to Developer/Promissor. 4. Council approval of contract to construct parking structure. E. City not bound to TIF Agreement until Developer/Promissor waives its contingencies. F. Developer/Promissor can repay City’s breakeven investment at any time and if so paid, then Developer/Promissor can sell the property without the restriction in Section IV.C. TIF Development Loan Agreement 1. Loan Amount: $360,000 2. Loan Term: 10 years 3. Interest Rate: 4.25% 4. Annual Debt Service: $44,939.00 5. Debt Service Forgiveness: If actual property tax bill for 101 E. Milwaukee St. exceeds the minimum property tax payment set forth in Section IV.B.5. of the TIF Development Agreement, then the excess in property taxes paid will be used to lower the annual debt service payment on the TIF Development Loan. 6. Loan Closing: Loan shall close upon completion of construction and issuance of an Occupancy Permit. 7. Timing of Annual Debt Service Payments: On the anniversary date of the Loan closing. City to prepare an invoice for debt service due 30 days prior to anniversary date. 8. Mortgage as Security: 101 Milwaukee Street LLC shall give City Mortgage against its property at 101 E. Milwaukee St. as security for repayment of TIF Development Loan. 9. Sale of 101 E. Milwaukee St.: If property is sold, then balance of TIF Development Loan becomes due and payable. 10. Personal Guarantee: Eric Schwartz shall provide personal guarantee that TIF Development Loan will be repaid. DIVISION OF PUBLIC WORKS MEMORANDUM May 15, 2009 TO: City Council FROM: Daniel L. Lynch, Utility Director SUBJECT: Review of Wastewater Utility 2008 Compliance Maintenance Annual Report and Action on Proposed Resolution No. 2009-606 Summary All cities, villages, and sanitary districts in the State of Wisconsin that operate wastewater treatment facilities must prepare and submit Compliance Maintenance Annual Reports (CMAR) to the Wisconsin Department of Natural Resources (WDNR). These reports evaluate the overall condition of a community’s treatment facility and may be used as a basis to recommend or require corrective actions to deficient facilities. Department Recommendation The Wastewater Utility staff prepared this report and recommends that the City Council adopt the proposed resolution. Suggest Motion Move to adopt Resolution Number 2009-606 acknowledging the Common Council’s review of the 2008 Compliance Maintenance Annual Report. Analysis The WDNR developed the CMAR Program to provide a uniform method to measure the overall condition of Wisconsin’s treatment facilities. The grading scale is similar to those used in many high schools and colleges. It is based on a 0.00 to 4.00 point scale with the final number converted to a letter grade (A through F). When communities receive low grades the WDNR can require those communities to improve their treatment facilities. Grade Corrective Actions Additional Actions A or B Voluntary None C Recommended Response to WNDR outlining community action to correct D or F Required deficiency. The City of Janesville received an A for the 2008 report. However, the excessive snowfall in the winter of 2007-2008 and rainfall in the spring/summer of 2008 caused the Rock River to flood in January and June, and raised the groundwater throughout the area. The rainfall, flooding and high groundwater caused the flow through the Wastewater Treatment Plant to be much greater than its design levels resulting in the Influent Loading category losing points and receiving a grade of C. A sewer collapse on Milton Avenue and a plugged sewer along the Rock River near River View Drive also led to the loss of points in the Collection Sewer category which received a grade of B. The eight other categories received a grade of A. A second part of this process requires the passage of a supporting resolution by the City Council. This resolution (No. 2009-606) indicates that the Council has reviewed the Compliance Maintenance Annual Report. The resolution is similar to those used in past years and has been reviewed by the City Attorney. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services Wald Klimczyk, City Attorney RESOLUTION NO. 2009-606 A Resolution acknowledging the Common Council’s review of the Compliance Maintenance Annual Report of the Wastewater Treatment Plant. WHEREAS, the City of Janesville is required by State regulation to annually prepare a Compliance Maintenance Report that describes the physical conditions and performance of the City’s wastewater treatment and collection facilities; and, WHEREAS, as part of the report preparation process, the Department of Natural Resources of the State of Wisconsin (WDNR) requires the Common Council to adopt a resolution acknowledging that it has reviewed the Compliance Maintenance Report; and, WHEREAS, the Utility Director has submitted the Compliance Maintenance Annual Report of the City of Janesville Wastewater Treatment Plant, dated May 26, 2009, to the Common Council for their review. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they have reviewed the aforementioned Compliance Maintenance Annual Report and find that no action by the Common Council is necessary at this time to maintain compliance with current effluent limitations. 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: Utility Director Prepared by: Utility Director