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Full Agenda Packet CITY OF JANESVILLE CITY COUNCIL MEETING AGENDA MONDAY, December 27, 2010 7:00 P.M. 1. Call to Order and Pledge of Allegiance. 2. Roll Call. 3. Regular City Council meeting minutes of December 13, 2010. “C” 4. Licenses; and Recommendations of the Alcohol License Advisory Committee. (Refer to separate agenda.) “C” 5. Financial statement for the month of November, 2010. “C” 6. Special recognition: Action on a proposed resolution in commendation of Richard Scherdell’s service to the City of Janesville. (File Res. No. 2010-762) 7. Special recognition: Action on a proposed resolution in commendation of Douglas Bleck’s service to the City of Janesville. (File Res. No. 2010-763) OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. NEW BUSINESS 1. Action on a proposed resolution authorizing the acquisition and demolition of real property located at 1107 Hamilton for open green space. (File Resolution 2010-761) ----------------------- “C” – This designation indicates an item that the City Council will take up under a Consent Agenda. City Council Agenda – December 27, 2010 Page 2 NEW BUSINESS (CONTINUED) 2. Award of a performance contract for energy conservation and facility improvement measures for the City of Janesville Municipal Building. 3. Schedule a study session meeting to discuss financial policies. 4. Introduce and schedule a public hearing on a proposed ordinance prohibiting the possession, sale, and use of synthetic cannabinoids. (File Ord. No. 2010-472) 5. Requests and comments from the public on matters which can be affected by Council action. 6. Matters not on the agenda. 7. Motion to adjourn. The use of audible cell phone ringers and active use and response to cellular phone technology by the governing body, staff and members of the public is discouraged in the Council Chambers while the Council is in session. PROCEEDINGS OF THE CITY COUNCIL CITY OF JANESVILLE, WISCONSIN REGULAR MEETING DECEMBER 13, 2010 VOL. 61 NO. 26 Regular meeting of the City Council of the City of Janesville held in the Municipal Building on December 13, 2010. The meeting was called to order by Council Vice President Perrotto at 7:00 PM. Council Vice President Perrotto led the Council in the Pledge of Allegiance. Present: Council Vice President Perrotto, Councilmembers Brunner, McDonald, and Steeber. Absent: Council President Voskuil and Councilmembers Rashkin and Truman. CONSENT AGENDA Regular City Council meeting minutes of November 22, 2010. Special City Council meeting minutes of December 3, 2010. Licenses; and Recommendations of the Alcohol License Advisory. Motion to approve final Certified Survey Map #10015-C, Evoniks, 3 lots south of Rockport Road and west of South Palm Street. Council Vice President Perrotto removed the Youth Entertainment Center application for MoJo’s from the consent agenda. He stated that all items on the consent agenda would be approved as recommended if there were no objections. There were none. Councilmember Yuri Rashkin joined the meeting at 7:09 PM. Carrie Jass, representing MoJo’s, stated her desire to operate a Youth Entertainment Center. She stated that her experience as a bartender and volunteer at rec. nights qualifies her for the license. She informed the Council that the judgments against her family were a result of significant medical expenses. Councilmember Steeber moved to deny the Youth Entertainment Center License for Mojo’s based on the information presented, seconded by Councilmember Rashkin and passed unanimously. OLD BUSINESS 1. Requests and comments from the public regarding items on the Agenda not requiring a public hearing. Andreah Briarmoon, 339 S. Locust St., opposed the TIF #22 Development Agreement with Hendricks Development (New Business #3) and stated that Councilmembers Brunner and Steeber should not be on the Council because they are former and current government employees, respectively. 2. A final resolution for assessable water main on STH 11 received its public hearing. Andreah Briarmoon, 339 S Locust St., opposed the resolution and suggested that property owners pay for the improvements now. The public hearing was closed. Councilmember Steeber moved to adopt said resolution, seconded by Councilmember Rashkin and passed unanimously. (File Res. No. 2010-759) NEW BUSINESS 1. Presentation and possible action on completed Strategic Marketing Plan. Don Schulte, representing Active Network, reviewed their plan with the Council. Councilmember Steeber moved to authorize the City Manager to move forward with the public space recycling program and vending machine program and to initiate the strategic plan, seconded by Councilmember Rashkin and passed unanimously. 2. Update and possible action on proposed skate park. Councilmember Steeber moved to designate the Jackson Street location for the skate park, seconded by Councilmember Brunner. Councilmember Brunner offered a friendly amendment to have City Staff work with the skate park committee. The friendly amendment was accepted. Councilmember Rashkin offered a friendly amendment to use $50,000 from next year’s note issue for engineering design. The friendly amendment was not accepted. Councilmember Rashkin moved to use $50,000 from a future note issue to work on the engineering design. He did not receive a second. The main motion, as amended, was approved by the following vote: Aye: Brunner, McDonald, Rashkin and Steeber. Nay: Perrotto. 3. Action on a motion authorizing the City Manager to enter into a TIF development agreement with Hendricks Development for a project in TIF #22. Councilmember Steeber moved to authorize the City Manager to enter into said agreement, seconded by Councilmember Brunner and passed unanimously. 4. Introduce and schedule a public hearing on a proposed ordinance amending JGO Chapter 5.52 and Section 5.04.010 N. regulating junk dealers, second hand dealers, second hand jewelry dealers, and pawnbrokers in the City of Janesville with penalties as set forth in JGO 5.52.090 and 5.04.180. Council Vice President Perrotto stated the ordinance would not be introduced at this time. (File Ord. No. 2010-471) 5. A proposed ordinance annexing property located at 2609 South U.S. Highway 51 was introduced and scheduled for a public hearing on January 10, 2011. (File Ord. No. 2010-469) 6. A proposed ordinance zoning property located at 2609 South U.S. Highway 51 to B2 was introduced, referred to the Plan Commission, and scheduled for a public hearing on January 10, 2011. (File Ord. No. 2010-470) 7. Requests and comments from the public on matters which can be affected by Council action. Kurt Miller, 7938 E. State Rd., complimented the Council on their dedication and involvement with City matters. Andreah Briarmoon, 339 S. Locust St., suggested that Council send a resolution to the State to move the spring election to the fall; and reconvene the Citizen Code Committee to review the appeal pamphlet. 8. Matters not on the Agenda. Councilmember Rashkin thanked City Manager Levitt for bringing Active Network to Janesville and that holiday lights are needed downtown. Councilmembers McDonald, Brunner and Steeber asked that we send a resolution to the State to move the spring elections to the fall. Councilmember Brunner thanked the tow truck companies for donating over 2000 toys for families in need. Councilmember Perrotto wished the Citizens and Staff a Happy Holidays and a Merry Christmas! 9. Councilmember Steeber moved to adjourn, seconded by Councilmember McDonald and passed unanimously. There being no further business, Council adjourned at 9:49 p.m. Jean Ann Wulf, Clerk-Treasurer JANESVILLE CITY COUNCIL LICENSE AGENDA 12/27/2010 RECOMMENDED A. ELECTRICIAN–ORIGINAL Richard E. Gurney 112 S. Pontiac Kyle P. McGraw 2313 Jeffy Tr., Madison, WI B. SIGN ERECTOR–ORIGINAL Jones Sign Company Inc. John Mortensen 1711 Scheuring Rd., DePere, WI C. SECONDHAND JEWELRY/SECONDHAND ARTICLE/PAWNBROKER-RENEWALS FOR THE 2011 LICENSE YEAR Casey’s Pawn & Retail Debra L. Twardzik 1706 Center Ave. Castaways Thrift Shop Mercy Health System Association of Volunteers 922 Milton Ave. Dubes Jewelry Ken M. Corey 21 W. Milwaukee St. Trendy Consignments Nancy Wait 21 ½ N. Main St. D. SECONDHAND ARTICLE DEALER-ORIGINAL Game Stop #1507 Game Stop Inc. 2500 Milton Ave. ACCOUNTING DIVISION MEMORANDUM December 17, 2010 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Financial Statement for the Month of November 2010 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 Baker Tilly Virchow Krause, 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 Fund. A summary of their performance to budget, as compared to 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 November ExpendituresCompared to Three-Year Average Current YTD 3 Yr. Avg. 100% 90% Percent of Total Budget 80% 70% 60% 50% 40% 30% 20% 10% 0% General FundWater -Wastewater - OperatingOperatingSanitation REVENUE SUMMARY The graph below indicates revenue has been earned as anticipated for the General Fund and Wastewater Utility. The Water Utility sales revenue is under the budgeted level and the Sanitation fund continues to lag compared to the budget trends. November 2010 Financial Statement December 17, 2010 Page 2 Year-To-Date November RevenuesCompared to Three-Year Average Current YTD 3 Yr. Avg. 120% 100% Percent of Total Budget 80% 60% 40% 20% 0% General FundWaterWastewaterSanitation Other items of interest in the Financial Statement are as follows: Proprietary Funds (page 4)  The Stormwater Utility has a deficit operating cash balance of $533,883 at November 30, 2010. This is because revenue is billed on a quarterly basis (approximately $518,000) after expenditures have been made.  Transit reports a negative cash balance of $131,465 due to the timing of grant reimbursements after expenditure are made. Special Revenue Fund Balance (page 5)  TIF 3 has a positive balance of $236,984. The positive balance will be used to repay the general fund advance plus accrued interest.  At November 30, 2010, the TIF districts have a combined fund balance of $53,327. TIF projections indicate each district will reach a positive fund balance before it expires.  Landfill long-term care of site #3023 ($183,875) will be reimbursed by an insurance policy we have in place for post closure care. Capital Projects Fund (page 6)  The City incurred expenditures in conjunction with road projects on Highway 11 from Wright Road to Highway 14 ($186,799). These costs will be funded with future special assessments or General Obligation note issue.  Note Proceeds of $4,145,000 have been recorded in November in the Capital Projects fund. General Fund (page 7)  State Shared Revenue of $4,259,667 was received in November. November 2010 Financial Statement December 17, 2010 Page 3 A representative of the Administrative Services Department will be available at the Council Meeting on December 27, 2010 to respond to any questions Council may have relative to these reports. Once Council is satisfied, acceptance of the Financial Statement by consent and placing them on file would be in order. /Attachments cc: Jacob J, Winzenz, Director of Administrative Services/Assistant City Manager Eric J. Levitt, City Manager HUMAN RESOURCES DIVISION MEMORANDUM December 10, 2010 TO: City Council FROM: Susan Musick, Human Resources Director SUBJECT: Retirement Recognition Richard A. Scherdell and Douglas J. Bleck Executive Summary At the City Council meeting of December 27, 2010, the following retirement commendation will be considered under the consent agenda: 1. Richard A. Scherdell for thirty-seven years of service with the City of Janesville (File Resolution Number 2010-762).  Richard will not be attending the December 27, 2010 Council meeting.  Richard began working for the City of Janesville on January 2, 1974, as a Police Officer.  Richard’s retirement date is December 31, 2010. 2. Douglas J. Bleck for thirty-one years of service with the City of Janesville (File Resolution Number 2010-763).  Douglas will not be attending the December 27, 2010 Council meeting.  Douglas began working for the City of Janesville on January 7, 1980, as a Police Officer.  Douglas’ retirement date is December 31, 2010. Recommendation Staff recommends adoption of File Resolution 2010-762 and 2010-763. 1 RESOLUTION NO. 2010-762 Whereas, Richard A. Scherdell is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for thirty-seven years; retiring as a Police Officer with the City of Janesville Police Department; and Whereas, during Richard A. Scherdell’s employment with the City of Janesville, he provided exemplary professional service and demonstrated conscientious devotion to the duties of his position, which he performed with competence, sincerity, honesty, and dedication; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Richard A. Scherdell for his thirty-seven years of loyal public service. th Dated this 27 day of December, 2010. Motion by: ADOPTED: Second by: Councilmember Aye Nay Pass Absent APPROVED: Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Jean Ann Wulf, City Clerk-Treasurer Voskuil APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Human Resources Prepared by: Human Resources RESOLUTION NO. 2010-763 Whereas, Douglas J. Bleck is retiring from City of Janesville employment after having diligently served the people of the City of Janesville and the community for thirty-one years; retiring as a Police Officer with the City of Janesville Police Department; and Whereas, during Douglas J. Bleck’s employment with the City of Janesville, he provided exemplary professional service and demonstrated conscientious devotion to the duties of his position, which he performed with competence, sincerity, honesty, and dedication; and Whereas, it is desired that such commendable service to the City of Janesville be properly recognized; Now, Therefore, Be It Resolved that the people of the City of Janesville, through the City Council, do express their grateful appreciation to Douglas J. Bleck for his thirty-one years of loyal public service. th Dated this 27 day of December, 2010. Motion by: ADOPTED: Second by: Councilmember Aye Nay Pass Absent APPROVED: Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Jean Ann Wulf, City Clerk-Treasurer Voskuil APPROVED AS TO FORM: City Attorney Proposed by: Human Resources Prepared by: Human Resources NEIGHBORHOOD SERVICES MEMORANDUM December 21, 2010 TO: City Council FROM: Kelly Lee, Neighborhood Development Specialist SUBJECT: Action on a proposed Resolution Authorizing the Acquisition and Demolition of Real Property Located at 1107 Hamilton for Open Green Space. (File Resolution 2010-761) Summary In November of 2009, the City Council authorized the administration to submit an amendment to the Community Development Block Grant-Emergency Assistance (CDBG-EAP) Grant to include the acquisition of the properties that were damaged by the 2008 flood, but were not eligible for the Hazard Mitigation Grant Program or the first round of the CDBG-EAP Grant. The City of Janesville currently has a contract with the State of Wisconsin Department of Commerce for administration of this grant. Staff has negotiated an offer to purchase for the property located at 1107 Hamilton Avenue. Department Recommendation The Plan Commission and the Neighborhood Services Department recommend that the City Council support a motion to approve Resolution 2010-761 authorizing the acquisition and demolition of real property located at 1107 Hamilton Avenue. City Manager Recommendation The City Manager supports the Plan Commission and the Neighborhood Services Department recommendation. Suggested Motion I move to approve file resolution 2010-761 authorizing the acquisition and demolition of real property located at 1107 Hamilton Avenue at a price not to exceed $114,000 for open green space through the Community Development Block Grant-Emergency Assistance Program. Background In June of 2008, the City of Janesville experienced a flood level greater than the Intermediate Regional Flood (100 year event). The 2008 event was the largest flood event on record in the City of Janesville. Hundreds of residents were evacuated, city buildings and infrastructure were damaged and dozens of businesses were forced to close their doors. 1 Following the June 2008 flood, the City of Janesville submitted a grant application for the potential acquisition of 11 substantially damaged properties in Mole & Sadler’s Addition under the Federal Hazard Mitigation Grant Program. Grant funding was approved by FEMA for the acquisition and demolition of 8 of those properties. Three properties included in the grant were removed from the application by Wisconsin Emergency Management due to environmental concerns related to groundwater contamination on the sites. Those properties have since been acquired through the Community Development Block Grant- Emergency Assistance Program (CDBG-EAP) and the structures have been demolished. In September of 2010, the City of Janesville was awarded an additional $300,00 in CDBG-EAP funding to be used to acquire residential properties located within the floodplain that did not qualify for any previous grant program because they were not substantially damaged. The property located at 1107 Hamilton is one such property. During the 2008 flood event, this property was not declared substantially damaged, but it did sustain some damage and the occupants needed to be vacated from the property due to lack of sewer and water and access to the property. At this time there are 2 other property owners that are considering accepting a buy-out offer. Similar to the Hazard Mitigation Grant Program rules, offers to purchase are based on a pre-flood appraisal minus any duplication of benefits including insurance and FEMA assistance. Using this formula, the offer to purchase for 1107 Hamilton Avenue is $114,000. The participation in this “Buy-Out” is completely voluntary and the citizens could choose to terminate negotiations with the city at any time. The grant requires that acquired properties be demolished and left in open green space in perpetuity. As with the rest of the properties that have been acquired from the floodplain through these programs, prairie grass will be planted as a way to reduce ongoing maintenance of the area. The Community Development Block Grant-Emergency Assistance Program does not have a local match requirement. Analysis A. The properties are located in a flood plain B. The structures are currently vacant. C. The properties are considered unbuildable at this time. D. The acquisition and demolition is funded by the Community Development Block Grant-Emergency Assistance Program (CDBG-EAP) E. The City Council approved the amendment to the CDBG-EAP at the November 23, 2009 meeting. F. The properties will be left as permanent open green space and under City Ownership. 2 G. The acquisition and demolition projects are consistent with the City of Janesville’s Comprehensive Plan. Plan Commission Action The Plan Commission reviewed the proposed acquisition on December 20, 2010, and unanimously agreed to forward this item to the City Council with a favorable recommendation noting that the Plan Commission has not reviewed the financial aspects of the transaction. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administration Jennifer Petruzzello, Neighborhood Services Director 3 RESOLUTION NO. 2010-761 A RESOLUTION AUTHORIZING THE ACQUISITION AND DEMOLITION OF REAL PROPERTY LOCATED AT 1107 HAMILTON AVE WHEREAS , Wis. Stats. §§ 62.22 (1), 62.23 (17) (a), 62.23 (17) (b), 66.0101, 62.11(5) and Chapter 32 and other pertinent Wisconsin Statutes permit the City of Janesville’s acquisition, development, improvement, ownership, protection, and conservation of parkland, open space, green space, riverfront properties, and development properties; and WHEREAS, the City of Janesville has been applied for and has been awarded additional funding through the Community Development Block Grant (CDBG-EAP) grant to acquire and demolish properties that were not substantially damaged in the 2008 Flood Event (Disaster Declaration FEMA- 1768-DR-WI) and did not qualify for the Hazard Mitigation Grant Program (HMGP); and WHEREAS , the Community Development Block Grant-Emergency Assistance Program (CDBG-EAP) grant may be used for the acquisition, demolition, razing, and removal of the improvements upon the property located at 1107 Hamilton Ave; and WHEREAS , Wisconsin Department of Commerce has accepted pre-flood property appraisals and has calculated the offer to purchase amounts based on pre-flood property values minus any duplication of benefits including FEMA assistance, insurance, and other assistance programs; and WHEREAS , the City of Janesville has made an offer of $114,000 contingent upon Plan Commission and City Council Approval; and WHEREAS , the Community Development Block Grant-Emergency Assistance Program requires that acquired properties remain in open green space and under City ownership in perpetuity; and WHEREAS , the Janesville Plan Commission has reviewed these proposed acquisitions on December 20th, 2010 and found them to be consistent with long range City plans, but not commenting upon the financial aspects of the transactions; and WHEREAS , the Common Council hereby find each of these acquisitions are in the best interest of the public and for the benefit of the community; and WHEREAS , the funding source for the acquisitions and demolition is Community Development Block Grant-Emergency Assistance (CDBG-EAP) funds: NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Janesville that they hereby approve and authorize the City Manager and/or his designee(s), on behalf of the City of Janesville, to acquire and close upon the City’s purchase of these Properties from the owners for the purchase price and otherwise in the manner set forth in the above recitals, and to then use in perpetuity the acquired properties as open green spaces and otherwise in accord with all Program rules; and BE IT FURTHER RESOLVED , that the City Manager and/or his designee(s) on behalf of the City of Janesville is/are hereby authorized and empowered to negotiate, draft, modify, review, execute, and enter into additional agreements, record, file and/or make minor modifications and/or amendments to any and all documents, papers, forms, and agreements, and to take whatever other actions as the City Manager may determine, from time to time and at any time, necessary and/or desirable to effectuate the intent of this resolution and/or the public good. 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, Wald Klimczyk Proposed by: Neighborhood Services Prepared by: Neighborhood Services PUBLIC WORKS DEPARTMENT MEMORANDUM December 27, 2010 TO: City Council FROM: Carl J. Weber P.E., Director of Public Works SUBJECT: COMPREHENSIVE ENERGY SAVINGS PERFORMANCE AGREEMENT FOR THE CITY OF JANESVILLE MUNICIPAL BUILDING Staff Recommendation Staff recommends that the City Council award a performance contract to Johnson Controls, Inc. for energy conservation and facility improvement measures for the City of Janesville Municipal Building, to authorize the City Manager to negotiate the final terms and measures to be included in the contract and to authorize the direct purchase of a chiller for the Municipal Building. City Manager’s Recommendation The City Manager supports the Public Works department recommendation. Suggested Motion I move to award a performance contract to Johnson Controls, Inc. in accordance with their Proposal and Qualifications for a Comprehensive Energy Savings Performance Agreement for the City of Janesville Municipal Building dated 12/10/2010 and that the City Manager be authorized to negotiate the final terms and measures to be included in the contract. Further to authorize staff to direct purchase the replacement chiller identified in the proposal. Request The City Council has previously allocated funding for City building maintenance and directed staff to prepare a comprehensive building maintenance plan. Staff had previously reported that the HVAC equipment in the City Municipal Building needed to be evaluated and repaired or replaced. A performance contract is a process authorized by the State of Wisconsin Statute 66.0133 which accomplishes both evaluation and implementation of energy conservation and facility improvement measures. This proposal has been planned to allow for addressing the Municipal Building HVAC issues prior to the 2011 summer cooling season. Background  Solicitation of proposals: Staff, thru direct solicitation of known energy savings performance contractors and thru public notice, sought statements of qualification and proposals for a performance contract for the Municipal Building. Five firms toured the building and two submitted proposals: Honeywell International Inc. - Oak Creek, WI Johnson Controls – Madison, WI 1  Ranking Staff reviewed the proposals evaluating each of the firm’s qualifications, experience on similar projects, technical quality and range of services, ability to implement the proposals and financial considerations. Both firms are well qualified and have significant experience on similar projects for several public institutions in Wisconsin. To compare the cost and energy savings potential of the two proposals, staff compared a number of energy conservation measures side by side. Based on this comparison, staff finds and recommends that the proposal of Johnson Controls, Inc. is in the best interest of the City of Janesville.  Proposed Improvements The proposed improvements include: Chiller Replacement o Lighting Upgrades o HVAC Control System Upgrade o Installation of Variable Frequency Drives on water pumps and exhaust o fans Retuning of existing thermostat controls o Replacement of Coils in Air Handler Unit 1 o The proposal cost submitted by the two firms for the above improvements, including a contingency amount, is: Johnson Controls $350,048 o Honeywell $379,748 o  Local Contractor Opportunities The selected performance contractor will need the assistance of subcontractors for the installation of the recommended improvements. The Request for Proposals required that such assistance be openly bid to allow for competition. The RFP stated that utilization of local trades and labor would be given consideration in the selection process. Both firms have made efforts to contact local firms and are confident that local contractors will be available for completion of electrical, demolition, hoisting and other related trade work.  Funding Funding for this project is available from the following resources: 1. EECBG grant - $90,000 designated for lighting improvements 2. 2008-09 CIP - $100,000 designated for energy audits 3. 2008-09 CIP - $145,000 designated for Municipal Building HVAC improvements 4. Focus on Energy Grants - $15,000 or more as stated in the proposal Total $350,000  Costs The costs for the recommend improvements as indicated in the recommended proposal total about $350,000. This cost may be reduced by bidding of subcontracts. Other energy conservation and/or facility improvement measures 2 may be identified through more thorough investigation during final contract negotiation or project implementation. In no event shall costs exceed the available funds identified above.  Energy Savings Energy savings, as identified in the proposal, are guaranteed by the performance contractor. After a full year of implementation of the repairs, replacements and improvements an energy use audit will be completed. The audit will compare actual energy costs pre and post implementation (adjusted for variances in weather). Should the guaranteed energy cost savings not be realized, the performance contractor will refund the difference to the City.  Purchase of Chiller Because of the long lead time required for delivery of a chiller, it is recommended that staff be authorized to directly order and purchase a chiller prior to the execution of the performance contract. This will allow for timely installation of the unit and eliminate the sales tax cost to the City. cc: Eric Levitt, City Manager Jacob J. Winzenz, Assistant City Manager/Dir. of Administrative Services 3 CITY MANAGER’S MEMORANDUM December 27, 2010 TO: Council President Voskuil & City Council FROM: Eric J. Levitt, City Manager SUBJECT: Schedule a study session regarding City Financial Policies. I request setting a study session in the next couple of months. This study session would include reviewing various financial policies including changes to be consistent with new requirements of the Governmental Accounting Standards Board. Also, we will review our debt policies and current fund balances. Three recommended dates are: rd  February 2, February 16 and February 23 at 6:00 p.m. Please schedule a date and time for the study session and waive notice of this meeting. 1 POLICE DEPARTMENT MEMORANDUM December 20, 2010 TO: City Council FROM: David J. Moore, Chief of Police SUBJECT: Introduce and Schedule a Public Hearing on a Proposed Ordinance Prohibiting the Possession, Sale, and Use of Synthetic Cannabinoids (File Ordinance 2010-472) Summary As proposed, Ordinance 2010-472 will assist the police department to address the abuse of various types of synthetic cannabinoids. The ordinance prohibits the possession, use and sale of the synthetic cannabinoids. Recommendation The City Attorney’s Office and the Police Department recommend that Ordinance 2010-472 be introduced and scheduled for a public hearing. This ordinance was requested by Councilmember Brunner and Councilmember Steeber. City Manager Recommendation Ordinance 2010-472 is being introduced on December 27, 2010 and scheduled for a public hearing on January 10, 2011. Requested Action: Council is requested to schedule a Second Reading and Public Hearing January 10, 2011. Analysis Janesville Police Officers continue to encounter the sale and use of various forms of synthetic cannabinoids. While these synthetic cannabinoids are often marketed as benign and legal alternatives to marijuana, they are potentially dangerous to users, produce severe adverse health conditions such as, but not limited to, hallucinations, paranoia, seizures, and vomiting based upon reported emergency room experiences in areas of the country where use is more prevalent. Locally, officers report young adults and teenagers seeking medical assistance for symptoms ranging from a catatonic state to uncontrollable behavior. Long term health effects of the use of these substances are not yet known. Given the relative ease of purchase in Janesville, many teenagers and young adults purchase and use the synthetic cannabinoids. Since the synthetic cannabinoids are not regulated by state or federal laws, synthetic cannabinoids 1 are currently able to be sold and consumed. Ordinance 2010-472 will allow officers the ability to control the use and sale of synthetic cannabinoids. Cc: Eric Levitt, City Manager Jacob J. Winzenz, Director of Administrative Services 2 ORDINANCE NO. 2010 - 472 An ordinance creating Chapter 9.56 of the Code of General Ordinances of the City of Janesville prohibiting the possession, sale, and use of “synthetic cannabinoids”, with penalties of $100 - $500 for adults and $75 for children for each violation, together with costs, fees, and assessments as allowed and/or mandated by law. THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS : SECTION I. Chapter 9.56 of the Code of General Ordinances of the City of Janesville is hereby created to read as follows: Chapter 9.56 “ Possession, Sale, and Use of Synthetic Cannabinoid Substances Prohibited Sections: 9.56.010 Introduction – Purpose – Definitions – Findings 9.56.020 Prohibitions 9.56.030 Medical or Dental Use Allowed 9.56.040 Violations -- Penalties 9.56.010 Introduction – Purpose – Definitions -- Findings. A. The Janesville Police Chief and Common Council have determined that herbal preparations powdered or sprayed with a chemical synthetic cannabinoid are available for sale within the City of Janesville that claim to produce intoxicating effects similar to THC or marijuana. THC is the psychoactive ingredient in marijuana B. While synthetic cannabinoids and synthetic cannabinoid substances are not yet categorized as illegal controlled substances under Wisconsin or federal law, several other countries, states, counties, and municipalities have already taken action to prohibit these substances due to increased overdoses and other negative health effects and concerns. C. This Chapter incorporates by reference as if fully set forth herein verbatim the factual findings of the countries, states, counties, and municipalities that have made investigated, documented, and/or made independent findings and conclusions concerning the increased overdoses and/or other negative health effects and concerns arising from and/or pertaining to the use of synthetic cannabinoids and/or synthetic cannabinoid substances. D. While these synthetic cannabinoids and synthetic cannabinoid substances are often marketed as benign and legal alternatives to marijuana, they are potentially dangerous to users as the substances can create potency from 3 up to 100 times greater than marijuana, produce severe adverse health conditions such as, but not limited to, hallucinations, paranoia, seizures, and vomiting based upon reported emergency room experiences in areas of the country where use is more prevalent, and further that long term health effects of use of these substances are not yet known. E. Such substances, also known as “fake marijuana” and “fake pot”, are being sold at shops, mostly in the Midwest, under the common names “K2” and “Spice.” The states of Kansas and Missouri, and the country of Ireland, Princeton, MN; North Logan, Utah; Poplarville, MS; Wood 1 River, IL; Allen County, IN; Milton, WI; Eau Claire, WI; La Crosse, WI; to name a few, have each adopted legislation to ban the substance(s) for health, welfare, safety, and peace reasons. F. Often sold in gram packets for $10-20, K2 and other synthetic cannabinoids are said to mimic marijuana's effects. People smoke it in joints, pipes, bongs, and vaporizers, just like marijuana. G. One general news article states that Dr. John Huffman, professor of organic chemistry at Clemson, created the "compound”. That recipe found its way to marijuana users who replicated Huffman's work and began spraying it onto dried flowers, herbs, and tobacco. H. Products that Contain (or Have Contained at One Time) Synthetic Cannabinoids: 1. Spice, Smoke Blend, K2, Genie, Yucatan Fire, Skunk, DaScents, Sence, Smoke, ChillX, Highdi’s, Almdröhner, Earth Impact, Gorillaz, Galaxy, Gold Space, Truckin, Solar Flare, Moon, Rocks, Blue Lotus, Aroma, Scope, Sky, OG, and Potpourri. 2. It's also sold under the names Spice Diamond, Spice Gold, Spice Silver, Yucatan Fire, Zoha, and Zohai. 3. It should be noted that the speed of innovation in this area means that any list of products is likely to become quickly outdated. This ordinance incorporates herein without the necessity of amendment additional names as they occur. I. The ingredients include Baybean, Blue Lotus, Lion's Tail, Lousewort, Indian Warrior, Dwarf Scullcap, Maconha Brava, Pink Lotus, Marshmallow, Red Clover, Rose, Siberian Motherwort, Vanilla, Canavalia Rosea, Clematis Vitalba, Nelumbo Nucifera, and Pedicularis Grandifolia. J. Synthetic Cannabinoid Research Chemicals: (This is a partial list of the synthetic cannabinoids that have been used illicitly or may have potential for illicit use in the future): JWH-015, JWH-018, JWH-073, JWH-081, JWH-133, JWH-200, JWH-250, JWH-398, CP 47,497, CP 55,244, CP 55,940, HU-210, HU-211, and WIN 55,212-2. K. Other articles and sources indicate that the most prevalent synthetic canninbinoid is JWH-018, a new synthetic cannabinoid created by scientists to test receptor function in the lab. The synthetic cannabinoid binds with the CB1 receptor producing the euphoric effect or high in humans. JWH-018 binds with CB1 receptors at a rate four times greater than THC (natural or synthetic.) L. The common marijuana drug tests are calibrated to detect THC and THC metabolites, not the synthetics used in Spice or K2. NORML’s deputy director and an expert in drug testing Paul Armentano says Spice or K2 users would pass a drug test. M. The Missouri and Kansas efforts to outlaw K2 in some cases lump it in with Salvia, causing confusion about the two separate drugs. Federal authorities are enforcing a new crackdown on shipments of the cannabinoids and the K2 type products, such as two recent seizures of K2 and JWH-018 at the Philadelphia Airport UPS shipping facility in early 2010. 2 N. Medications Currently Containing Synthetic Cannabinoids:  Dronabinol (Marinol)  Nabilone (Cesamet)  Sativex  Rimonabant (SR141716/Acomplia) O. Based upon all of the above, it is hereby determined by the Common Council that the effects of these substances are jointly and severally health, safety, welfare, peace, and good order concerns to the residents, businesses, visitors, taxpayers, and citizens of the City of Janesville. 9.56.020 Prohibitions -- Possession, use, and sale are illegal. It shall be illegal for any person to: A. Use, possess, purchase, attempt to purchase, sell, publicly display for sale, or attempt to sell, give, and/or barter; B. Produce, manufacture, dispense; and/or C. Possess with intent to produce, manufacture, or dispense; and/or D. Distribute, or agree, consent, offer, or arrange to distribute; and/or E. Possess with the intent to distribute; any one or more of the following synthetic cannabinoids and/or chemicals, whether under the common street or trade names of “Spice”, “K2”, “Genie”, “Yucatan Fire”, “fake” or “new” marijuana, or by any other name, label, or description: 1. Salviadivinorum or salvinorum A; all parts of the plant presently classified botanically as salvia divinorum, whether growing or not, the seeds thereof; any extract from any part of such plant, and every compound, manufacture, salts derivative, mixture or preparation of such plant, its seeds or extracts; 2. (6aR, 10aR)-9-(hydroxymethyl)-6, 6dimethyl-3-(2methyloctan-2-yl)-6a, 7, 10, 10a- 1R,3s)-3- tetrahydrobenzo[c]chromen-1-ol some trade or other names: HU-210; ( hydroxycyclohexy; 3. 1-Pentyl-3-(1-naphthoyl) indole-some trade or other names: JWH-018\spice; 4. 1-Butyl-3-(1naphthoyl) indole-some trade or other names: JWH-073; 5. 1-(3{trifluoromethylphenyl}) piperazine-some trade or other names: TFMPP; 6. synthetic equivalents of the substances contained in the plant Cannabis, and/or in the resinous extractives of Cannabis and/or synthetic substances, derivatives, and 3 their isomers with similar chemical structure and pharmacological activity, and/ or any substance which claims such properties even if in actuality they do not; 7. Compounds of these structures, regardless of numerical designation of atomic positions are similarly prohibited, since nomenclature of these substances is not internationally standardized; 8. And/or any similar structural analogs such as, including, but not limited to the synthetic cannabinoids that fall into and/or are part of one or more of the seven major structural groups: a. Naphthoylindoles (e.g. JWH-018, JWH-073 and JWH-398). b. Naphthylmethylindoles. c. Naphthoylpyrroles. d. Naphthylmethylindenes. e. Phenylacetylindoles (i.e. benzoylindoles, e.g. JWH-250). f. Cyclohexylphenols (e.g. CP 47,497 and homologues of CP 47,497). g. Classical cannabinoids (e.g. HU-210). 9.56.030 Medical or dental use allowed. Acts otherwise prohibited under this Chapter shall not be unlawful if done by or under the direction or prescription of a licensed physician, dentist, or other medical health professional authorized by law to direct or prescribe such acts, provided that such use is permitted under state and federal laws. 9.56.040 Violations – Penalties. A. Any adult person convicted of violating any provision of this Chapter shall be subject to the imposition of, and shall pay a forfeiture of, not less than $100.00 nor more than $500.00, for each violation, together with all costs, fees, and assessments allowed and/or mandated by law, as from time to time amended or renumbered. B. Any child convicted of violating any provision of this Chapter shall be subject to the imposition of, and shall pay a forfeiture of, $75.00, for each violation, together with all costs, fees, and assessments allowed and/or mandated by law, as from time to time amended or renumbered. C. Upon non-payment of an imposed forfeiture, the convicted violator shall be subject to the remedies then available at law, as from time to time amended or renumbered. D. Each day’s continuance of any violation shall constitute a separate violation. SECTION II . This ordinance Chapter shall take effect the day after publication. 4 ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric Levitt, City Manager Steeber Perrotto ATTEST: Truman Rashkin Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Council Members Steeber and Brunner Prepared by: City Attorney Wald Klimczyk Attorney/Word/Shared/Ordinance Synthetic Cannabinoid Prohibited 111810 back.doc 5