The council was done in a little over an hour, many sick alders in attendance. Bonds, a liquor license, alcohol moratorium, Jeff Erlanger Award and a moment of silence for democracy.
GETTING STARTED
They started 10 minutes late. Before the meeting it was rumored that there would be 4 absences and 15 vote items would be at risk. Sambah Baldeh was a notified absence – but despite being sick Bidar, Rummel and Martin (and maybe one more?) made the effort to be at the meeting – according to the mayor to vote on one item. The mayor thanked them for being there (not by name).
Sheri Carter moved suspension of the rules. Passed.
WATER UTILITY AND SEWER UTILITY BONDS
Overview
44, 52 and 53 are taken up together and out of order. These are the water and sewer utility bonds. The mayor asks David Schmiedicke the Finance Director to give them an update. Schmiedicke says that the city sold three series of debt today. 15 year sewer utility bond, 20 year water utility bonds and 10 year taxable revenue water utility notes. For the sewer utility it was $12.5M and they had 7 bids and the lowest bid was 3.03% by CityGroup – the next bid was 3.05% – it was a very narrow band and it reflects good competition and the strength of the cities credit. The coupon rates on that was 4% and that has an reordering premium of about $857,000. The 20 year bonds for Water Utility capital projects for 2017-2019 it was $31M there were also 7 bids, the winning bid was 3.41%, the next highest was 3.46%. Again it was close and the winning bid was from Piper Jaffray, the coupon rates were 4% and with a reordering premium of about $1.8M. On the 10 year taxable notes of $9.4M for operating costs, to provide sufficient cash to repay the $6.1M cash loaned to the water utility from the general fund plus cash for the rest of 2018. There were 5 bids and the lowest was 3.42%, the next highest was 3.44%. The band was a little wider but still relatively strong. The coupon rates were 3-3.55%, with almost no reordering premium and the winning bid was from Baird. the bids were very favorable in these market conditions.
Public Testimony
Lauren Cnare (Water Utility Board President) registered in support and was available to answer questions. There were no questions.
Discussion
David Ahrens apologizes, but says its not directly his fault, but if there were 15 people in attendance he would have voted for the revenue note. If it was a choice of calling everyone who was sick to come in or simply checking in with me to see if I would vote for it, he would vote for it and he’s not asking anyone else to vote against it and jeopardize the sale of the note. He says he sent everyone his statement about why he’d vote against it if there were more than 15 people and he won’t go through all his reasons. He says they also got an email from the General Manager of the Water Utility and attempts to correct Ahrens comments and makes some questionable statements “to the extreme”. First he (Tom Heikkinen, Water Utility Manager) says the deficit was only $6M in 2017, not $7M, but Ahrens checked the power point presentation by the water utility here in June and in June the deficit was $7M. So apparently we have good fortune that is has since shrunk. There was also a projected deficit of $2.1M which is why we are borrowing $9M and not $6M. Then he notes that the water utility passed the budget in 2017 and that Ahrens was the one that moved passage of the budget based on the assurance from the general manager that a basic rate increase would be submitted at the beginning of the year and quickly reviewed and passed. That turned out not to be the case, it was submitted a year later and required a substantial review that took another year. He says that none of the projections were actualized but spending on the construction projects continued. Heikkinen also says that the water towers were started in 2016 and that went into 2017 and discretionary projects went forward as if we were not sinking further into debt. Heikkinen also says that the same pattern hasn’t continued in 2018 and they will come in $1.7M under the budget. Ahrens says the words “under budget” is the word game that has been played in this entire fiasco. It was used in the mayor’s statement as well, but the water utility used a budget that was inflated, by any reasonable estimate by about 35%. Thus when they spent 30% over budget they could say they came in under, but we still spend $7M more than the actual revenue. Ahrens says that Hiekkinen says that they have a bond rating of AA2, which Ahrens agrees is a good rating, but the rating is due to the utilities link to the city and to the fact that it is a supplier to the UW, which is mentioned throughout the Moody’s report. Ahrens says its absurd that Heikkinen treats the negative outlook as if it’s a benign and meaningless appendage. They can read the profile, or Schmiedicke’s memo from September. He won’t go through the rest of it. Hopefully they will have a revenue neutral utility in the months to come, they have a 36% increase in residential rates effective in November and he hopes that the whole 2 year saga leads people to understand that these things (management) need regular monitoring and surveillance – not just the water utility. He hopes they learned a lesson through the whole episode.
Roll call vote: All vote aye except Ahrens.
CONCENT AGENDA
The vote to pass all items as noted in this blog post except for the bond items that already passed and item 1 the honoring resolution.
The mayor explains that all items on the agenda will be acted on except 1, 3 – 7, 11 and 39. The rest of the agenda will be adopted – some of the items have registrations, all in support. He reads the names and the items they are there for.
JEFFERY CLAY ERLANGER CIVILITY IN PUBLIC DISCOURSE AWARD
This year’s recipient is Edward Lee from the Urban League. They play the Mr. Roger’s interview with Jeff Erlanger and his electric chair. The mayor reads the resolution. Jeff’s dad (Howard) says a few words about Jeff’s accomplishments and thanks them for continuing this for 11 years. He talks about Ed Lee and says there were many deserving nominees. It says it not what you accomplish but how you accomplish it. Ed Lee says he’s humbled by the award. He was surprised when Enis Ragland called and doesn’t know how he could live up to the standards of former recipients, including Ragland. He thanks the Urban League staff and his family. His wife worked with Jeff and he has met Jeff in the past, but didn’t realize his activism. He says it takes a community to create a civil discourse. He says we live in times where civility isn’t what we have in our discourse, but Madison does well, even tho we have challenges.
At this point it looks like Arvina Martin has left.
Mike Verveer says a few words, about his friend Jeff Erlanger and congratulates Ed Lee for his work in the community. He says he can’t believe it’s been 12 years that they have been giving this award. He says there are fewer and fewer people in city hall who remember Jeff. Verveer thanks Jeff’s parents (Howard and Pam) for helping continue this tradition. Pam has served on the committee for years. Jeff was smart as a whip and precocious as a young person. He was the chair of the disability rights committee and helped pass the taxi service ordinance for people with disabilities, he was the chair of the Langdon St. Neighborhood Association and he worked hard. The Neighborhood Association hasn’t been the same since. He congratulates Ed and thanks Jeff’s parents again.
Ledell Zellers seconds what Verveer had to say. She says that she knew Jeff and she met in in 2001 and he was a welcoming and engaging person. She worked with him on the State/Langdon neighborhood efforts and he was committed to reaching out to residents. She appreciated his general outlook on life and Ed’s work in the community.
PUBLIC HEARINGS
CocoVaa Chocolatier owner asks to amend her liquor license to remove the class B part of the license so it cheaper so its only beer and wine. Michael May says she can’t amend her application on the council floor. Verveer says that the advice they have gotten from the attorneys over the year, is that the lessor included licenses and that instead of beer, wine and spirits, she wants only beer and wine – this would be ok. May agrees, says he thought they were amending to a higher level, so it should be ok. The mayor says they need an amendment to the license. (Procedural conversations.) Verveer makes the motion to make this change, no discussion on the amendment. License is granted with the same conditions.
Beef Butter BBQ & vomFASS are granted as on agenda.
Temporary outdoor events ordinance change is adopted
6510 Cottage Grove Rd change in zoning passes.
222 N Charter St. is re-referred and public hearing is kept open.
Marsha Rummel has also now left.
CONFIRMATION HEARING
Michelle Drea as the new City Assessor for 5 years. She is already seated on the council floor. The mayor invited her up. She says she is excited, pleased, proud, humbled. No questions. She introduces her family. Motion passes.
ALCOHOL LICENSE MORATORIUM – Items 13 & 14
They need to be reconsidered so they can discuss this item that has speakers. 13 (moratorium) is being placed on file (meaning it is tossed in the garbage can) and 14 (study) is recommended to adopt.
Sandra Torklidson says she found the letter she signed in 2013 asking the council and mayor to look into alcohol density downtown because they feel that they need to keep retail downtown to have a strong downtown. Many of the people who signed the letter with her are no longer in business, so she didn’t resend it, but she still feels strongly. She says once a license is granted, its hard to take it away due to the investment of the owner. She says its been 5.5 years, there are all kinds of reports out there about the increased problems with a density of alcohol establishments and she says they need to address this and not put it on the back burner. She says she does her business downtown and she wants to keep it strong and diverse. This is only one tool, but a very important one.
Verveer asks the Finance Director Dave Scmiedicke to explain what the finance department is currently doing and what they will be doing with the citywide (not just downtown) study by the staff. Schmiedicke says there is a staff team from Finance and the Health Department that are gathering information from Building Inspection regarding the capacity of the establishments to see what service impacts that density might have. They are working through that and scrubbing the data. They will give the council interim reports over the next few months about data and possible recommendations. Verveer points out that the specific dates are in the resolution about when they will be updating the ALRC. Also includes their work with stakeholders (State St. area merchants for example). He thanks the Mayor for allowing the study which was mandated in the 2018 budget. He says there is a partial moratorium near campus that is due to sunset next summer and they will need to revisit this at that time.
Passes on a voice vote.
AFFORDABLE HOUSING RESOLUION
Developers register in support.
Matt Phair pulled it off because some constituents have concerns about the Stonehouse project at the current Babe’s site. They held neighborhood meetings and there is and was concerns about traffic that will be discussed at Plan Commission during the land use approval. The majority of people they heard from are against the project, he is in favor of it. He says it might not be the ideal location, but it is a good one. He realizes that many people have concerns about the project.
Keith Furman thanks the city staff with addressing neighborhood concerns.
ADJOURNMENT
Mayor has an announcement that “democracy is very much alive” in Madison Wisconsin chambers, unlike at the capital where democracy is under attack and we are seeing unprecedented changes simply because some people are very bad losers. He suggests they should have a moment of silence in honor of democracy in our state and hope that the people in the community are well served in the next 48 hours. Silence.
Move adjournment.
