1
00:00:06,700 --> 00:00:10,620
All right, we're officially ready to go right now, so at this time we'll call to order the

2
00:00:10,620 --> 00:00:15,480
regular meeting of common council. This is November 4th, 2025. Carry roll, please.

3
00:00:15,840 --> 00:00:16,680
All other person, carpenter?

4
00:00:16,840 --> 00:00:16,960
Here.

5
00:00:17,260 --> 00:00:17,660
Esercan?

6
00:00:17,920 --> 00:00:17,980
Here.

7
00:00:18,400 --> 00:00:18,720
Gantz?

8
00:00:18,820 --> 00:00:19,020
Here.

9
00:00:19,220 --> 00:00:19,580
Hansen?

10
00:00:19,720 --> 00:00:19,860
Here.

11
00:00:20,140 --> 00:00:20,480
Panigar?

12
00:00:20,600 --> 00:00:20,900
Here.

13
00:00:21,080 --> 00:00:21,400
Ledvina?

14
00:00:21,680 --> 00:00:21,860
Here.

15
00:00:22,080 --> 00:00:22,240
Nelson?

16
00:00:22,620 --> 00:00:22,720
Here.

17
00:00:23,000 --> 00:00:23,380
Pirok?

18
00:00:23,480 --> 00:00:23,580
Here.

19
00:00:23,760 --> 00:00:24,440
And Mayor Boyd?

20
00:00:24,580 --> 00:00:25,520
I am here, thank you.

21
00:00:25,680 --> 00:00:27,300
Item two, pledge of allegiance to the flag.

22
00:00:29,550 --> 00:00:35,090
I pledge allegiance to the flag of the United States of America and the Republic for which

23
00:00:35,090 --> 00:00:38,650
to stand, one nation under God, indivisible,

24
00:00:39,050 --> 00:00:40,470
delivered in us as trial.

25
00:00:46,330 --> 00:00:47,730
Item three, approval of the minutes

26
00:00:47,730 --> 00:00:50,990
of the October 21st, 2025 Common Council meeting.

27
00:00:51,150 --> 00:00:51,910
Take a motion to approve.

28
00:00:52,210 --> 00:00:52,690
Second.

29
00:00:53,030 --> 00:00:54,410
Motion by Alderperson Carpenter.

30
00:00:54,590 --> 00:00:55,930
Seconded by Alderperson Ledman.

31
00:00:56,310 --> 00:00:57,370
Discussion or comments?

32
00:00:58,690 --> 00:00:59,710
We have none.

33
00:00:59,950 --> 00:01:01,390
All those in favor say aye.

34
00:01:01,590 --> 00:01:02,010
Aye.

35
00:01:02,750 --> 00:01:03,350
Opposed?

36
00:01:03,790 --> 00:01:05,270
Motion carries, thank you.

37
00:01:05,650 --> 00:01:08,950
Item four, public comment upon matters not on the agenda.

38
00:01:08,950 --> 00:01:16,750
Comments made during the public comment period shall pertain only to matters under the jurisdiction of the Common Council, anyone in person or virtually.

39
00:01:17,370 --> 00:01:21,070
Have any public comment upon matters not on the agenda now is the time to speak.

40
00:01:21,710 --> 00:01:25,930
Just say your name if you're in virtual land, if you're in person just raise your hand.

41
00:01:26,630 --> 00:01:30,010
Second time, any public comment upon matters not on the agenda.

42
00:01:32,600 --> 00:01:38,000
For the third and final time, any public comment upon matters not on the agenda now is your time.

43
00:01:38,000 --> 00:01:40,760
All right, seems we're all good.

44
00:01:41,200 --> 00:01:44,400
Item five, recommendation from the Board of Park Commissioners

45
00:01:44,400 --> 00:01:49,700
to accept a donation of $1,680 from Deep Air Baseball

46
00:01:49,700 --> 00:01:53,080
to repair the Ganderood Field Outfield Fence.

47
00:01:54,660 --> 00:01:55,380
Moved to approve.

48
00:01:55,760 --> 00:01:55,960
Second.

49
00:01:56,520 --> 00:01:58,160
Motion by Alderperson Hansen.

50
00:01:58,900 --> 00:02:00,600
Second by Alderperson Nelson.

51
00:02:01,320 --> 00:02:02,340
Discussion or comments?

52
00:02:03,900 --> 00:02:07,160
An obvious thank you to the Deep Air Baseball Club.

53
00:02:08,060 --> 00:02:11,780
Alderperson carpenter. Yes, where is the other half the city's coming from?

54
00:02:13,940 --> 00:02:14,740
Kim I

55
00:02:14,740 --> 00:02:20,300
Would have to check with Marty on that so unless Pam knows I mean it doesn't say on a signed reserve

56
00:02:20,300 --> 00:02:25,760
So I'm just wondering if this is a budgeted item or not or where the money's coming from. That's all I just like to know

57
00:02:26,680 --> 00:02:31,700
Yeah, I was gonna say I think when I talked to Marty about this to be brought up about a week ago

58
00:02:31,700 --> 00:02:34,080
I thought he said that was something already had budgeted for

59
00:02:34,080 --> 00:02:38,640
some some some account they had because it was unassigned reserves we would know

60
00:02:38,640 --> 00:02:41,660
by now right they would have to go through a separate process for unassigned

61
00:02:41,660 --> 00:02:46,460
reserves it's possible that he had a budget it is part of this budget waiting

62
00:02:46,460 --> 00:02:50,140
for the donation we did that in the next year's budget for the ice arena I'm just

63
00:02:50,140 --> 00:02:53,480
not entirely sure yeah and I was just curious because usually absolutely yeah

64
00:02:53,480 --> 00:02:56,880
staff report and yes thank you I'm really pretty sure yeah thank you for

65
00:02:56,880 --> 00:03:02,460
the you're welcome any other discussion or comments all right looks

66
00:03:02,460 --> 00:03:03,320
Looks like we're done with that.

67
00:03:03,400 --> 00:03:05,420
That said, all those in favor say aye.

68
00:03:05,680 --> 00:03:06,020
Aye.

69
00:03:07,240 --> 00:03:07,720
Opposed?

70
00:03:08,280 --> 00:03:09,760
Motion carries, thank you.

71
00:03:10,280 --> 00:03:12,940
Item six, recommendation from the Board of Public Works

72
00:03:12,940 --> 00:03:15,840
on approval of conventional water rate application

73
00:03:16,280 --> 00:03:18,020
for expense depreciation.

74
00:03:18,420 --> 00:03:19,660
This is previously held over

75
00:03:19,660 --> 00:03:23,620
from the Common Council meeting of October 21st, 2025.

76
00:03:24,480 --> 00:03:26,160
We're gonna go to Kim first on this one.

77
00:03:26,400 --> 00:03:27,540
We were just waiting for you.

78
00:03:28,440 --> 00:03:29,980
Yeah, thanks everybody for that.

79
00:03:30,620 --> 00:03:31,900
Well, I'll take this one for the record.

80
00:03:31,900 --> 00:03:36,180
that's fine. So I'm going to kick us off and then I'm going to hand it over to Pam. This is a

81
00:03:36,180 --> 00:03:40,500
summarized presentation because this is a topic that's been discussed at Board of Public Works.

82
00:03:40,980 --> 00:03:46,360
We also discussed it at Council last week, but I thought I'd start by diving into some of the

83
00:03:46,360 --> 00:03:51,780
how we got here before Pam kicks us off with the proposed solutions and we asked for your

84
00:03:51,780 --> 00:03:56,160
direction on how to move forward. Pam or Scott, if you go to the next slide.

85
00:03:56,840 --> 00:04:01,840
So just really a general friendly reminder, and I know you all know this sitting up here.

86
00:04:02,400 --> 00:04:06,920
You know the water utility is an enterprise fund and essentially that means it's almost like its own

87
00:04:06,920 --> 00:04:13,160
standalone business and the revenues coming in are expected to cover the expenses as well as the

88
00:04:13,160 --> 00:04:18,980
capital costs. The other interesting thing about the water utility and water rates is that the

89
00:04:18,980 --> 00:04:24,900
city does not set them. We can pursue rate case reviews but ultimately the PSC sets our water

90
00:04:24,900 --> 00:04:30,720
rates and they set that using their methodology which is set up to ensure both protecting

91
00:04:30,720 --> 00:04:36,140
the customers as well as protecting the financial sustainability of the utility itself and trying

92
00:04:36,140 --> 00:04:40,420
to be consistent across the state to ensure that everyone is dealing with the same thing.

93
00:04:40,560 --> 00:04:43,360
So those are two unique things about the water fund in particular.

94
00:04:44,140 --> 00:04:47,760
So I know that I've received some questions like, well, I don't understand why we're

95
00:04:47,760 --> 00:04:48,560
doing this rate case.

96
00:04:48,660 --> 00:04:49,220
Like what happened?

97
00:04:49,360 --> 00:04:50,280
How did we get here?

98
00:04:50,280 --> 00:04:55,760
I'll give you a very quick overview and we're going to go back all the way to 2011 where

99
00:04:55,760 --> 00:05:00,740
the city had gone through a rate review and there was a 12% rate increase.

100
00:05:01,100 --> 00:05:05,760
And from 2011 all the way till 2017, essentially all was good.

101
00:05:06,100 --> 00:05:10,360
The revenues we were receiving were recovering our expenses and they were covering our capital.

102
00:05:10,700 --> 00:05:15,800
And as a reminder, we strive to repair or maintain about 1% of our water mains every

103
00:05:15,800 --> 00:05:16,140
year.

104
00:05:16,140 --> 00:05:20,460
Depeer is an established and older community and we have to keep up with that stuff to

105
00:05:20,460 --> 00:05:21,880
make sure people have good water.

106
00:05:22,460 --> 00:05:28,300
Now starting in 2017, the revenues were covering our expenses, but we didn't have enough money

107
00:05:28,300 --> 00:05:30,640
to cover that 1% capital costs.

108
00:05:30,860 --> 00:05:32,900
Costs of construction go up.

109
00:05:33,500 --> 00:05:39,120
And from 2017 to 2020, we were able to use surpluses from other funds.

110
00:05:39,260 --> 00:05:43,300
We had surplus in the general fund, we had surplus in the sewer fund, and we essentially

111
00:05:43,300 --> 00:05:46,040
actually plugged the gap on an annual basis.

112
00:05:46,600 --> 00:05:48,980
We didn't formalize it at the time, we just plugged the gap.

113
00:05:49,100 --> 00:05:51,280
So organizational-wide, the budget was great,

114
00:05:51,580 --> 00:05:54,460
but honestly a bit unsustainable from the water fund

115
00:05:54,460 --> 00:05:56,480
considering it's a separate business entity.

116
00:05:57,140 --> 00:05:59,920
So in order to course correct and get us back on track

117
00:05:59,920 --> 00:06:03,440
to where we needed to go, in 2021 we pursued

118
00:06:03,440 --> 00:06:06,760
a conventional rate case and that was a 19% increase.

119
00:06:07,300 --> 00:06:10,300
And then we changed the cash funding strategy.

120
00:06:10,300 --> 00:06:12,820
Up until that point we wanted to do everything

121
00:06:12,820 --> 00:06:17,220
with cash. We didn't want to issue debt. We didn't want interest payments, etc. We're doing everything

122
00:06:17,220 --> 00:06:23,820
with cash. We started issuing debt for these projects, and that lines up with the PSC methodology

123
00:06:23,820 --> 00:06:28,880
for rate cases. I wish I could give you all the details on that. It is very complicated,

124
00:06:29,000 --> 00:06:34,220
but we know that issuing debt puts us in a more sustainable situation with PSC rate review,

125
00:06:34,300 --> 00:06:38,240
at least at that time. There's some interesting new options on the table. That's why we're

126
00:06:38,240 --> 00:06:44,380
talking to you today. So, 2021, we started that in 2024. We went for another conventional

127
00:06:44,380 --> 00:06:48,840
rate case increase. There's two different ways you can approach these rate increases

128
00:06:48,840 --> 00:06:53,000
with the PSC. You can do the conventional. You can do simplify. We didn't qualify for

129
00:06:53,000 --> 00:06:57,100
a simplified at that time. Simplified is shorter and quicker. Conventional is longer

130
00:06:57,100 --> 00:07:02,560
and more complicated. So, in 2024, we also formalized that gap funding that we were

131
00:07:02,560 --> 00:07:07,820
using early on with that 5.2 million long-term advance. And that essentially formalized

132
00:07:07,820 --> 00:07:11,860
the money that the water utility owed to the general fund as well to the sewer

133
00:07:11,860 --> 00:07:15,980
fund. So the reason we're talking about this again is because this is a

134
00:07:15,980 --> 00:07:20,500
continual step up the ladder to get our water utility to a place of fiscal

135
00:07:20,500 --> 00:07:25,920
sustainability and to do that we need to explore another rate case review. Now

136
00:07:25,920 --> 00:07:30,740
we have a couple options on the table in how we do that but there is we do

137
00:07:30,740 --> 00:07:33,800
have to pursue another rate case review. So with that I'm going to kick

138
00:07:33,800 --> 00:07:36,280
it over to Pam who will review those options with you.

139
00:07:36,760 --> 00:07:37,440
Thank you.

140
00:07:37,680 --> 00:07:37,800
Pam?

141
00:07:40,780 --> 00:07:45,180
So as was discussed at the Board of Public Works, and I believe last week at Council,

142
00:07:45,340 --> 00:07:48,080
so I apologize for not being here last Council meeting as well.

143
00:07:48,680 --> 00:07:51,460
The two options are debt financing and cash funding.

144
00:07:52,240 --> 00:07:55,620
So debt financing is what we've already started to do here in 2025.

145
00:07:55,720 --> 00:08:00,400
We borrowed a million dollars to cover the water mains that we are putting in.

146
00:08:00,720 --> 00:08:05,020
So essentially, as Kim highlighted, we don't have the cash to currently fund those

147
00:08:05,020 --> 00:08:09,400
capital projects we're doing. Our water utility is doing well. We have a lot of assets. It's

148
00:08:09,400 --> 00:08:14,740
just to stay on top of things we need to keep replacing those assets. And so we need to

149
00:08:14,740 --> 00:08:19,840
somehow find a way to fund those assets. So debt financing we can continue to do. A pro

150
00:08:19,840 --> 00:08:24,960
is that it would be a lower rate to the consumer right now. The con is that you're

151
00:08:24,960 --> 00:08:28,960
going to have issuance costs and you're going to end up paying interest expenses

152
00:08:28,960 --> 00:08:34,060
on all of that debt. So at the end of the day your rate payer is going to end

153
00:08:34,060 --> 00:08:39,320
up paying more. Just like your home, if you have cash to fund something, great, you can

154
00:08:39,320 --> 00:08:42,980
go cash fund it, but if you don't, you have to go borrow for your mortgage, get a mortgage

155
00:08:42,980 --> 00:08:47,200
for your house or for your car, you're going to have to pay all those interest costs and

156
00:08:47,200 --> 00:08:51,620
it adds up. So roughly your million dollar borrowing is going to end up costing you

157
00:08:51,620 --> 00:08:55,300
a million and a half by the time we've paid it all off. So we would have to

158
00:08:55,300 --> 00:08:59,920
continue to do debt financing every single year, borrowing a million dollars to cover

159
00:08:59,920 --> 00:09:04,400
that capital. Now we do anticipate doing more than a million dollars of capital, so we anticipate

160
00:09:04,400 --> 00:09:08,800
the rate being able to cover a little bit of it. We're still looking at doing 1.2 to

161
00:09:08,800 --> 00:09:13,440
1.5 million dollars of capital, but it's not going to cover the full thing, so we'd have

162
00:09:13,440 --> 00:09:18,580
to continue to keep borrowing. Another con is that intergenerational equity burdening.

163
00:09:19,140 --> 00:09:22,880
So users in those later years are now going to have to pay that interest. They're

164
00:09:22,880 --> 00:09:26,780
going to pay that extra amount that you have burdened them with by taking out

165
00:09:26,780 --> 00:09:29,700
this huge loan every single year to cover it.

166
00:09:30,780 --> 00:09:36,480
And then that will cause the increased debt, could also be a negative towards the city.

167
00:09:37,060 --> 00:09:41,360
As we continue to borrow, we do have a debt threshold that we have to maintain and stay

168
00:09:41,360 --> 00:09:43,300
within with all of our other projects as well.

169
00:09:43,860 --> 00:09:45,880
The other option that we have is cash funding.

170
00:09:46,580 --> 00:09:52,400
And one of those new things that the PSC has for cash funding is expense depreciation,

171
00:09:52,400 --> 00:10:00,640
which is we can fund it through the rate right now that will allow us to fund an additional million of capital through the rate increase

172
00:10:00,640 --> 00:10:04,440
so that we don't have to go out and do the million dollars of borrowing every single year.

173
00:10:05,040 --> 00:10:14,640
Now, this has only been done so far by four municipalities. We would be the fifth, but it tends to be, it would be my preferred option in this case.

174
00:10:14,640 --> 00:10:17,500
So a pro would be it's a lower rate over time.

175
00:10:18,200 --> 00:10:20,560
So in 20 years, you've continued to borrow a million

176
00:10:20,560 --> 00:10:22,280
every single year for 20 years,

177
00:10:22,520 --> 00:10:24,740
you're gonna have all this outstanding debt,

178
00:10:25,060 --> 00:10:26,860
you're going to have all these interest payments

179
00:10:26,860 --> 00:10:30,500
that you're now paying because you did the debt financing.

180
00:10:30,700 --> 00:10:31,640
If you do cash funding,

181
00:10:32,120 --> 00:10:33,560
you're not gonna have any of this debt.

182
00:10:33,900 --> 00:10:36,400
You're gonna have paid a higher rate upfront,

183
00:10:37,080 --> 00:10:38,980
but at the end of the day in 20 years,

184
00:10:39,080 --> 00:10:40,360
you're gonna have a lower rate

185
00:10:40,360 --> 00:10:42,440
than if you went and debt financed now.

186
00:10:43,460 --> 00:10:48,620
Another pro then is the opposite of your cons from the debt is the intergenerational equity.

187
00:10:48,960 --> 00:10:54,000
Users in the early years pay their fair share of costs rather than burdening them later on.

188
00:10:54,820 --> 00:10:58,340
The water utility would be debt-free, which I think is a positive.

189
00:10:58,600 --> 00:11:00,720
If we could be debt-free from the whole city, I would like that.

190
00:11:00,820 --> 00:11:05,080
That's just not the way levy limits let us do our purchasing of our capital items.

191
00:11:05,660 --> 00:11:08,720
The con is that we're going to have that higher rate year one.

192
00:11:08,720 --> 00:11:18,820
So if we were to approve this now, it would take effect hopefully January of 2027 and that rate increase will be larger than if we did the debt funding to begin with.

193
00:11:19,120 --> 00:11:22,600
So in summary, that's your pros and cons. Any quick questions on that?

194
00:11:24,970 --> 00:11:25,530
All the person.

195
00:11:25,850 --> 00:11:30,610
I'm not going to say it exactly right. So you're going to have to dig for what I'm trying to say.

196
00:11:30,610 --> 00:11:36,950
I know that we get state funding based on our debt ratio or there's funding that comes

197
00:11:36,950 --> 00:11:39,890
based on debt ratio that the city carries, right?

198
00:11:41,890 --> 00:11:48,610
We have the ability to borrow based on what our equalized value is, but being the water

199
00:11:48,610 --> 00:11:51,570
utility that is going to be separate than the rest of it.

200
00:11:51,570 --> 00:11:52,690
So that was my question.

201
00:11:52,810 --> 00:11:56,550
So that would affect that, but because it's entirely separate, that would not.

202
00:11:56,610 --> 00:11:57,430
So do you think I probably should?

203
00:11:57,730 --> 00:11:57,990
Okay.

204
00:11:57,990 --> 00:12:02,490
Okay, okay before we continue here, so we're doing this all legal

205
00:12:02,950 --> 00:12:08,470
So we can continue the discussion and banter back and forth. I'm going to you did everything fine. That's no problem

206
00:12:08,470 --> 00:12:12,250
I'm gonna make a motion to approve make sure got the right one here

207
00:12:14,350 --> 00:12:14,790
The

208
00:12:16,410 --> 00:12:21,230
Cash funded, I'm sorry approve the hybrid model that will be presented tonight

209
00:12:22,250 --> 00:12:24,450
It was doing this to get this going here

210
00:12:24,450 --> 00:12:26,890
Okay, motion by me, second by Alderperson Gantt

211
00:12:26,890 --> 00:12:28,850
to approve what we're seeing right now

212
00:12:28,850 --> 00:12:31,030
and we'll talk about the hybrid method.

213
00:12:31,130 --> 00:12:32,990
It can change as we move forward here,

214
00:12:32,990 --> 00:12:34,730
but we have to have a motion and second on the floor.

215
00:12:36,270 --> 00:12:37,310
Okay, go ahead.

216
00:12:37,650 --> 00:12:37,750
Sorry.

217
00:12:38,430 --> 00:12:38,810
No, no problem.

218
00:12:38,810 --> 00:12:41,450
Okay, so then we took those two models

219
00:12:41,950 --> 00:12:43,490
that we had presented previously,

220
00:12:44,010 --> 00:12:45,530
the debt financing and the cash funding

221
00:12:45,530 --> 00:12:47,990
and we created this hybrid model that was requested.

222
00:12:48,510 --> 00:12:50,230
So the hybrid model is going to be,

223
00:12:50,830 --> 00:12:53,170
well, let's kick the can down the road a little bit.

224
00:12:53,170 --> 00:12:55,910
Let's not do this large rate increase right away.

225
00:12:56,150 --> 00:12:57,670
Let's borrow for another two years.

226
00:12:58,150 --> 00:13:05,530
So borrow in 26, 27, 28, and then do our big cash funding

227
00:13:05,530 --> 00:13:06,530
for 29.

228
00:13:07,230 --> 00:13:09,170
Now what that would result in is we're

229
00:13:09,170 --> 00:13:10,090
going to have additional debt.

230
00:13:10,390 --> 00:13:12,770
We'll have four years worth of that million dollars of debt

231
00:13:12,770 --> 00:13:13,950
that we're going to have to pay off.

232
00:13:14,750 --> 00:13:19,370
But it does decrease that rate up front.

233
00:13:19,550 --> 00:13:21,290
So it won't be a 19%.

234
00:13:21,290 --> 00:13:26,950
Currently, this is showing an estimate by 2029 of only a 16% increase, but that is still

235
00:13:26,950 --> 00:13:31,190
doing the 5% now, because we need, I'll make that clear, we need to do a rate increase

236
00:13:31,190 --> 00:13:31,670
either way.

237
00:13:31,730 --> 00:13:36,930
We need to either do the 5% or we need to push forward with the cash funding, which these

238
00:13:36,930 --> 00:13:39,610
rates are just estimates, right, PSC has to set those rates.

239
00:13:39,710 --> 00:13:40,450
They approve the rates.

240
00:13:40,870 --> 00:13:45,070
Once we decide we want to do the rate case, we can give input and guidance on why

241
00:13:45,070 --> 00:13:48,450
we think maybe we don't like what rate they're going to come back with, but ultimately

242
00:13:48,450 --> 00:13:49,630
they make those decisions.

243
00:13:49,630 --> 00:13:53,490
decisions. They make those decisions for how much it is for a residential or the different

244
00:13:53,490 --> 00:13:58,310
sizes of the pipes that's all on them. We don't get to make those decisions.

245
00:13:59,130 --> 00:14:06,550
So the hybrid would allow us to, it would have a smaller impact today, but by the end

246
00:14:06,550 --> 00:14:11,730
of the model that we have by 2041, you start to see that it now exceeds where we would

247
00:14:11,730 --> 00:14:16,690
have been if we just did the cash funding today. So my recommendation would be to

248
00:14:16,690 --> 00:14:19,510
to start the cash funding today to start it for the 2027.

249
00:14:19,690 --> 00:14:22,790
It would be still a million dollars of borrowing in 2026

250
00:14:23,270 --> 00:14:24,390
for this next year,

251
00:14:24,430 --> 00:14:25,550
because we won't have it started yet,

252
00:14:25,830 --> 00:14:29,330
but beginning with 27 to just rip off that bandaid,

253
00:14:29,450 --> 00:14:30,990
go for the larger increase now,

254
00:14:31,190 --> 00:14:34,250
because down the road by 2041 and beyond,

255
00:14:34,650 --> 00:14:37,310
you're going to see those savings for your taxpayer.

256
00:14:39,780 --> 00:14:42,020
This is the detail that kind of makes up

257
00:14:42,020 --> 00:14:43,540
that those rates.

258
00:14:44,460 --> 00:14:45,420
So we went back through,

259
00:14:45,900 --> 00:14:48,020
we added in this additional scenario here.

260
00:14:48,020 --> 00:14:49,880
We have the cash funded, the hybrid and the debt.

261
00:14:50,620 --> 00:14:53,180
We have the first row of each is an F or an S.

262
00:14:53,540 --> 00:14:56,400
That's either a full rate case, a conventional rate case,

263
00:14:56,460 --> 00:14:57,820
or a simplified rate case.

264
00:14:58,520 --> 00:14:59,980
Again, with the simplified...

265
00:15:00,020 --> 00:15:10,820
That's something we can go in. We plug in our financials that we had from the year before from our audit and they tell us, yes, you qualify for a 2% or 3% or whatever the rate may be that year.

266
00:15:11,120 --> 00:15:24,520
Again, PSC sets those rates. The full conventional rate case requires us to go hire a consultant, then we have to go through a rate case and we have to pay the PSC to be able to go back and forth and have those meetings with them.

267
00:15:24,520 --> 00:15:31,460
And these are, again, what we are estimating that we would need to be sustainable with a

268
00:15:31,460 --> 00:15:33,660
lot of factors remaining the same across the board.

269
00:15:35,100 --> 00:15:39,720
One of the things I'll point out is next, we had the question of, well, Central Brown

270
00:15:39,720 --> 00:15:41,920
County water, that's who we purchase our water from.

271
00:15:42,460 --> 00:15:47,660
We anticipate that the debt from Central Brown County water will be paid off by 2036.

272
00:15:48,420 --> 00:15:52,800
So if that debt is paid off, the anticipation would be that our rates for the water

273
00:15:52,800 --> 00:15:53,920
we're purchasing will decrease?

274
00:15:55,480 --> 00:15:56,980
Yes, they may, right?

275
00:15:57,240 --> 00:15:58,840
Like anything, you would hope that they decreased.

276
00:15:59,040 --> 00:16:00,220
There could be additional borrowing.

277
00:16:00,780 --> 00:16:02,700
There could be a lot of additional factors

278
00:16:02,700 --> 00:16:03,860
that could impact that.

279
00:16:04,240 --> 00:16:06,160
So when we built those other three scenarios,

280
00:16:06,520 --> 00:16:07,900
we did not take that into account.

281
00:16:07,980 --> 00:16:09,720
We didn't take it into account for any of them.

282
00:16:10,360 --> 00:16:14,000
Essentially, if we do see a rate decrease by 2036,

283
00:16:14,620 --> 00:16:16,600
we're just going to be able to soften the blow.

284
00:16:16,680 --> 00:16:17,940
We're not going to have to go and do

285
00:16:17,940 --> 00:16:19,740
additional conventional rate cases.

286
00:16:19,760 --> 00:16:21,800
Or maybe we don't even need a simplified rate case

287
00:16:21,800 --> 00:16:25,840
just because our cash flow is sufficient for our needs of our capital.

288
00:16:26,880 --> 00:16:29,400
What we're going to do, no matter which scenario you go with,

289
00:16:29,520 --> 00:16:31,080
every year we're going to take a look at this.

290
00:16:31,680 --> 00:16:36,120
I think what we've learned from the past is that if you don't stay on top of it

291
00:16:36,120 --> 00:16:38,840
and you don't do these incremental little increases,

292
00:16:39,120 --> 00:16:41,080
you're going to run into a situation like this

293
00:16:41,080 --> 00:16:44,120
where you're going to need these more larger, drastic increases.

294
00:16:44,620 --> 00:16:46,300
I don't think anybody wants to see those.

295
00:16:46,680 --> 00:16:50,000
It's much easier to see a little 2% or 3% increase every year

296
00:16:50,000 --> 00:16:54,180
every other year than trying to see a 19% increase on any bill.

297
00:16:55,560 --> 00:17:00,280
I can go through and read the whole slide if you'd like, but I'd prefer not to bore you

298
00:17:00,280 --> 00:17:00,500
guys.

299
00:17:00,700 --> 00:17:02,060
Do you have any additional?

300
00:17:02,260 --> 00:17:05,100
Can you just clarify on the slide with the hybrid option on there?

301
00:17:06,080 --> 00:17:13,800
It said increases in 26 and then, so it's a 5.3 in 26 and then it's a 5.3, is it,

302
00:17:14,540 --> 00:17:15,400
so it's...

303
00:17:15,400 --> 00:17:19,460
It would be 5.35 is our estimate for if we just did the conventional rate case

304
00:17:19,460 --> 00:17:24,740
right now without the cash funding. So we would get that for 26. It doesn't take as

305
00:17:24,740 --> 00:17:29,840
long as the full cash funding, the expense depreciation. So we would potentially be able

306
00:17:29,840 --> 00:17:34,440
to see that impact within 26. It wouldn't have to wait till 27. But then we're still

307
00:17:34,440 --> 00:17:39,620
proposing to do the cash funding, just we would wait until 2029 to propose that.

308
00:17:39,820 --> 00:17:43,660
Okay. So it's just one increase in 26 and then potentially nothing until 29.

309
00:17:43,840 --> 00:17:46,980
And nothing until 29. That's the way we built the scenario at least.

310
00:17:46,980 --> 00:17:51,220
Okay, but it becomes part of the baseline then moving forward. Yeah, you're right

311
00:17:51,220 --> 00:17:56,060
So essentially it's a 16.1% increase on top of the five point yeah

312
00:17:56,060 --> 00:18:00,300
Because originally I thought it meant that I thought that was a misprint in it said 26 and 27

313
00:18:00,300 --> 00:18:05,880
I thought you were doing like a you know two-year increase, but it's just that one in 26 and then it would be another in

314
00:18:05,880 --> 00:18:11,120
Yeah, yeah, that's kind of what we built in here with the hybrid is that we do the full rate case here in 27

315
00:18:11,120 --> 00:18:15,800
And then another full in 29. Okay. Yep. Thanks. Thank you

316
00:18:15,800 --> 00:18:20,400
I'll do person carpenter have the previous screen back please and then I'm going to want this screen. Yep

317
00:18:20,400 --> 00:18:23,740
So 2026 you're taking a five point three five percent

318
00:18:24,620 --> 00:18:26,940
When we're talking about going to cash fund expense

319
00:18:27,740 --> 00:18:33,560
We're having our discussions the whole theory of that was that's probably not going to happen till 2027 in reality

320
00:18:33,560 --> 00:18:38,300
Yeah, it's going to take almost a year to do that. So that 18.75 is actually

321
00:18:38,300 --> 00:18:45,120
Might as I say at 2027 possible late 2026 number just probably 27. Yes. Yeah

322
00:18:45,120 --> 00:18:47,720
So we'd still probably, we'd have to borrow still a million.

323
00:18:47,720 --> 00:18:55,780
So you're adding 21, it'll be a 21% instead of 18.75% if you put it in reality, if you

324
00:18:55,780 --> 00:19:00,380
want to go with the hybrid and stretch it out to 2029, you're adding another 3% on this.

325
00:19:00,720 --> 00:19:07,800
Then you flip over to the next page because then you go to your financing.

326
00:19:08,500 --> 00:19:12,880
So when you do the simplify, if you go on the top one, it's simplified all the

327
00:19:12,880 --> 00:19:14,380
way through except the very first time.

328
00:19:15,120 --> 00:19:17,860
You go to your hybrid, you got one extra,

329
00:19:17,980 --> 00:19:19,520
so what you're paying a consultant again,

330
00:19:19,740 --> 00:19:21,420
because we're gonna pay a consultant this time.

331
00:19:22,080 --> 00:19:24,860
You go to debt financing, there's one, two, three,

332
00:19:25,260 --> 00:19:28,540
four, five, plus the one we're doing right now,

333
00:19:28,840 --> 00:19:31,200
a paying a consultant every time to do something,

334
00:19:31,380 --> 00:19:31,760
you know what I mean?

335
00:19:32,000 --> 00:19:37,720
So I guess I'm more in favor of ripping the band aid

336
00:19:37,720 --> 00:19:39,160
off right now, even though it might hurt,

337
00:19:40,440 --> 00:19:45,340
Instead of passing debt down to other people, as I get older, maybe it's beneficial to me

338
00:19:45,340 --> 00:19:46,940
because I might not last this time.

339
00:19:47,180 --> 00:19:49,060
But as other people, you're passing out.

340
00:19:49,180 --> 00:19:50,300
You're kicking the can down the road.

341
00:19:50,660 --> 00:19:53,660
So I know we're on discussion right now with the high stride.

342
00:19:54,200 --> 00:19:57,980
And I'm just expressing how I feel I would go with the cash flow.

343
00:19:57,980 --> 00:20:01,060
Well, and I think it's important that you mention that because right now I'm assuming

344
00:20:01,060 --> 00:20:04,380
you're saying that you're not for debt financing scenario at all.

345
00:20:04,560 --> 00:20:05,520
I'm not for debt financing.

346
00:20:05,860 --> 00:20:08,020
I work for the industry all my life.

347
00:20:08,020 --> 00:20:14,500
If I know how we got here, we battled off of when we went with clear water known as clear

348
00:20:14,500 --> 00:20:19,260
water now when it was Green Bay with our sewers and we held our rates off because they were

349
00:20:19,260 --> 00:20:22,200
hitting us so hard for capital improvements.

350
00:20:22,380 --> 00:20:25,860
They went nuts and they had double digit increases on sewer rates.

351
00:20:26,300 --> 00:20:30,540
So we absorbed it in our water rates and now the can comes back around.

352
00:20:30,640 --> 00:20:32,180
Everything you kick around comes around.

353
00:20:32,720 --> 00:20:36,320
Yeah, on the same page as you as well, debt financing scenario is something I think

354
00:20:36,320 --> 00:20:39,120
should not be on the table, nor should we consider any more.

355
00:20:39,960 --> 00:20:41,100
But then it comes down to the other two.

356
00:20:41,160 --> 00:20:44,920
This is just me and obviously all the person, Carpenter speaking, and we just differ on

357
00:20:44,920 --> 00:20:46,540
which scenario to pursue.

358
00:20:47,300 --> 00:20:52,480
Personally myself, based on the environment we're in right now, national filters down

359
00:20:52,480 --> 00:20:57,440
to what we have right now with inflation and whatever is going on, timing is not

360
00:20:57,440 --> 00:21:00,600
the best of it to do it, but I'm sure it wasn't the best of it to do it either

361
00:21:00,600 --> 00:21:03,660
back in 2021, and we proceeded and went ahead and did it.

362
00:21:03,660 --> 00:21:08,180
So I'd be more inclined to go to a hybrid model just because of the current conditions,

363
00:21:08,660 --> 00:21:10,820
but I'm also open to discussion as well, too.

364
00:21:11,080 --> 00:21:11,220
Yeah.

365
00:21:12,820 --> 00:21:13,720
I'll do it personally.

366
00:21:13,940 --> 00:21:14,760
Carpenter, you can finish, please.

367
00:21:15,280 --> 00:21:20,900
But that's the reason I'm stating this is in effect until late 2026.

368
00:21:21,580 --> 00:21:24,480
So you're adding a lesser time of effect.

369
00:21:24,720 --> 00:21:24,940
You know what I mean?

370
00:21:25,040 --> 00:21:26,720
It is not going to happen right tomorrow.

371
00:21:27,020 --> 00:21:27,520
That's a really good point.

372
00:21:27,840 --> 00:21:28,160
You know what I mean?

373
00:21:28,380 --> 00:21:30,000
This is, she's saying 2027.

374
00:21:30,000 --> 00:21:34,440
I'm giving late 2026, as what the rate case is going to take.

375
00:21:34,600 --> 00:21:36,520
So we're already moving on a year.

376
00:21:36,900 --> 00:21:37,880
I'm not doing nothing.

377
00:21:38,020 --> 00:21:39,580
Our rate's just going to stay where it is.

378
00:21:40,160 --> 00:21:42,060
It's not going to go up for a whole another year,

379
00:21:42,380 --> 00:21:45,160
so that 5% isn't there right at this beginning.

380
00:21:46,100 --> 00:21:47,340
It's just food for thought.

381
00:21:47,620 --> 00:21:48,400
It's a very good point.

382
00:21:49,700 --> 00:21:50,580
Alderperson Conniger.

383
00:21:50,960 --> 00:21:54,500
Can you talk a little bit about your feelings of risk

384
00:21:54,500 --> 00:21:58,340
in either case for cash or hybrid?

385
00:21:58,920 --> 00:22:04,440
just in general. I mean, I know we don't have crystal balls, but one is is waiting

386
00:22:04,440 --> 00:22:10,300
to get the loan a little bit later, right? And one would be taking advantage of that

387
00:22:10,300 --> 00:22:15,020
right away that locks you into a rate. But then if you refinance, there's

388
00:22:15,020 --> 00:22:20,280
costs to that. So there's so many variables that when you need to borrow,

389
00:22:20,500 --> 00:22:23,220
you just should borrow that doesn't I don't think it's worth playing the

390
00:22:23,220 --> 00:22:27,680
game of I'm gonna wait another year. We'll borrow double. I mean right now

391
00:22:27,680 --> 00:22:32,020
As it is for our other capital, we are borrowing every single year, so we're already going

392
00:22:32,020 --> 00:22:33,640
through some of those debt issuance costs.

393
00:22:34,400 --> 00:22:40,040
It's not a lot extra work then just to add an additional borrowing onto that.

394
00:22:40,240 --> 00:22:44,400
There are other debt models that we, I mean, there are different ways of borrowing too.

395
00:22:44,480 --> 00:22:47,340
We don't have to just do general obligation debt, right?

396
00:22:47,400 --> 00:22:52,480
We can do water revenue bonds, you know, there are different clean water loans and

397
00:22:52,480 --> 00:22:53,820
stuff that we can look at too.

398
00:22:54,420 --> 00:22:59,900
So, I'm not, this is using, I don't recall exactly what rate we used, but we used a conservative

399
00:22:59,900 --> 00:23:04,280
rate for every single year of borrowing when we were calculating it out, and it was the

400
00:23:04,280 --> 00:23:06,320
same across the whole model, so.

401
00:23:06,860 --> 00:23:12,400
One additional layer of risk that has nothing to do with the debt, you know, on the hybrid

402
00:23:12,400 --> 00:23:17,400
you are relying, and you were hoping that a future council in 2029 still wants to

403
00:23:17,400 --> 00:23:19,860
do cash versus something else.

404
00:23:19,860 --> 00:23:25,560
That's because I think as staff we all see very clearly that the best business decision

405
00:23:26,040 --> 00:23:31,220
is the expense depreciation model for the city and even long term for the water payer.

406
00:23:31,700 --> 00:23:36,460
The hybrid model gives a little breathing room and is absolutely possible, but you

407
00:23:36,460 --> 00:23:40,740
do have that risk that you're relying on a future council to stick with that expense

408
00:23:40,740 --> 00:23:43,780
depreciation versus changing their mind and wanting to say debt funding.

409
00:23:44,000 --> 00:23:48,620
What if we go the cash option sooner than it is up here in the hybrid model?

410
00:23:49,240 --> 00:23:53,060
Is that possible that is that so that's the first option? Well, yeah

411
00:23:53,060 --> 00:23:58,220
I mean he's saying I think it's kind of a hybrid of the 2029 hybrid scenario where we get there sooner than later

412
00:23:58,220 --> 00:24:01,060
Where the 1610 isn't in 29?

413
00:24:01,920 --> 00:24:04,960
You covered up in different you kind of covered up in different pies

414
00:24:04,960 --> 00:24:12,740
So you get to that finish in a different path. So a little bit what Dan's saying, you know where we get, you know

415
00:24:13,600 --> 00:24:16,220
Do you know what I'm kind of saying? I think you can say I hate to do this

416
00:24:16,220 --> 00:24:22,640
Your chart you're saying look the blue line here is if we're cash funding all of it right red is if we do this hybrid

417
00:24:22,640 --> 00:24:27,760
If you move it up earlier, and we start the hybrid before 29 you start in 28

418
00:24:27,760 --> 00:24:31,860
Let's just get a move your line down a little bit more right it brings you closer to where I mean

419
00:24:31,860 --> 00:24:34,520
It's I mean we're gonna try to try to find some common ground here

420
00:24:34,520 --> 00:24:39,440
That might be the solution that could potentially work because it's a little bit of both that it is a lot of work

421
00:24:39,440 --> 00:24:42,560
Yeah, that's stacking two conventional

422
00:24:46,220 --> 00:24:50,040
I love the creative. I thought I would try. I had Dan on this one. He was there.

423
00:24:50,060 --> 00:24:53,720
Well, I was thinking there, but I'm still, I'm on what I'm on right now.

424
00:24:54,840 --> 00:24:58,060
We're all per discussion. I'm per discussion on anything.

425
00:24:58,600 --> 00:25:01,240
Thank you. Other comments? Other person Hanson.

426
00:25:02,020 --> 00:25:05,820
Yeah, Pam, the general fund is owed $2 million

427
00:25:05,820 --> 00:25:10,080
right now by the water fund. If we were to theoretically forgive

428
00:25:10,080 --> 00:25:13,740
that debt, I know the water funds supposed to pay like

429
00:25:13,740 --> 00:25:17,480
300,000 every year to the general funds for like the next seven, eight years.

430
00:25:19,120 --> 00:25:23,180
And if they didn't do that, it wouldn't go into unassigned reserve every year.

431
00:25:23,560 --> 00:25:26,740
I'm wondering if unassigned reserve would be able to absorb that hit.

432
00:25:27,480 --> 00:25:34,480
So you're saying you want to take your property tax, pay your money, and offset the water

433
00:25:34,480 --> 00:25:39,380
utility fund with the unassigned reserves from the property tax and go against your

434
00:25:39,380 --> 00:25:40,120
water utility.

435
00:25:40,600 --> 00:25:42,740
Can you do it technically?

436
00:25:42,740 --> 00:25:47,300
likely, but I do want to make it very clearly. There are two separate groups, not every taxpayer.

437
00:25:48,060 --> 00:25:53,600
Every taxpayer probably has a water bill, but not every water bill owner or person owns

438
00:25:53,600 --> 00:25:58,980
that property. You have multi-family homes where you have one taxpayer. Sometimes you

439
00:25:58,980 --> 00:26:04,640
have schools and nonprofits and some businesses that are tax exempt that have water bills

440
00:26:04,640 --> 00:26:11,340
but they don't have tax bills. You're taking money that somebody else has paid

441
00:26:11,340 --> 00:26:15,360
in and using it for something that offsets, I guess, different people.

442
00:26:15,640 --> 00:26:16,560
You can do it.

443
00:26:17,820 --> 00:26:24,640
That would be a request to transfer funds to cancel the loan, I guess, you're not transferring

444
00:26:24,640 --> 00:26:25,000
the funds.

445
00:26:25,780 --> 00:26:27,340
There are other options you can request.

446
00:26:28,480 --> 00:26:32,900
I don't know legally what we can do after we've already approved this resolution to

447
00:26:32,900 --> 00:26:38,260
do this long-term advanced payable, but we could look at forgiving the interest.

448
00:26:38,260 --> 00:26:42,340
right now are paying interest for the water utilities paying interest back to the general

449
00:26:42,340 --> 00:26:43,600
fund for the amount that it owed.

450
00:26:44,060 --> 00:26:44,200
Why?

451
00:26:44,300 --> 00:26:49,500
Because if we had it on our books, the general fund would earn that interest, not just offsetting

452
00:26:49,500 --> 00:26:50,780
the debt that the water fund had.

453
00:26:50,960 --> 00:26:53,320
But there are certainly options like that.

454
00:26:53,760 --> 00:26:54,940
It would not be my recommendation.

455
00:26:56,620 --> 00:27:03,940
A separate matter, I had a constituent email me wondering if we could do a graduated increase

456
00:27:03,940 --> 00:27:09,280
were if you use higher levels of water, the rate goes up.

457
00:27:09,560 --> 00:27:18,000
Right now it's the inverse, first 50,000 gallons, it's $8.18 per gallon, next 450,760 per thousand

458
00:27:18,000 --> 00:27:22,400
gallons, over 500,000 gallons, 675 per gallon.

459
00:27:22,940 --> 00:27:25,400
So the more water you use, the rate goes down.

460
00:27:27,160 --> 00:27:33,680
This constituent felt that it should be reversed so that the highest water users pay gradually

461
00:27:33,680 --> 00:27:40,000
higher rates. Is that something that can be looked at by the PSC? That is something

462
00:27:40,000 --> 00:27:44,520
the council can decide to do, yes. So last January, before we did the last rate

463
00:27:44,520 --> 00:27:49,140
increase, we did bring that to council. Do we want to keep the declining

464
00:27:49,140 --> 00:27:53,640
rate, which is what we have right now? So the higher volume you end up using,

465
00:27:53,820 --> 00:27:57,280
the rate starts to go down. I think part of the reason that we have that

466
00:27:57,280 --> 00:28:01,040
is a lot of those are commercial and industrial businesses that we have

467
00:28:01,040 --> 00:28:06,040
here in town and we're trying not to negatively affect them for being here and charging them

468
00:28:06,040 --> 00:28:11,720
more. You can do inclining, declining, or you can keep a flat rate. And that is, yes,

469
00:28:11,840 --> 00:28:16,720
definitely something that council could decide as part of this rate case, whether we cash fund

470
00:28:16,720 --> 00:28:22,860
or just do the conventional and do the 5.35. We could change the way we're doing those rates,

471
00:28:23,160 --> 00:28:26,500
but I think that's a separate discussion for this. And we don't get to pick again

472
00:28:27,100 --> 00:28:32,220
And those rates and at what point it's changing, that's going to be the PSC that's going to

473
00:28:32,220 --> 00:28:32,680
set those.

474
00:28:33,120 --> 00:28:36,660
Pam, would it be fair to say that regardless of the option you choose, it doesn't really

475
00:28:36,660 --> 00:28:38,360
make a difference on your long term.

476
00:28:38,480 --> 00:28:40,360
You're still solving the problem in the same way.

477
00:28:41,100 --> 00:28:41,760
It's kind of how-

478
00:28:41,760 --> 00:28:42,400
It's who's paying it.

479
00:28:42,460 --> 00:28:42,560
Right.

480
00:28:42,720 --> 00:28:44,860
We still need that full pie.

481
00:28:45,580 --> 00:28:47,140
It's how we divvy that up.

482
00:28:47,260 --> 00:28:47,900
That's a separate discussion.

483
00:28:48,140 --> 00:28:48,960
We'll have nothing to do with this.

484
00:28:49,260 --> 00:28:50,240
I mean, it's good he brought it up, though.

485
00:28:51,140 --> 00:28:52,520
It's all part of the water, yes.

486
00:28:55,060 --> 00:29:01,540
I'll just say, I think the hybrid, I like the idea of the hybrid, but I think it's

487
00:29:01,540 --> 00:29:03,640
just almost too similar to the debt financing.

488
00:29:03,840 --> 00:29:07,200
I almost wish there was a larger increase that first year.

489
00:29:07,680 --> 00:29:12,140
Would that, wouldn't that offset a potential larger increase back in like 29 then?

490
00:29:12,360 --> 00:29:16,980
If we do a conventional rate case right now, our consultant is estimating that we

491
00:29:16,980 --> 00:29:18,080
will only get a 5.5.

492
00:29:18,100 --> 00:29:18,540
Gotcha.

493
00:29:18,640 --> 00:29:20,120
Because again, we don't get to choose.

494
00:29:20,260 --> 00:29:21,280
Yeah, I keep forgetting about that.

495
00:29:21,280 --> 00:29:23,420
There's not that hybrid on the cash funding.

496
00:29:23,660 --> 00:29:26,560
I guess, I mean, we could look at potentially cash funding

497
00:29:26,560 --> 00:29:29,520
instead of a million of capital cash funding,

498
00:29:29,600 --> 00:29:31,440
only half a million that first year or something.

499
00:29:31,680 --> 00:29:34,560
Yeah, I just really liked the idea of kind of paying it off,

500
00:29:34,780 --> 00:29:37,140
not indebting the future.

501
00:29:37,380 --> 00:29:39,400
So I don't know, I think kind of ripping off a band-aid

502
00:29:39,400 --> 00:29:41,060
is kind of where I'm going towards.

503
00:29:41,440 --> 00:29:43,760
So I think that's, yeah.

504
00:29:44,220 --> 00:29:44,680
Thank you.

505
00:29:46,060 --> 00:29:47,320
Oh, the person answered, were you done?

506
00:29:48,200 --> 00:29:49,040
Did you have something else?

507
00:29:49,040 --> 00:29:50,820
Well, I was just going to bring up two.

508
00:29:51,380 --> 00:29:54,840
When we went back to the context with the history going back to 2011,

509
00:29:55,520 --> 00:29:58,860
my understanding too was, I think the person Carpenter mentioned this,

510
00:29:59,740 --> 00:29:59,900
the

511
00:30:01,340 --> 00:30:05,520
The Green Bay Metropolitan sewer district, we're doing the sewer rate increases over the

512
00:30:05,520 --> 00:30:10,340
next decade. So the council in 2011 basically decided we're going to freeze the water rates

513
00:30:10,340 --> 00:30:15,720
until those increases are done. Is that correct? That's my understanding. I would defer to Scott

514
00:30:15,720 --> 00:30:19,900
here. Yes. Okay. So I just think that's an important piece of context, too, because

515
00:30:20,400 --> 00:30:22,980
council in 2011 didn't want both of them to go up at the same time.

516
00:30:29,940 --> 00:30:30,840
All their carpenters?

517
00:30:32,300 --> 00:30:37,820
I'll pay you back on that I've been on since 2016 and that was the discussion

518
00:30:37,820 --> 00:30:42,960
since I've been on in 2016 because the sewer rates were going up and that was

519
00:30:42,960 --> 00:30:47,680
the discussion as whole off if we could on the water rate yeah you know I mean

520
00:30:47,680 --> 00:30:52,700
so where that 2017 comes in that was being discussed in 2016 all the

521
00:30:52,700 --> 00:30:58,380
motion. By the time we hit 2017 I mean looking back at the financial statements

522
00:30:58,380 --> 00:31:05,200
We were roughly losing a million dollars a year so it was pretty dramatic when we started to lose that all the other

523
00:31:05,200 --> 00:31:07,580
Operating expenses caught up to the operating revenues

524
00:31:07,580 --> 00:31:10,220
And we didn't have the cash funding there to cover the capital

525
00:31:10,220 --> 00:31:12,640
I just didn't want to put the blame on totally on the

526
00:31:13,270 --> 00:31:17,340
2011 or whoever was there because this was discussion in 2016 also

527
00:31:17,340 --> 00:31:20,700
I'll just let you know that that on the rate not being increased

528
00:31:21,320 --> 00:31:23,880
And again, so people understand that are listening or whatever

529
00:31:23,880 --> 00:31:27,540
However, this will be applying for a rate case, and as Dan stated before, it wouldn't

530
00:31:27,540 --> 00:31:29,840
be until possibly late 2026.

531
00:31:30,340 --> 00:31:34,260
So there's no immediacy to any of this, but I want to make sure people understand that.

532
00:31:34,380 --> 00:31:38,120
This is to approve a rate application that...

533
00:31:38,120 --> 00:31:41,440
We just want to be very clear on what it could potentially be.

534
00:31:41,700 --> 00:31:47,360
It could be a large 19 percent, and once we decide to proceed that way, we don't...

535
00:31:47,360 --> 00:31:52,500
PSC sets that rate, so we don't have a lot of leeway to say, wait, wait, that's

536
00:31:52,500 --> 00:31:56,480
too much we'd have to completely scrap it and so we don't want to spend all that

537
00:31:56,480 --> 00:32:01,040
time going through our testimony and creating all the documentation we need

538
00:32:01,040 --> 00:32:04,740
to to go through this full-rate case. And you're saying that as well. So timeline-wise

539
00:32:04,740 --> 00:32:08,300
you would be applying what say there's some kind of resolution we approved

540
00:32:08,300 --> 00:32:13,660
today. When do you apply for the rate? I believe our consultant is ready to go

541
00:32:13,660 --> 00:32:17,560
with that the initial part right away and she is estimating that it will

542
00:32:17,560 --> 00:32:20,160
take us a year to get through the whole thing. I just want to make sure

543
00:32:20,160 --> 00:32:24,080
understand, I know all of us do, but I hear it out there as well. It's not going to happen.

544
00:32:24,100 --> 00:32:26,260
Yes, with the expense depreciation, with the cash funding.

545
00:32:26,520 --> 00:32:29,320
Okay. Like all the person Carpenter said, it's not going to happen right away.

546
00:32:29,360 --> 00:32:32,920
A conventional rate case, the last one we did in 24 took about four months.

547
00:32:34,120 --> 00:32:41,120
I mean, we're seeking direction on essentially what type of rate case we apply for today, knowing we have to do that.

548
00:32:41,960 --> 00:32:45,940
The debt financing option is likely a shorter review.

549
00:32:45,940 --> 00:32:52,320
So if we submitted both, you know, it's a shorter review than expense depreciation.

550
00:32:52,420 --> 00:32:59,200
So if we did the hybrid model and submitted it soon, that is a shorter review.

551
00:32:59,520 --> 00:33:02,500
Those rate increases would kick in a little sooner, but they'd be lower.

552
00:33:03,040 --> 00:33:09,820
If council went expense depreciation to start, longer review, higher rate increase that would start a little later.

553
00:33:10,640 --> 00:33:11,860
Good summary, yes.

554
00:33:12,740 --> 00:33:13,620
All the person carpenter.

555
00:33:13,620 --> 00:33:19,480
I'd like to amend the motion that's on the table if if I do this properly to go to the original one

556
00:33:21,460 --> 00:33:26,700
Cash cash funding expense depreciation. Yes instead of the what is put him up again? He wants the

557
00:33:27,300 --> 00:33:32,120
He wants the first option correct. Yes. Yeah. Yes. I want to cash cash. Just we say that stop appreciation

558
00:33:32,120 --> 00:33:33,740
I want to amend the motion. All right

559
00:33:33,740 --> 00:33:38,620
We have a motion to amend the original motion which would have been mine and somebody else's can for the hybrid

560
00:33:38,620 --> 00:33:44,880
Who else is my all the person Gantz? So we have a motion to amend the original motion

561
00:33:44,880 --> 00:33:50,600
All the person carpenter would like to just go with the cash fund at expense depreciation. We need a second for that

562
00:33:50,600 --> 00:33:51,140
I'll suck it

563
00:33:51,940 --> 00:33:55,440
Motion by Alderperson carpenter was very quick here seconded by

564
00:33:56,180 --> 00:34:01,100
All the person conager for the amendment so now that we have amendment on the floor

565
00:34:01,100 --> 00:34:05,340
We have a motion the second discussion on the amendment all the person Hanson

566
00:34:05,340 --> 00:34:08,280
Yeah, I respect those who want to just rip the bandaid off right now.

567
00:34:08,700 --> 00:34:10,580
Personally, I am with the mayor.

568
00:34:10,800 --> 00:34:15,720
I think the hybrid approach, given the inflationary pressures people are feeling now, I think

569
00:34:15,720 --> 00:34:21,600
by the end of 26, there could still be, you know, high levels of inflation that make the

570
00:34:21,600 --> 00:34:22,540
cost of living difficult.

571
00:34:22,540 --> 00:34:27,220
So I'm still in favor of the hybrid, but I appreciate those who feel differently.

572
00:34:27,800 --> 00:34:28,360
Very good.

573
00:34:28,520 --> 00:34:28,780
Thank you.

574
00:34:28,860 --> 00:34:32,220
Other discussion or comments on the amendment that we have on the floor right now?

575
00:34:34,000 --> 00:34:39,020
All the person, I would just say it definitely seems like nobody's for debt financing anymore,

576
00:34:39,100 --> 00:34:39,720
which is great.

577
00:34:39,760 --> 00:34:40,180
Correct.

578
00:34:40,340 --> 00:34:40,820
Yeah.

579
00:34:41,020 --> 00:34:41,640
That is a good thing.

580
00:34:41,960 --> 00:34:49,360
And I was, I mean, I was, I came in from public works and fan of the cash funding option.

581
00:34:51,100 --> 00:34:57,100
And I think I still like, I like that option for our residents.

582
00:34:57,840 --> 00:34:58,500
Very good.

583
00:34:58,660 --> 00:34:59,020
Thank you.

584
00:34:59,020 --> 00:35:05,440
other questions comments. All right now for the motion that we have to amend all

585
00:35:05,440 --> 00:35:13,080
those in favor say aye. Aye. Opposed? Nay. Motion carries I can tell by the voice

586
00:35:13,080 --> 00:35:18,300
here that motion carries with myself, Alderperson, Hansen voting nay. I'm nay.

587
00:35:18,880 --> 00:35:23,320
Oh and we have another one too. Alderperson Gantz is also a nay so she'd be

588
00:35:23,320 --> 00:35:34,100
hybrid. So that makes it 6 to 3. Alright, so now we're discussing, do we have to discuss

589
00:35:34,100 --> 00:35:35,240
more on this or are we done with it?

590
00:35:37,480 --> 00:35:39,260
So we're done. We're done. We're done. We're done.

591
00:35:39,660 --> 00:35:44,980
Alright. We have to vote on it. We just voted to amend it. So now we're voted on. Voting

592
00:35:44,980 --> 00:35:49,180
to approve. Okay. Now we have to vote to approve. That's my thought. But now there

593
00:35:49,180 --> 00:35:52,960
can be additional discussion on what we have right now is the new motion and second

594
00:35:52,960 --> 00:35:59,180
on the floor, correct? That's what I was getting at. Wow. All right. You need a vacation.

595
00:35:59,440 --> 00:36:02,220
You got it. I do. I should go away for a while. Why did I come back?

596
00:36:02,520 --> 00:36:05,100
Yeah, savings time. Everything needs to be found.

597
00:36:05,860 --> 00:36:07,100
Additional discussions or comments.

598
00:36:09,400 --> 00:36:10,480
Now we have it right here.

599
00:36:10,700 --> 00:36:14,340
It gave me a whole thing. All right, very good. And again, for the

600
00:36:14,340 --> 00:36:18,440
record as we move forward here, I don't have a lot of angst either way. It's fine

601
00:36:18,440 --> 00:36:21,520
if this is what happens. This is something that I feel would be a better option,

602
00:36:21,520 --> 00:36:23,400
But it doesn't mean it's a bad option.

603
00:36:24,400 --> 00:36:26,040
And we've talked about this as well, too.

604
00:36:26,760 --> 00:36:28,940
And all the personnel, all the personnel, everyone's set it.

605
00:36:29,200 --> 00:36:31,440
We have to get away from borrowing to do this.

606
00:36:31,580 --> 00:36:34,820
So how we get there, that's fine, but this is something I'm not going to have a lot

607
00:36:34,820 --> 00:36:35,440
of heartburn over.

608
00:36:35,760 --> 00:36:37,600
Do you have something else to add to it at all?

609
00:36:38,180 --> 00:36:39,000
No, I mean, I agree.

610
00:36:39,300 --> 00:36:42,800
Either way, you guys go, not that financing makes me happy.

611
00:36:43,820 --> 00:36:47,060
I don't like having debt for anything if we don't have to, right?

612
00:36:47,260 --> 00:36:50,700
But I don't want to charge people more than we need to as well.

613
00:36:50,700 --> 00:36:53,820
which is why we do the whole PSC and they set the rate.

614
00:36:54,400 --> 00:36:56,180
So we'll do this conventional rate case

615
00:36:56,180 --> 00:36:58,000
with the expense depreciation,

616
00:36:58,060 --> 00:36:59,640
whichever year you guys choose to do it in

617
00:36:59,640 --> 00:37:01,920
and we'll let them set the rate

618
00:37:01,920 --> 00:37:03,740
and then we'll analyze it every single year.

619
00:37:03,900 --> 00:37:06,760
Do we need to do a simplified again in 29?

620
00:37:07,380 --> 00:37:09,360
Maybe we don't, maybe we're finding

621
00:37:09,360 --> 00:37:10,800
that we're not spending the full million

622
00:37:10,800 --> 00:37:11,280
and we're gonna,

623
00:37:11,740 --> 00:37:12,640
I mean, that's one thing

624
00:37:12,640 --> 00:37:14,720
with this expense depreciation cash funding.

625
00:37:14,860 --> 00:37:16,760
That million is set aside for maintenance

626
00:37:17,200 --> 00:37:19,000
and I have to track to make sure

627
00:37:19,000 --> 00:37:22,620
we are spending it on just the mains. It can't be used to offset other operating

628
00:37:22,620 --> 00:37:26,240
expenses and then if we don't spend it in that first year it carries over to the

629
00:37:26,240 --> 00:37:30,720
next year. We have a million plus that if we spend over it well then we get a

630
00:37:30,720 --> 00:37:35,040
million the next year so it's it's something that will be very diligent in

631
00:37:35,040 --> 00:37:40,060
watching and I think just not leaving it for 10 years and making sure we're

632
00:37:40,060 --> 00:37:45,180
adjusting rates as needed we'll stay on top of this so. Very good thank you

633
00:37:45,180 --> 00:37:51,380
other questions or comments all right now again we have on the floor the motion

634
00:37:51,380 --> 00:37:57,500
that we had Scott I guess one question for the council is um as part of the rate

635
00:37:57,500 --> 00:38:02,800
case there was a little bit of discussion we got things over person

636
00:38:02,800 --> 00:38:07,300
handsome brought up the declining rate structure as you use more you your it

637
00:38:07,300 --> 00:38:13,100
declines the rates or stays the same or increases right now the previous you

638
00:38:13,100 --> 00:38:17,920
rate case we had it as you see it is now the rates decline as you use more

639
00:38:17,920 --> 00:38:21,740
more water because that'd be one of the things that has to be analyzed during

640
00:38:21,740 --> 00:38:26,420
the rate process. I don't believe it's something we'll have to decide today but

641
00:38:26,420 --> 00:38:29,000
I think it's something that you guys should keep considering and think

642
00:38:29,000 --> 00:38:33,340
about and we can try to bring back some more details to of customers that

643
00:38:33,340 --> 00:38:37,480
that would affect if we flip it and what our usage is currently but yes

644
00:38:37,480 --> 00:38:40,760
the rate structure will be something that we'll discuss as part of this

645
00:38:40,760 --> 00:38:46,060
rate case with either rate case. Good. Very good. Thank you. All the person

646
00:38:46,060 --> 00:38:51,640
carpenter. Yes, if you bring that information back and Dan couldn't, I mean as large

647
00:38:51,640 --> 00:38:56,500
your customers come in bring more employees and people to the community.

648
00:38:57,120 --> 00:39:01,640
Sometimes you want to draw those people and having higher rates on the other

649
00:39:01,640 --> 00:39:04,760
end. So the pros and cons got to be brought with everything that comes

650
00:39:04,760 --> 00:39:09,420
about a business coming into town and everything else. I mean when you make

651
00:39:09,420 --> 00:39:13,220
your decisions. Hopefully, the decisions are wise decisions.

652
00:39:14,160 --> 00:39:16,500
Very good. Thank you. Other questions or comments?

653
00:39:17,900 --> 00:39:21,140
All the person hands. I just want to thank staff too for bringing the hybrid option

654
00:39:21,140 --> 00:39:25,440
forward. I know that's something we were kind of exploring at the last

655
00:39:25,440 --> 00:39:29,440
meeting, but really didn't have anything too firm to look at. So this was really

656
00:39:29,440 --> 00:39:33,320
helpful. Thank you. Other questions, comments?

657
00:39:34,120 --> 00:39:37,240
All right. That said, all those in favor say aye.

658
00:39:38,960 --> 00:39:45,480
Opposed nay nay motion carries with elder person Hanson and myself voting nay

659
00:39:45,480 --> 00:39:51,060
thank you much did you do I have you correct all the person cans yeah okay

660
00:39:51,060 --> 00:39:57,900
all right let's move on to item 7 recommendation from plan commission to

661
00:39:57,900 --> 00:40:02,480
approve a four lot extraterritorial certified survey map at 2400 French

662
00:40:02,480 --> 00:40:07,800
Orange Road and Lawrence, parcel L4543 and L2078.

663
00:40:09,200 --> 00:40:10,460
I'll make a motion to approve.

664
00:40:11,180 --> 00:40:11,480
Second.

665
00:40:11,800 --> 00:40:14,080
Motion by me, seconded by Alderperson Hansen.

666
00:40:14,440 --> 00:40:15,500
Discussion or comments?

667
00:40:17,830 --> 00:40:18,830
Looks like we're all good.

668
00:40:18,970 --> 00:40:20,890
That said, all those in favor say aye.

669
00:40:21,370 --> 00:40:21,710
Aye.

670
00:40:22,510 --> 00:40:23,030
Opposed?

671
00:40:23,850 --> 00:40:25,410
Motion carries, thank you.

672
00:40:25,870 --> 00:40:27,390
Item eight, recommendation from the

673
00:40:27,390 --> 00:40:28,930
Business Improvement District Board

674
00:40:29,290 --> 00:40:31,630
to approve the D-Peer Business Improvement District

675
00:40:31,630 --> 00:40:34,070
for a 2026 operating plan.

676
00:40:34,650 --> 00:40:35,330
I'll move to approve.

677
00:40:36,550 --> 00:40:37,110
Well second.

678
00:40:37,410 --> 00:40:39,310
Motion by Alderperson Nelson, seconded

679
00:40:39,310 --> 00:40:41,570
by Alderperson Gantz, discussion comments.

680
00:40:42,670 --> 00:40:46,470
Any big changes, Dan, with this plan versus previous years?

681
00:40:47,970 --> 00:40:49,210
I mean, I read through the whole thing,

682
00:40:49,270 --> 00:40:50,710
it seemed pretty straightforward as far as

683
00:40:50,710 --> 00:40:52,050
funding mechanisms, et cetera.

684
00:40:52,470 --> 00:40:54,170
The funding mechanisms are roughly the same.

685
00:40:54,310 --> 00:40:56,010
How it's being allocated is slightly different.

686
00:40:56,570 --> 00:41:01,490
The bid board is taking more of a hands-on role

687
00:41:01,630 --> 00:41:04,570
versus with their consultant, which is definitely to peer.

688
00:41:05,210 --> 00:41:06,990
And so they have allocated things just slightly differently

689
00:41:06,990 --> 00:41:10,190
from an overall standpoint of having a reserve fund

690
00:41:10,550 --> 00:41:13,510
in-house and how city staff are reimbursed

691
00:41:13,510 --> 00:41:15,070
or how the city departments are reimbursed

692
00:41:15,070 --> 00:41:16,150
for our city staff time.

693
00:41:16,750 --> 00:41:18,270
A couple of changes there, but overall,

694
00:41:18,370 --> 00:41:19,910
the biggest changes are actually gonna be coming

695
00:41:19,910 --> 00:41:21,830
during their next round for 2027,

696
00:41:21,830 --> 00:41:24,050
which is their goal settings and a bunch of other

697
00:41:24,050 --> 00:41:26,430
mechanisms that they're gonna use for their new metric.

698
00:41:26,650 --> 00:41:29,070
So at this time, the overall funding mechanism

699
00:41:29,070 --> 00:41:30,650
hasn't changed how it's being allocated

700
00:41:30,650 --> 00:41:31,690
He has slightly been tweaked.

701
00:41:32,030 --> 00:41:33,210
Thank you very much.

702
00:41:33,450 --> 00:41:34,390
Questions, comments?

703
00:41:35,950 --> 00:41:37,410
All right, seems you're all good.

704
00:41:37,570 --> 00:41:39,450
That said, all those in favor say aye.

705
00:41:39,830 --> 00:41:40,250
Aye.

706
00:41:41,050 --> 00:41:41,510
Opposed?

707
00:41:42,210 --> 00:41:43,070
Motion carries.

708
00:41:43,290 --> 00:41:43,650
Thank you.

709
00:41:43,910 --> 00:41:46,390
Item nine, Resolution 25, 119.

710
00:41:46,870 --> 00:41:48,810
Granting a planning option to purchase

711
00:41:48,810 --> 00:41:52,430
to Ellinger Properties LLC, West Business Park,

712
00:41:52,570 --> 00:41:55,770
part of parcel WDL 492B5.

713
00:41:58,630 --> 00:41:59,530
I'll make a motion to approve.

714
00:41:59,850 --> 00:42:00,270
I'll second.

715
00:42:00,270 --> 00:42:04,650
Motion by me seconded by elder person Ludwina discussion or comments

716
00:42:05,810 --> 00:42:07,270
We got in this particular parcel

717
00:42:08,230 --> 00:42:13,870
All right seems are all good on this one that said roll call vote. Please all the person carpenter. Hi, Esir Khan

718
00:42:13,870 --> 00:42:21,410
Hi, yes. Hi Hanson. Hi, honey girl. Hi, Ludwina. Hi Nelson. Hi, he rock. Hi, Mayor Boyd. Hi

719
00:42:22,190 --> 00:42:27,470
Motion carries. Thank you. Ellen your people are here. So we apologize, but it's good news

720
00:42:28,490 --> 00:42:36,130
You're welcome. Thanks for sticking around we're my next item 10 resolution 25 120

721
00:42:36,130 --> 00:42:40,590
approving utility facilities easement agreement to central brown county water

722
00:42:40,590 --> 00:42:51,890
authority parcel number WD 1 0 5 0 0 Lawrence Drive move to approve second

723
00:42:51,890 --> 00:42:56,030
motion by Alderperson Nelson second by Alderperson carpenter discussion or

724
00:42:56,030 --> 00:43:01,390
comments. Alderperson Carpenter. Those we've discussed in water bills before in

725
00:43:01,390 --> 00:43:08,510
Central Brown County Water Authority. Is this money financed? These are things

726
00:43:08,510 --> 00:43:11,990
that are already in their finances. Intercapable Improvement Fund. Intercapable

727
00:43:11,990 --> 00:43:18,360
Improvement Fund. Thank you. Thank you. Other questions or comments? All right.

728
00:43:18,360 --> 00:43:19,360
Row call vote, please.

729
00:43:19,520 --> 00:43:20,560
Older person, Esercan.

730
00:43:20,720 --> 00:43:20,900
Aye.

731
00:43:21,200 --> 00:43:21,660
Gantz.

732
00:43:21,900 --> 00:43:22,180
Aye.

733
00:43:22,580 --> 00:43:22,760
Hansen.

734
00:43:23,000 --> 00:43:23,160
Aye.

735
00:43:23,480 --> 00:43:23,720
Conegar.

736
00:43:24,140 --> 00:43:24,740
Ludvina.

737
00:43:25,160 --> 00:43:25,240
Aye.

738
00:43:25,560 --> 00:43:25,700
Nelson.

739
00:43:26,040 --> 00:43:26,140
Aye.

740
00:43:26,600 --> 00:43:26,980
Hirok.

741
00:43:27,100 --> 00:43:27,220
Aye.

742
00:43:27,540 --> 00:43:28,080
Mayor Boyd.

743
00:43:28,160 --> 00:43:28,360
Aye.

744
00:43:28,660 --> 00:43:29,000
Carpenter.

745
00:43:29,200 --> 00:43:29,320
Aye.

746
00:43:30,000 --> 00:43:30,620
Motion carries.

747
00:43:30,820 --> 00:43:31,160
Thank you.

748
00:43:31,500 --> 00:43:35,680
Item 11, Resolution 25-121, authorizing Myron Construction,

749
00:43:36,340 --> 00:43:41,560
two-word contracts related to the construction of a public parking ramp on parcel ED 875,

750
00:43:42,060 --> 00:43:46,700
230 North Wisconsin, deep here, Wisconsin, in an amount totalling 6 million,

751
00:43:48,620 --> 00:43:55,960
$35,488 moved to approve I'll second motion by Alderperson Hansen second

752
00:43:55,960 --> 00:44:01,780
about a person Nelson discussion comments Alderperson Hansen yeah so Dan we

753
00:44:01,780 --> 00:44:05,800
have Myron as the construction manager and I see some of these contracts would

754
00:44:05,800 --> 00:44:11,240
go to Myron if they are the lowest bidder that makes sense to me but just

755
00:44:11,240 --> 00:44:17,200
I'm just wondering if you can comment on if that is common for the construction manager

756
00:44:17,200 --> 00:44:18,780
to also bid on the projects.

757
00:44:19,240 --> 00:44:24,240
Yeah, when we put out the RFP we did not put the limitation on self-performing inside of

758
00:44:24,240 --> 00:44:29,320
this one intentionally because of the technical expertise that was being brought by various

759
00:44:29,320 --> 00:44:29,700
agencies.

760
00:44:29,840 --> 00:44:33,640
We only had two construction managers at risk even apply for this one.

761
00:44:34,340 --> 00:44:39,460
And so throughout the process staff as well as Myron went through and verified

762
00:44:39,460 --> 00:44:43,320
to every lowest bidder, and they were the lowest bidder on a few of those items that

763
00:44:43,320 --> 00:44:43,860
you do see there.

764
00:44:44,060 --> 00:44:49,180
But, some communities elect to eliminate self-performance, and some choose not to, and we chose not

765
00:44:49,180 --> 00:44:52,420
to put a cap on it to limit ourselves from an overall standpoint.

766
00:44:53,160 --> 00:44:57,160
And we're comfortable with the outreach that they did in terms of trying to solicit

767
00:44:57,160 --> 00:44:57,660
other bids.

768
00:44:58,080 --> 00:44:59,960
Yeah, they have a wider network than we do.

769
00:45:00,000 --> 00:45:11,180
We have an artificial bidding process because we don't build parking ramps and structures very often, so that's the reason why having them manage the process allowed them to go out to a wider network than what we typically would for our typical construction projects.

770
00:45:13,340 --> 00:45:15,120
Thank you. Other questions or comments?

771
00:45:17,490 --> 00:45:20,610
Get that parking ramp going, people. That said, roll call, vote please.

772
00:45:20,610 --> 00:45:21,830
Altarperson Gantz.

773
00:45:21,870 --> 00:45:22,010
Hi.

774
00:45:22,430 --> 00:45:22,670
Hanson.

775
00:45:22,890 --> 00:45:22,990
Hi.

776
00:45:23,390 --> 00:45:23,710
Cundegger.

777
00:45:23,990 --> 00:45:24,130
Hi.

778
00:45:24,390 --> 00:45:24,690
Ludvina.

779
00:45:24,970 --> 00:45:25,110
Hi.

780
00:45:25,590 --> 00:45:25,770
Nelson.

781
00:45:26,290 --> 00:45:26,450
Hi.

782
00:45:26,930 --> 00:45:27,330
Pirok.

783
00:45:27,470 --> 00:45:27,650
Hi.

784
00:45:27,950 --> 00:45:28,470
Mayor Boyd.

785
00:45:28,790 --> 00:45:28,990
Hi.

786
00:45:29,530 --> 00:45:29,930
Carpenter.

787
00:45:30,150 --> 00:45:30,310
Hi.

788
00:45:30,590 --> 00:45:30,990
Osterkahn.

789
00:45:31,250 --> 00:45:31,410
Hi.

790
00:45:32,170 --> 00:45:32,770
Motion carries.

791
00:45:32,970 --> 00:45:33,190
Thank you.

792
00:45:33,290 --> 00:45:33,830
Was this up before?

793
00:45:34,230 --> 00:45:34,730
No, it wasn't.

794
00:45:34,830 --> 00:45:35,370
I forgot I had it.

795
00:45:35,410 --> 00:45:35,610
Okay.

796
00:45:35,750 --> 00:45:39,230
Well, just so people can see this, we'll just pause for a second here, but this is what

797
00:45:39,230 --> 00:45:40,350
the parking ramp looks like.

798
00:45:40,430 --> 00:45:42,150
We should put City Hall right on top of that.

799
00:45:42,410 --> 00:45:42,510
Yeah.

800
00:45:42,510 --> 00:45:44,490
I told you this building's going.

801
00:45:45,590 --> 00:45:46,370
Good idea.

802
00:45:47,750 --> 00:45:53,330
So everyone realized at home the bidding that we just approved has all components of this,

803
00:45:53,450 --> 00:45:56,850
from concrete to the panel and on the side to electrical.

804
00:45:57,330 --> 00:45:58,370
This is the second round.

805
00:45:58,530 --> 00:45:59,690
We did one a few months ago.

806
00:45:59,830 --> 00:46:04,910
That was for the first stage so that we can get the precast panels underway with the selected contractor.

807
00:46:04,970 --> 00:46:05,510
And that one wells.

808
00:46:06,270 --> 00:46:08,750
And so working through that process, this is the second one.

809
00:46:08,750 --> 00:46:14,910
And there will be a third bid that will come out for a couple things that didn't or weren't achieved during that second round either through

810
00:46:15,530 --> 00:46:17,550
For I guess you say lack of qualified bidders

811
00:46:18,350 --> 00:46:23,070
So so we'll have we'll be going out for the parking access and control management as well as the cocky

812
00:46:23,070 --> 00:46:26,570
And I believe for the last the last bid so we'll see one more coming through here

813
00:46:26,570 --> 00:46:31,250
But both of those were included as allowances inside the next item that we'll be discussing here tonight

814
00:46:31,250 --> 00:46:36,170
So very good. Thank you. I wish we'd have more discussion, but we simply can't but take a look at it in my

815
00:46:36,170 --> 00:46:37,850
do some ooze and Oz, but thank you.

816
00:46:38,190 --> 00:46:40,150
I cannot the next item I guess.

817
00:46:40,570 --> 00:46:41,770
Yeah, keep it up then.

818
00:46:42,070 --> 00:46:43,150
Item 12, there we go.

819
00:46:43,410 --> 00:46:46,310
Item 12, Resolution 25-122,

820
00:46:46,390 --> 00:46:48,150
authorizing an amendment to the contract

821
00:46:48,150 --> 00:46:50,030
for construction manager at risk

822
00:46:50,030 --> 00:46:51,410
with Myran construction,

823
00:46:52,050 --> 00:46:54,010
regarding the guaranteed maximum price

824
00:46:54,010 --> 00:46:55,990
in connection with the public parking ramp

825
00:46:55,990 --> 00:46:57,750
at parcel ED 875

826
00:46:57,750 --> 00:46:59,690
230, North Wisconsin,

827
00:46:59,890 --> 00:47:00,770
DPR, Wisconsin.

828
00:47:01,750 --> 00:47:04,170
I will second.

829
00:47:04,170 --> 00:47:10,210
Second motion by all the person leavened seconded by me discussion comments all the person else

830
00:47:10,210 --> 00:47:15,910
I have a question. Maybe I'm not don't quite understand this fully, but so why for this one do we have to?

831
00:47:16,470 --> 00:47:17,530
amend it with a

832
00:47:18,490 --> 00:47:23,390
Guaranteed maximum price is that I mean that's not like a standard for all of our contracts, right?

833
00:47:23,450 --> 00:47:29,230
Is this this is part of the construction manager at risk and this is one of the components of that and it's so

834
00:47:29,230 --> 00:47:34,070
So you're paying the construction manager instead of an architect to do this process,

835
00:47:34,210 --> 00:47:38,250
you're paying the construction manager as part of that one, they're insuring through

836
00:47:38,250 --> 00:47:40,570
their process that there's a guaranteed maximum price.

837
00:47:40,970 --> 00:47:43,090
It's not to say that there can never be a change order.

838
00:47:43,190 --> 00:47:47,170
If we decide as a personal staff or as a city council to make a change, we're going

839
00:47:47,170 --> 00:47:48,310
to have to do that responsibility.

840
00:47:48,870 --> 00:47:53,110
But if there's something that is set forth via the qualified bidders, that's the

841
00:47:53,110 --> 00:47:56,610
process that Myren will be holding their responsible parties to.

842
00:47:56,610 --> 00:48:03,250
So it's just a set of cap on kind of our expect based off potential expected based on the responses and the allowances that are included inside

843
00:48:03,250 --> 00:48:07,750
They're in the packet here and on the chart. Do we do this on all like large item?

844
00:48:08,550 --> 00:48:14,370
Dispenses or no, this is I believe the city's first it first go around with a construction manager at risk

845
00:48:14,370 --> 00:48:17,130
And it's because we haven't built a parking ramp ever. Yeah

846
00:48:17,890 --> 00:48:22,490
New process. Well, it's the city's first go around. It's not uncommon for other

847
00:48:22,490 --> 00:48:26,910
municipalities to use this approach and or guarantee maximum price for

848
00:48:26,910 --> 00:48:32,710
institutional civic projects. Okay, sure. Thank you. Other questions or comments?

849
00:48:34,940 --> 00:48:38,980
All right, we need a roll call vote please. Alderperson Hansen?

850
00:48:39,540 --> 00:48:40,520
Aye. Conniger?

851
00:48:40,760 --> 00:48:41,480
Aye. Ledvina?

852
00:48:41,860 --> 00:48:42,400
Aye. Nelson?

853
00:48:42,760 --> 00:48:42,920
Aye.

854
00:48:43,200 --> 00:48:43,640
Pirok?

855
00:48:43,800 --> 00:48:43,980
Aye.

856
00:48:44,260 --> 00:48:44,780
Mayor Boyd?

857
00:48:44,860 --> 00:48:45,060
Aye.

858
00:48:45,360 --> 00:48:45,660
Carpenter?

859
00:48:45,980 --> 00:48:46,220
Aye.

860
00:48:46,440 --> 00:48:46,880
Esercan?

861
00:48:47,100 --> 00:48:47,280
Aye.

862
00:48:47,520 --> 00:48:47,920
Hansen?

863
00:48:48,000 --> 00:48:48,220
Aye.

864
00:48:48,900 --> 00:48:52,820
Motion carries. Thank you. Up next, future agenda items. Does anyone have anything?

865
00:48:54,080 --> 00:48:54,960
Alderperson Hansen.

866
00:48:55,320 --> 00:48:59,380
I just have one for the Board of Public Works. I know the school district, sorry Scott.

867
00:49:00,720 --> 00:49:01,840
Almost. Almost.

868
00:49:03,020 --> 00:49:07,940
The school district's been doing the traffic study, I think on Chicago Street and Merrill Street,

869
00:49:08,620 --> 00:49:12,000
and that kind of coincides with our Merrill Street reconstruction next year.

870
00:49:12,380 --> 00:49:16,920
So I'm just wondering if we can get an update at the Board of where their traffic study is at,

871
00:49:16,920 --> 00:49:23,780
and if it's finished kind of what their conclusions were all right that will go to public works

872
00:49:23,780 --> 00:49:30,380
other questions I'm sorry other future agenda items all right up next I will make a motion

873
00:49:30,380 --> 00:49:35,900
to adjourn second motion by me second about the person Nelson all those in favor say aye

874
00:49:35,900 --> 00:49:36,640
All right.

875
00:49:36,840 --> 00:49:36,980
All right.

876
00:49:37,440 --> 00:49:37,880
Opposed?

877
00:49:38,320 --> 00:49:39,220
Motion carries.

878
00:49:39,240 --> 00:49:39,820
Thank you.

879
00:49:39,940 --> 00:49:41,220
We're up to three here and thanks everybody.