 I'd like to call the eighth regular meeting of the 2019-2020 Common Council to order. Would the clerk please read the quote for the day? Thank you, Mr. Mayor. Communication is the real work of leadership. Thank you. Would the clerk please call the roll? There are nine present and Alderperson Donnie Hew is attending remotely. Thank you very much. Please stand and join me in the Pledge of Allegiance. Now, the Pledge of Allegiance is going to be led by a special young man today that's going to be celebrating his Eagle Scout banquet very soon, and we'll introduce him to you later. My God, indivisible, with another meeting after the call. I'd like to thank Alexander Cunningham for leading us today. Next item on the agenda is approval of the minutes from our last council meeting. All the person will... Thank you, Mayor. Make a motion to approve. Thank you for the motion and support. Is there any discussion on those minutes? Seeing none, all those in favor, please signify by saying aye. Aye. Opposed? Motion passes. Next item is a resignation. Alderperson Wolfe. Thank you, Mayor. Make a motion to receive and file. Thank you for that motion and support. That motion is before us. All those in favor, please signify by saying aye. Aye. Opposed? Motion passes. Next item is public forum, City Clerk. There is no one this evening. Thank you very much. Then we'll go on to Mayor's announcements. We thought it might be useful for you to mention that you were the Minister of California in Florida that I think you should start to learn much more. And City Clerk, it's been a long memory in our community, let it develop to an expertise in human trafficking. For hard to work with knowledge, you should go and resolve it in Virginia's point to do it. Why do you struggle with human trafficking cascades? Do you stand for anti-human trafficking taxable as well? We talked a little bit about citizens who are identifying as contradictions in the city of California, Florida. And she mentioned in her speech that their efforts are to come not directly to millions, but for the longest time on land. They're not clear what the short-term police department can or can see in many accolades. Do you think they're worth it? I'm not even going to mention here, but I hope they're human. The spirit of recognition is ensured in the place of the City of California Association in 2008, a life-staking work by the employee group and the National Association of Human Officers in New York. And I thank you so much for your service and I want to wish you the best in retirement. We'd like to give you a small tribute of the success of our appreciation of the city's employees and their services. Thank you so much for your appreciation and recognition and for the years that you've been through to the residents of the city of California. Thank you so much for your time. Thank you so much. And we really hope you have a very good time. Okay, next we'll go on to the consent agenda. That'll include items 2.3 through 2.14. All the person will... Thank you, Mayor. I make a motion to receive and file all ROs, receive all RCs and adopt all resolutions and ordinances. Is there a second? Thank you for that support. These items are before us. Is there any discussion on any of those items in the consent agenda? Seeing none, will the court please call the roll for passage? All the person for instance? Ten ayes. Motion passes. Under reports of officers, items 3.1 through 3.5 will be referred to various committees. Under resolutions, items 4.1 will be... We'll laze over and 4.2 will be referred to finance and personnel committee. Under reports of committee, item 5.1 is RC number 69 of 1920 by the finance and personnel committee. To whom was referred, RO number 39 of 1920 by the city administrator, submitting a request on behalf of the Shboygan County Economic Development Corporation, requesting the use of one of the city days for 2019 on Wednesday, November 13th for the 2019 SCDC's annual meeting to be held at the Blue Harbor Convention Center. All the person borne. Thank you, Mayor. I make a motion to receive the RC and grant the request. Second. Thank you for that motion and support. Is there any discussion on the motion? None, could the court please call the roll? Ten ayes. Motion passes. Item 5.2 is RC number 70 of 1920 by the finance and personnel committee. To whom was referred, resolution number 42 of 1920 by all the persons down to human borne, awarding the sale of 6,655,000 in general obligation, corporate purpose bond series 2019A. All the person borne. Thank you, Mayor. Mayor, did you want Carol Worth to come up and fill the rest of the council in besides finance on what the interest rates, et cetera, are on these issues? I think that would be prudent. Okay. Carol? I am going to walk you through this handout and I'm going to take you through just the first couple of pages because this summarizes everything else that's behind it, okay? So, as you've seen on your agenda, the dollar amount was 6,655,000. Well, the handout at the very first item references 6,630,000. So we've actually reduced this issue by $25,000. And to give you a little background on the, actually all three issues that we're going to be eventually talking about here is the $6 million issue is a borrowing for the city's capital improvement projects and a small portion for some refinancing of some existing debt. And the next issue is $4,225,000. They're called general obligation community development bonds which is for TIF projects. And the third one is on the agenda references 3,315,000 taxable general obligation refunding bonds. That issue also was reduced to the size of $2,960,000. And that is strictly for refinancing a 2010 bonds for savings. And the reason they have been reduced is because when you sell bonds in the marketplace, you receive what's called premium from the investors. When you get the premium, you use it to downsize your borrowing. So we have a little bit more premium on the first issue, but we had over $300,000 of premium on the third issue. So therefore we just reduce the amount of bonds that you're issuing. So with that, we prepared the city to go into the bond market. And we do that with what's called an official statement which is really a prospectus on the city. And we distribute a notice into the marketplace to let underwriters know when and how to submit bids. And we also go through the bond rating process with Moody's. For the results, Moody's has reaffirmed the city's double A2 bond rating. And there is a credit report in this handout. So I'll take you to that briefly. In terms of the bidding results, this morning we received bids. The first issue again was referenced as $6,655,000. And the projected interest rate was 2.45. But when we received the bids, we received five bids. So the first page shows you the winning bidder. On that issue was UBS financial services. And they had a true interest rate of 2.35%. Because we received some premium, we downsized it to the $6,630,000. What this is doing is again providing dollars for your capital improvement projects. And the refinancing portion is now has the savings of a little over $22,000. The next page has the same information for the next issue, which is 4,225,000, community development bonds. This issue size did not change. The projected rate was 2.67. When we took bids this morning, we received five bids. The winning bidder is Robert W. Behr at a rate of 2.57. So the difference between the six seven and the five seven is about $44,700 of less interest. And the third issue is the taxable refunding bond. Originally, it went to market at $3,315, a projected rate of 3.04. And that one we received 12 bids. And the winning bidder was Mesero Financial. The true interest rate was a 2.47, but there was over $300,000 of premium. And as a result, we brought the issue size down to the 2,960 level. And that we did strictly for savings. And when we did a projection, we were anticipating savings of about $276,000. And we ended up with savings of $354,000. So very successful sale. There are three resolutions attached to my handout. And they are what's called the award resolutions. Your approval of them will prove the borrowing terms, lock in the interest rates and tax levies. And awards the bonds to the respective winning bidder. Also two of the resolutions that we talked about refinancing contain what's called notices of call. You're authorizing us to notify the bond holders of the 2012 notes and 2010 bonds that their interest will stop on August 16th of 2019, at which time we're going to take some of the money that's been borrowed here and pay them off. So we're basically exchanging the debt for a lower interest rate and taking advantage of savings. The notices would be published tomorrow. The closing is July 29th. That means all the money that you borrowed is going to come in at one time for projects. It goes into your project accounts. If it's for refinancing, it goes into a debt service account until those 2012 and 2010 bonds can be paid off on August 16th. So this is followed by some schedules. I'll just tell you what's on the schedule. On page three is the repayment schedule for the first issue, the 6 million 630. So it shows you how you're paying principal back. Okay, that's a 15 year repayment. It's a bond issue. And the next page is what's called a pricing schedule. A lot of numbers on here, but the main numbers is the yield column and that is the market. That's what the investor is actually getting. In order to get the coupon, which is the column to the left of it, you'll see those are all at three. The investor pays a premium. That means he gives you more principal up front. So the dollar price column shows you that well, price column shows you 102.275, which means anything that's over 100 means he's paying more than $100 for $100 of the bonds. So all of that math adds up to the dollar price column. You can see the bottom of the dollar price column that this produces 6,996,245 dollars and you're selling 6 million 630 of bonds. So that's why when we get that much premium that goes into the math below, which shows that the underwriter keeps some to pay expenses. He's responsible as part of his bid to pay the expenses of issuance. And then the rest of the money comes back to the city. Now anything over 6 million 630 is going to be available to go into debt service and can downsize your impact on your tax levy. So you're going to have quite a few dollars there for tax relief. And the true interest rate is way at the bottom and that's where the 2.35% comes from. So it's all 3% in the coupon or which means interest rate, but when you get that premium back, that's what reduces that total effective rate. The next page is the same type of a showing, but for the 4 million 225, you'll see this goes out a little bit longer. Principle starts in 2022 and goes out to 2038. So 19 years and you will do this type of a structure when you are working with community development and you get the project rebuilt and then starts producing increment to start paying off the debt service. So that's the reason you see that type of a repayment schedule. And then page six is the same exercise with the pricing. Again, the yield column is the market, all threes on the coupon column, but the dollar price column adds up to more than 4 million 225, that's the premium. So the city will be getting back premium on this one as well. And again, you can use the premium to offset debt service in 2020 and in some cases part of 2021 works out very well. The next page is the refunding. So you will see the repayment schedule is, now this was an issue that only went out to 2027 because that was the term of the existing debt. We didn't go out beyond the existing term. So the new issue goes out to the same term. The bottom part of page seven shows you the comparison of the 2019 bonds to the 2010 bonds that we're paying off. And then the column to the far right is your final net debt service savings because it does include expenses. So you can see there, you're going to see saving about $44,000 a year. And that rolls up to the 353 number and in total over those years. And the following page is the same thing. Now this is a taxable issue. So it's a little bit difficult to tell sometimes normally the difference between a tax exempt and a taxable is much greater but in this market where interest rates are so low, the yield column is also very, very low for a taxable issue. And you'll see the coupon column is all at fives. And that's the reason why the investors who are paying look at the price column as high as 117 for $100 worth of bonds, you see? So tremendous amount of premium on this one, tremendous. And they want that in order to get the fives. So that's okay because then what we do is we're giving them more on the fives than we would have if they had no premium, they'd be getting the yield column as their coupon. So if they want the fives, we cut back on the principle. So it balances it out. So again, lots of premium resulted in a downsizing and the true interest cost on this one is a 2.48, again, much shorter but very good results for a taxable. That's followed by Moody's credit report. And the very first page, it says credit opinion, the summary is truly the summary of how they arrive at your AA2 and it talks about your healthy operating reserves, number one. And that provides financial flexibility and liquidity, it talks about the tax base is experiencing renewed growth. That's a very positive statement. We've been waiting a long time to hear. So that's very good to see. They talk about fixed costs and fixed costs typically is a combination of debt payments and pension, any other type of liabilities will fall under that. They also as part of, and they do make a comment that they do expect them to remain manageable. As part of our rating call, we do talk about the city's capital improvement borrowing, what the intentions are with regard to borrowing going forward. So we have credit strengths and you'll see now we have our operating reserves, our financial picture as well as a growing tax base. So that's good to hear. The challenges of course are individual income levels and levy limits which are out of your control. So your rating is made up of things in your control and out of your control. So this is out of your control. And things that could lead to an upgrade in and downgrade which are typically offsetting factors. And then you get to the next page. I know the bottom part, the top part are key indicators which is used by people in the industry to compare a AA2 Sheboygan to maybe a AA2 in another state. The profile and then you have detailed credit considerations. Now you're gonna see paragraphs about each of the things that was in their summary. One paragraph about the economy and growing tax base, a paragraph about your financial operations and reserves. Okay, so we talked about liquidity. And the next page gets into your debt, your pension and OPEB. And it's a little bit harder to explain because Moody's has their own methodology for comparing pensions and OPEBs. They see quite a variety of different models and in order to do an apples to apples comparison for Moody's database, they've come up with their own methodology. So they have a little graph at the bottom that shows the system that's reported by the state which is the very, very tiny bar graph. And so you can see it's getting, technically it's getting better. But when you look at their own methodology, you'll see how it looks like it's going in the opposite direction. So that's the reason why it's very hard to explain. So I think it's kind of nice that they now, this is something new, they did not report it that way before. So whenever you got a question, it was like we have no way of explaining it, but at least now you can see that you can get credit for the fact that what does your state pension look like versus Moody's methodology. So that's kind of good news. And the last page, what's new is a scorecard. We've talked about a scorecard before, but now they've decided to put more information in their credit reports and they have categories and they have four categories and they have a couple of subcategories. And even though this gives us number one, the measure is your statistics and then the score, they've given us the letter rating. We also haven't requested and have the numeric version because if it says A or AA, we don't know if it's a one, a two, a three or a AA one, two or three. We don't know how close you are to either one by just this showing. So the numeric version we have helps us a little identify that better, but you can see the economy near tax base puts you into a AA category. There's some subcategories which is a per capita and family income. Now that's strictly what your population number divided into your tax base. That's what gives you a per capita. So as your population grows, that number gets better and your family median income levels. That's in the A category. Now A is below a AA. Now look at your finances. And this is weighted at 30% of your scoring. And you'll see there that you're in the strong AAA category for your finances. So indeed your finances is carrying a very significant part of your rating score. And management, management even though it sounds like it should be something reflected internally here, management really is a score that Moody's assigns to all cities in the state of Wisconsin. So that's what they mean by your institutional framework. They call the institution the state of Wisconsin and the cities have an A and all school districts have another rating. So that's just assigned to you. That's nothing that you can change. Debt and pensions, which is 20%, again it shows you all in the single A category. So all of that rolls up to what they have a scorecard indicator of a AA3. However, you go into committee and now you have a subjective portion of your rating process. And discussion takes place for things that just can't be scored as a number, okay? They see other factors that we've talked about or that they see a trend and we get credit for that. And so that brings us up to a AA2 rating, okay? So again, we haven't seen this, this is just brand new in terms of how Moody's is approaching their reports. So gives us a chance to go through that with you, okay? So that's your credit report and the resolutions that you have, I'm not going to take you through all of them but I will tell you that the series A and series B are tax exempt issues. So what that means is that you have to not only be following state law but federal law with regard to the issuance, you have to spend the money within 24 months from the day you receive it. So all the security is the tax levy but that does not mean that all of the debt service needs to be on the tax levy, it just means that's the security. So for example, if you have increment coming from TIFF, you can abate your levy with that increment. So the first series A is general obligation debt, tax levy for projects. The second one is your tax incremental districts which has that security but again, can be offset or abated with an increment. And the third one is a taxable refunding bond. The whole purpose is only to pay off the existing 2010 issue and it's taxable because the issue that we're refinancing was taxable. So you cannot combine them with a tax exempt issue, they must remain separate. Each one of these has what's called the bid tab showing the bidders. Each one of these has a copy of the bid form attached to it as an exhibit from the underwriter. Each one of them has a notice of sale that went out into the market, giving bidders instructions. Each one of them has the debt service and the pricing schedule that you've seen in the beginning part of the report. Carol, thank you much for that complete report. Does anybody have any questions, Carol? All the person's sirens in. Thank you, Mr. Mayor. Thanks, Carol, for coming up and presenting this information today. It's always a pleasure. I did have one question regarding our credit challenges. I'm just wondering if you can kind of go more in depth about the weak resident income levels and kind of what that means and what that would look like and what an ideal situation would be to improve some of those. And definitely the levy limits, I know that's frustrating that we don't have any controls over that, but it's kind of disheartening that the state can be punitive on our credit scores as well as other cities. But if you can go kind of on that first point with more information, I'm just curious kind of more what that means and kind of what that looks like for the future and for the residents of our city. Okay, what they're comparing there is information that is available through the Census Bureau. And they take, I should know this, American community, but anyways, it's a five-year history and it produces your per capita income. It produces ages of individuals, so you get a median age for your community. So they call those social economic indices that they pull off of the census information. And right now, they're up to 2017. Okay, that's the most current number. And they compare them and according to Moody's, when they look at the numbers for your city of Sheboygan, compared to the state and compared to national numbers, they consider them to still be below an average. Now, in terms of what can the city do, I think the city indirectly tries to influence that with employment opportunities, with housing opportunities and economic development decisions. And, but that is one characteristic that does take a long time to change, okay? So you know the questions, Carol, thank you very much. The motion on the floor, Jim, I'm going to assume that that was as amended by the committee. Yes, there was motion made, but it was just to approve the documents. And so we need them as amended by the committee. Okay, we have a revision of the motion and a second, so that motion is before us. Now on item 5.2, is there any further discussion on that motion? Seeing none, will the clerk please call the roll? 10 ayes. Motion passes. Item 5.3 is RC number, Carol, you can sit down if you'd like, I think. Okay. If we need anything else, we'll call you back up. Item 5.3 is RC number 71 of 1920 by the Finance and Personnel Committee. Tumor is referred Resolution number 43 of 1920 by Alderperson Donahue and Bourne, awarding the sale of $4,225,000 in General Obligation Community Development Bond Series 2019B. Alderperson Bourne. Second. Thank you for that motion and support. Is there any discussion on this item? Seeing none, will the clerk please call the roll? Alderperson Wolfe. Aye. Alderperson Donahue. Aye. Alderperson Donahue. Aye. Alderperson Bourne. Aye. Alderperson Phillips. Aye. Mitchell. Aye. Ackley. Aye. Feldy. Aye. 10 ayes. Motion passes. Item 5.4 is RC number 72 of 1920 by the Finance and Personnel Committee. Tumor is referred Resolution number 44 of 1920 by Alderperson Donahue and Bourne, awarding the sale of $3,315,000 taxable general obligation refunding bond Series 2019C. Alderperson Bourne. Second. Thank you for that motion and support. Is there any discussion on the motion? Hearing none, will the clerk please call the roll? 10 ayes. Motion passes. Item 5.5 is RC number 73 of 1920 by the Public Works Committee. Tumor is referred Direct Referral Resolution number 48 of 1920 by Alderperson's Wolf and Sorensen, authorizing the appropriate city officials to execute a contract for engineering services regarding road improvements on Taylor Drive between Superior Avenue and Indiana Avenue and recommends adopting the resolution. Alderperson Wolf. Thank you, Mayor. I make a motion to receive the RC and adopt the resolution. Second. Thank you for that motion and support. Is there any discussion on the motion? Seeing none, will the clerk please call the roll? 10 ayes. Motion passes. Item 5.6 is RC number 74 of 1920 by the Public Works Committee. Tumor is referred Direct Referral Resolution number 49 of 1920 by Alderperson's Wolf and Sorensen, authorizing the appropriate city officials to execute a contract for engineering services regarding the road improvements on State Highway 23 slash Collar Memorial Drive slash Erie Avenue between South Taylor Drive and North 9th Street recommends adopting the resolution. Alderperson Wolf. Thank you, Mayor. I make a motion to receive the RC and adopt the resolution. Second. Thank you for that motion and support. Is there any discussion? Seeing none, will the clerk please call the roll? 10 ayes. Motion passes. Item 5.7 is RC number 75 of 1920 by the Public Works Committee. Tumor is referred Direct Referral Resolution number 50 of 1920 by Alderperson's Wolf and Sorensen, authorizing the appropriate city officials to execute a contract for engineering services regarding road improvements on State Highway 28 slash 14th Street between North Avenue and Indiana Avenue and recommends adopting the resolution. Alderperson Wolf. Thank you, Mayor. I make a motion to receive the RC and adopt the resolution. Second. Thank you for that motion and support. Is there any discussion on the motion? Seeing none, will the clerk please call the roll? 10 ayes. Motion passes. Item 5.8 is RC number 76 of 1920 by the Finance and Personnel Committee. Tumor is referred Direct Referral Resolution number 51 of 1920 by Alderperson's Donahue and Bourne, authorizing the appropriate city officials to execute three engagement letters with Quarles and Brady LLP to serve as bond counsel for the city of Sheboygan. Alderperson Bourne. Motion. Second. Thank you for that motion and support. Is there any discussion? Seeing none, will the clerk please call the roll? 10 ayes. Motion passes. Item 5.9 is RC number 77 of 1920 by the Finance and Personnel Committee. Tumor is referred Direct Referral Resolution number 52 of 1920 by Alderperson's Donahue and Bourne, authorizing the appropriate city officials to enter into an agreement for the installation and commissioning of new heating, ventilating and air conditioning controls at the Mead Public Library. Alderperson Bourne. Thank you, Mayor. I make a motion to receive the RC and adopt the resolution. Second. Thank you for that motion and support. Is there any discussion on the motion? Seeing none, will the clerk please call the roll? 10 ayes. Motion passes. Item 5.10 is RC number 78 of 1920 by the Public Works Committee. Tumor is referred General Ordinance number 4 of 1920 by Alderperson's Wolfe and Sorenson, creating a no parking, stopping or standing zone on the east side of North Point Drive between the North Point Circle and Barrett Street. It recommends adopting the ordinance. Alderperson Wolfe. Thank you, Mayor. I'd like to make a motion to receive the RC and adopt the ordinance. Second. Thank you for that motion and support. Is there any discussion? Alderperson Wolfe. Thank you, Mayor. This is a good example of constituents coming forward with a problem in their neighborhood or concern of issues and bringing it to Public Works to their elders and allowing us to help them in relieving the situation in a good, neighborly way. Thank you for those comments. Is there any other discussion? Alderperson Swaglio. Thank you, Mr. Mayor. I just have some concerns on where people are to park on that street. Pardon me? The other side. The other side? Thank you. Okay. Are all good? No other discussion? The court please call the roll. 9 ayes. One abstain. Motion passes. General under general ordinances. Item 6.1 through 6.8 will be referred to various committees and next we'll turn it over for other matters authorized by law to city attorney Charles Adams. 7.1 is a resolution by all the persons Donahue and Boran authorizing the appropriate city officials to enter into the contract regarding the bulk headline survey of the Sheboygan River and Lake Michigan shoreline. That'll be referred to the finance and personnel committee. 7.2 is a resolution by all the persons Donahue and Boran authorizing the appropriate city officials to enter into a contract regarding surveying services for the proposed Union Pacific Trail. That'll be referred to the finance and personnel committee. 7.3 is a resolution by all the persons Wolf and Sorensen authorizing the appropriate city officials to enter into a contract with rebuild its service group to purchase and install a rebuild clarifier drive at the wastewater treatment facility. That'll be referred to the public works committee. 9 bakers tonight I'd also like to extend a special thanks to all administrator Hoffman finance director Marty Halverson and our budget analyst Gerry are read for all the work that was done on these documents that we talked on our bonding we talked about some savings that will get just because of the bond pricing that we got but we also had a significant amount of savings as we refinanced some of our past debts so it was a total win for the city. Thank you very much. thank you very much with that all the person wolf thank you mayor I make a motion to adjourn thank you for that motion in support all those in favor of adjournment please signify by saying aye opposed we stand adjourned thank you for your time