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02/07/2006 Regular Meeting

FRIEND CITY COUNCIL

MINUTES-REGULAR MEETING

FEBRUARY 7, 2006

Mayor Horner called the regular meeting of the City Council to order at 7:00 p.m. at the City Hall.  Advance notice of the meeting was given by publication in The Sentinel, the appointed method for giving advance notice.  All proceedings shown were taken while the meeting was open to the attendance of the public.

The Mayor, Roger Horner, presided and City Clerk, Debbie Gilmer, recorded the proceedings.  The following Councilmembers were present:  Dan Fricke, Harlan Schrock, Dustin Weber.  Gary Tuttle was absent.  A quorum being present and the meeting duly convened, the following proceedings were had and done.

Motioned by Fricke, seconded by Schrock to approve the Minutes of the January 3, 2006 regular meeting and the January 2006 Treasurer's Report as presented and file same.  On roll call voting aye to approve the Minutes of the January 3, 2006 regular meeting and the January 2006 Treasurer's Report, Weber, Schrock, Fricke.  Nays none.  Tuttle absent.  Motion carried.

Amy Fish attended the meeting.  She provided a handout to the Council and discussed items relating to Warren Memorial Hospital.  Items discussed were the Healthy Living Luncheon on February 22nd; a new ambulance has been ordered and is expected to be here in July; the CT scanner is now running and is available for use; and, the Health Fair is scheduled for March 14th and 15th at the Community Building.  (Copy of this handout is attached.)

Motioned by Schrock, seconded by Weber to approve the Warren Memorial Hospital Reports for October, November and December 2005 as presented.  On roll call voting aye to approve the Warren Memorial Hospital Reports for October, November and December 2005 as presented, Schrock, Fricke, Weber.  Nays none.  Tuttle absent.  Motion carried.

A motion was made by Weber, seconded by Fricke, that payroll and claims be approved by the claims committee, and be allowed, and the Clerk instructed to issue warrants on the respective funds to pay same.  On roll call voting aye, Fricke, Weber, Schrock.  Nays none.  Tuttle absent.  Motion carried.

The claims approved were as follows:  January Payroll, 14,703.37, Ameritas, 1103.88, 1^st Natl, 4968.49; Postmaster, fe. 171.00; Office Cash, re. 160.00; Alltel Comm, se. 900.53; Alternative Business Systems, fe. 73.05 Baker & Taylor, su. 28.64; Blue Blossom, su. 37.28; Brothers Equip, se. 46.74; Central States Labs, su. 23,609.95; LaRaine Cihak, re. 21.47; Eakes, su. 177.08; Exeter Lumber, su. 14.00; Farmer's Union Coop, su. 775.97; Galaxy, se. 39.95; Gene's Elec, se. 11,034.80; Great Plains One-Call, se. 4.04, Holiday Inn-Kearney, fe. 138.00; Hometown Leasing, se. 50.83; IIMC, fe. 125.00; Inspirational Resources, su. 40.36; Johnson Pharmacy, su. 78.64; Gregg Johnson, se. 250.00; Junior Library Guild, su. 74.70; Kirkham Michael, se. 500.00; Menards, su. 1002.74; Midwest Labs, se. 20.60; Michael Mullally, fe. 1677.00; Municipal Emergency Svcs, se. 238.72; NMPP, su. 340.77; NPPD, se. 32,745.29; National Waterworks, su. 255.60; NE Dept of Rev, 838.11; NE Rural Water Assn, fe. 150.00; NE Wastewaters Operators Division, fe. 10.00; Norris Public Power, se. 3781.80; Pioneer Publishing, su. 224.63; Platte Valley Comm, su. 18.00; Principal Mutual Ins, fe. 3154.85; Redfield & Co., su. 140.24; Reiman Publications, su. 29.98; Ross Repair, se. 8.00; Shonsey & Assocs, se. 5835.00; Marvin Slepicka, fe. 750.00; HHS Lab, se. 43.00; Mark Stutzman, fe. 311.25; Texaco, su. 186.78; Garbage Co, se. 138.66; Trafcon, su. 87.16; Weathercraft, Co. fe, 32,934.00; Yokels, su. 493.42; Aquila, se. 710.15; NE Dept of Rev, sales tax, 3988.56.  Total claims approved $149,242.08.

Mayor Horner announced that the public hearing for the One and Six Year Plan for Street Improvement Program was now open at 7:10 p.m.  Rich Robinson from Kirkham Michael was available to answer any questions regarding this plan.  Mr. Robinson said the main project highlighted on the program is Page Street from Highway 6 to 5th Street and 5th Street from Page to Race Street.  Mr. Robinson provided the Council with a copy of a letter addressed to Bruce Filipi, Saline County Highway Superintendent from LeRoy Jeungel, Secondary Roads Engineer for the Nebraska Department of Roads.  This letter states that there is currently a deficit in available funds for Saline County through the Surface Transportation Program, which is a program proposed to partially fund the Page Street and 5th Street projects.  Therefore it is estimated that funds for the Page Street and 5th Street projects may not be available for at least five years.

LaRaine Cihak attended the meeting to report to the Council on activities at the Gilbert Library.  She provided an annual report that included information and statistics on the library from October 2004 through September 2005.  (Copy of Gilbert Library Annual Report attached.)

Michael Mullally, City Attorney, discussed issues related to the recent Maple Street fire.  Mr. Mullally said cleanup for this property has been estimated to be $24,000.  He said the attorney representing the Horn's indicated there may be a possibility of the deed to the property being signed over to the City.  There is approximately $2,000 in unpaid property taxes for 2003-2004 carrying 14% interest.  The taxes have not been paid for 2005, but are not yet accruing interest as they are not delinquent.  There is a $4,000 judgment on the property from a few years ago.  Mr. Mullally is attempting to contact the attorney that represented the collector to see if he would consider releasing the judgment lien on the property.  He said the City is in a position where they could acquire the Horn property if they were interested.  The taxes would need to be paid by the City if they would choose to acquire this property.  It is Mr. Mullally's recommendation that the City wait to see what the judgment is and know exactly what they may be assuming responsibility for before making any decisions on this.

Mr. Mullally said another option available to the City regarding the Horn property is to clean it up.  The drawback to this option is that in order for the City to recover their money (at this point, considering the possibility of spending approximately $16,000 for Horn's share), the City would need to put an assessment on the property and foreclose on the assessment, which would entail going through court proceedings, but ultimately getting possession of the property.  By Horn's deeding the property to the City, the City would avoid all of this.

Councilman Fricke asked Attorney Mullally if all obligations from Horn's insurance company have been fulfilled.  Mullally said the insurance company will not cover any of the cleanup costs.  The insurance paid off the bank, but will not pay anything further because of the circumstances of the fire (arson).

A member of the audience asked what the City would have after acquiring the bowling alley property if the property under the building was not owned by Horn.  Attorney Mullally said that through a title search, he found that the bowling alley lots are in Horn's name.  Another audience member asked how much the lots would be worth after cleanup if the City were to decide to acquire the property and spend upward of $16,000.  A great deal of concern was expressed about the City spending this money.  Mayor Horner stated that $16,000 is an estimate to clear off the deck.  Taking out the basement and bringing in dirt to fill the hole would be an estimated additional $20,000.  Another member of the audience asked if it was actually legal for the City to spend taxpayers’ dollars to pay for the cleanup of property that is privately owned.

After lengthy discussion regarding the status of the Maple Street fire, Mayor Horner asked the Council for their input.  Councilman Schrock stated that he did not want to spend taxpayers’ money on the cleanup.  Schrock said he would like to see that all other avenues are exhausted before the City would consider assuming responsibility for this.  Councilman Weber agreed with Schrock.  He said he did not want to see the taxpayers have to pay for this either.

Council directed Pat Gates to begin cleanup on the sidewalk in front of the fire site.  Attorney Mullally asked Mr. Gates to contact Scott Gropp before beginning this cleanup effort.

Patrick Gates, Utilities Superintendent, gave his report.  Mr. Gates said that he had been contacted by a party interested in possibly putting in a truck wash facility to be used primarily for their swine operation.  Mr. Gates said he is investigating concerns that he has regarding the effects this may have on the wastewater treatment facility.

As a result of a recommendation from Shonsey & Associates, the accounting company that conducted the City's recent audit, Pat Gates contacted Rich Robinson regarding a water/wastewater rate study.  Mr. Robinson told the Council he put together a proposal for a water/wastewater rate study for Friend.  Mr. Robinson said one of the first things to consider in a rate study is the revenue required over the study period, which is typically four to five years.  Secondly, Mr. Robinson said the cost of operations and maintenance would be considered.  This would then be escalated based on the rate of inflation, etc.  The debt service attributed to that specific utility would also be considered.  There is a debt service in both the water and wastewater funds and Mr. Robinson stated that this debt service value should be incorporated into the respective rates, reducing the need to collect these revenues from general obligation special assessment taxes.  The third element to consider is capital outlays and capital improvements that are being done currently and being projected for the next four to five years.

Motion was made by Weber, seconded by Schrock to accept proposed contract for professional engineering services for the Water/Wastewater Rate Study by Rich Robinson, P.E., Vice President of Kirkham Michael.  On roll call voting aye, Weber, Fricke, Schrock.  Nays one.  Tuttle absent.  Motion carried.

Police Chief, Mark McFarland gave the Police Report for the month of January 2006.

Building Inspector, Mark Stutzman, said he received several building permit applications.  Discussion was had regarding an application for improvements of a building for hogs outside of town.  Mr. Stutzman said Art Drake submitted a building permit application for a building north of his business.  One concern Mr. Stutzman has regarding this application is that it states in the Friend City Code Book that a pole building is not allowed in the fire district.  Another code states that any building over 200 square feet needs to have a continuous frost footing.  Mr. Stutzman met with the Planning Commission regarding this building permit application and presented the recommendations from the Planning Commission to the Council.  Recommendations made by the Planning Commission were that the building has a continuous frost footing with adequate reinforcements, that the building has a brick front that extends to eave height, that the building has no wood/soil contact, and that the building has adequate firewall protection.

Mr. Drake addressed the Council describing the type of building that he intends to construct explaining why the need for a continuous frost footing is not considered necessary.  He also pointed out the fact that he would be more than willing to comply with the additional request for a brick frontage at a time that this requirement is met by other buildings located in this area.  Several citizens present offered input regarding this discussion including members of the Planning Commission.

Lengthy discussion was had regarding the building permit application submitted by Art Drake including the possibility of using concrete pillers/piers to just above the dirt with brackets to bolt onto, as opposed to laminated columns.

Mayor Horner asked the Council for their input on this issue.  Council expressed that their opinion regarding the wood/soil contact was in agreement.  They feel there should be none.  Mixed opinions were expressed regarding the brick front.  All members agreed and were confident that Mr. Drake will put up an attractive, well maintained building.  Building Inspector, Mark Stutzman, suggested the Council table this issue for further consideration.

Fire Chief, Brent Milton, attended the meeting.  He and Stan Krause notified the Council and City employees of a date change for the scheduled NIMS meeting.  The meeting date has been changed to February 19th.

Mayor Horner announced that if there were no further comments relating to the One and Six Year Plan for Street Improvement Program it was time to close the public hearing.  Councilman Weber made a motion to close the public hearing for the One and Six Year Plan for Street Improvement Program at 8:45 p.m.  This motion was seconded by Councilman Fricke.  On roll call voting aye, Schrock, Weber, Fricke.  Nays none.  Tuttle absent.  Motion carried.

RESOLUTION #06-02

            The following resolution was introduced by Councilman Weber, who moved its adoption, seconded by Councilman Schrock.  “WHEREAS, the City Street Superintendent has prepared and presented a One and Six Year Plan for Street Improvement Program for the City of Friend, Nebraska, and

            WHEREAS, a public meeting was held on the seventh (7^th) day of February, 2006, to present this plan and there were no objections to said plan;

            THEREFORE, BE IT RESOLVED BY THE Mayor and City Council of Friend, Nebraska, that the plans and data as furnished are hereby in all things accepted and adopted.”

Motion was made by Councilman Weber, seconded by Councilman Schrock to adopt Resolution #06-02 regarding the One and Six year Plan for Street Improvement Program.  On roll call voting aye, Fricke, Weber, Schrock.  Nays none.  Tuttle absent.  Motion carried.

Mayor Horner told the Council they were in a position to acquire 621 1st Street (formerly owned by Jim Jourdon).  A member of the audience asked what the plans were for the building should the City acquire it.  Discussion was had regarding the possibility of clearing this building, as well as the property affected by the fire, and having property available for future development.  A preliminary estimate was submitted to the City for demolition and removal of the building at 621 1st Street for $16,500.  Mr. Mullally said he thought there was approximately $800 of unpaid taxes on this property that the City would have to pay.  Mr. Mullally told the Council the terms set for acquiring the property were to pay the unpaid property taxes and to file the deed and the mortgage release, then the property would be the City's, subject to 45 days that Mr. Jourdon requested to be able to remove personal items, as well as doors and windows that he recently installed, from the building. 

After discussion regarding this issue, Councilman Fricke made a motion to accept the deed from Jim Jourdon and to pay the delinquent taxes to acquire the property located at 621 1st Street.  Motion was seconded by Schrock.  On roll call voting aye, Weber, Schrock, Fricke.  Nays none.  Tuttle absent.  Motion carried.

Randy Berg attended the meeting with concerns regarding the traffic on State Street.  Mr. Berg said trucks going south on State Street are going above the speed limit.  Also voiced concerns about engine breaking.  Councilman Schrock recommended Mr. Berg contact his county commissioner regarding the traffic on the road south of town on State Street.  Mr. Berg asked if there could be speed bumps put into place to control the speed of the traffic on State Street.  It was recommended that Mr. Berg work with Chief McFarland to remedy this issue.

A concerned citizen in attendance at the meeting asked about the financial report from Warren Memorial Hospital.  He asked if he was interpreting the report correctly by reading there was a $36,000 loss in three months for the hospital from the December 2005 financial report (Balance Sheet).  This citizen asked if the hospital was losing $12,000 per month.  Upon review, Councilman Weber stated that it would appear this assumption to be correct.  Various citizens expressed concern that if the hospital was reporting losses of this value, somebody should be looking carefully into what the cause might be.

With no further business to come before the Council, motion to adjourn the meeting was made by Fricke, seconded by Schrock.  On roll call voting aye, Fricke, Schrock, Weber.  Nays none.  Tuttle absent.  Meeting adjourned at 9:30 p.m.