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06/06/2006 Regular Meeting

FRIEND CITY COUNCIL

MINUTES-REGULAR MEETING

JUNE 6, 2006

Mayor Horner called the regular meeting of the City Council to order at 7:04 p.m. at the City Hall.  Advanced notice of the meeting was given by publication in The Sentinel, the appointed method for giving advanced 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 and Dustin Weber.  Gary Tuttle was absent.  A quorum being present and the meeting duly convened, the following proceedings were had and done.

Motioned by Weber, seconded by Schrock to approve the Minutes of the May 2, 2006 regular meeting, the May 26, 2006 special meeting, and the May 2006 Treasurer's Report as presented and file same.  On roll call voting aye to approve the Minutes of the May 2, 2006 regular meeting, the May 26, 2006 special meeting, and the May 2006 Treasurer's Report, Schrock, Fricke, Weber.  Nays none.  Tuttle absent.  Motion carried.

Motion was made by Fricke, seconded by Weber, to approve the April 2006 Warren Memorial Hospital Financial Reports (including the April 2006 Friend Ambulance Financial Reports) as presented and file same.  On roll call voting aye to approve the April 2006 Warren Memorial Hospital Financial Reports (including the April 2006 Friend Ambulance Financial Reports) as presented and file same, Weber, Schrock, Fricke.  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, with the addition of a claim for $2,539.50 for a cashier’s check payable to Clouse Real Estate for closing costs on the corner bank building/apartment on Maple Street, legally described as The West 40 feet of Lot 139, Original Town, City of Friend, Saline County, Nebraska.  On roll call voting aye, Schrock, Fricke, Weber.  Nays none.  Tuttle absent.  Motion carried.

The claims approved were as follows:  May Payroll, 24,247.21; Ameritas, 1663.66; 1^st Natl, 8339.08; Acco, su. 721.80; Alltel Cellular, se. 490.60; Alltel Communications, se. 582.09; Aquila, se. 113.57; BVH, su. 1.09; Baker & Taylor, su. 146.62; Beatrice Concrete, su. 255.13; Bonsall Pool, se. 192.75; Brothers Equip, su. 20.64; Paul Bulwan, se. 200.00; Central States Lab., su. 8,720.29; Chief Supply, su. 91.97; LaRaine Cihak, re. 114.08; Demco, su. 291.69; Drake Refrigeration, se. 210.00; Eakes, su. 17.98; Farmer’s Coop, su. 1830.54; Ed M. Feld Equip, su. 85.00; First Natl, CD 5266.00; First Natl, se. 15.00; First Natl, fe. 2542.50; Follett Software, se. 3958.00; Friend School, 25.00; Galaxy Cable, se. 39.95; Patrick Gates, re. 327.96; Gene’s Electric, se. 27,419.59; Great Plains One Call, se. 52.34; Heartland Ag-Business Group, su. 19.95; Highsmith, su. 208.18; Adrian Hirst, su. 16.50; Hometown Leasing, se. 50.83; Johnson Hardward, su. 268.55; Johnson Pharmacy, su. 193.46; Candis Kurpgeweit, se. 100.00; Miller Monroe, fe. 202.00; Menards, su. 499.96; Midwest Labs, se. 55.00; Moore Wallace, su. 30.39; Michael Mullally, fe. 600.00; NE Dept of Rev, 1381.74; NPPD, se. 31,040.07; NE Life, su. 19.00; Nick’s Farm Store, su. 28.95; Norris Power, se. 3867.75; Pioneer Publishing, fe. 320.02; Plains Power, su. 520.29; Postmaster, su. 175.80 & 171.00; Principal Mutual, fe. 3742.85; RDJ Specialties, su. 163.00; Ross Repair, se. 8.00; Saline County Eldercare, fe. 2226.00; Marvin Slepicka, fe. 750.00; Software Plus, su. 54.00; State of NE HHS, se. 544.00; Steve’s Repair, se. 247.71; Superior Spa, se. 1367.64; Texaco, se. 217.92; The Garbage Co., se. 145.59; WEF Membership Renewals, 90.00; Weis Fire & Safety Equip, su. 52.08; Yokels, su. 139.61; Youngs Welding, se. 128.50. Total Claims Approved $137,628.47. 

Wayne Rasmuss, from Ameritas Investment Corporation attended the meeting to discuss the issuance of refunding bonds.  He presented to the Council a comparison of the outstanding general obligation bond issue the City currently has with a proposed new issue having considerably lower interest rates.  After discussion, Mr. Rasmuss provided to the Council the following proposed resolution.

RESOLUTION NO. 06-07

BE IT RESOLVED AND ENACTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF FRIEND, NEBRASKA, as follows:

Section 1. That the following bonds, in accordance with their option provisions, are hereby called for payment on July 11, 2006, after which date interest on the bonds will cease:

Sewer Bonds, date of original issue, June 1, 2001, numbered as they are shown on the books and records of the Paying Agent and Registrar, in the total outstanding principal amount of $190,000 (issued for the purpose of paying the costs of constructing enlargements and additions to the existing sewage treatment facilities of the City) in the principal amounts, maturing and bearing CUSIP numbers as follows:

Principal Amount                     Maturity Date                                         CUSIP Number

              $ 5,000                          May 1,2007                                               358442 CQ2

               10,000                          May 1,2008                                               358442 CR0

               10,000                         May 1, 2009                                               358442 CS8

               10,000                          May l,2010                                                358442 CT6

               10,000                         May 1, 2011                                               358442 CU3

               10,000                          May 1,2012                                               358442 CV1

               10,000                          May l,2013                                                358442 CW9

               10,000                          May 1,2014                                               358442 CX7

               15,000                         May 1, 2015                                               358442 CY5

               15,000                         May 1, 2016                                               358442 CZ2

               15,000                         May 1, 2017                                               358442 DA6

               15,000                          May l,2018                                                358442 DB4

               15,000                          May l,2019                                                358442 DC2

               20,000                         May 1, 2020                                               358442 DDO

               20,000                         May 1, 2021                                               358442 DE8

Section 2. These bonds are to be paid at the office of the City Treasurer, in Friend, Nebraska, as Paying Agent and Registrar for said bonds.

Section 3. A true copy of this Resolution shall be filed by the City Clerk with said Paying Agent at least thirty (30) days prior to call date and said Paying Agent is hereby irrevocably instructed to take appropriate action to mail notice to registered owners at least thirty (30) days prior to the call date.

Councilmember Fricke motioned to adopt Resolution No. 06-07.  Councilmember Schrock seconded the motion.  On roll call voting aye, Weber, Schrock, Fricke.  Nays none.  Tuttle absent.  Mayor Horner declared said motion carried and Resolution No. 06-07 passed and was adopted.

Councilman Harlan Schrock introduced the following ordinance.

ORDINANCE NO. 06-689

AN ORDINANCE AUTHORIZING THE ISSUANCE OF REFUNDING BONDS OF THE CITY OF FRIEND, NEBRASKA, IN THE PRINCIPAL AMOUNT OF ONE HUNDRED NINETY-FIVE THOUSAND DOLLARS ($195,000); PRESCRIBING THE FORM OF SAID BONDS; PROVIDING FOR A SINKING FUND AND FOR THE LEVY AND COLLECTION OF TAXES TO PAY SAID BONDS; PROVIDING FOR THE SALE OF THE BONDS; AUTHORIZING THE DELIVERY OF THE BONDS TO THE PURCHASER; PROVIDING FOR THE DISPOSITION OF THE BOND PROCEEDS AND ORDERING THE ORDINANCE PUBLISHED IN PAMPHLET FORM.

Wayne Rasmuss from Ameritas Investment Corporation read Ordinance No. 06-689 by title.  Councilmember Schrock made a motion that the statutory rule requiring the reading of ordinances by title on three different days be dispensed with, which motion was seconded by Councilmember Weber.  On roll call voting aye, Fricke, Schrock, Weber.  Nays none.  Tuttle absent.  Motion carried.

Councilmember Schrock motioned that Ordinance No. 06-689 be passed and adopted.  Councilmember Weber seconded the motion.  On roll call voting aye, Fricke, Schrock, Weber.  Nays none.  Tuttle absent.  Motion carried.

Mayor Horner opened a bid of $14,500 that was submitted by Stan Houlden for Lot 3, B.G. Page’s First Addition, Friend, Saline County, which is one of the lots located at 3^rd and Spring Street.  Discussion was had regarding surveying and the finalization of the sale of City property located at 3^rd and Spring Street. 

Motion was made by Councilman Weber, seconded by Councilman Schrock, to accept the bid of $14,500 submitted by Stan Houlden for Lot 3, B.G. Page’s First Addition, Friend, Saline County, providing remonstrance against this sale signed by the legal electors of the City of Friend, equal in number to 30% of the electors of the City of Friend, voting at the last regular municipal election held in Friend, is not filed within 30 days of the last publication of the resolution for the sale of this property.  On roll call voting aye, Weber, Schrock, Fricke.  Nays none.  Tuttle absent.  Motion carried.

Discussion was had regarding the status of the cleanup from the Maple Street fire.

Lonnie Dickson, with Hanna:Keelan Associates attended the meeting.  Mr. Dickson thanked the Mayor and Council for choosing the Hanna:Keelan firm to conduct a Blight/Substandard Determination Study and Redevelopment Plan.

Mr. Dickson told the Council that a Community Development Agency, or a Community Redevelopment Authority, will need to be assigned to provide Hanna:Keelan with various supportive information and services needed to complete the Blight/Substandard Determination Study and Redevelopment Plan.  He said this agency or authority can be the City Council or the Planning Commission, or the Mayor may appoint five individuals from the community.  Mr. Dickson informed the Council and Mayor that this agency or authority would be created by adopting an ordinance.

Patrick Gates, Utilities Superintendent, gave his report.  He reported that he received a letter from Mainelli Wagner & Associates, Inc. regarding the completion of paving at Palky’s Subdivision.  Representatives from Kirkham Micheal Consulting Engineers have inspected the paving and find it acceptable.  Mr. Gates said that with the Council’s approval, Kirkham Michael will send a letter to Mr. Palky and Mainelli Wagner & Associates accepting the paving.  Council discussed and approved.

Mr. Gates told the Council that the lift station at Palky’s Subdivision is not completed but is operational.  The phone line was installed today for the alarm system.  The gas line is in, but has not been connected to the generator.  Once this is done, there will be a final inspection and, upon passing the inspection, will become the City’s. 

The street lights have been installed at Palky’s Subdivision and are functional.

Mr. Gates said the swimming pool opened Memorial Day weekend and everything seems to be going well.

Mr. Gates requested Council’s approval to get a credit card for the City.  Discussion was had and Council agreed this was acceptable and approved that Gates follow up and obtain a credit card for miscellaneous purchases for the City.

Police Chief, Mark McFarland gave the Police Report for the month of May 2006.   (Copy of this report is attached.)  Chief McFarland provided the Council with a memo regarding a state law that was passed relating to minibikes and similar vehicles.  McFarland said that this law will be used to govern the use of these vehicles, rather than creating a city ordinance.

Building Inspector, Mark Stutzman, gave his report for the month of April 2006.  Mr. Stutzman told the Council that, with their approval, he would write a notice to run in The Sentinel that would clarify when it is necessary to apply for a building permit and the steps to take to obtain one.  Council discussed and approved.

Discussion was had regarding an offer from Pete Holcomb to donate to the City his property on Maple Street that was damaged by the fire. (A copy of this proposal and supporting documentation is attached.)  Discussed who would be responsible for the party wall between Pete Holcomb’s building and the building south, which is owned by Gropps.  Attorney Mullally called Attorney Scott Gropp, who has represented the Gropps throughout this project to discuss this with him.  Attorney Mullally suggested that any issues with the party wall be addressed as they may arise.  Motion was made by Councilman Fricke to accept the donation of the property located at 118 Maple Street from Pete Holcomb, with the understanding that if insurance proceeds become available to Mr. Holcomb, Mr. Holcomb has agreed to make these funds available to the City to apply toward the demolition and cleanup of this property.  Motion was seconded by Councilman Weber.  On roll call voting aye, Schrock, Weber, Fricke.  Nays none.  Tuttle absent.  Motion carried.

Motion was made by Councilman Schrock to authorize Mayor Horner, as a representative of the City of Friend, to sign indemnification agreements between the City of Friend and Leichty Excavating, Inc. relating to the Maple Street cleanup project.  Said agreements state the Contractor, Leichty Excavating, Inc., is willing to assume all risks, and is specifically willing to assume the risk of all personal injury to itself, its employees, agents, or subcontractors, and property damage to its personal property used on the construction site, and that of its employees, agents, or subcontractors during the contractors work on this site and agrees to save and hold the City harmless from all liability associated therewith.  This motion was seconded by Councilman Fricke.  On roll call voting aye, Weber, Schrock, Fricke.  Nays none.  Tuttle absent.  Motion carried.

Jim Ryan told the Council that the bid submitted for the demolition and dump fees for Pete Holcomb’s building, the apartment building and the old bank building is $35,000.  The bid to fill and do the compacting is $36,000.  The bid on the cleanup of the former bowling alley is $28,500.  Mr. Ryan told the Council that he has a separate agreement that if the cleanup for this property requires less than 100 hours, the charge will be $285 per hour.

At 9:05 p.m. motion was made by Councilman Weber, seconded by Councilman Schrock to enter into executive session to discuss possible litigation.  On roll call voting aye, Fricke, Weber, Schrock.  Nays none.  Tuttle absent.  Motion carried.

Motion was made by Councilman Fricke, seconded by Councilman Weber to return to regular session at 9:36 p.m.  On roll call voting aye, Schrock, Fricke, Weber.  Nays none.  Tuttle absent.  Motion carried.

With no further business to come before the Council, motion to adjourn the meeting was made by Weber, seconded by Schrock.  On roll call voting aye, Weber, Fricke, Schrock, Nays none.  Tuttle absent.  Meeting adjourned at 9:37 p.m.