10/03/2006 Regular Meeting
FRIEND CITY COUNCIL
MINUTES-REGULAR MEETING
OCTOBER 3, 2006
Friend City Council President, Harlan Schrock, called the regular meeting of the City Council to order at 7:00 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.
Friend City Council President, Harlan Schrock, presided and City Clerk, Debbie Gilmer, recorded the proceedings. The following Councilmembers were present: Dustin Weber, Gary Tuttle and Dan Fricke. Mayor Roger Horner was absent. A quorum being present and the meeting duly convened, the following proceedings were had and done.
As required by the Nebraska Open Meetings Act, Council President Schrock announced that a copy of the Nebraska Open Meetings Act has been posted on the south door of the City Hall meeting room for all in attendance to review.
Motioned by Weber, seconded by Tuttle to approve the Minutes of the September 5, 2006 regular meeting, the September 14, 2006 special meeting, and the September 2006 Treasurer's Report as presented and file same. On roll call voting aye to approve the Minutes of the September 5, 2006 regular meeting, the September 14, 2006 special meeting, and the September 2006 Treasurer's Report, Fricke, Tuttle, Weber, Schrock. Nays none. Motion carried.
Motion was made by Fricke, seconded by Weber, to approve the Warren Memorial Hospital Financial Reports. On roll call voting aye to approve the Warren Memorial Hospital Financial Reports, Tuttle, Fricke. Council President Schrock voted nay as he said he had not seen these reports. Debbie Gilmer stated that no hospital reports had been submitted for Council’s consideration for this meeting. Continuing with roll, Councilman Weber voted nay. Motion failed.
A motion was made by Tuttle, 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, Tuttle, Weber, Fricke, Schrock. Nays none. Motion carried.
The claims approved were as follows: September Payroll, 17,688.81; Ameritas, 1,668.69; 1st Natl, 5,655.97; Alltel Cellular, 679.22;
Debbie Gilmer announced that she had received a request from the League of Nebraska Municipalities to include on the agenda a presentation entitled “The Real Story Behind TABOR/SOS” followed by a discussion of 1) how your municipality’s 1- and 6-year street/road plan would be affected by a 25% to 50% cut in funding from the Highway Trust Fund/Highway Allocation Fund; 2) how your municipal budget would be impacted by state cuts in law enforcement funding which subsidizes training at the Law Enforcement Training Center in Grand Island and cuts in Byrne Funds for Drug Task Forces to fight meth; and 3) property tax increases, cuts in municipal services, and other financial impacts on your municipality if the S.O.S. Amendment (#423) passes in November. This tape was shown as requested by the League of Nebraska Municipalities. Correspondence from the League stated that it is their main objective to inform municipal officials and the public about the effect of the proposed S.O.S. Amendment (#423) to restrict state spending.
Russell Irwin, a representative from the Department of Environmental Quality, attended the meeting to present a final training report to the Council for the wastewater plant. Mr. Irwin reported on his findings from seven visits he made to the wastewater plant from June 30, 2005 through September 20, 2006. The emphasis of Mr. Irwin’s visits was on process control testing and the use of results and observations to make process control decisions. Mr. Irwin said Dave Domeier has been very cooperative and does a good job. He made reference to Dave’s use of a worksheet to keep track of suspended solids and how many of them to waste. Mr. Irwin said this process, as well as the use of a trend chart which shows the status of items related to process control, have been very helpful. Mr. Irwin informed the Council of needs for the wastewater plant. Needs mentioned included new flow splitting plates, tank baffles and a magnetic stirring device for lab work. In summary, Mr. Irwin told the Council that they have a good wastewater operator and a controllable plant. (A copy of this report is attached.)
Councilman Fricke made a motion to add Resolution #06-14 to the agenda for the Council’s consideration of an application for a Special Designated Liquor Permit for the Friend American Legion’s annual fish fry to be held November 10, 2006. This motion was seconded by Councilman Tuttle. On roll call voting aye, Weber, Schrock, Fricke, Tuttle. Nays none. Motion carried.
The following resolution was introduced.
RESOLUTION #06-14
A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF FRIEND, SALINE COUNTY, NEBRASKA, APPROVING THE APPLICATION OF THE FRIEND LEGION POST #183, FOR A SPECIAL DESIGNATED PERMIT UNDER THE NEBRASKA LIQUOR CONTROL ACT, TO SELL LIQUOR, BEER AND WINE AT THE LEGION’S FISH FRY FOR VETERAN’S DAY TO BE HELD ON NOVEMBER 10, 2006 TO NOVEMBER 11, 2006 IN THE CITY OF FRIEND. THE SAID SPECIAL DESIGNATED PERMIT TO BE LIMITED TO THE INSIDE AREA OF THE LEGION HALL LOCATED AT 136 MAPLE STREET FOR THE LEGION’S FISH FRY FOR VETERAN’S DAY TO BE HELD BETWEEN THE HOURS OF 2:00 P.M. ON FRIDAY, NOVEMBER 10, 2006 AND 1:00 A.M. ON SATURDAY, NOVEMBER 11, 2006, PURSUANT TO THE MUNICIPAL CODE OF THE CITY OF FRIEND, AND THE NEBRASKA LIQUOR CONTROL ACT.
Motion to approve Resolution #06-14 relating to the application of the Friend Legion Post #183 for a Special Designated Permit for their annual fish fry on November10th, 2006 was made by Fricke, seconded by Weber. On roll call voting aye, Tuttle, Fricke, Weber, Schrock. Nays none. Motion carried. Resolution #06-14 was passed and approved October 3, 2006.
The following resolution was read by Debbie Gilmer.
RESOLUTION #06-13
A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF FRIEND, SALINE COUNTY, NEBRASKA, APPROVING THE APPLICATION OF THE FRIEND WOMEN’S ASSOCIATION, FOR A SPECIAL DESIGNATED PERMIT UNDER THE NEBRASKA LIQUOR CONTROL ACT, TO SELL LIQUOR, BEER AND WINE AT THE FRIEND WOMEN’S ASSOCIATION ANNUAL FUNDRAISER AND SILENT AUCTION TO BE HELD ON NOVEMBER 18, 2006 IN THE CITY OF FRIEND. THE SAID SPECIAL DESIGNATED PERMIT TO BE LIMITED TO THE INSIDE AREA OF THE FRIEND COMMUNITY BUILDING LOCATED AT 147 MAIN STREET FOR THE FRIEND WOMEN’S ASSOCIATION ANNUAL FUNDRAISER AND SILENT AUCTION TO BE HELD BETWEEN THE HOURS OF 10:00 A.M. ON SATURDAY, NOVEMBER 18, 2006 AND MIDNIGHT ON SATURDAY, NOVEMBER 18, 2006, PURSUANT TO THE MUNICIPAL CODE OF THE CITY OF FRIEND, AND THE NEBRASKA LIQUOR CONTROL ACT.
Motion to approve Resolution #06-13 relating to the application of the Friend Women’s Association for a Special Designated Permit for their annual fundraiser, dinner and silent auction on November18th, 2006 was made by Weber, seconded by Tuttle. On roll call voting aye, Fricke, Weber, Tuttle, Schrock. Nays none. Motion carried. Resolution #06-13 was passed and approved October 3, 2006.
The following resolution was introduced.
RESOLUTION # 06-12
APPLICATION TO BECOME DEPOSITORY
To the Honorable Mayor and City Council, Friend,
Comes now the First National Bank of Friend,
BE IT RESOLVED BY THE Mayor and the City Council of the City of
WHEREAS; The First National Bank of Friend, Nebraska and Farmers and Merchants Bank of Milligan, Nebraska have each filed an application for the privilege of becoming depository for the moneys and funds of the City of Friend, Nebraska for the fiscal year beginning October 1, 2006, and
WHEREAS; The First National Bank of Friend, Nebraska and Farmers and Merchants Bank of Milligan, Nebraska have each furnished bond for the safekeeping and securing said moneys and funds as required by law in addition to the security given to the City of Friend as a depository by the Federal Deposit Insurance Corporation;
NOW THEREFORE BE IT RESOLVED; by the Mayor and City Council of the City of Friend, Saline County, Nebraska, that the First National Bank of Friend, Saline County, Nebraska, and Farmers and Merchants Bank of Milligan, Fillmore County, Nebraska are hereby selected and approved as depositories for the moneys and funds and in compliance with the terms and provisions of the Section 17-607 of the revised statutes for the year 1943 and all amendments hereto.
Motion to approve Resolution #06-12 relating to the application to become depository from First National Bank of Friend, and Farmers and Merchants Bank of Milligan, was made by Tuttle, seconded by Weber. On roll call voting aye, Schrock, Fricke, Weber, Tuttle. Nays none. Motion carried. Resolution #06-12 was passed and approved October 3, 2006.
Council President, Schrock introduced the following ordinance. Debbie Gilmer read Ordinance #06-693 by title.
ORDINANCE #06-693
AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF A TAX ANTICIPATION NOTE OF THE CITY OF FRIEND, NEBRASKA IN THE PRINCIPAL AMOUNT OF $250,000 TO PROVIDE FINANCING FOR CERTAIN OPERATING EXPENSES OF WARREN MEMORIAL HOSPITAL; PRESCRIBING THE FORM AND DETAILS OF THE NOTE; COVENANTING TO PAY SUCH NOTE FROM THE REVENUES OF WARREN MEMORIAL HOSPITAL AND, IF NECESSARY, TO LEVY TAXES IN AMOUNTS SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST ON THE NOTE; PROVIDING FOR THE PUBLICATION OF THIS ORDINANCE IN PAMPHLET FORM AND RELATED MATTERS
Council President, Schrock asked Amy Fish if she had any comments she would like to add at this time. Mrs. Fish said that this ordinance has been changed since it was initially submitted to the Council for their consideration. Mrs. Fish said that once this ordinance is adopted it is her understanding that, per state statute, an ordinance of this nature would need to be revisited every two years (as opposed to annually) by the Council for their approval and their review of the loan and/or any money that has been borrowed against it. She said they are not anticipating borrowing against the note, but per state statute this ordinance needs to be in place because the Hospital is a City owned entity.
A citizen attending the meeting, Dale Lawver, asked if the calculations that are formed throughout the statute (Section 18-1750) support enough security to be able to borrow $250,000. He questioned a section in this proposed ordinance that states “to borrow money to the amount of 70% of the unexpended balance of total anticipated receipts…”. Mr. Lawver said it was his understanding that all receipts collected were already allocated and that there was not an excess of general fund receipts. Jim Nemeier, a member of the Warren Memorial Hospital Board, said a tax would be levied. Mr. Lawver stated that, based on the current property valuation of approximately $43,000,000, according to the formula described in statute 18-1750, the most tax that would be generated would be roughly $48,000 over a two year period with a maximum of $57,000. Mr. Lawver asked if this would be enough to secure a loan of $250,000. Mr. Nemeier’s response was that the equity for the loan was the City’s ability to impose a tax.
A citizen asked if the attorney that drafted this proposed ordinance has had the opportunity to review the financial situation of the City. The response to this question was yes, as Debbie Gilmer provided a copy of the City’s budget to Mr. Nemeier for the attorney to view. The City’s attorney, Attorney Mullally, was asked if he was comfortable with the Council adopting this ordinance. Mr. Mullally said he did not support the idea of the Council adopting an ordinance that contains blank lines. He would like to see these numbers filled in before passing. Mr. Mullally said he has worked with Attorney Wismer in the past and feels confident in his work, but nonetheless, he would like to see actual numbers placed in the ordinance. Mr. Nemeier informed Attorney Mullally and the Council that he had provided a number for one of these blanks to Debbie Gilmer earlier in the day, but that, as per Attorney Wismer, the remaining blanks were to be completed after approval of the ordinance.
Attorney Mullally was asked to explain the sections of the ordinance referenced above containing the blank lines. Mr. Mullally began by saying that 18-1750 of the Nebraska Statutes allows the City to borrow money to the amount of 70% of the unexpended balance of total anticipated receipts for the current fiscal year and the following fiscal year. The ordinance states that the City anticipates receipts for the current fiscal year and the following fiscal year of $657,010. This figure was provided by Attorney Wismer after he had the opportunity to review the City’s budget report. The next section refers to the total general fund expenditures from October 1, 2006 until the date that the notes are issued. Mullally said he would like to see a firm number here prior to Council’s approval. Mr. Mullally said if this ordinance is up for consideration at the November meeting, we would have the ability to put firm numbers in the remaining blanks, assuming that the note would be signed the following day. Mr. Mullally said these figures could easily be ascertained by the City Treasurer. He said he believes that this ordinance did not get to Debbie Gilmer early enough for her to get these figures in place before tonight’s meeting.
Jim Nemeier stated that the two numbers missing from this document are available right now from the City Treasurer if time were taken to look them up. Mr. Nemeier said according to Attorney Wismer these figures could have been determined today, but they were not.
Councilman Tuttle advised Debbie Gilmer to get assistance from the City’s accountant to determine what figures to use in this ordinance. Debbie Gilmer informed the Council that she had already forwarded a copy of this ordinance to the accountant, Terry Galloway, but had not yet received a response from him. Councilman Tuttle suggested this issue be tabled so that Debbie Gilmer can get advisement from Mr. Galloway and so that Attorney Mullally can contact Attorney Wismer for clarification on issues in question relating to this proposed ordinance.
A member of the audience asked what the financial status was of the hospital and why two members of the Council did not approve the hospital reports. Also, if the hospital is coming to the City now for financial help, will this be enough? Councilman Weber responded by saying more information is definitely needed, and that is the reason this proposed ordinance has been tabled until a later meeting. Councilman Weber also stated that the hospital financial reports were not approved because there were none submitted for this meeting. Mrs. Fish said there was some extra work that needed to go into the ambulance financials and she said she believes that Dacel Thompson finished those up today. These reports will be on the agenda for approval at the November meeting.
An audience member asked if the hospital submitted a detailed budget to the City or if the hospital’s budget was included within the City’s budget as a proprietary function. The City’s auditor requests from the hospital the hospital’s beginning balance, total budget receipts and total budget disbursements and incorporates this information as a line item for a proprietary function within the City’s budget.
At this time, Council President, Schrock asked for a motion to table this issue until the November meeting. Motion to table issues related to proposed Ordinance #06-693 until the next meeting was made by Weber, seconded by Tuttle. On roll call voting aye, Fricke, Schrock, Weber, Tuttle. Motion carried.
Attorney Mullally said the closing transaction is now complete and the property formerly known as the Animal Clinic officially belongs to the City. Attorney Mullally said there are a few items that could surface that might need to be addressed, one being possible repair to the wall south of this property.
Patrick Gates, Utilities Superintendent, gave his report. Mr. Gates told the Council that he has had three companies submit estimates for the water tower cleaning, ranging from $6,000 to $6,500. Mr. Gates asked Council for their approval to hire the company that can get the work done the earliest. The work would include cleaning the inside and outside of the tower, as well as an inspection of the tower. Motion was made by Weber, seconded by Tuttle to authorize Patrick Gates to hire the appropriate company to clean and inspect the water tower. On roll call voting aye, Weber, Fricke, Tuttle, Schrock. Nays none. Motion carried.
Patrick Gates said he received information from Rich Robinson of Kirkham Michael Engineering, relating to
Discussion was had regarding trading in the 1996 Ford police unit for a 2003 Chevy Impala. Motion was made by Councilman Weber, seconded by Schrock to authorize Mark McFarland, Chief of Police, to trade in the 1996 Ford police Unit for a 2003 Chevy Impala. On roll call voting aye, Fricke, Tuttle, Weber, Schrock. Nays none. Motion carried.
Mark Stutzman, Building Inspector had nothing to report.
Stan Krause, 2nd Assistant Fire Chief, attended the meeting. Mr. Krause said he had nothing new to report on the status of the new truck. He told Council that the Fire Department has been contacted about burning a few houses, but are waiting on paperwork before this can be done.
With no further business to come before the Council, motion to adjourn the meeting was made by Tuttle, seconded by Weber. On roll call voting aye, Schrock, Weber, Tuttle, Fricke. Nays none. Meeting adjourned at 8:10 p.m.